Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q1 2022 Earnings Presentation
42 slides from Ford Mtr Co Del's earnings presentation, Apr 27, 2022
Slide 1: Q1 2022 Earnings
Q1 2022 Earnings April 27, 2022
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: Ford+ Investment Thesis
Ford+ Investment Thesis Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Enriching Customer Experiences and Deepening Loyalty CUSTOMER EXPERIENCE FOUNDATIONAL ENHANCED EXPANDED TAM STRENGTHS CAPABILITIES & VALUE CREATION Ford Blue Iconic Integrated Hardw
Slide 4: Executing Our Investment Thesis To Deliver Ford+
Executing Our Investment Thesis To Deliver Ford+ FOUNDATIONAL STRENGTHS + ENHANCED CAPABILITIES = EXPANDED TAM & VALUE CREATION Iconic Nameplates Integrated Hardware & Software Lincoln IMG launch of next-generation Ranger underway; Over 25,000 vehicles with BlueCruise Lincoln Star concept evolves Qu
Slide 5: Advancing The Ford+ Plan
Advancing The Ford+ Plan To deliver Ford+, we are restructuring our organization to scale EVs, strengthen operations and unlock value in our enterprise Ford Blue Ford Model e Ford Pro Ford Next Ford Credit + Inspire customers to pursue their + Delight customers with truly + Accelerate productivity a
Slide 6: Executing Our Investment Thesis To Deliver Ford+
Executing Our Investment Thesis To Deliver Ford+ Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Enriching Customer Experiences and Deepening Loyalty Enrichin
Slide 7: First Quarter Financial Results
First Quarter Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $34.5B $2.3B 6.7% $(0.6)B $0.38 Down $1.8B Down $1.6B Down 4.1 ppts Down $0.2B Down $0.32 2022 Bronco Sport 7
Slide 8: Q1 Revenue And Adjusted EBIT
Q1 Revenue And Adjusted EBIT Wholesale Units (000) Adjusted EBIT ($B) & Revenue ($B) & EBIT Margin (%) Wholesale Units • Q1 wholesales down 9%, driven by supply chain constraints $37.7 • Revenue down 5%, driven by $36.0 $36.2 $35.7 $34.5 lower volume, weaker currencies and unfavorable mix, offset $2
Slide 9: Q1 Cash Flow, Cash Balance And Liquidity ($B)
Q1 Cash Flow, Cash Balance Adjusted Cash Balance And Liquidity ($B) Free Cash Flow & Liquidity Liquidity • Q1 Adjusted FCF of $(0.6)B, $7.8 driven by unfavorable timing $52.4 $47.4 differences and negative working $46.9 $44.6 capital due to higher inventory $41.0 levels $2.3 $36.5 $1.9 $31.3 $31.5 •
Slide 10: Q1 2022 Results
Q1 2022 Results ($B) $2.3 $1.9 • Company Adjusted EBIT driven $0.9 by Automotive and Ford Credit $0.7 results $(0.2) $(0.3) $(0.3) • Special Items include a $5.4B mark-to-market loss on our Rivian investment $(3.1) $(5.9) Taxes / Automotive Mobility Ford Credit Corporate Company Interest Special Non
Slide 11: Q1 2022 Adjusted EBIT ($B)
Q1 2022 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company Q1 2021 $ 2.9 $ (0.1) $ 0.3 $ (0.0) $ 0.2 $ 3.4 $ 3.9 YoY Change: Volume / Mix $ (0.9) $ (0.0) $ (0.1) $ (0.1) $ (0.1) $ (1.1) $ (1.1) Net Pricing 1.1 0.2 0.3 0.0 0.1 1.7 1.7 Material / Freight $(0.3) Co
Slide 12: North America
North America Leadership in trucks and Ford Pro commercial vehicles; plus, utilities and Wholesale Units (000) Revenue ($B) iconic nameplates $25.8 $24.0 • EBIT decline driven by higher costs, $22.0 $23.0 $22.3 599 mainly commodities, higher warranty 540 533 546 514 expense, unfavorable mix and lowe
Slide 13: South America
South America Lean, de-risked and asset-light business, focused on key franchises like Ranger and Wholesale Units (000) Revenue ($B) Transit • Highest quarterly EBIT margin in over ten years 63 $0.9 $0.8 • Focused on scaling the business for $0.6 $0.6 $0.5 growth 20 26 $0.4 18 18 15 • Expanded pick-
Slide 14: Europe
Europe Commercial vehicle strength with Ford Pro, focused passenger portfolio Wholesale Units (000)* Revenue ($B) with key imports • Continued commercial vehicle 339 $7.1 $7.1 $6.9 leadership: No. 1 commercial vehicle 278 $5.6 $6.1 $5.7 254 brand since 2015 218 213 182 • Launched E-Transit; FORDLiiv
Slide 15: China
China Focused on strength in Lincoln brand, commercial vehicles and Ford utility Wholesale Units (000)* Revenue ($B) portfolio JV Volume • Volume down 15%, driven by weaker 202 186 industry, plant changeover and supply 162 $0.8 $0.8 190 150 150 constraints 184 128 $0.6 $0.6 $0.6 $0.6 160 140 149 • L
Slide 16: International Markets Group
International Markets Group Wholesale Units (000)* Revenue ($B) Portfolio strengths of Ranger pickup and Everest • Volume decline primarily reflecting 93 87 82 80 India restructuring and supply $2.5 $2.5 $2.4 66 $2.3 55 $1.9 constraints $1.7 • Preparing for a full-scale launch of the next-generation
Slide 17: Mobility
Mobility Focused on large scale commercial deployment of autonomous vehicles for moving people and goods • Steady progress towards scaled commercialization of moving people and moving goods EBIT ($B) Q1 EBIT YoY ($B) • Divested investments in TransLoc and Spin; further rationalizing our investment p
Slide 18: Ford Credit
Ford Credit Best-in-class finance company is a Auction Values (Per Unit)* U.S. Retail Loss-to-Receivables strategic asset and competitive advantage (“LTR”) Ratio (%) $30,380 $30,300 • Ford Pro FinSimple continues to $28,715 $28,245 expand services to commercial customers: 0.37% $22,955 ― Credit line
Slide 19: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) First Quarter Balance Sheet 2021 2022 2021 2022 Dec. 31 Mar. 31 Company Adj. EBIT excl. Ford Credit $ 2.9 $ 1.4 Company Excl. Ford Credit Capital spending $ (1.4) $ (1.3) Company Cash Balance (c) $ 36.5 $ 28.8 Depreciation and tooling amortization 1.2 1.3 Liquidity (
Slide 20: Special Items ($B)
Special Items ($B) First Quarter Global Redesign 2021 2022 Potential 2023 Actions and Cash Effects 2022 Actions and Cash Effects Recorded 2018 - 2021 Global Redesign ~$11 South America $ (0.3) $ (0.0) Separations and Other (not included above) (0.1) (0.0) ~$1.0 Subtotal Global Redesign $ (0.4) $ (0.
Slide 21: 2022 Outlook ($B)
2022 Outlook ($B) 2022 Outlook 2021 Actual Adjusted EBIT $11.5 - $12.5 $10.0 Adjusted FCF $5.5 - $6.5 $4.6 Capital Spending ~$7.0 $6.2 Pension Contributions $0.7 - $0.8 $0.8 Global Redesign EBIT Charges $1.0 - $1.5 $1.7 Global Redesign Cash Effects $1.0 - $1.5 $1.9 2022 Explorer Timberline 21
Slide 22: Perspectives On 2022
Perspectives On 2022 OPERATING ENVIRONMENT Strong order bank for new and iconic nameplates – Bronco, PRODUCT Bronco Sport, and Maverick and EV lineup including Variety of global factors driving a high level PORTFOLIO Mustang Mach-E, E-Transit and F-150 Lightning of uncertainty and fluid supply Impro
Slide 23: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification F-150 Lightning At The Rouge EV Center 23
Slide 24: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification Source: comms Construction Preparation At BlueOval City 24
Slide 25: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification CR.org/toppicks Mustang Mach-E Continues To Receive Strong Recognition In 2022 25
Slide 26: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification Rendition Of Cologne Electrification Center 26
Slide 27: Advancing The Ford+ Plan: Next-Generation Ranger
Advancing The Ford+ Plan: Next-Generation Ranger Source: comms Thailand Manufacturing Plant 27
Slide 28: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 29: Appendix
Appendix 2022 Bronco Everglades Available Summer 2022
Slide 30: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 North America 540 533 327 546 599 514 12.1 % 12.5 % 10.4 % 11.2 % 14.3 % 12.0 % South America 63 18 18 20 26 15 6.0 3.6 2.3 2.4 2.4 2.2 Europe 339 278 18
Slide 31: Key Metrics
Key Metrics EBIT ($B) EBIT Change (%) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 North America $ 1.1 $ 2.9 $ 0.2 $ 2.4 $ 1.8 $ 1.6 54 % N/M % 120 % (24) % 68 % (46) % South America (0.1) (0.1) (0.1) 0.0 0.0 0.1 40 35 48 102 134 169 Europe 0.4 0.3
Slide 32: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) 2022 B / (W) 2022 B / (W) Q1 2021 Q1 2022 Q1 2021 Q1 2022 2021 2021 North America 533 514 (20) 12.5 % 12.0 % (0.5) ppts South America 18 15 (2) 3.6 2.2 (1.4) Europe 278 254 (24) 7.2 6.6 (0.5) China 150 128 (23) 2.3 2.2 (0.1) International Markets Gr
Slide 33: Q1 Results ($M)
Q1 Results ($M) First Quarter 2021 2022 2022 B / (W) 2021 North America $ 2,943 $ 1,591 $ (1,352) South America (73) 50 123 Europe 341 207 (134) China (15) (53) (38) International Markets Group 201 96 (105) Automotive $ 3,397 $ 1,891 $ (1,506) Mobility (207) (242) (35) Ford Credit 962 928 (34) Corpo
Slide 34: Quarterly Results ($M)
Quarterly Results ($M) 2021 2022 Q1 Q2 Q3 Q4 Full Year Q1 North America $ 2,943 $ 192 $ 2,420 $ 1,822 $ 7,377 $ 1,591 South America (73) (86) 2 36 (121) 50 Europe 341 (284) (52) (159) (154) 207 China (15) (123) (39) (150) (327) (53) International Markets Group 201 204 125 92 622 96 Automotive $ 3,39
Slide 35: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) First Quarter 2021 2022 Net income / (loss) attributable to Ford (GAAP) $ 3,262 $ (3,110) Income / (Loss) attributable to non-controlling interests - (9) Net income / (loss) $ 3,262 $ (3,119) Less: (Provision for) / Benefit from income taxes (
Slide 36: Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net cash provided by / (Used in) operating activities (GAAP) $ 4,539 $ 4,492 $ 756 $ 7,008 $ 3,531 $ (1,084) Less: Items Not Included in Company Adjusted Free
Slide 37: Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share First Quarter 2021 2022 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ 3,262 $ (3,110) Less: Impact of pre-tax and tax special items 445 (4,674) Adjusted net income – diluted (Non-GAAP) $ 2,817 $ 1,
Slide 38: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2022 Memo: Q1 Full Year 2021 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ (3,848) $ 17,780 Less: Impact of special items (5,866) 9,583 Adjusted earnings before taxes (Non-GAAP) $ 2,018 $ 8,197 Taxes ($M) (Provision
Slide 39: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q1 2021 Ending Q1 2022 Net income / (loss) attributable to Ford $ 4.0 $ 11.6 Add: Non-controlling interest 0.0 (0.0) Less: Income tax 0.0 1.5 Add: Cash tax (0.4) (0.6) Less: Interest on debt (
Slide 40: 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 41: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures • Company Adjusted Free Cash Flow (FCF) (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elemen
Slide 42: Definitions And Calculations
Definitions And Calculations Wholesale Units and Revenue • Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships, units manufactured by Ford that are sold to other manufacturers, units distributed by