Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (January 2015)
31 slides from Ford Mtr Co del's debt investor presentation, Jan 29, 2015
Slide 1: 2014 Fourth Quarter and Full Year Fixed Income Presentation and 2015 Outlook
SECRET 2014 FOURTH QUARTER AND FULL YEAR FIXED INCOME PRESENTATION AND 2015 OUTLOOK JANUARY 29, 2015 (PRELIMINARY RESULTS)
Slide 2: Ford Credit 2014 Operating Highlights
SECRET FORD CREDIT 2014 OPERATING HIGHLIGHTS* • Another strong performance with Full Year pre-tax profit of $1.9 billion and Fourth Quarter pre-tax profit of $423 million, the highest since 2011 • Full Year net income of $1.7 billion, Fourth Quarter of $411 million • Managed receivables of $113 bill
Slide 3: 2014 Fourth Quarter Pre-Tax Results Compared with 2013
SECRET FORD CREDIT 2014 FOURTH QUARTER PRE-TAX RESULTS COMPARED WITH 2013 Millions $55 $423 $368 $70 $54 $19 $(17) $(71) 2013 2014 Volume Financing Credit Lease Other Memo: 4Q 4Q Margin Loss Residual B / (W) 2014 3Q $(75) $6 $(69) $(25) $(11) $24 Receivables (Bils.) Net* $100 $108 Managed** 103 113
Slide 4: 2014 Full Year Pre-Tax Results Compared with 2013
SECRET FORD CREDIT 2014 FULL YEAR PRE-TAX RESULTS COMPARED WITH 2013 Millions $98 $1,854 $1,756 $357 $8 $(87) $(51) $(129) 2013 2014 Volume Financing Credit Lease Other Memo: Margin Loss Residual Receivables (Bils.) Net* $100 $108 Managed** 103 113 * Net receivables reflect net finance receivables a
Slide 5: Worldwide Credit Loss Metrics
SECRET FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils.) LTR (%) $76 0.27% $52 $52 0.20% 0.20% $48 0.17% $33 0.12% 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 2013 2014 2013 2014 Memo: Retail & Lease $51 $55 $31 $48 $77 Credit Loss Reserve (Mils.) and Reserve as a Pct. of EOP Managed Receivables Reser
Slide 6: U.S. Retail and Lease Credit Loss Drivers
SECRET FORD CREDIT U.S. RETAIL AND LEASE CREDIT LOSS DRIVERS Over-60-Day Delinquencies* Repossessions (000) Repo. Ratio 0.16% 0.16% 1.14% 1.12% 0.15% 0.14% 1.07% 1.06% 0.12% 0.98% 8 7 7 7 6 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q Memo: 2013 2014 2013 2014 New Bankruptcy Filings (000) 4 3 4 4 3 Severity Charge
Slide 7: U.S. Lease Residual Performance
SECRET FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 4Q 2014 Mix) 24-Month 24-Month 36-Month 39-Month / Other $20,395 60 $20,000 $19,840 $19,465 $19,295 50 44 40 $18,980 35 $18,805 34 30 24 $18,225 $18,035 $17,770 36-Month 21 20 12 13 12 8 9 5 8 7 8 6 4Q 1Q
Slide 8: Funding Highlights
SECRET FORD CREDIT FUNDING HIGHLIGHTS • Completed our Full Year funding plan, highlights include: – Issued $28 billion of public term funding in the U.S., Canada, Europe, Mexico, Brazil, and China – Launched several new funding platforms, increasing diversification Retail revolving ABS (FordREV) and
Slide 9: Public Term Funding Plan
SECRET FORD CREDIT PUBLIC TERM FUNDING PLAN 2012 2013 2014 2015 Actual Actual Actual Forecast (Bils.) (Bils.) (Bils.) (Bils.) Unsecured $ 9 $ 11 $ 13 $ 12 – 15 Securitizations* 14 14 15 13 – 16 Total $ 23 $ 25 $ 28 $ 25 – 31 * Includes Rule 144A offerings SLIDE 8
Slide 10: Funding Structure
SECRET FORD CREDIT FUNDING STRUCTURE Funding of Managed Receivables (Bils.) $123-128 $113 ~$3 ~$5 $103 $2 $6 $92 $5 $5 Commercial Paper $46-48 $8 Ford Interest Advantage* $5 $43 $43 Term Asset-Backed Securities** $37 $59-62 $55 Term Debt (incl Bank Borrowings) $45 $39 Other $5 $5 ~$7 $4 Equity $10 $
Slide 11: Liquidity Programs
SECRET FORD CREDIT LIQUIDITY PROGRAMS 2013 2014 Dec. 31 Sep 30 Dec. 31 (Bils.) (Bils.) (Bils.) Liquidity Sources Cash * $ 10.8 $ 10.6 [ $ 8.9 ] Committed ABS lines ** 29.4 33.0 [ 33.7 ] FCAR Bank Lines 3.5 - - Committed Capacity FCE / Other unsecured credit facilities 1.6 1.9 [ 1.6 ] $37.3 billion F
Slide 12: 2014 Automotive Financial Resources
SECRET AUTOMOTIVE SECTOR 2014 AUTOMOTIVE FINANCIAL RESOURCES Dec. 31, 2014 2013 2014 B / (W) Dec. 31 Sep. 30 Dec. 31 2013 (Bils.) (Bils.) (Bils.) (Bils.) Automotive gross cash* $ 24.8 $ 22.8 $ 21.7 $ (3.1) Less: Long-term debt $ (14.4) $ (12.2) $ (11.3) $ 3.1 Debt payable within one year (1.3) (2.7)
Slide 13: 2014 Pension Update
SECRET TOTAL COMPANY 2014 PENSION UPDATE Results Demonstrate Effectiveness Of De-Risking Strategy SLIDE 12
Slide 14: 2014 Summary
SECRET 2014 SUMMARY Ford* • Fourth Quarter was the 22nd consecutive quarter of Company pre-tax profit; Automotive operating-related cash flow positive; liquidity strong • In the Full Year, 5th consecutive year of Company pre-tax profit and positive Automotive operating-related cash flow; results con
Slide 15: Risk Factors
SECRET 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 i
Slide 16: Appendix
APPENDIX
Slide 17: Fixed Income Appendix Index
SECRET 2014 FOURTH QUARTER AND FULL YEAR FIXED INCOME -- APPENDIX INDEX Slide Total Company • Income from Continuing Operations 1 • Debt Ratings 2 Automotive Sector • Gross Cash Reconciliation to GAAP 3 • Automotive Debt 4 Ford Credit • Operating Highlights 5 • Net Finance Receivables and Operating
Slide 18: 2014 Income from Continuing Operations
SECRET TOTAL COMPANY 2014 INCOME FROM CONTINUING OPERATIONS APPENDIX 1
Slide 19: Debt Ratings
SECRET TOTAL COMPANY DEBT RATINGS S&P Moody's Fitch DBRS Issuer Ratings Ford Motor BBB- N/A BBB- BBB (low) Ford Credit BBB- N/A BBB- BBB (low) FCE Bank plc BBB N/A BBB- NR Long-Term Senior Unsecured Ford Motor BBB- Baa3 BBB- BBB (low) Ford Credit BBB- Baa3 BBB- BBB (low) FCE Bank plc BBB Baa3 BBB- N
Slide 20: Gross Cash Reconciliation to GAAP
SECRET AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2013 2014 Dec. 31 Sep. 30 Dec. 31 (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 5.0 $ 6.0 $ 4.6 Marketable securities 20.1 16.9 17.1 Total cash and marketable securities (GAAP) $ 25.1 $ 22.9 $ 21.7 Securities in transit* (0.3) (0.1) -
Slide 21: Automotive Debt
SECRET AUTOMOTIVE SECTOR AUTOMOTIVE DEBT 2013 2014 Dec. 31 Sep. 30 Dec. 31 (Bils.) (Bils.) (Bils.) Public unsecured debt $ 6.7 $ 6.7 $ 6.6 Convertible notes 0.8 0.8 - U.S. Department of Energy 5.0 4.6 4.4 Other debt (including International) 3.2 2.8 2.8 Total Automotive debt $ 15.7 $ 14.9 $ 13.8 Mem
Slide 22: Operating Highlights
SECRET FORD CREDIT OPERATING HIGHLIGHTS Fourth Quarter Full Year 2013 2014 2013 2014 Contract Placement Volume -- New and used retail / lease (000) North America Segment United States 288 285 1,122 1,231 Canada 33 39 140 149 Total North America Segment 321 324 1,262 1,380 International Segment Europ
Slide 23: Net Finance Receivables and Operating Leases
SECRET FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2013 Dec. 31, 2014 Receivables* (Bils.) (Bils.) Net Receivables Finance Receivables Finance receivables – North America Segment Consumer retail financing $ 40.9 $ 44.1 Non-Consumer Dealer financing** 22.1 22.5 Other 1.0 1.0 Tot
Slide 24: Reconciliation of Managed Leverage to Financial Statement Leverage
SECRET FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE 2013 2014 Dec. 31 Dec. 31 (Bils.) (Bils.) Leverage Calculation Total Debt* $ 98.7 $ 105.0 Adjustments for Cash, Cash Equivalents, and Marketable Securities** (10.8) (8.9) Adjustments for Derivative Accounting*** (0
Slide 25: Historical Credit Loss Metrics
SECRET FORD CREDIT HISTORICAL CREDIT LOSS METRICS Worldwide Charge-offs (Mils.) and LTR (%) 0.47% LTR 0.24% 0.18% 0.19% Charge-offs 0.16% $415 $201 $136 $176 $209 2010 2011 2012 2013 2014 Worldwide Credit Loss Reserve (Mils.) and Reserves as a Pct. of EOP Managed Receivables Reserves as % of EOP 1.0
Slide 26: Historical U.S. Retail and Lease Credit Loss Drivers
SECRET FORD CREDIT HISTORICAL U.S. RETAIL AND LEASE CREDIT LOSS DRIVERS Average Placement FICO Score Over-60-Day Delinquencies* 730 738 737 738 741 0.15% 0.15% 0.15% 0.14% 0.14% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Memo: New Bankruptcy Filings (000) 42 31 23 17 15 Repossessions (000) Ch
Slide 27: Historical U.S. Lease Residual Performance
SECRET FORD CREDIT HISTORICAL U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At Incurred Mix) 24-Month 24-Month 36-Month 39-Month / Other $19,740 $19,875 189 $18,905 $19,000 $18,765 159 $17,865 39 114 $17,535 $17,385 114 $16,540 36-Month 86 $15,800 71 4 71 62 44 33 46 49 2
Slide 28: Liquidity Profile Balance Sheet
SECRET FORD CREDIT LIQUIDITY PROFILE BALANCE SHEET Cumulative Maturities -- As of December 31, 2014 (Bils.) Assets* $122 Debt** $113 $105 $97 $82 $72 $68 *** $49 2015 2016 2017 2018 & Beyond Memo: Unsecured long-term debt maturities (Bils.) $9.1 $10.4 $11.1 $21.0 * Includes finance receivables net o
Slide 29: Percent of Net Loans & Advances to Customers by Market
SECRET FCE BANK PLC PERCENT OF NET LOANS & ADVANCES TO CUSTOMERS BY MARKET December 31, 2014 Compared With December 31, 2013* U.K. Germany Italy France Spain Other WWTF** 3.6% Switzerland 3.1% 39% Belgium 2.0% Netherlands 1.7% 36% Austria 1.4% All Other 3.7% 29% 27% 17% 16% 8% 8% 7% 7% 4% 3% 2013 20
Slide 30: 2014 Fourth Quarter Credit Loss Ratio Compared with 2013
SECRET FCE BANK PLC 2014 FOURTH QUARTER CREDIT LOSS RATIO COMPARED WITH 2013 Net Credit Losses As Percentage Of Average Net Loans And Advances To Customers Total FCE U.K. Germany Italy France Spain* 4.52 % 0.68 % 0.57 % 0.40 % 0.30 % 0.15 % 0.08 % 0.08 % 0.08 % 0.11 % (0.03)% (0.30)% 2013 2014 2013
Slide 31: Public Term Funding Plan
SECRET FCE BANK PLC PUBLIC TERM FUNDING PLAN 2012 2013 2014 2015 Actual Actual Actual Forecast (Bils.) (Bils.) (Bils.) (Bils.) Unsecured £ 0.7 £ 1.6 £ 1.9 £ 1.9 – 2.4 Securitizations 0.4 0.4 0.8 0.6 – 0.9 Total £ 1.1 £ 2.0 £ 2.7 £ 2.5 – 3.3 APPENDIX 14
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