Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (July 2015)
26 slides from Ford Mtr Co del's debt investor presentation, Jul 28, 2015
Slide 1: 2Q 2015 Fixed Income Review
Go Further 2Q 2015 FIXED INCOME REVIEW JULY 28, 2015
Slide 2: 2Q 2015 Operating Highlights
FORD CREDIT 2Q 2015 OPERATING HIGHLIGHTS* Another strong performance with pre-tax profit of $506 million and net income of $340 million Launched a car-sharing pilot in six U.S. cities and London as part of the Ford Smart Mobility initiatives Managed receivables of $118 billion, up $7 billion f
Slide 3: 2Q 2015 Pre-Tax Results Compared with 2014
FORD CREDIT 2Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $72 $506 $434 $106 $17 $37 $(8) $(31) $(49) Volume / Financing Credit Lease 2Q 2014 2Q 2015 Mix Margin Loss Residual Exchange Other B / (W) 1Q 2015 $23 $24 $38 $(6) $(5) $(6) $(22) Receivables (Bils) Net* $107 $113 Managed** 111 118 * Net
Slide 4: Worldwide Credit Loss Metrics
FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils) Loss-to-Receivables Ratio (LTR) $76 0.27% $62 0.22% $48 $50 0.17% 0.17% $33 0.12% 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Retail and Lease $31 $48 $77 $65 $49 Credit Loss Reserve (Mils) and Reserve a
Slide 5: U.S. Retail and Lease Credit Loss Drivers
FORD CREDIT U.S. RETAIL AND LEASE CREDIT LOSS DRIVERS Over-60-Day Delinquencies* Repossessions (000) Repo. Ratio 1.07% 1.06% 0.98% 1.00% 0.15% 0.14% 0.89% 0.12% 0.13% 0.10% 6 7 8 7 6 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 New Bankruptcy Filings (000) 4 4 3 3
Slide 6: U.S. Lease Residual Performance
FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 2Q 2015 Mix) 24-Month 36-Month 24-Month 39-Month / Other $20,105 $20,195 $19,385 50 $18,825 $18,395 44 44 42 35 $18,415 30 24 23 21 $17,800 $18,190 20 $17,085 $16,940 13 12 15 16 9 36-Month 7 8 6 6 5 2Q 2014 3Q
Slide 7: 2Q 2015 Funding Highlights
FORD CREDIT 2Q 2015 FUNDING HIGHLIGHTS Funding plan on track with about $17 billion of public term funding completed year-to-date, including about $7 billion in the Second Quarter – Unsecured debt totaling about $3 billion – ABS transactions totaling about $4 billion Ford extended and increased
Slide 8: Public Term Funding Plan
FORD CREDIT PUBLIC TERM FUNDING PLAN 2015 2013 2014 YTD Actual Actual Forecast Actual* (Bils) (Bils) (Bils) (Bils) Unsecured $ 11 $ 13 $ 12 - 15 $ 8 Securitizations** 14 15 13 - 16 9 Total Public $ 25 $ 28 $ 25 - 31 $ 17 Mustang * Includes transactions settled through July 27, 2015 ** Includes Rule
Slide 9: Funding Structure – Managed Receivables
FORD CREDIT FUNDING STRUCTURE – MANAGED RECEIVABLES (BILS) $123 – 128 $118 ~$2 $113 $103 $2 ~$6 $2 $6 $5 $6 Commercial Paper $5 $47-50 Ford Interest Advantage* $47 $43 $43 Term Asset-Backed Securities** $59-62 $55 $55 Term Debt (incl Bank Borrowings) $45 Other $5 $5 $6 ~$7 Equity $11 $11 $12 ~$12 Ca
Slide 10: Liquidity Sources
FORD CREDIT LIQUIDITY SOURCES Mar. 31, June 30, 2015 2015 (Bils) (Bils) Liquidity Sources Cash * $ 13.0 [ $ 10.0 ] Committed ABS lines ** 31.9 [ 31.8 ] Committed FCE / Other unsecured credit facilities 1.6 [ 2.0 ] Capacity Ford revolving credit facility allocation 2.0 [ 3.0 ] $36.8 billion Total liq
Slide 11: 2015 Automotive Financial Resources
AUTOMOTIVE SECTOR 2015 AUTOMOTIVE FINANCIAL RESOURCES Mar. 31, June 30, 2015 2015 (Bils) (Bils) Automotive gross cash* $ 19.5 $ 20.7 Less: Long-term debt $ (11.4) $ (11.5) Debt payable within one year (2.0) (2.2) Total debt $ (13.4) $ (13.7) Net cash $ 6.1 $ 7.0 Lincoln MKX Memo: Liquidity** $ 30.2
Slide 12: 2Q 2015 Summary
2Q 2015 SUMMARY* Ford • Outstanding quarter for Ford; on track for breakthrough year • Company pre-tax profit of $2.9 billion; operating-related cash flow of $1.9 billion • Best Automotive quarterly profit since 2000 driven by record quarterly profit in North America; record Second Quarter profit in
Slide 13: 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 14: Q&A
Q&A
Slide 15: Appendix
Further APPENDIX
Slide 16: 2Q 2015 Fixed Income – Appendix Index
2Q 2015 FIXED INCOME – APPENDIX INDEX Total Company No. • Income from Continuing Operations 1 • Debt Ratings 2 Automotive Sector • Gross Cash Reconciliation to GAAP 3 • Automotive Debt 4 Ford Credit • Operating Highlights 5 • Net Finance Receivables and Operating Leases 6 • Reconciliation of Managed
Slide 17: Income from Continuing Operations
INCOME FROM CONTINUING OPERATIONS Memo: 2Q 1H FY 2014 2015 2014 2015 2014 (Mils) (Mils) (Mils) (Mils) (Mils) Automotive North America $ 2,440 $ 2,597 $ 3,940 $ 3,937 $ 6,898 South America (295) (185) (805) (374) (1,162) Europe 14 (14) (180) (199) (1,062) Middle East & Africa 23 (46) 77 33 (20) Asia
Slide 18: Debt Ratings
TOTAL COMPANY DEBT RATINGS S&P Moody's Fitch DBRS Issuer Ratings Ford Motor BBB- N/A BBB- BBB (low) Ford Credit BBB- N/A BBB- BBB (low) FCE Bank plc BBB N/A BBB- NR Long-Term Senior Unsecured Ford Motor BBB- Baa3 BBB- BBB (low) Ford Credit BBB- Baa3 BBB- BBB (low) FCE Bank plc BBB Baa3 BBB- NR Short
Slide 19: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2014 2015 June 30 Dec. 31 Mar. 31 June 30 (Bils) (Bils) (Bils) (Bils) Cash and cash equivalents $ 4.7 $ 4.6 $ 5.1 $ 6.1 Marketable securities 21.1 17.1 14.4 14.6 Total cash and marketable securities (GAAP) $ 25.8 $ 21.7 $ 19.5 $ 20.7 Securities in
Slide 20: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, 2015 2014 Mar. 31 June 30 (Bils) (Bils) (Bils) Public unsecured debt $ 6.6 $ 6.5 $ 6.5 U.S. Department of Energy 4.4 4.3 4.1 Other debt (including International) 2.8 2.6 3.1 Total Automotive debt $ 13.8 $ 13.4 $ 13.7 Memo: Automotive debt payable within one
Slide 21: Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS 2Q 1H 2014 2015 2014 2015 Contract placement volume -- New and used retail / lease (000) North America Segment United States 306 334 590 629 Canada 40 47 64 75 Total North America Segment 346 381 654 704 International Segment Europe 120 134 232 262 Asia Pacific 25 21
Slide 22: Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2014 June 30, 2015 Net Receivables* (Bils) (Bils) Finance receivables -- North America Segment Consumer retail financing $ 44.1 $ 45.2 Non-consumer: Dealer financing** 22.5 23.1 Non-consumer: Other 1.0 0.9 Total finance receivables --
Slide 23: Reconciliation of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Dec. 31, June 30, 2014 2015 (Bils) (Bils) Leverage Calculation Total debt* $ 105.0 [ $ 109.5 ] Adjustments for cash** (8.9) [ (10.0) ] Adjustments for derivative accounting*** (0.4) [ (0.4) ] Total adjusted debt $ 95.7 [
Slide 24: Net Loans & Advances to Customers by Market
FCE BANK PLC NET LOANS & ADVANCES TO CUSTOMERS BY MARKET* June 30, 2015 Compared With June 30, 2014 U.K. Germany Italy France Spain Other 43% Switzerland 3.0% 39% WWTF** 2.8% Belgium 1.9% Netherlands 1.6% Austria 1.0% 26% 26% All Other 2.7% 16% 13% 8% 8% 7% 6% 4% 4% 2014 2015 2014 2015 2014 2015 201
Slide 25: 2Q 2015 Credit Loss Ratio Compared with 2Q 2014
FCE BANK PLC 2Q 2015 CREDIT LOSS RATIO COMPARED WITH 2Q 2014 Net Credit Losses As Percentage Of Average Net Loans And Advances To Customers Total FCE U.K. Germany Italy France Spain 0.77% 0.80% 0.69% 0.37% 0.17% 0.14% 0.12% 0.12% 0.11% 0.04% 0.07% (0.01)% 2014 2015 2014 2015 2014 2015 2014 2015 2014
Slide 26: Public Term Funding Plan (FCE Bank)
FCE BANK PLC PUBLIC TERM FUNDING PLAN 2015 2013 2014 YTD Actual Actual Forecast Actual* (Bils) (Bils) (Bils) (Bils) Unsecured £ 1.6 £ 1.9 £ 2.1 - 2.6 £ 1.6 Securitizations** 0.4 0.8 0.4 - 0.7 0.4 Total Public £ 2.0 £ 2.7 £ 2.5 - 3.3 £ 2.0 * Includes transactions settled through July 27, 2015 ** Incl
Ford Motor Company — Debt Investor Presentation (July 2015) on 6ix