Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (October 2010)
35 slides from Ford Mtr Co del's debt investor presentation, Oct 26, 2010
Slide 1: 2010 Third Quarter Fixed Income Presentation
2010 THIRD QUARTER FIXED INCOME PRESENTATION OCTOBER 26, 2010 (PRELIMINARY RESULTS)
Slide 2: 2010 Third Quarter Financial Results
TOTAL COMPANY 2010 THIRD QUARTER FINANCIAL RESULTS* Third Quarter First Nine Months B / (W) B / (W) 2010 2009** 2010 2009** Wholesales (000)*** 1,253 15 3,924 506 - Memo: Excl. Volvo in 2009 (000) 91 730 Revenue (Bils.)**** $ 29.0 $ (1.3) $ 88.4 $ 6.9 - Memo: Excl. Volvo in 2009 (Bils.) 1.7 15.4 Ope
Slide 3: 2010 Third Quarter Special Items
TOTAL COMPANY 2010 THIRD QUARTER SPECIAL ITEMS First Third Nine Quarter Months (Mils.) (Mils.) Personnel and Dealer-Related Items Personnel-reduction actions $ (1) $ (118) Mercury discontinuation / Other dealer actions (43) (290) Job Security Benefits / Other 11 83 Total Personnel and Dealer-Related
Slide 4: 2010 Third Quarter Cash
AUTOMOTIVE SECTOR 2010 THIRD QUARTER CASH* First Third Nine Quarter Months (Bils.) (Bils.) Gross Cash September 30, 2010 $ 23.8 $ 23.8 June 30, 2010 / December 31, 2009 21.9 24.9 Change in gross cash $ 1.9 $ (1.1) Operating-Related Cash Flow Automotive pre-tax profits** $ 1.3 $ 4.6 Capital spending
Slide 5: 2010 Third Quarter Automotive Financial Resources
AUTOMOTIVE SECTOR 2010 THIRD QUARTER AUTOMOTIVE FINANCIAL RESOURCES Pro forma Dec. 31, June 30, Sep. 30, after VEBA 2009 2010 2010 Payment* (Bils.) (Bils.) (Bils.) (Bils.) Automotive gross cash** $ 24.9 $ 21.9 $ 23.8 $ 20.3 Less debt: Revolving line of credit $ 7.5 $ 4.5 $ 2.5 $ 2.5 VEBA debt 7.0 3.
Slide 6: 2010 Planning Assumptions and Operational Metrics
TOTAL COMPANY 2010 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Full Year First Full Year Plan Nine Months Outlook Planning Assumptions Industry volume (SAAR)* -- U.S. (Mils.) 11.5 to 12.5 11.5 11.6 Industry Volume (SAAR)* -- Europe (Mils.)** 13.5 to 14.5 15.2 15.0 Operational Metrics Compared with
Slide 7: Ford Credit Results and Metrics -- 2010 Third Quarter
FORD CREDIT RESULTS AND METRICS -- 2010 THIRD QUARTER Pre-Tax Profit (Mils.) Key Metrics Third Quarter 2009 2010 On-Balance Sheet $89 Receivables (Bils.) $ 93 $ 83 $766 Charge-Offs (Mils.) $ 240 $ 95 Loss-to-Receivables Ratio $677 - Worldwide 0.97% 0.44% - U.S. Retail and Lease 1.15 0.59 Allowance f
Slide 8: 2010 Third Quarter Ford Credit Pre-Tax Results Compared with 2009
2010 THIRD QUARTER FORD CREDIT PRE-TAX RESULTS COMPARED WITH 2009 Pre-Tax Results (Bils.) $0.1 $0.8 $0.7 Charge-offs $0.2 Reserves - $0.2 $0.1 $- $(0.1) $(0.1) 2009 2010 Volume Financing Credit Lease Other Memo: Margin Loss Residual Managed Receivables (Bils.)* $94 $85 B / (W) 2Q 2010 $(0.1) $- $- $
Slide 9: Credit Loss Metrics
CREDIT LOSS METRICS* Loss-to-Receivables Ratio Worldwide Ford Lincoln Mercury U.S. Retail & Lease 1.35% 1.09% 1.09% 1.15% 0.97% 0.98% 0.91% 0.58% 0.59% 0.39% 0.45% 0.44% Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 Worldwide Charge-Offs (Mils.) $285 $240 $238 $133 $86 $95 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 * On-balance she
Slide 10: Credit Loss Drivers -- Ford Lincoln Mercury U.S. Retail and Lease
CREDIT LOSS DRIVERS -- FORD LINCOLN MERCURY U.S. RETAIL AND LEASE* Repossessions (000) Severity $8,400 24 23 Repo. $7,700 $7,300 $7,300 22 Ratio $6,700 $6,600 19 3.15% 3.20% 2.77% 16 2.76% 15 2.46% 2.18% Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2009 2010 Over-60-Day Delinquencies 0.23% 0.24% 0.
Slide 11: Lease Residual Performance -- Ford Lincoln Mercury U.S.
LEASE RESIDUAL PERFORMANCE -- FORD LINCOLN MERCURY U.S. Lease Return Volume (000) Auction Values (At Q3 2010 Mix) 24-Month 36-Month 39-Month / Other 24-Month $19,385 46 46 $18,860 $19,030 44 $17,820 $18,010 $18,235 13 39 15 36 33 16 9 36-Month $16,165 $16,235 12 17 $15,615 $15,545 $15,080 20 16 $14,
Slide 12: Ford Credit Funding
FORD CREDIT FUNDING • On track to complete our Full Year funding plan • $8 billion of funding in the Third Quarter − $5 billion of public and private securitization transactions across all regions and asset classes − $3 billion of unsecured issuances in the United States, Canada and Europe • $2 bill
Slide 13: Ford Credit Funding Strategy
FORD CREDIT FUNDING STRATEGY Funding of Managed Receivables (Bils.) $118 $2 $12 $95 Ford Interest Advantage $85 Asset-Backed Commercial $4 $80-85 $5 Paper $6 ~$5 $61 $7 Term Asset-Backed Securities ~$7 $47 $40 $36-40 Term Debt and Other $56 $44 $42 $37-40 Equity $11 $11 $11 $10-11 $24 $17 $20 $15-18
Slide 14: Ford Credit Term Funding Plan
FORD CREDIT TERM FUNDING PLAN 2010 2007 2008 2009 YTD* Actual Actual Actual Forecast Actual (Bils.) (Bils.) (Bils.) (Bils.) (Bils.) Public Transactions Unsecured $ 6 $ 2 $ 5 $ 6- 7 $ 6 Securitizations** 6 11 15 10 - 12 10 Total Public $12 $13 $20 $16 - 19 $ 16 $24 Private Transactions*** $28 $29 $11
Slide 15: Ford Credit Liquidity Programs
FORD CREDIT LIQUIDITY PROGRAMS September 30, 2010 (Bils.) Capacity & $55.0 Committed Capacity = $35.2 billion* Cash**** Securitization $4.7** Cash Committed $8.2*** Excess Capacity Capacity / Liquidity $25.1 Liquidity $19.8 $42.1 $4.7** $9.0 $1.1 Unsecured FCAR Conduits / Cash**** Total Credit Lines
Slide 16: 2010 Third Quarter Summary
2010 THIRD QUARTER SUMMARY* Ford (Total Company) • Pre-tax operating profit, excluding special items, of $2.1 billion, a $1.1 billion improvement from a year ago • Net income attributable to Ford of $1.7 billion • Automotive gross cash of $23.8 billion; and liquidity of $29.4 billion • Net debt impr
Slide 17: Safe Harbor
SAFE HARBOR 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
Slide 18: Appendix
APPENDIX
Slide 19: 2010 Third Quarter Financial Results
TOTAL COMPANY 2010 THIRD QUARTER FINANCIAL RESULTS Third Quarter First Nine Months B / (W) B / (W) 2010 2009 2010 2009 (Mils.) (Mils.) (Mils.) (Mils.) Income / (Loss) Pre-tax results (excl. special items) $ 2,055 $ 1,053 $ 7,007 $ 8,584 Special items* (168) (278) (138) (3,406) Pre-tax results (incl.
Slide 20: Calculation of Earnings per Share
TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE Third Quarter 2010 First Nine Months 2010 After-Tax After-Tax Net Income Oper. Results Net Income Oper. Results Attributable Excl. Special Attributable Excl. Special to Ford* Items** to Ford* Items** (Mils.) (Mils.) (Mils.) (Mils.) Numerator After-tax
Slide 21: Income / (Loss) from Continuing Operations
TOTAL COMPANY INCOME / (LOSS) FROM CONTINUING OPERATIONS Third Quarter First Nine Months 2009 2010 2009 2010 (Mils.) (Mils.) (Mils.) (Mils.) North America $ 314 $ 1,588 $ (1,250) $ 4,739 South America 247 241 396 729 Europe 131 (196) (397) 233 Asia Pacific Africa 22 30 (102) 166 Volvo (136) - (622)
Slide 22: Revenue Reconciliation to GAAP
TOTAL COMPANY REVENUE RECONCILIATION TO GAAP Third Quarter First Nine Months 2009 2010 2009 2010 (Bils.) (Bils.) (Bils.) (Bils.) North America $ 13.4 $ 16.2 $ 34.1 $ 47.2 South America 2.1 2.5 5.3 7.1 Europe 7.3 6.2 20.1 21.4 Asia Pacific Africa 1.5 1.8 3.9 5.2 Subtotal (excl. Volvo) $ 24.3 $ 26.7 $
Slide 23: Wholesales
TOTAL COMPANY WHOLESALES* Third Quarter First Nine Months 2009 2010 2009 2010 (000) (000) (000) (000) North America 502 592 1,310 1,798 South America 108 116 312 347 Europe** 393 340 1,136 1,176 Asia Pacific Africa*** 159 205 436 603 Subtotal (excl. Volvo) 1,162 1,253 3,194 3,924 Volvo 76 - 224 - To
Slide 24: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Sep. 30, Dec. 31, Mar. 31, June 30, Sep. 30, 2009 2009 2010 2010 2010 (Bils.) (Bils.) (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 9.6 $ 9.7 $ 12.8 $ 8.7 $ 9.0 Marketable securities* 14.5 15.2 12.5 13.2 14.9 Total cash and marketable securit
Slide 25: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP Third Quarter First Nine Months B / (W) B / (W) 2010 2009 2010 2009 (Bils.) (Bils.) (Bils.) (Bils.) Cash flows from operating activities of continuing operations* $ 1.6 $ (0.7) $ 4.6 $ 5.6 Items included in operating-related cash
Slide 26: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, Mar. 31, June 30, Sep. 30, 2009 2010 2010 2010 (Bils.) (Bils.) (Bils.) (Bils.) U.S. Debt Unsecured notes $ 5.5 $ 5.5 $ 5.2 $ 5.2 Unsecured convertible notes 2.6 2.6 2.6 2.6 Total unsecured notes $ 8.1 $ 8.1 $ 7.8 $ 7.8 Unsecured portion of VEBA debt 4.0 4.1
Slide 27: Ford Credit Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS Third Quarter First Nine Months Shares 2009 2010 2009 2010 United States Financing share -- Ford, Lincoln, and Mercury Retail installment and lease 30% 32% 30% 32% Wholesale 80 81 79 81 Europe Financing share -- Ford Retail installment and lease 27% 27% 27% 25% Whole
Slide 28: Ford Credit Charge-Offs and Loss-to-Receivables Ratio
FORD CREDIT CHARGE-OFFS AND LOSS-TO-RECEIVABLES RATIO Third Quarter First Nine Months 2009 2010 2009 2010 Charge-offs -- On-Balance Sheet (Mils.) Retail installment and lease $ 204 $ 90 $ 774 $ 312 Wholesale 33 1 73 1 Other 3 4 10 1 Total charge-offs -- on-balance sheet $ 240 $ 95 $ 857 $ 314 Total
Slide 29: Ford Credit Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Sept. 30, Dec. 31, Sept. 30, 2009 2009 2010 (Bils.) (Bils.) (Bils.) Receivables -- On-Balance Sheet Retail installment $ 58.4 $ 56.3 $ 51.1 Wholesale 18.6 22.4 21.5 Other finance receivables 2.5 2.4 2.4 Unearned interest supplements (1.8) (1.9
Slide 30: Debt Ratings -- Ford and Ford Credit
DEBT RATINGS -- FORD AND FORD CREDIT S&P Moody’s Fitch DBRS Issuer Ratings Ford Motor B+ Ba2* BB- BB (low) Ford Credit B+ Ba2 BB- BB Senior Long-Term Unsecured Ford Motor B Ba3 B B Ford Credit B+ Ba2 BB- BB FCE Bank plc BB- Ba2 BB- NR Short-Term Unsecured Ford Credit NR NP B R-4 Secured Funding Ford
Slide 31: Credit Ratings -- Ford
CREDIT RATINGS -- FORD Ratings Notch Rating Improvement March Oct. Since Present 2009* 2010 March 2009 Outlook S&P (last change 8/2/10) Issuer Rating CC B+ 6 Positive Secured Facility CC BB 8 Senior Unsecured Debt C B 6 Moody’s (last change 10/8/10) Corporate Family Rating Caa3 Ba2 7 Stable Secured
Slide 32: Ford Credit Key Metric Definitions
FORD CREDIT KEY METRIC DEFINITIONS In evaluating Ford Credit’s financial performance, Ford Credit management uses financial measures based on GAAP, as well as financial measures that include adjustments from GAAP; these measures are defined below. Information about the impact of on-balance sheet sec
Slide 33: Ford Credit Ratio Definitions
FORD CREDIT RATIO DEFINITIONS In addition to evaluating Ford Credit’s financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Charge-offs Loss-to-Receivables Ratio
Slide 34: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Sept. 30 Sept. 30 2009 2010 (Bils.) (Bils.) Leverage Calculation Total Debt* $ 103.4 $ 88.5 Securitized Off-Balance Sheet Receivables Outstanding 0.1 - Retained Interest in Securitized Off-Balance Sheet Receivables - - A
Slide 35: Liquidity Profile of Ford Credit's Balance Sheet
LIQUIDITY PROFILE OF FORD CREDIT’S BALANCE SHEET Cumulative Maturities -- As of December 31, 2009 (Bils.) Assets* Debt** $113 $106 $95 $97 $82 $73 $71 $50 *** 2010 2011 2012 2013 & Beyond Memo: Unsecured long-term debt maturities (Bils.) $7.1 $11.5 $7.1 $13.5 * Includes finance receivables net of un
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