3. Aviation Technology Strategy for the 21st Century

Mega Trends…Challenging aviation environmentvolatile markets…wild commoditiesgyrations.FuelBetter fuel burn & alternate fuelsMaterialsInflation & new capabilitiesEmissionsFocus on NOx & CO2Carbon “equation”Fuel1 lbfuel =CCC3 lbsCO25GE Aviation

Strategy For The Next CenturyTop Commercial & Military Needs…Common and Complimentary.CommercialMilitaryReliability 50%Fuel Burn 20%Cost Of Ownership 30%Emissions 85%Noise 55%Reliability 50%Fuel Burn 20%Cost of Ownership 30%Thrust to Weight 50%Thermal Mgmnt 2-5XElectric Power 2-10XSurvivability6GE Aviation

The Customer Defines the Attributes….GE Developsthe Technologies that Deliver.Aircraft MissionPayload, Range, Endurance…Aircraft CapabilitySpeed, Maneuvers, Flight Envelope…Propulsion System RequirementsSpecific Thrust, SFC, Weight, Installation…Propulsion System TechnologyFuel Burn, Aerodynamics, Noise, Materials…8GE Aviation

NEW PRODUCTS

GE38-1B TURBOSHAFTEngine for the CH-53K.2-3X payload improvement vs the CH-53E.GE38 will have 10-20% better SFC than other engines in thispower class.GE38 versus T64…Same airflow, slightly shorter length.63% fewer parts57% more powerGE38 Isometric View10GE Aviation

JOINT STRIKE FIGHTER (JSF) PROGRAM• Fully Funded• Demonstrated max A/B thrust.• Investing in World Class Facilities.• Building First Engine to Test2008 2009 2010 2011 2012CDRFETTF1361 st flightFirst A/CDeliveries11GE Aviation

JOINT STRIKE FIGHTER (JSF) “FLY-THROUGH”12GE Aviation

What Does SLEP Bring To The F110Engine?• Significant TOW Improvement.• Increased availability.• Lower Maintenance Costs.• Longer Piece Part Lives.3-D Aero• Lower Engine OperatingTemperatures.• More Durable Materials.• Ease of MaintenanceHardware Replacement.13GE Aviation

Lean NPI – Engineering Productivity IntegrationENABLE INCREASED NPI, GROWTH, AND BOTTOM LINELean NPITechnology & Cost AttainmentGlobal NPIDesign & Analysis FTY=1Productivity ToolsCert / Qual ProductivityCost ModelingDevelopment Test & InstrumentationMaster ModelKnowledge-Based NPISynergy with other GE BusinessesCommon processes & tools.15GE AviationStandardized Test Plans

Design / Analysis FTYPhysicalKnowledgeValidatedModels and ToolsComponentAnd Rig TestingDesign ProcessDiscipline And ExecutionDesign PracticesState of the Art 3D Modeling Capability, Correlated/Validated ModelsComponent By Component AssessmentStrict Process DisciplineInternal and External (USAF, Navy, Army) ReviewsDesign Analysis FTY=1Eliminates costly, recurring, development test events.Substitution of analysis for test where appropriate.16GE Aviation

DEMONSTRATORS

Technology Demonstrator ProgramsStrong history leading to benefits today and beyond18GE Aviation

ADVENT – ADAPTIVE VERSATILE ENGINETECHNOLOGY…PROGRAM GOALS:50% increase in mission radius.2X increase in loiter.10X increase in time at max temperature.SYSTEMS TECHNOLOGY ADVANCEMENT:Encompasses entire propulsion system. Highly Integrated.Multi-use civil & military technologies with emphasis on affordability.Adaptive fans and cores to improve performance.19GE Aviation

HEETE – Highly Efficient Embedded Turbine EngineReduced fuel burn through very high pressure ratio.• Technology for the Next Gen compressorSFCHEETE• Reduction in SFC, CO2 Emissions.25% SFC ImprovementAddresses technology barriers to high OPR engine.1960198020002020AATE – Advanced Affordable Turbine EngineDemonstrator: 4 Year Program:Decrease SFCIncrease SHP/WtDecreased costs: O&M & DevTech Insertion…Bearings, Combustor, Airfoils &Shrouds, High Work Vaned Impeller, HPT Blade.Replacement for the T70010,000+ Engines20GE Aviation

TECHNOLOGIES

Advanced Materials…22GE Aviation

Ceramic Matrix Composites (CMC’s)Less weight and better performance with reduced coolingIntroducing compositesbeyond fan modulesBenefits for highertemperature components:Turbine airfoilsCombustors1/3 density of metal forreduced weightbetter fuel burnCMC prototype turbine nozzleGE Ceramic Composite Products SiteState of Delaware, U.S.23GE Aviation

Validated technologiesSurface enhancements for durabilityHPC Airfoil Erosion CoatingsPerformance retention in high erosionenvironmentsNitrided BearingsImproved durability and debristoleranceCoke Barrier CoatingsReduced loss of oil flow inhigh-temp applications24GE Aviation

FUELS & EMISSIONS

Alternative Fuels…Economic, Strategic, EnvironmentalUS Defense Science BoardReports Issued in 2001, 2008:70 percent of the tonnage required toposition today’s U.S. Army into battle is fuelCost of fuel delivery to the battlefield.Overriding strategic & economic imperatives:Diversity of feedstocks.Dramatically improved fuel efficiency.26GE Aviation

Alternative Fuels…Economic, Strategic, EnvironmentalUSAF Has Taken the Lead inDeveloping an Alternative FuelsStrategy.Qualification of all Airframes, Engines,Support Equipment by 2011. 50%CONUS Fuel with F-T Blend 2016.50-50 F-T Blends…a Pathfinder ProgramAir Force Has Also ExpressedConsiderable Interest in DevelopingBiofuels…Section 526 EISA 2007.27GE Aviation

Aviation Alternative Fuels…Framing the Issues & thePath Forward:70 Billion GPY…About 8-10% of Total TransportationDistillate Fuel Consumption.Supply chain vulnerability needs to be addressed…fuels & electric power.Current Consensus: Alt Aviation Fuels… “drop in.”Gen 1 vs Gen 2 biofuels – Food vs Fuel, Land Use.Interesting options obtaining DOD & USG funding…Algae, Bio-oil to Jet-A Conversion, Camelina.Air Force, DOD, Industry Taking Positive Steps to Address Energy Vulnerabilities28GE Aviation

WRAP UP

GE Technology LeadershipOur heritage … righttechnology at the right time.Pipeline for future products… maturing tomorrow’stechnologies today.Bringing technology benefits… future innovation.Developing technology for2013 and beyond.30GE Aviation