General Motors Company · NYSE:GM
General Motors — Q3 2020 Earnings Presentation
27 slides from General Motors's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Results
Q3 2020 RESULTS November 5, 2020 GMC HUMMER 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 law. Forward-looking statements are any statements other than state
Slide 3: Accelerating Transformation to Seize Opportunities
ACCELERATING TRANSFORMATION TO SEIZE OPPORTUNITIES LEADING TRUCK AND SUV MARKET SHARE, WITH GROWING STRONG AND GROWING FRANCHISES > LARGE PICKUP MARKET SHARE LEADING IN FUTURE OF MOBILITY INVESTMENT IN ULTIUM PLATFORM DEMONSTRATES COMMITMENT TO AN ALL-ELECTRIC FUTURE ACHIEVING TRANSFORMATIONAL COST
Slide 4: Third Quarter Performance
THIRD QUARTER PERFORMANCE EPS-DILUTED-ADJ. ADJ. AUTO FREE CASH FLOW EPS-Diluted-Adj.; EBIT-Adj. & Margin • Q3-20 EBIT-adj. higher YOY primarily due to the non- $9.1B Adj. Auto recurrence of the 2019 UAW strike, launch of our all- $2.83 Free Cash Flow new full-size SUVs, cost actions, and strong used
Slide 5: EBIT-Adjusted
EBIT-ADJUSTED In $B Q3-2019 Q3-2020 $5.3 $4.4 $3.0 $3.0 $1.2 $0.7 $0.0 ($0.1) ($0.3) ($0.2) ($0.1) ($0.5) GMNA GMI GM Financial Cruise Corp/Elims Total Company 2021 GMC Yukon AT4 5
Slide 6: Third Quarter EBIT-Adjusted Performance
THIRD QUARTER EBIT-ADJUSTED PERFORMANCE In $B GM Financial: 0.5 Performance/Other: 0.8 PSA / Lyft 1: 0.4 Warranty-Related: 0.3 FX: (0.2) GMNA: (2)k GMI: (66)k Volume / Mix GMNA: Slightly lower primarily due to planned lower car production, launch of full-size SUVs and lower crossover production, par
Slide 7: GMNA Performance
GMNA PERFORMANCE NET REVENUE ($B) EBIT-ADJ. ($B) 801 775 799 684 15.0% 10.8% 8.5% 331 1.2% $28.0 $29.1 (0.9)% GMNA: $22.7 $25.8 $3.0 $0.3 $2.2 $4.4 $11.6 • 15% EBIT-adj. margins - - ($0.1) - driven primarily by Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 cost actions, disciplined inc
Slide 8: GMI Performance
GMI PERFORMANCE GMI NET REVENUE ($B) GMI EBIT-ADJ. EX. CHINA EI ($B) 232 268 191 166 - ($0.3) ($0.4) ($0.4) ($0.4) ($0.3) $4.4 $3.8 90 - - $3.3 - $2.7 - (9.1)% (8.1)% (9.2)% - $1.7 - (11.7)% - - - (26.2)% - Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Wholesales EBIT-Adj. margin from
Slide 9: GM China JV Performance
GM CHINA JV PERFORMANCE CHINA JV NET REVENUE ($B) 1 CHINA JV EQUITY INCOME ($B) $11.0 4.7% 5.2% 6.1% 4.9% $9.7 $10.3 $9.2 $0.3 $0.2 (8.1)% $0.2 $0.3 $4.3 - - ($0.2) - - - Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Total Auto China JV NI/Rev CHINA JV WHOLESALES (000’s) 2 China: 883 •
Slide 10: Cruise Financial Performance
($B) Q3 YTD Financial Performance 2020 2019 2020 2019 Revenue 1 0.0 0.0 0.1 0.1 EBIT-adjusted (0.2) (0.3) (0.6) (0.7) Cash used in operating activities (0.2) (0.2) (0.6) (0.6) 10 1 Reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in
Slide 11: GM Financial: EBT-Adjusted, Earning Assets, Liquidity
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 15.1% 15.4% 16.4% 45% 53% 14.3% 37% 38% 43% 12.1% $1.2 $97.8 $96.5 $96.1 $94.0 $96.5 $0.7 $0.5 $0.2 $0.2 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Return on Average Tangible Common Equity GMF as % of GM U.S. Retail Sales (units) LIQUIDIT
Slide 12: Adjusted Automotive Free Cash Flow
ADJUSTED AUTOMOTIVE FREE CASH FLOW Q3 YTD ($B) 2020 2019 2020 2019 Net Income 4.0 2.3 3.5 6.9 Income tax and net automotive interest expense 1.2 0.3 1.8 1.2 EBIT adjustments 0.1 0.3 0.7 0.2 EBIT-Adjusted 1 5.3 3.0 6.0 8.3 GMF EBT-Adjusted (1.2) (0.7) (1.7) (1.6) Cruise EBIT Loss-Adjusted 0.2 0.3 0.6
Slide 13: Automotive Liquidity
AUTOMOTIVE LIQUIDITY AUTOMOTIVE LIQUIDITY ($B) TOTAL AUTOMOTIVE DEBT ($B) $34.6 $37.8 $28.7 $7.6 $17.3 $10.6 $14.4 $30.2 $17.3 $14.4 $18.1 Dec 31, 2019 September 30, 2020 Dec 31, 2019 September 30, 2020 Available Credit Facilities Cash, Cash Equivalents and Marketable Debt Securities Senior Unsecure
Slide 14: Summary
SUMMARY Strong Q3-20 EBIT-adj. driven primarily by strong SUV and pickup-truck performance, cost actions and strong GMF results Results demonstrate the strength and resilience of the business and our ability to fund EV and AV growth initiatives Auto liquidity remains strong at the end of Q3-20; expe
Slide 15: Select Supplemental Financial Information
SELECT SUPPLEMENTAL FINANCIAL INFORMATION 2021 Silverado HD Carhartt Special Edition 15
Slide 16: Q3-20 GAAP Results
Q3-20 GAAP RESULTS (in $B except where noted) Q3 YTD 2020 F/(U) 2020 F/(U) vs. 2019 vs. 2019 Net revenue 35.5 0.0 85.0 (21.4) Operating income 4.4 2.1 3.9 (2.2) Net income attributed to stockholders 4.0 1.7 3.6 (3.3) EPS-diluted ($/share) 2.78 1.18 2.40 (2.34) Net cash provided by operating activiti
Slide 17: Regional Q3 EBIT-Adjusted Performance
REGIONAL Q3 EBIT-ADJUSTED PERFORMANCE GMNA GMI Performance/Other 0.7 Warranty-Related 0.3 ($B) ($B) YTD -20 7.9 (5.0) (0.5) 1.5 2.9 (0.3) 6.5 (0.1) (0.4) 0.1 0.3 0.2 (0.8) (0.8) 17
Slide 18: Global Deliveries
GLOBAL DELIVERIES (000's) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 North America 863 853 719 565 765 U. S. 739 736 618 492 665 Asia/Pacific, Middle East and Africa 828 1,005 604 845 905 China 690 836 462 714 771 South America 176 176 133 57 123 Brazil 124 130 95 40 89 Global Deliveries – in GM Market
Slide 19: Global Market Share
GLOBAL MARKET SHARE Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 North America 16.0% 16.2% 16.8% 16.0% 15.9% U. S. 16.6% 16.8% 17.3% 16.2% 16.6% Asia/Pacific, Middle East and Africa 7.6% 8.1% 6.8% 9.0% 8.1% China 12.1% 11.9% 11.7% 11.2% 11.6% South America 15.5% 15.8% 15.3% 14.6% 14.3% Brazil 17.2% 17.1%
Slide 20: Reconciliation of EBIT-Adjusted
RECONCILIATION OF EBIT-ADJUSTED ($B) Q3 Q2 Q1 Q4 2020 2019 2020 2019 2020 2019 2019 2018 Net income (loss) attributable to 4.0 2.4 (0.8) 2.4 0.3 2.2 (0.2) 2.0 stockholders Income tax expense (benefit) 0.9 0.3 (0.1) 0.5 0.4 0.1 (0.2) (0.6) Automotive interest expense 0.3 0.2 0.3 0.2 0.2 0.2 0.2 0.2 A
Slide 21: Impact of Special Items on GAAP Reported Earnings
IMPACT OF SPECIAL ITEMS ON GAAP REPORTED EARNINGS ($B) Q3 2020 Q3 2019 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 35.5 — 35.5 35.5 — 35.5 Costs and expenses Automotive and other cost of sales 27.2 (0.1) 1,2 27.1 28.2 (0.2)1,2 28
Slide 22: Calculation of ROIC-Adjusted
CALCULATION OF ROIC-ADJUSTED ($B) Four quarters ended September 30, 2020 2019 Numerator: EBIT (loss)-adjusted 6.1 11.1 Denominator: Average equity 1 42.5 42.8 Add: Average automotive debt and interest liabilities (excluding finance leases) 27.0 14.8 Add: Average automotive net pension & OPEB liabili
Slide 23: Effective Tax Rate-Adjusted
EFFECTIVE TAX RATE-ADJUSTED ($M) Q3 YTD 2020 2019 2020 2019 EBIT-adjusted $5,284 $2,966 $5,998 $8,288 Less: Noncontrolling interests 27 39 57 63 Less: Net interest expense 276 77 628 249 EBT-adjusted 4,981 2,850 5,313 7,976 Tax expense 887 271 1,132 932 Impact of special items 1 14 93 82 134 Tax adj
Slide 24: GM Financial - Key Metrics
GM FINANCIAL - KEY METRICS Q3 2020 Q3 2019 9 MOS. 2020 9 MOS. 2019 Revenue ($B) 3.4 3.7 10.4 10.9 Total retail originations ($B) 12.8 11.3 36.2 36.6 Retail finance delinquencies (>30 days) 2.9% 4.2% 2.9% 4.2% Annualized net charge-offs as % of average retail 1.2% 1.6% 1.5% 1.5% finance receivables T
Slide 25: GM Financial - Return on Equity
GM FINANCIAL - RETURN ON EQUITY Four quarters ended September 30, ($M) 2020 2019 Net income attributable to common shareholder $1,519 $1,418 Average equity 11,951 12,070 Less: average preferred equity (1,515) (1,476) Average common equity 10,436 10,594 Less: average goodwill (1,175) (1,187) Average
Slide 26: EPS-Diluted-Adjusted Reconciliation
EPS-DILUTED-ADJUSTED RECONCILIATION Q3 YTD 2020 2019 2020 2019 Diluted earnings per common share $2.78 $1.60 $2.40 $4.74 Adjustments 1 0.05 0.18 0.46 0.12 Tax effect on adjustments 1 — (0.06) (0.06) (0.09) Tax adjustment 2 — — 0.16 — EPS-diluted-adjusted $2.83 $1.72 $2.96 $4.77 1 See slide 20 for de
Slide 27: For Additional Information Please Visit
FOR ADDITIONAL INFORMATION PLEASE VISIT: https://investor.gm.com Website: GetCruise.com investorrelations@gm.com YouTube: http://bit.ly/CruiseYouTube https://www.gmfinancial.com/en-us/investor-center.html Medium: Medium.com/Cruise investors@gmfinancial.com GM’s Investor Relations website contains a
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