General Motors Company · NYSE:GM
General Motors — Q2 2021 Earnings Presentation
36 slides from General Motors's earnings presentation, Aug 4, 2021
Slide 1: Q2 2021 Results
Q2 2021 Results August 4, 2021 2023 CADILLAC LYRIQ
Slide 2: Information Relevant to This Presentation
Information Relevant to This Presentation Cautionary Note on Forward-Looking Statements: This presentation and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than stat
Slide 3: Generate Profitable Growth
Generate Profitable Growth As we execute our vision of zero crashes, zero emissions and zero congestion ALL-IN AND INVESTING TO LEAD STRONG AND GROWING FRANCHISES THE FUTURE OF MOBILITY > $35B allocated to EV & AV investment through 2025 > Leading full-size pickup & full-size SUV market share > EV f
Slide 4: Our Business Future Is Deeply Rooted in Our ESG Values
Our Business Future Is Deeply Rooted in Our ESG Values ENVIRONMENTAL SOCIAL GOVERNANCE > Plan to be carbon neutral in our global > Ambition to be the world’s most inclusive > Diverse and independent Board - 12 directors products and operations by 2040 company - committed to use the power of which 7
Slide 5: $35 Billion EV and AV Investment
$35 Billion EV and AV Investment From 2020 through 2025 Cruise Engineering Incremental investment from $27B to $35B to Battery-Related EV & Battery $35B Capital Spend Engineering accelerate battery and EV assembly capacity and ensure GM leads in all aspects of the transformation to a more sustainabl
Slide 6: Growth Opportunities and Initiatives
Growth Opportunities and Initiatives Super Cruise OnStar Guardian > Select models of the > OnStar Guardian 2022 GMC Sierra, and subscribers and family post-launch, the 2022 members can access Cadillac Escalade and critical OnStar safety GMC HUMMER EV, will services from their include the capability
Slide 7: Growth Opportunities and Initiatives
Growth Opportunities and Initiatives Cruise > Cruise continues to make excellent progress toward launching its first fully driverless commercial service > GM remains a major accelerator of Cruise's mission, with the purpose-built Origin giving Cruise a huge competitive advantage BrightDrop > Synergi
Slide 8: Factory ZERO transformation to flagship EV assembly plant
Pre-production GMC HUMMER EV Pickup at Factory Zero GM is completing the transformation at Factory ZERO to our flagship EV assembly plant that will build the GMC HUMMER EV, Cruise Origin, and electric versions of Chevrolet and GMC full-size pickups beginning this fall 8
Slide 9: Two new battery cell manufacturing plants announced
Construction at Ultium Cells LLC battery cell manufacturing facility in Lordstown, Ohio GM has announced plans to build two new battery cell manufacturing plants in addition to the two Ultium plants under construction 9
Slide 10: Financial Information
Financial Information 2022 GMC Canyon AT4 10
Slide 11: Second Quarter Performance
Second Quarter Performance EPS-DILUTED-ADJ. ADJ. AUTO FREE CASH FLOW EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN > Higher primarily due to the non-recurrence of the 2020 production stoppage as a result of the pandemic, strong pricing on full-size $2.5B Adj. Auto pickups and full-size SUVs and high used $1.
Slide 12: Second Quarter EBIT-adjusted
Second Quarter EBIT -adjusted In $B Q2-2020 Q2-2021 $4.1 $2.9 $1.6 $0.0 $0.2 ($0.1) ($0.3) ($0.2) ($0.3) ($0.2) ($0.0) ($0.5) GMNA GMI GM Financial Cruise Corp/Elims Total Company STRONG RESULTS AS WE MANAGE THROUGH THE FLUID SEMICONDUCTOR ENVIRONMENT 12
Slide 13: Second Quarter EBIT-adjusted Performance
Second Quarter EBIT -adjusted Performance In $B GM Financial: $1.3 FX: $0.3 Other Investments: $0.11 GMNA: 311k GMI: 28k VOLUME / MIX COST > GMNA: Increased volume due to the non-recurrence of the > GMNA: Increased due to non-recurrence of the 2020 austerity 2020 production stoppage as a result of t
Slide 14: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 799 802 15.0% 664 642 8.7% 12.1% 10.4% 331 $11.6 $29.1 $30.2 $26.0 $27.9 (0.9)% $4.4 $2.6 $3.1 $2.9 +14% - YOY U.S. RETAIL ATP INCREASE Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 - ($0.1) - Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Wholesales (000'S) EBIT-Adj. Margin +351% YO
Slide 15: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $0.0 $0.0 $3.9 $3.1 ($0.3) ($0.3) $2.7 $2.8 - ($0.4) 0.9% 0.0% - - - $1.7 - - (9.2)% (9.3)% - - Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 - - (26.2)% - Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 WHOLESALES (000’s) EBIT-Adj. margin from GMI ex. China EI
Slide 16: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 $14.1 5.9% $11.0 $9.9 6.1% 4.9% 3.5% 5.9% $9.2 $9.0 $0.3 $0.2 $0.3 $0.3 $0.2 - - Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Total China Auto JV NI/Rev WHOLESALES (000’s)1 Q2 2021 HIGHLIGHTS 1,106 > Results slightly a
Slide 17: Cruise Performance
($B) Q2 H1 Financial Performance 2021 2020 2021 2020 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted (0.3) (0.2) (0.6) (0.4) Cash used in operating activities (0.3) (0.2) (0.5) (0.4) GM IS NOW ASSEMBLING PRE-PRODUCTION CRUISE ORIGIN VEHICLES FOR VALIDATION TESTING GM FINANCIAL WILL PROVIDE CRUISE A $5B LINE
Slide 18: GM Financial Performance
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 35.5% 27.3% 53.0% 16.4% 20.5% 43.8% 42.6% 41.1% 43.1% 12.1% $1.6 $1.0 $1.2 $0.2 $1.2 $94.0 $96.5 $100.2 $100.8 $102.7 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Return on Average Tangible Common Equity GMF as % of GM U.S. Retail Sales (un
Slide 19: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q2 H1 ($B) 2021 2020 2021 2020 Net Income (loss) 2.8 (0.8) 5.8 (0.5) Income tax and net automotive interest expense 1.2 0.1 2.6 0.6 EBIT adjustments1 0.1 0.1 0.1 0.6 EBIT-Adjusted (loss) 4.1 (0.5) 8.5 0.7 GMF EBT-Adjusted (1.6) (0.2) (2.8) (0.5) Cruise EBIT Loss-Ad
Slide 20: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $40.5 $17.5 $17.3 $38.0 $18.2 $17.2 $17.5 $17.3 $22.3 $20.9 Dec 31, 2020 Jun 30, 2021 Dec 31, 2020 Jun 30, 2021 Available Credit Facilities Senior Unsecured Notes and Other Cash, Cash Equivalents and Marketable Debt S
Slide 21: Updated Full-Year Guidance
Updated Full -Year Guidance Current Prior EBIT-ADJ. $11.5B - $13.5B $10.0B - $11.0B EPS-DILUTED-ADJ. $5.40 - $6.40 $4.50 - $5.25 ADJ. AUTO FREE CASH FLOW $1.0B - $2.0B $1.0B - $2.0B H2 VS. H1 EBIT-ADJ. KEY VARIANCE DRIVERS CURRENT GUIDANCE > Decreased volumes of ~100K units in GMNA > The semiconduct
Slide 22: Summary
Summary Q2 2021 RESULTS WHAT’S TO COME > Generating consistently strong earnings despite > Focus on profitable growth opportunities and new revenue industry-wide challenges, including record EBIT- streams adjusted of $4.1 billion in the second quarter, and $8.5 billion in the first half > Developing
Slide 23: Select Supplemental Financial Information
Select Supplemental Financial Information 2022 Buick Enclave 23
Slide 24: Q2-2021 GAAP Results
Q2-2021 GAAP Results (in $B except where noted) Q2 H1 F/(U) F/(U) 2021 2021 vs. 2020 vs. 2020 Net revenue 34.2 17.4 66.6 17.2 Operating income 2.9 4.1 6.2 6.7 Net income attributed to stockholders 2.8 3.6 5.9 6.3 EPS-diluted ($/share) $1.90 $2.46 $3.93 $4.32 Net cash provided by operating activities
Slide 25: Regional Q2 EBIT-adjusted Performance
Regional Q2 EBIT -adjusted Performance ($B) GMNA ($B) GMI YTD 2021 $2.1 $1.3 $3.6 $3.7 $(5.0) $0.4 $6.0 $(0.8) $(0.0) $0.4 $0.4 $(0.3) $0.6 $0.3 25
Slide 26: Global Deliveries
Global Deliveries (000's) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 North America 794 746 875 765 565 U.S. 688 642 771 665 492 Asia/Pacific, Middle East and Africa 875 880 1,082 903 845 China 751 780 954 771 714 South America 88 118 159 122 57 Brazil 50 75 115 88 40 Global Deliveries – in GM Markets 1
Slide 27: Global Market Share
Global Market Share Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 North America 14.8% 15.7% 17.3% 15.9% 16.0% U.S. 15.2% 16.0% 18.0% 16.6% 16.3% Asia/Pacific, Middle East and Africa 7.7% 7.4% 8.3% 7.9% 8.8% China 11.3% 11.7% 12.1% 11.5% 11.2% South America 9.8% 13.3% 15.2% 14.3% 14.5% Brazil 9.1% 14.2% 16
Slide 28: Reconciliation of EBIT-adjusted
Reconciliation of EBIT -adjusted ($B) Q2 Q1 Q4 Q3 2021 2020 2021 2020 2020 2019 2020 2019 Net income (loss) attributable to stockholders 2.8 (0.8) 3.0 0.3 2.8 (0.2) 4.0 2.4 Income tax expense (benefit) 1.0 (0.1) 1.2 0.4 0.6 (0.2) 0.9 0.3 Automotive interest expense 0.2 0.3 0.3 0.2 0.3 0.2 0.3 0.2 Au
Slide 29: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q2 2021 Q2 2020 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 34.2 — 34.2 16.8 0.03 16.8 Costs and expenses Automotive and other cost of sales 27.3 — 27.3 13.4 (0.1)3 13.4 GM F
Slide 30: EPS-Diluted-adjusted Reconciliation
EPS-Diluted-adjusted Reconciliation Q2 H1 2021 2020 2021 2020 Diluted earnings (loss) per common share $1.90 ($0.56) $3.93 ($0.39) Adjustments1 0.07 0.06 0.06 0.41 Tax effect on adjustments2 — — — (0.05) Tax adjustment3 — — 0.22 0.16 EPS-diluted-adjusted $1.97 ($0.50) $4.21 $0.13 1 See slide 28 for
Slide 31: Effective Tax Rate-adjusted
Effective Tax Rate -adjusted ($B) except where noted Q2 H1 2021 2020 2021 2020 Income Income Income Income Income Income Income Income before Effective before Effective before Effective before Effective tax tax tax tax income tax rate income tax rate income tax rate income tax rate expense expense e
Slide 32: Calculation of ROIC-adjusted
Calculation of ROIC -adjusted ($B) Four quarters ended June 30, 2021 2020 Numerator: EBIT (loss)-adjusted 17.5 3.8 Denominator: Average equity1 49.2 42.8 Add: Average automotive debt and interest liabilities (excluding finance leases) 20.3 23.6 Add: Average automotive net pension & OPEB liability 17
Slide 33: GM Financial - Key Metrics
GM Financial - Key Metrics Q2 2021 Q2 2020 H1 2021 H1 2020 Revenue ($B) 3.4 3.4 6.8 7.0 Total retail originations ($B) 15.0 11.9 29.0 23.4 Retail finance delinquencies (>30 days) 2.0% 3.5% 2.0% 3.5% Annualized net charge-offs as % of average retail 0.4% 1.5% 0.6% 1.6% finance receivables Tangible eq
Slide 34: GM Financial - Return on Equity
GM Financial - Return on Equity Four quarters ended June 30, ($B) 2021 2020 Net income attributable to common shareholder 3.7 1.1 Average equity 13.2 12.1 Less: average preferred equity (1.9) (1.5) Average common equity 11.3 10.6 Less: average goodwill (1.2) (1.2) Average tangible common equity 10.2
Slide 35: Updated 2021 Guidance Reconciliation
Updated 2021 Guidance Reconciliation ($B) Year Ending Dec 31, 2021 Net income attributable to stockholders $7.7 - $9.2 Income tax expense $2.8 - $3.3 Automotive interest expense, net $0.9 Adjustments1 $0.1 EBIT-adjusted $11.5 - $13.5 Year Ending Dec 31, 2021 Diluted earnings per common share $5.12 -
Slide 36: For Additional Information Please Visit
For Additional Information Please Visit: https://investor.gm.com investorrelations@gm.com https://www.gmfinancial.com/en-us/investor-center.html investors@gmfinancial.com GM’s Investor Relations website contains a significant amount of information about GM, including financial and other information
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