Preliminary 2007 Fourth Quarter and CY Results
Forward Looking Statements
In this presentation and in related comments by our management, our use of the words “expect,” ...
Fourth Quarter & Calendar Year Highlights
Fourth Quarter
• GAAP net loss of $(0.7)B, $(1.28) EPS
• Adjusted net income of ...
Calendar Year 2007 Adjusted Results
                                                                                      ...
Fourth Quarter Adjusted Results
                                                                                          ...
Fourth Quarter Taxes
• In Q3 2007 GM established valuation allowance for deferred tax assets
  in the U.S., Germany and Ca...
Adjustments to Income
     ($ Millions)                                       Q4         CY
      Adjusted Net Income (Los...
Fourth Quarter Allison-related Special Item
• As a result of the intra-period tax allocation, tax expense on the
  Allison...
Fourth Quarter Delphi-related Special Items
• GM recorded Q4 charge of $622 million as result of amendments to
  the GM-De...
Delphi Update
• Bankruptcy Court approved Delphi’s Disclosure Statement in December
   – Included amendments to the GM-Del...
Fourth Quarter Other Items
• $0.3B of restructuring special items, largely related to GME
   – Approximately $0.2B related...
GMNA Fourth Quarter Adjusted Results
                                                                                     ...
GMNA Vehicle Revenue Per Unit

   $23,000
                                  Calendar Year                                 ...
GMNA Adjusted EBT – Q4 2007 vs. Q4 2006

  $ Billions – Continuing Operations Only                           Q4           ...
GMNA Adjusted EBT – CY 2007 vs. CY 2006
                                                                                  ...
Overview of Other Regions
• GM automotive revenue up 23% in regions outside of North America in Q4
   – 40% of revenue and...
GME Fourth Quarter Adjusted Results
                                                  2007 F/(U)
($ Millions)             ...
GME Adjusted EBT – 2007 vs. 2006

$ Billions                                Q4      CY
2006 Earnings Before Tax           ...
GMLAAM Fourth Quarter Adjusted Results
                                                 2007 F/(U)
($ Millions)           ...
GMAP Fourth Quarter Adjusted Results
                                                         2007 F/(U)
($ Millions)     ...
GM China Results
• China industry continues to show explosive growth, with volume up
  20% in CY 2007 vs. CY 2006

• GM, w...
GMAC CY & Fourth Quarter Overview
Fourth Quarter
• GMAC reported $(0.7)B net loss due to continued ResCap losses
   – ResC...
GMAC Fourth Quarter Business Line Results

                                                                               ...
GMAC Calendar Year Business Line Results

                                                                                ...
GMAC Summary & Outlook
• Losses in Q4 2007 smaller than those in Q3 2007, showing that
  actions undertaken in 2007 are st...
GM Automotive Liquidity Position

• Strong gross automotive liquidity position of $27.3B at
  year-end 2007
   – Includes ...
Automotive Gross / Net Liquidity
                                                                                         ...
Fourth Quarter Key Cash Flow Drivers
• Q4 2007 adjusted automotive OCF of $(1.3)B primarily
  driven by negative EBT, trad...
Automotive Cash Flow Summary
                  ($ Billions)                                                 2006          ...
Accrued Expenses and Pension/OPEB
• Accrued Expenses and Other reflects timing of cash flows vs. accruals
                ...
U.S. Pension Expense
                                                  2006         2007        2008
($ Billions)         ...
U.S. Health Care Spending & OPEB Expense
($ Billions)                                                           2006      ...
GM-UAW Healthcare Settlement Update
• Negotiations with the UAW and Class Counsel
  progressing well
  – Expect to complet...
$4 Billion Short Term Note
• In Q4 2007 GM withdrew $2.7B from its VEBA,
  representing residual salaried and hourly 2006 ...
Restructuring $4.4B UAW Convertible
• UAW and Class Counsel approached GM for adjustment to terms of
  convertible note
• ...
2007 Recap – Total Automotive Metrics vs. 2006
                    Jan 2007            CY 2007
                    Outlook...
2008 GM Automotive Overview
• Continued global revenue growth

• Continued improvement in material cost and structural
  c...
Total Automotive Outlook – 2008 vs. 2007

Global Automotive     Increase
                                   Revenue growth...
Special Attrition Program – Phase II
• In Dec 2007, GM and the UAW reached agreement on Phase I of a
  new special attriti...
Mid-term Outlook – 2010/11

         Opportunities                       Downside Risks
• Full impact of labor contract   ...
Summary
• 2007 results improved, but near-term challenges remain
  – CY adjusted automotive earnings before tax improved b...
Supplemental Charts



   The following supplemental charts are provided to reconcile
adjusted financial data comprehended...
Reconciliation to Adjusted Net Income / EPS Q4 – 2007
                                                                    ...
Reconciliation to Adjusted Net Income / EPS Q4 – 2006

                                                                   ...
Reconciliation to Adjusted Net Income / EPS CY – 2007

                                                                   ...
Reconciliation to Adjusted Net Income / EPS CY – 2006
                                                                    ...
Reconciliation of GMNA Revenue Per Unit
                                                Fourth Quarter

                  ...
Reconciliation of GMNA Revenue Per Unit
                                              Calendar Year
                      ...
Reconciliation of Automotive Cash Flow
                                   Fourth Quarter & Calendar Year


General Motors ...
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Earning Presentation of General Motors: Q4 2007

  1. 1. Preliminary 2007 Fourth Quarter and CY Results
  2. 2. 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 the negative of any of those words or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Such factors include, among others, the following: our ability to realize production efficiencies, to achieve reductions in costs as a result of the turnaround restructuring and health care cost reductions and to implement capital expenditures at levels and times planned by management; market acceptance of our products; significant changes in the competitive environment and the effect of competition in our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; shortages of and price increases for fuel; adoption of new laws or changes in existing laws that may affect the production, licensing, distribution, cost or sale of our products; the final results of investigations and inquiries by the SEC and other governmental agencies; changes in GMAC’s ability to make distributions on the Preferred Membership Interests we hold; completion of the final settlement with the UAW and UAW retirees, including obtaining court approval in a form acceptable to us, the UAW, and class counsel; treatment of the terms of the 2006 Settlement Agreement pursuant to the Retiree MOU in a form acceptable to us, the UAW and class counsel; our completion of discussions with the staff of the SEC regarding accounting treatment with respect to the New VEBA and the Post-Retirement Medical Benefits for the Covered Group as set forth in the Retiree MOU, on a basis reasonably satisfactory to us; and as applicable, a determination by us that the New VEBA satisfies the requirements of section 302(c)(5) of the Labor-Management Relations Act of 1947, as amended (LMRA), as well as bank and other regulatory approval; and changes in economic conditions, commodity prices, currency exchange rates or political stability in the markets in which we operate. In addition, GMAC’s actual results may differ materially due to numerous important factors that are described in GMAC’s most recent report on SEC Form 10-K, which may be revised or supplemented in subsequent reports on SEC Forms 10-K, 10-Q, and 8-K. The factors identified by GMAC include, among others, the following: possible downgrades for GMAC or ResCap by rating agencies; inability to maintain adequate financing sources for its substantial capital needs; credit exposure to us and recent developments in the residential mortgage market, especially in the nonprime sector. The most recent reports on SEC Forms 10-K, 10-Q or 8-K filed by us or GMAC provide information about these and other factors, which may be revised or supplemented in future reports to the SEC on those forms. 1
  3. 3. Fourth Quarter & Calendar Year Highlights Fourth Quarter • GAAP net loss of $(0.7)B, $(1.28) EPS • Adjusted net income of $46 million, $0.08 EPS, excluding special items including significant unfavorable items related to Delphi • Adjusted automotive earnings before tax (EBT) down $0.8B • Total automotive revenue of $46.7B, an all-time record • Adjusted automotive operating cash flow (OCF) of $(1.3)B Calendar Year • GAAP net loss of $(38.7)B, $(68.45) EPS due principally to Q3 charge of $(38.3)B for valuation allowance taken against deferred tax assets • Adjusted net loss of $(23) million, or $(0.04) EPS • Adjusted automotive EBT improved $0.9B on strength of GMLAAM and GMAP • Global market share of 13.3%, down 0.2 p.p. vs. CY 2006 – Share outside North America of 9.5%, up 0.4 p.p. vs. CY 2006 • Adjusted automotive OCF of $(2.4)B, improved $2.0B vs. CY 2006 • Year-end gross automotive liquidity of $27.3B 2
  4. 4. Calendar Year 2007 Adjusted Results 2007 F/(U) ($ Millions) 2005 2006 2007 2006 GMNA $ (7,431) $ (1,626) $ (1,535) $ 91 GME (460) 357 55 (302) GMLAAM 197 561 1,348 787 GMAP 438 403 744 341 Auto Eliminations (51) (34) (59) (25) Total Auto Earnings Before Tax (7,307) (339) 553 892 GMAC Earnings Before Tax 4,189 2,208 (1,147) (3,355) Corp. Other Earnings Before tax (1,392) (1,241) (776) 465 Total Earnings Before Tax/(Loss) (4,510) 628 (1,370) (1,998) Taxes 992 1,103 1,091 (12) Total Net Income/(Loss) from Cont. Ops. (3,518) 1,731 (279) (2,010) Discontinued Ops. - Allison Transmission 313 445 256 (189) Total GM Net Income/(Loss) (3,205) 2,176 (23) (2,199) EPS from Cont. Ops $ (6.22) $ 3.06 $ (0.49) $ (3.55) EPS from Disc. Ops 0.55 0.79 0.45 $ (0.34) Total EPS (Basic) $ (5.67) $ 3.85 $ (0.04) $ (3.89) Total EPS (Diluted) $ (5.67) $ 3.84 $ (0.04) $ (3.88) Worldwide Production (000's) 9,051 9,181 9,286 105 Global Market Share 14.1% 13.5% 13.3% (0.2) p.p. Refer to Supplemental Charts for reconciliation to GAAP figures 3
  5. 5. Fourth Quarter Adjusted Results 2007 F/(U) ($ Millions) 2006 2007 2006 GMNA $ (129) $ (1,060) $ (931) GME (12) (215) (203) GMLAAM 76 424 348 GMAP 105 72 (33) Auto Eliminations (32) (24) 8 Total Auto Earnings Before Tax 8 (803) (811) GMAC Earnings Before Tax (508) (394) 114 Corp. Other Earnings Before tax (146) (383) (237) Total Earnings Before Tax/(Loss) (646) (1,580) (934) Taxes 731 1,626 895 Total Net Income/(Loss) from Cont. Ops. 85 46 (39) Discontinued Ops. - Allison Transmission 95 - (95) Total GM Net Income/(Loss) 180 46 (134) EPS from Cont. Ops $ 0.15 $ 0.08 $ (0.07) EPS from Disc. Ops 0.17 - $ (0.17) Total EPS (Basic) $ 0.32 $ 0.08 $ (0.24) Total EPS (Diluted) $ 0.32 $ 0.08 $ (0.24) Worldwide Production (000's) 2,274 2,380 106 Global Market Share 13.3% 13.1% (0.2) p.p. Refer to Supplemental Charts for reconciliation to GAAP figures 4
  6. 6. Fourth Quarter Taxes • In Q3 2007 GM established valuation allowance for deferred tax assets in the U.S., Germany and Canada • In Q4 2007 GM re-measured pension and OPEB liabilities, resulting in pension and OPEB related gains in Other Comprehensive Income (OCI) – Gain in OCI generated tax related liability on balance sheet • SFAS 109 sets forth guidelines for intra-period tax allocation, and requires that tax expense on discontinued operations and OCI be reduced to the level of tax benefit in continuing operations • Since GM had a significant current year net operating loss and had tax expense on OCI and discontinued operations, tax benefit is recognized even when a valuation reserve is established • As a result, GM recorded tax benefit of $1.6B in continuing operations 5
  7. 7. Adjustments to Income ($ Millions) Q4 CY Adjusted Net Income (Loss) 46 (23) Pre-Tax Adjustments Delphi reserve (622) (1,547) Delphi employee pension benefits (552) (552) Restructuring related (290) (918) Pension prior service - (1,561) Impairments / Other (126) (187) Tax-related Adjustments DTA valuation allowance - (38,300) Tax on regional special items 17 47 Discontinued Ops - Allison gain on sale 805 4,309 Total Adjustments (768) (38,709) GAAP Net Loss (722) (38,732) Exclusion of special items useful for: • Management to measure operations • Comparisons between reporting periods • Investors to measure and assess company’s core performance 6
  8. 8. Fourth Quarter Allison-related Special Item • As a result of the intra-period tax allocation, tax expense on the Allison discontinued operations was reduced by $0.8B • Change in tax expense allocation to discontinued operations results in final net after-tax gain on sale of Allison of $4.3B – Final tax on transaction of $1.0B vs. $1.8B previously calculated • Additional pre-tax special item of $(25) million related to Allison gain on sale due largely to purchase price adjustment related to post- closing working capital adjustments 7
  9. 9. Fourth Quarter Delphi-related Special Items • GM recorded Q4 charge of $622 million as result of amendments to the GM-Delphi Settlement Agreements, support of Delphi’s sale businesses, updated estimates of Delphi retiree healthcare costs and possible support based on ongoing discussions with Delphi – Total of approximately $7.5B in Delphi-related charges taken to date • Estimate for combined annual labor-related and transitional payments revised downward $100 million, to between $300-400 million thru 2015 – To be recognized in the future as incurred • Additional Q4 charge of $552 million taken to reflect GM agreement to pay pension benefit increases granted in 2007 GM-UAW labor contract to Delphi employees and retirees/surviving spouses – Non-cash in nature since GM pension plan to absorb payment obligations – Expensed upfront instead of amortized since payments to be made to individuals not part of the GM pension plan 8
  10. 10. Delphi Update • Bankruptcy Court approved Delphi’s Disclosure Statement in December – Included amendments to the GM-Delphi Settlement Agreements, whereby GM agreed to accept a reduction in preferred stock recovery from $1.2 billion to $1.0 billion at Plan of Reorganization Value • Bankruptcy Court confirmed Delphi’s Plan of Reorganization in January • Delphi currently seeking exit financing to support Plan consummation – Market conditions causing difficulty in obtaining planned financing levels – GM is exploring alternatives with Delphi in the event that the planned financing level is not achieved 9
  11. 11. Fourth Quarter Other Items • $0.3B of restructuring special items, largely related to GME – Approximately $0.2B related to separation programs implemented in Belgium, Germany and Sweden – Balance of approximately $0.1B in GMNA largely related to adjustments to plant closing reserve • $0.1B or impairment/other special items primarily related to vehicle-specific asset impairments in GMNA • Corporate Other deteriorated by about $0.2B vs. Q4 2006 – Approximately $(0.1)B related to higher central office expense – Approximately $(0.1)B related to increased legacy expense related to additional Delphi flowbacks and continued health care inflation 10
  12. 12. GMNA Fourth Quarter Adjusted Results 2007 F/(U) ($ Millions) 2006 2007 2006 Revenue $28,516 $28,121 ($395) Earnings Before Tax/(Loss) (129) (1,060) (931) Earning Before Tax Margin (0.5)% (3.8)% (3.3) p.p. North America: - Production Volume (000) 1,107 1,042 (65) - Market Share 23.2% 22.7% (0.5) p.p. United States: - Industry SAAR (Mil.) 16.9 16.5 (0.4) - Market Share 23.6% 23.1% (0.5) p.p. - Retail/Fleet Mix - % Fleet 25.8% 23.9% 1.9 p.p. - Dealer Inventory (000) 1,055 908 147 Excludes results from Allison Transmission, now recorded as Discontinued Operations 11
  13. 13. GMNA Vehicle Revenue Per Unit $23,000 Calendar Year Fourth Quarter 21,915 $22,000 21,487 Net Revenue Gross Revenue less $21,000 Sales Incentives 20,779 20,204 $20,000 20,189 19,417 19,759 Memo: 19,425 19,500 Q3 ’07 $21,605 $19,000 19,160 Q2 ‘07 $21,375 Q1 ’07 $21,072 $18,000 CY '03 CY '04 CY '05 CY '06 CY '07 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Vehicle revenue per unit excludes items such as daily rental accounting impact, Service Parts, OnStar, other outside sales Adjusted to remove Allison. Refer to Supplemental Charts for reconciliation to GAAP figures 12
  14. 14. GMNA Adjusted EBT – Q4 2007 vs. Q4 2006 $ Billions – Continuing Operations Only Q4 (0.3) ~40k unit dealer stock reduction 2006 Earnings Before Tax $(0.1) (0.2) ~30k unit daily rent decline Volume (0.5) (0.1) ~20k unit lower U.S. industry Mix 0.3 Larger stock adjust for Price (0.4) higher full-size PU inventory vs. Q4 2006 Material / Other Contribution Cost (0.1) 0.3 Mfg performance Policy & Warranty / Campaigns 0.0 (0.2) Pension increase due to labor contract Pension / OPEB / Manufacturing 0.0 (0.1) Foreign exchange Engineering / Exchange / Other (0.3) (0.3) Commodity hedging 2007 Earnings Before Tax $(1.1) (0.2) Engineering 0.2 Other Excludes results from Allison Transmission, now recorded as Discontinued Operations 13
  15. 15. GMNA Adjusted EBT – CY 2007 vs. CY 2006 (1.0) ~160k unit dealer $ Billions – Continuing Operations Only CY stock reduction (0.7) ~108k unit daily 2006 Earnings Before Tax $(1.6) rent decline (0.5) ~80k unit lower U.S. industry Volume (2.7) (0.5) GM share decline Mix 2.0 1.5 Model & option mix 0.4 Product mix Price 0.4 Material performance Material / Other Contribution Cost (0.6) more than offset by (1.0) Steel & non-ferrous Policy & Warranty / Campaigns (0.5) 1.8 Pension/OPEB Pension / OPEB / Manufacturing 2.8 1.0 Mfg productivity & attrition Engineering / Exchange / Other (1.3) (0.6) Engineering (0.5) Commodity hedging 2007 Earnings Before Tax $(1.5) (0.3) Foreign exchange Excludes results from Allison Transmission, now recorded as Discontinued Operations 14
  16. 16. Overview of Other Regions • GM automotive revenue up 23% in regions outside of North America in Q4 – 40% of revenue and 54% of unit sales generated outside GMNA; 61% of unit sales generated outside the U.S. • GM market share gains continue outside GMNA, up 0.3 p.p. and 0.4. p.p. for Q4 and CY, respectively • GME volume and share both up in Q4, despite weakness in Germany which led to financial losses – GM was the fastest growing manufacturer in Europe in 2007 – Q4 volume and share in Russia up 89% and 2.6 p.p., respectively – Robust Chevrolet growth due to continued strong imports from GMDAT (significant GMDAT operating profit attributable to sales in Europe) • GMLAAM revenue up over 50% and earnings before tax up over five-fold vs. Q4 2006, on continued strong industry growth and pricing environment • GMAP continues to deliver strong volume and share growth, but with moderating financial results in Q4 due largely to cost increases to support continued strong product development – GM volume and share in China up 22% and 0.6 p.p., respectively 15
  17. 17. GME Fourth Quarter Adjusted Results 2007 F/(U) ($ Millions) 2006 2007 2006 Revenue $8,998 $10,692 $1,694 Earnings Before Tax/(Loss) (12) (215) (203) Earning Before Tax Margin (0.1)% (2.0)% (1.9) p.p. Total Europe: - Production Volume (000) 443 457 14 - Industry SAAR (Mil.) 22.4 24.1 1.7 - Market Share 9.1% 9.3% 0.2 p.p. Germany: - Industry SAAR (Mil.) 4.1 3.6 (0.5) - Market Share 10.1% 9.4% (0.7) p.p. UK: - Industry SAAR (Mil.) 2.7 2.8 0.1 - Market Share 14.4% 15.4% 1.0 p.p. Russia: - Industry SAAR (Mil.) 2.2 3.1 0.9 - Market Share 7.5% 10.1% 2.6 p.p. 16
  18. 18. GME Adjusted EBT – 2007 vs. 2006 $ Billions Q4 CY 2006 Earnings Before Tax $(0.0) $0.4 German Market Impact (0.3) (0.6) Foreign Exchange (0.1) (0.1) Volume / Mix / Price (ex. Germany) 0.1 0.4 Material / Structural Cost 0.2 0.2 Other (0.1) (0.2) 2007 Earnings Before Tax $(0.2) $0.1 17
  19. 19. GMLAAM Fourth Quarter Adjusted Results 2007 F/(U) ($ Millions) 2006 2007 2006 Revenue $3,975 $6,040 $2,065 Earnings Before Tax/(Loss) 76 424 348 Earning Before Tax Margin 1.9% 7.0% 5.1 p.p. Total LAAM: - Production Volume (000) 215 253 38 - Industry SAAR (Mil.) 6.2 7.4 1.2 - Market Share 17.9% 17.6% (0.3) p.p. Brazil: - Industry SAAR (Mil.) 2.1 2.7 0.6 - Market Share 21.0% 19.9% (1.1) p.p. Argentina: - Industry SAAR (Mil.) 0.45 0.6 0.15 - Market Share 17.3% 15.3% (2.0) p.p. ANDEAN Markets - Industry SAAR (Mil.) 0.9 1.1 0.2 - Market Share 29.8% 30.4% 0.6 p.p. 18
  20. 20. GMAP Fourth Quarter Adjusted Results 2007 F/(U) ($ Millions) 2006 2007 2006 Revenue $4,502 $5,534 $1,032 Pre-Tax Income/(Loss) 71 13 (58) China JVs Equity Income 86 90 4 Minority Interest (52) (31) 21 Earnings Before Tax/(Loss) 105 72 (33) Earnings Before Tax Margin 2.3% 1.3% (1.0) p.p. Total Asia Pacific: - Industry SAAR (Mil.) 20.2 21.7 1.5 - Market Share 6.6% 7.1% 0.5 p.p. China: - Industry SAAR (Mil.) 8.1 9.2 1.1 - Market Share 11.4% 12.0% 0.6 p.p. Australia: - Industry SAAR (Mil.) 0.9 1.1 0.2 - Market Share 15.6% 13.0% (2.6) p.p. GM-DAT: - Production (Complete Build Units) 201 250 49 19
  21. 21. GM China Results • China industry continues to show explosive growth, with volume up 20% in CY 2007 vs. CY 2006 • GM, with its joint venture partners, became first manufacturer to sell over 1 million units in China in 2007 – GM volume up 18% in CY 2007, and up 22% in Q4 2007 (ahead of industry growth in Q4 of 16%) • GM realized $425 million of equity income in GMAP in 2007, principally driven by its China joint ventures • GM will continue to work aggressively to keep pace with industry – Focus on leveraging multiple brands and mid-cycle product updates; five new/updated products to launch across four brands in 2008 • Capital spending at GM’s China JVs expected to total approximately $1B/year thru 2010 in support of continued strong product and technology development 20
  22. 22. GMAC CY & Fourth Quarter Overview Fourth Quarter • GMAC reported $(0.7)B net loss due to continued ResCap losses – ResCap net loss of $(0.9)B driven by asset write downs/impairments, restructuring costs and weaker consumer – Global Auto Finance remained profitable, but reported lower results due to lower gain on sale of receivables in North America and write downs – Insurance results down predominantly due to lower capital gains, as significant one-time gains were realized in the prior period • Earnings before tax as realized by GM was loss of $(0.4)B Calendar Year • GMAC reported $(2.3)B net loss due entirely to ResCap loss of $(4.3)B – Global Automotive Finance up over $0.2B or almost 20% vs. CY 2006 • Earnings before tax as realized by GM was loss of $(1.1)B • GMAC ended 2007 with liquidity of $22.7B 21
  23. 23. GMAC Fourth Quarter Business Line Results 2007 F/(U) ($ Millions) 2006 2007 2006 Global Automotive Finance $ 593 $ 137 $ (456) Insurance 735 68 (667) Other* (184) (8) 176 Sub-Total Net Income/(Loss) $ 1,144 $ 197 $ (947) ResCap (128) (921) (793) Total Net Income/(Loss) $ 1,016 $ (724) $ (1,740) Memo: LLC conversion impact $ 791 $ - $ (791) Capital gains 570 - (570) Restructuring charges - (131) (131) * Includes GMAC Commercial Finance and equity interest in Capmark 22
  24. 24. GMAC Calendar Year Business Line Results 2007 F/(U) ($ Millions) 2006 2007 2006 Global Automotive Finance $ 1,243 $ 1,485 $ 242 Insurance 1,127 459 (668) Other* (950) 70 1,020 Sub-Total Net Income/(Loss) $ 1,420 $ 2,014 $ 594 ResCap 705 (4,346) (5,051) Total Net Income/(Loss) $ 2,125 $ (2,332) $ (4,457) Memo: LLC conversion impact $ 791 $ - $ (791) Goodwill impairments (695) (455) 240 Capital gains 570 - (570) Restructuring charges - (131) (131) * Includes GMAC Commercial Finance and equity interest in Capmark 23
  25. 25. GMAC Summary & Outlook • Losses in Q4 2007 smaller than those in Q3 2007, showing that actions undertaken in 2007 are starting to produce results – Restructured ResCap – Tightened lending standards – Reduced balance sheet – Accelerated Auto Finance “originate to distribute” model – Took appropriate impairments and reserves – Holding cash at high levels • GMAC and ResCap are refocusing on core strengths – Maintaining scalable platforms to capitalize on larger share of retail and commercial auto finance and utilize exclusive relationship with GM • GMAC is forecasting to return to profitability in 2008 • GMAC liquidity is at relatively high historical levels and GM believes that GMAC remains adequately capitalized 24
  26. 26. GM Automotive Liquidity Position • Strong gross automotive liquidity position of $27.3B at year-end 2007 – Includes $0.6B of readily-available VEBA assets (i.e. short-term VEBA) – Represents increase of $0.9B from year-end 2006 • Reflects proceeds from sale of Allison Transmission, partially offset by negative adjusted automotive OCF and other non-operating flows • Net automotive liquidity of $(12.1)B at year-end 2007, in-line with year-end 2006 25
  27. 27. Automotive Gross / Net Liquidity 30.0 30.0 27.3 26.4 27.2 25.0 22.9 21.6 24.7 20.0 20.4 20.4 15.0 $ Billions 1 10.0 Net Liquidity Gross Cash (incl. ST VEBA) 5.0 (13.8) (12.3) (11.4) (14.2) (12.3) (13.3) (12.1) (9.9) (12.1) 0.0 (5.0) (10.0) (15.0) Q Q Q Q Q Q Q Q Q 4 1 2 3 4 1 2 3 4' 07 '0 '0 '0 '0 '0 '0 '0 '0 5 6 6 6 6 7 7 7 1 Q4 2005 - Q3 2006 Net Liquidity figures exclude GMAC related debt 26
  28. 28. Fourth Quarter Key Cash Flow Drivers • Q4 2007 adjusted automotive OCF of $(1.3)B primarily driven by negative EBT, traditionally higher capital expenditures, and ongoing legacy payments – Partially offset by seasonally favorable working capital performance • CY 2007 adjusted automotive OCF of $(2.4)B, an improvement of $2.0B vs. CY 2006 – Second consecutive year-over-year improvement in OCF at all four GM regions – Year-over-year performance driven primarily by lower sales allowance and net rental car payments 27
  29. 29. Automotive Cash Flow Summary ($ Billions) 2006 2007 Operating Related Q4 CY Q4 CY Earnings Before Tax (Automotive & Corp/Other) * 0.3 (7.3) (2.9) (5.5) Depreciation & Amortization 2.1 8.1 2.2 8.3 Capital Expenditures (2.4) (7.5) (2.6) (7.5) Change in Receivables, Payables & Inventory 0.2 (0.8) 0.4 (0.5) Pension/OPEB Expense (Net of Payments) (1.1) 3.4 (0.3) (0.5) DC VEBA - (1.0) - (1.0) Accrued Expenses & Other 1.2 0.7 1.9 4.3 Adjusted Operating Cash Flow 0.3 (4.4) (1.3) (2.4) Allison Operating Cash Flow - Discontinued Operations 0.1 0.6 - 0.2 Proceeds from Sale of Allison - - - 5.4 Proceeds from Other Asset Sales 0.3 2.5 - 0.1 Cash Restructuring Costs (0.6) (2.3) (0.4) (1.4) Delphi - Cash Restructuring Costs (0.2) (0.4) - (0.3) Adj. Operating Cash Flow after Special Items (0.1) (4.0) (1.7) 1.6 Non-Operating Related VEBA Withdrawals 0.1 4.1 2.7 2.7 Dividends (0.1) (0.6) (0.1) (0.6) Change in Debt 1.7 1.6 (0.9) (0.6) GMAC Purchase Price Adjustment - - - (1.0) GMAC Transaction Proceeds 10.1 10.1 - - Preferred Equity Investment in GMAC (1.4) (1.4) - - GM-GMAC Intercompany Exposures (3.1) (3.1) - - GMAC Dividends - 1.9 - - GMAC Lease Asset Carve-out 0.1 0.1 0.2 0.9 Change in ST VEBA - (1.3) (2.9) (1.9) Other (1.3) (1.4) 0.1 (0.2) Total Non-Operating Related 6.1 10.0 (0.9) (0.7) Net Change in Cash and Cash-related 6.0 6.0 (2.6) 0.9 * Earnings before Tax from Continuing Operations Refer to Supplemental Charts for reconciliation to GAAP figures 28
  30. 30. Accrued Expenses and Pension/OPEB • Accrued Expenses and Other reflects timing of cash flows vs. accruals 2006 2007 ($ Billions) Q4 CY Q4 CY Net Interest Accruals/ (Payments) 0.3 0.2 0.2 0.0 Net Sales Allowances (0.2) (1.6) (0.3) 0.0 Net Daily Rental Sales (0.4) (1.1) 0.1 (0.1) Net P&W Accruals/ (Payments) 0.0 (0.1) 0.1 0.7 Non-Cash Charges 0.4 2.8 1.4 3.0 Net Tax Refunds/ (Payments) & Other 1.1 0.5 0.4 0.7 Total Accrued Expenses & Other 1.2 0.7 1.9 4.3 • Net variance related to Pension/OPEB driven primarily by lower net pension and OPEB expense ($ Billions) 2006 2007 Q4 CY Q4 CY Pension Expense/ (Income) (0.1) 4.9 0.2 1.7 Pension Contributions/ Payments (0.6) (1.3) (0.2) (0.9) US OPEB Expense 0.5 3.3 0.5 2.1 US OPEB Payments (0.9) (3.7) (0.9) (3.6) Other Pension/ OPEB Adjustments (0.0) 0.2 0.1 0.2 Total Pension/OPEB Expense (1.1) 3.4 (0.3) (0.5) (Net of Payments) 29
  31. 31. U.S. Pension Expense 2006 2007 2008 ($ Billions) Actual Actual Outlook U.S. Pension Expense / (Income) 1 (0.6) (1.1) (1.4) Related Interest Expense 1.0 1.1 1.1 Total Expense / (Income) 0.4 0.0 (0.3) YE Funded Status 2 17.1 20.0 N/A - Hourly 11.6 11.8 - Salaried 5.5 8.2 YE Discount Rate (%) 5.90% 6.35% N/A 3 Actual Asset Returns (%) 15.2% 10.7% 8.5% 2 Contributions 0.0 0.0 0.0 1 FAS 87 expense 2 Reflects U.S. Hourly and Salaried Pension Plans only 3 2008 assumption 30
  32. 32. U.S. Health Care Spending & OPEB Expense ($ Billions) 2006 2007 2008 Actual Actual Outlook Assumptions Year-end Discount Rate 5.90% 6.35% N/A 1 OPEB Health Care Trend Rate 10.00% 9.00% 8.25% U.S. OPEB Expense 3.3 2.1 2.1 OPEB Liability 64.6 59.5 - VEBA Assets 16.9 16.3 - Net Liability 47.7 43.2 - U.S. Health Care Cash Payments Active 1.5 1.3 1.3 Retired 3.3 3.3 3.3 Total Cash 4.8 4.6 4.6 3 Mitigation VEBA contributions 1.0 1.0 0.0 1 OPEB trend rate in initial year; ultimate trend rate assumed to be 5.0% in six years 2 OPEB liabillity and expense reflect UAW & IUE legal service benefit for all years 3 Excludes $450 million Delphi-related payment to UAW to be paid into Mitigation VEBA 31
  33. 33. GM-UAW Healthcare Settlement Update • Negotiations with the UAW and Class Counsel progressing well – Expect to complete negotiations and file Settlement Agreement with court shortly – Do not anticipate delays in court approval process • Agreement in principle on two developments – $4B short term note – Restructuring of the $4.4B convertible note set out in the MOU 32
  34. 34. $4 Billion Short Term Note • In Q4 2007 GM withdrew $2.7B from its VEBA, representing residual salaried and hourly 2006 Healthcare PAYGO capacity – Post withdrawal, UAW-related portion of the hourly VEBA estimated at $14.5B as of year-end 2007 • Under GM-UAW MOU, agreement to set aside $18.5B upfront • Agreement in principle with UAW and Class Counsel to fund the difference of approximately $4B by way of short- term note maturing January 2010 with 9% interest • Win-Win for both UAW, GM and plan participants – GM enhances interim liquidity – UAW and plan participants receive 9% interest 33
  35. 35. Restructuring $4.4B UAW Convertible • UAW and Class Counsel approached GM for adjustment to terms of convertible note • In spirit of cooperation, as part of the overall settlement agreement process GM agreed in principle to effective conversion price of $36 versus $40 through execution of derivative transactions • Maximum potential value provided would be $0.8B if GM stock price is $63.48 after 3.5 years – Provides mechanism for GM to recover additional economic value provided at stock prices between $63.48 and $70.53 – Fair market value of derivatives approximately $0.2B 34
  36. 36. 2007 Recap – Total Automotive Metrics vs. 2006 Jan 2007 CY 2007 Outlook Results Global Industry Increase Increase GM Revenue Increase Increase Net Material Slightly Flat Performance Unfavorable Decrease Slight Increase Structural Cost (down as % of revenue) Adjusted Earnings Improve Improve Improve but Improve but Cash Flow Negative Negative Capital Spending Increase About Flat 35
  37. 37. 2008 GM Automotive Overview • Continued global revenue growth • Continued improvement in material cost and structural cost metrics • U.S. total industry outlook in the low 16 million unit range • Sufficient liquidity cushion even in event of further U.S. industry decline – Ahead of a possible downturn, should target liquidity of at least $18-20B and access to $4-5B of credit lines – Year-end liquidity of $27.3B and access to approximately $7B of undrawn credit facilities – One million unit downside in U.S. industry would have negative liquidity impact estimated in $2-3B range 36
  38. 38. Total Automotive Outlook – 2008 vs. 2007 Global Automotive Increase Revenue growth in all regions, Revenue particularly in emerging markets Net Material Footprint optimization, lower Favorable commodity increases, fewer majors Performance Structural Cost as Down in all regions, particularly GMAP % of Revenue Decrease & GMLAAM due to revenue growth Adjusted Pre-tax Continued strength in emerging Improved markets Earnings Continued strong product and Capital Spending Increase advanced technology development Improved earnings offset by higher Operating Cash Flow About Flat capex, less favorable working capital 37
  39. 39. Special Attrition Program – Phase II • In Dec 2007, GM and the UAW reached agreement on Phase I of a new special attrition program (SAP) – Offered to all Service Parts facilities and five other plants • Today, GM and the UAW announced a comprehensive SAP to be offered to all UAW-represented GM employees • Eligible employees with 30 or more years service may choose retirement pension incentives of $45k to $62.5k – Funding for the retirement pension incentives will come from the GM Hourly Pension Plan, which is currently overfunded • Similar to the 2006 GM-UAW SAP, three other options are offered for employees with less than 30 years service: – Mutually satisfactory retirement for certain employees – Pre-retirement leave program for employees with 26 to 29 years’ service – Cash buyout option of $70k (less than 10 years’ service) or $140k (10 or more years’ service) to voluntarily separate all ties to GM 38
  40. 40. Mid-term Outlook – 2010/11 Opportunities Downside Risks • Full impact of labor contract • U.S. industry mix shift $4B - $5B • Regulatory costs increase • Delphi-related cost reduction • Continued competitive ~$0.5B environment • If U.S. industry returns to trend Pricing, new entries ~$1-1.5B • Pricing for stronger brands • Material cost reductions • Improved GMAC performance • Further emerging markets growth 39
  41. 41. Summary • 2007 results improved, but near-term challenges remain – CY adjusted automotive earnings before tax improved by $0.9B, largely due to continued strength in GMAP and GMLAAM – Q4 adjusted automotive earnings before tax deteriorated by $(0.8)B, due largely to headwinds in the U.S. and Germany – Continued share growth in GMAP and GMLAAM • 2008 automotive pre-tax earnings outlook improved vs. 2007 on continued growth in emerging markets and focus on cost performance in mature markets – Anticipate adjusted automotive operating cash flow to be about flat despite higher capital spending – Automotive liquidity remains strong at $27.3B • Potential for significant earnings improvement in 2010/11 timeframe 40
  42. 42. Supplemental Charts The following supplemental charts are provided to reconcile adjusted financial data comprehended in the primary chart set with GAAP-based data (per GM’s financial statements) and/or provide clarification with regard to definition of non-GAAP terminology Note: As previously disclosed, GM restated its financial statements for the first three quarters of 2006 for various accounting issues associated with derivatives contracts, deferred income tax and other adjustments. The results reported for the calendar year ending December 31, 2006 contained in this presentation reflect the adjustments.
  43. 43. Reconciliation to Adjusted Net Income / EPS Q4 – 2007 Auto Total Corp. Other $ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Auto GMAC Other Financing Total QTD December 31, 2007 Total Net Sales & Revenue 28,121 10,692 6,040 5,534 (3,695) 46,692 - - 393 47,085 Income (loss) before tax (1,252) (445) 424 72 (24) (1,225) (394) (1,641) 90 (3,170) Tax (expense)/benefit - - - - - - - 1,553 90 1,643 Net income (loss) from Cont. Ops. (1,252) (445) 424 72 (24) (1,225) (394) (88) 180 (1,527) Gain on sale of Disc. Ops. 805 - - - - 805 - - - 805 Net Income (loss) (447) (445) 424 72 (24) (420) (394) (88) 180 (722) EPS ($1.28) Pre-tax adjustments: Delphi - - - - - - - 1,174 - 1,174 Other valuation allow adjust - - - - - - - - - - Restructuring/Special attrition program 60 230 - - - 290 - - - 290 Product impairments 169 169 169 Plant closures (37) - - - - (37) - (6) - (43) 192 230 - - - 422 - 1,168 - 1,590 Tax adjustments: Tax on regional special items - non DTA - - - - - - - (17) - (17) Total Continuing Operations 192 230 - - - 422 - 1,151 - 1,573 Gain on sale of Allison (805) - - - - (805) - - - (805) Total Adjustments (613) 230 - - - (383) - 1,151 - 768 Adjusted Net Revenue 28,121 10,692 6,040 5,534 (3,695) 46,692 - - 393 47,085 Income (loss) before tax (1,060) (215) 424 72 (24) (803) (394) (473) 90 (1,580) Tax benefit - - - - - - - 1,536 90 1,626 Net income (loss) from Cont. Ops. (1,060) (215) 424 72 (24) (803) (394) 1,063 180 46 Gain on sale of Disc. Ops. - - - - - - - - - - Adjusted Net Income (loss) (1,060) (215) 424 72 (24) (803) (394) 1,063 180 46 Adjusted EPS - Diluted $0.08 S1
  44. 44. Reconciliation to Adjusted Net Income / EPS Q4 – 2006 Auto Total Corp. Other $ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Auto GMAC Other Financing Total QTD December 31, 2006 Total Net Sales & Revenue 28,516 8,998 3,975 4,502 (2,352) 43,639 6,486 (44) 722 50,803 Income (loss) before tax (30) (154) 76 29 (32) (111) 364 426 (347) 332 Tax (expense)/benefit - - - - - - - 256 267 523 Net income (loss) from Cont. Ops. (30) (154) 76 29 (32) (111) 364 682 (80) 855 Net income for Disc. Ops. 95 - - - - 95 - - - 95 Net Income (loss) 65 (154) 76 29 (32) (16) 364 682 (80) 950 EPS - Basic & Diluted $1.68 Pre-tax adjustments: Special attrition related (53) - - - - (53) - - - (53) GMAC transaction related - - - - - - (872) (631) 406 (1,097) Restructuring - 142 - 76 - 218 - - - 218 Component plant settlement 224 - - - - 224 - - - 224 Gain on sale (270) - - - - (270) - - - (270) (99) 142 - 76 - 119 (872) (631) 406 (978) Tax adjustments: Tax on or tax related regional spcl items - - - - - - 36 36 Tax of GMAC/FIO special items - - - - - - 172 172 Total Adjustments (99) 142 - 76 - 119 (872) (595) 578 (770) Total Adjust. - Net Revenue - - - - - - (872) - - (872) Adjusted Net Revenue 28,516 8,998 3,975 4,502 (2,352) 43,639 5,614 (44) 722 49,931 Income (loss) before tax (129) (12) 76 105 (32) 8 (508) (205) 59 (646) Tax benefit - - - - - - - 292 439 731 Net income (loss) for Cont. Ops. (129) (12) 76 105 (32) 8 (508) 87 498 85 Net income for Disc. Ops. 95 - - - - 95 - - - 95 Adjusted Net Income (loss) (34) (12) 76 105 (32) 103 (508) 87 498 180 Adjusted EPS - Basic $0.32 Adjusted EPS - Diluted $0.32 S2
  45. 45. Reconciliation to Adjusted Net Income / EPS CY – 2007 Auto Corp. Other $ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total YTD December 31, 2007 Total Net Sales & Revenue 112,448 37,397 18,894 21,003 (11,543) 178,199 - - 2,923 181,122 Income (loss) before tax (3,314) (524) 1,348 681 (59) (1,868) (1,147) (3,605) 485 (6,135) Tax (expense)/benefit - - - - - - - (37,129) (33) (37,162) Net income (loss) from Cont. Ops. (3,314) (524) 1,348 681 (59) (1,868) (1,147) (40,734) 452 (43,297) Net income from Disc. Ops. 256 - - - - 256 - - - 256 Gain on sale of Disc. Op. 4,309 - - - - 4,309 - - - 4,309 Net Income (loss) 1,251 (524) 1,348 681 (59) 2,697 (1,147) (40,734) 452 (38,732) EPS ($68.45) Pre-tax adjustments: Delphi - - - - - - - 2,099 - 2,099 Pension prior service cost 1,310 - - - - 1,310 - 251 - 1,561 Restructuring/special atttrition program 289 579 - 50 - 918 - - - 918 Product impairments 264 13 277 277 Plant closures (84) - - - - (84) - (6) - (90) 1,779 579 - 63 - 2,421 - 2,344 - 4,765 Tax adjustments: Tax on regional special items - non DTA - - - - - - - (47) - (47) DTA valuation allow. & assoc. items - - - - - - - 38,177 123 38,300 Total Continuing Operations 1,779 579 - 63 - 2,421 - 40,474 123 43,018 Gain on sale of Allison (4,309) - - - - (4,309) - - - (4,309) Total Adjustments (2,530) 579 - 63 - (1,888) - 40,474 123 38,709 Adjusted Net Revenue 112,448 37,397 18,894 21,003 (11,543) 178,199 - - 2,923 181,122 Income (loss) before tax (1,535) 55 1,348 744 (59) 553 (1,147) (1,261) 485 (1,370) Tax benefit - - - - - - - 1,001 90 1,091 Net income (loss) for Cont. Ops. (1,535) 55 1,348 744 (59) 553 (1,147) (260) 575 (279) Net income for Disc. Ops. 256 - - - - 256 - - - 256 Adjusted Net Income (loss) (1,279) 55 1,348 744 (59) 809 (1,147) (260) 575 (23) Adjusted EPS ($0.04) S3
  46. 46. Reconciliation to Adjusted Net Income / EPS CY – 2006 Auto Corp. Other $ Millions, except for EPS GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total YTD December 31, 2006 Total Net Sales & Revenue 116,653 33,278 14,627 15,532 (8,655) 171,435 33,629 (256) 793 205,601 Income (loss) before tax (7,534) (297) 518 1,199 (34) (6,148) 2,241 (1,185) (377) (5,469) Tax (expense) benefit - - - - - - - 3,881 (835) 3,046 Net income (loss) from Cont. Ops. (7,534) (297) 518 1,199 (34) (6,148) 2,241 2,696 (1,212) (2,423) Net income from Disc. Ops. 445 - - - - 445 - - - 445 Net Income (loss) (7,089) (297) 518 1,199 (34) (5,703) 2,241 2,696 (1,212) (1,978) EPS ($3.50) Pre-tax adjustments: Special attrition program 6,387 - - - - 6,387 - - - 6,387 Sale of investments - - - (977) - (977) - - - (977) GMAC transaction related - - - - - - (872) (631) 447 (1,056) GMAC commercial finanace goodwill impair. 839 839 Restructuring (908) 654 43 76 - (135) - 5 - (130) Component plant settlement 224 224 - - 224 Product impairments 475 - - - - 475 - - - 475 Gain on sale (270) (270) (270) GMDAT DTA 105 105 105 Delphi - - - - - - - 500 - 500 5,908 654 43 (796) - 5,809 (33) (126) 447 6,097 Tax adjustments: Tax on or tax related regional special items - - - - - - (2,298) (2,298) Tax of GMAC/FIO special items - - - - - - 355 355 Total Adjustments 5,908 654 43 (796) - 5,809 (33) (2,424) 802 4,154 Total Adjust. - Net Revenue - - - - - - (872) - - (872) Adjusted Net Revenue 116,653 33,278 14,627 15,532 (8,655) 171,435 32,757 (256) 793 204,729 Income (loss) before tax (1,626) 357 561 403 (34) (339) 2,208 (1,311) 70 628 Tax benefit - - - - - - - 1,583 (480) 1,103 Net income (loss) for Cont. Ops. (1,626) 357 561 403 (34) (339) 2,208 272 (410) 1,731 Net income for Disc. Ops. 445 - - - - 445 - - - 445 Adjusted Net Income (loss) (1,181) 357 561 403 (34) 106 2,208 272 (410) 2,176 Adjusted EPS - Basic $3.85 Adjusted EPS - Diluted $3.84 S4
  47. 47. Reconciliation of GMNA Revenue Per Unit Fourth Quarter Q4 2003 Q4 2004 Q4 2005 Revenue Revenue Revenue Revenue Revenue Revenue $ (Millions) per unit $ (Millions) per unit $ (Millions) per unit GAAP 31,963 $ 21,877 30,430 $ 22,326 29,945 $ 22,165 add/(less): Allied Sales (17) a (284) a 382 a less: Non Vehicle Sales (2,859) b (2,084) b (2,828) b less: Other Income Items (597) c (524) c (804) c Managerial 28,490 $ 19,500 27,538 20,204 26,695 $ 19,759 *Q4 2006 * Q4 2007 Revenue Revenue Revenue Revenue $ (Millions) per unit $ (Millions) per unit GAAP 28,516 $ 24,207 28,121 $ 25,518 add/(less): Allied Sales (469) a (348) a less: Non Vehicle Sales (3,084) b (3,104) b less: Other Income Items (485) c (519) c Managerial 24,478 $ 20,779 24,150 $ 21,915 * Excludes revenue from Allison Transmission, classified as discontinued operations a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis c). Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis S5
  48. 48. Reconciliation of GMNA Revenue Per Unit Calendar Year CY '03 CY '04 CY '05 Revenue Revenue Revenue Revenue Revenue Revenue $ (Millions) per unit $ (Millions) per unit $ (Millions) per unit GAAP 120,566 $ 21,537 119,071 $ 21,736 111,376 $ 21,838 add/(less): Allied Sales (1,270) a (925) a (827) a less: Non Vehicle Sales 10,063 b (9,175) b (9,246) b less: Other Income Items (1,973) c (2,607) c (2,236) c Managerial 107,260 $ 19,160 106,364 $ 19,417 99,067 $ 19,425 CY '06 CY '07 Revenue Revenue Revenue Revenue $ (Millions) per unit $ (Millions) per unit GAAP 116,653 $ 23,671 112,448 $ 25,061 add: Allied Sales (1,674) a (1,343) a less: Non Vehicle Sales (13,487) b (12,764) b less: Other Income Items (2,003) c (1,929) c Managerial 99,489 $ 20,189 96,412 $ 21,487 Note: Excludes revenue from Allison Transmission, classified as discontinued operations a). For GAAP reporting purposes, sales to other GM regions are eliminated whereas they are retained for managerial vehicle analysis b). Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis c). Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis S6
  49. 49. Reconciliation of Automotive Cash Flow Fourth Quarter & Calendar Year General Motors Corporation Automotive and Corp/Other GAAP to Managerial Cash Flow reconciliation $ Billions Q4 2007 CYTD 2007 Q4 2006 CYTD 2006 Net Cash Provided By Operating Activities (GAAP) * 3.4 5.5 1.1 5.0 Reclassifications to/ (from) U.S. GAAP - Expenditures for PPE & Special Tools (2.6) (7.5) (2.4) (7.5) - VEBA Withdrawls (2.7) (2.7) (0.1) (4.1) - Cash Restructuring Costs 0.4 1.4 0.6 2.3 - Delphi - Cash Restructuring Costs - 0.3 0.2 0.4 - Other 0.2 0.6 0.9 (0.5) Total Reconciling Items (4.7) (7.9) (0.8) (9.4) Total Operating before Special Items (1.3) (2.4) 0.3 (4.4) * Operating Cash Flow from Continuing Operations S7

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