Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q3 2017 Earnings Presentation
81 slides from Ford Mtr Co Del's earnings presentation, Oct 26, 2017
Slide 1: 2017 Earnings Review
30 2017 Earnings Review 30 ¢ 26, 2017 e
Slide 2: Business Review / Financial Review / Appendix / Ford Credit
Business Review Appendix Ford Credit Vision and Strategy 3 Shareholder Distributions A1 Product and Other Highlights 4 Business Shareholder Payout Ratio A2 Strategy FC2 Financial Review Reconciliations to GAAP 2Q 2017 Highlights FC3 Financial Headlines 6 Adjusted Pre-Tax Profit A3 Financial Key Fina
Slide 3: Smart Vehicles In A Smart World
Smart Vehicles In A Smart World FITNESS FITNESS Redesign Reset Revenue Business and Attack Costs Operations WINNING ASPIRATION STRATEGIC CHOICES CULTURAL IMPLICATIONS We are accelerating the introduction of connected, smart vehicles and services . Weare rapidly improving our fitness to lower costs,
Slide 4: Product And Other Highlights
Product And Other Seen High series vehicles, like Titanium and Vignale, accounted for more than > at Ford brand SUV sales had best third quarter retail sales result in U.S. since 2003 ‘New F-150 hit showrooms in the US. ; F-Series 30 ATP was $45,400, up $2,800 from a year ago two-thirds of 3Q sales
Slide 5: Financial Review
Bob Shanks Chief Financial Officer Financial Review
Slide 6: More Balanced Results With Improvements In Growth, Profitability And Cash Flow
More Balanced Results With Improvements In Growth, Profitability And Cash Flow Automotive Automotive Total Company Segment Segment TotalCompany Total Company Adjusted Adjusted Operating Operating Revenue Net Income Pre-Tax Results* EPS EPS* Margin Cash Flow (GAAP) (GAAP) (Non-GAAP) (GAAP) (Non-GAAP)
Slide 7: 3Q YTD Financial Summary
3Q YTD B / (W) B / (W) 2017 2016 2017 2016 Wholesales (000) 1,504 (26) 4,858 (86) Revenue (Bils) $ 36.5 $ 0.6 $ 115.5 $ 2.4 Results (Mils) Automotive Segment $ 1,668 $ 584 $ 5,824 $ (1,556) Financial Services Segment 584 32 1,653 217 All Other (278) (55) (777) (204) Total Company adjusted pre-tax re
Slide 8: Total Company
Total Company 3Q 2017 Adjusted Pre-Tax Results* (mits) $1,974 Auto and Financial Services results drove Company adj. PBT All Other primarily treasury-related activities plus FSM LLC Higher Company adj. PBT more than explained by improved Auto §(278) results Total Automotive Financial All Other Segme
Slide 9: Automotive Segment
Automotive Segment 3Q 2017 Pre-Tax Results (mits) B/(W) 302016 $1,668 Total $584 $1,683 $289 | P| a gcse) —«$(86),—«$(60) $(15) North South Europe Middle East Asia America America & Africa Pacific $421 $137 $(224) $92 $158 Auto PBT driven by NA and record 3Q in AP Operations outside of NA about brea
Slide 10: Automotive Segment
Automotive Segment 3Q 2017 Key Metrics Wholesales Revenue Market Share Operating Margin —_ Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) 7.3% 5.0% 6.8% $1,668 Auto operating margin and PBT ° improved sharply; first YoY gains 3.3% since 1Q 2016. Achieved despite $1,084 relatively flat top line and
Slide 11: Automotive Segment Pre-Tax Results Drivers
Pricing $ 588 Incentives / Other (401) Engineering $108 Advertising & Sales Promo. 111 Other (18) Mat’l, Excl. Commodities $ 204 Commodities (318) Warranty 616 Industry $ 100 Freight / Other 12 Share (158) Stocks (59) Mix 122 Other (102)
Slide 12: Automotive Segment — North America
Automotive Segment — North America 3Q 2017 Key Metrics Wholesales Revenue Market Share Operating Margin —_ Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) $21. 8 $20 13.6% 13.5% 687 650 8.1% $1,683 5.8% $1,262 Y¥ 5% 4% BY Oloots B® 23 opts t 33% 2016 92017 2016 2017 2016 2017 2016 92017 2016 2017 YT
Slide 13: North America Pre-Tax Drivers
Industry $ 9 Share (27) Stocks (227) Mix 37 Other (15) Engineering $113 Spending Related 94 Other (10) Pricing $ 319 Mat’l, Excl. Commodities $ 94 Incentives / Other (260) Commodities (201) Warranty 653 Other (13)
Slide 14: Automotive Segment — North America
Automotive Segment — North America A Disciplined Approach To The U.S. Business YoY Average Transaction Price (USD)* YoY Incentive Change as Pct. of Vehicle Price* I Industry Average I Industry Average Hi Ford $1,219 Ford Better 4 15 848 ° $763 09 09 07 ol 0.2 0.3 $288 = $215 $192 (0.1) iz = (0.6) Ju
Slide 15: Automotive Segment — South America
Automotive Segment — South America 3Q 2017 Key Metrics Wholesales Revenue Market Share Operating Margin —_ Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) 103 9.4% 89 $15 8.8% || $1.3 (9.9)% $(158) (22.1)% $(295) # 16% # 19% H 0.6 pots B 12.2 pots Ht 46% 2016 92017 2016 2017 2016 2017 2016 92017 201
Slide 16: South America Pre-Tax Drivers
Industry $ 70 Commodities $(31) Share (25) Other (24) Stocks 11 Mix 7 Pricing $118 Other (17) Incentives / Other 9
Slide 17: Automotive Segment — Europe
Automotive Segment — Europe 3Q 2017 Key Metrics Wholesales* Revenue Market Share Operating Margin — Pre-Tax Results . . ; (000) (Bils) (Pct) (Pct) (Mils) Top line up YoY; all of Europe’s other key metrics lower 320 342 $6.3 36.9 78% o 9138 Volume up due to favorable dealer 7.3% 2.2% stock change, ma
Slide 18: Europe Pre-Tax Drivers
Mat’l, Excl. Commodities $(53) Commodities (69) Industry $ (13) Warranty (47) Share (73) Freight / Other 19 Stocks 152 Mix 56 Manufacturing, Incl. Volume Related $(62) Other (85) Engineering (40) Other (29) Pricing $144 Incentives / Other (4)
Slide 19: Automotive Segment — Middle East & Africa
Automotive Segment — Middle East & Africa 3Q 2017 Key Metrics Wholesales Revenue Market Share Operating Margin —_ Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) 36 il Oo 30 «= 90.8 4.2% 4.9% $0.6 (9.2)% $(60) (19.0)% $(152) ¥ 7% ye 19% HY 0.2 ots B® 9B ots t 61% 2016 ©2017 2016 2017 2016 2017 2016
Slide 20: Middle East & Africa Pre-Tax Drivers
Industry $(27) Share (9) Stocks 3 Mix (16) Other (23)
Slide 21: Automotive Segment — Asia Pacific
Automotive Segment — Asia Pacific 3Q 2017 Key Metrics Wholesales* Revenue Market Share Operating Margin —_ Pre-Tax Results . . (000) (Bils) (Pct) (Pct) (Mils) Record 3Q operating margin and PBT 398 379 $3.7 3.7% 3.49 7.9% Wholesale volume down due to $3.1 ° $289 China; revenue up including Lincoln i
Slide 22: Asia Pacific Pre-Tax Drivers
Industry $ 61 Pricing $ (4) Share (24) Incentives / Other (133) Stocks 2 Mix 38 Other 38 Mat’l, Excl. Commodities $118 Other 14
Slide 23: Financial Services Segment — Ford Credit
Financial Services Segment — Ford Credit 3Q 2017 Key Metrics U.S. Retail and Lease Net Managed Pre-Tax Average Over-60-Day Loss-to-Receivables Receivables Receivables* Results Placement Delinquencies (LTR) (Bils) (Bils) (Mils) FICO® (Pct) (Pct) Strong and improved 30 PBT Receivables grew globally, l
Slide 24: Ford Credit Pre-Tax Drivers
Change in Reserves $(20) Actual Losses (10) Supplemental Depreciation $38 Residual Losses 19 Derivatives Market Valuation $(25) Forso JV Consolidation (17) Operating Costs & Other (19)
Slide 25: Financial Services Segment — Ford Credit
Financial Services Segment — Ford Credit U.S. Automotive Financing Trends Lease Share of Retail Sales (Pct) Lease Return Vol. (000) and Auction Values** Ford Credit = —mIndustry* —®=—36 Month —m™ Return Volume $17,685 $17,425 9 31% ——~__s15460_stgsz0_516900_O70R0 . 31% 20% 29% 30% Prudent management
Slide 26: Cash Flow and Balance Sheet
(Bils) 3Q 2017 YTD 2017 Cash at end of period $ 26.1 $ 26.1 Cash at beginning of period 28.4 27.5 Change in cash $ (2.3) $ (1.4) Automotive segment pre-tax profits $ 1.7 $ 5.8 Capital spending (1.7) (4.9) Depreciation and tooling amortization 1.3 3.7 Changes in working capital (0.6) (0.8) All other
Slide 27: Balance Sheet
(Bils) 2016 2017 Dec 31 Sep 30 Automotive Segment Cash, cash equivalents and marketable securities $ 27.5 $ 26.1 Available credit lines* 10.8 10.9 Total liquidity $ 38.3 $ 37.0 Debt $ 15.9 $ 16.2 Cash net of debt 11.6 9.9 Ford Credit Managed receivables** $ 137 $ 145 Debt 126 132 Liquidity 27 30 Man
Slide 28: Planning Assumptions: GDP Growth and Industry
GDP Growth (Pct) Industry (Mils) 2016 2017 2016 2017 Global* 3.0% 3.5% 92.5 94.8 U.S. 1.5% 2.2% 17.9 17.4 Brazil (3.6)% 0.4% 2.1 2.2 Europe 1.6% 2.3% 20.1 20.9 China** 6.7% 6.7% 27.5 28.2
Slide 29: 2017 Full Year Company Guidance
2017 Full Year Company Guidance Oo © © © ® Adjusted Automotive Automotive Segment Automotive Segment Adjusted EPS* Effective Tax Rate* Segment Revenue Operating Margin Operating Cash Flow Lower Than Positive But Lower 2017 FY $1.75- $1.85 About 15% About Equal To 2016 2016 Than 2016 2016 FY Result $
Slide 30: 2017 Business Unit Full Year Guidance
2017 Business Unit Full Year Guidance Automotive North South Middle East Asia Total . America America Europe & Africa Pacific Automotive Ford Credit ~All Other PBT Higher srw t $ t t 2 — Commodities Net Pricing — Other Cost + Cost + Cost - Commodities + Receivables — Net Interest = Other Cost Volume
Slide 31: Questions & Answers
Questions & Answers
Slide 32: Key Takeaways
Key Takeaways ¢ Delivered a solid quarter with more balanced results with improvements in growth, profitability and cash flow ¢ Improvements were supported by early signs of becoming a more fit company ¢ Maintained a strong balance sheet with substantial cash and liquidity ¢ Continued strong results
Slide 33: 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 invol
Slide 34: Appendix
Appendix
Slide 35: Shareholder Distributions
Shareholder Distributions (sits) HE Supplemental Dividend {BB Anti-Dilutive Share Repurchases HE Regular Dividends $15.4 $3.5 $2.3 $1.0 z Average 2016 2017 2012 - 2017 2012 - 2015 Total shareholder distributions of $15.4B 2012 - 2017 We paid a third quarter regular dividend of 15¢ per share We plan
Slide 36: Cumulative Shareholder Payout
2015 - 2016 2015 2016 Cumulative Shareholder Payout (Mils) Quarterly cash dividends $ 2,380 $ 2,383 $ 4,763 Purchases of common stock 129 145 274 Subsequent year supplemental cash dividends 992 199 1,191 Total shareholder payout $ 3,501 $ 2,727 $ 6,228 Net Income Adjustments (Mils) Net income attrib
Slide 37: Adjusted Pre-Tax Profit
(Mils) 3Q YTD Memo: 2016 2017 2016 2017 FY 2016 Net income / (Loss) attributable to Ford (GAAP) $ 957 $ 1,564 $ 5,379 $ 5,193 $ 4,596 Income / (Loss) attributable to non-controlling interests 4 7 9 22 11 Net income / (Loss) $ 961 $ 1,571 $ 5,388 $ 5,215 $ 4,607 Less: (Provision for) / Benefit from i
Slide 38: Adjusted Effective Tax Rate
2017 Memo: 3Q YTD FY 2016 Pre-Tax Results (Mils) Income / (Loss) before income taxes (GAAP) $ 1,757 $ 6,259 $ 6,796 Less: Impact of special items (217) (441) (3,579) Adjusted pre-tax profit (Non-GAAP) $ 1,974 $ 6,700 $ 10,375 Taxes (Mils) (Provision for) / Benefit from income taxes (GAAP) $ (186) $
Slide 39: Special Items
(Mils) 3Q YTD Memo: 2016 2017 2016 2017 FY 2016 Pension and OPEB remeasurement gain / (loss) $ - $ - $ (11) $ - $ (2,996) Separation-related actions $ (17) $ (230) $ (293) $ (259) $ (304) Other Items San Luis Potosi plant cancellation $ - $ (12) $ - $ 41 $ (199) Japan, Indonesia market closure (9) -
Slide 40: Adjusted Earnings Per Share
2017 3Q YTD Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP) $ 1,564 $ 5,193 Less: Impact of pre-tax and tax special items (170) (363) Adjusted net income – diluted (Non-GAAP) $ 1,734 $ 5,556 Basic and Diluted Shares (Mils) Basic shares (average shares outstanding) 3,972 3,975 Net d
Slide 41: Managed Receivables
(Bils) 2015 2016 2016 2017 Dec 31 Sept 30 Dec 31 Sep 30 Financial Services finance receivables, net (GAAP)* $ 90.7 $ 95.2 $ 96.2 $ 103.9 Net investment in operating leases (GAAP)* 25.1 27.0 27.2 26.9 Consolidating adjustments** 6.1 5.7 6.8 6.7 Ford Credit total net receivables $ 121.9 $ 127.9 $ 130.
Slide 42: Managed Leverage
(Bils) 2016 2016 2017 2017 Sept. 30 Dec. 31 Jun. 30 Sep 30 Leverage Calculation Total debt* $ 123.5 $ 126.5 $ 129.3 $ 132.4 Adjustments for cash** (9.2) (10.8) (10.1) (11.3) Adjustments for derivative accounting*** (1.0) (0.3) (0.2) (0.2) Total adjusted debt $ 113.3 $ 115.4 $ 119.0 $ 120.9 Equity***
Slide 43: Automotive Debt
2016 2017 (Bils) Dec 31 Jun 30 Sep 30 Public unsecured debt $ 9.2 $ 9.2 $ 9.2 U.S. Department of Energy 3.2 2.9 2.8 Other debt (including international) 3.5 4.1 4.2 Total Automotive debt $ 15.9 $ 16.2 $ 16.2 Memo: Automotive debt payable within one year $ 2.7 $ 2.9 $ 3.6
Slide 44: China Unconsolidated Affiliates
3Q YTD Memo: 2016 2017 2016 2017 FY 2016 China Unconsolidated Affiliates Wholesales (000) 296 267 837 791 1,217 Ford equity income (Mils)* $ 320 $ 241 $ 1,059 $ 710 $ 1,439 China JV net income margin 13.4% 12.2% 15.3% 12.0% 14.6%
Slide 45: Industry Volume
Units (Mils) 3Q YTD 2016 2017 B / (W) 2016 2017 B / (W) North America 21.7 21.3 (0.4) 21.6 21.2 (0.4) U.S. 17.8 17.4 (0.4) 17.7 17.2 (0.5) South America 3.7 4.3 0.6 3.6 4.0 0.4 Brazil 2.0 2.4 0.4 2.1 2.2 0.1 Europe 20.1 21.1 1.0 20.0 20.7 0.7 Middle East & Africa 3.6 3.4 (0.2) 3.7 3.6 (0.1) Asia Pac
Slide 46: Market Share
(Percent) 3Q YTD 2016 2017 B / (W) 2016 2017 B / (W) Total Share of Total Industry North America 13.6 % 13.5 % (0.1) ppts 14.2 % 14.0 % (0.2) ppts U.S. 14.0 14.1 0.1 14.9 14.8 (0.1) South America 9.4 8.8 (0.6) 8.8 9.0 0.2 Brazil 10.0 9.3 (0.7) 9.1 9.4 0.3 Europe 7.8 7.3 (0.5) 7.7 7.5 (0.2) Middle Ea
Slide 47: Production Volumes
(000) 3Q 2017 Actual 4Q 2017 Forecast O / (U) O / (U) Units 2016 Units 2016 North America 661 (38) 715 5 South America 95 7 91 14 Europe 306 17 422 65 Middle East & Africa 28 3 24 1 Asia Pacific 375 (37) 442 (38) Total 1,465 (48) 1,694 47
Slide 48: Dealer Stocks
(000) U.S. Brazil Europe 21 MEA China 3Q September 30, 2017 617 20 246 47 168 June 30, 2017 699 15 251 51 176 Stock Change H / (L) (82) 5 (5) (4) (8) 3Q Prior Year September 30, 2016 658 22 206 63 150 June 30, 2016 728 21 247 65 144 Stock Change H / (L) (70) 1 (41) (2) 6 Year-Over-Year Stock Change
Slide 49: Non-GAAP Financial Measures That Supplement GAAP
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 50: Definitions And Calculations
Definitions And Calculations Automotive Records . References to Automotive records for operating cash flow, operating margin and business units are since at least 2000 Wholesales and Revenue . Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconso
Slide 51: 2017 Earnings Review | Ford Credit
30 2017 Earnings Review | FORD CREDIT October 26, 2017
Slide 52: Ford Credit Strategy
Ford Credit Strategy a. s 2 Oy S ORIGINATE SERVICE FUND ¢ Support Ford and ¢ High customer and dealer * Strong liquidity Lincoln sales satisfaction + Strong dealer relationships ¢ World-class servicing * Credit losses within expectations ¢ Full spread of business * Consistent underwriting * Operatio
Slide 53: 3Q 2017 Highlights
3Q 2017 Highlights ¢ Strong third quarter pre-tax profit ¢ Profitable across all segments ¢ Receivables grew globally ¢ Auction values continued to improve and were stronger than expected ¢ $378 million distribution paid to parent in the third quarter; $406 million year to date ¢ Announced additiona
Slide 54: Financial Review
Financial Review
Slide 55: Ford Credit 3Q Results and Balance Sheet Highlights
3Q YTD H / (L) H / (L) 2017 2016 2017 2016 Total contract volumes (000) 552 (20) 1,573 (19) Results (Mils) Americas segment $ 485 $ 62 $ 1,308 $ 140 Europe segment 72 (7) 223 (34) Asia Pacific segment 23 3 69 23 Total segments $ 580 $ 58 $ 1,600 $ 129 Unallocated other 20 (25) 100 90 Total pre-tax r
Slide 56: 3Q 2017 Pre-Tax Results By Segment
3Q 2017 Pre-Tax Results By Segment mits) $600 Total B/(W) 302016 $33 * See Appendix or definitions $580 XK \ $485 $72 ms Es es Asia Unallocated Americas Europe Pacific Other* $62 $(7) $3 $(25) Solidly profitable globally FC6
Slide 57: 3Q 2017 Key Metrics
3Q 2017 Key Metrics U.S. Retail and Lease Net Managed Pre-Tax Average Over-60-Day Loss-to-Receivables Receivables Receivables* Results Placement Delinquencies (LTR) (Bils) (Bils) (Mils) FICO® (Pct) (Pct) Strong and improved 30 PBT Receivables grew globally, led by retail financing and consolidation
Slide 58: Change in Reserves
Change in Reserves $(20) Actual Losses (10) Supplemental Depreciation $38 Residual Losses 19 Derivatives Market Valuation $(25) Forso JV Consolidation (17) Operating Costs & Other (19)
Slide 59: Financing Shares — Americas
3Q YTD 2016 2017 2016 2017 Financing Shares (%) Retail Installment and Lease Share of Ford Retail Sales (excl. Fleet) United States 61 % 53 % 59 % 53 % Canada 72 74 74 75 Wholesale Share United States 76 % 76 % 76 % 76 % Canada 61 60 61 61 Contract Placement Volume - New and Used Retail / Lease (000
Slide 60: Financing Shares — Europe
3Q YTD 2016 2017 2016 2017 Financing Shares (incl. Fleet) (%) Retail Installment and Lease Share of Total Ford Sales U.K. 37 % 32 % 38 % 34 % Germany 46 50 46 48 Total Europe Segment 37 38 36 36 Wholesale Share U.K. 100 % 100 % 100 % 100 % Germany 89 94 91 94 Total Europe Segment 97 99 98 98 Contrac
Slide 61: Financing Shares — Asia Pacific
3Q YTD 2016 2017 2016 2017 Financing Shares (incl. Fleet) (%) Retail Installment Share of Total Ford Sales China 19 % 31 % 16 % 28 % India 5 9 3 9 Wholesale Share China 57 % 55 % 57 % 56 % India 32 36 28 36 Contract Placement Volume - New and Used Retail (000) China 46 71 111 174 India 1 2 2 6 Total
Slide 62: Mix of Net Receivables
Q3 2017 H/(L) 2016 (Pct.) (Ppts.) SUV / CUV 55 1 Car 23 (4) Truck 22 3
Slide 63: U.S. Origination Metrics
U.S. Origination Metrics FICO and Higher Risk Mix (Pct) Higher Risk Portfolio Mix = Retail and Lease Average Placement FICO 748 741 743 741 741 744 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Retail Contract Terms Retail 2 73 Months Mix m Average Retail Placement Term 64mo 66 mo 64mo 65mo 65mo 66 mo 2Q16 3Q16 4Q1
Slide 64: U.S. Retail And Lease Credit Loss Drivers
U.S. Retail And Lease Credit Loss Drivers Over-60-Day Delinquencies (excl. Bankruptcies) Repossessions (000) and Repo. Rate (Pct) —@—Repo.Rate lll Repossessions 016% 0.16% 0.16% osére 106% M6% HE% 106% 112% 0.12% 0.13% _ 10 2016 «= 3016S 4Q16.Si«idQ.-—«<“(GséiTSCtstBQT 2016 «3016. 406.—isdQ?SC(aésiQ
Slide 65: Worldwide Credit Loss Metrics
Worldwide Credit Loss Metrics Charge-Offs (Mils) and LTR Ratio (Pct) -eLTRRatio = Charge-Offs 0.39% 0.35% 9 , 0.32% 0.29% 0.33% one $132 sno sig $107 $101 Worldwide credit loss metrics oe Credit loss reserve based on 2016 3016 4016 tv 2017 3017 historical losses, portfolio quality Credit Loss Reserv
Slide 66: U.S. Lease Origination Metrics
U.S. Lease Origination Metrics Lease Placement Volume (000) @ 24-Month @ 36-Month m™ 39-Month/ Other 106 i 89 91 ie 97 91 U 0 . a : : 2016 3016 4016 tov” 2017 307 Lease share continues to be below Lease Share of Retail Sales (Pct) industry reflecting Ford sales mix Ford Credit —™Industry* 31% 29% 29
Slide 67: U.S. Lease Residual Performance
U.S. Lease Residual Performance Lease Return Volume (000) and Return Rates (Pct) —eReturn Rates ™ Lease Return 71% 71% 81% 83% 81% 79% = — 80 : : : _ a ; = — 2016 3016 4016 1017 2017 3017 Off-Lease Auction Values (at 3Q17 Mix) —e=24-Month —i 36-Month $20,100 $19,935 18915 $19,285 $19,835 $20,105 si6
Slide 68: Funding Structure
Funding Structure —- Managed Receivables* (ais) $137 $145 $127 $4 $6 haa Commercial Paper $2 a Ford Interest Advantage / Deposits ree OY Term Asset-Backed Securities Funding is diversified across platforms and markets Well capitalized with strong investment grade balance sheet Term Debt (incl Bank B
Slide 69: Public Term Funding Plan
2017 2015 2016 Through Actual Actual Forecast Oct 25 Unsecured Ford Credit U.S. $ 11 $ 10 $ 9 - 11 $ 8 Ford Credit Canada 1 1 2 2 FCE Bank 4 3 2 2 Rest of World - - 1 1 Total Unsecured $ 17 $ 14 $ 14 - 16 12 Securitizations $ 13 $ 13 $ 14 - 16 $ 13 Total Public $ 30 $ 28 $ 28 - 32 $ 25
Slide 70: Balance Sheet Metrics
Balance Sheet Metrics Leverage (to1)* = Financial Statement m Managed _ _ Managed leverage within target 4Q16 2Q17 3Q17 Target range Liquidity Available For Use (Bils) Liquidity remains strong and above target $27 $29 $30 §25¢ 4Q16 2Q17 3Q17 Target * See Appendix for reconciliation to GAAP FC20
Slide 71: 2017 Guidance
Memo: 2016 FY 2017 FY 2017 YTD Results Plan Outlook Results Pre-Tax Profit $ 1,879 About $1,500 > $2,000 $ 1,700 Resuming with Distributions $ - leverage in On Track $ 406 target range
Slide 72: Key Takeaways
Key Takeaways Now expect full year pre-tax profit to exceed $2.0 billion Receivables grew globally Auction values stronger than expected; outlook improved Consistent originations, servicing, and collections Funding plan well-positioned for business cycles Strategic asset to Ford, delivering profitab
Slide 73: 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 invol
Slide 74: Appendix
Appendix
Slide 75: Appendix Contents
Appendix Credit Ratings Total Net Receivables Reconciliation to Managed Receivables Financial Statement Leverage Reconciliation to Managed Leverage Liquidity Sources Non-GAAP Financial Measures that Supplement GAAP Measures Definitions and Calculations FCAI FCA2 FCA3 FCA4 FCA5 FCA6
Slide 76: Credit Ratings
S&P Moody's Fitch DBRS Issuer Ratings Ford Motor BBB N/A BBB BBB Ford Credit BBB N/A BBB BBB FCE Bank plc BBB N/A BBB NR Long-Term Senior Unsecured Ford Motor BBB Baa2 BBB BBB Ford Credit BBB Baa2 BBB BBB FCE Bank plc BBB Baa2 BBB NR Short-Term Unsecured Ford Credit A-2 P-2 F2 R-2M Outlook Stable St
Slide 77: Total Net Receivables Reconciliation to Managed Receivables
(Bils) 2015 2016 2016 2017 Dec 31 Sep 30 Dec 31 Sep 30 Finance receivables, net (GAAP) $ 96.8 $ 100.9 $ 103.0 $ 110.6 Net investment in operating leases (GAAP) 25.1 27.0 27.2 26.9 Total net receivables* $ 121.9 $ 127.9 $ 130.2 $ 137.5 Unearned interest supplements and residual support 4.5 5.3 5.3 5.
Slide 78: Leverage Calculation
(Bils) 2016 2016 2017 2017 Sep 30 Dec 31 Jun 30 Sep 30 Leverage Calculation Total debt $ 123.5 $ 126.5 $ 129.3 $ 132.4 Adjustments for cash (9.2) (10.8) (10.1) (11.3) Adjustments for derivative accounting (1.0) (0.3) (0.2) (0.2) Total adjusted debt $ 113.3 $ 115.4 $ 119.0 $ 120.9 Equity $ 12.7 $ 12.
Slide 79: Liquidity Sources
(Bils) 2016 2016 2017 2017 Sep 30 Dec 31 Jun 30 Sep 30 Liquidity Sources Cash $ 9.2 $ 10.8 $ 10.1 $ 11.3 Committed ABS facilities 35.6 34.6 32.3 33.4 Other unsecured credit facilities 2.4 2.5 2.7 2.8 Ford corporate credit facility allocation 3.0 3.0 3.0 3.0 Total Liquidity Sources $ 50.2 $ 50.9 $ 48
Slide 80: Non-GAAP Financial Measures That Supplement GAAP
Non-GAAP Financial Measures That Supplement GAAP Measures * Weuse 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 81: Definitions And Calculations
Definitions And Calculations Adjustments (as shown on the Liquidity Sources chart) + Include certain adjustments for asset-backed capacity in excess of eligible receivables and cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can be accessed through