Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q4 2021 Earnings Presentation
24 slides from Ford Mtr Co Del's earnings presentation, Feb 3, 2022
Slide 1: Q4 & Full Year 2021 Earnings Review
Q4 & Full Year 2021 Earnings Review February 3, 2022 1
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: Key Metrics
Key Metrics Best-in-class finance company Auction Values (Per Unit) * U.S. Retail LTR Ratio (%) $30,560 $28,760 $28,370 • Delivered another year of strong financial results and #1 for J.D. 0.37% Power’s U.S. mass-market financing $22,260 $22,925 0.30% $21,375 satisfaction 0.22% 0.07% • In Q4, new cu
Slide 4: FY 2021 EBT YoY Bridge ($M)
FY 2021 EBT YoY Bridge ($M) • FY EBT at $4.7B, up 81% YoY • Volume & mix primarily driven by lower receivables • Credit loss primarily reflects lower charge-offs and lower reserve levels • Lease residual performance driven by improved auction values 2020 Volume / Financing Credit Lease Exchange Othe
Slide 5: Q4 2021 Net Receivables Mix
Q4 2021 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $117.5 • Receivables declined $14.2B $25.2 $94.3 YoY, primarily reflecting lower wholesale receivables $25.0 • Operating lease portfolio was 21% of total net receivables $72.6 $55.6 $17.6 $1
Slide 6: U.S. Origination Metrics And Credit Loss Drivers
U.S. Origination Retail & Lease FICO and Retail Repossessions (000) and Metrics And Higher Risk Mix (%) Repossession Rate (%) Higher Risk Portfolio Mix (%) Repossession Rate (%) Credit Loss 748 747 751 754 Drivers 738 735 6% 6% 6% 5% 5% 5% 5 5 5 1.04% 1.01% 3 3 3 0.92% 0.63% 0.71% 0.71% • Discipline
Slide 7: Worldwide Credit Loss Metrics
Worldwide Credit Loss Net Charge-Offs ($M) and LTR Ratio (%) Metrics LTR Ratio (%) $88 $67 0.32% $41 0.24% $9 $14 $1 0.16% 0.04% 0.06% • Worldwide credit loss metrics 0.00% remain strong and below year Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 ago levels, reflecting continued low losses Credit
Slide 8: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) and Return Rates (%) Lease Placement Volume (000) 24-Month Return Rate (%) 36-Month 39-Month / Other 65 75 53 51 12 62 62 • Auction values up 43% YoY 11 10 57 55 11 36 reflecting continued strong 43 16 demand for used vehicles 59 47 41 37 12 63% 62% 61% 2
Slide 9: Cumulative Maturities At Dec. 31, 2021 ($B)
Cumulative Maturities At Dec. 31, 2021* ($B) Assets Debt • Strong balance sheet is $135 inherently liquid with cumulative $113 $118 debt maturities having a longer $92 $92 tenor than asset maturities $76 $64 $53 • $74B of $135B assets are unencumbered 2022 2023 2024 2025 & Beyond Unsecured Long-Term
Slide 10: Funding Structure – Managed Receivables ($B)
Funding Structure – Managed 2020 Dec 31 2021 Dec 31 Receivables* ($B) Term Unsecured Debt $ 73.3 $ 59.4 Term Asset-Backed Securities 54.6 45.4 • Well capitalized with a strong Ford Interest Advantage / Retail Deposits 9.8 12.9 balance sheet; $32B in net Other 5.7 5.7 liquidity Equity 15.6 12.4 • Fun
Slide 11: Public Term Funding Plan ($B)
Public Term Funding Plan* ($B) 2020 2021 2022 Through • Completed $14B of public Actual Actual Forecast Feb 2 issuance in 2021 • Strong balance sheet and substantial liquidity provide Unsecured $ 14 $ 5 $ 8 - 11 $ 2 funding flexibility Securitizations** 13 9 6-9 1 • Reduced public funding reflects T
Slide 12: 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 13: Appendix
Appendix EBT By Segment A2 Financing Shares And Contract Placement Volume A3 Financing Shares And Contract Placement Volume (last five years) A4 U.S. Origination Metrics And Credit Loss Drivers A5 Worldwide Credit Loss Metrics A6 U.S. Lease Metrics A7 Total Net Receivables Reconciliation To Managed
Slide 14: EBT By Segment ($M)
EBT By Segment* ($M) Q4 Full Year H / (L) H / (L) 2021 2020 ** 2021 2020 ** Results United States and Canada segment $ 953 $ 111 $ 4,393 $ 2,152 Europe segment 52 11 254 58 All Other segment 46 46 98 60 Total segments $ 1,051 $ 168 $ 4,745 $ 2,270 Unallocated other 18 (11) (14) (147) Earnings before
Slide 15: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume Q4 Full Year 2020 2021 2020 2021 Share of Ford Sales* United States 40 % 51 % 56 % 48 % Canada 94 75 74 70 U.K. 40 24 40 33 Germany 39 37 39 39 China 42 43 39 44 Wholesale Share United States 74 % 72 % 74 % 72 % Canada 24 8 38 10 U.K. 100 100 100 100 Ge
Slide 16: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume 2017 2018 2019 2020 2021 Share of Ford Sales* United States 55 % 58 % 51 % 56 % 48 % Canada 77 75 66 74 70 U.K. 35 37 39 40 33 Germany 48 48 47 41 39 China 28 35 35 39 44 Wholesale Share United States 76 % 76 % 75 % 74 % 72 % Canada 61 59 57 40 10 U.K.
Slide 17: U.S. Origination Metrics And Credit Loss Drivers
U.S. Retail & Lease FICO and Higher Risk Mix (%) Retail Repossessions (000) and Repossession Rate (%) Origination Higher Risk Portfolio Mix (%) Repossession Rate (%) Metrics And 746 746 748 739 750 Credit Loss 27 28 27 Drivers 21 6% 6% 6% 6% 14 5% 1.29% 1.28% 1.24% 0.95% 0.74% 2017 2018 2019 2020 20
Slide 18: Worldwide Credit Loss Metrics
Worldwide C h a r g e - O f f s ( $ M ) a n d LT R R a t i o ( % ) Credit Loss LTR Ratio (%) Metrics $425 $369 $371 $301 0.33% 0.35% 0.31% 0.27% • Worldwide credit loss metrics $65 remain strong 0.07% • Credit loss reserve based on 2017 2018 2019 2020 2021 historical losses, portfolio quality, and r
Slide 19: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) Lease Placement Volume (000) and Return Rates (%) 24-Month Return Rate (%) 36-Month 39-Month / Other 290 290 281 368 385 243 329 80% 78% 78% 38 43 69% 41 258 217 43 124 • Lease share below industry, 290 288 236 48 34% reflecting Ford sales mix 180 141 • L
Slide 20: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2019 2020 2021 Dec 31 Dec 31 Dec 31 Finance receivables, net (GAAP) $ 114.3 $ 105.0 $ 92.3 Net investment in operating leases (GAAP) 27.7 26.7 25.2 Total net receivables* $ 142.0 $ 131.7 $ 117.5 Held-for-sale receivables (GAAP) $ 1.5 $
Slide 21: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2019 2020 2021 Dec 31** Dec 31** Dec 31 Leverage Calculation Debt $ 140.0 $ 137.7 $ 117.7 Adjustments for cash (11.7) (18.5) (12.4) Adjustments for derivative accounting (0.5) (1.5) (0.4) Total adjusted debt $ 127.8 $ 117.7 $ 104.
Slide 22: Liquidity Sources ($B)
Liquidity Sources* ($B) 2019 2020 2021 Dec 31 Dec 31 Dec 31 Liquidity Sources Cash $ 11.7 $ 18.5 $ 12.4 Committed asset-backed facilities 36.6 38.1 37.1 Other unsecured credit facilities 3.0 2.5 2.7 Ford corporate credit facility allocation 3.0 - - Total liquidity sources $ 54.3 $ 59.1 $ 52.2 Utiliz
Slide 23: 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 24: Definitions And Calculations
Definitions And Calculations ABS capacity in excess of eligible receivables and other adjustments (as shown on the Liquidity Sources chart) Includes asset-backed capacity in excess of eligible receivables; cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), w
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