#1FIST LM Ford Go Further HAU THAI-TANG GROUP VICE PRESIDENT GLOBAL PURCHASING J.P. MORGAN AUTO CONFERENCE AUGUST 12, 2015#2OUR FOCUS ▪ One Ford Acceleration ▪ Product Excellence Delivered with Passion ▪ Innovation In Every Part of Our Business THE PLAN ONE TEAM People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction ONE PLAN ● Finance our plan and improve our balance sheet • Work together effectively as one team Aggressively restructure to operate profitably at the current demand and changing model mix Accelerate development of new products our customers want and value ONE GOAL An exciting viable Ford delivering profitable growth for all Asia Pacific Americas Europe, Middle East/ & Africa Large Medium ONE FORD ONE TEAM ONE PLAN ONE GOAL Small Ford Go Further Expected Behaviors Foster Functional and Technical Excellence • Know and have a passion for our business and our customers Demonstrate and build functional and technical excellence Ensure process discipline • Have a continuous improvement philosophy and practice Own Working Together • Believe in skilled and motivated people working together • Include everyone; respect, listen to, help and appreciate others . . Ford Go Further . Build strong relationships; be a team player; develop ourselves and others Communicate clearly, concisely and candidly Role Model Ford Values • Show initiative, courage, integrity and good corporate citizenship • Improve quality, safety and sustainability • Have a can do, find a way attitude and emotional resilience . Enjoy the journey and each other; have fun - never at others' expense Deliver Results • Deal positively with our business realities; develop compelling and comprehensive plans, while keeping an enterprise view Ford Go Further • Set high expectations and inspire others • Make sound decisions using facts and data Hold ourselves and others responsible and accountable for delivering results and satisfying our customers ONE FORD ONE TEAM ONE PLAN ONE GOAL - Profits & Cash PROFITABLE GROWTH FOR ALL P=RXM SLIDE 1#3ONE FORD LONG-TERM OBJECTIVES People Working Together As A Lean, Global Enterprise For Automotive Leadership Top 5 Sales/ 10%+ Global Share More Balanced Regional & Segment Profits Operating Margins 8%+ Delivering Profitable Growth For All ONE TEAM People working together as a lean global enterprise Customer Employee Deer Investor Supplier ONE PLAN Aggressively restructure to operate profitably at the curent demand and changing model ma Accelerate development of new products our customers want and a Finance our plan and improve our balance Work together effectively as one ear ONE GOAL An exciting viable Ford delivering profitable ONE FORD L Top Quartile Total Shareholder Return (TSR) ONE Expected Behaviors Foster Functional and Technical Excellence Know an ve a passion for our business and our Demonstrate and be tonal and chcel excelence Have a continuous improvement philosophy and practice Own Working Together Deleve in siled and motivated people working together Duld strong ionships be a team player develop ourseves and ther Communca ceary concety and candidy Role Model Ford Values Show nave courage, legity and good corporale improve quality uy and sustainability find a way aue and enctional restence puney and each other have never at Deiver Results Des posthvely with our business reales deve peting and compreheneve pare, while keeping an Det high expectations and inspire others Mala sound decisons ving facts and ourselves and others responsible and accountable for deverings and satisfying our customers a Ford Go Further Highly Regarded By All Stakeholders SLIDE 2#4ONE FORD STRATEGIC FRAMEWORK Strong Brands Ford 0 Serving All Markets Asia Pacific Americas Europe, Middle East & Africa Product Excellence Complete Family Of Best-In-Class Vehicles Large Medium Small ONE FORD ONE TEAM ONE PLAN ONE GOAL Ford Smart Mobility Innovation Ford Go Further Profit Revenue X Margin PROFITABLE GROWTH FOR ALL P=RXM SLIDE 3#52015 PURCHASING PRIORITIES TO SUPPORT ONE FORD Great Products Sustainable Business Outstanding Quality Trusted Relationships Best Value Ford Go Further High Performing Teams Creating Value Through Operational Excellence And Innovation SLIDE 4#6CREATING VALUE THROUGH OPERATIONAL EXCELLENCE Launch Execution BUILT Ford TOUGH Risk Management SUPPLY RISK + OPERATIONAL REPUTATIONAL FINANCIAL Scale & Efficient Use of Capital Global Scale Regional Scale Local Scale Critical Elements Of Delivering The ONE Ford Plan Ford Go Further SLIDE 5#7DELIVERING SCALE BENEFITS - GLOBAL SCALE Global Scale Regional Scale Local Scale Global Platform Consolidation 27 Platforms 2007 8 Global Platforms Target Global Scale Enabled By Platform Rationalization Under ONE Ford Ford Go Further SLIDE 6#8DELIVERING SCALE BENEFITS - REGIONAL SCALE Global Scale Regional Scale Local Scale Manufacturing Hubs In Low Cost Locations B-Value Production Hub show w Ford Go Further Regional Scale Enabled By Consolidation Of Production SLIDE 7#9DELIVERING SCALE BENEFITS - LOCAL SCALE Global Scale Regional Scale Local Scale Tailored Designs Twist Beam Suspension (IL Independent Suspension Achieving Local Scale Bundled sourcing across programs Common bill-of-process Sufficient volume for supplier site Early supplier involvement Ford Go Further High Local Scale Allows Suppliers To Operate More Efficiently Translating Into Better Value For Ford SLIDE 8#10DELIVERING SCALE BENEFITS - BUNDLED SOURCING NORWAY SWEDEN Kaliningrad FINLAND Saint Petersburg Mondeo MOSCOW MONDEO Volga Volgograd 90 KAZ Escape L'é's ARCTIC OCEAN F-GEN 2 Irkutsk Fiesta Lena Eco-Sport Vladivostok Cross Program And Cross Platform Bundled Sourcing To Support Localization Objectives PACIFIC OCEAN JAPAN Ford Go Further SLIDE 9#11EARLY SUPPLIER ENGAGEMENT Ford/Supplier Design Analysis OEM Part 1 OEM Part 2 OPE OEM Part 3 Ford/Supplier Target Setting (illustrative) Supplier 1 Supplier 2 Supplier 3 Part 1 Part 2 Purchased parts Raw material Process Purchased parts Raw material Process Assembly Markups BoB 2.0 2.0 8.0 2.0 2.0 16.0 Leveraging Supplier Knowledge To Optimize Design And Value 1.0 0.5 1.0 1.0 11.0 8.5 1.5 0.5 15.5 Ford Go Further 11.0 0.5 1.5 0.5 8.5 1.0 1.0 13.0 SLIDE 10#12REVISED SOURCING APPROACH BASED ON LEARNINGS FROM Global Products with Common Content End Part Commonality Build Where You Sell Platform Sourcing Sourcing Consolidation with ABF Single Program Sourcing and Tooling ↑↑↑↑个个 ΤΟ Global Products with Regional Attributes & Parts End Part, Component & BoP Commonality & Higher Re-use Build In High Volume Manufacturing Hubs Platform Sourcing or Regional / Site Sourcing Greater flexibility for competition, localization, scale Cross-Program Sourcing & Capacity Investment Leveraging The Full Value Of ONE Ford To Deliver Optimal Value Ford Go Further SLIDE 11