General Motors Company · NYSE:GM
General Motors — Q1 2014 Earnings Presentation
30 slides from General Motors's earnings presentation, Apr 24, 2014
Slide 1: General Motors Company Q1 2014 Results
General Motors Company Q1 2014 Results April 24, 2014 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements In this presentation and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “appears,” “projected,” “positioned,” “o
Slide 3: First Quarter 2014 Performance
First Quarter 2014 Performance 2 Note: EBIT- Adjusted includes GM Financial on an Earnings Before Tax - Adjusted (EBT-Adjusted) basis * See Adjusted Automotive Free Cash Flow reconciliation on slide 20 Q1 2013 Q1 2014 vs. Q1 2013 Global Deliveries 2.4M 2.4M - Global Market Share 11.3% 11.1% Net Reve
Slide 4: First Quarter 2014 Highlights
First Quarter 2014 Highlights 3 • Paid first common stock dividend since IPO • Record China sales • Opel Mokka and Insignia propel GME results • Record Average Transaction Prices in GMNA • Full-Size SUV and HD truck launches in GMNA • All brands ranked above industry average in JD Power 2014 U.S. Cu
Slide 5: First Quarter 2014 Vehicle Recalls
First Quarter 2014 Vehicle Recalls 4 • Announced recall campaigns on approximately 7 million vehicles • Recorded charges of $1.3B to cover the cost of repair and courtesy transportation; (5.4)% GMNA EBIT-Adjusted margin impact – Ignition switch & cylinder recall ~ 2.6M vehicles - $0.7B – Other recal
Slide 6: Response to Vehicle Recalls
Response to Vehicle Recalls 5 • Independent investigation led by former U.S. Attorney • Hired Kenneth Feinberg to evaluate options in our response to families of accident victims • Created new position of Vice President Global Vehicle Safety • Announced an employee “Speak up for Safety” program • Cr
Slide 7: Summary of Q1 2014 Results
Summary of Q1 2014 Results 6 Note: EBIT- Adjusted includes GM Financial on an EBT-Adjusted basis Q1 Q1 2013 2014 Net Revenue ($B) 36.9 37.4 Operating Income / (Loss) ($B) 1.0 (0.5) Net Income to Common Stockholders ($B) 0.9 0.1 EPS – Diluted ($/Share) 0.58 0.06 Net Cash from Operating Activities – A
Slide 8: Impact of Special Items
7 Impact of Special Items * Included in Operating Income Q1 Q1 2013 2014 Net Income to Common Stockholders ($B) 0.9 0.1 EPS – Diluted ($/Share) 0.58 0.06 Included in Above ($B): Venezuela Currency Devaluation* (0.2) (0.4) Total Impact Net Income to Common Stockholders ($B) (0.2) (0.4) Total Impact E
Slide 9: Consolidated EBIT-Adjusted Quarterly Trend
Revenue ($B) 36.9 39.1 39.0 40.5 37.4 Op r. Inc/(Loss) % Rev 2. % 4.5% 5.8% 0.4% (1.4)% EBIT- Adj. % Rev 4.8 5.8 6. 4.7 .2% Wholesale (000’s) 1,554 1,631 1,577 1,651 1,468 Global Share 1.3% 1.5% 1.6% 1.4% 1.1% 1.8 2.3 2.6 1.9 0.5 0.0 1.0 2.0 3.0 4.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Consolidat
Slide 10: Consolidated EBIT-Adj. – Q1 2013 vs. Q1 2014
1.8 0.5 (0.4) (0.3) (2.1) (0.4) 1.8 EBIT-Adj. Volume Mix Price Cost Other EBIT-Adj. 9 Consolidated EBIT- Adj. – Q1 2013 vs. Q1 2014 Note: EBIT- Adjusted includes GM Financial on an EBT-Adjusted basis. Results may not foot due to rounding ($B) Q1 2013 Q1 2014 $1.3B Decrease Includes $1.3B recall-rela
Slide 11: Q1 EBIT-Adjusted by Segment
1.4 (0.2) 0.5 0.0 0.2 (0.1) 1.8 0.6 (0.3) 0.3 (0.2) 0.2 (0.1) 0.5 GMNA GME GMIO GMSA GM Financial* Corp. / Elims Total GM Q1 2013 Q1 2014 EBIT- Adjusted ($B) 10 Q1 2014 EBIT- Adjusted * GM Financial on an EBT-Adjusted basis Includes $1.3B recall-related charge
Slide 12: Key GMNA Performance Indicators
Key GMNA Performance Indicators Note: Incentive & ATP Information Based on J.D. Power and Associates Power Information Network (PIN) data 11 Avg. U.S. Retail Incentive as % of ATP GM % 10.9 11.2 12.4 11.7 11.1 11.0 11.3 11.7 10.5 10.5 10.5 10.8 11.0 11.7 10.3 GM vs. Ind. ( % / Ind. %) 1.14 1.11 1.21
Slide 13: GMNA EBIT-Adjusted
1.4 2.0 2.2 1.9 0.6 (1.0) 0.0 1.0 2.0 3.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Revenue ($B) 23.0 23.5 23.5 25.1 24.4 EBIT- Adj. % Rev 6.2% 8.4% 9.3% 7.5% 2.3% U.S. Dealer Inv (000’s) 744 708 670 748 815 Wholesale (000’s) 829 809 775 863 807 North America Share 17.0% 17.1% 16.5% 16.5% 16.5% GMNA E
Slide 14: GMNA EBIT-Adj. – Q1 2013 vs. Q1 2014
1.4 0.6 (0.1) (0.1) (2.3) (0.1) 1.7 EBIT-Adj. Volume Mix Price Cost Other EBIT-Adj. GMNA EBIT- Adj. – Q1 2013 vs. Q1 2014 13 ($B) Q1 2013 Q1 2014 $0.9B Decrease Note: Results may not foot due to rounding Includes $1.3B recall-related charge
Slide 15: GME EBIT-Adjusted
Revenue ($B) 5.3 5.6 5.4 5.7 5.6 EBIT- Adj. % Rev (2.9)% (2.0)% (4.4)% (6.4)% (5.1)% Wholesale (000’s) 275 304 287 297 291 Europe Share 7.6% 7.7% 7.8% 7.2% 7.3% (0.2) (0.1) (0.2) (0.4) (0.3) (1.0) 0.0 1.0 2.0 3.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 GME EBIT- Adjusted ($B) 14 (1) Includes Chevrol
Slide 16: GME EBIT-Adj. – Q1 2013 vs. Q1 2014
GME EBIT- Adj. – Q1 2013 vs. Q1 2014 15
Slide 17: GMIO EBIT-Adjusted
0.5 0.2 0.3 0.2 0.3 (1.0) 0.0 1.0 2.0 3.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 GMIO EBIT- Adjusted 16 Revenue ($B) 4.4 4.8 .8 4.4 3.2 EBIT-Adj. margin from consolidated operations (1.9)% (3.7)% (2.4)% (1.8)% (8.8)% Total China JV NI/Rev 11.7% 9.4% 9.4% 7.6% 11.2% Wholesale (000’s) 217 240 233 231
Slide 18: GMIO EBIT-Adj. – Q1 2013 vs. Q1 2014
0.5 0.3 (0.2) (0.2) (0.1) 0.0 0.3 EBIT-Adj. Volume Mix Price Cost Other EBIT-Adj. GMIO EBIT- Adj. – Q1 2013 vs. Q1 2014 17 ($B) Q1 2013 Q1 2014 $0.2B Decrease
Slide 19: GMSA EBIT-Adjusted
Revenue ($B) 3.7 4.3 4.4 4.1 3.0 EBIT- Adj. % Rev (1.0)% 1.3% 6.5% 0.7% (5.2)% Wholesale (000’s) 233 278 282 260 208 South America Share 17.2% 17.2% 17.7% 17.8% 16.3% 0.0 0.1 0.3 0.0 (0.2) (1.0) 0.0 1.0 2.0 3.0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 GMSA EBIT- Adjusted ($B) 18
Slide 20: GMSA EBIT-Adj. – Q1 2013 vs. Q1 2014
0.0 (0.2) (0.3) (0.1) 0.0 0.2 0.0 EBIT-Adj. Volume Mix Price Cost Other EBIT-Adj. GMSA EBIT- Adj. – Q1 2013 vs. Q1 2014 19 ($B) Q1 2013 Q1 2014 $0.1B Decrease Note: Results may not foot due to rounding
Slide 21: Adjusted Automotive Free Cash Flow
($B) Q1 2013 Q1 2014 Net Income to Common Stockholders 0.9 0.1 Adjusted for Non-Controlling Interests, Preferred Dividends & Undistributed Earnings Allocated to Series B 0.3 0.2 Deduct Non-Auto (GM Financial) (0.1) (0.1) Automotive Income 1.1 0.1 Non-Cash Special Items 0.2 0.4 Depreciation and Amort
Slide 22: Key Automotive Balance Sheet Items
Mar. 31 Dec. 31 Mar. 31 ($B) 2013 2013 2014 Cash & Current Marketable Securities 24.3 27.9 27.0 Available Credit Facilities(1) 11.0 10.4 10.4 Available Liquidity 35.3 38.3 37.4 Key Obligations: Debt 5.2 7.1 7.2 Series A Preferred Stock 5.5 3.1 3.1 U.S. Pension Underfunded Status(2) 13.9 7.3 7.2 Non-
Slide 23: GM Financial
Q1 Q1 Q1 Q1 GM Sales Penetrations 2013 2014 2013 2014 U.S. Subprime APR (<=620) 7.6% 7.9% 6.3% 7.2% U.S. Lease 21.0% 24.2% 24.4% 26.7% Canada Lease 10.1% 23.4% 22.4% 22.9% GM / GM Financial Linkage GM as % of GM Financial Loan and Lease Originations* (GM New / GMF Loan & Lease) GMF as % of GM U.S. S
Slide 24: 2014 CY Considerations
2014 CY Considerations • Total company core operating performance on plan for the year – GMNA and Consolidated International Operations performing as planned – Europe and China performing better than plan – Weaker performance in GMSA due to challenging environments in Venezuela and Brazil Challenges
Slide 25: Select Supplemental Financial Information
General Motors Company Select Supplemental Financial Information
Slide 26: Global Deliveries
Q1 Q2 Q3 Q4 Q1 (000’s) 2013 2013 2013 2013 2014 North America 761 880 808 785 745 Europe 335 379 343 336 338 Chevrolet in Europe 77 95 95 84 66 International Operations 1,030 971 973 1,085 1,122 China 816 751 745 848 919 South America 235 262 273 267 211 Brazil 141 164 171 174 137 Global Deliveries
Slide 27: Global Market Share
Q1 Q2 Q3 Q4 Q1 2013 2013 2013 2013 2014 North America 17.0% 17.1% 16.5% 16.5% 16.5% U.S. 17.7% 17.9% 17.3% 17.2% 17.0% Europe 7.6% 7.7% 7.8% 7.2% 7.3% Germany 7.3% 7.7% 7.7% 6.9% 7.2% U.K. 11.7% 11.7% 10.8% 12.3% 11.0% Russia 9.0% 8.7% 9.4% 9.2% 8.8% International Operations 9.8% 9.7% 9.9% 10.0% 10.
Slide 28: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT- Adjusted S3 Note: EBIT-Adj. includes GM Financial on an EBT-Adjusted basis. Results may not foot due to rounding * Included in Operating Income Q1 Q1 2013 2014 Income Before Income Taxes 1.6 0.1 Add Back: Net Income Attributable to Noncontrolling Interests 0.0 (0.1) Interest
Slide 29: Restructuring (not included in special items)
Restructuring (not included in special items) S4 Note: Results may not foot due to rounding Q1 Q2 Q3 Q4 Q1 ($B) 2013 2013 2013 2013 2014 GMNA 0.0 0.0 0.0 0.0 0.0 GME 0.0 0.0 0.0 (0.1) (0.2) GMIO 0.0 0.0 (0.1) (0.1) 0.0 GMSA 0.0 0.0 0.0 0.0 0.0 Total (0.1) (0.1) (0.1) (0.2) (0.3)
Slide 30: GM Financial – Key Metrics
Q1 Q1 ($M) 2013 2014 Earnings Before Tax - Adjusted 180 221 Total Loan and Lease Originations 1,979 4,185 GM as % of GM Financial Loan and Lease Originations 51% 70% Commercial Finance Receivables 836 6,483 Consumer Finance Receivables 11,191 24,122 Consumer Finance Delinquencies (>30 days) 5.8% 4.5