Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Deutsche Bank Global Industrials and Basic Materials Conference 2015
26 slides from Ford Mtr Co Del's conference presentation, Jun 3, 2015
Slide 1: Go Further
Go Further BERNARD SILVERSTONE CHAIRMAN & CEO FORD MOTOR CREDIT COMPANY GROUP VICE PRESIDENT FORD MOTOR COMPANY DEUTSCHE BANK GLOBAL INDUSTRIALS AND BASIC MATERIALS CONFERENCE JUNE 3, 2015
Slide 2: One Ford Acceleration Product Excellence
OUR FOCUS One Ford THE PLAN Acceleration Product Excellence Delivered with Passion Innovation Asia Americas Large Medium Profits PROFITABLE GROWTH FOR ALL = In Every Part of Our + Pacific Europe, Middle East & Africa Small + & Cash 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 Complete Profit Ford = Strong Serving Family Of Smart Revenue Brands All Markets Best-In-Class X Mobility Vehicles Margin Large Americas PROFITABLE GROWTH FOR ALL Asia Pacific Medium Europe, Small Middle East & Africa “Turbo Machine” • Further Strengthen • Nurture Develo
Slide 5: Innovation Mindset
INNOVATION MINDSET Challenge Custom And Question Tradition Take Nothing Take Risks For Granted Move Fast Ride The And Focus On The Technology Constantly Consumer Curve Innovate Experience Lead With Innovation In Every Part Of Our Business SLIDE 4
Slide 6: Anything else is just credit.
Anything else is just credit. SLIDE 5
Slide 7: Supporting Ford Around the World
FORD CREDIT SUPPORTING FORD AROUND THE WORLD • Ford, Lincoln 2014 sales: 6.3 million (wholesale) • Ford, Lincoln 2014 dealers: 11,980 Joint Ventures Outside Providers Ford Credit Export Finance Ford Credit Operations Joint Ventures Outside Providers Ford Credit Export Finance SLIDE 6
Slide 8: Integration Creates Strategic Advantage
FORD CREDIT INTEGRATION CREATES STRATEGIC ADVANTAGE SLIDE 7
Slide 9: Business Operations
FORD CREDIT BUSINESS OPERATIONS BUY IT RIGHT OPERATE, COLLECT EFFICIENTLY FUND EFFICIENTLY ORIGINATE SERVICE • Customer contracts: 4.2 million • Customer touch points: ~100 million a year • Dealers: 5,200 FUND Ford Credit Maintains A Relentless Focus On Business Fundamentals SLIDE 8
Slide 10: Value Proposition – Customer Loyalty to Ford
FORD CREDIT VALUE PROPOSITION – CUSTOMER LOYALTY TO FORD U.S. - % Loyal to Ford & Lincoln 75% 65% 55% 17 ppts. 45% 35% 25% 2010 2011 2012 2013 2014 Ford Credit Dealer Arranged Customer Arranged Source: Maritz New Vehicle Customer Survey 2010-2014 Customers Who Finance With Ford Credit Are More Loyal
Slide 11: Effective Servicing -- Low Credit Losses
FORD CREDIT EFFECTIVE SERVICING -- LOW CREDIT LOSSES Worldwide Charge-Offs (Mils) and Loss-to-Receivables Ratio (%) 1.07% 1.02% 0.84% 0.57% 0.47% 0.39% 0.46% 0.24% 0.16% 0.18% 0.19% $1,327 $706 $523 $632 $355 $1,095 $415 $201 $136 $176 $209 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Worl
Slide 12: Worldwide Managed Receivables and Equity
FORD CREDIT WORLDWIDE MANAGED RECEIVABLES AND EQUITY 1Q 2015 Managed Receivables* Of $113 Billion Regional View Product View Dealer Loan and Other 3% $3 Billion International 19% Wholesale 27% $22 Billion $31 Billion Retail 49% U.S. & Canada $55 Billion 81% Leases 21% $91 Billion $24 Billion Equity*
Slide 13: Capital Strategy
FORD CREDIT CAPITAL STRATEGY Expanding and diversifying funding programs globally – Increasing mix of term debt, reducing mix of securitization – Developing innovative funding platforms in developed and emerging markets, including China Maintaining strong liquidity to protect against funding disrupt
Slide 14: A Strategic Asset
FORD CREDIT A STRATEGIC ASSET Consistently profitable business driven by: Integrated marketing strategy with Ford World-class operating costs Strong risk management – well-performing portfolio Distributions Pre-tax Results $4.9 $3.7 $2.9 $3.1 $2.4 $2.3 $2.2 $2.1 $2.5 $2.5 $1.8 $1.8 $2.0 $2.0 $2.0 $1
Slide 15: 2015 Key Financial Summary
FORD CREDIT 2015 KEY FINANCIAL SUMMARY Focus RS SLIDE 14
Slide 16: 2015 Planning Assumptions and Key Metrics
2015 PLANNING ASSUMPTIONS AND KEY METRICS Memo: 2014 Full Year 2015 Full Year 2015 Results Plan Outlook 1Q Planning Assumptions (Mils) Industry Volume -- U.S. 16.8 17.0 - 17.5 On Track 17.1 -- Europe 20 14.6 14.8 - 15.3 15.2 - 15.7 15.7 -- China 24.0 24.5 - 26.5 24.0 - 26.0 24.0 Key Metrics Automoti
Slide 17: Q&A
Q&A
Slide 18: Further Information
FURTHER INFORMATION Ford Investor Relations Contacts: Equity Investors: Fixed Income Investors: Erik Eliason Stephen Dahle 313.594.0613 313.621.0881 eeliason@ford.com fixedinc@ford.com Information on Ford: Ford Motor Credit Company: shareholder.ford.com FordCredit.com/investor-center 10-K Annual Rep
Slide 19: 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 20: Appendix
Further APPENDIX
Slide 21: 2015 Income from Continuing Operations
2015 INCOME FROM CONTINUING OPERATIONS Memo: 1Q Full Year 2014 2015 2014 (Mils) (Mils) (Mils) Automotive North America $ 1,500 $ 1,340 $ 6,898 South America (510) (189) (1,162) Europe (194) (185) (1,062) Middle East & Africa 54 79 (20) Asia Pacific 291 103 589 Other Automotive (222) (212) (755) Tota
Slide 22: 2015 Special Items
2015 SPECIAL ITEMS 1Q 2014 2015 (Mils) (Mils) Personnel-Related Items Separation-related actions* $ (122) $ - Tax Special Items $ 92 $ - Memo: Special items impact on earnings per share** $ (0.01) $ - * Primarily related to separation costs for personnel at the Genk and U.K. facilities ** Includes r
Slide 23: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP 1Q 2014 2015 (Mils) (Mils) Interest expense (GAAP) $ (208) $ (165) Investment-related interest income (GAAP) 39 45 Interest income / (expense) on income taxes (GAAP) 26 (9) Subtotal $ (143) $ (129) Adjusted for items included / excluded from net
Slide 24: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Mar. 31, Dec. 31, Mar. 31, 2014 2014 2015 (Bils) (Bils) (Bils) Cash and cash equivalents $ 4.5 $ 4.6 $ 5.1 Marketable securities 20.7 17.1 14.4 Total cash and marketable securities (GAAP) $ 25.2 $ 21.7 $ 19.5 Securities in transit* - - - Gross cash
Slide 25: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP Memo: 1Q Full Year 2014 2015 2014 (Bils) (Bils) (Bils) Net cash provided by / (used in) operating activities (GAAP) $ 2.0 $ 1.0 $ 8.8 Items included in operating-related cash flows Capital spending (1.5) (1.8) (7.4) Proceeds from
Slide 26: Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2014 Mar. 31, 2015 Net Receivables * (Bils) (Bils) Finance receivables – North America Segment Consumer retail financing $ 44.1 $ 43.7 Non-consumer: Dealer financing** 22.5 22.5 Non-consumer: Other 1.0 0.9 Total finance receivables –