DEUTSCHE BANK GLOBAL AUTOMOTIVE CONFERENCE
Mark Fields
President and CEO
January 12, 2016
CREATING VALUE
!
GROWTH
RETURNS
RISK
REWARDS
The Drivers Of Value
SLIDE 2
2015 A BREAKTHROUGH YEAR – GROWTH
V O L U M E
Wholesale volume highest since 2005
R E V E N U E
Automotive revenue highest since 2007
G LO B A L M A R K E T S H A R E
Ford global market share estimated at 7.3%,
up 0.2 percentage points
F O R D C R E D I T
Managed receivables grew 13% from 2014 reflecting our
Automotive growth and higher Ford Credit share of financing
Wholesale Volume, Revenue, And Global Market Share Increased In 2015
SLIDE 3
2015 A BREAKTHROUGH YEAR – RETURNS
C O M PA N Y P R E -TA X
All-time record
P R O F I T (Excl. Special Items)
A U T O M O T I V E O P E R AT I N G
Highest since at least the 1990s
M A R G I N
A U T O M O T I V E O P E R AT I N G
Best since at least 2001
C A S H
F LO W
C O R P O R AT E A F T E R -TA X R O I C
Higher than cost of capital and improved year-over-year
Record Financial Performance In 2015
SLIDE 4
2015 A BREAKTHROUGH YEAR – RISK
R E G I O N A L P R O F I TA B I L I T Y
All business units profitable except South America
Returned Europe to profitability
B R E A K E V E N
Automotive – Healthy…about 80% of wholesale volume
North America – On target…about 2/3 of wholesale volume
C A S H A N D L I Q U I D I T Y
More than $23 billion cash and $34 billion of liquidity
B A L A N C E S H E E T
Leverage – Consistent with single-A rating
Global funded pensions – Nearly fully funded and de-risked
F O R D C R E D I T
Robust asset performance and liquidity; return on equity > 10%
Managed leverage temporarily higher than 8 to 9 to 1 target
Company Risk Profile Improved
SLIDE 5
2015 A BREAKTHROUGH YEAR – REWARDS
2015 shareholder
distributions:
20% increase
in regular dividend
$2.5 billion
Customers
Employees
Dealers
Suppliers
Increased Regular Dividend; Profitable Growth For All
SLIDE 6
2015 A BREAKTHROUGH YEAR – OPERATING
10 New
Plants
#1
Record Sales in
China, More Than
1.1 Million Vehicles Sold
Successfully launched
16 global products
Opened last of 10 new
plants to support
growth in Asia Pacific
Quality and customer
satisfaction to bestever levels in all regions
Ford Credit recognized
as No. 1 in J.D. Power
customer satisfaction
New SYNC milestone:
more than 15 million
vehicles with SYNC
Announced Ford Smart
Mobility Plan
$4.5
Billion
Achieved four-year
agreement with UAW
Investing $4.5 billion in
electrified vehicles by
2020
SLIDE 7
LOOKING AHEAD TO 2016 – OUR FOCUS
One Ford
Acceleration
THE PLAN
Product Excellence
Delivered with
Passion
Innovation
In Every Part of Our
Business
PROFITABLE GROWTH
FOR ALL
Large
Asia
Pacific
Americas
Europe,
Middle East
& Africa
+
Medium
Small
+
=
Profits
& Cash
SLIDE 8
ONE FOOT IN TODAY, ONE FOOT IN TOMORROW
!
GROWTH
RETURNS
RISK
REWARDS
Strengthening Today’s Business; Preparing For New Opportunities
SLIDE 9
KEEPING OUR CORE AUTOMOTIVE BUSINESS STRONG
Building Our Future On A Strong Foundation
SLIDE 10
AUTOMOTIVE INDUSTRY TRENDS
Disruptive
Impact On
Business
New Mobility
Start-Up OEMs
New Retail
Connectivity
Non-Traditional
Entrants
Big Data / Analytics
Shift To Asia
Automated
Driving
Electrification
Digital Experience
Alternative Fuels
Light-Weighting
Driver Assist
Low-Cost Brands
Disruptive
Technology Change
Our Industry Is Rapidly Evolving – We Plan To Be A Leader
Source: Roland Berger Strategy Consultants
SLIDE 11
FROM MAKING VEHICLES
TO PROVIDING TRANSPORTATION
$5.4
Trillion
$2.3
Trillion
Ford Share 6%
Ford Share 0%
Traditional Auto
Revenue
Other Transportation
Services Revenue
Transportation As A Service Represents A Significant Opportunity
SLIDE 12
FORD SMART MOBILITY
Changing The Way The World Moves To Make People’s Lives Better
SLIDE 13
MAKING PEOPLE’S LIVES BETTER
Working Both Our Core Business And Emerging Opportunities
To Build An Even Stronger Future
SLIDE 14
FORD SMART MOBILITY INITIATIVES
SYNC Connect
• Ford Credit Link
Apple Car Play,
Android Auto
• GoDrive car
sharing
AppLink expansion
• Multi-modal
mobility solutions
SmartDeviceLink
partners
• Techstars Mobility
challenge
Tripling
Autonomous fleet
Added testing
(M-City, CA)
FordPass
IBM partnership
Amazon Echo
Pivotal
partnership
Lincoln Miles
Velodyne
collaboration
Snow testing
Bringing New, Emerging Opportunities To Life
SLIDE 15
2016 BUSINESS ENVIRONMENT
Industry (Mils)
2015*
2016
GDP (Pct)
2015*
2016
Global
88.8
88.0 – 92.0
2.4%
2.3 – 2.8%
U.S.
17.8
17.5 – 18.5
2.5%
2.3 – 2.8%
Brazil
2.6
2.0 – 2.5
(3.6)%
(2.0) – (3.0)%
Europe
19.2
19.0 – 20.0
1.0%
1.2 – 1.7%
China
23.3
23.5 – 25.5
6.9%
6.5 - 7.0%
* 2015 data estimated; China reflects retail
External Conditions Broadly Supportive Of Continued Growth In Global Industry Sales
SLIDE 16
2016 PRODUCT LAUNCHES
12
Global
Product
Launches
in 2016
Focus RS
Focus Electric
Fusion / Mondeo
4-door | Hybrid | Energi
Escape
Super Duty
Raptor
GT
Lincoln MKZ
Lincoln Continental
gas | Hybrid
SLIDE 17
2016 COMPANY KEY METRICS
2016 FY Plan
Automotive
– Revenue
Equal To or Higher Than 2015
– Operating Margin*
Equal To or Higher Than 2015
– Operating-Related Cash Flow*
Strong, but Lower Than 2015
Total Company Pre-Tax Profit*
Equal To or Higher Than 2015
Tax Rate (Pct)
Operating EPS*
Low 30s
Equal To or Higher Than 2015
* Excludes special items
Sustaining Strong Financial Results In 2016
SLIDE 18
DRIVERS OF 2016 AUTOMOTIVE OPERATING MARGIN
Margin Impact
Volume And Mix
Pricing
Cost
Parts And Service
Overall Assessment
Equal To or Higher Than 2015
Growing Lean
Favorable Market Factors And Continued Investment For Profitable Growth
SLIDE 19
2016 BUSINESS UNIT PRE-TAX RESULTS
2016 FY Plan
Automotive
– North America
» Operating Margin (Pct)
– South America
– Europe
9.5% or Higher
Greater Loss Than 2015
Higher Than 2015
– Middle East & Africa
– Asia Pacific
– Other Automotive
Ford Credit
About Equal To 2015
Equal To or Higher Than 2015
Higher Than 2015
Loss of About $800 Million
Equal To or Higher Than 2015
All Regions Profitable, Except South America;
Sustaining Strong Performance In North America
SLIDE 20
FORD RETURN ON INVESTED CAPITAL
Five-Year Average ROIC* (Pct.)
25%
16%
11%
0%
(6)%
1995 1996
1997
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011
2012
2013
2014
* Based on Ford ROIC methodology
ROIC Healthy And Higher Than Cost Of Capital In Majority Of Last Twenty Years
SLIDE 21
FORD AND COMPETITORS RETURN ON INVESTED CAPITAL
Five-Year Average ROIC* (Pct.)
16%
9%
Ford
VW
BMW
Toyota
4% Fiat Group /
FCA
(1)%
GM
(5)%
2010
*
2011
2012
2013
2014
Based on Ford ROIC methodology. For Fiat Group and GM, cumulative ROIC since 2009 reflecting post-bankruptcy results;
for Fiat Group, consolidated Chrysler results effective June 2011.
Ford ROIC Compares Favorably To Industry Peers, Reflecting Relative Capital Efficiency
SLIDE 22
2016 FORD RISK PROFILE
R E G I O N A L
P R O F I T A B I L I T Y
Al l r e g i o n s pr o f i t a ble e x c ept S o u t h Am e r i ca ;
E u r o pe pr o f i t a bili ty t o i m pr o ve
B A L A N C E
S H E E T
Le ve r ag e – Co n s i s t ent w i t h S i n g le- A r a t i n g
G l o ba l f u n de d pe n s i on s – F u l ly f u n de d
B R E A K E V E N
F O R D
Au t o m oti ve – H e a l thy
N o r t h Am e r ica – At t a r g e t
R o bu s t a s s e t pe r f o r mance a n d l i qu i di ty;
R O E a n d m a n a ged l e ver ag e a t t a r g e t
C A S H
A N D
L I Q U I D I T Y
At o r h i g h e r t h a n t a r g e t l e vels
F O R D
C R E D I T
S M A R T
M O B I L I T Y
Co n c r et e a n d m e a ni ng fu l pr o g r e s s
Continuing To Improve Ford Risk Profile In 2016
SLIDE 23
CAPITAL ALLOCATION FRAMEWORK
Investment
Grade
Balance
Sheet
Cash and
Liquidity
Leverage
Framework
Fund and
De-Risk
Pensions
Fund
The Plan
Renew Products
Profitable
Growth
Smart Mobility
Restructuring
Infrastructure
Strong
Ford Credit
Support Sale of
Ford Vehicles
Globally
Target Return on
Equity
Optimize Capital
Deployment
Shareholder
Distribution
Strategy
Sustainable
Regular Dividend
Eliminate
Ongoing Dilution
Supplemental
Dividend
Framework To Deploy Capital Successfully Implemented;
Now Moving To Next Stage Of Shareholder Distribution Strategy
SLIDE 24
SHAREHOLDER DISTRIBUTIONS
Dividends
Regular dividend
‒ Sustainable through a business cycle
Shareholder Distributions (Bils.)
Supplemental Dividend
$12.6
Anti-Dilutive Share Repurchases
$2.5
‒ Target top quartile auto yield
Supplemental cash dividend
̶ Provides cash beyond regular
dividend
$6.6
$2.3
$3.5
̶ May vary by year
̶ Equal benefit to all shareholders;
recognizes large retail ownership
$1.0
Regular Dividends
$2.5
$1.0
$2.4
$2.4
2015
2016*
$9.1
$4.3
2012 - 2014
2012 - 2016*
* Assumes 2016 regular dividend of $0.15 per share per quarter
Declaring First Quarter Regular And $1 Billion Supplemental Cash Dividends;
Plan 2016 Shareholder Distributions Of $3.5 Billion, Up About 40% From 2015
SLIDE 25
WRAP-UP
Delivered six consecutive years of strong performance, including a
breakthrough year in 2015, transforming Ford
For 2016, continuing our journey with another outstanding year as we
work toward automotive and mobility leadership in the years ahead
Driving Toward Automotive And Mobility Leadership
SLIDE 26
DEUTSCHE BANK GLOBAL AUTOMOTIVE CONFERENCE
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 a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:
•
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Decline in industry sales volume, particularly in the United States, Europe, or China due to financial crisis, recession, geopolitical events, or other factors;
Decline in Ford's market share or failure to achieve growth;
Lower-than-anticipated market acceptance of Ford's new or existing products;
Market shift away from sales of larger, more profitable vehicles beyond Ford's current planning assumption, particularly in the United States;
An increase in or continued volatility of fuel prices, or reduced availability of fuel;
Continued or increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
Fluctuations in foreign currency exchange rates, commodity prices, and interest rates;
Adverse effects resulting from economic, geopolitical, or other events;
Economic distress of suppliers that may require Ford to provide substantial financial support or take other measures to ensure supplies of components or materials and could increase costs, affect liquidity, or cause production
constraints or disruptions;
Work stoppages at Ford or supplier facilities or other limitations on production (whether as a result of labor disputes, natural or man-made disasters, tight credit markets or other financial distress, production constraints or
difficulties, or other factors);
Single-source supply of components or materials;
Labor or other constraints on Ford's ability to maintain competitive cost structure;
Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
Worse-than-assumed economic and demographic experience for postretirement benefit plans (e.g., discount rates or investment returns);
Restriction on use of tax attributes from tax law "ownership change”;
The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;
Increased safety, emissions, fuel economy, or other regulations resulting in higher costs, cash expenditures, and / or sales restrictions;
Unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;
A change in requirements under long-term supply arrangements committing Ford to purchase minimum or fixed quantities of certain parts, or to pay a minimum amount to the seller ("take-or-pay" contracts);
Adverse effects on results from a decrease in or cessation or clawback of government incentives related to investments;
Inherent limitations of internal controls impacting financial statements and safeguarding of assets;
Cybersecurity risks to operational systems, security systems, or infrastructure owned by Ford, Ford Credit, or a third-party vendor or supplier;
Failure of financial institutions to fulfill commitments under committed credit and liquidity facilities;
Inability of Ford Credit to access debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts, due to credit rating downgrades, market volatility, market disruption, regulatory
requirements, or other factors;
Higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
Increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
New or increased credit, consumer, or data protection or other regulations resulting in higher costs and / or additional financing restrictions.
We cannot be certain that any expectation, forecast, or assumption made in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between
projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result
of new information, future events, or otherwise. For additional discussion, see "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014, as updated by subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K.
SLIDE 28
APPENDIX
PENSION AND OPEB UPDATE
APPENDIX INDEX
Item
Appendix
2015 Planning Assumptions and Key Metrics
1
Return on Invested Capital Methodology
2
Return on Invested Capital Calculations (Ford and Competitors)
3-8
2015 PLANNING ASSUMPTIONS AND KEY METRICS
2014 FY
Results*
Planning Assumptions (Mils)
Industry Volume
- U.S.
- Europe 20
- China
Key Metrics
Automotive:
- Revenue (Bils)
16.8
14.6
24.0
$ 135.8
- Operating Margin***
*
**
***
2015 FY Outlook
Prior
Updated*
About 17.7
About 16.0
About 24.0
Higher**
4.6 %
Higher**
- Operating-Related Cash Flow (Bils)***
$
3.6
Higher**
Ford Credit (Compared with 2014):
- Pre-Tax Profit (Bils)
$
1.9
Equal To Or Higher**
Total Company:
- Pre-Tax Profit (Bils)***
$
7.3
$8.5 - $9.5
$10.0 - $11.0
After Pension / OPEB revision announced on January 7, 2016; see materials on Ford’s Investor Relations website for details
Compared with 2014
Excludes special items
APPENDIX 1
RETURN ON INVESTED CAPITAL – METHODOLOGY
Approach
Reflects an “all-in” after-tax measure providing a true return on total capital employed
Based on publicly available financial disclosures and developed in collaboration with
outside advisors
Operating Return (NOPAT)
GAAP income before taxes
Excludes costs associated with funding capital structure (i.e., cost of capital)
– Automotive debt interest expense
– Funding-related pension and OPEB costs
Less Cash Taxes (deferred tax assets inherent in invested capital)
Invested Capital
Average year balance sheet equity, Automotive debt and net unfunded pension and
OPEB obligations
APPENDIX 2
FORD – RETURN ON INVESTED CAPITAL CALCULATION
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Automotive Interest Expense
Funding-Related Pension and OPEB Costs*
Less: Cash Taxes
Net Operating Profit After Tax
2010
(Bils.)
$
7.1
$
1.8
(0.2)
(0.1)
8.6
2011
(Bils.)
$
3.7
$
0.8
5.2
(0.3)
9.4
2012
(Bils.)
$
2.0
$
0.7
6.2
(0.3)
8.6
2013
(Bils.)
$
14.4
$
0.8
(6.1)
(0.5)
8.6
2014
(Bils.)
$
1.2
$
0.8
3.4
(0.5)
5.0
Invested Capital
Equity
Redeemable Non-Controlling Interest
Automotive Debt
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
$
$
(1.0)
19.1
17.9
36.0
$
40.1
Annual ROIC
Five-Year Average ROIC**
$
$
14.9
13.1
22.0
50.0
$
43.2
$
$
15.9
0.3
14.3
25.5
56.0
$
53.1
$
$
26.2
0.3
15.7
14.9
57.0
$
$
24.5
0.3
13.8
16.2
54.8
$
56.5
$
55.7
21.5%
21.7%
16.2%
15.2%
8.9%
(5.0)%
3.0%
7.3%
17.4%
16.2%
* Reflects total pension & OPEB (income) / expense except service cost
** Calculated as five-year average NOPAT divided by five-year average invested capital
Note: Totals may not foot due to rounding
APPENDIX 3
BMW – RETURN ON INVESTED CAPITAL CALCULATION
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Interest Expense
Funding-Related Pension and OPEB Costs*
Less: Cash Taxes
Expense in Lieu of Amortization of Development Costs**
Net Operating Profit After Tax
2010
(Bils.)
€
4.9
2011
(Bils.)
€
0.3
0.1
(1.3)
0.3
2012
(Bils.)
7.4
€
0.2
0.1
(2.7)
0.2
7.8
2013
(Bils.)
€
0.2
0.1
(2.5)
0.0
7.9
2014
(Bils.)
€
0.3
0.1
(2.8)
(0.7)
8.7
0.3
0.1
(4.3)
(0.4)
€
4.2
€
5.3
€
5.7
€
4.8
€
4.4
€
23.9
(4.6)
2.1
1.6
€
27.1
(4.4)
3.3
2.2
€
30.6
(4.3)
3.1
3.8
€
35.6
(5.0)
2.3
2.3
€
37.4
(5.5)
5.2
4.6
€
23.0
€
28.2
€
33.1
€
35.2
€
41.8
€
23.0
€
25.6
€
30.7
€
34.2
€
38.5
Invested Capital
Equity
Less: Capitalized Development Assets**
Automotive Financial Liabilities
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
Annual ROIC
18.2%
20.6%
18.5%
14.2%
11.5%
Five-Year Average ROIC***
10.1%
11.4%
12.7%
15.1%
16.1%
* Reflects total pension & OPEB (income) / expense except service cost
** Elimination of development cost capitalization effects from IFRS reporting
*** Calculated as five-year average NOPAT divided by five-year average invested capital
Note: Totals may not foot due to rounding
Source: BMW Group Annual Reports
APPENDIX 4
FCA – RETURN ON INVESTED CAPITAL CALCULATION*
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Interest Expense
Funding-Related Pension and OPEB Costs**
Less: Cash Taxes
Expense in Lieu of Amortization of Development Costs***
Net Operating Profit After Tax
2010
(Bils.)
€
0.7
€
1.0
0.0
(0.7)
(0.5)
0.5
2011
(Bils.)
€
1.9
€
1.6
(0.1)
(0.5)
(0.8)
2.1
2012
(Bils.)
€
1.5
€
2.0
0.4
(0.5)
(1.5)
1.9
2013
(Bils.)
€
1.0
€
1.9
0.2
(0.4)
(1.2)
1.6
2014
(Bils.)
€
1.2
€
1.9
0.4
(0.5)
(1.2)
1.7
Invested Capital
*
**
***
****
Equity
Less: Capitalized Development Assets***
Automotive Debt
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
€
€
12.5
(2.9)
19.8
1.1
30.5
€
30.9
€
€
9.7
(3.5)
24.8
8.2
39.2
€
34.9
€
€
8.4
(4.9)
25.9
10.2
39.6
€
39.4
€
€
12.6
(5.7)
28.3
7.1
42.3
€
€
13.7
(7.1)
31.7
8.4
46.8
€
40.9
€
44.5
Annual ROIC
1.7%
6.0%
4.9%
3.9%
3.9%
Cumulative Average ROIC (since 2009)****
1.7%
4.0%
4.3%
4.2%
4.1%
Fiat Group consolidated Chrysler results effective June 2011
Reflects total pension & OPEB (income) / expense except service cost
Elimination of development cost capitalization effects from IFRS reporting
Calculated as average NOPAT since 2009 divided by average invested capital since 2009
Note: Totals may not foot due to rounding
Source: Fiat Group / FCA Annual Reports
APPENDIX 5
GM – RETURN ON INVESTED CAPITAL CALCULATION
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Automotive Interest Expense
Funding-Related Pension and OPEB Costs*
Less: Cash Taxes
Net Operating Profit After Tax
2010
(Bils.)
$
7.2
2011
(Bils.)
$
1.1
(0.6)
(0.4)
9.2
2012
(Bils.)
$ (28.7)
0.5
(1.9)
(0.6)
$
7.3
$
7.3
$
37.2
4.6
32.2
$
$
74.0
$
77.8
2013
(Bils.)
$
0.5
2.2
(0.6)
7.5
2014
(Bils.)
$
0.3
(0.2)
(0.7)
4.2
0.4
(0.4)
(0.9)
$ (26.6)
$
6.8
$
3.3
39.0
5.3
32.7
$
37.0
5.2
35.6
$
43.2
7.1
26.2
$
36.0
9.4
30.8
$
77.0
$
77.8
$
76.5
$
76.2
$
75.5
$
77.4
$
77.1
$
76.4
Invested Capital
Equity
Automotive Debt
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
Annual ROIC
9.4%
9.7%
(34.4)%
8.9%
4.4%
Cumulative Average ROIC (since 2009)**
9.4%
9.5%
(5.2)%
(1.7)%
(0.5)%
* Reflects total pension & OPEB (income) / expense except service cost
** Calculated as average NOPAT since 2009 divided by average invested capital since 2009
Note: Totals may not foot due to rounding
Source: GM 10-K Filings
APPENDIX 6
TOYOTA – RETURN ON INVESTED CAPITAL CALCULATION*
2010
(Bils.)
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit** (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Interest Expense
Funding-Related Pension and OPEB Costs***
Less: Cash Taxes
Net Operating Profit After Tax
¥
778
¥
29
4
(211)
600
2011
(Bils.)
¥
631
¥
23
24
(282)
395
2012
(Bils.)
¥
1,635
¥
23
18
(331)
1,346
2013
(Bils.)
¥
2,759
¥
20
8
(411)
2,376
2014
(Bils.)
¥
3,201
¥
23
(6)
(1,146)
2,072
Invested Capital
Equity
Automotive Debt
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
¥ 10,920
1,562
546
¥ 13,028
¥ 11,066
1,558
677
¥ 13,301
¥
¥
12,773
1,284
658
14,715
15,219
1,246
538
¥ 17,002
¥ 17,647
1,249
537
¥ 19,433
¥ 13,233
¥
¥ 14,008
¥ 15,858
¥
13,164
¥
18,218
Annual ROIC
4.5%
3.0%
9.6%
15.0%
11.4%
Five-Year Average ROIC****
5.7%
3.6%
2.8%
7.7%
9.1%
* Reflects fiscal year (April 1 of noted year through March 31 of following year)
** Includes equity earnings reported after income before income taxes
*** Reflects total pension & OPEB (income) / expense except service cost
**** Calculated as five-year average NOPAT divided by five-year average invested capital
Note: Totals may not foot due to rounding
Source: Toyota 20-F Filings
APPENDIX 7
VW – RETURN ON INVESTED CAPITAL CALCULATION
Net Operating Profit After Tax (NOPAT)
Pre-Tax Profit (Incl. Special Items)
Add Back: Costs Related to Invested Capital
Interest Expense
Funding-Related Pension and OPEB Costs*
Less: Cash Taxes
Expense in Lieu of Amortization of Development Costs**
Net Operating Profit After Tax
2010
(Bils.)
€
9.0
€
1.2
0.7
(1.6)
(0.1)
9.2
2011
(Bils.)
€
18.9
€
1.1
0.7
(3.3)
(0.2)
17.3
2012
(Bils.)
€
25.5
€
1.4
0.8
(5.1)
(0.7)
21.9
2013
(Bils.)
€
12.4
€
1.5
0.8
(3.1)
(1.6)
9.9
2014
(Bils.)
€
14.8
€
1.5
0.8
(4.0)
(1.7)
11.4
Invested Capital
Equity
Less: Capitalized Development Assets**
Automotive Financial Liabilities
Net Pension and OPEB Liability
Invested Capital (End of Year)
Average Year Invested Capital
€
€
48.7
(7.7)
5.8
15.4
62.2
€
58.4
€
€
63.4
(9.9)
4.7
16.7
74.9
€
82.0
(12.9)
12.5
23.9
€ 105.6
€ 90.0
(14.2)
11.9
21.7
€ 109.5
90.2
(15.7)
9.8
29.7
€ 114.0
€
68.5
€
€ 107.5
€
90.2
€
111.7
Annual ROIC
15.8%
25.3%
24.3%
9.3%
10.2%
Five-Year Average ROIC***
11.0%
15.5%
17.9%
16.1%
16.0%
* Reflects total pension & OPEB (income) / expense except service cost
** Elimination of development cost capitalization effects from IFRS reporting
*** Calculated as five-year average NOPAT divided by five-year average invested capital
Note: Totals may not foot due to rounding
Source: VW Group Annual Reports
APPENDIX 8