Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q2 2020 Earnings Presentation
20 slides from Ford Mtr Co Del's earnings presentation, Jul 30, 2020
Slide 1: Q2 Earnings Review
Q2 Earnings Review July 30, 2020
Slide 2: Key Takeaways
Key Takeaways • Strong Q2 EBT of $543M • Balance sheet is inherently liquid; smaller size reflects lower production • Liquidity is strong at $32B; we continue to access diverse funding sources • Portfolio is performing well – delinquencies, charge-offs and loss-to-receivables (LTR) ratio remained lo
Slide 3: Key Metrics
Key Metrics EBT YoY Bridge ($M) EBT ($M) $801 $831 $736 $630 $543 Credit Losses Reserve $ 19 (52) $30 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Auction Performance $ 118 DMV $(77) Supplemental Depreciation (265) Other 14 Distributions ($M) $675 $650 $1,100 $475 $275 $275 Op Lease Defaults & Re
Slide 4: Q2 2020 Net Receivables Mix ($B)
Q2 2020 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $130.3 $26.4 $103.5 • Receivables declined Q2 2020 H / (L) 2019 SUV / CUV 58% 1 ppts. $13B YoY and $12B from $26.2 Truck 31 2 YE 2019 ($7.5B in Q2) Car 11 (3) primarily reflecting lower $73.
Slide 5: U.S. Origination Metrics And Credit Loss Drivers
U.S. Origination Metrics And Credit Loss Drivers Retail & Lease FICO and Retail Repossessions (000) and Higher Risk Mix (%) Repossession Rate (%) • Disciplined and consistent Higher Risk Portfolio Mix (%) Repossession Rate (%) underwriting practices 747 750 753 743 • Portfolio quality evidenced by 7
Slide 6: U.S. Consumer Pandemic Extensions
U.S. Consumer Pandemic Extensions 80K Pandemic Extensions By Week Extensions 70K 60K # of Extensions 50K 40K • 361K pandemic extensions 30K (11% of outstanding 20K contracts) processed 10K March – May 0K Mar 1 Mar 8 Mar 15 Mar 22 Mar 29 Apr 5 Apr 12 Apr 19 Apr 26 May 3 May 10 May 17 May 24 May 31 Ju
Slide 7: Worldwide Credit Loss Metrics
Worldwide Credit Loss Metrics Charge-Offs ($M) and LTR Ratio (%) LTR Ratio (%) $109 $107 $101 $89 0.36% $66 0.36% 0.35% 0.30% $45 • Worldwide credit loss metrics 0.22% 0.17% improvement reflects government stimulus and retail financing and lease Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 extens
Slide 8: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) Lease Placement Volume (000) and Return Rates (%) 24-Month Return Rate (%) 36-Month 39-Month / Other 83 81 83 82 9 9 11 12 70 74 75 70 71 • Lower lease return volumes 67 11 52 58 reflect impact of lease 48 9 56 68 64 38 80% extension programs 78% 77% 36 7
Slide 9: Cumulative Maturities At June 30, 2020 ($B)
Cumulative Maturities At June 30, 2020* ($B) Assets Debt $154 • Strong balance sheet is $134 inherently liquid with $121 $97 cumulative debt maturities $95 $75 having a longer tenor than $64 asset maturities $35 • As of June 30, $76B of $154B assets are unencumbered Jul – Dec 2020 2021 2022 2023 & B
Slide 10: Funding Structure – Managed Receivables ($B)
Funding Structure – Managed Receivables* ($B) 2019 2020 Dec 31 Jun 30 Term Debt (incl. Bank Borrowings) $ 73 $ 73 Term Asset-Backed Securities 57 55 • Well capitalized with a strong Commercial Paper 4 2 balance sheet Ford Interest Advantage / Deposits 7 6 Other 9 6 • Funding is diversified across pl
Slide 11: Public Term Funding Plan ($B)
Public Term Funding Plan* ($B) 2018 2019 2020 Through • Completed $12B of public Actual Actual Forecast Jul 29 issuance year-to-date including $2B of unsecured in June Unsecured $ 13 $ 17 $ 7 - 10 $ 5 • Strong balance sheet and Securitizations** 14 14 11 - 14 7 substantial liquidity provide Total $
Slide 12: 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 13: Appendix
APPENDIX EBT By Segment A1 Financing Shares And Contract Placement Volume A2 Total Net Receivables Reconciliation To Managed Receivables A3 Financial Statement Leverage Reconciliation To Managed Leverage A4 Liquidity Sources A5 Non-GAAP Financial Measures That Supplement GAAP Measures A6 Definitions
Slide 14: EBT By Segment ($M)
EBT By Segment* ($M) Q2 YTD H / (L) H / (L) 2020 2019 2020 2019 Results United States and Canada segment $ 445 $ (144) $ 467 $ (744) Europe segment 65 (48) 82 (145) All Other segment 17 (20) 24 (71) Total segments $ 527 $ (212) $ 573 $ (960) Unallocated other 16 (76) - (99) Earnings before taxes $ 5
Slide 15: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume Q2 YTD 2019 2020 2019 2020 Share of Ford Sales* United States 49 % 77 % 49 % 67 % Canada 65 63 66 63 U.K. 36 44 38 44 Germany 49 34 49 39 China 32 37 34 36 Wholesale Share United States 75 % 73 % 76 % 74 % Canada 57 42 57 45 U.K. 100 100 100 100 Germany
Slide 16: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2019 2019 2020 Jun 30 Dec 31 Jun 30 Finance receivables, net (GAAP) $ 115.7 $ 114.3 $ 103.9 Net investment in operating leases (GAAP) 27.7 27.7 26.4 Total net receivables* $ 143.4 $ 142.0 $ 130.3 Held-for-sale receivables (GAAP) $ - $
Slide 17: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2019 2019 2020 Jun 30 Dec 31 Jun 30 Leverage Calculation Debt $ 141.5 $ 140.0 $ 135.3 Adjustments for cash (14.1) (11.7) (17.1) Adjustments for derivative accounting (0.6) (0.5) (1.8) Total adjusted debt $ 126.8 $ 127.8 $ 116.4 Eq
Slide 18: Liquidity Sources ($B)
Liquidity Sources* ($B) 2019 2019 2020 Jun 30 Dec 31 Jun 30 Liquidity Sources Cash $ 14.1 $ 11.7 $ 17.1 Committed asset-backed facilities 35.7 36.6 37.1 Other unsecured credit facilities 2.9 3.0 2.5 Ford corporate credit facility allocation 3.0 3.0 - • Liquidity of $32.4B is $0.7B Total liquidity so
Slide 19: 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 supplementa
Slide 20: Definitions And Calculations
Definitions And Calculations Adjustments (as shown on the Liquidity Sources chart) • Includes asset-backed capacity in excess of eligible receivables; cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can be accessed through future sales of receivable
Ford Motor Credit Company — Q2 2020 Earnings Presentation on 6ix