Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (October 2004)
25 slides from Ford Mtr Co Del's debt investor presentation, Oct 19, 2004
Slide 1: Third Quarter 2004 Fixed Income Presentation
THIRD QUARTER 2004 FIXED INCOME PRESENTATION OCTOBER 19, 2004
Slide 2: Total Company Third Quarter and First Nine Months Results
TOTAL COMPANY THIRD QUARTER AND FIRST NINE MONTHS RESULTS * Voluntary Employee Beneficiary Association (VEBA) Trust used to pre-fund certain employee benefit obligations ** See Appendix for reconciliation to GAAP *** Before pension and long-term VEBA contributions and tax refunds; see Appendix for r
Slide 3: Automotive Sector 2004 Planning Assumptions and Operational Metrics
AUTOMOTIVE SECTOR 2004 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS * At constant volume, mix, and exchange; excluding special items ** Before pension and long-term VEBA contributions and tax refunds; see Appendix for reconciliation to GAAP Planning Assumptions Industry Volume (SAAR) -- U.S. 17.0 mi
Slide 4: Total Company 2004 Financial Outlook
Milestone* (Bils.) Full Year Outlook TOTAL COMPANY 2004 FINANCIAL OUTLOOK Pre-Tax Income Automotive Americas North America $ 1.5 - $1.7 On track South America (0.1) - 0 Better Europe / P.A.G. Europe (0.2) - (0.1 ) Better P.A.G. 0.5 - 0.6 Worse Asia Pacific and Africa / Mazda 0 - 0.1 Better Total Aut
Slide 5: Ford Credit Results and Metrics - Third Quarter
FORD CREDIT RESULTS AND METRICS -- THIRD QUARTER Receivables (Bils.) On-Balance Sheet $132 $132 Securitized Off-Balance Sheet 49 39 Managed $181 $171 Charge-Offs (Mils.) On-Balance Sheet $466 $349 Managed 668 458 Loss-to-Receivables Ratio On-Balance Sheet 1.52 % 1.13 % Managed - U.S. Retail and Leas
Slide 6: Credit Loss Drivers - Ford Credit U.S. Retail & Lease
Q3 Q4 Q104 Q204 Q304 Worldwide Owned 51 53 46 37 42 Q3 Q4 Q104 Q204 Q304 Worldwide Owned 3.44 3.68 3.24 2.72 3.09 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE* Q3 Q4 1Q04 2Q04 3Q04 NON-BANKRUPT 0.0038 0.0027 0.0021 0.0015 0.0019 Over-60-Day Delinquencies Repossessions (000) Q3 Q4 Q104 Q204
Slide 7: Lease Residual Performance
Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q2 2004 RR 24-Month 0.72 0.68 0.65 0.58 0.63 RR 36-Month 0.69 0.66 0.66 0.59 0.58 LEASE RESIDUAL PERFORMANCE Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 AV 24-Month 14400 14080 14540 14740 14620 AV 36-Month 11890 11760 12510 12690 12290 Ford Credit U.S. Auction Values (At
Slide 8: Present Debt Ratings - Ford & Ford Credit
PRESENT DEBT RATINGS - FORD & FORD CREDIT Agency Long- Term Outlook/ Trend Short- Term Dominion Bond Rating BBB (high) Stable R-1 (low) Service Fitch Ratings BBB+ Stable F2 Moody's Investors Service Ford Motor Baa1 Negative N/A Ford Credit A3 Negative P-2 Standard & Poor's BBB- Stable A-3 Slide 8
Slide 9: Ford Credit Funding Structure
FORD CREDIT FUNDING STRUCTURE 2001 2002 2003 2004 Equity 13 14 12.7 11 11.5 Term Debt/Other 132 129 134 121 114 Securitization 34 36 30 22 23 ABS CP 12 17 15 18 20 Commercial Paper 16 8 6 9 8.5 Overborrow -3 -7 -16 -10 -9 Equity Unsecured Commercial Paper Asset-Backed Commercial Paper $197 $171 $22
Slide 10: Ford Credit Public Term Funding Plan
FORD CREDIT PUBLIC TERM FUNDING PLAN 2003 Actual (Bils.) First Nine Months (Bils.) Transaction Type 2005 Preliminary (Bils.) Full Year (Bils.) 2004 Memo: Prior Forecast $13 - 19 * Reflects new bonds issued; excludes asset sales to commercial paper conduits, whole-loan sales, and other structured fin
Slide 11: Ford Credit Liquidity Programs
Unsecured CP Bank Lines FCAR Motown Conduits Total Back-up liquidity 8.5 0.7 10.9 7 27.1 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 13.5 0.7 17.5 0.4 9 10.1 51.2 FORD CREDIT LIQUIDITY PROGRAMS Liquidity Global Other Bank FCAR Motown Unused Cash & Cash Total Line
Slide 12: Liquidity Profile of Ford Credit's Balance Sheet
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Assets 52 63 83 110 134 Liabilities 21 36 48 68 112 LIQUIDITY PROFILE OF FORD CREDIT'S BALANCE SHEET Cumulative Maturities* - As of September 30, 2004 (Billions) * U.S., Europe, and Canada only Under 3 Months Under 6 Months Under 1 Year
Slide 13: Third Quarter 2004 Summary
THIRD QUARTER 2004 SUMMARY Ford Earnings per share of $0.28 from continuing operations, excluding special items, and net income of $0.15 per share Continued strong automotive liquidity Ford Credit Strong earnings Continued favorable credit loss performance Expect year-end managed receivables to be a
Slide 14: Risk Factors and Forward-Looking Statements
Greater price competition resulting from currency fluctuations, industry overcapacity or other factors; A significant decline in industry vehicle sales, particularly in the U.S. or Europe, resulting from slowing economic growth, geo- political events or other factors; Lower-than-anticipated market a
Slide 15: Total Company Calculation of Diluted Earnings Per Share
TOTAL COMPANY CALCULATION OF DILUTED EARNINGS PER SHARE - - Appendix page 1 - Net Income (Mils.) Numerator After-Tax Profits $ 266 $ 537 Impact on Income from assumed conversion of convertible preferred securities 50 50 Income for diluted EPS $ 316 $ 587 Denominator Average shares outstanding 1,829
Slide 16: Total Company Income from Continuing Operations Compared with Net Income
- - Appendix page 2 - TOTAL COMPANY INCOME FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME * Earnings per share from continuing operations is calculated on a basis that includes pre-tax profit, provision for taxes, and minority interest. See Appendix for calculation ** See Appendix for complete
Slide 17: Total Company 2003-2004 Third Quarter Pre-Tax Results
TOTAL COMPANY 2003 - 2004 THIRD QUARTER PRE-TAX RESULTS* - - Appendix page 4 - North America $ (108 ) $ (522 ) $ -- $(41 ) $ (108 ) $ (481 ) South America (26 ) 59 -- -- (26 ) 59 Total Americas $ (134 ) $ (463 ) $ -- $(41 ) $ (134 ) $ (422 ) Europe $ (456 ) $ (33 ) $(56 ) $ -- $ (400 ) $ (33 ) P.A.G
Slide 18: Automotive Sector 2004 Third Quarter Cash
AUTOMOTIVE SECTOR 2004 THIRD QUARTER CASH* - - Appendix page 5 - * See Appendix for reconciliation to GAAP ** Excluding special items, see Appendix for reconciliation to GAAP Third Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets September 30, 2004 $23.4 $23.4 June 30,
Slide 19: Automotive Sector Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP - - Appendix page 6 - Cash and Cash Equivalents $ 5.4 $ 6.7 $ 1.3 $ 6.8 Marketable Securities 10.8 10.3 (0.5 ) 12.2 Loaned Securities 5.7 2.3 (3.4 ) 7.0 Total Cash / Market. Sec. $21.9 $19.3 $(2.6 ) $26.0 Short-Term VEBA 4.0 4.1 0.1 0.9 Gross Cash
Slide 20: Automotive Sector Operating-Related Cash Flow Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOW RECONCILIATION TO GAAP - - Appendix page 7 - * As shown in our sector statement of cash flow for Automotive ** Primarily payables and receivables between the sectors in the normal course of business, as shown in our sector statement of cash flow Cash Flo
Slide 21: Ford Motor Credit Key Metric Definitions
FORD MOTOR CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Motor Credit's financial performance on a GAAP financial statement basis, Ford Motor Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below. Information abo
Slide 22: Ford Motor Credit Ratio Definitions
FORD MOTOR CREDIT RATIO DEFINITIONS In addition to evaluating Ford Motor Credit's financial performance on a GAAP financial statement basis, Ford Motor Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Leverage: Total Debt
Slide 23: Ford Credit Pre-Tax Income Effect of Receivables Sales Activity
FORD CREDIT PRE-TAX INCOME EFFECT OF RECEIVABLES SALES ACTIVITY 2004 (Mils.) Third Quarter 2003 (Mils.) Investment and Other Income Related to Off-Balance Sheet Securitizations Earnings Impact if Reported on Balance Sheet - - Appendix page 10 - Net Gain on Sales of Receivables $ 45 $ 20 Servicing Fe
Slide 24: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt* $149.6 $135.3 Total Securitized Receivables Outstanding** 48.8 38.7 Retained Interest in Securitized Receivables (10.2 ) (9.5) Adjustments for Cash and Cash Equivalents (20.3 ) (10.1 ) Adjustments for SFAS 13
Slide 25: Ford Credit Loss-to-Receivable Ratio, Excluding Charge-offs on Reacquired Receivables
Worldwide Loss-to-receivable Ratio Managed 1.45 1.85 1.10 1.02 1.07 On-Balance Sheet* 1.52 2.04 1.11 1.07 1.13 On-Balance Sheet Excl. Charge-offs on Reacquired Receivables 1.40 1.93 1.03 1.03 1.07 Ford Credit U.S. Retail and Lease Loss-to-receivable Ratio Managed 1.86 2.15 1.51 1.16 1.38 On-Balance
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