Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (April 2011)
37 slides from Ford Mtr Co del's debt investor presentation, Apr 26, 2011
Slide 1: 2011 First Quarter Fixed Income Presentation
2011 FIRST QUARTER FIXED INCOME PRESENTATION APRIL 26, 2011 (PRELIMINARY RESULTS)
Slide 2: 2011 First Quarter Overview
TOTAL COMPANY 2011 FIRST QUARTER OVERVIEW • Another quarter of growth, profitability, and positive Automotive operating-related cash flow – Volume up 12% and net revenue up 18% compared with a year ago – Seventh consecutive quarter of pre-tax operating profit -- $2.8 billion, up over 40% from a year
Slide 3: 2011 Key Financial Summary
TOTAL COMPANY 2011 KEY FINANCIAL SUMMARY First Quarter B / (W) 2011 2010 Wholesales (000)* 1,403 150 Revenue (Bils.)** $ 33.1 $ 5.0 Operating results** Pre-tax results (Mils.) $ 2,837 $ 827 After-tax results (Mils.) 2,612 851 Earnings per share 0.62 0.16 Special items pre-tax (Mils.) $ (61) $ (186)
Slide 4: 2011 Cash
AUTOMOTIVE SECTOR 2011 CASH* First Quarter (Bils.) Gross Cash March 31, 2011 $ 21.3 December 31, 2010 20.5 Change in gross cash $ 0.8 Automotive pre-tax profits** $ 2.1 Capital spending (0.9) Depreciation and amortization 0.9 Changes in working capital 1.5 Other / timing differences (1.3) Up-front s
Slide 5: 2011 Automotive Financial Resources
AUTOMOTIVE SECTOR 2011 AUTOMOTIVE FINANCIAL RESOURCES Dec. 31, Mar. 31, 2010 2011 (Bils.) (Bils.) Automotive gross cash* $ 20.5 $ 21.3 Less: Long-Term debt $ 17.1 $ 14.6 Debt payable within one year 2.0 2.0 Total debt $ 19.1 $ 16.6 $ 2.5 Net cash** $ 1.4 $ 4.7 Memo: Liquidity*** $ 27.9 $ 30.7 * See
Slide 6: Japan Events Update
JAPAN EVENTS UPDATE • Multiple suppliers impacted by facility damage and infrastructure issues • Minimal impact on our First Quarter vehicle production volume, largely through use of pipeline inventories • Looking forward, Asia Pacific Africa Operations expect to be affected by shortages of componen
Slide 7: 2011 Planning Assumptions and Key Metrics
TOTAL COMPANY 2011 PLANNING ASSUMPTIONS AND KEY METRICS First Full Year Full Year Quarter Plan Outlook Planning Assumptions Industry Volume (SAAR)* -- U.S. (Mils.) 13.4 13.0 - 13.5 On Track Industry Volume (SAAR)* -- Europe (Mils.)** 15.9 14.5 - 15.5 On Track Operational Metrics Compared with Prior
Slide 8: Ford Credit Results and Metrics - 2011 First Quarter
FORD CREDIT RESULTS AND METRICS -- 2011 FIRST QUARTER Pre-Tax Profit (Mils.) Key Metrics First Quarter $(115) 2010 2011 On-Balance Sheet $828 Receivables (Bils.) $ 88 $ 83 Charge-Offs (Mils.) $ 133 $ 55 Loss-to-Receivables Ratio $713 - Worldwide 0.58% 0.27% - U.S. Retail and Lease 0.91 0.45 Allowanc
Slide 9: 2011 First Quarter Pre-Tax Results Compared with 2010
2011 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2010 Millions $(115) $828 $713 Market Valuation Adj. $(90) Operating Costs 25 Other 15 $40 $15 $(70) $(50) $(50) 2010 2011 Volume Financing Credit Lease Other Memo: Margin Loss Residual B / (W) 4Q 2010 $141 $(5) $- $50 $(20) $116 Managed Receivables (
Slide 10: Credit Loss Metrics
CREDIT LOSS METRICS* Loss-to-Receivables Ratio Worldwide Ford and Lincoln U.S. Retail & Lease 1.35% 0.98% 0.91% 0.78% 0.58% 0.59% 0.47% 0.39% 0.45% 0.44% 0.45% 0.27% Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Worldwide Charge-Offs (Mils.) $238 $133 $86 $95 $101 $55 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 * On-balanc
Slide 11: Credit Loss Drivers - Ford and Lincoln U.S. Retail and Lease
CREDIT LOSS DRIVERS – FORD AND LINCOLN U.S. RETAIL AND LEASE* Repossessions (000) Severity 23 Repo. $7,700 Ratio $7,300 19 $6,700 $6,600 $6,900 $6,500 16 15 14 3.20% 12 2.77% 2.46% 2.18% 2.22% 1.98% Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2009 2010 2011 Over-60-Day Delinquencies 0.20% 0.1
Slide 12: Lease Residual Performance - Ford and Lincoln U.S.
LEASE RESIDUAL PERFORMANCE -- FORD AND LINCOLN U.S.* 36-Month Auction Values Lease Return Volume (000) (At Q1 2011 Mix) 24-Month 36-Month 39-Month / Other $15,910 $15,380 $15,420 46 $14,770 $14,905 44 $14,505 13 39 36 16 9 30 30 1 17 20 16 17 16 19 12 13 14 13 13 7 9 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4
Slide 13: Ford Credit Funding
FORD CREDIT FUNDING • On track to complete our Full Year funding plan • Completed $7 billion of funding in the First Quarter • Completed additional $3 billion of funding in April • Diversified our investor base with the launch of Ford Upgrade Exchange Linked (FUEL) Notes • Continued to fund our plan
Slide 14: Ford Credit Funding Strategy
FORD CREDIT FUNDING STRATEGY Funding of Managed Receivables (Bils.) $118 Ford Interest Advantage $2 Asset-Backed Commercial $12 $95 Paper $4 $83 $85 $82-87 $6 $5 ~$5 $5 Term Asset-Backed Securities $61 $7 $7 $6-7 $47 $37 $38 $39-42 Term Debt and Other $56 $44 $39 $38 $36-38 Equity $11 $11 $10 $10 $8
Slide 15: Ford Credit Term Funding Plan
FORD CREDIT TERM FUNDING PLAN 2011 2008 2009 2010 YTD Actual Actual Actual Forecast Actual (Bils.) (Bils.) (Bils.) (Bils.) (Bils.) Public Transactions Unsecured $ 2 $ 5 $ 6 $ 7- 9 $ 2 Securitizations* 11 15 11 11 – 14 4 Total Public $ 13 $ 20 $ 17 $ 18 – 22 $ 6 Private Transactions** $ 29 $ 11 $ 8 $
Slide 16: Ford Credit Liquidity Programs
FORD CREDIT LIQUIDITY PROGRAMS March 31, 2011 (Bils.) Capacity & $46.6 Committed Capacity = $33.6 billion* Cash**** Securitization $4.5** Cash Committed $6.2*** Excess Capacity Capacity / Liquidity $23.8 Liquidity $13.0 $35.9 $4.5** $8.7 $1.1 $8.5 Unsecured FCAR Conduits / Cash**** Total Credit Line
Slide 17: First Quarter 2011 Summary
FIRST QUARTER 2011 SUMMARY* Ford (Total Company) • Pre-tax operating profit, excluding special items, of $2.8 billion • Net income attributable to Ford of $2.6 billion • Automotive liquidity was $30.7 billion • Reduced Automotive debt by $2.5 billion and achieved net cash of $4.7 billion at the end
Slide 18: 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 19: Appendix
APPENDIX
Slide 20: 2011 First Quarter Financial Results
TOTAL COMPANY 2011 FIRST QUARTER FINANCIAL RESULTS First Quarter B / (W) 2011 2010 (Mils.) (Mils.) Income / (Loss) Pre-tax results (excl. special items) $ 2,837 $ 827 Special items* (61) (186) Pre-tax results (incl. special items) $ 2,776 $ 641 (Provision for) / Benefit from income taxes (220) (170)
Slide 21: Calculation of Earnings per Share
TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE First Quarter 2011 After-Tax Net Income Oper. Attributable Excl. Special to Ford Items After-Tax Results (Mils.) After-tax results* $ 2,551 $ 2,612 Effect of dilutive 2016 Convertible Notes** 14 14 Effect of dilutive 2036 Convertible Notes** - - Effect
Slide 22: Income / (Loss) from Continuing Operations
TOTAL COMPANY INCOME / (LOSS) FROM CONTINUING OPERATIONS First Quarter 2010 2011 (Mils.) (Mils.) North America $ 1,253 $ 1,844 South America 203 210 Europe 107 293 Asia Pacific Africa 23 33 Other Automotive (391) (249) Total Automotive (excl. special items) $ 1,195 $ 2,131 Special items -- Automotiv
Slide 23: 2011 Special Items
TOTAL COMPANY 2011 SPECIAL ITEMS First Quarter 2010 2011 (Mils.) (Mils.) Personnel and Dealer-Related Items Personnel-reduction actions $ (86) $ (22) Mercury discontinuation / Other dealer actions (15) (1) Job Security Benefits / Other 38 (1) Total Personnel and Dealer-Related Items $ (63) $ (24) Ot
Slide 24: Revenue Reconciliation to GAAP
TOTAL COMPANY REVENUE RECONCILIATION TO GAAP First Quarter 2010 2011 (Bils.) (Bils.) North America $ 14.1 $ 17.9 South America 2.0 2.3 Europe 7.7 8.7 Asia Pacific Africa 1.6 2.1 Total Automotive (excl. special items) $ 25.4 $ 31.0 Special items -- Volvo 3.5 - Total Automotive $ 28.9 $ 31.0 Financial
Slide 25: Wholesales
TOTAL COMPANY WHOLESALES* First Quarter 2010 2011 (000) (000) North America 547 615 South America 101 114 Europe** 416 432 Asia Pacific Africa*** 189 242 Total Automotive (excl. special items) 1,253 1,403 Special items -- Volvo 92 - Total Automotive 1,345 1,403 * Wholesale unit volumes include all F
Slide 26: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Mar. 31, Dec. 31, Mar. 31, 2010 2010 2011 (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 12.8 $ 6.3 $ 12.6 Marketable securities* 12.5 14.2 8.8 Total cash and marketable securities $ 25.3 $ 20.5 $ 21.4 Securities in transit** - - (0.1) Gross c
Slide 27: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP First Quarter 2010 2011 (Bils.) (Bils.) Cash flows from operating activities of continuing operations* $ - $ 3.1 Items included in operating-related cash flows Capital expenditures (0.9) (0.9) Proceeds from the exercise of stock o
Slide 28: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, Dec. 31, Mar. 31, 2009 2010 2011 (Bils.) (Bils.) (Bils.) U.S. Debt Unsecured notes $ 5.5 $ 5.2 $ 5.2 Unsecured convertible notes 2.6 0.7 0.7 Total unsecured notes $ 8.1 $ 5.9 $ 5.9 Unsecured portion of VEBA debt 4.0 - - Trust Preferred 3.1 3.0 - Total unsec
Slide 29: 2011 Production Volumes
AUTOMOTIVE SECTOR 2011 PRODUCTION VOLUMES* 2011 First Quarter Second Quarter Actual Forecast O / (U) O / (U) Units 2010 Units 2010 (000) (000) (000) (000) North America 657 83 710 57 South America 112 2 130 (1) Europe 446 4 420 (31) Asia Pacific Africa 236 60 195 (13) Total 1,451 149 1,455 12 * Incl
Slide 30: Ford Credit Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS First Quarter 2010 2011 Shares United States Financing share – Ford and Lincoln* Retail installment and lease 35% 36% Wholesale 80 81 Europe Financing share – Ford Retail installment and lease 23% 27% Wholesale 99 99 Contract Placement Volume – New and used retail /
Slide 31: Ford Credit Charge-Offs and Loss-to-Receivables Ratio
FORD CREDIT CHARGE-OFFS AND LOSS-TO-RECEIVABLES RATIO First Quarter 2010 2011 Charge-offs – On-Balance Sheet (Mils.) Retail installment and lease $ 143 $ 59 Wholesale (5) (4) Other (5) 0 Total charge-offs – on-balance sheet $ 133 $ 55 Total loss-to-receivables ratio – on-balance sheet 0.58% 0.27% AP
Slide 32: Ford Credit Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Mar. 31, Dec. 31, Mar. 31, 2010 2010 2011 (Bils.) (Bils.) (Bils.) Receivables -- On-Balance Sheet Retail installment $ 53.8 $ 49.7 $ 49.4 Wholesale 21.5 22.0 24.0 Other finance receivables 2.5 2.3 2.4 Unearned interest supplements (2.0) (1.9)
Slide 33: Debt Ratings - Ford and Ford Credit
DEBT RATINGS -- FORD AND FORD CREDIT S&P Moody’s Fitch DBRS Issuer Ratings Ford Motor BB- Ba2* BB BB (low) Ford Credit BB- Ba2 BB BB Senior Long-Term Unsecured Ford Motor B+ Ba3 BB- B Ford Credit BB- Ba2 BB- BB FCE Bank plc BB Ba2 BB- NR Short-Term Unsecured Ford Credit NR NP B R-4 Secured Funding F
Slide 34: 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 35: Ford Credit Ratio Definitions
FINANCIAL SERVICES SECTOR 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
Slide 36: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FINANCIAL SERVICES SECTOR FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Mar. 31, Mar. 31, 2010 2011 (Bils.) (Bils.) Leverage Calculation Total Debt* $ 94.2 $ 82.9 Adjustments for Cash, Cash Equivalents, and Marketable Securities** (20.7) (13.0) Adjustments for Deriv
Slide 37: Liquidity Profile of Ford Credit's Balance Sheet
LIQUIDITY PROFILE OF FORD CREDIT’S BALANCE SHEET Cumulative Maturities -- As of December 31, 2010 (Bils.) Assets * Debt ** $97 $90 $81 $83 $69 $64 $61 $47 *** 2011 2012 2013 2014 & beyond Memo: Unsecured Long-term debt maturities (Bils.) $9.1 $6.8 $5.3 $12.7 * Includes finance receivables net of une
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