Ford Mtr Co del · NYSE:F

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

25 slides from Ford Mtr Co del's debt investor presentation, Apr 25, 2014

  1. Slide 1: 2014 First Quarter Fixed Income Presentation

    2014 FIRST QUARTER FIXED INCOME PRESENTATION APRIL 25, 2014 (PRELIMINARY RESULTS)

  2. Slide 2: Ford Credit Operating Highlights

    FORD CREDIT OPERATING HIGHLIGHTS* • Another solid performance with First Quarter pre-tax profit of $499 million and net income of $312 million • Managed receivables of $106 billion at Quarter End, up $3 billion from Year-End 2013, and up $12 billion from a year ago • Loss-to-receivables ratio of 0.2

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

    FORD CREDIT 2014 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2013 Millions $507 $499 $85 $(15) $(2) $(14) $(8) $(62) 2013 2014 Volume Financing Credit Lease Other Memo: 1Q 1Q Margin Loss Residual B / (W) 2013 4Q $131 $18 $(24) $34 $54 $49 Receivables (Bils.) Net * $91 $103 Managed ** 94 106 * Net re

  4. Slide 4: Worldwide Credit Loss Metrics

    FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils.) Loss-to-Receivables Ratio (LTR) $52 $52 $47 0.20% 0.19% 0.20% 0.20% $45 $32 0.14% 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2013 2014 Memo: Retail & Lease $45 $25 $45 $51 $55 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) Repo. Ratio 0.17% 1.29% 0.16% 0.16% 0.16% 1.24% 1.14% 1.12% 0.13% 1.06% 8 8 7 7 6 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q Memo: 2013 2014 2013 2014 New Bankruptcy Filings (000) 5 4 4 4 3 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 Q1 2014 Mix) 24-Month 36-Month 39-Month / Other 24-Month $19,550 $19,435 60 $19,000 $18,965 $18,315 $17,820 34 40 $17,545 $17,490 $17,055 $16,840 26 27 27 36-Month 21 17 16 17 12 7 5 8 6 5 5 8 3 4 1Q 2Q 3Q 4Q 1Q

  7. Slide 7: Funding Highlights

    FORD CREDIT FUNDING HIGHLIGHTS • Funding plan on track with over $8 billion of public term funding completed in the First Quarter, including: – U.S., Canadian and European unsecured debt transactions totaling about $4 billion – U.S. public asset-backed transactions totaling about $4 billion • Ended

  8. Slide 8: Funding Structure

    FORD CREDIT FUNDING STRUCTURE Funding of Managed Receivables (Bils.) $106 ~$110 $103 $2 ~$3 Unsecured Commercial Paper $2 $6 ~$6 $92 $5 Ford Interest Advantage* $2 $3 $1 Asset-Backed Commercial Paper** $5 $6 $44 $40-44 $43 Term Asset-Backed Securities** $37 $48 $50-54 Term Debt (incl Bank Borrowings

  9. 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 $ 9 – 12 $ 4 Securitizations* 14 14 12 – 15 5 Total $ 23 $ 25 $21 – 27 $ 9 * Includes Rule 144A offerings SLIDE 8

  10. Slide 10: 2014 Liquidity Programs

    FORD CREDIT 2014 LIQUIDITY PROGRAMS Dec. 31, Mar. 31, 2013 2014 (Bils.) (Bils.) Liquidity Sources* Cash** $ 10.8 [ $ 10.7 Unsecured Credit Facilities 1.6 [ 1.6 Committed Capacity FCAR Bank Lines 3.5 [ 1.6 $34 billion Conduit / Bank ABS 29.4 [ 30.8 Total Liquidity Sources $ 45.3 [ $ 44.7 Utilization

  11. Slide 11: 2014 Automotive Financial Resources

    AUTOMOTIVE SECTOR 2014 AUTOMOTIVE FINANCIAL RESOURCES SLIDE 10

  12. Slide 12: 2014 First Quarter Summary

    2014 FIRST QUARTER SUMMARY Ford* • Company profitable for 19th consecutive quarter; Automotive operating- related cash flow positive • Record profit for any quarter in Asia Pacific; profitable in North America and Middle East & Africa; losses in Europe and South America • Ended the quarter with Auto

  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 First Quarter Fixed Income Appendix Index

    2014 FIRST 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 • Reconciliat

  16. Slide 16: 2014 Income from Continuing Operations

    2014 INCOME FROM CONTINUING OPERATIONS Memo: First Quarter Full Year 2013 2014 2013 (Mils.) (Mils.) (Mils.) Automotive North America $ 2,392 $ 1,500 $ 8,809 South America (218) (510) (33) Europe (425) (194) (1,442) Middle East & Africa 47 54 (69) Asia Pacific (28) 291 327 Other Automotive (125) (222

  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 S

  18. Slide 18: Gross Cash Reconciliation to GAAP

    AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP APPENDIX 3

  19. Slide 19: Automotive Debt

    AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, Mar. 31, 2013 2014 (Bils.) (Bils.) Public unsecured debt $ 6.7 $ 6.6 Convertible notes 0.8 0.8 U.S. Dept. of Energy / Ex-Im loans 5.3 5.2 Other debt (including International) 2.9 3.1 Total Automotive debt $ 15.7 $ 15.7 Memo: Automotive debt payable within o

  20. Slide 20: Operating Highlights

    FORD CREDIT OPERATING HIGHLIGHTS First Quarter 2013 2014 Contract Placement Volume -- New and used retail / lease (000) North America Segment United States 272 284 Canada 25 24 Total North America Segment 297 308 International Segment Europe 103 112 Other International 18 34 Total International Segm

  21. Slide 21: Net Finance Receivables and Operating Leases

    FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2013 Mar. 31, 2014 (Bils.) (Bils.) Receivables * Net Receivables Finance Receivables Finance Receivables – North America Segment Consumer -- Retail financing $ 40.9 $ 40.7 Non-Consumer Dealer financing ** 22.1 23.2 Other 1.0 1.0 Total

  22. Slide 22: Reconciliation of Managed Leverage to Financial Statement Leverage

    FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Dec. 31, Mar. 31, 2013 2014 (Bils.) (Bils.) Leverage Calculation Total Debt * $ 98.7 $ 101.0 Adjustments for Cash, Cash Equivalents, and Marketable Securities** (10.8) (10.7) Adjustments for Derivative Accounting*** (0.2)

  23. Slide 23: FCE Bank PLC Percent of Net Loans & Advances by Market

    FCE BANK PLC 2014 FIRST QUARTER PERCENT OF NET LOANS & ADVANCES TO CUSTOMERS BY MARKET COMPARED WITH 2013* U.K. Germany Italy France Spain Other Switzerland 4.0% 38% WWTF** 3.7% Belgium 2.3% 35% Netherlands 2.0% Eastern Europe 1.9% Austria 1.3% All other 1.1% 29% 27% 16% 14% 10% 8% 8% 7% 4% 4% 2013

  24. Slide 24: FCE Bank PLC Credit Loss Ratio Compared with 2013

    FCE BANK PLC 2014 FIRST 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 0.92% 0.59% 0.16% 0.07% 0.20% 0.11% 0.05% 0.03% 0.05% 0.01% (0.42)% (0.68)% 2013 2014 2013 2014 2013 2014 2013

  25. Slide 25: FCE Bank PLC 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 £1.1 – 1.7 £ 0.7 Securitizations 0.4 0.4 0.6 – 1.0 - Total £ 1.1 £ 2.0 £1.7 – 2.7 £ 0.7 APPENDIX 10

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