General Motors Company · NYSE:GM
General Motors — Q4 2023 Earnings Presentation
45 slides from General Motors's earnings presentation, Jan 30, 2024
Slide 1: Q4 2023 Earnings
Cadillac Escalade IQ Consistently Delivering Strong Financial Results Q4 2023 Earnings January 30, 2024
Slide 2: Table of Contents
Table of Contents Page 4 Highlights ICE Portfolio Optimization EV Acceleration New Business Growth Page 13 2024 Guidance Page 14 Financial Information Page 32 Supplemental Financial Information Chevrolet Corvette E-Ray 2
Slide 3: Cautionary Note on Forward-Looking Statements
Cautionary Note on Forward-Looking Statements This communication 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-lookin
Slide 4: 2023 Highlights
2023 Highlights Optimizing our core business to continue investing in our future U.S. Market Leader #1 in total sales Total company revenue grew ~10% Earned #1 ranking on J.D. Power #1 in total trucks YoY, with U.S. market share up~0.3 Initial Quality Study for the #1 in full-size SUVs ppts. and inc
Slide 5: Continued Strong Demand Drives Growth into 2024
Continued Strong Demand Drives Growth into 2024 Leading in many of the industry’s highest volume, highest margin ICE segments • 2023 Incentives ~20% below the industry average with ATPs ~11% GMC Sierra AT4 higher than the industry average • Leader in full-size pickup segment market share • #1 in ful
Slide 6: Capitalizing on Crossover Opportunities
Capitalizing on Crossover Opportunities Sold more than 1M in the U.S. in 2023 Chevrolet Trailblazer • Leader in affordable small crossovers with near zero incentives • ~400% Chevrolet Trax retail market share increase in small crossovers segment since launch • Buick Envista sales growing fast, with
Slide 7: 2024 ICE Vehicle Launches
2024 ICE Vehicle Launches GMC Acadia Chevrolet Equinox Buick Enclave More space, power and technology Efficient redesign of Chevrolet’s top-selling crossover Continues Buick’s momentum with introduction of next-generation SUV later this year Chevrolet Traverse Chevrolet Tahoe Chevrolet Suburban Adds
Slide 8: 2024 EV Launches
2024 EV Launches Chevrolet Blazer EV Chevrolet Silverado EV RST Chevrolet Equinox EV Production launched in Q4 and is ramping now Only electric pickup capable of up to 10,000-lbs towing Expressive design in an affordable midsize crossover capacity and 450 miles of driving range (starting MSRP: $34,9
Slide 9: Competitive Advantage from Developing the North American EV Supply Chain Ecosystem
Competitive Advantage from Developing the North American EV Supply Chain Ecosystem • Quickly addressed temporary IRA ineligibility; new production of the Chevrolet Blazer EV and Cadillac LYRIQ will qualify for All battery production now supports the full $7,500 consumer credit full $7,500 EV tax cre
Slide 10: GM Energy Expands Public Charging
GM Energy Expands Public Charging In total, GM EV drivers have access to ~174k public chargers via myBrand app and growing • At least 30,000 high-powered • 15,000 Tesla Superchargers open • Through collaborations with chargers by 2030, as part of a to GM customers by H1 2024 Pilot Company and EVgo,
Slide 11: Unique Manufacturing Flexibility in Both ICE and EV
Unique Manufacturing Flexibility in Both ICE and EV • Prepared to meet customer demand for both ICE and EV as market conditions evolve • Agility in manufacturing and vehicle portfolio • Ramos Arizpe and Spring Hill plants flexible between ICE and EV • Factory Zero (Detroit) is an all-EV truck plant
Slide 12: Cruise: Committed to Transparency and Earning Trust
Cruise: Committed to Transparency and Earning Trust • Released the full 3rd party Quinn Emanuel report regarding the October 2, 2023 incident in San Francisco, which includes a redacted copy of the Exponent Inc. technical root cause analysis • Accepted conclusions from the report and will act upon a
Slide 13: CY 2024 Guidance
CY 2024 Guidance Expect to deliver consistent financial results in 2024 2024 vs 2023 Expected EBIT-adj. Key Variance Drivers $12-14B $8.50-$9.50 Tailwinds: Headwinds: EBIT–adj. EPS–diluted–adj. • Non-recurrence of the UAW • Lower industry pricing strike, LG agreements and • Higher labor costs substa
Slide 14: Financial Information
Financial Information Chevrolet Silverado EV RST 14
Slide 15: CY 2023 Financial Highlights
CY 2023 Financial Highlights $171.8B $12.4B Revenue EBIT–Adj. $11.7B Adj. Auto FCF 3,768K Wholesale units 7.2% EBIT-Adj. Margin $7.68 EPS-Diluted-Adjusted 15
Slide 16: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights $43.0B Revenue $1.8B EBIT–Adj. $1.3B Adj. Auto FCF 943K Wholesale units 4.1% EBIT-Adj. Margin $1.24 EPS-Diluted-Adjusted 16
Slide 17: CY 2023 Performance
CY 2023 Performance EBIT-ADJ. & MARGIN; EPS-DILUTED-ADJ. EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 • YoY decrease driven by higher variable costs, including EV inventory allowance adjustments and warranty, lower pension income, normalized GMF EBT, strike impact and higher Cruise expense,
Slide 18: CY 2023 EBIT-Adjusted ($B)
CY 2023 EBIT-Adjusted ($B) GMNA strong core auto operating performance driven by • Normalized GMF EBT, at the top of the 2023 guidance range continued strong pricing paired with market share gains, more than offset by higher variable costs, including EV • Higher Cruise expense as a result of operati
Slide 19: CY 2023 EBIT-Adjusted Performance ($B)
CY 2023 EBIT-Adjusted Performance ($B) GM Financial: $(1.1)B GMNA: 222K China Auto JV: $(0.2)B GMI: (33)K Fx/Other: $(0.2)B VOLUME/MIX PRICE COST Increase in GMNA driven by robust Favorable pricing conditions extended Increase primarily driven by $1.7B EV inventory customer demand in high volume int
Slide 20: Fourth Quarter Performance
Fourth Quarter Performance EPS-DILUTED-ADJ.; EBIT-ADJ. & MARGIN EPS-DILUTED-ADJ.1 EBIT-ADJ.1 ($B) & EBIT-ADJ. MARGIN1 • Decrease due to lower volume and mix driven by the strike impact, EV inventory allowance adjustments, higher Cruise expense and lower pension income, partially offset by favorable
Slide 21: Fourth Quarter EBIT-Adjusted ($B)
Fourth Quarter EBIT-Adjusted ($B) GMNA decrease mainly driven by EV inventory allowance Higher Cruise expense as a result of the 2023 operational adjustments, and the strike impact, partially offset by favorable expansion. Cruise driverless operations were voluntarily paused pricing and lower fixed
Slide 22: Fourth Quarter EBIT-Adjusted Performance ($B)
Fourth Quarter EBIT-Adjusted Performance ($B) GMNA: (5)K GM Financial: $(0.1)B GMI: (18)K China Auto JV: $(0.1)B VOLUME/MIX PRICE COST Lower GMNA volume and mix due to Favorable pricing conditions extended Increase primarily driven by $1.1B EV strike lost units, paired with higher EV into the 4th qu
Slide 23: GMNA Performance
GMNA Performance CY 2023 NET REVENUE ($B) EBIT-ADJ. ($B) 2.6M Vehicles Sold in the U.S. 14% increase YoY ~$51K 2023 U.S. ATP with incentives below industry average ~0.3 pts U.S. DEALER INVENTORY (000’S)1 U.S. EV SALES (000’S) Growth in U.S. market share YoY GMNA Strong EBIT-Adj. margin 2023 margin o
Slide 24: GMI Performance – Excluding GM China JV
GMI Performance – Excluding GM China JV NET REVENUE ($B) EBIT-ADJ. ($B) WHOLESALES (000’S) HIGHLIGHTS $0.8B 2023 EBIT-Adj, up $0.3B YoY, primarily driven by strong pricing in GMSA and AMEO, paired with gains on asset sales in Korea, partially offset by cost pressures and Fx headwinds largely due to
Slide 25: GM China Auto JV Performance
GM China Auto JV Performance NET REVENUE ($B)1 EQUITY INCOME ($B)2 WHOLESALES (000’S)1 HIGHLIGHTS $0.4B China equity income in 2023 despite continued pricing pressure in the very competitive China market 1 China Auto JV Net Revenue and Wholesales not consolidated in GM financial results. 2 China Aut
Slide 26: Cruise
Cruise ($B) Q4 YTD Financial Performance 2022 2023 2022 2023 Revenue1 0.0 0.0 0.1 0.1 EBIT-adjusted2 (0.5) (0.8) (1.9) (2.7) Cash used in operating activities (0.5) (0.5) (1.8) (1.9) Cash, cash equivalents and marketable securities3,4 2.9 1.3 2.9 1.3 $0.8B YoY increase in expenses driven by developm
Slide 27: GM Financial
GM Financial EBT-ADJUSTED ($B) ENDING EARNING ASSETS ($B) LIQUIDITY ($B) HIGHLIGHTS x x x x x EBT-Adjusted results down YoY primarily due to moderation in credit performance; higher effective yields and portfolio growth offset by increased interest costs Earning assets increased YoY driven by growth
Slide 28: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q4 YTD ($B) 2022 2023 2022 2023 Net Income 2.0 2.0 9.7 9.8 Income tax and net automotive interest expense 0.6 (0.9) 2.4 0.4 EBIT adjustments1 1.2 0.6 2.1 1.9 Net loss (income) attributable to noncontrolling interests (0.0) 0.1 0.2 0.3 EBIT-adjusted 3.8 1.8 14.5 12.
Slide 29: Automotive Liquidity and Debt
Automotive Liquidity and Debt • Generated full year auto adjusted free cash flow of $11.7 billion • Returned approximately $12 billion to our shareholders through dividends and share repurchases, including the impact of the $10 billion accelerated share repurchase program initiated in Q4 29
Slide 30: Regional Q4 EBIT-Adjusted Performance ($B)
Regional Q4 EBIT-Adjusted Performance ($B) GMNA GMI $13.0 $2.3 $(0.9) $3.2 $(5.1) $(0.2) 12.3 $1.1 $(0.1) $0.1 $1.2 $(0.3) $(0.7) 1.2 Year to Date 2023 Year to Date 2023 30
Slide 31: Summary
Summary 2023 Results What’s to Come • Consistently meeting or exceeding our financial targets • Expect to deliver consistent financial results in 2024 • Ongoing strength of core auto business paired with GMF • Improvements in our cost structure, on track to achieve results driving robust financial p
Slide 32: Supplemental Financial Information
Supplemental Financial Information Chevrolet Tahoe Z71 32
Slide 33: Fourth Quarter and CY 2023 GAAP Results
Fourth Quarter and CY 2023 GAAP Results Q4 YTD All amounts in $B except EPS-diluted 2022 2023 2022 2023 Net revenue 43.1 43.0 156.7 171.8 Operating income 2.6 0.9 10.3 9.3 Net income attributed to stockholders 2.0 2.1 9.9 10.1 Net income margin 4.6% 4.9% 6.3% 5.9% EPS-diluted ($/share) $1.39 $1.59 $
Slide 34: Global Deliveries
Global Deliveries (000's) Q4 2022 CY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 CY 2023 North America 729 2,680 707 805 796 747 3,055 U.S. 623 2,274 603 692 674 625 2,595 Asia/Pacific, Middle East and Africa 700 2,808 569 670 703 735 2,675 China 576 2,303 462 526 542 569 2,099 South America 124 451 106 10
Slide 35: Global Market Share
Global Market Share Q4 2022 CY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 CY 2023 North America 16.2% 15.5% 15.8% 15.6% 15.8% 15.2% 15.6% U.S. 16.7% 16.0% 16.4% 16.3% 16.5% 15.7% 16.2% Asia/Pacific, Middle East and Africa 6.0% 6.4% 5.4% 6.1% 5.9% 5.7% 5.7% China 9.1% 9.8% 9.1% 8.6% 8.3% 7.9% 8.4% South Am
Slide 36: Reconciliation of EBIT-Adjusted
Reconciliation of EBIT-Adjusted ($B) Q1 Q2 Q3 Q4 2022 2023 2022 2023 2022 2023 2022 2023 Net income (loss) attributable to stockholders 2.9 2.4 1.7 2.6 3.3 3.1 2.0 2.1 Income tax expense (benefit) (0.0) 0.4 0.5 0.5 0.8 0.5 0.6 (0.9) Automotive interest expense 0.2 0.2 0.2 0.2 0.3 0.2 0.3 0.2 Automot
Slide 37: Impact of Special Items on GAAP Reported Earnings - CY
Impact of Special Items on GAAP Reported Earnings - CY ($B) CY 2022 CY 2023 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 156.7 — 156.7 171.8 — 171.8 Costs and expenses 6,8 1,3,4,5 Automotive and other cost of sales 126.9 (0.7) 126
Slide 38: Impact of Special Items on GAAP Reported Earnings - Q4
Impact of Special Items on GAAP Reported Earnings - Q4 ($B) Q4 2022 Q4 2023 Adjusted Adjusted Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 43.1 — 43.1 43.0 — 43.0 Costs and expenses 3,4,5 Automotive and other cost of sales 34.6 — 34.6 36.6 (0.4) 36
Slide 39: EPS-Diluted-Adjusted Reconciliation
EPS-Diluted-Adjusted Reconciliation Q4 YTD All amounts in $B except EPS-diluted 2022 2023 2022 2023 Diluted earnings per common share $1.39 $1.59 $6.13 $7.32 Adjustments1 0.82 0.46 1.46 1.36 Tax effect on adjustments2 (0.09) (0.14) (0.29) (0.37) Tax adjustments3 — (0.67) (0.33) (0.64) Deemed dividen
Slide 40: Effective Tax Rate-Adjusted
Effective Tax Rate-Adjusted ($B) Q4 YTD 2022 2023 2022 2023 Income Income Income Income Income Income Income Income before tax Effective before tax Effective before tax Effective before tax Effective income expense tax rate income expense tax rate income expense tax rate income expense tax rate taxe
Slide 41: Calculation of ROIC-Adjusted
Calculation of ROIC-Adjusted ($B) Years ended December 31, 2022 2023 Numerator: EBIT-adjusted 14.5 12.4 Denominator: Average equity1 66.6 72.0 Add: Average automotive debt and interest liabilities (excluding finance leases) 17.6 16.2 Add: Average automotive net pension & OPEB liability 9.4 8.1 Less:
Slide 42: GM Financial – Key Metrics
GM Financial – Key Metrics Q4 2022 Q4 2023 CY 2022 CY 2023 Revenue ($B) 3.3 3.7 12.8 14.2 EBT-Adjusted ($B) 0.8 0.7 4.1 3.0 Total retail originations ($B) 11.8 12.6 49.2 53.1 Retail finance delinquencies (>30 days) 2.8% 3.0% 2.8% 3.0% Annualized net charge-offs as % of average retail 0.9% 1.2% 0.7%
Slide 43: GM Financial – Return on Equity
GM Financial – Return on Equity Years ended December 31, ($B) 2022 2023 Net income attributable to common shareholder 3.0 2.1 Average equity 14.9 15.4 Less: Average preferred equity (2.0) (2.0) Average common equity 13.0 13.5 Less: Average goodwill (1.2) (1.2) Average tangible common equity 11.8 12.
Slide 44: 2024 Guidance Reconciliation
2024 Guidance Reconciliation ($B) Year Ending Dec 31, 2024 Net income attributable to stockholders $9.8 - $11.2 Income tax expense $2.1 - $2.7 Automotive interest expense, net $0.1 EBIT-adjusted $12.0 - $14.0 Year Ending Dec 31, 2024 Diluted earnings per common share $8.50 - $9.50 EPS-diluted adjust
Slide 45: 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
General Motors Company — Q4 2023 Earnings Presentation on 6ix