Ford Mtr Co del · NYSE:F
Ford Mtr Co del — FCE Bank — Debt Investor Presentation (November 2010)
35 slides from Ford Mtr Co del's debt investor presentation, Nov 8, 2010
Slide 1: Investor Call FCE Bank plc
INVESTOR CALL FCE BANK PLC November 8, 2010 KR Kent – Ford Credit Vice Chairman and CFO Peter Jepson – FCE Executive Director, Finance & Strategy Sam Smith – FCE Treasurer SLIDE 0
Slide 2: Safe Harbor
FCE BANK PLC 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
Slide 3: Discussion Agenda
DISCUSSION AGENDA 1. Business Environment 2 2. The One Ford Plan 4 3. Ford Credit 12 4. FCE Bank plc 18 Appendix SLIDE 2
Slide 4: Business Environment
TOTAL COMPANY BUSINESS ENVIRONMENT • The global economic recovery continued through the Third Quarter: – Strength in China, India, Brazil, and Turkey as well as solid growth in Germany and Canada – U.S., U.K., and other European markets are growing more modestly – Jobs, housing, and credit markets r
Slide 5: Discussion Agenda
DISCUSSION AGENDA 1. Business Environment 2 2. The One Ford Plan 4 3. Ford Credit 12 4. FCE Bank plc 18 Appendix SLIDE 4
Slide 6: The One Ford Plan
THE ONE FORD PLAN • Aggressively restructure to operate profitably at the current demand and changing model mix • Accelerate development of new products our customers want and value… to deliver profitable growth for all • Finance our Plan and improve our balance sheet • Work together effectively as
Slide 7: Global Automotive Key Accomplishments Since 2005
GLOBAL AUTOMOTIVE KEY ACCOMPLISHMENTS SINCE 2005 • Ford has reduced structural costs by more than $14 billion • Reducing N.A. production capacity by approximately 40 percent by end of 2011 • Reduced N.A. salaried, hourly headcount by 40-50 percent • Improved our manufacturing competitiveness – parti
Slide 8: Product Strategy
PRODUCT STRATEGY -- • One Ford plan accelerates development of new products customers want and value: – Laser focus on the Ford brand, facilitated by divesting brands and other non-core assets – A complete balanced portfolio of small, medium, and large, cars, utilities, and trucks – Substantial and
Slide 9: Migrating to Global Platforms
MIGRATING TO GLOBAL PLATFORMS Fiesta Fiesta GLOBAL South America Europe / Asia Pacific Global Fiesta Focus Focus GLOBAL North America Europe / South America Global Focus Asia Pacific Fusion Mondeo GLOBAL North America Europe / Asia Pacific Global CD-Car SLIDE 8
Slide 10: Financing Our Plan -- 2010 Automotive Debt
FINANCING OUR PLAN -- 2010 AUTOMOTIVE DEBT Total Debt (Bils.) $34 $11 Billion Payable Within Reduction One Year $23 $32 Long-Term $22 December 31, 2009 September 30, 2010 plus final VEBA Memo: Payment Net Cash/(Debt)* $(8.7) $(2.5) Improved Operating Performance Is Enabling Us To Continue The Proces
Slide 11: One Team -- Working Together Effectively
ONE TEAM -- WORKING TOGETHER EFFECTIVELY • Dealer Relations are at an all-time high. In a recent NADA survey, Ford scored all-time high marks in 9 of 12 categories • Employee satisfaction continues to improve -- future outlook dimension is at 90% favorable • Relations with suppliers continues to out
Slide 12: The One Ford Plan Is Working
THE ONE FORD PLAN IS WORKING • Restructured and significantly lowered fixed costs, took out idle capacity, and reduced engineering and new facility / tool costs • Starting to see the benefits of aggressive new product plan and balanced portfolio • New products well-received in the marketplace • Have
Slide 13: Discussion Agenda
DISCUSSION AGENDA 1. Business Environment 2 2. The One Ford Plan 4 3. Ford Credit 12 4. FCE Bank plc 18 Appendix SLIDE 12
Slide 14: Ford Credit Results and Metrics -- 2010 Third Quarter
FORD CREDIT RESULTS AND METRICS -- 2010 THIRD QUARTER Pre-Tax Profit (Mils.) Key Metrics Third Quarter 2009 2010 On-Balance Sheet $89 Receivables (Bils.) $ 93 $ 83 $766 Charge-Offs (Mils.) $ 240 $ 95 Loss-to-Receivables Ratio $677 - Worldwide 0.97% 0.44% - U.S. Retail and Lease 1.15 0.59 Allowance f
Slide 15: Ford Credit Funding
FORD CREDIT FUNDING • On track to complete our Full Year funding plan • $8 billion of funding in the Third Quarter − $5 billion of public and private securitization transactions across all regions and asset classes − $3 billion of unsecured issuances in the United States, Canada and Europe • $2 bill
Slide 16: Ford Credit Funding Strategy
FORD CREDIT FUNDING STRATEGY Funding of Managed Receivables (Bils.) $118 $2 $12 $95 Ford Interest Advantage $85 Asset-Backed Commercial $4 $80-85 $5 Paper $6 ~$5 $61 $7 Term Asset-Backed Securities ~$7 $47 $40 $36-40 Term Debt and Other $56 $44 $42 $37-40 Equity $11 $11 $11 $10-11 $24 $17 $20 $15-18
Slide 17: Ford Credit Liquidity Programs
FORD CREDIT LIQUIDITY PROGRAMS September 30, 2010 (Bils.) Capacity & $55.0 Securitization Cash**** $4.7** Cash Committed Capacity = $35.2 billion* $8.2*** Excess Committed Capacity Capacity / Liquidity $25.1 $42.1 Liquidity $19.8 $4.7** $9.0 $1.1 Unsecured FCAR Conduits / Cash**** Total Credit Lines
Slide 18: Ford Credit 2010 Third Quarter Summary
FORD CREDIT 2010 THIRD QUARTER SUMMARY • Pre-tax profit of $766 million; net income of $497 million • Improving credit profiles and strong investor demand driving tighter credit spreads • Completed $24 billion of term funding year to date • Liquidity available for use of about $25 billion SLIDE 17
Slide 19: Discussion Agenda
DISCUSSION AGENDA 1. Business Environment 2 2. The One Ford Plan 4 3. Ford Credit 12 4. FCE Bank plc 18 Appendix SLIDE 18
Slide 20: 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 21: What We Do
FCE BANK PLC WHAT WE DO • FCE’s Aim: Net Receivables By Product – Support Ford sales June 2010 – Consistently add shareholder Dealer value (Wholesale) • FCE’s Core Customers: – Ford's retail customers 42% 58% – Ford's dealers – Ford's automotive operations Retail Substantially All FCE Lending Is Sec
Slide 22: Highlights from 1st Half 2010 Interim Report
FCE BANK PLC HIGHLIGHTS FROM 1st HALF 2010 INTERIM REPORT • Continued decline in the balance sheet, reflecting primarily the transition of non-Ford business to other providers • Profits and margin improved as FCE has prioritized profitability over volume • Credit losses have returned to historical n
Slide 23: 3rd Quarter 2010 Summary
FCE BANK PLC 3rd QUARTER 2010 SUMMARY • £193 million pre-tax profit year-to-date Q3 2010 – an increase of £32 million compared with the same period in 2009 • Improved performance mainly reflects lower credit losses together with improved residual value performance and lower associated loss reserves
Slide 24: Credit Loss Ratio
FCE BANK PLC CREDIT LOSS RATIO 1.73% 1.14% 1.03% 0.89% 0.60% 0.44% 0.34% 0.38% 0.29% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2008 2009 2009 2009 2009 2010 2010 2010 Credit Losses Have Returned To Within Historical Norms SLIDE 23
Slide 25: Funding Structure
FCE BANK PLC FUNDING STRUCTURE Liabilities and Shareholders' Equity (£ Bils.) 21.6 2.3 19.1 Intercompany Debt 1.9 Secured External Debt 16.6 16.4 16.2 15.9 Unsecured External Debt 1.2 1.0 1.0 1.0 14.6 14.5 9.3 Other Liabilities 7.1 0.9 0.8 5.5 Equity 6.6 6.8 5.8 5.3 6.3 5.7 6.0 5.7 4.9 4.6 5.1 4.8 4
Slide 26: Funding Plan
FCE BANK PLC FUNDING PLAN Public Term Funding Plan 2010 YTD* Forecast Actual (Bils.) (Bils.) Unsecured Debt £ 0.3 - 0.8 £ 0.3 Securitisation** 0.4 - 0.8 0.4 Total £ 0.7 - 1.6 £ 0.7 • Year-to-date through September, FCE has renewed or added £3.2 billion in private securitisation capacity, £1.7 billio
Slide 27: Liquidity Sources
FCE BANK PLC LIQUIDITY SOURCES September 30, 2010 (Bils.) Capacity & Cash £7.9 Cash not Committed Capacity = £5.4 billion available for use Excess capacity £1.4 in day-to-day Committed £1.2 operations * Capacity / Liquidity Liquidity £2.5 £5.3 £4.7 £1.2 £0.7 £1.3 Unsecured Committed Cash** Total Cre
Slide 28: Long-Term Debt Credit Ratings
FCE BANK PLC LONG-TERM DEBT CREDIT RATINGS December 2008 December 2009 October 2010 Fitch B- / Negative B / Positive BB- / Stable Moody's Caa1 / Negative B3 / Stable Ba2 / Stable S&P B- / Negative B / Stable BB- / Positive SLIDE 27
Slide 29: Summary
SUMMARY • The One Ford Plan is working • On track to meet our financial targets this year and next year • The funding environment continues to improve • Experiencing substantially improved credit loss performance • Improved performance at FCE SLIDE 28
Slide 30: Appendix
ONE FORD ONE TEAM « ONE PLAN * ONE GOAL APPENDIX SLIDE 29
Slide 31: 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 32: Ford Credit Ratio Definitions
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 Loss-to-Receivables Ratio
Slide 33: Ford Credit Reconciliations of Managed Leverage to Financial Statement Leverage
FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Sept. 30 Sept. 30 2009 2010 (Bils.) (Bils.) Leverage Calculation Total Debt* $ 103.4 $ 88.5 Securitized Off-Balance Sheet Receivables Outstanding 0.1 - Retained Interest in Securitized Off-Balance Sheet Receivables - - A
Slide 34: Further Information on FCE
FCE BANK PLC FURTHER INFORMATION ON FCE Detailed Information on FCE: • FCE Bank plc 2008 Annual Accounts • FCE Bank plc 2009 Annual Accounts • FCE Bank plc -- Basel II Pillar-3 Disclosure Document 2009 www.fcebank.com Detailed Information on FMCC: • 10-K Annual Filings • 10-Q Quarterly Filings www.f
Slide 35: Feel the difference
ONE FORD ONE TEAM « ONE PLAN » ONE GOAL Feel the difference
FCE Bank — Debt Investor Presentation (November 2010) on 6ix