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• Ford and Automotive IndustryFord and Automotive Industry
• Financial Analysis in the Auto IndustryFinancial Analysis in the Auto Industry
TODAY’S PRESENTATIONTODAY’S PRESENTATION
SOME OF THE WORLD’S STRONGEST BRANDSSOME OF THE WORLD’S STRONGEST BRANDS
Ford GTFord GT
Ford F-150Ford F-150
Ford Hybrid EscapeFord Hybrid Escape
Street KAStreet KA
Mazda RX-8Mazda RX-8
Jaguar X-TypeJaguar X-Type
Volvo XC90Volvo XC90
Land Rover FreelanderLand Rover Freelander
Aston Martin VanquishAston Martin Vanquish
• Annual Sales $160 BillionAnnual Sales $160 Billion
• 7 Million Vehicles Through 20,000 Dealers7 Million Vehicles Through 20,000 Dealers
• Diverse, Global Team of 350,000 EmployeesDiverse, Global Team of 350,000 Employees
MORE THAN THREE-QUARTERS OF WORLDWIDE MORE THAN THREE-QUARTERS OF WORLDWIDE AUTO SALES ARE IN N. AMERICA, EUROPE & JAPANAUTO SALES ARE IN N. AMERICA, EUROPE & JAPAN
Millions
2002 Sales By Region Share Of World Market
North America 19.9
Europe 17.2
Japan 5.8
Other Asia Pacific 7.0
South America 1.8
Rest Of World 5.2
Total World 56.9Europe
31%
Japan10%
OtherAsia-
Pacific12%
NorthAmerica
35%
RestOf World
9%
SouthAmerica
3%75%
General Motors General Motors 14.814.8 %% 8.38.3 MillionMillion
FordFord 11.711.7 6.66.6ToyotaToyota 11.011.0 6.16.1
VWVW 8.78.7 4.94.9Daimler-ChryslerDaimler-Chrysler 7.87.8 4.44.4PSAPSA 5.15.1 2.92.9
HondaHonda 5.05.0 2.82.8NissanNissan 4.74.7 2.62.6HyundaiHyundai 4.44.4 2.42.4OtherOther 26.826.8 15.015.0 TotalTotal 100100 %% 56.056.0 MillionMillion
THE GLOBAL PLAYERSTHE GLOBAL PLAYERS
ShareShare
Global Automotive MarketGlobal Automotive MarketUnit VolumeUnit Volume
Worldwide Light Vehicle Capacity (Mils. Of Units)
N. America 21 20%S. America 5 48Asia Pacific 26 26Europe 23 21Row 6 38 Total 81 25%
Memo:China 5 36%Japan 11 17Korea 4 27
Total(Mils.)
Excess(Pct.)
Proj. 2006 Capacity
REGION
615445
22222020
8176
50
ExcessDemand
ExcessCapacity (Pct.) 10% 29% 25%
1985 2001 PROJ.2006
GLOBAL EXCESS CAPACITY IS AT THE ROOT OF GLOBAL EXCESS CAPACITY IS AT THE ROOT OF COMPETITIVE PRESSURE IN ALL REGIONSCOMPETITIVE PRESSURE IN ALL REGIONS
55
Source: Autofacts 2003.Q2 release
• Ford and the Automotive IndustryFord and the Automotive Industry
• Financial Analysis in the Auto IndustryFinancial Analysis in the Auto Industry
TODAY’S PRESENTATIONTODAY’S PRESENTATION
FUNCTIONAL ORIENTATIONFUNCTIONAL ORIENTATION• Marketing & Sales
• Manufacturing
• Product Development
• Purchasing
• Ford Credit
• General Auditor’s Office
• Corporate Finance
• Treasury
TRADITIONAL STAFF FUNCTIONSTRADITIONAL STAFF FUNCTIONS
WHO WE ARE & WHAT WE WHO WE ARE & WHAT WE DODO
• Functional proficiencies
• Broad business knowledge
• Business judgment and insight
• Integrity
• Drive for results
• Developing business leaders
OUR HERITAGEOUR HERITAGE OUR ROLEOUR ROLE
• Provide strong leadership to drive results
• Partner with operating management -- business and strategic advisors with a corporate view
• Provide high quality & timely financial information and analysis
• Drive to reduce cost of capital & ensure access to capital markets
OUR GLOBAL FINANCE TEAM – 4,300 STRONGOUR GLOBAL FINANCE TEAM – 4,300 STRONG
NorthNorthAmericaAmerica
58%58%
EuropeEurope26%26%
SouthSouthAmericaAmerica
10%10%
Asia-Asia-PacificPacific
6%6%
GLOBAL FINANCE DEPLOYMENTGLOBAL FINANCE DEPLOYMENT
AccountingAccounting20%20%
Treasury,Treasury,Audit, Corp. StaffsAudit, Corp. Staffs
7%7%
FunctionalFunctionalControllers’Controllers’
OfficesOffices73%73%
Provides Framework to Accelerate Early Career Development
3 Challenging Assignments3 Challenging Assignments
Stewardship / MentoringStewardship / Mentoring
Finance Skill DevelopmentFinance Skill Development
Visibility With Upper ManagementVisibility With Upper Management
THE FORD FINANCE CAREER FOUNDATION THE FORD FINANCE CAREER FOUNDATION PROGRAMPROGRAM
PROFESSIONAL DEVELOPMENT AT ALL LEVELSPROFESSIONAL DEVELOPMENT AT ALL LEVELS
• Personnel development committees (PDC) at every level manage the development process
• Decisions made with input from employee supervisor and PDC to maximize career development
• Professional development of employees is a key responsibility of all levels of management