General Motors Company · NYSE:GM
General Motors — Investor Presentation (January 2012)
32 slides from General Motors's investor presentation, Jan 17, 2012
Slide 1: Exhibit 99.1
Exhibit 99.1
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” or similar exp
Slide 3: Dan Akerson, Chairman and CEO
DAN AKERSON Chairman and CEO
Slide 4: Business Strategy
BUSINESS STRATEGY Business Model Significantly Lower Risk Profile Leverage to Global Growth
Slide 5: Business Strategy
BUSINESS STRATEGY Business Model Significantly Lower Risk Profile Leverage to Global Growth
Slide 6: Business Strategy
BUSINESS STRATEGY Business Model Significantly Lower Risk Profile Leverage to Global Growth
Slide 7: Business Strategy
BUSINESS STRATEGY Business Model Significantly Lower Risk Profile Leverage to Global Growth
Slide 8: Business Strategy: Design, Build and Sell The World's Best Vehicles
BUSINESS STRATEGY Business Model Significantly Lower Risk Profile Leverage to Global Growth Design, Build and Sell The World’s Best Vehicles
Slide 9: Tim Lee, President, GMIO
TIM LEE President, GMIO
Slide 10: GMIO Overview
OVERVIEW ¶ GM’s largest region covering 80% of world’s population and 50% of world’s GDP ¶ Represents 50% of global industry ¶ 60% of GM’s growth by 2015 will be driven by GMIO ¶ GM and it’s JVs in China sold a record 2.55 million vehicles in 2011 ¶ Chevrolet: Fastest-growing major OEM brand – 29% o
Slide 11: 2011 Achievements
2011 ACHIEVEMENTS Yet another Record Year… ¶ Leveraged growth with great vehicles – All time record: 33 launches, 3.7M units, 9.7% share ¶ $1.5B EBIT-adjusted through Q3 2011 ¶ Conquering: Floods, Tsunami, Revolution, Snow and Economy Note: GM share in IO includes Russia and CIS and excludes markets
Slide 12: 2005-12: Overall IO Industry Growth
2005-12: OVERALL IO INDUSTRY GROWTH 6.0 7.0 9.0 9.0 14.0 18.5 19.1 21.0 16.0 17.0 18.0 18.0 15.0 17.9 17.9 20.0 2005 2006 2007 2008 2009 2010 2011 2012F CAGR – Compound Annual Growth Rate Source: Global Insight Industry Forecast, including Russia and CIS, excluding Iran and Israel 22 24 27 27 29 36
Slide 13: 2012 For Major Markets
2012 For Major Markets ‘
Slide 14: Continuous Momentum in China
CONTINUOUS MOMENTUM IN CHINA 2,352 2,547 12.9% 13.6% 12.1 12.5 12.9 13.3 13.7 2,200 2,300 2,400 2,500 2,600 2010 2011 (000 ) GM Volume GM Share % Challenges ¶ External economic/political challenges ¶ Government leadership changes ¶ Speed and uncertainty of China market ¶ Intensifying competition Opp
Slide 15: Opportunities in India
OPPORTUNITIES IN INDIA 110 112 3.7% 3.5% 0.0 1.0 2.0 3.0 4.0 104 106 108 110 112 114 2010 2011 (000 ) GM Volume GM Share % ¶ Partner Synergies: New entries in fast growing Small Car segment, establishing presence in Mini CV segment, and increasing localization ¶ Full year sales of Beat diesel ¶ Chal
Slide 16: Significant Launches in Russia
SIGNIFICANT LAUNCHES IN RUSSIA 159 244 8.0% 9.0% 6.2 6.7 7.2 7.7 8.2 8.7 9.2 0 50 100 150 200 250 300 2010 2011 (000 ) GM Volume GM Share % ¶ 3rd largest automotive group in Russia with Chevrolet being the #1 foreign brand for 5 consecutive years ¶ 14 launches planned for 2012 – Grow business with n
Slide 17: 2012 Overview
2012 OVERVIEW ¶ Widespread economic challenges ¶ Proactive cost management ¶ Build pricing power and operating leverage ¶ Maintain sales momentum with recent launches + new entries in 2012
Slide 18: Dan Ammann, SVP and Chief Financial Officer
DAN AMMANN Senior Vice President and Chief Financial Officer
Slide 19: Top Investor Questions
TOP INVESTOR QUESTIONS ¶ What is the update on pensions? ¶ How are you thinking about capital allocation? ¶ What is path to Europe profitability? ¶ What actions are you taking to improve margins? ¶ What will be the impact of 2012 Truck downtime?
Slide 20: What Is the Update on Pensions?
What Is The UPDATE On PENSIONS?
Slide 21: Pension Plan Actions
PENSION PLAN ACTIONS ¶ As of Year end 2010 – $128B total Global Pension Benefit Obligation – $22B Underfunded Globally ($12B U.S.)* ¶ “Operating” Actions – e.g. all U.S. DB plans now closed to new participants ¶ Actions within the pension plans – Increased HQ fixed income to better match liability –
Slide 22: How Are You Thinking About Capital Allocation?
How Are You THINKING About CAPITAL ALLOCATION?
Slide 23: Capital Allocation
CAPITAL ALLOCATION ¶ $39B in available liquidity as of 9/30/11 ¶ Priorities – Invest in the business (many variations) – Liquidity buffer to absorb shocks – Addressing our U.S. pension plans – Returns to shareholders – Minimum debt ¶ Priorities not mutually exclusive -> balance ¶ Evaluated in compre
Slide 24: What Is Path to Europe Profitability?
What Is PATH To EUROPE PROFITABILITY?
Slide 25: GME Profitability
GME PROFITABILITY ¶ Significant progress 2011 vs. 2010 – EBIT-adjusted $0.7B favorable y-o-y thru Q3 before restructuring charges ¶ New product launches performing well – 2011: Zafira, Combo and Astra GTC – 2012: Astra 4-door and Small SUV ¶ Assuming a sustained challenging environment ¶ Reviewing b
Slide 26: What Actions Are You Taking to Improve Margins?
What ACTIONS Are You TAKING To IMPROVE MARGINS?
Slide 27: Margin Improvement
MARGIN IMPROVEMENT ¶ Leveraging scale: One Global Car Company – Global manufacturing footprint – Global media buy – Global staff functions ¶ Enforcing stability and predictability – Product Development Efficiency -> Reduce “Churn” – Material Cost -> Strategic Sourcing Process ¶ Go-to-Market with Con
Slide 28: What Will Be the Impact of 2012 Truck Downtime?
What Will Be The IMPACT of 2012 TRUCK DOWNTIME?
Slide 29: 2012 Truck Downtime
2012 TRUCK DOWNTIME ¶ Ended 2011 at 180K full-size pick-up inventory vs. 200K objective – Expect inventory and production swings thru 2012 ¶ Bottom Line: full-size pick-up and SUV 2012 capacity ~ 2011 capacity – 2011: 12 down weeks – Added 3rd shifts, other capacity improvements – 2012: 29 down week
Slide 30: Improve Margins, Reinvestment, Profitably Grow the Business
Improve Margins Reinvestment In World’s Best Vehicles Profitably Grow The Business
Slide 31: Questions & Answers
Questions & Answers
Slide 32: Slide 32
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