Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Investor Presentation (December 2013)
22 slides from Ford Mtr Co del's investor presentation, Dec 18, 2013
Slide 1: 2013 Update and 2014 Outlook
2013 UPDATE AND 2014 OUTLOOK 2013 THIRD QUARTER Bob Shanks EARNINGS REVIEW Chief Financial Officer OCTOBER 24, 2013 December 18, 2013 (PRELIMINARY RESULTS)
Slide 2: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 3: 2013 Full Year Highlights
TOTAL COMPANY 2013 FULL YEAR HIGHLIGHTS Top Line Growth Product EcoSport Fiesta Atlas Concept Industry Market Revenue Volume Share Edge Concept Lincoln MKC Mustang Europe Transformation Capital Strategy Shareholder Renew Product Actions Products Pensions Growth Capital In Excess Of Sustainable Targe
Slide 4: 2013 Planning Assumptions and Key Metrics
TOTAL COMPANY 2013 PLANNING ASSUMPTIONS AND KEY METRICS Memo: 2012 2013 2013 Full Year Full Year First Nine Results Plan Outlook Months Planning Assumptions (Mils.) Industry Volume* -- U.S. 14.8 15.0 - 16.0 15.9 15.8 -- Europe** 14.0 13.0 - 14.0 13.7 13.6 -- China 19.0 19.5 - 21.5 21.9 21.6 Operatio
Slide 5: 2013 Profit Outlook
TOTAL COMPANY 2013 PROFIT OUTLOOK* 2013 2012 Updated Results Prior Outlook Outlook Automotive (Mils.) North America $ 8,343 Higher Than 2012 On Track Operating Margin About 10% 9.5% - 10% South America 213 Breakeven to Profitable About Breakeven Europe (1,753) Better Than 2012 On Track Asia Pacific
Slide 6: Pension Update
PENSION UPDATE • Underfunded status of global pension plans at year-end 2013 projected at about $10 billion*, nearly cutting in half the gap at the end of last year • Projected year-end 2013 U.S. asset mix at about 70% fixed income compared with long-term target of 80% • U.S. salaried retiree volunt
Slide 7: Business Environment Overview
BUSINESS ENVIRONMENT OVERVIEW Global • Global economic growth at about 2% for 2013; leading economic indicators suggest acceleration to a range of 2.5% to 3% for 2014 • Monetary policies supportive of improving economic activity, particularly in mature markets Americas • U.S. economic growth around
Slide 8: 2014 Areas of Focus
2014 AREAS OF FOCUS • One Ford Plan to grow the business profitably • Quality • Global product launches • Sustaining North America’s strong business performance • Continuing new product rollout in South America; managing risks in Venezuela and Argentina • Continuing to execute Europe’s transformatio
Slide 9: 2014 Product Launches Compared with 2013
2014 PRODUCT LAUNCHES COMPARED WITH 2013 -- ALL NEW AND SIGNIFICANTLY REFRESHED PRODUCTS* Global North America South America Europe Asia Pacific Africa 23 16 12 11 10 8 8 8 5 4 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 * Regions not additive to global total Major Increase In Product Launches
Slide 10: South America
SOUTH AMERICA VENEZUELA A Very Volatile And Difficult Business Environment In Venezuela SLIDE 9
Slide 11: Europe Transformation Plan
EUROPE TRANSFORMATION PLAN Product Sustainable, Profitable Growth Brand Cost Europe Transformation Continuing… About $400 Million Of Restructuring Costs In 2014 SLIDE 10
Slide 12: Asia Pacific Capacity Expansion
ASIA PACIFIC CAPACITY EXPANSION Previously Launched CHINA Launching 2014 Launching 2015 INDIA Hangzhou Assembly JMC Xiaolan Engine Sanand Engine Sanand Assembly Chongqing Transmission THAILAND Chongqing Assembly #3 Continuing To Invest In Asia Pacific, Including Capacity Expansion During The Next Tw
Slide 13: 2014 Pre-Tax Profit Outlook
2014 PRE-TAX PROFIT OUTLOOK Compared With 2013 Automotive* North America South America Europe Asia Pacific Net Interest Expense Ford Credit * Middle East and Africa is expected to be about breakeven 2014 Outlook Compared To 2013 Varies By Business Unit SLIDE 12
Slide 14: 2014 Planning Assumptions and Key Metrics
2014 PLANNING ASSUMPTIONS AND KEY METRICS 2014 Full Year Plan Planning Assumptions (Mils.) Industry Volume* -- U.S. 16.0 - 17.0 -- Europe** 13.5 - 14.5 -- China*** 22.5 - 24.5 Key Metrics (Compared with 2013) Automotive: - Revenue (Bils.) - Operating Margin**** - Operating-Related Cash Flow (Bils.)
Slide 15: Mid-Decade Outlook
MID-DECADE OUTLOOK Mid-Decade Outlook* Assessment Wholesale Volumes About 8 Million On Track Revenue / Pricing Improving On Track Automotive Operating Margins – North America 8% - 10% On Track – Global 8% - 9% At Risk Ford Credit Return on Equity** High Single Digits On Track Capital Spending** Abou
Slide 16: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 17: Risk Factors
RISK FACTORS 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 assumptions by our management and involve
Slide 18: Appendix
APPENDIX
Slide 19: 2013 Income from Continuing Operations
TOTAL COMPANY 2013 INCOME FROM CONTINUING OPERATIONS First Nine Months 2012 2013 (Mils.) (Mils.) Automotive North America $ 6,471 $ 7,079 South America 68 92 Europe (1,021) (1,038) Asia Pacific Africa (116) 309 Other Automotive (408) (469) Total Automotive (excl. special items) $ 4,994 $ 5,973 Speci
Slide 20: Special Items
TOTAL COMPANY SPECIAL ITEMS First Nine Months 2012 2013 (Mils.) (Mils.) Personnel and Dealer-Related Items Separation-related actions* $ (290) $ (700) Mercury discontinuation / Other dealer actions (47) - Total Personnel and Dealer-Related Items $ (337) $ (700) Other Items U.S. pension lump sum prog
Slide 21: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP First Nine Months 2012 2013 (Mils.) (Mils.) Interest expense (GAAP) $ (571) $ (617) Interest income (GAAP) 220 125 Subtotal $ (351) $ (492) Adjusted for items included / excluded from net interest Include: Gains / (Losses) on cash equiv. and mark
Slide 22: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP First Nine Months 2012 2013 (Bils.) (Bils.) Cash flows from operating activities of continuing operations (GAAP) $ 4.1 $ 6.4 Items included in operating-related cash flows Capital expenditures (3.6) (4.6) Proceeds from the exercis
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