Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Investor Day (May 2021)
38 slides from Ford Mtr Co Del's investor day presentation, May 26, 2021
Slide 1: Delivering Capital Markets Day - Excerpt
Ford Motor Company Investor Relations Delivering Capital Markets Day - Excerpt May 26, 2021
Slide 2: Information Regarding This Presentation
Information Regarding This Presentation FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements. Forward-looking statements are based on expectations, forecasts, and assumptions by our management and involve a number of risks, uncertainties, and other factors that could caus
Slide 3: Disruptive Technology Allows Us to Leverage Foundational Strengths
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 Iconic Electric Integrated Hardware Nameplates and Softw
Slide 4: Electrification
Electrification $30B+ Electrifying In Cumulative Investment To Iconic Nameplates Electrify Vehicles By 2025 40% Ultimate Goal Ford Global EV Product Mix By 2030 BEV + Holistic Ecosystem Including Services > ICE Profitability Today Achieve Equal Or Higher Market Share In Same High-volume Segments And
Slide 5: Our Competitive Advantage Unlocks Growth And Value With Electric
Our Competitive Advantage Unlocks Growth And Value With Electric Manufacturing + + Pricing Material Flexibility Power Cost And Capability 5
Slide 6: Battery Highlights
Battery Highlights Ford Ion Park IonBoost+ Solid Power Battery Center Highest Energy Density Of All Solid-state Battery Of Excellence Any Cell Of Its Type IonBoostPro Higher Efficiency And Range Better Value And Enhanced Safety Cell Technology For Ideal For Larger Vehicles Leverages Existing Li-Ion
Slide 7: 240 GWh Of Battery Cell Capacity Globally
240 GWh Of Battery Cell Capacity Globally By The End Of The Decade 140 GWh In North America; Remaining GWh Split Between Europe, China 7
Slide 8: Battery Pack Cost
Battery Pack Cost $100 kWh $80 kWh 8
Slide 9: Five Flexible Architectures Today
Commercial Van Five Flexible Unibody Body On Frame Architectures Today Battery Electric Vehicles Rear-wheel Front-wheel Drive Unibody Drive Unibody 9
Slide 10: Next Up: New BEV Flexible Architectures
Next Up: New BEV Flexible Architectures RWD / AWD Full-size Pickup Trucks / Utilities 10
Slide 11: Projected U.S. Electrification
Projected U.S. Electrification 33% 70% Full-size Pickup Segment Fully Full-size Bus And Van Industry Fully Electric By 2030 Electric By 2030 800,000 300,000 Vehicles Annually Vehicles Annually 11
Slide 12: Blue Oval Intelligence
Blue Oval Intelligence • Sensing Hardware • Memory • On-board Computers • Power Distribution • Vehicle Electrical Architecture • Cloud And Edge Networks • Software Architecture Centralized Processing Center Next-gen Electrical Architecture 12
Slide 13: Winning Plan To Lead In Electrification
Winning Plan To Lead In Electrification Icons In Key Volume / Modern Tech Fit-for-Purpose Fully Competitive Highly Flexible Profit Segments Stack Unrivaled In Architectures / Multiple Battery Costs / Scale Manufacturing Expertise Scale Cell Technologies And Suppliers 13
Slide 14: Ford OWNS Work
Leading Commercial Vehicle Ford OWNS Work Brand In Europe 6 Years In A Row 43% Share Of Class 1-7 Commercial Full-size Truck And Van Market In The U.S. Transit Is The World’s Best-selling Cargo Van 14
Slide 15: Commercial Customers Demand:
Commercial Customers Demand: Right Tool For The Job Maximum Productivity Low Cost Of Ownership Employee Safety High Uptime Sustainable Solutions Support 15
Slide 16: Standalone Global Commercial Vehicle Services And Distribution Business Within Ford
Standalone Global Commercial Most Comprehensive Vehicle Services And Distribution Product And Solutions Business Within Ford Offerings Widest And Most Flexible Range Most Competitive Of BEV And ICE Vans And Trucks Services Portfolio Enabled By Digital Platform 16
Slide 17: Ford Pro Vehicles, Charging and Services
Ford Pro Vehicles Ford Pro Charging EELBs commercial fen} 62251 Vehicles Home Charging | 4ao—, Es Electric Truck Public Charging GBs &Van Lis Upfitting 6 Commercial Customer Ford Pro FinSimple Simplified Unified Bundied Financing invoicing ~— ‘Solutions & ‘Service Hubs X35 Mobile Service Ail Uptime
Slide 18: FORDLiive
FORDLiive CONNECTED UPTIME SYSTEM Enabling Ford customers to maximise productivity by cutting downtime by up to 60 per cent — fewer breakdowns, reduced dealer visits and quicker repairs Free-of-charge for all Ford connected commercial vehicle owners Benefitting 1 million vehicles in Europe by mid-20
Slide 19: Ford Pro Revenue ($B)
Ford Pro Revenue ($B) The Ford Pro Ecosystem Provides Unique Opportunity To Expand New Connected Services, Improve Customer Productivity And Drive Loyalty $45 Financing Vehicle $27 Servicing Telematics And Digital Charging Services Incremental Volume Including Electrification 2019 2025 19
Slide 20: Ford Pro Complements Our Strong North America Retail Business
Ford Pro Complements Our Strong North America Retail Business Selling Trucks And Large SUVs Delivering… Mid-Teens $55B+ Revenue EBIT Margin 20
Slide 21: Connected Services: Always ON
Connected Services Capitalize On Potential $20B Serviceable Obtainable Market Opportunity By 2030 Leverage Blue Oval Intelligence To Continuously Deliver New Services Leveraging Data To Reduce Always ON Internal Costs Including Warranty Establishing Deeper, Life-long Customer Relationships Deliverin
Slide 22: Connected Services
Connected Services Customer Value 33M Ford Connected X Attach X Revenue X EBIT = Profit Vehicles By 2028 Rate Per Vehicle Margin Value Growth To Ford 22
Slide 23: Power Ups Fully Integrated Blue Oval Intelligence
Power Ups Fully Integrated Delivering New Capabilities And With Best-in-Class Technology Services Without Changing Hardware Blue Oval Intelligence 1M Connected Vehicles By Year End Loyalty Drive Recurring Revenues And Focus 33M Connected Vehicles By 2028 Resources On High Value Customers 23
Slide 24: New Electrical Architecture
ENHANCED New Electrical Architecture CAPABILITIES Modular Micro-service Systems Integrated Hardware and Software Automated Testing And Simulation Zonal Energy Management And Connectivity Storage Full Stack / Application Software Engineering Data Analytics UI / UX Design Enables Deep Charging And Ene
Slide 25: Driving Value Creation
Driving Value Creation Value Strong Core Creation Business and Cash Flow Disciplined Capital Allocation Investments Strong Investment In Growth Grade Balance Sheet 25
Slide 26: Strong Core Business
Strong Core Business Strong & Improving Core Business Improving Quality & Generates Significant Costs Cash Flow To Fund Growth Fixing Overseas Operations Investing In Leading, High Margin Products 26
Slide 27: Shifted Capital Allocation To Higher Margin Products
Shifted Capital Allocation To Higher Margin Products Michigan Assembly Focus Ranger C-MAX Bronco Hermosillo Assembly Lincoln MKZ Bronco Sport Fusion White Space Product Chicago Assembly Taurus Aviator $1.8B Annual EBIT Improvement 27
Slide 28: Iconic Nameplates | Leading Market Positions
Iconic Nameplates | Leading Market Positions F-Series Mustang Transit #1 Full-size #1 Sports #1 Cargo Van Pickup Globally Coupe Globally Globally Explorer Ranger Bronco #1 America’s All-time #2 Medium-size Best-selling SUV Pickup Globally GAME ON 28
Slide 29: Turning Around Overseas Operations: Europe
Turning Around Overseas Operations: Europe Europe Refocused Business; 25% Growing Commercial Personnel Reduction In Sales Shift Vehicles And Utilities Western Europe 49% 26% 32% 30% * 18% Manufacturing Plants 2017 Q1 2021 2017 Q1 2021 $1B+ Annual Structural Cost Utility Commercial Eliminated Vehicle
Slide 30: Turning Around Overseas Operations: South America
Turning Around Overseas Operations: South America 80% Personnel Reduction 75% Manufacturing Plants $800M Annual Structural Cost Eliminated South America De-risked, Asset-light Business Model 30
Slide 31: Turning Around Overseas Operations: China
Turning Around Overseas Operations: China Sales Mix 48% 33% Growing Lincoln Business 24% 21% 14% Localizing Design And Production 5% Partnering For Digital Experience 2017 Q1 2021 2017 Q1 2021 2017 Q1 2021 Strengthening CV And SUV Portfolio Ford Utility Commercial Vehicles Lincoln 31
Slide 32: Overseas Operations Improving
Overseas Operations Improving EBIT ($B) $0.5 Future $0.2 Opportunity $(0.5) $(1.1) $(2.0) 3 Yr. Avg. Q2 2020 Q3 2020 Q4 2020 Q1 2021 Annual 32
Slide 33: Competitive Quality And Costs
Competitive Quality And Costs Warranty Expense % Of Auto Revenue 3.9% $1-2B Opportunity 2.4% 2015 - 2017 2018 - 2020 2021 - 2024 33
Slide 34: Ford Credit's Consistent Strength
Ford Credit’s Consistent Strength 3 Year Average $3.0B Profits And Distributions $2.7B Financing Through Cycles High Customer Satisfaction / Enterprise Loyalty Consistent Asset Strength And Portfolio Performance Distributions EBIT 34
Slide 35: On Track To Achieve 8% Adjusted EBIT Margin
On Track To Achieve 8% Adjusted EBIT Margin 8% Adjusted EBIT Margin Strong & Improving Core Business $5.5B - $6.5B Adjusted Adjusted Adjusted EBIT EBIT EBIT 2021E 2022E 2023E 35
Slide 36: Disruptive Technology Allows Us to Leverage Foundational Strengths
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 Iconic Electric Integrated Hardware Nameplates and Softw
Slide 37: 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 38: Ford
Ford