Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (October 2003)
26 slides from Ford Mtr Co Del's debt investor presentation, Oct 16, 2003
Slide 1: Third Quarter 2003 Fixed Income Presentation
THIRD QUARTER 2003 FIXED INCOME PRESENTATION October 16, 2003
Slide 2: Third Quarter Results
Earnings Per Share Net Income $(0.01 ) $0.17 $0.68 $1.15 Continuing Opns. - Excl. Special Items 0.15 -- 0.83 -- Net Income (Mils.) $(25 ) $301 $1,288 $2,138 Continuing Opns. - Incl. Special Items 237 481 1,561 1,266 Pre-Tax Profit (Mils.) Incl. Special Items $423 $469 $2,478 $1,548 Excl. Special Ite
Slide 3: 2003 Full Year Milestones
2003 FULL YEAR MILESTONES Planning Assumptions Industry Volume -- U.S. 16.5 million units 17.0 16.9 -- Europe 17.0 million units 16.8 16.8 Net Pricing* -- U.S. (Ford / LM) Zero Less than zero (0.9)% -- Europe (Ford) 1% (1) - (2)% (1.9)% Physicals Market Share Improve in all regions Mixed Mixed Quali
Slide 4: Ford Credit Results and Metrics
FORD CREDIT RESULTS AND METRICS Receivables (Bils.) On-Balance Sheet $136 $132 * Off-Balance Sheet 66 49 Managed $202 $181 Credit Losses (Mils.) On-Balance Sheet $591 $466 Managed 706 679 Loss-to-Receivables Ratio On-Balance Sheet 1.71 % 1.52% Managed - U.S. Retail and Lease 1.51 1.86 - Worldwide To
Slide 5: Credit Loss Metrics
Q3 Q4 Q1 Q2 Q3 Worldwide Managed 0.0139 0.0156 0.0142 0.0135 0.0147 Worldwide Owned 0.0171 0.0192 0.0161 0.015 0.0152 Managed Reserves as Pct. Of EOP Receivables 0.0177 0.019 0.0195 Q3 Q4 Q1 Q2 Q3 Ford Credit U.S. Managed LTR 0.0151 0.0187 0.0184 0.0172 0.0186 Ford Credit U.S. Owned 0.0188 0.0235 0.
Slide 6: Credit Loss Drivers - Ford Credit U.S. Retail & Lease
Q3 Q4 Q1 Q2 Q3 Worldwide Owned 50 53 51 44 50 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 NON-BANKRUPT 0.0048 0.0048 0.0043 0.0029 0.0038 0.0035 0.0043 0.0035 0.0039 Over-60-Day Delinquencies Q3 Q4 Q1 Q2 Repossessions (000) Q3 Q3 Q4 Q1 Q2 Q3 Worldwide Owned 7000
Slide 7: Residual Loss Metrics
Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 RR 24-Month 0.76 0.75 0.79 0.76 0.72 RR 36-Month 0.59 0.64 0.73 0.72 0.69 RESIDUAL LOSS METRICS Auction values in the Third Quarter were up $800 and $300 per unit from the Second Quarter, respectively, on 24-month and 36-month contracts and were better than ou
Slide 8: 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 Baa1 Negative N/A Ford Credit A3 Negative P-2 Standard & Poor's BBB Negative A-2 SLIDE 7
Slide 9: Ford Credit Had a Successful Funding Quarter
FORD CREDIT HAD A SUCCESSFUL FUNDING QUARTER Strong demand for unsecured debt $3 billion U.S. Institutional offering &128;2.5 billion in two transactions $1.2 billion of continuously-offered retail bonds C$500 million transaction in Canada Asset-backed demand continues to be strong $2.5 billion whol
Slide 10: Ford Credit Funding Structure
2003 Equity 13 Term Debt/Other 126 Securitization 32 ABS CP 16 Commercial Paper 9 Overborr -15 FORD CREDIT FUNDING STRUCTURE 2001 2002 Q3 Equity 13 14 13 Term Debt/Other 131 125 130 Securitization 34 36 32 ABS CP 12 17 15 Commercial Paper 16 9 9 Overborrow -2 -5 -18 Equity Unsecured Commercial Paper
Slide 11: Ford Credit Public Term Funding Plan
Term Debt GlobLSTM $ 2 $ 3 Non-Dollar Denominated 9 9 Retail / MTN / Other 3 3 Total Term Debt $14 $15 $ 15 - 17 $ 10 - 15 Term Public Securitization* 17 9 10 - 13 10 - 15 Total Term Funding $31 $24 $25 - 30 $20 - 30 FORD CREDIT PUBLIC TERM FUNDING PLAN 2002 Actual (Bils.) Sept. 30 (Bils.) Transacti
Slide 12: Ford Credit Liquidity Programs
Unsecured CP FCAR Motown Other Lines Conduits Total Back-up liquidity 8.9 1 9.2 6 25.1 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 14.3 1.1 17.2 0.4 8.2 18.3 55 FORD CREDIT LIQUIDITY PROGRAMS Back-Up Liquidity Global Other Bank FCAR Motown Unused Over- Total Line
Slide 13: Ford Credit Liquidation of Assets / Liabilities
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Owned Receivables and Retained Interests 41 52 72 99 122 Financial Statement Debt 3 12 27 54 104 FORD CREDIT LIQUIDATION OF ASSETS / LIABILITIES Cumulative Maturities - As of August 31, 2003 -- (Billions) All values are for the U.S., Eur
Slide 14: Ford Credit Leverage
FORD CREDIT LEVERAGE 2000 2001 2002 Sept. Managed 13.9 14.8 12.8 12.7 Manag 13.9 14.8 12.8 12.7 Owned 11.9 12.2 10.3 12 Owned 11.9 12.2 10.3 12 * Managed Managed leverage is about equal to year-end and slightly below our target range of 13 - 14. Ford Credit paid a $1 billion dividend in the Third Qu
Slide 15: Summary
SUMMARY Ford Full year automotive PBT breakeven or slightly positive, excluding special items Increased Full-Year earnings guidance from continuing operations to $0.95 to $1.05 per share, excluding special items Cash and liquidity remain strong Ford Credit Record profits in the Third Quarter Continu
Slide 16: 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 17: Definition of Automotive Segments
DEFINITION OF AUTOMOTIVE SEGMENTS North America International Europe South America* Asia Pacific Premier Automotive Group (P.A.G.) Other Other Automotive Ford, Lincoln, and Mercury brands in U.S., Canada, and Mexico Ford Brand Ford Brand Ford Brand Jaguar, Land Rover, Volvo, and Aston Martin worldwi
Slide 18: Effect of Adoption of FIN46 on Third Quarter Automotive Results
Consolidation of Joint Ventures $ 17 $ 0 Deconsolidation of Trust Preferred (95 ) 0 Securities Cumulative Effect of Change in N/A (264 ) Accounting Principle Total Effect of FIN46 Adoption $(78 ) $ (264 ) Memo: EPS Impact of Change in Accounting Principle $(0.14 ) Effect on Other Measures: Cash (Bil
Slide 19: Income from Continuing Operations Excluding Special Items Compared to Net Income
INCOME FROM CONTINUING OPERATIONS EXCLUDING SPECIAL ITEMS COMPARED TO NET INCOME Memo: Auto. Pre-Tax Profit (Mils.) Earnings Per Share Memo: Auto. Pre-Tax Profit (Mils.) Third Quarter Year to Date Earnings Per Share Income from Continuing Operations Excluding Special Items $0.15 $(553 ) $0.83 $109 S
Slide 20: Third Quarter Automotive Cash
THIRD QUARTER AUTOMOTIVE CASH* Cash, Marketable and Loaned Securities, and VEBA Assets September 30, 2003 $26.9 $26.9 June 30, 2003 / December 31, 2002 28.7 25.3 Change in Gross Cash $(1.8 ) $ 1.6 Operating Related Cash Flows Automotive Pre-Tax Profits $(0.6 ) $ 0.1 Capital Spending (2.2 ) (5.6 ) De
Slide 21: Automotive Gross Cash Reconciliation to GAAP
AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.2 $ 6.8 $ 1.6 * $ 8.7 Marketable Securities 17.4 12.2 (5.2 ) 16.1 Loaned Securities 0 7.0 7.0 0 Total Cash / Market. Sec. $22.6 $26.0 $ 3.4 $24.8 VEBA 2.7 0.9 (1.8 ) 0.9 Gross Cash $25.3 $26.9 $ 1.6 $25.7 * Automotive cash fl
Slide 22: Automotive Operating Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE OPERATING RELATED CASH FLOWS RECONCILIATION TO GAAP Cash Flows from Operating Activities before Securities $ 5.7 $(0.9 ) $ 4.9 Trading* Items Included in Operating-Related Cash Flows Capital Transactions with Financial Services Sector $ 1.7 $1.2 $ 2.8 Capital Expenditures 3.4 (2.2 ) (5.6
Slide 23: Reconciliation of Net Pricing to Change in Automotive Sales
RECONCILIATION OF NET PRICING TO CHANGE IN AUTOMOTIVE SALES Automotive Sales 2003 $17,876 $22,830 $4,670 $14,920 $60,789 $21,780 $14,889 $13,377 2002 21,258 21,322 4,378 12,839 65,818 20,915 13,397 12,168 2003 B / (W) $ (3,382 ) $ 1,508 $ 292 $ 2,081 $ (5,029 ) $ 865 $ 1,492 $ 1,209 Than 2002 Memo:
Slide 24: 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. Information about the impact of o
Slide 25: Ford Credit Ratio Definitions
FORD CREDIT RATIO 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: Leverage: Total Debt - - Financial Sta
Slide 26: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $140.3 $149.6 Total Securitized Receivables Outstanding 65.8 48.8 Retained Interest in Securitized Receivables (9.7) (10.2) Adjustments for Cash and Cash Equivalents (7.1) (20.3) Adjustments for SFAS 133 (6.0)
Ford Motor — Debt Investor Presentation (October 2003) on 6ix