Three up, one to go. Q Results Review

Transcription

1 Three up, one to go

2 Safe Harbor Statement Certain information included in this presentation, including, without limitation, any forecasts included herein, is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Group 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. Forwardlooking statements with regard to the Group's businesses involve a number of important factors that are subject to change, including, but not limited to: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive- related products and changes in consumer preferences that could reduce relative demand for the Group s products; governmental programs; general economic conditions in each of the Group's markets; legislation, particularly that relating to automotiverelated issues, 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, excess inventory levels, and the impact of vehicle defects and/or product recalls; labor relations; interest rates and currency exchange rates; our ability to realize benefits and synergies from our global alliance among the Group s members; substantial debt and limits on liquidity that may limit our ability to execute the Group s combined business plans; political and civil unrest; earthquakes and other risks and uncertainties. Any of the assumptions underlying this presentation or any of the circumstances or data mentioned in this presentation may change. Any forward- looking statements contained in this presentation speak only as of the date of this presentation. We expressly disclaim a duty to provide updates to any forwardlooking statements. Fiat does not assume and expressly disclaims any liability in connection with any inaccuracies in any of these forward- looking statements or in connection with any use by any third party of such forward- looking statements. This presentation does not represent investment advice or a recommendation for the purchase or sale of financial products and/or of any kind of financial services. Finally, this presentation does not represent an investment solicitation in Italy, pursuant to Section 1, letter (t) of Legislative Decree no. 58 of February 24, 1998, as amended, nor does it represent a similar solicitation as contemplated by the laws in any other country or state. October 30,

3 Q3 12 Executive summary Group financial results for Q3 consistent with year-to-date performance; FY earnings guidance confirmed Revenues at 20.4bn ( 62.2bn Sep YTD) Trading profit 951mn ( 2,827mn Sep YTD) EBIT of 880mn ( 2,770mn Sep YTD) Net profit at 286mn or 362mn ex-unusuals ( 1,023mn Sep YTD or 1,155mn ex-unusuals) Net industrial debt at 6.7bn Total available liquidity at 20.0bn, including 3.0bn in undrawn credit lines Worldwide shipments for mass-market car brands up 11% to 1+ mn units (3.1mn units year-to-date) Bond issuance of 600mn in July (7.75% fixed coupon, due Oct 2016) Sought declaratory judgment in Delaware Chancery Court to confirm price to be paid for the ~3.3% of Chrysler Group LLC equity to be delivered by the VEBA in accordance with call option agreement Upon completion of purchase, Fiat will hold 61.8% of outstanding equity in Chrysler Fiat included in Dow Jones Sustainability World and Europe indexes for the fourth consecutive year October 30,

4 Q3 12 financial highlights Strong contribution by all regions, but persisting weakness in EMEA Net revenues ( bn) Growth of 9% at constant exchange with NAFTA, APAC & LATAM more than offsetting EMEA Luxury and Performance brands up 4% Components substantially in line with last year Fiat ex Chrysler at 8.5bn down 3.7% y-o-y 17,552 Q ,437 Q Q Q3 12 Net profit ( bn) Net profit more than double Q3 11 level Income taxes of 195mn vs. 170mn Q3 11 related primarily to taxable income of companies operating outside Europe and employment-related taxes in Italy Profit attributable to owners of the parent of 39mn (loss of 46mn in Q3 11) Ex-unusuals, net profit of 362mn ( 169mn last year) Fiat ex Chrysler loss of 281mn (Q3 11: 210mn loss) Trading profit ( mn) Net industrial debt ( bn) Group trading margin at 4.7% Mass market brands NAFTA: 660mn (6.1% margin) LATAM: 341mn (11.5% margin) APAC: 73mn (8.8% margin) EMEA: - 238mn (-6.2% margin) Luxury and Performance Brands: 89mn (13.3% margin) Components: 39mn (2% margin) Fiat ex Chrysler at 105mn 851 Q Q Jun Sept Increased by 1.3bn due to seasonal cash absorption, accentuated by market conditions in Europe Negative change in net debt for Fiat ex Chrysler ( 5.5bn at Sep. 30 from 4.1bn at June 30) overall in line with same period last year Chrysler contributing positively 0.1bn, despite summer seasonality and significant Capex EBIT ( mn) Mass market brands NAFTA: 664mn LATAM: 310mn APAC: 74mn EMEA: - 219mn (- 195mn before unusuals) Luxury and Performance Brands: 89mn Components: 38mn Q3 11 Q Jun Sept Liquidity ( bn) Total Group available liquidity reduced primarily reflecting operating-related cash absorption and gross debt reduction Total available liquidity for Fiat ex Chrysler of 9.8bn ( 12.1bn at June-end): cash utilization reflected primarily operating-related cash absorption and 1.3bn gross debt reduction Cash reduction at Chrysler due to annual payment of accrued interest on VEBA note Fiat ex Chrysler 61mn Undrawn committed credit lines Cash & Mktable Securities Undrawn committed credit lines unchanged vs. June end October 30,

5 Q3 12 financial highlights Performance by segment MASS-MARKET BRANDS NAFTA LATAM APAC EMEA Ferrari & Maserati MASS-MARKET BRANDS EBIT before unusuals 2012: 341mn EBIT before unusuals 2011: (76)mn 2012: (195)mn (136) (219) 2.0 Q Q Components (0.7) (0.7) Other & Eliminations (4) (76) Fiat Group EBIT before unusuals 2011: 882mn 2012: 956mn Top-line reflects continued strong growth in NAFTA (+38%) and APAC (+39%) with LATAM also positive, while EMEA was down 13% with continued demand declines Group EBIT up 6.7% driven by strong regional performance of NAFTA (+65%) and APAC (3x higher than a year ago) EBIT ex-unusuals in EMEA down 119mn vs. Q3 11 due to continued worsening of trading conditions in the region NAFTA LATAM APAC EMEA Ferrari & Maserati Components Other & Eliminations Fiat Group Note: Graphs not to scale October 30,

6 Q3 12 From trading profit to net result mn (unless otherwise stated) Fiat Group Fiat ex Chrysler Q3 12 Q3 11 Q3 12 Q3 11 Worldwide Shipments (mass-market brands - Units 000) 1, Net Revenue 20,437 17,552 8,490 8,813 Trading Profit % of revenues % % % % Investment income, net EBIT BEFORE UNUSUALS Unusual items, net (76) (57) (50) (60) EBIT EBITDA 1,910 1, Financial charges, net (399) (543) (190) (334) Pre-tax result (129) (74) Taxes (195) (170) (152) (136) Net result (281) (210) Note: Financial charges, net includes a 1mn gain from the mark-to-market value of stock option-related equity swaps ( 138mn loss in Q3 11) October 30,

7 Q3 12 revenues and trading profit walk Growth underpinned by geographic diversification 17,552 Note: Graphs not to scale 27 (8) ,437 Q3 '11 Mass-market brands Luxury & Perf. brands Components Other & Elim. Q3 ' ,757 APAC NAFTA (563) LATAM EMEA 2,987 NAFTA (56) LATAM APAC 36 (122) EMEA 2 (20) (5) 951 Q3'11 Mass-market brands Luxury & Perf. brands Components Other & Elim. Q3 '12 Group revenues +16% Mass-market brands up 18% compared to Q3 11 as strong year-over-year volume growth in NAFTA, LATAM and APAC more than offset declines in EMEA, reflecting continued deterioration in trading conditions, particularly severe in Italy Luxury & Performance brands (Ferrari +6%, Maserati +4%) mainly driven by growth in North America Components flat vs. a year ago Group trading profit +12% Mass-market brands: strong performance in NAFTA, LATAM and APAC Luxury & Performance brands up 2%, improving on prior year s strong performance Components down 34% with improvement at Comau unable to offset declines at Magneti Marelli and Teksid, principally due to worsened trading conditions in Europe October 30,

8 Q3 12 net industrial debt walk Unfavorable seasonality and continuing low volumes in Europe mn Change in Net Industrial Debt (1,259) (5,435) 1,865 Cash Flow from operating activities, net of Capex (1,246) (570) (294) (219) (6,694) (2,028) 46 - (59) June 30, 2012 Industrial EBITDA Financial Charges & Taxes Change in Funds & Other Working capital Capex Investments, Scope & Other Capital increase /Repos/ Dividends FX translation effect September 30, 2012 Net industrial debt trend in the quarter reflecting normal seasonality, with operational cash absorption better than Q Cash absorption of 1.4bn for Fiat ex Chrysler, in line with Q3 11 Cash generation of 0.1bn for Chrysler YTD Capex spending ( 5.3bn) progressing in line with FY expectation Fiat ex-chrysler at 2.1 billion, in line with YTD 2011 Note: Numbers may not add due to rounding October 30,

9 Debt maturity profile and liquidity Fiat ex Chrysler Debt Capital Market and Bank Debt Access to markets ( 600mn bond issuance in July) and renewal of credit facilities continues with large number of institutions Ensuring appropriate cadence of future maturities Other Debt Mostly selfliquidating and automatically rolled-over positions related to dealer floor plan financing in Brazil Chrysler No major maturities due prior to 2017 FIAT EX CHRYSLER Total cash maturities 15.7 Total available liquidity (9.8) (incl. undrawn committed credit lines) 2.2 CHRYSLER ( bn) Beyond Beyond Bank Debt Total cash maturities 10.4 Total available liquidity (10.2) (incl. undrawn committed credit lines) Capital Market Other Debt Note: Total cash maturities excluding accruals; numbers may not add due to rounding Chrysler Group and Fiat continue to separately manage their own financial matters, including treasury services No guarantee, support or similar obligations in relation to other s financing obligations; no obligation or commitment to provide funding to the other Financial segregation also supported by legally binding obligations Chrysler s May 2011 credit agreement limits financial support to Fiat (inter alia cumulative limit on dividend payments of $500mn payable only if specified minimum liquidity is met) Fiat s 3-year RCF also limits financial support to Chrysler (including limits on guarantees and loans) Chrysler s financing agreements and its LLC Operating Agreement contain additional restrictions limiting relatedparty transactions, including approval process for material commercial or financial transactions between the companies These restrictions apply, while these instruments are in place, regardless of the percentage of Fiat s ownership in Chrysler October 30,

10 Q3 12 cash-to-cash walk bn Change in cash & current securities (2.7) Change in operating needs (1.0) Change in gross Debt net of FX (1.4) (1.3) 0.3 (0.0) (0.8) (0.2) (0.4) (0.3) (6,694) 19.8 Capital Market (0.7) Bank Debt & other (0.1) 17.1 Including 0.2 Current Securities Including 0.2 Current Securities June 30, 2012 Change in NID Change in FS debt Derivatives & FX adj. Net cash maturities Ch. in Asset Backed Financing Net interest accrued FX translation Sept 30, 2012 Change in cash & current securities for the Group includes 0.4bn related to Chrysler, almost entirely due to annual payment of accrued interest on Veba note and FX translation effects, partially offset by cash generated by operations Note: Numbers may not add due to rounding October 30,

11 Managing production requirements while ensuring stringent cost containment Rigorous alignment of production systems and market demand through industrial flexibility NAFTA 3-crew operations by end of year for Belvidere and Jefferson North Assembly plants, in place at Indiana I & II and Kokomo transmission plants, and Trenton and Dundee engine plants Daily build rates increased at Windsor, Saltillo Truck and Toledo Supplier Park assembly plants Enhanced efficiency and reduced downtime at Toluca and Central Stamping plants LATAM Extended work week to include Saturdays and national holidays to respond swiftly to market needs EMEA Production stoppages in Italy through temporary lay-offs to meet fall in market demand (incl. Central Staffs) Re-aligning workforce in Poland Production start-up in Kragujevac plant (Serbia) with year-end workforce expected to reach 2,400+ people Group purchasing ops delivered ~ 150mn net savings on direct materials in the quarter (~ 280mn Sep YTD) YTD trend fully supporting FY target of net savings in excess of 300mn Q3 Group net savings of 110+mn from WCM program FY target revised upwards to ~ 500mn (previously 400+mn) or 7.5% of transformation cost Additional 2 plants (Magneti Marelli and Chrysler) awarded bronze rating in the quarter Disciplined discretionary SG&A spend Production gains through labor flexibility in NAFTA 100 FY 2010 production (index = 100) Full utilization including additional shifts (Standard Union Contract Terms) Efficiency improvement (line speed increases) and Brazil Additional production through extraovertime and holidays Stable at ~90% utilization of technical capacity for many years 150 FY 2012E production Consistent utilization of all flexibility instruments (extra-overtime and holidays) to maximize output October 30,

12 1 MASS-MARKET BRANDS BY REGION 2 LUXURY AND PERFORMANCE BRANDS 3 COMPONENTS AND PRODUCTION SYSTEMS 4 BUSINESS ENVIRONMENT OVERVIEW GUIDANCE

13 Mass-market brands Highlights FINANCIAL PERFORMANCE Continued strong performance in a growing market Revenues up 38% (+22% at constant exchange rates) compared to prior year primarily due to higher vehicle volumes Trading profit up 67% vs. last year (+47% at constant FX rates) with volume and net pricing gains partially offset by higher industrial costs and higher advertising Trading margin increased 100 bps to 6.1% TOTAL NAFTA Q3 12 Q3 11 Shipments (k units) Revenues ( mn) Trading Profit ( mn) EBIT ( mn) ,759 7, COMMERCIAL PERFORMANCE & HIGHLIGHTS Vehicle shipments up 23% U.S.: 426k units (+29%) Canada: 52k vehicles (-10% partly due to lower Ram 1500 shipments due to product changeover) Mexico: 23k units (+28%) Group vehicle sales up 12% to 504k vehicles, primarily reflecting a 13% increase in U.S. sales Cars up 23% in NAFTA (U.S. +22%) Trucks up 8% (U.S. +9%) US & Canada combined sales: all brands up, with most recording double-digit increase Fiat +33%, Chrysler +21%, Dodge +12%, Ram +8%, Jeep +7% Dodge Dart sales gaining momentum as additional models and powertrains become available Sound Group inventory levels (65-days supply at U.S. dealers) at period-end October 30,

14 Mass-market brands EBIT walk mn (145) (87) Shipment increase of 95k vehicles partially offset by unfavorable mix, including higher growth in passenger car sales vs. trucks & SUVs Positive net pricing reflects pricing actions in late 2011 and continued in 2012 Q Volume Net price Industrial & Mix costs SG&A Investments / FX / Other Q Industrial costs impacted by manufacturing inefficiencies due to production at capacity limits in certain plants, partially offset by purchasing efficiencies SG&A negatively impacted by higher advertising October 30,

15 Mass-market brands Market trends & business dynamics INDUSTRY VOLUME & OUTLOOK (MN UNITS) >14.0 Q3 '11 Q3 '12 FY '12E QUARTERLY MARKET SHARE (%) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q >1.6 Q3 '11 Q3 '12 FY '12E Q2 Q3 U.S. Industry up 14% over Q3 last year Cars +22%; trucks +7% Q3 12 sales up 13% from prior year 30 consecutive months of year-over-year sales gains Best September sales performance since 2007 for Ram Pickup Q3 market share fairly consistent with prior year Retail sales increased 16% Retail of retail market share at 10.2%, flat compared to a year ago Fleet mix decreased to 24% vs. 26% in prior year CANADA Industry up 6% from prior year Cars +8%; trucks +4% Sales up 5% Retail sales up 9% Retail of retail market share * at 13.5% Sales of Chrysler 300 (+80%) and 200 (+71%) driving sales increase * Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet) October 30,

16 Mass-market brands Highlights TOTAL LATAM Q3 12 Q3 11 Shipments (k units) Revenues ( mn) Trading Profit ( mn) EBIT ( mn) ,955 2, FINANCIAL PERFORMANCE LATAM experiencing continued good trading conditions, particularly in Brazil where Government stimulus measures boosted sales Temporary reduction in vehicle sales tax, confirmed in place until year-end Two consecutive cuts in Q3 in interbank rate, now at the lowest real interest rate in history Positive impact expected to continue in Q4 Revenues up 4% (+10% at constant exchange rates) driven by higher volumes Trading profit reduced 56mn mainly due to increased depreciation for new product launches and currency exchange impacts COMMERCIAL PERFORMANCE & HIGHLIGHTS Total Group shipments up 14% in the quarter Brazil: 243k shipments (23% vs. a year ago) Argentina: 19k shipments (-33%) Other LATAM markets: 11k shipments (-8%) Group sales outpacing a strong Brazilian market, posting a 24.3% share (22.0% a year ago) Strong sales performance for Jeep and RAM brands, posting a 91% and 25% increase respectively, related to Brazilian market Company & dealer inventory levels at 21 days supply (22 days at Q2-end), adequate to support sales trend in Q4 October 30,

17 Mass-market brands EBIT walk mn (1) Better volume & mix on the back of 35k units increase, mainly driven by performance in Brazilian market (83) (11) (60) 310 Pricing improvement in most countries unable to offset continued pressure in Brazil Q Volume Net price Industrial & Mix costs SG&A Investments / FX / Other Q Cost inflation and higher depreciation due to new vehicle launches partially offset by manufacturing efficiencies Other mainly relates to FX impacts October 30,

18 Mass-market brands Market trends & business dynamics INDUSTRY VOLUME & OUTLOOK (TOTAL LATAM; MN UNITS) 1.46 QUARTERLY MARKET SHARE * * Inclusive of Fiat & Chrysler Group brands (PASSENGER CARS & LCVS; %) Passenger cars LCVs ~5.8 ~1.5 ~4.3 Q3 '11 Q3 '12 FY '12E Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q Q3 REGIONAL Q3 OVERVIEW Brazil Confirmed market leadership with 230 bps share gain, leveraging on company s flexibility to react promptly to increased market demand Argentina Decline in market share mainly attributable to reduced availability of product due to customs delays for imported vehicles FOCUS ON INOVAR AUTO PROGRAM Program recently launched to foster longterm development of domestic car industry through subsidized incentive schemes tied to energy efficiency, investment in R&D and engineering, as well as domestic production Valid from 2013 to 2017 Program highlights IPI rate increase to 30% for all vehicles, both locally manufactured and imported, being partially or fully neutralized through various credits earned To earn credits, essential to meet certain conditions: local manufacturing activities of at least 80%, energy efficiency, minimum level of R&D and Engineering expenditures Group well positioned to participate in and fully benefit from this program October 30,

19 Mass-market brands Market trends & business dynamics TOTAL APAC Q3 12 Q3 11 Shipments (k units) Revenues ( mn) Trading Profit ( mn) EBIT ( mn) Notes: APAC industry reflects aggregate key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea) FINANCIAL PERFORMANCE Stable trading conditions across region with demand increasing in most of the Group s key markets Revenues up 39% (+24% at constant exchange rates) primarily driven by Jeep & Chrysler brands (85+% of total revenue) Shipments up 13% Trading profit almost 2x last year s level primarily driven by volume growth and favorable FX impact Trading margin up 260 bps to 8.8% EBIT 3.7x last year s level reflecting growth in trading profit and contribution from JVs COMMERCIAL PERFORMANCE & HIGHLIGHTS Retail sales (incl. JVs) up 11% on the back of strong performance of Jeep and Alfa Romeo brands Jeep sales (~70% of total APAC sales) almost double last year s level Sales of Alfa Romeo brand in Japan up 155% led by Alfa Romeo Giulietta Strong comeback of the Chrysler brand with sales up 166% as the all-new Chrysler 300C is re-launched in China and Australia Newly formed India Distribution Company to take over distribution activities in India (previously managed with partner Tata) on track to begin operations in 2013 October 30,

20 Mass-market brands EBIT walk mn Volume/mix reflecting improved shipments across all APAC countries Industrial costs impacted by increased tax and duty (8) Selling expenses increased to support new sales initiatives and continued growth in the region Q Volume Net price Industrial & Mix costs (22) SG&A Investments / FX / Other Q Results from investments up with improved performance of India JV Favorable FX impact with CNY, JPY & USD appreciating against EUR October 30,

21 Mass-market brands Market trends & business dynamics 1.8% 1.1% 0.3% 0.2% INDUSTRY VOLUME 1 (PASSENGER CARS & LCVS; MN UNITS) % 0.2% 0.2% 1.0% ~24.0 Q3 '11 Q3 '12 FY '12E QUARTERLY MARKET SHARE 2 (PASSENGER CARS & LCVS; %) 1.8% 2.4% 0.5% 0.3% 0.3% 0.3% 0.4% 0.4% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Reflects aggregate key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea) 2 Inclusive of Fiat & Chrysler Group brands; For China, 2009 sales with previous JV partner excluded Q2 Q3 REGIONAL Q3 OVERVIEW Group sales (incl. JV) up 11% outperforming industry (+10%) driven by strong performance in most of the Group s key markets CHINA Robust performance of Jeep (+114%) driving Group sales up 18% (industry up 11%) Compass & Patriot sales >2x to 8.6k units, gaining 120 bps of share to 3.0% in Compact SUV segment AUSTRALIA Continued gains in market share with Group posting sales improvements of 44% (compared to 8% increase for overall market), driven by twofold growth of Jeep and re-launch of Chrysler 300C Grand Cherokee sales up 85%, gaining 360 bps in share to 10.1% in full-size SUV segment JAPAN Group sales up 20% outperforming double-digit growth of industry led by Alfa Romeo +155% and Jeep +36% Grand Cherokee share up more than twofold to 9.7% in full-size SUV segment SOUTH KOREA Sales up 21% driven by growth of Jeep (+30%) and Chrysler (+19%), despite demand contracting by 6% October 30,

22 Mass-market brands Highlights TOTAL EMEA Q3 12 Q3 11 Shipments (k units) Revenues ( mn) Trading Profit ( mn) EBIT ( mn) Note 1 Harbour definition: 235 days p.a. / 16 hours per day 2 Technical definition: 280 days p.a. / 3 shifts per day ,820 4,383 (238) (116) (219) (136) FINANCIAL PERFORMANCE Increasingly difficult trading conditions in the region Both passenger car and LCV segments at historical lows in EU27+EFTA Negative price pressure, particularly in low-end of market Revenues down 13%, mainly reflecting volume declines Trading loss doubled vs. prior year Negative volume and price effects only partially offset by industrial efficiencies, WCM synergies and benefits from cost containment actions Group targeting to limit regional losses to ~ 700mn for FY EBIT ex-unusuals loss of 195mn Positive result from investments of 43mn (Q mn) Unusual charges in Q3 12 accounted for 24mn ( 60mn last year) COMMERCIAL PERFORMANCE & HIGHLIGHTS Total passenger car and LCV shipments down ~15%, mostly attributable to Italy (24k units), France (5k units) & Germany (6k units) Passenger cars: down 17% to 159k units LCVs: totaled 44k units, a 9% decline principally attributable to contraction in demand in Italy Tight management of supply and demand function Company & dealer inventory stable at about 2-months supply Utilization rate at plants in EMEA, including JVs, stable at 67% (Harbor 1 definition) or 44% (Technical 2 definition) October 30,

23 Mass-market brands EBIT walk mn Negative volume reflecting decline in overall shipments (136) (60) (76) (144) (64) (195) (24) (219) Q Unusuals, Q Volume Net Industrial SG&A Investments, Q Unusuals, Q net before & Mix price costs FX, Other before net unusuals unusuals Continued pressure on pricing, particularly in lower segments Improvement in industrial costs driven by WCM program efficiencies Stringent management of SG&A cost October 30,

24 Mass-market brands Passenger cars: market trends & business dynamics INDUSTRY VOLUME & OUTLOOK (MN UNITS) EU27+EFTA ~12.5 Q3 '11 Q3 '12 FY '12E QUARTERLY MARKET SHARE * (%) <1.4 Q3 '11 Q3 '12 FY '12E EU27+EFTA Industry down 9% (the 4 th quarterly consecutive drop) with declines in nearly all major markets Mediterranean countries suffering the most (double-digit slump in Italy, France & Spain) Germany posting its first quarter of market decline in 2012 UK the only major market to run counter to the trend (+8%) Group sales down 17% to 167k cars A 60 bps decrease in Group share almost entirely attributable to unfavorable market mix (Italy s weighting in European total reducing from 11.4% in Q to 9.7%) By major market (ex Italy), share higher in Spain (+20 bps) and UK (+30 bps), down in Germany (-30 bps) and France (-70 bps) EU27+EFTA Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q * Including Jeep & Chrysler brands Q2 Q3 ITALY Market demand down 23%, marking the worst Q3 performance since 1976 Q3 Group share gain of 20 bps reflected positive performance in A- and C- segments and strengthening of Group s leadership in alternative fuel vehicles (CNG and LPG) October 30,

25 Mass-market brands LCVs: market trends & business dynamics INDUSTRY VOLUME & OUTLOOK (MN UNITS) EU27+EFTA ~1.6 Q3 '11 Q3 '12 FY '12E QUARTERLY MARKET SHARE * (%) ~0.1 Q3 '11 Q3 '12 FY '12E Persisting weakness for LCV industry in EU27+EFTA, down 10% in Q3 Overall performance also heavily affected by drop in demand in Italy (-37%) Fiat Professional brand sales at 39k units, 9k units lower than a year ago Q3 brand share in EU27+EFTA down ~100 bps with decline mostly due to unfavorable market mix Share loss in Italy fully attributable to significant fleet renewal activity in Q Share unchanged at 8.9% in EU ex Italy Ducato continued its strong performance during the quarter, gaining 70 bps share in its category EU27+EFTA Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 NEW DUCATO (one of best selling commercial vehicles in its category) * 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 October 30,

26 2 Luxury & Performance brands Ferrari & Maserati Revenues up 6% to 556mn attributable to higher volumes, more favorable sales mix and strong results from personalization program Shipments of 1,603 street cars, up 2% driven primarily by sales of 458 Spider and FF North America (+18%) remained #1 market EMEA: higher volumes in UK were offset by declines in other markets in the region Higher shipments in Japan, substantially stable in China, Hong Kong, Taiwan and Australia Trading profit & EBIT at 81mn, a 5% improvement attributable to increased contributions from personalization program and licensing activities Margin at 14.6% Revenue increase of ~4% to 148mn Shipments down ~2% to 1,432 units USA +12% Lower in Europe and China Middle East +24% Net of currency effects, revenues down ~2% primarily due to decrease in volumes Trading profit & EBIT to 8mn in line with Q Margin 5.4% USA 32% European Top-5 26% Japan 5% USA 44% European Top-4 16% Japan 5% China 11% Others 27% China, Hong Kong & Taiwan 10% Others 24% October 30,

27 3 Components & Production Systems 1,374 1,426 Q3 11 Q Q3 11 Q3 12 Operational Highlights In Europe, positive trading conditions in Germany compensated for difficulties elsewhere Outside Europe, conditions in NAFTA, China and Brazil all favorable Set up a JV in China (Hefei MM Exhaust Systems) with JAC, to develop and produce exhaust systems and components Q3 11 Q Q3 11 Q3 12 Revenues down 20% Cast iron lower volumes (-20%) partially offset by a 10% increase for Aluminum business unit Trading profit performance reflecting reduced volumes Revenues up 4% Lighting up 18%, benefiting from strong demand from German customers and new technological content for products launched during H2 11 Electronic Systems +35% on the back of increase in sales of telematics and body products to external customers compensated for a contraction in captive volumes in Europe All remaining business lines recorded revenue decreases Trading profit down 14mn Cost containment measures and efficiency gains unable to counter impact from lower volumes in Europe and costs associated with production start-ups in the NAFTA region Trading margin at 2.0% Q3 11 Q Q3 11 Q3 12 Revenues down 4% primarily due to Robotics operations A 5mn increase in trading profit mainly driven by improved performance for Body Welding ops Order intake at 374mn, up 46% October 30,

28 4 Business environment overview October 30,

29 4 Business environment overview Dart sales gaining momentum; Ram Pickup 1500 launch DODGE DART Executing a staged launch integrating various powertrain combinations Start of production in September for all-new Aero model (41 highway mpg) arriving in dealerships shortly Production ramp-up and sales rates on track with plan More than 28k units produced in Q3 Q3 sales exceeded 10k Darts (U.S. Sep sales up 72% vs. August) October dealer orders exceeded planned production by 8,000 vehicles Dealer inventory turning quickly, average 17 days on lot RAM 1500 PICK-UP Arriving at dealerships now Best-in-class truck Fuel economy 17 city/ 20 cmb/ 25 hwy mpg with Pentastar 3.6L V6 4x2 and segment exclusive 8-speed transmission Aerodynamics Outstanding premium engine fuel economy with 5.7L V8 Hemi coupled with all-new 8-speed transmission Upgraded exterior and interiors with segment leading technology and improved telematics (+23%) Chrysler 200 SALES GROWTH (U.S. & CANADA; ALL VEHICLES) +14 (+20%) Jeep Grand Cherokee Chrysler T&C / Dodge Caravan SALES +6 (+17%) +51 (+12%) +10 (new) Dodge Dart +9 (+42%) Dodge Journey +13% +5% +9 (+11%) Ram Pickup Vehicles (000s) (3) Other 481 Q3 11 Q3 12 October 30,

30 Business environment overview Product rejuvenation continuing: new intros and refreshes NEW PUNTO Launched in São Paulo (Brazil) in mid-july and already available to dealer network FIAT S SUNROOF VERSIONS First brand to offer a sunroof manufactured by an OEM in B-sedan segment with Novo Palio and Grand Siena DODGE DART Extensive media coverage for Dodge Dart 2013 recently launched in Puerto Rico Well accepted by local news and customers October 30,

31 Business environment overview A snapshot on key new products All-new 2013 Chrysler Grand Voyager to return to Chinese dealerships in Q4 A luxury MPV, also known as the king of MPVs, targeted at business elites Debuted in August at the Chengdu Auto Show as part of Group s expansion to Western China Second product in Chrysler brand line-up, reintroduced in China earlier this year 3.6L V6 Pentastar engine, delivering best-inclass horsepower without sacrificing fuel efficiency 2012 Top Safety Pick by IIHS in U.S. Fiat Viaggio officially launched in September Produced in Changsha, China in joint-venture with Guangzhou Auto Company First locally produced vehicle for competitive Chinese C-medium market Based on Group s Compact architecture (Alfa Romeo Giulietta & Dodge Dart) Best in class fuel economy and roominess, Euro V compliant and awarded 5 stars in China NCAP Equipped with 1.4L Turbo Engine and 6-speed dry dual-clutch transmission Dealer expansion ongoing, adding 20+ dealerships by year-end October 30,

32 4 Business environment overview The new babies by Fiat band COOL & CAPABLE Launched in Italy in September Very good initial acceptance (pre-orders for Opening Edition exceeded 1.5x planned volumes) Roll out across Europe by Q1 13 also expanding powertrain offerings 1.6 MultiJet 105hp 1.3 MultiJet 85hp tied with MTA TwinAir bi-fuel (gas & CNG) During 2013, on sale in 100+ countries worldwide, including U.S. Derived from upgraded Small architecture, shared for future Chrysler Group models Produced in Serbia Plant received Companybest 2012 award by Autobest SURPRISINGLY PANDA Now featuring the widest range in its segment with 4 new additions to All-new Panda line-up 4x4: the only 4x4 city-car in market Trekking: the new City Utility Vehicle by Fiat, a FWD model equipped with Traction+ technology and offroad look Compelling model offerings with minimal environmental impact engine option Natural Power: equipped with a bi-fuel (gas & CNG) turbo 2-cylinder engine, being introduced for first time in worldwide market with only 86 CO 2 g/km EasyPower: a bi-fuel (gas & LPG) practical and ecofriendly solution (107 CO 2 g/km) Produced in Pomigliano plant, recognized with prestigious 2012 Automotive Lean Production Award October 30,

33 4 Business environment overview Market outlook (mn units) NAFTA LATAM APAC EMEA 21.3 ~24.0 EU27+ EFTA 13.0 > ~ ~ ~4.3 ~ ~12.5 FY '11 FY '12E FY '11 FY '12E FY '11 FY '12E FY '11 FY '12E Passenger cars LCVs Passenger cars LCVs 1.6 >1.6 FY '11 FY '12E Industry growth continued through Q3 2012, with U.S. increasing 15% Sep YTD Consensus and company U.S. industry above 14mn Canada year-to-date industry growth of 7%, underpinning solid performance for full-year Market outlook for the region revised upwards mainly driven by improved prospects for sector in Brazil Additional liquidity, lower interest rates, and IPI rate cut expected to drive Brazilian market to a mid single-digit growth Adoption of protectionism measures (limiting bilateral trade between Brazil, Argentina and Mexico) having implications also for automotive industry Unresolved dispute between Brazil and Argentina reducing production in both countries Demand projected up ~13% driven by double-digit growth in most of the Group s key markets; slight contraction in South Korea Jeep, Fiat and Chrysler brands to play a significant role in year-over-year sales growth Presence in India to be further developed through newly formed India Distribution Company Increased focus on powertrain manufacturing in India with contracts to supply up to 300+k engines to Suzuki and Premier over the next 3 years 0.18 ~ <1.4 FY '11 FY '12E Passenger cars Persisting weak economic climate in Eurozone leading to the 5 th consecutive y-o-y decline in EU27+EFTA Italy projected to the lowest level since 1979 LCVs EU27+EFTA expected to be down ~10% Italy down ~30% Note APAC reflects aggregate key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea) October 30,

34 4 Business environment overview Group shipments unit volumes (excl. JVs) (Mass-market brands; units in thousands) (Mass-market brands; units in millions) ~ 4.2 ~0.1 APAC 2, % 3,125 APAC +40% 77 ~1.0 LATAM 694 LATAM +3% % 1,004 APAC +13% LATAM +14% ,317 NAFTA +19% 1,572 ~2.1 NAFTA NAFTA +23% EMEA -15% EMEA -16% 764 ~1.0 EMEA Q3 11 Q3 12 YTD 11 * YTD 12 FY 2012E Note * Including Chrysler as if consolidated from Jan 1, 2011 Numbers may not add due to rounding October 30,

35 Guidance Having reviewed economic and trading conditions in the Group s four operating regions Fiat confirms expectations of performance in North America, Latin America and Asia-Pacific Events of the past 12 months have reinforced negative view of the development of European markets Forecast continuing weak trading conditions for remainder of 2012 extending well into 2013 and at least part of 2014 As a result, the Group has refined earnings guidance for 2012 at the lower end of its original target range with net industrial debt expected to improve from Q3 level to ~ 6.5bn Revenues of about 83bn Trading profit in excess of 3.8bn Net profit in excess of 1.2bn Net industrial debt of approximately 6.5bn October 30,

36 APPENDIX

37 New segment information As a result of the acquisition of a majority ownership of Chrysler Group and consistent with the objective of enhancing operational integration of Fiat and Chrysler, Fiat has undertaken significant organizational changes effective as of September 1, 2011 On the same date, the Group Executive Council was formed and includes senior operating and corporate leadership of Fiat and Chrysler As already announced, new organization of the mass-market brands is based on: Four Operating Regions dealing with development, production and sale of mass-market brand passenger cars, light commercial vehicles and related parts and services in the following specific geographical areas: NAFTA (U.S., Canada and Mexico) LATAM (South and Central America, excl. Mexico) APAC (Asia and Pacific countries) EMEA (Europe, Middle East and Africa) Two further Operating Segments on a worldwide basis Ferrari and Maserati which designs, manufactures and sells luxury and performance cars (the Luxury and Performance brands) Magneti Marelli, Teksid and Comau which produce and sell components and production systems for the automotive industry (the Components and Production Systems) Based on the new Group structure, beginning 1 January 2012, the operations of mass-market brands, previously reported under sectors Fiat Group Automobiles, Fiat Powertrain and Chrysler, are now attributed to the four Regions as described above Luxury and Performance brands, as well as Components and Production Systems sectors are reported under two groupings based on their similarities and relative size For comparative purposes, quarterly figures for 2011 represent pro-forma numbers, calculated by including Chrysler results as if consolidated from Jan 1, 2011 October 30,

38 Supplemental financial measures 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 October 30,

39 Revenues & EBIT Q Q3 12 Q3 11 ( mn) Revenues 20,437 17,552 of which Mass-market brands NAFTA 10,759 7,772 LATAM 2,955 2,853 APAC EMEA 3,820 4,383 Luxury & Performance brands Components 1,951 1,959 Others & Elim. (545) (654) EBIT of which Mass-market brands NAFTA LATAM APAC EMEA (219) (136) Luxury & Performance Brands Components Others & Elim. (76) (4) October 30,

40 Chrysler Net income reconciliation (from IFRS to US GAAP) Three Months ended Sept 30, 2012 Euros (mn) USD (mn) Chrysler Net Income IFRS Reconciling Items: Capitalization of development costs, net of amortization 1) (217) (270) Other (44) (56) (261) (326) Chrysler Net Income - US GAAP ) Under IFRS, development costs for vehicle project production are capitalized as intangible assets if the development costs can be measured reliably and the economic feasibility of the product support the view that the development expenditure will generate future economic benefits. Capitalized development costs include all direct and indirect costs that are directly attributable to the development process. These costs are subsequently amortized to expense on a straight-line basis from the start of production over the estimated production cycle. Under US GAAP, with the exception of certain software development costs, development costs are expensed as incurred in accordance with ASC 730, Research and Development Costs October 30,

41 Chrysler Net debt reconciliation (from IFRS to US GAAP) Euros (mn) Sept 30, 2012 USD (mn) Chrysler Net Debt - IFRS 1,243 1,607 Unamortized purchase accounting adjustments 1) (534) (691) Classification and other differences: Accrued interest (206) (267) Other (173) (223) Net Industrial Debt - US GAAP ) In connection with the transaction, all financial liabilities were re-measured to their fair value as of the date of consolidation. The unamortized balance primarily relates to the fair value adjustment on the VEBA Trust Note October 30,

42 Detailed cash flow ( mn) Fiat Group Fiat ex Chrysler Q Q Q Q Net Industrial (Debt)/Cash beginning of period (5,435) (3,897) (4,084) (1,469) * Net Income (281) (210) D&A 1,030 1, Change in Funds & Others (315) 91 (87) 147 Cash Flow from Op. Activities bef. Chg. in W.C. 1,001 1, Change in Working Capital (219) (1,430) (768) (790) Cash Flow from Operating Activities 782 (204) (601) (290) Tangible & Intangible Capex (2,028) (1,562) (827) (842) Cash Flow from Operating Activities net of Capex (1,246) (1,766) (1,428) (1,132) Change in Investments, Scope & Others 46 (22) 84 (276) Net Industrial Cash Flow (1,200) (1,788) (1,344) (1,408) Capital Increase / Share Repurchases / Dividends - (1) - 1 FX Translation Effect (59) (86) (23) (8) Change in Net Industrial Debt (1,259) (1,875) (1,367) (1,415) Net Industrial (Debt)/Cash end of period (6,694) (5,772) (5,451) (2,884) * Adjusted after 16% incremental equity subscription Note: Numbers may not add due to rounding October 30,

43 Fiat ex Chrysler Net debt breakdown ( bn) Jun. 30, 12 Sept. 30, 12 Cons. Ind. Fin. Cons. Ind. Fin Gross Debt * (0.2) (0.2) - Derivatives M-to-M, Net (0.2) (0.2) - (10.2) (9.9) (0.3) Cash & Mktable Securities (7.8) (7.5) (0.3) Net Debt * Net of intersegment receivables Note: Numbers may not add due to rounding October 30,

44 Fiat ex Chrysler Gross debt ( bn) Outstanding Jun. 30, 12 Outstanding Sept. 30, Cash Maturities Bank Debt Capital Market Other Debt Asset-backed financing ABS / Securitization Warehouse Facilities Sale of Receivables Accruals & Other Adjustments Gross Debt 16.3 (10.2) Cash & Mktable Securities (7.8) (0.2) Derivatives (Assets) / Liabilities (0.2) 7.2 Net Debt Undrawn committed credit lines 2.0 Note: Numbers may not add due to rounding October 30,

45 Chrysler Gross debt ( bn) Outstanding Jun. 30, 12 Outstanding Sept. 30, Cash Maturities Bank Debt Capital Market Other Debt Asset-backed financing ABS / Securitization Accruals & Other Adjustments Gross Debt 10.5 (9.6) Cash & Mktable Securities (9.2) (0.0) Derivatives (Assets) / Liabilities (0.0) 1.4 Net Debt Undrawn committed credit lines 1.0 Note: Numbers may not add due to rounding October 30,

46 Debt maturity schedule ( bn) Outstanding Sept 30, 12 Fiat ex Chrysler 3M Beyond 5.0 Bank Debt Capital Market Other Debt Total Cash Maturities Cash & Mktable Securities 2.0 Undrawn committed credit lines 9.8 Total Available Liquidity 3.1 Sale of Receivables (IFRS de-recognition compliant) 2.0 of which receivables sold to financial services JVs (FGA Capital) Outstanding Sept 30, 12 Chrysler 3M Beyond 2.8 Bank Debt Capital Market Other Debt Total Cash Maturities Cash & Mktable Securities 1.0 Undrawn committed credit lines 10.2 Total Available Liquidity Note: Numbers may not add due to rounding; total cash maturities excluding accruals October 30,

47 Contacts GROUP INVESTOR RELATIONS TEAM Marco Auriemma Vice President Alexandra Deschner Timothy Krause Paolo Mosole Sara Nicola Maristella Borotto fax: websites: October 30,