General Motors Company · NYSE:GM
General Motors — Investor Presentation (March 2015)
22 slides from General Motors's investor presentation, Mar 9, 2015
Slide 1: March 2015
Exhibit 99.3 March 2015 ~
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS In this presentation and in related comments by our management, our use of the words plans,” “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “appears,” “potential,” “project
Slide 3: Additional Information
ADDITIONAL INFORMATION Important Additional Information GM intends to file a proxy statement with the SEC in connection with the solicitation of proxies for GM's 2015 Annual Meeting of Shareholders (the "Proxy Statement"). GM, its directors and certain of its executive officers will be participants
Slide 4: Shareholder Opportunity
SHAREHOLDER OPPORTUNITY Disciplined capital allocation framework — Reinvest in business at 20+% ROIC — Investment grade balance sheet - Tighten cash target to $20B — Allavailable free cash flow to shareholders — Initial $5B share buyback a Strong and improving earnings = Transparent near-term commit
Slide 5: Strong Earnings Momentum
STRONG EARNINGS MOMENTUM GM Consolidated EBIT-Adjusted* $Billions 2015 Target = EBIT-Adjusted and EBIT-Adjusted margins improving in all automotive regions 2016 Target ! I I I ! I = 10% EBIT- Bee margins in I North Am I I I = Profitability in Europe EpiT-Adj. \\ Margins = Sustained margins in China
Slide 6: Six Straight Quarters of GMNA Margin Expansion
SIX STRAIGHT QUARTERS OF GMNA MARGIN EXPANSION EBIT-Adjusted % Revenue m@2012 2013 m2014 Ql Q2 Q3 Q4 cy 2015 2016 Target Target Expect improved EBIT-Adjusted margins in 2015 * Represents Core Operating Performance - excluding recalls
Slide 7: Europe: On Track to Profitability
EUROPE: ON TRACK TO PROFITABILITY Path to Profitability — $ Billions | 2014 Absence of New Fixed Industry EBIT-ADJ. Restructuring Product Cost (1.4) Profitable 2016 Target
Slide 8: Strong Performance in China
STRONG PERFORMANCE IN CHINA Net Income Margins 9.6% 9.5% 9.8% Expect to Maintain Strong Margins Equity Income —$ Billions $2.1 $1.8 $1.5 2012 2013 2014 2015Target 2016 Target
Slide 9: Developing Markets Improving
DEVELOPING MARKETS IMPROVING GM International Operations* and GM South America Combined 2014 EBIT-Adjusted — $ Billions — ~ Breakeven $(0.0) $(0.3) $(0.3) $(0.4) Ql Q2 Q3 Q4 2015 Target * Excluding equity income, primarily China JV’s
Slide 10: GMF Driving Enterprise Returns
GMF DRIVING ENTERPRISE RETURNS EBT-Adjusted Ending Earning Assets $ Billions $ Billions 2010* 2014 Expected Incremental 2010* 2014 Expected Benefit, 2018 No additional capital ibutions, retained earnings support growth Earnings and assets to grow faster than equity capital base Double digit after-ta
Slide 11: 2014 Recalls: Strong Leadership
2014 RECALLS: STRONG LEADERSHIP U.S. Market Share Impact — After Major Recall ==Toyota (2009-2010)* ==GM (2014-2015)* ~~ Se an Percentage Point Impact ep (2) (3) (4) Recall +1 QTR Announced “Denotes Toyota +2 QTR +3 QTR +4. QTR Source: Internal company reports Key Principles/Actions “Do the right th
Slide 12: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Available Cash Operating cash flow Cash on balance sheet Investment Cre Balsnre Retain/Reinvest in Business Return to Shareholders Sheet Deliberate trade-off made on every dollar of available cash... share buyback at planned levels superior to alternative investment op
Slide 13: Capital Allocation Process
CAPITAL ALLOCATION PROCESS = Project prioritization Capital = Country ROIC targets Discipline = Product program EBIT and ROIC targets >20% Performance ROICTa rget ; vs. Aligned to Business Plan Commitments Executive Commitments Compensation = Individual program = Annual business review plan process
Slide 14: CapEx Supports Growth at > 20% ROIC
CAPEX SUPPORTS GROWTH AT > 20% ROIC 2010-2014 I 2015-2019 Launch cadence avg.~23% volume Launch cadence avg. ~36% volume CapEx ~4.5% of Revenue CapEx projected ~5%-5.5% of Revenue 47 20 21 I 1 1 I 1 I I 1ee27 1 I 13 : 1 ! 1 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 % of Global New/Refreshed
Slide 15: ROIC Driving Capital Discipline
ROIC DRIVING CAPITAL DISCIPLINE GM to disclose ROIC beginning with Q1 2015 earnings Target > 20% Strategic Actions = Exit Chevrolet Europe = Exit Australia manufacturing = Exit Indonesia manufacturing = Restructuring Thailand = Russia under serious review annual losses imi 2012 2013 2014 and avoidei
Slide 16: Tightening Cash Target to $20B
TIGHTENING CASH TARGET TO $20B ~$20B = EBITDA funds capital spending during average recession m Revolver backstop for unforeseen events / deep recession Dividends Working Capital $58 ual Anni Steady State Seasonality Sta N a 2. | Reverie Minimum Average Recession Operating Cash (2 years)
Slide 17: Compensation Aligned with Shareholders
COMPENSATION ALIGNED WITH SHAREHOLDERS 68% Long-Term 25% RSU 19% Short-Term Heese 13% Base Salary 100% Cash Metrics 0-200% Payout 3 Year ROIC Avg. (Target 20%) Global Market Share Modifier Time-Based 0-200% Payout Budgeted EBIT-Adj., AFCF-Adj., Market Share; Quality Strong Linkage to Shareholder Ret
Slide 18: Shareholder Opportunity
SHAREHOLDER OPPORTUNITY Disciplined capital allocation framework — Reinvest in business at 20+% ROIC — Investment grade balance sheet - Tighten cash target to $20B — Allavailable free cash flow to shareholders — Initial $5B share buyback a Strong and improving earnings = Transparent near-term commit
Slide 19: Select Supplemental Financial Information
GENERAL MOTORS COMPANY SELECT SUPPLEMENTAL FINANCIAL INFORMATION
Slide 20: Non-GAAP Measures
NON-GAAP MEASURES Management uses earnings before interest and taxes (EBIT)-adjusted and return on invested capital (ROIC) in its financial and operational decision making processes, for internal reporting and as part of its forecasting and budgeting processes as they provide additional transparency
Slide 21: Reconciliation of EBIT-Adjusted
RECONCILIATION OF EBIT-ADJUSTED (SB) 2012 = 2013 | 2014 Income (loss) before income taxes (28.7) 75 ip Add Back Interest Expense 05 03 0.4 Interest Income (0.3) (0.2)} (0.2) Net 0.1 0.0 (0.1) Gain/(Loss) on Extinguishment of Debt 0.3 0.2] (0.2) Special Items ‘Goodwill Impairment Charges’ 271 Impairm
Slide 22: Reconciliation of ROIC
RECONCILIATION OF ROIC Calculation of Return on Invested Capital Memo Total Company ] [Fetal company | ($B) 2012 2013 2014 2014* Numerator EBIT-Adjusted 79 86 65 93 Denominator Average equity 40.3 39.5 413 43.9 itomoti related i leases) 4.2 5.0 68 68 net pension liability 33.3 32.6 26.6 26.6 Average