General Motors Company · NYSE:GM
General Motors — Q1 2006 Earnings Presentation
18 slides from General Motors's earnings presentation, May 3, 2006
Slide 1: Forward-looking statements
In this chart presentation and in related comments by General Motors’ and General Motors Acceptance Corporation’s management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evalu
Slide 2: Q1 Financial Review
Fritz Henderson Vice Chairman & CFO Q1 Financial Review 2006 GM/GMAC Global Relationship Conference F. Henderson May 3, 2006 © 2006 General Motors Corporation. All Rights Reserved 2
Slide 3: 2006 First Quarter Highlights
Adjusted EPS $(0.94), $(529)M Net Loss more than accounted for by impact of $1B contribution related to GM-UAW hourly retiree health care agreement [$681M after-tax, $(1.20) EPS] — Contribution recognized in Q1 due to March 31 court approval and reflected in operating results consistent with future
Slide 4: First Quarter Adjusted Results — Net Income
* Represents GMfunding of Defined Contribution VEBA per GM-UAW hourly retiree health care agreement approved by the courts on 3/31/06; nobenefits from this agreement are included in Q1 2006 results. For reconciliation to GAAP figures, please refer to supplemental charts provided in the Q1 2006 earni
Slide 5: First Quarter Adjustments to Income
$Millions EPS Adjusted Net Income (529) $(0.94) Special Items (after-tax) Suzuki Gain on Sale 317 0.56 Restructuring Charges/Other (111) (0.19) Total Special Items 206 0.37 Reported Net Income (323) $(0.57) Exclusion of special items useful for: Management to measure operations Comparisons between r
Slide 6: North America First Quarter Adjusted Results
2006 Fav/(Unfav) $Millions 2005 2006 2005 Revenue 25,227 28,531 3,304 Net Income (Loss) (1,513) (946) 567 Memo: DC VEBA included in above 0 (484) (484) Net Margin (6.0)% (3.3)% 2.7 p.p. North America Production Volume (000) 1,182 1,255 73 Market Share 25.2% 23.7% (1.5) p.p. United States Industry SA
Slide 7: North America Adjusted Net Income
Q1 2005 Net Income $(1.5)B DCVEBA Contribution (0.5) Volume & Mix 0.6 Net Price (Including Sales Allowances) 0.5 Q1 2006 Net Income $(0.9)B Q1 2005 vs. Q1 2006 North America Adjusted Net Income 2006 GM/GMAC Global Relationship Conference F. Henderson May 3, 2006 © 2006 General Motors Corporation. Al
Slide 8: GMNA Vehicle Revenue Per Unit
‘06 ‘05 ‘04 Q1 ‘03 ‘02 ‘01 ‘05 ‘04 ‘03 CY ‘02 ‘01 Drivers of Improvement — New Fullsize Utility — Discontinued Vehicles — Pricing Strategy Net Revenue: Gross Revenue Less Sales Incentives $18,000 $18,500 $19,000 $19,500 $20,000 $20,500 $19,960 $18,948 $18,948 $19,495 $19,228 $19,301 $18,888 $19,430
Slide 9: Other Automotive Regions Profitable
GME — Restructuring program on track — Q1 2006 improved $180M vs. Q1 2005 — Approx. $600Min annual structural cost savings by 2007 — Continued focus on contribution margin improvement GMLAAM — Industry growth across all markets — Q1 2006 industry up 14% y-o-y — GM share up to 16.9% in Q1 2006 vs. 15
Slide 10: China Growth Remains Strong
China has demonstrated explosive growth this decade, with industry sales up 170% since 2000 — Recent growth remains strong, with industry up 13% in 2005 following 15% growth in 2004 GMresults in China steadily outpacing industry growth — 35% overall growth in 2005 vs. 2004 — 11.2% market share in 20
Slide 11: Gross/Net Liquidity
$ in Billions (15) (10) (5) 0 5 10 15 20 25 30 Gross Cash 1, 2 Net Liquidity 2 2006 2005 2004 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 (10.6) (12.1) (13.2) (12.4) (12.5) (9.2) (8.2) (7.4) (8.9) 21.6 20.4 19.2 20.2 19.8 23.3 24.5 25.0 23.5 1 Cash, Mkt. Securities & Readily Available VEBA 2 Excluding Financing Oper
Slide 12: Managerial Cash Flow Summary
* Excludes GMAC $ Billions Q1 2006 Operating Related Net Income (Automotive and Corp/Other) (0.9) Depreciation and Amortization 1.9 Capital Expenditures (1.3) Change in Receivables, Payables and Inventory (1.6) Pension/OPEB Expense (Net of Payments) 0.6 Proceeds from Asset Sales 2.0 DC VEBA Payable
Slide 13: Liquidity & Balance Sheet Summary
GMhas taken numerous steps recently to reduce long-term balance sheet risk and significantly bolster liquidity Balance sheet risk managed via: — UAWRetiree Health Care Agreement — Salaried Retiree Health Care Revisions — Salaried Pension Revisions Liquidity already strengthened via: — Sale of FHI st
Slide 14: GMAC Transaction Summary
Transaction Sale of 51% of GMAC common interest by GM to consortium (Certain retail and lease assets retained by GM) GMCash Proceeds Anticipate $14B over 3 years $10B by closing Consortium Investors Cerberus CapitalManagement, L.P. Citigroup Aozora Bank Ltd. Anticipated Closing Fourth Quarter 2006 G
Slide 15: GMAC Transaction Benefits to GM
De-linked GMAC credit rating preserves value Liquidity benefit: $14B in cash over 3 years, $10B received upfront 49% equity in a stronger GMAC Strong Services Agreements that preserve mutually beneficial historical relationship Significant annual payments to GM GMAC Transaction Benefits to GM 2006 G
Slide 16: Delphi Update
Resolution of Delphi is top GM priority GM/UAW/Delphi attrition program was a good start All partiesmotivated to find a consensual solution without disruption to GM supply GMhas estimated that it will incur obligations, including those under the Benefit Guarantee, ranging from $5.5B — $12.0B — GM be
Slide 17: Key GMNA Financial Drivers 2006 CY vs. 2005 CY
/ * Before special items (Lower U.S. Share) U.S. Industry Same Volume Impact of Reduced Fleet on Same Revenue/Unit U.S. Inventory Same Net Pricing Better Product Mix Same Current 1/13/06 Outlook Revenue Outlook vs. 1/13 Material Cost Worse Health Care Better Capacity Related Same Other Structural Co
Slide 18: Summary
Significant improvement in corporate profitability vs. Q1 2005 Improved results in GMNA driven by volume, mix, and price GME, GMLAAM, GMAP, and GMAC all profitable Automotive liquidity stronger at $21.6B Overall, good progress; muchmore work to do Summary 2006 GM/GMAC Global Relationship Conference