J.P. Morgan Conference

[Pages:26]J.P. Morgan Conference

Hau Thai-Tang Executive Vice President Product Development and Purchasing, Ford Motor Company

Our Belief

Our Aspiration

Our Plan

Smart Choices for Value Creation

Freedom of movement drives human progress.

To become the world's most trusted mobility company, designing smart vehicles for a smart world.

Passion for Product & Deep Customer Insight

Winning Portfolio

Propulsion Choices

Autonomous Technology

Mobility Experiences

Fitness

Operating Leverage Build, Partner, Buy Capital Efficiency Strong Balance Sheet

Metrics

Growth EBIT Margin

ROIC Cash Flow

Our People

Culture & Values

2

Focusing Capital On High-Margin, High-Growth Businesses

Circle size = Actual 2017 +/- EBIT (Bils)

ROIC (%)

+

50%

40%

HIGHLY ACCRETIVE

150% of Company

EBIT

30% 20%

High Performing $14.5B

-

(15)%

(10)%

10%

Profitable $1B

Expense For

Future Growth (10)%

10%

+ EBIT

20% Margin

Low Performing $(4)B

HIGHLY DILUTIVE

(20)% (30)%

-

Note: All references to EBIT and EBIT Margin are on an adjusted basis

3

Shifting Spending To More Profitable Vehicles

60%

39%

37%

24%

2015 Plan

(2016 - 2020)

29%

11% 2018 Plan

(2019 - 2023)

Utilities

Trucks and Commercial Vehicles

Cars

4

Listening To Our Customers

CONNECTIVITY

EFFICIENCY

UTILITY

AFFORDABILITY

5

Leveraging Ford's Strengths

WORK

PERFORMANCE

ADVENTURE

HUMAN CONNECTION

6

Freshest Lineup In U.S. By 2020 Including New Silhouettes

AV E R AG E AG E O F P O R T F O L IO

(YEARS)

5.7 5.3

4.7 4.1

3.3

100%

FORD SHIFTING PORTFOLIO

COMMERCIAL VEHICLES

75%

PICKUP TRUCKS

50%

SUVs

2018

2019

2020

COMPETITOR Competitor

A

a

2020

COMPETITOR Competitor

B B

2020

25% 0%

CARS

7

Improving Operating Leverage

Material Cost $12B

$25.5B

Cost & Efficiencies

Identified

Engineering / Product Development

$7B

IT $0.2B

Manufacturing $1.3B

Marketing & Sales $5B

Cumulative Benefit Over 2018 - 2022 Plan Period Versus Original Planned Spend

8

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