General Motors Company · NYSE:GM
General Motors — Corporate Update (June 2012)
9 slides from General Motors's corporate update, Jun 1, 2012
Slide 1: GM U.S. Salaried Pension Changes
GM U.S. Salaried Pension Changes June 1, 2012
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,” “outlook” or
Slide 3: Next Steps in Pension De-Risking
Next Steps in Pension De-Risking 2 • Key Components 1) Voluntary lump-sum payment offer to ~42,000 eligible U.S. salaried retirees and former employees receiving a pension benefit 2) Agreement with Prudential to purchase annuity contracts and assume annuity obligations for remaining salaried retiree
Slide 4: Pension De-Risking Actions Taken
Pension De-Risking Actions Taken 3 Offer Actives Lump-Sums At Retirement Retiree Lump Sums Transition Actives to Defined Contribution Plan Close Plan to New Participants Asset/Liability Matching Annuitization U.S. Defined Benefit Plans Hourly Salaried
Slide 5: Global Pension Funded Status as of YE11
Global Pension Funded Status 4 $ Billions as of YE11 * Funded Status Based On GAAP Reporting Basis * Funded Status PBO Assets $ % U.S. Salaried 36 33 (3) 92 U.S. Hourly 71 61 (10) 86 Rest of World / Other 27 15 (12) 55 Total 134 109 (25) 81
Slide 6: U.S. Salaried Funded Status Pro-Forma
U.S. Salaried Pension Funded Status 5 ** Reflects mid-point of the anticipated cash contribution range of $3.5B to $4.5B * Funded Status Based On GAAP Reporting Basis Funded PBO Assets Status YE 2011 36 33 (3) Cash Contribution -- 4 4 Settled (26) (29) (3) Pro-Forma 10 8 (2) * ** $ Billions
Slide 7: Summary Financial Impact
Summary Financial Impact Cash Pension Funded Status P & L – One time P & L – Recurring Change ($B) ~1 ~ 3 ~ 4 ~0.2 Overall Financial Flexibility 6 Pension Benefit Obligation ~ 26
Slide 8: Reducing Pension Volatility
7 Reducing Pension Volatility 70% 80% 90% 100% 110% 120% 130% 140% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 GM US Salaried S&P 500 Average 1 1 Average GAAP funded status of S&P 500 companies that sponsor pension plans and are 12/31 filers -- -- -- 2.0 3.2 -- -- -- -- -- -- 1.3 0.6 U.S. Sa
Slide 9: Summary
Summary 8 • Next step in GM’s pension de-risking strategy • Provides flexibility and security to retirees • Allows GM to decrease pension obligation and improve risk profile and financial flexibility of the company • Sets precedent for additional actions