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

Fixed Income Investor Presentation First Quarter 2018 FC FC1

Agenda • Strategy Highlights FC3 • Corporate Overview FC12 • Ford Credit FC24 • Appendix FC41 FC FC2

Strategy Highlights FC FC3

Smart Vehicles In A Smart World 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 FC FC4

Partnerships strengthen our competitive position Markets Technologies Capabilities Mobility FC FC5

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 FC FC6

EV strategy plays to our strengths, builds on our brands, leverages scale and innovates across the value chain Mach I – Performance BEV Transit Plug-In Hybrid F-150 Hybrid Ionity Mustang Hybrid Fast Charging Infrastructure FC FC7

We will spend over $11 billion on electrification by 2022 Electrification Investment (Bils) U.S. >$11 Positioned for EV leadership • HEV offered on all mainstream • models $6.7 Europe 50% $4.5 Strong BEV portfolio • Mild hybrids • China Original Revised 2015 - 2022 BEVs and hybrids from our CAF and • Investment Investment JMC JVs 2015 - 2020 Value BEVs from our Zotye JV • FC8 FC

Our approach to AVs is focused on combining scalable, human-centered foundational technology with innovative, robust business models  Strong software talent AV Software  Strategic investments in enabling technologies (e.g., LiDAR)  Scale manufacturing Vehicle Platform  Proven track record of commercial vehicle leadership  Diverse partner network to maximize revenue per mile AV Business  Commercial durability to maximize utilization FC FC9

Automotive Segment Capital Strategy And Balance Sheet Priorities (Bils) Debt and Pension Funding Deficit Cash and Liquidity Debt Committed Credit Facilities Pension Cash $37.4 $(14.3) $30.0 $(15.9) $10.9 $(6.6) $10.0 $(18.7) $26.5 $(22.5) $20.0 $(33.0) 2012 2017 4Q 2017 Target Fixed Income - U.S. Plans (Pct) 55% 76% Pension Plan Sensitivity (Bils)* $5.7 $2.1 Global funded pension plans now effectively fully funded Shareholder Distribution Strategy Minimum cash target established to protect for major downturn and Regular Dividends Supplemental Dividend Anti-Dilutive Share Repurchases liquidity for additional exogenous shock $3.5 $3.1 $2.7 Sustainable and flexible shareholder distributions strategy $1.0 $0.5 $0.2 2018 planned distributions of about $3.1B $2.4 $2.4 $2.4 2016 2017 2018 FC FC10 10 * Net funded status change for + / - 100 bps average change in rates

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 FC FC11 11 * On January 30, 2018, Moody’s changed Ford and Ford Credit’s ratings outlook to “Negative” from “Stable”

Corporate Overview FC FC12 12

Product And Other Highlights F-Series marks 41 years as America’s Achieved eighth consecutive year as Commercial vehicle leader in Europe for best-selling pickup. F-150 diesel added best-selling brand in the U.S. third straight year; began production of to lineup the new EcoSport SUV in Romania Announced the introduction of more than Increased investment in Flat Rock for 100 percent of Ford’s new U.S. vehicles will 50 new vehicles in China by 2025 purpose-built autonomous vehicle; be built with connectivity by 2019 and accelerated and increased BEV investment 90 percent globally by 2020 FC13 FC 13

Company FY 2017 Adjusted Pre-Tax Results* (Mils) $7,259 $8,437 $7,511 FY Automotive segment PBT driven by NA Auto operations outside NA a loss $2,248 in total and down YoY, driven largely by expected Brexit effects in $561 $234 Europe Strong Financial Services profit $(263) $(784) $(1,070) All Other primarily net interest Automotive Segment expense plus FSM LLC Financial Asia Services North South Middle East Total America America Europe & Africa Pacific Segment All Other B / (W) FY 2016 $(1,938) $(1,490) $325 $(971) $39 $(66) $428 $(203) FC FC14 14 * See Appendix for detail, reconciliation to GAAP and definitions

Automotive Segment FY 2017 Key Metrics Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) FY wholesales about flat; revenue up 3% due to favorable mix and 6.7% $9,422 7.2% 6,651 7.0% 6,607 higher volume from consolidated $145.7 $141.5 operations and net pricing $7,259 5.0% Global industry up 2% due to AP, Europe and SA Global market share down due to AP, Europe and MEA; NA flat; 1% 3% 0.2 ppts 1.7 ppts 23% SA improved Auto PBT and operating margin 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 lower than last year FC15 FC 15

Automotive Segment – North America FY 2017 Key Metrics Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) $93.5 13.9% $92.6 13.9% $9,001 9.7% 3,019 2,967 $7,511 8.0% 2% 1 % -- ppts 1.7 ppts 17% 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 FC16 FC 16

Automotive Segment – South America FY 2017 Key Metrics Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) $5.8 373 8.9% 8.8% 325 $4.8 (13.4)% $(784) $(1,109) (23.0)% 15% 21% 0.1 ppts 9.6 ppts 29% 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 FC17 FC 17

Automotive Segment – Europe FY 2017 Key Metrics * Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) 7.7% 4.2% $1,205 7.5% $29.7 $28.5 1,582 1,539 0.8% $234 3% 4% 0.2 ppts 3.4 ppts 81% 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 * 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 FC FC18 18 does not include these sales.

Automotive Segment – Asia Pacific FY 2017 Key Metrics * Wholesales Revenue Market Share Operating Margin Pre-Tax Results (000) (Bils) (Pct) (Pct) (Mils) $14.1 1,607 5.2% 1,566 3.7% 3.4% $627 $12.0 $561 4.0% 17% 3% 0.3 ppts 1.2 ppts 11% 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 * Wholesales include Ford brand and Jiangling Motors Corporation (JMC) brand vehicles produced and sold in China by our unconsolidated affiliates | B6 FC | FC19 B6 19 (about 1,217,000 units in 2016 and 1,132,000 units in 2017). Revenue does not include these sales

Automotive Segment FY 2017 Pre-Tax Results (Mils) Pricing $ 2,885 Manufacturing, Incl. Vol. Related $(231) Incentives / Other (2,668) Engineering (451) FY Auto PBT $2.2B lower than 2016 Other (28) due to higher commodities and adverse exchange; all other factors about offset Industry $(146) Higher commodities driven by Share 45 metals, mainly steel Stocks 95 Commodities $(1,213) Mix 952 Other (5) Other (529) 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 Volume / Net Contribution Structural FY 2016 Mix Pricing Cost Cost Exchange Other FY 2017 SA and higher net pricing except in AP (China) Market Factors Total Cost $634 $(1,928) FC20 FC 20

Automotive Segment – North America A Disciplined Approach To The U.S. Business YoY Average Transaction Price (USD)* YoY Incentive Change as Pct. of Vehicle Price* Industry Average Industry Average Ford Ford $1,465 $1,433 1.0 Better $1,310 $1,127 0.8 0.8 $1,025 $998 0.7 0.7 $869 0.6 $766 $717 $573 0.3 0.2 0.2 - Oct Nov Dec 4Q FY Oct Nov Dec 4Q FY U.S. Gross Days Supply Industry Average 4Q Ford ATPs up, about the same as the industry average; FY ATPs Ford rose more than 2X the industry due to F-Series 79 78 70 70 68 60 4Q Ford incentives, as a percent of vehicle price, up more than industry average, but Ford incentives in FY increased less than a third of industry’s average Ford U.S. stocks at healthy levels and days supply Oct Nov Dec FC21 FC 21 * Source: J.D. Power PIN ISR data – cash / APR / lease (blended) transaction; industry data includes Ford