General Motors Company · NYSE:GM
General Motors — Q1 2024 Earnings Presentation
43 slides from General Motors's earnings presentation, Apr 23, 2024
Slide 1: Q1 2024 Earnings
Chevrolet Equinox EV Strong Financial Performance with Improving EV Execution Q1 2024 Earnings April 23, 2024
Slide 2: Table of Contents
Table of Contents Page 4 Business Update ICE Business Electric Vehicles Software Cruise AV Page 16 2024 Guidance Page 17 Financial Information Page 31 Supplemental Financial Information Chevrolet Silverado EV 2
Slide 3: Cautionary Note on Forward-Looking Statements
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 statements other than statements of Information historical fact. Fo
Slide 4: Q1 Highlights
Q1 Highlights Good start to the year, on track to achieve key 2024 objectives Grew U.S. Retail Sales 6% #1 in Overall Loyalty to 36% increase in U.S. total with consistently strong pricing Manufacturer Ultium EV deliveries and incentives below industry for the 9th consecutive year* quarter-over-quar
Slide 5: Growing Share in Full-Size ICE Trucks and SUVs
Growing Share in Full-Size ICE Trucks and SUVs • Gained more than three ppts. of market share YoY in full-size pickups, with incentives below competitors • Best Q1 full-size pickup sales since 2020 with best-ever Q1 GMC Sierra Sales • ~66% full-size SUV retail market share, up almost three ppts. YoY
Slide 6: Building Mid-Size Truck Momentum
Building Mid-Size Truck Momentum • GMC Canyon sales up more than 100% in March YoY with ATP up ~25% • Redesigned 2024 Chevrolet Colorado was the GMC Canyon fastest-growing midsize pickup in March • Rapid sales growth in late-Q1 as availability improved, fulfilling strong customer demand Chevrolet Co
Slide 7: Rapid Growth In the Industry's Most Affordable Segment
Rapid Growth In the Industry’s Most Affordable Segment Meeting customer need for affordability through new vehicles with great design and fresh technology Chevrolet Trax Buick Envista • Best-ever quarterly sales, up 481% YoY • Best-ever quarterly sales, the highest conquest vehicle in GM’s ICE portf
Slide 8: Upcoming ICE Launches
Upcoming ICE Launches Chevrolet Traverse Chevrolet Tahoe GMC Acadia Chevrolet Suburban 8
Slide 9: Ultium EV Ramp Progress on Plan
Ultium EV Ramp Progress on Plan Guided by Consumer Demand • ~74% increase of Ultium EVs produced and wholesaled QoQ in GMNA • Battery module assembly throughput has increased ~300% over the last two quarters • Ultium EV production ramp expected to accelerate further in H2’24 • On track to achieve po
Slide 10: Cadillac LYRIQ Breaking Through in the Luxury EV Market
Cadillac LYRIQ Breaking Through in the Luxury EV Market • Q1 U.S. sales up more than 50% sequentially and accounts for ~20% of Cadillac retail sales, second only to Escalade • Outselling EV nameplates from European luxury brands • Growing the brand in key southern and coastal markets 50% of buyers n
Slide 11: Chevrolet Equinox EV: The Most Affordable 300 Mile Range EV
Chevrolet Equinox EV: The Most Affordable 300 Mile Range EV Starts at Eligible for Best-in-class Available $34,995 $7,500 319 miles 17.7 inch Mid-2024 consumer EPA-estimated range diagonal display screen tax credit 11
Slide 12: Chevrolet Silverado EV RST: More Range Than Any EV Pickup
Chevrolet Silverado EV RST: More Range Than Any EV Pickup GM-estimated Up to Available Multi-Flex Midgate 440 miles 10,000 enables bed to Mid-2024 of range lbs. of max towing expand to 10'10" 12
Slide 13: Upcoming EV Launches
Upcoming EV Launches Cadillac OPTIQ GMC Sierra EV Cadillac CELESTIQ Cadillac Escalade IQ 13
Slide 14: Expanding Hands-Free Driving Access with Super Cruise
Expanding Hands-Free Driving Access with Super Cruise More Roads More Vehicles More Capability • Adding more highways through 2025, • Now available on 15 GM nameplates in the • GM’s Trucks and SUVs are the world’s bringing total to about 750,000 miles in U.S. only vehicles with hands-free trailering
Slide 15: Cruise: Getting Back on the Roads
Cruise: Getting Back on the Roads • Conducting manual driving in Phoenix, a critical step for validating our self-driving systems as we work towards returning to our driverless mission • Continue to establish more robust and transparent processes for working with our regulators, city officials and e
Slide 16: Raising CY 2024 Guidance
Raising CY 2024 Guidance Expect to drive consistently strong results in 2024 $12.5-14.5B $9.00-$10.00 $8.5-10.5B EBIT–Adj. EPS–Diluted–Adj. Adj. Auto FCF Previously $12-14B Previously $8.50-$9.50 Previously $8-10B 8-10% $10.5-11.5B 18-20% GMNA EBIT-adj. Margins CapEx + Battery JV ETR-adjusted 16
Slide 17: Financial Information
Financial Information Buick Enclave 17
Slide 18: First Quarter Financial Highlights
First Quarter Financial Highlights $43.0B $3.9B Revenue EBIT–Adj. $1.1B Adj. Auto FCF 895K Wholesale Units 9.0% EBIT-Adj. Margin $2.62 EPS-Diluted-Adj. 18
Slide 19: First Quarter Performance
EPS-DILUTED-ADJ.; First Quarter Performance EBIT-ADJ. & MARGIN • $0.41 YoY increase in EPS-diluted-adjusted driven by 240M (17%) lower diluted weighted EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 average common shares from ASR execution and open market repurchases • EPS-diluted-adjusted in
Slide 20: First Quarter EBIT-Adjusted ($B)
First Quarter EBIT-Adjusted ($B) • Lower GMI mainly driven by YoY decrease in • GMNA strong core auto operating performance equity income due to strategic volume and driven by higher volume, consistent pricing profitability actions in China paired with retail market share gains and fixed cost improv
Slide 21: First Quarter EBIT-Adjusted Performance ($B)
First Quarter EBIT-Adjusted Performance ($B) GMNA: 69K China Auto JV $(0.2)B GMI: (38)K FX and Other $0.1B VOLUME/MIX PRICE COST Increase in GMNA wholesale volume Supported by consistent pricing, robust Driven by fixed cost program driven by robust customer demand, demand for our products and a disc
Slide 22: GMNA Performance
GMNA Performance Q1’24 NET REVENUE ($B) EBIT-ADJ. ($B) Best Q1 Revenue on Record ~$50K U.S. ATP With incentives below industry average ~0.3 ppts of U.S. Retail Market Share Gain YoY Supported by strong demand for full size trucks, U.S. DEALER INVENTORY (000’S)1 U.S. EV SALES (000’S) SUVs, and crosso
Slide 23: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) WHOLESALES (000’S) HIGHLIGHTS YoY decrease driven by strategic volume and profitability actions to preserve margins in GMSA 23
Slide 24: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 WHOLESALES (000’S)1 HIGHLIGHTS Expected lower China EI driven by lower production to balance dealer inventory levels 1 China Auto JV Net Revenue and Wholesales not consolidated in GM financial results. 2 China Auto JV pro-rata share
Slide 25: Cruise
Cruise ($B) Q1 Financial Performance 2023 2024 Revenue1 0.0 0.0 EBIT (loss)-adjusted (0.6) (0.4) Cash used in operating activities (0.5) (0.7) Cash, cash equivalents and marketable securities2,3 2.5 0.7 Cruise expenses were ~$400 million in the quarter, down from ~$600M in Q1’23, reflecting our cost
Slide 26: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) LIQUIDITY ($B) HIGHLIGHTS x x x x x EBT-Adjusted results down YoY primarily due to moderation in credit performance and used vehicle prices; higher effective yields and portfolio growth offset increased interest costs Earning assets increased
Slide 27: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q1 ($B) 2023 2024 Net Income 2.3 3.0 Income tax and net automotive interest expense 0.4 0.8 EBIT adjustments1 1.0 0.1 Net loss (income) attributable to noncontrolling interests 0.0 0.0 EBIT-adjusted 3.8 3.9 GMF EBT-adjusted (0.8) (0.7) Cruise EBIT loss-adjusted 0.6
Slide 28: Automotive Liquidity and Debt
Automotive Liquidity and Debt • Strong liquidity supported by core auto business cash generation and consistent GMF dividends • Terminated the $3B credit facility agreement initiated in November 2023 as part of the ASR strategy, no longer needed due to strong cash levels 28
Slide 29: Regional Q1 EBIT-Adjusted Performance ($B)
Regional Q1 EBIT-Adjusted Performance ($B) GMNA GMI 29
Slide 30: Summary
Summary Q1’24 Results What’s to Come • Ongoing strength of core auto business driving consistent • Expect to drive consistently strong results in 2024 financial performance • On track to achieve our net $2B fixed cost reduction program • EBIT-Adj. guidance raised to $12.5-14.5B for the full-year wit
Slide 31: Supplemental Financial Information
Supplemental Financial Information Cadillac Escalade 31
Slide 32: First Quarter GAAP Results
First Quarter GAAP Results Q1 All amounts in $B except EPS-diluted 2023 2024 Net revenue 40.0 43.0 Operating income 2.6 3.7 Net income attributed to stockholders 2.4 3.0 Net income margin 6.0% 6.9% EPS-diluted ($/share) $1.69 $2.56 Net cash provided by operating activities 3.1 3.2 32
Slide 33: Global Deliveries
Global Deliveries (000's) Q1 2023 Q2 2023 Q3 2023 Q4 2023 CY 2023 Q1 2024 North America 707 805 796 747 3,055 709 U.S. 603 692 674 625 2,595 594 Asia/Pacific, Middle East and Africa 570 670 703 735 2,675 554 China 462 526 542 569 2,099 441 South America 106 108 120 121 456 84 Brazil 71 78 87 92 328
Slide 34: Global Market Share
Global Market Share Q1 2023 Q2 2023 Q3 2023 Q4 2023 CY 2023 Q1 2024 North America 15.8% 15.6% 15.8% 15.2% 15.6% 14.9% U.S. 16.4% 16.3% 16.5% 15.7% 16.2% 15.4% Asia/Pacific, Middle East and Africa 5.4% 6.1% 5.9% 5.7% 5.7% 5.0% China 9.1% 8.6% 8.3% 7.9% 8.4% 7.9% South America 12.4% 12.5% 12.2% 11.9%
Slide 35: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT-Adjusted ($B) Q2 Q3 Q4 Q1 2022 2023 2022 2023 2022 2023 2023 2024 Net income attributable to stockholders 1.7 2.6 3.3 3.1 2.0 2.1 2.4 3.0 Income tax expense (benefit) 0.5 0.5 0.8 0.5 0.6 (0.9) 0.4 0.8 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 - Q1
Impact of Special Items on GAAP Reported Earnings - Q1 ($B) Q1 2023 Q1 2024 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 40.0 — 40.0 43.0 — 43.0 Costs and expenses Automotive and other cost of sales 32.2 (0.7)2 31.5 34.0 — 34.0 GM
Slide 37: EPS-Diluted-Adjusted Reconciliation
EPS-Diluted-Adjusted Reconciliation Q1 All amounts in $B except EPS-diluted 2023 2024 Diluted earnings per common share $1.69 $2.56 Adjustments1 0.69 0.08 Tax effect on adjustments2 (0.17) (0.02) EPS-diluted-adjusted $2.21 $2.62 1 See slide 35 for description of adjustments. 2 The tax effect of each
Slide 38: Effective Tax Rate-Adjusted
Effective Tax Rate-Adjusted ($B) Q1 2023 2024 Income before Income tax Effective tax rate Income before Income tax Effective tax rate income taxes expense income taxes expense Effective tax rate 2.8 0.4 15.4% 3.7 0.8 20.5% Adjustments1 1.0 0.2 — % 0.1 0.0 — % Tax adjustment — — — % — — — % ETR-adjus
Slide 39: Calculation of ROIC-Adjusted
Calculation of ROIC-Adjusted ($B) Quarter ended March 31, 2023 2024 Numerator: EBIT-adjusted 14.2 12.4 Denominator: Average equity1 68.6 71.1 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.4 16.2 Add: Average automotive net pension & OPEB liability 8.6 8.7 Less:
Slide 40: GM Financial – Key Metrics
GM Financial – Key Metrics Q1 2023 Q1 2024 Revenue ($B) 3.3 3.8 EBT-Adjusted ($B) 0.8 0.7 Total retail originations ($B) 13.0 12.6 Retail finance delinquencies (>30 days) 2.3% 2.7% Annualized net charge-offs as % of average retail finance receivables 0.8% 1.1% Tangible equity ($B) 14.0 14.4 Joint ve
Slide 41: GM Financial – Return on Equity
GM Financial – Return on Equity Quarter ended March 31, ($B) 2023 2024 Net income attributable to common shareholder 2.6 2.1 Average equity 15.2 15.5 Less: average preferred equity (2.0) (2.0) Average common equity 13.2 13.6 Less: average goodwill (1.2) (1.2) Average tangible common equity 12.1 12.4
Slide 42: 2024 Guidance Reconciliation
2024 Guidance Reconciliation ($B) Year Ending Dec 31, 2024 Previously Reported Updated Net income attributable to stockholders $9.8 - $11.2 $10.1 - $11.5 Income tax expense $2.1 - $2.7 $2.2 - $2.8 Automotive interest expense, net $0.1 $0.1 Adjustments1 — $0.1 EBIT-adjusted $12.0 - $14.0 $12.5 - $14.
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
General Motors Company — Q1 2024 Earnings Presentation on 6ix