ford 2008 Q1 Financial Result

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Slide 1: FIRST QUARTER EARNINGS REVIEW APRIL 24, 2008 (PRELIMINARY RESULTS) Slide 2: BUSINESS OVERVIEW Alan Mulally President and Chief Executive Officer SLIDE 1 Slide 3: TOTAL COMPANY 2008 FIRST QUARTER FINANCIAL RESULTS First Quarter O / (U) 2008 2007 Wholesales (000)* Revenue (Bils.)* Continuing Operations* Pre-Tax Profits (Mils.) After-Tax Profits (Mils.) Earnings Per Share Special Items Pre-Tax (Mils.) Net Income After-Tax Profits (Mils.) Earnings Per Share Automotive Gross Cash (Bils.)** 1,531 $ 39.4 $ 736 525 0.20 $ (416) $ 100 0.05 $ 28.7 (119) $ (3.6) $ 669 697 0.29 $ (303) $ 382 0.20 $ (6.5) * Excludes special items, see Slide 8 and Appendix for reconciliations to GAAP Automotive Gross Cash includes cash and cash equivalents, net marketable securities, loaned securities, and for 2007 only, short-term Voluntary Employee Beneficiary Association (VEBA) assets SLIDE 2 Slide 4*: TOTAL COMPANY FIRST QUARTER 2008 OPERATIONS RESULTS / HIGHLIGHTS • Profitable quarter led by strong results at Ford Europe and Ford South America • Ford North America results improved by nearly $600 million compared with First Quarter 2007 • Ford Asia-Pacific Africa, Mazda and Ford Credit were profitable; Volvo incurred a loss • Reduced costs by $1.7 billion, including $1.2 billion in North America; on track to reach our cost reduction goal • Ford’s quality continues to improve across the globe -- North America improved 8%, putting Ford quality scores on par with Honda and Toyota * Profit and cost statements exclude special items; cost statements are at constant volume, mix and exchange SLIDE 3 Slide 5: TOTAL COMPANY ACHIEVING OUR PLAN -- KEY 1Q ACCOMPLISHMENTS • Continued progress as we aggressively restructure to operate profitably, accelerate product development, finance our plan and improve our balance sheet, and work together as one team • Further integration of our global Product Development and Purchasing functions • Introduced Ford Fiesta, our all-new global small car, at the Geneva Auto Show • Achieved agreement to reduce North American Ford and ACH hourly personnel by an additional 4,200 employees through our recent enterprise-wide buyout program • Agreed to sell Jaguar Land Rover to Tata Motors; sold the ACH drive shaft business and Primus Financial Services in Japan • Introduced the “Drive One” campaign in the U.S. market, a grass roots multi-media effort using employees and dealers as Ford advocates SLIDE 4 Slide 6: TOTAL COMPANY ACHIEVING OUR PLAN -- NEXT STEPS • Achieve our key business objectives, including profitability in North America and total Automotive in 2009* • Continue to right size the business, including targeted personnel reductions • Successfully launch the Ford Flex, Lincoln MKS, Ford F-150 in North America as well as the Ford Kuga and Ford Fiesta in Europe • Complete the sale of Jaguar Land Rover and continue the disposition of our ACH business • Improve Volvo’s results * Excluding special items SLIDE 5 Slide 7: FINANCIAL RESULTS Don Leclair Chief Financial Officer SLIDE 6 Slide 8: TOTAL COMPANY 2008 FIRST QUARTER INCOME FROM CONTINUING OPERATIONS COMPARED WITH NET INCOME* Amount 2008 Income (Mils.) Pre-Tax Income (Excl. Special Items) Special Items Pre-Tax Income (Incl. Special Items) Minority Interest Taxes Net Income from Continuing Operations Discontinued Operations Net Income $ 736 (416) $ 320 (122) (97) $ 101 (1) $ 100 B / (W) 2007 $ 669 (303) $ 366 (64) 84 $ 386 (4) $ 382 * See Slide 8 for details of First Quarter 2008 special items SLIDE 7 Slide 9: TOTAL COMPANY 2008 FIRST QUARTER SPECIAL ITEMS Pre-Tax Profit / (Loss) (Mils.) Special Items North America - Personnel Actions and Associated Curtailments - U.S. Dealer Reductions (Including Investment Write-Off) - Ballard Restructuring / Other Subtotal North America Other Personnel Actions Jaguar Land Rover Total Special Items Memo: Special Items Impact on Earnings Per Share** $ (223) (108) (72) $ (403) (13) 0* $ (416) $(0.15) * Operating profit was essentially offset by an impairment charge; wholesale and revenue data are shown in the Appendix Earnings per share from continuing operations is calculated on a basis that includes pre-tax profit, provision for taxes, and minority interest; see Appendix for method of calculation SLIDE 8 Slide 10*: TOTAL COMPANY 2008 FIRST QUARTER PRE-TAX PROFIT / (LOSS) BY SECTOR (Mils.) $736 $669 $67 Total Memo: B / (W) 2007 $669 Automotive $895 Financial Services $(226) SLIDE 9 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP Slide 11: AUTOMOTIVE SECTOR 2008 FIRST QUARTER AUTOMOTIVE PRE-TAX RESULTS COMPARED WITH 2007* Pre-Tax Profit (Bils.)* Ongoing Automotive -- $1.2 $1.7 $0.7 $0.9 $0.2 $(0.1) $(0.7) $(0.2) $0.3 $(0.2) $(0.3) 2007 2008 Volume / Mix Net Pricing Cost Exchange Changes** * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP At constant volume, exchange and mix * Non-recurrence of 2007 First Quarter results; 2008 First Quarter operating results exclude Jaguar Land Rover because of the held-for-sale status Net Interest & Fair Market Value Adj. Other Jaguar Land Rover & Aston Martin* SLIDE 10 Slide 12*: AUTOMOTIVE SECTOR 2008 FIRST QUARTER COST CHANGES 2008 Costs B / (W) 2007 (Bils.) $0.6 Total $1.7 Bils. $0.3 $0.2 $0.3 $0.1 $0.1 $0.1 Warranty Mfg. / Engrg. Net Product Costs SpendingRelated Pension / OPEB Overhead Advertising & Sales Promotions * At constant volume, mix, and exchange; excludes special items SLIDE 11 Slide 13: AUTOMOTIVE SECTOR 2008 FIRST QUARTER PROFIT / (LOSS) BY SEGMENT* Pre-Tax Profit (Mils.)* $850 Million $739 $669 $257 $1 $(45) $(151) South America $144 Europe Volvo Asia Pacific & Africa $27 Net Interest $(472) Fair Market Value Adj. 291 $49 $0 $(181) Total North America $568 Mazda Other Auto. $161 B / (W) Than 2007 $895 $520 $(245) $28 Jaguar Land Rover & Aston Martin $(308) $1,042 Million * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 12 Slide 14: AUTOMOTIVE SECTOR -- FORD NORTH AMERICA FIRST QUARTER KEY METRICS -- 2008 vs. 2007 Wholesales (000) 744 704 Revenue (Bils.) $18.5 Pre-Tax Profits (Mils.)* $17.1 $(45) $(613) 2007 Memo: U.S. Market Share 15.1% U.S. Dealer Inventories - First Quarter 568 - O / (U) Prior Quarter (2) 2008 15.0% 565 32 2007 2008 2007 2008 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 13 Slide 15: AUTOMOTIVE SECTOR -- FORD NORTH AMERICA 2008 FIRST QUARTER AUTOMOTIVE PRE-TAX RESULTS COMPARED WITH 2007* (Bils.) $1.2 Industry $(0.3) Stocks 0.1 Mix / Other (0.3) $0 $0.1 $0.1 $(0.3) $(0.6) $0.6 $(0.5) Structural Costs Net Product Costs Other $0.8 0.3 0.1 2007 2008 Volume / Mix Net Pricing Cost Exchange Changes Other * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 14 Slide 16: AUTOMOTIVE SECTOR -- FORD NORTH AMERICA U.S. MARKET SHARE* Fleet Retail 15.6% 13.4% 5.0% 5.4% 2.9% 4.3% 14.1% 15.1% 15.0% 5.2% 10.1% 10.2% 10.5% 9.8% 9.8% Memo: Total (Worse) Than Prior Year First Quarter 2007 (2.1) Pts. Second Quarter 2007 (1.1) Pts. Third Quarter 2007 (2.1) Pts. Fourth Quarter 2007 (0.7) Pts. First Quarter 2008 (0.1) Pts. * Ford and Lincoln Mercury SLIDE 15 Slide 17: AUTOMOTIVE SECTOR -- FORD NORTH AMERICA OPERATING COST REDUCTIONS* Cumulative Costs B / (W) Than December 31, 2005 (Bils.) 2008 Plan $5 Billion $3.3 $2.1 $1.5 Memo (Absolutes): Total Personnel Level (000) Straight-Time Manned Capacity (Mils.) December 31, 2006 122 3.4 December 31, 2007 89 2.9 March 31, 2008 89 2.9 * At constant volume, mix and exchange; excludes special items SLIDE 16 Slide 18: NORTH AMERICA OPERATING-RELATED COST REDUCTIONS* 2006 (Bils.) Net Product Costs Product Adds Commodities Material Cost Reductions Subtotal Structural / Other Total $(0.9) (0.3) 1.2 $0 1.5 $ 1.5 2007 (Bils.) $(2.0) (0.8) 0.8 $(2.0) 2.6 $ 0.6 First Quarter (Bils.) $(0.1) 0.1 0.3 $ 0.3 0.9 $ 1.2 2008 Balance of Year (Bils.) $ (0.5) (0.5) - (0.7) 0.7 - 1.1 $(0.3) - (0.1) 1.7 - 2.1 $ 1.4 - 2.0 Projected Full Year (Bils.) $ (0.6) (0.4) - (0.6) 1.0 - 1.4 $ 0 - 0.2 2.6 - 3.0 $ 2.6 - 3.2 $5 billion * At constant volume, mix, and exchange; excludes special items SLIDE 17 Slide 19: AUTOMOTIVE SECTOR -- FORD SOUTH AMERICA FIRST QUARTER KEY METRICS -- 2008 vs. 2007 Wholesales (000) 92 84 $1.3 $257 Revenue (Bils.) $1.8 Pre-Tax Profits (Mils.)* $113 2007 Memo: Market Share** 11.1% 2008 9.5% 2007 2008 2007 2008 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP South America market share is based, in part, on estimated vehicle registrations for our six major markets in that region SLIDE 18 Slide 20*: AUTOMOTIVE SECTOR -- FORD EUROPE FIRST QUARTER KEY METRICS -- 2008 vs. 2007 Wholesales (000) 500 500 $8.6 Revenue (Bils.) $10.2 Pre-Tax Profits (Mils.) $739 $219 2007 Memo: Market Share** 9.1% 2008 8.9% 2007 2008 2007 2008 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP Market share for Ford Europe is based, in part, on estimated vehicle registrations for our 19 major European markets SLIDE 19 Slide 21*: AUTOMOTIVE SECTOR -- FORD EUROPE 2008 FIRST QUARTER AUTOMOTIVE PRE-TAX PROFITS COMPARED WITH 2007 (Bils.) Net Product Costs Warranty Other $0.2 0.2 (0.1) $0.7 $0.5 $0.2 $0 $0.2 $0.3 $0.2 $(0.2) 2007 2008 Volume / Mix Net Pricing Cost Exchange Changes Other * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 20 Slide 22: AUTOMOTIVE SECTOR -- VOLVO FIRST QUARTER KEY METRICS -- 2008 vs. 2007 Wholesales (000) 128 106 $94 Revenue (Bils.) $4.6 $4.2 Pre-Tax Profits (Mils.)* $(151) 2007 Memo: Market Share** U.S. Europe 0.7% 1.5 2008 0.7% 1.4 2007 2008 2007 2008 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP Europe market share for Volvo is based, in part, on estimated vehicle registrations for our 19 major European markets SLIDE 21 Slide 23*: AUTOMOTIVE SECTOR -- VOLVO 2008 FIRST QUARTER AUTOMOTIVE PRE-TAX PROFITS COMPARED WITH 2007 (Mils.) $94 $110 Net Product Costs $80 Manufacturing 20 Warranty / Other 10 $(245) $(151) $(210) $(40) $(70) $(35) Stocks $ (60) Other Volume (150) 2007 2008 Volume / Mix Net Pricing Cost Changes Exchange Other * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 22 Slide 24: AUTOMOTIVE SECTOR -- FORD ASIA PACIFIC AFRICA AND MAZDA 2008 FIRST QUARTER PRE-TAX PROFITS* (Mils.) $50 $49 $1 Asia Pacific Africa and Mazda Memo: B / (W) 2007 $55 Asia Pacific Africa $27 Mazda and Assoc. Operations $28 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP SLIDE 23 Slide 25: AUTOMOTIVE SECTOR -- FORD ASIA PACIFIC AFRICA FIRST QUARTER KEY METRICS -- 2008 vs. 2007 Wholesales (000) 126 129 Revenue (Bils.) $1.8 Pre-Tax Profits (Mils.)* $1.7 $1 $(26) 2007 Memo: Market Share** 2.1% 2008 2.0% 2007 2008 2007 2008 * Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP Asia Pacific Africa market share is based on estimated vehicle sales for our twelve major markets in that region SLIDE 24 Slide 26*: AUTOMOTIVE SECTOR 2008 FIRST QUARTER CASH Gross Cash March 31, 2008 December 31, 2007 Change in Gross Cash Operating-Related Cash Flow Automotive Pre-Tax Profits Capital Spending Depreciation and Amortization Changes in Working Capital / Other (incl. Timing Differences) Subtotal Up-Front Subvention Payments to Ford Credit Total Automotive Operating-Related Cash Flow Other Changes in Cash Personnel Separation Programs Pension Contributions VEBA Related* Tax Refunds, Tax Payments, and Tax Receipts from Affiliates Divestitures All Other Change in Gross Cash * See Appendix for reconciliation to GAAP Excludes special items; see Slide 8 and Appendix for reconciliation to GAAP * Includes transfers to Temporary Asset Account First Quarter (Bils.) $28.7 34.6 $ (5.9) $ 0.7 (1.4) 1.5 (1.3) $(0.5) (1.0) $(1.5) $(0.1) (0.6) (4.5) 0.9 0.1 (0.2) $(5.9) SLIDE 25 Slide 27: AUTOMOTIVE SECTOR AUTOMOTIVE FINANCIAL RESOURCES March 31, 2008 (Bils.) Gross Cash* Available Automotive Credit Lines (Secured and Unsecured)** Total Liquidity Memo: Debt $ 28.7 11.9 $ 40.6 $ 27.1 * Includes cash and cash equivalents, net marketable securities, and loaned securities, and excludes UAW-Ford Temporary Asset Account securities Total committed secured and unsecured automotive credit lines (including local lines available to foreign affiliates) were $13.2 billion on March 31, 2008 SLIDE 26 Slide 28*: FINANCIAL SERVICES SECTOR 2008 FIRST QUARTER PRE-TAX PROFIT / (LOSS) BY SEGMENT (Mils.) $67 $36 $31 Total Memo: B / (W) 2007 $(226) Ford Credit $(257) Other $31 * Includes a net loss of $159 million related to market valuation adjustments from derivatives SLIDE 27 Slide 29: FINANCIAL SERVICES SECTOR 2008 FIRST QUARTER FORD CREDIT PRE-TAX PROFIT COMPARED WITH 2007 (Bils.) $(0.2) $0.3 $(0.3) Change in Reserve $(0.2) Loss Severity (0.1) $0.2 $0.1 $0 $0 $(0.1) $(0.2) $(0.3) 2007 Memo: Excl. SFAS 133* (Mils.) $329 2008 Volume Financing Margin Credit Loss Lease Residual Other SFAS 133* $195 SLIDE 28 * Market valuation adjustments from derivatives Slide 30: FINANCIAL SERVICES SECTOR FORD CREDIT LIQUIDITY AND FUNDING STRATEGY March 31, 2008 (Bils.) $71.9 Committed Capacity / Liquidity $56.0 $15.9 $5.7 Committed Capacity & $5.7 Cash** $3.4* Liquidity • Maintain strong liquidity to meet near-term funding obligations – Hold substantial cash balance – Continue to diversify global asset-backed funding capabilities – Renew committed asset-backed funding capacity while maintaining a diversity of liquidity providers $62.8 Total Committed Capacity * Cash**** $24 – Potentially issue unsecured term debt • Continue to explore and execute various alternative business arrangements March 31, 2008 (Bils.) Utilization of Liquidity $38.5 $38.9 • Present managed leverage at March 31, 2008 was 9.4 to 1 -- compared with 11.1 to 1 at March 31, 2007 and our target of 11.5 to 1 • Ford Credit will resume regular dividends subject to its ability to execute its funding plan $0.4 Capacity Utilized * * ** Unsecured CP Total Subject to availability of sufficient assets To be used only to support on-balance sheet securitization transactions Capacity in excess of eligible receivables Cash, cash equivalents and marketable securities (excludes marketable securities related to insurance activities) SLIDE 29 Slide 31*: AUTOMOTIVE SECTOR 2008 PLANNING ASSUMPTIONS AND OPERATIONAL METRICS Planning Assumptions Industry Volume (SAAR) Full Year Plan -- U.S. (Mils.) -- Europe (Mils.) 16.0 17.6 First Quarter 15.6 18.0 Full Year Outlook 15.3 - 15.6 17.6 - 18.0 Operational Metrics Compared with 2007 - Quality - Automotive Costs** Improve Improve by about $3 Billion Improved Improved by $1.7 Billion 15.0% $(1.5) Billion 1.4 On Track On Track Absolute Amount - U.S. Market Share (Ford and Lincoln Mercury) Low End of 14-15% Range - Operating Cash Flow - Capital Spending Negative Around $6 Billion On Track On Track On Track * European 19 markets At constant volume, mix, and exchange; excludes special items SLIDE 30 Slide 32: AUTOMOTIVE SECTOR 2008 PRODUCTION VOLUMES First Quarter Actual O / (U) 2007 Units (000) (000) Ford North America Ford Europe Volvo 692 539 112 (48) 16 (23) Second Quarter Forecast O / (U) Units 2007 (000) (000) 710 565 116 (101) 53 0 SLIDE 31 Slide 33: TOTAL COMPANY 2008 OUTLOOK Outlook Automotive Loss Comparison To 2007* Equal to or Better Worse Worse Better Better Financial Services Pre-Tax Operating Results** Special Items Pre-Tax Results Profit Loss Loss Loss * Adjusted to exclude Jaguar Land Rover and Aston Martin Excludes special items SLIDE 32 Slide 34*: TOTAL COMPANY FORWARD YEAR KEY BUSINESS METRICS Status • Profitable in North America and Total Automotive in 2009 • $5 billion cost reductions in North America by 2008 compared with 2005** • 14-15% U.S. market share (Ford and Lincoln Mercury) • Cash outflow of $12 - $14 billion in 2007 - 2009 to fund operating losses and restructuring (employee separations) On Plan On Plan Low End of Range for 2008 On Plan * Excluding special items At constant volume, mix, and exchange; excludes special items SLIDE 33 Slide 35: TOTAL COMPANY OUR KEY PRIORITIES • Aggressively restructure to operate profitably at current demand and changing model mix • Accelerate development of new products our customers want and value • Finance our plan and improve our balance sheet • Work together effectively as one team to leverage our global resources SLIDE 34 Slide 36: SAFE HARBOR Risk Factors Statements included 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: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Continued decline in market share; Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors; An increase in or acceleration of market shift away from sales of trucks, sport utility vehicles, or other more profitable vehicles, particularly in the United States; A significant decline in industry sales, particularly in the United States or Europe, resulting from slowing economic growth, geo-political events or other factors; Lower-than-anticipated market acceptance of new or existing products; Continued or increased high prices for or reduced availability of fuel; Currency or commodity price fluctuations; Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor; Economic distress of suppliers that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of components or materials; Labor or other constraints on our ability to restructure our business; Work stoppages at Ford or supplier facilities or other interruptions of supplies; Single-source supply of components or materials; Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition; Inability to implement Memorandum of Understanding with UAW to fund and discharge retiree health care obligations because of failure to obtain court approval or otherwise; Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends); The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs; Increased safety, emissions (e.g., CO2), fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions; Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise; A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts); Adverse effects on our results from a decrease in or cessation of government incentives; Adverse effects on our operations resulting from certain geo-political or other events; Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business or refinance our debt; Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt); Inability of Ford Credit to access debt or securitization markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption or otherwise; Higher-than-expected credit losses; Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles; Changes in interest rates; Collection and servicing problems related to finance receivables and net investment in operating leases; Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles; and New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions. We cannot be certain that any expectation, forecast or assumption made by management 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 of these risks, see “Item 1A. Risk Factors” of our 2007 10-K Report. SLIDE 35 Slide 37: APPENDIX Slide 38*: TOTAL COMPANY 2005 - 2007 PRE-TAX RESULTS INCLUDING Full Year SPECIAL ITEMS 2005 (Mils.) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Other Automotive Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive Financial Services Total Company $(2,461) 399 (437) 267 42 247 $(1,943) (55) $(1,998) (1,901) $(3,899) 4,930 $ 1,031 2006 (Mils.) $(16,006) 661 371 (256) (250) 259 $(15,221) 247 $(14,974) (2,066) $(17,040) 1,951 $(15,089) First Quarter (Mils.) $(702) 113 208 90 (28) 21 $(298) (342) $(640) 301 $(339) 293 $ (46) 2007 Second Third Fourth Quarter Quarter Quarter (Mils.) (Mils.) (Mils.) $ (67) 255 184 (91) 18 72 $ 371 (106) $ 265 557 $ 822 99 $ 921 $(689) 386 254 (174) 19 14 $(190) (602) $(792) 81 $(711) 557 $(154) $(2,681) 418 98 (2,543) (7) 75 $(4,640) (10) $(4,650) (93) $(4,743) 273 $(4,470) Full Year (Mils.) $(4,139) 1,172 744 (2,718) 2 182 $(4,757) (1,060) $(5,817) 846 $(4,971) 1,222 $(3,749) * Pre-tax profits adjusted for discontinued operations at Ford Credit and for reassignment of AutoAlliance International results from Mazda and Associated Operations to North America Appendix 1 of 20 Slide 39: TOTAL COMPANY 2005 - 2007 PRE-TAX SPECIAL ITEMS* Full Year 2005 (Mils.) $ (959) (510) (110) (19) $(1,598) 152 $(1,446) (1,435) $(2,881) 1,499 $(1,382) 2006 (Mils.) $(10,020) 110 (84) (217) (65) 115 $(10,161) $(10,161) (1,761) $(11,922) $(11,922) First Quarter (Mils.) $ (89) (11) (4) (2) $(106) $(106) (7) $(113) $(113) 2007 Second Third Fourth Quarter Quarter Quarter (Mils.) (Mils.) (Mils.) $ 203 $ 328 $(1,135) (78) (8) $ 117 $ 117 326 $ 443 $ 443 (39) (7) (11) $ 271 (632) $(361) 11 $(350) $(350) (125) (2,543) (17) $(3,820) 120 $(3,700) (152) $(3,852) $(3,852) Full Year (Mils.) $ (693) (253) (2,554) (38) $(3,538) (512) $(4,050) 178 $(3,872) $(3,872) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Other Automotive Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive Financial Services Total Company * Special items adjusted for reassignment of AutoAlliance International results from Mazda and Associated Operations to North America Appendix 2 of 20 Slide 40: TOTAL COMPANY 2005 - 2007 PRE-TAX RESULTS EXCLUDING Full Year 2007 SPECIAL ITEMS* First Second Third 2005 (Mils.) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Other Automotive Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive Financial Services Total Company $(1,502) 399 73 377 61 247 $ (345) (207) $ (552) (466) $(1,018) 3,431 $ 2,413 2006 (Mils.) $(5,986) 551 455 (39) (185) 144 $(5,060) 247 $(4,813) (305) $(5,118) 1,951 $(3,167) Quarter (Mils.) $(613) 113 219 94 (26) 21 $(192) (342) $(534) 308 $(226) 293 $ 67 Quarter Quarter (Mils.) (Mils.) $(270) 255 262 (91) 26 72 $ 254 (106) $148 231 $ 379 99 $ 478 Fourth Quarter (Mils.) Full Year (Mils.) $(3,446) 1,172 997 (164) 40 182 $(1,219) (548) $(1,767) 668 $(1,099) 1,222 $ 123 $(1,017) $(1,546) 386 418 293 (167) 30 14 $ (461) 30 $ (431) 70 $ (361) 557 $ 196 223 0 10 75 $ (820) (130) $ (950) 59 $ (891) 273 $ (618) * Pre-tax profits adjusted for discontinued operations at Ford Credit and for reassignment of AutoAlliance International results from Mazda and Associated Operations to North America Appendix 3 of 20 Slide 41: TOTAL COMPANY 2005 - 2007 REVENUE* Full Year 2006 (Mils.) $70,590 5,697 30,394 16,105 6,539 $129,325 13,923 $143,248 16,750 $159,998 First Quarter (Mils.) 2005 (Mils.) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive Financial Services Total Company $81,163 4,366 29,918 17,109 7,684 $140,240 13,174 $153,414 23,341 $176,755 2007 Second Third Quarter Quarter (Mils.) (Mils.) Fourth Quarter (Mils.) $17,257 2,411 10,287 5,070 Full Year (Mils.) $71,465 7,585 36,450 17,859 $18,559 $18,961 $16,688 1,283 1,827 2,064 8,632 4,572 9,203 4,373 8,328 3,844 1,769 1,727 1,782 $34,815 $36,091 $32,706 3,815 4,015 3,564 $38,630 $40,106 $36,270 4,375 4,115 4,795 $43,005 $44,221 $41,065 1,768 7,046 $36,793 $140,405 3,954 15,348 $40,747 $155,753 4,730 18,015 $45,477 $173,768 * Revenue shown excluding special items, adjusted for discontinued operations at Ford Credit, and adjusted for reassignment of AutoAlliance International from Mazda and Associated Operations to North America. Special items are reductions to Fourth Quarter 2007 revenues of $1,099 million for North America, $120 million for Europe, $87 million for Volvo, $15 million for Asia Pacific, $53 million for Jaguar Land Rover / Aston Martin representing a one-time non-cash charge related to a change in our business practice for offering and announcing retail variable marketing incentives to our dealers Appendix 4 of 20 Slide 42: TOTAL COMPANY 2005 - 2007 WHOLESALES* Full Year 2005 (000) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive 3,442 335 1,753 485 473 6,488 279 6,767 2006 (000) 3,123 381 1,846 460 517 6,327 270 6,597 First Quarter (000) 744 84 500 128 126 1,582 68 1,650 2007 Second Third Fourth Quarter Quarter Quarter (000) (000) (000) 816 110 509 125 135 1,695 78 1,773 649 116 422 102 129 1,418 69 1,487 681 126 487 127 145 1,566 77 1,643 Full Year (000) 2,890 436 1,918 482 535 6,261 292 6,553 * Adjusted for reassignment of AutoAlliance International from Mazda and Associated Operations to North America. Appendix 5 of 20 Slide 43: TOTAL COMPANY CALCULATION OF EARNINGS PER SHARE First Quarter 2008 Cont. Ops. -Net Excl. Income Special Items (Mils.) (Mils.) $ 100 $ 525 Numerator Net Income Impact on Income from assumed exchange of convertible notes and convertible trust preferred securities Income for EPS Denominator Average shares outstanding Net issuable shares, primarily stock options Convertible notes Convertible trust preferred securities Average shares for EPS EPS 0 $ 100 66 $ 591 2,188 20 0 0 2,208 $ 0.05 2,188 20 538 162 2,908 $ 0.20 Appendix 6 of 20 Slide 44: TOTAL COMPANY 2008 FIRST QUARTER EFFECTIVE TAX RATE Continuing Operations Excluding Special Items Including Special Items PBT Taxes Tax Rate PBT Taxes Tax Rate (Mils.) (Mils.) (Pct.) (Mils.) (Mils.) (Pct.) PBT $ 736 Less: Unconsolidated Subsidiaries (142) Adjusted PBT $ 594 Tax Credits / Adjustments / Valuation Allowance Tax Provision $ 320 (142) $ 178 $(208) 119 $ (89) (35.0)% 20.0 (15.0)% $ (62) (35) $ (97) (35.0)% (19.5) (54.5)% Appendix 7 of 20 Slide 45: TOTAL COMPANY 2007 – 2008 FIRST QUARTER PRE-TAX RESULTS* Pre-Tax Profits (Incl. Special Items) 2007 2008 (Mils.) (Mils.) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Other Automotive Subtotal Ongoing Auto. JLR and Aston Martin Total Automotive Financial Services Total Company $(702) 113 208 90 (28) 21 $(298) (342) $(640) 301 $(339) 293 $ (46) $(448) 257 731 (151) (4) 49 $ 434 (181) $ 253 0 $ 253 67 $ 320 Special Items 2007 2008 (Mils.) (Mils.) $ (89) 0 (11) (4) (2) 0 $(106) 0 $(106) (7) $(113) 0 $(113) $(403) 0 (8) 0 (5) 0 $(416) 0 $(416) 0 $(416) 0 $(416) Pre-Tax Profits (Excl. Special Items) 2007 2008 (Mils.) (Mils.) $(613) 113 219 94 (26) 21 $(192) (342) $(534) 308 $(226) 293 $ 67 $ (45) 257 739 (151) 1 49 $ 850 (181) $ 669 0 $ 669 67 $ 736 * From continuing operations, 2007 adjusted for discontinued operations at Ford Credit and for reassignment of AutoAlliance International results from Mazda and Associated Operations to North America Appendix 8 of 20 Slide 46: TOTAL COMPANY 2007 – 2008 FIRST QUARTER REVENUE* Revenue (Incl. Special Items) 2007 2008 (Mils.) (Mils.) North America South America Europe Volvo Asia Pacific Africa Mazda and Assoc. Operations Subtotal Ongoing Auto. JLR and Aston Martin Total Automotive Financial Services Total Company $18,559 1,283 8,632 4,572 1,769 0 $34,815 3,815 $38,630 4,375 $43,005 $17,110 1,842 10,155 4,197 1,668 0 $34,972 4,145 $39,117 4,396 $43,513 Special Items 2007 2008 (Mils.) (Mils.) $0 0 0 0 0 0 $0 0 $0 0 $0 $ 0 0 0 0 Revenue (Excl. Special Items) 2007 2008 (Mils.) (Mils.) $18,559 1,283 8,632 4,572 1,769 0 $34,815 3,815 $38,630 4,375 $43,005 $17,110 1,842 10,155 4,197 1,668 0 $34,972 0 $34,972 4,396 $39,368 0 0 $ 0 4,145 $ 4,145 0 $ 4,145 * From continuing operations, 2007 adjusted for discontinued operations at Ford Credit, and for reassignment of AutoAlliance International from Mazda and Associated Operations to North America. Appendix 9 of 20 Slide 47: TOTAL COMPANY 2008 FIRST QUARTER WHOLESALES* Wholesales (Incl. Special Items) 2007 2008 (000) (000) North America* South America Europe Volvo Asia Pacific Africa** Mazda and Assoc. Operations Subtotal Other Automotive Subtotal Automotive Ops. JLR and Aston Martin Total Automotive 744 84 500 128 126 0 1,582 0 1,582 68 1,650 704 92 500 106 129 0 1,531 0 1,531 74 1,605 Special Items 2007 2008 (Mils.) (Mils.) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 74 74 Wholesales (Excl. Special Items) 2007 2008 (Mils.) (Mils.) 744 84 500 128 126 0 1,582 0 1,582 68 1,650 704 92 500 106 129 0 1,531 0 1,531 0 1,531 * Includes consolidation of Automotive Alliance International (AAI) wholesales from production of Mazda6 vehicles only Included in wholesales of Asia Pacific Africa are Ford-badged vehicles sold in China and Malaysia by certain unconsolidated affiliates totaling about 55,000 and 38,000 units in 2008 and 2007, respectively. Appendix 10 of 20 Slide 48*: TOTAL COMPANY FIRST QUARTER EMPLOYMENT DATA BY BUSINESS UNIT Dec. 31, 2007 (000) 94 14 68 26 17 219 16 235 11 246 Mar. 31, 2008 (000) 93 14 68 25 17 217 16 233 11 244 North America South America Europe Volvo Asia Pacific Africa Subtotal Ongoing Automotive JLR and Aston Martin Total Automotive Financial Services Total Company * This slide includes the approximate number of individuals employed by us and our consolidated entities (including entities we do not control) Appendix 11 of 20 Slide 49: AUTOMOTIVE SECTOR -- FORD NORTH AMERICA PERSONNEL LEVELS FROM YEAR-END 2005 Dec. 31, 2005 Dec. 31, 2006 Dec. 31, 2007 March 31, 2008 Salaried Hourly - Manufacturing / Other - ACH* Total Hourly Subtotal Dealership Personnel** Total 35,600 86,200 13,900 100,100 135,700 7,000 142,700 32,400 78,900 11,100 90,000 122,400 5,700 128,100 24,300 58,600 6,100 64,700 89,000 4,600 93,600 24,300 58,300 6,000 64,300 88,600 4,400 93,000 * Excludes Supplemental Replacement Personnel Primarily entities that we do not control but are consolidated under FIN46 Appendix 12 of 20 Slide 50*: AUTOMOTIVE SECTOR 2008 FIRST QUARTER MARKET RESULTS First Quarter U.S. Industry SAAR (Mils.) Market Share (Pct.) - Ford and Lincoln Mercury - Volvo Total U.S. Market Share Memo: Jaguar Land Rover Europe Industry SAAR (Mils.) Market Share (Pct.) - Ford - Volvo Total Europe Market Share Memo: Jaguar Land Rover Other Regions Ford Brand Market Share (Pct.) - South America - Asia Pacific Africa* Absolute 15.6 15.0% 0.7 15.7% 0.3% 18.0 8.9% 1.4 10.3% 0.8% B / (W) 2007 (1.4) (0.1) Pts. 0 (0.1) Pts. 0 Pts. 0 (0.2) Pts. (0.1) (0.3) Pts. (0.1) Pts. 9.5% 2.0 (1.6) Pts. (0.1) * European market share for Ford Europe, Volvo, and Jaguar Land Rover is based, in part, on estimated vehicle registrations for our 19 major European markets South American market share is based, in part, on estimated vehicle registrations for our six major markets in that region Appendix 13 of 20 * Asia Pacific Africa market share is based, in part, on estimated vehicle sales for our twelve major markets in that region Slide 51: AUTOMOTIVE SECTOR COSTS AND EXPENSES First Quarter 2008 B / (W) First Qtr. Amount 2007 (Mils.) (Mils.) Total Costs and Expenses* Select Cost Items: Depreciation and Amortization - Depreciation - Amortization -- Special Tools Total Depreciation / Amortization Postretirement Expense * Includes Jaguar Land Rover $38,564 $ 226 $ 744 766 $ 156 108 $ 264 $ 100 $ 1,510 $ 600 Appendix 14 of 20 Slide 52: AUTOMOTIVE SECTOR GROSS CASH RECONCILIATION TO GAAP Dec. 31, 2007 (Bils.) Cash and Cash Equivalents Marketable Securities Loaned Securities Total Cash / Marketable and Loaned Securities Securities-In-Transit Short-Term VEBA Assets* UAW-Ford Temporary Asset Account Gross Cash $20.7 2.0 10.3 $33.0 (0.3) 1.9 $34.6 March 31, 2008 (Bils.) $18.7 6.6 6.7 $32.0 (0.7) (2.6) $28.7 March 31, 2008 B / (W) Dec. 31, 2007 (Bils.) $(2.0) 4.6 (3.6) $(1.0) (0.4) (1.9) (2.6) $(5.9) * Historically, amounts accessible within 18 months; short-term VEBA is no longer reported within gross cash as of January 1, 2008, consistent with our new UAW VEBA agreement (which is subject to court approval) Appendix 15 of 20 Slide 53: AUTOMOTIVE SECTOR GAAP RECONCILIATION OF OPERATING-RELATED CASH FLOWS Cash Flows from Operating Activities of Continuing Operations Items Included in Operating-Related Cash Flows - Capital Expenditures - Net Transactions Between Automotive and Financial Services Sector - Net Cash Flows from Non-Designated Derivatives Items Not Included in Operating-Related Cash Flows - Cash Impact of Jobs Bank Benefits & Separation Programs - Net (Sales) / Purchases of Trading Securities - Pension Contributions - VEBA Cash Flows -- Net Reimbursement for Benefits Paid - Tax Refunds and Tax Payments from Affiliates - Other Operating-Related Cash Flows * 2008 excludes Jaguar Land Rover and 2007 includes Jaguar Land Rover First Quarter 2008 O / (U) First Quarter Amount* 2007 (Bils.) (Bils.) $ 0.7 $(0.8) (1.4) (0.7) 0.3 0.1 0.6 (0.9) (0.2) $(1.5) (0.1) (0.2) 0.1 (1.1) (0.8) (0.3) 1.1 (0.5) $(2.6) Appendix 16 of 20 Slide 54: FINANCIAL SERVICES SECTOR FORD CREDIT RESULTS AND METRICS -2008 FIRST QUARTER Pre-Tax Profits (Mils.) Key Metrics* Receivables (Bils.) On-Balance Sheet Managed Charge-Offs (Mils.) On-Balance Sheet Managed Loss-to-Receivables Ratio On-Balance Sheet Managed - U.S. Retail and Lease - Worldwide Total Allow. for Credit Losses Worldwide Amount (Bils.) Pct. Of EOP Receivables Leverage (To 1) Financial Statement Managed Dividend / Distribution (Bils.) Net Income (Mils.) First Quarter 2007 2008 $135 146 $105 123 0.32% 0.50 0.34 $ 1.0 0.76% 11.2 11.1 $0 $193 $141 146 $227 242 0.65% 1.07 0.66 $ 1.2 0.84% 10.2 9.4 $0 $ 24 $293 $(257) $36 First Quarter 2007 SFAS 133 (Mils.) Pre-Tax Profits Excl. SFAS 133 (Mils.) $(36) 329 First Quarter 2008 $(159) 195 * See Appendix for calculation, definitions and reconciliation to GAAP Market valuation adjustments from derivatives Appendix 17 of 20 Slide 55: FORD CREDIT KEY METRIC DEFINITIONS In addition to evaluating Ford Credit’s financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below. Information about the impact of on-balance sheet securitization is also included below: Managed Receivables -- receivables reported on Ford Credit’s balance sheet, excluding unearned interest supplements related to finance receivables, and receivables Ford Credit sold in off-balance sheet securitizations and continues to service Serviced Receivables -- includes managed receivables and receivables Ford Credit sold in whole-loan sale transactions (i.e., receivables for which Ford Credit has no continuing exposure or risk of loss) Charge-offs on Managed Receivables -- charge-offs associated with receivables reported on Ford Credit’s balance sheet plus charge-offs associated with receivables Ford Credit sold in off-balance sheet securitizations and continues to service Equity -- shareholder’s interest and historical stockholder’s equity reported on Ford Credit’s balance sheet Impact of On-Balance Sheet Securitization -- finance receivables (retail and wholesale) and net investment in operating leases reported on Ford Credit's balance sheet include assets included in securitizations that do not qualify for accounting sale treatment. These assets are available only for repayment of the debt or other obligations issued or arising in the securitization transactions; they are not available to pay the other obligations of Ford Credit or the claims of Ford Credit's other creditors. Debt reported on Ford Credit's balance sheet includes obligations issued or arising in securitizations that are payable only out of collections on the underlying securitized assets and related enhancements Appendix 18 of 20 Slide 56*: FINANCIAL SERVICES SECTOR FORD CREDIT RATIO DEFINITIONS In addition to evaluating Ford Credit’s financial performance on a GAAP financial statement basis, Ford Credit management also uses other criteria, some of which were previously disclosed in this presentation and are defined below: Charge-offs Average Receivables Loss-to-Receivables Ratio = Leverage: - Financial Statement Leverage = Total Debt Equity - Managed Leverage Retained Interest in Securitized Securitized Cash, Cash Off-Balance Off-Balance Equivalents & Adjustments for Sheet Sheet Marketable Hedge Accounting Total Debt + Receivables - Receivables - Securities - on Total Debt = Equity Adjustments for + Minority Interest Hedge Accounting on Equity * Excludes marketable securities related to insurance activities Primarily related to market valuation adjustments from derivatives due to movements in interest rates Appendix 19 of 20 Slide 57*: FINANCIAL SERVICES SECTOR FORD CREDIT RECONCILIATIONS OF MANAGED LEVERAGE TO FINANCIAL STATEMENT LEVERAGE Leverage Calculation Total Debt Securitized Off-Balance Sheet Receivables Outstanding Retained Interest in Securitized Off-Balance Sheet Receivables Adjustments for Cash, Cash Equivalents and Marketable Securities Adjustments for Hedge Accounting* Total Adjusted Debt Total Equity (incl. minority interest) Adjustments for Hedge Accounting*** Total Adjusted Equity Financial Statement Leverage (to 1) Managed Leverage (to 1) Mar. 31, 2007 (Bils.) $133.9 10.7 (0.9) (15.6) (0.1) $128.0 $ 11.9 (0.4) $ 11.5 11.2 11.1 Mar. 31, 2008 (Bils.) $140.0 4.3 (0.5) (15.9) (0.3) $127.6 $ 13.7 (0.2) $ 13.5 10.2 9.4 * Includes $57.7 billion and $74.7 billion on March 31, 2007 and March 31, 2008, respectively, of long-term and short-term asset-backed debt obligations issued in securitizations that are payable only out of collections on the underlying securitized assets and related enhancements Excludes marketable securities related to insurance activities * Primarily related to market valuation adjustments from derivatives due to movements in interest rates Appendix 20 of 20