Q1 2014 Results Review - FCA Group...May 6, 2014 (as amended on July 3, 2014) Q1 2014 Results Review (amended) 2 Safe Harbor Statement Certain information included in this presentation,

20 Novembre, 2010

Q1 2014 Results Review

May 6, 2014 (as amended on July 3, 2014)

Results for Q1 2014 reported on May 6, 2014 were adjusted on July 3, 2014 following amendment approved by Fiat Board of Directors on the same date to reflect revised accounting of a portion of the acquisition of 41.5% of Chrysler. Revisions resulted in an unusual non-cash and non-taxable gain of €223 million, with no impact on the results of the reportable segments and on the Group Consolidated Equity. Revised net loss for Q1 2014 was €173 million as compared to previously announced €319 million. For further details reference should be made to the press release and the Q1 2014 Interim Report as amended, both issued on July 3, 2014

May 6, 2014 (as amended on July 3, 2014) Q1 2014 Results Review (amended) 2

Safe Harbor Statement

Cer t a in in f o rma t ion in c lu ded in th i s p res en ta t io n ,

in c lu d ing , w i t h ou t l im i t a t io n , a ny f o rec as t s in c lu ded

he re in , i s f o rwa rd lo ok ing a nd i s s ub jec t t o impo r t a n t

r i s ks a nd unce r t a in t ie s t h a t cou ld cau se ac tua l r esu l ts

t o d i f f e r ma te r ia l l y . The Group ’ s bus in es s es in c lu de

i t s a u tomo t ive , a u tomo t ive - re la t ed a nd o th e r s ec t o r s ,

a nd i t s ou t lo ok i s p redom inan t ly ba s ed on wha t i t

c on s ide r s t o be t h e key ec onom ic f ac to r s a f f e c t in g

t h es e bu s in es s es . F o rwa rd - lo ok ing s t a temen t s w i t h

r ega rd t o t h e G roup ' s bus in es s es in vo lve a number o f

impo r t a n t f a c to r s t h a t a re sub jec t t o c hange,

in c lu d ing , bu t n o t l im i t ed t o : t h e many in t e r re la t ed

f a c to r s t ha t a f f e c t c on sumer c on f iden ce and wo r ld w ide

demand f o r a u tomo t ive a nd a u tomo t ive - re la t ed

produc t s a nd changes in con sumer p re fe ren ces tha t

c ou ld r edu ce re la t ive de mand f o r th e Group ’ s

p rodu c t s ; gove rnmen ta l p rog rams ; genera l e c onom ic

c ond i t io n s in each o f th e G roup ' s ma rke t s ; l eg i s la t io n ,

pa r t i c u la r ly t h a t r e la t in g t o au tomo t ive - re la t ed i s s ues ,

t h e env i ronmen t , t r a de a nd c ommerc e a nd

in f r a s t ru c tu re deve lopmen t ; a c t io n s o f compet i t o r s in

t h e va r io u s in du s t r ie s in wh ic h t h e G roup competes ;

p rodu c t io n d i f f i c u l t i e s , in c lu d ing c a pa c i t y a nd s upp ly

c on s t ra in t s , exc es s in ven to ry leve l s , a nd th e impa c t o f

veh ic le de f ec t s a nd/o r p rodu c t r ec a l l s ; l a bo r r e la t io n s ;

i n t e res t r a t es a nd c u r ren cy exchange ra t es ; ou r a b i l i t y

t o r ea l i z e bene f i t s a nd s yne rg ie s f r om ou r g lo ba l

a l l i a n c e a mong t h e Group ’ s members ; s ubs t a n t ia l deb t

a nd l im i t s o n l i qu i d i t y t h a t ma y l im i t ou r a b i l i t y t o

execu te t h e Group ’ s comb ined bu s in es s p la n s ; po l i t i c a l

a nd c iv i l u n res t ; ea r t hqua kes o r o th e r n a tu ra l

d i s a s t e r s a nd o th e r r i s k s a nd un c e r t a in t ie s . A ny o f t he

a s s umpt io n s unde r ly in g t h i s p res en ta t io n o r a ny o f t h e

c i r c ums ta n c es o r da t a men t io ned in t h i s p res en ta t io n

ma y c ha nge . A ny f o rwa rd- lo o k in g s t a t emen ts

c on ta in ed in t h i s p res en ta t io n s pea k on ly a s o f t he

da t e o f t h i s p res en ta t io n . W e exp res s ly d i s c la im a

du t y t o p ro v ide upda tes t o any f o rwa rd- lo o k in g

s t a t emen t s . F ia t does no t as s ume a nd exp res s ly

d i s c la ims a ny l i a b i l i t y in c onnec t io n w i t h a ny

i n a c cu ra c ie s in a ny o f t h es e f o rwa rd- lo ok ing

s t a t emen t s o r in c onnec t io n w i t h a ny us e by a ny t h i r d

pa r t y o f s u ch fo rwa rd- lo o k in g s t a t emen t s . Th i s

p res en ta t io n does n o t r ep res en t in ves tmen t a dv ic e o r

a r e c ommenda t io n fo r t h e pu r c has e o r s a le o f f in a nc ia l

p rodu c t s a nd/o r o f a n y k in d o f f in a n c ia l s e rv i c es .

F in a l l y , t h i s p res en ta t io n does no t r ep res en t an

in ves tmen t s o l i c i t a t io n in I t a ly , pu r sua n t t o S ec t io n 1 ,

l e t t e r ( t ) o f L eg is la t ive Dec ree n o . 58 o f F eb rua ry 24 ,

1998 , as a mended , n o r does i t r ep res en t a s im i la r

s o l i c i t a t io n a s con temp la t ed by t h e la ws in a ny o th e r

c oun t ry o r s t a t e .


Q1 ‘14 Executive summary

• Worldwide shipments up 9% over prior year to 1.1M units

Growth in NAFTA, APAC and EMEA more than offsetting contractions in LATAM

• Key financial metrics

Revenues at €22.1B

Trading profit at €622M

EBIT at €270M

Net loss of €173M (excl. unusual items, net profit of €87M)

Net industrial debt at €10B

Total available liquidity at €20.8B

• Refinancing and prepayment of VEBA Trust Note in full

Chrysler prepaid all amounts outstanding under the VEBA Trust Note, including accrued and unpaid interest, totaling ~U.S.$5.0B with prepayment financed by Chrysler through

New Senior Credit Facilities: a U.S.$250M additional term loan under Chrysler’s existing tranche B term loan facility and a new U.S.$1.75B term loan credit facility (maturing on May 24, 2017 and Dec 31, 2018, respectively)

Secured Senior Notes due 2019: issuance of an additional U.S.$1.375B aggregate principal amount of 8% secured senior notes due June 15, 2019, at an issue price of 108.25% of aggregate principal amount; and

Secured Senior Notes due 2021: issuance of an additional U.S.$1.380B aggregate principal amount of 8.25% secured senior notes due June 15, 2021 at an issue price of 110.50% of aggregate principal amount

Pre-tax interest expense benefit of $130M per year

• Transaction in debt capital markets

Fiat issued a €1B bond (4.75% fixed coupon) in March

• Group 2014 guidance is confirmed

Revenues of ~€93B

Trading profit in €3.6-4.0B range

Net profit of ~€0.6-0.8B (EPS €0.44-€0.60), excl. unusual items

Net industrial debt in €9.8-10.3B range

NOTE: Unusual items include the non-cash and non-taxable gain for €223M following the revised accounting of a portion of the acquisition of 41.5% of Chrysler


Adjustments to the Q1 ‘14 Income Statement reported on May 6, 2014

• As a consequence of the amended accounting treatment for the acquisition of 41.5% of Chrysler, the Income statement for Q1 2014 published on May 6, 2014, was adjusted on July 3, 2014 as follows :

Fiat Group (€M)

Q1 ‘14 Amounts as

originally reported

Adjustments Q1 ‘14

Amounts as adjusted

Net Revenues 22,125 - 22,125

Trading Profit 622 - 622

Other unusual income/(expenses) (606) 223 (383)

EBIT 47 223 270

Profit/(loss) before taxes (446) 223 (223)

Taxes 127 (77) 50

Net profit/(loss) (319) 146 (173)

Net profit/(loss) for the period attributable to:

Owners of the parent (335) 146 (189)

Non-controlling interests 16 - 16

Basic and diluted loss per ordinary share (€) (0.275) 0.120 (0.155)


19,707

Q1 ‘14 Q1 ’13 (1)

Net result (€M)

Net industrial debt (€B)

Liquidity (€B)

Trading profit (€M)

Cash & Mktable Securities Undrawn committed credit lines

Net revenues (€M)

Dec 31 ‘13

3.0

22.7 20.8

3.0

19.7 17.8

Mar 31 ‘14

EBIT (€M)

Q1 ‘14 financial highlights

Q1 ‘14

Q1 ‘14 Dec 31 ‘13 Mar 31 ‘14

22,125

631 622

607

270

31

(173)

9.7 10.0

(1) Adjusted for the retrospective application of IFRS 11: Revenues €50M, Trading Profit +€13M, EBIT +€4M, Profit before Taxes +€4M, Net Profit unchanged

Note: Graphs not to scale

• Group revenues up 12% (17% at constant exchange rates)

Growth in NAFTA, APAC and Luxury brands

partially offset by reduction in LATAM while

EMEA flat

Luxury Brands nearly doubled in revenues,

with Maserati posting a 4x increase over Q1

2013

• Net profit of €87M excluding unusual items which included:

€332M post tax charge related to execution of UAW MoU

entered into by Chrysler

€223M non-cash gain for the remeasurement to fair value

of the previously exercised options on ~10% of Chrysler

Venezuelan Bolivar devaluation impact

• Net loss of €189M attributable to the owners of the parents

vs. net loss of €83M a year ago

• Income taxes positive for €50M vs. €133M charge in Q1 ’13

• Net industrial debt increased €0.3B excl. the acquisition of the remaining Chrysler equity (€2.7B) and adoption of IFRS11 effective Jan 1, 2014 (€0.4B)

• A €1.9B decrease over Dec 2013, mainly reflecting change in net debt and new bond issuances of €1B

• Cash neutral transactions for Chrysler’s refinancing of VEBA Trust Note

• Mass-market brands

NAFTA: -€117M

LATAM: -€49M

APAC: €135M

EMEA: -€72M

• Luxury brands: €139M

• Components: €42M

• Group trading profit down 1%, but up 6% on a

currency adjusted basis

• Mass-market brands

NAFTA: €380M (+3.2% margin)

LATAM: €44M (+2.2% margin)

APAC: €146M (+9.8% margin)

EMEA: -€110M (-2.5% margin)

• Luxury Brands: €139M (+11.5% margin)

• Components: €41M (+2.0% margin)

Q1 ‘14

Q1 ‘13 (1)

Q1 ‘13 (1)

Q1 ‘13 (1)

2.8%

margin

3.2%

margin

Acquisition of remaining VEBA ownership interests in Chrysler and adjustment for retrospective application of IFRS11

Reported

2.7

0.4



10,0

2,5 1,0

4,3

0,7 1,9

(0.7)

19,7

11,7

2,0 1,5

4,3

1,2 2,1 (0.7)

22,1

NAFTA LATAM APAC EMEA Luxury

Brands

Components Other &

Eliminations

Fiat Group

MASS-MARKET BRANDS

400

127 97

(107)

76 35

(21)

607

(117) (49)

135

(72)

139

42

192 270

NAFTA LATAM APAC EMEA Luxury

Brands

Components Other &

Eliminations

Fiat Group

EBIT before unusuals • Q1 ‘13: €186M • Q1 ‘14: €44M


Q1 ‘14 includes €223M non-cash and non-taxable gain for Chrysler call options value remeasurement

MASS-MARKET BRANDS

Q1 2013 Q1 2014

(1) Adjusted for the retrospective application of IFRS11: Revenues -€50M for the Group, +€14M for APAC, -€23M for EMEA. -€41M for

Eliminations and Adjustments. EBIT +€4M for the Group, -€1M for APAC, +€4M for EMEA, +€1M for Eliminations and adjustments

Note: Graphs not to scale; Numbers may not add due to rounding

• Group revenues up 12% (+17% at constant FX rates)

Higher volumes driving 17% growth in NAFTA (+22% at constant FX rate) and 52% in APAC (+60% at constant FX rate)

LATAM down 20% (-5% at constant FX rate)

EMEA flat vs. Q1 ‘13

Luxury brands up 76% driven by a four-fold increase at Maserati on strength of new models

Components up 7%, driven by Magneti Marelli and Comau

• Group EBIT excl. unusuals flat year-over-year

Excluding unusuals, NAFTA: -4%, LATAM: -75%

APAC: +39%

EMEA: +33%

Luxury Brands: +83%

Components: +20%

Q1 ‘14 financial highlights Performance by segment

(1)




(1) Adjusted for retrospective application of IFRS11: Revenues decreased by €50M, Trading Profit increased by €13M, EBIT increased by €4M, Profit before Taxes increased by €4M

€M (unless otherwise stated)

Fiat Group

Q1 ‘14 Q1 ‘13 (1)

Worldwide total shipments (Units ‘000)

1,113 1,020

Net Revenues 22,125 19,707

Trading Profit % of revenues

622 2.8%

631 3.2%

Investment income, net 33 23

EBIT BEFORE UNUSUALS 655 654

Unusual items, net (385) (47)

EBIT 270 607

EBITDA 1,438 1,673

Financial charges, net (493) (443)

Pre-tax result (223) 164

Taxes 50 (133)

Net result (173) 31

Net result excl. unusuals 87 78

Q1 ‘14 From trading profit to net result



• Net of acquisition cost of remaining VEBA ownership interest in Chrysler and impact from adjustment for retrospective application of IFRS11, a €0.3B increase in net industrial debt in Q1 2014 (a €0.5B cash absorption a year ago)

• Cash flow from operations almost fully covering capital expenditures for the period

Q1 ‘14 net industrial debt walk

(2,691) (365)

1,790

(1,443) (478)

274

(245) (189)

€M

(9,705)

Mar 31, 2014

Dec 31, 2013

(Adjusted)

Industrial EBITDA

(ex unusuals)

Financial charges (*)

& Taxes

Change in funds & others

Working capital

Capex

(*) Excluding IAS19 Numbers may not add due to rounding

Change in Net Industrial Debt

(291)

Cash Flow from operating activities, net of Capex

(102)

Scope, FX & Dividend

(9,996)

(6,649)

Dec 31, 2013

Acquisition cost of

remaining VEBA

ownership interest in Chrysler

IFRS 11 adoption

APPENDIX


Fiat Group monitors its operations through the use of various supplemental financial measures that may not be

comparable to other similarly titled measures of other companies. Accordingly, investors and analysts should

exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial

measures reported by other companies. Fiat Group management believes these supplemental financial

measures provide comparable measures of its financial performance based on normalized operational factors,

which then facilitate management’s ability to identify operational trends, as well as make decisions regarding

future spending, resource allocations and other operational decisions.

Fiat Group’s supplemental financial measures are defined as follows:

Trading Profit (Loss) is computed starting with Net Revenues less operating costs (cost of sales, SG&A,

R&D costs, other operating income and expenses)

Earnings Before Interest, Taxes (“EBIT”) is computed starting from Trading profit (loss) and then

adding restructuring costs, other income/expenses that are unusual in the ordinary course of business

(such as gains and losses on the disposal of investments) and the Result from investments

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) is computed starting

with EBIT and then adding back depreciation and amortization expense

Net Industrial Debt is computed as debt plus other financial liabilities related to Industrial Activities less

(i) cash and cash equivalents, (ii) current securities, (iii) current financial receivables from Group or

jointly controlled financial services entities and (iv) other financial assets. Therefore, debt, cash and

other financial assets/liabilities pertaining to Financial Services entities are excluded from the computation

of Net Industrial Debt

Supplemental financial measures

11 May 6, 2014 Q1 2014 Results Review

TOTAL NAFTA Q1 ‘14 Q1 ‘13

Shipments (k units)

585 510

Revenues (€M)

11,732 10,012

Trading Profit

(€M) 380 397

EBIT

(€M) (117) 400

FINANCIAL PERFORMANCE

• Continued industry growth (U.S. & Canada) and Group’s new products supportive of higher vehicle sales

• Revenues up 17% (+22% in USD terms) on higher shipments

• Q1 trading profit down 4% (flat in USD terms)

Net of FX impacts, there was flat performance for Q1 as increased volumes were offset by higher D&A, R&D expenses and costs related to the recent recall campaigns

Trading margin at 3.2%

• Q1 EBIT negative for €117M due to unusual items

€491M expense recognized in connection with the execution of the UAW Memorandum of Understanding entered into by Chrysler on January 21st

COMMERCIAL PERFORMANCE & HIGHLIGHTS

• Q1 shipments up 15% y-o-y driven by new Jeep Cherokee, Ram pickup and Dodge Journey

U.S.: 493k vehicles, up 17% vs. prior year

Canada: 72k vehicles, up 4%

Mexico & other: 20k vehicles, down 4%

• Q1 vehicle sales up 9% to 556k vehicles, above the market in both U.S. (+11%) and Canada (+5%)

• U.S. & Canada combined sales

Jeep (+44%), Ram (+23%) and Fiat (+19%) thanks to new Jeep Cherokee, Ram 1500 pickup and new Fiat 500L

Chrysler (-10%) and Dodge (-8%) brands down partially due to reduced Chrysler 200 / Dodge Avenger sales as all-new Chrysler 200 being readied for production

• U.S. dealer inventory at 71 days supply

Mass-market brands Highlights


€B • Volume increase of 75k vehicle shipments, primarily related to new Jeep Cherokees and Ram Pickups

• Positive mix primarily reflecting higher retail volumes and lower fleet volumes

• Negative net price reflecting competitive pressures in the markets

• Industrial costs impacted by cost of vehicle content enhancements on newly launched products, higher D&A and R&D, and costs for recall campaigns

• SG&A costs primarily reflects higher advertising costs

• Other primarily reflects €491M expense recognized in connection with the execution of the UAW Memorandum of Understanding entered into by Chrysler on January 21st

400

(117)

427

(62)

(366) (46)

(470)

Q1 ‘13 Net price Industrial costs

SG&A Investments / FX / Other

Q1 ‘14 Volume & Mix

Mass-market brands EBIT walk


Q1 Q4 Q2 Q3 Q1 Q3 Q2 Q4 Q1 Q2

2011 2012

QUARTERLY MARKET SHARE

(%)

INDUSTRY VOLUME & OUTLOOK (M UNITS)

0.36 0.37

Q1 '13 Q1 '14

Q3 Q4 Q1

U.S.

• Q1 ‘14 industry up 1.5% vs. prior year

Cars -4%; trucks +7%

• Q1 ‘14 Group sales up 11% vs. prior year

March 2014 being the 48th consecutive month of year-over-year sales gains

Jeep brand posted best sales month ever in March (+47% over prior year)

Ram pickup truck sales best March in 10 years

• Q1 ‘14 market share up 110 bps, driven by 19% increase in retail sales

Fleet mix down to 23% from 28% in prior year

Retail of retail market share* up 160 bps to 12.0%

All-new Jeep Cherokee contributes 36k vehicles

CANADA

• Q1 ‘14 industry up 1% vs. prior year

Cars -8%; trucks +7%

• Q1 ‘14 Group sales up 5% vs. last year

Market leader for the quarter

52 months of year-over-year sales gains in March

Best Q1 sales since 2000

Q1 sales records for Jeep and Ram Truck brands

• Market share up 60 bps vs. prior year 2013

3.75 3.81

Q1 '13 Q1 '14

2014

* Company calculation: retail sales (excl. fleet) vs. industry retail sales (excl. fleet)

9,2

11,2 11,4 12,5

14,7 15,0 16,0

16,6

Mass-market brands Market trends & business dynamics



• Overall industry in the region down 3% to 1.3M units

• Revenues down 20% (-5% net of unfavorable currency effects)

• Trading profit down €142M due to input costs inflation, lower volumes, poor business conditions in Venezuela and negative currency translation impact


• EBIT performance impacted by ~€100M Venezuela bolivar devaluation


• Total group shipments at 205k down 11%

Brazil: 171k units, a 10% decline compared with exceptionally strong performance in Q1 2013, particularly in A/B segments, benefiting from increased demand driven by government tax sales incentives in Brazil

Argentina: 25k units (-13%), reflecting general weaker trading conditions and local currency devaluation impacting imports

Other LATAM markets: 9k units (-13%) reflecting conditions in Venezuela

• Company and dealer inventory levels at ~30 days of supply at quarter-end in line with prior year

TOTAL LATAM Q1 ‘14 Q1 ‘13

Shipments (k units)

205 230

Revenues (€M)

1,965 2,468

Trading Profit (€M)

44 186

EBIT (€M)

(49) 127



€M

Q1 ‘13 Net price Industrial costs

SG&A Investments FX / Other


• Negative volume, reflecting decline in Brazil, Argentina and Venezuela partially offset by better product mix in Brazil

• Better net price due to pricing actions in Brazil associated with new product launches

• Industrial costs impacted by adverse FX on imported materials, input cost inflation as well as Pernambuco plant start-up costs

• SG&A mainly reflecting reduction in advertising expenses

• Other mainly relates to currency devaluation in Venezuela

127

(22)

33

(132)

3

(58) (49)




(PASSENGER CARS & LCVS; %)

INDUSTRY VOLUME & OUTLOOK (TOTAL LATAM; M UNITS)

Passenger cars LCVs

2011 2012 2013

REGIONAL OVERVIEW

Brazil

• Overall industry down 2% to 776k, mainly reflecting first step in the return to pre-incentive IPI tax rates with an increase of 1 to 2 percentage points

• Q1 2014 share in line with prior year and 270 bps higher than Q4 2013

Group maintained leadership in Brazilian market

Q1 share representing a 490 bps lead over the nearest competitor

• Group products continued their strong performance

Combined A/B segment share at 24.3%

A 17% jump in sales for Grand Siena

Strada and New Fiorino up 42% and 64%, respectively, thanks to refreshed model launches

Argentina

• Industry down 12% to 211k units with Group sales down 5% to 28k

A 100 bps share gain on the back of strong performance of Punto (+40% over prior year)

1.1 1.0

0.2 0.3

Q1 '13 Q1 '14

1.3

11,0 12,1 12,2 13,2

22,3 22,7 22,9 22,7

Q1 Q3 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2014

1.3



TOTAL APAC Q1 ‘14 Q1 ’13(1)

Shipments

(k units) 54 32

Revenues

(€M) 1,497 982

Trading Profit

(€M) 146 105

EBIT (€M)

135 97


• Strong overall demand in the region (+12%) with continued growth in China, Japan and South Korea, partially offset by slight demand contraction in India and Australia

• Revenues up 52% (+60% at constant exchange rates)

Shipments up 69% driven by Jeep, Fiat and Dodge brands

• Trading profit up 39% versus Q1 2013

Increase primarily driven by higher volumes, partially offset by increased industrial and SG&A expenses to support expansion in the region

Trading margin remained strong at 9.8%

• Trading profit improvement not fully reflected in EBIT (+39% vs. a year ago) due to industrialization costs incurred by Chinese joint venture


• Retail sales (incl. JVs) up 54% to 59k vehicles

Jeep (47% of total Group sales in APAC) up 28% vs. prior year

Fiat brand volumes +94% driven by Fiat Viaggio in China and Fiat Punto in India

• Jeep Cherokee and Fiat Ottimo launched in China during first quarter

• Increased penetration of Fiat brand in India, outpacing a slightly contracting market down 4%

(1) Adjusted for retrospective application of IFRS11: Revenues +€14M, trading profit +€5M, EBIT -€1M Note: APAC industry reflects aggregate for key markets where Group competes (China, India, Australia, Japan, South Korea)



€M

• Improvement of Volume/Mix reflecting higher shipments

• Net pricing impacted by increasingly competitive environment, particularly in China

• Industrial costs impacted by higher R&D and fixed manufacturing costs for new product initiatives and higher production volumes

• Increased SG&A expenses to support volume growth and new product launches

• Other primarily reflects unfavorable FX impact

97

135

165

(17)

(40)

(47) (23)


(1) Adjusted for retrospective application of IFRS11 (-€1M)

Q1 ’13 (1) Net price Industrial costs

SG&A Investments / FX / Other



INDUSTRY VOLUME1

(PASSENGER CARS & LCVS; M UNITS)

6,5 7,4

Q1 '13 Q1 '14

Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2014 2011 2012

Q2 Q3 Q4

2013

0,26% 0,33%

0,58%

0,80%

1,4%

1,9%

3,0%

3,9%

0,84% 0,66%

0,14%

0,62%

0,25% 0,26%

0,27%

0,34%


(PASSENGER CARS & LCVS; %)

Q1

REGIONAL OVERVIEW

Group sales (incl. JVs) up 54% outperforming industry (+12%) driven by strong performance in China and India

CHINA

• Group sales up 58% in an industry growing 13%

Share gain of 23 bps from Fiat Viaggio, Dodge Journey and continued growth of Jeep brand

Launch of Fiat Ottimo, Jeep Cherokee in Q1 2014

AUSTRALIA

• Group sales up 25% outperforming in a slightly contracting market (-2%)

Posted a 85 bps share gain vs. Q1 2013

Fiat, Alfa Romeo and LCVs sales up ~2x from a year ago

INDIA

• Sales at ~3x last year’s level with continued ramp-up under newly established, wholly-owned and growing distribution network, outpacing in an industry down 4%

Share gain of 48 bps over prior year

Launch of Fiat New Linea in Q1 2013

JAPAN

• Group sales up 52% with market up 21% due to anticipated consumption tax increase starting Apr. 1, 2014

SOUTH KOREA

• Sales up 12% outperforming industry up 7%


1.Reflects aggregate for key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea)


TOTAL EMEA Q1 ‘14 Q1 ‘13(1)

Shipments (k units)

259 245

Revenues (€M)

4,341 4,327

Trading Profit (€M)

(110) (150)

EBIT (€M)

(72) (107)


• EU28+EFTA industry posted the 3rd consecutive quarterly year-over-year gain, with all major markets in positive territory

Italy grew, after 10 consecutive quarters of decline

• Q1 revenues slightly up on the back of 6% growth in shipments volume

• Trading loss for the quarter reduced by €40M

Improvement driven by better volumes, better product mix and industrial efficiencies

• Q1 EBIT loss reduced by nearly a third

Improvement reflecting operating performance and better results from investments notwithstanding unfavorable FX impact of Turkish Lira


• Overall shipments up 14k units, or +6%

Passenger cars: a 9k units increase to 204k units (+4%), mainly driven by performance in Italy

LCVs: higher shipments in line with industry volumes (up 5k units or +9% to 55k units)

• Strict management of supply and demand function

Company & dealer inventories stable at ~2-months supply


(1) Adjusted for retrospective application of IFRS11: Revenues -€23M, Trading profit +€7M, EBIT +€4M


€M

Q1 ’13 (1) Net price Industrial costs

SG&A Q1 ‘14 Volume & Mix

Investments / FX / Other

(107)

33

(41)

50

17

(24) (72)

• Positive impact from volume increase and better mix driven by performance of Fiat 5oo family and Ducato

• Price pressure continuing

• Improvement in industrial costs driven by WCM program efficiencies & purchasing savings partially offset by higher R&D amortization & start-up costs

• Continued implementation of cost containment actions in SG&A spending, mainly related to reduced advertising


(1) Adjusted for retrospective application of IFRS11 (decreased by €4M)


3.1 3.4

Q1 '13 Q1 '14


(%)


0.36 0.38

Q1 '13 Q1 '14

EU28+EFTA

Q1 Q4 Q2 Q3 Q1

2011 2012

Q4 Q2 Q3 Q1 Q4 Q2 Q3 Q1

2013 2014

7,3 6,3 6,4

29,3 27,9 29,0

EU28+EFTA

EU28+EFTA

• Q1 industry up 8%

Higher Q1 since 2010

Among major markets, growth primarily driven by

A double-digit performance in UK (+14%) & Spain (+12%)

Single digit growth in Italy (+6%), Germany (+6%) and France (+3%)

Other countries up 9% in aggregate

• Q1 Group sales up 2% to 202k units

• Share in Italy down 90bps as a result of brand repositioning strategy and greater focus on retail sales

• Q1 share in EU28+EFTA at 6.0%

Share gains in fastest recovering markets

UK: +20 bps at 3.2%

Spain: up 50 bps at 4.3%

Outside Italy share at 3.2%

Share performance in certain countries, primarily Germany, impacted by network re-organization process (started Q1 ’14)

28.1

6.0

Mass-market brands Passenger cars: market trends & business dynamics


QUARTERLY MARKET SHARE*

(%)


0.38 0.41

Q1 '13 Q1 '14

* Due to unavailability of official data for the LCV market since Jan 2011, figures reported beyond that date are an extrapolation. Therefore, marginal discrepancies versus actual data may exist

EU28+EFTA

EU27+EFTA

0.02 0.03

Q1 '13 Q1 '14

• Q1 industry up 9% in EU28+EFTA to 412k units with mixed trend among the major markets

All majors markets up, except France

Spain: +39%

Italy: +17%

UK: +15%

Germany: +6%

France: -1%

• Group sales in EU28+EFTA up 7% to 47k units

• Fiat Professional share down 30 bps as a result of unfavorable market mix and seasonality in fleet renewal in France

Italy: 80 bps share gains to 44.3%

UK: +70 bps to 5.2%

Share loss in Germany (-100 bps, mainly driven reduced fleet sales) and France (-150 bps)

Spain: share substantially flat

• Ducato at top of its segment (25k units sold) with 20% market share and more than 300 bps gap vs. its nearest competitor

EU28+EFTA

Q1 Q4 Q2 Q3 Q1

2011 2012

Q4 Q2 Q3 Q1 Q4 Q2 Q3 Q1

2013 2014

12,8 11,2 11,7 11,4

46,9 42,3 43,5 44,3

Mass-market brands LCVs: market trends & business dynamics


USA 29%

European Top-5 32%

China, Hong Kong & Taiwan

25%

Japan 8%

Others 6%

North America

32%

European Top-4 15%

China 25%

Japan 4%

Others 24%

• Q1 revenues up 13% to €620M

Shipments of street cars down 6% to 1,699 units (including 28 units of LaFerrari), reflecting strategy of managing restricting volumes to preserve brand’s exclusivity

12-cyl models up 37% driven by the success of F12 Berlinetta and FF

8-cyl models down 19%, pending launch of new California T in Q2 but with a good performance of the new 458VS

North America (+8%) remained #1 market

Top-5 European markets down 10%

Double-digit growth in Japan

China flat with temporary decreases in Hong Kong and Taiwan expected to pick up in H2

• EBIT stable at €80M

Improved sales mix compensated for lower volumes

• Revenue 4x higher to €649M

Shipments of 8,041 units (vs. 1,304 units in Q1 ‘13) reflecting volume growth in all markets driven by Quattroporte and Ghibli, both launched in 2013

North America: 2.6k units (vs. 0.5k in Q1 ‘13); #1 markets

China: 2k units (13x vs. last year volumes); #2 market

Europe: 1.7k units (7x last year’s levels)

• EBIT at €59M

A €63M swing in trading profit reflecting volume increase and continued cost discipline


Luxury brands


Q1 ‘13 Q1 ‘14

173 162

(6) (5)

Q1 ‘13 Q1 ‘14

• Revenues down 6% (up 6% on constant scope of operations)

Cast Iron business unit up 9% in volume (continuing ops), with positive performance in Mexico more than compensating for a decrease in Brazil

Aluminum business unit up 24% in volume

• EBIT performance nearly flat vs. Q1 ‘13

Note: graphs not to scale

Q1 ‘13 Q1 ‘14

307

361

9 9

Q1 ‘13 Q1 ‘14

• Revenues up 18%

Increase attributable primarily to Body Welding business

• EBIT in line with Q1 ‘13

• Order backlog at nearly €1B, -2% over year-end 2013


Q1 ‘13 Q1 ‘14

1,469 1,574

30 37

Q1 ‘13 Q1 ‘14


• Revenues up 7% (+13% at constant exchange rates)

Lighting up 14% on the back of positive performance in Europe, NAFTA and China

Electronic Systems up 11%, driven primarily by sales of telematics boxes and navigation systems to non-captive customers

Powertrain flat at constant exchange rate , with slight growth in China and India offset by a contraction in Europe

• EBIT up 16%

Higher revenues, cost containment actions and efficiencies achieved contributed to profitability expansion

Trading margin improved 40 bps to 2.4%

Operational Highlights

• NAFTA, China and Europe all positive

• Benefits from a slight improvement in Brazil nulled by weakening of local currency

• Order intake up 27% to nearly €600M

Components


Q1 ‘13

54

Q1 ‘14

LATAM -11%

APAC +69%

NAFTA +15%

EMEA +5%

9%

1,113 1,020

245

230

510

32

(units in thousands)

Note: Numbers may not add due to rounding; Graphs not to scale

2.2

0.2

FY ‘14

(units in M)

FY ‘13

4.5-4.6

~1.0

~2.4

>0.2

3 Luxury +385%

0.02

~0.9

0.05

4.4

EMEA

NAFTA

LATAM

APAC

Luxury

585

1.0

1.0 259

Business environment overview Group shipments (excl. JVs)

205

10


Note: APAC reflects aggregate for key markets where Group competes (i.e. China, India, Australia, Japan, South Korea)

LATAM

Passenger cars LCVs

4.7 4.5

1.2 1.3

FY '13 FY '14E

5.9 5.8

APAC NAFTA

• Canada trending in line with industry volume expectations to par with prior record year

• U.S.: Q1 seasonally adjusted annualized volumes (16.0M) supportive of company outlook for FY 2014 industry volume

EMEA

Passenger cars LCVs

EU28+EFTA

Slightly improved outlook for the aggregate demand of passenger cars and LCVs vs. prior expectations

• Passenger Cars

EU28+EFTA: +3%

Italy and Germany +4%

France stable

• LCVs

EU28+EFTA now projected to prior level’s

Italy expected to post a 4% increase

(*)

• LATAM market in 2014 expected to perform in line with prior year

• Brazilian industry in line with prior year

• Argentina industry to decline double-digit due to import restrictions and higher sales tax on high-end segments

FY '13 FY '14E

26.1 ~27

• Industry projected up 5%

Improvement driven by China, India, South Korea and Australia offset by contraction in Japan

• Group targeting to increase ~70% in retail sales (incl. JVs)

Growth driven primarily by Fiat, Jeep and Dodge brands

Business environment overview Market outlook (M units)

12.3 12.6

1.6 1.6

FY '13 FY '14E


Note: Numbers may not add due to rounding; total cash maturities excluding accruals

Outstanding Mar. 31, ‘14

Fiat Group 9M 2014 2015 2016 2017 2018 Beyond

10.8 Bank Debt 2.6 1.9 1.1 2.9 1.7 0.7

17.2 Capital Market 2.3 2.0 2.3 2.2 1.9 6.6

2.2 Other Debt 0.9 0.2 0.2 0.2 0.1 0.6

30.2 Total Cash Maturities 5.7 4.1 3.6 5.3 3.6 7.9

17.7 Cash & Mktable Securities

3.0 Undrawn committed credit lines

20.8 Total Available Liquidity

3.8 Sale of Receivables (IFRS de-recognition compliant)

2.2 of which receivables sold to financial services JVs (FGA Capital)

Debt maturity schedule (€B)


GROUP INVESTOR RELATIONS TEAM

Marco Auriemma +39-011-006-3290 Vice President

Maristella Borotto +39-011-006-2709

Francesca Ferragina +39-011-006-2308

Timothy Krause +1-248-512-2923

Paolo Mosole +39-011-006-1064

fax: +39-011-006-3796

email: [email protected]

websites: www.fiatspa.com

www.chryslergroupllc.com

Contacts

Documents

Q1 2014 Results Review - FCA Group...May 6, 2014 (as amended on July 3, 2014) Q1 2014 Results Review (amended) 2 Safe Harbor Statement Certain information included in this presentation,