Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (January 2003)
21 slides from Ford Mtr Co Del's debt investor presentation, Jan 22, 2003
Slide 1: Fourth Quarter 2002 Fixed Income Presentation
FOURTH QUARTER 2002 FIXED INCOME PRESENTATION JANUARY 21, 2003
Slide 2: Fourth Quarter and Full Year 2002 Results
Earnings Per Share -- Operating Income* $ 0.08 $ 0.56 $ 0.47 $ 0.91 -- Net Income (GAAP) (0.07 ) 2.74 (0.55 ) 2.47 Income (Mils.) -- Operating Income* $ 150 $1,010 $ 872 $1,654 -- Net Income (GAAP) (130 ) 4,938 (980 ) 4,473 Effective Tax Rate* 32.7 % (0.2 ) Pts. 32.7 % (0.2 ) Pts. Worldwide Vehicle
Slide 3: 2002 Unusual Items
2002 UNUSUAL ITEMS Operating Income $ 150 $ 0.08 $ 872 $ 0.47 Exclude Unusual Items FAS 142 Impairment $ - $(1,002 ) Restructuring Ford of Europe (117 ) (117 ) P.A.G. (106 ) (106 ) Major Dispositions (Prim. Kwik-Fit) - (525 ) Europe End-of-Life Vehicle - (46 ) FAS 133 (Derivatives) (57 ) (198 ) Tax
Slide 4: 2003 External Milestones
2003 EXTERNAL MILESTONES Planning Assumptions Industry Volume -- U.S. 16.5 million units -- Europe 17.0 million units Net Pricing* -- U.S. Zero -- Europe 1% Physicals Quality Improve in all regions Market Share Improve in all regions Automotive Cost Performance* Improve by at least $500 million Capi
Slide 5: Ford Credit Results & Metrics
FORD CREDIT RESULTS & METRICS* Key Metrics Receivables (Bils.) Owned $147 $138 $129 Securitized 59 66 71 Managed $206 $204 $200 Managed Credit Loss Ratio U.S. Retail & Lease 1.76 % 1.51 % 1.87 % Worldwide Total 1.46 1.37 1.54 Allow. for Owned Credit Losses Worldwide Amount (Bils.) $2.8 $3.2 $3.2 - P
Slide 6: Ford Credit - Executed Revised Strategy
Growth Curtailment Actions North America Reduce Non-Ford Contract Volume 40 % 53 % Reduce Used Retail Contract Volume 35 33 Reduce Leasing Contract Volume 10 25 Integrate Fairlane Credit Rest of World Reduce European Used & Non-Ford Volume by 20% Sell Axus Leasing Pursue Alternative Business Models
Slide 7: Credit Loss Metrics
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ford Credit U.S. Managed LTR 0.0115 0.0101 0.0127 0.0176 0.0142 0.0123 0.0151 0.0187 Worldwide Managed LTR 0.0102 0.0106 0.0122 0.0146 0.0136 0.0124 0.0137 0.0154 Managed Reserves as Pct. Of EOP Receivables 0.0114 0.0111 0.0125 0.0161 0.0177 0.0177 0.019 0.0195 CREDIT LOSS ME
Slide 8: Residual Value Risk Metrics
Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 RR 24-Month 0.75 0.75 0.75 0.76 0.78 RR 36-Month 0.52 0.58 0.59 0.59 0.67 RESIDUAL VALUE RISK METRICS Lease Terminations Up Unfavorable Up Unfavorable Contractual Lease-end Value Down Equal Down Equal Auction Value Down Equal Down Equal Return Rates Up Equal U
Slide 9: Present Debt Ratings - Ford & Ford Credit
PRESENT DEBT RATINGS - FORD & FORD CREDIT Agency Long- Term Outlook Short- Term Fitch BBB+ Negative F-2 Moody's Ford Motor Company Baa1 Negative N/A Ford Credit A3 Negative P-2 Standard & Poor's BBB Negative A-2
Slide 10: Ford Credit Funding Structure
FORD CREDIT FUNDING STRUCTURE 2000 2001 2002 2003 Equity 12 13 14 14 Term Debt/Other 110 133 125 117.5 Securitization 23 30 41 32 ABS CP 1.4 16 17 22 Commercial Paper 42 14 3 5 Unsecured Term Debt / Other Equity Securitization & Bank Conduits Unsecured Net Commercial Paper Asset-Backed Commercial Pa
Slide 11: Ford Credit Term Funding Plan
Term Debt GlobLSTM $19 $ 2 $0 Non-Dollar Denominated 17 9 2 Retail / MTN / Other 4 3 0 Total Term Debt $40 $14 $2 $ 5 - 8 $ 7 - 10 Term Public Securitization* 20 17 3 9 - 12 12 - 15 Total Term Funding $60 $31 $5 $14 - 20 $19 - 25 Memo: Prior Plan (4Q02) $22 - 32 FORD CREDIT TERM FUNDING PLAN 2001 Ac
Slide 12: New Funding Sources
2002 Motown Notes Extendable ABCP Continuously Offered Bonds for Retail Accounts Expanded International Securitization Triad Securitization (Sub-Prime) 2003 Canadian Retail Bond Program Potential to expand retail funding to other international markets Whole Loan Sale New Funding Sources Ford Credit
Slide 13: Ford Credit Liquidity
FORD CREDIT LIQUIDITY Net Unsecured CP $ 3.4 $ 1.6 - 3.6 * $12.6 Motown Notes 5.0 - 0.3 FCAR 12.0 1.3 13.3 Ford Credit Affiliates 0.9 0.2 1.1 Auto Available to Ford Credit - - 7.2 Subtotal $21.1 $ 3.1 - 5.1 $34.5 Multi-Seller Conduits 5.2 7.3 12.5 Total Ford Credit $26.3 $10.4 - 12.4 $47.0 * Reflect
Slide 14: Ford Credit Leverage
FORD CREDIT LEVERAGE 2000 2001 Mar. June Sept. Dec. Managed 13.9 14.8 13.7 13.4 13 12.9 Manag 13.9 14.8 13.7 13.4 13 12.9 Owned 11.9 11.2 9.5 9.5 9 9 Owned 11.9 11.2 9.5 9.5 9 9 * Managed** After a Fourth Quarter dividend of $700 million, Ford Credit's managed leverage at year-end was 12.9 to 1 For
Slide 15: Pension Update
PENSION UPDATE Year-end 2002 status Underfunded by $7.3 billion in the US; $15.6 billion worldwide Full year 2002 U.S. pension fund return was negative 9.7% Incremental reduction in equity of $5.4 billion Contributed $500 million of cash to the U.S. fund on January 6; plan to accelerate contribution
Slide 16: Summary
SUMMARY Ford Operating earnings exceeded consensus in the Fourth Quarter Cost reductions continue to accelerate Ford Credit The credit loss and residual environment are difficult, but we have established adequate reserves Earnings continue to improve, leverage is down, and the dividend has been rest
Slide 17: Risk Factors
Statements included herein may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, incl
Slide 18: Appendix
APPENDIX
Slide 19: Fourth Quarter Automotive Cash
FOURTH QUARTER AUTOMOTIVE CASH Gross Cash (Incl. VEBA) December 31 $25.3 $25.3 September 30 / January 1 25.7 17.7 Change in Gross Cash $ (0.4 ) $ 7.6 Operating Related Cash Flows Automotive Net Income (GAAP) $ (0.4 ) $ (2.0 ) Impairments, Kwik-Fit, Restructuring and Other Non-Cash 0.3 1.6 Capital Sp
Slide 20: Loss Frequency (Repossession Ratio)
LOSS FREQUENCY (REPOSSESSION RATIO) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Global 0.0217 0.0192 0.0227 0.0237 0.024 0.0213 0.0241 0.0283 0.028 0.0247 0.0281 0.0309 Ford Credit U.S. Retail and Lease Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2000 2001 2002
Slide 21: Loss Severity (Avg. Loss per Charge-Off)
LOSS SEVERITY (AVG. LOSS PER CHARGE-OFF) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Global 5570 5620 5670 6230 6155 6315 6580 7210 6600 6745 6990 7515 Ford Credit U.S. Retail and Lease Q1 Q2 Q3 Q4 2000 Q1 Q2 Q3 Q4 2002 Q1 Q2 Q3 Q4 2001
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