2014 FOURTH QUARTER AND FULL YEAR EARNINGS REVIEW AND 2015 OUTLOOK JANUARY 29, 2015 JANUARY 29, 2015 JANUARY 29, 2015 JANUARY 29, 2015 (PRELIMINARY RESULTS) (PRELIMINARY RESULTS) (PRELIMINARY RESULTS) (PRELIMINARY RESULTS) SLIDE 0
OUR FOCUS • One Ford -- Acceleration • Product Excellence -- Delivered With Passion • Innovation -- In Every Part Of Our Business THE PLAN Large Profits PROFITABLE GROWTH Americas Americas & Cash FOR ALL + + = Asia Pacific Asia Pacific Medium Medium Small Small Europe, Middle East & Africa SLIDE 1
2014 FOURTH QUARTER AND FULL YEAR SUMMARY* • Fourth Quarter was the 22 nd consecutive quarter of Company pre-tax profit; Automotive operating-related cash flow positive; liquidity strong • Wholesale volume and Company revenue lower than a year ago by 2% and 5%, respectively • North America and Asia Pacific profitable; strong results at Ford Credit • In the Full Year, 5 th consecutive year of Company pre-tax profit and positive Automotive operating-related cash flow; results consistent with guidance. North America profitable, record profit in Asia Pacific, and highest profit at Ford Credit since 2011. Results improved in Europe and Middle East & Africa; a loss in South America • Wholesale volume about equal to a year ago, and Company revenue down 2%. Record market share in Asia Pacific, driven by record China share • Funded status of global pension plans unchanged • Reconfirming 2015 pre-tax profit, Automotive revenue and operating margin outlook -- pre-tax profit to range from $8.5 billion to $9.5 billion with higher Automotive revenue and Automotive operating margin than 2014; improving Automotive operating-related cash flow guidance to higher than 2014 * Excludes special items; Business Unit records are since at least 2000 when we began reporting specific Business Unit results Company 2014 Results Met Guidance; Expect Strong Growth And Improved Financial Performance For 2015 SLIDE 2
2014 HIGHLIGHTS • Launched a record 24 vehicles globally, including the all-new F-150, Mustang, Escort, Ka, Transit, and Lincoln MKC • Revealed new global Explorer and the all-new Everest for Asia Pacific • Ford remained the best-selling vehicle brand in the U.S. and the best-selling automaker in Canada for the 5 th consecutive year • F-Series achieved U.S. truck sales leadership for 38 th year in a row and U.S. vehicle sales leadership for 33 rd year in a row. Set all-time U.S. sales records for both Fusion and Escape • Remained the No. 2 selling vehicle brand in Europe and continued to progress our European Transformation Plan, including year-over-year share gain in Europe 20 for first time since 2009; closed Genk, Belgium plant, improving capacity utilization • Continued Ford growth in China with a record 1.1 million wholesales, up 19% over 2013; our Changan Ford joint venture opened two new plants, and we launched Lincoln in China with the first nine dealerships • Increased 2014 quarterly dividend by 25%; completed share repurchase program SLIDE 3
2014 KEY FINANCIAL SUMMARY SLIDE 4
TOTAL COMPANY 2014 PRE-TAX RESULTS BY SECTOR* Fourth Quarter (Mils.) Full Year (Mils.) $6,282 $1,121 $4,488 Ford Credit $423 Other (15) $713 Ford Credit $1,854 Other (60) $408 $1,794 Total Automotive Financial Total Automotive Financial Services Services Memo: B / (W) 2013 $(197) $(250) $ 53 $(2,326) $(2,448) $122 B / (W) 2014 3Q (60) 27 (87) * Excludes special items; see Appendix for detail and reconciliation to GAAP SLIDE 5
AUTOMOTIVE SECTOR 2014 FOURTH QUARTER KEY METRICS COMPARED WITH 2013* Operating Pre-Tax Wholesales (000) Revenue (Bils.) Margin (Pct.)** Results (Mils.) 1,610 $35.6 3.2% $963 1,580 $33.8 2.8% $713 2013 2014 2013 2014 2013 2014 2013 2014 Memo: Full Year 6,330 6,323 $139.4 $135.8 5.4% 3.9% $6,936 $4,488 Fourth Quarter Global Industry SAAR (Mils.)*** 88.2 90.2 Global Market Share*** 7.1% 6.9% * 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 FOURTH QUARTER PRE-TAX RESULTS COMPARED WITH 2013* Millions Market Factors Total Cost Industry $ 555 Mfg. / Engineering $(349) Share (455) Spending Related (226) $963 $875 Advert. & Sales Promo. (73) Stocks (335) Other 53 Mix / Other 113 $713 Total Structural Costs $(595) All Other $ 5 $(55) $(55) $(122) $(250) $(303) Pricing $1,207 Incentives / Other (332) $(590) 2013 2014 Volume / Net Contribution Other Exchange Net 4Q 4Q Mix Pricing Cost** Cost** Interest / Other Memo: B / (W) Than 2014 3Q $27 $492 $81 $76 $(801) $94 $85 * 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 FOURTH QUARTER PRE-TAX RESULTS BY SEGMENT* Millions $1,548 $713 Net Interest $ (83) Other (135) $95 $(82) $(187) $(218) $(443) Total North South Europe Middle East Asia Other America America & Africa Pacific Automotive Memo: B / (W) 2013 4Q $(250) $(252) $(61) $86 $ 22 $(14) $(31) B / (W) 2014 3Q 27 138 (17) (4) (67) 51 (74) * Excludes special items; see Appendix for detail and reconciliation to GAAP SLIDE 8
AUTOMOTIVE SECTOR 2014 FULL YEAR PRE-TAX RESULTS COMPARED WITH 2013* Millions Industry $ 1,625 Market Share (1,420) $6,936 Stocks (1,224) Mix / Other 274 Mfg. / Engineering $(1,229) Spending Related (470) Admin. & Selling (308) Pension / Other 353 $4,488 Pricing $ 3,767 Total Structural Costs $(1,654) Incentives / Other (1,823) All Other $ (105) $1,944 $809 $(338) $(745) $(1,101) $(1,258) $(2,448) $(1,759) 2013 2014 Volume / Net Warranty** Material / Other Exchange Net Mix Pricing Freight** Cost** Interest / Other * 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 9
AUTOMOTIVE SECTOR 2014 FULL YEAR PRE-TAX RESULTS BY SEGMENT* Millions $6,898 $4,488 Net Interest $(583) Other (172) $589 $(20) $(755) $(1,062) $(1,162) Total North South Europe Middle East Asia Other America America & Africa Pacific Automotive Memo: B / (W) 2013 $(2,448) $(1,911) $(1,129) $380 $49 $262 $(99) * Excludes special items, see Appendix for detail and reconciliation to GAAP SLIDE 10
AUTOMOTIVE SECTOR -- NORTH AMERICA 2014 FOURTH QUARTER KEY METRICS COMPARED WITH 2013 Operating Pre-Tax Wholesales (000) Revenue (Bils.) Margin (Pct.) Results (Mils.) 744 $22.0 $1,800 8.2% $20.9 700 7.4% $1,548 2013 2014 2013 2014 2013 2014 2013 2014 Memo: Full Year 3,006 2,842 $86.5 $82.4 10.2% 8.4% $8,809 $6,898 Fourth Quarter N.A. Industry SAAR (Mils.)* 19.3 20.7 N.A. Market Share* 14.6% 13.6% U.S. Industry SAAR (Mils.)* 16.0 17.2 U.S. Market Share* 15.4% 14.3% * Based, in part, on estimated vehicle registrations; includes medium and heavy trucks SLIDE 11
AUTOMOTIVE SECTOR -- NORTH AMERICA 2014 FOURTH QUARTER PRE-TAX RESULTS COMPARED WITH 2013 Millions Industry $ 510 Material Excl. Commod. $(18) Share (478) Commodities (94) $1,800 Stocks (399) Warranty / Freight 199 Mix / Other (105) $1,548 Mfg. / Engineering $(220) Spending Related (149) Pricing $430 Other 40 Incentives / Other (56) Total Structural Costs $(329) All Other $ (48) $374 $147 $87 $(11) $(252) $(377) $(472) 2013 2014 Volume / Net Contribution Other Other Exchange 4Q 4Q Mix Pricing Cost* Cost* Memo: B / (W) Than 2014 3Q $138 $248 $(147) $402 $(573) $82 $126 * 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 -- SOUTH AMERICA 2014 FOURTH QUARTER KEY METRICS COMPARED WITH 2013 Operating Pre-Tax Revenue (Bils.) Margin (Pct.) Results (Mils.) Wholesales (000) 135 $2.7 132 $2.5 (4.7)% $(126) (7.6)% $(187) 2013 2014 2013 2014 2013 2014 2013 2014 Memo: Full Year 538 463 $10.8 $8.8 (0.3)% (13.2)% $(33) $(1,162) Fourth Quarter S.A. Industry SAAR (Mils.)* 6.1 5.3 S.A. Market Share* 8.5% 9.4% Brazil Industry SAAR (Mils.)* 3.7 3.6 Brazil Market Share* 9.4% 10.1% * Based, in part, on estimated vehicle registrations; includes medium and heavy trucks SLIDE 13
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