General Motors Company · NYSE:GM
General Motors — Q1 2019 Earnings Presentation
27 slides from General Motors's earnings presentation, Apr 30, 2019
Slide 1: Q1 2019 Results
Q1 2019 RESULTS April 30, 2019 2019 GMC Sierra AT4 & 2020 GMC Sierra 2500HD AT4 1
Slide 2: Information Relevant to This Presentation
I N F OR M A T I O N R E L E V A N T T O T H I S P R E S E N T A T I O N Cautionary Note on Forward-Looking Statements: This presentation and related comments by management may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution
Slide 3: Creating Shareholder Value
C R E A T IN G S H A R E H O L D E R V A L U E STRONG & GROWING LEADING IN CORE FRANCHISES FUTURE MOBILITY TRUCKS, CADILLAC, ADJACENCIES, AUTONOMOUS VEHICLES, ELECTRIFICATION, CHINA, IMPROVING REST OF WORLD CONNECTIVITY/DATA DEMONSTRATED TRACK RECORD OF STRENGTHENING CORE & INVESTING IN THE FUTURE D
Slide 4: First Quarter Performance
F I R S T Q U A R T ER P E R F OR M A N C E EPS-Diluted-Adj. Adj. Auto Free Cash Flow $(3.9)B Adj. Auto $1.43 $1.41 Free Cash Flow $(0.6)B YOY Q1-18 Q1-19 EBIT-Adj. & EBIT-Adj. Margin Share & Deliveries 7.2% 10.6% 2.6 (60)bps 6.6% Market Share (80)bps YOY $(0.3)B 2.3 1.9M Deliveries (0.2)M YOY Q1-18
Slide 5: EBIT-Adjusted: Q1 2018 vs. Q1 2019
EB IT- AD JUS TED : Q1 20 18 VS . Q1 2019 ($B) Q1 2018 2.6 $0.3B decrease Volume (0.4) Wholesales (64)K Mix (0.3) Price 0.3 Majors1 : 0.4 Performance/Timing: 1.0 Mat.-Majors: (0.4) Cost 0.0 Pension Income/D&A: (0.3) Commodities/Trade: (0.2) Lyft Revaluation: 0.3 Other 0.0 China EI (0.2) Q1 2019 2.3
Slide 6: EBIT-Adjusted Solid Overall First Quarter Performance
EBIT-ADJUSTED Q1 2018 Q1 2019 2.6 2.2 2.3 1.9 0.4 0.4 0.2 0.2 0.0 ($B) (0.2) (0.1) (0.2) 1 GMNA GMI GM Financial GM Cruise Corp/Elims Total Company SOLID OVERALL FIRST QUARTER PERFORMANCE 6 1 GM Financial on an EBT-adjusted basis. 6
Slide 7: GMNA EBIT-Adjusted
GMNA EBIT-ADJUSTED 3.0 2.7 2.8 2.2 1.9 ($B) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net revenue ($B) 27.8 28.5 27.7 29.8 27.4 EBIT-adj. margin 8.0% 9.4% 10.2% 10.2% 6.9% Wholesale (000's) 893 923 843 896 859 U.S. dealer inv. (000's) 763 788 799 755 819 Avg. U.S. Retail Incentive ($/unit) 4,825 4,779
Slide 8: GMI EBIT-Adjusted
GMI EBIT-ADJUSTED ($B) China Equity Income (EI) 0.6 0.6 0.5 0.3 0.4 GMI excl. China EI (0.4) (0.4) (0.3) (0.4) (0.3) 0.2 0.1 0.1 0.0 (0.0) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net revenue ($B) 4.8 4.8 4.6 5.0 3.9 EBIT-adj. margin from (8.6)% (9.6)% (7.5)% (6.7)% (9.0)% GMI excl. China EI1 Total A
Slide 9: GM Cruise: Rapid Progress Toward Commercialization
($B) Q1 Financial Performance 2019 2018 Revenue1 0.0 — EBIT-adjusted (0.2) (0.2) Cash used in operating activities (0.1) (0.1) $25M in Honda licensing revenue Continuing to make rapid increases in safety and miles driven Acquiring top Silicon Valley talent; hired new CHRO – Arden Hoffman, former VP
Slide 10: GM Financial Performance
Q1 GM Financial Performance 2019 2018 Revenue ($B) 3.6 3.4 EBT-adjusted ($B) 0.4 0.4 GMF charge-offs (annualized net charge-offs as % avg. retail finance receivables) 1.6% 2.1% GM Financial Sales Penetrations GMF as a % of GM retail sales (in units) 1 51% 47% GM Financial Portfolio Ending earning as
Slide 11: Adjusted Automotive Free Cash Flow
A D J US T E D A UT O MO T IV E F RE E CA S H F L OW Q1 ($B) 2019 2018 Income from continuing operations 2.1 1.1 Income tax and net automotive interest expense 0.2 0.6 EBIT adjustments (0.1) 0.9 EBIT-Adjusted1 2.3 2.6 GMF EBT-Adjusted (0.4) (0.4) GM Cruise EBIT loss-Adjusted 0.2 0.2 Automotive EBIT-
Slide 12: Key Automotive Balance Sheet Items
KEY AUTOMOTIVE BALANCE SHEET ITEMS ($B) Mar 31, 2019 Mar 31, 2018 Dec. 31, 2018 Automotive cash, cash equivalents & marketable securities 15.8 17.21 19.6 Available credit facilities 16.8 14.1 14.2 Available liquidity 32.6 31.3 33.8 Key obligations: U.S. pension underfunded status 4.9 5.4 5.1 Non-U.S
Slide 13: Summary
SUMMARY Solid Q1 results driven by strong truck performance, despite planned downtime for full-size SUVs and expected lower China equity income Execution of transformation cost savings of $2.0B to $2.5B through 2019 on track 2019 Guidance: Continue to expect EPS-diluted-adj. in the range of $6.50 -
Slide 14: Select Supplemental Financial Information
S E L E CT S U PP L E ME NT A L F I NA N CI A L I NF OR M A T IO N 14 2020 Cadillac CT5 14
Slide 15: Q1-19 GAAP Results
Q 1- 19 G A A P R E S UL T S F/(U) ($B except where noted) Q1-19 vs. 2018 Net revenue 34.9 (1.2) Operating income 1.2 0.7 Income from continuing operations 2.1 1.0 EPS-diluted from continuing operations ($/share) 1.48 0.71 Net cash used in operating activities (0.1) (0.5) 15 15
Slide 16: Regional Q1 EBIT-Adjusted Performance
REGIONAL Q1 EBIT-ADJUSTED PERFORMANCE GMNA GMI Majors 0.4 Carryover (0.2) Mat.-Majors (0.4) Pension Inc./D&A (0.4) Commodities/Trade (0.1) Performance/Timing 0.7 Performance/Timing 0.3 China EI (0.2) Carryover-FX 0.1 FX (0.1) ($B) ($B) 16 16
Slide 17: Global Deliveries
GLOBAL DELIVERIES (000’s) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 North America 827 912 834 917 775 U. S. 716 758 695 785 666 Asia/Pacific, Middle East and Africa 1,101 989 969 1,142 947 China 986 858 836 965 814 South America 168 164 174 185 156 Brazil 92 99 113 131 106 Global Deliveries – in GM Ma
Slide 18: Global Market Share
G L O B A L MA R K E T S H A R E Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 North America 16.3% 16.1% 15.5% 16.9% 15.6% U. S. 17.0% 16.5% 15.8% 17.5% 16.1% Asia/Pacific, Middle East and Africa 9.0% 8.4% 8.2% 8.8% 8.0% China 15.1% 13.6% 13.3% 13.2% 13.3% South America 15.5% 14.5% 15.2% 16.3% 15.5% Brazi
Slide 19: Reconciliation of EBIT-Adjusted
R E C O N CI L I A T I O N O F E B I T - A D J U S T E D Three Months Ended Q1 Q4 Q3 Q2 ($B) 2019 2018 2018 2017 2018 2017 2018 2017 Net income (loss) attributable to stockholders 2.2 1.0 2.0 (5.2) 2.5 (3.0) 2.4 1.7 Loss from discontinued operations, net of tax - 0.1 - 0.3 - 3.1 - 0.8 Income tax exp
Slide 20: Impact of Special Items on GAAP Reported Earnings
IMPACT OF SPECIAL ITEMS O N G A A P R E P O R T E D E A R N I N GS Q1 2019 Q1 2018 Adjusted Adjusted ($B) Reported Special items Reported Special items (Non-GAAP) (Non-GAAP) Total net sales and revenues 34.9 — 34.9 36.1 — 36.1 Costs and expenses Automotive and other cost of sales 28.2 0.11,2 28.3 30
Slide 21: Calculation of ROIC-Adjusted
C A L CU L A TI ON O F R O IC -A D J US T E D Four quarters ended ($B) Q1 2019 Q1 2018 Numerator: EBIT-adjusted 11.5 11.9 Denominator: Average equity1 39.3 39.3 Add: Average automotive debt and interest liabilities (excluding capital leases) 14.4 12.7 Add: Average automotive net pension & OPEB liabi
Slide 22: Effective Tax Rate-Adjusted
E F F E CT I V E T A X R A T E - A D J U S T E D Q1 ($M) 2019 2018 EBIT-adjusted 2,310 2,610 Less: Noncontrolling interests 12 6 Less: Net interest expense 83 86 EBT-adjusted 2,215 2,518 Tax expense 137 466 Impact of special items1 32 - Tax expense-adjusted 169 466 Effective tax rate-adjusted 7.6% 1
Slide 23: GM Financial - Key Metrics
G M F I N A N CI A L - K E Y M E T R I C S ($B) Q1 2019 Q1 2018 Total loan and lease originations1 12.4 10.8 GM as % of GM Financial loan and lease originations 1 91% 90% Retail finance delinquencies (>30 days)2 3.5% 5.4% Annualized net charge-offs as % of avg. retail finance receivables 1.6% 2.1% C
Slide 24: GM Financial - Return on Equity
G M F I N A N CI A L - R E T U R N O N E Q U I T Y Four quarters ended March 31, ($B) 2019 2018 Net income attributable to common shareholder $1.4 $0.8 Plus: loss from discontinued operations, net of tax - 0.4 Net income from continuing operations attributable to common shareholder 1.4 1.2 Average e
Slide 25: EPS-Diluted-Adjusted Reconciliation
E P S - D I L U T E D - A D J U S T E D R E C O N CI L I A T I O N Q1 2019 2018 Diluted earnings per common share $1.48 $0.72 Diluted loss per common share - discontinued operations - 0.05 Adjustments1 (0.05) 0.66 Tax effect on adjustments1 (0.02) - EPS-diluted-adjusted $1.41 $1.43 1 See slide 20 fo
Slide 26: Guidance Reconciliation
G U I D A N C E R E C O NC I L I A T I O N Year Ending Dec. 31, 2019 Diluted earnings per common share $ 5.96 - $6.79 Adjustments – Transformation activities1 $1.17 – $1.58 GM Brazil indirect tax recoveries ($0.97) Tax effect on adjustments1 ($0.07) – $0.01 EPS-diluted-adjusted $6.50 - $7.00 Year En
Slide 27: For Additional Information Please Visit
F O R A D D I T I O N A L I NF O R M A T I O N P L E A S E V I S I T : http://www.gm.com/investors Website: GetCruise.com [email protected] YouTube: http://bit.ly/CruiseYouTube https://www.gmfinancial.com/investors-information.aspx Medium: Medium.com/Cruise [email protected] GM’s Inve
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