General Motors Company · NYSE:GM
General Motors — Merger or Acquisition (February 2009)
25 slides from General Motors's merger presentation, Feb 19, 2009
Slide 1: GM Analyst Briefing - Restructuring Plan Conference Call Transcript
FINAL TRANSCRIPT Thomson StreetEvents” aa Conference Call Transcript GM - GM Analyst Briefing - GM Restructuring Plan Submitted to U.S. Department of the Treasury Event Date/Time: Feb 18, 2009 / 04:00PM GMT CORPORATE PARTICIPANTS
Slide 2: February 17, 2009 Restructuring Plan Submitted to United States Department of the Treasury
February 17, 2009 Restructuring Plan Submitted to United States Department of the Treasury
Slide 3: Exchange Offer Information
Exchange Offer Information In connection with the proposed public exchange offers General Motors plans to file documents with the Securities and Exchange Commission, including filing a Registration Statement on Form S-4 and a Schedule TO containing a prospectus, consent solicitation and tender offer
Slide 4: Forward-Looking Statements
Forward-Looking Statements In this press release 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 5: Agenda
Operational Aspects of Restructuring Plan Capitalization, Cash Flow & Potential Funding Mix Other Considerations Agenda
Slide 6: Agenda
Operational Aspects of Restructuring Plan Capitalization, Cash Flow & Potential Funding Mix Other Considerations Agenda
Slide 7: Overview
Overview Feb 17 Restructuring Plan addresses requirements set forth in Loan and Security Agreement (LSA) executed with UST on Dec 31, 2008 Plan achieves positive net present value (NPV) using conservative industry assumptions Positive NPV of ~$5-14B using baseline industry assumptions Restructuring
Slide 8: Funding Requirements
Funding Requirements Funding Requirements ($ Billions) Funding Requirements ($ Billions) Funding Requirements ($ Billions) Funding Requirements ($ Billions) Funding Requirements ($ Billions) 2008 2009 2010 2011 Total Dec 2 Downside Scenario 4.0 12.0 2.0 0.0 18.0 + Additional Support For Maturing Cre
Slide 9: Restructuring Plan Key Changes
Restructuring Plan Key Changes Plan Element December 2 February 17 2009 Global Industry Volume (units) Memo: U.S. Industry Volume 63.8M 12.0 M 57.5M 10.5M 2012 U.S. Market Share 20.5% 20.0% U.S. Brand Consolidation Completed No Date 2011 2012 U.S. Manufacturing Plant Count 38 33 Competitive Labor Co
Slide 10: Refocused U.S. Brands & Distribution Channel
Refocused U.S. Brands & Distribution Channel Focusing both product development and marketing resources on 4 core brands (Chevrolet, Cadillac, Buick and GMC) Pontiac positioned as focused niche brand HUMMER sale or phase out decision by Q1 2009 Saab decision linked with global strategic review of bra
Slide 11: Product Plan
Product Plan Focus on fuel efficient passenger cars and crossover in future product portfolio Currently offer 20 models that achieve 30 mpg highway, increasing to 23 by 2012 and 33 by 2014 Currently offer 6 hybrid models, increasing to 14 by 2012 and 26 by 2014 All new vehicle launches in the U.S. d
Slide 12: U.S. Hourly Labor Cost
U.S. Hourly Labor Cost Agreed on special attrition program and suspension of JOBs program Significant progress on cost/work rules, representing major steps in narrowing competitive gap made as of Feb 17 Reached tentative agreement regarding modification to GM/UAW labor agreement Subject to ratificat
Slide 13: Canada
Canada Need to restructure Canadian operations to improve cost competitiveness and mitigate legacy obligations CAW has committed to achieving hourly cost structure consistent with what is ultimately negotiated with the UAW Progress made with Canadian Federal and Ontario Governments related to securi
Slide 14: GMNA Structural Cost Outlook
GMNA structural cost expected to significantly reduce due to: Headcount reductions, capacity rationalization & competitive work rules Brand consolidations and nameplate reductions GMNA Structural Cost Outlook Net Sales ($B) 116.7 112.4 tbd 67.6 81.3 87.9 97.0 100.1 102.9 * * Preliminary
Slide 15: Saab
Saab Currently have global Saab brand under strategic review and requesting Swedish Government support prior to sale Specific proposal to cap GM's financial support Saab operations effectively becoming an independent business entity effective Jan 1, 2010 While hopeful that agreement can be reached w
Slide 16: GM Europe
GM Europe In discussion with European labor partners to achieve $1.2B in labor cost reductions Includes several possible closures/spinoffs of manufacturing facilities in higher cost locations Restructuring sales organization to become more brand focused and better optimize advertising spend Discussi
Slide 17: GMNA Key Metrics
GMNA Key Metrics Actual Actual Actual Viability Plan Viability Plan Viability Plan Viability Plan Viability Plan Viability Plan ($ Billions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 Industry Volume (mil units) Memo: U.S. Industry 20.2 17.1 19.6 16.5 16.6 13.5 13.0 10.5 15.2 12.5 17.1 14.3 18.9 1
Slide 18: GM Global Key Metrics
GM Global Key Metrics Actual Actual Actual Viability Plan Viability Plan Viability Plan Viability Plan Viability Plan Viability Plan ($ Billions) 2006 2007 2008* 2009 2010 2011 2012 2013 2014 Industry Volume (mil units) 67.6 70.7 67.2 57.5 62.3 68.3 74.3 78.6 82.5 GM Wholesale Volume (mil. units) 8.
Slide 19: Agenda
Operational Aspects of Restructuring Plan Capitalization, Cash Flow & Potential Funding Mix Other Considerations Agenda
Slide 20: Capitalization
Capitalization Draft term sheet for conversion of both UAW VEBA obligations (50% or more) and unsecured public debt (two-thirds or more) to equity, presented to UAW, their advisors and advisors to unofficial committee of unsecured bondholders on Jan 28, followed by revised term sheet on Feb 12 Pursu
Slide 21: Baseline Global Cash Flow 2009 - 2014, Annual
Baseline Global Cash Flow 2009 - 2014, Annual
Slide 22: Potential Funding Mix
Potential Funding Mix Secured Revolver Secured Term Loan Preferred Investment Baseline Funding Downside Funding To Be Secured by Existing Collateral $ Billions
Slide 23: Agenda
Operational Aspects of Restructuring Plan Capitalization, Cash Flow & Potential Funding Mix Other Considerations Agenda
Slide 24: Other Considerations
Other Considerations Current state of U.S. supply base Propose Government create credit insurance / Government sponsored factoring program for GM receivables Delphi Restructuring Plan assumes near-term liquidity support and contemplates the purchase of certain U.S. sites Bankruptcy Restructuring bes
Slide 25: Summary
Summary Restructuring Plan comprehensively addresses revenues, costs and balance sheet for both U.S. and foreign operations using conservative assumptions Reduction in brands, nameplates and retail outlets Competitive hourly and salaried compensation by Jan 2010 International restructuring Balance s
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