General Motors Company · NYSE:GM
General Motors — Q2 2007 Earnings Presentation
29 slides from General Motors's earnings presentation, Jul 31, 2007
Slide 1: Preliminary 2007 Second Quarter Results
Preliminary 2007 Second Quarter Results
Slide 2: Forward Looking Statements
Forward Looking Statements 1 In the presentations and in related comments by General Motors' management, we will use words like "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "se
Slide 3: Second Quarter Highlights
Second Quarter Highlights GAAP EPS $1.56, $891 million net income Adjusted EPS $2.48, $1,411 million net income Adjusted total automotive results improved $0.4B vs. Q2 '06 All-time record automotive revenue Continued share gains outside North America helped offset GMNA share decline due in part to r
Slide 4: Second Quarter Adjusted Results
Second Quarter Adjusted Results 3 Refer to Supplemental Charts for reconciliation to GAAP figures Refer to Supplemental Charts for reconciliation to GAAP figures
Slide 5: Corp Other / Other Financing
Corp Other / Other Financing Corp Other / Other Financing results of $0.4B $0.5B favorable vs. Q2 '06, principally related to income taxes GM adopted FIN 48 on January 1, requiring only more- likely-than-not tax positions be recognized In Q2, FIN 48 resulted in reversal of previously required tax li
Slide 6: Second Quarter Adjustments to Income
Second Quarter Adjustments to Income 5 Exclusion of special items useful for: - Management to measure operations - Comparisons between reporting periods - Investors to measure and assess company's core performance - Investors to measure and assess company's core performance - Investors to measure an
Slide 7: GMNA Second Quarter Adjusted Results
GMNA Second Quarter Adjusted Results 6 6 * Excludes results from Allison Transmission, now recorded as Assets Held For Sale
Slide 8: GMNA Vehicle Revenue Per Unit
GMNA Vehicle Revenue Per Unit Calendar Year Second Quarter Net Revenue Gross Revenue less Sales Incentives Vehicle revenue per unit excludes items such as daily rental accounting impact, Service Parts, OnStar, other outside sales 7 * Adjusted to remove Allison. Refer to Supplemental Charts for recon
Slide 9: GMNA Adjusted Net Income 2007 vs. 2006
GMNA Adjusted Net Income 2007 vs. 2006 $ Billions - Continuing Operations Only* Q2 YTD 2006 Net Income $(0.1) $(0.5) Volume (0.5) (1.6) Mix 0.7 1.1 Price / Material - (0.1) Policy & Warranty / Campaigns (0.5) (0.6) Pension / OPEB / Manufacturing 0.9 2.2 Exchange & Other Costs (0.4) (0.6) 2007 Net In
Slide 10: Overview of Other Regions
Overview of Other Regions Continued strong growth outside of North America in Q2 Combined adjusted net income of $686 million ($1.1B YTD) Revenue up 16% and share up 0.2 p.p. vs. Q2 '06 GME reported best quarterly results since Q2 1996 on strong structural cost performance and favorable pricing GMLA
Slide 11: GME Second Quarter Adjusted Results
GME Second Quarter Adjusted Results 10 10
Slide 12: GMLAAM Second Quarter Adjusted Results
GMLAAM Second Quarter Adjusted Results 11 11
Slide 13: GMAP Second Quarter Adjusted Results
GMAP Second Quarter Adjusted Results 12
Slide 14: GMAC Second Quarter Results
GMAC Second Quarter Results 13 GMAC reported $293 million net income on strength in Auto Finance and Insurance, and improved ResCap results ResCap loss of $(254) million a significant improvement from Q1 '07 Deterioration of $(802) million vs. Q2 '06 results, which included $259 million after-tax ga
Slide 15: GMAC Business Line Results
GMAC Business Line Results 14 ResCap results improved despite continuing pressure in the U.S. residential mortgage market Sharply reduced nonprime production and nonprime exposure Increased servicing fee income and lower structural cost base Auto Finance results remain robust Margins continue to imp
Slide 16: GM Liquidity Position
GM Liquidity Position 15 Strong gross liquidity position at $27.2B1 Reflects $1.4B net proceeds from Q2 convertible bond issuance Reflects $1.0B Mitigation VEBA contribution associated with GM-UAW 2005 retiree health care agreement Additional $15.3B of VEBA assets available to fund healthcare costs
Slide 17: Automotive Gross / Net Liquidity
Q4'00 YE '01 YE '02 YE '03 YE '04 YE '05 YE '06 Q1 '07 Q2 '07 Net Liquidity 5.2 4.8 4.8 3.5 -0.7 -0.3 -7.1 -10.9 -13.8 -12.3 -13.3 -12.1 Gross Cash (incl. ST VEBA) 13.2 13 13.3 11.8 11.5 17.3 26.9 23.3 20.4 26.4 24.7 27.2 17.3 17.3 23 $ Billions Automotive Gross / Net Liquidity 16 1 Year-end 2002 -
Slide 18: Second Quarter Key Cash Flow Drivers
Second Quarter Key Cash Flow Drivers 17 Adjusted Automotive Operating Cash Flow (OCF) of $1.1B; improvement of $0.5B versus Q2 2006 Excludes $0.1B OCF generated by Allison Transmission Division Q2 2007 OCF driven by positive earnings and lower cash payments relative to expense accruals Would expect
Slide 19: Automotive Cash Flow Summary
Automotive Cash Flow Summary $ Billions 2007 2006 Operating Related Q2 YTD Q2 YTD Net Income (Automotive & Corp/Other) * 0.6 0.6 (3.6) (3.6) Depreciation & Amortization 2.1 4.1 2.2 4.1 Capital Expenditures (1.7) (2.9) (1.9) (3.1) Change in Receivables, Payables & Inventory 0.2 0.2 1.0 (0.7) Pension/
Slide 20: Accrued Expenses and Working Capital
Accrued Expenses and Working Capital 19 Accrued Expenses and Other adjustment of $1.4B reflects favorable timing of cash flows relative to expense accruals and positive effect of non cash expenses: Year-to-year variance in working capital flows driven primarily by lower accounts payable buildup
Slide 21: Delphi Matters
Delphi Matters 20 UAW-Delphi-GM agreement reached in June; ratified by UAW and approved by Bankruptcy Court Provides for UAW labor transformation, including wages and benefits, employment levels and UAW claims against Delphi estate GM agreed to pay $450 million to settle UAW claim against Delphi Pay
Slide 22: Delphi Charge
Delphi Charge 21 Q2 charge of $575 million pre-tax ($374 million after-tax) Consists of incremental Delphi retiree health care costs, reimbursement of labor costs at certain Delphi facilities and reimbursement of certain pension obligations for Delphi employees As outlined in UAW-GM-Delphi agreement
Slide 23: 2007 Outlook
2007 Outlook Third Quarter Continued revenue growth on strength in emerging markets Leverage strong acceptance of new crossover utilities including ramp-up of Enclave, and prepare for key car launches in 2H Malibu, CTS, Saturn Astra, Pontiac G8 Concerns remain regarding housing market weakness and v
Slide 24: Summary
Summary Share growth and strong revenue increases continue outside North America Improved earnings and positive automotive operating cash flow Automotive liquidity strengthened further to $27.2B Delphi labor agreement reached Continued focus on revenue and structural cost Negotiations underway on UA
Slide 25: 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 Note: As previously disclo
Slide 26: Reconciliation to Adjusted Net Income / EPS Q2 - 2006 & 2007
Reconciliation to Adjusted Net Income / EPS Q2 - 2006 & 2007 $ Millions Q2 2007 GMNA GME GMLAAM GMAP Auto Elims Total Auto GMAC Corp. Other Other Financing Total Total Net Sales & Revenue 29,574 9,558 4,330 5,446 (3,012) 45,896 - 22 894 46,812 Net income (loss) for Cont. Ops. (39) 217 213 227 - 618
Slide 27: Reconciliation of GMNA Revenue Per Unit Calendar Year
Reconciliation of GMNA Revenue Per Unit Calendar Year S2 a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial veh
Slide 28: Reconciliation of GMNA Revenue Per Unit Second Quarter
Reconciliation of GMNA Revenue Per Unit Second Quarter S3 a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial ve
Slide 29: Reconciliation of Automotive Cash Flow Second Quarter & Calendar Year
Reconciliation of Automotive Cash Flow Second Quarter & Calendar Year S4