Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Q2 2013 Earnings Presentation
43 slides from Ford Mtr Co del's earnings presentation, Jul 24, 2013
Slide 1: 2013 Second Quarter Earnings Review
2013 SECOND QUARTER EARNINGS REVIEW JULY 24, 2013 (PRELIMINARY RESULTS)
Slide 2: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 3: Executing Our Plan in China -- 2013 Showroom
TOTAL COMPANY EXECUTING OUR PLAN IN CHINA -- 2013 SHOWROOM Fiesta Fiesta ST EcoSport Classic Focus Focus Focus ST Kuga Mondeo Edge S-MAX New Segment Entry Explorer Transit All New / Refreshed SLIDE 2
Slide 4: 2013 Second Quarter Summary
TOTAL COMPANY 2013 SECOND QUARTER SUMMARY* • Total Company profitable for 16th consecutive quarter; positive Automotive operating-related cash flow; strong liquidity • Wholesale volume and Total Company revenue higher than a year ago, including market share gains in all regions • Best Second Quarter
Slide 5: 2013 Second Quarter Highlights
TOTAL COMPANY 2013 SECOND QUARTER HIGHLIGHTS • Launched refreshed Fiesta in the Americas; Tourneo Custom in Russia; Fiesta ST in South Africa and China; EcoSport in India; and 1.5-liter EcoBoost in Asia Pacific Africa • Started full production of Explorer in Russia • Introduced Escort Concept at Sha
Slide 6: 2013 Key Financial Summary
TOTAL COMPANY 2013 KEY FINANCIAL SUMMARY Second Quarter First Half B / (W) B / (W) 2013 2012 2013 2012 Wholesales (000) 1,678 231 3,175 370 Revenue (Bils.) $ 38.1 $ 4.8 $ 73.9 $ 8.2 Operating results* Pre-tax results (Mils.) $ 2,555 $ 726 $ 4,701 $ 579 After-tax results (Mils.) 1,833 630 3,475 694 E
Slide 7: 2013 Second Quarter Pre-Tax Results by Sector
TOTAL COMPANY 2013 SECOND QUARTER PRE-TAX RESULTS BY SECTOR* Millions $2,555 $2,104 Ford Credit $454 Other (3) $451 Total Automotive Financial Services Memo: B / (W) 2012 2Q $726 $722 $ 4 B / (W) 2013 1Q 409 461 (52 ) * Excludes special items; see Appendix for detail and reconciliation to GAAP SLIDE
Slide 8: Key Metrics Compared with 2012 -- Total Automotive
AUTOMOTIVE SECTOR -- TOTAL AUTOMOTIVE 2013 SECOND QUARTER KEY METRICS COMPARED WITH 2012* Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.)** 1,678 $36.0 $2,104 1,447 $31.4 6.4% $1,382 4.9% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Half 2,805 3,175 $61.9 $69.
Slide 9: Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012* Billions Market Factors Total Cost $0.7 Industry $0.5 Mfg. / Engineering $(0.2) Share 0.5 Advert. & Sales Promo. (0.1) Stocks 0.3 Spending Related (0.1) Mix / Other 0.3 Pension / OPEB (0.1) Admin. & Selling / Other (0.2) $2.1
Slide 10: Pre-Tax Results by Segment
AUTOMOTIVE SECTOR 2013 SECOND QUARTER PRE-TAX RESULTS BY SEGMENT* Millions $2,329 $2,104 Net Interest $(247) Fair Mkt. Value Adj. / Other 42 $151 $177 $(205) $(348) Total North South Europe Asia Other America America Pacific Automotive Africa Memo: B / (W) 2012 2Q $722 $ 319 $146 $ 56 $243 $(42 ) B
Slide 11: Key Metrics Compared with 2012 -- North America
AUTOMOTIVE SECTOR -- NORTH AMERICA 2013 SECOND QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.) 823 $22.4 $2,329 719 $19.7 $2,010 10.2% 10.4% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Half 1,370 1,584 $38.3 $44.7 $4,143
Slide 12: Pre-Tax Results Compared with 2012 -- North America
AUTOMOTIVE SECTOR -- NORTH AMERICA 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Billions U.S. Industry $ 0.5 $0.3 U.S. Share 0.4 Stocks 0.1 Mix / Other (0.3) $2.3 $2.0 Material Incl. Commod. $(0.1) Warranty / Freight (0.1) Mfg. / Engineering $(0.1) Pension / OPEB (0.1) $0.7 Other (0.1) Tot
Slide 13: U.S. Market Share
AUTOMOTIVE SECTOR -- NORTH AMERICA U.S. MARKET SHARE Total Share of Total Industry Retail Share of Retail Industry* 15.9% 16.5% 15.6% 15.3% 14.8% 13.5% 14.0% 13.7% 12.8% 12.7% Second Third Fourth First Second Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Quarter Quarter Qu
Slide 14: Key Metrics Compared with 2012 -- South America
AUTOMOTIVE SECTOR -- SOUTH AMERICA 2013 SECOND QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.) $3.0 $151 147 119 $2.3 5.0% $5 0.2% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Half 237 260 $4.7 $5.3 $59 $(67) 1.2% (1.3)%
Slide 15: Pre-Tax Results Compared with 2012 -- South America
AUTOMOTIVE SECTOR -- SOUTH AMERICA 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Industry $ 27 Share (30) Stock 45 Mix / Other 294 Pricing $322 $381 Incentives / Other 59 $146 $336 $151 $5 $(37) $(87) $(187) Material Incl. Commod. $(207) Warranty / Freight (53) $(260) 2012 2013 Vol
Slide 16: Key Metrics Compared with 2012 -- Europe
AUTOMOTIVE SECTOR -- EUROPE 2013 SECOND QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000)* Revenue (Bils.) Results (Mils.) Margin (Pct.) 391 $7.6 359 $7.1 (4.6)% $(348) $(404) (5.8)% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Half 731 732 $14.3 $14.3 $(553) $(810) (3
Slide 17: Pre-Tax Results Compared with 2012 -- Europe
AUTOMOTIVE SECTOR -- EUROPE 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Industry $ (14) Share 34 Memo: (Included in Stocks 148 cost columns) Mix / Other 113 $281 $56 Material Incl. Commod. $101 $120 Warranty / Freight 19 $(37) $(57) $(86) $(165) $(181) $(348) Mfg. / Engineering $
Slide 18: Market Share -- Europe
AUTOMOTIVE SECTOR -- EUROPE MARKET SHARE Total Share of Total Industry* Retail Share of Retail Industry** 8.3% 8.4% 7.8% 8.1% 7.6% 7.5% 7.7% 7.0% 6.9% 6.5% Second Third Fourth First Second Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarte
Slide 19: Transformation Plan Status -- Europe
AUTOMOTIVE SECTOR -- EUROPE TRANSFORMATION PLAN STATUS • Seven Products Launched Product • Closure of Southampton Assembly and Dagenham Stamping and Tooling July 2013 • Improved Retail Share Sustainable, • Completed consultation with • Improved Quality Profitable Genk unions -- plant closure end of
Slide 20: Key Metrics Compared with 2012 -- Asia Pacific Africa
AUTOMOTIVE SECTOR -- ASIA PACIFIC AFRICA 2013 SECOND QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000)* Revenue (Bils.) Results (Mils.) Margin (Pct.) $3.0 $177 317 5.8% 250 $2.3 $(66) (2.9)% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Half 467 599 $4.6 $5.6 $(161) $18
Slide 21: Pre-Tax Results Compared with 2012 -- Asia Pacific Africa
AUTOMOTIVE SECTOR -- ASIA PACIFIC AFRICA 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Industry $ 53 Share 128 $243 $296 Stocks (6) Mix / Other 121 Royalties $36 Parts & Accessories 13 Other 54 $177 $103 $27 $28 Mfg. / Engineering $ (77) $(43) $(66) Advert. & Sales Promo. (50) Admi
Slide 22: Pre-Tax Results Compared with 2012 -- Ford Credit
FORD CREDIT 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions $16 $438 $454 $66 $44 $(20) $(3) $(71) 2012 2013 Volume Financing Credit Lease Other Memo: 2Q 2Q Margin Loss Residual B / (W) 2013 1Q $(53) $16 $2 $9 $(28) $(52) Receivables (Bils.)* Total $84 $94 Managed 86 95 * Total recei
Slide 23: 2013 Cash
AUTOMOTIVE SECTOR 2013 CASH* Second First Quarter Half (Bils.) (Bils.) Gross Cash June 30, 2013 $ 25.7 $ 25.7 March 31, 2013 / December 31, 2012 24.2 24.3 Change in gross cash $ 1.5 $ 1.4 Automotive pre-tax profits** $ 2.1 $ 3.7 Capital spending (1.6) (3.1) Depreciation and amortization 1.1 2.1 Chan
Slide 24: 2013 Automotive Financial Resources
AUTOMOTIVE SECTOR 2013 AUTOMOTIVE FINANCIAL RESOURCES Mar. 31 June 30 (Bils.) (Bils.) Automotive Gross Cash* $ 24.2 $ 25.7 Less: Long-Term Debt $(14.8) $ (14.6) Debt Payable Within One Year (1.2) (1.2) Total Debt $(16.0) $ (15.8) Net Cash** $ 8.2 $ 9.9 Memo: Liquidity*** $ 34.5 $ 37.1 * See Appendix
Slide 25: Pension De-Risking Strategy Update
TOTAL COMPANY PENSION DE-RISKING STRATEGY UPDATE • Contributed $2.8 billion to global funded plans in First Half, including $2 billion discretionary contributions to U.S. plans. Continue to expect Full Year contributions of $5 billion • U.S. salaried retiree voluntary lump sum program − Settled $1.5
Slide 26: 2013 Business Environment Overview
2013 BUSINESS ENVIRONMENT OVERVIEW Global • 2013 global economic growth at lower end of 2 - 3% range; global industry sales expected at higher end of 80 - 85 million unit range Americas • U.S. economic growth projected in 2 - 2.5% range for 2013 • U.S. industry sales recovery supported by improving
Slide 27: 2013 Planning Assumptions and Key Metrics
TOTAL COMPANY 2013 PLANNING ASSUMPTIONS AND KEY METRICS Memo: 2012 2013 2013 Full Year Full Year First Half Results Plan Outlook Results Planning Assumptions (Mils.) Industry Volume* -- U.S. 14.8 15.0 - 16.0 15.5 - 16.0 15.6 -- Europe** 14.0 13.0 - 14.0 13.0 - 13.5 13.5 -- China 19.0 19.5 - 21.5 20.
Slide 28: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 29: 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 30: Appendix
APPENDIX
Slide 31: 2013 Second Quarter Earnings -- Appendix Index
2013 SECOND QUARTER EARNINGS -- APPENDIX INDEX Slide Total Company • Calculation of Earnings Per Share 1 • Income from Continuing Operations 2 • Special Items 3 • Preliminary Sector Income Statement 4 Automotive Sector • Production Volumes 5 • Dealer Stocks and Definition of Wholesales 6 • Market Re
Slide 32: 2013 Calculation of Earnings Per Share
TOTAL COMPANY 2013 CALCULATION OF EARNINGS PER SHARE APPENDIX 1 of 12
Slide 33: 2013 Income from Continuing Operations
TOTAL COMPANY 2013 INCOME FROM CONTINUING OPERATIONS Second Quarter First Half 2012 2013 2012 2013 (Mils.) (Mils.) (Mils.) (Mils.) North America $ 2,010 $ 2,329 $ 4,143 $ 4,771 South America 5 151 59 (67) Europe (404) (348) (553) (810) Asia Pacific Africa (66) 177 (161) 183 Other Automotive (163) (2
Slide 34: Special Items
TOTAL COMPANY SPECIAL ITEMS Second Quarter First Half 2012 2013 2012 2013 (Mils.) (Mils.) (Mils.) (Mils.) Personnel and Dealer-Related Items Separation-related actions* $ (39) $ (442) $ (272) $ (450) Mercury discontinuation / Other dealer actions (13) - (29) - Total Personnel and Dealer-Related Item
Slide 35: Preliminary Sector Income Statement Data
PRELIMINARY SECTOR INCOME STATEMENT DATA Second Quarter First Half 2012 2013 2012 2013 (Mils.) (Mils.) (Mils.) (Mils.) Automotive Revenues $ 31,328 $ 36,079 $ 61,853 $ 69,937 Costs and Expenses Cost of sales $ 27,870 $ 32,524 $ 54,804 $ 62,529 Selling, administrative, and other expenses 2,233 2,488
Slide 36: 2013 Production Volumes
AUTOMOTIVE SECTOR 2013 PRODUCTION VOLUMES* APPENDIX 5 of 12
Slide 37: Dealer Stocks and Definition of Wholesales
SELECTED MARKETS 2013 SECOND QUARTER DEALER STOCKS AND DEFINITION OF WHOLESALES* Second Quarter 2012 2013 (000) (000) U.S. Dealer Stocks June 30 455 550 March 31 477 563 2Q Stock Change H / (L) (22) (13) 9 South America Dealer Stocks** June 30 41 49 March 31 46 42 2Q Stock Change H / (L) (5) 7 12 Eu
Slide 38: Market Results
AUTOMOTIVE SECTOR MARKET RESULTS* Second Quarter First Half 2012 2013 2012 2013 U.S. Industry SAAR (Mils.) 14.5 15.7 14.5 15.6 Market share 15.6 % 16.5 % 15.4 % 16.2 % South America** Industry SAAR (Mils.) 5.3 5.8 5.3 5.7 Market share 9.4 % 9.6 % 9.4 % 9.4 % Europe*** Industry SAAR (Mils.) 14.4 13.6
Slide 39: Pre-Tax Results Compared with 2013 First Quarter
AUTOMOTIVE SECTOR 2013 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2013 FIRST QUARTER* Billions $0.5 Industry $ 0.8 Share 0.5 Mfg. / Engineering $(0.3) Spending Related (0.1) $2.1 Stocks (0.5) Advert. & Sales Promo. / Other (0.1) Mix / Other 0.3 Total Structural Costs $(0.5) $1.6 All Other $(0.1) $
Slide 40: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, 2013 2012 Mar. 31 June 30 (Bils.) (Bils.) (Bils.) Public unsecured debt $ 5.3 $ 6.7 $ 6.7 Convertible notes 0.8 0.8 0.8 U.S. Dept. of Energy Loans / Ex-Im 5.9 5.8 5.6 Other Debt (including International) 2.3 2.7 2.7 Total Automotive Debt $ 14.3 $ 16.0 $ 15.
Slide 41: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP Second Quarter First Half 2012 2013 2012 2013 (Mils.) (Mils.) (Mils.) (Mils.) Interest expense (GAAP) $ (188) $ (207) $ (373) $ (413) Interest income (GAAP) 65 43 152 87 Subtotal $ (123) $ (164) $ (221) $ (326) Adjusted for items included / exclu
Slide 42: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2012 2013 June 30 Dec. 31 Mar. 31 June 30 (Bils.) (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 7.2 $ 6.2 $ 6.0 $ 5.5 Marketable securities 16.6 18.2 18.2 20.2 Total cash and marketable securities (GAAP) $ 23.8 $ 24.4 $ 24.2 $ 25.7 Securities
Slide 43: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP APPENDIX 12 of 12