General Motors Company · NYSE:GM
General Motors — Q3 2012 Earnings Presentation
39 slides from General Motors's earnings presentation, Oct 31, 2012
Slide 1: General Motors Company Q3 2012 Results
General Motors Company Q3 2012 Results October 31, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned,” “outlook” or
Slide 3: Third Quarter 2012 Performance
Third Quarter 2012 Performance 2 Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax (EBT) basis Q3 ‘11 Q3 ‘12 vs. Q3 ‘11 Global Deliveries 2.2M 2.3M Net Revenue $36.7B $37.6B Net Income to Common $1.7B $1.5B Net Cash from Operating Activities - Automotive $1.8B $3.1B EBIT- Adjusted
Slide 4: Third Quarter 2012 Highlights
Third Quarter 2012 Highlights • Product momentum in Europe • Global Chevrolet record sales • Cadillac product portfolio breadth • China record sales continue • Continuing to transform the company 3
Slide 5: Summary of Q3 2012 Results
Summary of Q3 2012 Results 4 Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax (EBT) basis Q3 Q3 2011 2012 Net Revenue ($B) 36.7 37.6 Operating Income ($B) 1.8 1.6 Net Income to Common Stockholders ($B) 1.7 1.5 EPS – Diluted ($/Share) 1.03 0.89 Net Cash from Operating Activities –
Slide 6: Impact of Special Items
5 Impact of Special Items Q3 Q3 2011 2012 Net Income to Common Stockholders ($B) 1.7 1.5 EPS – Diluted ($/Share) 1.03 0.89 Included in Above ($B): GM Korea Goodwill Impairment - (0.1) Total Impact Net Income to Common Stockholders ($B) - (0.1) Total Impact EPS – Diluted ($/Share) - (0.04)
Slide 7: Q3 EBIT-Adjusted
2.2 (0.3) 0.4 0.0 0.2 (0.2) 2.2 1.8 (0.5) 0.7 0.1 0.2 (0.1) 2.3 GMNA GME GMIO GMSA GM Financial* Corp. / Elims Total GM Q3 2011 Q3 2012 EBIT- Adjusted ($B) Note: Results may not foot due to rounding 6 Q3 EBIT- Adjusted * GM Financial at an Earnings Before Tax basis (EBT)
Slide 8: Consolidated EBIT-Adjusted
2.2 1.1 2.2 2.1 2.3 0.0 1.0 2.0 3.0 4.0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Consolidated EBIT- Adjusted ($B) Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax (EBT) basis 7 Revenue ($B) 36.7 38.0 37.8 37.6 37.6 Oper. Inc % Rev 4.9% 1.2% 2.6% 4.8% 4.3% EBIT- Adj. % Rev 6.0 2.9
Slide 9: Consolidated EBIT-Adj. – Q3 2011 vs. Q3 2012
2.2 2.3 0.3 (0.5) 0.6 (0.3) 0.0 Consolidated EBIT- Adj. – Q3 2011 vs. Q3 2012 Q3 2011 Q3 2012 $0.1B Increase 8 Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax (EBT) basis EBIT-Adj. EBIT-Adj. Volume Price Cost Other Mix ($B)
Slide 10: Key GMNA Performance Indicators
2,500 3,000 3,500 4,000 4,500 5,000 5,500 6% 8% 10% 12% 14% 16% 18% 20% 22% Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Key GMNA Performance Indicators Avg. U.S. Retail Incentive as % of ATP GM % 9.7 10.1 9.8 8.9 10.7 10.4 10.0 10.1 11.0 11.0 11.0 10.7 10.8 10.6 9.5 GM vs. Ind. (GM % / Ind. %) 0.99 1.03
Slide 11: GMNA EBIT-Adjusted
Revenue ($B) 21.9 23.1 24.2 22.9 23.3 EBIT- Adj. % Rev 10.0% 6.5% 7.0% 8.6% 7.8% U.S. Dealer Inv (000’s) 558 583 713 701 689 Production (000’s) 740 739 862 837 763 GMNA Share 18.8% 17.5% 16.7% 17.4% 16.9% 2.2 1.5 1.7 2.0 1.8 0.0 1.0 2.0 3.0 Q3 2011 Q4 201 Q1 2012 Q2 2012 Q3 2012 GMNA EBIT- Adjusted
Slide 12: GMNA EBIT-Adj. – Q3 2011 vs. Q3 2012
2.2 1.8 0.3 (0.4) 0.3 (0.3) (0.4) GMNA EBIT- Adj. – Q3 2011 vs. Q3 2012 Q3 2011 Q3 2012 $0.4B Decrease 11 EBIT-Adj. EBIT-Adj. Volume Price Cost Other Mix ($B) Note: Results may not foot due to rounding
Slide 13: GME EBIT-Adjusted
(0.3) (0.6) (0.3) (0.4) (0.5) -1.0 0.0 1.0 2.0 3.0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 GME EBIT- Adjusted ($B) 12 Revenue ($B) 6.2 6.3 5.5 5.9 5.1 EBIT- Adj. % Rev (4.7)% (9.0)% (4.6)% (6.1)% (9.4)% Production (000’s) 270 249 292 230 196 GME Share 8.8% 8.6% 8.2% 8.8% 8.6%
Slide 14: GME EBIT-Adj. – Q3 2011 vs. Q3 2012
(0.3) (0.5) GME EBIT- Adj. – Q3 2011 vs. Q3 2012 Q3 2011 Q3 2012 $0.2B Decrease 0.1 (0.1) (0.1) 0.0 13 EBIT-Adj. EBIT-Adj. Volume Price Cost Other Mix ($B) (0.1)
Slide 15: GMIO EBIT-Adjusted
0.3 0.3 0.4 0.3 0.4 0.3 0.4 (1.0) 0.0 1.0 2.0 3.0 GMIO EBIT- Adjusted ($B) Revenue ($B) EBIT-Adj. margin from consolidated operations* Total China JV NI/Rev** 6.1 (0.6)% 10.5% 7.0 1.5% 8.4% 6.1 2.1% 10.2% 6.9 4.3% 9.3% 6.7 4.4% 9.7% Total Production (000’s) 968 1,104 1,067 1,095 1,056 GMIO Share 9.6
Slide 16: GMIO EBIT-Adj. – Q3 2011 vs. Q3 2012
0.4 0.7 0.1 (0.2) 0.2 0.0 0.2 GMIO EBIT- Adj. – Q3 2011 vs. Q3 2012 Q3 2011 Q3 2012 $0.3B Increase 15 EBIT-Adj. EBIT-Adj. Volume Price Cost Other Mix ($B)
Slide 17: GMSA EBIT-Adjusted
0.1 (1.0) 0.0 1.0 2.0 3.0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 GMSA EBIT- Adjusted ($B) Revenue ($B) 4.4 4.2 3.9 4.2 4.3 EBIT- Adj. % Rev (1.0)% (5.4)% 2.1% (0.5)% 2.6% Production (000’s) 243 227 203 231 222 GMSA Share 18.7% 18.4% 18.4% 18.2% 17.9% 0.0 (0.2) 16 0.0 0.1
Slide 18: GMSA EBIT-Adj. – Q3 2011 vs. Q3 2012
0.1 GMSA EBIT- Adj. – Q3 2011 vs. Q3 2012 Q3 2011 Q3 2012 $0.1B Increase 0.1 (0.1) (0.1) 0.0 0.0 17 0.2 EBIT-Adj. EBIT-Adj. Volume Price Cost Other Mix ($B)
Slide 19: Automotive Free Cash Flow – Q3 2011 vs. Q3 2012
Automotive Free Cash Flow – Q3 2011 vs. Q3 2012 18 Note: Results may not foot due to rounding ($B) Q3 2011 Q3 2012 Net Income to Common Stockholders 1.7 1.5 Add-back Non-Controlling Interests, Preferred Dividends & undistributed earnings allocated to Series B 0.4 0.4 Deduct Non-Auto (GM Financial) (
Slide 20: Key Automotive Balance Sheet Items
Key Automotive Balance Sheet Items ($B) Sept. 30 2011 Jun. 30 2012 Sept. 30 2012 Cash & marketable securities 33.0 32.6 31.6 Available Credit Facilities 5.9 5.8 5.9 Available Liquidity 38.8 38.5 37.5 Key Obligations: Debt 4.2 5.1 5.6 Series A Preferred Stock 5.5 5.5 5.5 U.S. Pension Underfunded Stat
Slide 21: GM Financial Performance and Linkage
Q3 Q3 Q3 Q3 2011 2012 2011 2012 GM Sales Penetrations U.S. Subprime APR (<=620) 6.7% 8.1% 5.2% 5.7% U.S. Lease 11.5% 16.2% 20.7% 21.0% Canada Lease 9.4% 7.0% 15.0% 17.3% GM / GM Financial Linkage GM as % of GM Financial Consumer Originations (GM New / GMF Loan & Lease) GMF as % of GM U.S. S/P & Leas
Slide 22: Summary Pension Financial Impact
Summary Pension Financial Impact 21 Subject to final valuation and related information * Includes $54M settlement charge in Q3 Change $B 6/01/12 (Est.) Current (Est.) Reduction in Pension Benefit Obligation ~26 ~28.7 Cash (3.5) - (4.5) ~(2.6) P&L - One Time (Pre-Tax) (2.5) - (3.5) ~(2.9)* P&L - Recu
Slide 23: U.S. Salaried Pension Funded Status
U.S. Salaried Pension Funded Status 22 Subject to final valuation and related information (1)Reflects net pension expense, impact of changes in discount rates, and actual asset returns through 10/15/12 $B Obligations Assets Funded Status 1/1/2012 35.9 33.3 (2.6) Remeasurement and Other(1) 4.4 3.4 (1
Slide 24: Q4 2012 Outlook
Q4 2012 Outlook 23 • Consolidated Q4 EBIT-adjusted to follow typical seasonal trends with results estimated to be similar to, or slightly better than 2011 • If positive financial trends continue, reversal of significant portion of valuation allowance on U.S. and Canadian deferred tax assets is possi
Slide 25: GME Path To Profitability
Customer New Management Team Fixed Cost Cash Generation Revenue / Variable Profit GME Path To Profitability 24
Slide 26: GME Management Team
GME Management Team • Strong company leadership on Opel Supervisory Board • Significant operational leadership changes • Strong mix of inside and outside talent 25
Slide 27: Improve Revenue / Variable Profit
Improve Revenue / Variable Profit • Focus on quality of share/brand image • 23 new models and 13 new engines by 2016 – Mokka, Adam and Cascada in new segments • Improve profitability on current/future products – 500 euro/car on current Astra, from both revenue and cost improvement • Expansion of aut
Slide 28: Intense Focus on Fixed Costs / Cash Preservation
Intense Focus on Fixed Costs / Cash Preservation • Company and dealer-owned inventory reduced over 100,000 units from February – Additional 20,000 by year-end – Totals 47% reduction in company-owned stock • Fixed cost estimated to be down $300M in 2012 -- targeting another $500M between 2013 and 201
Slide 29: Path to Profitability
Path to Profitability 28 Variable Cost • Material Cost reduction • Logistics savings (GEFCO) Volume / Revenue • Moderate industry recovery • 23 new models / strengthened brands • Expansion of auto financing • New Go-To-Market strategy Fixed Cost • Improved capacity utilization • Headcount reductions
Slide 30: Outlook for GM Europe
Outlook for GM Europe • GME EBIT-adjusted for 2012 CY estimated at $1.5 billion to $1.8 billion loss, depending on level of Q4 restructuring activity • Targeting 2013 EBIT-adjusted to be slightly better than 2012 • Targeting EBIT-adjusted breakeven by mid-decade 29
Slide 31: Select Supplemental Financial Information
General Motors Company Select Supplemental Financial Information
Slide 32: Global Deliveries
Global Deliveries Note: GM deliveries include vehicles sold around the world under GM and JV brands, and through GM-branded distribution network. S1 (000’s) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 GMNA 746 712 704 820 759 GME 412 417 398 455 382 Chevrolet in GME 131 141 122 155 138 GMIO 811 844 928
Slide 33: Global Market Share
Global Market Share Note: GM market share include vehicles sold around the world under GM and JV brands, and through GM-branded distribution network. Market share data excludes the markets of Iran, North Korea, Sudan and Syria S2 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 GMNA 18.8% 17.5% 16.7% 17.4% 1
Slide 34: Operating Income Walk to EBIT-Adjusted
Operating Income Walk to EBIT- Adjusted S3 Note: EBIT-Adj. includes GM Financial on an Earnings Before Tax (EBT) basis Q3 Q3 2011 2012 Operating Income 1.8 1.6 Equity Income 0.4 0.4 Non-Controlling Interests 0.0 0.0 Non-Operating Income 0.0 0.2 Special Items 0.0 0.1 EBIT- Adjusted 2.2 2.3 ($B)
Slide 35: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT- Adjusted S4 Note: EBIT-Adj. includes GM Financial on an Earnings Before Tax (EBT) basis Q3 Q3 2011 2012 Net Income to Common Stockholders 1.7 1.5 Add Back: Undistributed earnings allocated to Series B (Basic) 0.2 0.1 Dividends on Preferred Stock 0.2 0.2 Interest Expense / (In
Slide 36: Restructuring (not included in special items)
Restructuring (not included in special items) ($B) Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 GMNA – Dealer Related 0.0 0.0 0.0 0.0 0.0 GMNA – Non-Dealer Related (0.1) 0.0 (0.1) 0.0 0.1 Total GMNA (0.1) 0.0 (0.1) 0.0 0.1 Total GME (0.1) (0.2) 0.0 0.0 0.0 Total GMIO 0.0 0.0 0.0 0.0 0.0 Total GMSA 0.0 (0
Slide 37: Reconciliation of Automotive Free Cash Flow
Reconciliation of Automotive Free Cash Flow S6 ($B) Q3 Q3 2011 2012 Net cash provided by operating activities 2.0 3.4 Less net cash provided by operating activities-GM Financial (0.2) (0.3) Automotive Net Cash Provided/(Used) Operating Activities 1.8 3.1 Capital expenditures (1.5) (1.9) Automotive F
Slide 38: GM Financial – Key Metrics
GM Financial – Key Metrics ($M) Q3 2011 Q3 2012 Earnings Before Tax 178 200 Total Loan and Lease Originations 1,547 1,777 GM New Vehicles as % of Total 39.3% 43.5% Commercial Finance Receivables - 284 Consumer Finance Receivables 9,438 10,853 Delinquencies (>30 days)(1) 6.4% 7.1% Annualized Net Cred
Slide 39: Calculation of EBIT-Adj. as a Percent of Revenue
Calculation of EBIT- Adj. as a Percent of Revenue Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax (EBT) basis; Results may not foot due to rounding; Certain data has been adjusted to conform to the current presentation S8 Total GM Q3 Q4 Q1 Q2 Q3 2011 2011 2012 2012 2012 Revenue