General Motors Company · NYSE:GM
General Motors — Investor Day (January 2013)
50 slides from General Motors's investor day presentation, Jan 15, 2013
Slide 1: Video: ATS Spot :60
VIDEO ATS Spot :60 Exhibit 99.2
Slide 2: Cadillac ATS North American Car of the Year
CADILLAC ATS NORTH AMERICAN CAR OF THE YEAR Exhibit 99.2
Slide 3: 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 4: Chuck Stevens, CFO GM North America
CHUCK STEVENS CFO GM North America
Slide 5: 2012 Accomplishments
2012 ACCOMPLISHMENTS ¶ Continued strong product launches – Sonic, Malibu, Spark, XTS and ATS ¶ Expanded U.S. bank strategy – Wells Fargo partnership ¶ Fixed cost management – CAW agreement – U.S. Salaried pension de-risking ¶ Dealer network facility upgrades ¶ Pricing and inventory discipline
Slide 6: 2013 GMNA Outlook
2013 GMNA OUTLOOK Volume ¶ Expect U.S. industry increase of ~5% ¶ Expect modest share increase Mix ¶ Increased luxury vehicles offset with increased small cars ¶ Expect truck production to be flat Price ¶ Favorable price on new vehicles ¶ Unfavorable price on carryover vehicles ¶ Overall favorable C
Slide 7: Chevrolet Silverado
CHEVROLET SILVERADO
Slide 8: Chevrolet Impala
CHEVROLET IMPALA
Slide 9: Chevrolet Corvette
CHEVROLET CORVETTE
Slide 10: Cadillac CTS
CADILLAC CTS
Slide 11: 2013 Opportunities and Challenges
2013 OPPORTUNITIES AND CHALLENGES Opportunities ¶ From oldest to among freshest portfolio in next 18 months ¶ Brand image improvements, dealer facility upgrades ¶ GM Financial Challenges ¶ Execute flawless product launches ¶ Economic risk ¶ Market share growth
Slide 12: Mid-Term Goal: 10% Margins
MID-TERM GOAL: 10% MARGINS Product Launches Maintain Pricing Discipline SG&A Global Mrktg. Mfg. Initiatives Near to Mid-Term Fixed Cost Focus Long Term Global Architectures Strategic Sourcing Manufacturing & Supplier Footprint D&A Pension Income Advertising >=10% EBIT ~8% EBIT
Slide 13: Summary
SUMMARY ¶ 2013 setting the stage for enhanced profit growth in mid-term ¶ Flawless launch execution is critical ¶ Maintain pricing discipline/inventory management ¶ Continue to execute roadmap to 10% margins
Slide 14: Chuck Stevens, CFO GM South America
CHUCK STEVENS CFO GM South America
Slide 15: 2012 Accomplishments
2012 ACCOMPLISHMENTS ¶Return to profitability driven by – Successful product launches around region... especially Brazil – Good progress on cost side of business – Ability to manage volatility/changing environment and still meet commitments
Slide 16: 2013 GMSA Outlook
2013 GMSA OUTLOOK Volume ¶ Moderate industry growth ¶ Slight market share increase Price ¶ Price increase to recover economics Mix ¶ Richer launch mix ¶ Portfolio renewal Cost ¶ Performance to partially offset economics and FX impact EBIT-Adj. Margin Represents Trend vs. 2012
Slide 17: Chevrolet Onix
CHEVROLET ONIX Represents 26% of Brazil sales for both NB and HB
Slide 18: Chevrolet Spin
CHEVROLET SPIN Segment leader after 4-6 months introduction
Slide 19: 2013 Opportunities and Challenges
2013 OPPORTUNITIES AND CHALLENGES Opportunities ¶ Lower than expected VEB/USD devaluation ¶ Further cost reduction initiatives ¶ Infrastructure investments in Brazil Challenges ¶ Venezuela – Chavez health/succession ¶ Argentina – Government protests, intervention ¶ Brazil – Onix launch, elimination
Slide 20: Mid-Term Goal: Mid-Single Digit Margins
MID-TERM GOAL: MID-SINGLE DIGIT MARGINS ¶ Mid and long term plans set the path to sustained profit in the region ¶ Product refresh ¶ Rationalize portfolio ¶ Fixed cost discipline ¶ Low cost manufacturing footprint ¶ Supplier footprint ¶ Protect market leadership in high risk countries 2013 Important
Slide 21: Summary
SUMMARY ¶ Profit improving, but headwinds persist ¶ Key launch cadence completed with Onix in Q1 2013 ¶ YOY Revenue, EBIT, and EBIT margin improvement ¶ Defined mid-term path toward mid-single digit margins ¶ Challenging economic, political, and regulatory environment
Slide 22: Michael Lohscheller, VP & CFO Opel/Vauxhall
MICHAEL LOHSCHELLER Vice President & CFO Opel/Vauxhall
Slide 23: 2012 Accomplishments
2012 ACCOMPLISHMENTS ¶ Launch of six new products in 2012 ¶ Opel/Vauxhall: ranks #3 passenger car brand in Europe ¶ Opel/Vauxhall: sales of +1 million units ¶ Inventory reduction from more than 180,000 units to less than 100,000 units ¶ Manufacturing footprint reduction: next gen Astra production in
Slide 24: 2013 GME Outlook
2013 GME OUTLOOK Represents Trend vs. 2012 Volume ¶ Overall industry decline of ~ 4% ¶ Expect modest share increase ¶ Integration of Financial Services Mix ¶ Downward shift to smaller products ¶ Offset by favorable effect of new launches Price ¶ Continued pricing pressure in industry Cost ¶ Producti
Slide 25: Opel Mokka
OPEL MOKKA
Slide 26: Opel Astra NB
OPEL ASTRA NB
Slide 27: Opel Adam
OPEL ADAM
Slide 28: Opel Cascada
OPEL CASCADA
Slide 29: 2013 Opportunities and Challenges
2013 OPPORTUNITIES AND CHALLENGES Opportunities ¶ Successful launches of new products (Mokka, Adam, Cascada and New Insignia) especially in growing segments (A-Car, B-SUV) ¶ Introduction of three new highly efficient families of powertrains: two gasoline, one diesel ¶ Introduction of Intellilink inf
Slide 30: Mid Term Goal: Breakeven by Mid-Decade
MID TERM GOAL: BREAKEVEN BY MID-DECADE Volume/Revenue ¶Moderate industry recovery ¶23 new models/ strengthened brands ¶Expansion of auto financing ¶New Go-To-Market strategy Variable Cost ¶Material Cost reduction ¶Logistics savings (GEFCO) Fixed Cost ¶Improved capacity utilization ¶Headcount reducti
Slide 31: Summary
SUMMARY ¶ Restructuring of European manufacturing, sales and administration footprint ¶ Price stabilization and mix optimization ¶ Growth in profitable new segments for Opel/Vauxhall ¶ GME Opel/Vauxhall breakeven by mid-decade ¶ Strategic initiatives in Europe
Slide 32: Tim Stonesifer, CFO GM International Operations
TIM STONESIFER CFO GM International Operations
Slide 33: 2012 Accomplishments
2012 ACCOMPLISHMENTS Yet Another Record Year… ¶ Leveraged growth with great vehicles – All time record 4 million units* – 18 launches, 9.7% share ¶ $1.8B EBIT-adjusted through Q3 2012 ¶ Built pricing power and operating leverage ¶ Improved customer satisfaction and quality – 28 “Voice of Customer” a
Slide 34: 2013 GMIO Outlook
2013 GMIO OUTLOOK Volume ¶ Industry increase ~5% ¶ Expand portfolio in China, ASEAN, India Mix ¶ Improvement in Korea and Australia Price ¶ Moderate improvement Cost ¶ Favorable material cost performance ¶ Invest in growth EBIT-Adj. Margin ¶ FX headwinds for consolidated operations ¶ Competitive pre
Slide 35: Cadillac XTS
CADILLAC XTS “Most technologically advanced production car in the Cadillac brand’s history, targeting a new generation of luxury customers” Key Markets: China, Middle East
Slide 36: Chevrolet Spin
CHEVROLET SPIN Key Markets: ASEAN (Indonesia, Thailand, Philippines) “Low-cost, affordable seven-passenger MPV, aimed at the lower end of the growing small wagon, utility and minivan segments”
Slide 37: Chevrolet Sail
CHEVROLET SAIL “Leveraging success in China to broaden India portfolio into small segment with both petroleum and diesel variants” Key Markets: China, India
Slide 38: Chevrolet Trax/Tracker
CHEVROLET TRAX/TRACKER “Urban crossover that offers a perfect combination of SUV design, functionality, performance and value” Key Markets: Western/Central Europe, Korea, Russia
Slide 39: 2013 Opportunities and Challenges
2013 OPPORTUNITIES AND CHALLENGES Opportunities ¶Leveraging growth markets ¶Continuing introduction of fresh products ¶Driving cost productivity…material and SG&A Challenges ¶Executing flawless launches…grow share ¶Delivering price improvements ¶Monitoring economic/political risk
Slide 40: Mid-Term Goal: Improve Margins, Continued Profitable Growth in China
MID-TERM GOAL: IMPROVE MARGINS, CONTINUED PROFITABLE GROWTH IN CHINA ¶ Leverage strong foundation to improve profit and margin across the board – Pricing confidence with winning products – Leveraging “LEAN” to drive cost focus – Increase margins to mid single digit ¶ Maintain leading position and gr
Slide 41: Summary
SUMMARY ¶Deliver volume growth ¶Maximize pricing opportunities ¶Drive cost productivity ¶Improve customer satisfaction and quality ¶Increase margins
Slide 42: Dan Ammann, SVP & Chief Financial Officer
DAN AMMANN Senior Vice President & Chief Financial Officer
Slide 43: GM Financial
GM FINANCIAL
Slide 44: GM Financial – Ally IO
GM FINANCIAL – ALLY IO ¶Provides financing availability in GM’s key international markets ¶ Positions GMF to leverage success in North America on global platform – Expect to close financing gap vs. competition – Expands financing coverage to 80% of GM global sales ¶ Cumulative $5.5B capital deployme
Slide 45: GM Financial Summary
GM FINANCIAL SUMMARY $ Billions Sept 30, 2012 Balance Sheet GM Financial IO Acquisition Pro Forma Total Assets 16 17 33 Liabilities 12 15 27 Total Equity 4 2 6 Equity/Assets ~26% ~19% Post Acquisition Run Rate Earnings Pre-Tax ~0.6 0.3-0.4 ~1.0 Excludes the effects of purchase accounting which may i
Slide 46: Total Company Summary
TOTAL COMPANY Summary
Slide 47: 2012 Accomplishments
2012 ACCOMPLISHMENTS ¶ Delivered solid earnings and cash generation ¶ Proactively addressed multiple strategic issues: – GM South America returned to profitability – European turnaround actions and mid-decade plan – Pension de-risking – reduced obligation $29B – Financial flexibility increased via $
Slide 48: 2013 GM Drivers of Earnings
2013 GM DRIVERS OF EARNINGS Volume ¶ Industry growth ¶ Expect modest share gain, driven by new vehicles Mix ¶ Stabilization of vehicle mix offsetting recent years negative trend Price ¶ Largely due to major new entries Cost ¶ Material content on new entries ¶ Pension income/D&A ¶ Launch related adve
Slide 49: Progress in 2012… More to Do in 2013
PROGRESS IN 2012… MORE TO DO IN 2013 ¶ Addressed many strategic issues in 2012 to further solidify the foundation ¶ 2013 focus is on execution – Flawless product launches – Maintain discipline in marketplace – Ongoing cost/efficiency actions – Progress in Europe – Working capital improvements
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