Ford Mtr Co del · NYSE:F
Ford Mtr Co del — FCE Bank — H1 2011 Earnings Presentation
25 slides from Ford Mtr Co del's earnings presentation, Sep 8, 2011
Slide 1: Investor Call: FCE Bank plc 2011 Interim Financial Results
INVESTOR CALL FCE BANK PLC 2011 INTERIM FINANCIAL RESULTS September 8, 2011 Peter Jepson -- FCE Executive Director, Finance & Strategy Sam Smith -- FCE Treasurer SLIDE 0
Slide 2: Who We Are
FCE BANK PLC WHO WE ARE • FCE is a public limited company Markets Served By: incorporated in the UK, wholly FCE Company and Branches owned by the Ford Motor Credit FCE Company Subsidiaries Forso Nordic AB • FCE operates as a licensed bank Joint Venture regulated by the UK Financial Services Authorit
Slide 3: What We Do
FCE BANK PLC WHAT WE DO • FCE’s Aim: Net Receivables by Product – Support Ford sales June 2011 – Consistently profitable • FCE’s Core Customers: – Ford retail customers Wholesale 48% Retail 52% – Ford dealers – Ford automotive operations Substantially All FCE Lending Is Secured (The Security Is Typi
Slide 4: Integration Creates a Strategic Advantage
FCE BANK PLC INTEGRATION CREATES A STRATEGIC ADVANTAGE • Trusted Brand • Access to Dealer Channel • Automotive Specialist with Vested Interest in Ford Dealer Success More • Training & Consulting Products, • Consistent Market Presence Faster • Fast, Flexible, Quality Service • Full Array of Products
Slide 5: Strategic Priorities
FCE BANK PLC STRATEGIC PRIORITIES • FCE’s strategic priorities include continuing to: – Effectively and consistently manage risk – Execute a funding strategy that balances liquidity and cost – Ensure a competitive operating cost structure – Invest in customer-facing technology – Align closely with F
Slide 6: 2011 Interim Performance Summary
FCE BANK PLC 2011 INTERIM PERFORMANCE SUMMARY • £107 million pre-tax profit in the First Half • £108 million adjusted pre-tax profit in the First Half • Credit losses have continued to improve and remain low • Funding plan on track • Balance sheet continues to be inherently liquid • Tier-1 capital r
Slide 7: Outstanding Net Loans and Advances by Brand
FCE BANK PLC OUTSTANDING NET LOANS AND ADVANCES BY BRAND Reported in Sterling (£ Bils.) Translated into Euros (€ Bils.) Ford Brand 21.2 Other Brands 18.1 17.3 7.6 15.5 5.4 5.2 14.0 12.5 12.5 12.6 5.5 11.3 2.2 0.4 10.8 0.3 0.8 2.0 0.7 13.6 12.1 12.7 12.1 11.8 11.8 10.5 11.0 10.0 10.1 Dec. 31, Dec. 31
Slide 8: Net Loans and Advances to Customers by Market
FCE BANK PLC NET LOANS AND ADVANCES TO CUSTOMERS BY MARKET 35% 'Other' By Market June 2011 30% 32% Worldwide Trade Financing 3.1% Eastern Europe 3.1% 25% 26% Netherlands 2.7% 20% Belgium 2.4% Portugal 1.8% 15% 15% Austria 1.3% 13% 10% Greece 0.5% 9% 5% Ireland 0.4% 5% Norway (Retained liquidating po
Slide 9: First Half Funding Highlights
FCE BANK PLC FIRST HALF FUNDING HIGHLIGHTS • Completed £0.9 billion of new issuance in the public asset-backed and term debt markets • Renewed or added £1.2 billion of private securitisation capacity • Entered into a new 3-year £440 million syndicated unsecured multicurrency revolving bank credit fa
Slide 10: Funding Structure
FCE BANK PLC FUNDING STRUCTURE 21.6 £ Billions 2.3 18.2 2.0 16.2 Intercompany debt 1.0 14.0 14.2 9.3 Secured external debt 0.8 0.9 7.4 Unsecured external debt 6.8 5.1 6.1 Other liabilities Equity 5.7 5.3 4.6 4.8 4.1 1.3 0.9 1.0 0.7 0.7 2.5 3.0 2.9 2.6 2.4 2007 2008 2009 2010 2011 31-Dec 31-Dec 31-De
Slide 11: Funding Plan
FCE BANK PLC FUNDING PLAN Public Term Funding Plan 2011 YTD Forecast Actual (Bils.) (Bils.) Unsecured Debt £ 0.4 - 0.9 £ 0.4 Securitisation 0.4 0.4 Total* £ 0.9 - 1.3 £ 0.9 * YTD Total includes a €500 million (approximately £446 million) Euro Medium Term Note issuance in May and a €508 million (appr
Slide 12: Liquidity Sources
FCE BANK PLC LIQUIDITY SOURCES June 30, 2011 (£ Billions) Capacity & £7.0 Cash Securitisation capacity in Committed Capacity = £5.0 billion £0.8 excess of eligible receivables £0.9 *** Cash not available for use in day to day Committed operations Capacity / Liquidity Liquidity £2.0 £5.3 £4.4 £0.9 £0
Slide 13: Capital
FCE BANK PLC CAPITAL • FCE’s Tier-1 capital ratio was about 19% at June 30, 2011 • FCE’s plan is to gradually align its capital base with the current scale of its business while taking into account the funding and liquidity environment – In June 2010 FCE paid a dividend of £390 million – In May 2011
Slide 14: Long-Term Debt Credit Ratings
FCE BANK PLC LONG-TERM DEBT CREDIT RATINGS December 2009 December 2010 August 2011 Fitch B / Positive BB- / Stable BB- / Positive Moody's B3 / Stable Ba2 / Stable Ba2 / Positive S&P B / Stable BB- / Positive BB / Positive 2011 Interim Report Page 13 SLIDE 13
Slide 15: Credit Loss Ratio
FCE BANK PLC CREDIT LOSS RATIO 1.28% 1.19% Net losses as % of average net receivables * 0.43% 0.45% 0.37% 0.36% 0.27% 0.27% 0.22% 1st Half 2007 1st Half 2008 1st Half 2009 1st Half 2010 1st Half 2007 2008 2009 2010 2011 * Includes exceptional losses (refer to page 24 of 2011 Interim Report Note 2: '
Slide 16: Net Credit Losses
FCE BANK PLC NET CREDIT LOSSES Net credit losses as percentage of average net loans and advances to customers 2.00% 1.50% Annualised June 2010 December 2010 1.00% Annualised June 2011 0.50% a/ 0.00% UK Germany Italy Spain France Total FCE a/ France credit losses in December 2010 and June 2011 less t
Slide 17: 2011 Interim Results -- Key Financial Performance Data
FCE BANK PLC 2011 INTERIM RESULTS -- KEY FINANCIAL PERFORMANCE DATA* First Half First Half Key Financial Ratios 2011 2010 Margin (Net Income/Receivables) 3.7% 4.1% Cost efficiency ratio (Cost/Receivables) 1.8% 1.7% Credit loss ratio (Losses/Receivables) including 0.22% 0.37% exceptional items Annual
Slide 18: Profit Trend
FCE BANK PLC PROFIT TREND Profit before Tax (£ Millions) 192 156 152 151 144 140 140 133 124 124 PBT including exceptional items 109 108 108 107 99 Adjusted PBT 93 90 71 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half 1st Half 2007 2007 2008 2008 2009 2009 2010 2010 2011 Memo
Slide 19: 2011 First Half Adjusted Profit Before Tax Compared with First Half 2010
FCE BANK PLC 2011 1ST HALF ADJUSTED PROFIT BEFORE TAX COMPARED WITH 1ST HALF 2010 Net interest income (34) Impairment 140 reversal / losses Down on loans £ 32 mils and advances 108 6 3 Operating efficiencies (7) and other (12) (11) (11) Net fees and commissions income Interest Debt Volume margin rep
Slide 20: 2011 Interim Performance Summary
FCE BANK PLC 2011 INTERIM PERFORMANCE SUMMARY • £107 million pre-tax profit in the First Half • £108 million adjusted pre-tax profit in the First Half • Credit losses have continued to improve and remain low • Funding plan on track • Balance sheet continues to be inherently liquid • Tier-1 capital r
Slide 21: 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 22: Appendix
ONE FORD ONE TEAM ¢ ONE PLAN * ONE GOAL APPENDIX
Slide 23: Liquidity Profile
FCE BANK PLC LIQUIDITY PROFILE Cumulative Contractual Maturities as at 30 June 2011 £ Billions On-balance sheet receivables and cash 18.2 Debt 17.3 15.8 15.5 13.3 11.9 11.0 8.6 30 Jun. 2012 30 Jun. 2013 30 Jun. 2014 1 Jul. 2014 and beyond FCE’s Balance Sheet Is Inherently Liquid 2011 Interim Report
Slide 24: Appendix -- Further Information on FCE
FCE BANK PLC APPENDIX -- FURTHER INFORMATION ON FCE Detailed information on FCE: www.fcebank.com • FCE Bank plc Annual Accounts • FCE Bank plc Interim Reports • Basel II Pillar 3 Disclosure Documents • 2011 Q1 Management Statement Detailed Information on Ford Motor Credit Company: www.fordcredit.com
Slide 25: Feel the difference
ONE FORD ONE TEAM ¢ ONE PLAN * ONE GOAL Feel the difference