Ford Mtr Co Del · NYSE:F

Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (January 2004)

28 slides from Ford Mtr Co Del's debt investor presentation, Jan 22, 2004

  1. Slide 1: Fourth Quarter 2003 Fixed Income Presentation

    FOURTH QUARTER 2003 FIXED INCOME PRESENTATION January 22, 2004

  2. Slide 2: Fourth Quarter and Full Year Results

    Earnings Per Share Net Income $(0.43 ) $(0.36 ) $0.27 $0.82 Continuing Ops. - Excl. Special Items* 0.31 0.20 1.14 0.58 Net Income (Mils.) $(793 ) $(663 ) $495 $1,475 Pre-Tax Profit (Mils.) Incl. Special Items $(1,106 ) $(1,129 ) $1,370 $419 Excl. Special Items 899 546 3,431 1,580 Revenue (Bils.) Tot

  3. Slide 3: 2004 Planning Assumptions and Operational Metrics

    2004 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Planning Assumptions Industry Volume -- U.S. 17.0 million units -- Europe 16.9 million units Industry Net Pricing -- U.S. Down slightly -- Europe Down slightly Operational Metrics Quality Improve in all regions Market Share Flat or improve in all reg

  4. Slide 4: 2004 Financial Milestones

    2004 FINANCIAL MILESTONES Pre-Tax Income Automotive Americas North America $ 1.5 - 1.7 South America (0.1) - 0 International Europe (0.2) - (0.1 ) Asia-Pacific 0 - 0.1 P.A.G. 0.5 - 0.6 Total Automotive $ 0.9 - $1.1 Financial Services 2.6 - 2.7 Total Company $ 3.5 - $3.8 * Excluding special items Mil

  5. Slide 5: Ford Credit Results and Metrics - Full Year

    FORD CREDIT RESULTS AND METRICS - FULL YEAR Receivables (Bils.) On-Balance Sheet $126 $132 Securitized Off-Balance Sheet 71 50 Managed $197 $182 Credit Losses (Mils.) On-Balance Sheet $2,362 $2,044 Managed 2,816 2,813 Loss-to-Receivables Ratio On-Balance Sheet 1.72 % 1.67 % Managed - U.S. Retail and

  6. Slide 6: Credit Loss Metrics

    Q4 Q1 Q2 Q3 Q4 Worldwide Managed 0.0156 0.0142 0.0132 0.0145 0.0185 Worldwide Owned 0.0192 0.0161 0.015 0.0152 0.0204 Managed Reserves as Pct. Of EOP Receivables 0.019 0.0195 Q4 Q1 Q2 Q3 Q4 Ford Credit U.S. Managed LTR 0.0187 0.0185 0.0172 0.0186 0.0215 Ford Credit U.S. Owned 0.0235 0.021 0.0196 0.0

  7. Slide 7: Credit Loss Drivers - Ford Credit U.S. Retail & Lease

    Q4 Q1 Q2 Q3 Q4 Worldwide Owned 53 51 45 51 53 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE* Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NON-BANKRUPT 0.0048 0.0043 0.0029 0.0038 0.0035 0.0042 0.0033 0.0038 0.0027 Over-60-Day Delinquencies Repossessions (000) Q4 Q1 Q2 Q3 Q4 Worldwide Owned 7500 7500 7500 7200

  8. Slide 8: Residual Loss Metrics

    Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 RR 24-Month 0.75 0.79 0.76 0.72 0.68 RR 36-Month 0.64 0.73 0.72 0.69 0.66 RESIDUAL LOSS METRICS Auction values in the Fourth Quarter were up $850 for 24-month leases and $50 for 36- month leases from a year ago, and were better than our expectation. They were

  9. Slide 9: Ford Credit Is a Vital Component of Ford Motor Company

    FORD CREDIT IS A VITAL COMPONENT OF FORD MOTOR COMPANY 1997 1998 1999 2000 2001 2002 2003 East 595 500 2317 120 400 1150 3700 North 1815 1789 2085 2507 1494 1965 3035 Dividends Paid (Mils.) 1998 1999 2001 2003 $1,494 $500 $2,317 $120 $400 $1150** $2,507 $3,035 $3,700 $1,789 $2,085 $1,965 Pre-Tax Pro

  10. Slide 10: Present Debt Ratings - Ford & Ford Credit

    PRESENT DEBT RATINGS - FORD & FORD CREDIT Agency Long- Term Outlook Short- Term Dominion Bond Rating BBB (high) Stable R-1 (low) Service Fitch Ratings BBB+ Negative F-2 Moody's Investors Services Ford Motor Baa1 Negative N/A Ford Credit A3 Negative P-2 Standard & Poor's BBB- Stable A-3

  11. Slide 11: Ford Credit Funding Structure

    2004 Equity 12 Term Debt/Other 110 Securitization 30 ABS CP 21 Commercial Paper 6 Overborr -10 FORD CREDIT FUNDING STRUCTURE 2001 2002 2003 Equity 13 14 12.7 Term Debt/Other 132 128 134 Securitization 34 36 30 ABS CP 12 17 15 Commercial Paper 16 9 6 Overborrow -3 -7 -16 Equity Unsecured Commercial P

  12. Slide 12: Ford Credit Public Term Funding Plan

    Term Debt Institutional $ 11 $15 $ 4 - 6 Retail 3 4 4 - 6 Total Term Debt $14 $19 $ 8 - 12 $ 10 - 15 Term Public Securitization* 17 11 10 - 15 $ 10 - 15 Total Term Funding $31 $30 $ 20 - 25 $ 20 - 30 FORD CREDIT PUBLIC TERM FUNDING PLAN 2002 Actual (Bils.) Transaction Type * Reflects new bonds issue

  13. Slide 13: Ford Credit Liquidity Programs

    Unsecured CP FCAR Motown Other Lines Conduits Total Back-up liquidity 6.1 1 9 6 22.1 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 13.4 1.1 18.2 0.4 8.4 15.7 57.2 FORD CREDIT LIQUIDITY PROGRAMS Liquidity Global Other Bank FCAR Motown Unused Cash & Cash Total Lines

  14. Slide 14: Ford Credit Liquidation of Assets / Liabilities

    Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Assets 65 76 96 121 143 Liabilities 24 28 41 68 125 FORD CREDIT LIQUIDATION OF ASSETS / LIABILITIES Cumulative Maturities - As of December 31, 2003 -- (Billions) U.S., Europe, and Canada only Under 3 Months Under 6 Months Under 1 Year Un

  15. Slide 15: Pension Update

    PENSION UPDATE PENSION FUNDING NOT AN ISSUE U.S. pension fund returns Actual 26.1 % Long-term assumption 8.75 % U.S. discount rate 6.75 % 6.25 % Worldwide pre-tax expense (Bils.) $0.9 $0.9 European restructuring costs included above 0.1 Worldwide pension contributions (Bils.) $2.8 $0.7 Funded status

  16. Slide 16: Summary

    SUMMARY Ford Achieved good progress on key financial and operating metrics in 2003 Building on the basics in 2004 Accelerating flow of new, high-quality products into the market 2004 EPS of $1.20 - $1.30 from continuing operations, excluding special items Ford Credit Ford Credit had record earnings

  17. Slide 17: Safe Harbor

    SAFE HARBOR Greater price competition in the U.S. and Europe resulting from currency fluctuations, industry overcapacity or other factors; A significant decline in industry sales, particularly in the U.S. or Europe, resulting from slowing economic growth, geo-political events or other factors; Lower

  18. Slide 18: Appendix

    APPENDIX

  19. Slide 19: Income from Continuing Operations Excluding Special Items Compared with Net Income

    INCOME FROM CONTINUING OPERATIONS EXCLUDING SPECIAL ITEMS COMPARED WITH NET INCOME Memo: Pre-Tax Profit (Mils.) Earnings Per Share* Memo: Pre-Tax Profit (Mils.) Fourth Quarter Full Year Earnings Per Share* * Earnings per share from continuing operations is calculated on a basis that includes pre-tax

  20. Slide 20: 2003 Fourth Quarter and Full Year Automotive Cash

    2003 FOURTH QUARTER AND FULL YEAR AUTOMOTIVE CASH* 4th Qtr. (Bils.) Full Yr. (Bils.) Cash, Marketable & Loaned Securities, Short-Term VEBA Assets December 31, 2003 $ 25.9 $25.9 September 30, 2003 / December 31, 2002 26.9 25.3 Change in Gross Cash $ (1.0 ) $ 0.6 Operating-Related Cash Flow Automotive

  21. Slide 21: Reconciliation of Automotive Pre-Tax Profit to Exclude Special Items

    RECONCILIATION OF AUTOMOTIVE PRE-TAX PROFIT TO EXCLUDE SPECIAL ITEMS Fourth Quarter (Mils.) Full Year (Mils.) Pre-Tax Profit from Continuing Opns. $(570 ) $(1,153 ) $(2,009 ) $(1,957 ) Less: Special Items - European Restructuring $(173 ) $ (173 ) $ (457 ) $ (513 ) - P.A.G. Restructuring (157 ) (157

  22. Slide 22: 2002 - 2003 Fourth Quarter Pre-Tax Results

    2002 - 2003 FOURTH QUARTER PRE-TAX RESULTS North America $ 513 $(1,400 ) $ -- $(1,597 ) $ 513 $ 197 South America (96 ) (4 ) -- -- (96 ) (4 ) Total Americas $ 417 $(1,404 ) $ -- $(1,597 ) $417 $ 193 International Europe $(190 ) $ (397 ) $(173 ) $ (457 ) $ (17 ) $ 60 Asia Pacific (35 ) 26 -- -- (35 )

  23. Slide 23: 2002 - 2003 Full Year Pre-Tax Results

    2002 - 2003 FULL YEAR PRE-TAX RESULTS North America $ 2,490 $ 165 $ -- $(1,597 ) $ 2,490 $ 1,762 South America (622 ) (130 ) -- -- (622 ) (130 ) Total Americas $ 1,868 $ 35 $ -- $(1,597 ) $ 1,868 $ 1,632 International Europe $ (722 ) $(1,626 ) $(173 ) $ (513 ) $ (549 ) $(1,113 ) Asia Pacific (176 )

  24. Slide 24: Automotive Gross Cash Reconciliation to GAAP

    AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.2 $ 5.4 $ 0.2 Marketable Securities 17.4 10.8 (6.6 ) Loaned Securities 0 5.7 5.7 Total Cash / Market. Sec. $22.6 $21.9 $(0.7 ) Short-Term VEBA 2.7 4.0 1.3 Gross Cash $25.3 $25.9 $ 0.6 Dec. 31, 2003 B / (W) Dec. 31, 2002 (Bils

  25. Slide 25: Automotive Operating Related Cash Flow Reconciliation to GAAP

    AUTOMOTIVE OPERATING RELATED CASH FLOW RECONCILIATION TO GAAP Cash Flow from Operating Activities before Securities $(3.5 ) $ 1.3 Trading* Items Included in Operating-Related Cash Flow Capital Expenditures $(1.8 ) $(7.4 ) Net Transactions Between Automotive and 0.8 1.2 Financial Services Sectors** O

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage

    FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $140.3 $149.7 Total Securitized Receivables Outstanding** 71.4 49.4 Retained Interest in Securitized Receivables** (17.6 ) (13.0 ) Adjustments for Cash and Cash Equivalents (6.8 ) (15.7 ) Adjustments for SFAS

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