Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q1 2019 Earnings Presentation
23 slides from Ford Mtr Co Del's earnings presentation, Apr 25, 2019
Slide 1: 1Q 2019 Earnings Review
1Q 2019 Earnings Review April 25, 2019
Slide 2: Key Takeaways
Key Takeaways • 1Q 2019 EBT of $801 million – the best quarterly result since 2010 • Loss metrics reflect healthy consumer credit conditions • 1Q 2019 auction values down 2% YoY; continue to expect FY to be down about 4% YoY • Funding plan well positioned, diversified across platforms and markets •
Slide 3: Key Metrics
Key Metrics FIRST QUARTER 2018 2019 H / (L) • Strong EBT up 25% YoY, the Net Receivables (Bils) $ 148 $ 147 (1) % best quarterly result since 2010 Managed Receivables* (Bils) $ 156 $ 155 - % Loss-to-Receivables** (LTR) 61 bps 55 bps (6) bps • Receivables down slightly from Auction Values*** $ 17,510
Slide 4: 1Q 2019 EBT YoY Bridge (Mils)
1Q 2019 EBT YoY Bridge (Mils) • Ford Credit EBT at $801M, up $160M YoY • Higher EBT reflects incremental benefit from: Change in Reserves $ 78 Charge-offs (18) - Lower supplemental depreciation on vehicles in Supplemental Depreciation $ 257 Ford Credit’s lease portfolio Residual Losses (131) - Lower
Slide 5: EBT By Segment
EBT By Segment 1Q H / (L) 2019 2018 Results (Mils) Americas segment $ 644 $ 129 Europe segment 116 5 Asia Pacific segment 34 (12) Total segments $ 794 $ 122 Unallocated other* 7 38 Earnings before taxes $ 801 $ 160 (Provision for) / Benefit from income taxes (198) (258) Net income $ 603 $ (98) Contr
Slide 6: Americas Financing Shares And Contract Placement Volume
Americas Financing Shares And Contract Placement Volume 1Q 2018 2019 Financing Shares (%) Retail Installment and Lease Share of Ford Retail Sales (excl. Fleet) United States 61 % 50 % Canada 70 67 Wholesale Share United States 76 % 76 % Canada 60 57 Contract Placement Volume - New and Used Retail /
Slide 7: Europe Financing Shares And Contract Placement Volume
Europe Financing Shares And Contract Placement Volume 1Q 2018 2019 Financing Shares (incl. Fleet) (%) Retail Installment and Lease Share of Total Ford Sales U.K. 37 % 37 % Germany 48 50 Total Europe Segment 36 36 Wholesale Share U.K. 100 % 100 % Germany 94 93 Total Europe Segment 98 98 Contract Plac
Slide 8: Asia Pacific Financing Shares And Contract Placement Volume
Asia Pacific Financing Shares And Contract Placement Volume 1Q 2018 2019 Financing Shares (incl. Fleet) (%) Retail Installment Share of Total Ford Sales China 35 % 33 % India 9 11 Wholesale Share China 61 % 59 % India 38 36 Contract Placement Volume - New and Used Retail (000) China 50 26 India 2 2
Slide 9: 1Q 2019 Net Receivables Mix (Bils)
1Q 2019 Net Receivables Mix (Bils) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $146.9 $27.6 $115.8 1Q 2019 H / (L) 2018 • Operating lease portfolio was (Pct.) (Ppts.) 19% of total net receivables $27.1 SUV / CUV 57 2 Truck 28 4 Car 15 (6) • U.S. and Canada represent
Slide 10: U.S. Origination Metrics
U.S. Origination Metrics Retail and Lease FICO and Higher Risk Mix (Pct) Higher Risk Portfolio Mix Average Placement FICO 750 747 747 743 745 741 • Disciplined and consistent underwriting practices 6% 6% 6% 6% 6% 6% • Portfolio quality evidenced by FICO scores and steady risk 4Q17 1Q18 2Q18 3Q18 4Q1
Slide 11: U.S. Retail Credit Loss Drivers
U.S. Retail Credit Loss Drivers Over-60-Day Delinquencies (excl. Bankruptcies) Repossessions (000) and Repo. Rate (Pct) Repo. Rate Repossessions 1.41% 1.34% 1.26% 1.26% 1.24% 1.17% 0.15% 0.14% 0.14% 0.13% 0.13% 0.12% • Delinquencies and repossessions remained low 8 7 7 7 7 6 • Severity flat YoY 4Q17
Slide 12: Worldwide Credit Loss Metrics
Worldwide Credit Loss Metrics Charge-Offs (Mils) and LTR Ratio (Pct) LTR Ratio Charge-Offs 0.43% 0.42% 0.38% 0.36% 0.31% 0.25% • Worldwide credit loss metrics $112 $93 $76 $127 $129 $109 remain strong 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 • Credit loss reserve based on Credit Loss Reserve (Mils) and histori
Slide 13: U.S. Lease Origination Metrics
U.S. Lease Origination Metrics Lease Placement Volume (000) 24-Month 39-Month / Other 36-Month 104 93 95 93 82 12 83 12 10 9 8 9 58 75 48 65 80 75 23 17 26 9 5 9 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 • Lease share flat YoY and below industry, reflecting Ford sales Lease Share of Retail Sales (Pct) mix Ford
Slide 14: U.S. Lease Residual Performance
U.S. Lease Residual Performance Lease Return Volume (000) and Return Rates (Pct) Return Rates Return Volume 79% 80% 78% 78% 77% 78% 61 68 71 71 71 74 • Auction values down 2% YoY; 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 continue to expect FY to be down about 4% YoY Off-Lease Auction Values (at 1Q19 Mix) 36-Mo
Slide 15: Funding Structure – Managed Receivables
Funding Structure – Managed Receivables* (Bils) 2017 2018 2019 Dec 31 Dec 31 Mar 31 Term Debt (incl. Bank Borrowings) $ 75 $ 70 $ 73 Term Asset-Backed Securities 53 60 60 Commercial Paper 5 4 4 • Funding is diversified across Ford Interest Advantage / Deposits 5 6 6 platforms and markets Other 9 10
Slide 16: Public Term Funding Plan (Bils)
Public Term Funding Plan* (Bils) 2017 2018 2019 Through Actual Actual Forecast Apr 24 Unsecured ― Currency of issuance (USD Equivalent) USD $ 10 $ 6 $ 9 - 11 $ 4 CAD 2 1 1-2 1 EUR / GBP 3 4 3-4 2 Other 1 1 1 - Total unsecured $ 16 $ 13 $ 14 - 18 $ 8 Securitizations 15 14 13 - 15 6 Total public $ 32
Slide 17: 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 18: Appendix
APPENDIX Total Net Receivables Reconciliation to Managed Receivables A1 Financial Statement Leverage Reconciliation to Managed Leverage A2 Liquidity Sources A3 Non-GAAP Financial Measures that Supplement GAAP Measures A4 Definitions and Calculations A5
Slide 19: Total Net Receivables Reconciliation To Managed Receivables (Bils)
Total Net Receivables Reconciliation To Managed Receivables (Bils) 2017 2018 2018 2019 Dec 31 Mar 31 Dec 31 Mar 31 Finance receivables, net (GAAP) $ 116.0 $ 121.0 $ 118.8 $ 119.3 Net investment in operating leases (GAAP) 26.7 26.7 27.4 27.6 Total net receivables* $ 142.7 $ 147.7 $ 146.3 $ 146.9 Unea
Slide 20: Financial Statement Leverage Reconciliation To Managed Leverage
Financial Statement Leverage Reconciliation To Managed Leverage* (Bils) 2018 2018 2019 Mar 31 Dec 31 Mar 31 Leverage Calculation Total debt $ 142.0 $ 140.1 $ 142.9 Adjustments for cash (11.8) (10.2) (12.8) Adjustments for derivative accounting 0.3 0.2 (0.1) Total adjusted debt $ 130.5 $ 130.1 $ 130.
Slide 21: Liquidity Sources (Bils)
Liquidity Sources* (Bils) 2018 2018 2019 Mar 31 Dec 31 Mar 31 Liquidity Sources Cash $ 11.8 $ 10.2 $ 12.8 Committed ABS facilities 33.9 35.4 35.2 Other unsecured credit facilities 3.4 3.0 3.3 Ford corporate credit facility allocation 3.0 3.0 3.0 Total liquidity sources $ 52.1 $ 51.6 $ 54.3 Utilizati
Slide 22: 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 supplementa
Slide 23: Definitions And Calculations
Definitions And Calculations Adjustments (as shown on the Liquidity Sources chart) • Include certain adjustments for asset-backed capacity in excess of eligible receivables and cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can be accessed through
Ford Motor Credit Company — Q1 2019 Earnings Presentation on 6ix