General Motors Company · NYSE:GM
General Motors — Q4 2020 Earnings Presentation
37 slides from General Motors's earnings presentation, Feb 10, 2021
Slide 1: February 10th, 2021 – 2021 Chevrolet Bolt EUV
February 10th, 2021 2021 Chevrolet Bolt EUV Reveal – February 14, 2021
Slide 2: Information Relevant to This Presentation
INFORMATION RELEVANT TO THIS PRESENTATION 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 statements of historical fact. Forward-looking stat
Slide 3: Generate Profitable Growth
GENERATE PROFITABLE GROWTH AS WE EXECUTE OUR VISION OF ZERO CRASHES, ZERO EMISSIONS AND ZERO CONGESTION FUTURE OF MOBILITY > $27B+ allocated to EV & AV investment through 2025 with > Leading truck & SUV market share, with growing large more than $7B planned in 2021 pickup market share > Defining EV
Slide 4: Ultium Platform Will Help Put Everyone in an EV
OUR ULTIUM PLATFORM WILL HELP PUT EVERYONE IN AN EV 30 New EVs by 2025 globally 2/3 Available in North America Select Upcoming North American Launches LYRIQ HUMMER EV Full-Size Pickup Bolt EV Crossovers Origin EV600 CELESTIQ HUMMER EV Full-Size SUV Bolt EUV Full-Size SUV Full-Size Pickup Full-Size P
Slide 5: Driving the Next Generation of Mobility
DRIVING THE NEXT GENERATION OF MOBILITY GMC HUMMER EV Cadillac LYRIQ Available late 2021 Available H1 2022 The world’s first zero Aimed at the heart of emissions, zero limits the 2M+ global luxury all-electric supertruck SUV market segment Vehicle Intelligence Platform (VIP) Super Cruise Available o
Slide 6: Wide Array of Brands Expanding into New Markets
WIDE ARRAY OF BRANDS EXPANDING INTO NEW MARKETS BrightDrop Cruise Offers a system of first- Entered a long-term to-last mile products, strategic relationship software and services with Microsoft; Cruise including the EV600 and is currently testing in the EP1 electric pallet – San Francisco without w
Slide 7: Financial Performance
FINANCIAL PERFORMANCE 2022 GMC HUMMER EV 7
Slide 8: CY Performance
CY PERFORMANCE EPS-Diluted-Adj.; EBIT-Adj. & Margin EPS-DILUTED-ADJ. ADJ. AUTO FREE CASH FLOW > Higher primarily due to full-size pickup truck and SUV pricing and performance, non-recurrence of the 2019 strike, cost actions and strong used car prices, partially offset by the production downtime due
Slide 9: CY EBIT-Adjusted
CY EBIT-ADJUSTED CY-2019 CY-2020 In $B $9.7 1 $9.1 1 $8.2 $8.4 $2.1 $2.7 ($0.2) ($0.5) ($0.7) ($0.6) ($1.0) ($0.9) GMNA GMI GM Financial Cruise Corp/Elims Total Company 1 CY-19 EBIT-adj. lower by an estimated $3.6B as a result of the 2019 strike. 9
Slide 10: CY EBIT-Adjusted Performance
CY EBIT-ADJUSTED PERFORMANCE In $B Performance/Other: $2.0 Takata Airbag-Inflator Recall: $(1.1) Other Warranty-Related: $0.7 GMNA: (507)k GMI: (332)k FX: $(0.7) China EI: $(0.6) GM Financial: $0.6 PSA/Lyft1/LMC: $0.1 Volume / Mix > GMNA: Down due to production stoppage as a result of the pandemic,
Slide 11: Fourth Quarter Performance
FOURTH QUARTER PERFORMANCE EPS-DILUTED-ADJ. ADJ. AUTO FREE CASH FLOW EPS-Diluted-Adj.; EBIT-Adj. & Margin > Higher primarily due to the non-recurrence of the 2019 strike, launch of our full-size SUVs, disciplined pricing on full-size pickups, and strong used car prices, partially offset by the Takat
Slide 12: Fourth Quarter EBIT-Adjusted
FOURTH QUARTER EBIT-ADJUSTED In $B Q4-2019 Q4-2020 $3.7 $2.6 $1.0 1 $0.3 $0.5 1 $0.3 $0.1 $0.0 ($0.1) ($0.3) ($0.3) ($0.2) GMNA GMI GM Financial Cruise Corp/Elims Total Company 1 Q4-19 EBIT-adj. lower by an estimated $2.6B as a result of the 2019 strike. 12
Slide 13: Fourth Quarter EBIT-Adjusted Performance
FOURTH QUARTER EBIT-ADJUSTED PERFORMANCE In $B GM Financial: $0.5 PSA/Lyft1/LMC: $0.4 FX: $(0.1) GMNA: 118k GMI: (53)k Performance/Other: $(1.0) Takata Airbag-Inflator Recall: $(1.1) Other Warranty-Related: $0.4 Volume / Mix > GMNA: Increased primarily due to non-recurrence of the 2019 strike, parti
Slide 14: GMNA Performance
GMNA PERFORMANCE NET REVENUE ($B) EBIT-ADJ. ($B) 775 799 802 15.0% 684 8.5% 8.7% 331 1.2% $29.1 $30.2 $0.3 $2.2 (0.9)% $4.4 $2.6 > Full year 9.4% EBIT-adj. $22.7 $25.8 $11.6 margins despite - - ($0.1) - industry declines due Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 to the pandemic
Slide 15: GMI Performance – Excluding GM China JV
GMI PERFORMANCE – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) $0.0 $4.4 $3.9 ($0.4) $3.3 - ($0.4) ($0.4) ($0.3) 0.9% - $2.7 - - $1.7 - (8.1)% (11.7)% (9.2)% - - - - - (26.2)% - Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 EBIT-Adj. margin from GMI ex. China EI WHOLESALES (00
Slide 16: GM China JV Performance
GM CHINA JV PERFORMANCE NET REVENUE ($B) 1 CHINA JV EQUITY INCOME ($B) $14.1 5.2% 6.1% 4.9% 3.5% $10.3 $11.0 $9.2 $0.3 $0.2 $0.2 $0.2 $4.3 - ($0.2) - - (8.1)% - Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Total Auto China JV NI/Rev WHOLESALES (000’s) 2 > Q4-20 China equity income fla
Slide 17: Cruise Financial Performance
($B) Q4 CY Financial Performance 2020 2019 2020 2019 Revenue 1 0.0 0.0 0.1 0.1 EBIT-adjusted (0.3) (0.3) (0.9) (1.0) Cash used in operating activities (0.3) (0.2) (0.8) (0.8) 1 Reclassified to Interest income and other non-operating income, net in our condensed consolidated income statements in the
Slide 18: GM Financial: EBT-Adjusted, Earning Assets, Liquidity
EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) 20.5% 45% 53% 43% 15.4% 16.4% 38% 41% 14.3% 12.1% $1.2 $1.0 $96.5 $96.1 $94.0 $96.5 $100.2 $0.5 $0.2 $0.2 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Return on Average Tangible Common Equity (ROATCE) GMF as % of GM U.S. Retail Sales (units
Slide 19: Automotive Liquidity
AUTOMOTIVE LIQUIDITY TOTAL AUTOMOTIVE DEBT & AUTOMOTIVE LIQUIDITY ($B) UNDERFUNDED PENSION ($B) $40.5 $34.6 $29.8 $26.3 $18.2 $7.0 $17.3 $6.4 $5.4 $5.4 $22.3 $17.5 $17.3 $14.4 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Non-U.S. Pension Available Credit Facilities Cash, Cash Equivalents and
Slide 20: Adjusted Automotive Free Cash Flow
ADJUSTED AUTOMOTIVE FREE CASH FLOW Q4 YTD ($B) 2020 2019 2020 2019 Net Income (Loss) 2.8 (0.2) 6.3 6.7 Income tax and net automotive interest expense 0.9 (0.1) 2.6 1.1 EBIT adjustments (0.0) 0.4 0.7 0.5 EBIT-adjusted 1 3.7 0.1 9.7 8.4 GMF EBT-adjusted (1.0) (0.5) (2.7) (2.1) Cruise EBIT loss-adjuste
Slide 21: 2021 Guidance
2021 GUIDANCE > Earnings power of the company is robust, with > Will not impact growth and EV initiatives continued ability to offset commodity headwinds > Prioritizing full-size trucks, SUVs and EVs and fund investments in growth opportunities > Estimated net impact included in guidance: > Expect 2
Slide 22: Summary
SUMMARY > Strong 2020 financial performance – Q4 records for > Focus on profitable growth opportunities and new EBIT-adj., EBIT-adj. margin and EPS-diluted-adj. revenue streams as we execute on an all-electric future > Demonstrated flexibility to manage through disruptions, while executing on the la
Slide 23: Select Supplemental Financial Information
SELECT SUPPLEMENTAL FINANCIAL INFORMATION 2021 Buick Envision 23
Slide 24: Q4-20 & CY-20 GAAP Results
Q4-20 & CY-20 GAAP RESULTS (in $B except where noted) Q4 CY F/(U) F/(U) 2020 2020 vs. 2019 vs. 2019 Net revenue 37.5 6.7 122.5 (14.8) Operating income 2.8 3.3 6.6 1.2 Net income attributed to stockholders 2.8 3.0 6.4 (0.3) EPS-diluted ($/share) 1.93 2.09 4.33 (0.24) Net cash provided by operating ac
Slide 25: Regional Q4 EBIT-Adjusted Performance
REGIONAL Q4 EBIT-ADJUSTED PERFORMANCE ($B) GMNA ($B) GMI ($B) ($B) CY -20 8.2 (4.1) 0.5 3.3 1.3 (0.1) 9.1 (0.2) (0.5) 0.3 0.6 0.2 (0.9) (0.5) 25
Slide 26: Global Deliveries
GLOBAL DELIVERIES (000's) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 North America 853 719 565 765 875 U. S. 736 618 492 665 771 Asia/Pacific, Middle East and Africa 1,005 605 844 903 1,082 China 836 462 714 771 954 South America 176 132 57 122 159 Brazil 130 95 40 88 115 Global Deliveries – in GM Mark
Slide 27: Global Market Share
GLOBAL MARKET SHARE Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 North America 16.2% 16.8% 16.0% 15.8% 17.3% U. S. 16.8% 17.3% 16.2% 16.5% 18.0% Asia/Pacific, Middle East and Africa 8.1% 6.8% 8.8% 7.9% 8.3% China 11.9% 11.7% 11.2% 11.5% 12.1% South America 15.8% 15.3% 14.5% 14.3% 15.2% Brazil 17.1% 17.0%
Slide 28: Reconciliation of EBIT-Adjusted
RECONCILIATION OF EBIT-ADJUSTED ($B) Q4 CY 2020 2019 2020 2019 Net income (loss) attributable to stockholders 2.8 (0.2) 6.4 6.7 Income tax expense (benefit) 0.6 (0.2) 1.8 0.8 Automotive interest expense 0.3 0.2 1.1 0.8 Automotive interest income (0.0) (0.1) (0.2) (0.4) Adjustments Transformation act
Slide 29: Impact of Special Items on GAAP Reported Earnings – CY
IMPACT OF SPECIAL ITEMS ON GAAP REPORTED EARNINGS – CY ($B) CY 2020 CY 2019 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 122.5 0.14 122.5 137.2 0.0 137.2 Costs and expenses Automotive and other cost of sales 97.5 (0.7)4 96.9 110.7
Slide 30: Impact of Special Items on GAAP Reported Earnings – Q4
IMPACT OF SPECIAL ITEMS ON GAAP REPORTED EARNINGS – Q4 ($B) Q4 2020 Q4 2019 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 37.5 (0.0) 37.5 30.8 0.0 30.8 Costs and expenses Automotive and other cost of sales 30.2 (0.1)4 30.1 25.9 (0.
Slide 31: Calculation of ROIC-Adjusted
CALCULATION OF ROIC-ADJUSTED ($B) Years Ended December 31, 2020 2019 Numerator: EBIT-adjusted 9.7 8.4 Denominator: Average equity 1 43.3 43.7 Add: Average automotive debt and interest liabilities (excluding finance leases) 27.8 14.9 Add: Average automotive net pension & OPEB liability 17.6 16.7 Less
Slide 32: Effective Tax Rate-Adjusted
EFFECTIVE TAX RATE-ADJUSTED ($M) Q4 CY 2020 2019 2020 2019 EBIT-adjusted $3,712 $105 $9,710 $8,393 Less: Noncontrolling interests 49 (4) 106 59 Less: Net interest expense 229 104 857 353 EBT-adjusted 3,434 5 8,747 7,981 Tax expense (benefit) 642 (163) 1,774 769 Impact of special items 1 (12) 54 70 1
Slide 33: GM Financial - Key Metrics
GM FINANCIAL - KEY METRICS Q4 2020 Q4 2019 CY 2020 CY 2019 Revenue ($B) 3.4 3.6 13.8 14.6 Total retail originations ($B) 13.6 10.9 49.8 47.5 Retail finance delinquencies (>30 days) 2.9% 4.5% 2.9% 4.5% Annualized net charge-offs as % of average retail 0.9% 1.8% 1.3% 1.6% finance receivables Tangible
Slide 34: GM Financial - Return on Equity
GM FINANCIAL - RETURN ON EQUITY ($M) Years Ended December 31, 2020 2019 Net income attributable to common shareholder $1,911 $1,477 Average equity 12,120 12,270 Less: average preferred equity (1,628) (1,477) Average common equity 10,492 10,793 Less: average goodwill (1,172) (1,186) Average tangible
Slide 35: EPS-Diluted-Adjusted Reconciliation
EPS-DILUTED-ADJUSTED RECONCILIATION Q4 YTD 2020 2019 2020 2019 Diluted earnings (loss) per common share $1.93 $(0.16) $4.33 $4.57 Adjustments 1 — 0.25 0.46 0.38 Tax effect on adjustments 1 — (0.04) (0.05) (0.13) Tax adjustment 1 — — 0.16 — EPS-diluted-adjusted $1.93 $0.05 2 $4.90 $4.82 3 1 See slide
Slide 36: 2021 Guidance Reconciliation
2021 GUIDANCE RECONCILIATION ($B) Year Ending Dec 31, 2021 Net income attributable to stockholders $6.8 - $7.6 Income tax expense $2.2 - $2.4 Automotive interest expense, net $1.0 EBIT-adjusted $10.0 - $11.0 Year Ending Dec 31, 2021 EPS-diluted $4.50 - $5.25 EPS-diluted adjusted $4.50 - $5.25 ($B) Y
Slide 37: 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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