Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q3 2019 Earnings Presentation
17 slides from Ford Mtr Co Del's earnings presentation, Oct 23, 2019
Slide 1: Q3 2019 Earnings Review
Q3 2019 Earnings Review October 23, 2019
Slide 2: Key Metrics
Key Metrics EBT YoY Bridge ($M) EBT ($M) and Distributions ($M) Distributions $1,100 $801 $831 $645 $678 $663 $736 $600 $660 $675 $650 $450 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 YoY EBT 4% 13% 9% 25% 29% 9% Q3 2018 Volume / Financing Credit Lease Exchange Other Q3 2019 U.S. Retail LTR Rati
Slide 3: Q3 2019 Net Receivables Mix ($B)
Q3 2019 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $140.3 $27.5 $111.8 • Operating lease portfolio was Q3 2019 H / (L) 2018 SUV / CUV 57% 2 ppts. 20% of total net receivables Truck 30 3 $27.0 Car 13 (5) • U.S. and Canada represent 98% of ope
Slide 4: U.S. Origination Metrics and Credit Loss Drivers
U.S. Origination Metrics and Credit Loss Drivers Retail & Lease FICO and Retail Repossessions (000) and Higher Risk Mix (%) Repossession Rate (%) Higher Risk Portfolio Mix (%) Repossession Rate (%) • Disciplined and consistent 745 747 747 747 750 underwriting practices 741 7 7 7 7 6% 6% 6% 6% 6% 6%
Slide 5: Worldwide Credit Loss Metrics
Worldwide Credit Loss Metrics Charge-Offs ($M) and LTR Ratio (%) LTR Ratio (%) $127 $129 $109 0.43% 0.42% $89 $76 0.36% $66 0.30% 0.25% • Worldwide credit loss metrics 0.22% remain strong Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 • Credit loss reserve based on Credit Loss Reserve ($M) and hist
Slide 6: 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 104 12 95 93 10 9 83 81 83 9 9 11 71 71 71 74 75 70 75 80 75 48 • Lease share below industry, 56 68 78% 77% 78% 80% 78% reflecting Ford sales mix 76% 17 2
Slide 7: Funding Structure – Managed Receivables ($B)
Funding Structure – Managed Receivables* ($B) 2018 2019 Dec 31 Sep 30 Term Debt (incl. Bank Borrowings) $ 70 $ 74 Term Asset-Backed Securities 60 55 Commercial Paper 4 4 • Funding is diversified across Ford Interest Advantage / Deposits 6 7 platforms and markets Other 10 9 • Well capitalized with a
Slide 8: Public Term Funding Plan ($B)
Public Term Funding Plan* ($B) 2017 2018 2019 Through Actual Actual Forecast Oct 22 Unsecured ― Currency of issuance (USD Equivalent) USD $ 10 $ 6 $ 9 - 10 $ 9 CAD 2 1 1 1 EUR / GBP 3 4 4-5 4 Other 1 1 1 1 Total unsecured $ 16 $ 13 $ 15 - 17 $ 14 Securitizations** 15 14 13 - 14 12 Total public $ 32
Slide 9: 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 10: Appendix
APPENDIX Financing Shares And Contract Placement Volume A1 EBT By Segment A2 Total Net Receivables Reconciliation to Managed Receivables A3 Financial Statement Leverage Reconciliation to Managed Leverage A4 Liquidity Sources A5 Non-GAAP Financial Measures that Supplement GAAP Measures A6 Definitions
Slide 11: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume Q3 YTD 2018 2019 2018 2019 Share of Ford Sales* United States 59 % 57 % 59 % 52 % Canada 69 57 73 63 U.K. 36 40 37 39 Germany 47 44 50 47 Total Europe Segment 38 37 37 37 China 37 35 34 34 Wholesale Share United States 76 % 76 % 76 % 76 % Canada 57 57 5
Slide 12: EBT By Segment
EBT By Segment Q3 YTD H / (L) H / (L) 2019 2018 2019 2018 Results ($M) Americas Segment $ 584 $ 28 $ 1,836 $ 217 Europe Segment 82 (7) 314 11 Asia Pacific Segment 15 2 64 (22) Total Segments $ 681 $ 23 $ 2,214 $ 206 Unallocated other* 55 35 154 198 Earnings before taxes $ 736 $ 58 $ 2,368 $ 404 (Pro
Slide 13: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2018 2018 2019 2019 2019 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Finance receivables, net (GAAP) $ 116.0 $ 118.8 $ 119.3 $ 115.7 $ 112.8 Net investment in operating leases (GAAP) 27.6 27.4 27.6 27.7 27.5 Total net receivables* $ 143.6 $ 146
Slide 14: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2018 2018 2019 2019 2019 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Leverage Calculation Debt $ 138.2 $ 140.1 $ 142.9 $ 141.5 $ 139.3 Adjustments for cash (12.1) (10.2) (12.8) (14.1) (14.3) Adjustments for derivative accounting 0.6 0.2 (0
Slide 15: Liquidity Sources ($B)
Liquidity Sources* ($B) 2018 2018 2019 2019 2019 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Liquidity Sources Cash $ 12.1 $ 10.2 $ 12.8 $ 14.1 $ 14.3 Committed asset-backed facilities 32.0 35.4 35.2 35.7 35.2 Other unsecured credit facilities 3.0 3.0 3.3 2.9 2.6 Ford corporate credit facility allocation 3.0
Slide 16: 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 17: 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
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