General Motors Company · NYSE:GM
General Motors — Investor Presentation (May 2008)
100 slides from General Motors's investor presentation, May 13, 2008
Slide 1: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words "expect," "anticipate," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should" or simil
Slide 2: MCD_Bankers-Title
MCD_Bankers-Title © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 3: Today's Topics
Today's Topics: 1. The Economic and Industry Environment in the U.S. Remains Challenging 2. Strong Growth Continues Outside the U.S., Fueled by Emerging Markets © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 4: Current U.S. Industry Outlook
Current U.S. Industry Outlook Economy expected to rebound in H2, but pace of recovery likely to be sluggish Despite 26-year low consumer sentiment, economic activities outside of housing, auto, and banking have held up better than expected Threat of systematic credit crunch has dissipated with aggre
Slide 5: 2008 April CYTD U.S. Market Conditions
2008 April CYTD U.S. Market Conditions U.S. total industry down 8.3% Every major manufacturer down year-over-year, except Honda Industry shift from Trucks to Cars and Crossovers has accelerated GM continues to hold segment-leading share in Large Pickup and Utilities, but sales have been affected by
Slide 6: U.S. Sales and Share Summary: 2008 April CYTD
U.S. Sales and Share Summary: 2008 April CYTD Sales Industry sales down 8.3%; Honda only OEM with sales increase GM sales down 12.6%, partially due to American Axle strike - resulting in 25K lost fleet sales (a portion of which are recoverable) Source: GMIA (as of May 5, 2008) - Industry 100% Report
Slide 7: GM 2008 April CYTD Retail Performance in Cars and Crossovers
Compact Mid Mid Lux Mid Cars Cars Cars Crossovers Chevrolet Cobalt +15.0% Malibu +125% Impala (flat) Pontiac Vibe +23.2% G6 +3.5% G5 +7.4% Buick LaCrosse +0.3% Enclave (up exponentially) GMC Acadia +50.5% Saturn Aura +18.9% Outlook +7.4% Cadillac CTS +48.5% Strong GM 2008 April CYTD Retail Performan
Slide 8: Chevrolet Malibu Launch Update
G G G Chevrolet Malibu Launch Update Sales 52,137 retail sales since launch, higher than forecasted objective and 125% over 2007 Average days to turn is 35 Strong retail performance in key conquest markets Residual value at 47% (target = 49%) ATP $4,000 over previous model Advertising / Promotion Ma
Slide 9: Cadillac CTS Launch Update
G G G Cadillac CTS Launch Update Sales 62,504 retail sales since launch, significantly higher than forecasted Average days to turn is 23 Model Year 2008 to date CTS is the #1 selling Mid Lux Car (exceeding ES300, 5-Series and E-Class) Residual value at 48% Base/50% Up Level, target = 49% Advertising
Slide 10: GM U.S. Average Transaction Prices
GM U.S. Average Transaction Prices % Change '04 CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 CYTD vs. '08 CYTD GM Car $20,981 $21,771 $23,017 $22,112 $22,539 6.9% GM Truck $28,503 $27,732 $28,378 $29,963 $29,676 4.0% GM Total $25,838 $25,602 $26,441 $27,188 $26,851 3.8% Toyota Car $21,795 $22,968 $23,084
Slide 11: GM Dealer Inventories Are Lean
GM Dealer Inventories Are Lean Source: GM Global Market and Industry Analysis MCD_BANK06_DealerInvent © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 12: U.S. Industry Light Vehicle Mix Shifting to Cars and Crossovers
U.S. Industry Total Light Vehicle Mix Shifting to Cars and Crossovers from Trucks Source: GMIA Data through April month end as of 5-6-08 *Truck does not include Crossover Crossover Includes: Small/Compact MPV, Small SUV, Compact SUV Crossover, Mid SUV Crossover, Compact/Mid Luxury SUV Crossover MCD_
Slide 13: GM Light Vehicle Mix Shifting to Cars and Crossovers
U.S. GM Total Light Vehicle Mix Also Shifting to Cars and Crossovers from Trucks Source: GMIA Crossover Includes: Small/Compact MPV, Small SUV, Compact SUV Crossover, Mid SUV Crossover, Compact/Mid Luxury SUV Crossover MCD_BANK11b_US_TotalLightMix © 2008 General Motors Corporation. All Rights Reserv
Slide 14: Immediate Action Plans to Address Mix Shifts
Immediate Action Plans to Address Mix Shifts Implementing dramatic redesign of initial "Go To Market" plan Focus message on MPG, hybrid, competitive claims Re-express majority of media against key fuel economy messages Relentless delivery of message in digital space Intense focus and resourcing on r
Slide 15: U.S. Auto Industry Down Cycle Expected to Return to Trend
Although We Are in the Middle of a U.S. Auto Industry Down Cycle, It Is Expected that Sales Will Gradually Return to Trend Source: GM Global Market and Industry Analysis MCD_BANK15a_USdowncycle © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 16: Large Pickups Historically Lead the Industry In and Out of Cycles
Large Pickups Historically Lead the Industry In and Out of Cycles Large Pickups generally outpace the industry in both directions Last "perfect storm" in 1980-1981 Source: GM Global Market and Industry Analysis MCD_BANK16a_LargePickups Year-Over-Year Total Volume Change © 2008 General Motors Corpora
Slide 17: Pickups vs. Housing Starts
Pickups vs. Housing Starts - Similar to 1980-81 Cycle As Economy Recovers, Full-Size Pickup Sales Should Increase Source: GMIA, Census Bureau MCD_BANK17_PickupHousingStart © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 18: Continued U.S. Dollar Weakness, Higher Oil Prices
Continued U.S. $ Weakness, Corresponding to Higher Oil Prices Source: GM Global Market and Industry Analysis Since January 2007, increases in oil prices have correlated very closely with value of U.S. dollar This part of recent oil price increase should be viewed as cyclical and should improve as U.
Slide 19: U.S. Market Summary
U.S. Market Summary Still the most important market - and will remain so Currently below trend - however long-term fundamentals remain positive GM is positioning itself for healthy long-term growth - aggressively shifting portfolio toward cars and crossovers, and building strong brands through stron
Slide 20: Today's Topics
Today's Topics: 1. The Economic and Industry Environment in the U.S. Remains Challenging 2. Strong Growth Continues Outside the U.S., Fueled by Emerging Markets © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 21: Global Industry Sales and Revenue Have Grown Rapidly 2002-2007
Global Industry Sales and Revenue Have Grown Rapidly Between 2002 and 2007 - Led by Strong Growth in Emerging Markets Global vehicle sales have increased by over 13 million units since CY 2002 - to 70.6M units in 2007 (Annual Growth Rate of 3.7%) Industry sales in AP exceeded North America last year
Slide 22: Historical Emerging Markets Performance
Historical Emerging Markets Performance Industry Sales Units (000s) 2002 2007 % Growth * Includes Mexico, Thailand, Turkey, South Africa, etc. China 3,370 8,470 151% Russia 1,210 2,710 124% Brazil 1,450 2,460 70% India 890 1,990 124% Other* 6,380 11,290 77% Total Emerging 13,300 26,920 102% © 2008 G
Slide 23: GM Has Become More Diversified
Against this Global Back-Drop GM Has Become More Diversified... Sales mix in 1997 was 56% U.S. vs. 44% Non- U.S. by 2007 the split was 41% vs. 59% Mix shift has been supported by brisk global growth - Non-U.S. sales up 51% since CY 2002 Notable facts China (1.03M units '07CY) and Brazil (445K units
Slide 24: GM Global Sales 2001-2007 by Region
GM Global Sales 2001-2007 CY by Region MCD_BANK18a_GlobSalesReg Source: GM Global Market and Industry Analysis © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 25: 2007 Global Industry and GM Vehicle Sales Summary
NA 19,591,600 4,515,842 (3.0)% (6.1)% Europe 23,068,577 2,181,989 5.5% 8.9% LAAM 7,181,155 1,235,913 17.7% 19.4% AP 20,807,558 1,435,780 8.2% 15.1% Global 70,648,890 9,369,524 4.8% 3.0% 2007 Global Industry and GM Vehicle Sales Summary In 2007, GM Growth in Europe, LAAM and AP exceeded industry grow
Slide 26: Global Industry and GM Vehicle Sales Summary: Q1 2008
% Chg Q1'08 % Chg Q1'08 Industry O/(U) Q1'07 GM O/(U) Q1'07 Global Industry and GM Vehicle Sales Summary: Q1 2008 vs. Q1 2007 GM Q1 '08 Global Vehicle Sales down slightly due to weakness in NA market (partially affected by lost fleet sales due to Am Axle strike). However, GM Growth in the combined L
Slide 27: Global Economic and Industry Operating Conditions Still Positive
Global Economic and Industry Operating Conditions Still Positive Despite Conditions in the U.S. Global economy moderating as bottlenecks like the U.S. housing crisis and global energy/ commodity inflation weigh in Structurally, global economy is healthy and increasingly dynamic Global industry demon
Slide 28: Global Vehicle Sales Expected to Rise to 84.6M by 2012
Global Vehicle Sales Are Expected to Rise Sharply to 84.6M by 2012 Source: GM Global Market and Industry Analysis MCD_BANK05_GloVehSales © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 29: Economic and Industry Growth by Region 2007-2012
Economic and Industry Growth by Region - 2007-2012 Global GDP growth will average 3.3% and global vehicle sales will rise by 13.9 million units to 84.6 million - both led by AP Source: GM Global Market and Industry Analysis MCD_BANK11_EcoIndGrowth © 2008 General Motors Corporation. All Rights Reserv
Slide 30: Mature and Emerging Market Volumes
Mature and Emerging Market Volumes Emerging markets account for 81% of the growth between 2007 and 2012 Developed markets are U.S., Canada, W. Europe, Japan, Australia, South Korea, Hong Kong, Singapore and Taiwan Emerging markets include China, India, Indonesia, Malaysia, Thailand, Brazil, Mexico,
Slide 31: Longer-Term Industry Growth Expected in All Regions
Longer-Term Industry Growth Is Expected in all Regions - with Explosive Growth in AP Source: GM Global Market and Industry Analysis MCD_BANK07_03_IndSalesReg © 2008 General Motors Corporation. All Rights Reserved M. DiGiovanni
Slide 32: Summation
Summation Global economic expansion has slowed but remains steady Emerging markets continue to post records despite weakness in U.S. industry Rising oil prices a challenge to industry growth GM continues to focus on "getting the fundamentals correct," diversifying our footprint, and growing aggressi
Slide 33: RAL_Wash02
RAL_Wash02 © 2008 General Motors Corporation. All Rights Reserved F. Henderson
Slide 34: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words "expect," "anticipate," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should" or simil
Slide 35: FAH_BANK-Title
FAH_BANK-Title © 2008 General Motors Corporation. All Rights Reserved F. Henderson
Slide 36: Agenda
Agenda Key Priorities and GM Operating Strategies GM Product Strategies Other Key Issues Global Technology Leadership © 2008 General Motors Corporation. All Rights Reserved F. Henderson
Slide 37: Financial Accomplishments: 2005-2007
Financial Accomplishments: 2005- 2007 Grew aggressively and profitably in emerging markets $9B structural cost taken out Tackled tough risk factors UAW labor agreement largely eliminates health care inflation risk Continued reduction of GMNA capacity Improved adjusted earnings and cash flow Stage se
Slide 38: 2005-2007 Adjusted Financial Results
2005-2007 Adjusted Financial Results $ Billions 2005 2006 2007 GMNA (7.4) (1.6) (1.5) GME (0.5) 0.4 0.1 GMLAAM 0.2 0.6 1.3 GMAP 0.4 0.4 0.7 Total Auto Earnings Before Tax (7.3) (0.3) 0.6 GMAC Earnings Before Tax 4.2 2.2 (1.1) Corp. Other Earnings Before Tax (1.4) (1.2) (0.8) Total Earnings Before Ta
Slide 39: 2008 Key Priorities
2008 Key Priorities Continue to execute great products Build strong brands and distribution channels Execute additional cost reduction initiatives Emerging markets growth Advanced propulsion leadership Running the business globally © 2008 General Motors Corporation. All Rights Reserved F. Henderson
Slide 40: GM Operating Strategies
GM Operating Strategies Developed Markets Emerging Markets Perfect launches Leading quality Strong brands Product execution/quality Lower cost portfolio Strong brands & distribution Manage "bad" costs Capacity/supplier footprint changes Cost efficient capacity expansion Lower structural cost as % of
Slide 41: North America Turnaround
North America Turnaround GMNA financial results deteriorated in Q1 2008 due to significant weakness in the U.S. Industry and impact of the American Axle strike Strong acceptance of new product launches Key turnaround strategies remain unchanged Execute great products Leading design & quality is key
Slide 42: U.S. Market Challenges
U.S. Market Challenges Credit market environment continues to evolve, and banks continue to tighten lending standards High gasoline prices driving mix shift from trucks to cars Overall industry clearly under pressure GM revised outlook for 2008 U.S. total industry to mid-to-high 15 million units Q1
Slide 43: Strategies in Other Markets: Europe
Strategies in Other Markets Europe New assembly plant in Russia to support growth Fully leverage GMDAT to support growth of Chevrolet Continued focus on multi-brand strategy and quality of share Further progress on shifting manufacturing footprint to low-cost © 2008 General Motors Corporation. All R
Slide 44: Strategies in Other Markets: Latin America/Africa/Middle East
Strategies in Other Markets Latin America/Africa/Middle East Grow! New powertrain plant in Brazil to increase capacity of existing assembly plants Continue to fill portfolio gaps and optimize pricing Maximize capacity to cost efficiently support growth © 2008 General Motors Corporation. All Rights R
Slide 45: Strategies in Other Markets: Asia Pacific
Strategies in Other Markets Asia Pacific Rapidly grow in India and pursue growth in ASEAN markets; new powertrain plant there New powertrain plant in China Continue to grow in China via multi-brand strategy Improve material cost via increased localization Expand "lower cost" product portfolio Work w
Slide 46: Agenda
Agenda Key Priorities and GM Operating Strategies GM Product Strategies Other Key Issues Global Technology Leadership F. Henderson
Slide 47: Agenda
Agenda Key Priorities and GM Operating Strategies GM Product Strategies Other Key Issues Global Technology Leadership F. Henderson
Slide 48: GMAC - Q2 2008 Initiatives
GMAC - Q2 2008 Initiatives Refinancing existing GMAC and ResCap bank facilities and pursuing strategic alternatives to ensure liquidity GMAC negotiating 2-year $3.5B senior secured credit facility to ResCap, conditioned on successful completion of ResCap's current debt tender and exchange offer GM a
Slide 49: Delphi
Delphi Delphi unable to emerge under its Plan of Reorganization, as Plan Investors terminated their investment agreement on April 4 GM-Delphi Settlement Agreements and agreements with Delphi's labor unions remain in place but are not generally effective GM will agree to advance up to $650M to Delphi
Slide 50: American Axle Strike
American Axle Strike Through end of April, GMNA incurred production losses related to American Axle strike of approximately 230K units Q1 financial impact of approximately $0.8B EBT To date, strike has had minimal impact on GM's ability to meet customer demands GM will continue to proactively manage
Slide 51: Agenda
Agenda Key Priorities and GM Operating Strategies GM Product Strategies Other Key Issues Global Technology Leadership F. Henderson
Slide 52: Global Technology Leadership: Advanced Propulsion
Global Technology Leadership Advanced Propulsion FAH_BANK32-Propulsion F. Henderson
Slide 53: Why an Extended-Range Electric Vehicle?
Why an Extended-Range Electric Vehicle? Based on OmniStats Data posted by the U.S. Bureau of Transportation FAH_BANK37-ExtendedRange Typical One-Way Miles from Home to Work F. Henderson
Slide 54: Project Driveway
RAL_API21 Project Driveway Largest fuel cell vehicle market test 100+ vehicles in the hands of customers F. Henderson
Slide 55: y Chevy. Go from @as-friendly tojeasttrees
ae y Chevy. Go from @as-friendly tojeasttrees
Slide 56: Summary
Summary Stay focused on our key priorities, operating strategies, and business results Mitigate risks associated with GMAC/ ResCap, Delphi and American Axle Drive global technology leadership F. Henderson
Slide 57: RAL_Wash02
RAL_Wash02 F. Weber
Slide 58: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words "expect," "anticipate," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should" or simil
Slide 59: Plugging In from an Engineering Perspective
ee 5. “Pliaing In” from an #* ENGINEERING Perspective Frank Weber Global Vehicle Line Executive and Global Chief Engineer
Slide 60: E-Flex Mission
RFW_BANK02 E-Flex Mission Independence From Petroleum Energy Diversity Technology Leadership Electrification of the vehicle Great Product 40 Miles emission free driving with unmatched performance Shift Public Perception Radically F. Weber
Slide 61: New Propulsion Category: Extended Range Electric Vehicle
RFW_BANK03 Propulsion Category NEW Extended Range Electric Vehicle E-REV F. Weber
Slide 62: Overcoming
RFW_BANK04 Overcoming F. Weber
Slide 63: Typical Commute Miles Is the Key
RFW_BANK05 Typical Commute 40 Miles Is the Key F. Weber
Slide 64: Gasoline Tailpipe Emissions
RFW_BANK06 Gasoline tailpipe emissions F. Weber
Slide 65: Battery Electric Drive of Extended Range Driving
RFW_BANK07 Battery ELECTRIC DRIVE of EXTENDED RANGE driving F. Weber
Slide 66: How Does a Chevrolet Volt Compare?
Home Heating System Central Air Conditioning Refrigerator/Freezer Water Heater Clothes Dryer Lighting 3,524 kWh 2,796 kWh 2,610 kWh 2,552 kWh 2,520 KWh 1,079 kWh 940 kWh RFW_BANK20 How Does a Chevrolet Volt Compare? Annual Energy Usage - Electrical Appliances 2,520 KWh F. Weber
Slide 67: 2 Cents per Mile
i i oO; Ww f03; 2¢ per mile
Slide 68: Off-Peak Charging
RFW_BANK11 Off-Peak Charging F. Weber
Slide 69: Benefits
RFW_BANK12 Benefits F. Weber
Slide 70: Spirited Performance
RFW_BANK09 Spirited Performance 120 Kw of power 370 Nm of torque 161 km/h (100 mph) top speed Acceleration 0-60 in about 9 seconds 0-30 comparable to CTS F. Weber
Slide 71: Program Status
Program Status RFW_15a E-Flex has HIGHEST priority E-Flex is NOT a research project F. Weber
Slide 72: Managing Risk
Managing Risk Engineering, not invention Overall thermal systems management Managing costs for 1st generation technology Speed - simultaneous development of vehicle and technology to be 1st in 2010 Making lithium-ion technology production ready in a durable 16 kWh battery F. Weber
Slide 73: The Battery Challenge
RFW_BANK15 The Battery Challenge Lithium-Ion Battery Pack 16 kWh High energy High power Efficiently packaged Reasonable cost F. Weber
Slide 74: Leading a Transformation in the Industry
RFW_BANK18 Leading a Transformation in the Industry F. Weber
Slide 75: RFW_BANK19
RFW_BANK19 R. Young
Slide 76: Forward Looking Statements
Forward Looking Statements In this presentation and in related comments by our management, our use of the words "expect," "anticipate," "estimate," "goal," "target," "believe," "improve," "intend," "potential," "continue," "designed," "opportunity," "risk," "may," "would," "could," "should" or simil
Slide 77: Ray G. Young, Executive Vice President & CFO
a " — pi! Ray G. Young wit — } Executive Vice President & CFO =_-~* ™
Slide 78: Agenda
Agenda Q1 2008 Sales Highlights Q1 2008 Financial Highlights Downturn Planning Longer-term Outlook R. Young
Slide 79: Q1 2008 Sales Highlights
Q1 2008 Sales Highlights Global market share of 12.5%, down 0.5 p.p. vs. Q1 2007, driven by weak GMNA sales Record GM sales in 3 of 4 regions driven largely by emerging markets growth Record unit sales at LAAM and China Record first-quarter unit sales at GME Russia and India, up 78% and 58%, respect
Slide 80: Q1 Sales in U.S. and BRIC Markets
Q1 Sales in U.S. and BRIC Markets Industry Industry Growth GM Share GM Share Growth Outlook Q1 2008 Q1 2008 vs. Q1 2007 2007-2012 U.S. (8.8)% 22.1% (0.7) p.p. 8% Brazil 31% 20.9% 0.7 p.p. 17% Russia 37% 12.1% 2.8 p.p. 40% India 7% 3.1% 1.0 p.p. 86% China 17% 12.8% (1.2) p.p. 67% Total Emerging 17% 1
Slide 81: Agenda
Agenda Q1 2008 Sales Highlights Q1 2008 Financial Highlights Downturn Planning Longer-term Outlook R. Young
Slide 82: Q1 2008 Financial Highlights
Q1 2008 Financial Highlights GAAP net loss of $(3.3)B, $(5.74) EPS Adjusted automotive earnings before tax (EBT) of $0.4B, up $0.2B vs. Q1 2007 (excluding Allison results) GMLAAM EBT all-time quarterly record Strong results at GME and GMAP Adjusted net loss of $(350) million, $(0.62) EPS, excluding
Slide 83: First Quarter Adjusted Results
GMNA (0.3) (0.6) (0.3) GME 0.1 0.2 0.1 GMLAAM 0.3 0.5 0.3 GMAP 0.2 0.3 0.1 Total Automotive EBT 0.2 0.4 0.2 GMAC (0.1) (0.3) (0.1) Corporate Other (0.2) (0.2) (0.1) Total EBT (0.1) (0.1) (0.0) Taxes 0.0 (0.3) (0.3) Discontinued Ops. - Allison 0.1 --- (0.1) Total GM Net Income 0.1 (0.4) (0.4) EPS - B
Slide 84: First Quarter Special Items
First Quarter Special Items $ Billions EPS Adjusted Net Income (0.4) $(0.62) Pre-Tax Adjustments GMAC Impairment (1.5) Restructuring Related (0.3) Delphi (0.7) Tax-Related Adjustments DTA Valuation Allowance (0.4) Total Adjustments (2.9) GAAP Net Income (3.3) $(5.74) Exclusion of special Items usefu
Slide 85: GMNA First Quarter Adjusted Results
Revenue 28,057 24,543 (3,514) EBT (269) (611) (342) North America: Production Volume (000) 1,063 885 (178) Market Share 22.5% 21.7% (0.8) p.p. United States: Industry SAAR (Mil.) 16.9 15.6 (1.3) Market Share 22.8% 22.1% (0.7) p.p. Dealer Inventory (000) 1,079 875 204 2008 Fav/(Unfav) $ Billions 2007
Slide 86: GMNA Adjusted EBT - 2008 vs. 2007
GMNA Adjusted EBT - 2008 vs. 2007 $ Billions - Continuing Operations Only Q1 2007 Earnings Before Tax $(0.3) Volume (1.1) Mix (0.1) Price (0.5) Net Material 0.1 Pension/OPEB/Manufacturing 0.5 Hedging/Exchange 0.8 2008 Earnings Before Tax $(0.6) Refer to Supplemental Charts in our earnings presentati
Slide 87: Overview of Other Regions
Overview of Other Regions $1B of adjusted automotive EBT generated in other regions GM automotive revenue up +20% outside North America on unit sales records in all overseas regions 48% of global auto revenue generated in GME / GMLAAM / GMAP R. Young
Slide 88: GME First Quarter Adjusted Results
GME First Quarter Adjusted Results $ Millions Q1 2007 Q1 2008 Fav/(Unfav) GME revenue up 17% and adjusted EBT up $137 million Continued material performance and warranty improvements Commodity one-time hedging gains offset by unfavorable FX Competitive pricing pressure, especially in Germany Revenue
Slide 89: GMLAAM First Quarter Adjusted Results
GMLAAM First Quarter Adjusted Results $ Millions Q1 2007 Q1 2008 Fav/(Unfav) Revenue 3,577 4,763 1,186 Share 16.7% 17.9% 1.2 p.p. EBT 254 517 263 GMLAAM revenue up by 33% and EBT doubled on continued strong industry growth and GM share gains Strong growth and all-time record profit driven by share g
Slide 90: GMAP First Quarter Adjusted Results
GMAP First Quarter Adjusted Results $ Millions Q1 2007 Q1 2008 Fav/(Unfav) Revenue 4,568 5,477 909 Share 7.2% 7.0% (0.2) p.p. EBT 192 286 94 GMAP revenue and EBT up strongly due to volume growth Record revenues in the region Improved results on increased profits in most countries, including China, T
Slide 91: GMAC First Quarter Results
GMAC First Quarter Results O/(U) $ Millions Q1 2008 Q1 2007 Global Automotive Finance 258 (140) Insurance 132 (11) Other (120) (184) Net Insurance Ex. Res. Mortgage 270 (335) Residential Mortgage (859) 51 Net Income/(Loss) (589) (284) Memo: GM Share (EBT Basis) (276) (142) Refer to Supplemental Char
Slide 92: Cash Flow/Liquidity
Cash Flow/Liquidity Q1 2008 adjusted automotive OCF of $(3.6)B $(2.1)B estimated American Axle strike impact, of which $(1.3)B related to managed working capital and accrued expenses Remaining attributed to lower volume due to weakness in U.S. industry conditions Liquidity position of $23.9B and net
Slide 93: Agenda
Agenda Q1 2008 Sales Highlights Q1 2008 Financial Highlights Downturn Planning Longer-term Outlook R. Young
Slide 94: U.S. Industry Assessment
U.S. Industry Assessment Higher fuel prices Lower consumer sentiment Weaker credit market Lower U.S. Industry Outlook and Tougher Mix R. Young
Slide 95: Managing Liquidity in a U.S. Industry Downturn
Managing Liquidity in a U.S. Industry Downturn Ahead of a possible downturn, should target liquidity of at least $18-20B and access to $4-5B of credit lines Currently in a downturn, with Q1-end liquidity of about $24B and access to approximately $7B of undrawn U.S. committed credit facilities Confid
Slide 96: Agenda
Agenda Q1 2008 Sales Highlights Q1 2008 Financial Highlights Downturn Planning Longer-term Outlook R. Young
Slide 97: Hourly People Cost Reduction
Hourly People Cost Reduction RGY_Bank21_U.S.HoursPeopleCost Another ~ $5B Improvement by 2011 U.S. Hourly People Cost (including Legacy) R. Young
Slide 98: Mid-term Outlook - 2010/11 Opportunities and Risks
Opportunities Full impact of labor contract $4B-$5B Delphi-related cost reduction ~$0.5B U.S. industry returns to trend ~$1-1.5B Pricing for stronger brands Material cost reductions Improved GMAC performance Further emerging markets growth Mid-term Outlook - 2010/11 Downside Risks U.S. industry mix
Slide 99: Summary
Summary More challenging 2008 U.S. environment Must view this as an opportunity Growing aggressively in overseas and emerging markets Addressing special issues is key priority Set stage for mid-term earnings improvement R. Young
Slide 100: RAL_Wash02
RAL_Wash02