General Motors Company · NYSE:GM
General Motors — Investor Day (2024)
47 slides from General Motors's investor day presentation, 2024
Slide 1: Paul Jacobson, EVP & CFO
Paul Jacobson EVP & CFO
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and related remarks by management may include “forward-looking statements” within the meaning of the US. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent
Slide 3: Product Disclosure
Product Disclosure Depicted vehicles and features shown throughout may be simulated or in a preproduction state and subject to change. Products may not be currently available and subject to limited availability. Certain vehicle performance and other specs, including acceleration, torque and range ar
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures See our 2023 Form 10-K and our subsequent filings with the SEC for a description of certain non-GAAP measures referenced in this presentation and remarks made by management, including EBIT-adjusted, EPS-diluted-adjusted, ROIC-adjusted and adjusted automotive free cash flo
Slide 5: EBIT Adj. and Adj. Auto Free Cash Flow
EBIT ADJ. ($ BILLIONS) Guide Range: $13.0-515.0 2022 72023" 2024 (Gulce)* ‘reves estimates 2023 EBT-A sthe pact of 1:18 ue oss apprexbrately SSK us f proditon, +2024 Gude based en updeted franc guidance given 02 2024 ern ADJ. AUTO FREE CASH FLOW (§ BILLIONS) 2022 2023" 2028 (Gulceye* cndtrs and COVD
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Slide 7: Creating a More Nimble GM
Creating a More Nimble GM Overcoming Industry Challenges Executing Consistently Well on Controllables Achieving Financial Targets
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Slide 9: Agenda: Software, 2025 Tailwinds & Headwinds, Capital Allocation
SOFTWARE 2025 TAILWINDS & HEADWINDS CAPITAL ALLOCATION
Slide 10: ICE
ICE
Slide 11: GMNA margins consistently at or above 8-10%
GMNA margins consistently at or above 8-10% 2021 through H1 2024 GMNA EBIT ADJ. MARGINS Target Range: 8% -10% 2022 2023" 2024 (Tacget)** 3 he pact and LGES corrects eto the Blt *+2024 Gide based on undated Mencia qucance gen at 2 2028 emis.
Slide 12: Disciplined on Pricing and Incentives
Disciplined on Pricing and Incentives ATP $ PER UNIT* (THOUSANDS) INCENTIVE SPEND AS % OF ATP* 16.2% ==" as? 2021 2022 2023 2020 2023, 2024 1D GM mMMINDUSTRY ——_*sounce Jo ponenPuucara OM see iNDustay OM MARKET SHARE + sounce: Jo POWER DxTA
Slide 13: Proactively Managing Production and Inventory
Proactively Managing Production and Inventory ICE inventory currently running at 68 days INVENTORY DAYS ON HAND ICE 30 70 60 =~ 50 -- 40 30 20 10 10-12 EVs per dealer to increase customer awareness 2022 2023 2024 Projected ——— li 50-60 DAY YEAR END TARGET Expect to Close 2024 Within our 50-60 Day Ta
Slide 14: Investing 1/3 of our Product Capital Spend on Key ICE Refreshes
Investing 1/3 of our Product Capital Spend on Key ICE Refreshes 8 refreshed SUVs in 2025 —— WITH —— ~9 PPTs higher EBIT margin compared to outgoing models based on current assumptions
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Slide 16: + | Sos: mma
+ | Sos: mma
Slide 17: Fleet Margins Similar to Retail Segment Vehicles
Fleet Margins that are Similar to Vehicles in the Retail Segment with Comparable Content ~20% ~550K fleet U.S. market share fleet vehicles Fleet Sales Include Commercial, Governmental, and Rental Customers and Excludes Retail Sales
Slide 18: ICE business to support GMNA EBIT margins of 8-10%
More than Enhanced Higher Margin re) Portfolio Vehicles 60 % loyalty rates Expect ICE business will continue to support GMNA EBIT margins of 8-10% through transformation
Slide 19: EV
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Slide 20: EV Variable Profit Improvement Through Q3 2024
EV Variable Profit Ilmprovement of More Than 30 PPTS YoY Through Q3 2024 a 6) aa Battery and Scale Other Costs
Slide 21: Scale
SCALE CHEVROLET EQUINOX EV Produced and Expect to produce wholesaled and wholesale 120K ~200K EVs through Q3 ‘24 EVs for full year 2024
Slide 22: Driving EV Market Share Growth While Disciplined on Incentives
Driving EV Market Share Growth While Remaining Disciplined on Incentives EV INCENTIVE SPEND AS A % OF ATP* 0% Jan-2024 Feb-2024 Mar-2024 ‘Apr-2024 May-2024 Jun-2024 Jul-2024 =m inpustey GM U.S. EV MARKET SHARE
Slide 23: Cadillac Escalade IQ | GMC Sierra EV
CADILLAC ESCALADE IQ | GMC SIERRA EV Further propelling pricing and margins with unique offerings
Slide 24: Advanced Manufacturing Tax Credits
Advanced Manufacturing Tax Credits GM portion of Full Expect $35/kWh $10/kWh ~S800M cell manufacturing module assembly Benefit in 2024 credit recognized at credit recognized at and expanding cell purchase vehicle wholesale from there
Slide 25: Chevrolet Equinox EV
EVROLET EQUINOX EV
Slide 26: Battery and Other Costs
- BATTERY AND OTHER COSTS Expect to reduce pack costs by . SGOEWh e
Slide 27: 2024 EV VP
2024 EV VP Expect to exit 2024 with a positive run rate Breakeven EV YP Margin Previous gen Balt end ef production and new EV portfolic wholesale increase Uitium LUC colt proguetion ramp 2023 Key 2023-2024 EV VP Drivers 10% 40% Scale Mix Positive EV VP Margin® 50% Battery and Other Costs
Slide 28: 2024 EV EBIT
2024 EV EBIT Expect margin to improve ~55 ppts by the end of 2024 despite lower volume vs. expectations
Slide 29: 2024-2025 EV EBIT Improvement Drivers
2024-2025 EV EBIT Improvement Drivers Peak EV losses in 2024 to help upcoming years as we expect EV EBIT to improve significantly + Scale + Battery Costs + Material Costs + Emission Credits + Other + Clean Energy Tax Credits Price Expect 3 YoY EV EBIT* tailwind in the range of $2-4B in 2025
Slide 30: Software
SOFTWARE _ ie rw"
Slide 31: New Software Processes Paying Off
New Software Processes Paying Off by Enhancing Vehicle Launch and Deliveries
Slide 32: More than ~$2B of expected revenue for 2024
More than ~$2B of expected revenue for 2024 with substantial margins
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Slide 34: 2025 Tailwinds & Headwinds
2025 TAILWINDS & HEADWINDS Expect 2025 EBIT Adj. to be “vat a similar range vs 4
Slide 35: 2025 Tailwinds and Headwinds
VOLUME IN LINE WITH U.S. INDUSTRY CONTINUED PROGRESS ON EV EXPECTATIONS REVENUE GROWTH PROFITABILITY TAILWINDS LOWER BENEFIT FROM EV MODERATING ioe nD LCM DUE TO IMPROVING PRICE EV MIX HIGHER LABOR COSTS MARGINS HEADWINDS
Slide 36: Expect 2025 Capital Spend Similar to 2024
Expect 2025 Capital Spend Similar to 2024 and Continued Robust Cash Generation CHEVROLET EQUINOX
Slide 37: Shareholder Returns
Shareholder Returns ~60% ~250M ~53M total return to shareholders total shares YTD shares retired since ASR program announced to be retired via open market on Nov 29 2023 via ASR repurchases
Slide 38: Share Count
SHARE COUNT Targeting Below 1B Outstanding Shares By Early 2025 2022 2023 Early 2025 Target* “Cerly 2025 Teraet includes actual shares repurchased through Q3 and expected repurchases through eerly 2025.
Slide 39: EBIT Adj. Margin and Auto FCF Performance
BIT ADJ. MARGIN AND AUTO H FLOW PERFORMANCE, “MAKING THE COMPANY FUNDAMENTALLY BETTER, AND EXTENDING OUR EARNINGS POWER CHEVROLET SILV O EV
Slide 40: Targeting to Achieve, Generate, Return
Targeting to _ ‘1 Targeting to Targetingto ACHIEVE | GENERATE RETURN | = EV-VP positive in Q4’24 and similar EBIT-adjusted |" cash to an.EV EBIT tailwind in 2025 and healthy Auto Free shareholders i =4B range Cash Flow in 2025 consistently
Slide 41: The GM Story Only Gets Better
THE GM STORY INLY GETS BETTER
Slide 42: Guidance Reconciliations: EBIT-adjusted
Guidance Reconciliations: The following table reconciles expected Net income attributable to stockholders under U.S. GAAP to expected EBIT-adjusted (dollars in billions): Year Ending December 31, 2024 Previous Updated Net income attributable to stockholders $10.1-11.5 $10.0-11.4 Income tax expense 2
Slide 43: Guidance Reconciliations: Adjusted Automotive Free Cash Flow
Guidance Reconciliations: The following table reconciles expected automotive net cash provided by operating activities under U.S. GAAP to expected adjusted automotive free cash flow (dollars in billions): Year Ending December 31, 2024 Previous Updated Net automotive cash provided by operating activi
Slide 44: Segment Revenue
Segment Revenue: The following table summarizes net sales and revenue by segment (dollars in millions): Total Reclassifications / GMNA GMI Corporate Eliminations Automotive Cruise GM Financial Eliminations Total Six Months Ended, June 30, 2024 Net Sales and Revenue $76,824 $6,380 $68 — $83,272 $51 $
Slide 45: EBIT-adjusted
EBIT-adjusted: The following table reconciles Net income attributable to stockholders under U.S. GAAP to EBIT-adjusted and segment profit (loss) (dollars in millions): Six Months Ended, June 30, 2024 Income tax expense (benefit) a 8 8 Automotive interest income & & Cruise restructuring(b) 58: 8 Buic
Slide 46: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow: The following table reconciles Net automotive cash provided by operating activities under U.S. GAAP to adjusted automotive free cash flow (dollars in millions): Six Months Ended, June 30, 2024 Less: Capital expenditures ‘Add: Employee separation costs Adjusted aut
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