Five- year Financial Targets. Richard Palmer



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Transcription:

Five- year Financial Targets Richard Palmer

Industry Outlook (Units, Millions) NAFTA & U.S. (passenger cars, SUV, pick- up trucks & LCVs) 18.7 19.2 19.5 15.9 16.3 16.6 16.9 14.8 17.6 2011 17.0 17.0 NAFTA U.S. 2012 2013 2014E 2015E APAC & China (passenger cars & LCVs) 30.4 20.0 CAGR 2013-18: 1.3% 13.1 2011 20.0 CAGR 2013-18: 1.4% 17.5 15.6 19.9 33.5 18.6 2012 35.3 20.6 LATAM & Brazil (passenger cars & LCVs) 37.3 40.0 2016E 42.5 2017E 44.7 2018E 46.2 CAGR 2013-18: 5.5% 5.6 LATAM Brazil 3.4 2011 5.9 3.6 2012 5.9 5.8 3.6 3.6 2013 2014E 6.0 3.8 2015E 6.3 CAGR 2013-18: 3.2% 4.0 22.4 24.5 26.2 2016E 22.0 21.3 21.1 21.2 22.0 22.9 Five- Year Financial Targets 2014E 2015E 2016E 2017E 2018E 2018E 24.0 25.0 CAGR 2013-18: 3.4% CAGR 2013-18: 3.2% 15.3 14.0 13.8 14.2 14.7 15.2 2011 2012 2013 2014E 2015E 2016E 15.7 16.1 EMEA EU28+EFTA China 2013 2017E EMEA & EU28+EFTA (passenger cars & LCVs) 28.8 APAC 4.4 4.2 CAGR 2013-18 : 4.1% CAGR 2013-18: 6.9% 27.7 6.9 6.6 2017E 2018E

Sales Volumes (including JV s) By Brand (Units, Millions) CAGR ~10% ~32% ~(3%) ~7.0 ~0.7 ~0.08 4.4 0.02 0.8 0.7 ~ 22% ~ 6% ~1.9 ~1.2 0.9 ~ 15% ~0.8 0.4 0.1 ~ 40% ~0.4 1.5 ~ 5% ~1.9 FY 13 FY 18E Note: Numbers may not add due to rounding

Sales Volumes (including JV s) By Region (Units, Millions) 4.4 0.2 0.9 0.02 Luxury APAC CAGR ~10% ~32% ~7.0 ~ 40% ~1.1 APAC ~ 8% ~1.3 LATAM ~ 8% ~3.1 NAFTA ~ 6% ~1.5 EMEA LATAM 2.1 NAFTA 1.1 EMEA XX FY 13 Five- Year Financial Targets ~0.08 Luxury FY 18E Note: Numbers may not add due to rounding

Market Share By Region (%) NAFTA and U.S LATAM and Brazil (passenger cars & LCVs) (passenger cars, SUV, pick- up trucks & LCVs) 12.9% 15.8% 22.2% 23.3% 15.5% 10.8% 11.3% 11.2% 11.5% U.S. 16.1% 26.6% 21.5% 16.8% 19.3% 15.8% LATAM NAFTA 11.4% Brazil 10.5% 2011 2012 2013 2014E 2018E APAC and China (passenger cars & LCVs) 2011 2012 2013 2014E EMEA and EU28+EFTA (passenger cars & LCVs) 7.5% 6.8% 2.8% 7.1% 6.5% 6.0% 2.3% 0.3% 0.2% 2011 2018E 0.3% 0.3% 2012 Five- Year Financial Targets 6.2% 0.6% APAC 5.5% China 0.6% 2013 2014E 2018E 2011 2012 EU28+EFTA 5.3% 2013 EMEA 2014E 2018E

2014-2018 Business Plan Financial Highlights Consolidated volumes increase to ~6.3M units from 4.4M in 2013 and JV volumes increase to ~0.7M Group Net Revenues to reach ~ 132B by 2018 with CAGR of ~9% over the plan period EBIT increasing nearly three- fold from 3.5B (excluding unusuals) in 2013 to ~ 9B in 2018, with margins increasing from 4.1% in 2013 to ~7% in 2018. EBITDA (*) doubling from 8B in 2013 to ~ 17B in 2018 Net income of ~ 5B projected for 2018 with EPS at ~ 4/share From 2014-2018, total Capex and Capitalized R&D (IFRS standards) of ~ 48B at average of ~ 9.5B/year and peaking in 2016 at ~ 11B Net Industrial Debt peaks at ~ 11B in 2015 from adjusted 9.7B (**) at the end of 2013, and then reduces to ~ 0.5-1B by end of 2018. Pension liability reduced to ~ 1B from 4B at end 2013 due to cash contribufons of 2B through plan period and interest rate increases Available liquidity maintained at ~20% of revenues through plan period No capital increases and no dividends included in the Plan All financials are prepared under IFRS standards (***) and expressed in Euros (*) EBITDA excluding Result from Investments (**) AAer VEBA stake acquisieon (***) 2012-13 restated for the retrospeceve applicaeon of IFRS11

Consolidated Net Revenues by Segment B CAGR = ~9% ~132 Consolidated Revenues grow over 50% from 2013 to 2018 75 ACTUALS 84 87 8 4 17 ~93 ~104 Revenues grow to 132B by 2018 at an average growth rate of ~9% NAFTA grows at an average annual growth rate of ~8% and confnues to represent ~50% of total Group revenues in 2018 5 10 Strong growth in APAC, LATAM and EMEA with average annual growth rates through 2018 of ~20%, ~9% and ~9% respecfvely, driven principally by Jeep localizafon and Alfa Romeo product launches 2011 2012 2013 2014E 2015E 2016E 2017E 2018E Luxury Brands double to ~ 9B NAFTA LATAM APAC EMEA Luxury Components eliminafons

EBIT & EBITDA Margins B 9.3% 9.8% 9.4% 12.0% 11.2% 13.3% 12.5% 7.4% EBIT margin improvement of ~2-3 ppts by 2018 EBIT margin improves steadily throughout Plan period reaching 6.6%- 7.4% in line with top compeftors 4.1% 4.3% 3.9% 5.7% 4.9% 6.6% All segment margins contribute posifvely with double- digit margins by 2018 in LATAM, APAC and the Luxury segment 87 ~93 ~104 ~132 2013 2014E 2015E 2016E 2017E 2018E Revenues EBIT margin (Low) EBIT margin (High) EBITDA margin (Low) EBITDA margin (High) Improvement driven by complefon of product renewal in NAFTA, globalizafon of Jeep in EMEA, APAC and LATAM, and growth of Maseraf and Alfa Romeo volumes globally Targefng to double EBITDA to ~ 17B in 2018 EBITDA excluding Result from Investments 2013-14 excluding Unusuals

EBIT Bridge B ~ 6B EBIT percentage up ~2-3 ppts by 2018 Margin 4.1% 2013 Volume / Mix Price / Net Product Cost Consolidated volumes (Units, M) Industrial cost SG&A Investment Income FX / Other Margin 6.6 7.4% 2018E Consolidated volumes (Units, M) Volume growth of ~2M units driven by Jeep, Chrysler, Alfa Romeo with posifve mix also from Luxury Brands Pricing and industrial efficiency acfons offset product content increases and cost inflafon Industrial cost increase due to D&A from product launches ~4.4M ~6.3M SG&A relates to markefng cost for brand expansion 2013 excluding Unusuals

Investment Income ( M) ~0.7M ~700 JV volumes and investment income grow significantly during the plan ~0.1M 84 2013 2016E 2018E JV volumes grow significantly from 2016 and reach 700K units by 2018 Income from JV s grows to ~ 700M by 2018 APAC drives growth through localizafon in China of Jeep producfon and consequent growth in sales volumes working with local JV partner EMEA Components & Other APAC Sales Volumes

Target by Segment NAFTA and LATAM NAFTA 46B 4.8% Revenue CAGR ~8% ~ 67B 6%- 7% 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin NAFTA revenues +~46% and EBIT target 6-7% Revenue growth from new Jeep and Chrysler products and launch of Alfa Romeo brand. EBIT margins improve on the strength of increased volume leverage and complefon of product line- up. Pricing and industrial efficiencies offset product content costs due to emissions compliance acfons LATAM 10B 6.2% Revenue CAGR ~9% ~ 15B >10% LATAM revenues +~50% and double- digit EBIT Revenue growth and margin expansion driven by start- up of producfon of locally produced Jeeps in Pernambuco in 2015 and renewal of Fiat line- up on global plaporms from 2017 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin 2013 excluding Unusuals

Target by Segment APAC and EMEA APAC 5B 7.2% ~ 11B >10% 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin EMEA 17B - 1.8% Revenue CAGR ~20% Revenue CAGR ~9% ~ 26B 2%- 3% APAC revenues more than double and EBIT in excess of 10% APAC operafng performance confnues to improve with EBIT margin growth driven by confnuous expansion in the market for imported vehicles, including launch of Alfa Romeo, and localizafon of Jeep and Fiat products EMEA revenues +~50% and EBIT at 2%- 3% EMEA reaches EBIT breakeven in 2016 and grows margins on higher volumes and improved price posifoning driven by Jeep and Alfa Romeo products 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin 2013 excluding Unusuals

Target by Segment Luxury Brands and Components LUXURY BRANDS 4B Revenue CAGR ~18% ~ 9B >15% Luxury Brands revenue more than double and EBIT at above 15% Luxury Brands growth driven by new Maseraf range, reaching ~75k units in 2018 14.0% 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin COMPONENTS 8B 2.5% Revenue CAGR ~9% ~ 12B 4%- 5% Components revenues +~50% and EBIT at 4-5% Growth driven by Marelli, with Comau nearly doubling and Teksid returning to profit in 2015 2013 2014E 2015E 2016E 2017E 2018E EBIT Margin 2013 excluding Unusuals

Net Income CAGR 4.7-5.5B ~40% Net Income grows to over 5B by 2018 Net Income margins of ~4% by end of Plan ACTUAL 0.9B 0.6-0.8B 1.9-2.5B EPS to ~ 4 per share by 2018 Interest charge relafvely constant at ~ 2B throughout 2016 with some reducfon thereaqer due to lower net debt 2013 2014E 2016E 2018E Cash tax rate at ~30% throughout the period EPS 0.1 EPS 0.44-0.60 EPS 1.6-2.1 EPS 3.9-4.4 2013-14 excluding Unusuals

Capex & R&D Spending B 1.6 1.6 8.0% 1.7 6.3% 6.2% 3.9% 4.0% 4.1% 12.6 8.8 9.4 4.3 3.4 3.7 8.3 5.4 5.7 1.1 4.8% 3.1% 10.7 4.2 6.5 Capex & R&D combined spending peaks in 2016 Capex spending increases through the Plan period with a peak reached in 2016 to support the heavy cadence of new/refreshed product programs R&D spending increases slightly over Plan period, again reaching a peak in 2016 of 4.3B 2013 2014E 2015E 2016E 2017E 2018E PP&E Capex Total R&D PP&E Capex on Revenues Total R&D on Revenues Capex/D&A rafo Note: Numbers may not add due to rounding

Industrial Net Debt & Cash Flow B 2013 2016E 2018E (0.5)- (1.0) EBITDA (**) Capex (incl. Total R&D spending) Financial Charges & Taxes Working Capital & Others 35 (32) (7) 3 EBITDA (**) Capex (incl. Total R&D spending) Financial Charges & Taxes Working Capital & Others 36 (23) (8) 4 Net debt nearly flat Strong cash generafon (9.7) (*) (9.8)- (10.3) (*) AAer VEBA stake acquisieon (**) Industrial EBITDA excluding R&D costs

2014-2018 Business Plan Balance Sheet Management Plan assumes ring- fencing of Chrysler balance sheet removed in 2016 by repaying Chrysler bonds early, and re- financing at FCA treasury level Opportunity exists to repay Chrysler bonds using cash on balance sheet and so reduce gross debt level. Depends on assessment of level of liquidity considered necessary at that fme Complete lisfng of FCA on NYSE by end 2014, further preserving opfonality regarding acfons to complete investment programs and to support balance sheet and separate rafngs unfl end of Chrysler s ring- fencing Regularly access capital markets under FCA name in Europe and U.S. and launch first Yankee bond aqer lisfng Target to achieve investment grade credit metrics by 2017 No use of cash to start new capfve FinCo s No capital increases or dividends to shareholders included in the Plan

Capital Allocabon Guidelines through 2018 Product INVESTMENTS Shareholder RETURN Capital STRUCTURE Pension Deficit FUNDING Capital to Value Generafon cycle Product Investments (CAPEX and R&D) ü Complete product renewal NAFTA ü Launch Alfa Romeo brand ü Globalize Jeep Brand offering ü Maseraf posifon established in Luxury segment ü Fiat Brand reposifoned in EMEA ü Fuel efficiency and emissions compliance acfons implemented Long- Term Capital Structure ü Maintaining healthy available liquidity ü Remove ring- fencing of Chrysler balance sheet ü Investment grade credit metrics by 2017 Pension Deficit Funding ü Reduce deficit to ~ 1B by end of plan Shareholder Return ü Significant EPS accrefon and net debt reducfon driving strong shareholder returns

Re- Domicile and US Lisbng Timetable 2014 Transacbon approval and preparabon......... SEC Registrabon Process......... Q1 Q2 Q3 Q4 Merger approval and execubon......... Closing and lisbng.........

Summary 2013 2014E 2016E 2018E Revenues 87B ~ 93B ~ 104B ~ 132B EBIT & Margin pct. 3.5B (*) 4.1% (*) 3.6-4.0B (*) 3.9%- 4.3% (*) 5.1-5.9B 4.9%- 5.7% 8.7-9.8B 6.6%- 7.4% Net Income 0.9B (*) EPS 0.1 (*) 0.6-0.8B (*) EPS 0.44-0.60 (*) 1.9-2.5B EPS 1.6-2.1 4.7-5.5B EPS 3.9-4.4 Capex (IFRS) 7.5B 7.5-8.5B 10.5-11.5B 8.5-9.5B Net Ind. Debt 9.7B (**) 9.8-10.3B 9.8-10.3B ~ 0.5-1.0B (*) Excluding Unusuals (**) Net Debt aaer VEBA stake acquisieon

Disclaimer Certain informafon included in this presentafon, including, without limitafon, any forecasts included herein, is forward looking and is subject to important risks and uncertainfes that could cause actual results to differ materially. The Group s businesses include its automofve, automofve- related and other sectors, and its outlook is predominantly based on what it considers to be the key economic factors affecfng these businesses. Forward- looking 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 automofve and automofve- related products and changes in consumer preferences that could reduce relafve demand for the Group s products; governmental programs; general economic condifons in each of the Group's markets; legislafon, parfcularly that relafng to automofve- related issues, the environment, trade and commerce and infrastructure development; acfons of compeftors in the various industries in which the Group competes; producfon difficulfes, including capacity and supply constraints, excess inventory levels, and the impact of vehicle defects and/or product recalls; labor relafons; interest rates and currency exchange rates; our ability to realize benefits and synergies from our global alliance among the Group s members; substanfal debt and limits on liquidity that may limit our ability to execute the Group s combined business plans; polifcal and civil unrest; earthquakes or other natural disasters and other risks and uncertainfes. Any of the assumpfons underlying this presentafon or any of the circumstances or data menfoned in this presentafon may change. Any forward- looking statements contained in this presentafon speak only as of the date of this presentafon. We expressly disclaim a duty to provide updates to any forward- looking statements. Fiat does not assume and expressly disclaims any liability in connecfon with any inaccuracies in any of these forward- looking statements or in connecfon with any use by any third party of such forward- looking statements. This presentafon does not represent investment advice or a recommendafon for the purchase or sale of financial products and/or of any kind of financial services. Finally, this presentafon does not represent an investment solicitafon in Italy, pursuant to Secfon 1, lewer (t) of Legislafve Decree no. 58 of February 24, 1998, as amended, nor does it represent a similar solicitafon as contemplated by the laws in any other country or state. Copyright and other intellectual property rights in the informafon contained in this presentafon belong to Fiat S.p.A. Fiat and FCA are trademarks owned by Fiat S.p.A. Fiat Chrysler Automobiles (FCA) is the name expected to be used following complefon of the merger of Fiat S.p.A. into a recently formed