Fixed Income Investor Presentation First Quarter 2018 FC FC1 - - PowerPoint PPT Presentation

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Fixed Income Investor Presentation

First Quarter 2018

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• Strategy Highlights

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• Corporate Overview

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• Ford Credit

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• Appendix

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Agenda

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Strategy Highlights

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1. Rapidly improving our fitness to lower costs, release capital and finance growth 2. Accelerating the introduction of connected, smart vehicles and services 3. Re-allocating capital to where we can win in the future 4. Continuously innovating to create the most human-centered mobility solutions 5. Empowering our team to work together effectively to compete and win

Smart Vehicles In A Smart World

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Partnerships strengthen our competitive position

Markets Technologies Capabilities Mobility

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We continue to evolve, building on our strengths while addressing market challenges

• Strategic choices
• Marketing reset and brand plan
• Cost reset
• Product – play-to-win profitably
• 100% connectivity in the U.S. by 2019;

90% globally by 2020

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EV strategy plays to our strengths, builds on our brands, leverages scale and innovates across the value chain

Mach I – Performance BEV F-150 Hybrid Mustang Hybrid Transit Plug-In Hybrid Ionity Fast Charging Infrastructure

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We will spend over $11 billion on electrification by 2022

U.S.

• Positioned for EV leadership
• HEV offered on all mainstream

models

China

• BEVs and hybrids from our CAF and

JMC JVs

• Value BEVs from our Zotye JV

Europe

• Strong BEV portfolio
• Mild hybrids

$4.5 $6.7 >$11 Original Investment Revised Investment 2015 - 2022

Electrification Investment (Bils)

2015 - 2020

50%

FC FC9

Our approach to AVs is focused on combining scalable, human-centered foundational technology with innovative, robust business models

AV Software  Strong software talent  Strategic investments in enabling technologies (e.g., LiDAR) Vehicle Platform  Scale manufacturing  Proven track record of commercial vehicle leadership  Diverse partner network to maximize revenue per mile  Commercial durability to maximize utilization AV Business

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Automotive Segment Capital Strategy And Balance Sheet Priorities (Bils)

Shareholder Distribution Strategy

Global funded pension plans now effectively fully funded Minimum cash target established to protect for major downturn and liquidity for additional exogenous shock Sustainable and flexible shareholder distributions strategy 2018 planned distributions of about $3.1B

Cash and Liquidity Debt and Pension Funding Deficit $(14.3) $(15.9) $(18.7) $(6.6) 2012 2017

Debt Pension

$26.5 $20.0 $10.9 $10.0

Committed Credit Facilities Cash

4Q 2017 Target $(33.0) $(22.5)

Fixed Income - U.S. Plans (Pct) 55% 76% Pension Plan Sensitivity (Bils)* $5.7 $2.1

$37.4 $30.0 2016 $2.4 $2.4 $2.4 $1.0 $0.2 $0.5

Supplemental Dividend Anti-Dilutive Share Repurchases Regular Dividends

2017 2018

$3.5 $2.7 $3.1

* Net funded status change for + / - 100 bps average change in rates

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Total Company Credit Ratings (as of March 1, 2018)

S&P Moody's Fitch DBRS Issuer Ratings Ford Motor BBB N/A BBB BBB Ford Credit BBB N/A BBB BBB FCE Bank plc BBB N/A BBB NR Long-Term Senior Unsecured Ford Motor BBB Baa2 BBB BBB Ford Credit BBB Baa2 BBB BBB FCE Bank plc BBB Baa2 BBB NR Short-Term Unsecured Ford Credit A-2 P-2 F2 R-2M Outlook Stable Negative* Stable Stable

* On January 30, 2018, Moody’s changed Ford and Ford Credit’s ratings outlook to “Negative” from “Stable”

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Corporate Overview

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Product And Other Highlights

Commercial vehicle leader in Europe for third straight year; began production of the new EcoSport SUV in Romania 100 percent of Ford’s new U.S. vehicles will be built with connectivity by 2019 and 90 percent globally by 2020 Announced the introduction of more than 50 new vehicles in China by 2025 Increased investment in Flat Rock for purpose-built autonomous vehicle; accelerated and increased BEV investment Achieved eighth consecutive year as best-selling brand in the U.S. F-Series marks 41 years as America’s best-selling pickup. F-150 diesel added to lineup

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FY Automotive segment PBT driven by NA Auto operations outside NA a loss in total and down YoY, driven largely by expected Brexit effects in Europe Strong Financial Services profit All Other primarily net interest expense plus FSM LLC

Company FY 2017 Adjusted Pre-Tax Results* (Mils)

$8,437 $7,511 $(784) $234 $(263) $561 $2,248 $(1,070)

South America Total North America All Other Asia Pacific Europe

B / (W) FY 2016 $(1,938) $(1,490) $325 $(971) $39 $(66) $428 $(203)

Middle East & Africa Financial Services Segment Automotive Segment

$7,259

* See Appendix for detail, reconciliation to GAAP and definitions

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Wholesales (000) Revenue (Bils) Market Share (Pct) Operating Margin (Pct) Pre-Tax Results (Mils) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016

Automotive Segment FY 2017 Key Metrics

FY wholesales about flat; revenue up 3% due to favorable mix and higher volume from consolidated

• perations and net pricing

Global industry up 2% due to AP, Europe and SA Global market share down due to AP, Europe and MEA; NA flat; SA improved Auto PBT and operating margin lower than last year 5.0% 6.7% $7,259 $9,422 7.2% 6,607 6,651 $145.7 $141.5 7.0% 1% 0.2 ppts 3% 1.7 ppts 23%

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Operating Margin (Pct) Pre-Tax Results (Mils) Wholesales (000) Market Share (Pct) Revenue (Bils) 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

Automotive Segment – North America FY 2017 Key Metrics

8.0% 9.7% 1.7 ppts $7,511 $9,001 17% 2,967 3,019 2% 13.9% 13.9%

• - ppts

$93.5 $92.6 1 %

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Operating Margin (Pct) Pre-Tax Results (Mils) Wholesales (000) Market Share (Pct) Revenue (Bils) 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

Automotive Segment – South America FY 2017 Key Metrics

29% $(1,109) $(784) (13.4)% (23.0)% 9.6 ppts 373 325 15% $5.8 $4.8 21% 8.9% 8.8% 0.1 ppts

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Operating Margin (Pct) Pre-Tax Results (Mils) Wholesales (000) Market Share (Pct) Revenue (Bils) 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

Automotive Segment – Europe FY 2017 Key Metrics

$234 $1,205 81% 0.8% 4.2% 3.4 ppts 7.5% 7.7% 0.2 ppts 1,582 1,539 3% $29.7 $28.5 4% *

* Includes Ford brand vehicles produced and sold by our unconsolidated affiliate in Turkey (about 78,000 units in 2016 and 78,000 units in 2017). Revenue does not include these sales.

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Operating Margin (Pct) Pre-Tax Results (Mils) Wholesales (000) Market Share (Pct) Revenue (Bils) 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

Automotive Segment – Asia Pacific FY 2017 Key Metrics

3.4% 3.7% 0.3 ppts $561 $627 11% 4.0% 5.2% 1.2 ppts 1,566 1,607 3% $14.1 $12.0 17% *

| | B6 B6

* Wholesales include Ford brand and Jiangling Motors Corporation (JMC) brand vehicles produced and sold in China by our unconsolidated affiliates (about 1,217,000 units in 2016 and 1,132,000 units in 2017). Revenue does not include these sales

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Market Factors Total Cost Volume / Mix Net Pricing Structural Cost Exchange Other Contribution Cost FY 2017 FY 2016

Automotive Segment FY 2017 Pre-Tax Results (Mils)

FY Auto PBT $2.2B lower than 2016 due to higher commodities and adverse exchange; all other factors about offset Higher commodities driven by metals, mainly steel Most of adverse exchange caused by Brexit effects of about $600M, along with Canadian dollar, Chinese RMB and Argentine peso Favorable market factors driven by improved mix in all regions except SA and higher net pricing except in AP (China)

Pricing $ 2,885 Incentives / Other (2,668) Commodities $(1,213) Other (5) Industry $(146) Share 45 Stocks 95 Mix 952 Other (529)

$634 $(1,928)

Manufacturing, Incl. Vol. Related $(231) Engineering (451) Other (28)

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Automotive Segment – North America A Disciplined Approach To The U.S. Business

Industry Average Ford

70 70 60 79 78 68 U.S. Gross Days Supply

4Q Ford ATPs up, about the same as the industry average; FY ATPs rose more than 2X the industry due to F-Series 4Q Ford incentives, as a percent of vehicle price, up more than industry average, but Ford incentives in FY increased less than a third

• f industry’s average

Ford U.S. stocks at healthy levels and days supply

• 0.2

0.7 0.3 0.7 0.6 1.0 0.8 0.8 0.2 YoY Incentive Change as Pct. of Vehicle Price* YoY Average Transaction Price (USD)* $869 $1,025 $1,433 $1,127 $573 $766 $717 $1,465 $998 $1,310 Oct Nov Dec 4Q

Industry Average Ford Better

Oct Nov Dec

Industry Average Ford * Source: J.D. Power PIN ISR data – cash / APR / lease (blended) transaction; industry data includes Ford

FY Oct Nov Dec 4Q FY

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Commodity Prices* YoY Profit Impact (Bils)

Ford’s Commodity Costs Generally Move In-Line With Market Prices (As of February 8, 2018)

Annual buy of about $10B; steel and aluminum roughly two-thirds Benefited in 2015 and 2016 YoY from falling prices as commodities hit cyclical lows Market pricing began to climb in late 2016 2018 prices – further increase, consistent with market dynamics About one-third of 2018 exposure is fixed through contracts and hedges; remainder indexed

Steel ($ / Short Ton) Aluminum ($ / Metric Ton)

2010 2012 2014 2016 2017 2018** 2009 2015 2013 2011

$1.2 $(2.3) $0.9 $(1.2)

$1,200 $1,700 $2,200 $2,700 $300 $500 $700 $900

2010 2012 2014 2016 2017 2018 2009 2015 2013 2011

* Source: Bloomberg; ticker symbols: HRC2 (Steel) and LOAHDY (Aluminum) ** Ford forecast

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Reflects benefits of investment in 2016 and 2017 Fresh products drive improved pricing and mix

Robust Increase In Product Launches In 2018

11 8 2 5 6 4 23 11 6 21 17 16 Global* Asia Pacific

Launches

North America South America Europe Middle East & Africa

2017 2018

* Global launches do not equal the sum of the regional launches

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Ford Credit

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Ford Credit A Strategic Asset

Over The Last 20 Years, Ford Credit Generated $42 Billion In Pre-Tax Profits And $26 Billion In Distributions

$1.8 $2.1 $2.5 $2.5 $4.9 $2.0 $3.7 $2.9 $2.0 $1.2 $(2.6) $2.0 $3.1 $2.4 $1.7 $1.8 $1.9 $2.1 $1.9 $2.3 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Pre-Tax Results Distributions

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Ford Credit Strategy

Ford Credit Maintains A Relentless Focus On Business Fundamentals

SERVICE ORIGINATE FUND

• Support Ford and

Lincoln sales

• Strong dealer relationships
• Full spread of business
• Consistent underwriting
• Robust credit evaluation and

verification

• Efficient use of capital
• High customer and dealer

satisfaction

• World-class servicing
• Credit losses within

expectations

• Operationally fit with lean

cost structure

• Strong liquidity
• Diverse sources and channels
• Cost effective
• Credit availability through

economic cycles

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PBT improved $431M YoY reflecting favorable volume and mix, lease residual improvement and financing margin Volume and mix up due to global receivables growth Lease residual improvement driven by higher than expected auction values

Ford Credit FY 2017 Pre-Tax Results (Mils)

2017 2016 Volume / Mix Financing Margin Lease Residual Exchange Other Credit Loss

Residual Losses $118 Supplemental Depreciation (62) Non-Repeat of 2016 Pension Settlement $ 77 Operating Costs & Other (37)

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Solidly profitable globally Improved YoY in all segments

Ford Credit FY 2017 Pre-Tax Results By Segment (Mils)

$2,310 $1,795 $329 $85 $101

Total Americas Europe Asia Pacific

B / (W) FY 2016 $ 431 $284 $91 $24 $32

$2,209

Unallocated Other*

* See Appendix for definitions

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2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Average Placement FICO Managed Receivables* (Bils) Over-60-Day Delinquencies (Pct) Pre-Tax Results (Mils) Loss-to-Receivables (LTR) (Pct) U.S. Retail and Lease Net Receivables (Bils)

Ford Credit FY 2017 Key Metrics

Strong and improved YoY PBT Business and portfolio continue to perform well U.S. consumer credit metrics remain healthy

* See Appendix for reconciliation to GAAP

10% 23% 1 bp 6 bps 10% 7 pts $130 $143 $137 $151 $1,879 $2,310 739 746 0.15%0.14% 0.47% 0.53%

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$41.4 $29.8 $9.2 $74.6 $55.1 $15.0 $26.7 $26.4

Total Asia Pacific Americas

Net Investment in Operating Leases Consumer Financing Non-Consumer Financing

Europe

$11.5 $142.7 $111.3 $24.5 $6.9

YE 2017 H/(L) 2016 (Pct.) (Ppts.) SUV / CUV 55 1 Car 22 (4) Truck 23 3

Prudent management of lease mix Operating lease portfolio was 19%

• f total net receivables

U.S. and Canada represent 99% of

• perating lease portfolio

YE 2017 Net Receivables Mix (Bils)

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60 mo 62 mo 64 mo 65 mo 65 mo 0% 1% 4% 4% 6% 2013 2014 2015 2016 2017 738 741 740 739 746 5% 5% 6% 6% 6% 2013 2014 2015 2016 2017 Disciplined and consistent underwriting practices Portfolio quality evidenced by FICO scores and steady risk mix Extended-term contracts relatively small part of our business

U.S. Origination Metrics

FICO and Higher Risk Mix (Pct) Retail Contract Terms

Retail ≥ 73 Months Mix Average Retail Placement Term Higher Risk Portfolio Mix Retail and Lease Average Placement FICO

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29 28 28 33 36 1.18% 1.06% 0.98% 1.05% 1.13%

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

2013 2014 2015 2016 2017

• Repo. Rate

Repossessions

Delinquencies and repossessions remain low Severity increased reflecting longer term financing and lower auction values Charge-offs and LTR continue to be within our placement expectations Strong loss metrics reflect healthy consumer credit conditions

U.S. Retail And Lease Credit Loss Drivers

$127 $146 $206 $324 $382 0.26% 0.27% 0.33% 0.47% 0.53%

$- $100 $200 $300 $400 $500 $600 $700

2013 2014 2015 2016 2017 $7.6 $7.9 $8.9 $10.1 $10.3 2013 2014 2015 2016 2017

Severity (000) Charge-Offs (Mils) and LTR Ratio (Pct) Repossessions (000) and Repo. Rate (Pct)

0.15% 0.14% 0.12% 0.15% 0.14% 2013 2014 2015 2016 2017

Over-60-Day Delinquencies (excl. Bankruptcies)

LTR Ratio Charge-offs

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24% 26% 28% 30% 29% 18% 20% 22% 22% 20% 2013 2014 2015 2016 2017

41 40 39 39 40 189 230 276 298 290 94 87 92 56 38

324 357 407 393 368 2013 2014 2015 2016 2017

Lease share continues to be below industry reflecting Ford sales mix

U.S. Lease Origination Metrics

Lease Placement Volume (000) Lease Share of Retail Sales (Pct)

* Source: JD Power PIN

24-Month 36-Month 39-Month / Other Ford Credit Industry*

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$17,385 $17,865 $17,975 $17,210 $16,825 $19,000 $18,765 $19,785 $19,085 $19,535 2013 2014 2015 2016 2017 114 189 180 246 290 71% 78% 74% 78% 80% 2013 2014 2015 2016 2017

100 200 300 400

Healthy used car market supporting lease residual and credit loss performance Auction values stronger than expected Continue to plan for lower auction values -- about 4% at constant mix in 2018

U.S. Lease Residual Performance

Lease Return Volume (000) and Return Rates (Pct) Off-Lease Auction Values (at incurred Mix)

24-Month 36-Month Return Rates Return Volume

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Securitized Funding as Pct

• f Managed Receivables

39% 37% 35%

Funding is diversified across platforms and markets Well capitalized with strong investment grade balance sheet profile

Funding Structure – Managed Receivables* (Bils)

$11 $11 $12 $12 $13 $16 $6 $9 $9 $62 $66 $75 $50 $50 $53 $6 $6 $5 $2 $4 $5

$127 $137 $151

YE 2015 YE 2016 YE 2017

Commercial Paper Term Debt (incl Bank Borrowings) Ford Interest Advantage / Deposits Term Asset-Backed Securities Cash Equity Other

* See Appendix for reconciliation to GAAP and definitions

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U.S. Canada Europe Mexico China Securitization Retail

• Public

  

• 
• Private

   

• Lease
• Public



• Private

  

• Wholesale
• Public

 

• Private

   

• Unsecured Debt
• Term

    

• CP



• 
• Bank Loans
• 

 

Ford Credit Global Funding Strategy

Ford Credit Is A Global Leader In The Capital Markets, Which Has Allowed It To Develop A Diversified Funding Structure

Funding Platforms* Global Funding Mix**

50% 35% 4% 11% Securitization Unsecured Debt Other Equity

** Percent of managed receivables as of December 31, 2017 * Includes most markets

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Public Term Funding Plan* (Bils)

(As of February 8, 2018)

* Numbers may not sum due to rounding; see Appendix for definitions

2015 2016 2017 Actual Actual Actual Unsecured -- Currency of issuance (USD Equivalent) USD 11 $ 9 $ 10 $ $ 10 - 12 CAD 1 1 2 1 - 2 EUR / GBP 4 3 3 2 - 3 Other 1 1 1 1 Total unsecured 17 $ 14 $ 16 $ $ 14 - 18 Securitizations 13 $ 13 $ 15 $ $ 13 - 15 Total public 30 $ 28 $ 32 $ $ 27 - 33 Forecast 2018

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$24 $27 $30 $25+ YE15 YE16 YE17 Target 10.2 9.9 8.7 9.5 9.2 8.0 YE15 YE16 YE17 Target Managed leverage at low end of target range reflecting favorable

• ne-time tax adjustment

Liquidity remains strong and above target

Balance Sheet Metrics

Leverage (to 1 )* Liquidity Available For Use (Bils) 8 - 9

* See Appendix for reconciliation to GAAP

Managed Financial Statement

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Ford Investor Relations Contacts: Fixed Income Investors: Karen Rocoff Justin Fischer 313-621-0965 313-390-4189 krocoff@ford.com jfisch22@ford.com Information on Ford:

• www.shareholder.ford.com
• 10-K Annual Reports
• 10-Q Quarterly Reports
• 8-K Current Reports

Information on Ford Motor Credit Company:

• www.fordcredit.com/investor-center
• 10-K Annual Reports
• 10-Q Quarterly Reports
• 8-K Current Reports

Further Information

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Cautionary Note on Forward-Looking Statements

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:

• Ford’s long-term competitiveness depends on the successful execution of fitness actions;
• Industry sales volume, particularly in the United States, Europe, or China, could decline if there is a financial crisis, recession, or significant geopolitical event;
• Ford’s new and existing products and mobility services are subject to market acceptance;
• Ford’s results are dependent on sales of larger, more profitable vehicles, particularly in the United States;
• Ford may face increased price competition resulting from industry excess capacity, currency fluctuations, or other factors;
• Fluctuations in commodity prices, foreign currency exchange rates, and interest rates can have a significant effect on results;
• With a global footprint, Ford’s results could be adversely affected by economic, geopolitical, protectionist trade policies, or other events;
• Ford’s production, as well as Ford’s suppliers’ production, could be disrupted by labor disputes, natural or man-made disasters, financial distress, production difficulties, or other factors;
• Ford’s ability to maintain a competitive cost structure could be affected by labor or other constraints;
• Pension and other postretirement liabilities could adversely affect Ford’s liquidity and financial condition;
• Economic and demographic experience for pension and other postretirement benefit plans (e.g., discount rates or investment returns) could be worse than Ford has assumed;
• Ford’s vehicles could be affected by defects that result in delays in new model launches, recall campaigns, or increased warranty costs;
• Safety, emissions, fuel economy, and other regulations affecting Ford may become more stringent;
• Ford could experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, perceived environmental impacts, or otherwise;
• Ford’s receipt of government incentives could be subject to reduction, termination, or clawback;
• Operational systems, security systems, and vehicles could be affected by cyber incidents;
• Ford Credit’s access to debt, securitization, or derivative markets around the world at competitive rates or in sufficient amounts could be affected by credit rating downgrades, market volatility, market disruption,

regulatory requirements, or other factors;

• Ford Credit could experience higher-than-expected credit losses, lower-than-anticipated residual values, or higher-than-expected return volumes for leased vehicles;
• Ford Credit could face increased competition from banks, financial institutions, or other third parties seeking to increase their share of financing Ford vehicles; and
• Ford Credit could be subject to new or increased credit regulations, consumer or data protection regulations, or other regulations.

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, 2017, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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Appendix

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$380 $359 $422 $548 $668 0.37% 0.32% 0.33% 0.40% 0.44% 2013 2014 2015 2016 2017 $176 $209 $271 $415 $481 0.18% 0.19% 0.23% 0.31% 0.34% 2013 2014 2015 2016 2017

100 200 300 400 500 600 700

Worldwide credit loss metrics remain strong Credit loss reserve based on historical losses, portfolio quality and receivables level YoY reserve growth reflects credit loss trends and growth in receivables

Ford Credit - Worldwide Credit Loss Metrics

Charge-Offs (Mils) and LTR Ratio (Pct) Credit Loss Reserve (Mils) and Reserve as a Pct of EOP Managed Receivables (Pct)

Reserve as a Pct of EOP Managed Receivables Credit Loss Reserve LTR Ratio Charge-offs

FC FC43 43

Ford Credit - Liquidity Sources* (Bils)

* See Appendix for definitions

2015 2016 2017 Dec 31 Dec 31 Dec 31 Liquidity Sources Cash 11.2 $ 10.8 $ 11.8 $ Committed ABS facilities 33.2 34.6 33.4 Other unsecured credit facilities 2.3 2.5 3.3 Ford corporate credit facility allocation 3.0 3.0 3.0 Total liquidity sources 49.7 $ 50.9 $ 51.5 $ Utilization of Liquidity Securitization cash (4.3) $ (3.4) $ (3.8) $ Committed ABS facilities (20.6) (19.9) (17.2) Other unsecured credit facilities (0.8) (0.7) (1.1) Ford corporate credit facility allocation

• Total utilization of liquidity

(25.7) $ (24.0) $ (22.1) $ Gross liquidity 24.0 $ 26.9 $ 29.4 $ Adjustments (0.5) 0.1 0.1 Net liquidity available for use 23.5 $ 27.0 $ 29.5 $

FC FC44 44

Ford Credit Americas Financing Shares And Contract Placement Volume

2013 2014 2015 2016 2017 Financing Shares (%) Retail Installment and Lease Share of Ford Retail Sales (excl. Fleet) United States 56 % 63 % 65 % 56 % 55 Canada 65 67 73 75 77 Wholesale Share United States 77 % 77 % 76 % 76 % 76 Canada 65 64 64 61 61 Contract Placement Volume - New and Used Retail / Lease (000) United States 1,122 1,231 1,342 1,159 1,119 Canada 140 149 160 181 184 Mexico 4 25 26 47 40 Total Americas Segment 1,266 1,405 1,528 1,387 1,343

FC FC45 45

Europe Financing Shares And Contract Placement Volume

2013 2014 2015 2016 2017 Financing Shares (incl. Fleet) (%) Retail Installment and Lease Share of Total Ford Sales U.K. 38 % 40 % 40 % 38 % 35 Germany 45 48 48 47 48 Total Europe Segment 34 36 37 37 37 Wholesale Share U.K. 100 % 100 % 100 % 100 % 100 Germany 92 92 93 93 94 Total Europe Segment 98 98 98 98 98 Contract Placement Volume - New and Used Retail / Lease (000) U.K. 171 195 207 201 174 Germany 127 135 140 149 155 All Other 106 130 158 177 212 Total Europe Segment 404 460 505 527 541

FC FC46 46

Asia Pacific Financing Shares And Contract Placement Volume

2013 2014 2015 2016 2017 Financing Shares (incl. Fleet) (%) Retail Installment Share of Total Ford Sales China 13 % 13 % 12 % 19 % 28 % India

• 1

5 10 Wholesale Share China 59 % 62 % 56 % 58 % 57 % India

• 14

29 36 Contract Placement Volume - New and Used Retail (000) China 92 109 108 192 256 India

• 5

9 Total Asia Pacific Segment 92 109 108 197 265

FC FC47 47

Automotive Segment Cash Flow

Positive 4Q operating cash flow driven by Automotive profit, favorable working capital and timing / other changes FY capital spending at $7.0B FY funded pension contributions

• f $1.4B

FY shareholder distributions

• f $2.7B

(Bils) 4Q 2017 FY 2017 Cash at end of period 26.5 $ 26.5 $ Cash at beginning of period 26.1 27.5 Change in cash 0.4 $ (1.0) $ Automotive segment pre-tax profits 1.4 $ 7.3 $ Capital spending (2.1) (7.0) Depreciation and tooling amortization 1.3 5.0 Changes in working capital 0.8

• All other and timing differences

0.9 (1.4) Automotive operating cash flow 2.3 $ 3.9 $ Separation payments (0.2) (0.3) Transactions with other segments (0.1) 0.2 Other, including acquisitions and divestitures (0.1) (0.3) Cash flow before other actions 1.9 $ 3.5 $ Changes in debt (0.2) (0.4) Funded pension contributions (0.7) (1.4) Shareholder distributions (0.6) (2.7) Change in cash 0.4 $ (1.0) $

FC FC48 48

Auto cash and liquidity balances strong Ford Credit well capitalized with strong liquidity. Managed leverage at low end of target range due to U.S. tax reform effects Global funded pension plans now effectively fully funded

Balance Sheet Summary

(Bils) 2016 2017 Dec 31 Dec 31 Automotive Segment Cash, cash equivalents and marketable securities 27.5 $ 26.5 $ Available credit lines* 10.8 10.9 Total liquidity 38.3 $ 37.4 $ Debt 15.9 $ 15.9 $ Cash net of debt 11.6 10.6 Ford Credit Managed receivables** 137 $ 151 $ Debt 126 138 Liquidity 27 30 Managed leverage** (to 1) 9.2 8.0 Total Company Period End Balance Sheet Underfunded Status U.S. pension 3.8 $ 2.2 $ Non-U.S. pension 5.1 4.4 Total global pension 8.9 $ 6.6 $ Total unfunded OPEB 5.9 $ 6.2 $

* Total available committed Automotive credit lines (including local lines available to foreign affiliates) ** See Appendix for detail, reconciliation to GAAP and definitions

FC FC49 49

Total shareholder distributions of $18.4B 2012 - 2018 First quarter regular dividend of 15¢ per share and a supplemental dividend of 13¢ per share 2018 planned distributions of about $3.1B

Shareholder Distributions (Bils)

$1.7 $2.4 $2.4 $2.4 Average 2012 - 2015 2012 - 2018 $2.7 $1.0 2016 $0.6 $2.3

Supplemental Dividend Anti-Dilutive Share Repurchases Regular Dividends

2017 $1.7 $2.9 $13.8 $18.4 $3.5 $3.1 2018

FC FC50 50

Ford Credit - Total Net Receivables Reconciliation To Managed Receivables* (Bils)

2015 2016 2017 Dec 31 Dec 31 Dec 31 Americas Segment Consumer financing 47.3 $ 51.2 $ 55.1 $ Non-Consumer financing 27.2 28.9 29.8 Net investment In operating leases 24.9 26.9 26.4 Total Americas Segment 99.4 $ 107.0 $ 111.3 $ Europe Segment Consumer financing 10.3 $ 10.8 $ 15.0 $ Non-Consumer financing 8.2 7.4 9.2 Net investment In operating leases 0.2 0.3 0.3 Total Europe Segment 18.7 $ 18.5 $ 24.5 $ Asia Pacific Segment Consumer financing 2.0 $ 2.9 $ 4.5 $ Non-Consumer financing 1.8 1.8 2.4 Net investment In operating leases

• Total Asia Pacific Segment

3.8 $ 4.7 $ 6.9 $ Total net receivables 121.9 $ 130.2 $ 142.7 $ Managed Receivables Consumer financing 59.6 $ 64.9 $ 74.6 $ Non-Consumer financing 37.2 38.1 41.4 Finance receivables, net (GAAP) 96.8 $ 103.0 $ 116.0 $ Net investment In operating leases (GAAP) 25.1 27.2 26.7 Total net receivables 121.9 $ 130.2 $ 142.7 $ Unearned interest supplements and residual support 4.5 5.3 6.1 Allowance for credit losses 0.4 0.5 0.7 Other, primarily accumulated supplemental depreciation 0.4 0.9 1.0 Total managed receivables (Non-GAAP) 127.2 $ 136.9 $ 150.5 $ * See Appendix for definitions

FC FC51 51

Ford Credit Financial Statement Leverage Reconciliation To Managed Leverage*(Bils)

2015 2016 2017 Dec 31 Dec 31 Dec 31 Leverage Calculation Total debt 119.6 $ 126.5 $ 137.8 $ Adjustments for cash (11.2) (10.8) (11.8) Adjustments for derivative accounting (0.5) (0.3)

• Total adjusted debt

107.9 $ 115.4 $ 126.0 $ Equity 11.7 $ 12.8 $ 15.9 $ Adjustments for derivative accounting (0.3) (0.3) (0.1) Total adjusted equity 11.4 $ 12.5 $ 15.8 $ Financial statement leverage (to 1) (GAAP) 10.2 9.9 8.7 Managed leverage (to 1) (Non-GAAP) 9.5 9.2 8.0

* See Appendix for definitions

FC FC52 52

Total Company Net Income Reconciliation To Adjusted Pre-Tax Profit

(Mils) 2016 2017 2016 2017 Net income / (Loss) attributable to Ford (GAAP) (783) $ 2,409 $ 4,596 $ 7,602 $ Income / (Loss) attributable to non-controlling interests 2 4 11 26 Net income / (Loss) (781) $ 2,413 $ 4,607 $ 7,628 $ Less: (Provision for) / Benefit from income taxes 336 524 (2,189) (520) Income / (Loss) before income taxes (1,117) $ 1,889 $ 6,796 $ 8,148 $ Less: Special items pre-tax (3,249) 152 (3,579) (289) Adjusted pre-tax profit (Non-GAAP) 2,132 $ 1,737 $ 10,375 $ 8,437 $ 4Q FY

FC FC53 53

Total Company Special Items

* Includes related tax effect on special items and tax special items

(Mils) 2016 2017 2016 2017 Pension and OPEB gain / (loss) Year end net pension and OPEB remeasurement loss (2,985) $ (162) $ (2,985) $ (162) $ Other pension remeasurement loss

• (11)
• Pension curtailment gain
• 354
• 354

Separation-related actions (11) (38) (304) (297) Other Items San Luis Potosi plant cancellation (199)

• (199)

41 Japan, Indonesia market closure (54)

• (80)
• Next-generation Focus footprint change
• (2)
• (225)

Total pre-tax special items (3,249) $ 152 $ (3,579) $ (289) $ Tax special items 1,248 $ 697 $ 1,121 $ 775 $ Memo: Special items impact on earnings per share* (0.50) $ 0.21 $ (0.61) $ 0.12 $ 4Q FY

FC FC54 54

Non-GAAP Financial Measures That Supplement GAAP Measures

• We use both GAAP and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. The non-

GAAP measures listed below are intended to be considered by users as supplemental information to their equivalent GAAP measures, to aid investors in better understanding our financial results. We believe that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess

• ur period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to measures of financial performance prepared in

accordance with GAAP. These non-GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.

• Company Adjusted Pre-tax Profit (Most Comparable GAAP Measure: Net income attributable to Ford) – The non-GAAP measure is useful to management and investors

because it allows users to evaluate our pre-tax results excluding pre-tax special items. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses that are not reflective of our underlying business results, (ii) significant restructuring actions related to our efforts to match production capacity and cost structure to market demand and changing model mix, and (iii) other items that we do not necessarily consider to be indicative of earnings from ongoing operating activities. When we provide guidance for adjusted pre-tax profit, we do not provide guidance on a net income basis because the GAAP measure will include potentially significant special items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end, including pension and OPEB remeasurement gains and losses.

• Ford Credit Managed Receivables – (Most Comparable GAAP Measure: Net Finance Receivables plus Net Investment in Operating Leases) – Measure of Ford Credit’s Total

net receivables, excluding unearned interest supplements and residual support, allowance for credit losses, and other (primarily accumulated supplemental depreciation). The measure is useful to management and investors as it closely approximates the customer’s outstanding balance on the receivables, which is the basis for earning revenue.

• Ford Credit Managed Leverage (Most Comparable GAAP Measure: Financial Statement Leverage) – Ford Credit’s debt-to-equity ratio adjusted (i) to exclude cash, cash

equivalents, and marketable securities (other than amounts related to insurance activities), and (ii) for derivative accounting. The measure is useful to investors because it reflects the way Ford Credit manages its business. Cash, cash equivalents, and marketable securities are deducted because they generally correspond to excess debt beyond the amount required to support operations and on-balance sheet securitization transactions. Derivative accounting adjustments are made to asset, debt, and equity positions to reflect the impact of interest rate instruments used with Ford Credit’s term-debt issuances and securitization transactions. Ford Credit generally repays its debt

• bligations as they mature, so the interim effects of changes in market interest rates are excluded in the calculation of managed leverage.

FC FC55 55 Automotive Records

• References to Automotive records for operating cash flow, operating margin and business units are since at least 2000

Wholesales and Revenue

• Wholesale unit volumes include all Ford and Lincoln badged units (whether produced by Ford or by an unconsolidated affiliate) that are sold to dealerships, units manufactured by Ford

that are sold to other manufacturers, units distributed by Ford for other manufacturers, and local brand units produced by our China joint venture, Jiangling Motors Corporation, Ltd. (“JMC”), that are sold to dealerships. Vehicles sold to daily rental car companies that are subject to a guaranteed repurchase option (i.e., rental repurchase), as well as other sales of finished vehicles for which the recognition of revenue is deferred (e.g., consignments), also are included in wholesale unit volumes. Revenue from certain vehicles in wholesale unit volumes (specifically, Ford badged vehicles produced and distributed by our unconsolidated affiliates, as well as JMC brand vehicles) are not included in our revenue Automotive Segment Operating Margin

• Automotive segment operating margin is defined as Automotive segment pre-tax results divided by Automotive segment revenue

Industry Volume and Market Share

• Industry volume and market share are based, in part, on estimated vehicle registrations; includes medium and heavy duty trucks

SAAR

• SAAR means seasonally adjusted annual rate

Automotive Cash

• Automotive cash includes cash, cash equivalents, and marketable securities

Market Factors

• Volume and Mix – primarily measures profit variance from changes in wholesale volumes (at prior-year average contribution margin per unit) driven by changes in industry volume,

market share, and dealer stocks, as well as the profit variance resulting from changes in product mix, including mix among vehicle lines and mix of trim levels and options within a vehicle line

• Net Pricing – primarily measures profit variance driven by changes in wholesale prices to dealers and marketing incentive programs such as rebate programs, low-rate financing offers,

special lease offers and stock accrual adjustments on dealer inventory

Ford Motor Company

Definitions And Calculations

FC FC56 56

Adjustments (as shown on the Liquidity Sources chart)

• Include certain adjustments for asset-backed capacity in excess of eligible receivables and cash related to the Ford Credit Revolving Extended Variable-utilization program (“FordREV”), which can

be accessed through future sales of receivables Cash (as shown on the Funding Structure, Liquidity Sources and Leverage charts)

• Cash and cash equivalents and Marketable securities reported on Ford Credit’s balance sheet, excluding amounts related to insurance activities

Committed Asset-Backed Security (“ABS”) Facilities (as shown on the Liquidity Sources chart)

• Committed ABS facilities are subject to availability of sufficient assets, ability to obtain derivatives to manage interest rate risk, and exclude FCE Bank plc (“FCE”) access to the Bank of England’s

Discount Window Facility Securitizations (as shown on the Public Term Funding Plan chart)

• Public securitization transactions, Rule 144A offerings sponsored by Ford Motor Credit, and widely distributed offerings by Ford Credit Canada

Securitization Cash (as shown on the Liquidity Sources chart)

• Securitization cash is cash held for the benefit of the securitization investors (for example, a reserve fund)

Term Asset-Backed Securities (as shown on the Funding Structure chart)

• Obligations issued in securitization transactions that are payable only out of collections on the underlying securitized assets and related enhancements

Total Debt (as shown on the Leverage chart)

• Debt on Ford Credit’s balance sheet. Includes debt issued in securitizations and payable only out of collections on the underlying securitized assets and related enhancements. Ford Credit holds

the right to receive the excess cash flows not needed to pay the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions Tota tal N Net t Rece ceiv ivabl bles (as shown on the Total Net Receivables Reconciliation To Managed Receivables chart)

• Includes finance receivables (retail and wholesale) sold for legal purposes and net investment in operating leases included in securitization transactions that do not satisfy the requirements for

accounting sale treatment. These receivables and operating leases are reported on Ford Credit’s balance sheet and are available only for payment of the debt issued by, and other obligations of, the securitization entities that are parties to those securitization transactions; they are not available to pay the other obligations of Ford Credit or the claims of Ford Credit’s other creditors Unallocated Other (as shown on the Pre-Tax Results by Segment chart)

• Items excluded in assessing segment performance because they are managed at the corporate level, including market valuation adjustments to derivatives and exchange-rate fluctuations on

foreign currency-denominated transactions

Ford Credit

Definitions And Calculations