Ford's full FHR report - Rapid Ratings

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Section 6: Ford Motor Co Income Statement Table 5: Ford Motor Co Income Statement for the 12 months ending December 31, 2011 FHR Report Ford Motor Co, February 24, 2012 (in USD B) Revenue 2003 2004 2005 2006 2007 2008 2009 2010 2011 1. Sales Revenue 164.34 172.32 176.90 160.06 172.46 146.28 118.31 128.95 136.26 2. Other Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Total Operating Revenue (1+2) Cost of Goods Sold 164.34 172.32 176.90 160.06 172.46 146.28 118.31 128.95 136.26 4. Cost of Goods Sold 136.00 143.00 152.12 156.65 151.26 134.85 105.33 108.80 116.96 5. Gross Profit (1-4) Operating Expenditure 28.33 29.31 24.77 3.41 21.19 11.43 12.98 20.16 19.30 6. Salaries and Wages 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7. Depreciation 8.78 6.62 5.85 5.29 6.29 9.11 3.94 2.02 1.84 8. Amortization 5.52 6.42 8.16 11.22 7.45 3.22 4.25 4.58 3.61 9. Other Operating Expenditure 10.28 12.19 10.39 2.87 4.23 3.37 8.65 3.62 19.70 10. Total Operating Expenditure (6+7+8+9) 24.58 25.22 24.40 19.39 17.96 15.70 16.84 10.23 25.15 11. Total Cash Expenditure 147.74 157.06 162.88 157.86 156.45 140.21 115.56 114.82 125.93 12. Other Income (as per item 2) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13. Abnormal Items -2.06 – -0.71 -11.92 -3.87 -7.61 2.55 -1.15 14.02 14. Other Operating Items (12 + 13) -2.06 0.00 -0.71 -11.92 -3.87 -7.61 2.55 -1.15 14.02 15. Earnings Before Interest & Tax (5-10+14) Net Investment Income 1.69 4.09 -0.33 -27.90 -0.64 -11.87 -1.31 8.78 8.17 16. Investment Income 0.10 0.26 1.38 12.41 0.00 0.00 5.53 0.00 0.85 17. Interest Received 0.87 0.99 1.25 1.41 1.71 0.95 0.32 0.35 0.47 18. Interest Expense 1.32 1.22 1.22 0.99 2.25 1.94 1.51 1.81 0.82 19. Other Investment Expense 0.00 0.00 0.00 0.00 2.56 1.54 0.00 0.17 0.00 20. Net Investment Income Total (16+17-18-19) -0.35 0.02 1.41 12.83 -3.10 -2.53 4.33 -1.63 0.51 21. Net Profit Before Tax (NPBT; 15+20) 1.34 4.11 1.08 -15.07 -3.75 -14.40 3.03 7.15 8.68 22. Company Tax Expense 0.12 0.64 -0.84 -2.65 -1.29 0.06 0.07 0.59 -11.54 23. Net Profit After Tax (NPAT; 21-22) 1.22 3.47 1.92 -12.42 -2.45 -14.47 2.96 6.56 20.22 24. Minority Interests 0.31 0.28 0.28 0.21 0.31 0.21 0.24 0.00 0.01 25. Net Extraordinary Income -0.41 -0.15 -0.20 0.02 0.04 0.01 0.01 0.00 0.00 26. Net Surplus (23-24+25) 0.49 3.04 1.44 -12.61 -2.72 -14.67 2.72 6.56 20.21 Rapid Ratings | © All rights reserved Rapid Ratings International 2012 Page 8 of 9
Contact Details Head Office 86 Chambers Street, Suite 701 New York, NY 10007 Ph: +1.646.233.4600 Fax: +1.646.219.7460 Rating Equivalency Scale FHR Range EPD (%)* Temporal EPD (%)* Explanation Rating equivalents Moody’s⁺ S&P⁺ *The EPDs (estimated probabilities of default) for each rating notch represent a seventeen year average 95-100 0.0006 0.005 Minimal Risk of non-payment and insolvency Aaa AAA (1991-2007) and may be adjusted by Rapid Ratings customers to reflect 90-94 0.001 0.01 Exceptionally Low Risk Aa1/Aa2 AA+/AA temporal assumptions. The temporal 85-89 0.005 0.04 Very Low Risk Aa3 AAadjustment shown reflects the highest year of defaults observed in 80-84 0.01 0.08 Low Risk A1/A2 A+/A our study, 2001. 75-79 0.04 0.31 Moderate to Low Risk and somewhat subject to fluctuations in market conditions A3 A- 70-74 0.08 0.62 Generally Moderate Risk Baa1/Baa2 65-69 0.22 1.69 Moderate Risk / subject to market conditions: investment grade threshold at 65 Baa3 BBB- 60-64 0.42 3.23 Moderate Risk that can worsen with market conditions Ba1 BB+ 55-59 0.74 5.70 Medium to Moderate Risk and generally subject to market fluctuations Ba2 BB 50-54 1.26 9.70 Generally Medium Risk Ba3 BB- 45-49 2.04 15.71 Medium Risk / more subject to market conditions B1 B+ 40-44 2.94 22.64 Medium Risk that can worsen with market conditions B2 B 35-39 3.96 30.49 Medium to Moderately High Risk and very subject to fluctuations in market conditions BBB+/ BBB B3 B- 30-34 4.88 37.58 Moderately High Risk / Increasingly At Risk Caa1 CCC+ 25-29 5.56 42.81 High Risk Caa2 CCC 20-24 5.86 45.12 High Risk of non-payment Caa3 CCC- 15-19 5.90 45.43 High Risk of failure which is unlikely to improve with better market conditions Caa3 CCC- 10-14 5.90 45.43 Very High potential for payment default Ca CC 5-9 5.90 45.43 Still trading but likely under extreme pressure Ca CC 0-4 5.90 45.43 Still trading but possibly insolvent C C This table shows the equivalents in the rating levels for the corporate ratings scale of Rapid Ratings, Standard and Poor's and Moody's . While we are confident that there is a reasonable degree of accuracy across the rating levels that we have aligned, the approach is not scientific and it could be argued that there are other similar or proximate alignments that might also be acceptable. The credit rating equivalents table is not intended to imply that there is any correlation between the rating system and methodology of Rapid Ratings and the rating systems and methodologies of Standard & Poor's or Moody's Investors Services, or that any other rating agencies would rate a company at the same level as Rapid Ratings. ⁺ S&P and Moody's are trademarks of their respective companies. While the Rapid Ratings scale appears to be linear, this is not really the case. Owing to the way the statistical distributions underlying the models for each sector have been constructed, and the sector specific-weights for each variable, companies make non-linear movements over time on Rapid Ratings' scale. The Rapid Ratings’ probability of default (PD) model originally showed a downward slope in default probabilities for all companies in the last 20 rating points on the bottom of the rating scale (i.e. in the very high risk category). This reveals that some very weak companies continue to survive while many companies in their cohort have defaulted. To facilitate modeling by clients, Rapid Ratings has capped the PD at the peak so that client models can fully reflect the underlying risk but avoid getting caught up in the reality of weak survivors. Disclaimer: A Financial Health Rating (FHR) or equity recommendation from Rapid Ratings is not a recommendation or opinion that is intended to substitute for a financial advisor's or investor's independent assessment of whether to buy, sell or hold any financial products. The FHR is a statement of opinion derived objectively through our software from public information about the relevant entity. This information and the related FHR’s and related analysis provided in the reports by Rapid Ratings do not represent an offer to trade in securities. The research information contained therein is an objective and independent reference source, which should be used in conjunction with other information in forming the basis for an investment decision. Rapid Ratings believes that all of its reports are based on reliable data and information, but Rapid Ratings has not verified this or obtained an independent verification to this effect. Rapid Ratings provides no guarantee with respect to the accuracy or completeness of the data relied upon, nor the conclusions derived from the data. Each FHR is a relative, probabilistic assessment of the credit risk of the relevant entity and its potential to meet financial obligations. It is not a statement that default will or will not occur given that circumstances change and management can adopt new strategies. Reports have been prepared at the request of, and for the purpose of, the subscribers to our service only, and neither Rapid Ratings nor any of our employees accept any responsibility on any ground whatsoever, including liability in negligence, to any other person. Finally, Rapid Ratings and its employees accept no liability whatsoever for any direct, indirect or consequential loss of any kind arising from the use of its ratings and rating research in any way whatsoever, unless Rapid Ratings is negligent in misinterpreting or manipulating the data, in which case, our maximum liability to our client is the amount of our fee for the report. Industry: The Rapid Ratings Industry Classification for this company is IND_345. Data Source: Bloomberg Feedback FHR Report Ford Motor Co, February 24, 2012 Rapid Ratings appreciates all comments and suggestions. We use this information to drive our product development pipeline as we strive to continually enhance your risk assessment and mitigation practices. Feedback can be submitted at www.rapidratings.com/feedback Rapid Ratings | © All rights reserved Rapid Ratings International 2012 Page 9 of 9
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Ford's full FHR report - Rapid Ratings

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