Balocco build finished Moving onto Lingotto. Sergio Marchionne Chief Executive

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2 Balocco build finished Moving onto Lingotto Sergio Marchionne Chief Executive

3 Group financial targets set in Balocco Jul Expected * Group Revenues Group Trading Profit/ Margin Group Net Income Group Net Industrial Debt Group Cash Flow from Operations Group break-even 1.6bn net loss 1.92:1 net debt to Group equity Neg. cash flow before exceptionals significantly reduced CAGR 6% 2% trading margin Net income of 1.4bn due to unusual items 0.34:1 net debt to Group equity Net ind. cash flow of 3.4bn due to unusuals Trading profit of ~ 1.85bn Net income of ~ 800mn Net industrial debt at ~ 2.0bn Net Industrial Cash flow of ~ 1.2bn 5-6% trading margin bn EPS 1.25/1.55 No more than 1:1 net debt to Group equity * In line with current year guidance 3

4 Plan Group financial targets set in 2006 Revenues ( bn) & trading margin % % ~54 5.1% 4.5% ~58 6.5% 5.9% ~ % 6.7% ~ % 7.2% Continuing operating performance improvements across all businesses Group revenue CAGR of 7.6% 2010 Group trading profit at ~ 5bn, 5x 2005 level Sound Capex & R&D spend to support growth 16bn E 2008E 2009E 2010E 1.26x D&A 2010 net income projected at ~ bn Trading margin range - Low Our commitment Trading margin range - High Cumulative dividend pay-out of ~ 2bn over plan period (assuming 25% pay-out ratio) Net cash-on-hand of ~ 3bn in

5 Group financial targets Group Revenues ~ 54bn ~ 58bn ~ 63bn ~ 67bn Group Trading Profit/ Margin bn 5+% bn 5.9%-6.5% bn 6.7%-7.3% ~ 5.0bn 7.2%-7.8% Group Net Income bn EPS 1.40/ bn EPS 1.90/ bn EPS 2.30/ bn EPS 2.65/2.80 Group Net Industrial Debt (a) ~0.5bn (b) Debt free Net cash bn Net cash ~ 3.0bn (a) Assuming dividend payout at a rate of 25% of annual net income (~ 2.0bn over period ) (b) Excluding Q4 share buy-back 5

6 What we have done in 2007 Financial highlights (Sep 07 YTD) Year-over-year Group revenue up 12.5% to 42.7bn Fiat Group Automobiles (FGA): +13% at 19.6bn, significantly better than market performance CNH: +10% to 8.8bn (+19% in US$ terms), increase in sales of higher hp tractors and combines, higher construction equipment outside NA Iveco: +23% at 7.9bn, highest growth rate among all Group businesses Trading profit up 62% to 2.3bn FGA: up 374mn to 570mn (2.9% margin at the top of FY target) CNH: up 39% to 762mn (8.7% margin) or 50% in US$ terms Iveco: +45% increase to 564mn (7.1% margin) Components: up 30% to 350mn Trading margin at 5.4% (3.7% in Sep YTD 06), comfortably above original % FY target range 6

7 Progress across the automotive board Sep 07 YTD Revenues up double digits in mixed market AG business Higher commodity prices driving market demand CNH sales up on better volume & mix, new products CE business Global industry unit sales up 13% (NA down 13%) CNH sales increase driven by higher volume, better mix, new products Revenues up double digit WE market share at 10.4% Slight decline in Light segment to support pricing Gains in Medium and Heavy segments Full, up-to-date product range now available in LA Comparable revenues up 16% on higher volumes and favorable mix Highest sales volume in past 7 years Passenger cars: up 148k units or 12% LCV: up 54k units or 23% Outperforming Western European market 1,021k units sold, up 6.4% Strong contribution from Brazil: 441k units, up 32% Passenger & Commercial Vehicles Revenues up 13% 1.9mn engines (+11.2%) & 1.5mn transmissions (+22.5%) Industrial & Marine Revenues up 17% Trading profit at 184mn (up 66mn vs. 2006) Improvement largely due to volume increase and purchasing & production cost reduction Quality improvements across all product ranges RoW (ex JVs) 201k units sold, up 21% Market share gains for tractors and combines, stable position in CE 7

8 2007 FY targets raised FY 2007 guidance revised upwards Consolidated trading profit in the range of bn (or 5+% trading margin) up from ~ 2.7bn Net income between 1.8 and 1.9bn (up from bn) Basic EPS between 1.40 and 1.50 Net industrial debt target further revised ~ 500mn (excluding Q4 share buyback) at 07 year end 8

9 Key pillars of plan Continuing to improve industrial competitiveness Purchasing operations at Group level for the first time in Fiat s history to achieve 2.6bn cumulative net savings over the plan Implementation of World Class Manufacturing both at Fiat Group and key suppliers 100% roll-out at all our plants by 2008, targeting Gold area by 2010 More than 500mn savings targeted Sufficient, optimized Capex & R&D spending to secure growth Customer-focused organization Strengthen positioning of all Brands Achievement of best-in-class quality & reliability standards Introduction of break-through proprietary technologies State-of-the-art engine range confirming fuel consumption leadership Reinforcing sales & service networks Global expansion through targeted alliances Leveraging JVs & partnerships 9

10 Significant achievements 10

11 Brand repositioning at CNH Powerful, great tradition, strong American heritage Premium brand of powerful agricultural equipment for large professional operations Providing products and services for the complete farm cycle Recapturing Case and New Holland heritage and market penetration Refocus on customer needs Continuous product portfolio Innovative, application specialist in harvesting, value-for-money equipment Full-range provider, including hay & forage for livestock & cash crop customers renovation 20+ new products for both AG and CE plus 100+ upgrades and re-powering in 2007 Strong technological leadership American, traditional, full-line provider Residential construction, specialist contractors Fuel consumption, productivity and operator comfort New brand based structure Independent organizations and specific targets EU full-liner, NA light-to-mid specialist, providing solid value for money Landscaping & civil engineering Culture of collaboration with dealers re-established 11

12 ...leading to market share gains Agricultural Equipment (Sep YTD) Construction Equipment (Sep YTD) Industry (unit retail, YoY % change) CNH (performance relative to mkt) Industry (unit retail, YoY % change) CNH (performance relative to mkt) NA WE LA RoW NA WE LA RoW NA WE LA RoW NA WE LA RoW Combines Light = -3 = (<40hp) Tractors (<40hp) + = Heavy - = + = (40+hp) (40+hp) CNH market share CNH market share Combine harvesters: share improvements from new products in all markets Worldwide equipment sales in line with total market for both Light & Heavy Tractors Market share increases in NA across all 40+hp categories Tractor sales up in RoW despite market decline 12

13 Strengthening Iveco Brand Intensive product repositioning on heavy vehicle line Quality in line with best competitors UK network restructuring Reshaped dealer coverage for Heavy line; new strategy in greater London area Designed to gain volumes from competition First tangible results: Q3 orders up ~2.5x over last year Environmentally friendly engine range Latin America Euro 5-compliant engine, two years ahead of regulation Aggressive network restructuring just started Material fuel efficiency edge due to SCR technology CNG-powered vehicles, with emission levels significantly lower than EU standards requirements Central & Eastern Europe Gaining greater control over distribution and leveraging on future output of JVs Image boost through a new sponsorship Stralis European promotional tour 40k+ visitors, 17k+ test-drives 13

14 ...raising Medium & Heavy penetration Light (3.5-6T) Medium Heavy Orders Intake 2007E vs Order Backlog 2007E vs WE Market Share Sep YTD Market Share Change vs. 06 ~ +10% ~ +1% ~ +45% ~ +30% ~ +30% ~ +120% 16.4% 26.2% 11.2%

15 Repositioning Fiat brand The new Fiat Fiat 500 is not the ultimate stage in the current brand journey, but the first step of the next one Stylish, simple, smiling, surprising, speedy while acting with Ambition (a vision for changing things) Commitment (competition, meritocracy, continuous challenge) Responsibility (ethics, individual respect, environment) Committed to Build a distinctive brand profile Design the right model range to compete aggressively in all our markets You are. We Car. Develop powerful distribution & customer care to support our ambitions Sell 1 million additional units (including JVs) by

16 driving share gains & image enhancement Volume growth in WE (Nov YTD: 07 vs. 05) Renault -21% Citroen 0% Peugeot -4% Hyundai -15% Nissan -21% Toyota +10% VW +4% Skoda +15% Honda +17% GM +2% Ford +2% Seat +3% Mazda +1% FIAT +31% ( 000 units) The fastest growing brand in WE Constant monthly share gains yearover-year since 2005 both in Italy and Western Europe FY 07 market share at 24.2% in Italy FY 07 market share expected 6%+ in WE, above 2.5% in WE ex Italy Image enhancement in Europe Brand overall image (Italy) Bravo 500 The largest improvement among volume makers in Italy Regained head position among full-liner brands Sedici Brand strength gradually reflected in increasing image of each model Panda Grande Punto Linea Brand awareness and image improvements in key European countries Progressively closing pricing gap vs. competition in WE 16

17 Automobile operations in Brazil Automotive industry growing faster than GNP in past 4 years 2007: GNP up ~5%, automotive industry up 27.5% Fiat fast mover in terms of design & innovation Outperforming market both in passengers cars & LCV (600k+ registrations in 2007 or +30% vs. last years) Market share at 25.9% vs. 25.4% in 06 Successful new products (New Palio, Idea, Grande Punto...), building on strengths of existing lines Flex-fuel powertrain available on full product range Continuous improvements in customer satisfaction both in sales and after-sales Committed to significant investments over for de-bottlenecking production capacity 740k units per year potentially expandable by additional 100k 17

18 Maserati Turnaround of a historic brand Unit sales up more than 30% in 2007 vs. previous year Targeting ~9k units in 2008 Aiming to reach 12k units by 2011 Leveraging on synergies & technology sharing with Alfa Romeo Quattroporte Sport GT S GranTurismo 2007 in black for the first year since

19 Major 2007 Automotive Awards Tractor of the Year 2008 Golden Tractor for Design T7000 Daily Self-propelled Forage Harvester FR Innovation Awards CR 9000 Combine f Grain Cam (Gold Medal) f Opti Clean (Silver Medal) f IntelliCruise Stralis (Silver Medal)...and 6 American Society of Agricultural and Biological Engineers AE50 awards f Module Express 625 Cotton Harvester f AFS Cotton Yield Monitor f Steiger AccuSteer II System f FastSteer steering system f SD550 Air Howe Drill f SuperSuite Compact Tractor Cab 19

20 and key priorities

21 Deal with tight supply at CNH & Iveco CNH Strengthening supply of key components, aimed at minimizing impacts of strong market demand in Western Europe (CE) and Brazil (both AG and CE) Selectively investing in plant capacity to reduce process bottlenecks Investing in supplier tooling to increase supplier capacity Making higher volume commitments to secure supply allocation Investments to in-source critical components Iveco ~ 100mn to be invested by H1 08 to overcome manufacturing bottlenecks Eliminating internal production capacity constraints Investing in tooling to increase supplier capacity To fully benefit from booming markets 21

22 Accelerate repositioning of Alfa brand A historical brand with high potential in terms of volumes and margin 2010 target: 300k units Disciplined & aggressive actions to accelerate repositioning process New product launches Improve technical contents & enlarge powertrain offering Exploiting technology transfer from Ferrari & Maserati Quality level competing with German car brands Network enhancement to be closer to the customer Improvements in UK vs. last year: total units sold up 40%, sales per dealer more than tripled, average dealer ROS up by 1.2 pp Process kicked off in Germany Extraordinary action taken in Pomigliano plant 2-month temporary shutdown to upscale plant to best-in-class performance levels Over 100mn investment 8C Competizione, a blueprint for Alfa s future 22

23 2008 Outlook 23

24 Agricultural and Construction Equipment Agricultural Equipment Construction Equipment AG market up in NA, EU and LA; flat in RoW CE market up in EU and RoW; down in NA; High global commodity prices and low levels flat in LA of agricultural stocks leading to strong net US construction spending: further declines in farm incomes residential partially offset by non-residential Increasing demand for corn and sugarcane and heavy construction to produce fuel ethanol continues to support Housing starts: declining NA potentially equipment sales stabilizing late in the year; flat in Europe, Latin America and Rest of World Consolidated Highlights Strong CNH unit volume growth, with continuing increases in market share Continued momentum of positive net pricing offsetting increases in certain raw materials & components Improvements in total manufacturing cost Strong support from Financial Services; portfolio originations increase continuing 24

25 Trucks and Commercial Vehicles WE market still growing in 2008, particularly H1 Iveco market share improvement boosted by new products Daily 4x4 (end of 07) Massif (beginning 08) Eurocargo facelift (Q2 08) Central and Eastern Europe market growth (+15% expected in 08), targeting ~15% market share in 08, mainly from Heavy segment sales development Revenue growth due to price repositioning and volume effects Trading margin up, closing gap vs. best competitors 25

26 Fiat Group Automobiles +200k units vs driven by new products and new engines Overall WE passenger car market flat vs. 07 Market share increase in Italy & WE Brazilian market rising by ~15% compared to 07, maintaining market leadership Higher spending in advertising and network investments to support volumes 26

27 Looking ahead FY 2008 targets confirmed ~ 58bn net revenues bn trading profit bn net income Debt free 27

28 Safe Harbor Statement Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company s businesses include its automotive, automotive-related and other sectors, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Group s businesses involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive-related products; factors affecting the agricultural business including commodities prices, weather, and governmental farm programs; general economic conditions in each of the Group s markets; legislation, particularly that relating to automotive-related issues, agriculture, the environment, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Group competes; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties. 28

29 Contacts Fiat Investor Relations team Marco Auriemma phone: Vice President Vincenzo Torrisi phone: Federico Donati phone: Roberta Roccati phone: fax: website: 29

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