4Q 2016 AND FULL YEAR EARNINGS REVIEW AND 2017 OUTLOOK January 26, 2017 (PRELIMINARY RESULTS) 1
Business Review Appendix Appendix (continued) Financial Headlines 3 Reconciliations to GAAP Full Year Financial Review Creating Value 4 Adjusted Pre-Tax Profit A1 North America A15 Other Highlights 5 Adjusted Effective Tax Rate A2 South America A16 Special Items A3 Europe A17 Financial Review Adjusted Earnings Per Share A4 Asia Pacific A18 Key Financial Summary 7 Managed Receivables A5 Financial Services – Ford Credit A19 2016 Full Year 8 - 10 Managed Leverage A6 Other 4Q / FY Non-GAAP Financial Measures A20 Total Company 11 Supplemental Data Definitions and Calculations A21 Automotive 12 - 13 Automotive Debt A7 North America 14 - 15 China Unconsolidated Affiliates A8 South America 16 - 17 Return on Invested Capital A9 Europe 18 - 19 Employment Data A10 Middle East & Africa 20 Asia Pacific 21 - 22 Volume Related Financial Services – Ford Credit 23 - 25 Industry A11 Cash Flow, Pension and Balance Sheet 26 - 28 Market Share A12 Planning Assumptions and Guidance 29 - 32 Production Volumes A13 Key Takeaways 33 Dealer Stocks A14 Vision and Strategy 34
FINANCIAL HEADLINES EPS Automotive Total Company Automotive Segment Total Company Adjusted Pre-Tax Adjusted Total Company Global Segment Operating Cash Net Income Results* EPS* Revenue Market Share Operating Margin Flow $4.6B $10.4B $1.76 $151.8B 7.3% 6.7% $6.4B FY 2016 B / W $2.8B $0.4B $0.17 $2.2B 0.1 ppts 0.1 ppts $0.9B FY 2015 $(0.8)B $2.1B $0.30 $38.7B 7.1% 5.7% $1.5B 4Q 2016 B / W $2.7B $0.5B $0.28 $1.6B 0.1 ppts 0.4 ppts $0.6B 4Q 2015 * Excludes special items; see Appendix for detail, reconciliation to GAAP, and definitions 2016 A Strong Year – 2 nd Best Company Adjusted PBT, Auto Operating Margin And Auto Operating Cash Flow; 4Q And Full Year Results In Line With Expectations 3
CREATING VALUE – PROGRESS IN 2016 GROWTH RISK RETURNS REWARDS FY wholesale volume Strong NA results 2nd best FY adjusted $3.5 billion distributed and Auto revenue sustained, while PBT for Company and to shareholders, about flat YoY operations outside NA AP; record profit in including 1st profitable in total and Europe supplemental dividend Greater-than-industry improved YoY average FY increase in 2nd best Auto operating U.S. ATPs At year-end, global margin; ROIC >cost of funded pension plans capital 11 new products nearly funded as our launched including NA operating margin of de-risking strategy all-new Super Duty, 9.7% and double-digit worked effectively Focus RS and Lincoln China JV net income Continental Upgraded by S&P, margins Moody’s, Fitch and Global Lincoln sales up 2nd best Auto operating DBRS 24% YoY in 2016 cash flow 4
OTHER HIGHLIGHTS Ford best-se selling g brand d in U.S. . for F-Series best-se selling truck in U.S. Transi sit, , best-se selling cargo van in the seventh straight year 40 years in a row row world; wo ; Ford, best-se selli lling com omme merci rcial vehicle brand in Euro rope Chariot expanded ded to Au Austin; ; City y Ford awar warded the most U.S. . patents ts Launched next genera ratio tion Solut ution ons s team to partner tner with h of any automotive OEM in 2016 autonom omou ous s deve velop opment ve vehicle ; global al citie ies s to help fight congestion expanded test fleet to 30 5
FINANCIAL REVIEW
KEY FINANCIAL SUMMARY 4Q FY Strong quarter and B / (W) B / (W) 2016 2015 2016 2015 another strong year – Wholesales (000) 1,707 (68) 6,651 16 Revenue (Bils) $ 38.7 $ (1.6) 151.8 2.2 2 nd best FY Company Results (Mils) adjusted PBT Automotive Segment $ 2,042 $ (280) $ 9,422 $ (146) Financial Services Segment 384 (158) 1,820 (208) All Other (294) (40) (867) (71) Wholesale volume and Total Company adjusted pre-tax results $ 2,132 $ (478) $ 10,375 $ (425) Special items pre-tax (3,249) (2,535) (3,579) (3,031) revenue down in 4Q but Income / (Loss) before income taxes $ (1,117) $ (3,013) $ 6,796 $ (3,456) about flat in FY (Provision for) / Benefit from income taxes 336 368 (2,189) 692 Net income / (loss) $ (781) $ (2,645) $ 4,607 $ (2,764) Less: Income / (Loss) attributable to 4Q net income loss and non-controlling interests 2 6 11 13 Net income / (loss) attributable to Ford $ (783) $ (2,651) $ 4,596 $ (2,777) lower FY net income due to Earnings per share (Diluted) $ (0.20) $ (0.67) $ 1.15 $ (0.69) remeasurement loss on Adjusted earnings per share (Diluted) 0.30 (0.28) 1.76 (0.17) pension and OPEB plans Automotive Segment (Bils) Operating cash flow $ 1.5 $ (0.6) $ 6.4 $ (0.9) Operating cash flow and Cash $ 27.5 $ 3.9 $ 27.5 $ 3.9 Debt (15.9) (3.1) (15.9) (3.1) cash balance strong Net cash $ 11.6 $ 0.8 $ 11.6 $ 0.8 7
TOTAL COMPANY FY 2016 ADJUSTED PRE-TAX RESULTS* (MILS) $9,422 $10,375 2 nd best Auto PBT $9,001 Auto operations outside NA profitable in total and improved YoY $1,820 Record Europe FY PBT; $1,205 $627 2 nd best AP PBT $(302) $(867) Financial Services solidly $(1,109) profitable Automotive Segment Financial Asia Services North South Middle East Total America America Europe & Africa Pacific Segment All Other All Other primarily net interest expense B / (W) FY 2015 $(425) $(344) $(277) $946 $(333) $(138) $(208) $(71) 8 * Excludes special items; see Appendix for detail, reconciliation to GAAP, and definitions
AUTOMOTIVE SEGMENT FY 2016 KEY METRICS FY Auto PBT and operating Wholesales Revenue Market Share Operating Margin Pre-Tax Results margin close to last year’s (000) (Bils) (Pct) (Pct) (Mils) record results 7.4% $9,568 7.3% $9,422 6,651 $141.5 6,635 $140.6 6.8% 6.7% Wholesales and revenue about unchanged Global industry up 4% due to AP, Europe and NA -- % 1% 0.1 ppts 0.1 ppts 2% Global market share lower 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 due to NA and SA; MEA and AP improved 9
AUTOMOTIVE SEGMENT FY 2016 PRE-TAX RESULTS (MILS) Lower Auto PBT driven by $9,568 $9,422 Material Excl. Commodities $(305) Industry $ 517 Ratification Bonus $452 Commodities 919 warranty costs, mainly Share (32) Parts & Service 236 Warranty (880) Stocks (1,244) Other 389 Other 463 Mix / Other 1,411 recalls Manuf. Incl. Vol-Rel $ (97) Engineering (631) Spending Related (602) Market factors favorable Other (125) due to strong mix in all $1,077 $652 $197 regions except SA $(57) $(560) $(1,455) Unfavorable dealer stocks $(146) due to stock reductions in Market Factors Total Cost 2016 versus increases in Volume / Net Contribution Structural FY 2015 FY 2016 Mix Pricing Cost Cost Exchange Other 2015 in NA, Europe and AP 10
TOTAL COMPANY 4Q 2016 ADJUSTED PRE-TAX RESULTS* (MILS) $2,042 $2,132 $1,956 Strong Auto PBT in 4Q driven by NA, AP and Europe Financial Services PBT $384 $284 $166 solid notwithstanding declining auction values $(71) $(293) $(294) All Other primarily net Automotive Segment Financial Asia Services North South Middle East interest expense Total America America Europe & Africa Pacific Segment All Other B / (W) FY 2015 $(478) $(73) $2 $35 $(84) $(160) $(158) $(40) 11 * Excludes special items; see Appendix for detail, reconciliation to GAAP, and definitions
AUTOMOTIVE SEGMENT 4Q 2016 KEY METRICS Strong 4Q consistent with Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) expectations $37.9 1,775 $2,322 7.2% 7.1% 1,707 $36.0 Wholesales down 4%; 6.1% $2,042 5.7% revenue down 5% Global SAAR up 2% with gains in AP, Europe and NA 4% 5% 0.1 ppts 0.4 ppts 12% Global market share down slightly due to NA and 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 Europe FY: 6,635 6,651 $140.6 $141.5 7.4% 7.3% 6.8% 6.7% $9,568 $9,422 -- % 1 % 0.1 ppts 0.1 ppts 2% 12
AUTOMOTIVE SEGMENT 4Q 2016 PRE-TAX RESULTS (MILS) Lower PBT driven by stock Industry $ 126 Material Excl. Commodities $(476) Ratification Bonus $452 Share (97) Commodities (86) Other 175 Stocks (1,021) changes and higher costs Warranty / Other 59 Mix / Other 353 $2,322 $2,042 Pricing $ 888 Manuf. Incl. Vol-Rel $ 139 Dealer stock reductions in Incentives / Other (424) Engineering (187) Spending Related (135) NA this year compared to Other 25 $627 $464 2015 drove unfavorable $(71) market factors $(158) $(503) $(639) $(280) Improvement in Other mainly non-repeat of last Market Factors Total Cost Volume / Net Contribution Structural year’s UAW ratification 4Q 2015 4Q 2016 Mix Pricing Cost Cost Exchange Other bonus 13
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