accounts

FS-3

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts)

For the years ended December 31, 2016 2017 2018

Revenues Automotive $ 141,546 $ 145,653 $ 148,294 Ford Credit 10,253 11,113 12,018 Mobility 1 10 26

Total revenues (Note 4) 151,800 156,776 160,338

Costs and expenses Cost of sales 126,195 131,321 136,269 Selling, administrative, and other expenses 10,972 11,527 11,403 Ford Credit interest, operating, and other expenses 8,847 9,047 9,463

Total costs and expenses 146,014 151,895 157,135

Interest expense on Automotive debt 894 1,133 1,171 Interest expense on Other debt 57 57 57

Other income/(loss), net (Note 5) 169 3,267 2,247 Equity in net income of affiliated companies 1,780 1,201 123 Income before income taxes 6,784 8,159 4,345 Provision for/(Benefit from) income taxes (Note 7) 2,184 402 650 Net income 4,600 7,757 3,695 Less: Income/(Loss) attributable to noncontrolling interests 11 26 18 Net income attributable to Ford Motor Company $ 4,589 $ 7,731 $ 3,677

EARNINGS PER SHARE ATTRIBUTABLE TO FORD MOTOR COMPANY COMMON AND CLASS B STOCK (Note 8) Basic income $ 1.16 $ 1.94 $ 0.93 Diluted income 1.15 1.93 0.92

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions)

For the years ended December 31, 2016 2017 2018 Net income $ 4,600 $ 7,757 $ 3,695 Other comprehensive income/(loss), net of tax (Note 21)

Foreign currency translation (1,024) 314 (523) Marketable securities (8) (34) (11) Derivative instruments 219 (265) 183 Pension and other postretirement benefits 56 37 (56)

Total other comprehensive income/(loss), net of tax (757) 52 (407) Comprehensive income 3,843 7,809 3,288 Less: Comprehensive income/(loss) attributable to noncontrolling interests 10 24 18 Comprehensive income attributable to Ford Motor Company $ 3,833 $ 7,785 $ 3,270

The accompanying notes are part of the consolidated financial statements.

FS-4

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

(in millions)

December 31,

2017 December 31,

2018 ASSETS Cash and cash equivalents (Note 9) $ 18,492 $ 16,718 Marketable securities (Note 9) 20,435 17,233 Ford Credit finance receivables, net (Note 10) 52,210 54,353 Trade and other receivables, less allowances of $412 and $94 10,599 11,195 Inventories (Note 12) 11,176 11,220 Other assets 3,889 3,930

Total current assets 116,801 114,649

Ford Credit finance receivables, net (Note 10) 56,182 55,544 Net investment in operating leases (Note 13) 28,235 29,119 Net property (Note 14) 35,327 36,178 Equity in net assets of affiliated companies (Note 15) 3,085 2,709 Deferred income taxes (Note 7) 10,762 10,412 Other assets 8,104 7,929

Total assets $ 258,496 $ 256,540

LIABILITIES Payables $ 23,282 $ 21,520 Other liabilities and deferred revenue (Note 16) 19,697 20,556 Automotive debt payable within one year (Note 18) 3,356 2,314 Ford Credit debt payable within one year (Note 18) 48,265 51,179

Total current liabilities 94,600 95,569

Other liabilities and deferred revenue (Note 16) 24,711 23,588 Automotive long-term debt (Note 18) 12,575 11,233 Ford Credit long-term debt (Note 18) 89,492 88,887 Other long-term debt (Note 18) 599 600 Deferred income taxes (Note 7) 815 597

Total liabilities 222,792 220,474

Redeemable noncontrolling interest (Note 20) 98 100

EQUITY Common Stock, par value $.01 per share (4,000 million shares issued of 6 billion authorized) 40 40 Class B Stock, par value $.01 per share (71 million shares issued of 530 million authorized) 1 1 Capital in excess of par value of stock 21,843 22,006 Retained earnings 21,906 22,668 Accumulated other comprehensive income/(loss) (Note 21) (6,959) (7,366) Treasury stock (1,253) (1,417)

Total equity attributable to Ford Motor Company 35,578 35,932 Equity attributable to noncontrolling interests 28 34

Total equity 35,606 35,966 Total liabilities and equity $ 258,496 $ 256,540

The following table includes assets to be used to settle liabilities of the consolidated variable interest entities (“VIEs”). These assets and liabilities are included in the consolidated balance sheet above. See Note 22 for additional information on our VIEs.

December 31, 2017

December 31, 2018

ASSETS Cash and cash equivalents $ 3,479 $ 2,728 Ford Credit finance receivables, net 56,250 58,662 Net investment in operating leases 11,503 16,332 Other assets 64 27 LIABILITIES Other liabilities and deferred revenue $ 2 $ 24 Debt 46,437 53,269

The accompanying notes are part of the consolidated financial statements.

FS-5

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS

(in millions)

For the years ended December 31, 2016 2017 2018 Cash flows from operating activities Net income $ 4,600 $ 7,757 $ 3,695 Depreciation and tooling amortization 9,023 9,122 9,280 Other amortization (306) (669) (972) Provision for credit and insurance losses 672 717 609 Pension and other postretirement employee benefits (“OPEB”) expense/(income) 2,667 (608) 400 Equity investment (earnings)/losses in excess of dividends received (178) 240 206 Foreign currency adjustments 283 (403) 529 Net (gain)/loss on changes in investments in affiliates (139) (7) (42) Stock compensation 210 246 191 Net change in wholesale and other receivables (1,449) (836) (2,408) Provision for deferred income taxes 1,473 (350) (197) Decrease/(Increase) in accounts receivable and other assets (2,855) (2,297) (2,239) Decrease/(Increase) in inventory (803) (970) (828) Increase/(Decrease) in accounts payable and accrued and other liabilities 6,595 6,089 6,781 Other 57 65 17

Net cash provided by/(used in) operating activities 19,850 18,096 15,022

Cash flows from investing activities Capital spending (6,992) (7,049) (7,785) Acquisitions of finance receivables and operating leases (56,007) (59,354) (62,924) Collections of finance receivables and operating leases 38,834 44,641 50,880 Purchases of marketable and other securities (31,428) (27,567) (17,140) Sales and maturities of marketable and other securities 29,354 29,898 20,527 Settlements of derivatives 825 100 358 Other 112 (29) (177)

Net cash provided by/(used in) investing activities (25,302) (19,360) (16,261)

Cash flows from financing activities Cash dividends (3,376) (2,584) (2,905) Purchases of common stock (145) (131) (164) Net changes in short-term debt 3,864 1,229 (2,819) Proceeds from issuance of long-term debt 45,961 45,801 50,130 Principal payments on long-term debt (38,797) (40,770) (44,172) Other (107) (151) (192)

Net cash provided by/(used in) financing activities 7,400 3,394 (122) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (265) 489 (370) Net increase/(decrease) in cash, cash equivalents, and restricted cash $ 1,683 $ 2,619 $ (1,731)

Cash, cash equivalents, and restricted cash at January 1 (Note 9) $ 14,336 $ 16,019 $ 18,638 Net increase/(decrease) in cash, cash equivalents, and restricted cash 1,683 2,619 (1,731) Cash, cash equivalents, and restricted cash at December 31 (Note 9) $ 16,019 $ 18,638 $ 16,907

The accompanying notes are part of the consolidated financial statements.

FS-6

FORD MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EQUITY

(in millions)

Equity Attributable to Ford Motor Company

Capital Stock

Cap. in Excess

of Par

Value of

Stock

Retained Earnings/

(Accumulated Deficit)

Accumulated Other

Comprehensive Income/(Loss)

(Note 21) Treasury

Stock Total

Equity Attributable

to Non- controlling Interests

Total Equity

Balance at December 31, 2015 $ 41 $ 21,421 $ 14,980 $ (6,257) $ (977) $ 29,208 $ 15 $ 29,223 Net income — — 4,589 — — 4,589 11 4,600 Other comprehensive income/(loss), net

of tax — — — (756) — (756) (1) (757) Common stock issued (including share-

based compensation impacts) — 209 — — — 209 — 209 Treasury stock/other — — — — (145) (145) (3) (148) Cash dividends declared (a) — — (3,376) — — (3,376) (5) (3,381) Balance at December 31, 2016 $ 41 $ 21,630 $ 16,193 $ (7,013) $ (1,122) $ 29,729 $ 17 $ 29,746

Balance at December 31, 2016 $ 41 $ 21,630 $ 16,193 $ (7,013) $ (1,122) $ 29,729 $ 17 $ 29,746 Adoption of accounting standards — 6 566 — — 572 — 572 Net income — — 7,731 — — 7,731 26 7,757 Other comprehensive income/(loss), net

of tax — — — 54 — 54 (2) 52 Common stock issued (including share-

based compensation impacts) — 207 — — — 207 — 207 Treasury stock/other — — — — (131) (131) (2) (133) Cash dividends declared (a) — — (2,584) — — (2,584) (11) (2,595) Balance at December 31, 2017 $ 41 $ 21,843 $ 21,906 $ (6,959) $ (1,253) $ 35,578 $ 28 $ 35,606

Balance at December 31, 2017 $ 41 $ 21,843 $ 21,906 $ (6,959) $ (1,253) $ 35,578 $ 28 $ 35,606 Net income — — 3,677 — — 3,677 18 3,695 Other comprehensive income/(loss), net

of tax — — — (407) — (407) — (407) Common stock issued (including share-

based compensation impacts) — 163 — — — 163 — 163 Treasury stock/other — — — — (164) (164) — (164) Dividend and dividend equivalents

declared (a) — — (2,915) — — (2,915) (12) (2,927) Balance at December 31, 2018 $ 41 $ 22,006 $ 22,668 $ (7,366) $ (1,417) $ 35,932 $ 34 $ 35,966

(a) We declared dividends per share of Common and Class B Stock of $0.85, $0.65, and $0.73 per share in 2016, 2017, and 2018, respectively.

The accompanying notes are part of the consolidated financial statements.