Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q2 2023 Earnings Presentation
41 slides from Ford Mtr Co Del's earnings presentation, Jul 27, 2023
Slide 1: Delivering Ford+ Q2 2023 Earnings
Delivering Ford+ Q2 2023 Earnings All-New Ford Mustang Mach-E Rally Available To Order Fall 2023
Slide 2: Contents
Contents Delivering Ford+ Page 4 - 5 Q2 Results Page 6 Year-To-Date Results Page 7 Ford Blue Page 8 - 9 Ford Model e Page 10 - 11 Ford Pro Page 12 - 13 Financials Page 15 - 23 2023 Guidance Page 25 - 26 Appendix All-New Ranger Raptor Page 28 - 41 Available For Order Now 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: Ford+ Investment Thesis
Ford+ Investment Thesis Disruptive technology allows us to leverage foundational strengths to build new capabilities enriching customer experiences and deepening loyalty Customer experience FOUNDATIONAL ENHANCED EXPANDED TAM STRENGTHS CAPABILITIES & VALUE CREATION Leading iconic nameplates Integrate
Slide 5: Ford+ Business Model Is Designed To Deliver 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: Q2 Financial Results
Q2 Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $45.0B $3.8B 8.4% $2.9B $0.72 ▲ 12% ▲ 2% 0.8pts $0.7B ▲ 6% Ford EBIT EBIT Margin Blue $2.3B 9.2% Ford EBIT EBIT Margin Model e $(1.1)B (58.9)% Ford EBIT EBIT Margin Pro $2.4B 15.3% 2023 Lincoln Corsair 6
Slide 7: Year-To-Date Financial Results
Year-To-Date Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $86.4B $7.2B 8.3% $3.6B $1.34 ▲ 16% ▲ 18% ▲ 0.2pts ▲$0.6B ▲ 26% Ford EBIT EBIT Margin Blue $4.9B 9.8% Ford EBIT EBIT Margin Model e $(1.8)B (70.9)% Ford EBIT EBIT Margin Pro $3.8B 13.0% 2023 Ford Bronco 7
Slide 8: Ford Blue Q2 EBIT $2.3B
Improved supply chain drove a 7% increase Ford Blue $2.3B in wholesales EBIT margin of 9.2% Q2 EBIT Strong product portfolio continues to drive customer demand and pricing power America’s #1 Selling Truck Manufacturer All F-Series Built In America By UAW Members 2024 Lincoln Nautilus Begin shipping
Slide 9: Ford BlueCruise
Ford BlueCruise BlueCruise Install Base (000) BlueCruise Development Accelerating Rapidly 250 200 – V1.0 top-rated ADAS in Need different 150 January 2023* image 100 50 – V1.2 added with Lane Changes Assist and longer Q4 Q2 Q4 Q2 Q4 Q2 hands-free engagements 2020 2021 2021 2022 2022 2023 – 1st hands
Slide 10: Ford Model e Q2 EBIT $(1.1)B
Ford Startup EV business with high growth Model e $(1.1)B Making disciplined investments in future-gen vehicles, award-winning ADAS and other technologies Q2 EBIT Scaling production and attracting new customers to Ford and to full-size pickups Opened Ford Cologne Electrification Center, Ford’s first
Slide 11: Building A Modern Customer Experience With Our Dealers
Building A Modern Customer Experience With Our Dealers The BlueOval Charge Network is the single largest integrated fast-charge network across the U.S. and Canada, growing to 25,000 chargers next year Starting in January 2024, Specially trained EV staff Model e customers will have are ready to suppo
Slide 12: Ford Pro Q2 EBIT $2.4B
Ford Pro $2.4B Strength supported by 8% increase in wholesales and Super Duty pricing power EBIT margin of 15.3% Q2 EBIT + $1.5B YoY 74% growth in EV wholesales led by E-Transit #1 U.S. Class 1-7 truck / van market share #1 CV brand in Europe 451K Paid software subscriptions at the end of Q2, up 15%
Slide 13: We Put The Pro In Productivity
We Put The Pro In Productivity Need different Need different image image Software Subscriptions Electrification Physical Service Expanding our support network to Demand for software solutions Our electric truck and van are offer fast, reliable, data-driven including telematics, fleet already the bes
Slide 14: All-New All-Electric E-Tourneo Courier
All-New All-Electric E-Tourneo Courier Available Late 2024 14
Slide 15: Q2 Cash Flow, Cash Balance & Liquidity ($B)
Q2 Cash Flow, Cash Balance & Liquidity ($B) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 $3.6 $3.6 $2.9 Adjusted $2.4 Free Cash Flow $0.7 ($0.6) Ford Credit Distributions incl. Above $1.0 $0.6 $0.5 $- $- $- $49.2 $48.0 $47.3 $44.6 $45.1 $46.2 $32.0 $32.3 $28.8 $28.7 $28.7 $29.8 Cash Balance Liqui
Slide 16: Q2 2023 Results ($B)
Q2 2023 Results ($B) $3.8 $2.3 $2.4 $1.9 $0.4 driven by automotive EBIT $(0.0) $(0.2) $(0.3) $(0.4) $(1.1) $(1.2) Interest Taxes / Net Ford Blue Ford Model e Ford Corporate Company Special Ford Pro Ford Next On Debt Non-Controlling Income / Credit Other Adj. EBIT Items Strong cash Interests (Loss) a
Slide 17: Q2 2023 Adjusted EBIT ($B)
Q2 2023 Adjusted EBIT ($B) Material / Freight $(0.7) Pension / OPEB (0.5) Ford Ford Ford Ford Ford Corporate Total Blue Model e Pro Next Credit Other Company Warranty (0.3) Structural (0.1) Q2 2022 $ 2.5 $ (0.5) $ 0.9 $ (0.2) $ 0.9 $ 0.1 $ 3.7 Commodities 0.5 YoY Change: Volume / Mix $ 0.3 $ 0.1 $ 0
Slide 18: Ford Blue
Ford Wholesale Units (000) Revenue ($B) Blue $26.3 $25.1 $25.0 741 760 720 $23.8 $23.8 670 706 663 $20.8 Iconic gas and hybrid passion products like F-150, Bronco and Mustang Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 + Volume up 7% with broad Memo: JV Wholes
Slide 19: Ford Model e
Ford Wholesale Units (000) Revenue ($B) Model e 25 30 34 $1.6 $1.8 24 $1.3 $1.4 18 $1.0 Designing and scaling 12 $0.7 breakthrough, connected EVs, and all of Ford’s electric architecture and embedded software Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 + Volum
Slide 20: Ford Pro
Ford Wholesale Units (000) Revenue ($B) Pro 285 338 321 358 337 365 $10.3 $12.7 $12.0 $13.9 $13.2 $15.6 Integrated vehicle hardware, software, service, charging and financing solutions that increase commercial customer productivity Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q1 '22 Q2 '22 Q3 '22 Q4 '2
Slide 21: Ford Credit
Ford Auction Values* (Per Unit) U.S. Retail Loss-to-Receivables (“LTR”) Ratio (%) Credit $32,905 $34,620 $31,675 $30,000 $30,950 $31,830 2017-2019: 0.56% 0.35% A strategic asset and competitive $23,685 0.25% advantage 0.18% 0.21% 0.15% 0.05% (0.07)% Q2 '20 Q2 '21 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q
Slide 22: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Second Quarter First Half Balance Sheet 2022 2023 2022 2023 2022 Dec 31 2023 Jun 30 Company Excl. Ford Credit Company Adj. EBIT excl. Ford Credit $ 2.8 $ 3.4 $ 4.2 $ 6.5 Company Cash Balance $ 32.3 $ 29.8 Capital spending $ (1.5) $ (1.9) $ (2.9) $ (3.7) Liquidity 48.
Slide 23: Special Items ($B)
Special Items ($B) Second Quarter First Half Restructuring (by Geography) 2022 2023 2022 2023 Europe $ (0.0) $ (0.1) $ (0.0) $ (0.4) China (0.0) (0.4) (0.0) (0.8) Ford Credit - Brazil (0.0) - (0.2) - Other (0.1) (0.2) (0.1) (0.1) Subtotal Restructuring $ (0.1) $ (0.7) $ (0.3) $ (1.3) Pension and OPE
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Slide 25: CY 2023 Guidance
CY 2023 Guidance 2023 2022 Headwinds & Tailwinds Outlook Actuals - Global economic uncertainty and inflationary Total Company Adj. EBIT $11B to $12B $10.4B pressure Total Company Adj. FCF $6.5B to $7B $9.1B - Higher industrywide customer incentives and Capital Spending $8B to $9B $6.5B continued EV
Slide 26: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
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Slide 28: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Ford Blue $ 1.3 $ 2.5 $ 1.5 $ 1.5 $ 2.6 $ 2.3 $ 20.8 $ 23.8 $ 23.8 $ 26.3 $ 25.1 $ 25.0 Ford Model e (0.4) (0.5) (0.6) (0.6) (0.7) (1.1) 1.0 1.3 1.4 1.6 0.7 1.8 Ford Pro
Slide 29: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) 2023 B / 2023 B / 2023 B / 2023 B / Q2 2022 Q2 2023 1H 2022 1H 2023 Q2 2022 Q2 2023 1H 2022 1H 2023 (W) 2022 (W) 2022 (W) 2022 (W) 2022 Ford Blue $ 2.5 $ 2.3 $ (0.2) $ 3.8 $ 4.9 $ 1.1 $ 23.8 $ 25.0 $ 1.2 $ 44.6 $ 50.1 $ 5.5 Ford Model e (0.5) (1.1) (0.6) (0.9) (1.8
Slide 30: Q2 Results ($M)
Q2 Results ($M) Second Quarter First Half 2023 B / (W) 2023 B / (W) 2022 2023 2022 2023 2022 2022 Ford Blue $ 2,504 $ 2,308 $ (196) $ 3,832 $ 4,931 $ 1,099 Ford Model e (510) (1,080) (570) (890) (1,802) (912) Ford Pro 879 2,391 1,512 1,370 3,757 2,387 Ford Next (221) (26) 195 (463) (70) 393 Ford Cre
Slide 31: First Half 2023 Adjusted EBIT ($B)
First Half 2023 Adjusted EBIT ($B) Material / Freight $(1.7) Structural (1.0) Ford Ford Ford Ford Ford Corporate Total Blue Model e Pro Next Credit Other Company Pension / OPEB (1.0) Warranty (0.5) First Half 2022 $ 3.8 $ (0.9) $ 1.4 $ (0.5) $ 1.9 $ 0.3 $ 6.0 Commodities 0.2 YoY Change: Volume / Mix
Slide 32: Quarterly Results ($M)
Quarterly Results ($M) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Ford Blue $ 1,328 $ 2,504 $ 1,466 $ 1,549 $ 6,847 $ 2,623 $ 2,308 Ford Model e (380) (510) (612) (631) (2,133) (722) (1,080) Ford Pro 491 879 402 1,450 3,222 1,366 2,391 Ford Next (242) (221) (244) (219) (926) (44) (26) Ford Credit 928 939
Slide 33: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Second Quarter First Half Memo: 2022 2023 2022 2023 FY 2022 Net income / (loss) attributable to Ford (GAAP) $ 667 $ 1,917 $ (2,443) $ 3,674 $ (1,981) Income / (Loss) attributable to non-controlling interests (29) 99 (38) 5 (171) Net income / (
Slide 34: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) 2022 2023 First Half Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 Net cash provided by / (Used in) operating activities (GAAP) $ (1,084) $ 2,947 $ 3,812 $ 1,178 $ 2,800 $ 5,035 $ 1,863 $ 7,835 Less: Items Not Included in Co
Slide 35: Earnings Per Share Reconciliation To Adjusted Earnings Per Share
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Second Quarter First Half 2022 2023 2022 2023 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ 667 $ 1,917 $ (2,443) $ 3,674 Less: Impact of pre-tax and tax special items (a) (2,082) (1,012) (6,756) (
Slide 36: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate Memo: Q2 2023 First Half 2023 Full Year 2022 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ 2,288 $ 4,447 $ (3,016) Less: Impact of special items (1,194) (2,106) (12,172) Adjusted earnings before taxes (Non-GAAP) $ 3
Slide 37: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q2 2022 Ending Q2 2023 Net income / (loss) attributable to Ford $ 11.7 $ 4.1 Add: Non-controlling interest 0.0 (0.2) Less: Income tax 1.6 (0.5) Add: Cash tax (0.7) (1.0) Less: Interest on debt
Slide 38: 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 39: 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 40: 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 41: Delivering Ford+ Capital Markets Day 2023
Delivering Ford+ Capital Markets Day 2023 41