General Motors Company · NYSE:GM
General Motors — Q4 2022 Earnings Presentation
49 slides from General Motors's earnings presentation, Jan 31, 2023
Slide 1: Strong Performance Drives our Transformation
Strong Performance Drives our Transformation Q4 2022 Earnings January 31, 2023
Slide 2: Table of Contents
Table of Contents Page 4 Highlights ICE Portfolio Optimization EV Acceleration New Business Growth Page 15 2023 Guidance Page 16 Investor Day KPI Summary Page 17 Long-Term Investment Opportunity Page 18 Financial Information 2
Slide 3: 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 Information statements are any statements other than statements of historical fact. For
Slide 4: 2022 Highlights
2022 Highlights Delivering strong performance while accelerating our transformation U.S. Market Leader Opened Ultium Cells JV #1 in total sales Record Chevrolet Bolt EV and battery plant in Warren, OH; #1 in full-size pickup trucks Bolt EUV deliveries; best-selling Spring Hill, TN opening in mid-202
Slide 5: Extending Truck Leadership
Extending Truck Leadership 2022 Highlights • Third consecutive year of full-size truck leadership • Ninth consecutive year of combined full-size and midsize pickup truck leadership • Investments in HD manufacturing capacity and new premium and off-road models create growth and support strong pricing
Slide 6: Strategic Investment in Four U.S. Facilities for V-8 and EV Components
Strategic Investment in Four U.S. Facilities for V-8 Engine Production and EV Components • Strengthens industry-leading full-size truck and SUV business, and supports growing EV portfolio • More than $850 million to build the sixth generation Small Block V-8 engine family, which will deliver greater
Slide 7: GMC: Industry's Most Successful Premium Truck Brand
GMC: Industry’s Most Successful Premium Truck Brand • GMC #1 premium truck brand in 2022: 46% of retail sales in Denali or AT4 trims • Record U.S. retail market share at 3.8% and highest-ever ATP bolstered by record Sierra HD segment share (J.D. Power) • From Sierra EV Denali to the GMC HUMMER EV Pi
Slide 8: Entering Phase 2 of Our EV Acceleration
Entering Phase 2 of Our EV Acceleration GM will offer the most EV choices, with nine models on sale in 2023 in popular segments at multiple price points • In market: BrightDrop Zevo 600, Cadillac LYRIQ, GMC HUMMER EV pickup, Chevrolet Bolt EV and Bolt EUV • H1 2023 launch: Chevrolet Silverado EV WT,
Slide 9: Corvette E-Ray
Corvette E-Ray The first electrified, all-wheel-drive Corvette 0-60 mph in Late eAWD technology 2.5 sec. 2023 All-season traction Battery-only operation in launch combined with electrification city driving up to 45 mph in “stealth mode” 9
Slide 10: New Investment to Develop Largest Source of Lithium in U.S.
New Investment to Develop Largest Source of Lithium in U.S. • GM will jointly invest with Lithium Americas develop Thacker Pass in Nevada, the largest known supply of lithium in the U.S., and 3rd largest in the world • Investment of $650 million, the largest by an automaker for EV battery raw materi
Slide 11: Securing EV Supply Chain Through the End of the Decade
Securing EV Supply Chain Through the End of the Decade Executed a term sheet for Strategic investment in New agreement created Agreements expected to the long-term supply of Queensland Pacific Metals between Ultium Cells JV support EV eligibility for battery grade nickel sulfate of Australia to secu
Slide 12: Ultium Charging Infrastructure Continues to Grow
Ultium Charging Infrastructure Continues to Grow • First installations for dealer community charging program took place in Michigan and Wisconsin in Q4 with the program set to expand to Buick, GMC and Cadillac dealers in Q1 • Engineering and construction has begun for highway charging project with P
Slide 13: BrightDrop Starts Production and Extends to Canada
BrightDrop Starts Production and Extends to Canada • Canada’s first large-scale EV plant, converted from ICE to EV production in just seven months and ahead of company’s two-year anniversary • DHL Express Canada added to existing customer portfolio, which includes Verizon, FedEx, Walmart and Kroger
Slide 14: Cruise: AV Commercialization and Rapid Scaling
Cruise: AV Commercialization and Rapid Scaling • Delivered on our commitment to expand Cruise beyond San Francisco by the end of 2022 • Achieved first commercial driverless rides in Phoenix and Austin, less than 90 days after announcement • Continued expansion in San Francisco area of coverage and h
Slide 15: CY 2023 Guidance
CY 2023 Guidance Expect to drive consistently strong core auto operating performance in 2023 2023 vs 2022 Expected Key Variance Drivers $10.5-12.5B $6.00-$7.00 • ~$1.5B normalization of GMF EBT • ~$1B lower pension income; non-cash impact EBIT–adj. EPS–diluted–adj. Other 2023 Assumptions • 15M U.S.
Slide 16: Summary of 2023-2025 KPIs
Summary of 2023-2025 KPIs Total Revenue of $225B+ in 2025 GMNA EBIT-adjusted margins of Total capital spending of Company (~12% CAGR) ~8-10% through 2025 ~$11-13B per year through 2025 400K EV production EV portfolio at a low EV revenue of units from 2022 – H1 2024 Cell cost of EV to mid-single digi
Slide 17: Long-Term Investment Opportunity
Long-Term Investment Opportunity Attractive ~50% revenue CAGR Expect margin expansion Revenue Expect to double company in software and new Strong core auto business to 12%-14% by 2030 with Growth & revenue to $275B-$315B businesses by 2030 while target revenue CAGR of new businesses margins Margin b
Slide 18: Financial Information
Financial Information 18
Slide 19: CY 2022 Financial Highlights
CY 2022 Financial Highlights $156.7B $14.5B $10.5B Revenue EBIT–adj. Adj. Auto FCF 3,579K 9.2% 16.0% Wholesale units EBIT-adj. Margin U.S. Market Share 19
Slide 20: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights $43.1B $3.8B $4.5B Revenue EBIT–adj. Adj. Auto FCF 966K 8.8% 16.8% Wholesale units EBIT-adj. Margin U.S. Market Share 20
Slide 21: CY 2022 Performance
CY 2022 Performance EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN EPS-DILUTED-ADJ.1 EBIT-ADJ.1 & EBIT-ADJ. MARGIN1 Outstanding results driven by wholesale volume growth and robust pricing across the portfolio, 9.2% partially offset by mix normalization, commodity 11.3% costs, and GMF EBT lower than CY’21 $7.
Slide 22: CY 2022 EBIT-adjusted ($B)
CY 2022 EBIT-adjusted ($B) CY-2021 CY-2022 $14.3 $14.5 $13.0 $10.3 $5.0 $4.1 $0.8 $1.1 $(1.2) $(0.7) $(1.9) $(1.8) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA ~27% YoY wholesale volume increase YoY difference in Corporate driven by due to improved semiconductor availability GMF capita
Slide 23: CY 2022 EBIT-adjusted Performance ($B)
CY 2022 EBIT-adjusted Performance ($B) GM Financial: $(1.0) GMNA: 618K China Auto JV: $(0.4) GMI: 102K Other Investments: $(0.8)1 $8.5 $8.6 $14.3 $14.5 $(5.3) $(9.1) $(2.5) CY-2021 Volume Mix Price Cost Other CY-2022 VOLUME/MIX PRICE COST Greater semiconductor availability drove Pricing dynamics con
Slide 24: Fourth Quarter Performance
Fourth Quarter Performance EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN EPS-DILUTED-ADJ.1 EBIT-ADJ.1 & EBIT-ADJ. MARGIN1 Strong results driven by wholesale volume growth and robust pricing across the portfolio, 8.8% partially offset by mix normalization, commodity 8.5% costs, and GMF EBT lower than Q4’21 $2
Slide 25: Fourth Quarter EBIT-adjusted ($B)
Fourth Quarter EBIT-adjusted ($B) Q4-2021 Q4-2022 $3.7 $3.8 $2.8 $2.2 $1.2 $0.8 $0.3 $0.3 $(0.3) $(0.5) $(0.4) $(0.4) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA EBIT-adj improvement of ~$1.5B YoY GMF EBT $(0.4)B primarily due to lower driven by more than 200K additional wholesale net
Slide 26: Fourth Quarter EBIT-adjusted Performance ($B)
Fourth Quarter EBIT-adjusted Performance ($B) GMNA: 208K GM Financial: $(0.4) GMI: 17K FX/Other: $(0.2) $2.9 $2.5 $3.8 $(1.9) $2.8 $(2.1) $(0.6) Q4-2021 Volume Mix Price Cost Other Q4-2022 VOLUME/MIX PRICE COST Greater semiconductor availability drove Pricing environment remained favorable Cost incr
Slide 27: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 579 694 662 783 787 8.1% 10.7% 8.0% 11.2% 10.3% ~$35.5B Best quarterly revenue on record $34.7 $35.5 $3.9 $26.9 $29.5 $28.8 $3.1 $3.7 $2.2 $2.3 ~$51K Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Record GM U.S. ATP (CY’22) Wholesales (00
Slide 28: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) 2.8% 7.8% 1.6% $4.0 $4.3 0.9% 0.1% $3.5 $3.3 $3.8 $0.0 $0.3 $0.1 $0.0 $0.1 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 EBIT-Adj. margin fron GMI ex China El WHOLESALES (000’S) Q4’22 HIGHLIGHTS EBIT-adjusted highe
Slide 29: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B) EQUITY INCOME ($B) 5.6% 6.4% 3.3% 4.3% (3.4)% $13.6 $0.3 $9.0 $10.4 $10.4 $0.2 $0.2 $0.2 $6.1 $(0.1) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Total China Auto JV NI/Rev WHOLESALES (000’S) Q4’22 HIGHLIGHTS 1,007 Equity income down CY an
Slide 30: Cruise
Cruise ($B) Q4 YTD Financial Performance 2022 2021 2022 2021 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted2 (0.5) (0.3) (1.9) (1.2) Cash used in operating activities (0.5) (0.4) (1.8) (1.2) Cash, cash equivalents and marketable securities3 2.9 3.1 2.9 3.1 Increased Cruise expense driven by operational expa
Slide 31: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 32.6% 32.0% 44.9% 46.1% 44.6% 42.9% 39.7% 29.0% 27.9% 25.1% $1.2 $1.3 $102.8 $103.5 $104.2 $106.7 $109.3 $1.1 $0.9 $0.8 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Return on Average Tangible Common Equity GMF as % of GM U.S. R
Slide 32: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q4 YTD ($B) 2022 2021 2022 2021 Net Income 2.0 1.8 9.7 9.9 Income tax and net automotive interest expense 0.6 0.7 2.4 3.6 1 EBIT adjustments 1.2 0.4 2.1 0.7 Net loss (income) attributable to noncontrolling interests (0.0) (0.0) 0.2 0.1 EBIT-adjusted 3.8 2.8 14.5 14
Slide 33: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT AND $39.5 UNDER(OVER)FUNDED PENSION ($B) $36.8 $21.9 $20.8 $15.1 $4.8 $3.1 $15.2 $16.8 $17.8 $21.6 $24.4 $0.3 $(0.1) Dec 31, 2021 Dec 31, 2022 Dec 31, 2021 Dec 31, 2022 Available Credit Facilities U.S. Pension Senior Unsec
Slide 34: Summary
Summary Q4’22 and CY’22 Results What’s to Come • Outstanding financial performance driven by improved • Core auto business to remain robust in CY’23 core auto business • Entering phase 2 of our EV transformation • Strong free cash flow generation continues to fund our EV and growth investments • Ult
Slide 35: Fourth Quarter and CY 2022 GAAP Results
Fourth Quarter and CY 2022 GAAP Results Q4 YTD All amounts in $B except EPS-diluted 2022 2021 2022 2021 Net revenue 43.1 33.6 156.7 127.0 Operating income 2.6 1.5 10.3 9.3 Net income attributed to stockholders 2.0 1.7 9.9 10.0 Net income margin 4.6% 5.2% 6.2% 7.9% EPS-diluted ($/share) $1.39 $1.16 $
Slide 36: Regional Q4 EBIT-adjusted Performance ($B)
Regional Q4 EBIT-adjusted Performance ($B) GMNA GMI $0.4 $2.9 $2.1 $3.7 $0.1 $2.2 $(1.2) $(0.1) $0.3 $0.1 $(0.4) $0.3 $(2.2) $(0.2) Q4-2021 Volume Mix Price Cost Other Q4-2022 Q4-2021 Volume Mix Price Cost Other Q4-2022 $10.3 $8.2 $(5.5) $7.1 $(6.9) $(0.1) $13.0 $0.8 $0.4 $0.2 $1.4 $(1.1) $(0.6) $1.
Slide 37: Global Deliveries
Global Deliveries (000's) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 North America 729 663 687 601 511 U.S. 623 556 582 513 441 Asia/Pacific, Middle East and Africa 697 746 626 736 851 China 576 630 484 613 737 South America 125 130 107 90 118 Brazil 88 88 66 50 81 Global Deliveries – in GM Markets 1,5
Slide 38: Global Market Share
Global Market Share Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 North America 16.2% 15.5% 15.6% 14.7% 12.5% U.S. 16.8% 15.9% 16.2% 15.1% 13.0% Asia/Pacific, Middle East and Africa 6.2% 6.6% 6.4% 6.7% 7.3% China 9.2% 9.9% 9.5% 10.7% 11.1% South America 12.9% 13.0% 11.8% 11.3% 12.7% Brazil 14.6% 15.0% 12.
Slide 39: Reconciliation of EBIT-adjusted
Reconciliation of EBIT-adjusted ($B) Q4 Q3 Q2 Q1 2022 2021 2022 2021 2022 2021 2022 2021 Net income attributable to stockholders 2.0 1.7 3.3 2.4 1.7 2.8 2.9 3.0 Income tax expense (benefit) 0.6 0.5 0.8 0.2 0.5 1.0 (0.0) 1.2 Automotive interest expense 0.3 0.2 0.3 0.2 0.2 0.2 0.2 0.3 Automotive inter
Slide 40: Impact of Special Items on GAAP Reported Earnings – CY
Impact of Special Items on GAAP Reported Earnings – CY ($B) CY 2022 CY 2021 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 156.7 — 156.7 127.0 — 127.0 Costs and expenses Automotive and other cost of sales 126.9 (0.7)1,2 126.2 100.5
Slide 41: Impact of Special Items on GAAP Reported Earnings – Q4
Impact of Special Items on GAAP Reported Earnings – Q4 ($B) Q4 2022 Q4 2021 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 43.1 — 43.1 33.6 — 33.6 Costs and expenses Automotive and other cost of sales 34.6 — 34.6 27.5 (0.4)4,5 27.0
Slide 42: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q4 YTD 2022 2021 2022 2021 Diluted earnings per common share $1.39 $1.16 $6.13 $6.70 Adjustments1 0.82 0.30 1.46 0.47 Tax effect on adjustments2 (0.09) (0.04) (0.29) (0.07) Tax adjustments3 — (0.07) (0.33) (0.03) Deemed dividend adjustment4 — — 0.63 — EPS-diluted-
Slide 43: Effective Tax Rate-adjusted
Effective Tax Rate-adjusted ($B) Q4 YTD 2022 2021 2022 2021 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 expense expense taxe
Slide 44: Calculation of ROIC-adjusted
Calculation of ROIC-adjusted ($B) Four quarters ended December 31, 2022 2021 Numerator: EBIT-adjusted 14.5 14.3 Denominator: Average equity1 66.6 56.5 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.6 17.1 Add: Average automotive net pension & OPEB liability 9.4 1
Slide 45: GM Financial – Key Metrics
GM Financial – Key Metrics Q4 2022 Q4 2021 CY 2022 CY 2021 Revenue ($B) 3.3 3.2 12.8 13.4 EBT-Adjusted ($B) 0.8 1.2 4.1 5.0 Total retail originations ($B) 11.8 10.2 49.2 50.9 Retail finance delinquencies (>30 days) 2.8% 2.4% 2.8% 2.4% Annualized net charge-offs as % of average retail 0.9% 0.6% 0.7%
Slide 46: GM Financial – Return on Equity
GM Financial – Return on Equity Years ended December 31, ($B) 2022 2021 Net income attributable to common shareholder 3.0 3.7 Average equity 14.9 14.4 Less: average preferred equity (2.0) (2.0) Average common equity 13.0 12.4 Less: average goodwill (1.2) (1.2) Average tangible common equity 11.8 11.
Slide 47: 2023 Guidance
2023 Guidance ($B) Year Ending Dec 31, 2023 Net income attributable to stockholders $8.7-$10.1 Income tax expense $1.6 - $2.2 Automotive interest expense, net $0.2 EBIT-adjusted $10.5 - $12.5 Year Ending Dec 31, 2023 Diluted earnings per common share $6.00 - $7.00 EPS-diluted adjusted $6.00- $7.00 (
Slide 48: 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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General Motors Company — Q4 2022 Earnings Presentation on 6ix