Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q1 2023 Earnings Presentation
37 slides from Ford Mtr Co Del's earnings presentation, May 2, 2023
Slide 1: Delivering Ford+ Q1 2023 Earnings
Delivering Ford+ Q1 2023 Earnings All-Electric Ford Explorer Available to order in Europe later in 2023
Slide 2: Contents
Contents Delivering Ford+ Page 4 - 5 Q1 Results Page 6 Ford Blue Page 7 - 8 Ford Model e Page 9 - 10 Ford Pro Page 11 - 12 Financials Page 14 - 22 2023 Guidance Page 24 - 25 Appendix Page 27 - 36 2
Slide 3: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures Forward-Looking Statements GAAP & Non-GAAP Financial Measures This presentation includes forward-looking statements. This presentation includes financial measures calculated in Forward-looking statements are based on expectations, accordance with Generally Accep
Slide 4: Benefits Of New Segmentation
Benefits Of New Segmentation For Customers For Investors For Ford + Closer relationships, enhancing + Validate the discrete growth and + Enhanced focus, agility and our ability to understand and profit trajectory of the segments accountability address their needs + Transparency into where capital +
Slide 5: Ford+ Business Model Designed For Focused Innovation, Profit & Growth
Ford+ Business Model Is Designed To Deliver Focused Innovation, Profit & Growth Ford Ford Ford Blue Model e Pro 5
Slide 6: Q1 Financial Results
Q1 Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $41.5B $3.4B 8.1% $0.7B $0.63 ▲ 20% ▲ 45% ▲ 1.4pts ▲$1.3B ▲ 66% Ford EBIT EBIT Margin Blue $2.6B 10.4% Ford EBIT EBIT Margin Model e $(0.7)B (102.1)% Ford EBIT EBIT Margin Pro $1.4B 10.3% All-Electric Ford Explorer 6
Slide 7: Ford Blue $2.6B
EBIT up nearly 2X on a 6% increase in $2.6B Ford wholesales – led by F-150 Blue Q1 EBIT EBIT margin of 10.4% Fresh product line up drives strong order bank and pricing power America’s #1 Selling Truck Manufacturer One unit built every 30 seconds +80,000 Unit increase to annual production run rate fo
Slide 8: Ford BlueCruise Top-Rated Active Driving Assistance System
Ford BlueCruise | Top-Rated Active Driving Assistance System* 199,000 BlueCruise Equipped Vehicles Ford BlueCruise has helped drivers enjoy over 70M highway miles hands free since launch, a 65% increase since the end of 2022 * Consumer Reports, January 25, 2023 8
Slide 9: Ford Model e $(0.7)B
Higher growth start-up; investment driving loss Ford Model e $(0.7)B Scaling production, disciplined investment in future-gen vehicles, as well as award-winning ADAS and other technologies Q1 EBIT Announced all-new EV Explorer for Europe Announced $3.5B Investment in a Ford owned LFP battery plant i
Slide 10: Scaling EV Manufacturing To Revolutionize America's Truck
Scaling EV Manufacturing To Revolutionize America’s Truck BlueOval City, preparing to Radically efficient and carbon “Revolutionizing America’s build Ford’s next-gen neutral, plant will be capable truck” by combining a century electric truck beginning in of producing 500,000 electric of truck know-h
Slide 11: Ford Pro $1.4B
EBIT nearly tripled on an 18% increase in $1.4B Ford wholesales; supported by growth in both ICE Pro and EV EBIT margin of 10.3% Q1 EBIT All-new Super Duty launched in March #1 U.S. class 1-7 truck / van share; share up 1.0 ppt.* #1 CV brand in Europe; share up 0.5 ppts. 64% paid subscription growth
Slide 12: We Put The Pro In Productivity
We Put The Pro In Productivity Need different Need different Need different image image image Service Elite Centers First Service Elite Center 233,000 Days of customer downtime Mobile Service Q1 repair orders more than opened in Apple Valley, avoided in Q1 with FordLiive, doubled from the prior year
Slide 13: WANNA
WANNA ANNARAN S % A \ X UA 4 a UA 2 od
Slide 14: Q1 Cash Flow, Cash Balance & Liquidity
Q1 Cash Flow, Cash Balance & Liquidity Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $3.6 $3.6 Adjusted $2.3 $2.4 Free Cash Flow ($B) $0.7 ($0.6) Ford Credit Distributions incl. Above ($B) $1.0 $1.0 $0.6 $0.5 $- $- $52.4 $49.2 $48.0 $44.6 $45.1 $46.2 $36.5 $32.0 $32.3 $28.8 $28.7 $28.7 Cash Balanc
Slide 15: Q1 2023 Results ($B)
Q1 2023 Results ($B) $3.4 $2.6 $1.8 $1.4 $0.3 driven by automotive EBIT $(0.0) $(0.1) $(0.3) $(0.4) $(0.7) $(0.9) Interest Taxes / Net Ford Blue Ford Model e Ford Corporate Company Special Ford Pro Ford Next On Debt Non-Controlling Income / Credit Other Adj. EBIT Items Strong cash Interests (Loss) a
Slide 16: Q1 2023 Adjusted EBIT ($B)
Q1 2023 Adjusted EBIT ($B) Material / Freight $(1.0) Structural (0.9) Ford Ford Ford Ford Ford Corporate Total Blue Model e Pro Next Credit Other Company Pension / OPEB (0.5) Commodities (0.3) Q1 2022 $ 1.3 $ (0.4) $ 0.5 $ (0.2) $ 0.9 $ 0.2 $ 2.3 Warranty (0.2) YoY Change: Volume / Mix $ 2.2 $ (0.0)
Slide 17: Ford Blue
Ford Wholesale Units (000) Revenue ($B) Blue $26.3 $25.1 741 760 $23.8 $23.8 670 706 663 $20.8 Iconic gas and hybrid passion products like F-150, Bronco and Mustang Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 + EBIT up almost 2X, driven Memo: JV Wholesales* 128 11
Slide 18: Ford Model e
Ford Wholesale Units (000) Revenue ($B) Model e 25 30 24 18 $1.6 Designing and scaling $1.3 $1.4 12 breakthrough, connected EVs, and $1.0 $0.7 all of Ford’s electric architecture and embedded software Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 + EBIT down $0.3B,
Slide 19: Ford Pro
Ford Wholesale Units (000) Revenue ($B) 358 Pro 338 337 321 285 $13.9 $13.2 $12.7 $12.0 $10.3 Integrated vehicle hardware, software, service, charging and financing solutions that increase commercial customer productivity Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 20: Ford Credit
Ford Auction Values* (Per Unit) U.S. Retail Loss-to-Receivables (“LTR”) Ratio (%) Credit $35,080 $34,410 $32,040 $31,185 0.62% $30,235 2017-2019: $26,960 0.56% 0.35% $22,980 0.22% 0.25% A strategic asset and competitive 0.18% advantage 0.08% 0.05% Q1 Q1 Q1 Q2 Q3 Q4 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 2020 2021
Slide 21: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Balance Sheet 2022 2023 Company Excl. Ford Credit 2022 Dec 31 2023 Mar 31 Company Adj. EBIT excl. Ford Credit $ 1.4 $ 3.1 Company Cash Balance $ 32.3 $ 28.7 Capital spending $ (1.3) $ (1.8) Liquidity 48.0 46.2 Depreciation and tooling amortization 1.3 1.3 Debt (19.9)
Slide 22: Special Items ($B)
Special Items ($B) First Quarter 2022 2023 Restructuring Europe $ (0.0) $ (0.4) China - (0.3) Ford Credit - Brazil (0.1) - Other (0.0) 0.0 Subtotal Restructuring $ (0.2) $ (0.7) Pension and OPEB Gain / (Loss) Pension and OPEB remeasurement $ 0.0 $ (0.1) Pension settlements and curtailments - (0.0) S
Slide 23: All-New Super Duty
All-New Super Duty Launched Spring, 2023 23
Slide 24: CY 2023 Guidance
CY 2023 Guidance 2023 2022 Headwinds & Tailwinds Outlook Actuals - Global economic uncertainty Total Company Adj. EBIT $9B to $11B $10.4B - Higher industrywide customer incentives, as vehicle Total Company Adj. FCF ~$6B $9.1B supply and demand rebalances Capital Spending $8B to $9B $6.5B - Lower pas
Slide 25: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 26: BRN RAUNN SUE
BRN RAUNN SUE R ANNAN UU CSE ANNAN AS LAAN NOMA VWAARS ‘
Slide 27: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Ford Blue $ 1.3 $ 2.5 $ 1.5 $ 1.5 $ 2.6 $ 20.8 $ 23.8 $ 23.8 $ 26.3 $ 25.1 Ford Model e (0.4) (0.5) (0.6) (0.6) (0.7) 1.0 1.3 1.4 1.6 0.7 Ford Pro 0.5 0.9 0.4 1.5 1.4 10.3 12.7 12.0 13.
Slide 28: Quarterly Results ($M)
Quarterly Results ($M) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Ford Blue $ 1,328 $ 2,504 $ 1,466 $ 1,549 $ 6,847 $ 2,623 Ford Model e (380) (510) (612) (631) (2,133) (722) Ford Pro 491 879 402 1,450 3,222 1,366 Ford Next (242) (221) (244) (219) (926) (44) Ford Credit 928 939 599 191 2,657 303 Corporate O
Slide 29: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) First Quarter 2022 2023 Net income / (loss) attributable to Ford (GAAP) $ (3,110) $ 1,757 Income / (Loss) attributable to non-controlling interests (9) (94) Net income / (loss) $ (3,119) $ 1,663 Less: (Provision for) / Benefit from income taxe
Slide 30: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net cash provided by / (Used in) operating activities (GAAP) $ 3,531 $ (1,084) $ 2,947 $ 3,812 $ 1,178 $ 2,800 Less: Items Not Included in Company Adjusted Fr
Slide 31: EPS Reconciliation To Adjusted EPS
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share First Quarter 2022 2023 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ (3,110) $ 1,757 Less: Impact of pre-tax and tax special items (4,674) (768) Adjusted net income – diluted (Non-GAAP) $ 1,564 $
Slide 32: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate Q1 2023 Full Year 2022 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ 2,159 $ (3,016) Less: Impact of special items (912) (12,172) Adjusted earnings before taxes (Non-GAAP) $ 3,071 $ 9,156 Taxes ($M) (Provision for)
Slide 33: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q1 2022 Ending Q1 2023 Net income / (loss) attributable to Ford $ 11.6 $ 2.9 Add: Non-controlling interest (0.0) (0.3) Less: Income tax 1.5 (0.4) Add: Cash tax (0.6) (0.9) Less: Interest on de
Slide 34: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. The non-GAAP measures listed below are intended to be considered by users as supplemental
Slide 35: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures • Company Adjusted Free Cash Flow (FCF) (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elemen
Slide 36: Definitions And Calculations
Definitions And Calculations Wholesale Units 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 or others, units manufactured by Ford that are sold to other manufacturers, units dist
Slide 37: Q1 2023 Earnings
Delivering Ford+ Q1 2023 Earnings