Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Q1 2015 Earnings Presentation
43 slides from Ford Mtr Co del's earnings presentation, Apr 28, 2015
Slide 1: 1Q 2015 Earnings Review
Go Further 1Q 2015 EARNINGS REVIEW APRIL 28, 2015
Slide 2: Our Focus: One Ford, The Plan
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 Small Europe, Middle East & Africa + & Cash Business SLIDE 1
Slide 3: 1Q 2015 Summary
1Q 2015 SUMMARY 23rd consecutive quarter of Company pre-tax profit Operating-related cash flow positive; cash and liquidity in line with targeted levels Wholesale volume down 1% and Company revenue down 6% from a year ago; reflects effects of major product launches and U.S. dollar strength Global ma
Slide 4: 1Q 2015 Highlights
1Q 2015 HIGHLIGHTS Introduced the all-new Ford GT supercar, Mustang Shelby GT350R, F-150 Raptor, Focus RS, Ranger, and Figo Introduced the all-new Lincoln MKX and revealed the Continental concept Achieved all-new F-150 full launch ramp-up at the Dearborn Truck Plant and completed changeover at the K
Slide 5: 2015 Key Financial Summary
2015 KEY FINANCIAL SUMMARY 1Q B / (W) 2015 2014 Wholesales (000) 1,568 (21) Revenue (Bils) $ 33.9 $ (2.0) Operating results* Pre-tax results (Mils) $ 1,405 $ 24 After-tax results (Mils) 924 (95) Earnings per share 0.23 (0.02) Special items pre-tax (Mils) $ - $ 122 Net income attributable to Ford Aft
Slide 6: 1Q 2015 Pre-Tax Results by Sector
TOTAL COMPANY 1Q 2015 PRE-TAX RESULTS BY SECTOR* (MILS) $1,405 Ford Credit $483 $936 Other (14) $469 Total Automotive Financial Services B / (W) 1Q 2014 $ 24 $ 17 $ 7 B / (W) 4Q 2014 284 223 61 * Excludes special items; see Appendix for detail and reconciliation to GAAP SLIDE 5
Slide 7: 1Q 2015 Key Metrics Compared with 2014
AUTOMOTIVE SECTOR 1Q 2015 KEY METRICS COMPARED WITH 2014* Wholesales Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 1,589 1,568 $33.9 $31.8 3.6% $936 3.4% $919 2014 2015 2014 2015 2014 2015 2014 2015 1Q 2014 2015 Global Industry SAAR (Mils) 86.7 87.5 Global Market Share 6.8% 7.0%
Slide 8: 1Q 2015 Pre-Tax Results Compared with 2014
AUTOMOTIVE SECTOR 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014* (MILS) $17 Material Excl. Commod. $(650) Industry $ 432 Commodities 39 Share (216) Mfg. / Engineering $(205) Warranty / Freight / Other 292 Stocks (574) Spending Related (157) Mix / Other 371 Admin. & Selling (98) $919 $936 Advert. & Sale
Slide 9: 1Q 2015 Pre-Tax Results by Segment
AUTOMOTIVE SECTOR 1Q 2015 PRE-TAX RESULTS BY SEGMENT* (MILS) $1,340 $936 Net Interest $(137) Fair Mkt. Value Adj. / Other (75) $79 $103 $(189) $(185) $(212) North South Middle East Asia Other Total America America Europe & Africa Pacific Automotive B / (W) 1Q 2014 $ 17 $(160) $321 $ 9 $ 25 $(188) $1
Slide 10: Quarterly Pre-Tax Results as Pct of Full Year
TOTAL COMPANY QUARTERLY PRE-TAX RESULTS AS PCT OF FULL YEAR* 2015 Plan Additional AP Historical Capacity F-150 & Edge Capacity Fully Ramped Up 1Q 2Q 3Q 4Q * Illustrative only; excludes special items Timing Of Product And Capacity Actions Drive Atypical Profit Calendarization In 2015 SLIDE 9
Slide 11: Key Metrics Compared with 2014 – North America
AUTOMOTIVE SECTOR – NORTH AMERICA 1Q 2015 KEY METRICS COMPARED WITH 2014 Wholesales Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 717 $20.4 7.3% $1,500 678 $20.0 6.7% $1,340 2014 2015 2014 2015 2014 2015 2014 2015 1Q 2014 2015 NA Industry SAAR (Mils) 19.2 20.6 NA Market Share 14
Slide 12: Pre-Tax Results Compared with 2014 – North America
AUTOMOTIVE SECTOR – NORTH AMERICA 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) Industry $ 341 Share (246) Material Excl. Commodities $(630) Stocks (467) Commodities 31 Mix / Other 430 Warranty / Freight 245 $1,500 $1,340 Pricing $402 Incentives / Other 257 Mfg. / Engineering $(201) Spending Rel
Slide 13: Key Metrics Compared with 2014 – South America
AUTOMOTIVE SECTOR – SOUTH AMERICA 1Q 2015 KEY METRICS COMPARED WITH 2014 Wholesales Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 104 101 $1.9 $1.5 $(189) (12.5)% (27.0)% $(510) 2014 2015 2014 2015 2014 2015 2014 2015 Ka 1Q 2014 2015 SA Industry SAAR (Mils) 5.6 4.5 SA Market Sha
Slide 14: Pre-Tax Results Compared with 2014 – South America
AUTOMOTIVE SECTOR – SOUTH AMERICA 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) Balance Sheet Effects $390 Other (45) Industry $(83) Share 78 Pricing $199 Stocks 7 Incentives / Other (55) $345 Mix / Other (95) $321 $144 $(14) $(41) $(20) $(93) $(189) $(510) Volume / Net Contribution Structural 1
Slide 15: Key Metrics Compared with 2014 – Europe
AUTOMOTIVE SECTOR – EUROPE 1Q 2015 KEY METRICS COMPARED WITH 2014 Wholesales* Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 367 376 $7.8 $6.9 (2.5)% $(194) $(185) (2.7)% 2014 2015 2014 2015 2014 2015 2014 2015 1Q 2014 2015 EUR Industry SAAR (Mils) 18.7 19.2 EcoSport EUR Market S
Slide 16: Pre-Tax Results Compared with 2014 – Europe
AUTOMOTIVE SECTOR – EUROPE 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) Industry $ 133 Mfg. / Engineering $ 71 Share 30 Spending Related 22 Stocks (144) Pricing $ 186 Admin. & Selling (17) Mix / Other 67 Incentives / Other (282) Pension (44) Other (58) $9 $86 $76 $3 $(26) $(34) $(96) $(194) $(1
Slide 17: Key Metrics Compared with 2014 – Middle East & Africa
AUTOMOTIVE SECTOR – MIDDLE EAST & AFRICA 1Q 2015 KEY METRICS COMPARED WITH 2014 Wholesales Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 51 $1.2 7.5% 47 $1.1 $79 4.7% $54 2014 2015 2014 2015 2014 2015 2014 2015 1Q 2014 2015 MEA Industry SAAR (Mils) 4.3 4.3 Ranger MEA Market Shar
Slide 18: Key Metrics Compared with 2014 – Asia Pacific
AUTOMOTIVE SECTOR – ASIA PACIFIC 1Q 2015 KEY METRICS COMPARED WITH 2014 Wholesales* Revenue Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Mils) 366 $2.6 11.1% $291 350 $2.3 4.5% $103 $353** $360** 2014 2015 2014 2015 2014 2015 2014 2015 1Q 2014 2015 AP Industry SAAR (Mils) 38.9 38.9 Escort AP
Slide 19: Pre-Tax Results Compared with 2014 – Asia Pacific
AUTOMOTIVE SECTOR – ASIA PACIFIC 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $291 Industry $ 46 Share (78) Mfg. / Engineering $(65) Stocks 61 Spending Related (39) Mix / Other (29) Admin. & Selling (38) Advert. & Sales Promo. (29) $103 Other 5 $27 $28 $- $(39) $(38) $(188) $(166) Volume / Net
Slide 20: Ford Credit Pre-Tax Results Compared with 2014
FORD CREDIT 1Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $499 $483 $111 $10 $(48) $(38) $(25) $(26) $(16) Volume / Financing Credit Lease 1Q 2014 1Q 2015 Mix Margin Loss Residual Exchange Other B / (W) 4Q 2014 $60 $30 $6 $14 $45 $(12) $(23) Receivables (Bils) Net* $103 $108 Managed** 106 113 *
Slide 21: 2015 Cash
AUTOMOTIVE SECTOR 2015 CASH* 1Q 2015 (Bils) Gross cash at end of period $ 19.5 Gross cash at beginning of period 21.7 Change in gross cash $ (2.2) Automotive pre-tax profits $ 0.9 Capital spending (1.8) Depreciation and tooling amortization 1.1 Changes in working capital 0.8 Other / Timing differenc
Slide 22: 2015 Automotive Financial Resources
AUTOMOTIVE SECTOR 2015 AUTOMOTIVE FINANCIAL RESOURCES Dec. 31, Mar. 31, 2014 2015 (Bils) (Bils) Automotive gross cash* $ 21.7 $ 19.5 Less: Long-term debt $ (11.3) $ (11.4) Debt payable within one year (2.5) (2.0) Total debt $(13.8) $ (13.4) Net cash $ 7.9 $ 6.1 Memo: Liquidity** $ 32.4 $ 30.2 * See
Slide 23: 2015 Business Environment Overview
2015 BUSINESS ENVIRONMENT OVERVIEW Global Global economy to expand in the 3% range led by the U.S., China -- although at levels lower than years past -- and improvements in Europe; global industry sales of 88 million - 92 million units Americas U.S. economic growth in the 3% range, with improving jo
Slide 24: 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 25: The Plan
THE PLAN Large Americas Asia Pacific Medium Europe, Middle East & Africa + Small F-150 Ameri Large Asia cas Pacific Europe, Mediu Middle Small m East & Africa SLIDE 24
Slide 26: 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 27: Q&A
Q&A
Slide 28: Appendix
APPENDIX
Slide 29: 1Q 2015 Earnings – Appendix Index
1Q 2015 EARNINGS – APPENDIX INDEX Appendix No. • Calculation of Earnings Per Share 1 • Income from Continuing Operations 2 • Special Items 3 • Sector Income Statement 4 Automotive Sector • Production Volumes 5 • Dealer Stocks 6 • Market Share 7 • Automotive Debt 8 Reconciliation to GAAP (Automotive
Slide 30: 2015 Calculation of Earnings Per Share
2015 CALCULATION OF EARNINGS PER SHARE 1Q After-Tax Operating Results Net Income Excluding Attributable Special to Ford Items* Diluted After-Tax Results (Mils) $ 924 $ 924 Basic and Diluted Shares (Mils) Basic shares (Average shares outstanding) 3,963 3,963 Net dilutive options and unvested RSUs 38
Slide 31: 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 32: 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 33: 2015 Sector Income Statement
2015 SECTOR INCOME STATEMENT For the periods ended March 31, 1Q 2014 2015 (Mils) (Mils) AUTOMOTIVE Revenues $ 33,876 $ 31,800 Costs and Expenses Cost of sales 31,021 28,702 Selling, administrative, and other expenses 2,476 2,616 Total costs and expenses 33,497 31,318 Interest expense 208 165 Interes
Slide 34: Production Volumes
AUTOMOTIVE SECTOR PRODUCTION VOLUMES 2015 1Q 2Q O / (U) O / (U) Units 2014 Units 2014 (000) (000) (000) (000) North America 723 (51) 815 13 South America 102 8 95 (8) Europe 436 54 410 8 Middle East & Africa 21 4 25 5 Asia Pacific 373 27 395 30 Total 1,655 42 1,740 48 APPENDIX 5
Slide 35: 1Q 2015 Dealer Stocks
SELECTED MARKETS 1Q 2015 DEALER STOCKS 1Q U.S. Brazil Europe 20 MEA China (000) (000) (000) (000) (000) 2015 March 31 619 35 181 73 155 December 31 611 31 180 74 132 Stock Change H / (L) 8 4 1 (1) 23 2014 March 31 683 35 160 84 98 December 31 636 33 127 81 100 Stock Change H / (L) 47 2 33 3 (2) Year
Slide 36: Market Share
AUTOMOTIVE SECTOR MARKET SHARE 1Q 2014 2015 B / (W) (Pct) (Pct) (Pts) Total Share of Total Industry North America Total 14.6 14.0 (0.6) U.S. 15.3 14.7 (0.6) South America Total 8.6 9.7 1.1 Brazil 9.2 10.5 1.3 Europe Total 7.2 7.8 0.6 Europe 20 8.0 8.2 0.2 Middle East & Africa Total 4.3 4.3 - Asia Pa
Slide 37: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, Mar. 31, 2014 2015 (Bils) (Bils) Public unsecured debt $ 6.6 $ 6.5 U.S. Department of Energy 4.4 4.3 Other debt (including International) 2.8 2.6 Total Automotive debt $ 13.8 $ 13.4 Memo: Automotive debt payable within one year $ 2.5 $ 2.0 Figo APPENDIX 8
Slide 38: 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 39: 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 40: 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 41: 2015 Business Unit Key Metrics
2015 BUSINESS UNIT KEY METRICS Memo: 2014 Full Year 2015 Full Year 2015 Results Plan Outlook 1Q Automotive (Mils) North America $ 6,898 Higher* On Track $1,340 - Operating Margin 8.4% 8 - 9% 8.5 - 9.5% 6.7% South America (1,162) Substantially Improved* Improved* (189) Europe (1,062) Improved* On Tra
Slide 42: China Unconsolidated Affiliates – Asia Pacific
AUTOMOTIVE SECTOR – ASIA PACIFIC CHINA UNCONSOLIDATED AFFILIATES Memo: 1Q Full Year 2014 2015 2014 China Unconsolidated Affiliates Wholesales (000) 262 289 1,077 Ford Equity Income (Mils)* $ 353 $ 360 $ 1,280 * Ford equity share of China joint ventures net income Edge APPENDIX 13
Slide 43: Definitions and Calculations
DEFINITIONS AND CALCULATIONS Wholesales and Revenue • Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships, units manufactured by Ford that are sold to other manufacturers, units distributed by Ford