Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q2 2022 Earnings Presentation
17 slides from Ford Mtr Co Del's earnings presentation, Jul 27, 2022
Slide 1: Q2 2022 Earnings Review
O2 2022 Earnings Review July 27, 2022 ie .-2022.Ford-Bronco Raptor ‘ . ee es
Slide 2: Forward-Looking Statements
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 cause actual results to differ materially fr
Slide 3: Auction Values, LTR Ratio and EBT
Auction Values (Per Unit) * U.S. Retail LTR Ratio (%) • Ford Pro FinSimple continues expanding its services to commercial customers: $30,890 $30,855 $31,445 $29,040 $28,625 Launched in U.K., Germany, France and Italy $23,255 0.22% Stood up a dedicated customer support function 0.07% 0.08% 0.05% • Ex
Slide 4: Receivables declined $2.1B YoY, primarily from lower volume due to supply constraints
Net Investment in Operating Leases Consumer Financing Non-Consumer Financing • Receivables declined $2.1B YoY, $115.6 primarily resulting from lower volume due to supply constraints and lower Ford Credit share, and exchange $23.4 $94.3 • Operating lease portfolio was 20% of total net receivables $23
Slide 5: Retail Repossessions and Repossession Rate
Retail & Lease FICO and Retail Repossessions (000) and Higher Risk Mix (%) Repossession Rate (%) Higher Risk Portfolio Mix (%) Repossession Rate (%) 748 751 754 749 748 747 6% 5% 5% 5% 5% 5% 5 4 • Disciplined and consistent 3 3 3 3 0.92% underwriting practices 0.63% 0.71% 0.71% 0.74% 0.69% • Portfol
Slide 6: Net Charge-Offs and LTR Ratio
Net Charge-Offs ($M) and LTR Ratio (%) LTR Ratio (%) • Worldwide credit loss metrics remain strong, reflecting continued low losses $41 $18 • Credit loss reserves continue to $9 $14 $17 decline with the release of remaining $1 0.08% 0.16% 0.04% 0.06% 0.07% COVID reserve 0.00% Q1 2021 Q2 2021 Q3 2021
Slide 7: Lease Return Volume and Return Rates
Lease Return Volume (000) Lease Placement Volume (000) and Return Rates (%) • Auction values up 8% YoY, and up 24-Month 36-Month Return Rate (%) sequentially 2%, reflecting continued 39-Month / Other strong demand for used vehicles and impact of supply constraints on new 62 51 57 55 vehicle producti
Slide 8: Cumulative Maturities of Assets and Debt
• Strong balance sheet is inherently Assets liquid with cumulative debt maturities Debt having a longer tenor than asset maturities $127 $111 • $65B of $127B assets are $98 unencumbered $75 $79 $61 $46 $36 Jul – Dec 2022 2023 2024 2025 & Beyond Unsecured Long-Term Debt Maturities in Each Period $6 $
Slide 9: Funding Structure and Net Liquidity
Dec 31 Jun 30 Term Unsecured Debt $ 59.4 $ 49.9 Term Asset-Backed Securities 45.4 47.1 Ford Interest Advantage / Retail Deposits 12.9 12.5 • Well capitalized with a strong balance Other (0.2) 1.9 sheet; $25B in net liquidity Equity 12.4 12.0 • Funding is diversified across platforms and markets Adju
Slide 10: Public Term Funding Plan
• Completed $10B of public issuance in 2022 • Strong balance sheet and substantial liquidity provide funding flexibility 2020 2021 2022 Through Actual Actual Forecast July 26 Unsecured $ 14 $ 5 $ 4-7 $ 4 Securitizations* 13 9 8 - 10 6 Total $ 27 $ 14 $ 12 - 17 $ 10 * Includes Rule 144A offerings 10
Slide 11: 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 assumptions by our management and involve a number of r
Slide 12: Appendix
EBT By Segment A2 Financing Shares And Contract Placement Volume A3 Liquidity Sources A4 Definitions And Calculations A5
Slide 13: EBT By Segment
Q2 YTD H / (L) H / (L) 2022 2021 2022 2021 Results United States and Canada segment $ 698 $ (768) $ 1,481 $ (981) Europe segment 97 16 166 19 All Other segment (17) (39) (191) (198) Total segments $ 778 $ (791) $ 1,456 $ (1,160) Unallocated other 125 71 201 232 Earnings before taxes $ 903 $ (720) $
Slide 14: Financing Shares and Contract Placement Volume
Q2 YTD 2021 2022 2021 2022 Share of Ford Sales* United States 47 % 37 % 47 % 40 % Canada 74 68 68 65 U.K. 37 35 36 35 Germany 41 38 39 35 China 45 45 43 44 Wholesale Share United States 71 % 73 % 72 % 73 % Canada 9 7 11 8 U.K. 100 100 100 100 Germany 91 87 91 90 China 68 70 67 67 Contract Placement
Slide 15: Liquidity Sources
2021 2021 2022 Jun 30 Dec 31 Jun 30 Liquidity Sources Cash $ 15.3 $ 12.4 $ 7.8 Committed asset-backed facilities 38.4 37.1 34.3 Other unsecured credit facilities 2.6 2.7 2.5 Total liquidity sources $ 56.3 $ 52.2 $ 44.6 Utilization of Liquidity Securitization & restricted cash $ (8.1) $ (3.9) $ (2.7)
Slide 16: Definitions and Calculations
ABS capacity in excess of eligible receivables and other adjustments (as shown in the Liquidity Sources table) Includes asset-backed capacity in excess of eligible receivables; cash related to the Ford Credit Revolving Extended Variable -utilization program (“FordREV”), which can be accessed through
Slide 17: Definitions and Calculations (continued)
Securitization & restricted cash (as shown in the Liquidity Sources table) Securitization cash is cash held for the benefit of the securitization investors (for example, a reserve fund). Restricted ca sh is primarily held to meet certain local government and regulatory reserve requirements and cash
Ford Motor Credit Company — Q2 2022 Earnings Presentation on 6ix