General Motors Company · NYSE:GM
General Motors — Q1 2009 Earnings Presentation
29 slides from General Motors's earnings presentation, May 12, 2009
Slide 1: Preliminary 2009 First Quarter Results
Exhibit 99.2 Preliminary 2009 First Quarter Results May 7, 2009
Slide 2: Exchange Offers Information & Forward Looking Statements
Exchange Offers Information & Forward Looking Statements Exchange Offers Information: In connection with the public exchange offers General Motors has filed documents with the Securities and Exchange Commission, including a Registration Statement on Form S-4 and a Schedule TO containing a prospectus
Slide 3: First Quarter Results Overview
First Quarter Results Overview • GAAP net loss of $(6.0)B, $(9.78) EPS incl. special items of $(73)M – Change in segment presentation, FIO included as part of Corp Sector in GAAP financial statements • Adjusted net loss of $(5.9)B, $(9.66) EPS, excl. special items • Adjusted automotive earnings befo
Slide 4: First Quarter Adjusted Results
First Quarter Adjusted Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 GMNA $ (248) $ (2,764) $ (2,516) GME 241 (1,238) (1,479) GMLAAM 500 42 (458) GMAP 310 (21) (331) Auto Eliminations 5 54 49 Total Automotive EBIT 808 (3,927) (4,735) GMAC (302) (885) (583) Corp. Other (Incl. Net Interest)
Slide 5: First Quarter Adjustments to Income
First Quarter Adjustments to Income $ Millions EPS Adjusted Net Income / (Loss) (5,902) $ (9.66) First Quarter Adjustments Gain on Debt Extinguishment 906 GMAC Related 385 SAAB Related (822) Impairments (291) Delphi Related (135) Restructuring (116) Total Adjustments (73) GAAP Net Income / (Loss) (5
Slide 6: Total Auto Adjusted EBIT – 1Q09 vs. 1Q08
Total Auto Adjusted EBIT – 1Q09 vs. 1Q08 $ Billions Q1 Key Drivers 2008 Earnings Before Int. & Tax $ 0.8 (3.8) Industry decline Volume (5.4) (1.0) Mkt. Share / Segment mix (0.6) YoY inventory change Mix (0.5) (0.5) Product / Model Option 0.7 Lease reserve adj. Price 0.6 (0.1) Pricing/incentives 1.1
Slide 7: GMNA 1Q09 Adjusted Results
GMNA 1Q09 Adjusted Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 Revenue $24,543 $12,319 ($12,224) Earnings Before Int. & Tax/(Loss) (248) (2,764) (2,516) Earnings Before Int. & Tax Margin (1.0)% (22.4)% (21.4) p.p. North America: - Production Volume (000) 885 371 (514) - GM Total Deliveri
Slide 8: GMNA Adjusted EBIT – 1Q09 vs. 1Q08
GMNA Adjusted EBIT – 1Q09 vs. 1Q08 $ Billions Q1 Key Drivers 2008 Earnings Before Int. & Tax $ (0.2) (2.2) Industry volume Volume (3.4) (0.6) YoY inventory change (0.6) Mkt. Share / Segment mix Mix (0.6) (0.6) Product / Model Option 0.7 Lease reserve adj. Price 0.4 (0.3) Pricing/incentives 1.1 Manuf
Slide 9: GME 1Q09 Adjusted Results
GME 1Q09 Adjusted Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 Revenue $9,909 $5,318 ($4,591) Earnings Before Int. & Tax/(Loss) 241 (1,238) (1,479) Earnings Before Int. & Tax Margin 2.4% (23.3)% (25.7) p.p. Total Europe: - Production Volume (000) 493 267 (226) - Industry SAAR (Mil.) 23.9
Slide 10: GMLAAM 1Q09 Adjusted Results
GMLAAM 1Q09 Adjusted Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 Revenue $4,763 $3,446 $(1,317) Earnings Before Int. & Tax/(Loss) 500 42 (458) Earnings Before Int. & Tax Margin 10.5% 1.2% (9.3) p.p. Total LAAM: - Production Volume (000) 243 185 (58) - Industry SAAR (Mil.) 7.7 6.8 (0.9) -
Slide 11: GMAP 1Q09 Adjusted Results
GMAP 1Q09 Adjusted Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 Revenue $5,296 $2,429 $(2,867) Pre-Tax Income/(Loss) 226 (87) (313) China JVs Equity Income 134 107 (27) Non-Controlling Interest (50) (41) 9 Earnings Before Int. & Tax/(Loss) 310 (21) (331) Earnings Before Int. & Tax Margin
Slide 12: GMAC 1Q09 Business Line Results
GMAC 1Q09 Business Line Results 1Q09 Fav/(Unfav) ($ Millions) 1Q08 1Q09 vs 1Q08 North America $ 154 $ 259 $ 105 International 104 (34) (138) Global Automotive Finance $ 258 $ 225 $ (33) Insurance 132 50 (82) Mortgage Operations (859) (125) 734 Corporate and Other 1 (120) (825) (705) Consolidated Net
Slide 13: Delphi Related Items
Delphi Related Items • Q1 adjustment of $0.1B to Delphi reserve – Primarily related to amounts advanced to Delphi under Advance Agreement – Total of $12.5B in net Delphi-related charges taken to date • Delphi expected to fully draw $300M available under Advance Agreement in Q2 – Temporary accelerati
Slide 14: Liquidity Summary
Liquidity Summary • Liquidity position of $11.6B at March 31, 2009 – Decrease of $2.6B from prior quarter driven primarily by negative OCF of $(10.2)B offset by U.S. TARP funding • Net liquidity of $(42.8)B, a decrease of $11.1B from prior quarter – Debt balance in Q1 2009 at $54.4B, including U.S.
Slide 15: U.S. TARP Balances and Accounting Treatment
U.S. TARP Balances and Accounting Treatment • As of March 31, 2009, GM had received $13.4B of TARP funding under LSA, plus an additional $0.9B related to GM’s investment in GMAC (related to GMAC achieving Bank Holding Company status) – GM issued an additional note to UST for $0.7B related to stock w
Slide 16: Cash Flow Summary
Cash Flow Summary ($ Billions) 1Q 2008 1Q 2009 F/(U) GAAP Net Income (3.3) (6.0) (2.7) Adjustment to Exclude Taxes 0.7 (0.1) (0.8) Earnings Before Tax (2.6) (6.1) (3.5) Depreciation & Amortization 2.2 2.5 0.3 Capital Expenditures (1.9) (1.6) 0.3 Change in Receivables, Payables & Inventory (2.2) (1.9
Slide 17: Key Cash Flow Drivers
Key Cash Flow Drivers • Significant variance in Accrued Expenses and Other driven by Special Charges, GMAC-related items, Sales Allowances and Policy & Warranty Accrued Expenses & Other 1Q 2008 1Q 2009 F/(U) Delphi Reserve 0.7 0.1 (0.6) Saab Related Charges - 0.8 0.8 Saab Related Payments - (0.3) (0
Slide 18: Second Quarter Perspectives
Second Quarter Perspectives • Inventory adjustments in GMNA • Execution of our Plan – Brand resolution – Dealer consolidation and reduction – Structural cost and capacity action – Strengthen balance sheet • Managing bankruptcy risks – Consumer perception – Planning for contingency • European ownersh
Slide 19: Reinventing GM
Reinventing GM • Focused 4 core brand distribution strategy supported by 3 channels • Fewer, stronger, well-supported nameplates • Strong dealer footprint of ~3,600 dealers in superior & prime locations • Lean, flexible, well-utilized manufacturing facilities • Benchmark structural cost levels enabl
Slide 20: Portfolio Renaissance Continuing
Portfolio Renaissance Continuing Select Current & Upcoming Launches North America Europe 18
Slide 21: Earnings Metrics Change (EBT to EBIT)
Earnings Metrics Change (EBT to EBIT) APPENDIX • Beginning Q1 2009, adjusted results will be discussed on the basis of earnings before interest and taxes – Interest expense/income will be shown in our corporate sector on a consolidated basis – Allows focus at region and business unit level to be on
Slide 22: Supplemental Charts
Supplemental Charts The following supplemental charts are provided to reconcile adjusted financial data comprehended in the primary chart set with GAAP- based data (per GM’s financial statements) and/or provide clarification with regard to definition of non-GAAP terminology S-0
Slide 23: Reconciliation to Adjusted Net Income / EPS 1Q09
Reconciliation to Adjusted Net Income / EPS 1Q09 $ Millions, except for EPS Total Auto Corp / Corp / Quarter ended March 31, 2009 GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Other Total Total net sales & revenue 12,319 5,318 3,446 2,429 (1,259) 22,253 - 178 - 22,431 Earnings before interest and
Slide 24: Reconciliation to Adjusted Net Income / EPS 1Q08
Reconciliation to Adjusted Net Income / EPS 1Q08 $ Millions, except for EPS Total Auto Corp / Corp / Quarter ended March 31, 2008 GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Other Total Earnings before interest and taxes (EBIT) (449) 118 500 310 5 484 (1,612) (956) (2,568) (2,084) Interest inco
Slide 25: Reconciliation to EBIT – 2Q08 Reported to Adjusted
Reconciliation to Earnings Before Interest & Taxes (EBIT) – 2Q08 Reported to Adjusted $ Millions Auto Quarter ended June 30, 2008 GMNA GME GMLAAM GMAP Elims Total Auto Reported earnings before interest and taxes (EBIT) (8,929) 58 347 (137) (13) (8,674) Pre-tax adjustments: Special attrition program
Slide 26: Reconciliation to EBIT – 3Q08 Reported to Adjusted
Reconciliation to Earnings Before Interest & Taxes (EBIT) – 3Q08 Reported to Adjusted $ Millions Auto Quarter ended September 30, 2008 GMNA GME GMLAAM GMAP Elims Total Auto Reported earnings before interest and taxes (EBIT) (115) (958) 450 24 (53) (652) Pre-tax adjustments: UAW VEBA Curtailment (3,6
Slide 27: Reconciliation to EBIT – 4Q08 Reported to Adjusted
Reconciliation to Earnings Before Interest & Taxes (EBIT) – 4Q08 Reported to Adjusted $ Millions Auto Quarter ended December 31, 2008 GMNA GME GMLAAM GMAP Elims Total Auto Reported earnings before interest and taxes (EBIT) (3,246) (1,855) (176) (904) 146 (6,035) Pre-tax adjustments: Impairments 531
Slide 28: Reconciliation to EBIT – CY08 Reported to Adjusted
Reconciliation to Earnings Before Interest & Taxes (EBIT) – CY08 Reported to Adjusted $ Millions Auto Year ended December 31, 2008 GMNA GME GMLAAM GMAP Elims Total Auto Reported earnings before interest and taxes (EBIT) (12,739) (2,637) 1,121 (707) 85 (14,877) Pre-tax adjustments: Restructuring & 20
Slide 29: Reconciliation of Automotive & Corp. Other Cash Flow (1Q09)
Reconciliation of Automotive & Corp. Other Cash Flow (1Q09) General Motors Corporation GAAP to Managerial Cash Flow reconciliation $ Billions Q1 2008 Q1 2009 Net Cash Provided By Operating Activities (GAAP) * (1.6) (9.4) Reclassifications to/ (from) U.S. GAAP - Expenditures for PPE & Special Tools (