General Motors Company · NYSE:GM
General Motors — Q1 2017 Earnings Presentation
37 slides from General Motors's earnings presentation, Apr 28, 2017
Slide 1: General Motors Q1 2017 Results
GENERAL MOTORS Qi 2017 Results April 28, 2017 -—— @ onc SH @ © DW & GENERAL MOTORS
Slide 2: Information relevant to this presentation
Information relevant to this presentation ry Note on Looking : This presentation and related comments by management may include forward- looking statements. These statements are based on current expectations about possiole future events and thus are inherently uncertain. Our actual results may diffe
Slide 3: GM is a More Compelling Investment Opportunity
GM is a More Compelling Investment Opportunity Our first-quarter results reflect our resolve to grow profitably and demonstrate the strong earnings power of this company Robust Downside Protection Earnings Disciplined Capital Growth Allocation Enables sustained performance through the cycle inued EP
Slide 4: Q1 2017 results summary: deliveries, share, revenue, EBIT-adjusted
Q1 2017 global deliveries were relatively flat Y-O-Y. Volume gains primarily in North and South America, offset by reductions in International Operations and China. Q1 2017 market share decreased 20 bps Y-O-Y, driven primarily by decreases in Europe and International Operations, partially offset by
Slide 5: Q1 2017 Highlights
Q1 2017 Highlights Earn Customers For Life Chevrolet Bolt EV earned top honors with the 2017 North American Car of the Year Award. GMC was awarded Kelley Blue Book's 2017 Brand Image Award for Most Refined Brand, marking the fourth consecutive year for GMC. General Motors earned the 2017 EPAENERGY S
Slide 6: Q1 2017 Highlights (Cont.)
Q1 2017 Highlights (Cont.) Lead in Technology and Innovation re MOTORS ie | GM and Cruise Automation are testing more than 50 Chevrolet Bolt EVswith autonomous technology on public roads. ee. Cadillac introduced V2V communications in the Cadillac CTS and also announced Super Cruise automated highway
Slide 7: Consolidated net revenue increased $3.9 billion
Consolidated net revenue increased $3.9 billion. Key drivers include: • Volume – $1.8 billion favorable primarily due to increased wholesales in North America (66,000 units) and South America (24,000 units). North American wholesales were driven primarily by strength in full and mid-size trucks, the
Slide 8: No special items; share count and repurchases
There were no special items in Q1 2017. Q1 2017 diluted weighted-average share count was 1.53 billion shares – down nearly 50 million shares Y-O-Y, reflecting GM’s commitment to return capital to shareholders. GM did not repurchase shares during Q1 2017 due primarily to restrictions related to the a
Slide 9: Q1 record EBIT-adjusted of $3.4 billion
Q1 record EBIT-adjusted of $3.4 billion, up $0.7 billion, and Q1 record EBIT-adjusted margin of 8.2%, up 110 bps Y-O-Y, driven by favorable volume, price and cost, partially offset by weaker mix and FX. Consolidated wholesales for Q1 2017 increased 73,000 units driven primarily by increased North an
Slide 10: Consolidated EBIT-adjusted key drivers
Q1 record consolidated EBIT-adjusted increased approximately $0.7 billion Y-O-Y. Key drivers included: • Volume – favorable impact from increased wholesales in North America primarily driven by the continued strength of full and mid-size trucks, the Chevrolet Cruze, as well as the 2016 CUV launches
Slide 11: Q1 record results by segment
Q1 record results with consolidated EBIT-adjusted of $3.4 billion. • Q1 record GMNA EBIT-adjusted of $3.4 billion, an increase of $1.1 billion Y-O-Y. • GME Q1 results $0.2 billion unfavorable primarily a result of FX headwinds and Brexit. • GMIO EBIT-adjusted is down $0.1 billion with difficult macr
Slide 12: U.S. market share and incentive spending
Market share in the U.S. was 16.8% during Q1, an increase of 40 bps Y-O-Y. • Retail market share increased 30 bps to 16.9% in Q1 2017. GM’s incentive spending as a percent of average transaction price (ATP) was above industry average in Q1 2017. This was primarily driven by our aging CUV portfolio w
Slide 13: North America EBIT-adjusted record
Q1 record North America EBIT-adjusted increased to $3.4 billion for the quarter, up $1.1 billion Y-O-Y. EBIT-adjusted margin increased to a Q1 record 11.7%. • U.S. dealer inventory increased 262,000 units, improving the availability of recently launched products and preparing for upcoming CUV launch
Slide 14: GMNA EBIT-adjusted key drivers
Q1 record GMNA EBIT-adjusted increased approximately $1.1 billion Y-O-Y. Key drivers included: • Volume – favorable impact from increased wholesales in North America primarily driven by the continued strength of full and mid-size trucks, the Chevrolet Cruze, as well as the 2016 CUV launches of the C
Slide 15: GME EBIT-adjusted and PSA Group sale
GME EBIT-adjusted decreased $0.2 billion Y-O-Y primarily due to the impacts of Brexit and FX headwinds. • Revenue was down Y-O-Y primarily due to the FX impacts of Brexit. • Wholesale volume was flat while share was down 30 bps Y-O-Y. On March 5, 2017 GM entered into an agreement with PSA Group to s
Slide 16: GME EBIT-adjusted drivers
GME EBIT-adjusted decreased $0.2 billion Y-O-Y primarily due to the impacts of Brexit and FX headwinds. • Price – favorable due to the Opel Astra. 16
Slide 17: GMIO EBIT-adjusted and China equity income
GMIO EBIT-adjusted was $0.3 billion, a decrease of $0.1 billion Y-O-Y. • China equity income was flat Y-O-Y at $0.5 billion: • Wholesale volumes slightly up Y-O-Y on continued strong performance of the Buick and Baojun brands along with the growing Cadillac brand. SUVs and luxury vehicles continue t
Slide 18: Drivers of GMIO's EBIT-adjusted performance
Drivers of GMIO’s EBIT-adjusted performance: • Volume – decreased due primarily to reduced volumes of full-size trucks and SUVs in the Middle East. • Price – favorable due primarily to pricing in Egypt and the successful launch of the Chevrolet Malibu in Korea. 18
Slide 19: South America results
South America remains challenged with negative macro-economic and political environments. • Q1 2017 EBIT-adjusted relatively flat at $(0.1) billion. • Q1 2017 GM wholesales were up 21.1%. • Q1 2017 share increased to 15.7%, a 10 bps gain Y-O-Y and is primarily due to growing share by 150 bps in Braz
Slide 20: Drivers of GMSA's EBIT-adjusted performance
Drivers of GMSA’s EBIT-adjusted performance: • Volume – favorable impact driven by strong wholesales, primarily in Brazil. • Mix – unfavorable due to strong demand for small passenger cars. • Other – unfavorable FX continues to be a headwind for the region driven primarily by the Argentine Peso. 20
Slide 21: GM Financial record quarterly revenue
Record quarterly net revenue of $2.9 billion, up $0.8 billion, as GM Financial continues to execute on its full captive strategy. Q1 Record EBT-adjusted of $0.3 billion. GM Financial continued to expand its captive presence with GM customers and dealers and increased its penetration of GM’s retail s
Slide 22: Adjusted automotive free cash flow
Q1 2017 adjusted automotive free cash flow was $(0.6) billion, up $0.8 billion Y-O-Y driven primarily by $0.7 billion of improved automotive EBIT-Adjusted. CY 2017 adjusted automotive free cash flow expected to be approximately $6 billion. 22
Slide 23: Available liquidity of $34.4 billion
Q1 2017 available liquidity remains strong at $34.4 billion, down $1.2 billion from year-end. The cash balance of $20.4 billion is in line with GM’s average cash balance commitment of approximately $20 billion for the calendar year. GM expects to continue to execute its capital allocation framework:
Slide 24: Summary
Summary GM delivered record operating performance in Q1 2017: + Record EPS-diluted-adjusted of $1.70. + Record consolidated net revenue of $41.2 billion. + Record consolidated EBIT-adjusted of $3.4 billion and EBIT-adjusted margin of 8.2%. + Record GMNA net revenue of $29.3 billion, EBIT-adjusted of
Slide 25: GM is a More Compelling Investment Opportunity
GM is a More Compelling Investment Opportunity Our first-quarter results reflect our resolve to grow profitably and demonstrate the strong earnings power of this company Robust Downside Protection Earnings Disciplined Capital Growth Allocation Enables sustained performance through the cycle inued EP
Slide 26: Select Supplemental Financial Information
GENERAL MOTORS Select Supplemental Financial Information GENERAL MOTORS 26
Slide 27: Global Deliveries
Global Deliveries (000's) Q12016 Q22016 Q32016 Q42016 Q12017 North America 799 910 919 1,001 816 us. 684 755 773 830 690 Europe 314 333 285 275 320 UK. 85 69 at 56 75 Germany 63 1! 61 62 67 International Operations 1,132 1,012 1,036 1,408 1,060 Global deliveries GENERAL MOTORS Chinat 976 639 874 1,2
Slide 28: Global Market Share
Global Market Share Q12016 Q22016 Q32016 @Q42016 Q12017 GENERAL MOTORS North America 15.9% 16.0% 16.5% 18.0% 16.3% us. 16.496 16.3% 17.0% 18.4% 16.8% Europe 6.2% 6.0% 6.0% 5.5% 5.9% UK 9.6% 9.1% 9.6% 8.4% 8.0% Germany 7.2% 7.1% 6.8% 7.0% 7.1% International Operations 9.8% 9.2% 9.2% 10.4% 9.5% China!
Slide 29: Reconciliation of EBIT-adjusted
Reconciliation of EBIT-adjusted Three Months Ended a4 Net income attributable to common stockholders 26 20 18 63 28 14 29 14 Income tax expense (benefit) 07 06 02 2) 08 02 09 06 Gain on extinguishment of debt - - - (0.4) = a = Automotive interest expense 04 04 02 04 o4 o4 04 o4 Automotive interest i
Slide 30: Aggregate Impact of Special Items on GAAP
Aggregate Impact of Special Items on GAAP Reported Earnings Q12017 Q1 2016 Special Adjusted Special Adjusted Reported items (Non-GAAP) | Reported items (Non-GAAP) Net sales and revenue Total net sales and revenues Costs and expenses Automotive cost of sales 33.1 - 33.1 30.6 - 30.6 GM Financial opera
Slide 31: Calculation of ROIC-adjusted
Calculation of ROIC-adjusted Four Quarters Ended (5)) Q1 2017 Q1 2016 Numerator: EBIT-adjusted' 13.3 11.4 Denominator: Average equity 448 38.1 Add: Average automotive debt and interest liabilities (excluding capital leases) 10.1 8.6 Add: Average automotive net pension & OPEB liability 24.1 27.4 Less
Slide 32: Effective Tax Rate-adjusted
Effective Tax Rate-adjusted Ss 2017 2016 EBIT-adjusted 3,395 2,655 Less: Noncontrolling interests ° 22 Less: Net interest expense Tax expense 700 559 Impact of special items* — 23 700582 Effective tax rate-adjusted 21.1% 22.8% GM expects 2017 full year Effective Tax Rate-adjusted to be in the low 20
Slide 33: Restructuring by segment
GMNA (0.0) (0.2) GME (0.0) (0.0) GMO (0.0) (0.0) GMSA (0.0) (0.0) 0) 03) Expecting CY 2017 restructuringto be ~$0.4 billion GENERAL MOTORS Note: Results may not sum du S7
Slide 34: GM Financial - Key Metrics
GM Financial - Key Metrics ($B) Q1 2017 2016 Earnings Before Tax - Adjusted 0.3 0.2 Total Loan and Lease Originations 12.8 10.9 GM as % of GM Financial Loan and Lease Originations 87% 89% Commercial Finance Receivables! 11.5 8.9 Retail Finance Receivables 35.9 30.3 Ending Earning Assets? 85.1 64.0 R
Slide 35: EPS-diluted-adjusted Reconciliation
EPS-diluted-adjusted Reconciliation Qi 2017 2016 Diluted earnings per common share $1.70 $1.24 Adjustments* - 0.03 Tax effect on adjustments (0.01) GENERAL MOTORS _ ‘SeeslidesS3-S4 for oper ing income impactoof special items. $9 35
Slide 36: Guidance Reconciliation
Guidance Reconciliation Year Ending Dec. 31, 2017 Diluted earnings per common share $ 3.06-3.56 Adjustment — PSA Group Transaction 2.94 EPS-diluted-adjusted $ 6.00-6.50 Year Ending ($B except where noted) Dec. 31, 2017 Automotive net cash provided by operating activities ~$12 Less: expected capital
Slide 37: For additional information please visit
For additional information please visit: GENERAL MOTORS http://www.gm.com/investors [email protected] su GM FINANCIAL https://www.gmfinancial.com/investors-information.aspx [email protected] GMs Investor Relations website contains a significant amount of information about GM, includin
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