General Motors Company · NYSE:GM
General Motors — Q4 2019 Earnings Presentation
32 slides from General Motors's earnings presentation, Feb 5, 2020
Slide 1: Q4 2019 Results
Q4 2019 RESULTS February 5th, 2020 2021 Chevrolet Suburban 1
Slide 2: Information Relevant to This Presentation
I N F O RM A T I O N RE L E V A N T T O T H I S PRE SE N T A T I O N 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. We caution readers not to place und
Slide 3: Creating Shareholder Value
CRE A T I N G SH ARE H O L D E R V AL U E STRONG AND GROWING FRANCHISES LEADING IN FUTURE OF MOBILITY DEMONSTRATED TRACK RECORD OF STRENGTHENING BUSINESS & INVESTING IN THE FUTURE DOWNTURN PROTECTION, DISCIPLINED CAPITAL ALLOCATION & FOCUS ON CASH GENERATION 3 3
Slide 4: CY Performance
CY PE RF O R M A N C E EPS-Diluted-Adj. Adj. Auto Free Cash Flow $6.54 $1.1B Adj. Auto $4.82 Free Cash Flow $(3.3)B YOY CY-18 CY-19 EBIT-Adj. & EBIT-Adj. Margin Share & Deliveries 10.7% 8.0% (190)bps Market Share (50)bps YOY $11.8 6.1% $(3.4)B 7.7M $8.4 Deliveries (0.7)M YOY CY-18 CY-19 4 Note: 2018
Slide 5: EBIT-Adjusted: CY 2019 vs. CY 2018
E B I T - AD J U ST E D : CY 2 0 1 8 V S. CY 2 0 1 9 ($B) CY 2018 11.8 $(3.4)B decrease GMNA: (341k) Volume (3.1) GMI: (157k) Mix (0.3) Majors : 1.3 Price 1.9 Carryover: 0.5 Mat.-Majors: (1.2) Pension & D&A: (1.0) Warranty/Recall: (1.0) Cost (1.0) Commodities & Tariffs: (0.5) Cruise: (0.4) Other: (0
Slide 6: EBIT-Adjusted Calendar Year Results
E B I T - AD J U ST E D CY-2018 CY-2019 11.8 10.8 8.2 8.4 1.9 2.1 0.4 (0.2) (0.6) (0.7) (1.0) (0.7) GMNA GMI GM Financial Cruise Corp/Elims Total Company CALENDAR YEAR RESULTS LOWER DUE TO THE U.S. LABOR DISRUPTION 6 6
Slide 7: Fourth Quarter Performance
F O U RT H Q U ART E R PE RF O R M A N C E EPS-Diluted-Adj. Adj. Auto Free Cash Flow $1.43 $(1.3)B Adj. Auto Free Cash Flow $0.05 $(5.5) B YOY Q4-18 Q4-19 EBIT-Adj. & EBIT-Adj. Margin Share & Deliveries 7.4% 10.8% 2.8 (700)bps Market Share (70)bps YOY $(2.7)B 0.3% 2.0M 0.1 Deliveries (0.2)M YOY Q4-1
Slide 8: EBIT-Adjusted: Q4 2019 vs. Q4 2018
E B I T - AD J U ST E D : Q 4 2 0 1 8 V S. Q 4 2 0 1 9 ($B) Q4 2018 2.8 $2.7B decrease GMNA: (212k) Volume (1.8) GMI: (48k) Mix (0.8) Price 0.2 Majors : 0.2 Mat.-Majors: (0.1) Pension: (0.2) Cost (0.3) Warranty/Recall: (0.3) Performance/Timing: 0.4 1 FX: (0.2) Other (0.1) China EI: (0.1) Lyft/PSA: 0
Slide 9: EBIT-Adjusted Fourth Quarter Results
E B I T - AD J U ST E D Q4 2018 Q4 2019 3.0 2.8 0.4 0.5 0.3 0.1 (0.0) (0.1) (0.2) (0.2) (0.3) (0.4) GMNA GMI GM Financial Cruise Corp/Elims Total Company FOURTH QUARTER RESULTS LOWER DUE TO THE U.S. LABOR DISRUPTION 9 9
Slide 10: GMNA EBIT-Adjusted
G M N A E B I T - AD J U ST E D 3.0 3.0 3.0 1.9 0.3 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net revenue ($B) 29.8 27.4 28.3 28.0 22.7 EBIT-adj. margin 10.2% 6.9% 10.7% 10.8% 1.2% Wholesale (000's) 896 859 870 801 684 U.S. dealer inv. (000's) 755 819 809 760 616 Avg. U.S. Retail Incentive ($/unit) 4,
Slide 11: GMI EBIT-Adjusted
GMI EBIT-ADJUSTED ($B) China Equity Income (EI) 0.3 0.4 0.2 0.3 0.2 GMI excl. EI (0.4) (0.3) (0.3) (0.3) (0.4) 0.0 (0.0) (0.0) (0.1) (0.1) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net revenue ($B) 5.0 3.9 4.0 3.8 4.4 EBIT-adj. margin from GMI excl. EI (6.7%) (9.0%) (7.0%) (9.1%) (8.1%) Total Auto Chi
Slide 12: Moving Beyond the Car
($B) Q4 CY Financial Performance 2019 2018 2019 2018 Revenue 0.0 — 0.1 — EBIT-adjusted (0.3) (0.2) (1.0) (0.7) Cash used in operating activities (0.2) (0.2) (0.8) (0.6) MOVING BEYOND THE CAR 12 12
Slide 13: Record Q4 and CY Earnings; Paid $400M Dividend to GM
Q4 CY GM Financial Performance 2019 2018 2019 2018 Revenue ($B) 3.6 3.6 14.6 14.0 EBT-adjusted ($B) 0.5 0.4 2.1 1.9 GMF charge-offs (annualized net charge-offs as % avg. retail 1.8% 1.6% 1.8% 1.8% finance receivables) GM Financial Sales Penetrations GMF as a % of GM retail sales (in units) 39% 54% 4
Slide 14: Adjusted Automotive Free Cash Flow
AD JU S T E D AU T O M O T I V E F RE E CASH F L O W Q4 YTD ($B) 2019 2018 2019 2018 Income (loss) from continuing operations (0.2) 2.1 6.7 8.1 Income tax and net automotive interest expense (0.1) (0.5) 1.1 0.8 EBIT adjustments 0.4 1.3 0.5 2.9 EBIT-Adjusted 0.1 2.8 8.4 11.8 GMF EBT-Adjusted (0.5) (0
Slide 15: Key Automotive Balance Sheet Items
K E Y AU T O M O T I V E B AL A N C E SH E E T I T E M S Liquidity Debt & Underfunded Pension 34.6 25.4 26.3 33.8 14.2 17.3 14.4 14.0 19.6 6.4 6.4 17.3 5.1 5.4 CY-18 CY-19 CY-18 CY-19 Cash, cash equivalents & marketable securities Credit Facilities US Pension Non-US Pension Auto Debt OPEB 5.7 6.3 LI
Slide 16: Summary
SU M M A R Y Excluding the impact of the U.S. labor disruption, 2019 strong underlying performance primarily due to the all-new light- and heavy-duty pickup trucks, performance of crossovers and our transformational cost savings initiatives Achieved $2.8B in transformational cost savings in 2019 and
Slide 17: Select Supplemental Financial Information
SE L E CT SU PPL E M E N T A L F I N AN C I A L I N F O RM A T I O N 17 2020 Cadillac CT4 Sport 17
Slide 18: Q4 & CY-19 GAAP Results
Q 4 & CY - 1 9 G AAP RE SU L T S ($B except where noted) Q4 CY 2019 F/(U) 2019 F/(U) vs. 2018 vs. 2018 Net revenue 30.8 (7.6) 137.2 (9.8) Operating income (loss) (0.6) (1.4) 5.5 1.0 Income (loss) from continuing operations (0.2) (2.3) 6.7 (1.4) EPS-diluted from continuing operations ($/share) (0.16)
Slide 19: Regional Q4 EBIT-Adjusted Performance
RE G I O N A L Q 4 E B I T - AD J U ST E D PE RF O R M A N C E GMNA GMI Mat.-Majors (0.1) Pension (0.2) Warranty/Recall (0.3) Performance/Timing 0.4 1 Majors 0.2 Carryover (0.1) China EI (0.1) FX/Other (0.2) FX (0.1) Carryover - FX 0.1 0.0 ($B) ($B) Memo: CYTD 10.8 (2.8) 0.0 1.3 (1.2) 0.0 8.2 0.4 (0
Slide 20: CY-19 U.S. Labor Disruption Impact
CY - 1 9 U . S. L AB O R D I SRU P T I O N I M PA CT CY EPS-diluted-adj. CY Adj. Automotive Free Cash Flow $6.5 $6.54 $6.71 1 $4.82 $4.4 $1.1 CY-18 CY-19 Actual CY-19 Ex. Strike CY-18 CY-19 Actual CY-19 Ex. Strike CY GMNA Revenue CY GMNA EBIT-Adj. & Margin $113.8 $117.1 $106.4 10.0% 9.5% $11.8 $10.8
Slide 21: Q4-19 U.S. Labor Disruption Impact
Q 4 - 1 9 U . S. L AB O R D I SRU P T I O N I M PA C T Q4 EPS-diluted-adj. Q4 Adj. Automotive Free Cash Flow $1.43 $1.44 $4.2 $3.7 Q4-19 Actual $0.05 Q4-18 Q4-19 Ex. Strike Q4-18 Q4-19 Actual Q4-19 Ex. Strike ($1.3) Q4 GMNA Revenue Q4 GMNA EBIT-Adj. & Margin 10.2% 9.5% $29.8 $29.7 $3.0 $2.8 $22.7 1.
Slide 22: Global Deliveries
G L O B AL D E L I V E R I E S (000's) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 North America 917 775 876 863 853 U. S. 785 666 747 739 736 Asia/Pacific, Middle East and Africa 1,141 947 899 828 1,005 China 965 814 754 690 836 South America 185 155 162 176 176 Brazil 131 106 116 124 130 Global Delive
Slide 23: Global Market Share
G L O B AL M ARK E T SH ARE Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 North America 16.9% 15.6% 15.8% 16.1% 16.1% U. S. 17.5% 16.2% 16.3% 16.6% 16.7% Asia/Pacific, Middle East and Africa 8.8% 8.0% 7.7% 7.6% 8.1% China 13.2% 13.1% 11.7% 12.1% 11.9% South America 16.3% 15.5% 15.1% 15.5% 15.8% Brazil 18.
Slide 24: Reconciliation of EBIT-Adjusted
RE CO N C I L I A T I O N O F E B I T - A D J U S T E D ($B) Q4 CY 2019 2018 2019 2018 Net income (loss) attributable to stockholders $(0.2) $2.0 $6.7 $8.0 Loss from discontinued operations, net of tax — — — 0.1 Income tax expense (benefit) (0.2) (0.6) 0.8 0.5 Automotive interest expense 0.2 0.2 0.8
Slide 25: Impact of Special Items on GAAP Reported Earnings - CY
I M PA CT O F SPE CI AL I T E M S O N G AAP RE PO R T E D E ARN I N G S - CY ($B) CY 2019 CY 2018 Reported Special items Adjusted Reported Special items Adjusted (Non-GAAP) (Non-GAAP) Total net sales and revenues 137.2 — 137.2 147.0 — 147.0 Costs and expenses Automotive and other cost of sales 110.7
Slide 26: Impact of Special Items on GAAP Reported Earnings - Q4
I M PA CT O F SPE CI AL I T E M S O N G AAP RE PO R T E D E ARN I N G S – Q 4 ($B) Q4 2019 Q4 2018 Reported Special items Adjusted Reported Special items Adjusted (Non-GAAP) (Non-GAAP) Total net sales and revenues 30.8 — 30.8 38.4 — 38.4 Costs and expenses 1 Automotive and other cost of sales 25.9 (
Slide 27: Calculation of ROIC-Adjusted
CAL CU L A T I O N O F RO I C - A D J U S T E D ($B) Years Ended December, 31 2019 2018 Numerator: EBIT-adjusted 8.4 11.8 Denominator: Average equity1 43.7 37.4 Add: Average automotive debt and interest liabilities (excluding finance leases) 14.9 14.4 Add: Average automotive net pension & OPEB liabi
Slide 28: Effective Tax Rate-Adjusted
E F F E CT I V E T AX RAT E - A D J U S T E D ($M) Q4 CY 2019 2018 2019 2018 EBIT-adjusted 105 2,828 8,393 11,783 Less: Noncontrolling interests (4) (25) 59 (32) Less: Net interest expense 104 68 353 320 EBT-adjusted 5 2,785 7,981 11,495 Tax expense (163) (611) 769 474 Impact of special items1 54 1,
Slide 29: GM Financial – Key Metrics
G M F I N AN C I A L – K E Y M E T RI C S ($B) Q4 2019 Q4 2018 Total loan and lease originations1 10.9 13.6 GM as % of GM Financial loan and lease originations1 87% 91% Retail finance delinquencies (>30 days)2 4.5% 4.7% Annualized net charge-offs as % of avg. retail finance receivables 1.8% 1.8% Com
Slide 30: GM Financial - Return on Equity
G M F I N AN C I A L - RE T U R N O N E Q U I T Y ($M) Four quarters ended Q4 2019 Q4 2018 Net income from continuing operations attributable to common shareholder $1,477 $1,504 Average equity 12,270 11,049 Less: average preferred equity (1,477) (1,136) Average common equity 10,793 9,913 Less: avera
Slide 31: EPS-Diluted-Adjusted Reconciliation
E PS - D I L U T E D - A D J U S T E D RE CO N CI L I A T I O N Q4 CY 2019 2018 2019 2018 Diluted earnings per common share (0.16) $1.40 4.57 $5.53 Diluted loss per common share - discontinued operations — — — 0.05 Adjustments1 0.25 0.93 0.38 2.03 Tax effect on adjustments (0.04) (0.23) (0.13) (0.29
Slide 32: For Additional Information Please Visit
F O R AD D I T I O N A L I N F O R M A T I O N P L E AS E V I S I T : https://investor.gm.com Website: GetCruise.com investorrelations@gm.com YouTube: http://bit.ly/CruiseYouTube https://www.gmfinancial.com/en-us/investor-center.html Medium: Medium.com/Cruise investors@gmfinancial.com GM’s Investor
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