Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q1 2021 Earnings Presentation
20 slides from Ford Mtr Co Del's earnings presentation, Apr 28, 2021
Slide 1: Q1 2021 Earnings Review
Q1 2021 Earnings Review April 28, 2021 1
Slide 2: Information Regarding This Presentation
Information Regarding This Presentation Forward-Looking Statements This presentation includes forward-looking statements. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could caus
Slide 3: Key Takeaways
Key Takeaways • Strong Q1 EBT of $962M • Balance sheet remains strong with liquidity at $34B; continue to access diverse funding sources • Portfolio performing well – charge-offs and loss-to-receivables (“LTR”) ratio remain significantly below year- ago levels, reflecting historically low losses. Cr
Slide 4: Key Metrics
Key Metrics EBT ($M) $1,123 Q1 Headlines $630 $912 $962 $543 • EBT of $962M, up $932M, reflecting non-recurrence of increase in credit loss reserves due to COVID-19 and strong auction performance $30 • Portfolio performing well – loss-to-receivables (“LTR”) remains low, reflecting Q4 2019 Q1 2020 Q2
Slide 5: Q1 2021 Net Receivables Mix
Q1 2021 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $127.1 $26.6 $100.5 • Receivables declined $11B YoY, primarily reflecting lower $26.3 wholesale receivables • Operating lease portfolio was $75.3 21% of total net receivables $57.4 $21.9 $25
Slide 6: U.S. Origination Metrics And Credit Loss Drivers
U.S. Origination Retail & Lease FICO and Retail Repossessions (000) and Metrics And Higher Risk Mix (%) Repossession Rate (%) Higher Risk Portfolio Mix (%) Repossession Rate (%) Credit Loss 753 743 748 Drivers 739 738 735 7 7 6% 6% 6% 6% 6% 6% 5 5 5 1.27% 1.24% 3 1.04% 1.01% 0.92% 0.52% • Discipline
Slide 7: Worldwide Credit Loss Metrics
Worldwide Credit Loss Charge-Offs ($M) and LTR Ratio (%) Metrics LTR Ratio (%) $107 $101 $88 0.36% 0.35% $67 0.32% • Worldwide credit loss metrics $45 0.24% $41 remain strong and below year 0.17% 0.16% ago levels, reflecting historically low losses • Credit loss reserve reflects Q4 2019 Q1 2020 Q2 2
Slide 8: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) and Return Rates (%) Lease Placement Volume (000) 24-Month Return Rate (%) 36-Month 39-Month / Other 82 75 71 70 67 • Lease placement volume and share 12 11 52 12 62 62 58 65 53 51 down YoY 9 11 10 64 38 77% • Lower lease return volume and return 36 59 47
Slide 9: Cumulative Maturities At March 31, 2021
Cumulative Maturities At March 31, 2021* ($B) Assets Debt • Strong balance sheet is $147 inherently liquid with cumulative $120 $126 debt maturities having a longer $95 $92 tenor than asset maturities $74 $64 • As of March 31, 2021 $76B of $46 $147B assets are unencumbered Apr – Dec 2021 2022 2023 2
Slide 10: Funding Structure – Managed Receivables
Funding Structure – Managed 2020 2021 Receivables* ($B) Dec 31** Mar 31 Term Unsecured Debt $ 76.6 $ 69.4 Term Asset-Backed Securities 54.6 50.2 Ford Interest Advantage / Deposits 6.5 7.2 • Well capitalized with a strong Other 5.7 7.2 balance sheet; $33.7B in net Equity 15.6 15.3 liquidity Adjustmen
Slide 11: Public Term Funding Plan
Public Term Funding Plan* ($B) 2019 2020 2021 Through Actual Actual Forecast Apr 27 • Completed $6B of public issuance in 2021 Unsecured $ 17 $ 14 $ 5-9 $ 1 • Strong balance sheet and substantial liquidity provide Securitizations** 14 13 7 - 10 5 funding flexibility Total $ 31 $ 27 $ 12 - 19 $ 6 * S
Slide 12: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 13: Appendix
Appendix EBT By Segment A2 Financing Shares And Contract Placement Volume A3 Total Net Receivables Reconciliation To Managed Receivables A4 Financial Statement Leverage Reconciliation To Managed Leverage A5 Liquidity Sources A6 Non-GAAP Financial Measures That Supplement GAAP Measures A7 Definitions
Slide 14: EBT By Segment ($M)
EBT By Segment* ($M) Q1 H / (L) 2021 2020 ** Results United States and Canada segment $ 996 $ 974 Europe segment 66 49 All Other segment (15) (22) Total segments $ 1,047 $ 1,001 Unallocated other (85) (69) Earnings before taxes $ 962 $ 932 Taxes (117) (81) Net income $ 845 $ 851 Distributions $ 1,00
Slide 15: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume Q1 2020 2021 Share of Ford Sales* United States 56 % 47 % Canada 63 60 U.K. 44 35 Germany 44 37 China 34 41 Wholesale Share United States 74 % 72 % Canada 47 13 U.K. 100 100 Germany 93 91 China 51 66 Contract Placement Volume - New and Used (000) United
Slide 16: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2020 2020 2021 Mar 31 Dec 31 Mar 31 Finance receivables, net (GAAP) $ 110.8 $ 105.0 $ 100.5 Net investment in operating leases (GAAP) 27.0 26.7 26.6 Total net receivables* $ 137.8 $ 131.7 $ 127.1 Unearned interest supplements and resid
Slide 17: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2020 2020 2021 Mar 31** Dec 31** Mar 31 Leverage Calculation Debt $ 136.8 $ 137.7 $ 126.8 Adjustments for cash (11.3) (18.5) (14.1) Adjustments for derivative accounting (1.6) (1.5) (0.8) Total adjusted debt $ 123.9 $ 117.7 $ 111.
Slide 18: Liquidity Sources ($B)
Liquidity Sources* ($B) 2020 2020 2021 Mar 31 Dec 31 Mar 31 Liquidity Sources Cash $ 11.3 $ 18.5 $ 14.1 Committed asset-backed facilities 35.9 38.1 38.2 Other unsecured credit facilities 2.8 2.5 2.5 Total liquidity sources $ 50.0 $ 59.1 $ 54.8 Utilization of Liquidity Securitization & restricted cas
Slide 19: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. The non-GAAP measures listed below are intended to be considered by users as supplemental
Slide 20: Definitions And Calculations
Definitions And Calculations ABS capacity in excess of eligible receivables and other adjustments (as shown on the Liquidity Sources chart) Includes asset-backed capacity in excess of eligible receivables; cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), w
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