General Motors Company · NYSE:GM
General Motors — Deutsche Bank Global Auto Industry Conference 2016
34 slides from General Motors's conference presentation, Jan 13, 2016
Slide 1: Mary Barra, Chairman & CEO - Deutsche Bank Global Auto Industry Conference
MARY BARRA Chairman & CEO DEUTSCHE BANK GLOBAL AUTO INDUSTRY CONFERENCE
Slide 2: GM will deliver another strong year of operating performance in 2015
GM WILL DELIVER another strong year of operating performance in 2015 – ON TRACK with full-year 2015 guidance 1
Slide 3: Redefining the future of personal mobility
WE ARE REDEFINING THE FUTURE OF PERSONAL MOBILITY 2 GAME CHANGERS CORE BUSINESS AND GROWTH FOUNDATION
Slide 4: GM is a compelling investment opportunity
GM IS A COMPELLING INVESTMENT OPPORTUNITY We are REDEFINING the future of PERSONAL MOBILITY From “Best Efforts” to “ACCOUNTABLE FOR RESULTS” Building a TRACK RECORD of DELIVERING on COMMITMENTS 3
Slide 5: Dan Ammann, President
DAN AMMANN President DEUTSCHE BANK GLOBAL AUTO INDUSTRY CONFERENCE
Slide 6: Macro tailwind diminishing
MACRO TAILWIND DIMINISHING 0% 2% 4% 6% 8% 10% 12% 14% 60 65 70 75 80 85 90 95 2009 2010 2011 2012 2013 2014 2015 2016 Units ( M ) G rowth R a te % Tr e n d Growth Rate TrendIndustry Source: Industry Units based on IHS Estimates as of 4Q 2015 5
Slide 7: Disruption everywhere
<5 Quast [TaR) an Sidecar. 02 eHi Car j= DISRUPTION Se EVERYWHERE luk a & zimride avi — oe autolib’ goget . carftty” "Sa Hertz ; wo eo” WE RS Google OS Ss wih @moovit =si5 [Emterprise TaSo CarShare 20 Flywheel Xmytaxi Q@Q=« ee = Zazcor tam Ca im) (R] RIDESCOUT™ SHAREoR y GENERAL MOTORS
Slide 8: Focused on resource allocation
FOCUSED ON RESOURCE ALLOCATION 7 Macro Deceleration Disruption Intense Focus on Resource Allocation
Slide 9: Bold decisions to improve ROIC
BOLD DECISIONS TO IMPROVE ROIC Chevy Europe Opel Capacity Russia Australia Thailand Indonesia Brazil South Africa 8
Slide 10: Traded volume for sustainability
TRADED VOLUME FOR SUSTAINABILITY 9 ~11.2% ~27% ~7% Re v enue ($B ) 2013 Revenue Net FX Translation Market Exits Industry Growth Price & Mix Adjacencies 2015 Revenue $155 ~Flat Market Share 11.5% ROIC 20% EBIT-Adj. 5.5% Margin Note: 2015 Revenue and EBIT-Adj. Margin based on analyst consensus ROIC an
Slide 11: Driving capital efficiency
DRIVING CAPITAL EFFICIENCY 1 0 Global Common Vehicles Fewer Plants Higher Volume Long Lifecycle Platforms Higher Utilizations More Flexibility Lower Cost Tooling Reduced Powertrain Capacity Operational Excellence
Slide 12: Capital efficiency strategy
CAPITAL EFFICIENCY STRATEGY 1 1 A n n u al C a pe x Spend ($B ) 12 10 8 6 4 2 Longer Term Significant Reduction Near Term ~5-5.5% of Auto Revenue (~$9B 2016 Estimate) 2013 2016 2019
Slide 13: Portfolio of growth opportunities
PORTFOLIO OF GROWTH OPPORTUNITIES 1 2 % Profit Grow th Emerging Markets Mature Markets OnStar China Luxury GM Financial Aftersales Full-Size Trucks Urban Mobility/ Autonomous
Slide 14: Evolution of car-based urban mobility
EVOLUTION OF CAR-BASED URBAN MOBILITY PAST CURRENT FUTURE Taxi Owner/Driver Taxi Car Share “Drive Yourself” Owner/Driver Rideshare “Be Driven” Autonomous On-Demand Network Owner/Driver 1 3
Slide 15: Our strategic partnership with Lyft
OUR STRATEGIC PARTNERSHIP WITH LYFT 1 4 Data Vehicle AccessAutonomous Co-Marketing
Slide 16: Factory Pre-Owned Collection
FACTORY PRE-OWNED COLLECTION =e W) GM Sas HOME HOWITWORKS SEARCH INVENTORY WELCOME TO THE FACTORY PRE-OWNED COLLECTION The only place you'll find a nationwide inventory of former GM company cars, lease or rental vehicles, each with fewer than 37,000 miles PRICE ASSURANCE Compare to the Kelley Blue B
Slide 17: GM is a compelling investment opportunity
GM IS A COMPELLING INVESTMENT OPPORTUNITY Strict focus on resource allocation and capital efficiency Significant profit growth opportunities in adjacencies Disruption is real and is a PROFIT OPPORTUNITY for GM 1 6
Slide 18: Chuck Stevens, EVP & Chief Financial Officer
CHUCK STEVENS Executive Vice President & Chief Financial Officer DEUTSCHE BANK GLOBAL AUTO INDUSTRY CONFERENCE
Slide 19: GM delivering commitments
GM DELIVERING COMMITMENTS 1 8 2014 TARGETS Strong core operating performance ON TRACK 2015 TARGETS Double-digit EBIT- Adj. & EBIT-Adj. margin growth Double-digit EPS- Adj. growth NA EBIT-Adj. margin ~10% 2016 TARGETS Sustain strong margins in NA and China Europe breakeven ON TRACK ON TRA
Slide 20: Key drivers - 2016 targets
KEY DRIVERS – 2016 TARGETS 1 9 Important product launches Cost efficiencies Tailwinds Growth in adjacencies Challenging macroeconomic environment in South America Pricing pressure in Europe and China Headwinds
Slide 21: Continued EBIT-adj. growth and margin expansion
$8.6 $9.3** >$10 2013 2014 2015 Consensus 2016 Outlook 2 0 $6.5 Memo: EBIT-Adj. Margins 6.0%** ~7% 5.5% * Reconciliation of EBIT-Adjusted on slide S1 ** Represents Core Operating Performance – excluding recalls >20% EBIT-Adjusted Growth 2013-2015 CONTINUED EBIT-ADJ. GROWTH AND MARGIN EXPANSION… GM C
Slide 22: And continued EPS-adj. growth
AND CONTINUED EPS-ADJ. GROWTH 2 1 *2014 Represents Core Operating Performance – excluding recalls **Reconciliation of EPS-Adj. on slide S2 Note: Consensus EPS-Adj. calculated using average of Sell Side analysts covering GM as of Jan 11, 2016 EPS-Adj. Growth $4.12* $3.05 EPS-Adj. $4.80 2013 2014 2015
Slide 23: Free cash flow growth greater than earnings growth
FREE CASH FLOW GROWTH GREATER THAN EARNINGS GROWTH 2 2 2010-2015 Average 2016-2018 Potential Adj. Auto FCF* $ Billions ~$23B Over Last 6 yrs. ~50% of Market Capitalization ~$4 ~$6-$7 Increased EBIT and cycling past unusual calls on cash provides significant opportunity for FCF growth and increased s
Slide 24: Disciplined capital allocation framework
DISCIPLINED CAPITAL ALLOCATION FRAMEWORK Transparent and disciplined capital allocation framework driving shareholder value Reinvest in Business to Drive Growth and 20+% ROIC Maintain $20B Target Cash Returned ~$6B to shareholders in 2015 All Available Free Cash Flow to Shareholders 2 3
Slide 25: Capital allocation framework proof points
CAPITAL ALLOCATION FRAMEWORK PROOF POINTS Strong financial results Increasing earnings and margin; ROIC ~27% Focused discipline on capital efficiency Returned ~$6B to shareholders in 2015, including $3.5B in share repurchases Initially upsizing share repurchase program to $9B thru 2017 I
Slide 26: We remain focused on downside protection
WE REMAIN FOCUSED ON “DOWNSIDE PROTECTION” WE ARE A MUCH DIFFERENT COMPANY TODAY 2007* Today** Total Automotive Debt ($B) $39 $9 Net U.S. Pension + Global OPEB ($B) $49 $18 U.S. Breakeven (SAAR Units) ~16M ~10-11M Investment grade rating demonstrates improved position *Refers to General Motors Corpo
Slide 27: GM is a compelling investment opportunity
GM IS A COMPELLING INVESTMENT OPPORTUNITY 2 6 Continued EPS growth trajectory expected Earnings Growth Disciplined Capital Allocation Robust Downside Protection Disciplined reinvestment and returning cash to shareholders Enables sustained performance through the cycle
Slide 28: Select supplemental financial information
SELECT SUPPLEMENTAL FINANCIAL INFORMATION
Slide 29: Forward looking statements
FORWARD LOOKING STATEMENTS In this presentation and in related comments by our management, our use of the words “plans,” “goals,” “expect,” “anticipate,” “possible,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “appears,” “potential,” “projected,
Slide 30: Non-GAAP measures definitions
Management uses earnings before interest and taxes (EBIT)-Adjusted, EBIT-Adjusted margins, return on invested capital (ROIC), and Automotive adjusted free cash flow in its financial and operational decision making processes, for internal reporting and as part of its forecasting and budgeting process
Slide 31: Reconciliation of EBIT-adjusted
RECONCILIATION OF EBIT-ADJUSTED S 1 Years Ended $ (B) 2014 2013 2012 Operating Segments GM North America (GMNA) 6.6 7.5 6.5 GM Europe (GME) (1.4) (0.9) (1.9) GM International Operations (GMIO) 1.2 1.3 2.5 GM South America (GMSA) (0.2) 0.3 0.5 GM Financial (GMF) 0.8 0.9 0.7 Total Operating Segments 7
Slide 32: Earnings per share (EPS) and EPS-adj.
EARNINGS PER SHARE (EPS) AND EPS-ADJ. Years Ended 2014 2013 Net Income to Common Stockholders ($B) 2.8 3.8 EPS - Diluted ($/Share) 1.65 2.38 Special Item(s)* Impact to EPS - Diluted ($/Share) (1.40) (0.80) EPS - Adjusted ($/Share) 3.05 3.18 Memo: Recall Related Expense Impact to EPS ($/Share) (1.07)
Slide 33: Adjusted automotive free cash flow
ADJUSTED AUTOMOTIVE FREE CASH FLOW Years Ended $ (B) 2014 2013 2012 2011 2010 Operating Cash Flow 10.1 11.0 9.6 7.4 6.6 Less: Capital Expenditures (7.0) (7.5) (8.1) (6.2) (4.2) Adjustments* - 0.2 2.7 1.8 4.0 Adjusted Free Cash Flow 3.1 3.7 4.3 3.0 6.4 *Additional information on adjustments can be fo
Slide 34: For additional information please visit
For additional information please visit: http://www.gm.com/investors investorrelations@gm.com https://www.gmfinancial.com/investors-information.aspx investors@gmfinancial.com
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