General Motors Company · NYSE:GM
General Motors — Q3 2022 Earnings Presentation
39 slides from General Motors's earnings presentation, Oct 25, 2022
Slide 1: General Motors Q3 2022 Earnings
General Motors Q3 2022 Earnings October 25, 2022
Slide 2: Table of Contents
Table of Contents Page 4 Q3 Highlights ICE Portfolio Optimization EV Acceleration New Business Growth Page 12 Investment Opportunity Page 13 Financial Information 2
Slide 3: Information Relevant To This Presentation
I n f o r m atio 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. Forward-looking statements are any statements other than statements of historical fa
Slide 4: Q3 Highlights
Q3 Highlights Record revenue Reaffirming Continued and double-digit full-year guidance truck dominance EBIT-adjusted margins Expanding Cruise Record Chevrolet Bolt EV Hosting Investor Day and BrightDrop and Bolt EUV sales on Nov. 17 growth opportunities 4
Slide 5: Surging Truck Leadership
Surging Truck Leadership GM leads full-size pickup, full-size SUV Redesigned 2024 Chevrolet Silverado HD / Chevrolet Colorado / GMC Canyon and full-size luxury SUV segments, GMC Sierra HD launch first half mid-size pickups redesigned with driven by investments of 2023, with new interiors, enhanced m
Slide 6: Extending Truck Leadership Into EVs
Extending Truck Leadership Into EVs "GMC poured all of its truck-making expertise into the Sierra EV pickup“ – Digital Trends • Sierra EV Denali Edition 1: 400 miles of range and 350kw DC fast charging • GM EV truck portfolio spans mainstream, luxury and HUMMER EV supertruck 6
Slide 7: EVs at Nearly Every Price Point and Purpose
EVs at Nearly Every Price Point and Purpose 2024 Chevrolet Equinox EV delivers great design and launches Q3’23 in the industry’s highest volume segment. 10 mins of DC fast MSRP starting around Available range of charging adds $30K 300mi 70mi for base Equinox EV per GM estimate on of range per GM est
Slide 8: Increasing EV Manufacturing Footprint
Increasing EV Manufacturing Footprint • Toledo, OH plant: GM’s first U.S. propulsion-related manufacturing facility transformed for EV production, leveraging existing assets for more efficient capital spend • Ultium Cells Warren, OH: Start of production highlights GM’s commitment to vertically integ
Slide 9: Cadillac Redefines the Pinnacle of Luxury
Cadillac Redefines the Pinnacle of Luxury • Cadillac CELESTIQ, a bespoke work of automotive art built around the most advanced and innovative technology that we have ever engineered, launching in late 2023 • Cadillac LYRIQ launch underway in China • Cadillac Escalade dominates luxury SUV sales and r
Slide 10: Cruise Making Operational Progress
Cruise Making Operational Progress • Expanding to two new markets by year end • Austin: Small-scale, driverless operations • Phoenix: Commercial ride-hail, in addition to existing delivery operations in partnership with Walmart • San Francisco operations continue to expand, with a goal to have hundr
Slide 11: BrightDrop Launches Trace Grocery
BrightDrop Launches Trace Grocery • New temperature-controlled eCart designed to optimize fulfillment and curbside pickup for $240 billion online grocery industry • Trace Platform, including Trace Grocery, is available today with full-scale availability of the Trace Grocery expected in 2024 Electric
Slide 12: Investment Opportunity
Investment Opportunity Scalable and Compelling Attractive Revenue Growth & Platforms Margin Expansion Ultium is a key enabler in Ultifi will help open up launching high-volume EV $20B-$25B in annual Expect to double company Strong core auto business products into multiple software and service revenu
Slide 13: Third Quarter Financial Highlights
Third Quarter Financial Highlights $41.9B $4.3B $4.6B Revenue EBIT–Adj. Adj. Auto FCF 966K 10.2% 15.9% Wholesale units EBIT-Adj. Margin U.S. Market Share 13
Slide 14: Third Quarter Performance
Third Quarter Performance EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN • Strong results driven by YoY production EPS-DILUTED-ADJ.1 EBIT-ADJ.1 & EBIT-ADJ. MARGIN1 increase and robust pricing and demand 10.2% dynamics, partially offset by higher commodity and logistic challenges 10.9% • EPS-diluted-adjusted i
Slide 15: Third Quarter EBIT-adjusted ($B)
Third Quarter EBIT-adjusted ($B) Q3-2021 Q3-2022 $3.9 $4.3 $2.9 $2.1 $1.1 $0.9 $0.2 $0.3 ($0.3) ($0.5) ($0.2) ($0.4) GMNA GMI GM Financial Cruise Corp/Elims Total Company GMNA Q2’22 number of vehicles without GMF solid results in line Higher Corp expenses primarily certain components reduced by ~75%
Slide 16: Third Quarter EBIT-adjusted Performance ($B)
Third Quarter EBIT-adjusted Performance ($B) GM Financial: $(0.2) GMNA: 361K China Auto JV: $0.1 GMI: 69K FX/Other: $(0.1) $4.3 VOLUME/MIX PRICE COST Improved volumes due to greater Ongoing strong pricing Commodities and logistics continue semiconductor availability partially environment across all
Slide 17: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) $34.7B represents highest ever 694 662 784 quarterly revenue 579 10.3% 10.7% 423 11.2% 8.1% 8.0% $29.5 $28.8 $34.7 $26.9 85% $20.6 $2.1 $2.2 $3.1 $2.3 $3.9 increase in wholesales YoY - Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Wholes
Slide 18: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $0.3 $3.8 $4.0 $3.5 $3.3 $0.0 $0.1 $0.0 $2.8 - ($0.0) 0.9% 2.8% 7.8% 0.1% - (1.4)% Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 EBIT-Adj. margin from GMI ex. China EI WHOLESALES (000’S) Q3’22 HIGHLIGHTS 163 182 15
Slide 19: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B) EQUITY INCOME ($B) 5.6% 6.4% $13.6 5.3% $10.3 $10.4 3.3% $9.0 $6.1 (3.4)% $0.3 $0.3 $0.2 $0.2 - - ($0.1) - Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Total China Auto JV NI/Rev WHOLESALES (000’S) Q3’22 HIGHLIGHTS 1,007 Industry continues
Slide 20: Cruise
Cruise ($B) Q3 YTD Financial Performance 2022 2021 2022 2021 1 Revenue 0.0 0.0 0.1 0.1 EBIT-adjusted2 (0.5) (0.3) (1.4) (0.8) Cash used in operating activities (0.5) (0.2) (1.3) (0.7) 3 Cash, cash equivalents and marketable securities 3.2 3.6 3.2 3.6 Cruise Q3’22 investment run rate in line with ful
Slide 21: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 32.7% 32.6% 32.9% 44.3% 44.9% 46.1% 44.6% 42.9% 29.2% 27.9% $1.1 $1.2 $1.3 $1.1 $106.7 $0.9 $101.5 $102.8 $103.5 $104.2 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Return on Average Tangible Common Equity GMF as % of GM U.S. R
Slide 22: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q3 YTD ($B) 2022 2021 2022 2021 Net Income 3.3 2.4 7.7 8.2 Income tax and net automotive interest expense 1.0 0.3 1.8 2.9 EBIT adjustments1 - 0.2 1.0 0.3 Net loss attributable to noncontrolling interests 0.1 0.0 0.2 0.1 EBIT-adjusted 4.3 2.9 10.7 11.5 GMF EBT-adjus
Slide 23: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $36.8 $38.1 $15.2 $15.2 $16.8 $18.8 $21.6 $23.0 Dec 31, 2021 Sep 30, 2022 Dec 31, 2021 Sep 30, 2022 Available Credit Facilities Senior Unsecured Notes and Other Strong cash generation and a disciplined capital allocat
Slide 24: 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% 24
Slide 25: Summary
Summary Q3’22 Results What’s to Come • Highest ever quarterly GMNA revenue of ~$34.7B and EV • Ultium Cells, LLC manufacturing plant in Warren, Ohio will sales of ~15.2K continue to ramp up through Q4’22 and 2023 • GMNA EBIT-adjusted up $1.8B YoY due to ~85% increase in • Rapid acceleration of our E
Slide 26: Third Quarter GAAP Results
Third Quarter GAAP Results Q3 YTD All amounts in $B except EPS-diluted 2022 2021 2022 2021 Net revenue 41.9 26.8 113.6 93.4 Operating income 3.4 1.6 7.7 7.8 Net income attributed to stockholders 3.3 2.4 7.9 8.3 Net income margin 7.8% 9.0% 7.0% 8.9% EPS-diluted ($/share) $2.25 $1.62 $4.73 $5.55 Net c
Slide 27: Regional Q3 EBIT-adjusted Performance ($B)
Regional Q3 EBIT-adjusted Performance ($B) GMNA GMI $8.2 $5.3 $(3.3) $5.0 $(5.7) $0.1 $9.3 $0.6 $0.4 $0.0 $1.0 $(0.7) $(0.4) $0.9 Year to Date 2022 Year to Date 2022 27
Slide 28: Global Deliveries
Global Deliveries (000's) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 North America 663 687 601 511 522 U.S. 556 582 513 441 447 Asia/Pacific, Middle East and Africa 744 627 736 852 720 China 630 484 613 737 624 South America 130 107 90 118 70 Brazil 88 66 50 81 36 Global Deliveries – in GM Markets 1,53
Slide 29: Global Market Share
Global Market Share (000's) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 North America 15.6% 15.6% 14.7% 12.5% 12.2% U.S. 15.9% 16.2% 15.1% 13.0% 12.8% Asia/Pacific, Middle East and Africa 6.7% 6.6% 6.8% 7.3% 6.9% China 9.9% 9.7% 10.7% 11.1% 10.7% South America 13.0% 11.8% 11.4% 12.7% 7.8% Brazil 15.0% 1
Slide 30: Reconciliation of EBIT-adjusted
Reconciliation of EBIT-adjusted ($B) Q3 Q2 Q1 Q4 2022 2021 2022 2021 2021 2021 2021 2020 Net income (loss) attributable to stockholders 3.3 2.4 1.7 2.8 2.9 3.0 1.7 2.8 Income tax expense (benefit) 0.8 0.2 0.5 1.0 (0.0) 1.2 0.5 0.6 Automotive interest expense 0.3 0.2 0.2 0.2 0.2 0.3 0.2 0.3 Automotiv
Slide 31: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q3 2022 Q3 2021 Special items Adjusted Special items Adjusted Reported (Non-GAAP) Reported (Non-GAAP) Total net sales and revenues 41.9 — 41.9 26.8 — 34.2 Costs and expenses Automotive and other cost of sales 33.7 — 33.7 20.7 — 20.7 GM Financial
Slide 32: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q3 YTD All amounts in $B except EPS-diluted 2022 2021 2022 2021 Diluted earnings per common share $2.25 $1.62 $4.73 $5.55 Adjustments1 — 0.11 0.65 0.18 Tax effect on adjustments2 — (0.03) (0.20) (0.03) Tax adjustments3 — (0.18) (0.33) 0.03 Deemed dividend adjustme
Slide 33: Effective Tax Rate-adjusted
Effective Tax Rate-adjusted ($B) Q3 YTD 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 ($B) Four quarters ended September 30, 2022 2021 Numerator: EBIT-adjusted 13.5 15.2 Denominator: Average equity1 64.9 52.4 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.3 17.3 Add: Average automotive net pension & OPEB liability 10.2
Slide 35: GM Financial – Key Metrics
GM Financial – Key Metrics Q3 2022 Q3 2021 YTD 2022 YTD 2021 Revenue ($B) 3.2 3.4 9.5 10.2 Total retail originations ($B) 12.9 11.6 37.3 40.6 Retail finance delinquencies (>30 days) 2.5% 2.2% 2.5% 2.2% Annualized net charge-offs as % of average retail finance receivables 0.7% 0.5% 0.7% 0.6% Tangible
Slide 36: GM Financial – Return on Equity
GM Financial – Return on Equity Four quarters ended September 30, ($B) 2022 2021 Net income attributable to common shareholder 3.3 3.5 Average equity 14.9 14.0 Less: average preferred equity (2.0) (2.0) Average common equity 12.9 12.0 Less: average goodwill (1.2) (1.2) Average tangible common equity
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 $1.7 - $2.1 Automotive interest expense, net $0.7 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
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General Motors Company — Q3 2022 Earnings Presentation on 6ix