playing to win ford europe - s22.q4cdn.com · 3 cautionary note on forward-looking statements...

Playing to Win

Ford EuropeMarch 22, 2019

2

Today’s Participants

Lynn Tyson: Executive Director, Investor Relations

Stuart Rowley: Chief Operating Officer, Ford North America

Hans Schep: General Manager, Commercial Vehicles, Ford Europe

Sarah-Jayne Williams: Director, Smart Mobility, Europe

Will Periam: Chief Financial Officer, Ford Europe

3

Cautionary Note On Forward-Looking StatementsStatements 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 th at could cause actual results to differ materially from those stated, including, without l imitation:

• Ford’s long-term competitiveness depends on the successful execution of fitness actions;

• Industry sales volume, particularly in the United States, Europe, or China, can be volatile and 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, including Brexit;

• 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 l iabilities could adversely affect Ford’s l iquidity 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;

• Ford may need to substantially modify its product plans to comply with safety, emissions, fuel economy, and other regulationsthat may change in the future;

• Ford could experience unusual or significant l itigation, 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 wil l 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, 2018, as updated by subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

4







5

Improving Ford’s Competitive Position And Profitability In Europe

• Ford of Europe has embarked

on a program to fundamentally

redesign our business and

reset near term performance

• Program was officially

launched on January 10, 2019.

Negotiations with Social

Partners are progressing well

• Future Operating Model will

focus on three distinct

business groups – Commercial

Vehicles, Passenger Vehicles

and Imports

6

• Future Operating Model will

focus on high-performing

business supported by

strong competitive position

and profit / return pillars –

Commercial Vehicles,

Utilities and select Imports

• Presently represents less

than 50% of Europe’s total

volume and revenue

• Low-performing business

principally Passenger cars

and Multi Activity Vehicles

New Operating Model Will Focus Capital On High-Margin, High-Growth Businesses

LowPerforming

High Performing>200% of

Europe’s EBIT

10% 20%

20%

60%

40%

(20)%

80%

(10)%(20)%

H I G H L Y D I L U T I V E

ROIC (%)

EBIT

Margin

+

- +

Circle size = 2017 +/- EBIT (Bils)

H I G H L Y A C C R E T I V E

-

Expense ForFuture Growth

Profitable

Note: References to EBIT and EBIT Margin include regional Ford Credit EBT

7







8

• Commercial Vehicle

customers are represented by

seven core roles, centered

around moving goods, moving

people and performing tasks

• Growing use case

differentiation leads to

increased requirement for

product tailoring

Diversity Of Commercial Vehicle Customer Types

• Parcel Delivery

• Furniture M over

• Daily Rental

• Finished Goods

• Carpet Fitting

• Rubbish

Clearance

• Equipment

Carrying

• Bulk

M aterials

• Catering

• Retail

Agents

• M inibus

• Taxi

• Crew Bus

• Shuttle

• Family Use

• Luxury Bus

• DCiV

• Film Crew Van

• Double CC

• Handyman Van

• Building Trades

• Equipment Repairs

• Drain Clearance

• Windscreen Repair

• Road M aintenance

• Police Van

• M obile Kitchen

• Surveillance Van

• Car Transporter

• Ambulance

• Campers

• Fire Rescue

• Tippers

• Ice Cream Van

• Snow Gritter

• Cherry Picker

9

2012 2013 2014 2015 2016 2017 2018

• Commercial Vehicle industry

has grown by 47% in the last

6 years

• Largest growth has been in

the Medium Commercial

Vehicle 1T and 2T, and Pickup

segments

• Ford segment share has

grown in each of these

segments

• Ford is leading in 1T Van and

Pickup segments

Strong CV Industry Growth

Transit /Tourneo Courier

Transit /Tourneo Connect

Fiesta Van

Transit /Tourneo Custom

Transit

Ranger

12%

20%

14%

29%

1.9M 1.9M2.0M

2.2M

2.5M2.7M

2.8M

FordSegment

SharePickups

Medium Commercial Vehicle – 2T

Medium Commercial Vehicle – 1T

Integrated Style Van

Heavy Commercial Vehicle

EU20 Industry Volume

10

• Our product and distribution

led strategy improved our

market position from seventh

in 2012 to market leadership

in 2015

• 2018 represented our sixth

consecutive year of market

share growth and our fourth

as the number one brand

• We plan to extend our

leadership position through a

continued focus on

Commercial Vehicles and

implementation of a

comprehensive CV strategy

Ford Strengthening Leadership Position

NEW PRODUCT DRIVES SHARE IMPROVEMENTCOMMERCIAL VEHICLE

STRATEGY IMPLEMENTATION

#7

#6

#3

#1#1#1

#1

EU20 Market Share (Pct.)

8.5%

10.0%

11.4%

12.6%13.2%

13.5%14.1%

2012 2014 20162013 20182015 2017

Share

Rank:

11

Ford Otosan• Manufacturing / engineering

Conversion Partnerships

VW Alliance

1 Tonne

Commercial Vehicle Strategy Continuing Profitable Growth

Ford Transit Centre Network Fleet services• Financing / leasing / insurance• Acquisition / re-marketing• Admin and compliance• Rental

Transit 24

• 100% uptime• E-check• Extended opening hours• Priority service• Roadside assistance

Connected services• Ford telematics• Ford data services• FordPass• Mobility services

2 Tonne

Pickup

B-Integrated Style Van

C-Integrated Style Van

Car Derived Van

950 Transit Centres

in Europe

PRODUCTS DISTRIBUTION PARTNERSHIPS / ALLIANCES SERVICES

12







SECRET 13

Our Mobility Solutions

Smart Vehicles For A Smart World

……

Integrated Serv ices

Smart Vehicles Smart WorldMobi l i ty Orchestrat ion

PAR K I N G S O L U T IO N S

F O R D PAS S

F O R D C O M M ER C IAL

S O L U T I O N S

THE TRANSPORTATION MOBILITY CLOUD™

C I T Y D AT A

S O L U T I O N S

A u t o n o m o u s T e c h n o l o g y

L AS T M I L E

D E L I VE R YU R B AN

E L E C T R I C

VAN

14

• Urbanisation is creating

significant challenges for

European cities

• Air quality is the number one

issue followed by congestion

• City Mayors are introducing

new legislation and policies

that impact our Commercial

Vehicle customers who

operate in urban areas

EU City Transport Strategies Tackle Air Quality Challenge

Media Headlines Capture Citizen Sentiment Examples of City Transport Plans

15

• Urban Electric Van pilot

demonstrates an innovative

solution that connects city

needs with our commercial

customers’ needs

• Project also highlights the

opportunity to create

integrated mobility solutions

by combining product and

service

Commercial Mobility Solutions: The Urban Electrified Van (UEV)

Pilots in Four Cities

WHAT:Providing our commercial customers with an UEV that gives range

assurance and not range anxiety

HOW:Transit Custom PHEV with UEV Services Ecosystem including

geofencing innovations. Working with Transport for London and

supported by U.K. government-funded Advanced Propulsion Centre

WHY:Enable compliant, clean and efficient commercial vehicles that can

operate in low emissions zones in urban environments

16

• Increased online orders

impacts air quality and

congestion challenges

• Cities, delivery companies and

consumers benefit from a

faster, cleaner more efficient

solution for the last mile

• Ford Mobility is piloting a last

mile delivery solution in

London using multi-modal

software to optimise deliveries

Commercial Mobility Solutions: Last Mile Delivery

Last Mile Delivery Pilot

Large U.K. Internet

Retailer

WHAT:Providing our commercial customers with an urban last mile solution

with the seamless connection of traditional van fleets with more

appropriate, specialist last mile vehicles

HOW: Multi-modal software platform and last mile courier

WHY: Enable faster, cleaner and more efficient deliveries in urban areas

17

• Ford Mobility has launched

connected services for our

Commercial Vehicle drivers

designed to simplify their

driving experience

• In 2Q, Ford Mobility will

launch the Ford Telematics

tool and vehicle data services

targeted to simplify fleet

ownership and management

Commercial Mobility Solutions: Connected Services For Fleet Managers And Drivers

Connected Services: Fleet Manager

Connected Services: Commercial Vehicle Driver

WHAT:Connected experiences for owners, drivers and fleet managers both

in and outside of the vehicles

HOW: Built in, brought in and beamed in connected services

WHY:To help our customers drive business productivity to make their

businesses’ thrive

18

• Combining vehicle data from

160 Light Commercial

Vehicles with city data with

insight and smart algorithms

• Potential to support cities with

transportation planning and

fleet managers to improve

safety

City Data Solutions

15,000+ days of vehicle

operation

500 million+ data records

1 million+ kilometers driven

10+ years of data collection

6+ years of engine-on time

WHAT:Analysis of smart vehicle data to assess road safety, fleet operations

re-timing, EV charging infrastructure and road traffic metrics

HOW:Connected 160 Light Commercial Vehicles running across London,

collected data, combined with city data sets, developed algorithms to

create insights and predictive models

WHY:To support transportation planning and provide fleet insights about

driving patterns

playing to win ford europe - s22.q4cdn.com · 3 cautionary note on forward-looking statements...

Documents