Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Deutsche Bank Conference 2014
37 slides from Ford Mtr Co del's conference presentation, Jun 4, 2014
Slide 1: Q1 2014 Earnings Review – Deutsche Bank Conference
Retain LANE-KEEPING AID 2014Joe FIRST Hinrichs QUARTER Executive Vice President, Ford Motor Company EARNINGS REVIEW President, The Americas APRIL 25, 2014 Deutsche Bank Conference (PRELIMINARY RESULTS) June 4, 2014
Slide 2: Agenda
AGENDA • ONE Ford Plan Update – North America – South America • Assumptions and Key Metrics • Closing Remarks • Q&A SLIDE 1
Slide 3: Our Plan
OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together effectively a
Slide 4: The Plan
THE PLAN • Great Products…Strong Business…Better World • Serve all major markets • Expand in BRIC markets • Focus on the Ford and Lincoln brands • Full line-up of vehicles – Small, Medium and Large…Cars, Utilities and Trucks – Electrification strategy -- “Power of Choice” – Commitment to product exc
Slide 5: The Plan (Cont'd)
THE PLAN (CONT’D) • Improve time to market • Freshest showroom • Enhance customer experience • Deliver the brand promise • Fully competitive revenue • Global platforms and scale • Flexible and efficient production • Fully competitive costs • Maintain investment grade thru economic cycle • Skilled an
Slide 6: Global Core Platforms
SECRET GLOBAL CORE PLATFORMS B-Platform (Fiesta) C-Platform (Focus) C/D Platform (Fusion / Mondeo) Sports Car (Mustang) D-Platform (Explorer) Light Truck (Ranger) Full-Size Pickup (F-150) Over 8500 Pickup (Super Duty) Full-Size Van (Transit) SLIDE 5
Slide 7: North America – Overview
NORTH AMERICA -- OVERVIEW Pre-Tax Results (Bils.) • Significant transformation of Ford $8.8 North America since 2008 $8.1 – Continuing to implement global product $6.2 $5.4 strategy and launch new products that our customers want and value – Delivering significant improvements in fuel economy $(0.6)
Slide 8: North America – Key Priorities
NORTH AMERICA -- KEY PRIORITIES • Deliver profitable growth • Accelerate quality improvements • Develop and launch outstanding products • Continue to revitalize the Lincoln brand • Control costs as we grow the business SLIDE 7
Slide 9: U.S. Industry Sales Rates
U.S. INDUSTRY SALES RATES SAAR (Millions) 16.0 - 17.0 15.9 16.1 14.8 13.0 2011 2012 2013 April YTD 2014 Full Year 2014 Outlook Retail SAAR (Mils.) 10.2 11.7 12.9 12.8 U.S. Industry Sales Are Projected To Continue To Grow With A 2014 Full Year Outlook Of 16 - 17 Million Units SLIDE 8
Slide 10: U.S. Industry – Pickup Sales Drivers
U.S. INDUSTRY -- PICKUP SALES DRIVERS Housing Starts and Full-Size Pickup Sales Full-Size Pickup Sales (unit mils.) Housing Starts (unit mils.) 2.5 2.3 1.9 1.9 1.8 1.7 1.6 1.4 1.0 0.9 0.8 0.6 2004 2006 2008 2010 2012 2013 Full-Size Pickup Sales Rebound Supported By Improved Housing Sector SLIDE 9
Slide 11: U.S. Market Share
U.S. MARKET SHARE Total Ford / Lincoln Share (Pct.) 16.5% 15.7% 15.2% 15.2% 2011 2012 2013 April YTD 2014 B / (W) Prior Year 0.1 Pts. (1.3) Pts. 0.5 Pts. (0.8) Pts. U.S. Year-To-Date Market Share Is Down Reflecting Planned Reductions In Daily Rental Sales And Lower Small Car Retail Share SLIDE 10
Slide 12: North America Quality Improvement Actions
NORTH AMERICA QUALITY IMPROVEMENT ACTIONS Ford U.S. First Quarter Things-Gone-Wrong At Three Months In Service Better Improved 17% Best -in- Class 1Q 2013 1Q 2014 Source: Global Quality Research System (GQRS) Accelerated Quality Actions Are Driving Improvement And Closing Gap To Best-In-Class Compet
Slide 13: North America 2014 Launches
2014 Launches Fiesta Fusion Focus Mustang F-150 Taurus Escape NORTH AMERICA Expedition Transit Flex Explorer Super Duty Edge Transit Connect C-MAX SLIDE 12
Slide 14: 2015 Ford F-150
2015 FORD F-150 All-New Ford F-150 Is The Toughest, Smartest, Most Capable F-150 Ever SLIDE 13
Slide 15: 2015 Ford Mustang
2015 FORD MUSTANG All-New Ford Mustang Sets New Performance And Dynamic Benchmark For Brand SLIDE 14
Slide 16: 2015 Ford Transit
2015 FORD TRANSIT All-New Ford Transit Offers Broadest Configuration Lineup With Best-In-Class Fuel Economy And Increased Capability And Durability SLIDE 15
Slide 17: Lincoln 2014 Launches
MKZ 2014 Launches f MKS THE LINCOLN MOTOR COMPANY MKC SLIDE 16
Slide 18: 2015 Lincoln MKC
2015 LINCOLN MKC All-New Lincoln MKC Is Lincoln’s New Entry In The Fast Growing Small Premium Utility Segment SLIDE 17
Slide 19: North America – Margin Outlook
NORTH AMERICA -- MARGIN OUTLOOK 2013 Operating Margin 10.2% 2014 Projected Changes Market Factors Unfavorable volume and mix including impact of new vehicle launches Material Cost Efficiencies offset partially by added product costs Warranty Higher warranty costs for prior model year vehicles Struct
Slide 20: North America – Key Takeaways
NORTH AMERICA -- KEY TAKEAWAYS • Ford North America is focused on delivering key 2014 launches including Ford F-150, Mustang, Transit, and Lincoln MKC • Accelerated quality actions are driving improvement and closing the gap to best-in-class • Industry sales growth is forecasted to continue this yea
Slide 21: South America – Overview
SOUTH AMERICA -- OVERVIEW Pre-Tax Results (Bils.) $1.2 • South America generated strong pre-tax profit and operating margins $1.0 $0.9 through 2011. A more challenging $0.8 macroeconomic and political environment started in 2012 • 2013 results reflect: – Weakening industry $0.2 – Exchange weakness,
Slide 22: South America 2014 Launches
2014 Launches Fusion Fiesta Ka Focus Mustang Explorer Escape Edge EcoSport SOUTH AMERICA Ranger Heavy Duty Transit Cargo F-150 F-250 SLIDE 21
Slide 23: 2015 Ford Ka
2015 FORD KA All-New Ka Will Have Leading Fuel Economy And Bring New Technology And Safety Features To The Emerging Consumer Class SLIDE 22
Slide 24: South America – Business Environment
SOUTH AMERICA -- BUSINESS ENVIRONMENT South America macroeconomic and political challenges continue to escalate and include: • Slowing GDP growth and weakening industry • Increasing competition and excess capacity • High inflation • Capital controls and reduced foreign reserves • Change in trade pol
Slide 25: South America – Margin Outlook
SOUTH AMERICA -- MARGIN OUTLOOK 2013 Operating Margin (0.3)% 2014 Projected Changes Market Factors Favorable pricing and improved market share partially offset by lower industry sales Material Cost Higher costs for economics and new products partially offset by efficiencies Structural Cost Higher co
Slide 26: South America – Key Takeaways
SOUTH AMERICA -- KEY TAKEAWAYS • Macroeconomic and political challenges are placing increasing pressure on the operating margin including: – Increasing competition, excess capacity, and lower industry volumes – Unfavorable exchange, high inflation, and limited availability of U.S. dollars – Capital
Slide 27: 2014 Key Metrics – Business Units
2014 KEY METRICS -- BUSINESS UNITS Business Unit Guidance Unchanged SLIDE 26
Slide 28: 2014 Planning Assumptions and Key Metrics
2014 PLANNING ASSUMPTIONS AND KEY METRICS Total Company Guidance Unchanged; 2014 Is The Next Step In Delivering Profitable Growth For All SLIDE 27
Slide 29: Mid-Decade Outlook
MID-DECADE OUTLOOK Mid-Decade Outlook* Assessment Wholesale Volumes About 8 Million On Track Revenue / Pricing Improving On Track Automotive Operating Margins – North America 8% - 10% On Track – Global 8% - 9% At Risk Ford Credit Return on Equity** High Single Digits On Track Capital Spending** Abou
Slide 30: Questions?
Go Further QUESTIONS?
Slide 31: 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 32: 2014 Income from Continuing Operations
2014 INCOME FROM CONTINUING OPERATIONS Memo: First Quarter Full Year 2013 2014 2013 (Mils.) (Mils.) (Mils.) Automotive North America $ 2,392 $ 1,500 $ 8,809 South America (218) (510) (33) Europe (425) (194) (1,442) Middle East & Africa 47 54 (69) Asia Pacific (28) 291 327 Other Automotive (125) (222
Slide 33: Special Items
SPECIAL ITEMS First Quarter Full Year 2013 2014 2013 (Mils.) (Mils.) (Mils.) Personnel-Related Items Separation-related actions* $ (8) $ (122) $ (856) Other Items U.S. pension lump sum program $ - $ - $ (594) FCTA -- subsidiary liquidation - - (103) Ford Romania consolidation loss (15) - (15) Total
Slide 34: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP Full First Quarter Year 2013 2014 2013 (Mils.) (Mils.) (Mils.) Interest expense (GAAP) $ (206) $ (208) $ (829) Interest income (GAAP) 44 70 163 Subtotal $ (162) $ (138) $ (666) Adjusted for items included / excluded from net interest Include: Gai
Slide 35: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP APPENDIX 4
Slide 36: Emerging Markets Currency Update
EMERGING MARKETS CURRENCY UPDATE Percent Change (36.0) Argentina Peso Per USD (18.5) (11.0) Brazil Real Per USD 3.5 (41.8) Venezuela Bolivar Per USD (41.8) (18.5) Russia Ruble Per Euro (7.1) (21.8) Turkey Lira Per Euro (0.3) (9.5) India Rupee Per USD 3.0 (9.6) Thai Baht Per USD March 31, 2014 Compar
Slide 37: Further Information
FURTHER INFORMATION Investor Relations Contact: Larry Heck 313-594-0613 lheck@ford.com Information on Ford: www.shareholder.ford.com • 10-K Annual Reports • 10-Q Quarterly Reports • 8-K Current Reports • Ford University Information on Ford Motor Credit Company: www.fordcredit.com/investorcenter • 10