Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (April 2003)
24 slides from Ford Mtr Co Del's debt investor presentation, Apr 16, 2003
Slide 1: First Quarter 2003 Fixed Income Presentation
FIRST QUARTER 2003 FIXED INCOME PRESENTATION APRIL 16, 2003
Slide 2: First Quarter Results
Earnings Per Share $0.45 $ 1.06 Net Income (Mils.) $ 896 $1,990 - Income from Continuing Operations 899 979 Revenue (Bils.) Total Sales and Revenue $40.9 $1.4 Automotive Sales 34.2 2.0 Automotive Return On Sales Worldwide 1.7 % 2.4 Pts. Automotive Cash, Marketable Securities and VEBA* Assets (Bils.)
Slide 3: Revised Automotive Sector Reporting
REVISED AUTOMOTIVE SECTOR REPORTING Business unit basis Based on absolute costs Worldwide results reported Included in Other Automotive Geographic, legal entity basis Reflected transfer prices for vehicles, components, and product engineering Included in regional results Included in regional results
Slide 4: 2003 Full Year Milestones
2003 FULL YEAR MILESTONES Planning Assumptions Industry Volume -- U.S. 16.5 million units No Change 16.2 -- Europe 17.0 million units 16.5 Mils. 16.6 Net Pricing* -- U.S. (Ford / LM) Zero No Change 0.2 % -- Europe (Ford) 1% No Change (1.4 )% Physicals Quality Improve in all regions On Track Market S
Slide 5: Ford Credit Results and Metrics
FORD CREDIT RESULTS AND METRICS Receivables (Bils.) Owned $137 $119 Securitized 66 74 Managed $203 $193 Credit Losses (Mils.) Owned $585 $493 Managed 683 685 Credit Loss Ratio Owned 1.68 % 1.61 % Managed - U.S. Retail and Lease 1.42 1.85 - Worldwide Total 1.35 1.42 Allow. for Owned Credit Losses - W
Slide 6: Credit Loss Metrics
Q1 Q2 Q3 Q4 Q1 Worldwide Managed 0.0135 0.0125 0.0139 0.0156 0.0142 Worldwide Owned 0.0168 0.0158 0.0171 0.0192 0.0161 Managed Reserves as Pct. Of EOP Receivables 0.0177 0.0177 0.019 0.0195 Q1 Q2 Q3 Q4 Q1 Ford Credit U.S. Managed LTR 0.0142 0.0123 0.0151 0.0187 0.0185 Ford Credit U.S. Owned 0.0178 0
Slide 7: Credit Loss Drivers - Ford Credit U.S. Retail & Lease
Q1 Q2 Q3 Q4 Q1 Worldwide Owned 52 45 50 53 51 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 NON-BANKRUPT 0.0033 0.0031 0.0048 0.0048 0.0043 0.0029 0.0038 0.0035 0.0041 BANKRUPT 0.0023 0.0024 0.0025 0.0026 0.0027 0.0028 0.0032 0.0035 0.0043 0.70% Over-60-Day Delinqu
Slide 8: Residual Value Risk Metrics
Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 RR 24-Month 0.75 0.75 0.76 0.78 0.79 RR 36-Month 0.58 0.59 0.59 0.67 0.73 RESIDUAL VALUE RISK METRICS Lease Terminations Up Unfavorable Contractual Lease-end Value Down Equal Auction Value Down Unfavorable Return Rates Up Equal Drivers Of Residual Value Risk V
Slide 9: Present Debt Ratings - Ford & Ford Credit
PRESENT DEBT RATINGS - FORD & FORD CREDIT Agency Long- Term Outlook Short- Term Fitch BBB+ Negative F-2 Moody's Ford Motor Company Baa1 Negative N/A Ford Credit A3 Negative P-2 Standard & Poor's BBB Negative A-2
Slide 10: Ford Credit Funding Structure
Q1 Equity 14 Term Debt/Other 128 Securitization 38 ABS CP 17 Commercial Paper 0 FORD CREDIT FUNDING STRUCTURE 2001 2002 2003 Equity 13 14 13 Term Debt/Other 131 127 113 Securitization 34 36 32 ABS CP 12 17 18 Commercial Paper 14 3 6 Equity Unsecured Net Commercial Paper * Asset-Backed Commercial Pap
Slide 11: Ford Credit Public Term Funding Plan
Term Debt GlobLSTM $19 $ 2 $0 Non-Dollar Denominated 17 9 3 Retail / MTN / Other 4 3 1 Total Term Debt $40 $14 $4 $3 - 6 $ 7 - 10 Term Public Securitization* 20 17 7 5 - 8 12 - 15 Total Term Funding $60 $31 $11 $8 - 14 $19 - 25 Memo: Cash $3 $7 $12 Overborrowing** 2 5 10 FORD CREDIT PUBLIC TERM FUND
Slide 12: New Funding Sources and Whole-Loan Sale
Canadian retail bond program (Term Bonds In Retail Distribution) launched successfully European retail bond program (FCE Internotes) ready to issue Expansion of Motown Notes ABCP - grew by $1 billion in January Whole-Loan Sale New Funding Sources Settled our third whole-loan sale transaction in the
Slide 13: Ford Credit Liquidity/Flexibility Programs
FORD CREDIT LIQUIDITY/FLEXIBILITY PROGRAMS Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 19.7 1.3 13.2 0.4 7.4 10.2 52.2 Back-Up Liquidity Global Other Bank FCAR Motown Unused Over- Total Lines Lines Lines Lines Conduits borrowing Unsecured CP FCAR Motown Other Lin
Slide 14: Ford Credit Liquidation of Assets/Liabilities
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Owned Receivables and Retained Interests 48 59.1 78.9 107.7 130.2 Financial Statement Debt 15.1 21.2 33 60.5 120.7 FORD CREDIT LIQUIDATION OF ASSETS/LIABILITIES Cumulative Maturities (Billions) As of February 28, 2003 All values are for
Slide 15: Ford Credit Leverage
FORD CREDIT LEVERAGE 2000 2001 2002 March Managed 13.9 14.8 12.8 12.8 Manag 13.9 14.8 12.8 12.8 Owned 11.9 12.2 10.3 10.4 Owned 11.9 12.2 10.3 10.4 * Managed Managed leverage is equal to year-end and slightly below our target range of 13 - 14 times. Ford Credit paid a $1 billion dividend to its pare
Slide 16: Summary
SUMMARY Ford First quarter profits exceeded expectations Revitalization Plan is on track, with first quarter market share up from 2002 and cost performance better than full-year milestone Ford Credit Strong profits in the first quarter, with full-year results expected to be about the same as 2002 Pr
Slide 17: Risk Factors
Statements included herein may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, incl
Slide 18: Appendix
APPENDIX
Slide 19: First Quarter Automotive Cash
FIRST QUARTER AUTOMOTIVE CASH Cash, Marketable Securities, and VEBA Assets March 31, 2003 $26.6 December 31, 2002 25.3 Change in Gross Cash $ 1.3 Operating Related Cash Flows Automotive Pre-Tax Profits $ 0.7 Capital Spending (1.4 ) Depreciation & Amortization 1.4 Changes in Receivables, Inventory, a
Slide 20: Automotive Gross Cash Reconciliation to GAAP
AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.2 $ 7.2 $ 1.9 * $ 8.1 Marketable Securities 17.4 17.3 (0.1 ) 11.4 Total Cash / Market. Sec. $22.6 $24.5 $ 1.8 $19.5 VEBA 2.7 2.2 (0.5 ) 2.0 Gross Cash $25.3 $26.6 $ 1.3 $21.5 * Automotive cash flow as shown in our sector stat
Slide 21: Automotive Operating Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE OPERATING RELATED CASH FLOWS RECONCILIATION TO GAAP Cash Flows from Operating Activities before Securities Trading* $2.3 $ 3.0 Items Included in Operating-Related Cash Flows Capital Transactions with Financial Services Sector $(0.7 ) $ 0.7 Capital Expenditures (1.5 ) (1.4 ) Net Transactio
Slide 22: Reconciliation of Automotive Cost Performance to Cost of Sales and SG&A
RECONCILIATION OF AUTOMOTIVE COST PERFORMANCE TO COST OF SALES AND SELLING, ADMINISTRATIVE, AND OTHER EXPENSE FORD CONFIDENTIAL 2002 First Quarter Cost and Expenses $(32.2 ) 2003 First Quarter B / (W) 2002 Volume, Mix and Exchange-Related Cost Changes $ (1.8 ) Automotive Year-Over-Year Cost Performa
Slide 23: Ford Credit Key Metric Definitions
FORD CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Managed Receivables - includes ow
Slide 24: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $137.4 $137.3 Total Securitized Receivables Outstanding 66.0 73.3 Retained Interest in Securitized Receivables (9.6 ) (18.1 ) Adjustments for Cash and Cash Equivalents (7.6 ) (11.7 ) Adjustments for SFAS 133 (