General Motors Company · NYSE:GM
General Motors — Q1 2022 Earnings Presentation
36 slides from General Motors's earnings presentation, Apr 26, 2022
Slide 1: Q1 2022 Results
Q1 2022 Results April 26, 2022 2024 CHEVROLET EQUINOX EV
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: Investment Opportunity
Investment Opportunity ATTRACTIVE REVENUE GROWTH SIGNIFICANT MARGIN EXPANSION % > Expect to double revenue to $275B-$315B by 2030 > Expect to expand margins to 12%-14% by 2030 ▪ ~50% CAGR on software and new businesses ▪ Auto margin expansion as EVs scale and battery ▪ 4-6% CAGR from strong core aut
Slide 4: Leveraging the Ultium Platform
Leveraging the Ultium Platform BRIGHTDROP ZEVO 6001 – available GMC HUMMER EV PICKUP – available CADILLAC LYRIQ – in production GMC HUMMER EV SUV – early 2023 CHEVROLET BLAZER EV CADILLAC CELESTIQ CHEVROLET EQUINOX EV – fall 2023 CHEVROLET SILVERADO EV2 GMC SIERRA EV 1 Renamed from EV600 2 Work Truc
Slide 5: Accelerating our All-Electric Future
Accelerating our All -Electric Future LYRIQ Launch GMC HUMMER EV > Production of the > Launched the GMC Cadillac LYRIQ began at HUMMER EV Pickup in Q4 Spring Hill in Q1 2021 and accelerating > Cadillac will begin taking production throughout additional orders on May 2022 and into 2023 19 – reservati
Slide 6: EV Vertical Integration
EV Vertical Integration Building a scalable, resilient and sustainable EV supply chain Partner: Component: MP Materials Rare earth magnets SECURING STRATEGIC LONG-TERM PARTNERSHIPS AT EACH CRITICAL LEVEL OF THE VALUE CHAIN Vacuumschmelze (VAC) Magnets POSCO Cathode active materials BATTERY RAW RARE
Slide 7: High Volume Manufacturing Expertise
High Volume Manufacturing Expertise Talent and scale enable EV launches with speed and quality CADILLAC LYRIQ PRODUCTION AT SPRING HILL ASSEMBLY GMC HUMMER EV PRODUCTION AT FACTORY ZERO ANNOUNCED EV ASSEMBLY FACILITIES 50% OF OUR NORTH AMERICA AND CHINA Factory ZERO, MI CAMI, Ontario FOOTPRINT CONVE
Slide 8: Advancing our Integrated AV Strategy
Advancing our Integrated AV Strategy ADDITIONAL INVESTMENT IN CRUISE IS AN OPPORTUNITY FOR CREATING LONG-TERM SHAREHOLDER VALUE > GM acquired SoftBank’s equity ownership stake in Cruise for $2.1B and separately made an additional $1.35B investment in Cruise, bringing GM’s total ownership from ~60% t
Slide 9: ESG is Fully Integrated with Our Business Strategy
ESG is Fully Integrated with Our Business Strategy RECOGNITIONS > GM’s strategy is to deliver safe and responsible transportation solutions for our customers > Our vision is a world with zero crashes, zero emissions and zero congestion and we are working to become the most inclusive company in the w
Slide 10: Financial Information
Financial Information 2022 HUMMER EV PICKUP 10
Slide 11: First Quarter Performance
First Quarter Performance EPS-DILUTED-ADJ.1 ADJ. AUTO FREE CASH FLOW EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN > Results demonstrate our ability to mitigate the impacts of higher commodity costs and investments in our growth and EV transition $0.0B Adj. Auto $2.25 $2.09 Free Cash Flow > EPS-diluted-adjus
Slide 12: First Quarter EBIT-adjusted
First Quarter EBIT -adjusted In $B Q1-2021 Q1-2022 $4.4 $4.0 $3.1 $3.1 $1.2 $1.3 $0.3 $0.3 $0.0 ($0.2) ($0.3) ($0.4) GMNA GMI GM Financial Cruise Corp/Elims Total Company STRONG START TO THE YEAR AS WE YOY DIFFERENCE IN CORPORATE DRIVEN BY CONTINUE TO SEE ROBUST CUSTOMER MARK-TO-MARKET GAINS ON INVE
Slide 13: First Quarter EBIT-adjusted Performance
First Quarter EBIT -adjusted Performance In $B GM Financial: $0.1 GMNA: 30K FX: $(0.1) GMI: (20)K Other Investments: $(0.3)1 VOLUME / MIX COST > GMNA: Primarily higher volume due to improvement of > GMNA: Increased primarily due to higher commodity and semiconductor availability logistics costs, cos
Slide 14: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 12.1% $10.2K 664 642 694 10.4% 10.3% 10.7% PER UNIT YOY U.S. RETAIL ATP 579 423 8.1% INCREASE $26.0 $27.9 $26.9 $29.5 $20.6 $3.1 $2.9 $2.1 $2.2 $3.1 - Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 41.5% COMBINED U.S. RETAIL MARKET Wholes
Slide 15: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $3.1 $3.5 $3.3 $2.8 $2.8 $0.0 $0.0 $0.1 - ($0.0) ($0.3) - Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 - 0.0% (1.4)% 0.9% 2.8% - (9.3)% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 WHOLESALES (000’s) EBIT-Adj. margin from GMI ex. China EI 157 163 137 Q1 2022
Slide 16: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 $13.6 5.9% 5.9% 5.3% 5.6% $9.9 $10.3 3.3% $9.0 $9.0 - $0.3 $0.3 $0.3 $0.2 $0.2 - Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Total China Auto JV NI/Rev WHOLESALES (000’s)1 1,007 Q1 2022 HIGHLIGHTS 675 620 705 602 > Eq
Slide 17: Cruise Financial Performance
($B) Q1 Financial Performance 2022 2021 Revenue 0.01 0.01 EBIT-adjusted (0.3)2 (0.2) Cash used in operating activities (0.3) (0.2) Cash, cash equivalents and marketable securities3 4.1 4.1 CRUISE IS NOW OPERATING IN ~70% OF SAN FRANCISCO AND IS MOVING TOWARDS OPERATING ACROSS THE ENTIRE CITY LATER T
Slide 18: GM Financial Performance
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 35.5% 32.7% 32.6% 32.9% 43.8% 43.1% 44.3% 44.9% 46.1% 27.3% $1.6 $103.5 $1.2 $1.1 $1.2 $1.3 $100.8 $102.7 $101.5 $102.8 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Return on Average Tangible Common Equity GMF as % of GM U.S. Retail Sales (
Slide 19: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q1 ($B) 2022 2021 Net Income 2.8 3.0 Income tax and net automotive interest expense 0.1 1.4 EBIT adjustments1 1.0 - Net loss attributable to noncontrolling interests 0.1 0.0 EBIT-adjusted 4.0 4.4 GMF EBT-adjusted (1.3) (1.2) Cruise EBIT loss-adjusted 0.3 0.2 Automo
Slide 20: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $36.8 $16.8 $16.9 $32.9 $15.2 $15.2 $21.6 $17.7 Dec 31, 2021 Mar 31, 2022 Dec 31, 2021 Mar 31, 2022 Available Credit Facilities Senior Unsecured Notes and Other Cash, Cash Equivalents and Marketable Debt Securities LI
Slide 21: Reaffirming 2022 Guidance
Reaffirming 2022 Guidance Guidance Previous Guidance EBIT-ADJ. No Change $13.0B - $15.0B EPS-DILUTED-ADJ. $6.50– $7.50* $6.25 - $7.25 ADJ. AUTO FREE CASH FLOW No Change $7.0B - $9.0B *EPS-DILUTED-ADJUSTED UPDATE > As a result of our increased ownership percentage in Cruise, we will include Cruise re
Slide 22: Summary
Summary Q1 2022 RESULTS WHAT’S TO COME > Strong pricing drove revenue up 10% YoY > Rapid acceleration of our EV capacity in North America with plans to produce 400K EVs over the course of 2022 and 2023 > Achieved North America 10.7% EBIT-adjusted margins, on track with our 2022 full year guidance of
Slide 23: Select Supplemental Financial Information
Select Supplemental Financial Information 2023 CADILLAC ESCALADE-V 23 23
Slide 24: Q1-2022 GAAP Results
Q1-2022 GAAP Results ($B except where noted) Q1 2022 2021 Net revenue 36.0 32.5 Operating income 2.2 3.3 Net income attributed to stockholders 2.9 3.0 Net income margin 8.2% 9.3% EPS-diluted ($/share) $1.35 $2.03 Net cash provided by operating activities 2.1 1.3 24
Slide 25: Regional Q1 EBIT-adjusted Performance
Regional Q1 EBIT -adjusted Performance ($B) GMNA ($B) GMI 25
Slide 26: Global Deliveries
Global Deliveries (000's) Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 North America 601 511 522 794 746 U.S. 513 441 447 688 642 Asia/Pacific, Middle East and Africa 735 852 720 875 880 China 613 737 624 751 780 South America 90 118 70 88 118 Brazil 50 81 36 50 75 Global Deliveries – in GM Markets 1,427
Slide 27: Global Market Share
Global Market Share Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 North America 14.8% 12.5% 12.2% 14.8% 15.7% U.S. 15.2% 13.0% 12.8% 15.3% 16.0% Asia/Pacific, Middle East and Africa 6.8% 7.3% 6.9% 7.7% 7.3% China 10.6% 11.1% 10.7% 11.3% 11.7% South America 11.4% 12.7% 7.8% 9.8% 13.3% Brazil 12.4% 15.0% 7.
Slide 28: Reconciliation of EBIT-adjusted
Reconciliation of EBIT -adjusted ($B) Q1 Q4 Q3 Q2 2022 2021 2021 2020 2021 2020 2021 2020 Net income (loss) attributable to stockholders 2.9 3.0 1.7 2.8 2.4 4.0 2.8 (0.8) Income tax expense (benefit) (0.0) 1.2 0.5 0.6 0.2 0.9 1.0 (0.1) Automotive interest expense 0.2 0.3 0.2 0.3 0.2 0.3 0.2 0.3 Auto
Slide 29: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q1 2022 Q1 2021 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 36.0 — 36.0 32.5 — 32.5 Costs and expenses Automotive and other cost of sales 29.4 (0.7)1,2 28.6 25.1 — 25.1 GM Fi
Slide 30: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q1 2022 2021 Diluted earnings per common share $1.35 $2.03 Adjustments1 0.65 — Tax effect on adjustments2 (0.20) — Tax adjustments3 (0.33) 0.22 Deemed dividend adjustment4 0.62 — EPS-diluted-adjusted $2.09 $2.25 1 See slide 28 for description of adjustments. 2 The
Slide 31: Effective Tax Rate-adjusted
Effective Tax Rate -adjusted ($B) Q1 2022 2021 Income before Income tax Effective tax Income before Income tax Effective tax income taxes expense rate income taxes expense rate Effective tax rate 2.8 (0.0) (1.0)% 4.2 1.2 28.1% Adjustments1 1.1 0.3 — — Tax adjustment2 0.5 (0.3) ETR-adjusted 3.8 0.8 1
Slide 32: Calculation of ROIC-adjusted
Calculation of ROIC -adjusted ($B) Four quarters ended March 31, 2022 2021 Numerator: EBIT-adjusted 13.9 12.9 Denominator: Average equity1 59.6 45.7 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.9 24.7 Add: Average automotive net pension & OPEB liability 14.0 17
Slide 33: GM Financial - Key Metrics
GM Financial - Key Metrics Q1 2022 Q1 2021 Revenue ($B) 3.2 3.4 Total retail originations ($B) 11.6 14.0 Retail finance delinquencies (>30 days) 2.2% 1.9% Annualized net charge-offs as % of average retail finance receivables 0.7% 0.8% Tangible equity ($B) 13.8 12.6 Joint ventures equity income ($M)
Slide 34: GM Financial - Return on Equity
GM Financial - Return on Equity ($B) Four quarters ended March 31, 2022 2021 Net income attributable to common shareholder 3.8 2.6 Average equity 14.6 12.5 Less: average preferred equity (2.0) (1.7) Average common equity 12.6 10.7 Less: average goodwill (1.2) (1.2) Average tangible common equity 11.
Slide 35: 2022 Guidance Reconciliation
2022 Guidance Reconciliation ($B) Year Ending Dec 31, 2022 Net income attributable to stockholders $9.6 - $11.2 Income tax expense $1.6 - $2.0 Automotive interest expense, net $0.8 Adjustments $1.0 EBIT-adjusted $13.0 - $15.0 Year Ending Dec 31, 2022 Diluted earnings per common share $5.76 - $6.76 A
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
General Motors Company — Q1 2022 Earnings Presentation on 6ix