General Motors Company · NYSE:GM
General Motors — Q2 2024 Earnings Presentation
42 slides from General Motors's earnings presentation, Jul 23, 2024
Slide 1: Q2 2024 Earnings
Cadillac OPTIQ Continued Strong Financial Performance Q2 2024 Earnings July 23, 2024
Slide 2: Table of Contents
Table of Contents Page 4 Business Update ICE Business Electric Vehicles Software Cruise AV Page 15 2024 Guidance Page 16 Financial Information Page 30 Supplemental Financial Information Chevrolet Equinox 2
Slide 3: Information Relevant To This Presentation
Cautionary Note on Forward-Looking Statements This communication 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 Information Relevant statements other than statements of historical
Slide 4: Q2 Highlights
Q2 Highlights Focused on fundamentals to deliver on our priorities Eight consecutive quarters of YoY U.S. Total U.S. EV deliveries ~22K, Best quarterly U.S. sales since Q4’20, retail sales growth, supporting total up 40% YoY, outpacing industry with strong pricing and incentives below company revenu
Slide 5: Continued Growth in Pickups
Continued Growth in Pickups With production discipline and consistent pricing • In the first half, Chevrolet Silverado and GMC Sierra volumes increased a combined ~5% YoY in the U.S. — Chevrolet Silverado: Best H1 sales since 2021 — GMC Sierra: Best-ever H1 sales and retail share Chevrolet Colorado
Slide 6: Industry's Freshest SUV Lineup
Industry’s Freshest SUV Lineup • Introducing redesigned Chevrolet, GMC and Buick Midsize SUVs, featuring Super Cruise for the first time • Chevrolet Traverse: Fastest growing vehicle in the segment since launch in April, with high demand and record Q2 ATP • GMC Acadia: Increased interior space and e
Slide 7: Leading in Affordable Small SUVs
Leading in Affordable Small SUVs Chevrolet Trax • Five consecutive quarters of year-over-year sales growth of 100% or more • Best-ever quarterly sales and quarterly retail share Chevrolet Trax Buick Envista • 3 consecutive quarters of record sales • 60% buyers are new to GM • Market share up 1.4 ppt
Slide 8: Portfolio Enhancements Drive Earnings Power
Portfolio Enhancements Drive Earnings Power Chevrolet Equinox • Bolder, more distinctive new designs with elevated technology and safety features, key advantage for market share gains and profitable growth • Smarter and simpler option packages with more standard equipment • Redesigned new series of
Slide 9: Corvette ZR1 Speeds Toward Summer Reveal
Corvette ZR1 Speeds Toward Summer Reveal (chevrolet.com) 9
Slide 10: Responsibly Growing EV Market Presence and Capturing New Customers
Responsibly Growing EV Market Presence and Capturing New Customers • ~22K EV deliveries in the U.S. in Q2, with 2.2 ppts YoY market share increase • ~54% of EV customers YTD are new to GM — Increasing presence in California, Texas, Florida and New York Cadillac LYRIQ — Cadillac LYRIQ is one of the i
Slide 11: Cadillac OPTIQ
Cadillac OPTIQ Expanding Cadillac’s position in the EV luxury segment, the fastest growing part of the EV market Standard Eligible for Super Cruise $7,500 Driving Assistance Technology consumer tax credit Best-in-class 300 miles 33 inch Cadillac-estimated diagonal advanced LED range display screen A
Slide 12: Supporting the EV Charging Infrastructure Improvements
Supporting the EV Charging Infrastructure Improvements • Positive customer reaction to the new highway plazas rolled out by GM Energy and EVgo with Pilot Company • IONNA industry consortium to begin installing U.S. charging stations before the end of the year • Finalizing details to provide our cust
Slide 13: Super Cruise: The Best True Hands-Free Driver Assistance Technology
Super Cruise: The Best True Hands-Free Driver Assistance Technology • Experts rate Super Cruise ahead of competitors • Key differentiators: — Industry-first hands-free trailering capability — Super Cruise's sensors and cameras are backed by high-definition LiDAR maps that provide precise road data •
Slide 14: Cruise: Back On The Road in Three Major Cities
Cruise: Back On The Road in Three Major Cities • Expanding to new cities, currently conducting supervised drives in Phoenix, Dallas and Houston • Strengthening the team, made several significant leadership appointments, including new CEO Marc Whitten • Shifting from Origins to Next Gen Bolt EVs, hel
Slide 15: Raising CY 2024 Guidance
Raising CY 2024 Guidance $13-15B $9.50-10.50 $9.5-11.5B EBIT–Adj. EPS–Diluted–Adj. Adj. Auto FCF Previously $12.5-14.5B Previously $9.00-$10.00 Previously $8.5-10.5B 8-10% $10.5-11.5B 18-20% GMNA EBIT-adj. Margins CapEx + Battery JV ETR-adjusted 15
Slide 16: Financial Information
Financial Information Chevrolet Silverado EV 16
Slide 17: Second Quarter Financial Highlights
Second Quarter Financial Highlights $48.0B $4.4B Revenue EBIT–Adj. $5.3B Adj. Auto FCF 1,043K 9.3% $3.06 Wholesale Units EBIT-Adj. Margin EPS-Diluted-Adj. 17
Slide 18: Second Quarter Performance
EPS-DILUTED-ADJ.; Second Quarter Performance EBIT-ADJ. & MARGIN • $1.15 (60%) YoY increase in EPS-diluted- adjusted driven partly by 242M (17%) lower EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 diluted weighted-average common shares from ASR execution and open market repurchases • EPS-dilu
Slide 19: Second Quarter EBIT-Adjusted ($B)
Second Quarter EBIT-Adjusted ($B) • GMNA core auto operating performance supported • GMI YoY decrease driven by lower China equity by robust customer demand and consistent pricing, income paired with the non-recurrence of $0.7B LG agreements and $0.5B EV related costs largely due • Lower Cruise expe
Slide 20: Second Quarter EBIT-Adjusted Performance ($B)
Second Quarter EBIT-Adjusted Performance ($B) GMNA: 70K China Auto JV $(0.2)B GMI: (7)K Fx and Other $(0.5)B VOLUME/MIX PRICE COST Increase in GMNA wholesale volume driven Consistent pricing supported by Favorable YoY change driven by $0.8B non- by robust customer demand, partially offset continued
Slide 21: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) Q2'24 Best Revenue and EBIT Adj. on record ~$50K U.S. ATP With incentives 1.5 ppts below U.S. industry average ~0.7 ppts of U.S. Retail Market U.S. DEALER INVENTORY (000’S)1 U.S. EV SALES (000’S) Share Gain YoY Driven by robust customer demand for our
Slide 22: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) WHOLESALES (000’S) HIGHLIGHTS Quarterly sequential improvement in line with expectations, increase driven by strong performance in Brazil and continued focus on profitable growth across markets 22
Slide 23: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 WHOLESALES (000’S)1 HIGHLIGHTS Equity income loss driven by tough competition in a challenging market impacting wholesale volume and pricing, partially offset by cost reduction actions 1 China Auto JV Net Revenue and Wholesales not c
Slide 24: Cruise
Cruise ($B) Q2 H1 Financial Performance 2023 2024 2023 2024 Revenue1 0.0 0.0 0.1 0.1 EBIT (loss)-adjusted (0.6) (0.5) (1.2) (0.9) Cash used in operating activities (0.4) (0.6) (0.9) (1.3) Cash, cash equivalents and marketable securities2,3 2.1 1.1 2.1 1.1 $0.2B YoY expense decrease driven by cost re
Slide 25: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) LIQUIDITY ($B) HIGHLIGHTS x x x x x EBT-Adjusted results up slightly YoY primarily due to improved yields and earning asset growth Sufficient capital and ample liquidity to support portfolio growth and navigate economic cycles Paid $450M divi
Slide 26: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q2 H1 ($B) 2023 2024 2023 2024 Net Income 2.5 2.9 4.9 5.8 Income tax and net automotive interest expense 0.5 0.7 0.9 1.5 EBIT adjustments1 0.2 0.8 1.1 0.9 Net loss (income) attributable to noncontrolling interests 0.1 0.1 0.1 0.1 EBIT-adjusted 3.2 4.4 7.0 8.3 GMF E
Slide 27: Automotive Liquidity and Debt
Automotive Liquidity and Debt • Strong liquidity supported by $6.4B Adj. Auto Free Cash Flow generated YTD • Auto cash generation driven by core business performance, improved working capital and consistent GMF dividends 27
Slide 28: Regional Q2 EBIT-Adjusted Performance ($B)
Regional Q2 EBIT-Adjusted Performance ($B) GMNA GMI $6.8 $1.7 $(1.1) $0.1 $1.1 $(0.3) 8.3 $0.6 $(0.2) $0.0 $0.0 $0.0 $(0.3) 0.0 Year to Date 2024 Year to Date 2024 28
Slide 29: Summary
Summary Q2'24 Results What’s to Come • Ongoing strength of core auto business driving consistent • Expect to drive consistently strong results in 2024 financial performance • On track to achieve our net $2B fixed cost reduction program • EBIT-Adj. guidance raised to $13-15B for the full-year with by
Slide 30: Supplemental Financial Information
Supplemental Financial Information Chevrolet Tahoe 30
Slide 31: Second Quarter GAAP Results
Second Quarter GAAP Results Q2 H1 All amounts in $B except EPS-diluted 2023 2024 2023 2024 Net revenue 44.7 48.0 84.7 91.0 Operating income 2.8 3.9 5.4 7.6 Net income attributed to stockholders 2.6 2.9 5.0 5.9 Net income margin 5.7% 6.1% 5.9% 6.5% EPS-diluted ($/share) $1.83 $2.55 $3.52 $5.10 Net ca
Slide 32: Global Deliveries
Global Deliveries (000's) Q2 2023 Q3 2023 Q4 2023 CY 2023 Q1 2024 Q2 2024 North America 805 796 747 3,055 709 827 U.S. 692 674 625 2,595 594 696 Asia/Pacific, Middle East and Africa 669 703 735 2,675 554 493 China 526 542 569 2,099 441 373 South America 108 120 121 456 84 111 Brazil 78 87 92 328 57
Slide 33: Global Market Share
Global Market Share Q2 2023 Q3 2023 Q4 2023 CY 2023 Q1 2024 Q2 2024 North America 15.6% 15.8% 15.1% 15.6% 15.0% 15.9% U.S. 16.4% 16.5% 15.5% 16.2% 15.4% 16.6% Asia/Pacific, Middle East and Africa 5.9% 5.9% 5.7% 5.7% 5.0% 4.5% China 8.6% 8.3% 7.9% 8.4% 7.8% 6.4% South America 12.4% 12.2% 11.9% 12.2%
Slide 34: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT-Adjusted ($B) Q3 Q4 Q1 Q2 2022 2023 2022 2023 2023 2024 2023 2024 Net income attributable to stockholders 3.3 3.1 2.0 2.1 2.4 3.0 2.6 2.9 Income tax expense (benefit) 0.8 0.5 0.6 (0.9) 0.4 0.8 0.5 0.8 Automotive interest expense 0.3 0.2 0.3 0.2 0.2 0.2 0.2 0.2 Automotive inter
Slide 35: Impact of Special Items on GAAP Reported Earnings - Q2
Impact of Special Items on GAAP Reported Earnings - Q2 ($B) Q2 2023 Q2 2024 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 44.7 — 44.7 48.0 — 48.0 Costs and expenses 1 3,4 Automotive and other cost of sales 36.6 0.1 36.7 38.6 (0.7)
Slide 36: EPS-Diluted-Adjusted Reconciliation
EPS-Diluted-Adjusted Reconciliation Q2 H1 All amounts in $B except EPS-diluted 2023 2024 2023 2024 Diluted earnings per common share $1.83 $2.55 $3.52 $5.10 Adjustments1 0.12 0.66 0.82 0.74 Tax effect on adjustments2 (0.04) (0.15) (0.21) (0.17) EPS-diluted-adjusted $1.91 $3.06 $4.12 $5.68 1 See slid
Slide 37: Effective Tax Rate-Adjusted
Effective Tax Rate-Adjusted ($B) Q2 H1 2023 2024 2023 2024 Income Income Effective Income Income Effective Income Income Effective Income Income Effective before tax before tax before tax before tax income expense tax rate income expense tax rate income expense tax rate income expense tax rate taxes
Slide 38: Calculation of ROIC-Adjusted
Calculation of ROIC-Adjusted ($B) Four quarters ended June 30, 2023 2024 Numerator: EBIT-adjusted 15.1 13.6 Denominator: Average equity1 70.5 70.4 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.3 16.2 Add: Average automotive net pension & OPEB liability 8.0 9.3 L
Slide 39: GM Financial – Key Metrics
GM Financial – Key Metrics Q2 2023 Q2 2024 H1 2023 H1 2024 Revenue ($B) 3.5 3.9 6.8 7.7 EBT-Adjusted ($B) 0.8 0.8 1.5 1.6 Total retail originations ($B) 13.7 13.6 26.7 26.2 Retail finance delinquencies (>30 days) 2.5% 2.8% 2.5% 2.8% Annualized net charge-offs as % of average retail finance 0.8% 1.0%
Slide 40: GM Financial – Return on Equity
GM Financial – Return on Equity Four quarters ended June 30, ($B) 2023 2024 Net income attributable to common shareholder 2.3 2.1 Average equity 15.2 15.6 Less: average preferred equity (2.0) (2.0) Average common equity 13.3 13.7 Less: average goodwill and intangible assets (1.2) (1.2) Average tangi
Slide 41: 2024 Guidance Reconciliation
2024 Guidance Reconciliation ($B) Year Ending Dec 31, 2024 Previously Reported Updated Net income attributable to stockholders $10.1 - $11.5 $10.0 - $11.4 Income tax expense $2.2 - $2.8 $2.2 - $2.8 Automotive interest expense (income), net $0.1 $(0.1) Adjustments1 $0.1 $0.9 EBIT-adjusted $12.5 - $14
Slide 42: 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 2024 Earnings Presentation on 6ix