Ford Mtr Co del · NYSE:F

Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (October 2014)

26 slides from Ford Mtr Co del's debt investor presentation, Oct 24, 2014

  1. Slide 1: 2014 Third Quarter Fixed Income Presentation

    2014 THIRD QUARTER FIXED INCOME PRESENTATION OCTOBER 24, 2014 (PRELIMINARY RESULTS)

  2. Slide 2: Ford Credit Operating Highlights

    FORD CREDIT OPERATING HIGHLIGHTS* • Another solid performance with Third Quarter pre-tax profit of $498 million and net income of $718 million • Managed receivables of $110 billion at Quarter End, up $7 billion from Year-End 2013, and up $11 billion from a year ago • Loss-to-receivables ratio of 0.1

  3. Slide 3: 2014 Third Quarter Pre-Tax Results Compared with 2013

    FORD CREDIT 2014 THIRD QUARTER PRE-TAX RESULTS COMPARED WITH 2013 Millions $71 $498 $427 $103 $18 $12 $(25) $(37) 2013 2014 Volume Financing Credit Lease Other Memo: 3Q 3Q Margin Loss Residual B / (W) 2014 2Q $64 $16 $24 $(30) $(10) $64 Receivables (Bils.) Net * $96 $106 Managed ** 99 110 * Net rece

  4. Slide 4: Worldwide Credit Loss Metrics

    FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils.) Loss-to-Receivables Ratio (LTR) $52 $52 $47 $48 0.19% 0.20% 0.20% 0.17% $33 0.12% 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 2013 2014 2013 2014 Memo: Retail & Lease $45 $51 $55 $31 $48 Credit Loss Reserve (Mils.) and Reserve as a Pct. of EOP Managed

  5. 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% 0.15% 1.07% 0.12% 0.98% 8 7 7 7 6 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q Memo: 2013 2014 2013 2014 New Bankruptcy Filings (000) 4 4 3 4 4 Severity Charge-Offs

  6. Slide 6: U.S. Lease Residual Performance

    FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 3Q 2014 Mix) 24-Month 36-Month 39-Month / Other 24-Month 60 $19,015 $18,465 $18,645 50 $18,070 44 $17,880 $18,250 $18,385 40 34 30 $17,840 $17,660 27 24 $17,190 36-Month 21 17 12 13 12 5 8 5 5 8 7 8 3Q 4Q 1Q 2Q

  7. Slide 7: Funding Highlights

    FORD CREDIT FUNDING HIGHLIGHTS • Completed $24 billion of public term funding year-to-date, including $6 billion in the Third Quarter: – Unsecured debt totaling about $4 billion – ABS transactions totaling about $2 billion • Completed syndicated term loan for Ford Credit China • Ended the quarter wi

  8. Slide 8: 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 $ 11 – 14 $ 11 Securitizations** 14 14 14 – 15 13 Total $ 23 $ 25 $ 26 – 29 $ 24 * Includes transactions scheduled to settle through October 24, 2014 ** Includes

  9. Slide 9: Funding Structure

    FORD CREDIT FUNDING STRUCTURE Funding of Managed Receivables (Bils.) $112-115 $110 ~$2 $103 $2 ~$6 Unsecured Commercial Paper $2 $6 $92 $5 Ford Interest Advantage* $2 $3 Asset-Backed Commercial Paper** $5 $6 $43-44 $43 $43 Term Asset-Backed Securities** $37 $53-56 $53 Term Debt (incl Bank Borrowings

  10. Slide 10: Liquidity Programs

    FORD CREDIT LIQUIDITY PROGRAMS June 30, Sep. 30, 2014 2014 (Bils.) (Bils.) Liquidity Sources Cash * $ 9.3 [ $ 10.6 ] Committed ABS lines ** 33.5 [ 33.0 ] Committed Capacity FCE / Other unsecured credit facilities 1.7 [ 1.9 ] $36.9 billion Ford revolving credit facility allocation 2.0 [ 2.0 ] Total L

  11. Slide 11: 2014 Automotive Financial Resources

    AUTOMOTIVE SECTOR 2014 AUTOMOTIVE FINANCIAL RESOURCES June 30, Sep. 30, 2014 2014 (Bils.) (Bils.) Automotive gross cash* $ 25.8 $ 22.8 Less: Long-term debt $ (13.2) $ (12.2) Debt payable within one year (2.2) (2.7) Total debt $ (15.4) $ (14.9) Net cash** $ 10.4 $ 7.9 Memo: Liquidity*** $ 36.7 $ 33.6

  12. Slide 12: 2014 Third Quarter Summary

    2014 THIRD QUARTER SUMMARY Ford* • Company profitable for 21st consecutive quarter; liquidity strong; Automotive operating-related cash flow negative • North America and Asia Pacific profitable; results lower than a year ago for all Automotive Business Units except Middle East & Africa • Guidance un

  13. 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

  14. Slide 14: Appendix

    APPENDIX

  15. Slide 15: 2014 Third Quarter Fixed Income -- Appendix Index

    2014 THIRD QUARTER FIXED INCOME -- APPENDIX INDEX Slide Total Company • Income from Continuing Operations 1 • Debt Ratings 2 • 2015 Guidance 3 Automotive Sector • Gross Cash Reconciliation to GAAP 4 • Automotive Debt 5 Ford Credit • Operating Highlights 6 • Net Finance Receivables and Operating Leas

  16. Slide 16: 2014 Income from Continuing Operations

    2014 INCOME FROM CONTINUING OPERATIONS APPENDIX SLIDE 15 1

  17. 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 Short

  18. Slide 18: 2015 Guidance

    TOTAL COMPANY 2015 GUIDANCE Outlook Planning Assumptions (Mils.) Industry Volume* -- U.S. 16.8 - 17.5 -- Europe 20 14.8 - 15.3 -- China 24.0 - 26.0 Key Metrics Automotive: - Revenue Higher *** - Operating Margin** Higher *** - Operating-Related Cash Flow** Positive Ford Credit: - Pre-Tax Profit Equa

  19. Slide 19: Gross Cash Reconciliation to GAAP

    AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2013 2014 Sep. 30 Dec. 31 Mar. 31 June 30 Sep. 30 (Bils.) (Bils.) (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 5.7 $ 5.0 $ 4.5 $ 4.7 $ 6.0 Marketable securities 20.4 20.1 20.7 21.1 16.9 Total cash and marketable securities (GAAP) $ 26.1 $ 25

  20. Slide 20: Automotive Debt

    AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, 2014 2013 June 30 Sep. 30 (Bils.) (Bils.) (Bils.) Public unsecured debt $ 6.7 $ 6.6 $ 6.7 Convertible notes 0.8 0.8 0.8 U.S. Department of Energy 5.0 4.7 4.6 Other debt (including International) 3.2 3.3 2.8 Total Automotive debt $ 15.7 $ 15.4 $ 14.9 Memo: A

  21. Slide 21: Operating Highlights

    FORD CREDIT OPERATING HIGHLIGHTS Third Quarter First Nine Months 2013 2014 2013 2014 Contract Placement Volume -- New and used retail / lease (000) North America Segment United States 294 356 834 946 Canada 42 47 107 111 Total North America Segment 336 403 941 1,057 International Segment Europe 98 1

  22. Slide 22: Net Finance Receivables and Operating Leases

    FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2013 Sep. 30, 2014 Receivables * (Bils.) (Bils.) Net Receivables Finance Receivables Finance receivables – North America Segment Consumer retail financing $ 40.9 $ 43.5 Non-Consumer Dealer financing ** 22.1 21.5 Other 1.0 0.9 Total fi

  23. Slide 23: Reconciliation of Managed Leverage to Financial Statement Leverage

    FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Dec. 31, Sep. 30, 2013 2014 (Bils.) (Bils.) Leverage Calculation Total Debt * $ 98.7 $ 104.0 Adjustments for Cash, Cash Equivalents, and Marketable Securities** (10.8) (10.6) Adjustments for Derivative Accounting*** (0.2)

  24. Slide 24: Percent of Net Loans & Advances to Customers by Market

    FCE BANK PLC PERCENT OF NET LOANS & ADVANCES TO CUSTOMERS BY MARKET September 30, 2014 Compared With December 31, 2013* U.K. Germany Italy France Spain Other 42% WWTF** 3.7% Switzerland 3.3% Belgium 2.0% Netherlands 1.7% 36% Eastern Europe 2.3% All Other 1.8% 29% 25% 17% 15% 8% 7% 7% 7% 4% 3% 2013 2

  25. Slide 25: 2014 Third Quarter Credit Loss Ratio Compared with 2013

    FCE BANK PLC 2014 THIRD 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 1.30 % 0.75 % 0.21 % 0.25 % 0.09 % 0.08 % 0.05 % 0.10 % 0.07 % (0.04)% (0.27)% (0.22)% 2013 2014 2013 2014 201

  26. Slide 26: 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 £ 1.4 – 1.9 £ 1.4 Securitizations 0.4 0.4 0.8 0.4 Total £ 1.1 £ 2.0 £ 2.2 – 2.7 £ 1.8 * Includes transactions scheduled to settle through October 24, 2014 APP

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