FORD MOTOR COMPANY 2017 ANNUAL REPORT WorldReginfo - bd9bdec3-c544-4452-89b9-f9331796008d We are working with Lyft, Domino’s Pizza and Postmates to On the Cover optimize the customer experience and business function these From cruising down the highway in FINANCIAL HIGHLIGHTS vehicles provide. We also are developing a range of mobility a 1966 Mustang to taking the entire options that include micro-transit systems and traffic management family on a road trip in an all-new software that helps ease congestion in cities and provides access to 2018 Expedition, Ford customers (in billions, except for percentages) 2016 2017 mobility for more people, including the underserved. have passion for their vehicles. It is Automotive Segment In addition, we are placing an even greater emphasis on our that same emotion that drives Ford electrified vehicle strategy to help reduce CO emissions and Motor Company’s commitment to 2 Revenue $ 141.5 $ 145.7 become the world’s most trusted improve fuel economy. To speed up the design and development mobility company, designing smart of battery electric vehicles, in 2017 we created “Team Edison,” Operating margin 6.7% 5.0% vehicles for a smart world. a dedicated electric vehicle team that is bringing together technology, product development and advanced manufacturing Operating cash flow $ 6.4 $ 3.9 Whether building America’s best- to create leading-edge battery electric vehicles for customers selling truck, expanding Chariot around the world. We also recently announced a joint venture with Ford Credit shuttle service to New York City, or Zotye, a pioneer in the Chinese all-electric vehicle segment. Our moving forward on the company’s goal with the JV is to develop and manufacture all-electric vehicles vision to re-energize congested cities Pre-tax profit $ 1.9 $ 2.3 and create a new sales and service network. These moves will help by developing new ways to connect us expand our electric vehicle lineup with a total of 40 vehicles and move, Ford will always keep Total Company globally – including 16 full battery electric vehicles by 2022. the customer at the center of the products and services it creates. Net income attributable to Ford Motor Company $ 4.6 $ 7.6 Our new President and CEO, Jim Hackett, is the right person to lead us during this transformative period for the auto industry. Adjusted pre-tax profit (a) $ 10.4 $ 8.4 LETTER FROM THE He is a true visionary who brings a unique, human-centered leadership approach to our culture, products and services that EXECUTIVE CHAIRMAN will unlock the potential of our people and our business. (a) See pages 25 and 79 of Ford’s 2017 Form 10-K for definition and reconciliation to GAAP. We have many strengths to leverage as we move forward, WILLIAM CLAY FORD, JR. including our proven ability to integrate hardware and software in complex devices and our more than 100 years of experience in the mass production of vehicles. But perhaps our greatest strength 2017 was a year of change and transition for Ford Motor Company. is the trust that people have in our company and our employees, We took a major step forward in defining our future to become the who take that responsibility very seriously. world’s most trusted mobility company. To achieve this vision, we are moving from a position of strength to transform our company for the future. “Our goal is to become the world’s most In 2017 we achieved our eighth consecutive year of solid earnings trusted mobility company.” and positive operating-related cash flow. Our consistent profitability has enabled us to distribute more than $15 billion to our shareholders The hard work and community spirit of our employees, a culture since 2012. While we are pleased and proud to deliver these of caring and a determination to build a better world have substantial profits, we know that business as usual is no longer enabled us to earn this trust over time. In a time of revolution and good enough in the rapidly changing business environment. disruption, trust becomes more important than ever, and it is the We are aggressively reducing costs and reallocating capital to the one thing we will not change as we transform our company. products and markets with the highest potential for growth and To continue earning your trust, our Board of Directors, leadership returns. As we improve the efficiency and focus of our business for team and employees are passionately committed to delivering today, we also are accelerating our efforts to be a leader in the smart business results, creating value for the future and improving vehicles and mobility services of tomorrow. people’s lives around the world. Our goal is to become the world’s most trusted mobility company. Thank you for your continued support of our efforts. To do that, we are taking an approach to the design and development of our products and services that is focused not just on new technologies but also on improving people’s lives. The human impact of the mobility revolution will transform the way we access work, health care, education and much more. William Clay Ford, Jr. We plan to begin production of fully autonomous vehicles for Executive Chairman March 15, 2018 Our Annual Report is available commercial use, such as ride hailing or package delivery, by 2021. online at annualreport.ford.com WorldReginfo - bd9bdec3-c544-4452-89b9-f9331796008d We are working with Lyft, Domino’s Pizza and Postmates to optimize the customer experience and business function these vehicles provide. We also are developing a range of mobility options that include micro-transit systems and traffic management software that helps ease congestion in cities and provides access to mobility for more people, including the underserved. In addition, we are placing an even greater emphasis on our electrified vehicle strategy to help reduce CO2 emissions and improve fuel economy. To speed up the design and development of battery electric vehicles, in 2017 we created “Team Edison,” a dedicated electric vehicle team that is bringing together technology, product development and advanced manufacturing to create leading-edge battery electric vehicles for customers around the world. We also recently announced a joint venture with Zotye, a pioneer in the Chinese all-electric vehicle segment. Our goal with the JV is to develop and manufacture all-electric vehicles and create a new sales and service network. These moves will help us expand our electric vehicle lineup with a total of 40 vehicles globally – including 16 full battery electric vehicles by 2022. Our new President and CEO, Jim Hackett, is the right person to lead us during this transformative period for the auto industry. LETTER FROM THE He is a true visionary who brings a unique, human-centered leadership approach to our culture, products and services that EXECUTIVE CHAIRMAN will unlock the potential of our people and our business. We have many strengths to leverage as we move forward, WILLIAM CLAY FORD, JR. including our proven ability to integrate hardware and software in complex devices and our more than 100 years of experience in the mass production of vehicles. But perhaps our greatest strength 2017 was a year of change and transition for Ford Motor Company. is the trust that people have in our company and our employees, We took a major step forward in defining our future to become the who take that responsibility very seriously. world’s most trusted mobility company. To achieve this vision, we are moving from a position of strength to transform our company for the future. “Our goal is to become the world’s most In 2017 we achieved our eighth consecutive year of solid earnings trusted mobility company.” and positive operating-related cash flow. Our consistent profitability has enabled us to distribute more than $15 billion to our shareholders The hard work and community spirit of our employees, a culture since 2012. While we are pleased and proud to deliver these of caring and a determination to build a better world have substantial profits, we know that business as usual is no longer enabled us to earn this trust over time. In a time of revolution and good enough in the rapidly changing business environment. disruption, trust becomes more important than ever, and it is the We are aggressively reducing costs and reallocating capital to the one thing we will not change as we transform our company. products and markets with the highest potential for growth and To continue earning your trust, our Board of Directors, leadership returns. As we improve the efficiency and focus of our business for team and employees are passionately committed to delivering today, we also are accelerating our efforts to be a leader in the smart business results, creating value for the future and improving vehicles and mobility services of tomorrow. people’s lives around the world. Our goal is to become the world’s most trusted mobility company. Thank you for your continued support of our efforts. To do that, we are taking an approach to the design and development of our products and services that is focused not just on new technologies but also on improving people’s lives. The human impact of the mobility revolution will transform the way we access work, health care, education and much more. William Clay Ford, Jr. We plan to begin production of fully autonomous vehicles for Executive Chairman commercial use, such as ride hailing or package delivery, by 2021. March 15, 2018 WorldReginfo - bd9bdec3-c544-4452-89b9-f9331796008d 2018 Ford Expedition 2018 Ford EcoSport 2018 Ford F-150 2018 Ford Mustang WorldReginfo - bd9bdec3-c544-4452-89b9-f9331796008d OWNING THE FUTURE So how does Ford plan to own this future? Our strategic decisions will be guided by five high-level principles: 1.