Вы находитесь на странице: 1из 47

g

GE Medical Systems

RSNA 2002
December 5, 2002
This presentation includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These statements
are based on management's current expectations and are subject to uncertainty
and changes in circumstances. Actual results may differ materially from these
expectations due to changes in global economic, business, competitive, market
and regulatory factors. More detailed information about those factors is contained
in GE's filings with the Securities and Exchange Commission.

RSNA 2002
Featured Products
CT LightSpeed16
Innova 4100 Introduction
eSpeed
Discovery ST Introduction
READYlab1st Relocatable FDG lab
MR EXCITE, 3T & Open
TruScan Ultrasound Architecture
New LOGIQ, Voluson 4D Products
BMD Achilles InSight
Flourotrak 9800 Plus 3D Navigation
Centricity RIS / PACS

Leading Technologies & New Products Everywhere


2

GEMS Today
Imaging

10% 5-Yr
CAGR

Focus
Leading Technology
Rapid Globalization
Clinical & Productivity

Services
Focus
Partnership
Whole Hospital
Performance ROI

15% 5-Yr
CAGR

Information

20% 5-Yr
CAGR

Focus
Physician Workflow
Clinical Benchmarks
Paperless, Filmless, Wireless

Functional

Hospital
Productivity

CIS

Anatomical

Maintenance

PACS

Healthcare Growth Engine Unlimited Opportunities

02 Financial Summary
Good Performance/Execution

($B)

$9.0

Rev
OP

$9.5

7%
Growth

GEMS IT +18% ; U/S +16%


MR +14% Orders
Services +12%
China +17%
Europe +16% Rev

$ 1.7

Rev

OP

~ $1.55

Most NPIs
Ever

Specific Market Misses


Business

Rev VOP

OP VOP

Market

Japan

$(280)M

$(130)M

20%

U.S. CT

$(80)M

$(50)M

Flat

Latin Am

$(80)M

$(30)M

40%

Mixed Performance Year Strong Future

Two Tough Global Markets


($M)

02 Japan Performance
02E

V%

Sales

680

(22%)

Op Prof

60

(50%)

02 Drivers

02 LA Performance
02E

V%

Sales

180

(26%)

Op Prof

30

(40%)

02 Drivers

Japan Total Market Down

CT Down 40%

Fierce Local Competition

MR Down >50%

MR / Ultrasound Down ~20%

Service, Ultrasound Flat

03 Outlook

03 Outlook

Expect Slight Rebound ~5-7%

Slight Market Turnaround

NPI in MR, U/S Driving Growth

Strong Service Growth

Depressed GEMS Rev 3 Pts Modest Increase in 03


5

GEMS Ex LA & Japan


($B)
Segments

02E Rev Orders


$
V% V%

MR
CT
Ultrasound
DXR
Surg/Vasc
Nuc/PET
Other
Core DI

1.1
1.1
0.8
0.5
0.7
0.4
0.2
4.8

13
7
22
5
9
9
F
12

14
11
21
12
9
16
F
13

Healthcare IT
Core Service
IB/SW
Memo Svc

1.3
2.0
0.6
3.7

18
7
18
13

27
7
18
13

Regional ex-LA/Japan
Amer
Eur
RoA

Comments

8%

18%

Backlog Momentum
LS16 Leadership
New Platforms
Digital Portfolio
Extend Platform
Major NPIs

10%

Global
Strength

Very Solid Fundamentals Stronger 03


6

Competitiveness
02E Sales Forecast
9.0

7.7

7.0

Clear
Leadership

02 Global Market
US/Europe ~5% Growth
Eastern Eur +15%

2.0
GE

Sie

Phi

OM% 18

13

China +20%
IT +30%

Tosh

Sales Share (%)


#1

#1

#1-2

#1

#1

#1

#1

Tos
Phi

Comments
Leading
Products
Strong Global Position
#1 R&D Investment

Sie

IT Huge Opportunity

GE

MR

CT

U/S

XR

FI

PACS

PM

GE Initiatives Comp Edge

Strong Global Position

Trends in Healthcare

U.S. Hospital Demand Drivers


Effect on Future Demand
1)

Population Growth

2)

Aging Population

3)

Consumer Expectations

4)

Reimbursement Trends

5)

Employee Benefits

6)

New Clinical Therapies

7)

New Clinical Diagnostics

10-20 Year
Trend ++

Consumer
Spending ++

Increased
Utilization ++

Two Big Trends


General Care = Technology Drives Productivity
Specialty Care = Technology Drives Consumerism

Where Hospitals Make Money


Future Growth
OR

General
Surgery

Crown Jewels

Vasc.
Surgery

Urology

Profitability

Cardio
EP

Major
Joints

Neuro
Surgery

Radiology

Diagnostic
Cardio
ED

ENT
Medical
Oncology

Obstetrics

Neurology

Loss Leaders

Internal
Medicine

Future Growth
Procedure Growth

GEMS Technology Aligned to Hospital Growth Drivers

10

GEMS Growth
10-15%
AAGR
($B)

~$10
~$9.0

$6.1

Growth Drivers

Demographics Aging Population


Age 55 up 10 to 25% Globally

Emerging Countries Healthcare Spend


China +30%, India +25%, E.Europe +15%

Critical Medical Labor Shortages

Technology Addresses The Challenges

$3.6

95

99

02E

03F

Increased Throughput Speed

Higher Sensitivity and Specificity Accuracy

Minimally Invasive Procedures Shorter Stays

Therapy Staging Rapid Feedback

Pre-symptomatic Diagnosis Proactive

Well Positioned in a Dynamic, Expanding Market


11

How We Grow in 03
Focus Areas

03 OM Impact
15-20%

Strategy

Fast Growth IT Business

~6 Pts

Driving IT Device Convergence

U/S & Surgery

~5 Pts

New Segment Growth

Strong Services Growth

~3 Pts

Accelerate IB, SW, New Svcs

Rest of GEMS

~2 Pts

Technology Diffusion

Acquisition Impact

+0-5 Pts

Broaden Portfolio

Realistic Business Plan Know What We Have to Do


12

Building an IT Business
Revenue ($M)

Market Strategy

20%
AAGR

Grow Devices IB
Penetrate Clinical IT Offering

0.9B

Focus on Enterprise Capability

290
610

Continue Strong NPI Funnel

00

Enhance Service Offerings

425

~1.4B

700

IT

540
960

775

860

01

02E

Devices

03F

OM Rate +6 pts In 2 Years

GEMS IT Performance

Regional Growth

Americas

1.2B

~1.7B

03

V%

1 050

17

Europe

360

25

Asia

250

26

30%

50%

IT
REV

OP

15%

25%

Devices

High Growth
Workflow Focus
Strong Growth
Wireless Opportunity

REV

OP

$1.7B GE Business Strong Growth Platform

13

Building an IT Portfolio
IT Strategy

Data Acquisition Strategy

$15B 15% AAGR

$10B 10% AAGR

Hospital Administration
Decision Support
ADT

Lab

Phone

Clinical Near-Patient
Charge Cap

Sub-Acute

Parameter Technology

ED

Radiology

Cardiology

OB / NICU

Periop

Critical Care

Ambulatory

802.11B

Clinical Electronics

Order Entry / Results

ED

Tablet

Cardiology

MPI

Pager

OB / NICU

Scheduling

Real-Time
Info

Caregiver Productivity

Clinical Non-Near Patient


Pharmacy

Data
Model

Periop

Billing

Web
Integr.

Critical Care

Admin

Ambulatory

Finance

EMR Integration

Just Beginning to Penetrate a $25B Market


14

Hospital Transformation
Industry Drivers

Paper

Film

Wired

GE Advantage

Make Data Move


as Fast as Patient

9 Devices / IT
Convergence

Integrate at POC

9 Rapidly Creating
Integrated
Enterprise System

Modality Data
Explosion

9 Leading PACS
Provider

Rise of
Teleradiology

9 Leader in Workflow
Integration
(3D, RIS, HIS)

Mobile
Caregiving

9 Leading Telemetry
Provider

Networks
Converging

9 Leader in Nurse
Communications

Paperless

Filmless

Wireless

GEMS Technology and Six Sigma Drive Quality and Efficiency


15

Expanding Our Reach


Gaining Mind Share

Hospital Administration
Finance
Support

Admin

Decision

Billing

9 Millbrookdoctor practice expansion

ADT
Admininstrative

Pharmacy

Lab

PM

Clinical Non-Near Patient

Billing
GL/AR

Scheduling

Millbrook

Clinical Near-Patient
SEC
MPI

Charge

Marquette

Critikon/Data Critical/Danica

9 Global Show Sites


Solid Year One Growth

Medicalogic
MedicalogicInterfaces to:

Radiology

Cardiology

OB / NICU

Periop

Critical Care

Ambulatory

ED

Order Entry / Results


Prucka
iPath

9 Center of Excellence in Chicago

Patient
Management
Patient
Management

EMR

Scheduling
Cap

Clinical
ClinicalAdmin.
Admin.
W
Wkflow
&
kflow

9 Merging Enterprise Infrastructure


9 Broadening Definition of IT

Pharma

Lab

Physician Workflow
EMR

Rev Growth

Profitability

Loral

30%

2X

iPath

45%

(62%) 24%

MedicaLogic

69%

(150%) 11%

Marquette QS

25%

1.5X

Strong Offerings Fundamentally Changing an Industry


16

PACS Growth
Annual Growth
($M)
R
AG
C
30%
236

00

<10%
Adoption
~500
~400

303

01

02E

03F

Share +15 Points Since 99


Clinical Efficiency Leadership

Leading Customer Partnerships


Experienced buyers choose GE. . .
Brigham & Womans Hospital
Baylor University UCLA
Loyola of Chicago Duke University
Stanford University
Top GPOs choose GE. . .
Tenet Healthcare
Hospital Corporation of America

IT Infrastructure Leadership

Enhanced Imaging Workflow


Integrated RIS/PACS
1st to market Mammo PACS
From 2D to 3D and beyond. . .
Managing
Data
Explosion

Beyond Radiology
Integrated
RadiologyCardiology
Systems

Designed for 100% uptime


Scalable to millions of exams
Off site enterprise repository

Min Investment Max Productivity

Leading Clinical IT Platform Poised For Rapid Growth

17

The Indiana Heart Hospital


Nations first all digital heart hospital

Free-standing, 88-beds, brand new


Specialty care to treat #1 US killer
Digitization for better patient care
No nursing stations
No medical records dept

$25M
GE Revenue

Powered by GE

Diagnostic imaging quality, speed


GE Centricity paperless, filmless
Info anytime, anywhere
Lab Tests 3 days 3 seconds
Medical errors 45%
Report turnaround hrs to secs

Total GE Solution The Hospital of the Future

18

Cincinnati Childrens Hospital


Improving quality pediatric care
373-beds, new $150 million expansion
Digitizing the OR tracking patients surgeries
Patient monitors in every room 500+ GE monitors
Operational excellence more time with patients

$14M
GE Revenue

a shared vision with GE

GE Centricitymission control for OR


Paperless, filmless
More certainty, less errors
Trend analysis

Digitized25% utilization; saving $55/min


Six Sigma with GE Aircraft Engines

Real-Time Information for Real-Time Medicine

19

Research & Development


Customer Needs

Accelerating New Products


~135

Drive Better Outcomes


Increased Productivity
Information Management

~25

Enhanced Patient Satisfaction

96

98

00

02E

03F

Investment Strategy
20%

Breakthroughs New Fundamental Technology (3 to 10 years)

45%

Platforms Scaleable Subsystems (2 to 5 years)

35%

Derivatives Flexibility and Speed to Market (6 to 12 mos)

9 Physics, Materials, New Techniques


9 10%+ Cost Out & Product Diversity

9 Rapid Product Configuration

Investing Smart Vision Combined with Productivity and Speed


20

Technology Creates Demand


CT Multi-Slice

Digital X-Ray

4D Ultrasound

Mkt: Flat to DD Growth

$0 $400M Sales in 4 yrs.

Created a New Segment

+10 pts Share since 97

+10 pts of XR Share

2X OB Growth

11% AAGR

Speed Productivity
Breath-hold Imaging
New Applications
Resolution Finer
Detail

40% AAGR

Dynamic Range Gold


Standard Imaging
Digital Workflow
Productivity
Dose Reduction

25% AAGR

Unprecedented
Visualization
Real Time 3D
Direct Patient Appeal

First Mover Technology Strategy Capture Customer Imagination


21

Leading Today Leading Tomorrow


Enabling Technologies

Personalizing

Molecular Imaging
Targeted Therapy
Nanotechnology
Miniaturization

Beyond Anatomy
Cellular, Genetic
Information Anywhere
Visualizing Biology

Integrating

Networked Workflow
Multi-Point Access
3D Image Fusion
PET/CT

Centricity

Visualizing

World Class Imaging


Digital X-Ray

MR Excite

Computational Power
Bandwidth, Wireless
Computer Aided Medicine
Visualization
Navigation

Applied Materials
Detection Physics
Reconstruction
Signal Processing

Solid Foundation Pushing New Frontiers of Medicine

22

How to Win in Key Segments


Position
XR + OEC

#1

Key Strategies
Extend Digital Lead
Accelerate Global Position & Platform

U/S

#1/2

CT

#1

Advanced Apps + Unique EBT

MR

#1

Extend EXCITE Lead 1.5/3.0T

FI

#1

Grow Chemistry , Next Gen PET/CT

Unmatched Technology Focused on Growth

23

Building an Ultrasound Powerhouse


GE Ultrasound Yesterday and Today

Market Overview

Start-Up

$0.5B

OB/Gyn

$1.0B

Cardiac

Contender

($M)

$1.5B

General
Imaging

750
Rev

9 $3B+ Market 5% AAGR


9 Equally Balanced Globally
9 Diverse Users

99

GE #1

9Global Dist.
9DVU Acq.

97

00

01
OM Rate +6 pts In 2 Years

GE #6
9Product
Breadth

9Tech Lead.
Two
Growth
Phases

875

1 000

560

460

98

Leader

9H/W to
S/W
9Credibility

Sie
Phi
GE

02E

02E

Success Factors
9 U/S Experts
9 LCC Focus
9 Annual Bthroughs
9 Win Everywhere!

Remarkable History . Unparalleled Performance

24

Ultrasound Leadership
Real-Time 3D

From OB

150

To Gen Imaging

100
9 Record Production in 02
9 Innovation Price Premium

Handheld U/S

Neo-natal Brain
Breast Biopsy
Organ Scan

9 Huge U.S. OB Demand

02E

03F

Patient Demand

9 China R&D full feature

50

9 New U/S Growth Segment

9 New usersER, OR, Vet., L&D

02E

03F

New Markets

Cardiac Strain Imaging

9 250K Pacemakers unsuccessful


9 Strain Screening/ Accuracy
9 GE Exclusive Vivid 7 feature

40
15
02E

03F

Quality of Life

Technology Leadership In All Areas Creating New Segments

25

Continuous Innovation
Adaptive Accoustics

Software / Image Mgmt

Logiq Works

Enhanced
Image Quality

Handheld Cardiac

View Point

Customer
Productivity Solutions

Leadership in
Miniaturization

9 Prevents Distortion

9 Build on Acquisitions

9 Complete Cardiac System

9 256 Channel Beamformer

9 Raw Data Differentiator

9 V3 Performance

9 Abdominal Correction

9 Reporting Solutions

9 Target ER, OR

9 Larger Patients

9 Seamless Networking

9 Fast Growing Segment

Strong, Clinically Relevant Technology Pipeline

26

A $1B Global Growth Engine


Unique
Business Model

Exciting Technology
Leadership

Distribution
Opportunities

9 Focused Experts

9 Game Changers Today!

9 CardiacUS/Japan

9 Global Linkage

9 Great Pipeline

02-05
50% Growth

Unique GE Enablers
TruScan
Platform

9 Dedicated
Value/Handheld

Global Product Development

Global COEs
9 Market Proximity
9 Product Focus

Horton
Horton
Milwaukee
Milwaukee

General Imaging

Hardware to
Software

GE Global
Research
Phoenix
Phoenix

Munich/
Munich/ Zipf
Zipf
Haifa
Haifa

Seoul
Seoul
Wuxi
Bangalore
Bangalore

Tokyo
Tokyo

9 Apps Expertise
9 Commonality
9 Tech Migration

General Imaging
Value
Cardiology

The Building Blocks for Sustained Technology Leadership


27

Surgery Merging Imaging & Therapy


GEMS Revenues

Building a Surgery Business

~$1B
15% CAGR

$360M

Asia

99 OEC Acquisition Platform

Eur

> $500M in 03

$440M

Great brand & Channel


Amer

CM %

99
+1

02E
+3

Growth Drivers

Added Surgical Nav 2Q 02


Expanding Portfolio/Partnerships

05F
+1

Technology Innovation, Redefine Market, Accelerate

Global expansion

Imaging
Navigation

NAV to OEC IB; 2X


revenue in 03

Visualization
Min. Invasive

3D NPI $20M

3D Apps

Acquisition Funnel ++

AW/PACS

Surgical
Navigation

Integrated Surgical Platform

Surgery Next >$1B Growth Opportunity

28

Vascular X-Ray
Business Performance

Innova 4100 Angio RSNA Launch


First with Digital Angiography
Broadest Coverage & Highest Resolution
Significant Dose Reduction

Orders

CM%

02E

V%

03F

V%

420

13%

485

~15%

+1pt

+1 pt

Angio 4100 Huge RSNA Show Hit


Growth Opportunities

Key 03 Actions

$250M Angio marketdrive to >40%


share

4100s 25 units in 1H; 75 in 2H

Combo market$150M market


opportunity

Combo NPI in Q420 unit upside

Features in Cardiologygrow our #1


position

Cardiologydouble digit growth

Digital Enables Clear Market Leadership


29

Functional Imaging
To Bio-Anatomy

From Anatomy

Business Performance

Product
Suite

Orders

CM%

02E

V%

03F

V%

550

9%

625

~15%

+2 pts

+2 pts

CT/PET Driving Growth

Growth Opportunities

Key 03 Actions

Discovery Platform (LS, ST, Mobile)

Continue Hybrid Imaging Growth

READYlab Relocatable tracer center

Invest in PET Technology

Oncology, Cardiology and Neurology


(Alzheimers)

Grow Radio Pharmacy


Reinvent NM Product Line

Exciting New Platform for Growth Next Billion $ Business

30

PET Growth
Leading the Breakthrough in PET/CT Applications
Oncology

Cardiology

Neurology

Respiratory Gating

Cardiac PET/CT Fusion

PET/MR Fusion

Better Lesion
Detection & RT
Planning

Combined Functional
Perfusion & Vessel
Anatomy

Improved Lesion
localization &
Detection

Changing the Clinical Standards of Care

31

Molecular Imaging
To Reality

From Research

Cancer

Biomarkers
Longitudinal
Studies
Clinical Trials

Normal

Diagnostic Probes
Micro-Imaging
Products
Pre-clinical Trials

Applications
Cancer
Cardiovascular
Disease
Alzheimers
Disease

GlaxoSmithKline, NCI

EVS, ART, AMC

Amersham Health
Nuclear Interface

Transforming Medicine For Today and Tomorrow

32

Global CT
Business Performance
($M)

Orders
CM%

Growth Opportunities

02E

V%

1,300

6%

03F

V%

1,450 ~10+%

-- pt

+1 pt

Market Strategy

Procedure growth lung, cardiac, colon

Extend Multi-slice leadership 16 slice+

Double Digit Cardiac/Oncology Growth

New Exclusive applications Cardio, Cancer

China CT big growth opportunity

Cardiac comparative studies to CathReimburs.

Upgrades 15,000 single-slice > 5 years old

Workflow leaderScan to Report <10min

New Apps & Customer Productivity Fueling Growth

33

CT - Transforming the Portfolio


GEMS Revenue ($B)
$1.1
$0.8
2s
1s
99

01

Comments
10%+ AAGR
$1.2 ~$1.3-$1.4 02-05
Multi-Slice & New Apps Driving Growth
16s
Lightspeed16 Enabling 3D Imaging
8s
4s
e-Speed Front-End of Cath Lab
2s
02E

03F

Total CT Installed Base (Units)

Multi
Slice

~40K

~53K

Single
Slice

10% New Socket Growth

Key Drivers

Massive Shift
65% of Total IB are Single Slice
to Multi-Slice
Will Convert in Next 3-4 Years
50% Premium
New Applications on Multi-Slice
Driving Conversion
Service Capture Rates ~10%
Price ~5%

02

05

Large Installed Base Big Opportunity to Grow

34

CT Innovation Leadership
eSpeed Every Heart Every Time

LightSpeed 16 20 Sec Exam 3D IQ


4 Slice

LS 16 Slice

% Patients

e-Speed

Others
LS16

Success Rate
Scan Speed

Never
Seen
Before!

e-Speed

SI/PH

33/50 ms

420 ms

Slice/sec

60

32

Dose Vs. Lab

25%

100%

Power

140kW

96KW

Exclusive

Perfusion

No

e-Speed 10X faster than

Traditional CT 30Fps GE Only

Unique GE Advances
GE
Developed
TM
Performix - Longest Life Xray Tube Technology
microVoxelTM - Best Image Quality

OptidoseTM - Lowest Dose CT Scanners


GE CT
LightSpeed 4
LightSpeed 8
LightSpeed 16

Time to Time to 200 Units


Market
Comp.
GE

3 yrs
2 yrs
1 yr

1 yr
6 mos
6 mos

2 yrs
NA
1 yr

IB
02YE

1500
750
250

LightSpeed16 Customers Voted


The Best New Technology

35

Global MR
1.5T/3.0T EXCITE

MR Business Performance

Orders

CM%

02E

V%

03F

V%

1400

1525

~10

+1 pt

-- pt

Share and Margin Rates Growing


Growth Opportunities

Key 03 Actions

$500M IB Rev Opportunity Next 3 Yrs

Drive EXCITE Upgrades 3500+ Sockets

$520M 3T Rev Opportunity Next 3 Yrs

Complete 3.0T EXCITE Product in 3Q

$210M Open Business In 03

Increase Sales Coverage For Open

Strong Growth In 03 Bright Future

36

EXCITE Clinical Benefits


Clinically Relevant Breakthroughs Drive Price
1.5T

Price $1.5M

1.5T EXCITE

Huge
Improvement

$1.8M

3.0T

Similar
Image
Quality

$2.0M

3.0T EXCITE

New
Structures
Visible

$2.3M+

3D Imaging In Seconds And Whole Body Scanning With No Radiation

Dramatically Improving What Physicians Can See

37

Hospital Priorities
Hospital CEO Focus

GE Value Add
New Service Lines

Competitive
Marketing
Hospital
Capacity
Staff
Retention

Patient
Access

Expanding
Services
Patient
Throughput

Hospital
CEO

Patient
Safety

Increasing
Reimburse.
Maximizing
Revenue

Staff
Productivity

Securing
Capital

New Technology
IT Solutions
Productivity
Patient Education
Financing

Total Solutions
Unique GE Offerings

GE A True Healthcare Partner

38

Services Solid Foundation


Revenue ($B)
12%
AAGR

Service Segment Growth


4.3
3.9

3.4

01

02E

03F

Drivers
Strong software and IB growth
Web based data & productivity services
Increased value drives price & growth
Helping Customers Win Financing

02E V%

03F V%

Contract

~7

~10

Clinical IT

~25

~30

IB & SW

~15

~20

Refurb

~30

~25

IB & HFS Portfolio = Opportunity


MaxiContinuum Lifecycle Asset Mgmt
Equipment
Upgrades
Software

IB Sales
Sales
IB
Up 20%+
Up ~20%+

Lease Extensions
Performance Engagement

Strong Services Portfolio Driving Double Digit Growth


39

GE HFS Go-To-Market Strategy


Strong Market
Fundamentals

Favorable
Competitive
Environment

Huge Growth
Potential

Products

Customers

Asset Based
Lending

Hospitals

Equipment
Finance
Real
Estate
Cash Flow
Equity

Imaging Centers

Customer Centric Model


Consultative Approach
Healthcare Industry Expertise
Financial Strength

Outpatient
Centers
Group Practices
Skilled Nursing
Senior Living
Payors
Device Makers
Service
Providers

Delivering the Full Power of GE to the Customer

GE HFS Exciting Growth Business


Net Income

Volume

($M)

($B)

~30%

~$190

~$6.1

~35%
~$4.5

~$140

Commercial
Finance

4.2

Equipment
Finance

1.2
3.3

02E

1.9

03F

Opportunities

02E

03F

03 Actions

- New Customers (ASCs, Spec Hospitals)

- Build the Brand Market Awareness

- Non-GE Equipment Financing

- Launch New Strategic Sales Team

- Global Expansion

- Acquisitions to Expand Offering

- Vendor Programs, Acquisitions

- Increase Tax Exempt Capabilities

Broad Offerings Driving Strong Growth


41

Services Transformation
NEED

Core Technology Delivers Great Performance

Schedule
Register

MR Excite
30% Faster Exam Speed

Patient Arrival
Scan Prep
Exam
Phys Review
Room Clean
Interpret

CT LightSpeed16
3x Faster Exam Speed

Archive
Bill

But Affects Just One Part of Customers Business

PAYMENT

Driving Value-Added Services


42

Customer Partnerships
Technology and Services Deliver RESULTS

NEED

MR Excite with Performance Solutions

Schedule

Workflow Re-Design using 6

Register

Unleashes Benefits of Technology

Patient Arrival
Scan Prep

Customer Wins and Wants More!

Exam

3 Patients/Day @ $500 = $390K/Year

Phys Review

1.5 Year ROI on Technology

Room Clean

$2M Opportunity over Product Life

Interpret

GEMS Wins Through Customer Success


+3pts Price & Capture Rate
Opening to Sell Bigger Engagements

Performance Solutions
Revenue

02E
$56M

03F
$85M

Archive
Bill

PAYMENT

Understand Customer Needs Address Total Opportunity


43

Creating a Software Business


01

02

Software on Demand

New Platform

Grow From Smart IB


Software Downloads
Clinical Answers in
Minutes, Not Weeks

03

Applications Anywhere

PC-Based
Workstation AW 4.1
Software Assurance
Contracts
Dedicated SW Sales
Teams

Software Sales
($M)

2x

+ Multi-Copy Software
Licensing

5X Increase in Target
Systems

Software Assurance Agreements


200

~6

($M)

150

100
01

Advanced SW Available on
PACS, Workstations, Any PC

0.1
02E

03F

02E

03F

Applications Anywhere + SW Assurance Drive 2X Growth

44

Global Product Company


Material/Labor Cost Productivity
($M)
9.1%

7.0%

4.9%

9.9%

10.5%

Moving Supply Chain to LCC


% in Low
Cost Country

55%

60%
50%

Make
33%
Buy

00

01

227

280

97-99
VCP $ 125

LCC Engg
(FTEs)

02E
320

03F

340

Ownership
02

03

India

400

450

U/S, Monitoring, Comp, IT

China

220

320

CT, XR, MR, Magnets

Hungary

125

135

XR, Vascular, Mammo, 3D Vis

30

35

Korea
LCC %

23%

29%

99

01

03F

04F

Low
Cost

More
Products

Global
Insider

$130M
VCP

Design
Ownership

Market
Presence

Mid Tier U/S

Globalization GEs Competitive Advantage

45

Delivering in 03
Accelerate NPI Continued Execution & Stronger CT
GEMS IT Core Growth PACS & Monitoring
Fill Out GEMS IT Platform More IT, Critical Care
Stronger Asia Japan + China Growth
Services Expand Offerings, Accelerate SW & IB
Accelerate Globalization Deliver $475M Productivity

Great Business Poised For Solid 03 Performance


46

Broad Business Strength


($B)

Rev

10-15%

OP

Growth Formula
Expansive Global Market

~$10

Broad Product Portfolio

~ $9

15-20%
~$ 1.8
$ 1.55

Service Growth
Expanding Platforms
Productivity Engine
Strong Acquisition Funnel

02E

03F

Strong High-Tech Business $15B By 05

47