PowerPoint Presentation · (1.5)% (2.0)% 5.4% q1 2019 q1 2020 € million % = adjusted ebit margin...

F C A F I R S T Q U AR T E R 2 0 2 0 R E S U L T S | M AY 5 , 2 0 2 0

Q1

May 5, 2020 Q1 2020 RESULTS | 2

S A F E H A R B O R S T A T E M E N TThis document, and in particular the section entitled “FY 2020 Guidance Withdrawn”, contains

forward-looking statements. In particular, these forward-looking statements include statements

regarding future financial performance and the Company’s expectations as to the

achievement of certain targeted metrics, including revenues, industrial free cash flows, vehicle

shipments, capital investments, research and development costs and other expenses at any

future date or for any future period are forward-looking statements. These statements may

include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”,

“anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”,

“forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking

statements are not guarantees of future performance. Rather, they are based on the Group’s

current state of knowledge, future expectations and projections about future events and are

by their nature, subject to inherent risks and uncertainties. They relate to events and depend on

circumstances that may or may not occur or exist in the future and, as such, undue reliance

should not be placed on them.

Actual results may differ materially from those expressed in forward-looking statements as a

result of a variety of factors, including: the extent and duration of the COVID-19 pandemic’s

impact on supply chains, the Group’s production and distribution channels, demand in the

Group’s end markets, and the broader impact on financial markets and the global economy;

the Group’s ability to launch products successfully and to maintain vehicle shipment volumes;

changes in the global financial markets, general economic environment and changes in

demand for automotive products, which is subject to cyclicality; changes in local economic

and political conditions, changes in trade policy and the imposition of global and regional

tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other

changes in tax laws and regulations; the Group’s ability to expand certain of the Group’s

brands globally; the Group’s ability to offer innovative, attractive products; the Group’s ability

to develop, manufacture and sell vehicles with advanced features including enhanced

electrification, connectivity and automated-driving characteristics; various types of claims,

lawsuits, governmental investigations and other contingencies affecting the Group, including

product liability and warranty claims and environmental claims, investigations and lawsuits;

material operating expenditures in relation to compliance with environmental, health and

safety regulations; the intense level of competition in the automotive industry, which may

increase due to consolidation; the Group’s ability to complete and realize expected synergies

following completion of the Group’s proposed merger with Peugeot S.A., including the

expected cumulative implementation costs; exposure to shortfalls in the funding of the Group’s

defined benefit pension plans; the Group’s ability to provide or arrange for access to adequate

financing for the Group’s dealers and retail customers and associated risks related to the

establishment and operations of financial services companies, including capital required to be

deployed to financial services; the Group’s ability to access funding to execute the Group’s

business plan and improve the Group’s business, financial condition and results of operations; a

significant malfunction, disruption or security breach compromising the Group’s information

technology systems or the electronic control systems contained in the Group’s vehicles; the

Group’s ability to realize anticipated benefits from joint venture arrangements in certain

emerging markets; the Group’s ability to successfully implement and execute strategic

initiatives and transactions, including the Group’s plans to separate certain businesses;

disruptions arising from political, social and economic instability; risks associated with the

Group’s relationships with employees, dealers and suppliers; increases in costs, disruptions of

supply or shortages of raw materials; developments in labor and industrial relations, including

any work stoppages, and developments in applicable labor laws; exchange rate fluctuations,

interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or

other disasters and other risks and uncertainties.

Any forward-looking statements contained in this document speak only as of the date of this

document and the Company disclaims any obligation to update or revise publicly forward-

looking statements. Further information concerning the Group and its businesses, including

factors that could materially affect the Company’s financial results, is included in the

Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and

CONSOB.

May 5, 2020 Q1 2020 RESULTS | 3

B U S I N E S S H I G H L I G H T SS TR ONG S TAR T TO Q UAR TER I N TERRUPTED B Y PAN DEMI C

AGM POSTPONED TO LATE JUN ’20,

including postponement of

resolution on proposed 2019

€1.1B ordinary dividend

AVAILABLE LIQUIDITY at Mar ‘20 of

€18.6B, with Q1 ‘20 Industrial free

cash flows of €(5.1)B; this excludes

new €3.5B incremental bridge

credit facility added in Apr ‘20

RAM PICKUP TRUCK SALES UP 7%

in U.S. vs. Q1 ’19; U.S. large

pickup market share up 100 bps

y-o-y to 24.1%

PRODUCTION RESUMED IN ITALY

AND CHINA, plans in place to

phase-in production at all plants

as jurisdictions permit

MARKET SHARE HIGHER or flat in

all regions y-o-y through Feb,

except APAC; Q1 share in North

America up 40 bps y-o-y to 12.0%,

LATAM up 70 bps to 14.2%

ADJUSTED EBIT OF €0.1B, down 95%

y-o-y due to impact of COVID-19;

North America Adjusted EBIT of

€0.5B and margin at 3.8%

Q1 2020 RESULTS |May 5, 2020 4

C O VI D - 1 9 S A F E T Y A N D O U T R E A C HSAFETY AND WELL-BEING OF OUR EMPLOYEES AND COMMUNITIES IS OUR FIRST PRIORITY

• Plants temporarily closed globally in compliance with local restrictions

• Remote working established globally, where feasible

• Comprehensive health and safety protocols established for all facilities

• Repurposed a portion of capacity to produce protective masks, face

shields and ventilator components

• Mobilizing company resources to assist producers of ventilators, other

medical equipment and personal protective equipment (PPE)

• Donations and other community support efforts in each region,

including providing more than 1.5 million meals to school age childrenCURRENT STATUS

ACTIONS TAKEN

• Coordinating with dealers and suppliers to ensure proper

health and occupational requirements are implemented

• Plants reopening on a staggered basis by region, with

production gradually ramping up

• Implement progressive return to work actions in conjunction

with remote working

• Standard procedures implemented to ensure proper social

distancing and sanitizing

• PPE in use at plants and other areas as appropriate

Q1 2020 RESULTS |May 5, 2020 5

K E Y C O M M E R C I A L M E T R I C S

505

22

239

121

568

42

344

131

COMBINED SALES

MARKET SHARE (1) 12.0% 11.6%

Q1 INDUSTRY (1)

(2020 vs. 2019) - 14%

0.4% 0.5%

- 31%

5.9% 6.6%

- 26%

14.2% 13.5%

- 13%

S I GNI F I CAN T S H AR E GAI N S I N N O RTH AMER I C A AN D L AT I N AMER I CA DES P I TE I NDUSTRY DEC L I NE

NORTH AMERICA LATIN AMERICAASIA PACIFICEUROPE, MIDDLE EAST & AFRICA

(1) Industry and market share data reflect the following:

• Asia Pacific reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India); market share is based on retail registrations, except in India where market share is based on wholesale volumes, as well as management’s estimates of industry sales data, which use certain data provided by third party sources.

• Europe, Middle East & Africa reflects aggregate for EU 28 + EFTA markets only and is derived from a combination of passenger car information from European Automobile Manufacturers Association (ACEA) Registration Databases and internal information on LCVs

000 units

Q1 2019

Q1 2020

Q1 2020 RESULTS |May 5, 2020 6

(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated shipments only include shipments by the Group’s consolidated subsidiaries

(2) Excludes €3.5B new incremental bridge credit facility syndicated in Apr ’20

* Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics

RESULTS FROM CONTINUING OPERATIONS Q1 2020 Q1 2019

COMBINED SHIPMENTS (1)(000 units) 818 1,037 - 21%

CONSOLIDATED SHIPMENTS (1)(000 units) 796 1,000 - 20%

NET REVENUES (€ billion) 20.6 24.5 - 16%

ADJUSTED EBIT* 52 1,067 - 95%

ADJUSTED EBIT MARGIN* 0.3% 4.4% - 410 bps

ADJUSTED NET PROFIT/(LOSS)* (471) 570 - 183%

ADJUSTED DILUTED EARNINGS/(LOSS) PER SHARE (EPS)*(€) (0.30) 0.36 - 183%

INDUSTRIAL FREE CASH FLOWS* (5,074) (270) n.m.

AVAILABLE LIQUIDITY (€ billion)18.6 (2)

(at Mar 31 2020)

23.1 (at Dec 31 2019)

- 19%

Combined shipments down

21% due to temporary

production stoppage and

demand disruption in all

regions related to COVID-19

Adjusted EBIT down 95%

due to abrupt loss of

global volumes

North America

Adjusted EBIT of €0.5B,

with margin at 3.8%

Industrial free cash

flows of €(5.1)B, with

capex at €2.3B, up €1.0B

F I N A N C I A L H I G H L I G H T SR ES UL TS S I GNI F I C AN TLY I MPAC TED B Y C O VI D -1 9

€ million, except as otherwise stated

May 5, 2020 Q1 2020 RESULTS | 7

Q 1 2 0 2 0 A D J U S T E D E B I T * WA L K


Q1 2019 Volume & Mix Net Price Industrial Costs SG&A Other Q1 2020

S I GNI F I CAN T R EDUC TI ON I N VO L UME DUE TO MAN DATED TEMPORAR Y PR O DUC TI ON S TO PPAGE

1,067

52

€ million

% = Adjusted EBIT margin

4.4%

0.3%

Q1 2020 RESULTS |May 5, 2020 8

Adjusted

Industrial

EBITDA

CapexWorking

Capital

Changes in

Provisions

& Other

Financial

Charges

& Taxes (1)

Industrial

Free Cash

Flows

(1) Net of IAS 19


Q 1 2 0 2 0 I N D U S T R I A L F R E E C A S H F L O WS *

S I GNI F I CAN T N EGAT I VE WO R KI N G C AP I TAL DUE TO R EDUC ED S H I PMEN TS , WI TH C APEX AT EX PEC TED L EVEL S

∆ VS. Q1 2019 (1,060) (951) (2,843) 87 (37) (4,804)

€ million

(5,074)

Q1 2020 RESULTS |May 5, 2020 9

548

(59)

(270)

(27)

(75)

1,044

(9) (19)

105

11

AL L R EGI ONS DO WN DUE TO C O VI D -1 9 , N O RTH AMER I C A R EMAI NED PR O F I TAB L E

3.8%

6.5%

(7.2)%

(0.4)%

(29.5)% 2.3%(12.7)%

(1.5)% (2.0)% 5.4%

Q1 2019

Q1 2020

€ million


Q 1 2 0 2 0 A D J U S T E D E B I T

NORTH AMERICA ASIA PACIFIC EUROPE, MIDDLE EAST & AFRICA

LATIN AMERICA MASERATI

Q1 2020 RESULTS |May 5, 2020 10

N O R T H A M E R I C APO S I T I VE MO MEN TUM B U I L T O VER PR I OR Q UAR TER S I N TERUPPTED B Y I MPAC T O F PAN DEMI C

ADJUSTED EBIT WALK € million

% = Adjusted EBIT margin• Shipments down 16%, primarily due to temporary

suspension of production, starting progressively from

March 18

• Net revenues down 9%, primarily from lower shipments

partially offset by positive vehicle mix and favorable

foreign exchange translation effects

• Adjusted EBIT down 48%, primarily due to lower Net

revenues, as well as higher warranty and logistics

costs, partially offset by purchasing savings

1,044

1,5652,019 2,062

5486.5%

8.9%10.6% 10.0%

3.8%

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

ADJUSTED EBIT & MARGIN(€ million)

556 596 600 649469

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

SHIPMENTS(000 units)

16.1 17.6 19.1 20.6

14.5

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

NET REVENUES(€ billion)

1,044

548

Q1 ‘19 Volume & Mix

Net Price

Industrial Costs

SG&A Other Q1 ‘20

6.5%

3.8%

Q1 2020 RESULTS |May 5, 2020 11

A S I A P A C I F I CR EL AT I VE I MPAC T F R O M PAN DEMI C MO R E S EVER E AS R EGI ON WAS F I RS T TO B E AF F EC TED

• Combined shipments down 49%, primarily due to

temporary suspension of local production beginning

January 23 in China and disruption to market

demand throughout the region

• Consolidated shipments down 24%, primarily due to

reduced Jeep Compass volumes

• Net revenues down 21%, primarily due to lower

shipments and component sales to China JV

• Adjusted EBIT down, primarily due to lower Net

revenues, higher manufacturing costs and lower

results from China JV, partially offset by lower

marketing costs

JV

Consolidated

17 22 17 20 13

22 13 18 207

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

COMBINED SHIPMENTS(000 units)

39 350.6

0.8 0.70.8

0.5

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


(9) (12) (10) (5)

(59)

(1.5)% (1.6)% (1.5)% (0.6)%

(12.7)%

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


3540

20

(9)

(59)



(12.7)%

Volume & Mix

Industrial Costs

SG&A Other Q1 ‘20Net Price

(1.5)%

Q1 ‘19

Q1 2020 RESULTS |May 5, 2020 12

E U R O P E , M I D D L E E A S T & A F R I C A

• Combined and consolidated shipments down 31%

and 32%, respectively, primarily due to temporary

suspension of production beginning March 11 and

temporary closure of the majority of dealerships


volumes

• Adjusted EBIT down, primarily due to lower

volumes, unfavorable mix and increased

compliance costs, partially offset by lower fixed

costs from cost containment and restructuring

actions implemented in prior periods, lower

depreciation and amortization, as well as reduced

advertising costs



Volume & Mix

Industrial Costs

SG&A OtherNet Price

Q1 ‘19

R ES UL TS R EF L ECT S I GNI F I C AN T I MPAC T F R OM C O VI D-1 9

5.15.6

4.75.3

3.7

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


302 357260 280 205

1516

1032

15

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

COMBINED SHIPMENTS(000 units)

(19)

22

(55)

46

(270)

(0.4)%

0.4%

(1.2)%

0.9%(7.2)%

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


317373

270

JV

Consolidated

312220

(19)

(270)

(0.4)%

Q1 ‘20

(7.2)%

Q1 2020 RESULTS |May 5, 2020 13

L A T I N A M E R I C AL O WER R ES ULTS DR I VEN B Y N O N -REPEAT O F O N E -OF F I N DI RECT TAX C R EDI TS AN D I MPAC T O F C O VI D -19


% = Adjusted EBIT margin • Shipments decreased 12%, primarily due to

temporary suspension of production on March 23


shipments, non-repeat of prior year one-off

recognition of Brazilian indirect tax credits and

negative foreign exchange impacts primarily from

weakening of Brazilian real

• Adjusted EBIT down, primarily due to lower Net

revenues and purchasing cost inflation

105 110152 134

(27)

5.4% 5.4%6.9%

5.9%(2.0)%

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


120148 150 159

106

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

SHIPMENTS(000 units)

1.9 2.1 2.2 2.3

1.3

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20


105

(27)

5.4%

(2.0)%

Q1 ‘19 Volume & Mix

Industrial Costs

SG&A Other Q1 ‘20Net Price

May 5, 2020 Q1 2020 RESULTS | 14

S H AR P MAR KET DEC L I NE I N C H I NA AN D EUR OPE R ES UL TED I N S I GNI F I C AN TL Y L O WER VO L UMES

Shipments down 44%, primarily due to market disruption, particularly in

China and Europe, as well as temporary suspension of

production beginning March 12

Net revenues down 46%, in line with decreased shipments and

unfavorable market and model mix

Adjusted EBIT down due to lower Net revenues

€ million,

except as otherwise stated Q1 2020 Q1 2019

SALES (000 units) 3.4 6.3 - 46%

SHIPMENTS (000 units) 3.1 5.5 - 44%

NET REVENUES 254 471 - 46%

ADJUSTED EBIT (75) 11 n.m.

ADJUSTED EBIT MARGIN (29.5)% 2.3% n.m.

Q1 2020 RESULTS |May 5, 2020 15

F Y 2 0 2 0 I N D U S T R Y O U T L O O K A N D G U I D A N C EL O WER I NDUS TRY EX PEC TED AS A R ES UL T O F PAN DEMI C, GU I DAN CE WI THDRAWN

(1) APAC industry reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India).

Source: IHS Global Insight, Wards, China Passenger Car Association and Group estimates

FY 2020 GUIDANCE WITHDRAWN

NORTHAMERICA

REGION 3.0 - 29% y-o-y

BRAZIL 1.9 - 30% y-o-y

PASSENGER CARS AND LCVs

LATINAMERICA

REGION 27.1 - 13% y-o-y

CHINA 18.6 - 13% y-o-y

PASSENGER CARS ONLY

(1)ASIA

PACIFIC(1)

REGION 17.7 - 23% y-o-y

EU 28+EFTA 13.4 - 26% y-o-y

PASSENGER CARS AND LCVs

EUROPEMIDDLE EAST

AFRICA

million units

FY 2020 INDUSTRY OUTLOOK

TOTAL VEHICLE SALES INCLUDING

MEDIUM/HEAVY TRUCKS

As previously disclosed on Mar 18 2020, due to continued uncertainty of market conditions and regional operating restrictions related to the evolving COVID-19 pandemic, the Group has withdrawn its FY 2020 Guidance and will provide an update when it is possible to have better visibility of the overall impact of the crisis

Outlook for region reduced from

20.3, U.S. reduced from 17.0


4.3, Brazil reduced from 2.8


31.2, China reduced from 21.3

REGION 15.0 - 28% y-o-y

U.S. 12.5 - 29% y-o-y


22.7, EU 28+EFTA reduced from 17.5

Q1 2020 RESULTS |May 5, 2020 16

C O VI D - 1 9 B U S I N E S S C O N T I N U I T YC O MPREHEN SI VE AN D C O O RDI N ATED I N I T I AT I VES I N PL AC E TO R ES UME O PER AT I ONS

• Safety and well-being of our employees and communities remain our first priority

• Reconfigured plant workstations and other workplace areas to meet enhanced health and occupational requirements

• Working with suppliers and dealers to ensure proper health and occupational requirements are implemented, as well as readiness aligned with FCA plant start-up plans

• Vehicle development activities continue for key near-term launches to minimize launch delays

• Full deployment of online vehicle selling and home vehicle delivery in all regions

• Implemented new customer-oriented commercial initiatives to facilitate entire vehicle purchase process

• CEO participating in U.S. task force focused on U.S. economic recovery plan

• Merger activities with Groupe PSA continue to progress

Q1 2020 RESULTS |May 5, 2020 17

C O VI D - 1 9 B U S I N E S S C O N T I N U I T YACTIONS TAKEN TO MINIMIZE LOSSES AND PRESERVE CASH, FY 2020 OPERATING COSTS REDUCED BY >€2B

• Overall personnel costs reduced by ~50% during plant shutdown

• FY 2020 capex estimated spend reduced by ~€1B, key program launches generally delayed by 3 months, no programs cancelled to-date

• Operating costs eliminated in FY 2020 estimated at >€2B:

o Marketing spending lowered, supporting retail dealer channels where open, utilizing digital media elsewhere

o Research and development costs reduced, including suspension of majority of supplemental workforce

o Non-essential services postponed or eliminated

o Chairman and non-executive Board members to forego remaining 2020 compensation

Q1 2020 RESULTS |May 5, 2020 18

C O VI D - 1 9 B U S I N E S S C O N T I N U I T Y

PLANNEDPRODUCTION RESTART

• All plants, except Belvidere – week of May 18

• Belvidere by Jun 1

• JV plants (China):o Guangzhou – Feb 19o Changsha – Feb 24

• Ranjangaon (India) –May 18

• Melfi (PHEV), Mirafiori (500 BEV), Sevel – Apr 27

• Majority of remaining plants – beginning late May, all plants restarted by early Jul

• All plants – May 11

• Mirafiori and AGAP – week of May 25

• Modena - early Jul

PLANS IN PLACE TO RESUME FULL -SCALE INDUSTRIAL ACTIVITIES

NORTHAMERICA

LATINAMERICA

ASIA PACIFIC

EUROPEMIDDLE EAST

AFRICA

PRODUCTION RESTART FACTORS

• Production level ramp-up will vary by plant

• Jobs per hour to be reduced due to additional

procedures to ensure workforce safety

• Initial production prioritized to:

o Electrified products

o Higher margin products

o Vehicles with low inventory

• Production levels to be aligned to consumer demand

SUPPLIER READINESS

• Global supplier webinar conducted Apr 15

• Each of ~4,500 supplier manufacturing locations

surveyed for:

o Start-up technical readiness

o Compliance with COVID-19 operational checklist

• Readiness confirmed for all plants

Q1 2020 RESULTS |May 5, 2020 19

C O VI D - 1 9 S U M M A R YPAN DEMI C TO I MPAC T Q 2 ; S WI F T AC T I ONS TAKEN TO MI T I GATE EF F EC T , WH I LE

PR O TECTI N G EMPL O YEES AN D GR O UP; F Y 2 0 2 0 C O S T S AVI N GS I N EX C ES S O F € 2 B

• Ensuring ongoing safety and well-being of our employees and communities remains top priority

• Swift actions taken to safeguard profitability and preserve liquidity, cost savings in 2020 expected

to be >€2B

• Based on internal stress test analysis, including the benefits from the actions taken to reduce costs

and cash burn, sufficient liquidity beyond 2020, even with a 50% reduction in 2020 industry

volumes in each region compared to prior year

• Production resumed in Italy and China, plans in place to phase-in production at all plants as

jurisdictions permit, Latin America production phase-in to begin May 11, North America

beginning week of May 18

• Given prolonged impact of pandemic on industrial and commercial activities, impact on Q2 ‘20

results will be more significant than Q1 ’20

• FY 2020 Guidance withdrawn

• Continue to progress on proposed merger with Groupe PSA, with transaction expected to close

at end of 2020 or early 2021

May 5, 2020 Q1 2020 RESULTS | 20

APPENDIX

Q1 2020 RESULTS |May 5, 2020 21

S U P P L E M E N T A L F I N A N C I A L M E A S U R E S

FCA monitors its operations through the use of various supplemental financial measures. These and similar measures are widely used in the industry in which the

Group operates, however, these financial measures may not be comparable to other similarly titled measures of other companies and are not intended to be

substitutes for measures of financial performance as prepared in accordance with IFRS as issued by the IASB, as well as IFRS adopted by the European Union.

Group management believes these supplemental financial measures provide comparable measures of its financial performance which then facilitate

management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions.

FCA’s supplemental financial measures are defined as follows:

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is

computed starting with Net profit/(loss) and adding back Net financial

expenses, Tax expense/(benefit) and depreciation and amortization expense

Adjusted earnings before interest and taxes (“Adjusted EBIT”) excludes

certain adjustments from Net profit/(loss) from continuing operations

including: gains/(losses) on the disposal of investments, restructuring,

impairments, asset write-offs and unusual income/(expenses) that are

considered rare or discrete events that are infrequent in nature, and also

excludes Net financial expenses and Tax expense/(benefit)

Adjusted net profit/(loss) is calculated as Net profit/(loss) from continuing

operations excluding post-tax impacts of the same items excluded from

Adjusted EBIT, as well as financial income/(expenses) and tax

income/(expenses) considered rare or discrete events that are infrequent in

nature

Adjusted diluted EPS is calculated by adjusting Diluted earnings/(loss) per

share from continuing operations for the impact per share of the same items

excluded from Adjusted net profit/(loss)

Industrial free cash flows is calculated as Cash flows from operating activities

less: cash flows from operating activities from discontinued operations; cash

flows from operating activities related to financial services, net of

eliminations; investments in property, plant and equipment and intangible

assets for industrial activities; adjusted for net intercompany payments

between continuing operations and discontinued operations; and adjusted

for discretionary pension contributions in excess of those required by the

pension plans, net of tax. The timing of Industrial free cash flows may be

affected by the timing of monetization of receivables and the payment of

accounts payable, as well as changes in other components of working

capital, which can vary from period to period due to, among other things,

cash management initiatives and other factors, some of which may be

outside of the Group’s control.

Q1 2020 RESULTS |May 5, 2020 22

RESULTS FROM CONTINUING OPERATIONS

THREE MONTHS ENDED MAR 31

2020 2019

COMBINED SHIPMENTS (1) (000 units) 818 1,037

CONSOLIDATED SHIPMENTS (1) (000 units) 796 1,000

NET REVENUES 20,567 24,481

ADJUSTED EBIT* 52 1,067

OF WHICH RESULT FROM INVESTMENTS 42 58

ADJUSTED EBIT MARGIN 0.3% 4.4%

NET FINANCIAL EXPENSES 213 244

PROFIT/(LOSS) BEFORE TAXES (869) 720

TAX EXPENSE 825 212

NET PROFIT/(LOSS) (1,694) 508

ADJUSTED NET PROFIT/(LOSS)* (471) 570

DILUTED EARNINGS/(LOSS) PER SHARE (“DILUTED EPS”) (€) (1.08) 0.32

ADJUSTED DILUTED EPS* (€) (0.30) 0.36

INDUSTRIAL FREE CASH FLOWS* (5,074) (270)

K E Y P E R F O R M A N C E M E T R I C S

(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated shipments

only include shipments by the Group's consolidated subsidiaries

* Refer to definitions of supplemental financial measures and reconciliations to applicable IFRS metrics included herein

€ million, except as otherwise stated

Q1 2020 RESULTS |May 5, 2020 23

K E Y F I N A N C I A L M E T R I C S *

4.4%5.7%

7.2% 7.1%

0.3%

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

1,0671,527

1,959 2,115

52

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

0.360.59

0.810.97

(0.30)

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

(270)

754 178

1,451

(5,074)

Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20

ADJUSTED EBIT € million

ADJUSTED EBIT MARGIN

ADJUSTED DILUTED EPS €

INDUSTRIAL FREE CASH FLOWS € million


* Refer to definitions of supplemental financial measures and reconciliations to applicable IFRS metrics included herein

Q1 2020 RESULTS |May 5, 2020 24

RE C ON C I L I AT I ON OF N E T P ROF I T / (LO S S ) TO ADJUSTE D E B I T

Q1 2020 Adjusted EBIT excludes adjustments primarily related to:

(1) Impairment expense primarily as a result of review of business and operations to take into consideration the estimated impacts and effects of the COVID-19 pandemic, including the

estimated impact on the macroeconomic environment, the market outlook and the Group’s operations


THREE MONTHS ENDED

MAR 31 2020

DEC 31 2019

SEP 302019

JUN 302019

MAR 31 2019

NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS (1,694) 1,578 (179) 793 508

TAX EXPENSE 825 352 440 317 212

NET FINANCIAL EXPENSES 213 221 280 260 244

ADJUSTMENTS:

IMPAIRMENT EXPENSE AND SUPPLIER OBLIGATIONS (1) 643 11 1,376 113 42

RESTRUCTURING COSTS, NET OF REVERSALS 20 (41) (1) (8) 204

GAINS ON DISPOSAL OF INVESTMENTS (5) (8) – (7) –

BRAZILIAN INDIRECT TAX – REVERSAL OF LIABILITY/RECOGNITION OF CREDITS – – – – (164)

OTHER 50 2 43 59 21

TOTAL ADJUSTMENTS – CONTINUING OPERATIONS 708 (36) 1,418 157 103

ADJUSTED EBIT 52 2,115 1,959 1,527 1,067

€ million

Q1 2020 RESULTS |May 5, 2020 25

DILUTED EPS TO ADJUSTED DILUTED EPS

DILUTED EPS FROM CONTINUING OPERATIONS (1.08) 1.00 (0.11) 0.50 0.32

IMPACT OF ADJUSTMENTS, NET OF TAXES, ON DILUTED EPS 0.78 (0.03) 0.92 0.09 0.04

ADJUSTED DILUTED EPS (0.30) 0.97 0.81 0.59 0.36

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING FOR DILUTED EPS (000) 1,568,001 1,573,810 1,571,155 1,570,180 1,569,868

NET PROFIT/ (LOSS) TO ADJUSTED NET PROFIT/ (LOSS)

THR EE MO NTHS END ED

MAR 31

2020

DEC 31

2019

SEP 30

2019

JUN 30

2019

MAR 31

2019

NET PROFIT/(LOSS) (including Magneti Marelli results and net gain on disposal) (1,694) 1,538 (179) 4,652 619

LESS: NET PROFIT/(LOSS) – DISCONTINUED OPERATIONS – (40) – 3,859 111

OF WHICH: GAIN/(LOSS) ON COMPLETION OF MAGNETI MARELLI SALE, NET OF TAXES – (40) – 3,809 –

OF WHICH: NET PROFIT MAGNETI MARELLI (1) – – – 50 111

NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS (1,694) 1,578 (179) 793 508

TOTAL ADJUSTMENTS – CONTINUING OPERATIONS (per Page 24) 708 (36) 1,418 157 103

TAX IMPACT ON ADJUSTMENTS (2) (34) (5) (54) (22) (41)

NET DERECOGNITION OF DEFERRED TAX ASSETS AND OTHER TAX ADJUSTMENTS (3) 549 – 77 – –

TOTAL ADJUSTMENTS, NET OF TAXES 1,223 (41) 1,441 135 62

ADJUSTED NET PROFIT/(LOSS) (471) 1,537 1,262 928 570

R E C O N C I L I A T I ON O F N E T P R O F I T / (L O S S ) T O A D J US T E D N E T P R O F I T / (L O S S )AN D D I L UT E D E P S T O AD J US T E D D I L UT E D E P S

(1) Reflects results of Magneti Marelli for each respective period up to its deconsolidation on completion of the sale transaction on May 2 2019

(2) Reflects tax impact on adjustments excluded from Adjusted EBIT noted on Page 24

€/share

€ million

(3) Write-down of net deferred tax assets in Italy and Brazil, primarily in relation to tax loss

carry-forwards in each respective country

Q1 2020 RESULTS |May 5, 2020 26

R E C O N C I L I A T I O N O F C A S H F L O WS F R O M O P E R A T I N G A C T I V I T I E S T O I N D U S T R I A L F R E E C A S H F L O WS

THREE MONTHS ENDED

MAR 31

2020

DEC 31

2019

SEP 30

2019

JUN 30

2019

MAR 31 2019

CASH FLOWS FROM OPERATING ACTIVITIES (2,820) 4,368 2,343 3,052 699

LESS: CASH FLOWS FROM OPERATING ACTIVITIES –DISCONTINUED OPERATIONS

– – – 63 (371)

CASH FLOWS FROM OPERATING ACTIVITIES –CONTINUING OPERATIONS

(2,820) 4,368 2,343 2,989 1,070

LESS: OPERATING ACTIVITIES NOT ATTRIBUTABLE TO INDUSTRIAL ACTIVITIES

(5) 15 13 17 29

LESS: CAPITAL EXPENDITURES FOR INDUSTRIAL ACTIVITIES 2,327 2,902 2,152 1,953 1,376

ADD: NET INTERCOMPANY PAYMENTS BETWEEN CONTINUING OPERATIONS AND DISCONTINUED OPERATIONS

– – – (265) 65

ADD: DISCRETIONARY PENSION CONTRIBUTION, NET OF TAX 68 – – – –

INDUSTRIAL FREE CASH FLOWS (5,074) 1,451 178 754 (270)

€ million

Q1 2020 RESULTS |May 5, 2020 27

OUTSTANDING

MAR 31 2020CONTINUING OPERATIONS 9M 2020 2021 2022 2023 2024 BEYOND

5.4 BANK DEBT 2.6 1.1 0.8 0.4 0.1 0.4

6.7 CAPITAL MARKETS DEBT 1.5 1.2 1.4 1.4 1.3 0.0

0.4 OTHER DEBT 0.4 0.0 0.0 0.0 0.0 0.0

1.7 LEASE LIABILITIES 0.3 0.2 0.2 0.2 0.2 0.6

14.2 TOTAL CASH MATURITIES (1) 4.8 2.5 2.4 2.0 1.5 1.0

12.3 CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES

6.3 UNDRAWN COMMITTED CREDIT LINES

–CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES INCLUDED WITHIN ASSETS HELD FOR SALE

18.6 TOTAL AVAILABLE LIQUIDITY

D E B T M A T U R I T Y S C H E D U L E

(1) Excludes accruals and asset backed financing of <€0.1B at Mar 31 2020

Figures may not add due to rounding

€ billion

Q1 2020 RESULTS |May 5, 2020 28

RESEARCH AND DEVELOPMENT COSTS – CONTINUING OPERATIONS

THREE MONTHS ENDED MAR 31

2020 2019

RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 320 310

AMORTIZATION OF CAPITALIZED DEVELOPMENT EXPENDITURES 318 347

IMPAIRMENT AND WRITE-OFF OF CAPITALIZED DEVELOPMENT EXPENDITURES 295 16

TOTAL RESEARCH AND DEVELOPMENT COSTS 933 673

R E S E A R C H A N D D E VE L O P M E N T C O S T S A N D E X P E N D I T U R E S

RESEARCH AND DEVELOPMENT EXPENDITURES – CONTINUING OPERATIONS

CAPITALIZED DEVELOPMENT EXPENDITURES 677 605

RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 320 310

TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES 997 915

€ million

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