Managing Director Ford of Romania

ATTILA SZABO

THE GOOD NEWS

Slide 2

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• 56 markets – full EMEA

• €200 million investment

• +1,700 jobs – total 4 500

• €1.2bn+ invested since 2008

Single source for Europe

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2007

SUV & Crossover Sales

8%

2016

26%

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34%by 2020

Source: LMC Automotive

Millennials: next wave of SUV buyers

24%of adult population

Ages 17 - 34

60% will purchase in 2018

1 in 4considering SUV

Evolution

Source: JATO

2010 2012 2013 2014 2015 2016 2017 2018 2019 20202011

0%

5%

10%

15%

0

500

1,000

1,500

2,000

2,500

Share (%)

Reg. (k)

Forecast

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THE CHALLENGE

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Inbound Outbound logistics flow – INFRASTRUCTURE?

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Inbound logistics – 3.5hrs opportunity

Cologne (DE) – Nadlac (RO):

Total distance = 1365 km

Avg. speed = 75 km/hr.

Nadlac (RO) – Craiova (RO):

Total distance = 445 km

Avg. speed = 48 km/hr.

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Inbound logistics – motorway development is key

Craiova - PitestiLugoj -Calafat Craiova-CalafatCraiova-Bucharest

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Inbound logistics – express road can add 2.5hrs saving

Craiova Bals

Slatina

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Outbond logistics – 15hrs potential reduction in transit time

Duisburg (DE) – Curtici (RO):

Total distance = 1560 km

Avg. speed = 50 km/hr.

Nadlac (RO) – Craiova (RO):

Total distance = 450 km

Avg. speed = 15 km/hr.

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Outbond logistics – rail network exist, but need rehabilitation

Curtici-TimisoaraTimisoara-CraiovaCraiova-CalafatCraiova-Bucharest-ConstantaSimeria-Filiasi

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...MORE GOOD NEWS...

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Industry

2017

128 000

2016

118 000

2018

New Vehicle Industry -- Registrations

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SEGMENTATION 2017 VS 2016

19

xxxxxx

9.0%

Ford of Romania performance 2017

Cars: 7.4%

CV: 15.9%

+0.9ppts vs 2016

#1 foreign brand!

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...BUT POLLUTION OVERSHADOW

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Industry New Regs vs SH Import Regs

70 000 85 000 100 000118 000 128 000

267 000 266 000299 000

351 000

576 000

2013 2014 2015 2016 2017

1:3.8

1:3.11:3.0 1:3.0

1:4.5

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USED CAR IMPORT AGING....EVEN FURTHER...SUB-STG4 EMISSION!

2017 201623

DO WE CARE OF ROMANIANS’ HEALTH? -- MANUFACTURERS DO

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DO WE CARE OF ROMANIANS’ HEALTH? – NEED MORE ACTION

• ENVIRONMENTAL STAMP?

• LIMIT SH IMPORT TO 1 UNIT/PERSON A YEAR?

• PROPER TAXATION?

• CONTROL AND PENALTY ON MILAGE REWIND?

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FORD MOTOR COMPANY’S ANNOUNCEMENT IN DETROIT

• $ 11 billion investment

in electrified vehicles by 2022

• 40 products: 16 BEV and 24 PHEV

• Keep moving engineering spend

from cars to CV/SUV/Crossover

• ...and from Internal Combustion

engine to Electric vehicles

• ZOTYE JV to further leverage 26