Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q3 2023 Earnings Presentation
42 slides from Ford Mtr Co Del's earnings presentation, Oct 26, 2023
Slide 1: Delivering Ford+ Q3 2023 Earnings
Delivering Ford+ Q3 2023 Earnings New 2024 Ford F-150 Available Spring 2024
Slide 2: Contents
Contents Delivering Ford+ Page 4 - 5 Q3 & YTD Results Page 6 - 9 Ford Blue Page 10 Ford Model e Page 11 Ford Pro Page 12 -13 Integrated Services Page 14 Financials Page 16 - 24 2023 Guidance Page 26 - 27 Appendix New 2024 Ford F-150 Raptor Page 29 - 41 Available Spring 2024 2
Slide 3: Safe Harbor Statement And Disclosures
Safe Harbor Statement And Disclosures Forward-Looking Statements GAAP & Non-GAAP Financial Measures This presentation includes forward-looking statements. This presentation includes financial measures calculated in Forward-looking statements are based on expectations, accordance with Generally Accep
Slide 4: 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 Leading iconic nameplates Integrate
Slide 5: Ford+ Business Model Is Designed To Deliver Focused Innovation, Profit & Growth
Ford+ Business Model Is Designed To Deliver Focused Innovation, Profit & Growth Ford Ford Ford Blue Model e Pro 5
Slide 6: Q3 Financial Results
Q3 Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $43.8B $2.2B 5.0% $1.2B $0.39 ▲ 11% ▲ 22% ▲ 0.4pts $2.4B ▲ $0.09 Mustang Dark Horse Track Attack Program Starting January 2024 6
Slide 7: Q3 EBIT by Segment
Ford Ford Ford Blue Model e Pro Q3 EBIT Q3 EBIT Q3 EBIT $1.7B $(1.3)B $1.7B Q3 EBIT Margin Q3 EBIT Margin Q3 EBIT Margin 6.7% (75.6)% 12.0% 7
Slide 8: Year-To-Date Financial Results
Year-To-Date Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $130.2B $9.4B 7.2% $4.8B $1.73 ▲ 14% ▲ 19% ▲ 0.3pts $1.8B ▲ $0.36 New 2024 Ford Super Duty 8
Slide 9: YTD EBIT by Segment
Ford Ford Ford Blue Model e Pro YTD EBIT YTD EBIT YTD EBIT $6.6B $(3.1)B $5.4B YTD EBIT Margin YTD EBIT Margin YTD EBIT Margin 8.8% (72.8)% 12.7% 9
Slide 10: Ford Blue Q3 EBIT
Year-over-year growth in EBIT, EBIT Ford Blue $1.7B margin and revenue Fresh product lineup drives strong order Q3 EBIT bank and pricing power; new F-150 coming in 2024 Maverick and F-150: America’s best-selling hybrid trucks 2023 Maverick Hybrid Unveiled all-new 2025 Mustang GTD, a street-legal sup
Slide 11: Ford Model e Q3 EBIT
Ford Higher-growth start-up in investment mode Model e $(1.3)B Scaling production, diversifying battery chemistries, focused on improving the overall customer Q3 EBIT experience (total cost of ownership, charging, vehicle purchase and post-sale service, etc.) Appropriately balancing the pace of EV i
Slide 12: Ford Pro Q3 EBIT
$1.7B 16% revenue growth, strong EBIT Ford improvement as the Super Duty and Transit Pro Q3 EBIT franchises continue to strengthen EBIT margin of 12.0% + $1.3B YoY Launched all-new Transit Custom #1 U.S. class 1-7 truck / van share; 40.2% share* All-new Transit Custom (Europe) 476K Paid software sub
Slide 13: We Put The Pro In Productivity
We Put The Pro In Productivity Need different image Software Services Electrification Physical Service Providing businesses with data, E-Transit continues to lead the Expanding our support network to insights, and vehicle access and two-tonne electric van segment in offer consistently fast and relia
Slide 14: Integrated Services – Revolutionizing The Customer Experience
Integrated Services – Revolutionizing The Customer Experience Need different image Ford Stolen BlueCruise Pro Telematics Vehicle Services With Dashcam Fully integrated theft prevention Recently launched v1.3 which Uses machine vision and in- and recovery system with features keeps customers in hands
Slide 15: Financials
Financials Vehicles shown (L to R): 2024 Mustang EcoBoost, 2024 Mustang GT, 2024 Mustang Dark Horse, 2025 Mustang GTD, 2024 Mustang GT3, 2024 Mustang GT4, 2024 Mustang Dark Horse R
Slide 16: Q3 Cash Flow, Cash Balance & Liquidity ($B)
Q3 Cash Flow, Cash Balance & Liquidity ($B) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 $3.6 $3.6 $2.9 Adjusted $2.4 $0.7 $1.2 Free Cash Flow Ford Credit Distributions incl. Above $0.6 $0.5 $- $- $- $- $49.2 $50.6 $48.0 $46.2 $47.3 $45.1 $32.0 $32.3 $28.7 $28.7 $29.8 $29.1 Cash Balance Liquidity
Slide 17: Q3 2023 Results ($B)
Q3 2023 Results ($B) $2.2 $1.7 $1.7 $1.2 $0.4 driven by automotive EBIT $(0.0) $(0.2) $(0.3) $(0.2) $(0.5) $(1.3) Interest Taxes / Net Ford Blue Ford Model e Ford Corporate Company Special Ford Pro Ford Next On Debt Non-Controlling Income / Credit Other Adj. EBIT Items Strong cash Interests (Loss) a
Slide 18: Q3 2023 Adjusted EBIT ($B)
Q3 2023 Adjusted EBIT ($B) Warranty $(1.2) Material / Freight (0.6) Ford Ford Ford Ford Ford Corporate Total Blue Model e Pro Next Credit Other Company Pension / OPEB (0.5) Structural (0.3) Q3 2022 $ 1.5 $ (0.6) $ 0.4 $ (0.2) $ 0.6 $ 0.2 $ 1.8 Commodities 1.1 YoY Change: Volume / Mix $ 0.0 $ (0.0) $
Slide 19: Ford Blue
Ford Wholesale Units (000) Revenue ($B) Blue $26.3 $25.1 $25.0 $25.6 741 760 720 736 $23.8 $23.8 670 706 Iconic gas and hybrid passion products like F-150, Bronco and Mustang Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 + Continued strength in product Memo: JV
Slide 20: Ford Model e
Ford Wholesale Units (000) Revenue ($B) Model e 25 30 34 36 $1.6 $1.8 $1.8 24 $1.3 $1.4 Designing and scaling 12 $0.7 breakthrough, connected EVs, and all of Ford’s electric architecture and embedded software Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 + Volum
Slide 21: Ford Pro
Ford Wholesale Units (000) Revenue ($B) Pro 338 321 358 337 365 314 $12.7 $12.0 $13.9 $13.2 $15.6 $13.8 Integrated vehicle hardware, software, service, charging and financing solutions that increase commercial customer productivity Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q2 '22 Q3 '22 Q4 '22 Q1 '2
Slide 22: Ford Credit
Ford Auction Values* (Per Unit) U.S. Retail Loss-to-Receivables (“LTR”) Ratio (%) Credit $32,515 $32,010 $30,150 $31,150 $32,250 $30,250 2017-2019: 0.56% $25,330 0.35% 0.38% A strategic asset and competitive 0.30% 0.25% advantage 0.18% 0.21% 0.00% Q3 '20 Q3 '21 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q3
Slide 23: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Third Quarter Year-To-Date Balance Sheet 2022 2023 2022 2023 2022 Dec 31 2023 Sep 30 Company Adj. EBIT excl. Ford Credit $ 1.2 $ 1.8 $ 5.4 $ 8.3 Company Cash Balance $ 32.3 $ 29.1 Capital spending $ (1.6) $ (2.2) $ (4.5) $ (5.9) Liquidity 48.0 50.6 Depreciation and t
Slide 24: Special Items ($B)
Special Items ($B) Third Quarter Year-To-Date 2022 2023 2022 2023 Restructuring (by Geography) China $ (0.0) $ (0.1) $ (0.0) $ (0.9) Europe (0.0) (0.0) (0.1) (0.5) Ford Credit - Brazil - - (0.2) - Other (a) (0.4) 0.0 (0.5) (0.1) Subtotal Restructuring $ (0.4) $ (0.1) $ (0.7) $ (1.5) Pension and OPEB
Slide 25: CY 2023 Guidance
CY 2023 Guidance New 2024 Ford F-150 Tremor Available Spring 2024 25
Slide 26: CY 2023 Guidance
CY 2023 Guidance 2022 - Based on $9.4B of adjusted EBIT we earned Actuals through Q3 and strong demand for our products, Total Company Adj. EBIT $10.4B we were poised to deliver our prior guidance Total Company Adj. FCF $9.1B Capital Spending $6.5B - Although a tentative agreement has been reached F
Slide 27: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 28: Appendix
Appendix New 2024 Ford Super Duty Tremor 28 28
Slide 29: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Ford Blue $ 2.5 $ 1.5 $ 1.5 $ 2.6 $ 2.3 $ 1.7 $ 23.8 $ 23.8 $ 26.3 $ 25.1 $ 25.0 $ 25.6 Ford Model e (0.5) (0.6) (0.6) (0.7) (1.1) (1.3) 1.3 1.4 1.6 0.7 1.8 1.8 Ford Pro
Slide 30: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) 2023 B / 2023 B / 2023 B / 2023 B / Q3 2022 Q3 2023 2022 YTD 2023 YTD Q3 2022 Q3 2023 2022 YTD 2023 YTD (W) 2022 (W) 2022 (W) 2022 (W) 2022 Ford Blue $ 1.5 $ 1.7 $ 0.3 $ 5.3 $ 6.6 $ 1.4 $ 23.8 $ 25.6 $ 1.8 $ 68.5 $ 75.7 $ 7.2 Ford Model e (0.6) (1.3) (0.7) (1.5) (3
Slide 31: Q3 Results ($M)
Q3 Results ($M) Third Quarter Year-To-Date 2023 B / (W) 2023 B / (W) 2022 2023 2022 2023 2022 2022 Ford Blue $ 1,466 $ 1,718 $ 252 $ 5,298 $ 6,649 $ 1,351 Ford Model e (612) (1,329) (717) (1,502) (3,131) (1,629) Ford Pro 402 1,654 1,252 1,772 5,411 3,639 Ford Next (244) (17) 227 (707) (87) 620 Ford
Slide 32: Year-To-Date 2023 Adjusted EBIT ($B)
Year-To-Date 2023 Adjusted EBIT ($B) Material / Freight $(2.3) Warranty (1.7) Ford Ford Ford Ford Ford Corporate Total Blue Model e Pro Next Credit Other Company Pension / OPEB (1.4) Structural (1.3) Year-To-Date 2022 $ 5.3 $ (1.5) $ 1.8 $ (0.7) $ 2.5 $ 0.5 $ 7.9 Commodities 1.3 YoY Change: Volume /
Slide 33: Quarterly Results ($M)
Quarterly Results ($M) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Ford Blue $ 1,328 $ 2,504 $ 1,466 $ 1,549 $ 6,847 $ 2,623 $ 2,308 $ 1,718 Ford Model e (380) (510) (612) (631) (2,133) (722) (1,080) (1,329) Ford Pro 491 879 402 1,450 3,222 1,366 2,391 1,654 Ford Next (242) (221) (244) (219) (926) (44)
Slide 34: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Third Quarter Year-To-Date Memo: 2022 2023 2022 2023 FY 2022 Net income / (loss) attributable to Ford (GAAP) $ (827) $ 1,199 $ (3,270) $ 4,873 $ (1,981) Income / (loss) attributable to non-controlling interests (103) (26) (141) (21) (171) Net
Slide 35: Operating Cash Flow Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) 2022 2023 Year-To-Date Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 Net cash provided by / (used in) operating activities (GAAP) $ (1,084) $ 2,947 $ 3,812 $ 1,178 $ 2,800 $ 5,035 $ 4,591 $ 5,675 $ 12,426 Less: Items Not
Slide 36: EPS Reconciliation To Adjusted EPS
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Third Quarter Year-To-Date 2022 2023 2022 2023 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ (827) $ 1,199 $ (3,270) $ 4,873 Less: Impact of pre-tax and tax special items (a) (2,063) (376) (8,819)
Slide 37: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2023 Memo: Q3 Year-To-Date Full Year 2022 Pre-Tax Results ($M) Income / (loss) before income taxes (GAAP) $ 1,387 $ 5,834 $ (3,016) Less: Impact of special items (487) (2,593) (12,172) Adjusted earnings before taxes (Non-GAAP) $ 1,874
Slide 38: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q3 2022 Ending Q3 2023 Net income / (loss) attributable to Ford $ 9.0 $ 6.2 Add: Non-controlling interest 0.1 (0.3) Less: Income tax 1.8 (0.9) Add: Cash tax (0.6) (1.1) Less: Interest on debt
Slide 39: 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 40: 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 41: 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 or others, units manufactured by Ford that are sold to other manufacturers, units dist
Slide 42: Delivering Ford+ Q3 2023 Earnings
Delivering Ford+ Q3 2023 Earnings