Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q4 2021 Earnings Presentation
44 slides from Ford Mtr Co Del's earnings presentation, Feb 3, 2022
Slide 1: Q4 & Full Year 2021 Earnings Review
Q4 & Full Year 2021 Earnings Review (February 3, 2022) 2022 F-150 Tremor
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 Electric Iconic Integrated Hardwa
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 Electric Maverick and Bronco named North America Launched BlueCruise and Alexa services to Direct-to-customer model in Chin
Slide 5: Executing Our Investment Thesis – 2021 Highlights
Executing Our Investment Thesis – 2021 Highlights Disruptive Disruptive Technology Technology Allows Allows Us Us to to Leverage Leverage Foundational Foundational Strengths Strengths to to Build Build New New Capabilities Capabilities –– Enriching Enriching Customer Customer Experiences Experiences
Slide 6: Fourth Quarter Financial Results
Fourth Quarter Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $37.7B $2.0B 5.4% $2.3B $0.26 Up $1.7B Up $0.3B Up 0.6 ppts Up $0.5B Down $0.08 2021 Mustang Mach-E GT F u l l Ye a r $136.3B $10.0B 7.3% $4.6B $1.59 Up $9.2B Up $7.5B Up 5.3 ppts Up $3.3B Up $1.23 6
Slide 7: Q4 Revenue And Adjusted EBIT
Q4 Revenue And Adjusted EBIT Wholesale Units (000) Adjusted EBIT ($B) & Revenue ($B) & EBIT Margin (%) Wholesale Units • Q4 wholesales down 11%, driven by supply chain disruption $37.5 $37.7 $36.0 $36.2 $35.7 • Revenue up 5%, driven by higher net pricing and mix improvement, offset $26.8 partially b
Slide 8: Q4 Cash Flow, Cash Balance And Liquidity ($B)
Q4 Cash Flow, Cash Balance Adjusted Cash Balance And Liquidity ($B) Free Cash Flow & Liquidity Liquidity $7.8 Q4 Adjusted FCF of $2.3B driven by: $47.4 $52.4 $6.3 $46.9 $47.2 • Favorable working capital due to $45.5 $41.0 lower inventory levels $36.5 $2.3 • Automotive EBIT $1.9 $30.8 $31.3 $31.5 Riv
Slide 9: Q4 2021 Results ($B)
Q4 2021 Results ($B) $12.3 $9.6 • Company Adjusted EBIT driven by strong Automotive and Ford Credit results • Special Items include Rivian IPO and $1.6 $2.0 mark-to-market net gain of $8.2B $1.1 $1.1 consistent with our policy change to treat gains / (losses) on our $(0.3) $(0.3) $(0.4) investments
Slide 10: Full Year 2021 Results ($B)
Full Year 2021 Results ($B) $17.9 • Company Adjusted EBIT driven by strong Automotive and Ford Credit $10.0 $9.6 results $7.4 • Special Items include Rivian IPO and $4.7 mark-to-market net gain of $9.1B $0.2 $(1.0) $(1.1) $(1.8) Taxes / Automotive Mobility Ford Credit Corporate Company Interest Spec
Slide 11: Q4 2021 Adjusted EBIT ($B)
Q4 2021 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company Q4 2020 $ 1.1 $ (0.1) $ 0.4 $ (0.1) $ (0.1) $ 1.3 $ 1.7 YoY Change: Volume / Mix $ 0.1 $ (0.1) $ (0.6) $ (0.1) $ 0.0 $ (0.7) $ (0.7) Net Pricing 1.8 0.2 0.4 0.0 0.1 2.5 2.5 Material / Freight $(0.2) Cost
Slide 12: Full Year 2021 Adjusted EBIT ($B)
Full Year 2021 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company FY 2020 $ 3.7 $ (0.5) $ (0.9) $ (0.5) $ (0.2) $ 1.7 $ 2.5 YoY Change: Volume / Mix $ (1.7) $ (0.2) $ (0.9) $ (0.2) $ 0.1 $ (2.9) $ (2.9) Net Pricing 7.9 0.6 0.9 0.1 0.2 9.7 9.7 Material / Freight
Slide 13: North America
North America Leadership in trucks and Ford Pro commercial vehicles; plus, utilities and Wholesale Units (000) Revenue ($B) iconic nameplates $25.3 $25.8 $23.0 $24.0 651 $22.0 599 • FY EBIT margin of 8.4% - best 540 533 546 $15.0 performance since ‘17 327 • Strong pricing / mix more than offset high
Slide 14: South America
South America Lean, de-risked and asset-light business, focused on key franchises like Ranger and Wholesale Units (000) Revenue ($B) Transit • Restructuring of legacy business 63 $0.9 $0.8 complete; reduced full year losses by 75% 48 $0.6 $0.6 $0.5 $0.4 • Strengthened truck and commercial 18 18 20 2
Slide 15: Europe
Europe Commercial vehicle strength with Ford Pro, focused passenger portfolio Wholesale Units (000) * Revenue ($B) with key imports 339 $7.1 $7.1 • Reduced full year losses by 82% despite 278 $5.7 $5.6 $6.1 $5.7 239 lower volume due to semiconductor 218 213 182 constraints • No. 1 commercial vehicle
Slide 16: China
China Focused on strength in Lincoln brand, commercial vehicles and Ford utility Wholesale Units (000) * Revenue ($B) portfolio JV Volume 202 $1.0 186 • Continued improvement in profit trajectory 164 150 150 162 $0.8 $0.8 190 184 - reduced full year losses by 34% 160 $0.6 $0.6 $0.6 146 140 149 • Ful
Slide 17: International Markets Group
International Markets Group Wholesale Units (000) * Revenue ($B) Portfolio strengths of Ranger pickup and Everest • Delivered solid profits; Ranger, lynchpin 93 82 87 76 80 $2.5 $2.5 for region, increased share 1.1 ppts to 66 $2.0 $2.3 $2.4 $1.9 14.9% • Investing nearly $2B in South Africa and Thail
Slide 18: Mobility
Mobility Focused on large scale commercial deployment of autonomous vehicles for moving people and goods • Confident in Argo AI’s progress on delivering a Level 4 autonomous vehicle EBIT ($B) Q4 EBIT YoY ($B) solution; fully support Argo AI’s access to public funding • Steady progress towards the sc
Slide 19: Ford Credit
Ford Credit Best-in-class finance company is a strategic asset and competitive Auction Values (Per Unit) * U.S. Retail LTR Ratio (%) advantage $30,560 $28,760 $28,370 • Delivered another year of strong financial 0.37% results and #1 for J.D. Power’s U.S. 0.30% $22,925 mass-market financing satisfact
Slide 20: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Fourth Quarter Full Year Balance Sheet 2020 2021 2020 2021 2020 2021 Dec. 31 Dec. 31 Company Adj. EBIT excl. Ford Credit $ 0.8 $ 1.0 $ (0.1) $ 5.3 Company Excl. Ford Credit Capital spending $ (1.5) $ (1.8) $ (5.7) $ (6.2) Company Cash Balance (c) $ 30.8 $ 36.5 Deprec
Slide 21: Special Items ($B)
Special Items ($B) Fourth Quarter Full Year Global Redesign 2020 2021 2020 2021 Potential 2023+ Actions and Cash Effects Global Redesign 2022 Actions and Cash Effects South America $ (2.4) $ (0.1) $ (2.5) $ (0.8) Recorded 2018 - 2021 Europe (0.3) (0.2) (0.7) (0.5) Russia (0.0) (0.0) 0.0 0.0 ~$11 Chi
Slide 22: 2022 Outlook ($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 - $8.0 $6.2 Pension Contributions $0.6 - $0.8 $0.8 Global Redesign EBIT Charges $1.8 - $2.4 $1.7 Global Redesign Cash Effects $2.0 - $2.5 $1.9 2022 Maverick Lariat 22
Slide 23: Perspectives On 2022
Perspectives On 2022 Continued strong enthusiasm and demand for new and iconic OPERATING ENVIRONMENT PRODUCT nameplates – award winning Bronco and Maverick and BEV PORTFOLIO lineup including Mustang Mach-E, E-Transit and Supply constraints to remain fluid F-150 Lightning reflecting a variety of fact
Slide 24: Accelerating Electrification – F-150 Lightning
Accelerating Electrification – F-150 Lightning Rouge EV Center (USA) 24
Slide 25: Accelerating Electrification – E-Transit Battery Assembly
Accelerating Electrification – E-Transit Battery Assembly Otosan Assembly Plant (Turkey) 25
Slide 26: Accelerating Electrification – Mustang Mach-E Assembly
Accelerating Electrification – Mustang Mach-E Assembly CAF Assembly Plant (China) 26
Slide 27: Accelerating Electrification – Electrification Center
Accelerating Electrification – Electrification Center Rendition of Cologne Electrification Center (Germany) 27
Slide 28: Accelerating Electrification – Enabler To 140 GWh In NA
Accelerating Electrification – Enabler To 140 GWh In NA SK On Battery Plant (USA) 28
Slide 29: Growing Ford Pro
Growing Ford Pro Ford Pro Collaborating With Sonoma County Winegrowers (USA) 29
Slide 30: 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 31: Appendix
Appendix 2022 Bronco Raptor
Slide 32: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 North America 651 540 533 327 546 599 13.6 % 12.1 % 12.5 % 10.4 % 11.2 % 14.3 % South America 48 63 18 18 20 26 5.7 6.0 3.6 2.3 2.4 2.4 Europe 239 339 27
Slide 33: Key Metrics
Key Metrics EBIT ($B) EBIT Change (%) Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 North America $ 3.2 $ 1.1 $ 2.9 $ 0.2 $ 2.4 $ 1.8 65 % 54 % N/M % 120 % (24) % 68 % South America (0.1) (0.1) (0.1) (0.1) 0.0 0.0 34 40 35 48 102 134 Europe (0.4) 0.4
Slide 34: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) 2021 B / (W) 2021 B / (W) 2021 B / (W) 2021 B / (W) Q4 2020 Q4 2021 2020 FY 2021 FY Q4 2020 Q4 2021 2020 FY 2021 FY 2020 2020 2020 2020 North America 540 599 59 2,081 2,006 (75) 12.1 % 14.3 % 2.2 ppts 13.2 % 12.0 % (1.2) ppts South America 63 26 (37
Slide 35: Q4 Results ($M)
Q4 Results ($M) Fourth Quarter Ful l Year 2020 2021 2021 B / (W) 2020 2020 2021 2021 B / (W) 2020 North America $ 1,083 $ 1,822 $ 739 $ 3,710 $ 7,377 $ 3,667 South America (105) 36 141 (490) (121) 369 Europe 409 (159) (568) (851) (154) 697 China (65) (150) (85) (499) (327) 172 International Markets
Slide 36: Quarterly Results ($M)
Quarterly Results ($M) 2020 2021 Q1 Q2 Q3 Q4 Ful l Year Q1 Q2 Q3 Q4 Ful l Year North America $ 372 $ (946) $ 3,201 $ 1,083 $ 3,710 $ 2,943 $ 192 $ 2,420 $ 1,822 $ 7,377 South America (112) (165) (108) (105) (490) (73) (86) 2 36 (121) Europe (149) (667) (444) 409 (851) 341 (284) (52) (159) (154) Chin
Slide 37: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Fourth Quarter Full Year 2020 2021 2020 2021 Net income / (loss) attributable to Ford (GAAP) $ (2,788) $ 12,282 $ (1,279) $ 17,937 Income / (Loss) attributable to non-controlling interests (3) (9) 3 (27) Net income / (loss) $ (2,791) $ 12,273
Slide 38: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) Full Year Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2020 2021 Net cash provided by / (Used in) operating activities (GAAP) $ 4,539 $ 4,492 $ 756 $ 7,008 $ 3,531 $ 24,269 $ 15,787 Less: Items Not Included in C
Slide 39: EPS Reconciliation To Adjusted EPS
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Fourth Quarter Full Year 2020 2021 2020 2021 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ (2,788) $ 12,282 $ (1,279) $ 17,937 Less: Impact of pre-tax and tax special items (4,139) 11,220 (2,724) 1
Slide 40: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2021 Memo: Q4 Full Year Full Year 2020 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ 11,218 $ 17,780 $ (1,116) Less: Impact of special items 9,614 9,583 (2,003) Adjusted earnings before taxes (Non-GAAP) $ 1,604 $ 8,
Slide 41: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q4 2020 Ending Q4 2021 Net income / (loss) attributable to Ford $ (1.3) $ 17.9 Add: Non-controlling interest 0.0 (0.0) Less: Income tax (0.2) 0.1 Add: Cash tax (0.4) (0.6) Less: Interest on de
Slide 42: 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 43: 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 44: 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