Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Debt Investor Presentation (April 2004)
27 slides from Ford Mtr Co Del's debt investor presentation, Apr 21, 2004
Slide 1: First Quarter 2004 Fixed Income Presentation
FIRST QUARTER 2004 FIXED INCOME PRESENTATION April 21, 2004 EXHIBIT 99.9
Slide 2: First Quarter Results
Earnings Per Share Net Income $0.94 $0.49 Continuing Ops. -- Excl. Special Items 0.96 0.51 After-Tax Profits (Mils.) Net Income $1,952 $1,056 Continuing Ops. -- Excl. Special Items 1,983 1,082 Pre-Tax Profits (Mils.) Incl. Special Items $2,889 $1,549 Excl. Special Items 2,901 1,561 Revenue (Bils.) T
Slide 3: 2004 Planning Assumptions and Operational Metrics
2004 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Planning Assumptions Industry Volume (SAAR) -- U.S. 17.0 million units 16.8 17.0 -- Europe 16.9 million units 17.1 17.0 Operational Metrics Quality Improve in all regions On track On track Market Share Flat or improve in all regions Mixed Mixed Autom
Slide 4: 2004 Financial Milestones
2004 FINANCIAL MILESTONES Pre-Tax Income Automotive Americas North America $ 1.5 - $1.7 Better South America (0.1) - 0 On track International Europe (0.2) - (0.1 ) On track P.A.G. 0.5 - 0.6 At risk Asia-Pacific 0 - 0.1 On track Total Automotive $ 0.9 - $1.1 On track Financial Services 2.6 - 2.7 Bett
Slide 5: Ford Credit Results and Metrics - First Quarter
FORD CREDIT RESULTS AND METRICS -- FIRST QUARTER Receivables (Bils.) On-Balance Sheet $119 $130 Securitized Off-Balance Sheet 73 49 Managed $192 $179 Credit Losses (Mils.) On-Balance Sheet $493 $335 Managed 686 493 Loss-to-Receivables Ratio On-Balance Sheet 1.61 % 1.11 % Managed - U.S. Retail and Le
Slide 6: Credit Loss Metrics
Q4 Q1 Q2 Q3 Q4 Q104 Worldwide Managed 0.0156 0.0142 0.0132 0.0145 0.0185 0.011 Worldwide Owned 0.0192 0.0161 0.015 0.0152 0.0204 0.0111 Managed Reserves as Pct. Of EOP Receivables 0.019 0.0195 Q4 Q1 Q2 Q3 Q4 Q104 Ford Credit U.S. Managed LTR 0.0187 0.0185 0.0172 0.0186 0.0215 0.0151 Ford Credit U.S.
Slide 7: Credit Loss Drivers - Ford Credit
Q4 Q1 Q2 Q3 Q4 Q104 Worldwide Owned 53 51 45 51 53 46 CREDIT LOSS DRIVERS - FORD CREDIT U.S. RETAIL & LEASE* Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1Q04 NON-BANKRUPT 0.0048 0.0043 0.0029 0.0038 0.0035 0.0042 0.0033 0.0038 0.0027 0.0021 Over-60-Day Delinquencies Repossessions (000) Q4 Q1 Q2 Q3 Q4 Q104 Worldwide
Slide 8: Residual Loss Metrics
Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 RR 24-Month 0.75 0.79 0.76 0.72 0.68 0.65 RR 36-Month 0.64 0.73 0.72 0.69 0.66 0.66 RESIDUAL LOSS METRICS Auction values in the First Quarter were up $1,020 for 24-month leases and $680 for 36-month leases from a year ago, reflecting improved used vehi
Slide 9: 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+ Negative 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 10: Automotive Debt Maturities
AUTOMOTIVE DEBT MATURITIES 1 Yr. 1-5 Yrs. 6-10 Yrs. 11-15 Yrs. 16-20 Yrs. 21-25 Yrs. 26-30 Yrs. 31-50 Yrs. 50+ Yrs. Senior Debt $15 Billion 0.9 2.1 0.5 0.5 0.2 3.3 9.7 1.7 0.5 Subordinated Debt $5.8 Billion 0 0 Maturing Debt More Than 50 Years As of March 31, 2004 (Bils.) Less Than 1 Year 1-5 Years
Slide 11: Ford Credit Funding Structure
2004 Equity 12 Term Debt/Other 127 Securitization 28 ABS CP 17 Commercial Paper 7 Overborr -12 FORD CREDIT FUNDING STRUCTURE 2001 2002 2003 2004 Equity 13 14 12.7 11 Term Debt/Other 132 129 134 115 Securitization 34 36 30 28 ABS CP 12 17 15 20 Commercial Paper 16 8 6 7 Overborrow -3 -7 -16 -10 Equit
Slide 12: Ford Credit Public Term Funding Plan
Debt Institutional $ 11 $ 15 $ 2 - 4 $1 $ 1 - 3 Retail 3 4 4 - 6 1 3 - 5 Total Debt $ 14 $ 19 $ 8 - 10 $2 $ 6 - 8 Securitization* 17 11 8 - 12 1 7 - 11 Total $ 31 $ 30 $ 16 - 22 $3 $ 13 - 19 FORD CREDIT PUBLIC TERM FUNDING PLAN 2002 Actual (Bils.) Transaction Type * Reflects new bonds issued; exclud
Slide 13: Ford Credit Liquidity Programs
Unsecured CP Bank Lines FCAR Motown Conduits Total Back-up liquidity 6.8 1.2 10.2 7 25.2 Global Bank Lines Other FCAR Motown Unused Conduits Cash Total Back-up liquidity 13.3 1.3 18.2 0.4 8.3 12.5 54 FORD CREDIT LIQUIDITY PROGRAMS Liquidity Global Other Bank FCAR Motown Unused Cash & Cash Total Line
Slide 14: Ford Credit Liquidation of Assets / Liabilities
Under 3 Months Under 6 Months Under 1 Year Under 2 Years Total Assets 58 69 88 113 136 Liabilities 18 27 46 70 118 FORD CREDIT LIQUIDATION OF ASSETS / LIABILITIES Cumulative Maturities - As of March 31, 2004 -- (Billions) U.S., Europe, and Canada only Under 3 Months Under 6 Months Under 1 Year Under
Slide 15: First Quarter 2004 Summary
FIRST QUARTER 2004 SUMMARY Ford Earnings per share of $0.96 from continuing operations, excluding special items, and net income of $0.94 per share Strong profit improvement in North America Best-ever quality Record unit revenue and positive net pricing Strong F-Series and SUV sales South America pro
Slide 16: Safe Harbor
SAFE HARBOR Greater price competition resulting from currency fluctuations, industry overcapacity or other factors; A significant decline in industry sales, particularly in the U.S. or Europe, resulting from slowing economic growth, geo- political events or other factors; Lower-than-anticipated mark
Slide 17: Appendix
APPENDIX
Slide 18: Calculation of Diluted Earnings Per Share
CALCULATION OF DILUTED EARNINGS PER SHARE Net Income (Mils.) Numerator After-Tax Profit $1,952 $1,983 Impact on Income from assumed conversion 49 49 of convertible preferred securities Income for diluted EPS $2,001 $2,032 Denominator Average shares outstanding 1,832 Net issuable / (returnable) share
Slide 19: Income from Continuing Operations Excluding Special Items Compared with Net Income
INCOME FROM CONTINUING OPERATIONS EXCLUDING SPECIAL ITEMS COMPARED WITH NET INCOME After-Tax Profit (Mils.) First Quarter 2004 Earnings Per Share* * Earnings per share from continuing operations is calculated on a basis that includes pre-tax profit, provision for taxes, and minority interest. See Ap
Slide 20: 2004 First Quarter Automotive Cash
2004 FIRST QUARTER AUTOMOTIVE CASH* First Quarter (Bils.) Cash, Marketable and Loaned Securities, Short-Term VEBA Assets March 31, 2004 $26.5 December 31, 2003 25.9 Change in Gross Cash $0.6 Operating-Related Cash Flow Automotive Pre-Tax Profits $ 1.8 Capital Spending (1.2 ) Depreciation and Amortiz
Slide 21: 2003-2004 First Quarter Pre-Tax Results
2003 - 2004 FIRST QUARTER PRE-TAX RESULTS North America $1,236 $1,962 $ -- $ -- $1,236 $1,962 South America (31 ) 15 -- -- (31 ) 15 Total Americas $1,205 $1,977 $ -- $ -- $1,205 $1,977 International Europe $ (247 ) $ (24 ) $ -- $(29 ) $ (247 ) $ 5 P.A.G. (88 ) 20 -- -- (88 ) 20 Asia Pacific (25 ) 28
Slide 22: Automotive Gross Cash Reconciliation to GAAP
AUTOMOTIVE GROSS CASH RECONCILIATION TO GAAP Cash and Cash Equivalents $ 5.4 $ 4.7 $ (0.7 ) $7.1 Marketable Securities 10.8 8.4 (2.4 ) 17.3 Loaned Securities 5.7 9.3 3.6 - Total Cash / Market. Sec. $21.9 $22.4 $0.5 $24.4 Short-Term VEBA 4.0 4.1 0.1 2.2 Gross Cash $25.9 $26.5 $ 0.6 $26.6 Mar. 31 2004
Slide 23: Automotive Operating Related Cash Flow Reconciliation to GAAP
AUTOMOTIVE OPERATING RELATED CASH FLOW RECONCILIATION TO GAAP Cash Flow from Operating Activities before Securities Trading* $ 2.6 Items Included in Operating-Related Cash Flow Capital Expenditures $ (1.2 ) Net Transactions Between Automotive and Financial Services Sectors** (0.1 ) Other (0.2 ) Tota
Slide 24: Ford Credit Key Metric Definitions
FORD CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below. Information about the impact of o
Slide 25: Ford Credit Ratio Definitions
FORD CREDIT RATIO DEFINITIONS In addition to evaluating Ford Credit's financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Leverage: Total Debt - - Financial Sta
Slide 26: Pre-Tax Income Effect of Receivables Sales Activity
PRE-TAX INCOME EFFECT OF RECEIVABLES SALES ACTIVITY 2004 (Mils.) First Quarter 2003 (Mils.) Net Gain on Sales of Receivables $ 233 $ 61 Servicing Fees 197 119 Interest Income from Retained Securities 210 139 Excess Spread and Other 251 230 Investment and Other Income Related to Sales of Receivables
Slide 27: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Total Debt $137.3 $142.4 Total Securitized Receivables Outstanding** 73.3 48.4 Retained Interest in Securitized Receivables** (18.1 ) (13.4 ) Adjustments for Cash and Cash Equivalents (11.7 ) (12.5 ) Adjustments for SFAS