General Motors Company · NYSE:GM
General Motors — Q2 2018 Earnings Presentation
33 slides from General Motors's earnings presentation, Jul 25, 2018
Slide 1: Q2 2018 Results
Q2 2018 Results July 25, 2018 2019 Chevrolet Blazer RS 1
Slide 2: Important Information
Important Information Cautionary Note on Forward-Looking Statements: This presentation and related comments by management may include forward-looking statements. These statements are based on current expectations about possible future events and thus are inherently uncertain. Our actual results may
Slide 3: GM is a More Compelling Investment Opportunity
GM is a More Compelling Investment Opportunity Earnings Disciplined Capital Robust Downside Technology and Growth Allocation Protection Innovation Continued Disciplined Enables sustained Redefining the future EPS-adjusted reinvestment and performance through of personal mobility growth expected retu
Slide 4: Second Quarter 2018 Performance
Second Quarter 2018 Performance Q2 YTD F/(U) F/(U) ($B except where noted) 2018 vs. 2017 2018 vs. 2017 Global deliveries 2.1M 0.0 4.2M 0.1 Global market share – in GM markets 11.1% (40) bps 11.2% (30) bps U.S. GAAP Net revenue 36.8 (0.2) 72.9 (1.4) Operating income 1.5 (0.8) 2.0 (2.9) Income from co
Slide 5: 2018 Second Quarter Highlights
2018 Second Quarter Highlights CORE In June, Chevrolet revealed the all-new 2019 Blazer as the newest member of the industry’s broadest, freshest crossover and SUV lineup. Positioned between the Chevrolet Equinox and Traverse, the 2019 Blazer will offer unique design elements that appeal to customer
Slide 6: Q2 2018 EPS-diluted-adjusted and Impact of Special Items
Impact of Special Items (After Tax) Q2 YTD 2018 2017 2018 2017 Income from continuing operations ($B)1 2.4 2.4 3.5 5.1 Less: cumulative dividends on preferred stock 0.0 — 0.0 — Income from continuing operations attributable to common stockholders 2.4 2.4 3.5 5.1 EPS-diluted from continuing operation
Slide 7: Net Revenue - Q2 2017 vs. Q2 2018
Net Revenue - Q2 2017 vs. Q2 2018 Q2 2017 Q2 2018 (0.0) Memo: CYTD 74.3 (1.6) (1.3) 0.3 1.2 (0.0) 72.9 7 Q2 2018 consolidated net revenue decreased $0.2 billion. Key drivers include: Volume – favorable volume primarily due to strong demand for our recently launched CUVs, including the Chevrolet Trav
Slide 8: EBIT-adjusted
EBIT-adjusted Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net revenue ($B) 37.0 33.6 37.7 36.1 36.8 Oper. income margin 6.2% 4.7% 5.8% 1.5% 4.0% EBIT-adj. margin 10.0% 7.5% 8.2% 7.2% 8.7% Wholesale (000's)1 1,213 1,083 1,243 1,159 1,204 Global market share - in GM markets 11.5% 11.8% 12.4% 11.4% 11.1% 1
Slide 9: EBIT-adjusted - Q2 2017 vs. Q2 2018
EBIT-adjusted - Q2 2017 vs. Q2 2018 Q2 2017 Q2 2018 Wholesales (9)K GMF 0.2 China EI 0.1 Other 0.3 Mat.-Majors (0.4) Majors 1 0.5 Commodities (0.3) Carryover (0.5) Mat. Perf. 0.2 Memo: CYTD 7.2 (0.3) (1.1) 0.3 (1.0) 0.7 5.8 1Majors – Vehicles launched within the last twelve months incorporating sign
Slide 10: Q2 2018 EBIT-adjusted by Segment
Q2 2018 EBIT-adjusted (0.0) GM Financial1 2 1GM Financial on an EBT-adjusted basis. 2As a result of the growing importance of our autonomous vehicle operations, we moved these operations from Corporate to GM Cruise and began presenting GM Cruise as a new reportable 10 segment in the three months end
Slide 11: Key GMNA Performance Indicators
Key GMNA Performance Indicators Avg. U.S. Retail Incentive as % of ATP GM % 12.3 11.5 12.1 12.1 14.3 14.5 13.2 12.7 14.8 12.7 13.7 14.5 14.5 12.8 12.8 GM vs. Ind. 1.07 0.97 1.01 0.94 1.12 1.12 1.09 0.99 1.12 1.06 1.11 1.17 1.23 1.08 1.10 (GM % / Ind. %) 11 Note: Incentive & ATP information based on
Slide 12: GMNA EBIT-adjusted
GMNA EBIT-adjusted Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net revenue ($B) 28.4 24.8 28.8 27.8 28.5 EBIT-adj. margin 12.2% 8.3% 10.0% 8.0% 9.4% U.S. dealer inv. (000's) 980 821 753 763 788 Wholesale (000's) 894 762 915 893 923 North America share 15.7% 16.7% 17.6% 16.3% 16.1% 12 North America gener
Slide 13: GMNA EBIT-adjusted - Q2 2017 vs. Q2 2018
GMNA EBIT-adjusted - Q2 2017 vs. Q2 2018 Q2 2017 Q2 2018 Mat.-Majors (0.4) Commodities (0.3) Fixed/Other (0.1) Mat. Perf. 0.3 Majors 0.5 FX 0.2 Carryover (0.6) Other 0.2 Memo: CYTD 6.9 (0.1) (1.3) 0.1 (1.0) 0.3 4.9 13 Drivers of the change in GMNA EBIT-adjusted include: Volume – favorable volume pri
Slide 14: GMI EBIT-adjusted
GMI EBIT-adjusted China Equity Income (EI) 0.5 0.5 0.5 0.6 0.6 GMI excl. China EI (0.2) (0.1) (0.1) (0.4) (0.4) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net revenue ($B) 5.5 5.6 5.7 4.8 4.8 EBIT-adj. margin from GMI excl. China EI1 (3.6)% (1.3)% (2.2)% (8.6)% (9.6)% Total Auto China JV NI/Rev2 8.3% 7
Slide 15: GMI EBIT-adjusted - Q2 2017 vs. Q2 2018
GMI EBIT-adjusted - Q2 2017 vs. Q2 2018 Q2 2017 Q2 2018 Carryover 0.1 FX (0.2) China EI 0.1 (0.0) Memo: CYTD 0.5 (0.2) 0.2 0.2 (0.1) (0.2) 0.3 15 GMI Q2 2018 EBIT-adjusted of $0.1 billion, down $0.2 billion Y-O-Y, primarily due to the foreign currency effect resulting from the weakening of the Argen
Slide 16: GM Cruise
GM Cruise ($B) Q2 H1 Financial Performance 2018 2017 2018 2017 Revenue — — — — EBIT-adjusted (0.2) (0.2) (0.3) (0.3) Cash used in operating activities (0.1) (0.1) (0.3) (0.2) Based on our current rate of change we continue to expect commercialization at scale in a dense urban environment in 2019 • S
Slide 17: GM Financial
GM Financial Q2 H1 GM Financial Performance 2018 2017 2018 2017 Revenue ($B) 3.5 3.0 6.9 5.7 EBT-adjusted from continuing operations ($B) 0.5 0.4 1.0 0.6 GMF charge-offs (annualized net charge-offs as % avg. retail finance receivables) 1.7% 1.7% 1.9% 2.0% GMF Sales Penetrations GMF as a % of GM reta
Slide 18: Adjusted Automotive Free Cash Flow
Adjusted Automotive Free Cash Flow Q2 H1 ($B) 2018 2017 2018 2017 Income from continuing operations 2.4 2.4 3.5 5.1 Deduct non-auto (GM Financial and GM Cruise) (0.3) (0.1) (0.5) (0.1) Automotive income from continuing operations 2.1 2.3 3.0 5.0 Impact of special items 0.2 0.4 1.2 0.4 Depreciation,
Slide 19: Key Balance Sheet Items (excluding GM Financial)
Key Balance Sheet Items (excluding GM Financial) ($B) Jun. 30, 2018 Dec. 31, 2017 Automotive cash, cash equivalents & marketable securities 16.0 19.6 GM Cruise cash, cash equivalents & marketable securities 2.0 0.0 Total cash, cash equivalents & marketable securities 18.0 19.6 Available credit facil
Slide 20: Summary
Summary Strong execution adversely impacted by greater than expected commodity pricing and currency devaluations in South America. • Q2 2018 EPS-diluted-adjusted of $1.81 • EBIT-adjusted of $3.2 billion and EBIT-adjusted margin of 8.7% • Record GMF net revenue of $3.5 billion and record EBT-adjusted
Slide 21: GM is a More Compelling Investment Opportunity
GM is a More Compelling Investment Opportunity Earnings Disciplined Capital Robust Downside Technology and Growth Allocation Protection Innovation Continued Disciplined Enables sustained Redefining the future EPS-adjusted reinvestment and performance through of personal mobility growth expected retu
Slide 22: Select Supplemental Financial Information
General Motors Company Select Supplemental Financial Information 2019 GMC Yukon Graphite Performance Edition 22
Slide 23: Global Deliveries
Global Deliveries (000's) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 North America 879 925 957 827 912 U. S. 725 781 807 716 758 Asia/Pacific, Middle East and Africa 1,014 1,131 1,455 1,098 986 China 852 982 1,293 986 858 South America 160 180 181 168 164 Brazil 94 107 111 92 99 Global Deliveries - Con
Slide 24: Global Market Share
Global Market Share Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 North America 15.7% 16.7% 17.6% 16.3% 16.1% U. S. 16.1% 17.3% 18.1% 17.0% 16.5% Asia/Pacific, Middle East 8.9% 9.2% 10.2% 9.0% 8.4% and Africa China 13.6% 14.2% 14.5% 15.1% 13.3% South America 15.8% 16.1% 16.5% 15.5% 14.6% Brazil 17.2% 17.8
Slide 25: Reconciliation of EBIT-adjusted
Reconciliation of EBIT-adjusted Three Months Ended Q2 Q1 Q4 Q3 ($B) 2018 2017 2018 2017 2017 2016 2017 2016 Net income (loss) attributable to stockholders 2.4 1.7 1.0 2.6 (5.2) 1.8 (3.0) 2.8 (Income) loss from discontinued operations, net of tax — 0.8 0.1 0.1 0.3 0.1 3.1 (0.0) Income tax expense 0.5
Slide 26: Aggregate Impact of Special Items on GAAP Reported Earnings
Aggregate Impact of Special Items on GAAP Reported Earnings Q2 2018 Q2 2017 Special Adjusted Special Adjusted ($B) Reported items (Non-GAAP) Reported items (Non-GAAP) Net sales and revenue Total net sales and revenues 36.8 — 36.8 37.0 0.0 37.0 Costs and expenses Automotive and other cost of sales 30
Slide 27: Calculation of ROIC-adjusted
Calculation of ROIC-adjusted Four Quarters Ended ($B) Q2 2018 Q2 2017 Numerator: EBIT-adjusted 11.4 13.5 Denominator: Average equity 37.2 45.1 Add: Average automotive debt and interest liabilities (excluding capital leases) 13.5 10.0 Add: Average automotive net pension & OPEB liability 19.9 21.5 Les
Slide 28: Effective Tax Rate-adjusted - Continuing Operations
Effective Tax Rate-adjusted - Continuing Operations Q2 H1 ($M) 2018 2017 2018 2017 EBIT-adjusted 3,192 3,682 5,802 7,236 Less: Noncontrolling interests (17) (3) (11) (12) Less: Net interest expense 87 64 173 154 EBT-adjusted 3,122 3,621 5,640 7,094 Tax expense 519 534 985 1,321 Impact of special ite
Slide 29: GM Financial - Key Metrics
GM Financial - Key Metrics ($B) Q2 2018 Q2 2017 Earnings before tax from continuing operations 0.5 0.4 Total loan and lease originations1 12.2 12.0 GM New as % of GM Financial loan and lease originations 1 91% 89% Commercial finance receivables2 10.3 9.3 Retail finance receivables1 35.6 31.0 Ending
Slide 30: EPS-diluted-adjusted from Continuing Operations Reconciliation
EPS-diluted-adjusted from Continuing Operations Reconciliation Q2 H1 2018 2017 2018 2017 Diluted earnings per common share $1.66 $1.09 $2.38 $2.80 Diluted loss per common share - discontinued operations — 0.51 0.05 0.55 Adjustments1 0.14 0.43 0.80 0.43 Tax effect on adjustments 0.01 (0.14) 0.01 (0.1
Slide 31: Core EBIT-Adjusted Reconciliation
Core EBIT-Adjusted Reconciliation Q2 H1 CY ($B) 2018 2017 2018 2017 2017 EBIT-adjusted 3.2 3.7 5.8 7.2 12.8 EBIT loss-adjusted - GM Cruise 0.2 0.2 0.3 0.3 0.6 Core EBIT-adjusted 3.3 3.8 6.1 7.5 13.5 31 S9 S10 31
Slide 32: Guidance Reconciliations
Guidance Reconciliations Year Ending Dec. 31, 2018 Diluted earnings per common share $ 4.94 - 5.34 Diluted loss per common share - discontinued operations, net of tax 0.05 Adjustments – GMI restructuring (a) 0.80 Tax effect on adjustments (b) 0.01 EPS-diluted-adjusted $ 5.80 – 6.20 Year Ending ($B)
Slide 33: For additional information please visit
For additional information please visit: http://www.gm.com/investors [email protected] https://www.gmfinancial.com/investors-information.aspx [email protected] GM’s Investor Relations website contains a significant amount of information about GM, including financial and other informat
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