* HELP ME TO ANSWER THESE QUESTIONS FROM THE BELOW TRANSCRIPT*

1. Describe the videos analysis of GEs overall expected cash flow activity in the next year.

2. What part of the GE CEOs discussion is more closely related to cash flows from operating activities?

3. What part of the GM CEOs discussion is more closely related to cash flows from investing activities?

Transcript:-

How do you know that this is the trough?

You've projected something like breakeven to minus $2 billion in terms of cash flow.

How do you know that's as bad as it gets?

Well, I think as we've put the plan together, business by business from the ground up, we understand where each of the businesses are.

Aviation and health care performing very well.

Renewables in a growth cycle, particularly here in the US.

Our challenge has been in power.

But as we look at the backlog, as we look at some of the operating improvements that we're making, we think we get through this year and see a better 2020 and '21.

When you realized you were going to possibly lose money-- as I said it's 0 to minus $2 billion-- but when you realized that, was that a surprise to you?

What changed?

Well, it wasn't so much as a surprise as really more a realization of what our reality would be this year.

When you look at the reason we're going to be negative, there are a host of issues.

But there are a number of investments we're going to make this year, about $2 and 1/2 billion, frankly, which we think really set us up longer term.

There are also some inheritance taxes we need to pay off.

And they are what they are.

That coupled with the other operating improvements that we're going to make this year I think set us up.

Now it's not a number that we're particularly pleased to put out to the market, but it's one that I think sets the tone for transparency and reality as we prepare GE for the long haul.

From your description, it sounds like power was a big factor in this as a practical matter.

How are you losing cash on power?

How does that just work?

What went wrong there?

What's the mismatch?

Well, a couple of things.

One, in the wake of the Alstom acquisition, we inherited a number of liabilities and project obligations with customers.

We're frankly-- we're not going to make money.

And the timing of those will see us put cash out in 2019.

In addition, we are heavily restructuring that business.

That's a business where we've seen demand for new gas turbines fall rather markedly the last couple of years, and we need to reset our cost structure to make sure we're profitable at lower demand levels.

Put all that together, team has a lot of work.

The numbers in 2019 aren't going to be pretty.

But I think the team understands the task ahead and is ready for the challenge.

Do you anticipate a debt review?

Are you worried about the debt rating situation?

Because there were some of those ratings that were based on some assumptions like cash that don't seem to be right anymore.

Right.

Well, I think that as we've talked to investors, it seems like investors understand that the deleveraging plan that we have in place, both for the industrial balance sheet and at GE Capital is one that's well underway.

We've announced the sale of our biopharma business.

We'll see about $20 billion in proceeds there.

Our Baker Hughes stake, one that we've earmarked for sale, is worth-- call it $12 billion.

LabTech is another option we have there.

So we have about $38 billion of resources to help us bring down the leverage on the industrial balance sheet.

Similar opportunities in capital as we make GE Capital simpler.

So we think that we're on a path to see our deleveraging goals through.

And so you don't think there'll be a rating review?

The rating agencies certainly have an eye on GE.

We're in constant communication with them.

And we try to communicate as transparently as we do with the equity markets as to where we are and where we're headed.

I think they understand that what we've done on both sides of the house puts us on a path to fortify our financials.