Ford Mtr Co del · NYSE:F
Ford Mtr Co del — Ford Motor Company — Debt Investor Presentation (October 2015)
26 slides from Ford Mtr Co del's debt investor presentation, Oct 27, 2015
Slide 1: 3Q 2015 Fixed Income Review
Go Further 3Q 2015 FIXED INCOME REVIEW OCTOBER 27, 2015
Slide 2: Ford Credit 3Q 2015 Operating Highlights
FORD CREDIT 3Q 2015 OPERATING HIGHLIGHTS* Another strong performance with pre-tax profit of $541 million and net income of $365 million Managed receivables of $122 billion, up $12 billion from a year ago and up $9 billion from year-end 2014 Loss-to-receivables ratio of 0.24%, remains at the lo
Slide 3: 3Q 2015 Pre-Tax Results Compared with 2014
FORD CREDIT 3Q 2015 PRE-TAX RESULTS COMPARED WITH 2014 (MILS) $43 $541 $498 $115 $11 $11 $(13) $(34) $(47) Volume / Financing Credit Lease 3Q 2014 3Q 2015 Mix Margin Loss Residual Exchange Other B / (W) 2Q 2015 $35 $34 $36 $(28) $(41) $(3) $37 Receivables (Bils) Net* $106 $117 Managed** 110 122 * Ne
Slide 4: Worldwide Credit Loss Metrics
FORD CREDIT WORLDWIDE CREDIT LOSS METRICS Charge-Offs (Mils) Loss-to-Receivables Ratio (LTR) $76 $73 0.27% $62 0.22% 0.24% $48 $50 0.17% 0.17% 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Credit Loss Reserve (Mils) and Reserve as a Pct. of EOP Managed Receivables 0
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 1.07% 1.06% 1.00% 1.01% 0.15% 0.14% 0.89% 0.13% 0.13% 0.10% 7 8 7 6 7 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Severity** Charge-Offs (Mils) and LTR
Slide 6: U.S. Lease Residual Performance
FORD CREDIT U.S. LEASE RESIDUAL PERFORMANCE Lease Return Volume (000) Auction Values (At 3Q 2015 Mix) 24-Month 24-Month 36-Month 39-Month / Other $20,345 $20,480 $19,720 $19,000 $18,575 44 44 42 43 35 $18,390 $18,605 24 23 21 20 $18,020 20 $17,295 $17,135 12 15 16 19 9 36-Month 8 6 6 5 4 3Q 2014 4Q
Slide 7: 3Q 2015 Funding Highlights
FORD CREDIT 3Q 2015 FUNDING HIGHLIGHTS Funding plan on track with about $25 billion of public term funding completed year-to-date, including about $7 billion in the Third Quarter – Unsecured debt totaling about $4 billion – ABS transactions totaling about $3 billion Issued our first Reg AB II co
Slide 8: Public Term Funding Plan
FORD CREDIT PUBLIC TERM FUNDING PLAN 2015 2013 2014 YTD Actual Actual Forecast Actual* (Bils) (Bils) (Bils) (Bils) Unsecured $ 11 $ 13 $ 15 - 16 $ 14 Securitizations** 14 15 13 - 15 11 Total Public $ 25 $ 28 $ 28 - 31 $ 25 Mustang * Includes transactions settled through October 26, 2015 ** Includes
Slide 9: Funding Structure – Managed Receivables
FORD CREDIT FUNDING STRUCTURE – MANAGED RECEIVABLES (BILS) $122 $124 – 127 $113 ~$2 $103 $2 ~$6 $2 $6 $5 $6 Commercial Paper $5 $49-51 $48 Ford Interest Advantage* $43 $43 Term Asset-Backed Securities** $57 $60-62 $55 Term Debt (incl Bank Borrowings) $45 Other $5 $5 $6 ~$6 Equity $11 $11 $12 ~$12 Ca
Slide 10: Liquidity Sources
FORD CREDIT LIQUIDITY SOURCES June 30, Sept. 30, 2015 2015 (Bils) (Bils) Liquidity Sources Cash * $ 10.0 [ $ 9.2 ] Committed ABS lines ** 31.8 [ 32.1 ] Committed FCE / Other unsecured credit facilities 2.0 [ 2.0 ] Capacity Ford revolving credit facility allocation 3.0 [ 3.0 ] $37.1 billion Total liq
Slide 11: Automotive Financial Resources
AUTOMOTIVE SECTOR AUTOMOTIVE FINANCIAL RESOURCES June 30, Sept. 30, 2015 2015 (Bils) (Bils) Automotive gross cash* $ 20.7 $ 22.2 Less: Long-term debt $ (11.5) $ (11.2) Debt payable within one year (2.2) (1.6) Total debt $ (13.7) $ (12.8) Net cash $ 7.0 $ 9.4 F-650 / F-750 Memo: Liquidity** $ 31.7 $
Slide 12: 3Q 2015 Summary
3Q 2015 SUMMARY* Ford • Outstanding quarter for Ford; on track for breakthrough year • 14 of 16 global new product launches completed • Net income of $1.9 billion -- more than doubled from year ago; record Third Quarter Company pre-tax profit of $2.7 billion; Automotive operating margin of 6.5% and
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
Slide 14: Q&A
Q&A
Slide 15: Appendix
Further APPENDIX
Slide 16: 3Q 2015 Fixed Income – Appendix Index
3Q 2015 FIXED INCOME – APPENDIX INDEX Total Company No. • 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 • Reconciliation of Managed
Slide 17: Income from Continuing Operations
TOTAL COMPANY INCOME FROM CONTINUING OPERATIONS 3Q YTD Memo: FY 2014 2015 2014 2015 2014 (Mils) (Mils) (Mils) (Mils) (Mils) Automotive North America $ 1,410 $ 2,670 $ 5,350 $ 6,607 $ 6,898 South America (170) (163) (975) (537) (1,162) Europe (439) (182) (619) (381) (1,062) Middle East & Africa (15)
Slide 18: 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 Long-Term Senior Unsecured Ford Motor BBB- Baa3 BBB- BBB (low) Ford Credit BBB- Baa3 BBB- BBB (low) FCE Bank plc BBB Baa3 BBB- NR Short
Slide 19: Gross Cash Reconciliation to GAAP
AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP 2014 2015 Sept. 30 Dec. 31 June 30 Sept. 30 (Bils) (Bils) (Bils) (Bils) Cash and cash equivalents $ 6.0 $ 4.6 $ 6.1 $ 7.8 Marketable securities 16.9 17.1 14.6 14.4 Total cash and marketable securities (GAAP) $ 22.9 $ 21.7 $ 20.7 $ 22.2 Securities i
Slide 20: Automotive Debt
AUTOMOTIVE SECTOR AUTOMOTIVE DEBT Dec. 31, 2015 2014 June 30 Sept. 30 (Bils) (Bils) (Bils) Public unsecured debt $ 6.6 $ 6.5 $ 6.5 U.S. Department of Energy 4.4 4.1 4.0 Other debt (including International) 2.8 3.1 2.3 Total Automotive debt $ 13.8 $ 13.7 $ 12.8 Memo: Automotive debt payable within on
Slide 21: Operating Highlights
FORD CREDIT OPERATING HIGHLIGHTS 3Q YTD 2014 2015 2014 2015 Contract placement volume -- New and used retail / lease (000) North America Segment United States 356 411 946 1,040 Canada 47 46 111 121 Total North America Segment 403 457 1,057 1,161 International Segment Europe 119 124 351 386 Asia Paci
Slide 22: Net Finance Receivables and Operating Leases
FORD CREDIT NET FINANCE RECEIVABLES AND OPERATING LEASES Dec. 31, 2014 Sept. 30, 2015 Net Receivables* (Bils) (Bils) Finance receivables -- North America Segment Consumer retail financing $ 44.1 $ 48.6 Non-consumer: Dealer financing** 22.5 22.9 Non-consumer: Other 1.0 0.9 Total finance receivables -
Slide 23: Reconciliation of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATION OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Dec. 31, Sept. 30, 2014 2015 (Bils) (Bils) Leverage Calculation Total debt* $ 105.0 [ $ 113.3 ] Adjustments for cash** (8.9) [ (9.2) ] Adjustments for derivative accounting*** (0.4) [ (0.7) ] Total adjusted debt $ 95.7 [
Slide 24: Net Loans & Advances to Customers by Market
FCE BANK PLC NET LOANS & ADVANCES TO CUSTOMERS BY MARKET* September 30, 2015 Compared With September 30, 2014 U.K. Germany Italy France Spain Other 42% 42% WWTF** 3.3% Switzerland 2.6% Belgium 2.0% Netherlands 1.8% Austria 1.1% 25% 26% All Other 3.2% 15% 14% 7% 8% 7% 6% 4% 4% 2014 2015 2014 2015 201
Slide 25: 3Q 2015 Credit Loss Ratio Compared with 3Q 2014
FCE BANK PLC 3Q 2015 CREDIT LOSS RATIO COMPARED WITH 3Q 2014 Net Credit Losses As Percentage Of Average Net Loans And Advances To Customers Total FCE U.K. Germany Italy France Spain 0.75% 0.41% 0.30% 0.09% 0.12% 0.09% 0.10% 0.13% 0.07% 0.05% 0.00% (0.22)% 2014 2015 2014 2015 2014 2015 2014 2015 2014
Slide 26: Public Term Funding Plan (FCE Bank plc)
FCE BANK PLC PUBLIC TERM FUNDING PLAN 2015 2013 2014 YTD Actual Actual Forecast Actual* (Bils) (Bils) (Bils) (Bils) Unsecured £ 1.6 £ 1.9 £ 2.2 - 2.9 £ 2.2 Securitizations 0.4 0.8 0.4 0.4 Total Public £ 2.0 £ 2.7 £ 2.6 - 3.3 £ 2.6 * Includes transactions settled through October 26, 2015 APPENDIX 10
Ford Motor Company — Debt Investor Presentation (October 2015) on 6ix