General Motors Company · NYSE:GM
General Motors — Q1 2023 Earnings Presentation
44 slides from General Motors's earnings presentation, Apr 25, 2023
Slide 1: Delivering on our Commitments: Q1 2023 Earnings
Delivering on our Commitments Q1 2023 Earnings April 25, 2023
Slide 2: Table of Contents
Table of Contents Page 04 Highlights ICE Portfolio Optimization EV Acceleration New Business Growth Page 14 2023 Guidance Page 15 Summary of 2023-2025 KPIs Page 16 Long-Term Investment Opportunity Page 17 Financial Information Page 31 Supplemental 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: Q1'23 Highlights
Q1’23 Highlights Delivering strong performance with intense focus on operational excellence Strong start to 2023 with Grew U.S. market share by 1.3 pts (est.) Achieved EBIT-Adj. of $3.8B; raising YoY – the most in the industry – with No. 1 in fleet sales full-year guidance continued strong pricing i
Slide 5: ICE Launches Grow Sales, Share and Business Performance
ICE Launches Grow Sales, Share and Business Performance Refreshed Truck Portfolio New, Affordable SUVs • HD Pickups: Top trim levels comprise 52% of orders • Many brands scaled back on affordable vehicles for Chevrolet Silverado, 30% for GMC Sierra – Chevrolet and Buick are moving in with new SUVs •
Slide 6: Industry Leadership in Commercial Market
Industry Leadership in Commercial Market • Growth driven by industry-leading full-size pickups, SUVs and midsize pickups • EVs add momentum to commercial sales: Chevrolet Silverado EV and BrightDrop Zevo 600 launching with strong demand 27% # 1 # 1 YoY fleet sales increase, driven by in total fleet
Slide 7: Expanding Battery Cell Production for EV Growth
Expanding Battery Cell Production for EV Growth Ultium Cells LLC Ramping U.S. Cell Production • Battery cell production continues to rise at Ultium Cells in Ohio; planning to reach full capacity at the end of the year • Learnings from the Ohio launch are being applied to our next two cell plants und
Slide 8: Further Expansion of U.S. Cell Production
Further Expansion of U.S. Cell Production • Announced a new multi billion dollar investment • Plant capacity projected to be more than to build our fourth U.S. battery cell plant 30 GWh • New agreement with Samsung SDI to further • Production slated to begin in early-2026, expand cell production and
Slide 9: 2023: Breakout Year for the Ultium Platform
2023: Breakout Year for the Ultium Platform EV launches in multiple segments and price points • Midsize EVs: Chevrolet Blazer EV and Equinox EV • Luxury: Cadillac LYRIQ and CELESTIQ • Full-Size Trucks and SUVs: GMC HUMMER EV Pickup and new SUV, Chevrolet Silverado EV • Commercial Trucks: BrightDrop
Slide 10: Chevrolet: High-Volume EVs Launching in the Most Popular Segments
Chevrolet: High-Volume EVs Launching in the Most Popular Segments • Silverado EV: Deliveries set to begin in late-Q2 to our first ~340 fleet customers, one-third of which are on the west coast; production ramping up in H2 • Blazer EV: Launching this summer • Equinox EV: Launching this fall, position
Slide 11: Leadership in Safe Deployment of ADAS and AV
Leadership in Safe Deployment of ADAS and AV Super Cruise Ultra Cruise Cruise L2 L2 L4 • First true hands-free driving- • Next-generation ADAS • All-electric, self-driving car assistance technology for designed to enable hands-free service currently operating compatible roads driving in 95% of all d
Slide 12: Cruise: Executing on Rapid Scaling Throughout 2023
Cruise: Executing on Rapid Scaling Throughout 2023 • San Francisco complex urban environment AV learnings proving beneficial for rapid operational expansion • First million fully driverless miles took 15 months to achieve, while the following half-million took ~90 days • Completing > 1,000 driverles
Slide 13: BrightDrop: Production and Deliveries Ramping Up
BrightDrop: Production and Deliveries Ramping Up • After successful conversion of the CAMI facility in Canada from ICE to EV, production of BrightDrop's electric vans have started to scale • Zevo 600 deliveries started to take place in Q1’23, fulfilling existing customer reservations • Ryder has bee
Slide 14: Raising CY 2023 Guidance
Raising CY 2023 Guidance Expect to drive consistently strong core auto operating performance in 2023 $11-13B $6.35-$7.35 $5.5-7.5B EBIT–adj. EPS–diluted–adj. Adj. Auto FCF Previously $10.5-12.5B Previously $6.00-$7.00 Previously $5-7B 8-10% $11-13B 16-18% GMNA EBIT-adj. margins Capital spend ETR-adj
Slide 15: 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 16: Long-Term Investment Opportunity
Long-Term Investment Opportunity ~50% revenue CAGR Attractive Expect margin expansion Expect to double company in software and new Strong core auto business Revenue to 12-14% by 2030 with revenue to $275-315B businesses by 2030 while target revenue CAGR of Growth & Margin new businesses margins by 2
Slide 17: Financial Information
Financial Information 17
Slide 18: First Quarter Financial Highlights
First Quarter Financial Highlights $40.0B $3.8B $(0.1)B Revenue EBIT–adj. Adj. Auto FCF 864K 9.5% 16.4% Wholesale units EBIT-adj. Margin U.S. Market Share 18
Slide 19: First Quarter Performance
First Quarter Performance EPS-DILUTED-ADJ.1 EBIT-ADJ.1 & EBIT-ADJ. MARGIN1 EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN Strong start to the year with core auto business 11.2% up $0.5B YoY, more than offset by normalizing 9.5% GMF EBT, and higher Cruise expense $2.21 $2.09 EPS-diluted-adjusted includes $0.03
Slide 20: First Quarter EBIT-adjusted ($B)
First Quarter EBIT-adjusted ($B) Q1-2022 Q1-2023 $4.0 $3.8 $3.6 $3.1 $1.3 $0.8 $0.3 $0.3 $(0.3) $(0.4) $(0.3) $(0.6) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA and GMI ex. China improved core auto Lower GMF EBT and higher Cruise business performance driven by strong pricing expenses
Slide 21: First Quarter EBIT-adjusted Performance ($B)
First Quarter EBIT-adjusted Performance ($B) GMNA: 29K GM Financial: $(0.5) GMI: 4K China EI: $(0.2) $1.6 $0.4 $4.0 $3.8 $(1.4) $(0.0) $(0.7) Q1-2022 Volume Mix Price Cost Other Q1-2023 VOLUME/MIX PRICE COST Increased YoY volumes as supply chain Benefit of pricing actions taken during Cost increase
Slide 22: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 694 662 783 787 723 10.7% 11.2% 10.3% 10.9% $32.9B 8.0% Best Q1 revenue on record $34.7 $35.5 $32.9 $3.9 $29.5 $28.8 $3.1 $3.7 $3.6 $2.3 10.9% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 GMNA EBIT-adj. margin Wholesales (000's) EBIT-Ad
Slide 23: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) 7.8% 7.1% $4.3 2.8% 0.1% 1.6% $3.8 $4.0 $3.7 $3.3 $0.3 $0.3 $0.1 $0.0 $0.1 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 EBIT-Adj. margin from GMI ex China El WHOLESALES (000’S) Q1’23 HIGHLIGHTS EBIT-adjusted up ~$
Slide 24: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B) EQUITY INCOME ($B) 5.6% 6.4% 4.3% 2.1% $0.3 (3.4)% $9.0 $10.4 $10.4 $0.2 $0.2 $6.1 $5.8 $0.1 $(0.1) Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Total China Auto JV NI/Rev WHOLESALES (000’S) Q1’23 HIGHLIGHTS 768 796 Equity income down ~$(0
Slide 25: Cruise
Cruise ($B) Q1 Financial Performance 2022 2023 Revenue1 0.03 0.03 EBIT-adjusted2 (0.33) (0.56) Cash used in operating activities (0.31) (0.51) Cash, cash equivalents and marketable securities3 4.12 2.47 Increased Cruise expenses in line with expectations during rapid operational scaling 1 Primarily
Slide 26: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 32.9% 46.1% 44.6% 42.9% 45.9% 29.0% 27.9% 39.7% 25.1% 21.5% $1.3 $103.5 $104.2 $106.7 $109.3 $110.2 $1.1 $0.9 $0.8 $0.8 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Return on Average Tangible Common Equity GMF as % of GM U.S. R
Slide 27: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q1 ($B) 2022 2023 Net Income 2.8 2.3 Income tax and net automotive interest expense 0.1 0.4 1 EBIT adjustments 1.0 1.0 Net loss (income) attributable to noncontrolling interests 0.1 0.0 EBIT-adjusted 4.0 3.8 GMF EBT-adjusted (1.3) (0.8) Cruise EBIT loss-adjusted 0.
Slide 28: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT Renewed the total borrowing capacity of $39.5 our revolving credit facilities, bringing our $34.9 total Automotive borrowing capacity to $14.1 billion $15.1 $13.5 Successfully negotiated more favorable terms to credit faci
Slide 29: Regional Q1 EBIT-adjusted Performance ($B)
Regional Q1 EBIT-adjusted Performance ($B) GMNA GMI $0.3 $1.3 $0.3 $3.6 $3.1 $(0.2) $0.0 $0.0 $(1.0) $0.3 $0.3 $(0.1) $(0.1) $(0.2) Q1-2022 Volume Mix Price Cost Other Q1-2023 Q1-2022 Volume Mix Price Cost Other Q1-2023 29
Slide 30: Summary
Summary Q1’23 Results What’s to Come • Ongoing strength of core auto business driving robust • Continue to execute with intense focus on operational financial performance excellence and cost reduction • EBIT-Adj. guidance raised to $11-13B • Core auto business to remain strong • Highest ever Q1 GMNA
Slide 31: Supplemental Financial Information
Supplemental Financial Information 31
Slide 32: First Quarter GAAP Results
First Quarter GAAP Results Q1 All amounts in $B except EPS-diluted 2023 2022 Net revenue 40.0 36.0 Operating income 2.6 2.2 Net income attributed to stockholders 2.4 2.9 Net income margin 6.0% 8.2% EPS-diluted ($/share) $1.69 $1.35 Net cash provided by operating activities 3.1 2.1 32
Slide 33: Global Deliveries
Global Deliveries (000's) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 North America 707 729 663 687 601 U.S. 603 623 556 582 513 Asia/Pacific, Middle East and Africa 572 697 746 626 736 China 462 576 630 484 613 South America 105 125 130 107 90 Brazil 71 88 88 66 50 Global Deliveries – in GM Markets 1,3
Slide 34: Global Market Share
Global Market Share Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 North America 15.8% 16.2% 15.5% 15.6% 14.7% U.S. 16.4% 16.8% 15.9% 16.2% 15.1% Asia/Pacific, Middle East and Africa 5.3% 6.2% 6.6% 6.4% 6.7% China 9.0% 9.2% 9.9% 9.5% 10.7% South America 12.4% 12.9% 13.0% 11.8% 11.3% Brazil 15.1% 14.6% 15.0
Slide 35: Reconciliation of EBIT-adjusted
Reconciliation of EBIT-adjusted ($B) Q1 Q4 Q3 Q2 2023 2022 2022 2021 2022 2021 2022 2021 Net income attributable to stockholders 2.4 2.9 2.0 1.7 3.3 2.4 1.7 2.8 Income tax expense (benefit) 0.4 (0.0) 0.6 0.5 0.8 0.2 0.5 1.0 Automotive interest expense 0.2 0.2 0.3 0.2 0.3 0.2 0.2 0.2 Automotive inter
Slide 36: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q1 2023 Q1 2022 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 40.0 — 40.0 36.0 — 36.0 Costs and expenses Automotive and other cost of sales 32.2 (0.7)1 31.5 29.4 (0.7)3,4 28.6
Slide 37: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q1 2023 2022 Diluted earnings per common share $1.69 $1.35 Adjustments1 $0.69 0.65 Tax effect on adjustments2 $(0.17) (0.20) Tax adjustments3 — (0.33) Deemed dividend adjustment4 — 0.62 EPS-diluted-adjusted $2.21 $2.09 1 See slide 35 for description of adjustments
Slide 38: Effective Tax Rate-adjusted
Effective Tax Rate-adjusted ($B) Q1 2023 2022 Income before Income tax Effective Income before Income tax Effective income taxes expense tax rate income taxes expense tax rate Effective tax rate 2.8 0.4 15.4% 2.8 (0.0) (1.0)% Adjustments1 1.0 0.2 1.1 0.3 Tax adjustment2 0.5 ETR-adjusted 3.7 0.7 17.8
Slide 39: Calculation of ROIC-adjusted
Calculation of ROIC-adjusted ($B) Four quarters ended March 31, 2023 2022 Numerator: EBIT-adjusted 14.2 13.9 Denominator: Average equity1 68.6 59.6 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.4 16.9 Add: Average automotive net pension & OPEB liability 8.6 14.0
Slide 40: GM Financial – Key Metrics
GM Financial – Key Metrics Q1 2023 Q1 2022 Revenue ($B) 3.3 3.2 EBT-Adjusted ($B) 0.8 1.3 Total retail originations ($B) 13.0 11.6 Retail finance delinquencies (>30 days) 2.3% 2.2% Annualized net charge-offs as % of average retail finance receivables 0.8% 0.7% Tangible equity ($B) 14.0 13.8 Joint ve
Slide 41: GM Financial – Return on Equity
GM Financial – Return on Equity Four quarters ended March 31, ($B) 2023 2022 Net income attributable to common shareholder 2.6 3.8 Average equity 15.2 14.6 Less: average preferred equity (2.0) (2.0) Average common equity 13.2 12.6 Less: average goodwill and intangible assets (1.2) (1.2) Average tang
Slide 42: 2023 Guidance Reconciliation
2023 Guidance Reconciliation ($B) Year Ending Dec 31, 2023 Net income attributable to stockholders $8.4 - $9.9 Income tax expense $1.5 - $2.0 Automotive interest expense, net $0.1 Adjustments $1.0 EBIT-adjusted $11.0 - $13.0 Year Ending Dec 31, 2023 Diluted earnings per common share $5.83 - $6.83 Ad
Slide 43: 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 — Q1 2023 Earnings Presentation on 6ix