General Motors Company · NYSE:GM
General Motors — Q4 2021 Earnings Presentation
40 slides from General Motors's earnings presentation, Feb 1, 2022
Slide 1: Q4 2021 Results
Q4 2021 Results February 1, 2022 2024 CHEVROLET SILVERADO 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 Transforming from Automaker to Platform Innovator COMPELLING REVENUE GROWTH SIGNIFICANT MARGIN EXPANSION % > Expect to double revenue to $275-315B by 2030 > Expect to expand margins to 12-14% by 2030 > ~50% CAGR on software and new businesses > Auto margin expansion as EVs sca
Slide 4: Watch a Cruise
Building self-driving vehicles to improve life in our cities - safe, shared and all-electric > Cruise team members have been taking fully driverless rides in San Francisco since November to demonstrate and refine the software and hardware ecosystem – logging over 20K miles and completing more than 6
Slide 5: Leveraging the Ultium Platform
Leveraging the Ultium Platform A key enabler in launching ~20 EVs in North America by 2025 BRIGHTDROP EV600 – available GMC HUMMER EV PICKUP – available CADILLAC LYRIQ – H1 2022 GMC HUMMER EV SUV – early 2023 CHEVROLET BLAZER EV CADILLAC CELESTIQ CHEVROLET EQUINOX EV – fall 2023 CHEVROLET SILVERADO
Slide 6: Strong Demand for BrightDrop EVs
Strong Demand for BrightDrop EVs FedEx Express Merchants Fleet > BrightDrop delivered the > Merchants Fleet, one of first electric light the nation’s fastest commercial vehicles to growing fleet management FedEx in December 2021 companies, plans to > The EV600 is the fastest purchase 18,000 built ve
Slide 7: Continued Expansion into New Markets and Technologies
Continued Expansion into New Markets and Technologies CarBravo OnStar Insurance > New omni-channel used > Pursuing regulatory vehicle shopping approval for a novel rating experience will help algorithm based on create a vibrant used customer driving and vehicle market for EVs, vehicle safety attribu
Slide 8: Expanding Battery Cell and Assembly Capacity
Expanding Battery Cell and Assembly Capacity MORE THAN 1M UNITS OF EV CAPACITY IN NORTH AMERICA BY THE END OF 2025 BATTERY CELL MANUFACTURING Lordstown, OH – Opening mid-2022 Lansing, MI – Opening late 2024 Spring Hill, TN – Opening mid-2023 4th plant – Announcement H1 2022 EV ASSEMBLY FACILITIES Fa
Slide 9: ESG is Fully Integrated with Our Business Strategy
ESG is Fully Integrated with Our Business Strategy ENVIRONMENTAL SOCIAL GOVERNANCE > Plan to be carbon neutral in our global > Ambition to be the world’s most inclusive > Diverse and independent Board – 13 directors products and operations by 2040 company - committed to use the power of which 7 are
Slide 10: Financial Information
Financial Information 2023 CADILLAC LYRIQ 10
Slide 11: CY Performance
CY Performance EPS-DILUTED-ADJ.1 ADJ. AUTO FREE CASH FLOW EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN > Increased YoY primarily due to improved pricing and prioritization of higher demand vehicles and strong used car pricing in a tight $2.6B Adj. Auto inventory environment, partially offset by Free Cash Fl
Slide 12: CY EBIT-adjusted
CY EBIT -adjusted In $B CY-2020 CY-2021 $14.3 $9.1 $10.3 $9.7 $5.0 $2.7 $0.8 ($0.5) ($0.9) ($1.2) ($0.6) ($0.7) GMNA GMI GM Financial Cruise Corp/Elims Total Company RECORD EARNINGS FUNDING OUR GROWTH INITIATIVES 12
Slide 13: CY EBIT-adjusted Performance
CY EBIT -adjusted Performance In $B GM Financial: $2.3 FX: $0.4 China Auto JV: $0.6 Other Investments: $0.41 GMNA: (399)k GMI: (112)k VOLUME / MIX COST > GMNA: Decreased volume due to production disruptions > GMNA: Increased due to non-recurrence of the 2020 austerity and improved mix due to the pri
Slide 14: Fourth Quarter Performance
Fourth Quarter Performance EPS-DILUTED-ADJ.1 ADJ. AUTO FREE CASH FLOW EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN > Decreased YoY primarily due to lower wholesale volume as a result of the semiconductor shortage and increased $6.4B Adj. Auto commodity and logistics costs, partially offset Free Cash Flow by
Slide 15: Fourth Quarter EBIT-adjusted
Fourth Quarter EBIT -adjusted In $B Q4-2020 Q4-2021 $3.7 $2.6 $2.8 $2.2 $1.0 $1.2 $0.3 $0.3 $0.0 ($0.3) ($0.3) ($0.4) GMNA GMI GM Financial Cruise Corp/Elims Total Company SPENDING ON GROWTH INITIATIVES ACCELERATING AS WE BRING MORE THAN 30 EVS TO THE MARKET BY 2025 15
Slide 16: Fourth Quarter EBIT-adjusted Performance
Fourth Quarter EBIT -adjusted Performance In $B GM Financial: $0.1 GMNA: (224)k FX: $(0.1) GMI: (52)k Other Investments: $(0.4)1 VOLUME / MIX PRICE > GMNA: Decreased volume due to production disruptions > GMNA: Increased primarily due to strong pricing and demand and improved mix due to the producti
Slide 17: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 10.2% 802 12.1% CY-2021 EBIT-ADJUSTED 664 642 579 8.7% 10.4% 10.3% MARGIN 423 8.1% $30.2 $26.0 $27.9 $26.9 $20.6 $2.6 $3.1 $2.9 $2.1 $2.2 - 769K Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 COMBINED FULL-YEAR SALES OF THE CHEVROLET Whol
Slide 18: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $0.0 $0.0 $0.0 $3.9 $3.1 $3.5 ($0.0) $2.8 $2.8 - ($0.3) - 0.9% 0.0% 0.9% - (1.4)% - (9.3)% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 EBIT-Adj. margin from GMI ex. China EI WHOLESALES (000’s) 216 Q4 2021 HIGHLIG
Slide 19: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 $14.1 $13.6 5.9% 5.9% 5.3% 3.3% $9.9 $10.3 3.5% $9.0 - $0.2 $0.3 $0.3 $0.3 $0.2 - Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Total China Auto JV NI/Rev WHOLESALES (000’s)1 1,106 1,007 Q4 2021 HIGHLIGHTS 675 620 705 >
Slide 20: Cruise financial performance
($B) Q4 CY Financial Performance 2021 2020 2021 2020 Revenue 0.0 0.0 0.11 0.11 EBIT-adjusted (0.3) (0.3) (1.2) (0.9) Cash used in operating activities (0.4) (0.3) (1.2) (0.8) GM AND CRUISE’S CONTINUED WORK TOGETHER WILL CREATE ECONOMIES OF SCALE THAT LOWER COSTS AND INCREASE QUALITY OF CRUISE’S RIDE
Slide 21: GM Financial EBT-adjusted and earning assets
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 35.5% 32.7% 32.6% 41.1% 43.8% 43.1% 44.3% 44.9% 27.3% 20.5% $1.6 $1.0 $1.2 $1.1 $1.2 $100.2 $100.8 $102.7 $101.5 $102.8 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Return on Average Tangible Common Equity GMF as % of GM U.S. Retail Sales (
Slide 22: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q4 CY ($B) 2021 2020 2021 2020 Net Income 1.8 2.8 9.9 6.3 Income tax and net automotive interest expense 0.7 0.9 3.6 2.6 EBIT adjustments1 0.4 (0.0) 0.7 0.7 Net loss (income) attributable to noncontrolling interests (0.0) 0.0 0.1 0.1 EBIT-adjusted 2.8 3.7 14.3 9.7
Slide 23: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT & UNDERFUNDED PENSION ($B) $40.5 $36.8 $29.8 $7.0 $21.9 $18.2 $15.2 $5.4 $4.8 $0.3 $22.3 $21.6 $17.5 $16.8 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Available Credit Facilities Non-U.S. Pension U.S. Pension Cash,
Slide 24: 2022 Guidance
2022 Guidance Full Year 2022 VS 2021 KEY VARIANCE DRIVERS > Increased wholesale volumes of 25%-30% EBIT-ADJ. $13.0B - $15.0B > ~$2.5B increased commodity and logistics costs EPS-DILUTED-ADJ. $6.25 - $7.25 > ~$1.0B-1.5B lower GM Financial ADJ. AUTO FREE CASH FLOW $7.0B - $9.0B > ~$1.5B investment to
Slide 25: Summary
Summary 2021 RESULTS WHAT’S TO COME > Record 2021 EBIT-adjusted and EBIT-adjusted margin in > Cadillac LYRIQ deliveries begin in less than 60 days– along with a challenging semiconductor and supply chain accepting orders after the Debut Edition launch environment > GMC HUMMER EV Pickups are on their
Slide 26: Select Supplemental Financial Information
Select Supplemental Financial Information 2022 GMC SIERRA DENALI ULTIMATE 26
Slide 27: Q4-2021 & CY-2021 GAAP Results
Q4-2021 & CY -2021 GAAP Results ($B except where noted) Q4 CY 2021 2020 2021 2020 Net revenue 33.6 37.5 127.0 122.5 Operating income 1.5 2.8 9.3 6.6 Net income attributed to stockholders 1.7 2.8 10.0 6.4 Net income margin 5.2% 7.6% 7.9% 5.2% EPS-diluted ($/share) $1.16 $1.93 $6.70 $4.33 Net cash pro
Slide 28: Regional Q4 EBIT-adjusted Performance
Regional Q4 EBIT -adjusted Performance ($B) GMNA ($B) GMI CY 2021 $9.1 $(4.5) $6.2 $6.2 $(7.1) $0.5 $10.3 $(0.5) $(0.3) $0.7 $0.8 $(0.4) $0.5 $0.8 28
Slide 29: Global Deliveries
Global Deliveries (000's) Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 North America 511 522 794 746 875 U.S. 441 447 688 642 771 Asia/Pacific, Middle East and Africa 848 720 876 880 1,083 China 737 624 751 780 954 South America 118 70 88 118 159 Brazil 81 36 50 75 115 Global Deliveries – in GM Markets 1
Slide 30: Global Market Share
Global Market Share Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 North America 12.6% 12.2% 14.8% 15.7% 17.3% U.S. 13.1% 12.8% 15.2% 16.0% 18.0% Asia/Pacific, Middle East and Africa 7.3% 7.0% 7.7% 7.3% 8.2% China 11.0% 10.7% 11.3% 11.7% 12.1% South America 12.7% 7.8% 9.8% 13.3% 15.2% Brazil 15.0% 7.2% 9.1
Slide 31: Reconciliation of EBIT-adjusted
Reconciliation of EBIT -adjusted ($B) Q4 CY 2021 2020 2021 2020 Net income attributable to stockholders 1.7 2.8 10.0 6.4 Income tax expense (benefit) 0.5 0.6 2.8 1.8 Automotive interest expense 0.2 0.3 1.0 1.1 Automotive interest income (0.0) (0.0) (0.1) (0.2) Adjustments Patent royalty matters1 0.3
Slide 32: Impact of Special Items on GAAP Reported Earnings – CY
Impact of Special Items on GAAP Reported Earnings – CY ($B) CY 2021 CY 2020 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 127.0 — 127.0 122.5 0.1 122.5 Costs and expenses Automotive and other cost of sales 100.5 (0.4) 1,2 100.1 97.
Slide 33: Impact of Special Items on GAAP Reported Earnings – Q4
Impact of Special Items on GAAP Reported Earnings – Q4 ($B) Q4 2021 Q4 2020 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 33.6 — 33.6 37.5 (0.0) 37.5 Costs and expenses Automotive and other cost of sales 27.5 (0.4)1,2 27.0 30.2 (0.
Slide 34: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Q4 CY 2021 2020 2021 2020 Diluted earnings per common share $1.16 $1.93 $6.70 $4.33 Adjustments1 0.30 — 0.47 0.46 Tax effect on adjustments2 (0.04) — (0.07) (0.05) Tax adjustments (0.07)4 — (0.03)3 0.163 EPS-diluted-adjusted $1.35 $1.93 $7.07 $4.90 1 See slide 31
Slide 35: Effective Tax Rate-adjusted
Effective Tax Rate -adjusted ($B) Q4 CY 2021 2020 2021 2020 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 36: Calculation of ROIC-adjusted
Calculation of ROIC -adjusted ($B) Years ended December 31, 2021 2020 Numerator: EBIT-adjusted 14.3 9.7 Denominator: Average equity1 56.5 43.3 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.1 27.8 Add: Average automotive net pension & OPEB liability 15.8 17.6 Les
Slide 37: GM Financial - Key Metrics
GM Financial - Key Metrics Q4 2021 Q4 2020 CY 2021 CY 2020 Revenue ($B) 3.2 3.4 13.4 13.8 Total retail originations ($B) 10.2 13.6 50.9 49.8 Retail finance delinquencies (>30 days) 2.4% 2.9% 2.4% 2.9% Annualized net charge-offs as % of average retail 0.6% 0.9% 0.6% 1.3% finance receivables Tangible
Slide 38: GM Financial - Return on Equity
GM Financial - Return on Equity ($B) Years ended December 31, 2021 2020 Net income attributable to common shareholder 3.7 1.9 Average equity 14.4 12.1 Less: average preferred equity (2.0) (1.6) Average common equity 12.4 10.5 Less: average goodwill (1.2) (1.2) Average tangible common equity 11.2 9.3
Slide 39: 2022 Guidance Reconciliation
2022 Guidance Reconciliation ($B) Year Ending Dec 31, 2022 Net income attributable to stockholders $9.4 - $10.8 Income tax expense $2.8 - $3.4 Automotive interest expense, net $0.8 EBIT-adjusted $13.0 - $15.0 Year Ending Dec 31, 2022 Diluted earnings per common share $6.25 - $7.25 EPS-diluted adjust
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 — Q4 2021 Earnings Presentation on 6ix