Ford Mtr Co Del · NYSE:F

Ford Mtr Co Del — Ford Motor Company — Debt Investor Presentation (January 2016)

33 slides from Ford Mtr Co Del's debt investor presentation, Jan 28, 2016

  1. Slide 1: 4Q 2015 and Full Year Fixed Income Review and 2016 Outlook

    Go Further 4Q 2015 AND FULL YEAR FIXED INCOME REVIEW AND 2016 OUTLOOK JANUARY 28, 2016 (PRELIMINARY RESULTS)

  2. Slide 2: Ford Credit 4Q 2015 Key Metrics Compared with 2014

    FORD CREDIT 4Q 2015 KEY METRICS COMPARED WITH 2014 U.S. Retail and Lease Contract Managed Average Over-60-Day Loss-to-Receivables Volume Receivables* Pre-Tax Results Placement Delinquencies (LTR) (000) (Bils) (Mils) FICO (Pct) (Pct) 507 $127 744 741 468 $556 $113 $423 0.36% 0.43% 0.14% 0.13% 2014 20

  3. Slide 3: 4Q 2015 Pre-Tax Results Compared with 2014

    FORD CREDIT 4Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $133 $556 $423 $137 $82 $6 $(29) $(35) $(28) Volume / Financing Credit Lease 4Q 2014 4Q 2015 Mix Margin Loss Residual Exchange Other B / (W) 3Q 2015 $15 $55 $(7) $(9) $(32) $(6) $14 SLIDE 2

  4. Slide 4: FY 2015 Pre-Tax Results Compared with 2014

    FORD CREDIT FY 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $232 $2,086 $1,854 $474 $28 $29 $(21) $(115) $(163) Volume / Financing Credit Lease 2014 2015 Mix Margin Loss Residual Exchange Other SLIDE 3

  5. Slide 5: Historical Credit Loss Metrics

    FORD CREDIT HISTORICAL CREDIT LOSS METRICS Worldwide Charge-Offs (Mils) and Loss-to-Receivables Ratio (%) LTR 0.24% 0.19% 0.23% 0.16% 0.18% $201 $136 $176 $209 $271 2011 2012 2013 2014 2015 Worldwide Credit Loss Reserve (Mils) and Reserve as a Pct. of EOP Managed Receivables Reserves as % 0.63% of E

  6. Slide 6: Historical U.S. Retail and Lease Credit Loss Drivers

    FORD CREDIT HISTORICAL U.S. RETAIL AND LEASE CREDIT LOSS DRIVERS Average Placement FICO Score Repossessions (000) 738 737 738 741 740 Repo. Ratio 1.86% 1.35% 1.18% 1.06% 0.98% 45 32 29 28 28 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Memo: Over-60-Day Delinquency* 0.14% 0.15% 0.15% 0.14% 0.12

  7. Slide 7: Historical U.S. Lease Residual Performance

    FORD CREDIT HISTORICAL U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At Incurred Mix) 24-Month 24-Month 36-Month 189 180 39-Month / Other $19,875 $19,740 $19,785 $19,000 $18,765 114 84 114 86 4 $17,975 71 $17,535 $17,865 62 44 75 $17,385 46 33 $16,540 26 36-Month 38 17 29

  8. Slide 8: 2015 Full Year Funding Highlights

    FORD CREDIT 2015 FULL YEAR FUNDING HIGHLIGHTS Completed our Full Year funding plan, highlights include: – Issued about $30 billion of public term funding in the U.S., Canada, Europe, Mexico, China, and Australia – Issued our first Reg AB II compliant securitization transaction – Completed our first

  9. Slide 9: Public Term Funding Plan

    FORD CREDIT PUBLIC TERM FUNDING PLAN 2013 2014 2015 2016 Actual Actual Actual Forecast (Bils) (Bils) (Bils) (Bils) Unsecured $ 11 $ 13 $ 17 $ 14 - 18 Securitizations* 14 15 13 12 - 15 Total Public $ 25 $ 28 $ 30 $ 26 - 33 Escape * Includes Rule 144A offerings SLIDE 8

  10. Slide 10: Funding Structure – Managed Receivables

    FORD CREDIT FUNDING STRUCTURE – MANAGED RECEIVABLES (BILS) $134-139 $127 $2-3 $113 $2 ~$6 $103 $6 $2 $5 $6 $50-53 Commercial Paper $5 $50 Ford Interest Advantage* $43 $43 Term Asset-Backed Securities** $66-68 $62 $55 Term Debt (incl Bank Borrowings) $45 Other $5 $5 $6 ~$8 Equity $11 $11 $12 ~$13 Cas

  11. Slide 11: Liquidity Sources

    FORD CREDIT LIQUIDITY SOURCES Dec. 31, 2015 2014 Sept. 30, Dec. 31, (Bils) (Bils) (Bils) Liquidity Sources Cash * $ 8.9 $ 9.2 $ 11.2 Committed ABS facilities ** 33.7 32.1 33.2 Committed FCE / Other unsecured credit facilities 1.6 2.0 2.3 Capacity Ford revolving credit facility allocation 2.0 3.0 3.0

  12. Slide 12: Automotive Financial Resources

    AUTOMOTIVE SECTOR AUTOMOTIVE FINANCIAL RESOURCES Dec. 31, 2015 Dec. 31, 2015 B / (W) 2014 Sept. 30 Dec. 31 2014 (Bils) (Bils) (Bils) (Bils) Automotive cash* $ 21.7 $ 22.2 $ 23.6 $ 1.9 Less: Long-term debt $ (11.3) $ (11.2) $ (11.0) $ 0.3 Debt payable within one year (2.5) (1.6) (1.8) 0.7 Total debt

  13. Slide 13: 2015 Pension Update

    TOTAL COMPANY 2015 PENSION UPDATE 2015 B / (W) 2014 2015 2014 Year End Over / (Under) Funded Status -- All Plans (Bils) – U.S. Plans $ (2.3) $ (3.7) $ (1.4) – Non-U.S. Plans (7.5) (4.5) 3.0 Total Funded Status $ (9.8) $ (8.2) $ 1.6 Year-End Discount Rate (Weighted Average) – U.S. Plans 3.94% 4.27% 0

  14. Slide 14: 4Q 2015 and Full Year Summary

    4Q 2015 AND FULL YEAR SUMMARY* Ford • Fourth Quarter wholesale volume and automotive revenue growth of 12% • Company pre-tax profit of $2.6 billion, up 96% from prior year • Net income of $1.9 billion, automotive operating margin of 6.1% and automotive operating-related cash flow of $2.1 billion, al

  15. Slide 15: 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

  16. Slide 16: Q&A

    Q&A

  17. Slide 17: Appendix

    APPENDIX

  18. Slide 18: Appendix Index

    APPENDIX INDEX No. Total Company • Income from Continuing Operations 1 • Credit Ratings 2 Automotive Sector • Cash Reconciliation to GAAP 3 • Automotive Debt 4 Ford Credit • 2015 Full Year Key Metrics Compared with 2014 5 • Operating Highlights 6 • Net Finance Receivables and Operating Leases 7 • Ma

  19. Slide 19: Income from Continuing Operations

    TOTAL COMPANY INCOME FROM CONTINUING OPERATIONS 4Q FY 2014 2015 2014 2015 (Mils) (Mils) (Mils) (Mils) Automotive North America $ 1,614 $ 2,029 $ 7,443 $ 9,345 South America (187) (295) (1,164) (832) Europe (297) 131 (598) 259 Middle East & Africa (82) 13 (20) 31 Asia Pacific 95 444 593 765 Other Aut

  20. Slide 20: Credit Ratings

    CREDIT RATINGS S&P Moody's Fitch DBRS Issuer Ratings Ford Motor BBB- N/A BBB- BBB (low) Ford Credit BBB- N/A BBB- BBB (low) FCE Bank plc BBB N/A BBB- NR Long-Term Senior Unsecured Ford Motor BBB- Baa3 BBB- BBB (low) Ford Credit BBB- Baa3 BBB- BBB (low) FCE Bank plc BBB Baa3 BBB- NR Short-Term Unsecu

  21. Slide 21: Cash Reconciliation to GAAP

    AUTOMOTIVE SECTOR CASH RECONCILIATION TO GAAP Dec. 31 2015 2014 Sept. 30 Dec. 31 (Bils) (Bils) (Bils) Cash and cash equivalents $ 4.6 $ 7.8 $ 5.4 Marketable securities 17.1 14.4 18.2 Total cash and marketable securities (GAAP) $ 21.7 $ 22.2 $ 23.6 Securities in transit* - - - Cash $ 21.7 $ 22.2 $ 23

  22. Slide 22: Automotive Debt

    AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, 2015 2014 Sept. 30 Dec. 31 (Bils) (Bils) (Bils) Public unsecured debt $ 6.6 $ 6.5 $ 6.4 U.S. Department of Energy 4.4 4.0 3.8 Other debt (including International) 2.8 2.3 2.6 Total Automotive debt $ 13.8 $ 12.8 $ 12.8 Memo: Automotive debt payable within on

  23. Slide 23: 2015 Full Year Key Metrics Compared with 2014

    FORD CREDIT 2015 FULL YEAR KEY METRICS COMPARED WITH 2014 U.S. Retail and Lease Contract Managed Average Over-60-Day Loss-to-Receivables Volume Receivables* Pre-Tax Results Placement Delinquencies (LTR) (000) (Bils) (Mils) FICO (Pct) (Pct) 2,141 $127 741 740 1,974 $2,086 $113 $1,854 0.33% 0.27% 0.14

  24. Slide 24: Operating Highlights

    FORD CREDIT OPERATING HIGHLIGHTS 4Q FY 2014 2015 2014 2015 Contract placement volume -- New and used retail / lease (000) North America Segment United States 285 303 1,231 1,342 Canada 39 38 149 160 Total North America Segment 324 341 1,380 1,502 International Segment Europe 109 119 460 505 Asia Pac

  25. Slide 25: Net Finance Receivables and Operating Leases

    FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2014 Dec. 31, 2015 Net Receivables* (Bils) (Bils) Finance receivables -- North America Segment Consumer retail financing $ 44.1 $ 49.2 Non-consumer: Dealer financing** 22.5 25.5 Non-consumer: Other 1.0 0.9 Total finance receivables --

  26. Slide 26: Managed Leverage Reconciliation to GAAP

    FORD CREDIT MANAGED LEVERAGE RECONCILIATION TO GAAP Dec. 31, Dec. 31, 2014 2015 (Bils) (Bils) Leverage Calculation Total debt* $ 105.0 [ $ 119.6 ] Adjustments for cash** (8.9) [ (11.2) ] Adjustments for derivative accounting*** (0.4) [ (0.5) ] Total adjusted debt $ 95.7 [ $ 107.9 ] Equity**** $ 11.4

  27. Slide 27: Worldwide Credit Loss Metrics

    FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils) Loss-to-Receivables Ratio (LTR) $76 $86 0.27% 0.27% $73 0.22% 0.24% $62 $50 0.17% 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Credit Loss Reserve (Mils) and Reserve as a Pct. of EOP Managed Receivables 0

  28. Slide 28: U.S. Retail and Lease Credit Loss Drivers

    FORD CREDIT U.S. RETAIL AND LEASE CREDIT LOSS DRIVERS Over-60-Day Delinquencies* Repossessions (000) Repo. Ratio 1.06% 1.01% 1.00% 1.00% 0.14% 0.13% 0.13% 0.13% 0.89% 0.10% 8 7 6 7 8 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Severity** Charge-Offs (Mils) and LTR

  29. Slide 29: U.S. Lease Residual Performance

    FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 4Q 2015 Mix) 24-Month 24-Month 36-Month 39-Month / Other $20,430 $20,540 $19,785 $18,690 $18,980 51 44 43 42 20 $18,550 35 $18,375 23 21 20 $17,955 20 $17,155 $17,390 26 15 16 19 36-Month 9 6 6 5 4 5 4Q 2014 1Q

  30. Slide 30: Liquidity Profile Balance Sheet

    FORD CREDIT LIQUIDITY PROFILE BALANCE SHEET (BILS) Cumulative Maturities at December 31, 2015 Assets * Debt ** $138 $127 $119 $108 $93 $81 $78 $54 *** 2016 2017 2018 2019 & Beyond Unsecured Long-Term Debt Maturities $10.3 $12.5 $11.3 $24.9 * Includes finance receivables net of unearned income, inves

  31. Slide 31: Net Loans & Advances to Customers by Market

    FCE BANK PLC NET LOANS & ADVANCES TO CUSTOMERS BY MARKET* December 31, 2015 Compared With December 31, 2014 U.K. Germany Italy France Spain Other 41% WWTF** 3.0% 39% Switzerland 2.4% Belgium 2.2% Netherlands 1.8% Austria 1.2% 27% 26% All Other 4.4% 16% 15% 8% 8% 7% 6% 4% 4% 2014 2015 2014 2015 2014

  32. Slide 32: 4Q 2015 Credit Loss Ratio Compared with 4Q 2014

    FCE BANK PLC 4Q 2015 CREDIT LOSS RATIO COMPARED WITH 4Q 2014 Net Credit Losses As Percentage Of Average Net Loans And Advances To Customers Total FCE U.K. Germany Italy* France Spain** 4.52% 0.68% 0.30% 0.11% 0.09% 0.13% 0.05% 0.08% 0.08% (0.03)% (0.08)% (0.30)% 2014 2015 2014 2015 2014 2015 2014 20

  33. Slide 33: FCE Bank Public Term Funding Plan

    FCE BANK PLC PUBLIC TERM FUNDING PLAN 2013 2014 2015 2016 Actual Actual Actual Forecast (Bils) (Bils) (Bils) (Bils) Unsecured £ 1.6 £ 1.9 £ 2.3 £ 1.9 - 2.3 Securitizations 0.4 0.8 0.4 0.8 - 1.2 Total Public £ 2.0 £ 2.7 £ 2.7 £ 2.7 - 3.5 APPENDIX 15

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