General Motors Company · NYSE:GM
General Motors — Q3 2011 Earnings Presentation
38 slides from General Motors's earnings presentation, Nov 9, 2011
Slide 1: 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 2: Third Quarter 2011 Highlights
Third Quarter 2011 Highlights Q3 ‘11 F/(U) vs. Q3 ‘10 Global Deliveries 2.2M Net Revenue $36.7B EBIT - Adj. $2.2B - GMNA $2.2B - GME $(0.3)B - GMIO $0.4B - GMSA $0.0B Auto Free Cash Flow $0.3B
Slide 3: Third Quarter Highlights
Third Quarter Highlights • Reached labor agreement with UAW – Maintains GM’s low break-even level – Gives employees a direct stake in company’s performance – Protects GM’s balance sheet • Corporate credit rating upgrades • GM and SAIC agreement for the co-development of new electric vehicle architec
Slide 4: Summary of Q3 2011 Results
Q3 Q3 GAAP Net Revenue ($B) Operating Income ($B) Net Income to Common Stockholders ($B) EPS – Diluted ($/Share) Non- GAAP EBIT- Adj. ($B) Automotive Free Cash Flow ($B) Summary of Q3 2011 Results Note: Starting Q4 2010, EBIT-Adj. includes GM Financial on an Earnings Before Tax (EBT) basis
Slide 5: Net Income Impact of Special Items
Net Income Impact of Special Items Q3 Q3 Net Income to Common Stockholders ($B) EPS – Diluted ($/Share) Special Items Included ($B): None - - Total Impact of Special Items: Net Income to Common Stockholders ($B) - - EPS – Diluted ($/Share) - -
Slide 6: Operating Income Walk to EBIT-Adj.
Q3 Operating Income Walk to EBIT- Adj. ($B) Q3 Q3 Operating Income Equity Income Non-Controlling Interests (0.1) Non-Operating Income Earnings Before Interest & Taxes (EBIT) Less Special Items EBIT- Adj. Note: Starting Q4 2010 EBIT & EBIT-Adj. include GM Financial on an Earnings Before Tax (EBT) bas
Slide 7: EBIT & EBIT-Adj.
Q3 EBIT & EBIT- Adj. (0.6) n/a (0.3) (0.2) GMNA GME GMIO GMSA GM Financial* Corp. / Elims EBIT- Adj. Plus Special Items EBIT ($B) * GM Financial at an Earnings Before Tax basis (EBT) GMNA GME GMIO GMSA GM Financial* Corp./ Elims EBIT- Adj. Plus Special Items EBIT Q3 2010 Q3 2011 Note: Results may no
Slide 8: Global Deliveries
Global Deliveries ( 000 ’ s ) Global Share 11.4% 11.5% 11.4% 12.2% 12.0% GM deliveries & market share include vehicles sold around the world under GM and JV brands, and through GM-branded distribution network
Slide 9: Earnings Before Interest & Taxes
1.0 EBIT-Adj. 2.0 EBIT-Adj. Earnings Before Interest & Taxes ($B) Revenue ($B) Oper Inc % Rev 5.1% 0.8% 2.6% 6.2% 4.9% EBIT- Adj % Rev. 6.7% 2.8% 5.6% 7.5% 6.0% Production (000’s) 2,104 2,269 2,327 2,400 2,221 Note: Starting Q4 2010 EBIT & EBIT-Adj. include GM Financial on an Earnings Before Tax (EB
Slide 10: Consolidated EBIT – Q3 2010 vs. Q3 2011
Consolidated EBIT – Q3 2010 vs. Q3 2011 Q3 2010 EBIT ($B) Q3 2011 EBIT ($B) $0.1B Decrease EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items (0.4) (0.1) Volume / Mix Price Cost Other
Slide 11: GMNA Deliveries
GMNA Deliveries ( 000 ’ s ) GMNA Share 17.7% 18.5% 18.3% 19.1% 18.8% U.S. Share 18.3% 19.1% 19.0% 20.0% 19.7%
Slide 12: 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 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Key GMNA Performance Indicators Avg. U.S. Retail Incentive as % of ATP GM % GM vs. Ind. (GM % / Ind. %) Share $/Unit U.S. Retail Share U.S. Total Share Avg. GM U.S. Retail Incentive No
Slide 13: GMNA Earnings Before Interest & Taxes
1.3 EBIT-Adj. GMNA Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT- Adj % Rev 9.9% 3.4% 5.7% 9.7% 10.0% Production (000 ’ s) U.S. Dealer Inv (000 ’ s)
Slide 14: GMNA EBIT – Q3 2010 vs. Q3 2011
GMNA EBIT – Q3 2010 vs. Q3 2011 Q3 2010 EBIT ($B) Q3 2011 EBIT ($B) $0.1B Improvement EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items (0.4) Volume / Mix Price Cost Other
Slide 15: GME Deliveries
GME Deliveries (000’s) GME Share 8.9% 9.0% 8.5% 9.1% 8.8% Germany Share 8.5% 9.0% 8.2% 8.9% 8.6% U.K. Share 12.6% 12.4% 12.6% 13.3% 11.9% Chevrolet GME Excl. Chevrolet GME deliveries and market share include unit sales of Chevrolets produced by GMIO and delivered to customers in GME. Revenue and ass
Slide 16: GME Earnings Before Interest & Taxes
GME Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT- Adj % Rev (9.9)% (9.2)% 0.1% 1.4% (4.7)% Production (000’s) (0.6) (0.6) (0.4) EBIT-Adj. (0.3)
Slide 17: GME EBIT – Q3 2010 vs. Q3 2011
GME EBIT – Q3 2010 vs. Q3 2011 Q3 2010 EBIT ($B) Q3 2011 EBIT ($B) $0.3B Improvement EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items Volume / Mix Price Cost Other (0.6) (0.6) (0.3) (0.3)
Slide 18: GMIO Deliveries
GMIO Deliveries (000’s) GMIO Share 8.7% 8.6% 9.1% 9.6% 9.4% China Share 13.6% 11.6% 13.6% 13.4% 14.1% India Share 3.0% 3.4% 3.1% 3.4% 3.7% China GMIO Excl. China
Slide 19: GMIO Earnings Before Interest & Taxes
GMIO Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT margin from consolidated operations* Total China JV NI/Rev** 4.5% 11.8% 2.0% 7.7% 3.0% 12.0% 3.4% 11.1% (0.6)% 10.5% Consolidated Prod. (000’s) Joint Venture Prod. (000’s) Total Production (000’s) 1,012 1,003 EBIT-Adj. Q3 Q4 Q1 Q2 Q3 * Exc
Slide 20: GMIO EBIT – Q3 2010 vs. Q3 2011
EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items Volume / Mix Price Cost Other Q3 2010 EBIT ($B) Q3 2011 EBIT ($B) $0.1B Decrease (0.2) (0.1) GMIO EBIT – Q3 2010 vs. Q3 2011
Slide 21: GMSA Deliveries
GMSA Deliveries (000’s) GMSA Share 19.8% 19.6% 18.7% 19.3% 18.7% Brazil Share 18.3% 18.4% 17.3% 17.6% 17.1% Brazil GMSA Other
Slide 22: GMSA Earnings Before Interest & Taxes
GMSA Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT- Adj % Rev 4.1% 4.4% 2.3% 1.3% (1.0)% Production (000’s)
Slide 23: GMSA EBIT – Q3 2010 vs. Q3 2011
GMSA EBIT – Q3 2010 vs. Q3 2011 Q3 2010 EBIT ($B) Q3 2011 EBIT ($B) $0.2B Decrease EBIT (0.2) (0.1) EBIT EBIT-Adj. Less Special Items EBIT-Adj. Plus Special Items Volume / Mix Price Cost Other
Slide 24: Automotive Free Cash Flow
Automotive Free Cash Flow ($B) Q3 2010 Q3 2011 Net Income to Common Stockholders Add-back Non-Controlling Interests, Preferred Dividends & undistributed earnings allocated to Series B Deduct Non-Auto (GM Financial) n/a (0.1) Automotive Net Income Depreciation / Amortization Working Capital (0.5) (0.
Slide 25: Key Automotive Balance Sheet Items
Key Automotive Balance Sheet Items ($B) Sep. 30 Jun. 30 Sep. 30 Cash & marketable securities* Available Credit Facilities Available Liquidity* Key Obligations: Debt Series A Preferred Stock U.S. Pension Underfunded Status** Unfunded OPEB * Includes Canadian HC Trust restricted cash ** Excludes U.S.
Slide 26: GM Financial
GM Financial Q3 Q3 Industry Avg. (Excl. GM) Q3 Q3 GM Sales Penetrations U.S. Subprime (<=620) 4.8% 6.6% 4.5% 5.1% U.S. Lease 8.6% 11.4% 20.5% 20.6% Canada Lease 2.1% 9.4% 13.8% 15.0% GM / GM Financial Linkage GM as % of GM Financial Originations (GM New / GMF Loan & Lease) 15.7% 39.3% GM Fin. as % o
Slide 27: Q4 2011 Outlook
Q4 2011 Outlook • Based on current industry outlook, expect Q4 EBIT- Adj. to be at levels similar to Q4 2010 Seasonal trends in GMNA Continued weakness in Europe • GME will not reach target of breakeven EBIT- Adj. before restructuring charges due to declining economic conditions • Expect a special i
Slide 28: Third Quarter Summary
Third Quarter Summary • Calendar-year-to-date results encouraging Revenue $112B Global share +0.5 pts to 11.9% EBIT-Adj. $7.2B • Good progress, but more to do to deliver long-term sustainable results Improve results in GME & GMSA Reduce complexity Focus on cost containment Leverage expected global g
Slide 29: New Business Model: Significantly Lower Risk Profile
New Business Model Significantly Lower Risk Profile
Slide 30: EBIT Walk to Net Income to Common Stockholders
EBIT Walk to Net Income to Common Stockholders S1 ($B) Q3 Q3 GMNA GME (0.6) (0.3) GMIO GMSA Corp & Elims (0.2) GM Financial n/a Total EBIT Interest Expense / (Income) Income Tax Expense / (Benefit) Net Income to Stockholders Undistributed earnings allocated to Series B (Basic) n/a (0.2) Dividends on
Slide 31: Reconciliation of Q3 2011 EBIT-Adj.
Reconciliation of Q3 2011 EBIT- Adj. ($B) Q3 Q3 Net Income to Common Stockholders Add Back: Undistributed earnings allocated to Series B (Basic) n/a Dividends on Preferred Stock Interest Expense / (Income) Income Tax Expense / (Benefit) Earnings Before Interest & Taxes (EBIT) Less Special Items: Non
Slide 32: Restructuring (not included in special items)
Restructuring (not included in special items) ($B) Q3 Q4 Q1 Q2 Q3 GMNA – Dealer Related GMNA – Non-Dealer Related (0.1) Total GMNA (0.1) Total GME (0.1) (0.1) (0.1) (0.1) Total GMIO Total GMSA Total (0.1) (0.1) (0.1) (0.2) S3 Note: Results may not foot due to rounding
Slide 33: Operating Income Walk to EBIT-Adj.
Operating Income Walk to EBIT- Adj. ($B) Q3 Q4 Q1 Q2 Q3 Operating Income Equity Income Non-Controlling Interests (0.1) (0.1) Non-Operating Income Earnings Before Interest & Taxes (EBIT) Less Special Items EBIT- Adj. Note: Starting Q4 2010 EBIT & EBIT-Adj. include GM Financial on an Earnings Before T
Slide 34: Reconciliation of Automotive Free Cash Flow
Reconciliation of Automotive Free Cash Flow ($B) Q3 Q3 Net cash provided by operating activities Less net cash provided by operating activities-GM Financial n/a (0.2) Automotive Net Cash Provided/(Used) Operating Activities Capital expenditures (1.2) (1.5) Automotive Free Cash Flow S5
Slide 35: GM Financial – Key Metrics
GM Financial – Key Metrics ($M) Q3 2011 Memo: Q3 2010** Earnings Before Tax Total Originations 1,547 GM new vehicles as % of total 39.3% 16.5% Finance Receivables 9,438 8,676 Delinquencies (>30 days)* 6.4% 8.7% Annualized net charge-offs as % of avg. receivables 3.0% 5.4% S6 * Excludes finance recei
Slide 36: GMNA C$ Net Monetary Liability Translational Impact
Info Item: GMNA – C$ Net Monetary Liability GMNA C$ NML Translational Impact Q3 Q4 CY Q1 Q2 Q3 Non-Cash EBIT Impact ($B) $(0.2) $(0.2) $(0.4) $(0.2) $0.0 $0.3 Period End FX (CAD per USD) Inc/(Dec) vs. Prior Period (0.0222) (0.0289) (0 .0507) (0.0267) • GM Canada balance sheet includes C$ Net Monetar
Slide 37: Calculation of EBIT-Adj. as a Percent of Revenue
Calculation of EBIT- Adj. as a Percent of Revenue ($B) Q3 % Q4 % Q1 % Q2 % Q3 % Consolidated Revenue Operating Income 5.1% 0.8% 2.6% 6.2% 4.9% EBIT- Adj. 6.7% 2.8% 5.6% 7.5% 6.0% GMIO Revenue Operating Income 2.5% 1.1% 1.8% 2.3% 0.2% Non-Operating Income (Expense) (0.1) Plus Special Items * EBIT fro
Slide 38: EBIT to EBIT-Adj.
EBIT to EBIT– Adj. ($B) Q3 Q4 Q1 Q2 Q3 EBIT GMNA GME (0.6) (0.6) (0.4) (0.3) GMIO GMSA Corp & Elim. (0.2) (0.2) GM Financial* n/a Total EBIT Special Items GMNA (0.1) (1.6) GME (0.1) GMIO GMSA Corp & Elim. (0.2) (0.3) GM Financial Total Special Items (0.3) (1.5) EBIT– Adj. GMNA GME (0.6) (0.6) (0.3)