Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q3 2022 Earnings Presentation
41 slides from Ford Mtr Co Del's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Earnings
Q3 2022 Earnings October 26, 2022 2024 Mustang Dark Horse
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: 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 Ford Blue Iconic Integrated Hardw
Slide 4: Executing Our Investment Thesis To Deliver Ford+
Executing Our Investment Thesis To Deliver Ford+ FOUNDATIONAL STRENGTHS + ENHANCED CAPABILITIES = EXPANDED TAM & VALUE CREATION Iconic Nameplates Integrated Hardware & Software Electrification Expanding the successful Tremor franchise Announced BlueCruise 1.2 offering three new Broke ground at BlueO
Slide 5: Executing Our Investment Thesis To Deliver Ford+
Executing Our Investment Thesis To Deliver Ford+ Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Enriching Customer Experiences and Deepening Loyalty Enrichin
Slide 6: Executing Our Investment Thesis To Deliver Ford+
Executing Our Investment Thesis To Deliver Ford+ Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – Enriching Customer Experiences and Deepening Loyalty Enrichin
Slide 7: U.S. Inflation Reduction Act
U.S. Inflation Reduction Act Expect the U.S. federal government’s Inflation Reduction Act (IRA) to provide a wide range of positive Disruptive Technology Allows Us to Leverage Foundational Strengths to Build New Capabilities – implications to customers and our business beginning in 2023 Enriching Cu
Slide 8: Q3 Financial Results
Q3 Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $39.4B $1.8B 4.6% $3.6B $0.30 Up $3.7B Down $1.2B Down 3.8 ppts Down $4.2B Down $0.21 2023 F-350 Lariat Super Duty Ye a r- To - D a t e $114.1B $7.9B 6.9% $6.6B $1.37 Up $15.4B Down $0.1B Down 1.2 ppts Up $4.4B Up $0.04 SECRET
Slide 9: Q3 Revenue And Adjusted EBIT
Q3 Revenue And Adjusted EBIT Wholesale Units (000) Adjusted EBIT ($B) & Revenue ($B) & EBIT Margin (%) • Q3 wholesales up 7%, driven Wholesale Units by improvement in supply chain constraints and EV $40.2 $39.4 $37.7 scaling $35.7 $34.5 • Revenue up 10%, driven by higher net pricing and volume $26.8
Slide 10: Q3 Cash Flow, Cash Balance And Liquidity ($B)
Q3 Cash Flow, Cash Balance Adjusted Cash Balance And Liquidity ($B) Free Cash Flow & Liquidity Liquidity • Q3 Adjusted FCF of $3.6B, $7.8 $52.4 driven by favorable working $47.4 $49.2 $45.1 capital and automotive EBIT $44.6 $41.0 $3.6 $3.6 • Strong cash and liquidity $2.3 $36.5 available to invest i
Slide 11: Q3 2022 Results
Q3 2022 Results ($B) $1.7 $1.8 • Company Adjusted EBIT driven by Automotive and $0.6 Ford Credit results $0.3 • Special Items include a $2.7B $(0.2) $(0.3) $(0.3) impairment on Argo $(0.8) investment $(2.6) Taxes / Automotive Mobility Ford Credit Corporate Company Interest Special Non-Controlling Ne
Slide 12: Q3 2022 Adjusted EBIT ($B)
Q3 2022 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company Q3 2021 $ 2.4 $ 0.0 $ (0.1) $ (0.0) $ 0.1 $ 2.5 $ 3.0 YoY Change: Volume / Mix $ (0.7) $ (0.0) $ 0.3 $ (0.1) $ 0.2 $ (0.3) $ (0.3) Net Pricing 2.1 0.3 0.8 0.0 0.2 3.4 3.4 Cost (2.3) (0.2) (0.8) (0.0) (0.
Slide 13: North America
North America Leadership in trucks and Ford Wholesale Units (000) Revenue ($B) Pro commercial vehicles; plus, utilities and iconic nameplates $29.1 $25.8 $26.3 $24.0 • Lower wholesales and adverse 546 599 618 568 $22.3 514 mix due to supply chain $15.0 constraints and higher 327 inflationary costs n
Slide 14: South America
South America Lean, de-risked and asset-light Wholesale Units (000) Revenue ($B) business, focused on key franchises like Ranger and Transit • Region continues to benefit from $0.9 $0.8 restructuring and asset-light 26 23 $0.5 $0.6 $0.6 $0.7 18 20 18 footprint 15 • All markets profitable in the Q2 2
Slide 15: Europe
Europe Commercial vehicle strength Wholesale Units (000)* Revenue ($B) with Ford Pro, focused passenger portfolio with key imports $6.9 $6.8 $6.1 $5.8 273 $5.6 $5.7 254 • Strengthened commercial 218 213 222 182 vehicle leadership position to 15.2% market share YTD, up 0.3 ppts sequentially Q2 2021 Q
Slide 16: China
China Focused on strength in Lincoln Wholesale Units (000)* Revenue ($B) brand, commercial vehicles and Ford utility portfolio JV Volume • Restructured ICE business 186 162 150 profitable YTD; more than offset 184 128 137 $0.6 $0.6 $0.6 $0.6 160 114 by investment in EVs 149 125 134 $0.4 $0.4 111 • L
Slide 17: International Markets Group
International Markets Group Wholesale Units (000)* Revenue ($B) Portfolio strengths of Ranger pickup and Everest • Launch of all-new Ranger 87 80 86 $2.5 $2.4 $2.8 66 59 $2.0 completed at 3 of 4 plants; YTD 55 $1.9 $1.7 Ranger share at 12.3%, up 1.3 ppts sequentially Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 18: Mobility
Mobility • Launched pilot program in San Diego allowing qualified Uber drivers to digitally reserve and EBIT ($B) Q3 EBIT YoY ($B) secure flexible leases for Mustang Mach-Es $0.1 $(0.0) $(0.2) $(0.2) $(0.2) $(0.2) $(0.3) $(0.2) $(0.3) $(0.3) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 Autonom
Slide 19: Ford Credit
Ford Credit Best-in-class finance company Auction Values (Per Unit)* U.S. Retail Loss-to-Receivables is a strategic asset and (“LTR”) Ratio (%) competitive advantage $32,475 $33,115 0.51% $30,350 $30,305 • Sequential profit decline driven by higher borrowing costs and 0.30% $24,045 the non-repeat of
Slide 20: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Balance Sheet Third Quarter Year-To-Date 2021 2022 2021 2022 2021 2022 Dec. 31 Sep. 30 Company Adj. EBIT excl. Ford Credit $ 1.9 $ 1.2 $ 4.3 $ 5.4 Capital spending $ (1.6) $ (1.6) $ (4.4) $ (4.5) Company Excl. Ford Credit Depreciation and tooling amortization 1.3 1.3
Slide 21: Special Items ($B)
Special Items ($B) Third Quarter Year-To-Date Global Redesign 2021 2022 2021 2022 Potential 2023 Actions and Cash Effects 2022 Actions and Cash Effects Recorded 2018 - 2021 Global Redesign India $ (0.4) $ (0.2) $ (0.4) $ (0.3) ~$11 North America (0.0) (0.2) (0.0) (0.2) South America (0.2) (0.0) (0.7
Slide 22: 2022 Outlook ($B)
2022 Outlook ($B) OPERATING ENVIRONMENT 2022 Outlook 2021 Actual • Full year wholesales up ~10% YoY; assumes no further Adjusted EBIT ~$11.5 $10.0 deterioration in supply chain Adjusted FCF $9.5 - $10.0 $4.6 • Continuation of a strong pricing environment – interplay between volume and pricing to rem
Slide 23: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 24: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification SECRET Structural Steel Is Erected At BlueOval City In Tennessee 24
Slide 25: Advancing The Ford+ Plan: Iconic Nameplates
Advancing The Ford+ Plan: Iconic Nameplates SECRET The Stampede Reveal Of The All-New, Seventh-Generation Ford Mustang In Detroit 25
Slide 26: Advancing The Ford+ Plan: Ford Pro
Advancing The Ford+ Plan: Ford Pro SECRET Ford Pro Introduces 1-Tonne E-Transit Custom 26
Slide 27: Appendix
Appendix 2023 Ford E-Transit
Slide 28: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 North America 327 546 599 514 618 568 10.4 % 11.2 % 14.3 % 12.0 % 12.9 % 12.8 % South America 18 20 26 15 18 23 2.3 2.4 2.4 2.2 2.0 2.0 Europe 182 218 21
Slide 29: Key Metrics
Key Metrics EBIT ($B) EBIT Change (%) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 North America $ 0.2 $ 2.4 $ 1.8 $ 1.6 $ 3.3 $ 1.3 120 % (24) % 68 % (46) % N/M % (46) % South America (0.1) 0.0 0.0 0.1 0.1 0.1 48 102 134 169 N/M N/M Europe (0.3) (0
Slide 30: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) 2022 B / (W) 2022 B / (W) 2022 B / (W) 2022 B / (W) Q3 2021 Q3 2022 2021 YTD 2022 YTD Q3 2021 Q3 2022 2021 YTD 2022 YTD 2021 2021 2021 2021 North America 546 568 22 1,407 1,700 293 11.2 % 12.8 % 1.7 ppts 11.3 % 12.6 % 1.3 ppts South America 20 23 3
Slide 31: Q3 Results ($M)
Q3 Results ($M) Third Quarter Year-To-Date 2021 2022 2022 B / (W) 2021 2021 2022 2022 B / (W) 2021 North America $ 2,420 $ 1,309 $ (1,111) $ 5,555 $ 6,169 $ 614 South America 2 149 147 (157) 303 460 Europe (52) 204 256 5 421 416 China (39) (193) (154) (177) (367) (190) International Markets Group 12
Slide 32: Year-To-Date 2022 Adjusted EBIT ($B)
Year-To-Date 2022 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company Year-To-Date 2021 $ 5.6 $ (0.2) $ 0.0 $ (0.2) $ 0.5 $ 5.8 $ 8.0 YoY Change: Volume / Mix $ 3.0 $ (0.0) $ 0.2 $ (0.2) $ (0.0) $ 3.0 $ 3.0 Net Pricing 4.4 0.7 2.0 0.0 0.4 7.4 7.4 Commodities $(4.
Slide 33: Quarterly Results ($M)
Quarterly Results ($M) 2021 2022 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 North America $ 2,943 $ 192 $ 2,420 $ 1,822 $ 7,377 $ 1,591 $ 3,269 $ 1,309 South America (73) (86) 2 36 (121) 50 104 149 Europe 341 (284) (52) (159) (154) 207 10 204 China (15) (123) (39) (150) (327) (53) (121) (193) International Mark
Slide 34: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Third Quarter Year-To-Date Memo: 2021 2022 2021 2022 FY 2021 Net income / (loss) attributable to Ford (GAAP) $ 1,832 $ (827) $ 5,655 $ (3,270) $ 17,937 Income / (Loss) attributable to non-controlling interests (10) (103) (18) (141) (27) Net in
Slide 35: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) Year-To-Date Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 2021 2022 Net cash provided by / (used in) operating activities (GAAP) $ 4,492 $ 756 $ 7,008 $ 3,531 $ (1,084) $ 2,947 $ 3,812 $ 12,256 $
Slide 36: Earnings / (Loss) Per Share Reconciliation To Adjusted EPS
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Third Quarter Year-To-Date 2021 2022 2021 2022 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ 1,832 $ (827) $ 5,655 $ (3,270) Less: Impact of pre-tax and tax special items (209) (2,063) 287 (8,819)
Slide 37: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2022 Memo: Q3 Year-To-Date Full Year 2021 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ (1,125) $ (4,182) $ 17,780 Less: Impact of special items (2,607) (11,092) 9,583 Adjusted earnings before taxes (Non-GAAP) $ 1,4
Slide 38: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q3 2021 Ending Q3 2022 Net income / (loss) attributable to Ford $ 2.9 $ 9.0 Add: Non-controlling interest (0.0) 0.1 Less: Income tax 0.1 1.8 Add: Cash tax (0.6) (0.6) Less: Interest on debt (1
Slide 39: 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 40: 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 41: 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, units manufactured by Ford that are sold to other manufacturers, units distributed by