This is 40 minutes. It is a great pleasure to introduce today and welcome jeffrey immelt, the chairman and ceo of general electric, our newest corporate citizen. Dartmouthated from with a degree in applied sciences and went to harvard to get his mba. He spent his first 19 years at ge in Global Leadership ts biggestof i businesses including appliances, plastics, health care. , he succeeded jack welsh as the ceo. It is been said it is easier to succeed and inadequate ceo than an adequate one. So he had his work cut out for him. He succeeded the role four days before the 9 11 attacks. Nevertheless, in the 14. 5 years ge, hes been the ceo of has transformed the company by focusing on energy, health care, and transportation. Aeating its core as Materials Company manufacturing jet engines, locomotives, gas turbines, and mri scanners. In that process he has divested nba, nbc universal, and appliances. More recently, is selling ge capital which until a few years ago was responsible for 50 of the revenue of the company. In a word, this is jeffs company. He has commented it is no longer the Consumer Products company but a hightech, future product company. He wants them to be at the intersection of physical technology and analytical software. He has embedded its products with Digital Intelligence and communications to make the machines run better, last longer. , in that regard in that regard, they created a new Digital Division which consolidated approximately 1200 ge software developers. This effort will involve retrieving massive amounts of data from ge machines and analyzing their data to determine things like how to improve performance, longevity, preventative maintenance. I tell you that i know of no executive in any company more focused on Big Data Analytics and running a business than jeffrey immelt. During his tenure, he has brou ght jobs back to the united states. Ge is the secondbiggest exporter of products in the country. This is innovation at its best. Ge has chosen the right city to supply the resources it needs to achieve. Its goals. It is not a surprise that jeff immelt has been recognized by forbes and the Financial Times as the best ceo in the world. Ive beenoutdone, told he is about to be named best ceo in the galaxy. [laughter] it is hard to imagine in this new world of big data, software, pen analytics what will hap to the manufacturing process and the need for better skilled workers. At the present time, ge data s how that a jet engine has less than 5 labor. A refrigerator has less than two hours of labor. The talk in the industry is, within five years, a ge plant will have but two custodians, a man and a dog. The men will be there to feed the dog, and the dog will be there to keep the man away from the equipment. [laughter] with that, i give you jeff immelt. [applause] mr. Immelt wow. Exciting. Thats great. I would note that you had a longer intro than i did. Theob is a lawyer, stick to law bob. Let me worry about manufacturing. It is a pleasure and honor to be here with you. One of the questions on peoples mines is where you might peoples minds is where you might place the headquarters. Maybe you can announce that today. Mr. Immelt right near the seaport, by the old gillette building. Two existing buildings and we will build on 2. 5 acres at the seaport. We will be there this summer with temporary housing. August 22 will have a couple hundred people here. We planned to have about 200 people from corporate and about 800 people in labs. We think by the time it is said and done, there should be 4000 jobs around the ecosystem in boston. We are excited to be here. [applause] its a good location. We will have a building right there on the channel, at the seaport. We want you to be proud of it. We are proud to be here. Logo that isa ge about 20 stories high [laughter] that was the most important part of the deal. Proudlly want you to be of us. We are proud to be here. Bob we are definitely very proud and excited. Ge is famous for People Management am a leadership development. Its one of the key underpinnings of the success of ge. Now that you are in boston, how will you judge boston as a community and contributor to ge. What do we have to do to be among the top 25 contributors as you look around the world. Mr. Immelt first, i would say its a twoway street. Here is what we can do to for you. Jobsly, the economics, the i say the most important thing any company can bring its a competitive spirit. We want to win. We want to bring that competitive spirit for what we do. We want to bring that. Ge is a working persons company. People get back to the community. They know what it means to give back to public high schools, to volunteer in hospitals and things like that. I think you will find us a generous neighbor and town. Those are the things that we can bring to the city. The startupools and ecosystems in boston is amazing. More than 50 universities, lots of alums are with ge. The historic startup culture is astounding. Industries, the town does extremely well. We want to be part of this ecosystem of universities and scholarships in this sea of ideas. 20 of the s p 500, as we sit here today, is from Consumer InternetCompanies Less than 20 years old. They are in San Francisco and seattle. Almost all of their leaders went to mit and places like that. My thought is, there might be a chance to be a good convener here. The next generation, in 1520 years, probably 20 of the s p 500 will be the merger of data and physics. This is a real there are buzzwords, industrial internet, but it is real and it is going to happen. If boston is not the headquarters of that flow shame on both of us. It will mean that ge hasnt done what we think we can do, and the town hasnt done what it can do. Coming atnother wave us in terms of technology and change equal to or bigger than Consumer Internet 20 years ago. Boston needs to get more than its fair share. We are betting on our ability to be part of that as it evolves. In the boston setting, this was the genesis of a lot of big iron, which we are comfortable with, but it has to be equally good with big data. There is no reason boston cannot be this city for the next 20 years the way Silicon Valley and seattle were for the last 20 years. Its our job to do that together. Bob amen. Mr. Immelt our bet is that we want to win in that space. We dont want this revelation to go forward and not have ge investors and people get the most out of that. Like sciences, boston can lay claim to being either the best or among the best, but there is more to come. Our that is that we can be part workingand owkri with the universities and the best science and education schools here to make that happen in this town. Bob you are so large and so diverse, how do you work with outside partners, like startups in particular. You have excellence in certain areas and maybe amazing, Innovative Technology but lack a lot of the mr. Immelt it is really hard. Almost every big company has a ventures group. Weis so hard to make sure bring our best and dont end up squashing the Company Inside our own bureaucracies and things like that. I would love to say ge is a perfect company, but we are not. The trick is to find the winwin. We had a couple starts at it. We hired a woman from a Venture Capitalist who runs our operations headquartered in california, but we have people all over the world. The trick is to do what you are doing here in boston. We dont take and we stake in a company that doesnt take an equity stake in a company that doesnt have how do you get your first order, how do you make things. The thing if youre starting a company you really need, we have to be able to deliver. We have much more discipline about how do they fit in our own product and technical roadmap, and differentiating between when we take an investment in a company, and we think it will fit longterm with what ge is doing. Sometimes its just because we think it is a good idea and will make money. 70 of the former, 30 of the latter. The day we take a stake, your assigned to the ge team, and its a bit bet to get the most out of. Bob you are super diverse. Aviation, health care, a massive breadth of industries and expertise. How do you Foster Collaboration and what can we learn in boston to be part of that collaborative environment . Mr. Immelt i would say we have what we call the ge store. Its a couple core processes we do across the company. We want to help the team the Credit Health care, the Aviation Team to be great aviation, the power team to compete against conglomerates or single point companies, but then we drive technology, we drive globalization, we drive how we interface with customers, we drive culture across the company in a more unified way. As an investor you say, by doing that are our margin returns better than competitors. If the answer is yes, we have earned the right to say that our Business Model works. My countries into nbc was make better shows. It wasnt, go to the research lab or help you in china, it was, please dont make shows that stink that badly. Nbc belonged someplace else. It did not belong inside ge. We are philosophical about the things that we do best and making sure that we do it. Part of our culture is the belief that markets rule. Customers determine or its success. If you really believe you have to be open to any new idea or technology, we are not going to invented all in our country. We have to be a place where people want to come and work with us to develop the future. Again,antage we have im here today as just a friend talking. The advantage we have at Venture Capital is we have seen we manage through cycles. Some of our businesses are going through a tough cycle, but we have other businesses that make up for that. I took over after 9 11. Let me tell you, it was no business on earth that was worse than the commercial aviation business. Market share of jet engines and we owned 1200 aircraft and there was no place to hide. That business stunk for three or four years. Now there is a big backlog. People quite like it today. 2004, this is why you have some aircraft . Because we do. We have to work through the cycle. The thing we bring, if you are Venture Capitalist, if two Companies Work or dont work, that is good. If you are a company, you are willing to spend time and work through the down cycle. That is ok. That is a strength we bring that, maybe, we both have a room in a world. Venture capitalists are awesome, they do great things. But managing through cycles is something we can bring culturally that is harder for startups. Give you a much longer time frame. Love times i think about business, you can grow the pie,ncrease the size of the market or you can fight over market share within the existing market. How do you think about the value of creation . I see the being awesome opportunities across the globe, a lot of people not a part of the Global Economy that we can integrate more. How do we integrate more people into the economy, into the system and create more value . I would make to general comments. The first one, a slow growth world. Youre going to live in a world where the u. S. Is ok, the rest of the world is more or less minuteed by central bank gliding currency. Manipulating currency. There has essentially been the reform in the world so the central bankers have taken the place of what governments have done. You have decent growth is not robust growth. You havealbank centralbank difficulty everywhere else. China is in transition. And populism. Four things going on that at up to slow growth and volatility. If you are waiting for the next tailwind, you will be stuck for a wild. There is no while. It is not that things are terrible like a was in 2008. View just up the general of tailwinds, economic cycles. Sometimes i go to an investor and i say what you think about the economic cycle. I say what cycle. We are at negative Interest Rates in your. Native Interest Rates in japan. Currencies are fluctuating plus or 7 . Is everythingay today is about productivity. Everything is about speed and productivity. Anything we can do to bring more productivity to our customers and our suppliers is great. Thoughtsay as a general , our focus is on adding more value through visual analytics with our customers and critic more value with our supply chain. We are basically not focused on making the company broader, we are making the company deeper. That is the way we do generating view generating growth. Youre going to have to do more op x models. There are lots of ways to grow. Made with people who dont have electricity, you have to bring Financing Solutions at the same time youre bringing products. , createtry productivity solutions, you can be deeper, that is how we grow. Company. 0 billion we like to grow the company 5 organically. A 130 onot bad with dollar base. That is good. I want to open up for questions. In the meantime, boston is a big sports town. You a fan of any teams . [laughter] i met robert at this luncheon in 2002. At that time we owned nbc. Nbc had just punched out all the nfl contracts. Nbc, back in the nfl. I said, hey bob, we are number one right now. Too expensive, we cant afford the nfl. Two years later, we went from number one to number four. And i was begging robert to get us back into the nfl. [laughter] i was begging to get back into the nfl. Im a bit pictures been. I love the patriots. I was go to school in New Hampshire in 1975 when Bernie Cargill hit the big home run. Im not in love with the red sox. It has gotten better. Big bob kraft fan and im a big patriots been. Fan. I figure this long enough that im a student of culture and leadership. See a culture you culture when you see the patriots and leadership. Know robert chance and i growth in cincinnati to their better so they are better than the bengals. I have those two things going for me. In your intro, he were talking other culture of winning, i thought immediately of the patriots and robert. The would to add to governor in milwaukee. Day, we allf the believe in transparency. There has been a lot written about how ge what about his ,rocess, what i would say is were going to get back to the community. To take my word for this. Were going to get back for any dollar you think was invested here, there are a lot of places we could have gone, you will get back a thousand fold. Take my word for it. Just trust me for it. [applause] you will get back a thousand fold. The fact that you have a republican governor and a democratic mayor that actually could Work Together and actually had a bigger vision for what this meant is unique. Both of them think craft because of it. [laughter] that is actually quite a positive. We are 140 years old. A new York City Company that moved to connecticut. This is a longterm investment for us. His you are investing in infrastructure of universities and the feeling of how people want to run their daytoday life. Those are positives. That stuff you cant quantify. It is much more important than anything else. I think we have the most enlightened government in the country. That is not saying a lot right now. [laughter] fair enough. That is a pretty low bar. Better than not being the most enlightened. At least we had that. But the governor and america worker closely. Great community to work with. You will be very welcome and happy here. You made the right decision and i think massachusetts is going through a renaissance. Period. It is the best place to be in the world. We are super happy to have you. Yet, butite number one we can be number one. Lets open it up for questions. Around . Cs being passed i am joanne simonsen, we support 7000 people with his abilities in massachusetts. I have a hypothetical question. Suppose my husband worked for g for 29 years eight months and 13 days, and he invested 99 of his 01k stock, i was not that is a good strategy. Want to note that is a good strategy. If you want consistent growth and good living, i would say todays diversification is a good thing. Conglomerates go in and out of favor. I think theyre coming back in favor just because the world is so volatile. Executing on the pivot from capital has been important for investors. Consistency, capital allocation, whatever growth is out there, we are going to get. Ticket tong to get a growth the most Exciting Technology in the next decade or so. Husband tighter husband i put 100 of every 401 k in ge stock. I will never sell or share. Everything i have, other than boston real estate, is in bost. Other questions from the crowd . Quiet crowd today. One appear. One up here. Here it comes. Hi, im diane. Im here in the corner. If the governor of connecticut asked for an interview, what would you say when someone leaves in a situation that connecticut has just gone through. What are some think they did right or wrong . It is a loss for them. Im not to say anything bad about connecticut. It was a great place to live. We have a lot of friends there. Being able Public Servant today is a hard job. I think for all of us, it is about the future. It is about who is willing to nowt for 510 years from versus protecting the past. That is true for companies and for government. On 100 e going to dwell of backward looking, it is a hard world. Toyou are willing to lean in those technologies, changes, collaborations, and that is what companies have to do today and that is what government have to do today. It does not matter if you are in connecticut or massachusetts or texas or ohio, if you are looking backwards, youre going to lose. I cant say anything bad about the people, because i think they work hard. Therly, we liked communities we lived in. This move for ge is all about the next 40 years. What it was the company to look like, how we want the company to be challenged, i want people that are town at this report. I want them to walk out of their Office Every Day and be terrified. I want them to be paranoid about the world that they are in,