General Motors Company · NYSE:GM
General Motors — Q1 2008 Earnings Presentation
36 slides from General Motors's earnings presentation, Apr 30, 2008
Slide 1: Preliminary 2008 First Quarter Results
Preliminary 2008 First Quarter Results
Slide 2: Forward Looking Statements
Forward Looking Statements 1 In this presentation and in related comments by our management, our use of the words "expect," "anticipate," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should" or sim
Slide 3: First Quarter Operational Highlights
First Quarter Operational Highlights 2 Global market share of 12.5%, down 0.5 p.p. vs. Q1 2007 Record GM sales in 3 of 4 regions driven by emerging markets growth Total automotive revenue of $42.1B, about flat as decline in North America offset growth in all other regions Improved adjusted automotiv
Slide 4: American Axle Strike
American Axle Strike 3 Through end of Q1, GMNA incurred production losses related to American Axle strike of approximately 100k units Majority of impact is to full-size pickups and utilities, although also impact full-size vans and midsize trucks Q1 financial impact of approximately $0.8B EBT To dat
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights GAAP net loss of $(3.3)B, $(5.74) EPS Adjusted automotive earnings before tax (EBT) of $0.4B, up $0.2B vs. Q1 2007 (excluding Allison results) Adjusted net loss of $(350) million, $(0.62) EPS, excluding special items Adjusted GMAC results recognized by GM of $(0.3)
Slide 6: First Quarter Adjusted Results
First Quarter Adjusted Results 5 Refer to Supplemental Charts for reconciliation to GAAP figures
Slide 7: GMNA First Quarter Adjusted Results
GMNA First Quarter Adjusted Results 6 2007 excludes results from Allison Transmission, recorded as Discontinued Operations
Slide 8: GMNA Vehicle Revenue Per Unit
GMNA Vehicle Revenue Per Unit Calendar Year First 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 reconcil
Slide 9: GMNA Adjusted EBT - 2008 vs. 2007
GMNA Adjusted EBT - 2008 vs. 2007 $ Billions - Continuing Operations Only Q1 2007 Earnings Before Tax $(0.3) Volume (1.1) Mix (0.1) Price (0.5) Net Material 0.1 Pension / OPEB / Manufacturing 0.5 Hedging / Exchange 0.8 2008 Earnings Before Tax $(0.6) 8 2007 excludes results from Allison Transmission
Slide 10: GM U.S. Dealer Inventory Trend
9 Q1 06 Q1 07 Q1 08 Industry SAAR 17.4 16.884 15.576 GM U.S. Dealer Inventory 1169 1079 875 GM U.S. Dealer Inventory Trend
Slide 11: Overview of Other Regions
Overview of Other Regions $1B of adjusted automotive EBT generated in other regions GM automotive revenue up +20% outside North America on unit sales records in all overseas regions 48% of global auto revenue generated in GME / GMLAAM / GMAP 64% of unit sales generated outside the U.S. GM share of 9
Slide 12: Emerging Markets Growth Trends
Emerging Markets Growth Trends 11
Slide 13: GME First Quarter Adjusted Results
GME First Quarter Adjusted Results 12
Slide 14: GMLAAM First Quarter Adjusted Results
GMLAAM First Quarter Adjusted Results 13
Slide 15: GMAP First Quarter Adjusted Results
GMAP First Quarter Adjusted Results 14
Slide 16: GMAC First Quarter Business Line Results
GMAC First Quarter Business Line Results 15
Slide 17: GMAC Auto Delinquency Trends
GMAC Auto Delinquency Trends 16 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Managed 0.024825941 0.026617552 0.026132226 0.025186718 0.024565484 0.026298541 0.026815981 0.0242 Loans > 30 Days Past Due Q1 2008 2.45% 1.36% 1.84% 3.75% 2.42% Q1 2007 2.51% 1.53% 2.38% 3.87% 2.52% North Asia L
Slide 18: Adjustments to Income
Adjustments to Income 17 Exclusion of special items useful for: Management to measure operations Comparisons between reporting periods Investors to measure and assess company's core performance
Slide 19: GMAC Impairment
GMAC Impairment 18 U.S. GAAP states that a loss in value of an investment that is other than temporary should be recognized GM conducted analysis to determine if there is impairment of our GMAC equity investment based on fair value Based on current market conditions, indicated value of common equity
Slide 20: GM Liquidity Position
GM Liquidity Position 19 Liquidity position of $23.9B at March 31, 2008 Includes $0.7B of readily-available VEBA assets (i.e. short-term VEBA) Represents decrease of $(3.4)B from year-end 2007 Reflects negative adjusted automotive OCF driven primarily by lower Q1 production in GMNA, including impact
Slide 21: Automotive Gross / Net Liquidity
Automotive Gross / Net Liquidity 20 1 Q4 2005 - Q3 2006 Net Liquidity figures exclude GMAC related debt Q4'00 YE '01 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4'07 Q1'08 Net Liquidity 5.2 4.8 4.8 3.5 -0.7 -13.833 -12.303 -11.394 -14.2 -12.323 -13.294 -12.093 -9.9 -12.1 -16.2 Gross Cas
Slide 22: First Quarter Key Cash Flow Drivers
First Quarter Key Cash Flow Drivers 21 Q1 2008 adjusted automotive OCF of $(3.6)B Net OCF impact of American Axle strike estimated at approximately $(2.1)B for the quarter, $(1.3)B of which was related to managed working capital and accrued expenses Q1 2008 OCF unfavorable by $(3.8)B vs. Q1 2007 due
Slide 23: Automotive Cash Flow Summary
Automotive Cash Flow Summary Refer to Supplemental Charts for reconciliation to GAAP figures 22 * Earnings before Tax from Continuing Operations on a GAAP basis
Slide 24: Working Capital and Accrued Expenses
Year-to-year Q1 variance in working capital mainly driven by impact of American Axle strike and timing related to certain accounts payable flows in Q1 2007 Working Capital and Accrued Expenses 23 Accrued Expenses and Other reflects timing of cash flows vs. accruals
Slide 25: U.S. Industry Outlook
U.S. Industry Outlook 24 U.S. economy is facing strong headwinds Aggressive monetary policies have reduced risk of a credit crunch; however with side effects of weakening dollar and surging oil prices Short-term industry conditions remain very challenging GM is revising its outlook for 2008 U.S. tot
Slide 26: Operating Actions - GM North America
Operating Actions - GM North America 25 Aligning capacity with demand Eliminated one shift of production at three full-size pickup truck plants and one full-size utility plant Continue to work on successful implementation of hourly attrition program and 2007 UAW contract Aligning inventory with dema
Slide 27: Growth Strategies - Emerging Markets
Growth Strategies - Emerging Markets 26 Grow quickly and profitably in fastest growing markets Expand capacity in cost effective manner New assembly plants in Russia, India and Mexico New powertrain plants in Mexico, China and Brazil Working with partners to increase capacity Evaluating longer-term
Slide 28: Growth Strategies - GMLAAM Example
Growth Strategies - GMLAAM Example 27 Adding assembly capacity in Mercosur region Shifts, line rate increases Adding assembly capacity in Andean region Line rate increase in Colombia Contracted assembly in Venezuela and Ecuador Adding flex fuel powertrain capacity in Brazil Distribution improvements
Slide 29: Delphi Update
Delphi Update 28 Delphi unable to emerge under its Plan of Reorganization, as Plan Investors terminated their investment agreement on April 4 GM-Delphi Settlement Agreements and agreements with Delphi's labor unions remain in place but are not generally effective GM will agree to advance up to $650M
Slide 30: Outlook
Outlook Second Quarter Volume and revenue growth overseas, particularly in key emerging markets Manage GMNA business in a more challenging environment Execute North American capacity actions Actively manage special risk factors (Delphi, GMAC / ResCap, American Axle) Looking Ahead Strong focus on man
Slide 31: 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
Slide 32: Reconciliation to Adjusted Net Income / EPS Q1 2008
Reconciliation to Adjusted Net Income / EPS Q1 2008 S1
Slide 33: Reconciliation to Adjusted Net Income / EPS Q1 2007
Reconciliation to Adjusted Net Income / EPS Q1 2007 S2
Slide 34: Reconciliation of GMNA Revenue Per Unit First Quarter
Reconciliation of GMNA Revenue Per Unit First 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 veh
Slide 35: Reconciliation of GMNA Revenue Per Unit Calendar Year
Reconciliation of GMNA Revenue Per Unit Calendar Year S4 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 36: Reconciliation of Automotive Cash Flow First Quarter
Reconciliation of Automotive Cash Flow First Quarter S5