General Motors Company · NYSE:GM
General Motors — Q3 2009 Earnings Presentation
36 slides from General Motors's earnings presentation, Nov 19, 2009
Slide 1: General Motors Company Preliminary Results
Exhibit 99.2 General Motors Company Preliminary Results July 10, 2009 – Sept. 30, 2009 Nov 16, 2009
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,” “ensure,” “promote,” “target,” “believe,” “improve,” “intend,” “enable,” “continue,” “will,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned”
Slide 3: Preliminary Managerial Results
Preliminary Managerial Results • General Motors Company is a private company and voluntary filer with United States Securities & Exchange Commission (SEC) – Per agreement with SEC, GM will file under Form 8-K unaudited condensed consolidated managerial financial statements for period July 10 – Sept.
Slide 4: Changes in Presentation
Changes in Presentation • Q3 2009 preliminary managerial financial results have been segregated into two periods – July 1 through July 9 Old GM – July 10 through Sept 30 New GM • Former Europe, Latin America/Africa/Middle East and Asia Pacific segments combined into GMIO Segment – Consistent with op
Slide 5: Highlight of Major Achievements
Highlight of Major Achievements • Encouraging vehicle launches globally – U.S.: Chevrolet Camaro & Equinox, Cadillac SRX, Buick LaCrosse, GMC Terrain – GMIO: Holden Cruze, Daewoo Matiz Creative, Chevrolet Agile, Opel Astra • Fewer brands, dealers & nameplates • Significantly improved cost structure
Slide 6: Preliminary Results Overview
Preliminary Results Overview 3Q 2009 Status vs. Actual H1 2009 Global Market Share 11.9% 0.3 p.p. increase U.S. Market Share 19.5% Unchanged China Market Share 13.5% 0.1 ppt. increase Ending U.S. Dealer Inventory (000’s) 424K 158K reduction (vs. June 30) July 10 – Sept. 30 Preliminary Managerial Res
Slide 7: Q3 Global Sales Results
Q3 Global Sales Results Memo: Viability Plan 1Q09 2Q09 3Q09 3Q09 * Total Global - Net Revenue ($B) 22.4 23.1 28.0 23.5 - Industry SAAR (Mil) 57.7 62.7 67.8 56.5 - Market Share 11.2% 11.9% 11.9% 11.2% - Production Volume (000) 1,330 1,538 1,697 N/A - Deliveries (000) 1,617 1,937 1,969 1,554 GMNA - GM
Slide 8: U.S. Market Performance 2009 Oct CYTD
U.S. Market Performance 2009 Oct CYTD 25% Total Share 25% Retail Share 20.8% 21.1% 20.8% 20.4%20.2% 20.6% 19.9% 19.4% 20% 19.3% 19.3% 20% 19.0% 18.7% 18.1% 18.0% 17.7% 17.9% 17.2% 17.4% 17.0% 15% 16.4% 15% 10% 10% Jan-09 Apr-09 Jul-09 Oct-09 Jan-09 Apr-09 Jul-09 Oct-09 Core Brands Jan Feb Mar Apr Ma
Slide 9: U.S. Product Launch Performance
U.S. Product Launch Performance 2010 Chevrolet Share of Average ATP vs. 36 month Segment Transaction Segment Residual Camaro (Jul–Oct ‘09) Price (ATP) Average Value U.S. Market Performance ~ 43.9% ~ $34,800 116% 52.6% vs. predecessor CY 2008 N/A N/A N/A N/A 2010 Chevrolet Share of Average ATP vs. 36
Slide 10: U.S. Dealer Inventory
U.S. Dealer Inventory 1,000 900 872 801 781 800 767 741 700 674 582 600 500 466 444 424 379 400 300 200 100 0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 All data prior to July 10, 2009 refers to Old GM. New GM acquired operations from Old GM on July 10, 2009 9
Slide 11: U.S. Pricing
U.S. Pricing Average Retail Transaction Price Average Retail Incentive 28,500 5,433 6,000 28,000 4,427 4,589 5,000 27,500 3,641 3,561 27,000 4,000 26,500 3,000 26,000 28,179 27,001 27,156 26,996 2,000 25,500 25,788 1,000 25,000 24,500 - 3Q08 4Q08 1Q09 2Q09 3Q09 • Average retail transaction prices tr
Slide 12: BRIC Industry Market Performance 2009 CYTD
BRIC Industry Market Performance 2009 CYTD 23.4 23.0 22.4 22.7 20.8 20.0 18.2 18.7 16.9 16.9 Share by Country China 15.1% 13.8% 12.4% 13.0% 14.0% 12.6% 13.2% 13.4% 13.5% 13.8% Brazil 19.3% 17.9% 18.2% 17.3% 19.4% 19.5% 19.6% 19.5% 20.0% 18.8% India 2.4% 2.8% 2.4% 2.9% 3.0% 2.5% 2.6% 3.1% 3.6% 3.7% R
Slide 13: Europe Industry Market Performance 2009 CYTD
Europe Industry Market Performance 2009 CYTD Share by Brand Opel/Vauxhall 6.1% 6.3% 7.0% 6.8% 6.9% 6.6% 6.7% 6.0% 6.8% 6.0% Chevrolet 2.2% 2.5% 1.9% 2.1% 2.4% 2.3% 2.3% 2.6% 2.1% 2.2% Memo: Industry includes Western, Central, Eastern and Other Europe (Incl. Russia) All data prior to July 10, 2009 re
Slide 14: Europe 2009 GM & Dealer Inventories – Key Markets
Europe 2009 GM & Dealer Inventories – Key Markets Western/Central Europe & Russia Opel/Vauxhall/Chevrolet/Saab 500 450 429 411 407 400 390 375 364 342 350 311 313 303 299 300 250 200 150 100 50 0 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 13
Slide 15: Opel
Opel • November 4, GM’s Board of Directors decided to retain Opel – Deemed best long-term and least costly solution • Decision based on: – Improving business conditions – Considerable complexity and uncertainty with potential sale • Next steps include: – Work cooperatively and diligently on restruct
Slide 16: Review of Preliminary Managerial Results
General Motors Company Review of Preliminary Managerial Results 15
Slide 17: Preliminary Managerial Results
Preliminary Managerial Results Old GM New GM July 1 - July 10 - ($ Millions) 1Q09 2Q09 July 9, 2009 Sept. 30, 2009 GMNA $ (2,764) $ (4,058) $ (532) $ (651) GMIO (1,216) (1,181) (81) 238 Corp. / Other (Including Elims) (15) (440) (14) 152 GMAC Equity Income/(Loss) (885) (596) 0 0 EBIT (Before Special
Slide 18: Preliminary Special Items
Preliminary Special Items Old GM New GM July 1 - July 10 - ($ Millions) 1Q09 2Q09 July 9, 2009 Sept. 30, 2009 Restructuring & Special Attrition Programs (116) (3,943) (384) (452) Delphi Related (135) (812) (41) (112) SAAB Related (822) (67) (23) 59 Accelerated Discount Amortization on DIP Financing
Slide 19: Preliminary Managerial Results
Preliminary Managerial Results Old GM New GM Memo: July 1 - July 10 - Viability Plan ($ Millions) 3Q08 July 9, 2009 Sept. 30, 2009 3Q09 ** GMNA $ (2,015) $ (532) $ (651) $ (2,094) GMIO (447) (81) 238 (967) Corp. / Other (Including Elims) 47 (14) 152 (518) GMAC Equity Income/(Loss) (1,235) 0 0 N/A To
Slide 20: GMNA Preliminary Managerial Results Before Special Items
GMNA Preliminary Managerial Results Before Special Items Old GM New GM Memo: July 1 - July 10 - Viability Plan ($ Millions) 3Q08 July 9, 2009 Sept. 30, 2009 3Q09 * Revenue $22,544 $398 $15,252 $14,652 EBIT (2,015) (532) (651) (2,094) EBIT Margin (8.9)% (133.7)% (4.3)% (14.3)% Memo: EBITDA (760) (204
Slide 21: GMIO Preliminary Managerial Results Before Special Items
GMIO Preliminary Managerial Results Before Special Items Old GM New GM Memo: July 1 - July 10 - Viability Plan ($ Millions) 3Q08 July 9, 2009 Sept. 30, 2009 3Q09 * Revenue $15,714 $1,147 $11,775 $9,397 Income/(Loss) Before Interest, (569) (63) 167 (1,101) Taxes, Equity Income Equity Income 71 8 217
Slide 22: Automotive Structural Cost Summary
Automotive Structural Cost Summary Old GM New GM 9 Months January 1 July 10 Ended Through Through September 30, 2008 July 9, 2009 September 30, 2009 Total Structural Cost ($Bil) $37.8B $22.0B $9.1B Structural cost performance achieved through: – Salaried headcount reduction – Hourly headcount reduct
Slide 23: Total Debt
Total Debt September 30, 2009 vs. July 9, 2009 Old GM New GM 120 ($ billions) Sept 30 UST 6.7 EDC (C$1.5) 1.4 100 94.7 Supplier Support 0.3 Adam Opel Bridge Loan (€0.9) 1.3 Total Government 9.7 GMNA (Ex. Gov't) 1.5 80 GMIO (Ex. Gov't) 4.8 Capital Leases & Other 1.0 (49.5) Total Debt 17.0 $ billion 6
Slide 24: Total Liabilities
Total Liabilities September 30, 2009 vs. July 9, 2009 Old GM New GM 240 220 214.2 200 180 (77.5) 160 $ billions 140 135.6 133.2 7.4 (3.4) (1.6) 120 (3.5) 100 Total Old GM Debt Equitizedor Other Liabilities Total New GM Accounts PayablePensions & OPEB Other Total New GM Liabilities @ Left at Old GM E
Slide 25: Liquidity Walk
Liquidity Walk Old GM New GM Repayment of UST/EDC Debt 8.1 Delphi 2.8 Canada Healthcare 0.9 Remaining Escrow 5.6 Total Escrowed Cash 17.4 Debt Balance Does Not Include: • $2.5B UAW VEBA Note • $0.7B CAW Note • $9.0B Preferred Stock 24
Slide 26: Managerial Cash Flow Summary
Managerial Cash Flow Summary Old GM New GM Memo: ($ Billions) July 1 -9, 2009 July 10 - Sept. 30, 2009 Viability Plan 3Q 2009* Earnings Before Tax 78.8 (1.0) (4.2) Depreciation & Amortization 0.4 1.8 2.3 Capital Expenditures (0.6) (0.6) (1.4) Change in Receivables, Payables & Inventory (2.7) 8.2 3.8
Slide 27: Escrow Account
Escrow Account • $16.4B from the DIP Facility deposited in a US escrow established on July 10 – $2.8B drawn to date for Delphi related payments – Escrow to expire in June 2010 and undrawn funds used to repay UST loan; GM may request one year extension subject to UST agreement – Remaining funds to be
Slide 28: Forward Perspectives
General Motors Company Forward Perspectives 27
Slide 29: Global Industry Outlook Q4 & CY 2009
Global Industry Outlook Q4 & CY 2009 SAAR * (Mil) Q3 2009 Q4 2009 CY 2009 Total Including Heavy Actual Outlook Outlook GMNA 14.2 13.3 13.0 U.S. 11.7 10.7 10.5 GMIO 53.6 52.1 50.3 Brazil 3.3 3.2 3.2 Russia 1.4 1.3 1.5 India 2.4 2.5 2.2 China 15.7 13.4 13.0 Germany 4.0 3.6 4.1 Global Total 67.8 65.4 6
Slide 30: Fourth Quarter Perspectives
Fourth Quarter Perspectives Status vs. Q3 Item Fav/(Unfav) Drivers • Moderating global markets Market (Unfavorable) • End of various vehicle tax incentives GM’s Market • Launch product strength Performance / Favorable • Balanced U.S. dealer inventory Production • U.S. pricing flat to slightly down •
Slide 31: Global Industry Outlook CY 2009 & 2010
Global Industry Outlook CY 2009 & 2010 Preliminary Units (Mil) CY 2009 CY 2010 Total Including Heavy Outlook Outlook GMNA 13.0 13.5-14.5 U.S. 10.5 11.0 – 12.0 GMIO 50.3 48.5 – 50.5 Brazil 3.2 3.1 – 3.3 Russia 1.5 1.4 – 1.5 India 2.2 2.4 – 2.5 China 13.0 12.0 – 13.8 Germany 4.1 2.9 – 3.1 Global Total
Slide 32: Q3 Summary
Q3 Summary • Recorded $1.2B managerial loss ….significantly more work to do • Positive managerial operating cash flow favorably impacted by: – Working capital driven by supplier payments & production start up – Low level of capital spending • Third quarter GM global deliveries and market share ahead
Slide 33: Key Focus Areas
Key Focus Areas • Drive profitable top line market and revenue performance • European restructuring • Continued execution of North American Operating Plan • Reinvention of GM Culture 32
Slide 34: Supplemental Charts
General Motors Company Supplemental Charts S-0
Slide 35: Viability Plan Filed in Support of 363 Sale
Viability Plan Filed in Support of 363 Sale Adjusted to Include Full Year Consolidation of GME & Other Items 5/31/2009 Adjusted Memo: Viability Plan Viability Plan Adjusted Viability Plan ($ Millions) CY 2009 Adjustments * CY 2009 3Q 2009 GMNA (10,847) (82) (10,929) (2,094) GMIO (3,495) (1,012) (4,5
Slide 36: Viability Plan Filed in Support of 363 Sale – Managerial OCF
Viability Plan Filed in Support of 363 Sale – Managerial OCF Adjusted to Include Full Year Consolidation of GME & Other Items 5/31/2009 Adjusted Memo: Viability Plan Viability Plan Adjusted Viability Plan $ Billions CY 2009 Adjustments CY 2009 3Q 2009 Total EBT Excluding Special Items (17.5) (1.8) (