A record trading profit for the Group · FY ‟12 financial highlights A record trading profit for...

20 Novembre, 2010

A record trading profit for the Group

Q4 & FY 2012 Results Review

January 30, 2013 Q4 & FY 2012 Results Review 2

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

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

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

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

t o d i f f e r ma te r ia l l y . The Group ‟ s bus in es s es in c lu de

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

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

in t e rp re t a t io n o f wha t i t c on s ide r s t o be t h e key

ec onom ic f ac t o r s a f f e c t in g t h es e bu s in es ses . F o rwa rd -

lo ok ing s t a t emen t s w i t h r ega rd t o t h e G roup ' s

bu s in es s es in vo lve a number o f impo r t a n t f ac t o r s th a t

a re s ub jec t t o c hange , in c lu d ing , bu t n ot l im i t e d t o :

t h e many in t e r re la t ed f a c t o r s t h a t a f f ec t c on sumer

c on f iden ce a nd wo r ld w id e demand f o r a u tomo t ive a nd

au tomo t ive - re la t ed p roduc t s a nd c hanges in c on sumer

pre f e ren ces t h a t c ou ld r edu ce re la t ive de mand f o r th e

Group ‟ s p rodu c ts ; gove rnmen ta l p rog rams ; genera l

e c onom ic c ond i t io n s in ea ch o f t h e G roup ' s ma rke t s ;

l eg i s la t io n , pa r t i c u la r ly t h a t r e la t in g t o a u tomot ive -

re la t ed i s s ues , t h e env i ronmen t , t r a de and c ommerc e

a nd in f r a s t ru c tu re deve lop men t ; a c t io n s o f

c ompet i t o r s in t h e va r io u s in du s t r ie s in wh ic h t h e

G roup competes ; p rodu c t io n d i f f i c u l t i e s , in c lu d ing

c a pa c i t y and supp ly c on s t ra in t s , exc es s in ven to ry

leve l s , a nd th e impa c t o f veh ic le de f ec t s a nd/o r

produc t r ec a l l s ; l a bo r r e la t io n s ; in t e res t r a t es a nd

c u r ren c y exchange ra t es ; o u r a b i l i t y t o r ea l i z e

bene f i t s a nd s yne rg ie s f r om ou r g lo ba l a l l i a n c e a mong

t h e Group ‟ s members ; s ubs t a n t ia l deb t a nd l im i t s o n

l i qu id i t y t h a t may l im i t o u r a b i l i t y t o execu te th e

Group ‟ s comb in ed bu s in es s p la n s ; po l i t i c a l a nd c iv i l

u n res t ; ea r t hqua kes and o th e r r i s k s a nd un c e r t a in t ie s .

A ny o f t h e a s sumpt io n s unde r ly in g t h i s p r es en ta t io n o r

a ny o f t h e c i r c ums tan c es o r da t a men t io ned in t h i s

p res en ta t io n ma y c hange . A ny f o rwa rd- lo o k in g

s t a t emen t s con ta in ed in t h i s p res en ta t ion s pea k on ly

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

d i s c la im a dut y to p ro v ide upda tes t o a ny f o rwa rd-

lo o k in g s t a t emen t s . F ia t does n o t a s s ume a nd

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

any in a ccu ra c ie s in a ny o f th es e f o rwa rd- lo ok ing

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

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

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

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

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

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

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

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

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

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

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

Safe Harbor Statement


• Fiat Group closed 2012 at historical highs

Revenues at €84bn

Trading profit €3.8bn

EBIT of €3.7bn

Net profit at €1.4bn (€1.7bn ex-unusuals)

Net industrial debt at €6.5bn

Total available liquidity in excess of €20bn

• Worldwide shipments for mass-market brands up 6% to 4.2mn units

• Successfully accessed capital markets through several bond issuances totaling €2.5bn in 2012 (€0.7bn in Q4)

• Completed mandatory conversion of special share classes into ordinary shares

• Fiat notified VEBA of its exercise of the first two tranches to purchase a portion (~3.3% each) of VEBA‟s ownership interest in Chrysler

Resolution of dispute on purchase price of 1st tranche still pending before Delaware Court

• Guidance for 2013 confirms targets underpinning Group development plans presented on Oct 30, 2012

Revenues in €88-92bn range

Trading profit in €4.0-€4.5bn range

Net profit of €1.2-€1.5bn

Net industrial debt of ~€7.0bn

FY „12 Executive summary

EMEA 20%

NAFTA 52%

LATAM 13%

APAC 4%

Luxury brands

3%

7%

Others 1%

NAFTA 71%

LATAM 28%

APAC 7%

Nearly break-even

EMEA mass-markets brands Luxury & Performance brands

~(€0.7)bn ~€0.4bn

Components Others and Eliminations

~€0.2bn ~€(0.1)bn

Components

Italy

<10%


• Firm control on costs and tight management of supply and demand function

Americas: consistent utilization of all flexibility instruments (additional shifts where applicable and extra-overtime) to

maximize production output

EMEA: production stoppages in Italy through temporary lay-offs to manage fall in market demand (incl. Central Staffs)

and re-alignment of workforce in Poland (headcount reduction of 1,450 employees in January 2013)

WCM program delivered ~€500mn savings (or 7.5+% of transformation cost) at Group level

FY net savings on direct materials from Group purchasing in excess of €400mn

Disciplined discretionary SG&A spend continued throughout the year

• Investment programs on schedule across the globe

• Major product intros

NAFTA: Dodge Dart, SRT Viper, Ram Light Duty pick-up truck

EMEA: Fiat Panda & 500L

LATAM: Fiat New Grand Siena, Jeep Compass in Brazil, Dodge Dart

APAC: Fiat Viaggio, reintroduction of Chrysler brand (300C & Grand Voyager) in China

• Major plant awards

Pomigliano plant awarded “Automotive Lean Production Award 2012”

WCM recognitions: Gold Award given to Bielsko Biala powertrain plant (Poland); Silver Award to Pomigliano assembly and

Corbetta Magneti Marelli plants (Italy); Bronze Awards to 4 Chrysler plants (Dundee, Windsor, Saltillo and Toledo), and

to 4 Magneti Marelli plants

• Finalized agreement with Mazda for development and manufacturing of a new distinctly styled, iconic

and brand-specific RWD roadster for Alfa Romeo

FY „12 Operational highlights


• Total investment to exceed €500mn for plant upgrade and refurbishing

• Plant to produce 2 new models (New Quattroporte and Ghibli, launching in H1 2013), leveraging on Group portfolio and technologies

• Investment program of €1+bn, including modifications to existing production processes to accommodate new modular Small Wide architecture

Investment evenly split between Chrysler and Fiat

• Production of 2 brand-new vehicles beginning in 2014 for worldwide markets

Fiat 500X, the latest addition to 500 family

New Jeep SUV, brand‟s entrance into new market segment

• Total plant production capacity at run-rate based on 3 shifts (1.6k vehicles/day)

• Investment of ~€800mn for production of New Panda

• Production ramp-up ended H1 2012

• Implementation of highest WCM standards

• Best manufacturing quality standards within the Group

• Plant prized with Automotive Lean Production Award 2012

• Re-launch manufacturing footprint in Italy by leveraging historical premium brand heritage, re-aligning product portfolio and repositioning the business for the future

Up-to-date available capacity installed, with little capacity left elsewhere

• Production kicked-off at Pomigliano & Grugliasco plants, while investment started at Melfi plant

• Continued use of temporary layoff scheme to allow for flexibility during industrialization phase of new models

• Investment programs at Mirafiori and Cassino plants will be part of future announcements

New business plan actions started Plant investments in Italy


Jeep brand All-time global sales record in 2012

• A ~20% sales growth over 2011 to 702k vehicles

Previous record in 1999 (675k vehicles)

• Increased sales for Jeep in all major global regions

• Jeep expanding internationally, with sales steadily growing outside NAFTA

420

592

702

2010 2011 2012

+41%

+19%

112

177

223

2010 2011 2012

+57% +26%

67 82 91

2010 2011 2012

+23%

+10%

35

86 103

2010 2011 2012

+145%

+20%

65 80

91

2010 2011 2012

+23%

+13%

131

167 194

2010 2011 2012

+27% +16%

Best year ever globally and in U.S.

Best U.S. sales since 2005 (155k)

Best year ever globally

Best U.S. sales year (62k)

Vehicles (000’s)

Global

sales

Sales

outside

NAFTA

+46% +49%

75 109 162


74,949

83,957

FY „12 FY ‟11 (pro-forma)

Net profit (€mn)

Net industrial debt (€bn)

Liquidity (€bn)

Trading profit (€mn)

EBIT (€mn)

FY ‟11 (pro-forma)

3,232

3,814

FY „12

FY ‟11 (pro-forma)

4,305

3,677

FY „12

Cash & Mktable Securities

Undrawn committed credit lines

Net revenues (€mn)

1,651 1,411

FY „12 FY ‟11 as reported

(includes Chrysler from Jun 1)

6.5

Dec 31 „12 Dec31 „11

5.5

3.0

Dec 31 „11

20.7 20.8

Dec 31 „12

17.7 17.9

2.9

FY ‟12 financial highlights A record trading profit for the Group

Pro-forma: calculated by including Chrysler results as if consolidated from 1 January 2011

• Growth of 12% over prior year on a pro-forma basis (+8% at constant exchange rates)

• Top-line reflecting volume growth for mass-market brands in NAFTA, LATAM & APAC, more than offsetting declines in EMEA

• Luxury and Performance brands up 7%

• Components substantially in line with last year

• Group trading profit +18% on a pro-forma

basis (+11% at constant exchange rates)

with trading margin of 4.5%

• Mass-market brands +21%

NAFTA: €2,693mn (6.2% margin)

LATAM: €1,063mn (9.6% margin)

APAC: €260mn (8.3% margin)

EMEA: -€704mn (-4.0% margin)

• Luxury and Performance Brands: €392mn

(13.5% margin)

• Components: €176mn (2.2% margin)

• Mass-market brands

NAFTA: €2,741mn

LATAM: €1,032mn

APAC: €255mn

EMEA: -€738mn (-€544mn before

unusuals)

• Luxury and Performance Brands: €392mn

• Components: €167mn

• Profit attributable to owners of the parent of €348mn

(€1,334mn a year ago)

EPS of €0.286 vs. €1.101 in 2011 (ex-unusuals, EPS

€0.493 vs. €0.254 a year ago)

• A €1bn loss for Fiat ex-Chrysler (€1bn profit in 2011)

Ex-unusuals, loss of €780mn (€106mn loss last year)

• Income taxes of €625mn (€420mn for Fiat ex-Chrysler,

mainly related to taxable income of companies operating

outside Europe and employment-related taxes in Italy)

• For Fiat excluding Chrysler, cash flow negative €2.6bn for the year driven by the net loss, negative change in working capital and Capex on new products

A €0.4bn positive cash flow in Q4 (in line with 2011)

• Chrysler positive cash flow of €1.6bn in 2012, despite increased Capex of €4.3bn

Negative cash flow of €0.2bn in Q4, due to normal

seasonality

• Group liquidity slightly higher than year-end 2011

Fiat ex Chrysler at €11.1bn (€12.3bn a year ago)

Chrysler at €9.8bn (€8.4bn at year-end 2011)

• Group successfully accessed capital markets throughout the year, with a total of €2.5bn in bond issuances (€1.5bn bond maturities)

• Undrawn committed credit lines unchanged throughout the year


33.8

11.1

2.1

20.1

2.7 8.1

(2.9)

74.9

43.5

11.1 3.1

17.8

2.9 8.0

(2.5)

84.0

NAFTA LATAM APAC EMEA Ferrari &

Maserati

Components Other &

Eliminations

Fiat Group

MASS-MARKET BRANDS

1,770 1,385

119

(897)

358

(110)

1,680

4,305

2,741

1,032 255

(738)

392 167

(172)

3,677

NAFTA LATAM APAC EMEA Ferrari &

Maserati

Components Other &

Eliminations

Fiat Group

MASS-MARKET BRANDS

FY 2011* FY 2012

FY ‟12 financial highlights Performance by segment

Note: Graphs not to scale

EBIT before unusuals • 2011: €(353)mn • 2012: €(544)mn

EBIT before unusuals • 2011: €3,361mn • 2012: €3,921mn

*Pro-forma: calculated by including Chrysler results as if consolidated from 1 January 2011

Group revenues up 12% on a pro-forma basis

• Mass-market brands +13% compared to last year reflecting volume growth in NAFTA (+29%) and APAC (+50%)

• LATAM remained strong

• EMEA declined 11% on the back of continued deterioration in European demand, particularly in Italy

• Luxury & Performance brands up 7% mainly driven by growth in North America and Asia Pacific

• Components substantially in line with 2011

EBIT ex-unusuals up 17% year-over-year on a pro-forma basis

• Net unusuals of €244mn in 2012 primarily related to SevelNord investment write-down, provisions for restructuring and disputes relating to operations terminated in prior years


FY ‟12 From trading profit to net result

Note: “Financial charges, net” includes a €34mn gain from the mark-to-market value of stock option-related equity swaps (€108mn loss in FY ‟11)

€mn (unless otherwise stated)

Fiat Group Chrysler Fiat ex Chrysler

FY „12 FY ‟12 FY „12 FY „11

Worldwide Shipments (mass-market brands - Units „000)

4,209 2,409 1,906 2,033

Net Revenue 83,957 51,202 35,566 37,382

Trading Profit % of revenues

3,814 4.5%

3,459 6.8%

355 1.0%

1,047 2.8%

Investment income, net 107 (3) 110 130

EBIT BEFORE UNUSUALS 3,921 3,456 465 1,177

Unusual items, net (244) 17 (261) 1,089

EBIT 3,677 3,473 204 2,266

EBITDA 7,811 5,490 2,321 4,501

Financial charges, net (1,641) (816) (825) (796)

Pre-tax result 2,036 2,657 (621) 1,470

Taxes (625) (205) (420) (464)

Net result 1,411 2,452 (1,041) 1,006


FY „12 net industrial debt walk Debt position reduced from September level

Change in Net Industrial Debt (1,016)

Cash Flow from operating activities, net of Capex (1,191)

€mn

(5,529)

(6,545)

December 31, 2011

December 31, 2012

Industrial EBITDA

Financial Charges & Taxes

Change in Funds & Other

Working capital

Capex Investments, Scope & Other

Capital increase /Repos/

Dividends

FX translation

effect

7,636

(2,350)

694

(7,530) (36) (81)

359

292

Positive cash contribution from Chrysler more than offset by absorption for Fiat excl. Chrysler

Fiat excl. Chrysler: cash flow negative €2.6bn (net industrial debt at €5.0bn at year-end) driven by net loss, negative change in working capital and Capex on new products

Chrysler: positive cash flow of €1.6bn, despite increased Capex of €4.3bn (net industrial debt at 2012-end reduced to €1.5bn)

MASS-MARKET BRANDS BY REGION

LUXURY AND PERFORMANCE BRANDS

COMPONENTS AND

PRODUCTION SYSTEMS

BUSINESS ENVIRONMENT OVERVIEW

2013 GUIDANCE

1

2

3

4

5

12 January 30, 2013 Q4 & FY 2012 Results Review

TOTAL NAFTA FY ‟12 FY ‟11 PRO-FORMA

Shipments (k units)

2,115 1,783

Revenues (€mn)

43,521 33,800

Trading Profit (€mn)

2,693 1,693

EBIT (€mn)

2,741 1,770

Mass-market brands Highlights

FINANCIAL PERFORMANCE

• Continued strong performance in better than expected markets

• Revenues up 29% (+19% at constant exchange rates) primarily due to higher vehicle volumes and positive pricing impact, reduced by unfavorable mix

• Trading profit up 59% vs. last year (+47% at constant FX rates) with volume increases and positive net pricing partially offset by higher advertising expense and higher industrial costs, impacted by additional shifts at certain plants and higher capacity utilization

Trading margin increased 120 bps to 6.2%

COMMERCIAL PERFORMANCE & HIGHLIGHTS

• Vehicle shipments up 19%, including

U.S.: 1,748k units (+20%)

Canada: 255k vehicles (+9%)

Mexico: 98k units (+17%)

• Group vehicle sales outpacing market with an 18% growth to 1,989k vehicles, primarily reflecting a 21% increase in U.S. sales

Cars up 39% in NAFTA (U.S. +41%)

Trucks up 11% (U.S. +14%)

• US & Canada combined sales: all brands up significantly, posting double-digit increases

Fiat +108%, Chrysler +40%, Ram +15%, Dodge +13%, Jeep +12%

Note: pro-forma calculated by including Chrysler results as if consolidated from Jan 1, 2011


Mass-market brands EBIT walk

€mn

• Volume and Mix reflects shipment increase of 332k vehicles partially offset by negative mix (including higher growth in passenger cars vs. trucks & SUVs)

• Positive net price reflects pricing actions during the year including product content enhancements

• Industrial costs impacted by higher manufacturing expenses and increased vehicle content, net of purchasing and WCM efficiencies

• SG&A reflects higher advertising expenditures and headcount costs to support business growth

1,770

2,741 839

488

(346) (107)

97

FY 2011 (pro-forma)

Net price Industrial costs

SG&A Investments / FX / Other

FY 2012 Volume & Mix



8.1 8.8

10.8 10.9

11.6 12.6 12.9 13.0

*Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)

Mass-market brands Market trends & business dynamics

Q4 Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2009 2010 2011 2012

QUARTERLY MARKET SHARE

(%)

INDUSTRY VOLUME & OUTLOOK (MN UNITS)

0.37 0.381.7

Q4 '11 Q4 '12 FY '12

3.3 3.7

14.8

Q4 '11 Q4 '12 FY '12

Q2

U.S.

• FY „12 industry up 13% vs. prior year (cars +19%; trucks +9%) Q4 up 10% (cars +16%; trucks +5%)

• FY Group sales up 21% from a year ago Q4 „12 sales up 12% from prior year

December sales being the 33rd consecutive month of year-over-year sales gains

• Share gain of 70bps in FY, driven by retail sales (fleet mix at 26%, down 200bps from a year ago) Q4 market share up slightly

Q4 retail of retail market share* at 10.3%, up 30bps vs. a year ago

Q4 fleet mix down to 22% vs. 23% in prior year

CANADA

• FY industry +6% vs. 2011 (+2% in Q4)

Cars +10%; trucks +3%

• FY Group sales up 6% from prior year Annual sales records for Ram truck, Jeep Wrangler,

Chrysler 200 and Fiat 500

Best calendar year retail sales since 2000

December being the 37th consecutive month of year-over-year sales growth – longest growth streak in Company‟s history

Passenger car sales up 33% in 2012

• FY share at 14.2%

Q3 Q4

FY share

11.0%

8.8%

FY share

13.0%

9.2%

FY share

14.3%

10.5%

FY share

14.2%

11.2%


TOTAL LATAM FY ‟12 FY ‟11 PRO-FORMA

Shipments (k units)

979 929

Revenues (€mn)

11,062 11,068


1,063 1,410

EBIT (€mn)

1,032 1,385


• Market improved throughout the year closing with good performance, particularly in Brazil reaching a historical level of 3.6mn units thanks to reduction in vehicle tax and lowest real interest rate in history

Best Q4 of Brazilian industry ever (~1mn units )

• Revenues in line with prior year (+5% at constant exchange rates) with increased volume offset by negative currency translation impacts

Q4 up 5% vs. last year (+13% at constant exchange rates)

• Trading profit came in robust, maintaining a double-digit margin despite 25% decrease over prior year (-22% at constant exchange rates) attributable primarily to cost inflation, pricing pressure and unfavorable currency translation impacts, only partly offset by higher volumes and efficiency gains


• Total Group shipments up 5% in the year

Brazil: 845k shipments (+9% vs. a year ago)

Argentina: 84k shipments (-15%)

Other LATAM markets: 50k shipments (-4%)

• Fiat outperformed a strong Brazilian market reaching a 23.3% share (up 110bps vs. 2011) increasing distance from #2 by 33bps. At Region level, share up 60bps to 16.8%

Maintained leadership in Brazil, being leader for 11 years

• Company & dealer inventory levels at 24 days supply at Dec-end, 7 days lower than 2011





€mn

1,385

1,032

89

(91)

(174) (86)

(91)

FY 2011 (pro-forma)




• Better volume on the back of 50k units increase, mainly driven by performance in Brazilian market

• Continued pricing pressure throughout the region

• Inflationary cost (mainly in labor, advertising and SG&A) increases and higher depreciation due to new vehicle launches partially offset by manufacturing efficiencies

• Other mainly relates to FX impacts



*Inclusive of Fiat & Chrysler Group brands

QUARTERLY MARKET SHARE*

(PASSENGER CARS & LCVS; %)

INDUSTRY VOLUME & OUTLOOK (TOTAL LATAM; MN UNITS)

10.6 10.2 11.6 9.3

24.5 22.3 21.7

23.6

Passenger cars LCVs

1.07 1.02 4.21 0.35 0.48

1.63

Q4 '11 Q4 '12 FY '12

~5.84

1.50 1.42

Q4 Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2009 2010 2011 2012

Q2 Q3

REGIONAL Q4 OVERVIEW

• Brazil

Historical sales record in the year for the Group and confirmed market leadership with 110 bps share gain, leveraging on company‟s flexibility to react promptly to increased market demand

• Argentina

Decline in market share mainly attributable to reduced product availability associated with customs delays for imported vehicles and components for local production

FOCUS ON INCENTIVES SCHEME IN BRAZIL

• Government economic stimuli measures in place through end of 2012 and gradually phased out during H1 2013, returning to prior baseline by July

• To ensure continued growth of Brazilian car industry, government launched a new automotive regime (Inovar Auto Program) for 2013-17 period

Program to provide a series of tax incentive schemes for investment dedicated to energy efficiency improvements, R&D and engineering to promote technological development

Group well positioned to participate in and fully benefit from this program


Q4

FY share

24.6%

10.8%

FY share

23.0%

11.2%

FY share

22.2%

11.6%

FY share

23.3%

10.6%



TOTAL APAC FY ‟12 FY ‟11 PRO-FORMA

Shipments

(k units) 103 74

Revenues

(€mn) 3,128 2,086

Trading Profit

(€mn) 260 144

EBIT (€mn)

255 119


• Stable trading conditions across the region with demand increasing in most of the Group‟s key markets

• Revenues up 50% mainly driven by Jeep

Shipments up 39%

• Trading profit up 80+% over last year‟s level primarily driven by volume growth and favorable FX impact, partially offset by increased industrial costs and selling expenses to support regional expansion

Trading margin up 140 bps to 8.3%

• EBIT more than double last year‟s level reflecting mainly growth in trading profit and improvement in India JV


• Retail sales (incl. JVs) up 28% to 115k units on the back of strong performance of Jeep, Fiat and Alfa Romeo brands

Jeep sales (~64% of total APAC sales) almost double last year‟s level

• Chrysler brand almost doubling last year‟s level with the return of all-new 300C and Grand Voyager

Launched Chrysler Ypsilon in Japan in December, the latest addition to Chrysler portfolio

• Group-owned distribution company to take over activities in India to begin operations in 2013

• Chrysler Australia became sole distributor for Fiat (including LCVs), Alfa Romeo and Abarth brands in Australia beginning in May

Notes: • Pro-forma calculated by including Chrysler results as if

consolidated from Jan 1, 2011 • APAC industry reflects aggregate key markets where Group is

competing (i.e. China, India, Australia, Japan, South Korea)



€mn

119

255

187 45

(60)

(91)

55

FY 2011 (pro-forma)




• Volume/mix reflecting increased shipments across all APAC countries (+29k units)

• Improved net pricing in response to increased tax and duty, and reduced dealer incentives

• Industrial costs impacted by increased tax and duty, R&D and enhanced vehicle contents

• Increased network development and selling expenses to support new sales initiatives and continued growth in the region

• Results from investments up with improved performance of India JV

• Favorable FX impact



INDUSTRY VOLUME1

(PASSENGER CARS & LCVS; MN UNITS)

0.2%

0.2% 0.3%

0.5%

1.3%

1.4%

1.7%

2.3%

1.1%

0.5%

0.4%

0.1% 0.2%

0.3%

0.3% 0.4%

1.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

QUARTERLY MARKET SHARE2

(PASSENGER CARS & LCVS; %)


5.7 6.1

23.8

Q4 '11 Q4 '12 FY '12

Q4 Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2009 2010 2011 2012

Q2 Q3 Q4

REGIONAL OVERVIEW

FY Group sales (incl. JVs) up 28%, outperforming industry (+12%), driven by strong performance in most of Group‟s key markets

Group sales up 48% in a strong market (+8%) in Q4

CHINA

• Group sales up 45% to 57k units (industry +8%) for FY 2012 on the back of robust performance of Jeep brand (+107%) and recent launch of Fiat Viaggio

Q4 sales more than double last year with Fiat Viaggio sales accounting for almost one-third of total Group sales

AUSTRALIA

• Continued share gains (+55 bps to 2.1% for FY) as Group posts the best FY sales improvement in market, up 50% (+11% for overall industry), driven by two-fold growth of Jeep and sales of all-new Chrysler 300C

Q4 Group sales up 52% outperforming industry (+13%)

JAPAN

• FY Group sales up 35% propelled by a strong industry (+30%), led by Jeep +59% and Alfa Romeo +139%

Group sales up 37% in Q4

SOUTH KOREA

• Sales improved 23% for the year despite a slightly contracting market, driven by growth of Jeep and Chrysler brands, up 30% and 23% respectively

Q4 Group sales up 9%



TOTAL EMEA FY ‟12 FY ‟11 PRO-FORMA

Shipments (k units)

1,012 1,180

Revenues (€mn)

17,800 20,078


(704) (512)

EBIT (€mn)

(738) (897)


• Difficult trading conditions persisting throughout the year, particularly in Med-countries with Germany reversing its upward trend in H2 Both passenger car and LCV segments at historical FY lows in

EU27+ EFTA, the lowest levels since 1995 and 1996, respectively

Highly competitive environment mainly driven by structural overcapacity in the Region with enduring price pressure, in particular for mass-market segments

• Revenues down 11% for FY (-10% in Q4), mainly reflecting volume declines

• FY trading loss in line with expectations (Q4 losses nearly halved vs. a year ago) Negative volumes and pricing partially offset by industrial

efficiencies, WCM synergies and disciplined SG&A spending

Further cost containment actions undertaken in latter part of the year

• EBIT loss (ex-unusuals) at €544mn Result from investments positive for €160mn, flat vs. 2011


• Total FY shipments down ~14% or 168k units, Italy -112k, France -29k & Germany -14k Passenger cars: down 14% to 810k units

LCVs: down 15% to 202k units, with decline mainly attributable to sharp market contraction in Italy

• Strict management of supply and demand function Company & dealer inventory stable on a quarterly and yearly

comparison (at ~2-months supply)

Utilization rate at plants in EMEA, including JVs, stable at 68% (Harbor1 definition) or 44% (Technical2 definition)

Note Pro-forma calculated by including Chrysler results as if consolidated from Jan 1, 2011 1 Harbour definition: 235 days p.a. / 16 hours per day 2 Technical definition: 280 days p.a. / 3 shifts per day



€mn

(897)

(738)

(544)

(544)

(353)

(484)

(196)

253

196 40

(194)

Net price

Industrial costs

SG&A Investments, FX, Other

Volume & Mix

FY 2011 before

unusuals (pro-forma)

Unusuals, net

FY 2011 (pro-forma)

FY 2012 Unusuals, net

FY 2012 before

unusuals

• Negative volume reflecting decline in overall shipments

• Price pressure continuing

• Improvement in industrial costs driven by WCM program efficiencies and purchasing savings

• Tight grip on SG&A to counter volume decline



3.1 2.8

12.5

Q4 '11 Q4 '12 FY '12

*Including Jeep & Chrysler brands


(%)


8.5 6.9 6.3 6.2

31.8 28.8 28.4 29.3

0.4 0.31.4

Q4 '11 Q4 '12 FY '12

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

EU27+EFTA

EU27+EFTA

Q4 Q3 Q1 Q2 Q4

2010 2011

FY share

33.0%

8.8%

FY share

30.3%

7.7%

FY share

29.4%

6.9%

FY share

29.6%

6.3%

Q3 Q1 Q2 Q4 Q3 Q1 Q2 Q4

2012 2009

EU27+EFTA

• FY industry down 8% (-10% in Q4)

Double-digit slump in Italy, France & Spain

Germany down 3% in FY (-7% in H2)

UK up 5%

• FY Group sales down 16% to 795k cars

Fiat brand -15%, Lancia/Chrysler -9%, Alfa Romeo -31%, Jeep bucking the trend (+19%)

• FY share 60 bps lower vs. 2011 mainly due to unfavorable market mix

Share in EU27+EFTA ex-Italy at 3.4%, down 20 bps over 2011

Italian market weight squeezed by 440 bps since 2007

Italy 15.6%

Italy 11.2%

FY 2007 FY 2012

ITALY

• FY industry down 20% (-18% in Q4)

Lowest level since 1979 and worst year-over-year decline since 1993

• FY share up 20 bps driven by performance in A, SUV & Small MPV segments

Q4: 90 bps share increase mainly attributable to performance in A-segment


Mass-market brands LCVs: market trends & business dynamics


(%)


0.46 0.38

1.6

Q4 '11 Q4 '12 FY '12

* 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

EU27+EFTA

EU27+EFTA

12.3 11.9 10.8 10.8

40.5 42.4 41.9 42.7

0.04 0.03 0.1

Q4 '11 Q4 '12 FY '12

• Industry decline in EU27+EFTA further accentuated in Q4 (-17%) recording a 12% decline for FY

Weakness in overall demand mainly driven Italian market (FY: -33%; Q4: -27%), albeit all major markets posted double-digit declines

• FY Group sales down 18% to 185k units in EU27+EFTA

Fiat Ducato ranked among the best selling commercial vehicles in its category for the 6th consecutive year and registered its highest ever segment share

• Unfavorable market mix in EU27+EFTA penalizing share performance for FY (-80 bps vs. a year ago)

Share gain EU27+EFTA excl. Italy of 20 bps

Share loss in Italy fully attributable to significant fleet renewal activity in 2011

• Q4 share stable in EU27+EFTA at 10.8%

Share in EU27+EFTA excl. Italy at 8.1% up 30 bps

EU27+EFTA

Q4 Q3 Q1 Q2 Q4

2010 2011

FY share

39.9%

12.6%

FY share

44.0%

12.7%

FY share

44.4%

12.5%

FY share

42.7%

11.7%

Q3 Q1 Q2 Q4 Q3 Q1 Q2 Q4

2012 2009


• FY revenue up 8% to €2.4bn

Increase driven by higher volumes, a more favorable product mix and personalization program contribution

Shipments of 7,318 street cars for FY, +5% vs. 2011

8-cyl models +3%; 12-cyl +11%

North America (+15%) remained #1 market

Europe: strong performance in UK (+20%), Germany (+8%) and Switzerland (+17%); 46% decline in Italy

China, Hong Kong & Taiwan up 4%

All-time record shipments for the brand

• FY trading profit up 12% to €350mn

Improvement driven by higher volumes, a more favorable product mix and positive contributions from licensing and financial services

Margin remained strong at 14.4% (+50 bps vs. 2011)

• FY revenue of €634mn (+8%)

Improvement attributable primarily to higher sales volumes and positive currency impacts

FY shipments of 6,288 units, up 2% vs. 2011

USA: 2.9k units, brand‟s best volume shipment performance in 8 years

China: 0.9k units, ranked as the brand‟s second largest market (+10% vs. 2011)

Mid-East: +37%

Europe: 1.1k units, down ~30% vs. a year ago

• FY trading profit of €42mn, in line with last year‟s level

Positive impact of higher volumes and continued improvements in operating costs offset by production start-up costs for new models

Margin at 6.6%

Luxury & Performance brands Ferrari & Maserati

2

USA 46%

European Top-4 11%

China 15%

Japan 5%

Others 23%

USA 26%

European Top-5 33%

China, Hong Kong & Taiwan 11%

Japan 4%

Others 26%

http://www.maseratiquattroporte.it/exteriors.php


1,402 1,482

10 36

• Revenues down 15%

Cast iron business unit down 16% due to lower demand in heavy vehicle segment in LATAM, NAFTA and Europe

Aluminum business unit down 5%

• Trading profit performance reflecting impact of volumes decline

• Revenues +6% mainly attributable to Powertrain Systems activities

• A €26mn increase in trading profit

• Order backlog +5% over year-end 2011

Components & Production Systems

780 26

0

FY „11 FY „12

5,860 5,828

181 140

FY „11 FY „12

• FY revenues substantially in line with prior year

Lighting up 13%, benefiting from strong demand from German and Czech customers and new technological content for products launched in H2 2011

Electronic Systems +21% on the back of increased sales of telematics and body products to third-party customers

After Market business line up 2%, with increases in U.S. and LATAM more than offsetting declines in Europe

• Trading profit decline mainly attributable to lower volumes in EMEA, production start-up costs in NAFTA and cost inflation in Brazil, only partly offset by cost containment and efficiency gains

Trading margin at 2.4% from 3.1%

• Order intake of €1.6bn, in line with Sector‟s development plan

FY „11 FY „12 FY „11 FY „12

FY „11 FY „12 FY „11 FY „12

922

Operational Highlights

• Positive performance in German market (although slowing in Q4), NAFTA and China

• Persisting difficult trading conditions in other European markets

• Mixed performance in Brazil, with H1 particularly weak

3


Business environment overview 4


Business environment overview Ram pickups winning awards, New diesel Grand Cherokee

4

Vehicles (000s)

SALES GROWTH (U.S. & CANADA; ALL VEHICLES)

1,600

+45 (+48%)

Fiat 500 Dodge Dart

Chrysler 300

Ram Pickup

FY‟ 11 FY‟ 12

+37 (+95%)

+46 (+17%)

+29 (new)

+27 (+20%)

+54 (+17%)

+31

Chrysler T&C / Dodge

Caravan

1,896

+21%

+ 6%

SALES

Other

+296 (+18%)

RAM 1500 PICKUP

• Best-in-class fuel

economy; equipped

with leading-edge

technology 8-speed transmission

• Named “Motor Trend Truck of the Year” along with 6 other prestigious awards

DODGE DART

• Sales momentum building (7k unit sales in December)

• Awarded “Most Earth Friendly” car Aero model obtains 41 mpg

highway

INTRODUCED 2014 JEEP GRAND CHEROKEE AT DETROIT AUTO SHOW

• New 3.0L EcoDiesel V-6 Engine with best-in-class 30 mpg

• New 8-speed automatic

transmission

• Introduced upscale Summit

model

• SRT model – revised sports styling, improved towing capacity, and improved fuel economy with 8-speed transmission

Jeep Grand

Cherokee

Chrysler 200

+27 (+108%)


760

845 76

13 9 2

(14)

500

Business environment overview Brazilian market at new record highs

6789

1011121314151617181920

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

2011

Vehicles (000s)

SALES GROWTH BY PRODUCT

FY‟ 11 FY‟ 12

2010

H1 avg.

12.164

All-time sales high

FY 2010 = 3.3mn units

BRAZILIAN MARKET HISTORICAL TREND (AVG. DAILY SALES)

Another record breaking sales


H2 avg.

14,670

H1 avg.

13.212

H2 avg.

14.078

H1 avg.

13.060

H2 avg.

15.889

Third consecutive record sales


A/B Segment

+18%

Siena

+15%

Freemont

+404% Other

-6%

+31%

Chrysler 300

Ram Pickup

Chrysler T&C / Dodge Caravan

SALES + 11% IN FY ‟12

Uno

Punto

Novo Palio

A RECORD YEAR FOR FIAT GROUP

• New all-time record for the Group for production and sales in Brazil, posting the best performance in its 36-year operating history in the country

• Sales of A/B segment models (496k units) and Strada (117k units) the most significant contributors to yearly performance

A/B segment up 18%, Fiat regaining segment leadership (~170 bps vs. nearest competitor)

2012


Business environment overview A snapshot on key new products in Q4

Introducing Chrysler Ypsilon, the newest edition in APAC‟s Chrysler brand lineup

• First small hatchback in Chrysler brand lineup

• Launched in December 2012 alongside all-new Chrysler 300C to kick off Chrysler brand‟s return to Japan

• First Chrysler eco-car equipped with TwinAir technology, mated with MTA transmission

• Compact coupe design with comfort & convenience of 5-door hatchback

Successful launch of all-new Fiat Viaggio in China

• Second best selling vehicle (behind Jeep Compass) in the region for the Group in Q4 „12

Launched in September 2012, Q4 sales volumes accounted for almost one-third of total Group sales in China

• Strong demand for premium versions with average transaction price over ￥130,000

• Best in class fuel economy and roominess, Euro V compliant and awarded 5 stars in China NCAP

• Two new versions and broader distribution throughout China to support volume expansion in 2013

Launched in 91 dealerships covering top 64 cities with plans to expand to 200+ dealerships in nearly 120 cities by end of 2013


Business environment overview Pillar vehicles for Fiat brand: 500 & derivatives and Panda

4

• Launched in September, being available across Europe during Q4

• Q4 commercial performance in EU27+EFTA

Segment share of 9% (25% in Italy)

Ranked #1 and #4, respectively in Italy and EU27+EFTA, in its relevant segment in December

• Model offerings to expand in 2013

TwinAir Turbo & 1.6L MultiJet II in Q1

CNG and Trekking models in Q2

7-seater in Q3

• The most sold city-car in EU27+EFTA

Total shipments of 186k units in 2012

Alternative-fuel powered models (CNG & LPG) accounted for 21% of total sales (33% in Italy)

• Maintained leadership in European A-segment

FY share at 15.7% (28.1% when combined with Fiat 500)

• All-new Panda 4x4 rounded out the line-up, the widest range in its segment

Awarded “SUV of the Year 2012” by TopGear magazine

Panda 4x4 and Trekking represent 17% of Q4 Panda sales in Europe

3.8%

6.5%

9.4%

11.2%

3%

5%

7%

9%

11%

13%

Sep '12 Oct '12 Nov '12 Dec '12


1.4 ~1.4

0.12 ~0.1

FY '12 FY '13E

4 Business environment overview Market outlook (mn units)

Note • APAC reflects aggregate key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea)

EMEA

Passenger cars LCVs

NAFTA

14.8

FY '12 FY '13E

1.7 ~1.7

FY '12 FY '13E

~15.5

APAC

FY '12 FY '13E

• Demand projected up ~5% driven by strong growth in China and India offset by contraction in Japan and Australia as industry normalizes after strong recovery in 2012

• Group targeting to double sales in 2013 driven by Jeep, Fiat, Dodge and Chrysler brands

• Signed framework agreement with GAC to expand cooperation on passenger car manufacturing and sales in China, including plans to localize Jeep production

Current production capacity at 140k p.a.

23.8 ~25.0

12.5 ~12.5

1.6 ~1.5

FY '12 FY '13E

EU27+EFTA

LATAM

Passenger cars LCVs

4.2 4.4 1.6 1.7

FY '12 FY '13E

5.8 6.1

• LATAM to grow mid-single digit

• Brazilian industry is expected to growth ~5%

Long term interest rate stable and exchange rates with little volatility

2013 GDP growth up low/mid-single digit

No change to bilateral trade agreement with Mexico expected

• Argentina‟s market is expected to grow in line with GDP (~2%)

• U.S. industry for 2013 expected to grow by mid-single digit over prior year

Projection of 15.5mn units in line with consensus

Cars up ~8%, trucks up ~2%

• Canada market in 2013 projected to 1.7mn units, consistent with 2012

Passenger cars

• Market to remain substantially flat in 2013 vs. prior year in EU27+EFTA

Italy & Germany stable

Spain slightly up

UK slightly down

LCVs

• Segment to decline further in EU27+EFTA (down ~5%)

Italy stable

1.4 ~1.4

0.12 ~0.1

FY '12 FY '13E


Q4 ‟11 Q4 „12

LATAM +14%

APAC +37%

NAFTA +16%

EMEA -10%

+9% 1,084 995

Business environment overview Group shipments unit volumes (excl. JVs)

248

267

543

26

275

235

466

19

4

FY ‟11* FY „12

LATAM +5%

APAC +39%

NAFTA

+19%

EMEA -14%

+6% 4,209 3,966

1,012

979

2,115

103

1,180

929

1,783

74

(Mass-market brands; units in thousands)

Note * Including Chrysler as if consolidated from Jan 1, 2011 Numbers may not add due to rounding

4.3-4.5

~1.0

~1.0

~2.2

~0.2

FY 2013E

EMEA

LATAM

NAFTA

APAC

(Mass-market brands; units in millions)


• The Group outlined at the end of Q3 2012 its strategic direction in response to

the continued crisis in the European car industry which was brought to a head by

the wider economic crisis

• At the same time, the Group also updated its financial plan for 2013-2014

• Conditions in the NAFTA, LATAM and APAC regions‟ markets continue to support

the financial projections made for 2013 and while the European market

continues to present significant levels of uncertainty, the Group confirms its

guidance for 2013 in line with the updated plan as follows

Revenues in €88-92bn range

Trading profit in €4.0-€4.5bn range

Net profit in €1.2-€1.5bn range

Net industrial debt of ~€7.0bn

2013 Outlook 5


Highest

Average of assessed

companies

ECONOMIC

ENVIRONMENTAL

SOCIAL

Highest

Fiat SpA

Average

Highest

Fiat SpA

Average

Highest

Fiat SpA

Average

Confirmed for 4th consecutive year in Dow Jones Sustainability World and Dow

Jones Sustainability Europe Indexes Member of ASPI (Advanced Sustainability

Performance) Eurozone Index, the 120 best

companies in Eurozone selected by Vigeo

following an assessment based on their social,

environmental and governance practices and

performance

Growing and acting responsibly Leader in sustainability

Fiat S.p.A. is also a member of numerous other

leading indexes including: STOXX Global ESG

Leaders, STOXX Global ESG Environmental

Leaders, STOXX Global ESG Social Leaders,

STOXX Global ESG Governance Leaders, ECPI

Ethical Euro, ECPI Ethical EMU, FTSE ECPI Italia

SRI Benchmark, FTSE ECPI Italia SRI Leaders,

Ethibel Excellence Europe and Ethibel

Excellence Euro.

90

93

71


2013 Financial calendar

February

CONSOLIDATED AND PARENT COMPANY FINANCIAL STATEMENTS FOR 2012

April

Q1 RESULTS

Q2 & H1 RESULTS

July

Q3 RESULTS

October

APPENDIX


• 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

New segment information


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

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

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

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

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

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

future spending, resource allocations and other operational decisions.

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

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

R&D costs, other operating income and expenses)

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

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

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

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

with EBIT and then adding back depreciation and amortization expense

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

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

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

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

of Net Industrial Debt

Supplemental financial measures


Group financial results by quarter

(€mn)

Note: 2011 pro-forma constructed by including Chrysler results for the quarter as if consolidated from Jan 1, 2011

Q1 Q2 Q3 Q4 FY

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Revenues 20,221 18,581 21,524 19,172 20,437 17,552 21,775 19,644 83,957 74,949

Mass-market brands

NAFTA 10,375 8,509 10,979 8,357 10,759 7,772 11,408 9,162 43,521 33,800

LATAM 2,587 2,556 2,624 2,910 2,955 2,853 2,896 2,749 11,062 11,068

APAC 714 499 763 408 830 599 821 580 3,128 2,086

EMEA 4,508 5,186 4,920 5,467 3,820 4,383 4,552 5,042 17,800 20,078

Luxury & Performance b. 660 592 778 716 667 640 793 751 2,898 2,699

Components 2,015 1,975 2,022 2,126 1,951 1,959 2,042 2,062 8,030 8,122

Others & Elim. (638) (736) (562) (812) (545) (654) (737) (702) (2,482) (2,904)

Trading Profit 866 724 1,010 892 951 851 987 765 3,814 3,232

Mass-market brands

NAFTA 670 383 717 412 660 395 646 503 2,693 1,693

LATAM 235 306 238 377 341 397 249 330 1,063 1,410

APAC 77 41 64 24 73 37 46 42 260 144

EMEA (207) (106) (138) (65) (238) (116) (121) (225) (704) (512)

Luxury & Performance b. 71 62 104 90 89 87 128 113 392 352

Components 36 38 47 65 39 59 54 55 176 217

Others & Elim. (16) 0 (22) (11) (13) (8) (15) (53) (66) (72)

EBIT 895 756 995 1,964 880 825 907 760 3,677 4,305

Mass-market brands

NAFTA 681 377 744 414 664 403 652 576 2,741 1,770

LATAM 235 306 238 352 310 397 249 330 1,032 1,385

APAC 85 35 60 19 74 20 36 45 255 119

EMEA (170) (66) (184) (406) (219) (136) (165) (289) (738) (897)

Luxury & Performance b. 71 62 104 90 89 87 128 119 392 358

Components 36 36 47 (246) 38 58 46 42 167 (110)

Others & Elim. (43) 6 (14) 1,741 (76) (4) (39) (63) (172) 1,680


Chrysler Net income reconciliation (from IFRS to US GAAP)

1) Including unusual items and restructuring 2) Under IFRS, development costs for vehicle programs are capitalized as intangible assets if the development

costs can be measured reliably and the economic feasibility of the product supports 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

Twelve Months ended Dec 31, 2012

EURO (mn)

USD (mn)

Chrysler Net Income – IFRS 1) 2,452 3,150

Reconciling Items:

Capitalization of development costs, net of amortization 2)

(969) (1,245)

Other (185) (237)

(1,154) (1,482)

Chrysler Net Income - US GAAP 1,298 1,668


Dec 31, 2012

EURO (mn)

USD (mn)

Chrysler Net Debt - IFRS 1,497 1,975

Unamortized purchase accounting adjustments 1)

(510) (672)

Classification and other differences:

Accrued interest (259) (342)

Other 21 28

(238) (314)

Net Industrial Debt - US GAAP 749 989

1) 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

Chrysler Net debt reconciliation (from IFRS to US GAAP)


Group pension & OPEB Preliminary estimates of impact for IAS 19 rule change

IAS 19 IAS 19 revised

Interest cost: based on discount rate and benefit obligation

Net interest cost: based on discount rate applied to net liability (gross liability less plan assets) Expected return on plan

assets: based on market value of plan assets and assumed long-term rate of return

• Pensions & OPEB net liability on the balance sheet does not include unrecognized actuarial gains/losses

• Actuarial gains/losses are amortized into P&L

• Net Pensions & OPEB liability fully recognized on the balance sheet

• Actuarial gains/losses will no longer impact the P&L

€bn 2012

IAS 19

2012

IAS 19 revised

IMPACT ON P&L

Current service costs (0.27) (0.27)

Expected return on plan assets 1.41 -

Interest costs on Pension Plans (1.17) -

Other costs (0.02) -

Impact on Trading Profit (0.05) (0.27)

Interest costs (0.14) (0.39)

Impact on Net Income (0.19) (0.66)1

IMPACT ON NET EQUITY (4.8)2

of which: • Group • Minority

(2.9) (1.9)

PENSION & OPEB PERIOD COST IN 2013 EXPECTED IN LINE WITH 2012 IAS REVISED

Notes 1 Net interest cost of €0.25bn under IAS 19 revised compares with €0.23bn

surplus of expected return on plan assets over interest on gross liability 2 Unrecognized actuarial gains/losses accumulated at December 31, 2012 not

reflected in net Pension & OPEB liability but recognized on January 1, 2013 under IAS 19 revised through an equivalent reduction in Net Equity


Note: Numbers may not add due to rounding

Detailed cash flow

Fiat Group

(€mn)

Fiat Group Fiat ex Chrysler

Q4 2012 Q4 2011 FY 2012 FY 2011 FY 2012 FY 2011

(6,694) (5,772) Net Industrial (Debt)/Cash beginning of period (5,529) (542) (2,449) (542)

- - Consolidation of Chrysler Net Debt (1) - (3,860) - -

- - 16% incremental equity subscription - - - (881)

- - Purchase of UST and Canada additional stake in CG (2) - (490) - (490)

(6,694) (5,772) Adj. Net Industrial (Debt)/Cash beginning of period

(5,529) (4,892) (2,449) (1,913)

388 265 Net Income 1,411 1,651 (1,041) 1,006

1,028 1,049 D&A 4,132 3,356 2,115 2,233

243 (241) Change in Funds & Others 102 (1,240) (43) (1,019)

1,659 1,073 Cash Flow from Op. Activities bef. Chg. in W.C. 5,645 3,767 1,031 2,220

590 1,719 Change in Working Capital 694 1,417 (581) 1,213

2,249 2,792 Cash Flow from Operating Activities 6,339 5,184 450 3,433

(2,254) (2,457) Tangible & Intangible Capex (7,530) (5,525) (3,219) (3,589)

(5) 335 Cash Flow from Operating Activities net of Capex (1,191) (341) (2,769) (156)

122 3 Change in Investments, Scope & Others 292 68 247 (237)

117 338 Net Industrial Cash Flow (899) (273) (2,522) (393)

2 28 Capital Increase / Share Repurchases / Dividends (36) (140) (36) (138)

30 (123) FX Translation Effect (81) (224) (41) (5)

149 243 Change in Net Industrial Debt (1,016) (637) (2,599) (536)

(6,545) (5,529) Net Industrial (Debt)/Cash end of period (6,545) (5,529) (5,048) (2,449)

(1) Before 16% equity subscription by Fiat (2) Including Equity Recapture Agreement



Fiat ex Chrysler Net debt breakdown (€bn)

Sept. 30, „12

Dec. 31, „12

Cons. Ind. Fin. Cons. Ind. Fin.

16.3 13.1 3.1 Gross Debt* 17.5 14.1 3.4

(0.2) (0.2) - Derivatives M-to-M, Net (0.3) (0.3) -

(7.8) (7.5) (0.3) Cash & Mktable Securities (9.1) (8.8) (0.3)

8.2 5.5 2.8 Net Debt 8.1 5.0

3.1

*Net of intersegment receivables



Fiat ex Chrysler Gross debt (€bn)

Outstanding Sept. 30, ‟12

Outstanding Dec. 31, ‟12

15.7 Cash Maturities 16.6

5.0 Bank Debt 5.5

9.4 Capital Market 9.9

1.3 Other Debt 1.2

0.3 Asset-backed financing 0.4

0.0 ABS / Securitization 0.0

0.0 Warehouse Facilities 0.0

0.3 Sale of Receivables 0.4

0.3 Accruals & Other Adjustments 0.4

16.3 Gross Debt 17.5

(7.8) Cash & Mktable Securities (9.1)

(0.2) Derivatives (Assets)/Liabilities (0.3)

8.2 Net Debt 8.1

2.0 Undrawn committed credit lines 2.0


Chrysler Gross debt (€bn)

Outstanding Sept. 30, „12

Outstanding Dec. 31, ‟12

10.4 Cash Maturities 10.1

2.8 Bank Debt 2.7

2.5 Capital Market 2.4

5.1 Other Debt 5.0

0.0 Asset-backed financing 0.0

0.0 ABS / Securitization 0.0

0.2 Accruals & Other Adjustments 0.2

10.5 Gross Debt 10.3

(9.2) Cash & Mktable Securities (8.8)

(0.0) Derivatives (Assets)/Liabilities (0.0)

1.2 Net Debt 1.5

1.0 Undrawn committed credit lines 1.0



Debt maturity schedule (€bn)

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

Outstanding Dec. 31, „12

Fiat ex Chrysler 2013 2014 2015 2016 2017 Beyond

5.5 Bank Debt 2.5 1.2 1.0 0.3 0.2 0.3

9.9 Capital Market 1.1 2.2 1.9 2.3 1.9 0.6

1.2 Other Debt 0.8 0.1 0.0 0.0 0.0 0.2

16.6 Total Cash Maturities 4.4 3.4 2.9 2.7 2.1 1.1

9.1 Cash & Mktable Securities

2.0 Undrawn committed credit lines

11.1 Total Available Liquidity

3.6 Sale of Receivables (IFRS de-recognition compliant)

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

Outstanding Dec. 31, „12

Chrysler 2013 2014 2015 2016 2017 Beyond

2.7 Bank Debt 0.0 0.0 0.0 0.0 2.2 0.3

2.4 Capital Market 0.0 0.0 0.0 0.0 0.0 2.4

5.0 Other Debt 0.3 0.3 0.3 0.4 0.4 3.3

10.1 Total Cash Maturities 0.4 0.4 0.4 0.4 2.6 6.0

8.8 Cash & Mktable Securities

1.0 Undrawn committed credit lines

9.8 Total Available Liquidity


GROUP INVESTOR RELATIONS TEAM

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

Alexandra Deschner +39-011-006-2308

Timothy Krause +1-248-512-2923

Paolo Mosole +39-011-006-1064

Sara Nicola +39-011-006-2572

Maristella Borotto +39-011-006-2709

fax: +39-011-006-3796

email: [email protected]

websites: www.fiatspa.com

www.chryslergroupllc.com

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A record trading profit for the Group · FY ‟12 financial highlights A record trading profit for...

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