Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Bank of America Merrill Lynch 2019 Auto Summit
15 slides from Ford Mtr Co Del's conference presentation, Apr 17, 2019
Slide 1: Bank of America Merrill Lynch 2019 Auto Summit
Bank of America Merrill Lynch 2019 Auto Summit Jim Baumbick Vice President Enterprise Product Line Management, Ford Motor Company April 17, 2019
Slide 2: Driving Capital Allocation To High-Margin, High-Growth Businesses
Driving Capital Allocation To High-Margin, High-Growth Businesses HIGHLY ACCRETIVE ROIC (%) + • Utilizing Product Line Circle size = 2017 +/- EBIT (Bils) 50% Management to take necessary 150% of Company actions, with urgency, to 40% EBIT optimize portfolio and drive profitable growth with 30% High P
Slide 3: Leveraging Ford’s Strengths
Leveraging Ford’s Strengths WORK ADVENTURE HUMAN PERFORMANCE CONNECTION 3
Slide 4: Migrating To A Product Line Management Focus
Migrating To A Product Line Management Focus Successful Businesses Eight New Product Lines 1 North America Truck F-Series #1 full-size pickup globally 2 Global Truck Ranger #2 medium-size pickup outside U.S. 3 Commercial Vehicles 4 Utilities & Passenger Vehicles Transit #1 cargo van globally 5 Icons
Slide 5: Migrating To A Product Line Management Focus
Migrating To A Product Line Management Focus Successful Businesses Common Elements Of Success Affinity for the product line: Team members wake up F-Series living and breathing the product line Empowered teams: Autonomy to make decisions and Ranger respond to rapidly changing market conditions to opt
Slide 6: Shifting Spending To Successful Truck, Utility And Winning Businesses
Shifting Spending To Successful Truck, Utility And Winning Businesses Global Industry Segmentation (% Of Total) Ford Capital Allocation Shift (% Of Total) Truck / Utilities Car 43% 53% 64% 91% 57% 47% 36% 9% 2015 2019 2016 - 2020 2019 - 2023 6
Slide 7: Changing How We Work
Changing How We Work Operating Model and Key Objectives Drive Stronger End-to-End Business Results FROM TO Deep customer • Traditional customer • Deeper customer insight and research insight – design-thinking strategic choices FRESH! • Hierarchical formal • Agile and streamlined decision-making deci
Slide 8: Deepening Our Customer Relationship And Growing Moats Through Human-Centered Design Thinking
Deepening Our Customer Relationship And Growing Moats Through Human-Centered Design Thinking Ford’s Experience Designers analyzed a courier’s typical day and identified ways to enhance human performance to save seconds each time a drop was made. Operator fatigue was reduced and efficiencies realized
Slide 9: Improving Our Successful Commercial Van Business
Improving Our Successful Commercial Van Business Growing Leadership Position Transit Family NA #1 Brand Outsells next competitor 2:1 #1 Brand EU Leveraging relationships to improve an already strong business #1 Brand China Poised to grow in wide-body bus and van We Are The Global Leader In The Comme
Slide 10: Expanding Our Portfolio To Preferred Segments
Expanding Our Portfolio To Preferred Segments Urban Rugged Large EXPEDITION FX4 ST NEW EXPLORER ST NEW EDGE BRONCO ON-ROAD MUSTANG INSPIRED BEV PERFORMANCE Small NEW ESCAPE ECOSPORT SMALL RUGGED UTILITY SHARPEN FORTIFY & GROW CONQUER Sharpening our focus to be more expressive in Maintain core offeri
Slide 11: Transforming Our Product Freshness Portfolio
Transforming Our Product Freshness Portfolio Ford U.S. Passenger Vehicles Average Age of Portfolio (Years) Improved Short-term Approach (2018 - 2020) Legacy Nameplate Drops Lower is • Significant new Utility product Better introductions 5.8 5.6 5.4 5.3 • Elimination of legacy Sedan nameplates 3.5 En
Slide 12: Allocating Capital To Win – Michigan Assembly Plant
Allocating Capital To Win – Michigan Assembly Plant 2017 Products 2017 vs. 2021 2021 Products (200K Units) Improvement (200K+ Units) C-MAX $1B+ Ranger (2019 launch) EBIT Focus Bronco (2020 launch) 12
Slide 13: Benefits Of Product Line Management
Benefits Of Product Line Management • Capital allocation informed through strategy – making choices • Leverage franchise strengths • Expand portfolio to preferred segments • Grow moats with a relentless focus on customer use cases • Increase speed to market • Transform product freshness Allocate Cap
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Slide 15: 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
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