Ford Mtr Co Del · NYSE:F

Ford Mtr Co Del — Ford Motor Company — Deutsche Bank Global Automotive Conference 2017

35 slides from Ford Mtr Co Del's conference presentation, Jan 10, 2017

  1. Slide 1: Deutsche Bank Global Automotive Conference

    DEUTSCHE BANK GLOBAL AUTOMOTIVE CONFERENCE January 10, 2017 Mark Fields President & CEO 1

  2. Slide 2: Ford is a solid investment with a strong core business

    Ford is a solid investment with a strong core business and attractive upside on emerging opportunities 1 Proven management team; robust and defensible core business 2 Strong balance sheet and business structure protects dividend through downturn 3 Investment in future mobility provides for significa

  3. Slide 3: We achieved significant progress in 2016

    We achieved significant progress in 2016 GROWTH RISK RETURNS REWARDS  Wholesale volume  Operations outside NA  Achieved 2nd best  Distributed and Automotive profitable in total and Company adjusted PBT $3.5 billion to revenue about flat improved YoY since 2000 and record shareholders, YoY FY pro

  4. Slide 4: On track to deliver 2016 full year guidance

    We are on track to deliver 2016 full year guidance; adjusted tax rate expected to be in the low 30s 2015 FY 2016 FY Results Guidance Status Total Company Adjusted Pre-Tax Results* $10.8B ≈ $10.2B Adjusted EPS* $1.93 < 2015 Automotive Segment Revenue $140.6B ≥ 2015 On Track Automotive Segment Operati

  5. Slide 5: We took a disciplined approach to the business in 2016

    We took a disciplined approach to the business in 2016 U.S. Blended Transaction Price* (USD) U.S. Incentives* (YoY Change as Pct. Of Vehicle Price) Industry Industry Ford Ford 1.3 $34,839 $33,151 $33,508 $32,685 $31,797 $30,865 $31,062 $30,904 0.7 0.7 0.6 0.7 0.5 0.4 0.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q U.S.

  6. Slide 6: We delivered on key metrics in 2016

    We delivered on key metrics in 2016 Ford U.S. Days Supply Ford U.S. Rental Sales (000) 2015 2015 2016 80 78 80 2016 282 282 73 68 70 68 70 109 108 97 67 57 50 38 38 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY Ford China Share (Pct.) 2016  Achieved inventory targets post-Super Duty launch by managing production in l

  7. Slide 7: Vision and strategy for where to play and how to win

    We have defined our vision and strategy for where to play and how to win VISION MAKING PEOPLE'S LIVES BETTER BY CHANGING THE WAY THE WORLD MOVES Deliver top quartile shareholder returns through focused automotive and high-growth mobility businesses, building STRATEGY on Ford’s unique legacy of advan

  8. Slide 8: Core business remains strong as we invest in emerging opportunities

    Going forward, the core business will remain strong as we also invest in emerging opportunities; our focus will continue to be on the drivers of value GROWTH RISK RETURNS REWARDS 8

  9. Slide 9: Strategic priorities: fortify, transform, grow

    Our strategic priorities are focused on fortifying profit pillars, transforming underperforming parts of the business and growing emerging opportunities FORTIFY TRANSFORM GROW Truck And Van Commercial Vehicles Luxury Electrification Utilities Small Vehicles Autonomy Performance Emerging Markets Mobi

  10. Slide 10: Fortifying our profit pillars: trucks, vans, commercial vehicles

    We are fortifying our profit pillars TRUCKS, VANS AND  40 years of U.S. truck leadership with F-Series COMMERCIAL VEHICLES  Commercial vehicle leader in Europe for the 2nd consecutive year  Ranger the #1 selling midsize pickup in Europe, South Africa and New Zealand  New Super Duty off to strong

  11. Slide 11: Fortifying our profit pillars: utilities

    We are fortifying our profit pillars  Expanding SUVs globally UTILITIES  All-new aluminum Expedition and Navigator to be introduced later this year  Plan to introduce 5 new utilities by 2020 including all-new Bronco and fully electric small SUV  Utilities to be our first EcoBoost-powered hybrids

  12. Slide 12: Fortifying profit pillars: performance, Ford Credit, parts and service

    We are fortifying our profit pillars  Sold over 200,000 performance vehicles in 2016 PERFORMANCE VEHICLES  On track to deliver 12 new performance vehicles by end of the decade  All-new F-150 Raptor being delivered to dealers  Ford GT production extended through 2020 model year  Announced Mustan

  13. Slide 13: Transforming underperforming parts: Lincoln and small vehicles

    We are transforming underperforming parts of the business  Lincoln sales up 47% globally YoY – up 17% in the U.S. LINCOLN and nearly triple in China  Expanded China dealer network to 65 in 2016  Dramatically improved J.D. Power U.S. APEAL, U.S. IQS and U.S. Customer Sales and Service Satisfaction

  14. Slide 14: Transforming underperforming parts: emerging markets

    We are transforming underperforming parts of the business  In 2016, exited Indonesia market along with Japan EMERGING MARKETS  Returned Ford ASEAN to profit  Improved Russia business substantially, with further improvement expected in 2017  In 2017, South America results begin to recover  Middl

  15. Slide 15: Playing to our global strengths with electrification

    We are playing to our global strengths with electrification  Playing to our global strengths – trucks and commercial ELECTRIFICATION vehicles, vans, utilities and performance vehicles Play To Our  Electrifying vehicles to provide more – more capability, Strengths productivity and performance and b

  16. Slide 16: Progressing our autonomy growth plans

    We are progressing our autonomy growth plans  Intend to produce a high-volume, Level 4 AV in 2021 AUTONOMY  Compared to the first-generation vehicle, based on 2013 Fusion, new Fusion Hybrid vehicles features: – Two smaller LiDAR sensors rather than four, enhancing vehicle design and enabling the v

  17. Slide 17: Growing mobility services and related businesses

    We are growing mobility by developing services and related businesses to reduce transportation congestion and increase transportation capacity in dense cities  “Where to Play” and “How to Win” clearly understood MOBILITY  Building leadership capability and team to innovate new mobility technologie

  18. Slide 18: Advancing connectivity as an enabling platform

    We are advancing connectivity as an enabling platform supporting core and emerging business growth opportunities  Ford and Toyota establishing SmartDeviceLink consortium to CONNECTIVITY promote industry-driven standard for in-vehicle apps  Ford and Amazon Alexa to let vehicle occupants shop, searc

  19. Slide 19: 2017 Outlook

    2017 OUTLOOK

  20. Slide 20: GDP and industry volumes expected to grow in 2017 and 2018

    GDP and industry volumes are expected to grow in 2017 and 2018 except for U.S. industry volume GDP Growth (Pct) Industry (Mils) 2016 2017 2018 2016 2017 2018 Global 2.9% 3.4% 3.8% 91.2 93.1 95.2 U.S. 1.6% 2.2% 2.1% 17.9 17.7 17.5 Brazil (3.7)% 0.5% 2.0% 2.1 2.1 2.6 Europe 1.5% 1.6% 1.9% 20.1 20.3 20

  21. Slide 21: 11 global product launches planned for 2017

    11 global product launches are planned for 2017 F-150 Fiesta Focus 5-door Electric Fiesta EcoSport 3-door 21

  22. Slide 22: Profit and cash flow remain strong in 2017 but lower than 2016

    As previously guided, profit and cash flow remain strong in 2017 but are lower than 2016; profit strengthens in 2018 Total Company Adjusted Pre-Tax Profit (Bils)* Auto Operating Cash Flow (Bils)* Core Total Emerging $10.8 ≈ $10.2 $7.3 $0 2015 Proj. 2017 2018 2015 Proj. 2017 2018 2016 2016 Auto Cash

  23. Slide 23: 2017 Company outlook generally lower than 2016

    Consistent with previous guidance, 2017 Company outlook is generally lower than 2016 driven by investments in emerging opportunities EPS Total Company Automotive Automotive Automotive Adjusted Adjusted Segment Segment Segment Operating Adjusted Effective Pre-Tax Results* EPS* Revenue Operating Margi

  24. Slide 24: Key factors driving YoY change in 2017 adjusted PBT

    These are the key factors driving YoY change in 2017 Company adjusted PBT Automotive Volume / Mix Net Pricing Cost Exchange Segment PBT Total Company Financial  At a Company level, net change in PBT YoY Adjusted Pre-Tax Services PBT driven by investments in emerging Results* opportunities FSM  Pri

  25. Slide 25: Automotive costs to increase moderately in 2017

    We expect Automotive costs to increase moderately in 2017 driven mainly by emerging opportunities; net efficiencies of approximately $3 billion nearly offset all other costs Year-Over-Year Cost Changes – 2017 Cost Decrease Automotive Segment Cost (Increase) Automotive Efficiencies Core Auto Price Re

  26. Slide 26: 2017 PBT outlook by business unit

    This is our 2017 PBT outlook by business unit versus 2016. SA, MEA and AP to improve YoY; others to decline Automotive North South Middle East Asia America America Europe & Africa Pacific Ford Credit All Other PBT B/(W) 2016 -- Volume, Mix + Net Pricing -- Exchange + Cost + Volume, Mix -- Residual -

  27. Slide 27: First quarter regular and supplemental dividend; 2017 distributions

    We are declaring a first quarter regular dividend of 15¢ per share and a supplemental dividend of 5¢ per share. We plan 2017 distributions of about $2.8 billion Shareholder Distributions (Bils.) Supplemental Dividend Anti-Dilutive Share Repurchases Regular Dividends $3.5 $1.0 $2.8 $2.3 $0.6 $2.4 $2.

  28. Slide 28: Ford is a solid investment with attractive upside

    Ford is a solid investment with an attractive upside on emerging opportunities + Current Stock Price For t i fy Transform Grow Luxury Electrification Profit pillars Small vehicle Autonomy Emerging markets Mobility Core Core Emerging 28

  29. Slide 29: Q&A

    January 10, 2017 Go Further

  30. Slide 30: 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

  31. Slide 31: Appendix

    APPENDIX

  32. Slide 32: Special Items

    TOTAL COMPANY Special Items (Mils, except amounts per share data) FY 2015 Pre-tax Special Items Separation-related actions $ -- Japan / Indonesia market closure -- Nemak IPO 150 Pension & OPEB remeasurement gains / (losses) (698) Total Pre-tax special items $ (548) Tax Special Items Net tax effect o

  33. Slide 33: Net Income Reconciliation To Adjusted Pre-tax Profit

    TOTAL COMPANY Net Income Reconciliation To Adjusted Pre-tax Profit (Mils) FY 2015 Net income / (loss) attributable to Ford (GAAP) $ 7,373 Income / (loss) attributable to non-controlling interests (2) Net income $ 7,371 Less: (Provision for) / benefit from income taxes (2,881) Income before income ta

  34. Slide 34: 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

  35. Slide 35: Definitions And Calculations

    Definitions And Calculations Automotive Records  References to Automotive records for operating cash flow, operating margin and business units are since at least 2000 Wholesales and Revenue  Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconso

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