General Motors Financial Statement Y/E December 31, 2004

1. General Motors Financial Statement Y/E December 31, 2004

2. What Confidence!!!! Health care costs!!!???

3. Page 2 Profits!!! (but where from???)

4. Page 44 Automotive lost 89 m Financing made 2,894m

5. Page 60 Subtract this from net income

6. Page 48 This is the source of Profit !!!!

7. Page 4 Where money was lost and why!!!! Page 7 GM published a whole page devoted to a national health program

8. Page 62 Total Assets

9. Page 62 Total Liabilities Total Equity Debt/Equity Ratio = 461,480/27,726 or 16.64 –very high

10. Page 64 Further debt!!!

11. Page 83 Cumulative Debt!!!

12. Factors to consider • GM is facing problems regarding “legacy costs”- agreements signed to provide health care and pension payments to retirees • Health care costs in the US are the highest in the world, and pensioners are the largest consumers • Cost per vehicle is estimated at $1,800 • It would be unthinkable for a major US company to advocate a national health care program in the past, but in this statement GM dedicated a whole page to making the case

13. General Motors Financial Statement 2005 Some Highlights

14. Introduction by the CEO of General Motors Confidence of 2004 is gone!!!! Loss of 10.6 billion!!!

16. Consolidated Results Automotive Losses Financial Profits

17. Tax Credit Add this to automotive loss of $12,925 $12,925 + 5,878 = 18,803

18. Interest Payments During 2004 and 2003, Auto & Other had cash outflows related to investments in companies, net of cash acquired, of approximately $50 million and $60 million, respectively. Downgrading of corporate debt and increased borrowing means higher interest payments

19. GMAC’s Results This time not enough to stop a loss!!

20. Total Assets

21. Total Liabilities Total Equity Debt/Equity Ratio = 460,442/14,597 = 31.54 – double the previous year

22. FOR RELEASE: 2006-04-03 CONTACTS GM Reaches Agreement to Sell Controlling Stake in GMAC Cerberus Led Consortium To Buy 51 Percent Of GMAC EquityGM To Receive $14 Billion In Cash Over Three-Year Period DETROIT - General Motors Corp. (NYSE: GM) today announced it has entered into a definitive agreement to sell a 51-percent controlling interest in General Motors Acceptance Corp. (GMAC) to a consortium of investors led by Cerberus Capital Management, L.P., a private investment firm, and including Citigroup Inc., and Aozora Bank Ltd. GM expects to receive approximately $14 billion in cash from this transaction over three years, including distributions from GMAC, with an estimated $10 billion by closing. The transaction strengthens GMAC's ability to support GM's automotive operations, improves GMAC's access to cost-effective funding, provides significant liquidity to GM and allows GM to continue to participate in the profitability of GMAC over the long term through its 49-percent ownership stake.

23. FOR RELEASE: 2006-04-03 CONTACTS GM Reaches Agreement to Sell Controlling Stake in GMAC (cont’d) GM to Receive $14 Billion in Cash The $14 billion in cash that GM is to receive as part of the transaction includes $7.4 billion from the Cerberus-led consortium at closing and an estimated $2.7 billion cash distribution from GMAC related to the conversion of most of GMAC and its U.S. subsidiaries to limited liability companies. In addition, GM will retain about $20 billion of GMAC automotive lease and retail assets and associated funding with an estimated net book value of $4 billion that will monetize over three years. General Motors has to sell GMAC – a profitable part Part of the company to get a cash inject.

24. Factors to consider • Confidence expressed in 2004 is gone!! • Real losses once adjusted for tax rebate and finance profits exceed $18.8 billion • Troubles have been worsened by downgrade of credit interest is more expensive • GM finally announced that it would have to sell its sole source of profitability – GMAC to raise cash • Debt/Equity ratio doubled – on the road to insolvency??

25. General Motors Financial Statement 2006 Some Highlights

26. CEO’s Opening Statement The confidence of 2004 is gone

27. North American market can’t seem to turn a profit

29. Sales outside North America are doing much better –but still NA is the most important market

30. “unacceptable” perhaps, but what about the management???

31. Legacy costs still plague the company

32. Real Automotive operating loss

33. Total Assets

34. Total Liabilities Total Equity Equity is negative – GM is technically insolvent!!!

35. North American Market is worsening Sales increased in most other markets, but the decrease in North America brought down overall sales

36. P.49 North American situation is serious – notice the loss in car market share

37. European losses are not as steep

38. No Profits Then why dividends if there is no equity left????

40. General Motors Financial Statement 2007 Some Highlights

41. Opening Comments: “A century is a long time to be in business. For General Motors, it’s been a century of leadership and achievements, of challenges and opportunities. A centennial is a great time to reflect on and celebrate the past. But for us, it’s more than that…it’s an opportunity to look forward to our next 100 years.” “2007 was another year of important progress for GM, as we implemented further significant structural cost reductions in North America, grew aggressively in emerging markets, negotiated an historic labor contract with our United Auto Workers union partners in the U.S., further developed a broad range of advanced propulsion technologies and, most importantly, introduced a series of breakthrough cars and trucks around the world.” “GM’s core automotive business generated record revenue of $178 billion in 2007, a $7 billion improvement over 2006. In total, GM generated $181 billion in revenue in 2007, compared with $206 billion in 2006.”

43. ?

47. -21.7% 63% 71% 72.5% +2.9% 20% 17% 17% +37.1% 7% 5% 4% +39.1% 9% 5.5% 4.5% 1% 1.5% 2%

48. P 53

50. P 49…our loss from continuing operations increased substantially as a result of the $39 billion valuation allowance established in the third quarter against our net deferred tax assets in the United States, Canada and Germany and was also increased by our share of losses from our equity investment in GMAC totaling $1.2 billion. Deferred Income Taxes In the third quarter of 2007, we recorded a charge of $39 billion related to establishing full valuation allowances against our deferred tax assets in the United States, Canada and Germany. .. We had determined in prior periods that valuation allowances were not necessary for our deferred tax assets in the United States, Canada and Germany based on several factors including: (1) degree to which our three-year historical cumulative losses were attributable to unusual items or charges, several of which were incurred as a result of actions to improve future profitability; (2) long duration of our deferred tax assets; and (3) expectation of continued strong earnings at GMAC and improved earnings in GMNA.