General Motors Company · NYSE:GM
General Motors — Q2 2022 Earnings Presentation
38 slides from General Motors's earnings presentation, Jul 26, 2022
Slide 1: Q2 2022 Results
Q2 2022 Results July 26, 2022 2024 CHEVROLET BLAZER 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: Letter to Shareholders
Letter to Shareholders Dear Shareholders, Today, GM reported second-quarter net income of $1.7 billion and We have strong earnings and cash flow, an EBIT-adjusted of $2.3 billion, which reflect the impacts of the supply chain investment-grade credit rating, historically low disruptions we experience
Slide 4: Investment Opportunity
Investment Opportunity Short-term challenges have not impacted strategic long -term growth opportunities 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
Slide 5: Chevrolet High Volume EVs Starting in 2023
Chevrolet High Volume EVs Starting in 2023 EVs for every price point and lifestyle 2024 SILVERADO EV 2024 BLAZER EV 2024 EQUINOX EV SPRING 2023 SUMMER 2023 FALL 2023 Starting at Up to 0-60 as low as Starting at Up to 0-60 as low as Starting at Up to 0-60 as low as ~$42K 400+ mi 4.5 sec ~$45K 320 mi
Slide 6: Building EV Momentum at Cadillac
Building EV Momentum at Cadillac Strong market reception for the Cadillac LYRIQ and CELESTIQ 2023 CADILLAC LYRIQ CADILLAC CELESTIQ IN PRODUCTION SHOW CAR Starting at Up to 0-60 as low as ~$63K 312 mi 6 sec Revealed July 22nd, 2022 range > 76 mi per 10 min of charging > Represents the ultimate expres
Slide 7: GMC HUMMER EV Pickup and SUV
GMC HUMMER EV Pickup and SUV Ultimate capability – Revolutionary performance 2022 HUMMER EV PICKUP 2024 HUMMER EV SUV IN PRODUCTION AVAILABLE EARLY 2023 Starting at Up to 0-60 as low as Starting at Up to 0-60 as low as ~$85K 350 mi 3 sec ~$85K 300 mi 3.5 sec range range > 100 mi per 10 min of chargi
Slide 8: Accelerating the Widespread Adoption of EVs
Accelerating the Widespread Adoption of EVs Coast-to-Coast EV Fast Charging Network GM and Pilot Company Collaboration Announced plan to build out a coast- to-coast EV fast charging network Making electrification accessible also means making charging accessible > Executing on our plan to invest near
Slide 9: Secured Battery Cell Supply Chain
Secured Battery Cell Supply Chain Sustainable, Resilient, and Scalable We have binding agreements securing ALL battery raw material supporting our goal of 1 million units of annual capacity in North America in 2025. Direct Sourcing Of Up To Four U.S. Battery Cell Increasingly Localized 75% Of Our Ne
Slide 10: Cruise Achieves Historic Commercialization Milestone
Cruise Achieves Historic Commercialization Milestone THE FIRST AND ONLY COMPANY TO OPERATE A COMMERCIAL, DRIVERLESS RIDEHAIL SERVICE IN A MAJOR U.S. CITY > Offering driverless rides to paying customers on a small scale – roll out will continue to expand gradually > Goal is to have hundreds of vehicl
Slide 11: Financial Information
Financial Information 2024 HUMMER SUV EV 11
Slide 12: Second Quarter Performance
Second Quarter Performance EPS-DILUTED-ADJ.1 ADJ. AUTO FREE CASH FLOW EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN > Results demonstrate our ability to capitalize on a strong pricing environment driven by robust demand and low dealer inventory, offset by the $1.4B Adj. Auto timing of supply chain disruption
Slide 13: Second Quarter EBIT-adjusted
Second Quarter EBIT -adjusted In $B Q2-2021 Q2-2022 $4.1 $2.9 $2.3 $2.3 $1.6 $1.1 $0.0 $0.2 ($0.3) ($0.0) ($0.5) ($0.7) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA impacted by 90k+ Higher Corp expenses primarily due GMF down primarily due to vehicles built without certain to YoY mark-
Slide 14: Second Quarter EBIT-adjusted Performance
Second Quarter EBIT -adjusted Performance In $B GMNA: 20K GM Financial: $(0.5) China Auto JV: $(0.4) GMI: 37K Other Investments: $(0.4)1 FX: $(0.1) VOLUME / MIX COST > GMNA: Higher volume and lower mix primarily due to the > GMNA: Increased primarily due to higher commodity and over 90K vehicles in
Slide 15: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 642 579 694 662 10.4% 10.3% $6.6K 10.7% PER UNIT YOY U.S. RETAIL ATP 423 8.1% 8.0% INCREASE $27.9 $26.9 $29.5 $28.8 $20.6 $2.9 $2.1 $2.2 $3.1 $2.3 - Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 16.2% U.S. MARKET SHARE – 3RD Wholesales (
Slide 16: GMNA – Strong Demand Continues to Limit Inventory
GMNA – Strong Demand Continues to Limit Inventory RETAIL STOCK AT DEALERS - UNITS (000’S) RETAIL STOCK AT DEALERS - DAY SUPPLY 07/20/2022 07/20/2022 40 20 20 10 0 0 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 LD&HD Pick-Up SUV LD&HD Pick-Up SUV We have confidence that our H2 wholesal
Slide 17: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $0.3 $0.0 $0.1 $3.5 $3.8 $3.3 ($0.0) $2.8 $2.8 - ($0.3) - 7.8% 0.9% 2.8% - (1.4)% - (9.3)% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 EBIT-Adj. margin from GMI ex. China EI WHOLESALES (000’s) 163 155 137 Q2 2022
Slide 18: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 5.9% 5.3% 5.6% $13.6 3.3% $10.3 $9.0 $9.0 (3.4)% $6.1 - $0.3 $0.3 $0.2 $0.2 - - - ($0.1) - - Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Total China Auto JV NI/Rev WHOLESALES (000’s)1 Q2 2022 HIGHLIGHTS 1,007 705 > Lo
Slide 19: Cruise Financial Performance
($B) Q2 H1 Financial Performance 2022 2021 2022 2021 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted2 (0.5) (0.3) (0.9) (0.6) Cash used in operating activities (0.5) (0.3) (0.8) (0.5) Cash, cash equivalents and marketable securities3 3.7 3.9 3.7 3.9 EXECUTION FOCUS FOR H2 > Working with regulators to increas
Slide 20: GM Financial EBT-Adjusted and Earning Assets
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 35.5% 32.7% 32.6% 32.9% 43.1% 44.3% 44.9% 46.1% 44.6% 29.2% $1.6 $103.5 $104.2 $1.1 $1.2 $1.3 $1.1 $102.7 $101.5 $102.8 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Return on Average Tangible Common Equity GMF as % of GM U.S. Retail Sales (
Slide 21: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q2 H1 ($B) 2022 2021 2022 2021 Net Income 1.6 2.8 4.4 5.8 Income tax and net automotive interest expense 0.7 1.2 0.8 2.6 EBIT adjustments1 - 0.1 1.0 0.1 Net loss attributable to noncontrolling interests 0.0 0.1 0.2 0.1 EBIT-adjusted 2.3 4.1 6.4 8.5 GMF EBT-adjusted
Slide 22: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $36.8 $16.8 $16.8 $33.0 $15.2 $15.1 $16.8 $16.8 $21.6 $17.9 Dec 31, 2021 June 30, 2022 Dec 31, 2021 June 30, 2022 Available Credit Facilities Senior Unsecured Notes and Other Cash, Cash Equivalents and Marketable Debt
Slide 23: Reaffirming 2022 Guidance
Reaffirming 2022 Guidance Guidance Previous Guidance EBIT-ADJ. No Change $13.0B - $15.0B EPS-DILUTED-ADJ. No Change $6.50 - $7.50 ADJ. AUTO FREE CASH FLOW No Change $7.0B - $9.0B WHOLESALE VOLUME INCREASE No Change 25% - 30% GMNA EBIT ADJ. MARGINS No Change 10% 23
Slide 24: Summary
Summary Q2 2022 RESULTS WHAT’S TO COME > Strong pricing and higher volume drove a ~5% increase > Battery production starting in August at the Ultium Cells LLC YoY in revenue manufacturing plant in Ohio > Achieved North America 8% EBIT-adjusted margins, > Rapid acceleration of our EV capacity in Nort
Slide 25: Select Supplemental Financial Information
Select Supplemental Financial Information 2024 SILVERADO EV 25 25
Slide 26: Q2-2022 GAAP Results
Q2-2022 GAAP Results ($B except where noted) Q2 H1 2022 2021 2022 2021 Net revenue 35.8 34.2 71.7 66.6 Operating income 2.1 2.9 4.3 6.2 Net income attributed to stockholders 1.7 2.8 4.6 5.9 Net income margin 4.7% 8.3% 6.5% 8.8% EPS-diluted ($/share) $1.14 $1.90 $2.49 $3.93 Net cash provided by opera
Slide 27: Regional Q2 EBIT-adjusted Performance
Regional Q2 EBIT -adjusted Performance ($B) GMNA ($B) GMI YTD 2022 $6.0 $0.6 $(1.7) $3.3 $(2.8) $0.1 $5.4 $0.3 $0.1 $0.3 $0.6 $(0.3) $0.4 $0.5 27
Slide 28: Global Deliveries
Global Deliveries (000's) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 North America 687 601 511 522 794 U.S. 582 513 441 447 688 Asia/Pacific, Middle East and Africa 627 736 852 720 876 China 484 613 737 624 751 South America 107 90 118 70 88 Brazil 66 50 81 36 50 Global Deliveries – in GM Markets 1,421
Slide 29: Global Market Share
Global Market Share Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 North America 15.6% 14.7% 12.5% 12.2% 14.8% U.S. 16.2% 15.1% 13.0% 12.8% 15.3% Asia/Pacific, Middle East and Africa 6.6% 6.8% 7.3% 6.9% 7.7% China 9.7% 10.7% 11.1% 10.7% 11.3% South America 11.8% 11.4% 12.7% 7.8% 9.8% Brazil 12.8% 12.4% 15.
Slide 30: Reconciliation of EBIT-adjusted
Reconciliation of EBIT -adjusted ($B) Q2 Q1 Q4 Q3 2022 2021 2022 2021 2021 2020 2021 2020 Net income (loss) attributable to stockholders 1.7 2.8 2.9 3.0 1.7 2.8 2.4 4.0 Income tax expense (benefit) 0.5 1.0 (0.0) 1.2 0.5 0.6 0.2 0.9 Automotive interest expense 0.2 0.2 0.2 0.3 0.2 0.3 0.2 0.3 Automoti
Slide 31: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q2 2022 Q2 2021 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 35.8 — 35.8 34.2 — 34.2 Costs and expenses Automotive and other cost of sales 29.3 — 29.3 27.3 — 27.3 GM Financial
Slide 32: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q2 H1 2022 2021 2022 2021 Diluted earnings per common share $1.14 $1.90 $2.49 $3.93 Adjustments1 — 0.07 0.65 0.06 Tax effect on adjustments2 — — (0.20) — Tax adjustments3 — — (0.33) 0.22 Deemed dividend adjustment4 — — 0.62 — EPS-diluted-adjusted $1.14 $1.97 $3.23
Slide 33: Effective Tax Rate-adjusted
Effective Tax Rate -adjusted ($B) Q2 H1 2022 2021 2022 2021 Income Income Income Income Income Income Income Income before Effective before Effective before Effective before Effective tax tax tax tax income tax rate income tax rate income tax rate income tax rate expense expense expense expense taxe
Slide 34: Calculation of ROIC-adjusted
Calculation of ROIC -adjusted ($B) Four quarters ended June 30, 2022 2021 Numerator: EBIT-adjusted 12.1 17.5 Denominator: Average equity1 62.4 49.2 Add: Average automotive debt and interest liabilities (excluding finance leases) 16.8 20.3 Add: Average automotive net pension & OPEB liability 12.1 17.
Slide 35: GM Financial - Key Metrics
GM Financial - Key Metrics Q2 2022 Q2 2021 H1 2022 H1 2021 Revenue ($B) 3.1 3.4 6.3 6.8 Total retail originations ($B) 12.8 15.0 24.4 29.0 Retail finance delinquencies (>30 days) 2.4% 2.0% 2.4% 2.0% Annualized net charge-offs as % of average 0.6% 0.4% 0.6% 0.6% retail finance receivables Tangible eq
Slide 36: GM Financial - Return on Equity
GM Financial - Return on Equity Four quarters ended June 30, ($M) 2022 2021 Net income attributable to common shareholder 3.4 3.6 Average equity 14.8 13.2 Less: average preferred equity (2.0) (1.9) Average common equity 12.8 11.3 Less: average goodwill (1.2) (1.2) Average tangible common equity 11.6
Slide 37: 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 38: 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 — Q2 2022 Earnings Presentation on 6ix