General Motors Company · NYSE:GM
General Motors — Q3 2021 Earnings Presentation
34 slides from General Motors's earnings presentation, Oct 27, 2021
Slide 1: Q3 2021 Results
Q3 2021 Results October 27, 2021 BRIGHTDROP EV410
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 > Margins expected to expand to 12-14% by 2030 > ~50% CAGR on software and new businesses > Core auto business margins exp
Slide 4: Substantial Revenue Growth Opportunity
Substantial Revenue Growth Opportunity AUTO SALES AND FINANCING + SOFTWARE AND NEW BUSINESSES ~$195-235B ~$180B ~$80B ICE ICE EV ~$15B EV Baseline1 2025 2030 Baseline1 2025 2030 > EVs assumed at 15% of U.S. industry by 2025 and 40-50% by 2030 > Includes Cruise, BrightDrop, Software-enabled-services,
Slide 5: Software and New Businesses Driving ~$80B in Revenue Potential by 2030
Software and New Businesses Driving ~$80B in Revenue Potential by 2030 2030 OPPORTUNITY SOFTWARE AND NEW BUSINESSES ~$50B SOFTWARE-ENABLED- SERVICES Including ~$6B OnStar ~$80B Insurance ~$20-25B ~$15B Baseline 1 2025 2030 ~$10B+ ~$1B 1 Based on historical average (2016-2020). 5
Slide 6: GM Remains a Major Accelerator of Cruise's Mission
GM REMAINS A MAJOR ACCELERATOR OF CRUISE'S MISSION, WITH THE PURPOSE-BUILT ORIGIN LAUNCHING IN 2023 – AND THE BEGINNING OF THE RAPID SCALING PHASE For more information on Cruise’s “Under the Hood” Tech Day November 4th contact: investorrelations@gm.com 6
Slide 7: 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 8: Financial Information
Financial Information 2022 CHEVROLET SILVERADO ZR2 8
Slide 9: Third Quarter Performance
Third 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 ($4.4B) Adj. Auto commodity and logistics costs, partially offset $2.83 Free Cash
Slide 10: Third Quarter EBIT-adjusted
Third Quarter EBIT -adjusted In $B Q3-2020 Q3-2021 $5.3 $4.4 $2.9 $2.1 $1.2 $1.1 $0.0 $0.2 ($0.2) ($0.3) ($0.1) ($0.2) GMNA GMI GM Financial Cruise Corp/Elims Total Company DECISIVE AND AGILE IN MANAGING THROUGH THE SEMICONDUCTOR SHORTAGE WHILE EXECUTING ON OUR GROWTH STRATEGY 10
Slide 11: Third Quarter EBIT-adjusted Performance
Third Quarter EBIT -adjusted Performance In $B GMNA: (376)k GMI: (53)k GM Financial: ($0.1) FX: $0.1 Other Investments: $0.11 VOLUME / MIX COST > GMNA: Decreased volume due to production disruptions and > GMNA: Increased due to non-recurrence of the 2020 improved mix due to the prioritization of ful
Slide 12: GMNA Performance
GMNA Performance NET REVENUE ($B) EBIT-ADJ. ($B) 799 802 15.0% 664 642 12.1% 423 8.7% 10.4% 10.3% $47K+ $29.1 $30.2 $26.0 $27.9 Q3 U.S. AVERAGE $20.6 $4.4 $2.6 $3.1 $2.9 $2.1 TRANSACTION PRICE - Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Wholesales (000'S) EBIT-Adj. Margin 11.0% YTD
Slide 13: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) ($0.3) $0.0 $0.0 0.9% ($0.3) ($0.0) 0.0% - $3.9 - (1.4)% $2.7 $3.1 $2.8 $2.8 - - - - (9.2)% (9.3)% - - Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 - - Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 EBIT-Adj. margin from GMI ex. China EI WHOLESALES (000’s) 216
Slide 14: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 $14.1 5.9% 5.9% 5.3% $11.0 $9.9 $10.3 4.9% 3.5% $9.0 - $0.3 $0.2 $0.3 $0.3 $0.3 - Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Total China Auto JV NI/Rev WHOLESALES (000’s)1 1,106 848 675 705 Q3 2021 HIGHLIGHTS 620 > E
Slide 15: Cruise Financial Performance
($B) Q3 YTD Financial Performance 2021 2020 2021 2020 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted (0.3) (0.2) (0.8) (0.6) Cash used in operating activities (0.2) (0.2) (0.7) (0.6) GM FINANCIAL WILL PROVIDE CRUISE A $5B LINE OF CREDIT TO FUND THE PURCHASE OF AVs FROM GM – BRINGING CRUISE’S TOTAL LIQUIDITY
Slide 16: GM Financial: EBT-Adjusted and Earning Assets
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 35.5% 32.7% 42.6% 41.1% 43.8% 43.1% 44.3% 27.3% 16.4% 20.5% $96.5 $100.2 $100.8 $102.7 $101.5 $1.2 $1.0 $1.2 $1.6 $1.1 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Return on Average Tangible Common Equity (ROTCE) GMF as % of GM U.S. Retail
Slide 17: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q3 YTD ($B) 2021 2020 2021 2020 Net Income 2.4 4.0 8.2 3.5 Income tax and net automotive interest expense 0.3 1.2 2.9 1.8 EBIT adjustments1 0.2 0.1 0.3 0.7 EBIT-Adjusted 2.9 5.3 11.5 6.0 GMF EBT-Adjusted (1.1) (1.2) (3.9) (1.7) Cruise EBIT Loss-Adjusted 0.3 0.2 0.8
Slide 18: Automotive Liquidity and Debt
Automotive Liquidity and Debt AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $40.5 $17.5 $16.8 $32.7 $18.2 $17.2 $22.3 $15.5 Dec 31, 2020 Sept 30, 2021 Dec 31, 2020 Sept 30, 2021 Available Credit Facilities Senior Unsecured Notes and Other Cash, Cash Equivalents and Marketable Debt Securities
Slide 19: Updated FY2021 Guidance
Updated FY2021 Guidance High End of EBIT-Adj. and EPS-Diluted-Adj. Guidance Previous Guidance EBIT-ADJ. $11.5B - $13.5B $11.5B - $13.5B EPS-DILUTED-ADJ. $5.70 - $6.70 $5.40 - $6.40 ADJ. AUTO FREE CASH FLOW ~$1.0B $1.0B - $2.0B1 EXPECT EBIT-ADJUSTED AND EPS-DILUTED-ADJUSTED TO APPROACH THE HIGH END O
Slide 20: Summary
Summary Q3 2021 RESULTS WHAT’S TO COME > Achieved EBIT-Adjusted of $2.9B as we continue to > Execute and deliver on the transformational growth plan we develop solutions to mitigate the impacts of the shared at our October 6-7th investor event semiconductor shortage > Developing a full EV portfolio
Slide 21: Select Supplemental Financial Information
Select Supplemental Financial Information 2022 CADILLAC CT5-V BLACKWING 21
Slide 22: Q3-2021 GAAP Results
Q3-2021 GAAP Results ($B except where noted) Q3 YTD F/(U) F/(U) 2021 2021 vs. 2020 vs. 2020 Net revenue 26.8 (8.7) 93.4 8.5 Operating income 1.6 (2.8) 7.8 3.9 Net income attributed to stockholders 2.4 (1.6) 8.3 4.7 Net Income margin 9.0% (2.4) ppts 8.9% 4.7 ppts EPS-diluted ($/share) $1.62 ($1.16) $
Slide 23: Regional Q3 EBIT-adjusted Performance
Regional Q3 EBIT -adjusted Performance ($B) GMNA ($B) GMI YTD 2021 $6.5 $(2.3) $4.6 $5.0 $(6.2) $0.5 $8.2 $(0.8) $(0.1) $0.6 $0.6 $(0.3) $0.6 $0.6 23
Slide 24: Global Deliveries
Global Deliveries (000's) Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 North America 522 794 746 875 765 U.S. 447 688 642 771 665 Asia/Pacific, Middle East and Africa 719 875 880 1,082 903 China 624 751 780 954 771 South America 70 88 118 159 122 Brazil 36 50 75 115 88 Global Deliveries – in GM Markets 1
Slide 25: Global Market Share
Global Market Share Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 North America 12.2% 14.8% 15.7% 17.3% 15.9% U.S. 12.8% 15.2% 16.0% 18.0% 16.6% Asia/Pacific, Middle East and Africa 6.9% 7.7% 7.3% 8.2% 7.9% China 10.8% 11.3% 11.7% 12.1% 11.5% South America 7.8% 9.8% 13.3% 15.2% 14.3% Brazil 7.2% 9.1% 14.2
Slide 26: Reconciliation of EBIT-adjusted
Reconciliation of EBIT -adjusted ($B) Q3 Q2 Q1 Q4 2021 2020 2021 2020 2021 2020 2020 2019 Net income (loss) attributable to stockholders 2.4 4.0 2.8 (0.8) 3.0 0.3 2.8 (0.2) Income tax expense (benefit) 0.2 0.9 1.0 (0.1) 1.2 0.4 0.6 (0.2) Automotive interest expense 0.2 0.3 0.2 0.3 0.3 0.2 0.3 0.2 Au
Slide 27: Impact of Special Items on GAAP Reported Earnings
Impact of Special Items on GAAP Reported Earnings ($B) Q3 2021 Q3 2020 Special Adjusted Special Adjusted Reported Reported items (Non-GAAP) items (Non-GAAP) Total net sales and revenues 26.8 — 26.8 35.5 — 35.5 Costs and expenses Automotive and other cost of sales 20.7 — 20.7 27.2 (0.1)2 27.1 GM Fina
Slide 28: EPS-Diluted-adjusted Reconciliation
EPS-Diluted-adjusted Reconciliation Q3 YTD 2021 2020 2021 2020 Diluted earnings per common share $1.62 $2.78 $5.55 $2.40 Adjustments1 0.11 0.05 0.18 0.46 Tax effect on adjustments2 (0.03) — (0.03) (0.06) Tax adjustment3 (0.18) — 0.03 0.16 EPS-diluted-adjusted $1.52 $2.83 $5.73 $2.96 1 See slide 26 f
Slide 29: Effective Tax Rate-adjusted
Effective Tax Rate -adjusted ($B) Q3 YTD 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 tax
Slide 30: Calculation of ROIC-adjusted
Calculation of ROIC -adjusted ($B) Four quarters ended September 30, 2021 2020 Numerator: EBIT (loss)-adjusted 15.2 6.1 Denominator: Average equity1 52.4 42.5 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.3 27.0 Add: Average automotive net pension & OPEB liabili
Slide 31: GM Financial - Key Metrics
GM Financial - Key Metrics Q3 2021 Q3 2020 YTD 2021 YTD 2020 Revenue ($B) 3.4 3.4 10.2 10.4 Total retail originations ($B) 11.6 12.8 40.6 36.2 Retail finance delinquencies (>30 days) 2.2% 2.9% 2.2% 2.9% Annualized net charge-offs as % of average retail 0.5% 1.2% 0.6% 1.5% finance receivables Tangibl
Slide 32: GM Financial - Return on Equity
GM Financial - Return on Equity ($B) Four quarters ended September 30, 2021 2020 Net income attributable to common shareholder 3.5 1.5 Average equity 14.0 12.0 Less: average preferred equity (2.0) (1.5) Average common equity 12.0 10.4 Less: average goodwill (1.2) (1.2) Average tangible common equity
Slide 33: Full-Year 2021 Guidance Reconciliation
Full-Year 2021 Guidance Reconciliation ($B) Year Ending Dec 31, 2021 Net income attributable to stockholders $8.1 - $9.6 Income tax expense $2.3 - $2.8 Automotive interest expense, net $0.8 Adjustments1 $0.3 EBIT-adjusted $11.5 - $13.5 Year Ending Dec 31, 2021 Diluted earnings per common share $5.52
Slide 34: 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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