General Motors Company · NYSE:GM
General Motors — Q1 2003 Earnings Presentation
21 slides from General Motors's earnings presentation, April 2003
Slide 1: 2003 First Quarter Results
2003 First Quarter Results In the presentation that follows and in related comments by General Motors management, our use of the words “expect”, “anticipate”, “estimate”, “forecast”, “objective”, “plan”, “goal”, “project” and similar expressions is intended to identify forward looking statements. Wh
Slide 2: Hughes transaction proxy and solicitation notice
In connection with the proposed transactions, General Motors Corporation (“GM”), Hughes Electronics Corporation (“Hughes”) and The News Corporation Limited (“News”) intend to file relevant materials with the Securities and Exchange Commission (“SEC”), including one or more registration statement(s)
Slide 3: First Quarter Highlights
First Quarter Highlights • Financial and operational performance – $1.84 EPS, $1,032 million Net Income, $46.3 billion Revenue* ¾ Improvement in net income of 30%, net revenue of 5% from Q1’02 – $2.71 EPS, $1.5 billion Net Income including Hughes & sale of GM Defense – GMAC posts record Q1 net incom
Slide 4: First Quarter Adjustments to Income
First Quarter Adjustments to Income GM Excluding Total Hughes Hughes GM - - - - - - - - - - $ Millions - - - - - - - - - - Reported Net Income 1,537 (54) 1,483 Special Items (after-tax) Gain on Sale of GM Defense 505 - 505 Adjusted Net Income 1,032 (54) 978 Reported EPS $2.74 ($0.03) $2.71 Adjusted
Slide 5: First Quarter Adjusted Results
First Quarter Adjusted Results 2003 O/(U) 2002 2003 2002 - - - - - - - - $ Millions - - - - - - - GMNA $654 $548 ($106) GME (125) (65) 60 GMLAAM (40) (12) 28 GMAP 7 75 68 Total Automotive 496 546 50 GMAC 439 699 260 Corporate Other (144) (213) (69) Net Income Excl. Hughes 791 1,032 241 Hughes (146)
Slide 6: North America First Quarter Adjusted Results
North America First Quarter Adjusted Results 2003 O/(U) 2002 2003 2002 - - - - - - - - $ Millions - - - - - - - - Pretax Income $938 $739 ($199) Income Taxes (272) (191) 81 Equity Earnings/ Minority Interest (12) 0 12 Net Income $654 $548 ($106) Net Margin 2.2% 1.8% (0.4)p.p. Production Volum e (000
Slide 7: GMNA Vehicle Revenue Per Unit
GMNA Vehicle Revenue Per Unit $20,000 Net Revenue $19,500 $19,146 $19,114 $19,000 $18,782 $18,722 $18,500 $18,538 $18,095 $18,385 $18,000 Net Revenue Gross Revenue Excludes such items as impact of Less Sales daily rental acctg., Service Parts, $17,500 Incentives other outside sales and OnStar $17,00
Slide 8: Europe First Quarter Adjusted Results
Europe First Quarter Adjusted Results 2003 O/(U) 2002 2003 2002 - - - - - - - - $ Millions - - - - - - - - Pretax (Loss) ($157) ($114) $43 Income Taxes 26 43 17 Equity Earnings / Minority Interest 6 6 0 Net (Loss) ($125) ($65) $60 Net Margin (2.2%) (1.0%) 1.2p.p. Production Volum e (000) 456 491 35
Slide 9: Latin America, Africa & Middle East First Quarter Results
Latin America, Africa & Middle East First Quarter Results 2003 O/(U) 2002 2003 2002 - - - - - - - - $ Millions - - - - - - - - - Pretax Income / (Loss) ($41) ($17) $24 Income Taxes 1 7 6 Equity Earnings / Minority Interest 0 (2) (2) Net Income / (Loss) ($40) ($12) $28 Net Margin (3.1%) (1.1%) 2.0 p.
Slide 10: Asia Pacific First Quarter Results
Asia Pacific First Quarter Results 2003 O/(U) 2002 2003 2002 - - - - - - - - - $ Millions - - - - - - - - - Pretax Income / (Loss) ($13) $19 $32 Income Taxes 0 (11) (11) Equity Earnings / Minority Interest 20 67 47 Net Income / (Loss) $7 $75 $68 Net Margin 0.7% 6.5% 5.8p.p. Production Volume (000) 6
Slide 11: GMAC First Quarter Results
GMAC First Quarter Results Net Income 2003 O/(U) 2002 2003 2002 - - - - - - - - $ Millions - - - - - - - - - Financing Operations $255 $302 $47 Insurance Operations 36 26 (10) Mortgage Operations 148 371 223 Consolidated Operations $439 $699 $260 10
Slide 12: Gross / Net Liquidity
Gross / Net Liquidity 25.0 Gross Liquidity1,2 20.6 Net Liquidity2 20.0 17.6 18.2 17.3 17.3 $ Billions 15.0 11.0 11.5 11.1 9.4 10.0 5.6 5.0 3.3 2.3 2.6 2.3 1.9 1.8 0.5 1.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 - - - - - - - - - - - - 2001 - - - - - - - - - - - - - - - - - - - - - - 2002 - - - - - - - - - -
Slide 13: Cash Flow Summary
Cash Flow Summary (Excludes GMAC & Hughes) $ Billions Change Since Operating Related 12/31/02 Net Income 0.8 Depreciation & Amortization 1.7 Capital Expenditures (1.5) Change in Receivables, Payables & Inventory 0.1 Pension/OPEB expense (net of payments) 1.0 Sale of GM Defense 1.1 Other (0.3) Total
Slide 14: Strengthen Balance Sheet by $10B in 2003
Strengthen Balance Sheet by $10B in 2003 Q1 Status Status $ Billions thru 31-Mar Change in Gross Cash 2.5 (excl. dividends & sale of GM Def ense) GM Defense Sale 1.1 GM $1-2/3 Dividends (0.3) Total Change in Cash 3.3 GMH Stock to Pension/VEBA 1.2 Total 4.5 Change in gross cash versus 12/31/02 (incl.
Slide 15: 2003 Q2 Outlook
2003 Q2 Outlook Q2 Total Vehicle Industry (Mil) - United States Low-Mid 16M * Production Estimates (000's) - GMNA 1,390 - 10% - GM Total 2,116 - 5% Earnings (Diluted EPS) - Excluding Hughes $1.00 + * Represents U.S. SAAR 14
Slide 16: 2003 CY Priorities / Targets
2003 CY Priorities / Targets • Priorities – $5.00 EPS excluding Hughes & special items Y – Cash generation of $10B G – Grow share in all regions Y • Regional / Sector Income Targets – North America: $1,700 - $1,900M Y – Europe: ($200) - $0M G – Rest of World: $100M+ G – GMAC: $1,700 - $1,900M G • Ot
Slide 17: 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 18: Reconciliation to Adjusted Net Revenue, Net Income / EPS
Reconciliation to Adjusted Net Revenue, Net Income / EPS Q1 – 2002 & 2003 $ Millions Total Total Q1 2003 Auto. Excl. Total GMNA GME GMLAAM GMAP Operations GMAC Other Hughes Hughes Corp. Total Net Sales & Revenue 29,963 6,622 1,045 1,147 38,777 7,330 1,031 47,138 2,227 49,365 Net Income 548 (65) (12)
Slide 19: Cash / Debt Balance Reconciliation
Cash / Debt Balance Reconciliation ($ Billions) 3/31/01 6/30/01 9/30/01 12/31/01 3/31/02 6/30/02 9/30/02 12/31/02 3/3/1/03 ACO - Cash and cash equivalents 7.4 8.4 7.9 8.4 14.6 14.4 14.7 13.3 17.0 ACO - marketable securities 0.5 0.8 0.8 0.8 0.8 1.0 1.4 2.1 3.2 Short-term VEBA 3.0 3.0 3.0 3.0 3.0 3.0
Slide 20: Reconciliation of Operating Cash Flow
Reconciliation of Operating Cash Flow March 31, 2003 vs. December 31, 2002 Automotive ACO $ Billions Communications Less & Other Hughes Hughes Net Cash Provided By Operating Activities (GAAP) 4.7 0.2 4.5 Reclassifications to/from Operating - Expenditures for PPE & Special Tools (1.6) (0.1) (1.5) - S
Slide 21: Other Disclosures
Other Disclosures - Reporting Changes: 2003 from 2002 - 2003 CY Market Share Reporting Changes (2002 figures restated on the same terms) Isuzu badged vehicles no longer included except where GM owns the distribution network Wuling sales included in China (Asia Pacific) volumes GMDAT volumes included
General Motors Company — Q1 2003 Earnings Presentation on 6ix