Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q2 2022 Earnings Presentation
40 slides from Ford Mtr Co Del's earnings presentation, Jul 27, 2022
Slide 1: Q2 2022 Earnings
Q2 2022 Earnings July 27, 2022 2023 F-150 Raptor R
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 Ford celebrates the 75th anniversary of F-Series Over 55,000 vehicles with BlueCruise Ohio Assembly Plant E
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: Globally Diversified EV Supply Chain
Globally Diversified EV Supply Chain RAW MATERIALS CELL SUPPLY EV PRODUCTION CATL 40GWh Vale ioneer 600,000 China North America By Late 2023 Canada Nevada And Koç SK On SK On 2 MILLION PT Vale Rio Tinto Turkey Hungary Huayou Argentina By Late 2026 Indonesia Compass LGES BlueOval = BHP Poland SK Mine
Slide 7: Second Quarter Financial Results
Second Quarter Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $40.2B $3.7B 9.3% $3.6B $0.68 Up $13.4B Up $2.7B Up 5.4 ppts Up $8.7B Up $0.55 2022 Expedition Timberline Ye a r- To - D a t e $74.7B $6.0B 8.1% $3.0B $1.06 Up $11.7B Up $1.1B Up 0.2 ppts Up $8.5B Up $0.23 7
Slide 8: Q2 Revenue And Adjusted EBIT
Q2 Revenue And Adjusted EBIT Wholesale Units (000) Adjusted EBIT ($B) & Revenue ($B) & EBIT Margin (%) • Q2 wholesales up 35%, Wholesale Units driven by improvement in supply chain constraints and $40.2 $37.7 the ramp-up of Bronco and $36.2 $35.7 $34.5 Maverick • Revenue up 50%, driven by $26.8 volu
Slide 9: Q2 Cash Flow, Cash Balance And Liquidity ($B)
Q2 Cash Flow, Cash Balance Adjusted Cash Balance And Liquidity ($B) Free Cash Flow & Liquidity Liquidity • Q2 Adjusted FCF of $3.6B, $7.8 $52.4 driven by strong automotive $47.4 $47.2 EBIT and favorable timing $44.6 $45.1 $41.0 differences $3.6 $36.5 $2.3 • Strong cash and liquidity $31.3 $31.5 Rivi
Slide 10: Q2 2022 Results
Q2 2022 Results ($B) $3.7 • Company Adjusted EBIT $3.3 driven by Automotive and Ford Credit results $0.9 $0.7 • Special Items include a $2.4B loss on our Rivian investment $(0.2) $(0.3) $(0.3) $(0.1) $(2.6) Taxes / Automotive Mobility Ford Credit Corporate Company Interest Special Non-Controlling Ne
Slide 11: Q2 2022 Adjusted EBIT ($B)
Q2 2022 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company Q2 2021 $ 0.2 $ (0.1) $ (0.3) $ (0.1) $ 0.2 $ (0.1) $ 1.1 YoY Change: Volume / Mix $ 4.6 $ (0.0) $ (0.1) $ (0.1) $ (0.1) $ 4.4 $ 4.4 Net Pricing 1.2 0.2 0.8 (0.0) 0.1 2.3 2.3 Material / Freight $(0.7) Co
Slide 12: North America
North America Leadership in trucks and Ford Wholesale Units (000) Revenue ($B) Pro commercial vehicles; plus, utilities and iconic nameplates $29.1 $25.8 $23.0 $24.0 • Robust order bank with nearly 533 546 599 618 $22.3 514 all 2022 MY vehicles sold out; $15.0 327 showroom traffic remains strong • C
Slide 13: South America
South America Lean, de-risked and asset-light Wholesale Units (000) Revenue ($B) business, focused on key franchises like Ranger and Transit • Exceptionally strong results $0.6 $0.8 $0.7 $0.5 $0.6 aided by restructuring actions, 20 26 $0.4 18 18 15 18 pricing and currencies Q1 2021 Q2 2021 Q3 2021 Q
Slide 14: Europe
Europe Commercial vehicle strength Wholesale Units (000)* Revenue ($B) with Ford Pro, focused passenger portfolio with key imports $7.1 $6.9 278 $6.1 $5.8 $5.6 $5.7 254 • Commercial vehicle leadership 182 218 213 222 – 14.9% market share YTD up 0.2 ppts; order bank remains strong Q1 2021 Q2 2021 Q3
Slide 15: China
China Focused on strength in Lincoln Wholesale Units (000)* Revenue ($B) brand, commercial vehicles and Ford utility portfolio JV Volume • Decline in volume driven by 162 186 $0.8 150 150 pandemic-related lockdowns 184 128 114 $0.6 $0.6 $0.6 $0.6 160 149 and restrictions 140 125 $0.4 111 • Lincoln g
Slide 16: International Markets Group
International Markets Group Wholesale Units (000)* Revenue ($B) Portfolio strengths of Ranger pickup and Everest • Launch of all new Ranger 82 87 80 $2.5 $2.3 $2.4 66 59 $2.0 underway; 11% market share 55 $1.9 $1.7 YTD • Strong customer order bank; Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1
Slide 17: Mobility
Mobility Focused on large scale commercial deployment of autonomous vehicles for moving people and goods • Continue to progress our in- EBIT ($B) Q2 EBIT YoY ($B) market pilots for moving goods and moving people • Remain committed to autonomous driving $0.0 $(0.1) $(0.2) $(0.2) $(0.2) $(0.2) $(0.2)
Slide 18: 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 $30,890 $30,855 $31,445 • Ford Pro FinSimple continues $29,040 $28,625 0.22% expanding its services to $23,255 commercial customers: 0
Slide 19: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Balance Sheet Second Quarter First Half 2021 2022 2021 2022 2021 2022 Dec. 31 Jun. 30 Company Adj. EBIT excl. Ford Credit $ (0.6) $ 2.8 $ 2.4 $ 4.2 Company Excl. Ford Credit Capital spending $ (1.5) $ (1.5) $ (2.9) $ (2.9) Depreciation and tooling amortization 1.3 1.
Slide 20: Special Items ($B)
Special Items ($B) Second Quarter First Half Global Redesign 2021 2022 2021 2022 Potential 2023 Actions and Cash Effects 2022 Actions and Cash Effects Global Redesign Recorded 2018 - 2021 South America $ (0.1) $ 0.0 $ (0.5) $ (0.0) ~$11 Europe (0.2) (0.0) (0.3) (0.0) China (including Taiwan) 0.2 (0.
Slide 21: 2022 Outlook ($B)
2022 Outlook ($B) OPERATING ENVIRONMENT 2022 Outlook 2021 Actual • Full year wholesales up ~10% - 15% YoY; assumes Adjusted EBIT $11.5 - $12.5 $10.0 no significant disruption in supply chain Adjusted FCF $5.5 - $6.5 $4.6 • Continuation of a strong pricing environment – Capital Spending ~$7.0 $6.2 in
Slide 22: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 23: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification SECRET First F-150 Lightning Delivery In Standish, MI 23
Slide 24: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification SECRET Announced The All-New Ford E-Transit Custom 24
Slide 25: Advancing The Ford+ Plan: Electrification
Advancing The Ford+ Plan: Electrification SECRET Cologne Electrification Center Construction 25
Slide 26: Appendix
Appendix 2022 F-150 Lightning
Slide 27: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 North America 533 327 546 599 514 618 12.5 % 10.4 % 11.2 % 14.3 % 12.0 % 12.9 % South America 18 18 20 26 15 18 3.6 2.3 2.4 2.4 2.2 2.0 Europe 278 182 21
Slide 28: Key Metrics
Key Metrics EBIT ($B) EBIT Change (%) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 North America $ 2.9 $ 0.2 $ 2.4 $ 1.8 $ 1.6 $ 3.3 N/M % 120 % (24) % 68 % (46) % N/M % South America (0.1) (0.1) 0.0 0.0 0.1 0.1 35 48 102 134 169 N/M Europe 0.3 (0.3
Slide 29: Key Metrics
Key Metrics Wholesale Units (000) Market Share (%) 2022 B / (W) 2022 B / (W) 2022 B / (W) 2022 B / (W) Q2 2021 Q2 2022 2021 1H 2022 1H Q2 2021 Q2 2022 2021 1H 2022 1H 2021 2021 2021 2021 North America 327 618 291 861 1,132 271 10.4 % 12.9 % 2.5 ppts 11.4 % 12.4 % 1.1 ppts South America 18 18 1 35 34
Slide 30: Q2 Results ($M)
Q2 Results ($M) Second Quarter First Half 2021 2022 2022 B / (W) 2021 2021 2022 2022 B / (W) 2021 North America $ 192 $ 3,269 $ 3,077 $ 3,135 $ 4,860 $ 1,725 South America (86) 104 190 (159) 154 313 Europe (284) 10 294 57 217 160 China (123) (121) 2 (138) (174) (36) International Markets Group 204 6
Slide 31: First Half 2022 Adjusted EBIT ($B)
First Half 2022 Adjusted EBIT ($B) North South Total Total Europe China IMG America America Auto Company First Half 2021 $ 3.1 $ (0.2) $ 0.1 $ (0.1) $ 0.4 $ 3.3 $ 5.0 YoY Change: Volume / Mix $ 3.7 $ (0.0) $ (0.1) $ (0.1) $ (0.2) $ 3.3 $ 3.3 Net Pricing 2.3 0.4 1.2 0.0 0.1 4.0 4.0 Material / Freight
Slide 32: Quarterly Results ($M)
Quarterly Results ($M) 2021 2022 Q1 Q2 Q3 Q4 Full Year Q1 Q2 North America $ 2,943 $ 192 $ 2,420 $ 1,822 $ 7,377 $ 1,591 $ 3,269 South America (73) (86) 2 36 (121) 50 104 Europe 341 (284) (52) (159) (154) 207 10 China (15) (123) (39) (150) (327) (53) (121) International Markets Group 201 204 125 92
Slide 33: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Second Quarter First Half Memo: 2021 2022 2021 2022 FY 2021 Net income / (loss) attributable to Ford (GAAP) $ 561 $ 667 $ 3,823 $ (2,443) $ 17,937 Income / (Loss) attributable to non-controlling interests (8) (29) (8) (38) (27) Net income / (l
Slide 34: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) First Half Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2021 2022 Net cash provided by / (used in) operating activities (GAAP) $ 4,492 $ 756 $ 7,008 $ 3,531 $ (1,084) $ 2,947 $ 5,248 $ 1,863 Less: Items
Slide 35: Earnings / (Loss) Per Share Reconciliation To Adjusted EPS
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Second Quarter First Half 2021 2022 2021 2022 Diluted After-Tax Results ($M) Diluted after-tax results (GAAP) $ 561 $ 667 $ 3,823 $ (2,443) Less: Impact of pre-tax and tax special items 51 (2,082) 496 (6,756) Adjusted
Slide 36: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2022 Memo: Q2 First Half Full Year 2021 Pre-Tax Results ($M) Income / (Loss) before income taxes (GAAP) $ 791 $ (3,057) $ 17,780 Less: Impact of special items (2,619) (8,485) 9,583 Adjusted earnings before taxes (Non-GAAP) $ 3,410 $ 5,
Slide 37: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Adjusted Net Operating Profit / (Loss) After Cash Tax Ending Q2 2021 Ending Q2 2022 Net income / (loss) attributable to Ford $ 3.4 $ 11.7 Add: Non-controlling interest (0.0) 0.0 Less: Income tax (0.2) 1.6 Add: Cash tax (0.5) (0.7) Less: Interest on debt
Slide 38: 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 39: 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 40: 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