General Motors Company · NYSE:GM
General Motors — Q3 2024 Earnings Presentation
41 slides from General Motors's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 Earnings
GMC Sierra Denali EV Edition 1 Enhanced Product Portfolio Driving Strong Performance Q3 2024 Earnings October 22, 2024
Slide 2: Table of Contents
Table of Contents Page 4 Business Update ICE Business Electric Vehicles Software Cruise AV Page 14 2024 Guidance Page 15 Financial Information Page 29 Supplemental Financial Information Chevrolet Corvette ZR1 2
Slide 3: Information Relevant To This Presentation
Cautionary Note on Forward-Looking Statements This communication 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 Information Relevant statements other than statements of historical
Slide 4: Q3 Highlights
Q3 Highlights Separating from the pack with growth from both ICE vehicles and EVs Total company YTD revenue increased #1 in U.S. Total Sales while expanding the Reached #2 in U.S. EV sales for Q3; more than 8% vs. 2023 and 20% over a gap on incentive spend to more than 2 full ~32K units delivered in
Slide 5: Expanding Leadership in Full-Size Trucks and SUVs
Expanding Leadership in Full-Size Trucks and SUVs • 44% full-size truck retail market share year-to-date — #1 in full-size pickups; best year-to-date total sales since 2007 — Best-ever quarter for GMC Sierra total and retail sales • 64% large SUV retail market share year-to-date — #1 in full-size SU
Slide 6: Upcoming Full-Size SUV Launches
Upcoming Full-Size SUV Launches 2025 Chevrolet Tahoe 2025 Chevrolet Suburban 2025 GMC Yukon “Pillar-to-Pillar”55-in diagonal Display 2025 Cadillac Escalade 6 2025 Cadillac Escalade
Slide 7: Vehicle Refresh Strategy Driving Growth
Vehicle Refresh Strategy Driving Growth Introducing Vehicles with Better Margins than Outgoing Models Buick Envista GMC Acadia Chevrolet Trax Chevrolet Traverse Chevrolet Equinox Buick Enclave GMC Terrain 7
Slide 8: Outpacing EV Industry Growth with Lower Incentives
Outpacing EV Industry Growth with Lower Incentives 8.2% 7.4% 6.5% Q1-24 Q2-24 Q3-24 U.S. EVs as Percent of Vehicle Industry1 9.8% 7.1% 6.5% Cadillac LYRIQ Growing EV Market Presence with Incentives ~11 ppts below the industry avg. Q1-24 Q2-24 Q3-24 GM Share of U.S. EV Market1 1GM estimate 8
Slide 9: Upcoming Cadillac EV Launches
Upcoming Cadillac EV Launches 2025 Cadillac ESCALADE IQ 2025 Cadillac OPTIQ 2025 Cadillac VISTIQ 9
Slide 10: Building and Selling Affordable, Desirable EVs
Building and Selling Affordable, Desirable EVs • 2025 Chevrolet Equinox EV: The most affordable EV in the U.S. with 315+ miles of range — Sold more than 15K units in NA in Q3, its first full quarter in the market — LT available now at $34,995 (before $7,500 consumer tax credit) • Next-Gen Bolt EV co
Slide 11: Expect Battery Pack Cost Improvements to Propel EV Margins
Expect Battery Pack Cost Improvements to Propel EV Margins Scale / Ramp >$60/kWh Scale / Ramp Fewer, Larger Modules >$30/kWh & Chemistry >$6000 saved per truck 2023 2024 2025 Gen2 w/LFP Our battery roadmap is only getting better, providing an ongoing tailwind to EV profitability 11
Slide 12: Super Cruise: Expanding Market Presence
Super Cruise: Expanding Market Presence • More roads, and more capability • Increasing Super Cruise availability: — 280 million miles driven with Super Cruise engaged — 22 equipped vehicles currently in Market — Road network expanded to 750K miles in NA — Expect ~380K enabled vehicles on the road by
Slide 13: Cruise: Getting Back on the Road
Cruise: Getting Back on the Road • Operating supervised autonomous driving in three markets and driverless testing in Houston • Accelerated monthly autonomous miles by 3x vs. June • Announced partnership to deploy vehicles on the Uber platform during the first half of 2025 13
Slide 14: CY 2024 Guidance Update
CY 2024 Guidance Update $14-15B $10.00-10.50 $12.5-13.5B EBIT–Adj. EPS–Diluted–Adj. Adj. Auto FCF Previously $13-15B Previously $9.50-$10.50 Previously $9.5-11.5B 19-20% 8-10% $10.5-11.5B ETR-adjusted GMNA EBIT-adj. Margins CapEx + Battery JV Previously 18-20% 14
Slide 15: Financial Information
Financial Information Chevrolet Corvette ZR1 15
Slide 16: Third Quarter Financial Highlights
Third Quarter Financial Highlights $48.8B $4.1B $5.8B Revenue EBIT–Adj. Adj. Auto FCF 1,033K 8.4% $2.96 Wholesale Units EBIT-Adj. Margin EPS-Diluted-Adj. 16
Slide 17: Third Quarter Performance
Third Quarter Performance EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 • $0.68 (~30%) YoY increase in EPS-diluted- adjusted largely driven by ~247M (~18%) lower diluted weighted-average common shares from ASR execution and open market repurchases • EPS-d
Slide 18: Third Quarter EBIT-Adjusted ($B)
Third Quarter EBIT-Adjusted ($B) • GMNA strong core auto operating performance • Lower GMI driven by $0.3B YoY decrease in driven by higher volume due to robust customer China equity income demand, and strong pricing, partially offset by lower mix driven by higher EVs and higher warranty • Lower Cru
Slide 19: Third Quarter EBIT-Adjusted Performance ($B)
Third Quarter EBIT-Adjusted Performance ($B) GMNA: 83K China Auto JV $(0.3)B GMI: (31)K Fx and Other $(0.2)B VOLUME/MIX PRICE COST Higher volume driven by full-size and mid- Largely driven by mid-size SUV strong YoY change driven by $0.7B higher warranty size ICE pickup trucks, partially offset by E
Slide 20: GMNA Performance
GMNA Performance Q3'24 NET REVENUE ($B) EBIT-ADJ. ($B) • Best Quarter Revenue on record • Best Q3 YTD EBIT Adj. $12.3B ~$50K U.S. ATP • With incentives ~2.4 ppts below U.S. industry average ~0.5 ppts of U.S. Retail Market U.S. DEALER INVENTORY (000’S)1 U.S. EV SALES (000’S) Share Gain YoY • Driven b
Slide 21: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) WHOLESALES (000’S) HIGHLIGHTS Consistently strong sequential results driven by strong performance in Brazil and a focus on strengthening profitability across markets 21
Slide 22: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 WHOLESALES (000’S)1 HIGHLIGHTS Equity Income loss driven by intense competition in challenging market conditions, partially mitigated by proactive measures to optimize inventory levels through production control 1 China Auto JV Net R
Slide 23: Cruise
Cruise ($B) Q3 YTD Financial Performance 2023 2024 2023 2024 Revenue1 0.0 0.0 0.1 0.1 EBIT (loss)-adjusted (0.7) (0.4) (1.9) (1.3) Cash used in operating activities (0.5) (0.5) (1.4) (1.8) Cash, cash equivalents and marketable securities2,3,4 1.7 0.7 1.7 0.7 $0.3B YoY expense decrease driven by cost
Slide 24: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) LIQUIDITY ($B) HIGHLIGHTS x x x x x EBT-Adjusted results stable with expected moderation in credit performance and used vehicle prices partially offset by improved retail loan yield and earning asset growth Sufficient capital and ample liquid
Slide 25: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q3 YTD ($B) 2023 2024 2023 2024 Net Income 3.0 3.0 7.8 8.8 Income tax and net automotive interest expense 0.4 0.6 1.3 2.2 EBIT adjustments1 0.1 0.4 1.3 1.3 Net loss (income) attributable to noncontrolling interests 0.1 0.0 0.2 0.1 EBIT-adjusted 3.6 4.1 10.6 12.4 GM
Slide 26: Automotive Liquidity and Debt
Automotive Liquidity and Debt • Strong liquidity supported by $12.2B Adj. Auto Free Cash Flow generated YTD. • Auto cash generation driven by core business performance, improved working capital and consistent GMF dividends. 26
Slide 27: Regional Q3 EBIT-Adjusted Performance ($B)
Regional Q3 EBIT-Adjusted Performance ($B) GMNA GMI $10.3 $2.7 $(1.7) $1.0 $0.4 $(0.4) 12.3 $0.9 $(0.4) $0.0 $0.1 $0.0 $(0.7) 0.1 Year to Date 2024 Year to Date 2024 27
Slide 28: Summary
Summary Q3'24 Results What’s to Come • Ongoing strength of core auto business driving consistent • Remain disciplined on inventory management and incentive financial performance. #1 in total U.S. sales, #1 in FSPU and spend, supported by our strategic portfolio of products #1 in FSSUV. With incentiv
Slide 29: Supplemental Financial Information
Supplemental Financial Information Chevrolet Suburban 29
Slide 30: Third Quarter GAAP Results
Third Quarter GAAP Results Q3 YTD All amounts in $B except EPS-diluted 2023 2024 2023 2024 Net revenue 44.1 48.8 128.9 139.7 Operating income 3.0 3.7 8.4 11.3 Net income attributed to stockholders 3.1 3.1 8.0 9.0 Net income margin 6.9% 6.3% 6.2% 6.4% EPS-diluted ($/share) $2.20 $2.68 $5.72 $7.77 Net
Slide 31: Global Deliveries
Global Deliveries (000's) Q3 2023 Q4 2023 CY 2023 Q1 2024 Q2 2024 Q3 2024 North America 796 747 3,055 709 827 790 U.S. 674 625 2,595 594 696 660 Asia/Pacific, Middle East and Africa 701 735 2,675 554 575 576 China 542 569 2,099 441 373 426 South America 120 121 456 84 110 110 Brazil 87 92 328 57 82
Slide 32: Global Market Share
Global Market Share Q3 2023 Q4 2023 CY 2023 Q1 2024 Q2 2024 Q3 2024 North America 15.8% 15.1% 15.6% 15.0% 15.9% 15.9% U.S. 16.5% 15.5% 16.2% 15.4% 16.6% 16.5% Asia/Pacific, Middle East and Africa 5.8% 5.7% 5.7% 5.0% 4.5% 4.8% China 8.3% 7.9% 8.4% 7.8% 6.3% 6.5% South America 12.2% 11.9% 12.2% 10.2%
Slide 33: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT-Adjusted ($B) Q4 Q1 Q2 Q3 2022 2023 2023 2024 2023 2024 2023 2024 Net income attributable to stockholders 2.0 2.1 2.4 3.0 2.6 2.9 3.1 3.1 Income tax expense (benefit) 0.6 (0.9) 0.4 0.8 0.5 0.8 0.5 0.7 Automotive interest expense 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Automotive inter
Slide 34: Impact of Special Items on GAAP Reported Earnings - Q3
Impact of Special Items on GAAP Reported Earnings - Q3 ($B) Q3 2023 Q3 2024 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 44.1 — 44.1 48.8 — 48.8 Costs and expenses 5 2,3,4 Automotive and other cost of sales 35.8 (0.0) 35.8 39.0 (0
Slide 35: EPS-Diluted-Adjusted Reconciliation
EPS-Diluted-Adjusted Reconciliation Q3 YTD 2023 2024 2023 2024 Diluted earnings per common share $2.20 $2.68 $5.72 $7.77 Adjustments1 0.09 0.37 0.91 1.11 Tax effect on adjustments2 (0.02) (0.08) (0.23) (0.25) EPS-diluted-adjusted $2.28 $2.96 $6.40 $8.63 1 See slide 33 for description of adjustments.
Slide 36: Effective Tax Rate-Adjusted
Effective Tax Rate-Adjusted ($B) Q3 YTD 2023 2024 2023 2024 Income Income Income Income Effective Income Income Effective before Income Effective before Income Effective before before tax tax tax income tax income expense tax rate income expense tax rate income taxes expense tax rate taxes expense t
Slide 37: Calculation of ROIC-Adjusted
Calculation of ROIC-Adjusted ($B) Four quarters ended September 30, 2023 2024 Numerator: EBIT-adjusted 14.4 14.2 Denominator: Average equity1 72.8 69.5 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.6 16.3 Add: Average automotive net pension & OPEB liability 7.5
Slide 38: GM Financial – Key Metrics
GM Financial – Key Metrics Q3 YTD 2023 2024 2023 2024 Revenue ($B) 3.6 4.0 10.5 11.8 EBT-Adjusted ($B) 0.7 0.7 2.3 2.2 Total retail originations ($B) 13.8 14.2 40.5 40.5 Retail finance delinquencies (>30 days) 2.7% 3.1% 2.7% 3.1% Annualized net charge-offs as % of average retail finance receivables
Slide 39: GM Financial – Return on Equity
GM Financial – Return on Equity Four quarters ended September 30, ($B) 2023 2024 Net income attributable to common shareholder 2.2 2.1 Average equity 15.4 15.7 Less: average preferred equity (2.0) (2.0) Average common equity 13.4 13.7 Less: average goodwill and intangible assets (1.2) (1.2) Average
Slide 40: 2024 Guidance Reconciliation
2024 Guidance Reconciliation ($B) Year Ending Dec 31, 2024 Previously Reported Updated Net income attributable to stockholders $10.0 - $11.4 $10.4 - $11.1 Income tax expense $2.2 - $2.8 $2.4 - $2.7 Automotive interest income, net $(0.1) $(0.1) Adjustments1 $0.9 $1.3 EBIT-adjusted $13.0 - $15.0 $14.0
Slide 41: 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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