General Motors Company · NYSE:GM
General Motors — Q3 2023 Earnings Presentation
40 slides from General Motors's earnings presentation, Oct 24, 2023
Slide 1: Q3 2023 Earnings
Chevrolet Silverado EV Trail Boss Delivering Strong Results and Advancing Our Growth Plan Q3 2023 Earnings October 24, 2023
Slide 2: Table of Contents
Table of Contents Page 04 Q3 Highlights ICE Portfolio Optimization EV Acceleration New Business Growth Page 14 2023-2025 KPIs Page 15 Financial Information Page 29 Supplemental Financial Information Chevrolet Traverse 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: Q3'23 Highlights
Q3’23 Highlights Continued progress in key areas of the business Ohio JV Cell plant reached Cruise obtained historic CPUC approval EBIT-Adj. $3.6B 75% production capacity; for 24/7 commercial operations in the Adj. Auto Free Cash Flow $4.9B expected to reach full capacity entire San Francisco area b
Slide 5: #1 in Full-Size Pickups and Large SUVs
#1 in Full-Size Pickups and Large SUVs Best year-to-date sales since 2007 Full-Size Pickups • Chevrolet Silverado and GMC Sierra combined sales up 29% YoY Chevrolet Silverado • Together, 7 consecutive quarters of industry leadership • GMC Sierra sales up 46% YoY for best-ever third quarter and year-
Slide 6: Seizing Profitable Growth Opportunity in Affordable Small SUVs
Seizing Profitable Growth Opportunity in Affordable Small SUVs Taking the lead with ~46% retail market share Buick Envista Chevrolet Trax Buick Chevrolet • All-new Envista off to a fast start • All-new Trax sales up almost 500% YoY, driven by new buyers with 56% coming from non-GM brands • Record sa
Slide 7: Redefining Our Large Crossover Lineup
Redefining Our Large Crossover Lineup Strengthening our position in one of the industry’s largest segments • 10% U.S. retail share and poised to grow with the introduction of the all-new Chevrolet Traverse and the refreshed GMC Acadia Chevrolet Traverse • Delivering better comfort and cargo space, e
Slide 8: Building Momentum with New Vehicles
Building Momentum with New Vehicles Chevrolet Colorado ZR2 Chevrolet Trailblazer GMC Sierra 2500HD AT4X Chevrolet Corvette E-Ray Chevrolet Silverado EV WT Chevrolet Equinox EV Cadillac ESCALADE IQ Strong lineup of product, targeting strategic segments 8
Slide 9: Continuing EV Acceleration
Continuing EV Acceleration Steady progress ramping up our volume • Made significant battery module production progress, currently installing and testing new high-capacity module assembly lines Cadillac LYRIQ • In Q3, production of Ultium platform vehicles more than doubled sequentially from Q2’23 •
Slide 10: The First-Ever Chevrolet Blazer EV
The First-Ever Chevrolet Blazer EV Deliveries to customers began in Q3’23 Available GM-estimated up to Available with 17.7 inch 0 to 60 mph Super Cruise 320 miles diagonal infotainment in under 4 seconds and range display screen 557 horsepower hands-free driver on a full charge assistance technology
Slide 11: Expanding Public EV Charging Through Wide Array of Partnerships
Expanding Public EV Charging Through Wide Array of Partnerships Chevrolet Bolt EUV • 12,000 Tesla Superchargers open to GM customers in 2024 • At least 30,000 high-powered chargers by 2030, as part of a 7-automaker collaboration; first locations open in 2024 • Over 25 charging sites with Pilot Compa
Slide 12: Cruise: Safe Transportation for Everyone
Cruise: Safe Transportation for Everyone Safety • In partnership with independent researchers, an unprecedented study compared human driver performance with Cruise AVs 1M miles in San Francisco: • 65% fewer collisions • 94% fewer collisions as primary contributor • 74% fewer collisions with meaningf
Slide 13: Bringing AV Ridehail Service to Japan
Bringing AV Ridehail Service to Japan • GM, Cruise and Honda announced a memorandum of understanding to establish a JV to launch a driverless ridehail service in Japan starting in early 2026 • Each company brings unique skillsets and talents to the manufacturing, software and development process • J
Slide 14: 2023-2025 KPIs
2023-2025 KPIs Our commitment to an all -electric future and a profitable transformation remains strong • Targeting low to mid-single-digit EBIT EV margin in 2025 • Expecting to have annual EV capacity of 1 million units in North America as we exit 2025 • Matching EV supply with demand to maintain s
Slide 15: Financial Information
Financial Information Chevrolet Traverse 15
Slide 16: Third Quarter Financial Highlights
Third Quarter Financial Highlights $44.1B $3.6B $4.9B Revenue EBIT–adj. Adj. Auto FCF Includes ~$(0.2)B of labor disruption impact 981K 8.1% 16.5% Wholesale units EBIT-adj. Margin U.S. Market Share 16
Slide 17: Third Quarter Performance
Third Quarter Performance EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 EBIT-ADJ. & MARGIN; 10.2% EPS-DILUTED-ADJ. 8.1% $0.7B YoY decrease driven by lower mix, higher variable costs, Cruise, and normalized GMF EBT, partially offset by continued strong pricing and $2.28 $4.3 higher volume $2.
Slide 18: Third Quarter EBIT-Adjusted ($B)
Third Quarter EBIT-Adjusted ($B) Q3-2022 Q3-2023 $4.3 $3.9 $3.5 $3.6 $0.9 $0.7 $0.3 $0.4 $(0.5) $(0.4) $(0.3) $(0.7) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA and GMI ex. China, strong core auto operating Normalized GMF EBT and higher Cruise performance driven by continued strong pr
Slide 19: Third Quarter EBIT-Adjusted Performance ($B)
Third Quarter EBIT-Adjusted Performance ($B) GMNA: 26K GM Financial: $(0.2) GMI: (11)K China EI: $(0.1) $0.3 $0.9 $4.3 $3.6 $(0.6) $(0.9) $(0.5) Q3-2022 Volume Mix Price Cost Other Q3-2023 VOLUME/MIX PRICE COST Increase in GMNA volume driven by Favorable pricing conditions extended Increase primaril
Slide 20: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) ~$36B and ~$106B 784 787 833 810 11.2% 10.3% 10.9% 9.8% Best Q3 and Q3 YTD revenue on record 723 8.6% $35.5 $37.2 $36.1 $3.9 $3.7 $3.6 $3.5 $50K+ $34.7 $3.2 $32.9 Q3 U.S. ATP with incentives below industry avg. Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-2
Slide 21: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) 4.0% 1.6% 7.1% 3.8% 0.1% $4.3 $4.3 $4.0 $4.0 $3.7 $0.0 $0.1 $0.3 $0.2 $0.2 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 EBIT-Adj. margin from GMI ex. China El WHOLESALES (000’S) Q3’23 HIGHLIGHTS EBIT Adj. $0.2B in
Slide 22: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B) 1 EQUITY INCOME ($B) 2 6.4% 4.3% 3.6% 6.2% 2.1% $10.4 $10.4 $8.1 $7.9 $0.3 $0.2 $5.8 $0.2 $0.1 $0.1 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Total China Auto JV NI/Rev WHOLESALES (000’S) 1 Q3’23 HIGHLIGHTS 768 796 YoY equity income dec
Slide 23: Cruise
Cruise ($B) Q3 YTD Financial Performance 2022 2023 2022 2023 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted2 (0.5) (0.7) (1.4) (1.9) Cash used in operating activities (0.5) (0.5) (1.3) (1.4) Cash, cash equivalents and marketable securities3,4 3.2 1.7 3.2 1.7 Increased Cruise expenses due to rapid operationa
Slide 24: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 27.9% 42.9% 45.9% 25.1% 39.7% 41.4% 40.8% 21.5% 19.3% 18.0% $106.7 $109.3 $110.2 $112.8 $115.0 $0.9 $0.8 $0.8 $0.8 $0.7 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Return on Average Tangible Common Equity GMF as % of GM U.S. R
Slide 25: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q3 YTD ($B) 2022 2023 2022 2023 Net Income 3.3 3.0 7.7 7.8 Income tax and net automotive interest expense 1.0 0.4 1.8 1.3 EBIT adjustments1 - 0.1 1.0 1.3 Net loss (income) attributable to noncontrolling interests 0.1 0.1 0.2 0.2 EBIT-adjusted 4.3 3.6 10.7 10.6 GMF
Slide 26: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $39.5 $42.5 Strong liquidity levels to support $13.5 business continuity and $15.1 operational flexibility during labor negotiations $29.0 $17.8 $16.4 To further strengthen our liquidity $24.4 position, in October 202
Slide 27: Regional Q3 EBIT-adjusted Performance ($B)
Regional Q3 EBIT-adjusted Performance ($B) GMNA GMI $0.3 $0.3 $0.6 $3.9 $3.5 $(0.6) $(0.5) $(0.1) $0.4 $(0.1) $0.3 $0.0 $(0.2) $(0.0) Q3-2022 Volume Mix Price Cost Other Q3-2023 Q3-2022 Volume Mix Price Cost Other Q3-2023 $9.3 $2.4 $(0.1) $2.8 $(4.0) $(0.2) $10.3 $0.9 $(0.1) $0.2 $0.9 $(0.5) $(0.5)
Slide 28: Summary
Summary Q3’23 Results What’s to Come • Consistently meeting or exceeding our financial targets • Improvements in our cost structure, on track to achieve our net $2B fixed cost reduction program by 2024 • Ongoing strength of core auto business paired with GMF strong results driving robust financial p
Slide 29: Supplemental Financial Information
Supplemental Financial Information Chevrolet Traverse 29
Slide 30: Third Quarter GAAP Results
Third Quarter GAAP Results Q3 YTD All amounts in $B except EPS-diluted 2022 2023 2022 2023 Net revenue 41.9 44.1 113.6 128.9 Operating income 3.4 3.0 7.7 8.4 Net income attributed to stockholders 3.3 3.1 7.9 8.0 Net income margin 7.9% 6.9% 7.0% 6.2% EPS-diluted ($/share) $2.25 $2.20 $4.73 $5.72 Net
Slide 31: Global Deliveries
Global Deliveries (000's) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 North America 663 729 707 805 796 U.S. 556 623 603 692 674 Asia/Pacific, Middle East and Africa 746 700 569 670 703 China 630 576 462 526 542 South America 130 124 106 108 120 Brazil 88 88 71 78 87 Global Deliveries – in GM Markets 1,
Slide 32: Global Market Share
Global Market Share Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 North America 15.5% 16.2% 15.8% 15.6% 15.8% U.S. 15.8% 16.7% 16.4% 16.3% 16.5% Asia/Pacific, Middle East and Africa 6.6% 6.0% 5.4% 6.1% 5.9% China 9.9% 9.1% 9.1% 8.6% 8.3% South America 13.0% 12.8% 12.4% 12.5% 12.2% Brazil 15.0% 14.6% 15.1%
Slide 33: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT-Adjusted ($B) Q4 Q1 Q2 Q3 2021 2022 2022 2023 2022 2023 2022 2023 Net income (loss) attributable to stockholders 1.7 2.0 2.9 2.4 1.7 2.6 3.3 3.1 Income tax expense (benefit) 0.5 0.6 (0.0) 0.4 0.5 0.5 0.8 0.5 Automotive interest expense 0.2 0.3 0.2 0.2 0.2 0.2 0.3 0.2 Automotiv
Slide 34: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q3 2022 Q3 2023 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 41.9 — 41.9 44.1 — 44.1 Costs and expenses Automotive and other cost of sales 33.7 — 33.7 35.8 — 35.8 GM Financial
Slide 35: EPS-Diluted-Adjusted Reconciliation
EPS-Diluted-Adjusted Reconciliation Q3 YTD All amounts in $B except EPS-diluted 2022 2023 2022 2023 Diluted earnings per common share $2.25 $2.20 $4.73 $5.72 Adjustments1 — 0.09 0.65 0.91 Tax effect on adjustments2 — (0.02) (0.20) (0.23) Tax adjustments3 — — (0.33) — Deemed dividend adjustment4 — —
Slide 36: Effective Tax Rate-Adjusted
Effective Tax Rate-Adjusted ($B) Q3 YTD 2022 2023 2022 2023 Income Income Income Income Income Income Income Income before tax Effective before tax Effective before tax Effective before tax Effective income expense tax rate income expense tax rate income expense tax rate income expense tax rate taxe
Slide 37: Calculation of ROIC-Adjusted
Calculation of ROIC-Adjusted ($B) Four quarters ended September 30, 2022 2023 Numerator: EBIT-adjusted 13.5 14.4 Denominator: Average equity1 64.9 72.8 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.3 16.6 Add: Average automotive net pension & OPEB liability 10.2
Slide 38: GM Financial – Key Metrics
GM Financial – Key Metrics Q3 2022 Q3 2023 YTD 2022 YTD 2023 Revenue ($B) 3.2 3.6 9.5 10.5 EBT-Adjusted ($B) 0.9 0.7 3.3 2.3 Total retail originations ($B) 12.9 13.8 37.3 40.5 Retail finance delinquencies (>30 days) 2.5% 2.7% 2.5% 2.7% Annualized net charge-offs as % of average retail 0.7% 1.0% 0.7%
Slide 39: GM Financial – Return on Equity
GM Financial – Return on Equity Four quarters ended September 30, ($B) 2022 2023 Net income attributable to common shareholder 3.3 2.2 Average equity 14.9 15.4 Less: average preferred equity (2.0) (2.0) Average common equity 12.9 13.4 Less: average goodwill and intangible assets (1.2) (1.2) Average
Slide 40: 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 — Q3 2023 Earnings Presentation on 6ix