U.S. Floorplan Risk Management

U.S. Floorplan Securitization Portfolio Overview • • • Ford Credit has been financing dealer vehicle inventory since 1959 and has been securitizing floorplan loans since 1991 Ford's goal is to maintain a profitable dealer network of Ford and Lincoln dealerships that deliver an innovative and engaging sales and service experience for our customers. At year-end 2018, Ford and Lincoln had approximately 3,250 dealers Over the past five years, Ford Credit financed 76% to 78% of Ford and Lincoln dealer new vehicle inventory Floorplan receivables are secured primarily by the financed vehicles, and payment is required when the vehicle is sold Ford Credit's floorplan portfolio has historically experienced very low losses, primarily driven by strong. risk management practices and servicing: - - - Continuous dealer monitoring of financial health, payment performance, vehicle collateral status and risk-based on-site inventory audits Use of proprietary risk rating assessment and behavioral scoring models Intensification of risk management actions as dealer risk increases Leveraging access to dealer information through Ford relationship 72 Ford FORD CREDIT

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