Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Credit Company — Q3 2020 Earnings Presentation
19 slides from Ford Mtr Co Del's earnings presentation, Oct 28, 2020
Slide 1: Q3 Earnings Review
Q3 Earnings Review October 28, 2020
Slide 2: Key Takeaways
Key Takeaways • Strong Q3 EBT of $1,123M (highest quarter since Q2 2005) • Balance sheet remains strong with liquidity at $31B; continue to access diverse funding sources • Portfolio is performing well – charge-offs and loss-to-receivables (LTR) ratio remained significantly below year-ago levels. Cr
Slide 3: Key Metrics
Key Metrics EBT YoY Bridge ($M) EBT ($M) $1,123 $831 $736 $630 $543 $30 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Distributions ($M) $650 $1,100 $475 $275 $275 $575 Q3 2019 Volume / Financing Credit Lease Exchange Other Q3 2020 U.S. Retail LTR Ratios (%) Mix Margin Loss Residual 0.63% 0.62% 0.
Slide 4: Q3 2020 Net Receivables Mix ($B)
Q3 2020 Net Receivables Mix ($B) Net Investment in Operating Leases Consumer Financing Non-Consumer Financing $131.5 $26.6 $106.0 Q3 2020 H / (L) 2019 SUV / CUV 58% 1 ppts. • Receivables declined $26.3 Truck 32 2 $9B YoY primarily reflecting Car 10 (3) lower wholesale receivables $76.3 • Operating l
Slide 5: U.S. Origination Metrics And Credit Loss Drivers
U.S. Origination Metrics And Credit Loss Drivers Retail & Lease FICO and Retail Repossessions (000) and Higher Risk Mix (%) Repossession Rate (%) • Disciplined and consistent Higher Risk Portfolio Mix (%) Repossession Rate (%) underwriting practices 747 750 753 743 739 738 • Portfolio quality eviden
Slide 6: Worldwide Credit Loss Metrics
Worldwide Credit Loss Metrics Charge-Offs ($M) and LTR Ratio (%) LTR Ratio (%) $107 $101 $89 $66 0.36% 0.35% $67 0.30% $45 0.24% 0.22% • Worldwide credit loss metrics 0.17% remained strong and significantly below year-ago Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 levels • Credit loss reserve r
Slide 7: U.S. Lease Metrics
U.S. Lease Metrics Lease Return Volume (000) Lease Placement Volume (000) and Return Rates (%) 24-Month Return Rate (%) 36-Month 39-Month / Other • Auction values rebounded 81 83 82 strongly in the third quarter, 75 75 9 11 12 70 70 71 67 65 up 7% from second quarter 11 12 58 52 and 5% YoY 56 9 68 6
Slide 8: Cumulative Maturities At September 30, 2020 ($B)
Cumulative Maturities At September 30, 2020* ($B) Assets Debt • Strong balance sheet is $153 $132 inherently liquid with $112 cumulative debt maturities $90 having a longer tenor than $84 $67 asset maturities $49 • As of September 30, $77B of $21 $153B assets are unencumbered Oct – Dec 2020 2021 202
Slide 9: Funding Structure – Managed Receivables ($B)
Funding Structure – Managed Receivables* ($B) 2019 2020 Dec 31 Sep 30 Term Debt (incl. Bank Borrowings) $ 73 $ 73 Term Asset-Backed Securities 57 53 Commercial Paper 4 1 • Well capitalized with a strong Ford Interest Advantage / Deposits 7 6 balance sheet; $31B in net liquidity Other 9 9 Equity 14 1
Slide 10: Public Term Funding Plan ($B)
Public Term Funding Plan* ($B) 2018 2019 2020 Through Actual Actual Forecast Oct 27 • Completed $20B of public issuance year-to-date Unsecured $ 13 $ 17 $ 8 - 11 $ 8 • Strong balance sheet and substantial liquidity provide Securitizations** 14 14 12 - 13 11 funding flexibility Total $ 27 $ 31 $ 21 -
Slide 11: 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 12: APPENDIX
APPENDIX EBT By Segment A1 Financing Shares And Contract Placement Volume 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 13: EBT By Segment ($M)
EBT By Segment* ($M) Q3 YTD H / (L) H / (L) 2020 2019 2020 2019 Results United States and Canada segment $ 932 $ 349 $ 1,399 $ (395) Europe segment 73 (5) 155 (150) All Other segment 14 (6) 38 (77) Total segments $ 1,019 $ 338 $ 1,592 $ (622) Unallocated other 104 49 104 (50) Earnings before taxes $
Slide 14: Financing Shares And Contract Placement Volume
Financing Shares And Contract Placement Volume 2019 2020 2019 2020 Share of Ford Sales* United States 57 % 55 % 52 % 63 % Canada 57 75 63 69 U.K. 40 40 39 42 Germany 44 39 47 39 China 35 40 34 37 Wholesale Share United States 76 % 74 % 76 % 74 % Canada 57 30 57 42 U.K. 100 100 100 100 Germany 93 93
Slide 15: Total Net Receivables Reconciliation To Managed Receivables ($B)
Total Net Receivables Reconciliation To Managed Receivables ($B) 2019 2019 2020 Sep 30 Dec 31 Sep 30 Finance receivables, net (GAAP) $ 112.8 $ 114.3 $ 104.9 Net investment in operating leases (GAAP) 27.5 27.7 26.6 Total net receivables* $ 140.3 $ 142.0 $ 131.5 Held-for-sale receivables (GAAP) $ - $
Slide 16: Financial Statement Leverage Reconciliation To Managed Leverage ($B)
Financial Statement Leverage Reconciliation To Managed Leverage* ($B) 2019 2019 2020 Sep 30 Dec 31 Sep 30 Leverage Calculation Debt $ 139.3 $ 140.0 $ 133.1 Adjustments for cash (14.3) (11.7) (14.6) Adjustments for derivative accounting (0.8) (0.5) (1.6) Total adjusted debt $ 124.2 $ 127.8 $ 116.9 Eq
Slide 17: Liquidity Sources ($B)
Liquidity Sources* ($B) 2019 2019 2020 Sep 30 Dec 31 Sep 30 Liquidity Sources Cash $ 14.3 $ 11.7 $ 14.6 Committed asset-backed facilities 35.2 36.6 37.4 Other unsecured credit facilities 2.6 3.0 2.4 Ford corporate credit facility allocation 3.0 3.0 - Total liquidity sources $ 55.1 $ 54.3 $ 54.4 Util
Slide 18: 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 supplemental
Slide 19: Definitions And Calculations
Definitions And Calculations Adjustments (as shown on the Liquidity Sources chart) • 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 future sales of receivable
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