Ford Mtr Co Del · NYSE:F

Ford Mtr Co Del — Ford Motor Company — 2016 J.P. Morgan Auto Conference

18 slides from Ford Mtr Co Del's conference presentation, Aug 9, 2016

  1. Slide 1: Joe Hinrichs, EVP & President, The Americas

    JOE HINRICHS EVP & PRESIDENT, THE AMERICAS August 9, 2016 1

  2. Slide 2: Key Topics

    KEY TOPICS  First Half Automotive Segment  U.S. Incentives Results  Ford U.S. Stocks  First Half North America Results  2017 Lincoln Continental  North America First Half Vs. Second Half  2017 Ford Super Duty  U.S. Industry Sales 2

  3. Slide 3: Automotive Segment First Half Results

    AUTOMOTIVE SEGMENT FIRST HALF RESULTS Wholesales (000) Revenue (Bils) Market Share (Pct) Operating Margin (Pct) Pre-Tax Results (Mils) 1H key metrics strong and $72.2 up YOY except global 8.7% 3,264 3,414 $66.9 7.4% 7.3% market share $6,296 6.7% $4,484 Wholesales up 5%; revenue up 8% Operating margi

  4. Slide 4: Automotive Segment – North America First Half Results

    AUTOMOTIVE SEGMENT – NORTH AMERICA FIRST HALF RESULTS Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) Strong 1H performance 1,494 1,629 $47.7 14.2% 14.5% 12.1% Wholesales up 9%; $43.3 $5,783 10.2% revenue up 10% $4,407 Higher NA market share includes

  5. Slide 5: North America Consistently Strong Results

    AUTOMOTIVE SEGMENT – NORTH AMERICA CONSISTENTLY STRONG RESULTS Pre-Tax Results and Operating Margin Pre-Tax Profit (Bils) Profits and operating Operating Margin (Pct) margins have been $4 15% strong for 6+ years Operating Margin (Pct) 27 consecutive Pre-Tax Profit (Bils) $3 10% profitable quarters $

  6. Slide 6: North America First Half vs. Second Half

    AUTOMOTIVE SEGMENT – NORTH AMERICA FIRST HALF VS. SECOND HALF 2H seasonally weaker than 1H. Pre-Tax Results (Bils) Factors driving further weakness this year: $5.8  Super Duty launch – major impact in 3Q  Higher warranty cost including latch recall  Higher commodities, exchange headwinds  Fleet

  7. Slide 7: United States Industry SAAR

    AUTOMOTIVE SEGMENT – UNITED STATES INDUSTRY SAAR U.S. Industry SAAR (Mils)* 1H U.S. industry 17.4 17.6 SAAR up 0.2M from 18.3 18.3 1H 2015 but lower than 17.4–17.9 17.6 17.7 17.5 2H 2015 run rate 17.2 17.2 17.2 16.9 1H U.S. retail industry 16.1 SAAR down 0.1M from 1H 2015 and lower than 2H 2015 run

  8. Slide 8: United States Incentives as a Percent of Vehicle Price

    AUTOMOTIVE SEGMENT – UNITED STATES INCENTIVES AS A PERCENT OF VEHICLE PRICE* 2Q YTD (through July 24) H/(L) H/(L) Car incentives increased 2016 2015 2016 2015 reflecting weakness in (Pct) (Ppts) (Pct) (Ppts) segment, while SUV Car Ford 15.7 % 1.6 ppts 16.0 % 2.0 ppts incentives generally were Indust

  9. Slide 9: United States Blended Transaction Price

    AUTOMOTIVE SEGMENT – UNITED STATES BLENDED TRANSACTION PRICE* 2Q YTD (through July 24) 2016 2016 H/(L) 2015 2016 2016 H/(L) 2015 Car transaction price (Per Unit) (Per Unit) (Pct) (Per Unit) (Per Unit) (Pct) decreased reflecting Car weakness in car segment Ford $23,375 $ (262) (1.1) % $23,245 $ (161)

  10. Slide 10: United States F-150 Transaction Price and Incentive Trends

    AUTOMOTIVE SEGMENT – UNITED STATES F-150 TRANSACTION PRICE AND INCENTIVE TRENDS* Blended Transaction Price Per Unit F-150 Primary Competitors $40,500 $38,500 F-150 had lower incentives and higher average $36,500 transaction price than $34,500 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 primary

  11. Slide 11: United States Ford Stocks

    AUTOMOTIVE SEGMENT – UNITED STATES FORD STOCKS Days supply was seasonal reflecting sales fluctuations, Gross Inventory Days Supply plant operating patterns, and Cars Trucks product launches SUVs Total Car days supply was flat 103 at 66 days 88 SUV days supply increased in 80 75 74 2016 as additional

  12. Slide 12: 2017 Lincoln Continental

    2017 LINCOLN CONTINENTAL  3.0L Twin-Turbo V6 engine  400HP / 400lb.-ft  Innovative eLatch electronic door handles  Adaptive Cruise Control with Stop & Go technology  Pre-Collision Assist with Pedestrian Detection Elegant Design, Effortless Power 12

  13. Slide 13: 2017 Lincoln Continental

    2017 LINCOLN CONTINENTAL  30-way Perfect Position seats  7 interior environments  Rear-Seat package with reclining seats  Revel Ultima sound system  Active noise control  Embedded modem Serene Interior, Thoughtfully Crafted 13

  14. Slide 14: 2017 Ford Super Duty

    2017 FORD SUPER DUTY  Over 8,500 GVWR segment leader – 43% U.S. share of segment  First complete product overhaul in 18 years  Built Ford Tough – New high-strength steel, fully boxed frame – New military grade aluminum-alloy body and box for weight reduction – Improved powertrains – More capabili

  15. Slide 15: We Own Work.

    OIL & GAS METAL HEAVY ELECTRIC, GAS EXTRACTION MINING CONSTRUCTION FORESTRY & SANITATION CONSTRUCTION 50% 69% 48% 50% 58% 43% SUPER DUTY SILVERADO HD RAM HD 29% 50% SUPER DUTY SILVERADO HD RAM HD 18% 69% SUPER DUTY SILVERADO HD RAM HD 27% 48% SUPER DUTY SILVERADO HD RAM HD 23% 50% SUPER DUTY SILVERA

  16. Slide 16: Key Takeaways

    KEY TAKEAWAYS  Strong first half performance  2016 U.S. industry volumes about same or slightly lower than 2015  Incentive discipline is a priority  Dealer inventory appropriately managed  Expect weaker than normal 2H, and particularly 3Q, due to Super Duty launch, warranty, commodities and exc

  17. Slide 17: Go Further

    Go Further

  18. Slide 18: 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

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