Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — J.P. Morgan Auto Conference 2015
22 slides from Ford Mtr Co Del's conference presentation, Aug 12, 2015
Slide 1: Go Further
Go Further HAU THAI-TANG GROUP VICE PRESIDENT GLOBAL PURCHASING J. P. MORGAN AUTO CONFERENCE AUGUST 12, 2015
Slide 2: Our Focus
OUR FOCUS One Ford THE PLAN Acceleration Product Excellence Delivered with Passion Innovation Asia Americas Large Medium Profits PROFITABLE GROWTH FOR ALL Pacific + Small + = & Cash In Every Part of Our Europe, Middle East & Africa Business SLIDE 1
Slide 3: One Ford Long-Term Objectives
ONE FORD LONG-TERM OBJECTIVES People Working Together As A Lean, Global Enterprise For Automotive Leadership Top 5 More Top Quartile Highly Sales / Balanced Operating Total Regarded 10%+ Regional Margins Shareholder By All Global & Segment 8%+ Return Stakeholders Share Profits (TSR) Delivering Profi
Slide 4: One Ford Strategic Framework
ONE FORD STRATEGIC FRAMEWORK Strong Serving Complete Ford Profit Brands All Markets Family Of Smart = Best-In-Class Mobility Revenue Vehicles X Margin Large PROFITABLE GROWTH Americas FOR ALL Asia Pacific Medium Europe, Small Middle East & Africa Product Excellence Innovation SLIDE 3
Slide 5: 2015 Purchasing Priorities to Support One Ford
2015 PURCHASING PRIORITIES TO SUPPORT ONE FORD Great Outstanding Best Products Quality Value Sustainable Trusted High Performing Business Relationships Teams Creating Value Through Operational Excellence And Innovation SLIDE 4
Slide 6: Creating Value Through Operational Excellence
CREATING VALUE THROUGH OPERATIONAL EXCELLENCE Launch Risk Scale & Efficient Execution Management Use of Capital SUPPLY RISK Global Scale Regional Scale OPERATIONAL REPUTATIONAL FINANCIAL Local Scale Critical Elements Of Delivering The ONE Ford Plan SLIDE 5
Slide 7: Delivering Scale Benefits – Global Scale
DELIVERING SCALE BENEFITS – GLOBAL SCALE Global Platform Consolidation Global Scale Regional Scale Local Scale 2007 Target Global Scale Enabled By Platform Rationalization Under ONE Ford SLIDE 6
Slide 8: Delivering Scale Benefits – Regional Scale
DELIVERING SCALE BENEFITS – REGIONAL SCALE Manufacturing Hubs In Low Cost Locations Global Scale Regional Scale B-Value Production Hub Local Scale Regional Scale Enabled By Consolidation Of Production SLIDE 7
Slide 9: Delivering Scale Benefits – Local Scale
DELIVERING SCALE BENEFITS – LOCAL SCALE Tailored Designs Global Scale Twist Beam Suspension Independent Suspension Regional Scale Achieving Local Scale • Bundled sourcing across programs • Common bill-of-process • Sufficient volume for supplier site Local Scale • Early supplier involvement High Loca
Slide 10: Delivering Scale Benefits – Bundled Sourcing
DELIVERING SCALE BENEFITS – BUNDLED SOURCING Mondeo Fiesta F-GEN 2 Escape Eco-Sport Cross Program And Cross Platform Bundled Sourcing To Support Localization Objectives SLIDE 9
Slide 11: Early Supplier Engagement
EARLY SUPPLIER ENGAGEMENT Ford/Supplier Design Analysis Ford/Supplier Target Setting (illustrative) OEM Part 1 OEM Part 2 OEM Part 3 Leveraging Supplier Knowledge To Optimize Design And Value SLIDE 10
Slide 12: Revised Sourcing Approach Based on Learnings
REVISED SOURCING APPROACH BASED ON LEARNINGS FROM TO Global Products with Global Products with Common Content Regional Attributes & Parts End Part, Component & BoP End Part Commonality Commonality & Higher Re-use Build In High Volume Build Where You Sell Manufacturing Hubs Platform Sourcing or Platf
Slide 13: Trust
FORD RATED 3RD OVERALL1 FOR SUPPLIER RELATIONSHIP Trust Opportunity for Acts Fair and Consistent and Business Growth Honorably Predictable 1According to Planning Perspectives, inc. North American Automotive - Tier 1 Supplier Working Relations Index® Study Ford’s Goal Is To Remain The Customer Of Cho
Slide 14: Creating Value Through Innovation
CREATING VALUE THROUGH INNOVATION Supplier Innovation Brand Signature Smart Mobility Contribution Mindset Technologies Solutions Ford Suppliers Suppliers Are Key Contributors To Ford’s Delivery Of Smart Mobility SLIDE 13
Slide 15: 2015 Planning Assumptions and Key Metrics
2015 PLANNING ASSUMPTIONS AND KEY METRICS Memo: 2014 FY 2015 FY 2015 1H Results Plan Outlook Results Planning Assumptions (Mils) Industry Volume -- U.S. 16.8 17.0 - 17.5 On Track 17.3 -- Europe 20 14.6 14.8 - 15.3 15.7 - 16.2 15.7 -- China 24.0 24.5 - 26.5 23.0 - 24.0 23.8 Key Metrics Automotive (Co
Slide 16: Q&A
Q&A
Slide 17: Risk Factors
RISK FACTORS 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 assumptions by our management and involve
Slide 18: Appendix
Further APPENDIX
Slide 19: Income From Continuing Operations
INCOME FROM CONTINUING OPERATIONS Memo: 2Q 1H FY 2014 2015 2014 2015 2014 (Mils) (Mils) (Mils) (Mils) (Mils) Automotive North America $ 2,440 $ 2,597 $ 3,940 $ 3,937 $ 6,898 South America (295) (185) (805) (374) (1,162) Europe 14 (14) (180) (199) (1,062) Middle East & Africa 23 (46) 77 33 (20) Asia
Slide 20: Special Items
SPECIAL ITEMS Memo: 2Q 1H FY 2014 2015 2014 2015 2014 (Mils) (Mils) (Mils) (Mils) (Mils) Personnel-Related Items Separation-related actions* $ (152) $ - $ (274) $ - $ (685) Other Items Venezuela accounting change $ - $ - $ - $ - $ (800) Ford Sollers equity impairment (329) - (329) - (329) 2016 Conve
Slide 21: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2014 2015 June 30 Dec. 31 Mar. 31 June 30 (Bils) (Bils) (Bils) (Bils) Cash and cash equivalents $ 4.7 $ 4.6 $ 5.1 $ 6.1 Marketable securities 21.1 17.1 14.4 14.6 Total cash and marketable securities (GAAP) $ 25.8 $ 21.7 $ 19.5 $ 20.7 Securities in
Slide 22: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP Memo: 2Q 1H FY 2014 2015 2014 2015 2014 (Bils) (Bils) (Bils) (Bils) (Bils) Net cash provided by / (used in) operating activities (GAAP) $ 4.1 $ 3.5 $ 6.1 $ 4.5 $ 8.8 Items included in operating-related cash flows Capital spending
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