GENERAL MOTORS COMPANY AND SUBSIDIARIES – CONSOLIDATED MANAGERIAL STATEMENT OF OPERATION

Predecessor firm
(Figures in millions of U.S. dollars) Year ending Dec 31 Year ending Dec 31
2006 2007
Sales 170,651 177,594
Other revenue 33,816 2,390
Total net sales and revenue 204,467 179,984
Cost of sales 163,214 165,573
Selling, general and administrative expenses 13,650 14,412
Other expenses, net 33,426 4,308
Total costs and Expenses 210,290 184,293
Operating gain/(loss) -5,823 -4,309
Equity in income (loss) of GMAC -5 -1,245
Interest expense -2,642 -2,983
Interest income and other non-operating income, net 2,812 2,284
Gain (loss) on extinguishment of debt 0 0
Reorganization gains, net 0 0
Income (loss) before income taxes and equity income 0 0
Income tax expense (benefit) -3,046 37,162
Equity income, net of tax 513 524
Minority interests, net of tax -324 -406
Managerial net income (loss) -2,423 -43,297
AGERIAL STATEMENT OF OPERATIONS

essor firm Successor Firm

Year ending Dec 31 July 10- 30 Sep January 1 - Jul 9 July 1- Jul 9
2008 2009 2009 2009
147,732 73,060 46,786 1,629
1,247 406 328 8
148,979 73,466 47,114 1,637
149,311 82,238 57,473 1,943
14,253 8,883 6,230 732
6,699 1,306 1,323 21
170,263 92,427 65,026 2,696
-21,284 -18,961 -17,912 -1,059
-6,183 0 1,373 0
-2,345 -356 -5,428 -823
424 334 827 23
0 0 -1,088 0
0 0 79,563 80,720
0 -1,071 57,335 78,861
1,766 -135 -1,080 -522
186 212 278 15
108 0 0 0
-30,860 -994 58,693 79,368
 GENERAL MOTORS COMPANY AND SUBSIDIARIES – CONSOLIDATED MANAGERIAL BALANCE SHEET
Predecessor firm Successor firm
31-Dec-06 31-Dec-07 31-Dec-08 30-Sep-09
2006 2007 2008 2009
Assets
Cash and cash balances 23,774 24,549 14,053 25,092
Marketable securities 138 2,139 141 137
Restricted cash and marketable securities 0 0 0 17,987
Accounts and notes receivable, net 8,216 9,659 7,918 6,895
Inventories 13,921 14,939 13,195 9,812
Assets held for sale 0 0 0 492
Equipment for operating leases, net 6,125 5,283 5,142 2,708
Other current assets and deferred income taxes 12,982 3,566 3,146 1,722
Total current assets 65,156 60,135 43,595 64,845
Financing and insurance operations assets 22,123 16,989 0 0
Equity in net assets of non-consolidated affiliates 1,969 1,919 2,146 2,245
Property, net 41,934 43,017 39,665 35,700
Intangible assets, net 1,118 1,066 265 201
Deferred income taxes 33,079 2,116 98 557
Prepaid pension 17,366 20,175 109 123
Equipment on operating leases, net 0 0 442 2
Restricted cash and marketable securities 0 0 2,589 2,327
Other assets 3,559 3,466 2,130 1,451
Total non-current assets 99,025 71,759 47,444 42,606
Total assets 186,304 148,883 91,039 107,451
Liabilities and deficit
Accounts payable (principally trade) 26,931 29,439 22,259 20,213
Short-term debt and current portion of long-term debt 5,666 6,047 16,920 12,842
Liabilities held for sale 0 0 0 492
Post-retirement benefits other than pensions 0 0 4,001 1,625
Accrued expenses 34,120 34,822 32,428 24,575
Total current liabilities 66,717 70,308 75,608 59,747
Financing and insurance operations liabilities 11,577 5,813 0 0
Long-term debt 33,067 33,384 29,018 4,197
Post-retirement benefits other than pensions 50,409 47,375 28,919 30,077
Pensions 11,934 11,381 25,178 27,549
Other liabilities and deferred taxes 17,062 16,102 17,392 14,035
Total non-current liabilities 112,472 108,242 100,507 75,858
Total liabilities 190,766 184,363 176,115 135,605
Preferred stock at 0.01 par value 0 0 0 2,500
Old GM - Common stock at $0.01 par value 0 0 0 0
- Common stock 943 943 1,017 0
New GM – Common stock 0 0 0 5
- Capital surplus 15,336 15,319 16,489 17,512
Minority interests 1,190 1,614 0 0
Retained earnings (Accumulated deficit) 195 -39,392 -70,727 -13,011
Accumulated other comprehensive loss -22,126 -13,964 -32,339 -35,557
Total stockholders’ deficit -5,652 -37,094 -85,560 -31,051
Non-controlling interest 0 0 484 397
Total deficit 0 0 -85,076 -30,654
Total liabilities and deficit 186,304 148,883 91,039 107,451
ERIAL BALANCE SHEET
 Business Risk

Sales Variability
Particulars 2006 2007 2008 2009
Revenue (in millions of euro) 204,467 179,984 148,979 73,466
Standerd deviation of Revenue 56898.45
Mean Revenue 151724.00
0.00 2007
Revenue Variability (CV) 0.38
-5.00
Variability in EBIT -10.00
Particulars 2006 2007 2008 2009 -15.00
EBIT -5,823 -4,309 -21,284 -18,961 -14.53
8766.27 -20.00
Standerd deviation of EBIT
Mean EBIT -12594.25 -25.00
Variability in EBIT (CV) -0.70 -30.00
-35.00
Degree Of Operating Leverage
Year 2006 2007 2008 2009
EBIT -5,823 -4,309 -21,284 -18,961
Change of EBIT -10,132 -25,593 -40,245
Revenue 204,467.00 179,984.00 148,979.00 73,466.00
Change of Revenue -24,483.00 -31,005.00 -75,513.00
Operating leverage -14.53 -34.48 -3.73

Financial Risk

Degree Of Financial Leverage

Particulars 2006 2007 2008 2009
EBIT -5,823 -4,309 -21,284 -18,961
Interest 2,642 2,983 2,345 356
DFL 0.6878913172 0.590921558 0.900757544 0.981570637
Degree of Financial leverage 0.6878913172 0.590921558 0.900757544 0.981570637

Interest coverage ratio

Year 2006 2007 2008 2009
EBIT -5,823 -4309 -21284 -18961
Interest 2,642 2983 2345 356
Interest coverage ratio (TIE) -2.204012112 -1.44451894 -9.07633262 -53.261236
Interest coverage ratio -2.204012112 -1.44451894 -9.07633262 -53.261236
 2007 2008 2009
Operating leverage -14.53 -34.48 -1.27

Operating leverage
0.00 2007 2008 2009
-5.00
-1.27
-10.00
-15.00 Operating leverage
-14.53
-20.00
-25.00
-30.00
-35.00
-34.48
2006 2007 2008 2009
Degree of Financial leverage 0.69 0.59 0.90 0.98

Degree of Financial leverage

0.98
1.00 0.90
0.90
0.80 0.69
0.70 0.59
Degree of Financial
0.60 leverage
0.50
0.40
0.30
0.20
0.10
0.00
2006 2007 2008 2009

2006 2007 2008 2009

Interest coverage ratio -2.20 -1.44 -9.08 -53.26

Interest coverage ratio

0.00 2006 2007 2008 2009
-2.20 -1.44
-10.00
-9.08
-20.00 Interest coverage ratio
 Interest coverage ratio
0.00 2006 2007 2008 2009
-2.20 -1.44
-10.00
-9.08
-20.00 Interest coverage ratio

-30.00

-40.00

-50.00
-53.26
-60.00
 Ratio Analysis
2006 2007
Liquidity Ratio
Current ratio Current asset/current liability 0.976602665 0.855308073
Quick ratio current asset-inventory/current liability 0.7679452014 0.642828697
NWC to total asset NWC/total asset -0.008378779 -0.06832882

Solvency/Leverage
Total debt ratio
Debt-equity ratio
Long term debt ratio
Equity multiplier
(Total assets-Total equity)/Total assets 1.0303375129 1.24914866
Total debt/Total equity -33.75194621 -4.9701569
Long term debt/ Long term debt+ Total equity 1.2061645085 -8.99838275
Total assets/Total equity -32.96249115 -4.01366798

Profitability
Profit margin Net income/Sales -0.014198569 -0.24379765
ROA Net income/Total Assets -0.013005625 -0.29081225
ROE Net income/Total Equity 0.4286978061 1.16722381

Effeciency
Inventory turnover COGS/ Inventory 11.724301415 11.08327197
Receivables turnover Sales/ Accounts Receivable 20.77056962 18.3863754
NWC turnover Sales/NWC -109.3215887 -17.4573872
Fixed Asset turnover Sales/ Net Fixed Assets 3.9638344328 4.028627816
Total Asset turnover Sales/Total Assets 0.9159814067 1.192842702

DuPont Analysis
3 Factor Analysis
ROE Profit Margin * Total Asset Turnover * Financi 0.429 1.167
Profit Margin Net Income / Net Sales or revenue -0.014 -0.244
Total Asset Turnover Net Sales or revenue / Total Assets 0.916 1.193
Financial Leverage Total Assets / Total Equity -32.962 -4.014

5 Factor Analysis
ROE 0.000 0.000
operating profit margin EBIT/net sales -0.034 -0.024
total asset turnover net sales/total asset 0.9159814067 1.192842702
interest burden EBT/EBIT 0 0
after tax retention rate NI/EBT 0.4161085351 10.04803899
financial leverage Total asset/equity -32.962 -4.014

2006 2007 2008

Profit margin -0.014 -0.244 -0.209
ROA -0.013 -0.291 -0.339
ROE 0.429 1.167 0.361

2006 2007 2008

Inventory turnover 11.72 11.08 11.32
Receivables turnover 20.77 18.39 18.66
NWC turnover -109.32 -17.46 -4.61
Fixed Asset turnover 3.96 4.03 3.70
Total Asset turnover 0.92 1.19 1.62

Efficiency
40.00

20.00

0.00
2006 2007
-20.00

-40.00

-60.00

-80.00

-100.00

-120.00
 2008 2009
2006 2007 2008 2009
0.576592424 1.0853265 Current ratio 0.977 0.855 0.577 1.085
0.402073855 0.9211006 Quick ratio 0.768 0.643 0.402 0.921
-0.35164051 0.0474449 NWC to total asset -0.008 -0.068 -0.352 0.047

1.939817002 1.2889782 Liquidity Ratio

-2.05838008 -4.36717 1.085
1.200
-0.51321142 -0.15629 0.977
0.921
-1.06403693 -3.460468 1.000 0.855
0.768
0.800 0.643
0.577 Current ratio
0.600 Quick ratio
0.402
-0.20889178 -1.36% NWC to total asset
0.400
-0.3389756 -0.009251
0.360682562 0.0320119 0.200 0.047
0.000
2006
-0.008 2007 2008 2009
-0.200 -0.068
11.31572565 8.3813698
18.65774185 10.596084 -0.400
-0.352
-4.61475026 14.33111 2006 2007 2008 2009
3.699774606 2.0350408 Total debt ratio 1.03 1.25 1.94 1.29
1.622733114 0.6799378 Debt-equity ratio -33.75 -4.97 -2.06 -4.37
Long term debt ratio 1.21 -9.00 -0.51 -0.16
Equity multiplier -32.96 -4.01 -1.06 -3.46

0.361 0.032
-0.209 -0.014 Solvency Ratio
1.623 0.680
5.00
-1.064 -3.460
0.00
2006 2007 2008 2009
-5.00
0.000 0.002 -10.00
-0.144 -0.260
-15.00
1.622733114 0.6799378
0 0.0564844 -20.00
1.449915429 0.0524234 -25.00
-1.064 -3.460
-30.00
-35.00
2009
-0.038 Profitability Ratio
-0.009 1.167
1.200
1.000
0.800
Profit margin
 Profitability Ratio
1.167
1.200
0.032
1.000
0.800
Profit margin
2009
0.600 0.429 ROA
2.52 0.361 ROE
3.81 0.400
5.15 0.200 0.032
0.73
0.000
0.24 -0.013
-0.014
2006 2007 2008 -0.009
2009
-0.038
-0.200
-0.244 -0.209
-0.400 -0.291 -0.339

Efficiency

2006 2007 2008 2009

 Current ratio
Quick ratio
NWC to total asset

2009

Profit margin
o

Profit margin
ROA
ROE

0.032

8.009
09
 Year 2006 2007 2008

X1 Current Assets 65156.00 60135.00 43595.00

Current Liabilities 66717.00 70308.00 75608.00
Working Capital -1561.00 -10173.00 -32013.00
Total Assets 186304.00 148883.00 91039.00
Working Capital/Total Assets -0.01 -0.07 -0.35
Weight 1.20 1.20 1.20
Total -0.01 -0.08 -0.42

X2 Retained Earnings 195 -39392 -70727

Retained Earnings/Total Assets 0.001047 -0.264584 -0.776887
Weight 1.4 1.4 1.40
Total 0.00 -0.37 -1.09

X3 EBIT -5,823 -4,309 -21,284

EBIT/Total Assets -0.03 -0.03 -0.23
Weight 3.3 3.3 3.30
Total -0.10 -0.10 -0.77

X4 Equity -5,652 -37,094 -85,560

Total Debt 190,766 184,363 176,115
Equity/Total Debt -0.03 -0.20 -0.49
Weight 0.7 0.7 0.7
Total -0.02 -0.14 -0.34

X5 Sales 170,651 177,594 147,732

Sales/Total Assets 0.916 1.193 1.623
Weight 1 1 1.00
Total 0.92 1.19 1.62

Altman Z SCORE 0.78 0.50 -1.00

Risk Distribution
Z > 2.9 Safe Zone
1.81 < Z < 2.99 Gray Zone
Z < 1.81 Distress Zone
 2009

64845.00
59747.00
5098.00
107451.00
0.05
1.20
0.06 Measures the relative amount of liquid assets

-13011
-0.121088
1.40
-0.17 Determines cumulative profitability

-18,961
-0.18
3.30
-0.58 Measures earnings away from the effects of taxes and leverage]

-31,051
135,605
-0.23
0.7
-0.16 Incorporates the effects of a decline in market value of a company's shares

73,060
0.680
1.00
0.68 Measures asset turnover

-0.18 Distress Zone

s shares
 WACC (GM) WACC (Opel)
Risk Free Rate 5.00% Risk Free Rate
Market Return 11.00% Market Return
Beta 1.3 Beta
Cost of Equity 12.80% Cost of Equity
Cost of Debt 12.00% Cost of Debt
After Tax cost of debt 8.40% After Tax cost of debt
Weight ot Debt -15.63% Weight of Debt
Weight of Equity 115.63% Weight of Equity
Total Debt 4,197 Corporate Tax rate
Total Equity -31,051 Distress Premium
Total Value(Debt+ Equity) -26,854 WACC
Corporate Tax rate 30%
Distress Premium 4%
WACC 17.49%
CC (Opel)
4.50%
10.00%
1.4
12.20%
14.00%
10.08%
75.00%
25.00%
28%
3%
13.61%
 Forecas
Predecessor firm Successor Firm
(Figures in millions of U.S. dollars) Year endinYear ending Year ending Dec July 10- 30 Sep
Growth
2006 2007 2008 2009
Sales 10% 170,651 177,594 147,732 73,060
Other revenue 10% 33,816 2,390 1,247 406
Total net sales and revenue 204,467 179,984 148,979 73,466
Cost of sales 85.000% 163,214 165,573 149,311 82,238
Selling, general and administrative 9.085% 13,650 14,412 14,253 8,883
expenses
Other expenses, net 6.254% 33,426 4,308 6,699 1,306
Total costs and Expenses 210,290 184,293 170,263 92,427
Operating gain/(loss) -5,823 -4,309 -21,284 -18,961

Forecast Information
Sale growth 0.040685 -0.1681476 -0.5054558254
Other revenue growth -0.92932 -0.4782427 -0.6744186047
Considered growth for first three years -20%
Average growth -0.452
Cost of Sales 85.000% 0.798241 0.9199318 1.002228502 1.11940217
Selling, general and administrative
expenses 9.085% 0.066759 0.0800738 0.095671202 0.12091308
Other expenses, net 6.254% 0.163479 0.0239355 0.044966069 0.01777693

Assumptions
three years,
10% for next
Sales Growth seven years
Cost of sales 85.00%
Selling, general and administrative expenses 7.00%
Other expenses, net 5.00%
Depreciation 15.00%
Capex 3.50%
CNWC 5.00%
Tax 30.00%
WACC 17.49%
Terminal Growth rate 2.00%

2009 2010 2011 2012 2013

EBIT -18,961 248 333 366 402
EBIT(1-Tax) -13272.7 248.2543 332.58344 365.841787308 402.425966
Add: Depreciation 8834.19 7087.449 7796.1939 8575.81329
Less: Change in net working capital 2944.73 2362.483 2598.7313 2858.60443
Less: Capital expenditure 2061.311 1653.7381 1819.11191 2001.0231
FCFF 4076.403 3403.8113 3744.19247731 4118.61173
Time Factor 1 2 3 4
Discount Factor 0.851153 0.7244616 0.6166277731 0.52484465
PV of FCFF 3469.643 2465.9307 2308.77306941 2161.63133
Terminal Value
PV of Terminal Value

PV of all CF 22,685
Add: Cash & Cash Equvalent 32,124
Value of the Firm 54,809
Less : Interest bearing debt 4,197
Value of Equity 50,612
 Forecast
uccessor Firm
uly 10- 30 Sep
2010 2011 2012 2013 2014 2015 2016 2017
58448 46758.4 51434.24 56577.664 62235.4304 68458.9734 75304.8708 82835.3579
446.6 491.26 540.386 594.4246 653.86706 719.253766 791.179143 870.297057
58,895 47,250 51,975 57,172 62,889 69,178 76,096 83,706
49,680.80 39,744.64 43,719.10 48,091.01 52,900.12 58,190.13 64,009.14 70,410.05

5310.24922 4248.19937 4673.01931 5140.32124 5654.35337 6219.7887 6841.76757 7525.94433

3655.29648 2924.23718 3216.6609 3538.32699 3892.15969 4281.37566 4709.51323 5180.46455
58,646 46,917 51,609 56,770 62,447 68,691 75,560 83,116
248 333 366 402 443 487 536 589

2014 2015 2016 2017 2018 2019

443 487 536 589 648 713
442.668563 486.935419 535.628961 589.191857 648.111043 712.922147
9433.39462 10376.7341 11414.4075 12555.8482 13811.4331 15192.5764
3144.46487 3458.91136 3804.8025 4185.28275 4603.81102 5064.19212
2201.12541 2421.23795 2663.36175 2929.69792 3222.66771 3544.93449
4530.4729 4983.52019 5481.87221 6030.05943 6633.06537 7296.37191
 5 6 7 8 9 10
0.44672316 0.38022981 0.32363379 0.27546191 0.23446026 0.19956158
2023.86717 1894.88294 1774.11907 1661.05167 1555.19024 1456.07552
9589.54214
1913.7042
 2018 2019
91118.8936 100230.783
957.326763 1053.05944
92,076 101,284
77,451.06 85,196.17

8278.53876 9106.39264
5698.511 6268.36211
91,428 100,571
648 713
Assumptions
EBIT 20%
Depriciation 7.00%
Capex 65.00%
CNWC 11.00%
Tax 30.00%
WACC 13.61%
Terminal Growth rate 1.00%

2009 2010
Sale 71,563 62,994
EBIT 14,313 12,599
EBIT(1-Tax) 10019 8819
Add: Depreciation 4409.608
Less: Change in net working capital 6929.384
Less: Capital expenditure 5732.49
FCFF 566.9496
Time Factor 1
Discount Factor 0.880204
PV of FCFF 499.0314
Terminal Value
PV of Terminal Value

PV of all CF 1,717
Add: Cash & Cash Equvalent 4,819
Value of the Firm 6,536
Less : Interest bearing debt 1,722
Value of Equity 4,814
2,455.08
 2011 2012 2013 2014 2015 2016 2017 2018 2019
52,143 25,713 20,613 16,537 18,191 20,010 22,011 24,212 26,634
10,429 5,143 4,123 3,307 3,638 4,002 4,402 4,842 5,327
7300 3600 2886 2315 2547 2801 3082 3390 3729
3649.986 1799.917 1442.918 1157.617 1273.378 1400.716 1540.788 1694.867 1864.353
5735.692 2828.441 2267.442 1819.112 2001.023 2201.125 2421.238 2663.362 2929.698
4744.981 2339.892 1875.793 1504.902 1655.392 1820.931 2003.024 2203.327 2423.659
469.2839 231.4179 185.518 148.8364 163.7201 180.0921 198.1013 217.9114 239.7026
2 3 4 5 6 7 8 9 10
0.774759 0.681947 0.600252 0.528345 0.465051 0.40934 0.360303 0.31714 0.279148
363.5821 157.8146 111.3576 78.63691 76.13819 73.71887 71.37643 69.10842 66.91247
535.9365
149.6056
 billion
Euro (€) US dollar ($)
Funds required for restructuring 3 4.7
Payment of Bridge loan 0.4 0.00 Exchange Rate 1.57
Restructuring Cost 0.1 0.16 0
Total fund needed 3.5 4.857

Financing Arrangement
Debt 0.5 0.783
loan - German 1.08 1.696
Voluntarily agreed pay-cut 1 1.377
Britain loan for Vauxhall 0.95 1
total 3.5 4.857
 billion
Euro (€) US dollar ($)
Funds required for restructuring 3 4.7
Payment of Bridge loan 0.4 0.56 Exchange R 1.57
Restructuring Cost 0.1 0.16 1.393333
Total fund needed 3.5 5.414
1.393333
Financing Arrangement
Debt 0.5 0.783
loan - German 3.254
Voluntarily agreed pay-cut 1 1.377
loan Britain govt to save Vauxil
Venture Capitalist
Stakes to the workers