General Motors Company · NYSE:GM
General Motors — Q2 2011 Earnings Presentation
46 slides from General Motors's earnings presentation, Aug 4, 2011
Slide 1: General Motors Company Q2 2011 Results
General Motors Company Q2 2011 Results August 4, 2011 Exhibit 99.2
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: Second Quarter 2011 Highlights
Second Quarter 2011 Highlights Q2 ‘11 F/(U) vs. Q2 ‘10 Global Deliveries 2.3M Net Revenue $39.4B EBIT - Adj. $3.0B - GMNA $2.2B - GME $0.1B - GMIO $0.6B - GMSA $0.1B Auto Free Cash Flow $3.8B
Slide 4: Summary of Q2 2011 Results
Q2 Q2 GAAP Net Revenue ($B) Operating Income ($B) Net Income to Common Stockholders ($B) EPS – Diluted ($/Share) Non- GAAP EBIT- Adj. ($B) Automotive Free Cash Flow ($B) Summary of Q2 2011 Results Note: Starting Q4 2010 EBIT-Adj. includes GM Financial on an Earnings Before Tax (EBT) basis
Slide 5: Net Income Impact of Special Items
Net Income Impact of Special Items Q2 Q2 Net Income to Common Stockholders ($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: Info Item: Fully Diluted EPS Calculation
Info Item: Fully Diluted EPS Calculation Q2 Q1 Q2 Net income to stockholders ($B) Cumulative dividend on Series A Cumulative dividend on Series B Undistributed earnings allocated to Series B Net income to common ($B) (0.2) n/a n/a (0.2) (0.1) (0.2) (0.1) (0.3) Add back Series B Preferred dividend n/
Slide 7: Operating Income Walk to EBIT-Adj.
Q2 Operating Income Walk to EBIT- Adj. ($B) Q2 Q2 Operating Income Equity Income Non-Controlling Interests (0.1) Non-Operating Income (0.2) Earnings Before Interest & Taxes (EBIT) Less Special Items EBIT- Adj. Note: Results may not foot due to rounding Note: Starting Q4 2010 EBIT & EBIT-Adj. include
Slide 8: EBIT & EBIT-Adj.
Q2 EBIT & EBIT- Adj. ($B) * GMF at an Earnings Before Tax basis (EBT) GMNA GME GMIO GMSA GMF* Corp./ Elims EBIT-Adj. Plus Special Items EBIT Q2 2010 Q2 2011 Note: Results may not foot due to rounding
Slide 9: Global Deliveries
Global Deliveries ( 000 ’ s ) Global Share 11.4% 11.5% 11.4% 12.2% GM deliveries & market share include vehicles sold around the world under GM and JV brands, and through GM-branded distribution network 2,162 2,068 2,179 2,216 2,320 1,000 1,700 2,400 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 11.6%
Slide 10: Consolidated EBIT-Adj. Trend
1.0 EBIT-Adj. 2.0 EBIT-Adj. Earnings Before Interest & Taxes ($B) Revenue ($B) Oper Inc % Rev 5.7% 5.4% 0.6% 2.6% 6.2% EBIT-Adj % Rev. 6.1% 6.7% 2.8% 5.6% 7.5% Production (000’s) 2,257 2,104 2,269 2,327 2,400 Note: Starting Q4 2010 EBIT & EBIT-Adj. include GM Financial on an Earnings Before Tax (EBT
Slide 11: Consolidated EBIT – Q2 2010 vs. Q2 2011
Consolidated EBIT – Q2 2010 vs. Q2 2011 Q2 2010 EBIT ($B) Q2 2011 EBIT ($B) $1.0B Improvement EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items (0.4) (0.2) Volume / Mix Price Cost Other
Slide 12: GMNA Deliveries
GMNA Deliveries ( 000 ’ s ) GMNA Share 18.7% 17.7% 18.5% 18.3% 19.1% U.S. Share 19.4% 18.3% 19.1% 19.0% 20.0% Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Slide 13: GMNA Performance Indicators
Key GMNA Performance Indicators Avg. U.S. Retail Incentive as % of ATP GM % GM vs. Ind. (GM % / Ind. %) Share $/Unit U.S. Retail Share U.S. Total Share Avg. GM U.S. Retail Incentive Note: Incentive & ATP Information Based on J.D. Power and Associates Power Information Network data Jul est.
Slide 14: GMNA EBIT-Adj.
1.3 EBIT-Adj. GMNA Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT-Adj % Rev 7.9% 9.9% 3.4% 5.7% 9.7% Production (000 ’ s) U.S. Dealer Inv (000 ’ s) (1.0) Q2 Q3 Q4 Q1 Q2
Slide 15: GMNA EBIT – Q2 2010 vs. Q2 2011
GMNA EBIT – Q2 2010 vs. Q2 2011 Q2 2010 EBIT ($B) Q2 2011 EBIT ($B) $0.6B Improvement EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items (0.2) (0.3) Volume / Mix Price Cost Other
Slide 16: Info Item: U.S. Full-size Pickup Dealer Stock
Info Item: U.S. Full-size Pickup Dealer Stock U.S. Dealer Stock Units (000’s) Days Supply December 2010 June 2011 July 2011 December 2011 Objective ~200 ~90 5 Plant Capacity 1,300 Normal 3 Plant Capacity ~780 3 Plant Capacity ~640 U.S. Sales (000’s) U.S. Country of Sale Capacity* (000’s) GM U.S. F/S
Slide 17: Info Item: GMNA EBIT-Adj (Sequential & Y-o-Y)
EBIT-Adj. (prior period) Volume Mix Price Cost C$ NML Other EBIT-Adj. (current period) $1.6B (Q2 2010) (0.4) $2.1B (Q3 2010) $2.1B (Q3 2010) (0.9) (0.3) (0.5) $0.8B (Q4 2010) $0.8B (Q4 2010) (0.1) $1.3B (Q1 2011) $1.3B (Q1 2011) (0.1) $2.2B (Q2 2011) $1.6B (Q2 2010) (0.3) (0.2) (0.2) (0.1) $2.2B (Q2
Slide 18: GME Deliveries
GME Deliveries (000’s) GME Share 8.8% 8.9% 9.0% 8.5% 9.1% Germany Share 8.0% 8.5% 9.0% 8.2% 8.9% U.K. Share 13.8% 12.6% 12.4% 12.6% 13.3% Chevrolet GME Excl. Chevrolet GME deliveries and market share include unit sales of Chevrolets produced by GMIO and delivered to customers in GME. Revenue and ass
Slide 19: GME EBIT-Adj.
GME Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT-Adj % Rev (2.6)% (9.9)% (9.2)% 0.1% 1.4% Production (000’s) (0.2) (0.6) (0.6) (0.4) EBIT-Adj.
Slide 20: GME EBIT – Q2 2010 vs. Q2 2011
GME EBIT – Q2 2010 vs. Q2 2011 Q2 2010 EBIT ($B) Q2 2011 EBIT ($B) $0.3B Improvement EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items Volume / Mix Price Cost Other (0.1) (0.2) (0.2)
Slide 21: GMIO Deliveries
GMIO Deliveries (000’s) GMIO Share 8.9% 8.7% 8.6% 9.2% 9.6% China Share 13.1% 13.6% 11.6% 13.6% 13.3% India Share 4.0% 3.0% 3.4% 3.1% 3.4% China GMIO Excl. China
Slide 22: GMIO EBIT
GMIO Earnings Before Interest & Taxes Revenue ($B) EBIT margin from consolidated operations* Total China JV NI/Rev** 3.7% 12.6% 4.5% 11.9% 2.0% 7.7% 3.0% 12.0% 3.4% 11.1% Consolidated Prod. (000’s) Joint Venture Prod. (000’s) Total Production (000’s) 1,012 1,003 * Excludes equity income and non-cont
Slide 23: GMIO EBIT – Q2 2010 vs. Q2 2011
EBIT EBIT-Adj. Less Special Items EBIT-Adj. EBIT Plus Special Items Volume / Mix Price Cost Other Q2 2010 EBIT ($B) Q2 2011 EBIT ($B) $0.1B Improvement (0.2) GMIO EBIT – Q2 2010 vs. Q2 2011
Slide 24: GMSA Deliveries
GMSA Deliveries (000’s) GMSA Share 19.5% 19.8% 19.6% 18.7% 19.2% Brazil Share 18.4% 18.3% 18.4% 17.3% 17.6% Brazil GMSA Other
Slide 25: GMSA EBIT-Adj.
GMSA Earnings Before Interest & Taxes ($B) Revenue ($B) EBIT-Adj % Rev 5.4% 4.1% 4.4% 2.3% 1.3% Production (000’s)
Slide 26: GMSA EBIT – Q2 2010 vs. Q2 2011
GMSA EBIT – Q2 2010 vs. Q2 2011 Q2 2010 EBIT ($B) Q2 2011 EBIT ($B) $0.1B Reduction EBIT (0.2) EBIT EBIT-Adj. Less Special Items EBIT-Adj. Plus Special Items Volume / Mix Price Cost Other
Slide 27: Automotive Free Cash Flow
Automotive Free Cash Flow ($B) Q2 2010 Q2 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 (0.2) Automotive Net Income Depreciation / Amortization Working Capital Pension /
Slide 28: Key Automotive Balance Sheet Items
Key Automotive Balance Sheet Items ($B) Jun. 30 Mar. 31 Jun. 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 29: GM Financial
GM Financial Q2 Q2 Industry Avg. (Excl. GM) Q2 Q2 GM Sales Penetrations U.S. Subprime (<=620) 4.9% 6.8% 4.2% 5.1% U.S. Lease 6.5% 13.3% 20.9% 21.2% Canada Lease 2.7% 8.4% 15.8% 19.0% GM / GMF Linkage GM as % of GMF Originations (GM New / GMF Loan & Lease) 14.0% 38.0% GMF as % of GM U.S. S/P & Lease
Slide 30: Second Quarter Summary
Second Quarter Summary • Solid second quarter results - Continued success in the marketplace - Improved GMNA margins - Continued progress in Europe • Good progress, but more to do - Flawless execution of H2 production launches - Focus on cost containment - Leverage global growth • Based on current i
Slide 31: New Business Model: Lower Risk Profile, Leverage to Global Growth
New Business Model Significantly Lower Risk Profile Leverage to Global Growth New GM
Slide 32: Success in Marketplace
Chevrolet Equinox, Q2 2009 Buick LaCrosse, Q2 2009 Chevrolet Equinox, Q2 2011 Buick LaCrosse, Q2 2011 Success in Marketplace Segment Retail Market Share 14.6% + $3,800 49% 15.5% + $7,000 45% Average Transaction Price (ATP) 36 month Residual Value 4.7% 31% Prior 5.3% 31% Current 12.5% + $4,200 6.2% C
Slide 33: Success in Marketplace
Success in Marketplace GM Total U.S. Share GM Global Share New GM 10% 15% 20% 25% 30% Old GM
Slide 34: 2011 H1 GM Performance: Leverage Global Growth
2011 H1 GM Performance Leverage Global Growth Industry Volume 2010* (Millions) 5 YR Industry Growth 2010-2015E* 2011 H1 GM Performance (Millions) % Global Growth Market Position ** Market Share ** BRIC - China + 12 + 8 50% 33% 12% >13% North America + 6 25% 19% Western Europe + 2 8% 8% All Other + 4
Slide 35: Break-Even at Bottom of Cycle, Fortress Balance Sheet
Break- Even at Bottom of Cycle Fortress Balance Sheet Significantly Lower Risk Profile • Profitable in all regions, Q2 2011 • H1 GMNA EBIT-Adj. $3.5B, US SAAR 12.8M • H1 GME EBIT-Adj. $0.1B, +$0.9B vs. 2010 • $39.7B Automotive Liquidity • $4.7B Automotive Debt • $10.8B underfunded status of U.S. qua
Slide 36: New Business Model: Lower Risk Profile, Leverage to Global Growth
New Business Model Significantly Lower Risk Profile Leverage to Global Growth New GM
Slide 37: Select Supplemental Financial Information
General Motors Company Select Supplemental Financial Information
Slide 38: EBIT Walk to Net Income to Common Stockholders
EBIT Walk to Net Income to Common Stockholders S1 ($B) Q2 Q2 GMNA GME (0.2) GMIO GMSA Corp & Elims (0.1) (0.2) GMF n/a Total EBIT Interest Expense / (Income) Income Tax Expense / (Benefit) (0.1) Net Income to Stockholders Undistributed earnings allocated to Series B (Basic) n/a Dividends on Preferre
Slide 39: Reconciliation of Q2 2011 EBIT-Adj.
Reconciliation of Q2 2011 EBIT-Adj. ($B) Q2 Q2 Net Income to Common Stockholders Add Back: Undistributed earnings allocated to Series B (Basic) n/a Dividends on Preferred Stock Interest Expense / (Income) Income Tax Expense / (Benefit) (0.1) Earnings Before Interest & Taxes (EBIT) Less Special Items
Slide 40: 2011 Special Items
Q2 2011 Special Items ($B) Q2 Q2 Total GMNA Total GME Total GMIO Total GMSA Total Corp. Total Special Items S3
Slide 41: Restructuring (not included in special items)
Restructuring (not included in special items) ($B) Q1 Q2 Q3 Q4 Q1 Q2 GMNA – Dealer Related GMNA – Non-Dealer Related Total GMNA Total GME (0.3) (0.2) (0.1) (0.1) (0.1) Total GMIO Total GMSA Total (0.2) (0.2) (0.1) (0.1) (0.1) S4 Note: Results may not foot due to rounding
Slide 42: Operating Income Walk to EBIT-Adj.
Operating Income Walk to EBIT- Adj ($B) Q2 Q3 Q4 Q1 Q2 Operating Income Equity Income Non-Controlling Interests (0.1) (0.1) (0.1) Non-Operating Income/(Expense) (0.2) Earnings Before Interest & Taxes (EBIT) Less Special Items EBIT- Adj. Note: Starting Q4 2010 EBIT & EBIT-Adj. include GM Financial on
Slide 43: Reconciliation of Automotive Free Cash Flow
Reconciliation of Automotive Free Cash Flow ($B) Q2 Q2 Net cash provided by operating activities Less net cash provided by operating activities-GM Financial n/a Automotive Net Cash Provided/(Used) Operating Activities Capital expenditures (1.0) (1.2) Automotive Free Cash Flow S6 Note: Results may no
Slide 44: GM Financial – Key Metrics
GM Financial – Key Metrics ($M) Q2 2011 Memo: Q2 2010** Earnings Before Tax 13 9 Total Originations 1,522 GM new vehicles as % of total 38.0% 14.0% Finance Receivables 9,110 8,734 Delinquencies (>30 days)* 6.1% 8.9% Annualized net charge-offs as % of avg. receivables 2.4% 4.5% S7 * Excludes finance
Slide 45: Info Item: GMNA C$ Net Monetary Liability
Info Item: GMNA – C$ Net Monetary Liability GMNA CAD NML Translational Impact Q1 Q2 Q3 Q4 CY Q1 Q2 Non-Cash EBIT Impact ($B) $(0.2) $0.2 $(0.2) $(0.2) $(0.4) $(0.2) $0.0 Period End FX (CAD per USD) Inc/(Dec) vs. Prior Perio d (0.0323) (0.0222) (0.0289) (0 . 0507) (0.0267) 0.001 7 • GM Canada balance
Slide 46: Calculation of EBIT-Adj. as a Percent of Revenue
Calculation of EBIT-Adj. as a Percent of Revenue ($B) Q2 % Q3 % Q4 % Q1 % Q2 % Consolidated Revenue Operating Income 5.7% 5.4% 0.6% 2.6% 6.2% EBIT-Adj. 6.1% 6.7% 2.8% 5.6% 7.5% GMIO Revenue Operating Income 5.2% 2.5% 1.1% 1.8% 2.3% Non-Operating Income (Expense) (0.1) Plus Special Items * EBIT from