Form 8-K FORD MOTOR CO For: Jan 23

January 23, 2019 4:38 PM



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549


FORM 8-K


CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934


Date of Report: January 23, 2019
(Date of earliest event reported)


FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)


Delaware
(State or other jurisdiction of incorporation)

1-3950
38-0549190
(Commission File Number)
(IRS Employer Identification No.)
 
 
One American Road, Dearborn, Michigan
48126
(Address of principal executive offices)
(Zip Code)


Registrant’s telephone number, including area code 313-322-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


[ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o







Item 2.02. Results of Operations and Financial Condition.

Ford Motor Company (“Ford” or “Company”) hereby incorporates by reference its news release dated January 23, 2019, which is filed as Exhibit 99.1 hereto.

Beginning at 5:30 p.m. on January 23, 2019, Ford President and Chief Executive Officer Jim Hackett, Chief Financial Officer Bob Shanks, and members of Ford’s senior management will host a conference call to discuss Ford’s preliminary fourth quarter and full year 2018 financial results. Investors may access the presentation by dialing 1-877-870-8664 (or 1-970-297-2423 from outside the United States). The passcode for the call is a verbal response of “Ford Earnings.”

The presentation and supporting materials are available at www.shareholder.ford.com. Representatives of the investment community and the news media will have the opportunity to ask questions on the call.

Investors also may access replays of the presentation beginning after 11:00 p.m. the day of the event through January 30, 2019 by dialing 1-855-859-2056 (or 1-404-537-3406 from outside the United States). The Conference ID for replays is 6299017.

All times referenced above are in Eastern Standard Time.

Item 7.01. Regulation FD Disclosure.

Ford’s presentation materials dated January 23, 2019 are furnished as Exhibit 99.2 to this Report and incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

EXHIBITS*

Designation
Description
Method of Filing
 
 
 
News release dated January 23, 2019
Filed with this Report
 
 
 
Presentation materials dated January 23, 2019
Furnished with this Report

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
FORD MOTOR COMPANY
 
 
(Registrant)
 
 
 
Date: January 23, 2019
By:
/s/ Corey M. MacGillivray
 
 
Corey M. MacGillivray
 
 
Assistant Secretary

*
 
Any reference in the attached exhibit(s) to Ford’s corporate website(s) and/or other social media sites or platforms, and the contents thereof, is provided for convenience only; such websites or platforms and the contents thereof are not incorporated by reference into this Report nor deemed filed with the Securities and Exchange Commission.



Ford Motor Company Reports Fourth Quarter and Full Year 2018 Results • Revenue up in the fourth quarter and full year; net income, adjusted EBIT and margin lower • North America EBIT margin of 7.6% in the quarter and 7.9% in the full year • Continued strong results at Ford Credit, with best full-year earnings before taxes in eight years • Balance sheet remains strong with cash and liquidity balances above targets DEARBORN, Mich., Jan. 23, 2019 – Ford Motor Company today released its preliminary fourth-quarter and full-year 2018 financial results. Company revenue increased from the prior year in both periods, while net income and company adjusted EBIT were both lower. North America delivered a fourth-quarter EBIT margin of 7.6 percent and a full-year margin of 7.9 percent. Ford Credit had strong results in the quarter and its best full year earnings before taxes in eight years. The company ended the year with cash and liquidity balances that were above its targets of $20 billion and $30 billion, respectively. “We have consistently laid the foundation for the global redesign of our business, clearly investing to sharpen our competitiveness so we can better serve customers and invest for the future,” said Jim Hackett, Ford president and CEO. “Ford enters 2019 with a clear vision, a solid plan, and we are now in execution mode.” 2018 FOURTH QUARTER & FULL YEAR FINANCIAL RESULTS* Fourth-quarter company revenue rose 1 percent, due to improved mix and higher net pricing. Company net loss of $0.1 billion included a negative $0.9 billion non-cash pre-tax mark-to-market adjustment for global pension and OPEB plans. Company adjusted EBIT of $1.5 billion was driven by North America, which posted fourth-quarter EBIT of $2.0 billion and an EBIT margin of 7.6 percent. Ford Credit continued its strong performance with fourth- GAAP quarter EBT of $663 million. Cash Auto operations outside of North America generated an Net Flows EBIT loss of $828 million in the fourth quarter, down $692 Income Net from Op. Revenue EPS Margin million, driven by China and Europe . Income Activities In the full year, net income was $3.7 billion and company adjusted EBIT was $7 billion, driven by North America, with 4Q 2018 $41.8B $(0.1)B $(0.03) (0.3)% $1.4B an EBIT margin of 7.9 percent, and Ford Credit EBT of $2.6 billion, its highest in eight years. B/(W) 4Q 2017 $0.5B $(2.6)B $(0.66) (6.4) ppts $(1.8)B While auto operations reported a lower EBIT than a year ago, driven by China and Europe, all regions continued to FY 2018 $160.3B $3.7B $0.92 2.3% $15.0B focus on improving operational fitness while building on core company strengths. In Europe, Ford posted record SUV B/(W) sales, while Ranger was the region’s best-selling pick up, FY 2017 $3.5B $(4.1)B $(1.01) (2.6) ppts $(3.1)B and Ford once again was the best-selling commercial vehicle brand. In the Asia Pacific region, India and Thailand achieved record full-year sales, and Lincoln set a new annual sales record for the fourth consecutive year in China. NON-GAAP “While 2018 was a challenging year, we put in place key Company Company Adj. Op. building blocks to build a more resilient and competitive Company Adjusted Adj. EBIT Cash Adj. EBIT EPS Margin business model that can thrive no matter the economic Flow environment,” said Bob Shanks, Ford CFO. “We are confident in our plan to transform our business.” 4Q 2018 $1.5B $0.30 3.5% $1.5B Shanks said the company balance sheet remains strong, with $23.1 billion of cash and $34.2 billion of liquidity. B/(W) 4Q 2017 $(0.6)B $(0.09) (1.4) ppts $(0.7)B Shanks said Ford expects to be able to fully fund its business needs and capital plans in 2019, while maintaining cash and liquidity levels at or above its target levels. He FY 2018 $7.0B $1.30 4.4% $2.8B added Ford sees the potential for year-over-year improvement in the company’s key financial metrics as it B/(W) FY 2017 $(2.6)B $(0.48) (1.7) ppts $(1.4)B works to close the gaps versus targets. *See endnote on page 5 All comparisons are year-over-year unless noted otherwise. Ford Motor Company: 4Q / FY January 23, 2019


 
AUTOMOTIVE SEGMENT RESULTS Wholesales Revenue Market Share EBIT EBIT Margin 4Q 2018 1,474K $38.7B 5.9% $1.1B 2.9% B/(W) 4Q 2017 (275)K $0.2B (0.7) ppts $(0.5)B (1.4) ppts FY 2018 5,982K $148.3B 6.3% $5.4B 3.7% B/(W) FY 2017 (625)K $2.6B (0.7) ppts $(2.7)B (1.9) ppts Market EBIT Wholesales Revenue EBIT Share Margin North America ƒ 4Q NA revenue and bottom-line metrics improved YoY; volume-related metrics lower 4Q 2018 738K $25.8B 12.8% $2.0B 7.6% ƒ 4Q EBIT at $2B, up $188M YoY B/(W) (1)K $1.7B (0.8) ppts $0.2B 0.3 ppts ƒ NA and U.S. SAAR down 2% and 1%, respectively 4Q 2017 ƒ Healthy improvement in market factors due to favorable mix and higher net pricing FY 2018 2,920K $96.6B 13.4% $7.6B 7.9% ƒ 2018 profit sharing for eligible hourly full-time UAW- represented employees is approximately $7,600 on a B/(W) FY 2017 (47)K $3.1B (0.5) ppts $(0.5)B (0.7) ppts full-year basis and will be paid on March 14, 2019 South America All 4Q SA metrics down YoY except SAAR ƒ 4Q 2018 89K $1.2B 7.6% $(199)M (16.4)% ƒ SA SAAR up 2% with growth of 17% in Brazil and a reduction of 44% in Argentina; Brazil higher for the 7th B/(W) (18)K $(0.5)B (1.3) ppts $(10)M (5.3) ppts consecutive quarter 4Q 2017 ƒ SA market share down in all major markets, except Peru ƒ Volume decline driven by Argentina with revenue down FY 2018 365K $5.3B 8.3% $(678)M (12.8)% due to weaker currencies B/(W) FY 2017 (8)K $(0.5)B (0.6) ppts $75M 0.1 ppts Europe ƒ All 4Q Europe metrics lower YoY except market 4Q 2018 361K $7.4B 7.3% $(199)M (2.7)% share, which was unchanged Europe SAAR down 8%, including Turkey down B/(W) ƒ 4Q 2017 (55)K $(0.7)B - ppts $(288)M (3.8) ppts 50%, resulting in lower volume and revenue ƒ Highest 4Q commercial vehicle market share since 1994 FY 2018 1,533K $31.3B 7.2% $(398)M (1.3)% Lower EBIT due to higher cost, adverse exchange ƒ B/(W) (49)K $1.6B (0.3) ppts $(765)M (2.5) ppts and lower volume FY 2017 Middle East & Africa 4Q MEA top-line metrics lower YoY; EBIT and EBIT ƒ 4Q 2018 32K $0.7B 3.0% $(49)M (7.0)% margin higher ƒ MEA SAAR up 5%, though down 9% in markets B/(W) (3)K $(0.1)B (1.3) ppts $17M 1.3 ppts where Ford participates 4Q 2017 ƒ Market share lower in most major markets – key driver of lower volume FY 2018 109K $2.7B 3.0% $(7)M (0.3)% ƒ Revenue down because of lower volume B/(W) FY 2017 (10)K $0.1B (0.8) ppts $239M 9.0 ppts Asia Pacific All 4Q AP metrics down YoY driven by China ƒ 4Q 2018 254K $3.6B 2.2% $(381)M (10.7)% ƒ Revenue decline of 5% due to unfavorable exchange and lower volume B/(W) 4Q 2017 (198)K $(0.2)B (1.2) ppts $(411)M (11.5) ppts ƒ AP market share lower due to China performance ƒ Lower volume driven by China JVs FY 2018 1,055K $12.4B 2.5% $(1,102)M (8.9)% B/(W) FY 2017 (511)K $(1.7)B (0.9) ppts $(1,761)M (13.6) ppts 2 Ford Motor Company: 4Q / FY January 23, 2019


 
MOBILITY AND FORD CREDIT SEGMENT RESULTS EBIT Mobility Segment Results ƒ 4Q Mobility EBIT loss due to planned investments in mobility 4Q 2018 $(195)M services and autonomous vehicle business development B/(W) 2017 $(95)M FY 2018 $(674)M B/(W) 2017 $(375)M EBT Ford Credit Segment Results ƒ Strong 4Q and best FY EBT in eight years 4Q 2018 $663M ƒ 4Q improvement reflects favorable lease residual performance and favorable volume and mix B/(W) 2017 $53M FY 2018 $2.6B B/(W) 2017 $0.3B 3 Ford Motor Company: 4Q / FY January 23, 2019


 
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. 4 Ford Motor Company: 4Q / FY January 23, 2019


 
CONFERENCE CALL DETAILS Ford Motor Company [NYSE:F] and Ford Motor Credit Company will release their preliminary 2018 fourth quarter and full year financial results at 4:15 p.m. EST today. Following the release, Jim Hackett, Ford president and chief executive officer, and Bob Shanks, Ford chief financial officer, and members of Ford’s senior management team will host a conference call at 5:30 p.m. EST to discuss the results. The presentation and supporting materials are available at www.shareholder.ford.com . Representatives of the investment community and the news media will have the opportunity to ask questions on the call. Access Information – Wednesday, January 23, 2019 Ford Earnings Call: 5:30 p.m. EST Toll-Free: 1.877.870.8664 International: 1.970.297.2423 Passcode: Ford Earnings Web: www.shareholder.ford.com REPLAY (Available after 11 p.m. EST the day of the event through Jan. 30, 2019) Web: www.shareholder.ford.com Toll-Free: 1.855.859.2056 International: 1.404.537.3406 Conference ID: 6299017 About Ford Motor Company Ford Motor Company is a global company based in Dearborn, Michigan. The company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company and is pursuing leadership positions in electrification, autonomous vehicles and mobility solutions. Ford employs approximately 199,000 people worldwide. For more information regarding Ford, its products and Ford Motor Credit Company, please visit www.corporate.ford.com . * The following applies to the information throughout this release: ƒ The financial results discussed herein are presented on a preliminary basis. Ford and Ford Credit’s Annual Report on Form 10-K for the year ended Dec. 31, 2018, will include audited financial results. ƒ See tables later in this release for the nature and amount of special items, and reconciliations of the non-GAAP financial measures designated as “adjusted” to the most comparable financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). ƒ Wholesale unit sales and production volumes include Ford brand and Jiangling Motors Corporation (“JMC”) brand vehicles produced and sold in China by our unconsolidated affiliates; revenue does not include these sales. See materials supporting the January 23, 2019, conference call at www.shareholder.ford.com for further discussion of wholesale unit volumes. 5 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED INCOME STATEMENT FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts) For the years ended December 31, 2016 2017 2018 Revenues (unaudited) Automotive $ 141,546 $ 145,653 $ 148,294 Ford Credit 10,253 11,1133 12,018 Mobility 1 10 26 Total revenues 151,800 156,776 160,338 Costs and expenses Cost of sales 126,195 131,321 136,269 Selling, administrative, and other expenses 10,972 11,527 11,403 Ford Credit interest, operating, and other expenses 8,847 9,047 9,463 Total costs and expenses 146,014 151,895 157,135 Interest expense on Automotive debt 894 1,133 1,171 Interest expense on Other debt 57 57 57 Other income/(loss), net 169 3,267 2,247 Equity in net income of affiliated companies 1,780 1,201 123 Income before income taxes 6,784 8,159 4,345 Provision for/(Benefit from) income taxes 2,184 402 650 Net income 4,600 7,757 3,695 Less: Income/(Loss) attributable to noncontrolling interests 11 26 18 Net income attributable to Ford Motor Company $ 4,589 $ 7,731 $ 3,677 EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK Basic income $ 1.16 $ 1.94 $ 0.93 Diluted income 1.15 1.93 0.92 6 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED BALANCE SHEET FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, December 31, 2017 2018 ASSETS (unaudited) Cash and cash equivalents $ 18,492 $ 16,718 Marketable securities 20,435 17,233 Ford Credit finance receivables, net 52,210 53,289 Trade and other receivables, less allowances of $412 and $94 10,599 11,195 Inventories 11,176 11,220 Other assets 3,889 3,930 Total current assets 116,801 113,585 Ford Credit finance receivables, net 56,182 56,608 Net investment in operating leases 28,235 29,119 Net property 35,327 36,178 Equity in net assets of affiliated companies 3,085 2,709 Deferred income taxes 10,762 10,412 Other assets 8,104 7,929 Total assets $ 258,496 $ 256,540 LIABILITIES Payables $ 23,282 $ 21,520 Other liabilities and deferred revenue 19,697 20,556 Automotive debt payable within one year 3,356 2,314 Ford Credit debt payable within one year 48,265 51,179 Total current liabilities 94,600 95,569 Other liabilities and deferred revenue 24,711 23,588 Automotive long-term debt 12,575 11,233 Ford Credit long-term debt 89,492 88,887 Other long-term debt 599 600 Deferred income taxes 815 597 Total liabilities 222,792 220,474 Redeemable noncontrolling interest 98 100 EQUITY Common Stock, par value $.01 per share (4,000 million shares issued of 6 billion authorized) 40 40 Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) 1 1 Capital in excess of par value of stock 21,843 22,006 Retained earnings 21,906 22,668 Accumulated other comprehensive income/(loss) (6,959 ) (7,366 ) Treasury stock (1,253 ) (1,417 ) Total equity attributable to Ford Motor Company 35,578 35,932 Equity attributable to noncontrolling interests 28 34 Total equity 35,606 35,966 Total liabilities and equity $ 258,496 $ 256,540 7 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED STATEMENT OF CASH FLOWS FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) For the years ended December 31, 2016 2017 2018 Cash flows from operating activities (unaudited) Net income $ 4,600 $ 7,757 $ 3,695 Depreciation and tooling amortization 9,023 9,122 9,280 Other amortization (306 ) (669 ) (972 ) Provision for credit and insurance losses 672 717 609 Pension and other postretirement employee benefits (“OPEB”) expense/(income) 2,667 (608 ) 400 Equity investment (earnings)/losses in excess of dividends received (178 ) 240 206 Foreign currency adjustments 283 (403 ) 529 Net (gain)/loss on changes in investments in affiliates (139 ) (7 ) (42 ) Stock compensation 210 246 191 Net change in wholesale and other receivables (1,449 ) (836 ) (2,408 ) Provision for deferred income taxes 1,473 (350 ) (197 ) Decrease/(Increase) in accounts receivable and other assets (2,855 ) (2,297 ) (2,239 ) Decrease/(Increase) in inventory (803 ) (970 ) (828 ) Increase/(Decrease) in accounts payable and accrued and other liabilities 6,595 6,089 6,781 Other 57 65 17 Net cash provided by/(used in) operating activities 19,850 18,096 15,022 Cash flows from investing activities Capital spending (6,992 ) (7,049 ) (7,785 ) Acquisitions of finance receivables and operating leases (56,007 ) (59,354 ) (62,924 ) Collections of finance receivables and operating leases 38,834 44,641 50,880 Purchases of marketable and other securities (31,428 ) (27,567 ) (17,140 ) Sales and maturities of marketable and other securities 29,354 29,898 20,527 Settlements of derivatives 825 100 358 Other 112 (29 ) (177 ) Net cash provided by/(used in) investing activities (25,302 ) (19,360 ) (16,261 ) Cash flows from financing activities Cash dividends (3,376 ) (2,584 ) (2,905 ) Purchases of common stock (145 ) (131 ) (164 ) Net changes in short-term debt 3,864 1,229 (2,819 ) Proceeds from issuance of long-term debt 45,961 45,801 50,130 Principal payments on long-term debt (38,797 ) (40,770 ) (44,172 ) Other (107 ) (151 ) (192 ) Net cash provided by/(used in) financing activities 7,400 3,394 (122 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (265 ) 489 (370 ) Net increase/(decrease) in cash, cash equivalents, and restricted cash $ 1,683 $ 2,619 $ (1,731 ) Cash, cash equivalents, and restricted cash at January 1 $ 14,336 $ 16,019 $ 18,638 Net increase/(decrease) in cash, cash equivalents, and restricted cash 1,683 2,619 (1,731 ) Cash, cash equivalents, and restricted cash at December 31 $ 16,019 $ 18,638 $ 16,907 8 Ford Motor Company: 4Q / FY January 23, 2019


 
SUPPLEMENTAL FINANCIAL INFORMATION The tables below provide supplemental consolidating financial information. Company excluding Ford Credit includes our Automotive and Mobility reportable segments, Corporate Other, Interest on Debt, and Special Items. Eliminations, where presented, primar ily represent eliminations of intersegment transactions and deferred tax netting. Selected Income Statement Information. The following table provides supplemental income statement information (in millions): For the year ended December 31, 2018 Company excluding Ford Credit Automotive Mobility Other (a) Subtotal Ford Credit Consolidated Revenues $ 148,294 $ 26 $ — $ 148,320 $ 12,018 $ 160,338 Total costs and expenses 145,691 758 1,223 147,672 9,463 157,135 Interest expense on Automotive debt — — 1,171 1,171 — 1,171 Interest expense on Other debt — — 57 57 — 57 Other income/(loss), net 2,724 58 (579 ) 2,203 44 2,247 Equity in net income of affiliated companies 95 — — 95 28 123 Income/(loss) before income taxes 5,422 (674 ) (3,030 ) 1,718 2,627 4,345 Provision for/(Benefit from) income taxes 705 (162 ) (296 ) 247 403 650 Net income/(Loss) 4,717 (512 ) (2,734 ) 1,471 2,224 3,695 Less: Income/(Loss) attributable to noncontrolling interests 18 — — 18 — 18 Net income/(Loss) attributable to Ford Motor Company $ 4,699 $ (512 ) $ (2,734 ) $ 1,453 $ 2,224 $ 3,677 (a) Other includes Corporate Other, Interest on Debt, and Special Items 9 Ford Motor Company: 4Q / FY January 23, 2019


 
SUPPLEMENTAL FINANCIAL INFORMATION Selected Balance Sheet Information. The following tables provide supplemental balance sheet information (in millions): December 31, 2018 Company excluding Assets Ford Credit Ford Credit Eliminations Consolidated Cash and cash equivalents $ 7,111 $ 9,607 $ — $ 16,718 Marketable securities 15,925 1,308 — 17,233 Ford Credit finance receivables, net — 53,289 — 53,289 Trade and other receivables, less allowances 3,698 7,497 — 11,195 Inventories 11,220 — — 11,220 Other assets 2,567 1,363 — 3,930 Receivable from other segments 1,054 2,470 (3,524 ) — Total current assets 41,575 75,534 (3,524 ) 113,585 Ford Credit finance receivables, net — 56,608 — 56,608 Net investment in operating leases 1,705 27,414 — 29,119 Net property 35,986 192 — 36,178 Equity in net assets of affiliated companies 2,595 114 — 2,709 Deferred income taxes 12,293 216 (2,097 ) 10,412 Other assets 6,343 1,586 — 7,929 Receivable from other segments 166 14 (180 ) — Total assets $ 100,663 $ 161,678 $ (5,801 ) $ 256,540 Liabilities Payables $ 20,426 $ 1,094 $ — $ 21,520 Other liabilities and deferred revenue 18,868 1,688 — 20,556 Automotive debt payable within one year 2,314 — — 2,314 Ford Credit debt payable within one year — 51,179 — 51,179 Payable to other segments 3,524 — (3,524 ) — Total current liabilities 45,132 53,961 (3,524 ) 95,569 Other liabilities and deferred revenue 22,491 1,097 — 23,588 Automotive long-term debt 11,233 — — 11,233 Ford Credit long-term debt — 88,887 — 88,887 Other long-term debt 600 — — 600 Deferred income taxes 99 2,595 (2,097 ) 597 Payable to other segments 17 163 (180 ) — Total liabilities $ 79,572 $ 146,703 $ (5,801 ) $ 220,474 10 Ford Motor Company: 4Q / FY January 23, 2019


 
SUPPLEMENTAL FINANCIAL INFORMATION Selected Cash Flow Information. The following tables provide supplemental cash flow information (in millions): For the year ended December 31, 2018 Company excluding Cash flows from operating activities Ford Credit Ford Credit Eliminations Consolidated Net income $ 1,471 $ 2,224 $ — $ 3,695 Depreciation and tooling amortization 5,384 3,896 — 9,280 Other amortization 100 (1,072 ) — (972 ) Provision for credit and insurance losses — 609 — 609 Pension and OPEB expense/(income) 400 — — 400 Equity investment (earnings)/losses in excess of dividends received 231 (25 ) — 206 Foreign currency adjustments 528 1 — 529 Net (gain)/loss on changes in investments in affiliates (39 ) (3 ) — (42 ) Stock compensation 183 8 — 191 Net change in wholesale and other receivables — (2,408 ) — (2,408 ) Provision for deferred income taxes 573 (770 ) — (197 ) Decrease/(Increase) in intersegment receivables/payables (558 ) 558 — — Decrease/(Increase) in accounts receivable and other assets (1,999 ) (240 ) — (2,239 ) Decrease/(Increase) in inventory (828 ) — — (828 ) Increase/(Decrease) in accounts payable and accrued and other liabilities 6,521 260 — 6,781 Other 89 (72 ) — 17 Interest supplements and residual value support to Ford Credit (5,205 ) 5,205 — — Net cash provided by/(used in) operating activities $ 6,851 $ 8,171 $ — $ 15,022 Cash flows from investing activities Capital spending $ (7,737 ) $ (48 ) $ — $ (7,785 ) Acquisitions of finance receivables and operating leases — (62,924 ) — (62,924 ) Collections of finance receivables and operating leases — 50,880 — 50,880 Purchases of marketable and other securities (13,508 ) (3,632 ) — (17,140 ) Sales and maturities of marketable and other securities 15,356 5,171 — 20,527 Settlements of derivatives 132 226 — 358 Other (174 ) (3 ) — (177 ) Investing activity (to)/from other segments 2,711 154 (2,865 ) — Net cash provided by/(used in) investing activities $ (3,220 ) $ (10,176 ) $ (2,865 ) $ (16,261 ) Cash flows from financing activities Cash dividends $ (2,905 ) $ — $ — $ (2,905 ) Purchases of common stock (164 ) — — (164 ) Net changes in short-term debt (543 ) (2,276 ) — (2,819 ) Proceeds from issuance of long-term debt 176 49,954 — 50,130 Principal payments on long-term debt (1,642 ) (42,530 ) — (44,172 ) Other (42 ) (150 ) — (192 ) Financing activity to/(from) other segments (154 ) (2,711 ) 2,865 — Net cash provided by/(used in) financing activities $ (5,274 ) $ 2,287 $ 2,865 $ (122 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash $ (153 ) $ (217 ) $ — $ (370 ) 11 Ford Motor Company: 4Q / FY January 23, 2019


 
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 our 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 EBIT (Most Comparable GAAP Measure: Net income attributable to Ford) – Earnings before interest and taxes (EBIT) includes non-controlling interests and excludes interest on debt (excl. Ford Credit Debt), taxes and pre-tax special items. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results aligned with industry reporting. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel and dealer-related costs stemming from 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 EBIT, 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. • Company Adjusted EBIT Margin (Most Comparable GAAP Measure: Company Net Income Margin) – Company Adjusted EBIT margin is Company adjusted EBIT divided by Company revenue. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results aligned with industry reporting. • Adjusted Earnings Per Share (Most Comparable GAAP Measure: Earnings Per Share) – Measure of Company’s diluted net earnings per share adjusted for impact of pre-tax special items (described above), and tax special items. The measure provides investors with useful information to evaluate performance of our business excluding items not indicative of underlying run rate of our business. When we provide guidance for adjusted earnings per share, we do not provide guidance on an earnings per share 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. • Adjusted Effective Tax Rate (Most Comparable GAAP Measure: Effective Tax Rate) – Measure of Company’s tax rate excluding pre-tax special items (described above) and tax special items. The measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting. When we provide guidance for adjusted effective tax rate, we do not provide guidance on an effective tax rate 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. • Company Adjusted Operating Cash Flow (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elements management considers operating activities, including Automotive and Mobility capital spending, Ford Credit distributions to its parent, and settlement of derivatives. The measure excludes cash outflows for funded pension contributions, separation payments, and other items that are considered operating cash outflows under U.S. GAAP. This measure is useful to management and investors because it is consistent with management’s assessment of the Company’s operating cash flow performance. When we provide guidance for Company adjusted operating cash flow, we do not provide guidance for net cash provided by/(used in) operating activities because the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, including cash flows related to the Company's exposures to foreign currency exchange rates and certain commodity prices (separate from any related hedges), Ford Credit's operating cash flows, and cash flows related to special items, including separation payments, each of which individually or in the aggregate could have a significant impact to our net cash provided by/(used in) our operating activities. Note: Calculated results may not sum due to rounding 12 Ford Motor Company: 4Q / FY January 23, 2019


 
COMPANY NET INCOME RECONCILIATION TO ADJUSTED EBIT (MILS) 4Q FY 2017 2018 2017 2018 Net income / (Loss) attributable to Ford (GAAP)$ 2,520 $ (116) $ 7,731 $ 3,677 Income / (Loss) attributable to non-controlling interests 4 4 26 18 Net income / (Loss) $2,524 $ (112) $ 7,757 $ 3,695 Less: (Provision for) / Benefit from income taxes 652 (95) (402) (650) Income / (Loss) before income taxes$ 1,872 $ (17) $ 8,159 $ 4,345 Less: Special items pre-tax 152 (1,179) (289) (1,429) Income / (Loss) before special items pre-tax$ 1,720 $ 1,162 $ 8,448 $ 5,774 Less: Interest on debt (308) (295) (1,190) (1,228) Adjusted EBIT (Non-GAAP)$ 2,028 $ 1,457 $ 9,638 $ 7,002 Memo: Revenue (Bils) $41.3 $ 41.8 $ 156.8 $ 160.3 Net income margin (GAAP) (Pct) 6.1% (0.3)% 4.9% 2.3% Adjusted EBIT Margin (Pct) 4.9% 3.5% 6.1% 4.4% COMPANY EARNINGS PER SHARE RECONCILIATION TO ADJUSTED EARNINGS PER SHARE 4Q FY 2017 2018 2017 2018 Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP) $2,520 $ (116) $ 7,731 $ 3,677 Less: Impact of pre-tax and tax special items 971 (1,320) 608 (1,517) Adjusted net income – diluted (Non-GAAP) $1,549 $ 1,204 $ 7,123 $ 5,194 Basic and Diluted Shares (Mils) Basic shares (average shares outstanding) 3,973 3,970 3,975 3,974 Net dilutive options, unvested restricted stock units and restricted stock 27 27 23 24 Diluted shares 4,000 3,997 3,998 3,998 Earnings per share – diluted (GAAP)* $0.63 $ (0.03) $ 1.93 $ 0.92 Less: Net impact of adjustments 0.24 (0.33) 0.15 (0.38) Adjusted earnings per share – diluted (Non-GAAP) $0.39 $ 0.30 $ 1.78 $ 1.30 * The 2018 fourth quarter calculation of Earnings Per Share - Diluted (GAAP) excludes the 27 million shares of net dilutive options, unvested restricted stock units and restricted stock due to their antidilutive effect 13 Ford Motor Company: 4Q / FY January 23, 2019


 
COMPANY EFFECTIVE TAX RATE RECONCILIATION TO ADJUSTED EFFECTIVE TAX RATE 2018 Memo: 4Q FY FY 2017 Pre-Tax Results (Mils) Income / (Loss) before income taxes (GAAP) $(17) $ 4,345 $ 8,159 Less: Impact of special items (1,179) (1,429) (289) Adjusted earnings before taxes (Non-GAAP) $1,162 $ 5,774 $ 8,448 Taxes (Mils) (Provision for) / Benefit from income taxes (GAAP)$ (95) $ (650) $ (402) Less: Impact of special items (141) (88) 897 Adjusted (provision for) / benefit from income taxes (Non-GAAP)$ 46 $ (562) $ (1,299) Tax Rate (Pct) Effective tax rate (GAAP) (558.8)% 15.0% 4.9% Adjusted effective tax rate (Non-GAAP) (4.0)% 9.7% 15.4% NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES RECONCILIATION TO COMPANY ADJUSTED OPERATING CASH FLOW (MILS) 4Q FY 2017 2018 2017 2018 Net cash provided by / (used in) operating activities (GAAP)$ 3,147 $ 1,357 $ 18,096 $ 15,022 Less: Items not included in Company Adjusted Operating Cash Flow Ford Credit operating cash flows (174) (1,232) 9,300 8,171 Funded pension contributions (714) (153) (1,434) (437) Separation payments (181) (117) (281) (179) Other, net (25) (21) (52) 65 Add: Items included in Company Adjusted Operating Cash Flow Automotive and Mobility capital spending (2,103) (2,102) (7,004) (7,737) Ford Credit distributions - 660 406 2,723 Settlement of derivatives 107 70 217 132 Pivotal conversion to a marketable security - - - 263 Company adjusted operating cash flow (Non-GAAP)$ 2,244 $ 1,507 $ 4,182 $ 2,781 14 Ford Motor Company: 4Q / FY January 23, 2019


 
COMPANY SPECIAL ITEMS (MILS) 4Q FY 2017 2018 2017 2018 Pension and OPEB gain / (loss) Year end net pension and OPEB remeasurement$ (162) $ (877) $ (162) $ (877) Other pension remeasurement - - - 26 Pension curtailment 354 - 354 15 Total pension and OPEB gain / (loss)$ 192 $ (877) $ 192 $ (836) Separation-related actions $ (38) $(262) $ (297) $ (537) Other items San Luis Potosi plant cancellation $- $ - $ 41 $ - Next-generation Focus footprint change (2) - (225) (9) Focus Active cancellation - - - (7) Chariot closure - (40) - (40) Total other items $ (2) $(40) $ (184) $ (56) Total pre-tax special items $152 $ (1,179) $ (289) $ (1,429) 15 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED INCOME STATEMENT – FORD CREDIT FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions) For the Years Ended December 31, 2016 2017 2018 (unaudited) Financing revenue Operating leases $ 5,555 $ 5,552 $ 5,795 Retail financing 3,070 3,451 3,891 Dealer financing 1,760 1,903 2,207 Other 38 70 84 Total financing revenue 10,423 10,976 11,977 Depreciation on vehicles subject to operating leases (4,329 ) (4,135 ) (3,867 ) Interest expense (2,755 ) (3,175 ) (3,930 ) Net financing margin 3,339 3,666 4,180 Other revenue Insurance premiums earned 156 158 167 Fee based revenue and other — 243 238 Total financing margin and other revenue 3,495 4,067 4,585 Expenses Operating expenses 1,274 1,295 1,429 Provision for credit losses 547 588 532 Insurance expenses 125 124 77 Total expenses 1,946 2,007 2,038 Other income, net 330 250 80 Income before income taxes 1,879 2,310 2,627 Provision for / (Benefit from) income taxes 506 (697 ) 403 Net income $ 1,373 $ 3,007 $ 2,224 16 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED BALANCE SHEET – FORD CREDIT FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions) December 31, December 31, 2017 2018 (unaudited) ASSETS Cash and cash equivalents $ 9,558 $ 9,607 Marketable securities 2,881 1,308 Finance receivables, net 116,003 118,814 Net investment in operating leases 26,661 27,449 Notes and accounts receivable from affiliated companies 1,076 905 Derivative financial instruments 935 670 Other assets 3,329 3,456 Total assets $ 160,443 $ 162,209 LIABILITIES Accounts payable Customer deposits, dealer reserves, and other $ 1,171 $ 1,097 Affiliated companies 592 426 Total accounts payable 1,763 1,523 Debt 137,828 140,146 Deferred income taxes 2,386 2,595 Derivative financial instruments 310 663 Other liabilities and deferred income 2,272 2,307 Total liabilities 144,559 147,234 SHAREHOLDER’S INTEREST Shareholder’s interest 5,227 5,227 Accumulated other comprehensive income / (loss) (419 ) (829 ) Retained earnings 11,076 10,577 Total shareholder’s interest 15,884 14,975 Total liabilities and shareholder’s interest $ 160,443 $ 162,209 17 Ford Motor Company: 4Q / FY January 23, 2019


 
CONSOLIDATED STATEMENT OF CASH FLOWS – FORD CREDIT FORD MOTOR CREDIT COMPANY LLC AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) For the Years Ended December 31, 2016 2017 2018 (unaudited) Cash flows from operating activities Net income $ 1,373 $ 3,007 $ 2,224 Adjustments to reconcile net income to net cash provided by operations Provision for credit losses 547 588 532 Depreciation and amortization 5,121 4,928 4,735 Amortization of upfront interest supplements (1,341 ) (1,686 ) (2,041 ) Net change in deferred income taxes 340 (923 ) 259 Net change in other assets (413 ) (606 ) (276 ) Net change in other liabilities 462 480 115 All other operating activities 142 (123 ) 155 Net cash provided by / (used in) operating activities 6,231 5,665 5,703 Cash flows from investing activities Purchases of finance receivables (37,494 ) (43,232 ) (44,384 ) Principal collections of finance receivables 30,924 37,277 42,553 Purchases of operating lease vehicles (14,441 ) (12,780 ) (14,306 ) Proceeds from termination of operating lease vehicles 7,920 8,538 9,223 Net change in wholesale receivables and other short-duration receivables (1,499 ) (874 ) (2,661 ) Purchases of marketable securities (7,289 ) (5,899 ) (3,632 ) Proceeds from sales and maturities of marketable securities 6,756 6,316 5,171 Settlements of derivatives 215 (117 ) 226 All other investing activities (105 ) (30 ) 102 Net cash provided by / (used in) investing activities (15,013 ) (10,801 ) (7,708 ) Cash flows from financing activities Proceeds from issuances of long-term debt 42,971 44,994 49,954 Principal payments on long-term debt (38,000 ) (39,372 ) (42,530 ) Change in short-term debt, net 3,403 1,195 (2,263 ) Cash distributions to parent — (406 ) (2,723 ) All other financing activities (103 ) (105 ) (151 ) Net cash provided by / (used in) financing activities 8,271 6,306 2,287 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (246 ) 327 (217 ) Net increase / (decrease) in cash, cash equivalents, and restricted cash $ (757 ) $ 1,497 $ 65 Cash, cash equivalents and restricted cash at January 1 $ 8,942 $ 8,185 $ 9,682 Net increase / (decrease) in cash, cash equivalents and restricted cash (757 ) 1,497 65 Cash, cash equivalents and restricted cash at December 31 $ 8,185 $ 9,682 $ 9,747 18 Ford Motor Company: 4Q / FY January 23, 2019


 
4Q 2018 And Full Year Earnings Review And 2019 Outlook January 23, 2019 (Preliminary Results)


 
Creating Tomorrow, Together Our Freedom of movement drives human progress. Belief Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world. Passion for Product & Deep Customer Insight Our Plan for Value Creation Winning Propulsion Autonomous Mobility Portfolio Choices Technology Experiences Fitness Metrics Operating Leverage Growth Build, Partner, Buy EBIT Margin Capital Efficiency ROIC Strong Balance Sheet Cash Flow Our People Culture & Values 2


 
Financial Highlights FOURTH QUARTER FULL YEAR Company Revenue $41.8B 1% $160.3B 2% Company Adj. EBIT* $ Company Adj. EBIT Margin* $1.5B 3.5% $7.0B 4.4% NA EBIT Margin 7.6% 7.9% Ford Credit EBT $0.7B $2.6B Company Adj. Op. Cash Flow* $1.5B $2.8B Company Cash* Liquidity $23.1B $34.2B $23.1B $34.2B Adj. EPS* $0.30 $1.30 * See Appendix for reconciliation to GAAP and definitions 3


 
Strategic Highlights  F-Series: Over 1 million sold globally in 2018; largest-ever lead on competition; ATPs about $2k higher than segment Winning  Ranger: In the U.S., launched Ranger, the second best selling medium pickup outside of the U.S.  All-new Focus in China: Higher ATP than segment; new mid-size SUV Territory in dealer showrooms by the end of Portfolio January  All-new Shelby GT500 revealed, most powerful street legal Ford in history  Explorer: America’s all-time best-selling SUV. All-new in 2019 with performance-tuned ST and no-compromise hybrid. Propulsion Hybrid is the first of our next generation of advanced hybrids that provide both capability and efficiency  New all-electric utility to be revealed this year and go on sale in 2020 Choices  Early work started on all-electric F-150 Autonomous  Miami AV drive highlighting technology and business models for moving people and goods – exceeded expectations Technology Mobility  Acquired e-scooter company SPIN to deliver first-mile / last-mile mobility solutions  Announced plan to deploy cellular vehicle-to-everything technology (C-V2X) in all-new vehicles in the U.S. beginning Experiences in 2022  Redesign of our global salaried workforce to increase effectiveness and efficiency complete in 2Q  Began consultation with labor partners on restructuring and redesign of European operations to reach sustainable profitability Fitness  Russia business under strategic review  Auto structural costs flat in 2018 YoY versus average annual increase of $1.7 billion 2013 - 2017  Entered into alliance with VW to develop medium-sized pickup trucks and commercial vans 4


 
Bob Shanks Chief Financial Officer Financial Review SECRET


 
Company Key Metrics Summary FOURTH QUARTER FULL YEAR • All 4Q key metrics lower YoY 2017 2018 H / (L) 2017 2018 H / (L) except revenue; mainly reflects performance in China and Wholesales (000) 1,749 1,474 (16) % 6,607 5,982 (9) % Europe Market Share (Pct) 6.6 % 5.9 % (0.7) ppts 7.0 % 6.3 % (0.7) ppts • Company adj. EBIT at $1.5B, down $0.6B; adj. EBIT GAAP margin at 3.5%, down 1.4 ppts Revenue (Bils) $ 41.3 $ 41.8 1 % $ 156.8 $ 160.3 2 % Net Income (Bils) 2.5 (0.1) $ (2.6) 7.7 3.7 $ (4.1) • Company adj. EPS at $0.30, Net Income Margin (Pct) 6.1 % (0.3) % (6.4) ppts 4.9 % 2.3 % (2.6) ppts down $0.09; adj. effective tax EPS (Diluted) $ 0.63 $ (0.03) $(0.66) $ 1.93 $ 0.92 $(1.01) rate of negative 4.0% Cash Flows From Op. Activities (Bils) 3.1 1.4 (1.8) 18.1 15.0 (3.1) • Company adj. operating cash flow at $1.5B, down $0.7B Non-GAAP due primarily to lower EBIT Company Adj. EBIT* (Bils) $ 2.0 $ 1.5 $ (0.6) $ 9.6 $ 7.0 $ (2.6) Company Adj. EBIT Margin* (Pct) 4.9 % 3.5 % (1.4) ppts 6.1 % 4.4 % (1.7) ppts • Net income loss of $0.1B, down Adjusted EPS* (Diluted) $ 0.39 $ 0.30 $ (0.09) $ 1.78 $ 1.30 $ (0.48) $2.6B; includes negative $0.9B Company Adj. Op. Cash Flow* (Bils) 2.2 1.5 (0.7) 4.2 2.8 (1.4) non-cash pre-tax mark-to-market Adjusted Cash Conversion* 43 % 40 % (3) ppts 43 % 40 % (3) ppts adjustment for global pension Adjusted Debt to EBITDA* 2.5 3.0 0.5 2.5 3.0 0.5 and OPEB plans Adjusted ROIC* (Trailing Four Qtrs) 11.8 % 7.1 % (4.7) ppts 11.8 % 7.1 % (4.7) ppts * See Appendix for reconciliation to GAAP, calculations and definitions 6


 
Company Key Financial Metrics Company Revenue (Bils) Company Adjusted EBIT Margin (Pct) $41.3 $42.0 $41.8 $38.9 4.9% 5.2% $37.6 4.3% 4.4% 3.5% 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Company Adjusted EBIT (Bils) Company Adjusted Operating Cash Flow (Bils) $3.0 $2.2 $1.5 $0.1 $2.0 $2.2 $1.7 $1.7 $1.5 $(1.8) 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Note: See Appendix for reconciliation to GAAP and definitions Company Revenue And Adj. Operating Cash Flow Trending Higher; Company Adj. EBIT And Adj. EBIT Margin Trending Lower 7


 
• 4Q Company adj. EBIT of $1.5B 4Q 2018 Company Results (Mils) driven by Auto and Ford Credit; YoY decline due mainly to Auto, driven by China and Europe • Loss at Mobility due to planned $1,457 investment increases for $1,131 development of services and $663 autonomous vehicle business • Corporate Other reflects Corporate governance cost and $(142) $(99) $(116) $(195) $(295) adverse fair market value changes for marketable securities; Auto interest income a $(1,179) partial offset Taxes / Auto Mobility Ford Credit Corporate Company Interest Special Non- Net Income • Special Items mainly non-cash Other Adj. EBIT* On Debt Items Controlling (GAAP) pre-tax mark-to-market adjustment for global pension B / (W) 4Q 2017 $(504) $(95) $53 $(25) $(571) $13 $(1,331) $(747) $(2,636) and OPEB plans; key driver of net income loss • Unfavorable YoY change in taxes due to non-repeat of favorable * See Appendix for reconciliation to GAAP and definitions U.S. tax reform and other 8 tax-planning actions in 4Q 2017


 
4Q 2018 Automotive EBIT By Region (Mils) • 4Q Automotive EBIT of $1.1B more than explained by $1,959 North America, which improved YoY • Operations outside $1,131 North America at an EBIT loss $(828) of $828M, down $692M due to China and Europe • Within Asia Pacific, China a loss of $534M, a YoY decline of $515M $(49) $(199) $(199) $(381) • Automotive structural costs reduced nearly $200M YoY due North South Middle East Asia to fitness benefits Automotive America America Europe & Africa Pacific B / (W) 4Q 2017 $(504) $188 $(10) $(288) $17 $(411) 9


 
Ford Credit Key Metrics FOURTH QUARTER FULL YEAR 2017 2018 H / (L) 2017 2018 H / (L) Net Receivables (Bils) $ 143 $ 146 3 % $ 143 $ 146 3 % Managed Receivables* (Bils) $ 151 $ 155 3 % $ 151 $ 155 3 % Loss-to-Receivables** (LTR) 60 bps 55 bps (5) bps 53 bps 46 bps (7) bps • Strong 4Q and best FY EBT at Auction Values*** $17,505 $17,865 2 % $17,430 $18,055 4 % Ford Credit in 8 years Earnings Before Taxes (EBT) (Mils) $ 610 $ 663 $ 53 $ 2,310 $ 2,627 $ 317 ROE (Pct) 50 % 14 % (36) ppt 22 % 14 % (8) ppts • U.S. consumer credit metrics healthy with improved LTR Other Balance Sheet Metrics Debt (Bils) $ 138 $ 140 2 % • Balance sheet and liquidity Liquidity (Bils) $ 30 $ 27 (7) % remain strong; managed Financial Statement Leverage (to 1) 8.7 9.4 0.7 leverage within target range of Managed Leverage* (to 1) 8.0 8.8 0.8 8:1 to 9:1 * See Appendix for reconciliation to GAAP and definitions ** U.S. retail and lease *** U.S. 36-month off-lease fourth quarter auction values at 4Q 2018 mix, full year auction values at FY 2018 mix 10


 
Company Cash Flow And Balance Sheet (Bils) 2017 2018 2017 2018 4Q 4Q FY FY Company Cash Flow Company Adj. Op. Cash Flow* $ 2.2 $ 1.5 $ 4.2 $ 2.8 • 4Q and FY Company adj. Change in Company Cash 0.3 (0.6) (1.0) (3.4) operating cash flow at $1.5B and $2.8B, respectively 2017 2018 • Company cash and liquidity Dec 31 Dec 31 balances remain strong Balance Sheet and Liquidity Company Excluding Ford Credit • Committed to maintaining an Company Cash* $ 26.5 $ 23.1 investment grade credit rating Liquidity 37.4 34.2 and debt capacity; fully funded Debt $ (16.5) $ (14.1) and de-risked global funded Cash Net of Debt 10.0 8.9 pension plans; and cash Pension Funded Status balances and liquidity at or Funded Plans $ (0.1) $ (0.3) above $20B and $30B, Unfunded Plans (6.5) (6.0) respectively Total Global Pension $ (6.6) $ (6.3) Total Funded Status OPEB $ (6.2) $ (5.6) * See Appendix for reconciliation to GAAP and definitions 11


 
FY 2018 Company Results (Mils) • FY Company adj. EBIT of $7B driven by Auto and Ford Credit; YoY decline of $2.6B largely $7,002 explained by lower China and $5,422 Europe results in Auto $3,677 • Loss at Mobility due to planned $2,627 investment increases for development of autonomous vehicle business and mobility services $(373) $(674) $(668) • Corporate Other reflects $(1,228) $(1,429) Corporate governance costs Taxes / offset partially by Auto interest Auto Mobility Ford Credit Corporate Company Interest Special Non- Net Income income Other Adj. EBIT* On Debt Items Controlling (GAAP) B / (W) • Special Items mainly non-cash FY 2017 $(2,662) $(375) $317 $84 $(2,636) $(38) $(1,140) $(240) $(4,054) pre-tax mark-to-market adjustment for global pension and OPEB plans and charges for personnel separations * See Appendix for reconciliation to GAAP and definitions 12


 
FY 2018 Automotive EBIT By Region (Mils) • FY Automotive EBIT of $5.4B $7,607 driven by North America • North America EBIT lower YoY $5,422 due to higher warranty cost • Operations outside $(2,185) North America at an EBIT loss of $2.2B, compared to last year’s breakeven result. Loss driven by Asia Pacific (China), South America and Europe $(7) $(678) $(398) • Non-North America YoY decline $(1,102) represents over 80% of lower Auto EBIT; results down $1.7B North South Middle East Asia in China and $0.8B in Europe Automotive America America Europe & Africa Pacific B / (W) FY 2017 $(2,662) $(450) $75 $(765) $239 $(1,761) 13


 
2019 Company Outlook Longer-Term 2018 2019 Target Revenue Growth 2% > Global GDP $ Adj. EBIT Margin* 4.4% 8%+ Potential Adj. ROIC* 7.1% Improvement High Teens+ From 2018 Adj. Cash Conversion* 40% 65%+ Adj. Debt To EBITDA* 3.0 <2.5 * See Appendix for reconciliation to GAAP, calculations and definitions 14


 
Actions to Improve Performance China Europe  Higher than segment average transaction  Extend brand leadership in LCV share from Growth prices on all-new Focus and Escort 14.1%  10 new product launches in 2019  Ranger and Transit upgrades; Transit PHEV  Improved dealer engagement and  Focus on higher margin sub brands profitability  Reduce passenger vehicle complexity  Right-sized inventory  Prioritize higher-margin markets  Profitability Lower material costs through local  Significant reduction in personnel and sourcing structural costs  Significant reduction in structural costs  Improve or exit unprofitable products and for consolidated operations markets 15


 
Questions & Answers SECRET


 
Creating Tomorrow, Together Our • 2018 laid the foundation for Freedom of movement drives human progress. Belief global redesign Our To become the world’s most trusted company, • 2019 clear vision to improve Aspiration designing smart vehicles for a smart world. profitability and returns; now in Passion for Product & Deep Customer Insight execution mode Our Plan for Value Creation Winning Propulsion Autonomous Mobility • Decisive actions to address Portfolio Choices Technology Experiences underperforming parts of the business and to allocate capital Fitness Metrics to higher-return opportunities Operating Leverage Growth • More specifics on global EBIT Margin Build, Partner, Buy redesign in the coming months Capital Efficiency ROIC Strong Balance Sheet Cash Flow Our People Culture & Values 17


 
Supplemental Materials Financial Review SECRET


 
4Q 2018 Company Revenue YoY Bridge (Bils) • 4Q Company revenue of $42B up 1%; driven by favorable mix and higher net pricing in North America Net 4Q 2017 Volume Mix Pricing Exchange Other 4Q 2018 19


 
FY 2018 Company Revenue YoY Bridge (Bils) • FY Company revenue of $160B up 2%; driven by favorable mix, mainly North America, and higher net pricing in all regions except China Net 2017 Volume Mix Pricing Exchange Other 2018 20


 
Automotive Key Metrics • 4Q Automotive key metrics FOURTH QUARTER FULL YEAR lower YoY except revenue 2017 2018 H / (L) 2017 2018 H / (L) • Global SAAR down 9% driven Global SAAR (Mils) 99.6 90.8 (9) % 95.0 94.2 (1) % by China with smaller declines in Europe and North America Market Share (Pct) 6.6 % 5.9 % (0.7) ppts 7.0 % 6.3 % (0.7) ppts Wholesales (000) 1,749 1,474 (16) % 6,607 5,982 (9) % • Global market share lower with declines in all regions except Revenue (Bils) $ 38.5 $ 38.7 1 % $ 145.7 $ 148.3 2 % Europe EBIT (Mils) $ 1,635 $ 1,131 $ (504) $ 8,084 $ 5,422 $(2,662) • Lower volume due mainly to EBIT Margin (Pct) 4.3 % 2.9 % (1.4) ppts 5.6 % 3.7 % (1.9) ppts joint ventures in China and Turkey Launched all-new Ford Ranger at Michigan Assembly Plant 21


 
Automotive 4Q 2018 EBIT YoY Bridge (Mils) • 4Q Automotive EBIT of $1.1B down $504M YoY; driven by Industry $ (67) higher warranty cost, lower Share (608) Stocks 371 volume at the China JVs, Mix 583 tariff-related cost and other Other (41) China JVs $(419) China JV Royalties (104) commodity headwinds Exchange / Other (84) • Market factors up strongly due mainly to favorable mix and higher net pricing in Commodities $(439) Warranty (745) North America, as well as net Other Contribution Cost (235) pricing gains in South America Structural Cost 182 and Europe • Structural cost improved $182M Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 due to fitness benefits Market Factors $1,340 22


 
Automotive FY 2018 EBIT YoY Bridge (Mils) • FY Automotive EBIT of $5.4B down $2.7B YoY • Decline more than explained by $1.8B from tariff-related cost Exchange $(1,010) and other commodity China JVs & Royalties (1,291) Parts & Accessories 174 headwinds, lower volume at Other 427 China JVs and higher warranty cost (mainly North America) Industry $ 231 Share (1,559) Stocks 482 • Strongest YoY improvement in Mix 2,062 Commodities $(1,604) market factors since 2015, Other (184) Warranty (1,136) Net Product (796) driven by North America, Other Contribution Cost (379) South America and Europe; Structural Cost (50) reflects higher net pricing (including recovery for exchange and economics in Volume / Net South America) and strong mix, 2017 Mix Pricing Cost Other 2018 mainly in North America Market Factors • Structural cost about flat $3,003 23


 
North America Key Metrics FOURTH QUARTER FULL YEAR • 4Q North America revenue and 2017 2018 H / (L) 2017 2018 H / (L) bottom-line metrics improved YoY; volume-related metrics SAAR (Mils) 22.1 21.6 (2) % 21.5 21.5 - % lower U.S. 18.2 18.0 (1) % 17.6 17.7 1 % Market Share (Pct) 13.6 % 12.8 % (0.8) ppts 13.9 % 13.4 % (0.5) ppts • North America and U.S. SAAR U.S. 14.7 % 13.6 % (1.1) ppts 14.7 % 14.1 % (0.6) ppts down 2% and 1%, respectively Wholesales (000) 739 738 (0) % 2,967 2,920 (2) % • U.S. market share lower due to Revenue (Bils) $ 24.1 $ 25.8 7 % $ 93.5 $ 96.6 3 % car and truck retail performance EBIT (Mils) $ 1,771 $ 1,959 $ 188 $ 8,057 $ 7,607 $ (450) and lower rentals EBIT Margin (Pct) 7.3 % 7.6 % 0.3 ppts 8.6 % 7.9 % (0.7) ppts First-year sales of the all-new Expedition proved very strong in the U.S., gaining 6 ppt lift YoY in full-size SUV segment – retail share to 18 percent 24


 
North America 4Q 2018 EBIT YoY Bridge (Mils) • 4Q North America EBIT at $2B, up $188M YoY • Healthy improvement in market factors due to strong mix and higher net pricing Industry $ 49 Share (569) • Headwinds represented by Stocks 495 Mix 444 Commodities $(301) higher warranty and commodity Other (47) Warranty (707) Other Cost (42) costs, including tariff-related effects • Structural cost flat Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $1,001 25


 
North America FY 2018 EBIT YoY Bridge (Mils) • FY North America EBIT of $7.6B, down $450M YoY • EBIT decline mainly reflects Industry $ 219 higher commodity cost, Share (1,272) including tariff-related effects, Stocks 651 Mix 1,919 Commodities $(1,108) and warranty cost; higher Other 70 Warranty (1,070) structural cost due to increased Other Contribution Cost (603) Structural Cost (265) non-cash depreciation and amortization expense • Market factors up strongly due to favorable mix and higher net pricing Volume / Net 2017 Mix Pricing Cost Other 2018 Market Factors $2,012 26


 
• All 4Q South America metrics South America Key Metrics down YoY except SAAR FOURTH QUARTER FULL YEAR • South America SAAR up 2% 2017 2018 H / (L) 2017 2018 H / (L) with growth of 17% in Brazil and a reduction of 44% in SAAR (Mils) 4.3 4.4 2 % 4.2 4.5 7 % Argentina; Brazil higher for the Brazil 2.3 2.7 17 % 2.2 2.6 18 % 7th consecutive quarter Market Share (Pct) 8.9 % 7.6 % (1.3) ppts 8.9 % 8.3 % (0.6) ppts • South America market share Brazil 10.0 % 8.6 % (1.4) ppts 9.6 % 9.2 % (0.4) ppts lower in all major markets Wholesales (000) 107 89 (17) % 373 365 (2) % except Peru Revenue (Bils) $ 1.7 $ 1.2 (28) % $ 5.8 $ 5.3 (9) % • Volume decline driven by EBIT (Mils) $ (189) $ (199) $ (10) $ (753) $ (678) $ 75 Argentina EBIT Margin (Pct) (11.1) % (16.4) % (5.3) ppts (12.9) % (12.8) % 0.1 ppts • Revenue decline due to weaker currencies Following the Ka freshening, Ka hatchback was the 2nd-best seller in Brazil 27


 
South America 4Q 2018 EBIT YoY Bridge (Mils) Commodities $ (74) Other Inflationary Cost (130) Cost Performance 125 • 4Q South America EBIT loss of $199M, about flat from year ago • Higher net pricing and favorable cost performance about offset by weaker currencies and inflationary effects, including higher commodities Exchange $(184) Other 12 Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $241 28


 
South America FY 2018 EBIT YoY Bridge (Mils) Commodities $(224) Other Inflationary Cost (407) Cost Performance 208 • FY South America EBIT loss of $678M improved $75M YoY • Higher net pricing and favorable Industry $ 76 cost performance about offset Other (15) by weaker currencies and inflationary effects, including higher commodities • Higher industry volume flows Exchange $(451) Other 67 through to improved EBIT loss Volume / Net 2017 Mix Pricing Cost Other 2018 Market Factors $882 29


 
Europe Key Metrics FOURTH QUARTER FULL YEAR • All 4Q Europe metrics lower 2017 2018 H / (L) 2017 2018 H / (L) YoY except market share which was unchanged SAAR (Mils) 21.2 19.6 (8) % 20.9 20.9 - % Market Share (Pct) 7.3 % 7.3 % - ppts 7.5 % 7.2 % (0.3) ppts • Europe SAAR down 8%, including Turkey down 50%, Wholesales* (000) 416 361 (13) % 1,582 1,533 (3) % resulting in lower volume and Revenue (Bils) $ 8.1 $ 7.4 (8) % $ 29.7 $ 31.3 6 % revenue EBIT (Mils) $ 89 $ (199) $ (288) $ 367 $ (398) $ (765) • Highest 4Q commercial vehicle EBIT Margin (Pct) 1.1 % (2.7) % (3.8) ppts 1.2 % (1.3) % (2.5) ppts market share since 1994 * Includes Ford brand vehicles produced and sold by our unconsolidated affiliate in Turkey (about 29,000 units in 4Q 2017 and 8,000 units in 4Q 2018). Revenue does not include these sales Ford was #1 in commercial vehicle market share for 2018 30


 
Europe 4Q 2018 EBIT YoY Bridge (Mils) • 4Q Europe EBIT loss at $199M – an EBIT decline of $288M YoY Industry $(73) Share 62 • Decline due mainly to higher Stocks (69) Net Product $(75) Mix 84 Other Contribution Cost (157) cost, adverse exchange and Structural Cost (40) Other (71) lower industry volume; higher net pricing a partial offset Exchange $(89) Parts & Accessories (29) Other (50) Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $152 31


 
Europe FY 2018 EBIT YoY Bridge (Mils) Net Product $(441) Commodities (206) Other Cost (123) • FY Europe EBIT loss at $398M, a decline YoY of $765M • Market factors up YoY, the most since 2015, driven by new product, but insufficient to counter higher net product cost, Industry $ (28) including regulatory-related, Share 37 Stocks 52 commodity cost and adverse Mix / Other (360) exchange, primarily sterling Exchange $(418) Other (194) Volume / Net 2017 Mix Pricing Cost Other 2018 Market Factors $617 32


 
Middle East & Africa Key Metrics • 4Q MEA top-line metrics lower FOURTH QUARTER FULL YEAR YoY; EBIT and EBIT margin 2017 2018 H / (L) 2017 2018 H / (L) higher SAAR (Mils) 3.7 3.9 5 % 3.6 3.8 6 % • MEA SAAR up 5%, though down 9% in markets where we Market Share (Pct) 4.3 % 3.0 % (1.3) ppts 3.8 % 3.0 % (0.8) ppts participate Wholesales (000) 35 32 (9) % 119 109 (8) % • Market share lower in most Revenue (Bils) $ 0.8 $ 0.7 (12) % $ 2.6 $ 2.7 2 % major markets; key driver of EBIT (Mils) $ (66) $ (49) $ 17 $ (246) $ (7) $ 239 lower volume EBIT Margin (Pct) (8.3) % (7.0) % 1.3 ppts (9.3) % (0.3) % 9.0 ppts • Revenue down because of lower volume Launched mobility and future transportation workshop for young entrepreneurs as part of Henry Ford Entrepreneurship Academy in Dubai 33


 
Middle East & Africa 4Q 2018 EBIT YoY Bridge (Mils) • 4Q MEA EBIT loss of $49M, improved $17M YoY due to lower cost Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $4 34


 
Middle East & Africa FY 2018 EBIT YoY Bridge (Mils) • FY MEA EBIT about breakeven, up $239M YoY with improvements in all factors Volume / Net 2017 Mix Pricing Cost Other 2018 Market Factors $101 35


 
Asia Pacific Key Metrics FOURTH QUARTER FULL YEAR • All 4Q Asia Pacific metrics 2017 2018 H / (L) 2017 2018 H / (L) down YoY driven by China SAAR (Mils) 48.2 41.4 (14) % 44.8 43.5 (3) % • Revenue decline of 5% driven China 31.4 24.4 (22) % 28.2 26.2 (7) % by exchange and lower volume Market Share (Pct) 3.4 % 2.2 % (1.2) ppts 3.4 % 2.5 % (0.9) ppts China 4.0 % 2.3 % (1.7) ppts 4.2 % 2.9 % (1.3) ppts • Asia Pacific market share lower Wholesales* (000) 452 254 (44) % 1,566 1,055 (33) % due to China performance Revenue (Bils) $ 3.8 $ 3.6 (5) % $ 14.1 $ 12.4 (12) % • Lower volume driven by China EBIT (Mils) $ 30 $ (381) $ (411) $ 659 $ (1,102) $ (1,761) JVs EBIT Margin (Pct) 0.8 % (10.7) % (11.5) ppts 4.7 % (8.9) % (13.6) ppts China Unconsolidated Affiliates Wholesales (000) 341 147 (57) % 1,132 651 (42) % Ford Equity Income (Mils) $ 206 $ (213) (203) % $ 916 $ (110) (112) % Net Income Margin (Pct) 8.3 % (22.4) % (30.7) ppts 10.9 % (1.9) % (12.8) ppts * Includes Ford brand and Jiangling Motors Corporation (JMC) brand vehicles produced and sold in China by our unconsolidated affiliates. Revenue does not include these sales Lincoln China launched the new Nautilus and MKC and introduced the brand’s Quiet Flight DNA 36


 
Asia Pacific 4Q 2018 EBIT YoY Bridge (Mils) China JVs $(419) JV Royalties (89) Exchange / Other 6 • 4Q Asia Pacific EBIT at $381M loss, down $411M YoY – China down $515M with Other Asia Pacific up $104M • Lower China result due entirely to Contribution Cost $53 lower JV equity income and lower Structural Cost 96 royalties driven by lower JV volume • China JVs equity income at loss of $213M, down $419M Volume / Net 4Q 2017 Mix Pricing Cost Other 4Q 2018 Market Factors $(58) 37


 
China 4Q 2018 EBIT YoY Bridge (Mils) • 4Q China EBIT loss at $534M – $213M at JVs and $321M at consolidated operations • China EBIT YoY decline of $515M driven by China JVs – mainly lower volume and net pricing – and lower royalty income because of the lower JV volume Net Equity Income $(419) Royalties (104) • Other Asia Pacific EBIT at Volume / Net $153M, up $104M due to lower 4Q 2017 Mix Pricing Cost JVs Other 4Q 2018 cost Market Factors $(79) Other AP $49 $(14) $36 $116 $20 $(54) $153 38


 
Asia Pacific FY 2018 EBIT YoY Bridge (Mils) • FY Asia Pacific EBIT loss at Industry $ (22) Share (142) $1.1B, down $1.8B YoY – Stocks (261) $1.7B in China and $0.1B in Mix 70 Other (4) Other Asia Pacific Exchange $ (199) China JVs (1,025) JV Royalties (204) • China EBIT decline due to lower Other 98 JV equity income, unfavorable volume and lower net pricing for Explorer and Lincoln imports and lower royalties driven by lower JV volume Contribution Cost $ 57 Structural Cost 121 • China JVs equity income at loss of $110M, down $1B • Lower Other Asia Pacific EBIT Volume / Net due to unfavorable exchange, 2017 Mix Pricing Cost Other 2018 primarily Thai baht and Australian dollar Market Factors $(609) 39


 
China FY 2018 EBIT YoY Bridge (Mils) • FY China EBIT loss at $1.5B – $110M at JVs and $1.4B at consolidated operations • China EBIT YoY decline of $1.7B largely due to China JVs – mainly lower volume and net pricing • Consolidated China EBIT decline due to lower volume and net pricing for Explorer and Lincoln imports and lower royalties Net Equity Income $(1,025) Royalties (266) driven by lower JV volume Volume / Net 2017 Mix Pricing Cost JVs Other 2018 • Other Asia Pacific EBIT at $444M, down $63M due to Market Factors unfavorable exchange $(498) Other AP $507 $(146) $35 $106 $62 $(120) $444 40


 
Mobility Key Metrics And 4Q 2018 EBIT YoY Bridge (Mils) Key Metrics FOURTH QUARTER FULL YEAR 2017 2018 H / (L) 2017 2018 H / (L) EBIT (Mils) $ (100) $ (195) $ (95) $ (299) $ (674) $ (375) • 4Q Mobility EBIT loss of $195M, down $95M due to increased investment for mobility services 4Q 2018 EBIT YoY Bridge and AV business development Ford Smart Autonomous 4Q 2017 Mobility Vehicles 4Q 2018 41


 
Mobility FY 2018 EBIT YoY Bridge (Mils) • FY Mobility EBIT loss at $674M, down $375M due to increased investment for AV business development and mobility services Ford Smart Autonomous 2017 Mobility Vehicles 2018 42


 
Ford Credit 4Q 2018 EBT YoY Bridge (Mils) Supplemental Depreciation $129 Residual Losses (38) • 4Q Ford Credit EBT at $663M, up $53M YoY driven by favorable lease residual performance and volume and mix Volume / Financing Credit Lease 4Q 2017 Mix Margin Loss Residual Exchange Other 4Q 2018 43


 
Ford Credit FY 2018 EBT YoY Bridge (Mils) • FY Ford Credit EBT at $2.6B, up $317M YoY; reflects favorable lease residual Supplemental Depreciation $193 Residual Losses 127 performance, driven by higher auction values, and volume and mix DMV $(175) Operating Costs & Other (69) • Other primarily reflects unfavorable derivatives market valuation Volume / Financing Credit Lease 2017 Mix Margin Loss Residual Exchange Other 2018 44


 
Ford Credit U.S. Automotive Financing Trends Lease Share of Retail Sales (Pct) Lease Return Vol. (000) and Auction Values** Ford Credit Industry* 36-Month Return Volume $18,295 $18,785 $17,830 $17,865 $17,505 $17,440 31% 30% 28% 28% 29% 29% • 4Q lease share flat sequentially 71 71 71 70 61 68 and below industry reflecting Ford sales mix 23% 23% 21% 21% 19% 17% • Expect 2019 FY average 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 auction values to be about 4% lower YoY at constant mix Retail and Lease Repossession Ratio (Pct) Retail and Lease Charge-Offs (Mils) and Severity (000) and LTR Ratio (Pct) • Strong loss metrics reflect Repo Ratio Severity LTR Charge-Offs healthy consumer credit 0.60% 1.22% 0.53% 0.51% 0.55% 1.12% 1.16% 0.36% 0.44% conditions 1.00% 1.07% 1.07% $109 $95 $106 $93 $83 $10.2 $10.3 $10.0 $10.3 $66 $9.8 $9.5 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 * Source: J.D. Power PIN ** At 4Q 2018 mix 45


 
Company Cash Flow (Bils) FOURTH QUARTER FULL YEAR 2017 2018 2017 2018 Company Adjusted EBIT* $ 2.0 $ 1.5 $ 9.6 $ 7.0 Excluding: Ford Credit EBT (0.6) (0.7) (2.3) (2.6) Subtotal $ 1.4 $ 0.8 $ 7.3 $ 4.4 Capital spending $ (2.1) $ (2.1) $ (7.0) $ (7.7) • 4Q and FY Company adj. Depreciation and tooling amortization 1.3 1.4 5.0 5.4 operating cash flow positive Net spending $ (0.8) $ (0.7) $ (2.0) $ (2.4) driven by EBIT and Ford Credit distributions Changes in working capital 0.9 0.4 - (0.9) Ford Credit distributions - 0.7 0.4 2.7 • FY global funded pension All other and timing differences 0.7 0.3 (1.5) (1.1) Company adjusted operating cash flow* $ 2.2 $ 1.5 $ 4.2 $ 2.8 contributions of $0.4B Separation payments (0.2) (0.1) (0.3) (0.2) • FY shareholder distributions of Other transactions with Ford Credit - - (0.1) (0.2) $3.1B Other, including acquisitions and divestitures (0.2) - (0.2) (0.5) Cash flow before other actions $ 1.8 $ 1.4 $ 3.6 $ 1.9 Changes in debt (0.2) (1.2) (0.4) (1.8) Funded pension contributions (0.7) (0.2) (1.4) (0.4) Shareholder distributions (0.6) (0.6) (2.7) (3.1) Change in cash $ 0.3 $ (0.6) $ (1.0) $ (3.4) * See Appendix for reconciliation to GAAP and definitions 46


 
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. 47


 
APPENDIX ADDITIONAL MATERIALS Special Items A1 2018 Results A2 2017 Results A3 Revised Reporting – Adjusted ROIC A4 Shareholder Distributions A5 RECONCILIATIONS TO GAAP Adjusted EBIT A6 Adjusted Operating Cash Flow A7 Adjusted Operating Cash Flow – Trailing 5 Quarters A8 Adjusted Earnings Per Share A9 Adjusted Effective Tax Rate A10 Adjusted Debt / EBITDA A11 Ford Credit Managed Receivables A12 Ford Credit Managed Leverage A13 OTHER Employment Data A14 Pension Update A15 Non-GAAP Financial Measures A16 - A18 Definitions and Calculations A19


 
Company Special Items (Mils) 4Q FY 2017 2018 2017 2018 Pension and OPEB gain / (loss) Year end net pension and OPEB remeasurement $ (162) $ (877) $ (162) $ (877) Other pension remeasurement - - - 26 Pension curtailment 354 - 354 15 Total Pension and OPEB gain / (loss) $ 192 $ (877) $ 192 $ (836) Separation-related actions $ (38) $ (262) $ (297) $ (537) Other Items San Luis Potosi plant cancellation $ - $ - $ 41 $ - Next-generation Focus footprint change (2) - (225) (9) Focus Active cancellation - - - (7) Chariot closure - (40) - (40) Total Other Items $ (2) $ (40) $ (184) $ (56) Total pre-tax special items $ 152 $ (1,179) $ (289) $ (1,429) Tax special items $ 819 $ (141) $ 897 $ (88) A149


 
2018 Results (Mils) 2018 1Q 2Q 3Q 4Q Full Year North America $ 1,935 $ 1,753 $ 1,960 $ 1,959 $ 7,607 South America (149) (178) (152) (199) (678) Europe 119 (73) (245) (199) (398) Middle East & Africa (54) 49 47 (49) (7) Asia Pacific (119) (394) (208) (381) (1,102) Automotive $ 1,732 $ 1,157 $ 1,402 $ 1,131 $ 5,422 Mobility (102) (181) (196) (195) (674) Ford Credit 641 645 678 663 2,627 Corporate Other (86) 71 (216) (142) (373) Adjusted EBIT $ 2,185 $ 1,692 $ 1,668 $ 1,457 $ 7,002 Interest on Debt (289) (301) (343) (295) (1,228) Special Items Pre-Tax 23 (42) (231) (1,179) (1,429) Taxes (174) (280) (101) (95) (650) Less: Non-Controlling Interests 9 3 2 4 18 Net Income Attributable to Ford $ 1,736 $ 1,066 $ 991 $ (116) $ 3,677 Company Adjusted Operating Cash Flow (Bils) $ 3.0 $ (1.8) $ 0.1 $ 1.5 $ 2.8 Revenue (Bils) 42.0 38.9 37.6 41.8 160.3 Automotive Operating Margin (Pct) 4.4 % 3.2 % 4.0 % 2.9 % 3.7 % Company Adjusted EBIT Margin (Pct) 5.2 4.3 4.4 3.5 4.4 Net Income Margin (Pct) 4.1 2.7 2.6 (0.3) 2.3 Adjusted EPS – Diluted $ 0.43 $ 0.27 $ 0.29 $ 0.30 $ 1.30 EPS (GAAP) – Diluted 0.43 0.27 0.25 (0.03) 0.92 China EBIT $ (150) $ (483) $ (378) $ (534) $ (1,545) Other AP EBIT 31 89 170 153 444 A250


 
2017 Results (Mils) 2017 1Q 2Q 3Q 4Q Full Year North America $ 2,130 $ 2,332 $ 1,824 $ 1,771 $ 8,057 South America (237) (177) (150) (189) (753) Europe 209 122 (53) 89 367 Middle East & Africa (75) (49) (56) (66) (246) Asia Pacific 148 167 314 30 659 Automotive $ 2,175 $ 2,395 $ 1,879 $ 1,635 $ 8,084 Mobility (64) (63) (72) (100) (299) Ford Credit 481 619 600 610 2,310 Corporate Other (72) (146) (122) (117) (457) Adjusted EBIT $ 2,520 $ 2,805 $ 2,285 $ 2,028 $ 9,638 Interest on Debt (293) (291) (298) (308) (1,190) Special Items Pre-Tax 24 (248) (217) 152 (289) Taxes (652) (211) (191) 652 (402) Less: Non-Controlling Interests 7 8 7 4 26 Net Income Attributable to Ford $ 1,592 $ 2,047 $ 1,572 $ 2,520 $ 7,731 Company Adjusted Operating Cash Flow (Bils) $ 2.0 $ 1.3 $ (1.3) $ 2.2 $ 4.2 Revenue (Bils) 39.1 39.9 36.5 41.3 156.8 Automotive EBIT Margin (Pct) 6.0 % 6.5 % 5.6 % 4.3 % 5.6 Company Adjusted EBIT Margin (Pct) 6.4 7.0 6.3 4.9 6.1 Net Income Margin (Pct) 4.1 5.1 4.3 6.1 4.9 Adjusted EPS – Diluted $ 0.40 $ 0.56 $ 0.44 $ 0.39 $ 1.78 EPS (GAAP) – Diluted 0.40 0.51 0.39 0.63 1.93 China EBIT $ 47 $ 23 $ 102 $ (20) $ 152 A351


 
Adjusted ROIC (Bils) 2014 2015 2016 2017 2018 Adjusted Net Operating Profit After Cash Tax Net income attributable to Ford $ 1.3 $ 7.3 $ 4.6 $ 7.7 $ 3.7 Add: Non-controlling interest (0.0) (0.0) 0.0 0.0 0.0 Less: Income tax (0.0) (2.9) (2.2) (0.4) (0.7) Add: Cash tax (0.5) (0.6) (0.7) (0.6) (0.8) Less: Interest on debt (0.9) (0.8) (1.0) (1.2) (1.2) Less: Total pension / OPEB income / (cost) (4.4) (0.5) (2.7) 0.6 (0.4) Add: Pension / OPEB service costs (1.0) (1.2) (1.0) (1.1) (1.2) Net operating profit after cash tax $ 5.1 $ 9.8 $ 8.6 $ 7.0 $ 4.0 Less: Special items (excl. pension / OPEB) pre-tax (1.9) 0.2 (0.6) (0.5) (0.6) Adj. net operating profit after cash tax $ 7.0 $ 9.6 $ 9.2 $ 7.5 $ 4.6 Invested Capital Equity $ 25.1 $ 29.2 $ 29.7 $ 35.6 $ 36.0 Redeemable non-controlling interest 0.3 0.1 0.1 0.1 0.1 Debt (excl. Ford Credit) 14.5 13.4 16.5 16.5 14.1 Net pension and OPEB liability 16.2 13.9 14.7 12.8 11.9 Invested capital (end of period) $ 56.1 $ 56.6 $ 61.1 $ 65.0 $ 62.1 Average invested capital $ 57.2 $ 55.6 $ 58.5 $ 63.4 $ 64.0 Adjusted ROIC (Non-GAAP)* 12.3% 17.3% 15.7% 11.8% 7.1% * Calculated as the sum of adjusted net operating profit after cash tax from the last four quarters, divided by the average invested capital over the last four quarters A452


 
Shareholder Distributions (Bils) Supplemental Dividend $18.4 Anti-Dilutive Share Repurchases Regular Dividends $1.7 $2.9 • 2018 total shareholder distributions of $3.1B • Declared 2019 first quarter regular dividend of 15¢ per share $13.8 $3.5 $2.7 $3.1 $2.3 $1.0 $0.6 $2.4 $1.7 $2.4 $2.4 Average 2016 2017 2018 2012 - 2018 2012 - 2015 A553


 
Company Net Income Reconciliation To Adjusted EBIT (Mils) 4Q FY 2017 2018 2017 2018 Net income / (Loss) attributable to Ford (GAAP) $ 2,520 $ (116) $ 7,731 $ 3,677 Income / (Loss) attributable to non-controlling interests 4 4 26 18 Net income / (Loss) $ 2,524 $ (112) $ 7,757 $ 3,695 Less: (Provision for) / Benefit from income taxes 652 (95) (402) (650) Income / (Loss) before income taxes $ 1,872 $ (17) $ 8,159 $ 4,345 Less: Special items pre-tax 152 (1,179) (289) (1,429) Income / (Loss) before special items pre-tax $ 1,720 $ 1,162 $ 8,448 $ 5,774 Less: Interest on debt (308) (295) (1,190) (1,228) Adjusted EBIT (Non-GAAP) $ 2,028 $ 1,457 $ 9,638 $ 7,002 Memo: Revenue (Bils) $ 41.3 $ 41.8 $ 156.8 $ 160.3 Net income margin (GAAP) (Pct) 6.1% (0.3)% 4.9% 2.3% Adjusted EBIT Margin (Pct) 4.9% 3.5% 6.1% 4.4% A654


 
Net Cash Provided By / (Used In) Operating Activities Reconciliation To Company Adjusted Operating Cash Flow (Mils) 4Q FY 2017 2018 2017 2018 Net cash provided by / (used in) operating activities (GAAP) $ 3,147 $ 1,357 $ 18,096 $ 15,022 Less: Items not included in Company Adjusted Operating Cash Flows Ford Credit operating cash flows (174) (1,232) 9,300 8,171 Funded pension contributions (714) (153) (1,434) (437) Separation payments (181) (117) (281) (179) Other, net (25) (21) (52) 65 Add: Items included in Company Adjusted Operating Cash Flows Automotive and Mobility capital spending (2,103) (2,102) (7,004) (7,737) Ford Credit distributions - 660 406 2,723 Settlement of derivatives 107 70 217 132 Pivotal conversion to a marketable security - - - 263 Company adjusted operating cash flow (Non-GAAP) $ 2,244 $ 1,507 $ 4,182 $ 2,781 A7A1055


 
Reconciliation To Company Adjusted Operating Cash Flow Trailing Five Quarters (Mils) 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Net cash provided by / (Used in) operating activities (GAAP) $ 3,147 $ 3,514 $ 4,972 $ 5,179 $1,357 Less: Items Not Included in Company Adjusted Operating Cash Flows Ford Credit operating cash flows (174) (315) 5,907 3,811 (1,232) Funded pension contributions (714) (88) (72) (123) (153) Separation payments (181) (16) (18) (28) (117) Other, net (25) 53 (112) 146 (21) Add: Items Included in Company Adjusted Operating Cash Flows Automotive and Mobility capital spending (2,103) (1,769) (1,898) (1,968) (2,102) Ford Credit distributions - 1,013 450 600 660 Settlement of derivatives 107 (161) 114 109 70 Pivotal conversion to a marketable security - - 263 - - Company adjusted operating cash flow (Non-GAAP) $ 2,244 $ 2,963 $ (1,804) $ 115 $ 1,507 Cash Conversion Calculation Company Adj. operating cash flow (Non-GAAP) (sum of Trailing Four Qtrs) $ 4,182 $ 2,781 Adj. EBIT (Non-GAAP) (sum of Trailing Four Qtrs) $ 9,638 $ 7,002 Adj. cash conversion (Non-GAAP) (Trailing Four Qtrs)* 43% 40% * Most comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities divided by Net Income Attributable to Ford is equivalent to 234% in 2017 and 409% in 2018 A856


 
Company Earnings Per Share Reconciliation To Adjusted Earnings Per Share 4Q FY 2017 2018 2017 2018 Diluted After-Tax Results (Mils) Diluted after-tax results (GAAP) $ 2,520 $ (116) $ 7,731 $ 3,677 Less: Impact of pre-tax and tax special items 971 (1,320) 608 (1,517) Adjusted net income – diluted (Non-GAAP) $ 1,549 $ 1,204 $ 7,123 $ 5,194 Basic and Diluted Shares (Mils) Basic shares (average shares outstanding) 3,973 3,970 3,975 3,974 Net dilutive options, unvested restricted stock units and restricted stock 27 27 23 24 Diluted shares 4,000 3,997 3,998 3,998 Earnings per share – diluted (GAAP)* $ 0.63 $ (0.03) $ 1.93 $ 0.92 Less: Net impact of adjustments 0.24 (0.33) 0.15 (0.38) Adjusted earnings per share – diluted (Non-GAAP) $ 0.39 $ 0.30 $ 1.78 $ 1.30 * The 2018 fourth quarter calculation of Earnings Per Share - Diluted (GAAP) excludes the 27 million shares of net dilutive options, unvested restricted stock units and restricted stock due to their antidilutive effect A957


 
Company Effective Tax Rate Reconciliation To Adjusted Effective Tax Rate 2018 Memo: 4Q FY FY 2017 Pre-Tax Results (Mils) Income / (Loss) before income taxes (GAAP) $ (17) $ 4,345 $ 8,159 Less: Impact of special items (1,179) (1,429) (289) Adjusted earnings before taxes (Non-GAAP) $ 1,162 $ 5,774 $ 8,448 Taxes (Mils) (Provision for) / Benefit from income taxes (GAAP) $ (95) $ (650) $ (402) Less: Impact of special items (141) (88) 897 Adjusted (provision for) / benefit from income taxes (Non-GAAP) $ 46 $ (562) $ (1,299) Tax Rate (Pct) Effective tax rate (GAAP) (558.8)% 15.0% 4.9% Adjusted effective tax rate (Non-GAAP) (4.0)% 9.7% 15.4% A1058


 
Adjusted Debt / EBITDA Reconciliation 2017 2018 Adjusted Debt Debt (excl. Ford Credit) $ 16,530 $ 14,147 Add: Unamortized discount & issuance costs 394 316 Add: Operating Lease Adjustment 1,406 1,447 Add: Net pension liability excl. prepaid assets 10,161 9,627 Adjusted Debt $ 28,491 $ 25,537 EBITDA Company adjusted EBIT $ 9,638 $ 7,002 Less: Ford Credit EBT 2,310 2,627 Pension adjustment Interest cost 2,196 2,150 Expected return on assets (4,109) (4,182) Amortization of prior year service costs 180 168 Separation programs/other 92 156 Settlements and curtailments (non-special) (3) (2) Pension adjustment (1,644) (1,710) Add: Depreciation and tooling amortization (excl. Ford Credit) 4,963 5,384 Add: Operating Lease Expense 526 552 Adjusted EBITDA $ 11,173 $ 8,601 Adjusted Debt to EBITDA (Non-GAAP) 2.5x 3.0x A1159


 
Ford Credit Total Net Receivables Reconciliation To Managed Receivables (Bils) 2016 2017 2018 Dec 31 Dec 31 Dec 31 Ford Credit finance receivables, net (GAAP)* $ 96.2 $ 108.4 $ 109.9 Net investment in operating leases (GAAP)* 27.2 26.7 27.4 Consolidating adjustments** 6.8 7.6 8.9 Total net receivables $ 130.2 $ 142.7 $ 146.3 Ford Credit unearned interest supplements and residual support 5.3 6.1 6.8 Allowance for credit losses 0.5 0.7 0.7 Other, primarily accumulated supplemental depreciation 0.9 1.0 1.1 Total managed receivables (Non-GAAP) $ 136.9 $ 150.5 $ 154.9 * 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 ** Primarily includes Automotive segment receivables purchased by Ford Credit which are classified to Trade and other receivables on our consolidated balance sheet. Also includes eliminations of intersegment transactions A1260


 
Ford Credit Financial Statement Leverage Reconciliation To Managed Leverage (Bils) 2016 2017 2018 Dec 31 Dec 31 Dec 31 Leverage Calculation Total debt* $ 126.5 $ 137.8 $ 140.1 Adjustments for cash** (10.8) (11.8) (10.2) Adjustments for derivative accounting*** (0.3) - 0.2 Total adjusted debt $ 115.4 $ 126.0 $ 130.1 Equity**** $ 12.8 $ 15.9 $ 15.0 Adjustments for derivative accounting*** (0.3) (0.1) (0.2) Total adjusted equity $ 12.5 $ 15.8 $ 14.8 Financial statement leverage (to 1) (GAAP) 9.9 8.7 9.4 Managed leverage (to 1) (Non-GAAP) 9.2 8.0 8.8 * Includes debt issued in securitization transactions 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 ** Cash and cash equivalents, and Marketable securities reported on Ford Credit’s balance sheet, excluding amounts related to insurance activities *** Related primarily to market valuation adjustments to derivatives due to movements in interest rates. Adjustments to debt are related to designated fair value hedges and adjustments to equity are related to retained earnings **** Total shareholder’s interest reported on Ford Credit’s balance sheet A1361


 
Employment Data* (000s) 2017 2018 Dec 31 Dec 31 North America 100 100 South America 14 12 Europe 54 53 Middle East & Africa 3 4 Asia Pacific 23 22 Total Automotive 194 191 Ford Credit 7 7 Mobility 1 1 Total Company 202 199 * Employment data includes the approximate number of individuals employed by consolidated entities A1462


 
Pension Update 2018 B / (W) 2017 2018 2017 Pension Funded Status (Bils) U.S. Plans $ (2.2) $ (2.5) $ (0.3) Non-U.S. Plans (4.4) (3.8) 0.6 Total Global Pension $ (6.6) $ (6.3) $ 0.3 • Underfunded status of pension plans at $6.3B; improved $0.3B Year-End Discount Rate (Weighted Average) versus a year ago U.S. plans 3.60 % 4.29 % 0.69 ppts Non-U.S. plans 2.33 2.48 0.15 • Funded plans remain fully Actual Asset Returns funded in aggregate U.S. plans 13.40 % (3.72) % (17.12) ppts Non-U.S. plans 4.50 (0.1) (4.60) • Expect 2019 funded pension plan contributions to be about Pension − Funded Plans Only (Bils) Funded Status $ (0.1) $ (0.3) $ (0.2) $650M Contributions for Funded Plans $ 1.4 $ 0.4 $ 1.0 Pension plan (expense) / income* (Bils) $ 0.6 $ 0.7 $ 0.1 Total Pension & OPEB Special items** (Bils) $ 0.2 $ (0.8) $ (1.0) * Excludes all pension-related special items, primarily remeasurement ** Excludes special separation-related actions A1563


 
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 our 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 EBIT (Most Comparable GAAP Measure: Net income attributable to Ford) – Earnings before interest and taxes (EBIT) includes non-controlling interests and excludes interest on debt (excl. Ford Credit Debt), taxes and pre-tax special items. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results aligned with industry reporting. Pre-tax special items consist of (i) pension and OPEB remeasurement gains and losses, (ii) significant personnel and dealer-related costs stemming from 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 EBIT, 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. • Company Adjusted EBIT Margin (Most Comparable GAAP Measure: Company Net Income Margin) – Company Adjusted EBIT margin is Company adjusted EBIT divided by Company revenue. This non-GAAP measure is useful to management and investors because it allows users to evaluate our operating results aligned with industry reporting. • Adjusted Earnings Per Share (Most Comparable GAAP Measure: Earnings Per Share) – Measure of Company’s diluted net earnings per share adjusted for impact of pre-tax special items (described above), and tax special items. The measure provides investors with useful information to evaluate performance of our business excluding items not indicative of underlying run rate of our business. When we provide guidance for adjusted earnings per share, we do not provide guidance on an earnings per share 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. • Adjusted Effective Tax Rate (Most Comparable GAAP Measure: Effective Tax Rate) – Measure of Company’s tax rate excluding pre-tax special items (described above) and tax special items. The measure provides an ongoing effective rate which investors find useful for historical comparisons and for forecasting. When we provide guidance for adjusted effective tax rate, we do not provide guidance on an effective tax rate 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. A1664


 
Non-GAAP Financial Measures That Supplement GAAP Measures • Company Adjusted Operating Cash Flow (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities) – Measure of Company’s operating cash flow excluding Ford Credit’s operating cash flows. The measure contains elements management considers operating activities, including Automotive and Mobility capital spending, Ford Credit distributions to its parent, and settlement of derivatives. The measure excludes cash outflows for funded pension contributions, separation payments, and other items that are considered operating cash outflows under U.S. GAAP. This measure is useful to management and investors because it is consistent with management’s assessment of the Company’s operating cash flow performance. When we provide guidance for Company adjusted operating cash flow, we do not provide guidance for net cash provided by/(used in) operating activities because the GAAP measure will include items that are difficult to quantify or predict with reasonable certainty, including cash flows related to the Company's exposures to foreign currency exchange rates and certain commodity prices (separate from any related hedges), Ford Credit's operating cash flows, and cash flows related to special items, including separation payments, each of which individually or in the aggregate could have a significant impact to our net cash provided by/(used in) our operating activities. • Adjusted Cash Conversion (Most Comparable GAAP Measure: Net Cash Provided By / (Used In) Operating Activities divided by Net Income Attributable to Ford) – Company Adjusted Cash Conversion is Company adjusted operating cash flow divided by Adjusted EBIT. This non-GAAP measure is useful to management and investors because it allows users to evaluate how much of Ford's Adjusted EBIT is converted into cash flow. • Adjusted Debt to EBITDA (Most Comparable GAAP Measure: Total Company Debt to Net income attributable to Ford) – This financial leverage ratio is commonly used to assess a company’s ability to repay its debt. This measure is useful to management and investors because it helps to assess how long we would need to operate at our current level to repay our debt (excl. Ford Credit’s debt). For more information, see the definitions of Adjusted Debt and Adjusted EBITDA. • Adjusted Debt (Most Comparable GAAP Measure: Total Company Debt) – Measure of total company debt (excl. Ford Credit), adjusted to include unamortized discount/premium and issuance costs (excl. Ford Credit), operating lease minimum commitments, and net pension liabilities excluding prepaid assets. This measure is useful to management and investors as it approximates the total liabilities of the company excluding Ford Credit. • Adjusted EBITDA (Most Comparable GAAP Measure: Net income attributable to Ford) – Measure of Company Adjusted EBIT (see definition), excluding Ford Credit EBT, and further adjusted to include depreciation and tooling amortization (excl. Ford Credit), operating lease expense, and certain pension costs. This measure is useful to management and investors as it approximates the cash flow available to repay our debt (excl. Ford Credit’s debt). • Adjusted ROIC – This calculation provides management and investors with useful information to evaluate the Company’s after-cash tax operating return on its invested capital for the period presented. Adjusted net operating profit after cash tax measures operating results less special items, interest on debt (excl. Ford Credit Debt), and certain pension/OPEB costs. Average invested capital is the sum of average balance sheet equity, debt (excl. Ford Credit Debt), and net pension/OPEB liability. A1765


 
Non-GAAP Financial Measures That Supplement GAAP Measures • 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 obligations as they mature, so the interim effects of changes in market interest rates are excluded in the calculation of managed leverage. A1866


 
Definitions And Calculations Automotive Records • References to Automotive records for EBIT margin and business units are since at least 2009 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 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 Company Cash • Company cash includes cash, cash equivalents, marketable securities and restricted cash; excludes Ford Credit’s cash, cash equivalents, marketable securities and restricted cash Market Factors • Volume and Mix – primarily measures EBIT 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 EBIT 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 EBIT 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 • Market Factors exclude the impact of unconsolidated affiliate wholesales ROE • Reflects an annualized return on equity. This metric is calculated by taking net income for the period divided by average equity for the period and annualizing the result by dividing by the number of days in the quarter and multiplying by 365. Earnings Before Taxes (EBT) • Reflects Income before income taxes Note: Calculated results may not sum due to rounding A1967


 

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