The American Contribution to Global Carco. Bank of America / Merrill Lynch Annual 2011 Leveraged Finance Conference December 1, 2011

Transcription

1 The American Contribution to Global Carco Bank of America / Merrill Lynch Annual 2011 Leveraged Finance Conference

2 Forward Looking Statements This document contains forward looking statements that reflect management's current views with respect to future events. The words "anticipate, "assume, "believe, "estimate, "expect, "intend, "may, "plan, "project" and "should" and similar expressions identify forward looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: the effective implementation of the Chrysler Group business plan outlined on November 4, 2009, including successful vehicle launches; industry SAAR levels; continued economic weakness, especially in North America, including continued high unemployment levels and limited available financing for our dealers and consumers; introduction of competing products and competitive pressures which may limit our ability to reduce sales incentives; supply disruptions resulting from the natural disasters and other events impacting our supply chain; and our ability to realize benefits from our industrial alliance with Fiat. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forwardlooking statement, which speaks only as of the date on which it is made, except as required by law. Further details of potential risks and uncertainties that may affect Chrysler Group are described in Chrysler s Form 10 filings. Information included herein regarding Fiat's future business plans, products or financial performance was provided by Fiat and is subject to the risks described under the heading "Risk and Uncertainties" on the Investor Relations page of its web site: The forward looking statements included in this information relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Information on, or accessible through, the Company's website is not a part of, and is not incorporated into this document. 1

3 One Group 2

4 Creation of a Global Automaker Milestones in the Integration of Fiat & Chrysler Group 2009 June: 20% initial ownership interest in Chrysler Group LLC 2011 January: achievement of 1 st Performance Event by Chrysler Group April: achievement of 2 nd Performance Event by Chrysler Group May: exercise of Incremental Equity Call Option by Fiat July: purchase of ownership interest in Chrysler Group from UST and Canada by Fiat plus UST rights under Equity Recapture Agreement By year-end: expected achievement of 3 rd Performance Event, moving Fiat s interest in Chrysler Group up to 58.5% from current 53.5% From July 1 st, 2012 until June 30 th, 2016: Fiat has the option to purchase 40% of VEBA s original interest in Chrysler Group. Option is exercisable not in excess of 20% of Covered Interest in any 6 month period. Before an IPO, exercise price is based on a market multiple not to exceed Fiat s multiple applied to Chrysler Group reported LTM EBITDA less net industrial debt and following an IPO based on trading price of common stock In addition to above option, under Equity Recapture Agreement: i) Fiat may purchase any remaining membership interest held by VEBA at a specified threshold ($4.25bn plus 9% p.a. compounded annually from Jan 1, 2010), and ii) Fiat receives all proceeds from Chrysler Group ownership interest held by VEBA over the above threshold (and once such threshold is reached, any remaining shares are turned over to holder) Chrysler Group pro forma shareholder structure (on a fully diluted basis) VEBA 41.5% FIAT 58.5% 3

5 Established One Leadership Team Global Executive Council CEO Sergio Marchionne CHIEF OPERATING OFFICERS NAFTA Sergio Marchionne EMEA Gianni Coda LATAM Cledorvino Belini APAC Michael Manley Components (Magneti Marelli) Eugenio Razelli Systems & Castings (Comau & Teksid) Riccardo Tarantini BRAND LEADERS Fiat Olivier François Commercial Vehicles Lorenzo Sistino Alfa Romeo Abarth Maserati Harald Wester Lancia Chrysler Saad Chehab Jeep Michael Manley Dodge Reid Bigland Parts & Service (Mopar) Pietro Gorlier Chief Marketing Officer Olivier François INDUSTRIAL PROCESS LEADERS Chief Technology Officer Harald Wester Design Lorenzo Ramaciotti Chief Manufacturing Officer Stefan Ketter Group Purchasing Vilmar Fistarol Quality Doug Betts Powertrain Coordinator Bob Lee Product Portfolio Management Mark Chernoby SUPPORT/ CORPORATE LEADERS Business Development Alfredo Altavilla Fiat Services & Holdings Alessandro Baldi Chief Financial Officer Richard Palmer Chief Human Resource Officer Linda Knoll 4

6 Operational Momentum 5

7 State of the Company at June 2009 and Challenges Ahead A Solid Foundation... Brands with strong heritage in North America, Jeep globally recognized US distribution network re sized Complementary partnership with Fiat established Experienced and talented workforce Competitive labor rates and significantly restructured OPEB liabilities Sufficient liquidity to launch a credible business plan with speed being of the essence...but Several Key Challenges Ahead Regain customer trust and confidence, reduce reliance on high incentives Reverse slide in market share Refresh aged product line up Develop competitive, brand relevant focused vehicles and complete C & D segment offerings Close gap in quality and reliability vs competition Focus on more fuel efficient product portfolio Streamline development processes, drive architecture convergence with Fiat Improve manufacturing infrastructure and empower workforce Reconstruct supply base and converge with Fiat Develop International distribution leveraging Jeep and Fiat brands Rebuilding Brand Equity 6

8 Chrysler Group Gaining Market Share in U.S. and Canada 19 consecutive months of U.S. year over year increases 80% 70% 71% YEAR-OVER-YEAR SALES CHANGE (%) 11.3 MARKET SHARE (%) % 50% 40% 30% 20% 10% 0% 58% 27% 23% 17% 13% 31% 23% 17% 36% 37% 27% 18% 10% -3% 46% 30% 8% 33% 20% 1% 42% 50% 40% 31% 27% 27% 8% 11% 8% -10% Jan Feb Mar Apr May Jun Jul Aug Sept Oct 2011 CG US Retail Only Sales CG U.S. Total Sales U.S. Industry Year over year sales growth in the U.S. is outpacing the industry Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q U.S. Q share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q Six consecutive quarterly year-over-year share gains Fleet mix at 26%, down from 34% Steady increase in market share primarily resulting from momentum of 16 new and significantly refreshed products All-new Jeep Grand Cherokee, new Chrysler 200 and Dodge Durango continue to boost sales Canada Share steadily increased from 2009 lows Q share at 14.5%, up 1.7 ppt vs. a year ago Retail sales (excluding fleet) increased 10% Retail of retail market share * increased to 13.4%, up 1.6 ppt * - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet) 7

9 The 16 New and Significantly Refreshed Product Driving Sales in all Segments October YTD 2011 U.S. retail only sales versus October YTD 2010 A/B SEGMENT C SEGMENT D SEGMENT E SEGMENT F TRUCK Town & Country Up 49% New 44K Up 71% Up 4% Up 39% Avenger Up 34% Journey Up 11% Charger Challenger Grand Caravan Up 79% Up 9% Dn 13% Durango New 29K Up 53% Up 309% Up 58% Up 13% Up 27% Up 101% Chassis Cab Up 18% Up 97% New 11K 500 & Convertible New 11K The new Dodge C Sedan coming in H will fill a void in the largest worldwide segment 8

10 New C and D Segment Entries Heart of the Market 200 & Convertible C Sedan (launching H1 2012) All new interior with world class craftsmanship; new exterior design High fuel economy standards compared to segment average (Hwy 29/31 for V6/I4 engines, respectively) Top Safety Pick for 2011 by the Insurance Institute for Highway Safety Named 2012 Motor Trend s Car of the Year Contender Award winning Imported from Detroit campaign 2011 Sales (000 s): Q1 Q2 Q3 The ultimate blend of power, performance, fuel economy and style Dodge is entering the largest retail segment in the U.S. with a vehicle from the combined Fiat Chrysler Compact architecture Mid size roominess with compact car fuel economy at a compact car price Includes the segment s most powerful lineup of engines Hundreds of ways to customize from the factory Best in class technology and safety Marchionne insisted the 200 had to be remade and Chrysler s engineers responded to the challenge. The car was given a complete makeover inside and out. The results were impressive. 9

11 Investments in Quality Proving Successful WARRANTY CLAIM RATE (CONDITIONS) CUSTOMER PROMOTER SCORE YEAR 3 OF OWNERSHIP) Warranty claims down 58% since their peak Lowest warranty rate in our corporate history Warranty impact of launch and quality spikes reduced by more than 70% Respondents likely to recommend brand to friend/colleague improved by 48% over the last 2 years Other Achievements: Favorable new model reviews from key opinion makers boosting perceived quality Eight Best Buys from Consumers Digest (Chrysler 300, Town & Country, Jeep Grand Cherokee, Dodge Durango, Grand Caravan, Challenger, Ram 1500 and Fiat 500) Third party awards total over 100 in 2011, to date 10

12 New Powertrains Leading to Improved Performance and Fuel Economy V6 Pentastar Engine Family Highly fuel efficient V6 engine family; first launched in 2011 Jeep Grand Cherokee Fuel efficiency improvement up to 10% Flexible family architecture for downsized displacement, Direct Injection, Turbo Charging and MultiAir Produced in two state of the art manufacturing facilities in Trenton (US Michigan) and Saltillo (Mexico); ~1 million engines target per year FIRE MultiAir Engine 8 Speed RWD Transmission Fuel Economy Improvement for Chrysler 300 and Dodge Charger % Extensive manufacturing base for FIRE engine: US Michigan, Brazil, India and Italy MultiAir add on package on base engine; shot by shot control of air / fast response continuously variable valve lift Up to 10% fuel economy improvement; strong reduction of HC/CO/NOx emissions VM Motori 2.8L & 3.0L Diesel Engines Applied to Chrysler Grand Voyager, Jeep Wrangler, Chrysler 300, Lancia Thema and Jeep Grand Cherokee in Europr 24% (Grand Voyager) and 27% (Thema) improved fuel consumption vs. 3.6L gas engine Meets Euro 5b emmissions; Biodiesel capable 2011 MY 2012 MY First NAFTA OEM implementation of 8 speed transmission technology; to be followed by 9 speed transmission in 2013 Provides 8 12% increase in EPA Combined Fuel Economy for Chrysler s RWD V6, V8 and small Turbo Diesel applications (vs. 5 speed transmission); and reduces CO 2 emissions Delivers improved performance and shift quality over conventional 5 and 6 speed transmissions Will be available across Chrysler Group s RWD product portfolio; first application with the 3.6L V 6 Pentastar Dodge Charger and Chrysler 300 vehicles 11

13 Improving Competitiveness Through Shared Architectures Segment LCVs Mini Small Chrysler Architecture Plan 7 * Fiat Based 1 Fiat Based 0 Fiat Based A/B-Segment C/D-Segment E-Segment Compact * Excludes Truck and Specialty Large The 3 main Group architectures expected to exceed 1M units each by 2014 Minivan SUV 1M units Pick up Origin of architecture E 2014E E 2014E E 2014E Mini Small Compact Chrysler Group Fiat Fiat Chrysler Group Over half of 2014 car volumes based on Fiat-derived architectures, with three architectures to achieve 1 million vehicles combined each 12

14 Continued Product Investments Capital expenditures and capacity utilization $Bil Product Spending 5.6 Capital Spending Vehicle Engineering / ER&D (1) Optimal allocation of production Cars developed on common architectures can be allocated to same flexible manufacturing plant to optimize industrial costs, including supply chain costs Model A Fiat Model B Fiat Plant A Plant B Model A Chrysler Group Model C Chrysler Group % Utilization 100% 80% Capacity Utilization 73% Harbour 93% Announced Plant Investments 2 : Sterling Heights Assembly Plant New Body Shop $0.2 B Sterling Heights Assembly & Stamping Plants 0.9 Toledo Machining 0.1 Toledo Assembly Complex 0.5 Trenton North Engine Plant 0.1 Kokomo transmission facilities 1.3 Belvidere Assembly Plant 0.6 Global Engine Manufacturing Alliance 0.3 Other (including supplier tooling) 0.5 $4.5 B 60% 40% 20% 0% 49% 2010A Technical 63% 2011 Fcst CG Production 1.6M 2.0M (excludes Purchased vehicles) Harbour definition = Two 8 hour 235 days Technical definition = 3 shifts in all plants (except 285 days) Capital investments are being made to enhance our product and expand the product line without adding brick and mortar capacity 1. ER&D includes expense for Product Design Office 2. Since Company began operations in June

15 New 4 Year UAW Labor Agreement Highlights Ratified in October Win Win for Chrysler Group and UAW New plant and product investments $4.5B in investments; 2,100 new entry level jobs Ratification, Performance, and Quality / WCM Bonuses Ratification bonus of $3,500, 50% delayed until a financial milestone is achieved; Performance and Quality bonuses total $4,000 over the contract period with 100% upside potential Gains for new hires Highest maximum rate increases to $19.28 per hour by end of contract; no cap on new hires No additional cost for traditional employee defined benefit pension plans New hire pension plan changed to a defined contribution plan; Legal Services Plan eliminated after 2013 Maintained overall labor cost competitiveness with foreign transplants ~$51 / hour all in Simplified and transparent profit sharing formula Based on 85% of reported worldwide Modified Operating Profit New 4 year national labor agreement with the UAW maintains Chrysler Group s cost competitiveness and links variable compensation directly to company performance and product quality 14

16 Combined Purchasing Power due to Integration with Fiat $31B $39B $70B $41B $45B $86B Sourcing table Joint sourcing development Working collaboratively with Fiat counterparts Weekly synergy call Strategic project updates Combined procurement efforts total forecasted level of $86B in 2011 vs. $70B in 2010, nearly tripled from 2010 standalone amount Strong and collaborative integration with Fiat Group Purchasing, leveraging Chrysler Group, Fiat and Fiat Industrial Exchange program well established and benefiting team cohesion since Q Global leads for commodities and services have been established 3 from Chrysler and 3 from Fiat Merged China office Joint commodity and supplier strategies in place for more than 90% of APV Establishing common approach to supplier relationship management 15

17 International Success and Future Volume Development October YTD Sales Gains (International Markets) +57% +18% Plus: Additional Opportunities in Brazil, China and Russia ~500K * (19)% +7% Fiat Europe East Eur, ME & Africa Asia- Pacific Latin America Europe Italy and France achieving significant gains; Chrysler brand vehicles being integrated into Lancia brand EEMEA Russia and South Africa achieving significant gains of 104% and 40%, respectively Asia Pacific Strength in China and Australia (two largest markets for Chrysler) with YTD gains of 71% and 36%, respectively Latin America YTD gains in all markets (except Venezuela) 215K 141K +4% 147K +37% 202K International growth driven by global Jeep brand Jeep Chrysler/ Lancia Dodge/ Ram * Forecast Includes vehicles produced by Chrysler for sale under Fiat brands 16

18 Driving Increased European Sales Performance * total Jeep sales up 55% over Q3 CYTD 2010 Strong 2011 Q3 Jeep sales up 135% over same period prior year to ~7K* units Grand Cherokee Compass +430% Wrangler & Wrangler Unlimited +63% +126% +18% +1,340% +59% Q3 YTD Q3 YTD Q3 YTD Q sales up 126% over same period prior year to ~2K units Grand Cherokee CYTD sales up 18% with ~ 4K units. Key actions Diesel engine launch June New 3.0 CRD delivering 8.3 L/100 km combined - 20% reduction in CO2 emissions versus prior model Compass sales up +1,340% over Q to ~2.5K units Compass CYTD sales up 430% over prior year to ~5K units Key actions Full availability of 2WD in Q3-40% mix Diesel powertrains introduced in 2011 with 6.3% improvement in CO 2 Q Wrangler sales up +59% over prior year to ~2K units Wrangler CYTD sales up 63% to ~6K units Key action Diesel fuel consumption improved in 2011CY to 7.1 L/100 km combined with 15% improvement in CO 2 * ACEA Source Passenger car only EU27 +EFTA 17

19 Grand Cherokee The Most Awarded SUV Ever ; worldwide sales success Jeep Grand Cherokee is the most awarded SUV ever, receiving over 30 awards from automotive journalist associations, print/on line/television media outlets and industry organizations Recently voted SUV of Texas and the Overland Summit model won top honors in the Luxury SUV category by the Texas Auto Writers Association 3.6L Pentastar V 6 engine delivers up to 23 MPG (highway) fuel efficiency and 550 mile driving range Jeep Grand Cherokee SRT8 available in the U.S.; to be available in Europe starting Q Sales increases in all markets (Q3 YTD 2011 versus Q3 YTD 2010) to 118k U.S. + 78% Canada + 86% Mexico +101% International + 73% Jeep Grand Cherokee Period-over-Period Worldwide Sales Gains 59% 174% 47% The 2012 Grand Cherokee, with its well trimmed and roomier interior, powerful V6 and more refined performance and ride, is in fighting shape as a top contender among midsize SUVs. Edmunds.com Q1 Q2 Q

20 300 New model builds on history as most awarded new car ever New If You re Gonna advertisements link the 300 to Imported from Detroit campaign First eight speed automatic transmission in a domestic, luxury sedan 3.6L Pentastar V 6 engine with 292 horsepower Best in class highway fuel economy, with 31 mpg highway Best in class V 6 AWD fuel economy, with 18 mpg city and 27 mpg highway World class interior takes domestic luxury to new level SRT8 version is the ultimate combination of world class luxury, power and handling U.S. sales gaining momentum as vehicle availability increases since Q (24)% (46)% +18% Q1 Q2 Q3 U.S. Sales 19

21 & Momentum is Accelerating New and improved products leading the charge for Dodge Dodge builds upon nearly 100 years of innovation, racing, and technology with design and value. In the past year, Dodge has launched six all new or completely redesigned vehicles making Dodge one of the youngest dealer showrooms in the country. The result Retail sales up 39% CYTD & countless new awards Charger SRT8 Super Bee Dodge Lineup Town & Country Charger Journey Avenger Challenger SRT8 392 Yellow Jacket Challenger Durango Street & Racing Technology Recent Awards: Dodge Charger named Automobile Magazine All Star for 2012 Dodge Durango named Full Size SUV of Texas by the Texas Auto Writers Association and a Top Safety Pick for 2012 by the Insurance Institute for Highway Safety Dodge and SRT A Perfect Match Awe inspiring powertrains Outstanding ride, handling and capability Benchmark braking Aggressive and functional exteriors Race inspired and high performance interiors 20

22 Truck Success New versions contribute to share increases Ram pickups continue to gain momentum in the marketplace with quarterly year over year gains during 2011 New versions driving share gains (versus 2010) in the Large Pickup segment Ram Pickup Period-over-Period U.S. Sales Gains 38% 23% Brand focus on Hispanic Market 18% Q1 Q2 Q3 Segment share increase (period over period) +1.6 ppt +3.3 ppt +1.3 ppt New, fully integrated Hispanic campaign A Todo Con Todo launched in key markets First ever Hispanic Mexican Regional music platform live 11/1 on Yahoo! La Banda Ram Hispanic Brand website and Mobile Sites launched Ram Laramie Longhorn The most luxurious Ram ever with a Western flair Highly crafted interior Ram 3500 H.O. Cummins with Max Tow Proven Cummins engine with 800lb ft of torque Best in Class 22,750 Trailer Tow Capability Ram 1500 Express Designed for a young, value oriented customer Standard 5.7L HEMI V8 engine 390 HP and 20 MPG Ram 1500 Tradesman Engineered for the cost conscious commercial customer Standard 5.7L HEMI V 8 engine Tows up to 10,400 pounds more than similar priced competitors Mossy Oak Edition The ultimate truck for 65% of truck customers who hunt, camp, fish and boat Based on the successful Outdoorsman package Ram partners with Mossy Oak the top Camo brand in the US 21

23 Brand in U.S. and Canada Fiat Dealers (U.S. & Canada) , ,721 Q Q Q ,000 Fiat Brand Sales (U.S. & Canada) 5,000 0 Fiat 500 Abarth Introduced at the Los Angeles Auto Show European racing traditions with world class performance and precision, purposeful and aggressive styling, and high power to weight ratio 1.4L MultiAir Turbo engine Facts: Fiat 500 and Fiat 500 Cabrio produced in Mexico Run rate target of 45 50K units annually Abarth version coming in 2012 Named candidate for 2012 North America Car of the Year Named Top Safety Pick for 2011 FIAT Jennifer Lopez Advertising Campaign The news about the Fiat 500 and Jennifer Lopez advertising campaign generated over 240 million overall media impressions FIAT brand sales increasing in U.S. and Canada; dealers, new editions and marketing campaigns continue to launch 22

24 Commercials 23

25 Financial Momentum 24

26 Financial Highlights Q Q $ Millions 1,400 1,200 Modified EBITDA 1,171 1,293 1,119 1, Modified Operating Profit (84) Adjusted Net Income (Loss) 1 (197) (172) (199) -400 Q Q Q Q Q Q Q Worldwide Shipments (000 s) Operating Profit break-even reduced to 1.5M vehicles 2 1. Excludes loss on extinguishment of debt of $551 million in Q Breakeven estimates and implied U.S. SAAR are illustrative one time calculations that reflect estimates of sales volumes and structural costs; Structural costs are composed of plant and corporate expenses, depreciation and amortization (excluding depreciation of equipment on operating leases), sales and marketing expenses and ER&D expenses Note Financial results based on U.S. GAAP see Non U.S. GAAP Financial Information and Other Items 25

27 Cash from Operations adding to Cash Balance Y T D $ Billions Change in Cash +$1.5 Free Cash Flow +$1.4 Change in Cash +$2.1 Free Cash Flow +$ (2.4) (0.5) (1.9) (0.3) (0.7) (0.3) (1.2) Dec 31, 2009 Modified EBITDA Working Capital & Other Capital Expenditures Pension / OPEB Taxes & Interest Debt Proceeds Net of Payments (1) Dec 31, 2010 Modified EBITDA Working Capital & Other Capital Expenditures Pension / OPEB Taxes & Interest Debt Proceeds Net of Payments (2) Sept 30, 2011 Note: Numbers may not add due to rounding 1. Debt Proceeds Net of Payments include proceeds from the Mexican development banks credit facility of $0.4B partially offset by payments on the Supplier Receivables SPV loan ($0.1B), and Canadian HCT Notes and other principal payments ($0.2B) 2. Comprised of the New Term Loan for $3.0B, the new Secured Senior Notes for $3.2B, and the Incremental Equity Call Option from Fiat of ~$1.3B, all used to repay UST and EDC Governments Debt of $7.6B and serve the Transaction Fees and Expenses for $0.2B Note Financial results based on U.S. GAAP see Non U.S. GAAP Financial Information and Other Items 26

28 Cash and Gross / Net Industrial Debt Y T D $ Millions Addition of Mexico Development Banks Loan Addition of Canada Health Care Notes 12,026 13,120 13,254 Refinancing of Gov t debt plus equity proceeds from Fiat 12,287 12,322 GROSS INDUSTRIAL DEBT 11,192 11,226 3,825 3,385 3,766 5,773 3,377 9,877 2,112 10,175 2,868 9,454 NET INDUSTRIAL DEBT CASH 7,367 7,841 8,260 7,347 Q Q Q Q Q Q Q Note Financial results based on U.S. GAAP see Non U.S. GAAP Financial Information and Other Items 27

29 Gross Industrial Debt Maturity Schedule $ Billions Gross Industrial Debt Annual Maturities September 30, 2011 (Carrying Value) Face Value Note: Excluding accrued and accreted interest Excludes Gold Key Lease (GKL) self liquidating debt Note: Numbers may not add due to rounding 28

30 Management of Financial Matters between Fiat and Chrysler Group Chrysler Group and Fiat manage financial matters, including treasury services, separately Chrysler Group has no guarantee, support or similar obligations in relation to any Fiat financing obligations, nor does Chrysler Group have any obligation or commitment to provide funding to Fiat Financial segregation is also provided for by legally binding documentation Agreements from Chrysler Group s recapitalization transaction completed on May 24, 2011 Agreements referring to Chrysler Group s recapitalization transaction also provides for significant limits on Chrysler Grop s ability to provide financial support to Fiat, including limits on dividends that can be paid Agreement from Fiat s Revolving Credit Facility on Oct 13, 2011 Credit Agreement provides for relevant limits to ability of Fiat financially supporting Chrysler Group, including limits on guarantees and limits on financial loans 29

31 Financial Targets from Nov 2009 Business Plan 2010 Actual 2011 Revised Guidance Net Revenue $42B >$55B ~ $57.5B * ~ $62.5B * ~ $67.5B * Modified Operating Profit & Margin $0.8B >2.0B $ B $ B $ B 1.8% 3.6% 5.2 to 6.0% 6.1 to 7.0% 7.0 to 7.7% Free Cash Flow $1.4B >$1.2B (from >$1.0B) $1B $1B $3B * Using mid point convention Target met or exceeded Source: 4Q 2010 and 3Q 2011 Earnings Presentations, Chrysler Group business plan outlined on November 4, 2009 Note: The financial targets set forth for are from our November 2009 business plan and have not been updated. These targets are subject to a number of risks and uncertainties, including those under the "Forward Looking Statements" slide. Accordingly, actual results may be materially different from those expressed above. 30

32 Contacts Chrysler Investor Relations Timothy Krause phone: Fiat, Group Investor Relations Marco Auriemma phone: Websites

33 Non U.S. GAAP Financial Information and Other Items The following Non U.S. GAAP Financial definitions apply when the presentation is referring to Adjusted Net Income, Modified Operating Profit (Loss), Modified EBITDA, Cash, Free Cash Flow and Gross and Net Industrial Debt. a) Adjusted Net Income is defined as Net Income excluding the loss on extinguishment of debt in Q b) Modified Operating Profit (Loss) is computed starting with net income (loss), and then adjusting the amount to (i) add back income tax expense and exclude income tax benefits, (ii) add back net interest expense (excluding interest expense related to financing activities associated with a vehicle lease portfolio the Company refers to as Gold Key Lease), (iii) add back all pension, other postretirement benefit obligations ( OPEB ) and other employee benefit costs other than service costs, (iv) add back restructuring expense and exclude restructuring income, (v) add back other financial expense, (vi) add back losses and exclude gains due to cumulative change in accounting principles, and (vii) add back certain other costs, charges and expenses c) Modified EBITDA is computed starting with net income (loss) adjusted to Modified Operating Profit (Loss) as described above, and then adding back depreciation andamortizationexpense(excludingdepreciationand amortization expense for vehicles held for lease) d) Cash is defined as Cash, Cash Equivalents and Marketable Securities e) Free Cash Flow is defined as cash flows from operating and investing activities, excluding any debt related investing activities, adjusted for financing activities related to Gold Key Lease financing f) Gross Industrial Debt is defined as total financial liabilities less Gold Key Lease financing obligations. Gold Key Lease financing obligations are primarily satisfied out of collections from the underlying securitized assets and out of collections from operating leases and proceeds from the sale of leased vehicles. Net Industrial Debt is computed starting with Gross Industrial Debt as described above, and deducting cash, cash equivalents and marketable securities 32