Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — Q4 2023 Earnings Presentation
41 slides from Ford Mtr Co Del's earnings presentation, Feb 6, 2024
Slide 1: Q4 & Full Year 2023 Earnings
Delivering Ford+ 2024 North American Truck Of The Year Ford Super Duty Q4 & Full Year 2023 Earnings
Slide 2: Contents
Contents Delivering Ford+ Page 4 - 5 Q4 Results Page 6 - 7 Full Year Results Page 8 - 9 Ford Blue Page 10 Ford Model e Page 11 Ford Pro Page 12 Financials Page 14 - 22 2024 Guidance Page 24 - 25 Appendix Page 27 - 40 New 2024 North American Ford Ranger 2
Slide 3: Safe Harbor Statement And Disclosures
Safe Harbor Statement And Disclosures Forward-Looking Statements GAAP & Non-GAAP Financial Measures This presentation includes forward-looking statements. Forward- This presentation includes financial measures calculated in looking statements are based on expectations, forecasts, and accordance with
Slide 4: Ford+ Investment Thesis
Ford+ Investment Thesis Disruptive technology allows us to leverage foundational strengths to build new capabilities enriching customer experiences and deepening loyalty Customer experience FOUNDATIONAL ENHANCED EXPANDED TAM STRENGTHS CAPABILITIES & VALUE CREATION + Leading iconic nameplates + Integ
Slide 5: Ford+ Business Model Is Designed To Deliver Focused Innovation, Profit & Growth
Ford+ Business Model Is Designed To Deliver Focused Innovation, Profit & Growth Ford Ford Ford Blue Model e Pro 5
Slide 6: Q4 Financial Results
Q4 Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $46.0B $1.1B 2.3% $2.0B $0.29 ▲ 4% 59% 3.5pts $0.5B $(0.22) New 2024 Ford F-150 Platinum 6
Slide 7: Q4 Financial Results - Segments
Q4 Financial Results - Segments Ford Ford Ford Blue Model e Pro 2023 Ford Explorer XLT 2024 F-150 Lightning Flash 2024 F-350 XL EBIT EBIT EBIT $0.8B $(1.6)B $1.8B EBIT Margin EBIT Margin EBIT Margin 3.1% (98.2)% 11.8% 7
Slide 8: Full Year Financial Results
Full Year Financial Results Revenue Adj. EBIT Adj. EBIT Margin Adj. FCF Adj. EPS $176.2B $10.4B 5.9% $6.8B $2.01 ▲ 11% Flat 0.7pts $2.3B ▲ $0.13 2024 Expedition King Ranch 8
Slide 9: Full Year Financial Results - Segments
Full Year Financial Results - Segments Ford Ford Ford Blue Model e Pro 2024 Ford Bronco Sport Badlands 2024 Mustang Mach-E Rally 2024 Super Duty Tremor EBIT EBIT EBIT $7.5B $(4.7)B $7.2B EBIT Margin EBIT Margin EBIT Margin 7.3% (79.7)% 12.4% 9
Slide 10: Ford Blue
Ford $7.5B FY wholesales, revenue, EBIT and margin up Blue Iconic gas and hybrid passion Wholesales and EBIT outside North America up: • Puma #1 retail, Kuga #1 PHEV in Europe products like F-150, Bronco and Mustang FY EBIT • Ranger bestselling vehicle in Australia and New Zealand #1 selling truck m
Slide 11: Ford Model e
Higher-growth start-up in investment mode Ford Model e Designing and scaling $(4.7)B Adapting to dynamic market realities Moving fast to adjust capital allocation and breakthrough, connected EVs and all of Ford’s electric architecture FY EBIT product plans to ensure appropriate returns and embedded
Slide 12: Ford Pro
Ford $7.2B FY EBIT up $4B; EBIT margin at 12.4% Pro Revenue up 19%; durable and robust demand; pent-up demand supports strong FY EBIT Integrated vehicle hardware, software, service, charging and financing solutions that increase pricing for Super Duty and Transit commercial customer productivity #1
Slide 13: Financials
Financials 2024 Ford Bronco Raptor
Slide 14: Q4 Cash Flow, Cash Balance & Liquidity ($B)
Q4 Cash Flow, Cash Balance & Liquidity ($B) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Adjusted Free Cash Flow Ford Credit Distributions incl. Above $0.5 $— $— $— $— $— Cash Balance Liquidity Cash Net of Debt $11.8 $12.3 $9.0 $10.3 $9.3 $8.9 14
Slide 15: Q4 2023 Results ($B)
Q4 2023 Results ($B) Taxes / Net Ford Corporate Company Interest Special Ford Blue Ford Model e Ford Pro Ford Next Noncontrolling Income / Credit Other Adj. EBIT On Debt Items Interests (Loss) B / (W) $(0.7) $(0.9) $0.4 $0.2 $0.1 $(0.5) $(1.5) $(0.0) $(1.5) $1.2 $(1.8) Q4 2022 available to invest in
Slide 16: Q4 2023 Adjusted EBIT ($B)
Q4 2023 Adjusted EBIT ($B) Material / Freight $(1.0) Structural* (0.7) Ford Ford Ford Ford Corporate Total Model e Pro Next Credit Other Company Pension / OPEB (0.5) Warranty (0.2) Commodities 0.5 Q4 2022 $ 1.5 $ (0.6) $ 1.5 $ (0.2) $ 0.2 $ 0.2 $ 2.6 YoY Change: Volume / Mix 0.0 (0.0) (0.6) — — — (0
Slide 17: Ford Blue
Ford Wholesale Units (000) Revenue ($B) Blue Full Year ■ Volume and revenue up 3% and 8%, respectively Memo: JV ■ EBIT up $0.6B: Wholesales* 134 114 97 107 124 128 + Volume / mix + Commodities – Higher warranty EBIT ($B) EBIT Margin (%) – Material cost ■ Healthy profit outside of North America: Stro
Slide 18: Ford Model e
Ford Wholesale Units (000) Revenue ($B) Model e Full Year ■ Volume up 20%, driven by F-150 Lightning ■ Revenue up 12%: Growth lagged volume due to industry-wide pricing pressure EBIT ($B) EBIT Margin (%) ■ EBIT and EBIT margin: – Lower pricing – Higher material cost – Investments in future new EV cu
Slide 19: Ford Pro
Ford Wholesale Units (000) Revenue ($B) Pro Full Year ■ Volume and revenue up 6% and 19%, respectively Memo: ■ EBIT up +2X with margin JV Wholesales* 18 29 22 24 24 20 of 12.4%: Strength of EV Wholesales 6 11 8 12 9 11 Super Duty, despite partial year for all-new model EBIT ($B) EBIT Margin (%) ■ 20
Slide 20: Ford Credit
Ford Auction Values* (Per Unit) U.S. Retail Loss-to-Receivables (“LTR”) Credit Ratio (%) 2017-2019: 0.56% Full Year ■ EBT of $1.3B, down $1.3B, reflecting: – Higher borrowing costs * U.S. 36-month off-lease auction values at Q4 2023 mix – Non-recurrence of supplemental depreciation reserve release E
Slide 21: Cash Flow And Balance Sheet ($B)
Cash Flow And Balance Sheet ($B) Fourth Quarter Full Year Balance Sheet 2022 2023 2022 2023 2022 Dec. 31 2023 Dec. 31 Company Excl. Ford Credit Company Adj. EBIT excl. Ford Credit $ 2.4 $ 0.8 $ 7.8 $ 9.1 Company Cash Balance $ 32.3 $ 28.8 Capital Spending $ (2.0) $ (2.3) $ (6.5) $ (8.2) Liquidity 48
Slide 22: Special Items ($B)
Special Items ($B) Fourth Quarter Full Year 2022 2023 2022 2023 Restructuring China $ (0.3) $ (0.1) $ (0.4) $ (1.0) Europe (0.1) (0.5) (0.2) (1.0) Ford Credit - Brazil — — (0.2) — Other (a) 0.0 0.0 (0.4) (0.1) Subtotal Restructuring (0.4) (0.6) (1.1) (2.0) Other Items Gain / (loss) on Rivian investm
Slide 23: 2024 Guidance
2024 Guidance New 2024 Ford Transit Custom
Slide 24: CY 2024 Guidance
CY 2024 Guidance 2024 2023 2024 Outlook Includes Outlook Actuals Total Company Adj. EBIT $10B to $12B $10.4B • Flat to modest U.S. industry growth at 16M to 16.5M Total Company Adj. FCF $6B to $7B $6.8B • Non-recurrence of UAW strike • Full year of all-new Super Duty, drives positive Capital Spendin
Slide 25: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
Slide 26: Appendix
Appendix Mustang GT3 at Barcelona
Slide 27: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Ford Blue $ 1.5 $ 1.5 $ 2.6 $ 2.3 $ 1.7 $ 0.8 $ 23.8 $ 26.3 $ 25.1 $ 25.0 $ 25.6 $ 26.2 Ford Model e (0.6) (0.6) (0.7) (1.1) (1.3) (1.6) 1.4 1.6 0.7 1.8 1.8 1.6 Ford Pro
Slide 28: Key Metrics
Key Metrics EBIT ($B) Revenue ($B) Q4 2022 Q4 2023 2023 B / 2022 FY 2023 FY 2023 B / Q4 2022 Q4 2023 2023 B / 2022 FY 2023 FY 2023 B / (W) 2022 (W) 2022 (W) 2022 (W) 2022 Ford Blue $ 1.5 $ 0.8 $ (0.7) $ 6.8 $ 7.5 $ 0.6 $ 26.3 $ 26.2 $ (0.1) $ 94.8 $ 101.9 $ 7.2 Ford Model e (0.6) (1.6) (0.9) (2.1) (
Slide 29: Q4 Results ($M)
Q4 Results ($M) Fourth Quarter Full Year 2022 2023 2023 B / (W) 2022 2023 2023 B / (W) 2022 2022 Ford Blue $ 1,549 $ 813 $ (736) $ 6,847 7,462 $ 615 Model e (631) (1,570) (939) (2,133) (4,701) (2,568) Ford Pro 1,450 1,811 361 3,222 7,222 4,000 Ford Next (219) (51) 168 (926) (138) 788 Ford Credit 191
Slide 30: Full Year 2023 Adjusted EBIT ($B)
Full Year 2023 Adjusted EBIT ($B) Material / Freight $(3.3) Structural (1.9) Ford Ford Ford Ford Corporate Total Model e Pro Next Credit Other Company Pension / OPEB (1.9) Warranty (1.9) Commodities 1.7 Full Year 2022 $ 6.8 $ (2.1) $ 3.2 $ (0.9) $ 2.7 $ 0.7 $ 10.4 YoY Change: Volume / Mix 2.5 (0.0)
Slide 31: Quarterly Results ($M)
Quarterly Results ($M) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Ford Blue $ 1,328 $ 2,504 $ 1,466 $ 1,549 $ 6,847 $ 2,623 $ 2,308 $ 1,718 $ 813 $ 7,462 Model e (380) (510) (612) (631) (2,133) (722) (1,080) (1,329) (1,570) (4,701) Ford Pro 491 879 402 1,450 3,222 1,366 2,391 1,654 1,811
Slide 32: Net Income / (Loss) Reconciliation To Adjusted EBIT ($M)
Net Income / (Loss) Reconciliation To Adjusted EBIT ($M) Fourth Quarter Full Year 2022 2023 2022 2023 Net Income / (Loss) Attributable to Ford (GAAP) $ 1,289 $ (526) $ (1,981) $ 4,347 Income / (Loss) Attributable to Noncontrolling Interests (30) 3 (171) (18) Net Income / (Loss) $ 1,259 $ (523) $ (2,
Slide 33: Net Cash From Operating Activities Reconciliation To Company Adj. FCF
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adj. FCF ($M) 2022 2023 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Net Cash Provided By / (Used In) Operating Activities (GAAP) $(1,084) $ 2,947 $ 3,812 $ 1,178 $ 2,800 $ 5,035 $ 4,591 $ 2,492 $ 6,853 $14,918 Less: Item
Slide 34: Earnings Per Share Reconciliation To Adjusted Earnings Per Share
Earnings / (Loss) Per Share Reconciliation To Adjusted Earnings / (Loss) Per Share Fourth Quarter Full Year 2022 2023 2022 2023 Diluted After-Tax Results ($M) Diluted After-Tax Results (GAAP) $ 1,289 $ (526) $ (1,981) $ 4,347 Less: Impact of Pre-Tax and Tax Special Items (a) (780) (1,688) (9,599) (3
Slide 35: Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate
Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2023 Memo: Q4 Full Year Full Year 2022 Pre-Tax Results ($M) Income / (Loss) Before Income Taxes (GAAP) $ (1,867) $ 3,967 $ (3,016) Less: Impact of Special Items (2,554) (5,147) (12,172) Adjusted Earnings Before Taxes (Non-GAAP) $ 687 $
Slide 36: Adjusted ROIC ($B)
Adjusted ROIC ($B) Four Quarters Four Quarters Ending Q4 2022 Ending Q4 2023 Adjusted Net Operating Profit / (Loss) After Cash Tax Net Income / (Loss) Attributable to Ford $ (2.0) $ 4.3 Add: Noncontrolling Interest (0.2) (0.0) Less: Income Tax 0.9 0.4 Add: Cash Tax (0.8) (1.0) Less: Interest on Debt
Slide 37: Nameplate Segment Mix In 2023
Nameplate Segment Mix In 2023 North America Ford Blue Model e Ford Pro Europe Ford Blue Model e Ford Pro Core Pro Vehicles Core Pro Vehicles Super Duty — — 100% Transit Family (ICE and EV) — — 100% Transit Family (ICE and EV) — — 100% Ranger — — 100% E-Series — — 100% Non-Core Pro Vehicles F-650/750
Slide 38: 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 39: Non-GAAP Financial Measures That Supplement GAAP Measures
Non-GAAP Financial Measures That Supplement GAAP Measures + Company Adjusted Free Cash Flow (FCF) (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elemen
Slide 40: Definitions And Calculations
Definitions And Calculations Wholesale Units and Revenue • Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships or others, units manufactured by Ford that are sold to other manufacturers, units dist
Slide 41: Delivering Ford+
Delivering Ford+ Q4 & Full Year 2023 Earnings New 2024 F-150 STX