2014 THIRD QUARTER
EARNINGS REVIEW
OCTOBER 24, 2014
(PRELIMINARY RESULTS)
SLIDE 0
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 effectively as one team -- leveraging our global assets
Large
Americas
Asia Pacific
Europe,
Middle East
& Africa
+
Medium
Small
+
=
Profits
& Cash
PROFITABLE GROWTH
FOR ALL
SLIDE 1
2014 THIRD QUARTER SUMMARY*
• Company profitable for 21st consecutive quarter; liquidity strong;
Automotive operating-related cash flow negative
• Company wholesale volume and revenue down 2% - 3% from a year ago.
Market share up in Europe and a Third Quarter record in Asia Pacific,
including record China share
• North America and Asia Pacific profitable; results lower than a year ago for
all Automotive Business Units except Middle East & Africa
• Strong results at Ford Credit, better than a year ago
• Global new product launches on track, including F-150
• Guidance unchanged from Investor Day, including Company 2014 Full Year
pre-tax profit of about $6 billion
* Excludes special items; Business Unit records are since at least 2000 when we began reporting specific Business Unit results
A Profitable But Challenging Quarter. Full Year Guidance Unchanged,
Including Company Full Year Pre-Tax Profit Of About $6 Billion
SLIDE 2
2014 THIRD QUARTER HIGHLIGHTS
• Began production of all-new 2015 Ford Mustang, refreshed Expedition and
Lincoln Navigator in North America; new Ka and F-350 and F-4000 in
South America; and Lincoln MKZ and MKC for China
• Announced new C-MAX, Grand C-MAX, and S-MAX in Europe
• Announced 25 new vehicles coming to Middle East & Africa by 2016
• 7 Ford vehicles finished in the top 3 of their segment in the J.D. Power
APEAL study, with F-150, F-250, and F-350 ranking highest in their segments
• Hosted auto industry’s first app developer conference
• Created 1,200 new jobs in Kansas City for second shift of Transit production
and 300 new jobs in Louisville for Lincoln MKC; created more than
1,800 jobs in Asia Pacific to support growth
• Completed previously announced share repurchase program
SLIDE 3
2014 THIRD QUARTER KEY FINANCIAL SUMMARY
Third Quarter
B / (W)
2014
2013
First Nine Months
B / (W)
2014
2013
Wholesales (000)
Revenue (Bils.)
1,493
$ 34.9
$
(52)
(0.9)
4,743
$ 108.2
$
Operating results*
Pre-tax results (Mils.)
After-tax results (Mils.)
Earnings per share
$ 1,181
936
0.24
$ (1,408)
(885)
(0.21)
$ 5,161
3,585
0.89
$ (2,129)
(1,711)
(0.42)
Special items pre-tax (Mils.)
$
(160)
$
338
$
$
494
Net income attributable to Ford
After-tax results (Mils.)
Earnings per share
$
835
0.21
$
(437)
(0.10)
$ 3,135
0.78
$
(981)
(0.24)
$
(0.7)
$
(2.3)
$
3.1
$
(2.5)
Gross cash (Bils.)**
Debt (Bils.)
$
22.8
(14.9)
$
(3.3)
0.9
$
22.8
(14.9)
$
(3.3)
0.9
Net cash (Bils.)**
$
7.9
$
(2.4)
$
7.9
$
(2.4)
Automotive
Operating-related cash flow (Bils.)**
(763)
23
(1.1)
* Excludes special items; see Appendix for detail and reconciliation to Generally Accepted Accounting Principles (GAAP)
** See Appendix for reconciliation to GAAP; net cash is calculated as Automotive gross cash net of Automotive debt
SLIDE 4
2014 THIRD QUARTER PRE-TAX RESULTS
BY SECTOR*
Millions
$1,181
$686
Ford Credit
Other
$498
(3)
$495
Memo:
B / (W) 2013 3Q
B / (W) 2014 2Q
Company
Automotive
Financial
Services
$(1,408)
(1,418)
$(1,540)
(1,484)
$132
66
* Excludes special items; see Appendix for detail and reconciliation to GAAP
SLIDE 5
AUTOMOTIVE SECTOR
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013*
Wholesales (000)
Revenue (Bils.)
Operating
Margin (Pct.)**
1,545
$33.9
7.0%
1,493
$32.8
Pre-Tax
Results (Mils.)
$2,226
2.5%
Memo:
First Nine Months
$686
2013
2014
2013
2014
2013
2014
2013
2014
4,720
4,743
$103.8
$102.0
6.2%
4.2%
$5,973
$3,775
Third Quarter
Global Industry SAAR (Mils.)*** 84.4
Global Market Share***
7.4%
86.7
7.4%
* Excludes special items; see Appendix for detail, reconciliation to GAAP, and definition of wholesales
** Automotive operating margin defined as Automotive pre-tax results, excluding special items and Other Automotive, divided by Automotive revenue
*** Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 6
AUTOMOTIVE SECTOR
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013*
Millions
Total Cost
Market Factors
$2,226
Industry $ 486
Share
(318)
Stocks
(718)
Mix / Other 218
Pricing
$1,004
Incentives / Other (407)
$686
Mfg. / Engineering
Spending Related
Admin. & Selling
Other
Total Structural Costs
$(209 )
(151 )
(98 )
(10 )
$(468 )
All Other
$ (86 )
$597
Balance Sheet Effects $(166)
Operating
(246)
$64
$(1,540)
$(332)
$(554)
$(658)
2013
3Q
Memo:
B / (W) Than 2014 2Q
2014
3Q
Volume /
Mix
Net
Pricing
Warranty**
Material /
Freight**
$(1,484)
$(1,182)
$612
$(247)
$(320)
Other
Cost**
$(99)
$(412)
$(245)
Exchange
Net
Interest /
Other
$(261)
$13
* Excludes special items; see Appendix for detail and reconciliation to GAAP
** Cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material,
freight, and warranty costs, are measured at present-year volume and mix
SLIDE 7
AUTOMOTIVE SECTOR
2014 THIRD QUARTER PRE-TAX RESULTS BY
SEGMENT*
Millions
$1,410
$686
Net Interest
Other
$(171)
27
$44
$(15)
$(144)
$(170)
$(439)
Total
Memo:
B / (W) 2013 3Q
B / (W) 2014 2Q
$(1,540)
(1,484)
North
America
$ (886)
(1,030)
South
America
Europe
Middle East
& Africa
Asia
Pacific
Other
Automotive
$(330)
125
$(257)
(453)
$ 10
(38)
$ (72)
(115)
$ (5)
27
* Excludes special items; see Appendix for detail and reconciliation to GAAP
SLIDE 8
AUTOMOTIVE SECTOR -- NORTH AMERICA
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013
Wholesales (000)
725
Revenue (Bils.)
$21.2
665
$19.9
Operating
Margin (Pct.)
10.9%
Pre-Tax
Results (Mils.)
$2,296
7.1%
Memo:
First Nine Months
Third Quarter
N.A. Industry SAAR (Mils.)*
N.A. Market Share*
U.S. Industry SAAR (Mils.)*
U.S. Market Share*
$1,410
2013
2014
2013
2014
2013
2014
2013
2014
2,262
2,142
$64.5
$61.5
10.9%
8.7%
$7,009
$5,350
19.3
14.6%
16.1
14.9%
20.6
13.8%
17.2
14.1%
* Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 9
AUTOMOTIVE SECTOR -- NORTH AMERICA
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013
Millions
Industry
$ 554
Share
(376)
Stocks
(759)
Mix / Other
278
$2,296
$1,410
Pricing
$340
Incentives / Other (59)
Structural Costs $(92)
All Other
(79)
$281
$1
$(37)
$(886)
$(303)
$(171)
$(25)
$(632)
2013
3Q
Memo:
B / (W) Than 2014 2Q
2014
3Q
Volume /
Mix
Net
Pricing
$(1,030)
$(829)
$499
Warranty*
Material /
Freight*
$(340)
$(181)
Other
Cost*
Exchange
Other
$41
$(51)
$(169)
* Cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material,
freight, and warranty costs, are measured at present-year volume and mix
SLIDE 10
AUTOMOTIVE SECTOR -- SOUTH AMERICA
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013
Wholesales (000)
143
Revenue (Bils.)
Operating
Margin (Pct.)
$160
5.7%
$2.8
Pre-Tax
Results (Mils.)
$2.3
113
(7.3)%
Memo:
First Nine Months
$(170)
2013
2014
2013
2014
2013
2014
2013
2014
403
331
$8.1
$6.3
1.1%
(15.4)%
$93
$(975)
Third Quarter
S.A. Industry SAAR (Mils.)*
5.7
S.A. Market Share*
9.2%
Brazil Industry SAAR (Mils.)* 3.7
Brazil Market Share*
10.0%
5.0
8.8%
3.2
9.1%
* Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 11
AUTOMOTIVE SECTOR -- SOUTH AMERICA
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013
Millions
$392
Pricing
$465
Incentives / Other
(73)
Material Excl. Commod. $(33)
Commodities
(86)
Warranty / Freight
(21)
$160
$45
$(140)
$(170)
$(330)
2013
3Q
Memo:
B / (W) Than 2014 2Q
$(288)
Industry $(173)
Share
6
Stocks
(26)
Mix / Other (95)
$(90)
$(249)
Balance Sheet Effects $(109)
Operating
(140)
2014
3Q
Volume /
Mix
Net
Pricing
Contribution
Cost*
Other
Cost*
Exchange
Other
$125
$(7)
$114
$(84)
$(38)
$(64)
$204
* Cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material,
freight, and warranty costs, are measured at present-year volume and mix
SLIDE 12
AUTOMOTIVE SECTOR -- EUROPE
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013
Wholesales (000)*
303
321
Revenue (Bils.)
Operating
Margin (Pct.)
Pre-Tax
Results (Mils.)
$6.9
$6.4
(2.8)%
$(182)
(6.4)%
Memo:
First Nine Months
$(439)
2013
2014
2013
2014
2013
2014
2013
2014
1,010
1,064
$20.3
$22.7
(4.5)%
(2.7)%
$(913)
$(619)
Third Quarter
Europe Industry SAAR (Mils.)**
18.3
Europe Market Share**
7.3%
Europe 20 Industry SAAR (Mils.)** 13.8
Europe 20 Market Share**
8.0%
18.1
7.6%
14.5
8.4%
* Includes Ford brand vehicles produced and sold by our unconsolidated affiliates in Turkey (totaling about 12,000 and 15,000 units in Third Quarter 2013 and 2014, respectively) and in Russia (totaling about
23,000 and 13,000 units in Third Quarter 2013 and 2014, respectively); revenue does not include these sales
** Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 13
AUTOMOTIVE SECTOR -- EUROPE
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013
Millions
Industry
$ 69
Share
30
Stocks
41
Mix / Other (35)
Memo:
Material Excl. Commod. $139
Commodities
15
Warranty / Freight
23
(Included in standard
variance columns)
$177
$105
$26
$(47)
$(74)
$(83)
$(116)
$(182)
Structural Costs $(115)
All Other
(1)
$(439)
Component Pricing
Prior Year Gains
Parts & Accessories
Other
$(257)
2013
3Q
Memo:
B / (W) Than 2014 2Q
$(302)
$(100)
(37)
(28)
(137)
2014
3Q
Volume /
Mix
Net
Pricing
Contribution
Cost*
Other
Cost*
Exchange
Other
Restructuring
Cost*
Russia
$(453)
$(281)
$19
$(18)
$(21)
$(112)
$(40)
$(52)
$14
* Cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material,
freight, and warranty costs, are measured at present-year volume and mix
SLIDE 14
AUTOMOTIVE SECTOR -- MIDDLE EAST & AFRICA
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013
Wholesales (000)
Revenue (Bils.)
Operating
Margin (Pct.)
Pre-Tax
Results (Mils.)
$1.1
48
$1.0
44
(1.4)%
$(25)
(2.4)%
2013
2014
2013
2014
Memo:
First Nine Months
150
148
$3.5
$3.4
Third Quarter
MEA Industry SAAR (Mils.)*
MEA Market Share*
4.0
5.1%
4.1
5.1%
$(15)
2013
2014
2013
2014
1.0%
1.8%
$35
$62
* Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 15
AUTOMOTIVE SECTOR -- ASIA PACIFIC
2014 THIRD QUARTER KEY METRICS
COMPARED WITH 2013
Wholesales (000)*
330
346
Revenue (Bils.)
$2.5
$2.6
Operating
Margin (Pct.)
Pre-Tax
Results (Mils.)
$116
4.6%
$44
1.7%
Memo:
First Nine Months
Third Quarter
AP Industry SAAR (Mils.)**
AP Market Share**
China Industry SAAR (Mils.)**
China Market Share**
2013
2014
2013
2014
2013
2014
2013
2014
895
1,058
$7.4
$8.1
3.0%
6.1%
$218
$494
37.1
3.4%
22.1
4.3%
38.9
3.6%
23.7
4.7%
* Includes Ford brand and Jiangling Motors Corporation (JMC) brand vehicles produced and sold in China by our unconsolidated affiliates (totaling about 234,000 and 255,000 units in Third Quarter 2013 and
2014, respectively); revenue does not include these sales
** Based, in part, on estimated vehicle registrations; includes medium and heavy trucks
SLIDE 16
AUTOMOTIVE SECTOR -- ASIA PACIFIC
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013
Millions
$165
$116
Industry
$38
Share
25
Stocks
21
Mix / Other 81
$44
$25
$(16)
$(18)
$(72)
$(55)
Mfg. / Engineering
Advert. & Sales Promo.
Spending Related
Other
Total Structural Costs
$(102)
(31)
(26)
(15)
$(174)
All Other
$
1
$(173)
2013
3Q
2014
3Q
Volume /
Mix
Net
Pricing
Contribution
Cost*
Other
Cost*
Exchange
Other
Memo:
B / (W) Than 2014 2Q
$(115)
$(49)
$(17)
$54
$(85)
$(35)
$17
* Cost changes are measured primarily at present-year exchange, and exclude special items and discontinued operations. In addition, costs that vary directly with volume, such as material,
freight, and warranty costs, are measured at present-year volume and mix
SLIDE 17
FORD CREDIT
2014 THIRD QUARTER PRE-TAX RESULTS
COMPARED WITH 2013
Millions
$71
$498
$427
$103
$18
Memo:
B / (W) 2014 2Q
Receivables (Bils.)
Net*
Managed**
2013
3Q
$96
99
$12
$(25)
$(37)
2014
3Q
Volume
Financing
Margin
Credit
Loss
Lease
Residual
Other
$ 64
$16
$24
$(30)
$(10)
$64
$106
110
* Net receivables reflect net finance receivables and net investment in operating leases reported on Ford Credit’s balance sheet. The prior period was revised to conform to the presentation in
our 2013 10-K Report
** Managed receivables equal net receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation).
The prior period was revised to conform to the presentation in our 2013 10-K Report
SLIDE 18
AUTOMOTIVE SECTOR
2014 CASH*
Gross cash at end of period
Gross cash at beginning of period
Change in gross cash
Automotive pre-tax profits**
Capital spending
Depreciation and tooling amortization
Changes in working capital
Other / Timing differences
Automotive operating-related cash flow
Separation payments
Net receipts from Financial Services sector
Other
Cash flow before other actions
Changes in debt
Funded pension contributions
Dividends / Other items
Change in gross cash
Third
Quarter
(Bils.)
First
Nine
Months
(Bils.)
$ 22.8
25.8
$ 22.8
24.8
$ (3.0)
$ (2.0)
$ 0.7
(1.8)
1.1
(1.5)
0.8
$ 3.8
(5.2)
3.1
(0.5)
1.9
$ (0.7)
$ 3.1
0.2
(0.3)
$ (0.8)
(0.1)
0.4
(0.2)
$ 3.2
(0.3)
(0.3)
(1.6)
(0.7)
(1.1)
(3.4)
$ (3.0)
$ (2.0)
* See Appendix for reconciliation to GAAP
** Excludes special item s; see Appendix for detail and reconciliation to GAAP
SLIDE 19
AUTOMOTIVE SECTOR
2014 AUTOMOTIVE FINANCIAL RESOURCES
June 30,
2014
(Bils.)
Sep. 30,
2014
(Bils.)
Automotive gross cash*
$
$
Less:
Long-term debt
Debt payable within one year
$ (13.2)
(2.2)
$ (12.2)
(2.7)
$ (15.4)
$ (14.9)
Net cash**
$
10.4
$
7.9
Memo: Liquidity***
$
36.7
$
33.6
Total debt
25.8
22.8
* See Appendix for reconciliation to GAAP
** Net cash is calculated as Automotive gross cash net of Automotive debt
*** Total available committed Automotive credit lines (including local lines available to foreign affiliates)
were $10.8 billion at September 30, 2014
SLIDE 20
2014 BUSINESS ENVIRONMENT OVERVIEW
Global
• Global economy to expand 2.5% with weaker trends in Europe and
South America; global industry sales of about 87 million units
Americas
• U.S. economic indicators remain consistent with growth in the 3% range in
the Second Half
• South America faces continued volatility, policy uncertainty, and recessionary
conditions in Brazil and other key markets
Europe
• Incoming data reflect deceleration in Euro Area, with Full Year 2014 growth
less than 1%; U.K. growth is projected in the 3% range
Asia Pacific
• China’s economic growth projected in the 7.5% range
• India GDP growth now projected to be in the 5% - 5.5% range
2014 Global Economic Growth In The 2.5% Range
SLIDE 21
2014 KEY METRICS -- BUSINESS UNITS
2013 Full Year
Results
Automotive (Mils.)*
North America
- Operating Margin
$ 8,809
10.2 %
South America
$
Europe
(33)
(1,442)
2014 Full Year Compared With 2013
Plan
Outlook
Memo:
First Nine
Months
Results
Lower
8% - 9%
On Track
Low End Of Range
$ 5,350
8.7%
About Equal
About $(1,000)
$ (975)
Better
About $(1,200)
(619)
Middle East & Africa
(69)
About Breakeven
On Track
62
Asia Pacific
327
About Equal
About $700
494
(801)
About Equal
About $(700)
(500)
About Equal
$1,800 - $1,900
Net Interest Expense
Ford Credit (Mils.)
$ 1,756
$ 1,431
* Excludes special items
Business Unit Guidance Unchanged From Investor Day
SLIDE 22
2014 PLANNING ASSUMPTIONS AND KEY METRICS
2013 Full Year
Results
Planning Assumptions (Mils.)
Industry Volume* -- U.S.
-- Europe 20
-- China
Key Metrics
Automotive (Compared with 2013):
- Revenue (Bils.)
15.9
13.8
22.2
$ 139.4
5.4 %
- Operating Margin**
2014 Full Year
Plan
Outlook
16.0 - 17.0
13.5 - 14.5
22.5 - 24.5
16.8
14.5
23.8
About Equal
On Track
Lower
On Track
Memo:
First Nine
Months
Results
16.7
14.5
23.5
$ 102.0
4.2 %
- Operating-Related Cash Flow (Bils.)***
$
6.1
Substantially Lower
Lower
$
3.1
Ford Credit (Compared with 2013):
- Pre-Tax Profit (Bils.)
$
1.8
About Equal
$1.8 - $1.9
$
1.4
Company:
- Pre-Tax Profit (Bils.)***
$
8.6
$7 - $8
About $6
$
5.2
* B a s e d, in pa rt , o n e s t im a t e d v e hic le re gis t ra t io ns ; inc lude s m e dium a nd he a v y t ruc k s
** A ut o m o t iv e o pe ra t ing m a rgin is de f ine d a s A ut o m o t iv e pre - t a x re s ult s , e xc luding s pe c ia l it e m s a nd O t he r A ut o m o t iv e , div ide d by A ut o m o t iv e re v e nue
*** E xc lude s s pe c ia l it e m s ; s e e A ppe ndix f o r de t a il a nd re c o nc ilia t io n t o G A A P
Total Company 2014 Pre-Tax Profit Outlook Unchanged At About $6 Billion.
Strong Growth And Financial Performance Expected For 2015
SLIDE 23
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 effectively as one team -- leveraging our global assets
Large
Americas
Asia Pacific
Europe,
Middle East
& Africa
+
Medium
Small
+
=
Profits
& Cash
PROFITABLE GROWTH
FOR ALL
SLIDE 24
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:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Decline in industry sales volume, particularly in the United States or Europe, 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 or other financial institutions 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, 2013, as updated by our subsequent Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K.
SLIDE 25
APPENDIX
SLIDE 26
2014 THIRD QUARTER EARNINGS -APPENDIX INDEX
•
•
•
•
Calculation of Earnings Per Share
Income from Continuing Operations
Special Items
Preliminary Sector Income Statement
Slide
1
2
3
4
Automotive Sector
• Production Volumes
• Dealer Stocks and Definition of Wholesales
• Market Share
• Automotive Debt
5
6
7
8
Reconciliation to GAAP (Automotive Sector)
• Net Interest
• Gross Cash
• Operating-Related Cash Flows
9
10
11
• 2015 Guidance
12
SLIDE 27
2014 CALCULATION OF EARNINGS PER SHARE
SLIDE 28 1
APPENDIX
2014 INCOME FROM CONTINUING OPERATIONS
SLIDE 29 2
APPENDIX
SPECIAL ITEMS
SLIDE 30 3
APPENDIX
PRELIMINARY SECTOR INCOME STATEMENT DATA
Third Quarter
2013
2014
(Mils.)
(Mils.)
For the periods ended September 30
(Unaudited)
AUTOMOTIVE
Revenues
Costs and Expenses
Cost of sales
Selling, administrative, and other expenses
Total costs and expenses
$
Interest expense
Interest income and other income / (loss), net
Equity in net income / (loss) of affiliated companies
Income before income taxes -- Automotive
FINANCIAL SERVICES
Revenues
Costs and expenses
Interest expense
Depreciation on vehicles subject to operating leases
Operating and other expenses
Provision for credit and insurance losses
Total costs and expenses
Other income / (loss), net
Equity in net income / (loss) of affiliated companies
Income before income taxes -- Financial Services
COMPANY
Income before income taxes
Provision for / (Benefit from) income taxes
Net income
Less: Income / (Loss) attributable to non-controlling interests
Net income attributable to Ford Motor Company
$
33,857
32,779
$ 103,794
$ 102,020
30,030
2,382
32,412
30,197
2,489
32,686
92,559
7,351
99,910
92,465
7,516
99,981
204
204
617
619
200
287
1,728
255
382
526
686
763
4,716
739
853
3,012
1,918
2,141
5,553
6,187
762
632
221
46
1,661
673
808
187
74
1,742
2,173
1,673
538
139
4,523
2,034
2,256
560
217
5,067
100
6
363
90
6
495
270
17
1,317
245
21
1,386
1,021
188
833
(2)
835
6,033
1,914
4,119
3
4,116
4,398
1,261
3,137
2
3,135
2,091
818
1,273
1
1,272
$
First Nine Months
2013
2014
(Mils.)
(Mils.)
$
$
$
SLIDE 31 4
APPENDIX
AUTOMOTIVE SECTOR
PRODUCTION VOLUMES*
SLIDE 32 5
APPENDIX
SELECTED MARKETS
2014 THIRD QUARTER DEALER STOCKS AND
DEFINITION OF WHOLESALES*
SLIDE 33 6
APPENDIX
AUTOMOTIVE SECTOR
MARKET SHARE*
2013
2014
2014 B / (W) 2013
Memo:
First Nine Months
3Q
4Q
1Q
2Q
3Q
2Q
3Q
2013
2014
(Pct.)
(Pct.)
(Pct.)
(Pct.)
(Pct.)
(Pts.)
(Pts.)
(Pct.)
(Pct.)
North America
Total
U.S.
14.6
14.9
14.6
15.4
14.6
15.3
14.8
15.3
13.8
14.1
(1.2)
(1.2)
(0.8)
(0.8)
15.3
15.8
14.4
14.9
South America
Total
Brazil
9.2
10.0
8.5
9.4
8.6
9.2
8.9
9.1
8.8
9.1
(0.2)
(0.1)
(0.4)
(0.9)
9.1
9.5
8.7
9.1
Europe
Total
Europe 20
7.3
8.0
7.1
7.4
7.2
8.0
7.1
7.9
7.6
8.4
(0.4)
(0.2)
0.3
0.4
7.3
7.9
7.3
8.1
Middle East & Africa
Total
5.1
5.3
4.4
4.4
5.1
(0.5)
-
4.9
4.7
Asia Pacific**
Total
China
3.4
4.3
3.6
4.4
3.4
4.5
3.7
4.6
3.6
4.7
0.4
0.3
0.2
0.4
3.1
4.0
3.5
4.6
7.4
7.1
6.9
7.5
7.4
(0.2)
-
7.3
7.2
13.2
8.3
13.7
7.6
13.5
8.2
12.8
8.3
13.0
8.8
(0.9)
(0.1)
(0.2)
0.5
13.6
8.4
13.1
8.4
Total Share of Total Industry
Global
Retail Share of Retail Industry
U.S.***
Europe****
*
**
***
****
Ba se d, in pa rt, on e stima te d ve hic le re gistra tions; inc lude s me dium a nd he a vy truc ks; prior pe riods re vise d to re fle c t pre se nt ye a r Automotive se gme nt struc ture
Asia P a c ific ma rke t sha re inc lude s Ford bra nd a nd JMC bra nd ve hic le s produc e d a nd sold in China b y our unc onsolida te d a fflia te s
P re se nt qua rte r is e stima te d, prior qua rte rs a re ba se d on la ste st P olk da ta
Europe pa sse nge r c a r re ta il sha re of re ta il industry re fle c ts th e five ma jor ma rke ts (U. K. , G e rma ny, Fra nc e , Ita ly, a nd S pa in); pre se nt qua rte r is e stima te d, prior
qua rte rs a re ba se d on la ste st Da ta Forc e da ta
SLIDE 34 7
APPENDIX
AUTOMOTIVE SECTOR
AUTOMOTIVE DEBT
Public unsecured debt
Dec. 31,
2013
(Bils.)
June 30
(Bils.)
Sep. 30
(Bils.)
$
$
$
6.7
2014
6.6
6.7
Convertible notes
0.8
0.8
0.8
U.S. Department of Energy
5.0
4.7
4.6
Other debt (including International)
3.2
3.3
2.8
Total Automotive debt
$
15.7
$
15.4
$
14.9
$
1.3
$
2.2
$
2.7
Memo:
Automotive debt payable within one year
SLIDE 35 8
APPENDIX
AUTOMOTIVE SECTOR
NET INTEREST RECONCILIATION TO GAAP
SLIDE 36 9
APPENDIX
AUTOMOTIVE SECTOR
GROSS CASH RECONCILIATION TO GAAP
2013
Cash and cash equivalents
Marketable securities
Total cash and marketable securities (GAAP)
Securities in transit*
Gross cash
*
Sep. 30
(Bils.)
Dec. 31
(Bils.)
Mar. 31
(Bils.)
2014
June 30
(Bils.)
$
$
$
$
5.7
20.4
$ 26.1
$ 26.1
5.0
20.1
$ 25.1
(0.3)
$ 24.8
4.5
20.7
$ 25.2
$ 25.2
4.7
21.1
$ 25.8
Sep. 30
(Bils.)
$
6.0
16.9
$ 22.9
-
(0.1)
$ 25.8
$ 22.8
The purchase or sale of marketable securities for which the cash settlement was not made by period end and the related payable or receivable remained on the balance sheet
SLIDE 37 10
APPENDIX
AUTOMOTIVE SECTOR
OPERATING-RELATED CASH FLOWS
RECONCILIATION TO GAAP
SLIDE 38 11
APPENDIX
2015 GUIDANCE
Outlook
Planning Assumptions (Mils.)
Industry Volume* -- U.S.
-- Europe 20
-- China
16.8 - 17.5
14.8 - 15.3
24.0 - 26.0
Key Metrics
Automotive:
- Revenue
Higher ***
- Operating Margin**
Higher ***
- Operating-Related Cash Flow**
Ford Credit:
- Pre-Tax Profit
Company:
- Pre-Tax Profit (Bils.)**
Positive
Equal To Or Higher ***
$8.5 - $9.5
* Includes medium and heavy trucks
* * Excludes special items
* * * Compared with 2014
Strong Growth And Financial Performance Expected For 2015
SLIDE 39 12
APPENDIX