General Motors Company · NYSE:GM
General Motors — Q2 2017 Earnings Presentation
38 slides from General Motors's earnings presentation, Jul 25, 2017
Slide 1: Q2 2017 Results
GENERAL MOTORS Q2 2017 Results July 25, 2017 ome @ onc a SH @ © FW & GENERAL MOTORS
Slide 2: Important Information
Important Information ce ry Note on Looking This pr ‘andrelated ‘by management may include foward-looking statements. These ‘statements are based on current expectations about possible future events and thus are inherently uncertain, Our actual results may differ materially from forward- looking sta
Slide 3: GM Is a More Compelling Investment Opportunity
GM Is a More Compelling Investment Opportunity Robust Downside Technology and Allocation Protection Innovation Continued Disciplined Enables sustained defining the future EPS-adjusted reinvestment and performance through of personal mobility growth expected returning cash the cycle to shareholders I
Slide 4: Q2 global deliveries were flat Y-O-Y
Q2 global deliveries were flat Y-O-Y, driven primarily by the strategic reduction of less profitable daily rental sales in North America offset by increased volumes in GMSA due to the strength of the Chevrolet brand. • Q2 market share is flat Y-O-Y, driven primarily by our strategy to reduce volumes
Slide 5: Second Quarter 2017 Continuing Operations Highlights
Second Quarter 2017 Continuing Operations Highlights Earn Customers For Life Through June, crossover segments grew faster than any other tin the U.S. The company is well positioned to continue ing on this trend with the launches of the Chevrolet Traverse, GMC Terrain and Buick Enclave through the en
Slide 6: Second Quarter 2017 Continuing Operations Highlights
Second Quarter 2017 Continuing Operations Highlights Leadin Technology and Innovation GM became the first company to use mass-production methods to build autonomous test vehicles, growing its self-driving test fleet to 180. Cruise Automation will add more than 1,100 jobs over the next five years to
Slide 7: Q2 2017 EPS-diluted was $1.60 per share
Q2 2017 EPS-diluted was $1.60 per share, down $0.14 per share Y-O-Y. Results include three special items for Q2 and H1 of 2017. • GMIO restructuring of $0.4 billion (after tax) related to the strategic decision to rationalized our core operations by exiting or significantly reducing our presence in
Slide 8: Q2 consolidated net revenue decreased $0.4 billion
Q2 consolidated net revenue decreased $0.4 billion. Key drivers included: • Volume – $3.0 billion unfavorable due to decreased wholesales primarily in North America (110,000 units). North American wholesales decreased primarily due to decreased net off-lease rental car sales, and wholesales of the C
Slide 9: Consolidated EBIT-adjusted of $3.7 billion
Consolidated EBIT-adjusted of $3.7 billion, down $0.2 billion Y-O-Y primarily due to reduced wholesale volume in North America. Consolidated EBIT-adjusted margin remained strong at 10.0%, down 30 bps Y-O-Y. Trailing four-quarter consolidated EBIT-adjusted margin of nearly 9%. Consolidated wholesales
Slide 10: Drivers of the change in Consolidated EBIT-adjusted
Drivers of the change in Consolidated EBIT-adjusted include: • Volume – unfavorable due to 99,000 unit decrease in wholesales, primarily driven by lower wholesales in North America related to the strategic reduction in daily rental car sales. • Mix – favorable primarily in GMNA due to a decrease in
Slide 11: Strong consolidated EBIT-adjusted of $3.7 billion
Strong consolidated EBIT-adjusted of $3.7 billion: • GMNA generated EBIT-adjusted of $3.5 billion, down $0.3 billion Y-O-Y, with wholesales down 110,000 units. • GMIO results improved $0.2 billion Y-O-Y to $0.3 billion with increased equity income and improved results from consolidated international
Slide 12: Total market share in the U.S. was 16.4% during H1
Total market share in the U.S. was 16.4% during H1, up 10 bps Y-O-Y. Retail market share was flat during H1 at 16.5%. GM launched the high volume Chevrolet Equinox in Q2 2017, and will launch the Chevrolet Traverse, GMC Terrain and Buick Enclave in the second half of 2017. GM demonstrated its discip
Slide 13: North America EBIT-adjusted of $3.5 billion
North America generated very strong EBIT-adjusted of $3.5 billion with 12.2% EBIT-adjusted margin, while wholesales were down 110,000 units (11%) and net revenue was down $1.8 billion (5.9%). • GMNA has an average EBIT-adjusted margin of 11.0% for the last four quarters. • U.S. dealer inventory incr
Slide 14: Drivers of the change in GMNA EBIT-adjusted
Drivers of the change in GMNA EBIT-adjusted include: • Volume – unfavorable due to 110,000 unit decrease in wholesales. The primary drivers are decreased net wholesale volumes associated with a decrease in off-lease rental car sales (69,000 units), and reduced volume of the Chevrolet Malibu and Cruz
Slide 15: GMIO EBIT-adjusted performance improved
GMIO EBIT-adjusted performance improved $0.2 billion Y-O-Y to $0.3 billion. • China equity income was flat Y-O-Y at $0.5 billion: • Wholesales were up 26,000 units due to the strength of the Cadillac and Baojun brands as well as SUVs and luxury vehicles, offset by weakness in demand for small passen
Slide 16: Drivers of GMIO's EBIT-adjusted performance
Drivers of GMIO’s EBIT-adjusted performance: • Volume – Wholesale volume down 20,000 units (11%) primarily due to decreased wholesale volumes in the Middle East. • Price and Other – favorable primarily due to FX. 16
Slide 17: GMSA achieved breakeven EBIT-adjusted results
GMSA achieved breakeven EBIT-adjusted results in Q2 2017, in a macroeconomic environment that continues to be challenging. • Wholesales increased 23% Y-O-Y, increasing net revenues by $0.7 billion. • The South American industry grew 13% to over 1.0 million units and GMSA gained 70 bps of market shar
Slide 18: Drivers of GMSA's EBIT-adjusted performance
Drivers of GMSA’s EBIT-adjusted performance: • Volume – stronger industry and share growth in the key Brazilian and Argentine markets led to increased volume. • Mix – favorable mix driven by shift in sales from legacy to new portfolio. 18
Slide 19: GM Financial record net revenue and EBT-adjusted
Record net revenue of $3.0 billion, up $0.9 billion and record EBT-adjusted of $0.4 billion, up $0.1 billion in Q2 2017, as GM Financial continues to execute on its full captive strategy. Earning assets grew from more than $22 billion to $80.5 billion from Q2 2016. GM Financial continued to expand i
Slide 20: Q2 adjusted automotive free cash flow was $2.6 billion
Q2 adjusted automotive free cash flow was $2.6 billion, down $0.7 billion Y-O-Y primarily due to $0.4 billion of additional capital expenditures and $0.3 billion of lower automotive net income. H1 adjusted automotive free cash flow was $2.0 billion, up $0.3 billion Y-O-Y primarily due to $0.4 billio
Slide 21: Quarter-end available liquidity remains strong at $34.6 billion
Quarter-end available liquidity remains strong at $34.6 billion, down $1.2 billion from year- end 2016. The cash balance of $20.5 billion is in line with GM’s average cash balance commitment of approximately $20 billion for the calendar year. Following the close of the Opel/Vauxhall transaction, we
Slide 22: Continuing Operations 2017 Guidance
Continuing Operations 2016 2017 Actuals Guidance Revenue $149.2B = 2016 EBIT-adjusted $12.8B = 2016 EBIT-adjusted margin 8.6% = 2016 EPS-diluted-adjusted $6.12 $6.00-$6.50 ROIC-adjusted 30.1% > 25% Cash returned to shareholders $4.8B up to $7B Adjusted auto free cash flow $8.2B ~$7B Discontinued ope
Slide 23: Summary
Summary GM delivered strong performance from continuing operations in Q2 2017: + EPS-diluted-adjusted of $1.89, up Y-O-Y from $1.79 + Strong consolidated EBIT-adjusted of $3.7 billion and EBIT-adjusted margin of 10.0% + Strong GMNA EBIT-adjusted of $3.5 billion and EBIT-adjusted margin of 12.2% + GM
Slide 24: GM Is a More Compelling Investment Opportunity
GM Is a More Compelling Investment Opportunity Robust Downside Technology and Allocation Protection Innovation Continued Disciplined Enables sustained defining the future EPS-adjusted reinvestment and performance through of personal mobility growth expected returning cash the cycle to shareholders I
Slide 25: Select Supplemental Financial Information
GENERAL MOTORS Select Supplemental Financial Information GENERAL MOTORS 25
Slide 26: Global Deliveries
Global Deliveries (000's) Q22016 Q32016 Q42016 Q12017 @Q22017 North America 910 919 1,001 816 879 US. 755 773 830 690 725 International Operations 1,026 1,046 1,421 1,069 1,015 hina 839 era 1,224 913 852 ‘Memo: China retail deliveries 847 908 1,152 913 852 South America 136 153 161 148 160 Brazil 62
Slide 27: Global Market Share
Global Market Share Q22016 Q32016 Q42016 Q12017 Q22017 North America 16.0% 16.5% 18.0% 16.3% 15.7% Us. 16.3% 17.0% 18.4% 16.8% 16.1% International Operations 9.0% 9.0% 10.2% 9.2% 9.0% Chinat 13.1% 13.3% 14.1% 14.8% 13.9% South America 15.2% 15.9% 16.8% 15.7% 15.9% Brazil 16.3% 16.9% 18.4% 17.39% 17.
Slide 28: Reconciliation of EBIT-adjusted - Continuing Operations
Reconciliation of EBIT-adjusted - Continuing Operations Three Months Ended Net income attributable to common stockholders 17 29 26 20 18 6328 14 (Income) loss from discontinued operations, net of tax 08 = (01) 01 = (00) 02 (00) = 0) Income tax expense (benefit) 05 09 08 07 03 (31) 09 05 Gain on exti
Slide 29: Aggregate Impact of Special Items on GAAP Reported Earnings
Aggregate Impact of Special Items on GAAP Reported Earnings Q2 2017 Q2 2016 Special Adjusted Special Adjusted Reported items (Non-GAAP) [Reported items (Non-GAAP) Net sales and revenue 137.0 0.0 37.0 Costs and expenses Automotive cost of sales 29.2 (0.4) 28.8 29.9 - 29.9 GM financial operating and o
Slide 30: Calculation of ROIC-adjusted - Continuing Operations
Calculation of ROIC-adjusted - Continuing Operations Four Quarters Ended (2)) Q2 2017 Q2 2016 Numerator: EBIT-adjusted 13.5 12.9 Denominator: Average equity 45.1 40.2 Add: Average automotive debtand interest liabilities (excluding capital leases) 10.0 8.9 Add: Average automotive net pension & OPEB l
Slide 31: Effective Tax Rate-adjusted - Continuing Operations
Effective Tax Rate-adjusted - Continuing Operations Q2 H1 2017 2016 2017 2016 EBIT-adjusted 3,682 3,846 7,236 6,588 Less: Noncontrolling interests (3) 16 (12) 38 Less: Net interest expense 64 94 154 174 EBT-adjusted 3,621 3,736 7,094 6,376 Tax expense 534 877 1,321 1,534 Impact of special items" Tax
Slide 32: Restructuring
Restructuring a2 ($B) 2017 2016 (0.0) (0.0) GMNA GMO (0.0)' (0.0) GMSA (0.0) (0.0) Expecting CY 2017 restructuringto be 1$0.28 relatedto GMIO restructuring was excluded. GENERAL MOTORS S7 32
Slide 33: GM Financial - Key Metrics
GM Financial - Key Metrics ($B) Earnings Before Tax from Continuing Operations Total Loan and Lease Originations' GM as % of GM Financial Loan and Lease Originations' Commercial Finance Receivables? Retail Finance Receivables" Ending Earning Assets? Retail Finance Delinquencies (>30 days)* Annualize
Slide 34: EPS-diluted-adjusted from Continuing Operations Reconciliation
EPS-diluted-adjusted from Continuing Operations Reconciliation Q2 2017 2016 Diluted earnings per common share $1.09 $1.81 Diluted EPS - discontinued operations $0.51 $(0.07) Adjustments‘ $0.43 $0.08 Tax effect on adjustments $(0.14) $(0.03) EPS-diluted-adjusted $1.89 $1.79 GENERAL MOTORS "See slides
Slide 35: Guidance Reconciliation - Continuing Operations
Guidance Reconciliation - Continuing Operations Year Ending Dec. 31, 2017 Diluted earnings per common share $1.60-2.43 Diluted loss per common share - discontinued operations (a) (b) 2.46-2.79 Adjustments (c) 0.43 Tax effect on adjustments (d) (0.14) Tax adjustments (b) (e) 1.32 EPS-diluted-adjusted
Slide 36: Quarterly Continuing Operations Results
Quarterly Continuing Operations Results GMNA GMO GMSA GMF CorplElims Consolidated EBIT-adj. GMNA cmio GMSA GMF Corp/Elims Consolidated GENERAL MOTORS 26.5 30.2 31.1 31.3 119.1 29.3 28.4 57.8 3.2 3.3 3.4 3.8 13.7 3.2 3.2 6.4 1.3 1.6 2.0 2.2 72 2.0 2.3 43 1.9 2.1 2.4 2.6 9.0 27 3.0 5.7 0.0 0.0 0.0 0.0
Slide 37: Discontinued Operations Reconciliation
Discontinued Operations Reconciliation Total Discontinued Income/(Loss) AutoCo FinCo Operations Income (loss) from discontinued operations before taxes (0.3) 0.0 (0.2) Income tax benefit (expense) 0.1 (0.0) 0.0 Discontinued operations before charges, net of tax (0.2) 0.0 (0.2) Components ofloss on s
Slide 38: For additional information please visit
For additional information please visit: GENERAL MOTORS http://www.gm.com/investors [email protected] cu | | GM FINANCIAL https://www.gmfinancial.com/investors-information.aspx [email protected] | and other information for investors. tant information regarding formation about GM, incl
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