Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Q1 2013 Earnings Presentation
41 slides from Ford Mtr Co del's earnings presentation, Apr 24, 2013
Slide 1: 2013 First Quarter Earnings Review
2013 FIRST QUARTER EARNINGS REVIEW APRIL 24, 2013 (PRELIMINARY RESULTS)
Slide 2: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 3: Global Core Platforms
TOTAL COMPANY GLOBAL CORE PLATFORMS B-Platform (Fiesta) C-Platform (Focus) C/D Platform (Fusion / Mondeo) Sports Car (Mustang) D-Platform (Explorer) Light Truck (Ranger) Full-Size Pickup (F-150) Over 8500 Pickup (Super Duty) Full-Size Van (Transit) SLIDE 2
Slide 4: 2013 First Quarter Summary
TOTAL COMPANY 2013 FIRST QUARTER SUMMARY • Total Company profitable for 15th consecutive quarter; positive Automotive operating-related cash flow; strong liquidity • Wholesale volume and Total Company revenue higher than a year ago, including market share gains in North America and Asia Pacific Afri
Slide 5: 2013 First Quarter Highlights
TOTAL COMPANY 2013 FIRST QUARTER HIGHLIGHTS • Launched Fusion Energi in North America; Fusion in South America; Fiesta ST in Europe; Kuga in Europe and China; and EcoSport, Explorer, and Focus ST in China • Revealed Ford Atlas and Lincoln MKC concepts • Focus was named world’s best-selling passenger
Slide 6: Key Financial Summary
TOTAL COMPANY 2013 FIRST QUARTER KEY FINANCIAL SUMMARY First Quarter B / (W) 2013 2012 Wholesales (000) 1,497 139 Revenue (Bils.) $ 35.8 $ 3.4 Operating results* Pre-tax results (Mils.) $ 2,146 $ (147) After-tax results (Mils.) 1,642 64 Earnings per share 0.41 0.02 Special items pre-tax (Mils.) $ (2
Slide 7: Pre-Tax Results by Sector
TOTAL COMPANY 2013 FIRST QUARTER PRE-TAX RESULTS BY SECTOR* Millions $2,146 $1,643 Ford Credit $507 Other (4) $503 Total Automotive Financial Services Memo: B / (W) 2012 $(147) $(194) $47 B / (W) 2012 4Q 465 381 84 * Excludes special items; see Appendix for detail and reconciliation to GAAP SLIDE 6
Slide 8: Total Automotive Key Metrics Compared with 2012
AUTOMOTIVE SECTOR -- TOTAL AUTOMOTIVE 2013 FIRST QUARTER KEY METRICS COMPARED WITH 2012* Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.)** 1,497 $33.9 $1,837 6.4% 1,358 $30.5 $1,643 5.2% 2012 2013 2012 2013 2012 2013 2012 2013 * Excludes special items; see Appendix f
Slide 9: Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012* Billions Market Factors Total Cost $(0.2) Industry $ 0.2 Share 0.2 Mfg. / Engineering $(0.4) Stocks 0.4 Advert. & Sales Promo. (0.2) $1.8 Mix / Other (0.1) Spending Related (0.1) $1.6 Pension / OPEB (0.1) Pricing $ 0.9 Admin. &
Slide 10: Pre-Tax Results by Segment
AUTOMOTIVE SECTOR 2013 FIRST QUARTER PRE-TAX RESULTS BY SEGMENT* Millions $2,442 $1,643 Net Interest $(189) Fair Mkt. Value Adj. / Other 64 $6 $(125) $(218) $(462) Total North South Europe Asia Other America America Pacific Automotive Africa Memo: B / (W) 2012 1Q $(194) $309 $(272) $(313) $101 $(19
Slide 11: North America Key Metrics Compared with 2012
AUTOMOTIVE SECTOR -- NORTH AMERICA 2013 FIRST QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.) 761 $22.3 $2,442 $2,133 11.5% 651 $18.6 11.0% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Quarter (U.S. Market) U.S. Industry
Slide 12: North America Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR -- NORTH AMERICA 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Billions U.S. Industry $ 0.3 $0.3 U.S. Share 0.3 Stocks 0.3 Mix / Other (0.2) $2.4 $2.1 Material Incl. Commod. $(0.2) Pricing $ 0.6 Incentives / Other (0.3) Mfg. / Engineering $(0.3) Advert. & Sales Promo. (0.1)
Slide 13: U.S. Market Share
AUTOMOTIVE SECTOR -- NORTH AMERICA U.S. MARKET SHARE Total Share of Total Industry Retail Share of Retail Industry* 15.6% 15.3% 15.9% 15.2% 14.8% 13.8% 13.6% 14.0% 12.9% 12.8% First Second Third Fourth First First Second Third Fourth First Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quar
Slide 14: South America Key Metrics Compared with 2012
AUTOMOTIVE SECTOR -- SOUTH AMERICA 2013 FIRST QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000) Revenue (Bils.) Results (Mils.) Margin (Pct.) 118 $2.4 113 $2.3 $54 2.3% $(218) (9.4)% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Quarter Industry SAAR (Mils.)* 5.4 5.6 Ma
Slide 15: South America Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR -- SOUTH AMERICA 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Industry $(18) Share (26) Stock (16) Mix / Other 86 $204 $81 $54 $26 $(91) $(133) $(272) $(218) Material Incl. Commod. $(119) Warranty / Freight (14) $(359) 2012 2013 Volume / Net Contribution Other Exc
Slide 16: Europe Key Metrics Compared with 2012
AUTOMOTIVE SECTOR -- EUROPE 2013 FIRST QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000)* Revenue (Bils.) Results (Mils.) Margin (Pct.) 372 $7.2 341 $6.7 $(149) (2.0)% $(462) (6.9)% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Quarter Industry SAAR (Mils.)** 14.2 13.3
Slide 17: Europe Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR -- EUROPE 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Material Incl. Commod. $70 Warranty / Freight 61 Memo: (Included in cost columns) Industry $(107) Share (126) Stocks 180 $131 Mix / Other (40) $(26) $(40) $(93) $(88) $(110) $(149) $(197) Struc. Costs $(103) C
Slide 18: Europe Transformation Plan Status
AUTOMOTIVE SECTOR -- EUROPE TRANSFORMATION PLAN STATUS • Seven Products Launched Product • Improved Retail Share Sustainable, • Plans for Southampton • Improved Quality Profitable Assembly, Dagenham Stamping and Tooling, and • Lower Stocks Growth Genk Assembly On Track Brand Cost On Track To Deliver
Slide 19: Asia Pacific Africa Key Metrics Compared with 2012
AUTOMOTIVE SECTOR -- ASIA PACIFIC AFRICA 2013 FIRST QUARTER KEY METRICS COMPARED WITH 2012 Pre-Tax Operating Wholesales (000)* Revenue (Bils.) Results (Mils.) Margin (Pct.) 282 $2.6 217 $2.3 $6 0.2% $(95) (4.2)% 2012 2013 2012 2013 2012 2013 2012 2013 Memo: First Quarter Industry SAAR (Mils.)** 32.5
Slide 20: Asia Pacific Africa Pre-Tax Results Compared with 2012
AUTOMOTIVE SECTOR -- ASIA PACIFIC AFRICA 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions Industry $ 34 Share 53 Stocks (31 ) Royalties and Subs. $63 Mix / Other 13 Parts & Accessories 11 $115 Other 41 $69 $101 $23 $18 $6 $(23) $(95) $(101) 2012 2013 Volume / Net Contribution Other Exc
Slide 21: Ford Credit Pre-Tax Results Compared with 2012
FORD CREDIT 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 Millions $55 $507 $452 $55 $50 $14 $(11) $(53) 2012 2013 Volume Financing Credit Lease Other Memo: 1Q 1Q Margin Loss Residual B / (W) 2012 4Q $93 $30 $(28) $11 $36 $44 Receivables (Bils.)* Total $85 $93 Managed 86 94 * Total receivabl
Slide 22: 2013 Cash
AUTOMOTIVE SECTOR 2013 CASH* First Quarter (Bils.) Gross Cash March 31, 2013 $ 24.2 December 31, 2012 24.3 Change in gross cash $ (0.1) Automotive pre-tax profits** $ 1.6 Capital spending (1.5) Depreciation and amortization 1.0 Changes in working capital 0.4 Other / Timing differences (0.8) Automoti
Slide 23: 2013 Automotive Financial Resources
AUTOMOTIVE SECTOR 2013 AUTOMOTIVE FINANCIAL RESOURCES Dec. 31, Mar. 31, 2012 2013 (Bils.) (Bils.) Automotive Gross Cash* $ 24.3 $ 24.2 Less: Long-Term Debt $(12.9) $(14.8) Debt Payable Within One Year (1.4) (1.2) Total Debt $(14.3) $(16.0) Net Cash** $ 10.0 $ 8.2 Memo: Liquidity*** $ 34.5 $ 34.5 * S
Slide 24: 2013 Business Environment Overview
2013 BUSINESS ENVIRONMENT OVERVIEW Global • 2013 global economic growth about 2 - 3%; global industry sales expected in the 80 - 85 million unit range Americas • U.S. economic growth projected in 2 - 2.5% range in 2013 • U.S. industry sales recovery supported by improving housing sector and replacem
Slide 25: 2013 Planning Assumptions and Key Metrics
TOTAL COMPANY 2013 PLANNING ASSUMPTIONS AND KEY METRICS Guidance Unchanged. Expect Strong Results For 2013 As We Continue To Invest For The Future SLIDE 24
Slide 26: Our Plan
TOTAL COMPANY OUR PLAN -- • Continue implementation of our global Plan: − Aggressively restructure to operate profitably at the current demand and changing model mix − Accelerate development of new products our customers want and value − Finance our Plan and improve our balance sheet − Work together
Slide 27: 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 28: Appendix
APPENDIX
Slide 29: Appendix Index
2013 FIRST QUARTER EARNINGS -- APPENDIX INDEX Slide Total Company • Calculation of Earnings Per Share 1 • Income from Continuing Operations 2 • Special Items 3 • Preliminary Sector Income Statement 4 Automotive Sector • Production Volumes 5 • Dealer Stocks and Definition of Wholesales 6 • Market Res
Slide 30: Calculation of Earnings Per Share
TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE 2013 First Quarter After-Tax Operating Results Net Income Excluding Attributable Special to Ford Items* After-Tax Results (Mils.) After-tax results* $ 1,611 $ 1,642 Effect of dilutive 2016 Convertible Notes** 13 13 Effect of dilutive 2036 Convertible N
Slide 31: Income from Continuing Operations
TOTAL COMPANY INCOME FROM CONTINUING OPERATIONS First Quarter 2012 2013 (Mils.) (Mils.) North America $ 2,133 $ 2,442 South America 54 (218) Europe (149) (462) Asia Pacific Africa (95) 6 Other Automotive (106) (125) Total Automotive (excl. special items) $ 1,837 $ 1,643 Special items -- Automotive (
Slide 32: Special Items
TOTAL COMPANY SPECIAL ITEMS First Quarter 2012 2013 (Mils.) (Mils.) Personnel and Dealer-Related Items Separation-related actions* $ (233) $ (8) Mercury discontinuation / Other dealer actions (16) - Total Personnel and Dealer-Related Items $ (249) $ (8) Other Items Ford Romania consolidation loss $
Slide 33: Preliminary Sector Income Statement Data
PRELIMINARY SECTOR INCOME STATEMENT DATA First Quarter 2012 2013 (Mils.) (Mils.) Automotive Revenues $ 30,525 $ 33,858 Costs and Expenses Cost of sales $ 26,934 $ 30,005 Selling, administrative, and other expenses 2,135 2,481 Total costs and expenses $ 29,069 $ 32,486 Interest expense 185 206 Intere
Slide 34: 2013 Production Volumes
AUTOMOTIVE SECTOR 2013 PRODUCTION VOLUMES* 2013 First Quarter Second Quarter Actual Forecast O / (U) O / (U) Units 2012 Units 2012 (000) (000) (000) (000) North America 784 107 800 63 South America 111 14 140 40 Europe 386 (32) 390 21 Asia Pacific Africa 286 73 315 71 Total 1,567 162 1,645 195 * Inc
Slide 35: Dealer Stocks and Definition of Wholesales
SELECTED MARKETS 2013 FIRST QUARTER DEALER STOCKS AND DEFINITION OF WHOLESALES* First Quarter 2012 2013 (000) (000) U.S. Dealer Stocks March 31 477 563 December 31 469 521 1Q Stock Change H / (L) 8 42 34 South America Dealer Stocks** March 31 46 42 December 31 49 49 1Q Stock Change H / (L) (3) (7) (
Slide 36: Market Results
AUTOMOTIVE SECTOR MARKET RESULTS* First Quarter 2012 2013 U.S. Industry SAAR (Mils.) 14.5 15.6 Market share 15.2 % 15.9 % South America** Industry SAAR (Mils.) 5.4 5.6 Market share 9.4 % 9.1 % Europe*** Industry SAAR (Mils.) 14.2 13.3 Market share 8.5 % 7.7 % Asia Pacific Africa**** Industry SAAR (M
Slide 37: Pre-Tax Results Compared with 2012 Fourth Quarter
AUTOMOTIVE SECTOR 2013 FIRST QUARTER PRE-TAX RESULTS COMPARED WITH 2012 FOURTH QUARTER* Billions Industry $ 0.2 $0.3 Share 0.1 Stocks (0.3) Mix / Other 0.1 Mfg. / Engineering $ 0.1 $1.6 Advert. & Sales Promo. / Other 0.1 Spending Related 0.1 Material Excl. Commodities $0.3 $1.3 Warranty / Freight 0.
Slide 38: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT APPENDIX 9 of 12
Slide 39: Net Interest Reconciliation to GAAP
AUTOMOTIVE SECTOR NET INTEREST RECONCILIATION TO GAAP First Quarter 2012 2013 (Mils.) (Mils.) Interest expense $ (185) $ (206) Interest income 87 44 Subtotal $ (98) $ (162) Adjusted for items included / excluded from net interest Include: Gains / (Losses) on cash equiv. and marketable securities* 26
Slide 40: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Mar. 31, Dec. 31, Mar. 31, 2012 2012 2013 (Bils.) (Bils.) (Bils.) Cash and cash equivalents $ 7.3 $ 6.2 $ 6.0 Marketable securities 15.8 18.2 18.2 Total cash and marketable securities $ 23.1 $ 24.4 $ 24.2 Securities in transit* (0.1) (0.1) - Gross
Slide 41: Operating-Related Cash Flows Reconciliation to GAAP
AUTOMOTIVE SECTOR OPERATING-RELATED CASH FLOWS RECONCILIATION TO GAAP APPENDIX 12 of 12