Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (July 2003)
24 slides from Ford Mtr Co Del's debt investor presentation, Jul 16, 2003
Slide 1: Second Quarter 2003 Fixed Income Presentation
SECOND QUARTER 2003 FIXED INCOME PRESENTATION July 16, 2003
Slide 2: Second Quarter Results
Earnings Per Share $0.22 $(0.07 ) $0.67 $0.96 Net Income (Mils.) $417 $(153 ) $1,313 $1,837 - Income from Continuing Operations 425 (194 ) 1,324 785 Revenue (Bils.) Total Sales and Revenue $40.7 $(1.5 ) $81.6 $(0.1 ) Automotive Sales 34.2 (1.0 ) 68.4 1.0 Vehicle Unit Sales (000) 1,717 (137 ) 3,430 (
Slide 3: 2003 Full Year Milestones
2003 FULL YEAR MILESTONES Planning Assumptions Industry Volume -- U.S. 16.5 million units No Change 16.4 Mils. -- Europe 17.0 million units 16.3 Mils. 16.6 Mils. Net Pricing* -- U.S. (Ford / LM) Zero Less than Zero (1.2)% -- Europe (Ford) 1% Less than Zero (2.0)% Physicals Market Share Improve in al
Slide 4: FCAR Update
FCAR UPDATE FCAR, our principal single-seller ABCP conduit, was brought onto Ford Credit's balance sheet in the Second Quarter The sale of receivables to the issuing trusts remains a legal "true sale" FCAR remains bankruptcy remote from Ford Credit The consolidation has no material impact on earning
Slide 5: Ford Credit Results and Metrics
FORD CREDIT RESULTS AND METRICS Receivables (Bils.) On-Balance Sheet $142 $134 * Off-Balance Sheet 65 56 Managed $207 $190 Credit Losses (Mils.) On-Balance Sheet $546 $452 Managed 636 641 Loss-to-Receivables Ratio On-Balance Sheet 1.58 % 1.50 %** Managed - U.S. Retail and Lease 1.23 1.72 - Worldwide
Slide 6: Credit Loss Metrics
Q2 Q3 Q4 Q1 Q2 Worldwide Managed 0.0125 0.0139 0.0156 0.0142 0.0135 Worldwide Owned 0.0158 0.0171 0.0192 0.0161 0.015 Managed Reserves as Pct. Of EOP Receivables 0.0177 0.019 0.0195 Q2 Q3 Q4 Q1 Q2 Ford Credit U.S. Managed LTR 0.0123 0.0151 0.0187 0.0184 0.0172 Ford Credit U.S. Owned 0.0153 0.0188 0.
Slide 7: Credit Loss Drivers - Ford Credit U.S. Retail & Lease
Q2 Q3 Q4 Q1 Q2 Worldwide Owned 45 50 53 51 44 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 NON-BANKRUPT 0.0031 0.0048 0.0048 0.0043 0.0029 0.0038 0.0035 0.0043 0.0035 Over-60-Day Delinquencies Q2 Q3 Q4 Q1 Repossessions (000) Q2 Q2 Q3 Q4 Q1 Q2 Worldwide Owned 6750
Slide 8: Residual Loss Metrics
Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 RR 24-Month 0.76 0.76 0.75 0.79 0.76 RR 36-Month 0.6 0.59 0.64 0.73 0.72 RESIDUAL LOSS METRICS Auction values in the Second Quarter were about equal to the First Quarter and our expectation Lease return rates to Ford Credit were down compared with First Quarte
Slide 9: Ford Credit Funding Structure
2003 Equity 13 Term Debt/Other 113 Securitization 32 ABS CP 18 Commercial Paper 10 Overborr 0 FORD CREDIT FUNDING STRUCTURE 2001 2002 Q2 Equity 13 14 13 Term Debt/Other 131 125 123 Securitization 34 36 36 ABS CP 12 17 17 Commercial Paper 16 9 8 Overborrow -2 -5 -8 Equity Unsecured Commercial Paper A
Slide 10: Ford Credit Public Term Funding Plan
Term Debt GlobLSTM $19 $ 2 $ 0 Non-Dollar Denominated 17 9 5 Retail / MTN / Other 4 3 2 Total Term Debt $40 $14 $ 7 $1 - 3 $ 8 - 10 Term Public Securitization* 20 17 8 4 - 7 12 - 15 Total Term Funding $60 $31 $15 $5 - 10 $20 - 25 FORD CREDIT PUBLIC TERM FUNDING PLAN 2001 Actual (Bils.) June 30 (Bils
Slide 11: Back-Up Credit Facilities Remain Strong
Memo: Bank-Sponsored Conduits Total $12.2 $12.5 Available 7.4 7.6 Renewed bank lines for an additional year $800 million reduction, more than explained by roll-off of 5-year lines terminated in 1999 Majority of commitments are five- year facilities Maintained no MAC clause or financial covenants Inc
Slide 12: Ford Credit Liquidity Programs
Unsecured CP FCAR Motown Other Lines Conduits Total Back-up liquidity 8.4 1.2 11.3 6 26.9 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 15.2 1.4 16 0.4 7.6 8 48.6 FORD CREDIT LIQUIDITY PROGRAMS Back-Up Liquidity Global Other Bank FCAR Motown Unused Over- Total Line
Slide 13: Ford Credit Liquidation of Assets / Liabilities
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Owned Receivables and Retained Interests 46 57 78 104 125 Financial Statement Debt 9 12 26 55 111 FORD CREDIT LIQUIDATION OF ASSETS / LIABILITIES Cumulative Maturities - As of May 31, 2003 -- (Billions) All values are for the U.S., Canad
Slide 14: Ford Credit Leverage
FORD CREDIT LEVERAGE 2000 2001 2002 June Managed 13.9 14.8 12.8 12.9 Manag 13.9 14.8 12.8 12.9 Owned 11.9 12.2 10.3 11.3 Owned 11.9 12.2 10.3 11.3 * Managed Managed leverage is about equal to year-end and slightly below our target range of 13 - 14 times. Ford Credit paid a $900 million dividend in t
Slide 15: Summary
SUMMARY Ford Second Quarter profits exceeded expectations Revitalization Plan is on track Cash and liquidity remain strong Ford Credit Solid profits in the Second Quarter -- full year results expected to be about the same as 2002 Priorities continue to be a focus on the core business Originate: Buy
Slide 16: Risk Factors
Statements included herein may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, incl
Slide 17: Definition of Automotive Segments
DEFINITION OF AUTOMOTIVE SEGMENTS North America International Europe South America Asia Pacific Premier Automotive Group (P.A.G.) Other Other Automotive Ford, Lincoln, and Mercury brands in U.S., Canada, and Mexico Ford Brand Ford Brand Ford Brand Jaguar, Land Rover, Volvo, and Aston Martin worldwid
Slide 18: Second Quarter Automotive Cash and Cash Flows
SECOND QUARTER AUTOMOTIVE CASH AND CASH FLOWS* Cash, Marketable and Loaned Securities, and VEBA Assets June 30, 2003 $28.7 $28.7 March 31, 2003 / December 31, 2002 26.6 25.3 Change in Gross Cash $ 2.1 $ 3.4 Operating Related Cash Flows Automotive Pre-Tax Profits $ 0 $ 0.7 Capital Spending (2.0 ) (3.
Slide 19: Automotive Gross Cash Reconciliation to GAAP
AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.2 $ 7.5 $ 2.3 * $ 8.5 Marketable Securities 17.4 15.0 (2.4 ) 14.9 Loaned Securities 0 4.6 4.6 0 Total Cash / Market. Sec. $22.6 $27.1 $ 4.5 $23.4 VEBA 2.7 1.6 (1.1 ) 1.5 Gross Cash $25.3 $28.7 $ 3.4 $24.9 * Automotive cash fl
Slide 20: Automotive Operating Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE OPERATING RELATED CASH FLOWS RECONCILIATION TO GAAP Cash Flows from Operating Activities before Securities $ 3.0 $ 2.7 $ 5.7 Trading* Items Included in Operating-Related Cash Flows Capital Transactions with Financial Services Sector $ 0.8 $ 0.9 $ 1.7 Capital Expenditures (1.4 ) (2.0 ) (3.
Slide 21: Reconciliation of Automotive Cost Performance to Cost of Sales
RECONCILIATION OF AUTOMOTIVE COST PERFORMANCE TO COST OF SALES AND SELLING, ADMINISTRATIVE, AND OTHER EXPENSE Total 2002 Cost and Expenses $(34.6 ) $(66.8 ) 2003 B / (W) 2002 Volume, Mix and Exchange-Related Cost Changes $ (0.9 ) $ (2.7 ) Automotive Year-Over-Year Cost Performance 1.3 1.9 B / (W) 20
Slide 22: 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
Slide 23: 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
Slide 24: Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $142.1 $146.2 Total Securitized Receivables Outstanding 65.7 56.0 Retained Interest in Securitized Receivables (11.5 ) (14.5 ) Adjustments for Cash and Cash Equivalents (4.2 ) (9.7 ) Adjustments for SFAS 133 (