Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — J.P. Morgan Auto Conference 2018
26 slides from Ford Mtr Co Del's conference presentation, Aug 8, 2018
Slide 1: J.P. Morgan Conference
J.P. Morgan Conference Hau Thai-Tang Executive Vice President Product Development and Purchasing, Ford Motor Company
Slide 2: Smart Choices for Value Creation
Smart Choices for Value Creation Our Belief Freedom of movement drives human progress. Our To become the world’s most trusted mobility company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan Winning Propulsion Autonomous Mobility Portfolio
Slide 3: Focusing Capital On High-Margin, High-Growth Businesses
Focusing Capital On High-Margin, High-Growth Businesses HIGHLY ACCRETIVE ROIC (%) + Circle size = Actual 2017 +/- EBIT (Bils) 50% 150% of Company 40% EBIT 30% High Performing $14.5B 20% 10% Profitable $1B - + EBIT Expense For Margin (15)% (10)% 10% 20% Future Growth (10)% (20)% Low Performing $(4)B
Slide 4: Shifting Spending To More Profitable Vehicles
Shifting Spending To More Profitable Vehicles 60% 39% 37% 29% 24% 11% 2015 Plan 2018 Plan (2016 - 2020) (2019 - 2023) Utilities Trucks and Commercial Vehicles Cars 4
Slide 5: Listening To Our Customers
Listening To Our Customers CONNECTIVITY EFFICIENCY UTILITY AFFORDABILITY 5
Slide 6: Leveraging Ford’s Strengths
Leveraging Ford’s Strengths WORK ADVENTURE HUMAN PERFORMANCE CONNECTION 6
Slide 7: Freshest Lineup In U.S. By 2020 Including New Silhouettes
Freshest Lineup In U.S. By 2020 Including New Silhouettes AV E R AG E AG E O F P O R T F O L I O FORD SHIFTING PORTFOLIO (YEARS) 100% COMMERCIAL VEHICLES 5.7 5.3 75% PICKUP TRUCKS 4.7 4.1 3.3 50% SUVs 25% CARS COMPETITOR COMPETITOR Competitor Competitor A BB a 0% 2018 2019 2020 2020 2020 7
Slide 8: Improving Operating Leverage
Improving Operating Leverage Engineering / Product Development $7B Material Cost $12B $25.5B Cost & Efficiencies Identified Marketing & Sales $5B IT Manufacturing $0.2B $1.3B Cumulative Benefit Over 2018 - 2022 Plan Period Versus Original Planned Spend 8
Slide 9: Expected PD Fitness Impact Over 5 Year Plan Period
Expected PD Fitness Impact Over 5 Year Plan Period ~$7B 20%+ ~$1B ~$12B Engineering / Less Time Manufacturing Improved PD Cost From Sketch Cost Material Cost Reduction To Showroom Reduction 9
Slide 10: Shaping The Vision For Product Development Fitness
Shaping The Vision For Product Development Fitness Improve engineering Hardware at efficiency by 20 - 40% Product Speed of Co-Creation Software Vehicle program Increase product Collaborative product Best-in-class speed output innovation to market Customer Needs Faster time to market Modular Architec
Slide 11: Finding The Balance
Finding The Balance Customer Flexible Differentiation Architecture and Diversity Pre-ONE FORD with Modules ONE FORD Commonality 11
Slide 12: Building And Evolving From One Ford
Building And Evolving From One Ford Flexible Platforms Architectures With Modules Portfolio Requirements 9 5 Engineering & Investment Efficiency ✓ ✓✓ Global / Regional / Local Market Scale ✓ ✓✓✓ Customer Wants & Willingness To Pay ✓ ✓✓ Material Cost Savings -- ✓ Supply Base Operating Efficiency -- ✓
Slide 13: Implementing Five Flexible Architectures
Implementing Five Flexible Architectures Customer Architecture Differentiators Flexible Architectures Consumer ICE*: RWD / AWD Experience 1 Body-On-Frame Energy ICE*: FWD / AWD Regulatory 2 Requirements Unibody ICE*: Commercial 3 Propulsion / Drive Van Unibody ICE*: RWD / AWD 4 Unibody BEV: All driv
Slide 14: Covering A Broad Range Of Products With Flexible Architectures
Covering A Broad Range Of Products With Flexible Architectures MSRP $ $$ $$$ $$$$ ICE – RWD / AWD 1 Body-On-Frame Flexible Architectures ICE – FWD / AWD 2 Unibody ICE – Commercial 3 Van Unibody ICE – RWD / AWD 4 Unibody 5 BEV – All Drive Types Unibody JVs / Alliances 14
Slide 15: Innovating Through Strategic Alliances
Innovating Through Strategic Alliances 15
Slide 16: Improving Efficiency And Effectiveness Through Module Reuse
Improving Efficiency And Effectiveness Through Module Reuse Flexible architectures RWD / AWD Comm. Van RWD / AWD FWD / AWD Unibody BEV Body On Frame Unibody Unibody Focus Escape Transit Connect Current Future Architecture common modules, e.g. cross-car beam, suspension Cross-architecture common modu
Slide 17: Transitioning To Modules Expands The Opportunities For Commonality
Transitioning To Modules Expands The Opportunities For Commonality 17
Slide 18: Increasing Commonality And Value With Modules
Increasing Commonality And Value With Modules Program specific, ~30% differentiating parts Architecture-specific ~30% modules Up to 70% of ~70% vehicle value managed with modularity Cross-architecture ~40% common modules 18
Slide 19: NextGen In-Vehicle Experience
NextGen In-Vehicle Experience 19
Slide 20: Reducing Material Cost Impact
Reducing Material Cost Complexity reduction Impact Reduction in product configurations and part complexity Market alignment Market offering rationalized based on customer and competitor insight ~$12B in plan period Benchmarking for most efficient design Benchmark informed design sourced at best cost
Slide 21: Winning Portfolio
Winning Portfolio 21
Slide 22: Smart Choices for Value Creation
Smart Choices for Value Creation Our Belief Freedom of movement drives human progress. Our To become the world’s most trusted mobility company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan Winning Propulsion Autonomous Mobility Portfolio
Slide 23: Expected PD Fitness Impact Over 5 Year Plan Period
Expected PD Fitness Impact Over 5 Year Plan Period ~$7B 20%+ ~$1B ~$12B Engineering / Less Time Manufacturing Improved PD Cost From Sketch Cost Material Cost Reduction To Showroom Reduction 23
Slide 24: Smart Choices for Value Creation
Smart Choices for Value Creation Our Belief Freedom of movement drives human progress. Our To become the world’s most trusted mobility company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan Winning Propulsion Autonomous Mobility Portfolio
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Slide 26: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements 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 assumptio
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