Slide 1: Second Quarter Fixed Income Presentation, July 19, 2005
SECOND QUARTER FIXED INCOME PRESENTATION JULY 19, 2005
Slide 2: Total Company Second Quarter and First Six Months Results
Earnings Per Share Net Income $ 0.47 $(0.10 ) $ 1.06 $ (0.45 ) Continuing Ops. -- Excl. Special Items* 0.47 (0.14 ) 1.08 (0.48 ) After-Tax Profits (Mils.) Net Income $ 946 $ (219 ) $2,158 $ (958 ) Continuing Ops. -- Excl. Special Items* 936 (307 ) 2,196 (1,014 ) Memo: Tax Rate 3.3 % (16.9 ) Pts. 14.
Slide 3: Total Company 2005 Financial Milestones
TOTAL COMPANY 2005 FINANCIAL MILESTONES* Americas North America $1.4 - $1.7 Worse South America 0.1 - 0.2 Better Europe / P.A.G. Europe 0.1 - 0.2 Low End P.A.G. 0.3 - 0.6 Low End Asia Pacific and Africa / Mazda 0.1 - 0.2 Better Total Automotive $1.5 - $2.0 Worse Financial Services 3.5 - 3.7 Better T
Slide 4: Financial Services Sector: Ford Credit Results and Metrics - Second Quarter
FINANCIAL SERVICES SECTOR FORD CREDIT RESULTS AND METRICS - SECOND QUARTER Receivables (Bils.) On-Balance Sheet $126 $121 Securitized Off-Balance Sheet 43 39 Managed $169 $160 Charge-Offs (Mils.) On-Balance Sheet $291 $137 Managed 368 169 Loss-to-Receivables Ratio On-Balance Sheet 0.91% 0.44% Manage
Slide 5: Ford Credit Pre-Tax Profit Compared with 2004
FINANCIAL SERVICES SECTOR 2005 FORD CREDIT PRE-TAX PROFIT COMPARED WITH 2004 Credit Loss Second Quarter (Bils.) Financing Margin Lease Residual Volume 2005 Other 2004 2004 2005 Volume Financing Credit Lease Other East 1391 1162 -100 -200 200 0 -100 $1.2 $1.4 $(0.2) $(0.1) $0 $0.2 $(0.2) $(0.1) SLIDE
Slide 6: Credit Loss Metrics
Q204 Q304 Q404 Q105 Q205 Worldwide Managed 0.0085 0.0094 0.0107 0.0055 0.0041 Worldwide Owned 0.0091 0.0104 0.0116 0.0056 0.0044 Managed Reserves as Pct. Of EOP Receivables Q204 Q304 Q404 Q105 Q105 Ford Credit U.S. Managed LTR 0.0112 0.0132 0.0163 0.0072 0.0062 Ford Credit U.S. Owned 0.0108 0.0129 0
Slide 7: Credit Loss Drivers - Ford Lincoln Mercury U.S. Retail & Lease
Q204 Q304 Q404 Q105 Q205 Worldwide Owned 37 42 40 30 25 Q204 Q304 Q404 Q105 Q205 Worldwide Owned 2.72 3.09 3.04 2.41 2.05 CREDIT LOSS DRIVERS - FORD LINCOLN MERCURY U.S. RETAIL & LEASE* Over-60-Day Delinquencies Repossessions (000) Q204 Q304 Q404 Q105 Q205 Worldwide Owned 6450 6450 6650 6000 6000 Q2
Slide 8: Lease Residual Performance - Ford Lincoln Mercury U.S.
Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 RR 24-Month 12 9 7 10 6 RR 36-Month 50 44 39 34 34 LEASE RESIDUAL PERFORMANCE - FORD LINCOLN MERCURY U.S. Lease Return Volume (000) Q1 Q2 Q2 Q3 Q4 2004 2005 53 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 AV 24-Month 15780 15892 15663 16440 16072 AV 36-Month 12780
Slide 9: Present Debt Ratings - Ford & Ford Credit
PRESENT DEBT RATINGS - FORD & FORD CREDIT Agency Long- Term Outlook/ Trend Short- Term Dominion Bond Rating Service Ford Motor BBB Negative R-2 (middle) Ford Credit BBB (high) Negative R-2 (high) Fitch Ratings BBB Negative F2 Moody's Investors Service Ford Motor Baa3* Under Review N/A Ford Credit Ba
Slide 10: Ford Credit Funding Structure
FORD CREDIT FUNDING STRUCTURE 2003 2004 2005 33105 Equity 12.7 11 11 11 Term Debt/Other 122 110 94 101 Securitization 28 23 31.5 34 ABS CP 15 20 25 23 Ford Interest Advantage 7.3 7.7 7.2 7.2 Commercial Paper 6 9 2 3 Overborrow -16 -12.7 -15 -19 Equity Unsecured Commercial Paper Asset-Backed Commerci
Slide 11: Ford Credit Public Term Funding Plan
FORD CREDIT PUBLIC TERM FUNDING PLAN 2003 Actual (Bils.) 2004 Actual (Bils.) Transaction Type Forecast (Bils.) * YTD Actual through July 15, 2005 ** AFSA Presentation, May 18, 2005 *** Reflects new bonds issued; excludes asset sales to commercial paper conduits, whole-loan sales, and other structure
Slide 12: Back-up Credit Facilities Remain Strong
Total facilities as of July 1 are $31.5 billion, down $900 million from year-end 2004 Majority of commitments remain five-year evergreen facilities Maintained no rating triggers, material adverse change clauses or financial covenants 7/1/2004 7/1/2005 Non-global 0.85 0.95 Ford 6.9 6.5 FCE Bank 2.9 2
Slide 13: Ford Credit Liquidity Programs
Bank Lines FCAR Motown Conduits Unsecured CP Total Back-up liquidity 0.8 14.9 8.5 5.8 2.5 32.5 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 11.9 0.8 18.3 10 16.1 18.5 75.5 FORD CREDIT LIQUIDITY PROGRAMS Liquidity Global Other Bank FCAR Motown Conduits Cash & Cash
Slide 14: Liquidity Profile of Ford Credit's Balance Sheet
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Assets 54.4 62.7 77.2 98.1 117.1 Liabilities 18.5 20.4 37.7 54.8 95.7 LIQUIDITY PROFILE OF FORD CREDIT'S BALANCE SHEET Cumulative Maturities* - As of June 30, 2005 (Bils.) * U.S., Europe, and Canada included, at scheduled maturities; uns
Slide 15: Accomplishments Since First Quarter
ACCOMPLISHMENTS SINCE FIRST QUARTER Ford Credit - Term Funding Unsecured Term Debt U.S. $ 1.6 Europe 1.2 Canada/Other 1.1 Sub-Total Unsecured $ 3.9 Securitization U.S. Retail Receivables $ 3.0 U.S. Wholesale Receivables 2.3 Private Transactions* 5.8 Sub-Total Securitization $ 11.1 Total Term Issuanc
Slide 16: Second Quarter 2005 Summary
SECOND QUARTER 2005 SUMMARY Ford Earnings per share of $0.47 from continuing operations, excluding special items* North America Automotive loss disappointing All other Automotive Operations profitable; P.A.G. progress continues Continued strong automotive liquidity (cash balance at nearly $22 billio
Slide 17: Safe Harbor
SAFE HARBOR Automotive Related: Greater price competition resulting from currency fluctuations, industry overcapacity or other factors; Significant decline in automotive industry sales and our financing of those sales, particularly in the United States or Europe, resulting from slowing economic grow
Slide 18: Total Company Calculation of Diluted Earnings Per Share
Net Income (Mils.) Numerator After-Tax Profits $ 946 $ 936 Impact on Income from assumed conversion of convertible preferred securities 54 54 Income for diluted EPS $1,000 $ 990 Denominator Average shares outstanding 1,842 1,842 Net issuable shares, primarily stock options 5 5 Convertible preferred
Slide 19: Total Company 2004-2005 Second Quarter Pre-Tax Results
TOTAL COMPANY 2004 - 2005 SECOND QUARTER PRE-TAX RESULTS* North America $ 334 $(1,214 ) $(120 )** $(307 ) $ 454 $ (907 ) South America 22 88 0 0 22 88 Total Americas $ 356 $(1,126 ) $(120 ) $(307 ) $ 476 $ (819 ) Europe $ 191 $ 66 $ (20 )*** $ 0 $ 211 $ 66 P.A.G. (347 ) (16 ) 0 (33 )*** (347 ) 17 To
Slide 20: Total Company 2005 Full Year - Special Items and Discontinued Operations
TOTAL COMPANY 2005 FULL YEAR -- SPECIAL ITEMS AND DISCONTINUED OPERATIONS Special Items Visteon-Related Charges $(0.21) - $(0.30 ) $(450) - $(650 ) $(500) - $(700 ) Personnel Reduction Programs North America** (0.02 ) (41 ) (63 ) P.A.G. (0.03 ) (72 ) (110 ) Further Personnel Reduction Programs (TBD
Slide 21: 2005 Financial Effect of Visteon Agreements - Special Items
2005 FINANCIAL EFFECT OF VISTEON AGREEMENTS -- SPECIAL ITEMS Estimated Assets Received* $ 700 - $900 Valuation Allowance / Forgiveness of Employee-Related Receivables** (450 ) Cash Payment for Inventories (300 ) Cash for Visteon Restructuring Escrow Account (400 ) Deferred Cash for Visteon Restructu
Slide 22: Automotive Sector 2005 Second Quarter Cash
AUTOMOTIVE SECTOR 2005 SECOND QUARTER CASH* Second Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets June 30, 2005 $21.8 $21.8 March 31, 2005 / December 31, 2004 22.9 23.6 Change in Gross Cash $(1.1 ) $(1.8 ) Operating-Related Cash Flows Automotive Pre-Tax Profits** $(0.
Slide 23: Automotive Sector Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $10.1 $10.8 $ 0.7 $ 7.1 Marketable Securities 8.3 7.6 (0.7 ) 10.4 Loaned Securities 1.1 0.8 (0.3 ) 5.3 Total Cash / Market. Securities $19.5 $19.2 $(0.3 ) $22.8 Short-Term VEBA 4.1 2.6 (1.5 ) 4.0 Gross Cash $23.6 $21.8 $(1
Slide 24: Automotive Sector GAAP Reconciliation of Operating-Related Cash Flows
AUTOMOTIVE SECTOR GAAP RECONCILIATION OF OPERATING-RELATED CASH FLOWS Cash Flows from Operating Activities before Securities Trading $ 1.6 $ 0.6 $ 4.0 Items Included in Operating-Related Cash Flows Capital Expenditures $(1.9 ) $(0.5 ) $(3.3 ) Net Transactions Between Automotive and Financial Service
Slide 25: Ford Credit Key Metric Definitions
FINANCIAL SERVICES SECTOR 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. Informa
Slide 26: Ford Credit Pre-Tax Income Effect of Receivables Sales Activity
FORD CREDIT PRE-TAX INCOME EFFECT OF RECEIVABLES SALES ACTIVITY 2005 (Mils.) Second Quarter 2004 (Mils.) Investment and Other Income Related to Off-Balance Sheet Securitizations Earnings Impact if Reported on Balance Sheet Net Gain on Sales of Receivables $ 69 $ 2 Servicing Fees 94 106 Income on Int
Slide 27: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt* $138.3 $128.9 Total Securitized Receivables Outstanding 45.8 ** 39.2 Retained Interest in Securitized Receivables (16.4 ) *** (5.3) Adjustments for Cash and Cash Equivalents (8.8) (18.5 ) Adjustments for SFAS
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