Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q3 2021 Earnings Presentation
19 slides from Ford Mtr Co Del's earnings presentation, Oct 27, 2021
Slide 1: Q3 2021 Earnings Review
Q3 2021 Earnings Review October 27, 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 Metrics
Key Metrics Best-in-class finance company Auction Values (Per Unit) * U.S. Retail LTR Ratio (%) $28,530 $28,045 Delivering Ford+ • Auction values of off-lease vehicles 0.37% continue at near-record levels $22,160 $22,760 0.30% $21,265 $20,585 0.22% • Proactive lease extension program 0.15% to addres
Slide 4: Q3 2021 Net Receivables Mix
Q3 2021 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $116.5 • Receivables declined $15B YoY, primarily reflecting lower $25.5 wholesale receivables $93.0 • Operating lease portfolio was $25.2 22% of total net receivables $72.0 $54.7 $18.4 $19.
Slide 5: U.S. Origination Metrics And Credit Loss Drivers
U.S. Origination Retail & Lease FICO and Retail Repossessions (000) and Metrics And Higher Risk Mix (%) Repossession Rate (%) Higher Risk Portfolio Mix (%) Repossession Rate (%) Credit Loss 743 748 747 751 Drivers 738 735 6% 6% 6% 6% 5% 5% 5 5 5 3 1.04% 1.01% 3 3 0.92% 0.63% 0.71% 0.52% • Discipline
Slide 6: Worldwide Credit Loss Metrics
Worldwide Credit Loss Net Charge-Offs ($M) and LTR Ratio (%) Metrics LTR Ratio (%) $88 $67 0.32% $45 0.24% $41 • Worldwide credit loss metrics 0.17% 0.16% $9 remain strong and below year $1 0.04% ago levels, reflecting continued 0.00% low losses Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 • Cred
Slide 7: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) and Return Rates (%) Lease Placement Volume (000) 24-Month Return Rate (%) 36-Month 39-Month / Other 65 75 58 53 51 12 62 62 57 • Auction values up 27% YoY 52 11 10 11 43 36 9 reflecting continued strong 59 12 76% 63% 62% 61% 41 21 demand for used vehicle
Slide 8: Cumulative Maturities At Sept. 30, 2021
Cumulative Maturities At Sept. 30, 2021* ($B) Assets Debt • Strong balance sheet is $136 inherently liquid with cumulative $118 debt maturities having a longer $101 tenor than asset maturities $73 $79 $58 • As of September 30, 2021 $72B $39 of $136B assets are $27 unencumbered Oct – Dec 2021 2022 20
Slide 9: Funding Structure – Managed Receivables
Funding Structure – Managed 2020 Dec 31 2021 Sep 30 Receivables* ($B) Term Unsecured Debt $ 76.6 $ 65.2 • Well capitalized with a strong Term Asset-Backed Securities 54.6 45.1 balance sheet; $33B in net Ford Interest Advantage / Deposits 6.5 8.6 liquidity Other 5.7 5.8 • Funding is diversified acros
Slide 10: Public Term Funding Plan
Public Term Funding Plan* ($B) • Completed $13B of public 2019 2020 2021 Through issuance in 2021 Actual Actual Forecast Oct 26 • Strong balance sheet and substantial liquidity provide Unsecured $ 17 $ 14 $ 5-7 $ 5 funding flexibility Securitizations** 14 13 8-9 8 • Significantly reduced public fund
Slide 11: 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 12: 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 13: EBT By Segment ($M)
EBT By Segment* ($M) Q3 YTD H / (L) H / (L) 2021 2020 ** 2021 2020 ** Results United States and Canada segment $ 978 $ 46 $ 3,440 $ 2,041 Europe segment 55 (18) 202 47 All Other segment 45 31 52 14 Total segments $ 1,078 $ 59 $ 3,694 $ 2,102 Unallocated other (1) (105) (32) (136) Earnings before tax
Slide 14: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume Q3 YTD 2020 2021 2020 2021 Share of Ford Sales* United States 55 % 46 % 63 % 47 % Canada 75 72 69 69 U.K. 40 34 42 35 Germany 39 39 39 39 China 40 45 37 44 Wholesale Share United States 74 % 72 % 74 % 72 % Canada 30 8 42 10 U.K. 100 100 100 100 Germany
Slide 15: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2020 2020 2021 Sep 30 Dec 31 Sep 30 Finance receivables, net (GAAP) $ 104.9 $ 105.0 $ 91.0 Net investment in operating leases (GAAP) 26.6 26.7 25.5 Total net receivables* $ 131.5 $ 131.7 $ 116.5 Unearned interest supplements and residu
Slide 16: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2020 2020 2021 Sep 30** Dec 31 Sep 30 Leverage Calculation Debt $ 133.1 $ 137.7 $ 119.0 Adjustments for cash (14.6) (18.5) (14.3) Adjustments for derivative accounting (1.6) (1.5) (0.8) Total adjusted debt $ 116.9 $ 117.7 $ 103.9
Slide 17: Liquidity Sources ($B)
Liquidity Sources* ($B) 2020 2020 2021 Sep 30 Dec 31 Sep 30 Liquidity Sources Cash $ 14.6 $ 18.5 $ 14.3 Committed asset-backed facilities 37.4 38.1 37.7 Other unsecured credit facilities 2.4 2.5 2.7 Total liquidity sources $ 54.4 $ 59.1 $ 54.7 Utilization of Liquidity Securitization & restricted cas
Slide 18: 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 19: 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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