Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (July 2014)
25 slides from Ford Mtr Co del's debt investor presentation, Jul 24, 2014
Slide 1: 2014 Second Quarter Fixed Income Presentation
2014 SECOND QUARTER FIXED INCOME PRESENTATION JULY 24, 2014 (PRELIMINARY RESULTS)
Slide 2: Ford Credit Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS* • Another solid performance with Second Quarter pre-tax profit of $434 million and net income of $264 million • Managed receivables of $111 billion at Quarter End, up about $8 billion from Year-End 2013, and up $15 billion from a year ago • Achieved significant fund
Slide 3: 2014 Second Quarter Pre-Tax Results Compared with 2013
FORD CREDIT 2014 SECOND QUARTER PRE-TAX RESULTS COMPARED WITH 2013 Millions $454 $434 $98 $(17) $(7) $(20) $(48) $(46) 2013 2014 Volume Financing Credit Lease Other Memo: 2Q 2Q Margin Loss Residual B / (W) 2014 1Q $(65) $28 $1 $4 $(14) $(84) Receivables (Bils.) Net * $93 $107 Managed ** 96 111 * Net
Slide 4: Worldwide Credit Loss Metrics
FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils.) Loss-to-Receivables Ratio (LTR) $52 $52 $47 0.19% 0.20% 0.20% $32 $33 0.14% 0.12% 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q 2013 2014 2013 2014 Memo: Retail & Lease $25 $45 $51 $55 $31 Credit Loss Reserve (Mils.) and Reserve as a Pct. of EOP Managed
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) 1.24% Repo. Ratio 0.16% 0.16% 0.16% 1.14% 1.12% 1.06% 0.13% 0.12% 0.98% 8 7 7 6 6 2Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q Memo: 2013 2014 2013 2014 New Bankruptcy Filings (000) 4 4 4 3 4 Severity Charge-Offs
Slide 6: U.S. Lease Residual Performance
FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 2Q 2014 Mix) 24-Month 36-Month 39-Month / Other $19,145 24-Month 60 $18,680 $18,650 $18,800 50 $18,025 40 $17,970 34 $17,865 30 27 27 $17,410 $17,020 21 $16,785 16 17 12 13 36-Month 7 5 8 5 5 8 7 4 2Q 3Q 4Q 1Q 2
Slide 7: Funding Highlights
FORD CREDIT FUNDING HIGHLIGHTS • Completed $17 billion of public term funding year-to-date, including $8 billion in the Second Quarter: – Unsecured debt totaling about $4 billion – ABS transactions totaling about $4 billion • Completed first securitization in China • Launched retail revolving ABS (F
Slide 8: Funding Structure
FORD CREDIT FUNDING STRUCTURE Funding of Managed Receivables (Bils.) $112-115 $111 ~$3 $103 $2 ~$6 Unsecured Commercial Paper $2 $5 $92 $5 Ford Interest Advantage* $2 $3 Asset-Backed Commercial Paper** $5 $6 $43-44 $45 $43 Term Asset-Backed Securities** $37 $53-55 $51 Term Debt (incl Bank Borrowings
Slide 9: Public Term Funding Plan
FORD CREDIT PUBLIC TERM FUNDING PLAN 2014 2012 2013 YTD Actual Actual Forecast Actual (Bils.) (Bils.) (Bils.) (Bils.) Unsecured $ 9 $ 11 $ 10 – 13 $ 8 Securitizations* 14 14 14 – 16 9 Total $ 23 $ 25 $ 24 – 29 $ 17 * Includes Rule 144A offerings SLIDE 8
Slide 10: Liquidity Programs
FORD CREDIT LIQUIDITY PROGRAMS Mar. 31, June 30, 2014 2014 (Bils.) (Bils.) Liquidity Sources Cash * $ 10.7 [ $ 9.3 ] Committed ABS Lines ** 30.8 [ 33.5 ] FCAR Bank Lines 1.6 - Committed Capacity FCE / Other Unsecured Credit Lines 1.6 1.7 $37.2 billion Corporate Revolver Allocation - [ 2.0 ] Total Li
Slide 11: 2014 Automotive Financial Resources
AUTOMOTIVE SECTOR 2014 AUTOMOTIVE FINANCIAL RESOURCES Mar. 31, June 30, 2014 2014 (Bils.) (Bils.) Automotive gross cash* $ 25.2 $ 25.8 Less: Long-term debt $ (13.6) $ (13.2) Debt payable within one year (2.1) (2.2) Total debt $ (15.7) $ (15.4) Net cash** $ 9.5 $ 10.4 Memo: Liquidity*** $ 36.6 $ 36.7
Slide 12: 2014 Second Quarter Summary
2014 SECOND QUARTER SUMMARY Ford* • Company profitable for 20th consecutive quarter and best quarterly pre-tax profit since Second Quarter 2011; Automotive operating-related cash flow positive • All Automotive Business Units profitable and improved compared with a year ago, except South America • En
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: Appendix
APPENDIX
Slide 15: Appendix Index
2014 SECOND QUARTER FIXED INCOME -- APPENDIX INDEX Slide Total Company • 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 • Reconcilia
Slide 16: 2014 Income from Continuing Operations
2014 INCOME FROM CONTINUING OPERATIONS Memo: Second Quarter First Half Full Year 2013 2014 2013 2014 2013 (Mils.) (Mils.) (Mils.) (Mils.) (Mils.) Automotive North America $ 2,321 $ 2,440 $ 4,713 $ 3,940 $ 8,809 South America 151 (295) (67) (805) (33) Europe (306) 14 (731) (180) (1,442) Middle East &
Slide 17: 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 Senior Long-Term Unsecured Ford Motor BBB- Baa3 BBB- BBB (low) Ford Credit BBB- Baa3 BBB- BBB (low) FCE Bank plc * BBB Baa3 BBB- NR S
Slide 18: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2013 2014 June 30 Dec. 31 Mar. 31 June 30 (Bils.) (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 5.5 $ 5.0 $ 4.5 $ 4.7 Marketable securities 20.2 20.1 20.7 21.1 Total cash and marketable securities (GAAP) $ 25.7 $ 25.1 $ 25.2 $ 25.8 Securities
Slide 19: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT APPENDIX 4
Slide 20: Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS Second Quarter First Half 2013 2014 2013 2014 Contract Placement Volume -- New and used retail / lease (000) North America Segment United States 268 306 540 590 Canada 40 40 65 64 Total North America Segment 308 346 605 654 International Segment Europe 109 120 212 23
Slide 21: Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2013 June 30, 2014 (Bils.) (Bils.) Receivables * Net Receivables Finance Receivables Finance Receivables – North America Segment Consumer -- Retail financing $ 40.9 $ 41.7 Non-Consumer Dealer financing ** 22.1 23.4 Other 1.0 1.0 Total
Slide 22: Reconciliation of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Dec. 31, June 30, 2013 2014 (Bils.) (Bils.) Leverage Calculation Total Debt * $ 98.7 $ 103.0 Adjustments for Cash, Cash Equivalents, and Marketable Securities** (10.8) (9.3) Adjustments for Derivative Accounting*** (0.2)
Slide 23: FCE Bank: Percent of Net Loans and Advances by Market
FCE BANK PLC 2014 SECOND QUARTER PERCENT OF NET LOANS & ADVANCES TO CUSTOMERS BY MARKET COMPARED WITH DECEMBER 31, 2013* U.K. Germany Italy France Spain Other 39% WWTF** 3.9% 36% Switzerland 3.5% Belgium 2.0% Netherlands 1.8% Austria 1.2% All Other 3.3% 29% 26% 17% 16% 8% 8% 7% 7% 4% 3% 2013 2014 20
Slide 24: FCE Bank: Credit Loss Ratio Compared with 2013
FCE BANK PLC 2014 SECOND QUARTER CREDIT LOSS RATIO COMPARED WITH 2013 Net Credit Losses As Percentage Of Average Net Loans And Advances To Customers Total FCE U.K. Germany Italy France Spain * 6.06% 0.84% 0.77% 0.80% 0.42% 0.17% 0.13% 0.19% 0.12% 0.14% 0.04% (0.02)% 2013 2014 2013 2014 2013 2014 201
Slide 25: FCE Bank: Public Term Funding Plan
FCE BANK PLC PUBLIC TERM FUNDING PLAN 2014 2012 2013 YTD Actual Actual Forecast Actual (Bils.) (Bils.) (Bils.) (Bils.) Unsecured £ 0.7 £ 1.6 £ 1.5 – 1.9 £ 1.5 Securitizations 0.4 0.4 0.6 – 0.9 0.4 Total £ 1.1 £ 2.0 £ 2.1 – 2.8 £ 1.9 APPENDIX 10
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