q4 fy 2013_results

20 Novembre, 2010

Q4 & FY 2013 Results Review

January 29, 2014

January 29, 2014 Q4 & FY 2013 Results Review 2

Safe Harbor Statement

Cer ta i n i n fo rmat i on i nc l uded i n th i s p r esenta t i on ,

i nc l ud i ng , w i thout l im i ta t i on , any f o recas t s i nc l uded

he re i n , i s f o rwa rd l ook i ng and i s sub j ec t t o impo r tan t

r i sks and unce r ta i n t i e s tha t c ou l d cause a c tua l resu l t s

t o d i f f e r mate r i a l l y . The Group ’ s bus i nesses i nc l ude

i t s au t omot i ve , au t omot i ve - re l a ted and o the r sec t ors ,

and i t s ou t l ook i s p r edominant l y based on what i t

c ons i der s t o be the key economi c f ac to rs a f f ec t i ng

these bus i nesses . F o rwa rd - l ook i ng s ta tements w i th

r ega rd to the Group ' s bus i nesses i nvo l ve a number o f

impo r tan t f ac to rs tha t a re sub j ec t t o change,

i nc l ud i ng , bu t no t l im i ted to : the many i n te r r e l a ted

f ac to r s tha t a f f ec t consumer con f i dence and wo r l dw ide

demand fo r au tomot i ve and au tomot i ve - re l a ted

p roduc t s and changes i n consumer p re fe rences tha t

c ou l d reduce re l a t i ve demand fo r the Group ’ s

p r oduc t s ; gove rnmenta l p rog rams ; gene ra l economi c

cond i t i ons i n each o f the G roup ' s ma rket s ; l eg i s l a t i on ,

pa r t i cu l a r l y tha t re l a t i ng to automot i ve - re l a ted i s sues ,

the env i ronment , t r ade and commerce and

i n f ras t ruc t u re deve l opment ; ac t i ons o f compet i t o rs i n

the va r i ous i ndus t r i e s i n wh i ch the Group competes ;

p roduc t i on d i f f i cu l t i es , i nc l ud i ng capac i t y and supp l y

c ons t ra i n t s , excess i nvento ry l eve l s , and the impac t o f

veh i c l e de fec t s and/or p roduc t re ca l l s ; l abo r re l a t i ons ;

i n te res t ra tes and cur r ency exchange r a tes ; our ab i l i t y

t o rea l i ze bene f i t s and syne rg i es f r om ou r g l oba l

a l l i ance among the Group ’ s members ; subs tan t i a l debt

and l im i t s on l i qu i d i t y tha t may l im i t ou r ab i l i t y t o

execute the Group ’ s c ombined bus i nes s p lans ; po l i t i ca l

and c i v i l un res t ; ea r thquakes o r o t he r na tu ra l

d i sa s te rs and o the r r i sks and unce r t a i n t i es . Any o f the

assumpt i ons unde r l y ing th i s p resenta t i on o r any o f the

c i r cumstances o r da ta ment i oned i n th i s p r esenta t i on

may change . Any f o rwa rd - l ook i ng s ta tements

c onta i ned i n th i s p resent a t i on speak on l y as o f the

da te o f th i s p resenta t i on . We exp ress l y d i s c l a im a

duty t o p rov i de upda tes t o any f o rwa rd - l ook i ng

s ta t ements . F i a t does not assume and exp ress l y

d i s c l a ims any l i ab i l i t y i n connec t i on w i th any

i na ccu rac i es i n any o f these f o rwa rd - l ook i ng

s ta t ements o r i n connec t i on w i th any use by any th i rd

pa r ty o f such f o rwa rd - l ook i ng s ta t ements . Th i s

p r esenta t i on does not r ep resent i nves tment adv i ce o r

a recommendat i on f or t he pu rchase o r sa l e o f f i nanc i a l

produc t s and/o r o f any k i nd o f f i nanc i a l se rv i ces .

F i na l l y , th i s p resent a t i on does not r ep resent an

i nves tment so l i c i t a t i on i n I t a l y , pu rsuant t o Sec t i on 1 ,

l e t t e r ( t ) o f Leg i s l a t i ve Dec ree no . 58 o f F eb rua ry 24 ,

1998, as amended, no r does i t r ep resent a s im i l a r

s o l i c i t a t i on as c ontempl a ted by t he l aws i n any o the r

c oun t r y o r s t a te .


The creation of global carco The last key milestone

TRANSACTION SUMMARY (PURCHASE OF VEBA’S 41.5% EQUITY INTEREST IN CHRYSLER)

• Transaction closed on Jan 21, 2014

• Fiat acquired VEBA’s 41.5% equity interest in Chrysler for aggregate consideration of $3.65bn, funded through:

One-time special distribution from Chrysler to VEBA of $1.9bn

Remaining consideration of $1.75bn paid by Fiat

Both above considerations funded from available cash

• Separately, Chrysler entered into an MoU with UAW to supplement existing collective bargaining agreement

Four equal annual payments by Chrysler to VEBA Trust totalling $0.7bn over next three years ($175mn made at closing, $175mn on each of following three anniversaries)

Commitments from UAW to support Chrysler’s industrial ops

• Parties agreed to dismiss litigation proceedings in Delaware Chancery Court

• Not envisioned that Fiat will require equity capital to be raised via a rights issue

TRANSACTION BENEFITS TO FIAT

• Acquisition of remaining 41.5% of Chrysler at reasonable levels

• Eliminates headwinds to seamless integration of Fiat–Chrysler global alliance

• Effective and efficient access to capital markets

• Full optimization of global product platforms, R&D, manufacturing footprint and sales & marketing efforts


Fiat re-organization Summary of proposed transaction

Transaction

Structure

• Statutory reverse merger of Fiat S.p.A. into a wholly owned Dutch NewCo to be renamed Fiat Chrysler Automobiles N.V. (upon closing of merger, N.V. will issue common shares with 1:1 exchange ratio)

• NewCo expected to be resident for tax purposes in UK

Voting Mechanism

Listing

Withdrawal Rights

Process

FIAT S.P.A. REORGANIZES AFTER COMPLETION OF PURCHASE OF CHRYSLER GROUP LLC

• Loyalty voting structure to promote core base of long-term shareholders

• Shareholders who vote at Fiat EGM and continue to hold shares until closing may elect for an additional special voting share holding an immaterial economic entitlement

Shareholders may retain special voting shares until they transfer their common shares

After closing, new shareholders with single vote shares may earn special voting shares by holding their common shares for three years

• Shares listed in NY (with additional listing on Milan Stock Exchange)

• Transaction to trigger withdrawal rights for Fiat S.p.A. shareholders (abstaining, dissenting or absent)

Cash-out option at a price equal to 6 months average price prior to publication of notice of call of Fiat EGM

• Fiat S.p.A. creditors objection (60-day period after Fiat EGM)

• EGM approval

• Withdrawal rights and creditors opposition period

• Closing subject to certain conditions, included a €500mn cap to cash-out resulting from exercise of withdrawal rights and creditors’ opposition

• Company targeting to execute transaction by year-end 2014 Timeline


New corporate identity


FY 2013 Executive summary

• Worldwide shipments up 3% over prior year to 4.4mn units

Growth in NAFTA & APAC more than offsetting moderate contractions in LATAM and EMEA

• Key financial metrics

Revenues at €87bn

Trading profit at €3.4bn

EBIT at €3.0bn

Net profit at €2.0bn (€0.9bn excl. unusuals)

Net industrial debt at €6.6bn

Total available liquidity at €22.7bn

• Jeep set all-time global sales record of 732k vehicles

• WCM program’s “Gold” level awarded to Pomigliano d’Arco, Tychy and Bursa plants

• Successfully active in capital markets

Fiat bond issuances totaling ~€2.9bn and repayment of a €1bn bond at maturity

Fiat renewed its 3-year €2.0bn RCF, subsequently increased to €2.1bn

Chrysler re-priced twice its $3.0bn term loan and $1.3bn undrawn credit facility (aggregate savings of ~$70mn per annum)

• New or extended partnerships in car financing

New private-label financing arrangement in U.S. with Santander, extended partnership in Europe with Crédit Agricole, renewed agreement in Brazil with Itaú Unibanco

• Guidance for 2014

Revenues of ~€93bn

Trading profit in €3.6-4.0bn range

Net profit of ~€0.6-0.8bn

Net industrial debt in €9.8-10.3bn range1

EMEA

19%

NAFTA

53%

LATAM

11%

APAC

5%

Luxury

brands

4%

Components

7%

Others

1%

Break-even

EMEA mass-markets brand ~(€0.5)bn Luxury brands ~ €0.5bn Other and Eliminations ~(€0.1)bn

Italy 7%

NAFTA

65%

LATAM

18%

APAC

11% Components

6%

(1) Includes cash outflows for Jan 21, 2014 closing of purchase of remaining 41.5% minority stake in Chrysler from VEBA (€2.7bn) and €0.3bn due to adoption of IFRS 11


83,957

FY ‘13 FY ‘12

Net profit (€mn)

Net industrial debt (€bn)

Liquidity (€bn)

Trading profit (€mn)

Cash & Mktable Securities

Undrawn committed credit lines

Net revenues (€mn)

Dec 31 ‘12

2.9

20.8 22.7

3.0

17.9 19.7

Dec 31 ‘13

EBIT (€mn)

FY 2013 financial highlights

FY ‘13

FY ‘13 Dec 31 ‘12 Dec 31 ‘13

86,816

3,541 3,394

3,404 2,972

896

1,951

6.5 6.6

(1) Restated for adoption of IAS 19 as amended (Trading Profit/EBIT reduced by €273mn; Net Profit reduced by €515mn) Note: Graphs not to scale

• Group revenues up 3%

Increases in NAFTA and APAC partly offset

by reductions in LATAM and EMEA

Strong top-line growth for Luxury brands

Components in line with 2012 (+4% at

constant exchange rates)

• €904mn attributable to the owners of the parent

• Positive impact of €1.5bn from recognition of net deferred

tax assets related to Chrysler partly offset by €0.5bn in net

unusual charges

Normalized net profit of €943mn (€1,140mn for 2012)

Excl. unusuals and positive deferred tax impact, net loss of

€911mn (€787mn last year) for Fiat excl. Chrysler

• Cost of income taxes of €557mn, net of recognition of

deferred tax assets (€244mn for Fiat excl. Chrysler)

• Slight increase for the year including €0.2bn of equity investments

Excluding equity investments, cash-flow for the year

positive by €0.1bn

Strong Q4 cash-flow generation of €1.4bn from Chrysler

and €0.3bn from Fiat excl. Chrysler

• Group Capex at €7.4bn, substantially in line with 2012, but 3% higher at constant exchange rates

• A €1.9bn increase over Dec 2012, mainly reflecting positive contribution from financing activities throughout the year, net of €1.0bn in negative currency translation effects

In 2013, Fiat issued a total of €2.9bn in bonds and repaid

€1.0bn at maturity

Fiat excl. Chrysler at €12.1bn (€11.1bn at 2012-end)

Chrysler at €10.6bn (€9.8bn at 2012-end) with a €0.6bn

negative impact from currency translation

• Mass-market brands

NAFTA: €2,290mn

LATAM: €492mn

APAC: €318mn

EMEA: -€520mn

• Luxury brands: €470mn

• Components: €146mn

• Group trading profit down 4%, or +€0.1bn vs.

2012 on a currency adjusted basis

• Trading profit for 2013 reflected €0.3bn in

higher R&D amortization

• Mass-market brands

NAFTA: €2,220mn (+4.8% margin)

LATAM: €619mn (+6.2% margin)

APAC: €358mn (+7.7% margin)

EMEA: -€470mn (-2.7% margin)

• Luxury Brands: €535mn (+14.0% margin)

• Components: €201mn (+2.5% margin)

FY ‘13

FY ‘12 (1)

FY ‘12 (1)

FY ‘12 (1)

3.9%

margin

4.2%

margin


43.5

11.1 3.1

17.8

2.9 8.0

(2.5)

84.0

45.8

10.0 4.6

17.4

3.8 8.1

(2.9)

86.8

NAFTA LATAM APAC EMEA Ferrari &Maserati

Components Other &Eliminations

Fiat Group

MASS-MARKET BRANDS

2,491

1,025

255

(737)

392 165

(187)

3,404

2,290

492 318

(520)

470 146

(224)

2,972

NAFTA LATAM APAC EMEA Ferrari &Maserati

Components Other &Eliminations

Fiat Group

MASS-MARKET BRANDS

FY 2012 FY 2013

(1) 2012 restated for adoption of IAS 19 as amended (NAFTA: -€250mn; LATAM: - €7mn; Components: -€3mn; Eliminations and Adjustments: -€14mn.

EMEA losses reduced by €1mn)

Note: Graphs not to scale; Numbers may not add due to rounding

• Group revenues up 3% (+7% at constant FX rates)

NAFTA (+5% or 9% at constant FX rate) and APAC (+48%) up on the back of higher volumes

LATAM down 10% in nominal terms (+1% at constant FX rate)

EMEA down 2% mainly reflecting volume decline in H1

Luxury brands up 31% (Ferrari +5%, Maserati more than doubling to €1.7bn on strength of new models)

Components revenues in line with 2012 at €8.1bn (+4% at constant FX rate)

• EBIT -13% (ex-unusuals down 4%)

NAFTA -8% (-9% before unusuals)

LATAM -52% (-41% before unusuals)

APAC +25%

EMEA reduced losses by €217mn

Luxury Brands +20% (+36% before unusuals)

Components -12% (+17% before unusuals)

(1) (1) (1)

(1)

FY 2013 financial highlights Performance by segment

EBIT before unusuals • 2012: €2,443mn • 2013: €2,219mn

EBIT before unusuals • 2012: €1,056mn • 2013: €619mn

EBIT before unusuals • 2012: €(543)mn • 2013: €(325)mn

EBIT before unusuals • 2012: €392mn • 2013: €535mn

EBIT before unusuals • 2012: €176mn • 2013: €206mn

EBIT before unusuals • 2012: €3,648mn • 2013: €3,491mn

EBIT before unusuals • 2012: €(131)mn • 2013: €(82)mn


Breakdown of unusual items FY 2013

(€mn)

Asset write-downs mainly related to rationalization of architectures associated with new product strategy

(390)

Repositioning of Alfa Romeo brand (175)

Repositioning of Fiat brand (90)

Maserati R&D due to change of platform for luxury SUV (65)

Cast Iron business (60)

Amendments to Chrysler’s U.S. & Canadian salaried defined benefit pension plans 166

Voluntary safety recall and customer satisfaction action related to certain older Jeep products

(115)

Write-off of Equity Recapture Agreement right considering purchase of remaining equity interest in Chrysler

(56)

Devaluation of Venezuelan bolivar (43)

Other (81)

TOTAL UNUSUAL ITEMS (519)

of which cash-items ~(100)


Note

(1) Restated for adoption of IAS 19 as amended (Trading Profit/EBIT reduced by €273mn; Profit before Taxes reduced by €517mn and Net Profit reduced by €515mn )

(2) “Financial charges, net” includes a €31mn gain from the mark-to-market value of stock option-related equity swaps (€34mn gain in FY ‘12)

(3) Excluding net unusual charges and one-off net deferred tax assets

€mn (unless otherwise stated)

Fiat Group Fiat excl. Chrysler

FY ’13 FY ‘12 (1) FY ‘13 FY ‘12

Worldwide total shipments (Units ‘000)

4,352 4,223 1,900 1,920

Net Revenues 86,816 83,957 35,593 35,566

Trading Profit % of revenues

3,394 3.9%

3,541 4.2%

246 0.7%

338 1.0%

Investment income, net 97 107 103 110

EBIT BEFORE UNUSUALS 3,491 3,648 349 448

Unusual items, net (519) (244) (537) (261)

EBIT 2,972 3,404 (188) 187

EBITDA 7,546 7,538 2,113 2,304

Financial charges, net (2) (1,964) (1,885) (989) (817)

Pre-tax result 1,008 1,519 (1,177) (630)

Taxes 943 (623) 736 (418)

Net result 1,951 896 (441) (1,048)

Net result excl. unusuals (3) 943 1,140 (911) (787)

FY 2013 From trading profit to net result


• Net cash position of €0.2bn for Chrysler at year-end

• Positive operating cash flow net of Capex in 2013, with €1.6bn cash absorption for Fiat excl. Chrysler more than compensated by cash generation from Chrysler

Capex for Fiat excl. Chrysler at €3.9bn (+20% vs. 2012 or 25% at constant exchange rates), €3.6bn for Chrysler vs. €4.3bn in 2012

Positive working capital contribution from both Fiat excl. Chrysler (€1.1bn vs. €0.6bn absorption in 2012) and Chrysler (€0.3bn vs. €1.3bn in 2012)

FY 2013 net industrial debt walk

€mn

(6,545) (6,649) 2

December 31, 2012

December 31, 2013

Industrial EBITDA

(excl. unusuals)

Financial Charges & Taxes 1

Change in Funds & Other

Working capital

Capex Investments, Scope & Other

Capital increase /Repos/

Dividends

FX translation

effect

7,961

(2,226)

1,464

(7,433) (3)

3

313

(183)

1 Net of equity swap and IAS 19 as amended 2 Opening balance on Jan 1, 2014 higher by €0.3bn due to adoption of IFRS 11 Numbers may not add due to rounding

Change in Net Industrial Debt (104)

Cash Flow from operating activities, net of Capex +79


Chrysler pension & OPEB status update (IFRS, €bn)

• Pension and OPEB underfunded status reduced by €3bn primarily due to a higher discount rate, return on plan assets and pension contributions during the year

• A ±100 basis point change in discount rate would impact pension obligations by ~€2.3bn

Dec 31, 2012

Discount

Rate Contributions

Earnings on

Plan Assets

Interest,

Service &

Other Dec 31, 2013 Dec 31, 2012 Discount Rate

Benefit

Payments

Interest,

Service &

Other Dec 31, 2013

PENSION PLAN FUNDED STATUS OPEB FUNDED STATUS

(6.7)

2.0 0.5

1.2

(4.0) (1.0)

(2.3)

0.2 0.2

(0.1) (2.0)

Note: 2012 restated for adoption of IAS 19 as amended

WORLDWIDE WEIGHTED AVG. ASSUMPTIONS 2013 2012

Benefit Obligations at December 31: - Discount Rate – Ongoing Benefits

4.69%

3.98%

WORLDWIDE WEIGHTED AVG. ASSUMPTIONS 2013 2012

Benefit Obligations at December 31: - Discount Rate – Ongoing Benefits

4.87%

4.07%


(1) Including consideration of $1.75bn paid by Fiat and $1.9bn special distribution paid by Chrysler to its members

(2) Including $175mm payment to VEBA Trust which represents first of four equal annual payments due to VEBA Trust through 2017

FIAT GROUP (€bn)

Actual Dec 31, 2013

Post Fiat-VEBA transaction

Post refinancing

Pro-forma Dec 31, 2013

Pro-forma Dec 31, 2013

Cash & Mktable Securities 19.7 16.9 (1)(2) 16.9 (1)(2)

Derivatives Assets / (Liabilities) 0.4 0.4 0.4

Total Cash Maturities (Principal) (28.7) (28.7) (28.7)

Bank Debt (8.8) (8.8) (10.2)

Capital Market (14.2) (14.2) (16.2)

VEBA Trust Note (3.4) (3.4) -

Other Debt (2.3) (2.3) (2.3)

Asset backed financing, accruals and other adj. (1.2) (1.2) (1.2)

(NET DEBT) / NET CASH (9.8) (12.6) (12.6)

Industrial Activities (6.6) (9.5) (9.5)

Financial Services (3.1) (3.1) (3.1)

• Chrysler Group LLC to refinance VEBA Trust Note in capital markets to enhance earnings and cash-flow

Reimbursement of principal amount and accrued interest, both tax deductible

No penalty for early repayment

• Key benefits of transaction

Positive impact on earnings with pre-tax interest expense benefit of ~$130mm per year

Improving projected cash flow by ~$2.5bn over next three years on the back of tax shield benefit and reduced interest cost as well as termination of principal payments

• No incremental debt at Chrysler or Fiat level

• Transaction consistent with Fiat-Chrysler treasury integration path

CASH SOURCES TO CHRYSLER ($bn) CASH USES FROM CHRYSLER ($bn)

Add-on to existing Term Loan B Refinance VEBA Trust Note 4.7

New Term Loan B Accrued Interest 0.3

Add-on to Secured Senior Notes

TOTAL SOURCES 5.0 TOTAL USES 5.0

Chrysler refinancing transaction overview Sources & uses and pro-forma capitalization

Note: Excludes estimated fees and expenses

Numbers may not add due to rounding

MASS-MARKET BRANDS BY REGION

LUXURY BRANDS

COMPONENTS

BUSINESS ENVIRONMENT OVERVIEW

2014 GUIDANCE

1

2

3

4

5

15 January 29, 2014 Q4 & FY 2013 Results Review

TOTAL NAFTA FY ‘13 FY ‘12

Shipments (k units)

2,238 2,115

Revenues (€mn)

45,777 43,521

Trading Profit (1)

(€mn) 2,220 2,443

EBIT (1)

(€mn) 2,290 2,491

Mass-market brands Highlights

(1) 2012 restated for adoption of IAS 19 as amended

FINANCIAL PERFORMANCE

• Strong industry trend throughout the year supportive of a robust level of sales for the Group, especially in U.S. and Canada

• Revenues for full year up 5% (+9% in USD terms) on higher shipments

• FY trading profit down 9% (-6% in USD terms)

Decrease reflecting content enhancements associated with new models and higher industrial costs to support volume growth as well increased R&D amortization partly offset by higher shipments & improved pricing

Trading margin at 4.8%

COMMERCIAL PERFORMANCE & HIGHLIGHTS

• FY shipments up 6% vs. prior year, primarily reflecting increased Jeep (Grand Cherokee, Wrangler and Cherokee) and Ram 1500 pickup shipments

U.S.: 1,876k vehicles, up 7% vs. last year

Canada: 269k vehicles, up 5%

Mexico & other: 93k vehicles

• FY vehicle sales up 8% to 2,147k vehicles, above the market in both U.S. (+9%) and Canada (+7%)

• Best sales performers in U.S. & Canada combined

Double-digit growth for both Ram (+21%) & Dodge (+12%)

Jeep +3%: double-digit performance for all nameplates (no availability of any D-SUV model until late October, bold contribution to sales of all-new Cherokee in Q4)

• U.S. dealer inventory at 79 days supply as dealers build stock of newly-launched Jeep Cherokee


Mass-market brands EBIT walk

€bn

FY 2012 (1) Net price Industrial costs

SG&A Investments / FX / Other

FY 2013 Volume & Mix

(1) 2012 restated for adoption of IAS 19 as amended

2,491

2,290

588

868

(1,456) (90) (111)

• Volume increase of 123k vehicle shipments

• Positive mix primarily reflecting higher retail volumes and lower fleet volumes

• Positive net price partly driven by vehicle content enhancements on recent launches

• Industrial costs impacted by content enhancements and higher depreciation & amortization, partly offset by purchasing savings

• SG&A costs higher primarily due to increased advertising expense

• Other primarily relates to negative FX translation impact (~80mn)


8.8

10.8 10.9 11.4

12.6 12.9 13.0 13.2

Mass-market brands Market trends & business dynamics

Q4 Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2010 2011 2012

QUARTERLY MARKET SHARE

(%)

INDUSTRY VOLUME & OUTLOOK (MN UNITS)

0.38 0.40 1.8

Q4 '12 Q4 '13 FY '13

Q2 Q3 Q4

FY share

13.0%

9.2%

FY share

14.3%

10.5%

FY share

14.2%

11.2%

U.S.

• FY ‘13 industry up 7% vs. prior year (cars +4%; trucks +10%)

Q4 industry up 6% (cars +3%; trucks +9%)

• FY ‘13 Group sales up 9% vs. prior year

Q4 up 11% vs. prior year

December represented the 45th consecutive month of year-over-year sales gains

Strongest annual sales since 2007

• FY ‘13 market share up 20 bps; retail sales up 14% and fleet mix down from 26% to 22%

Q4 share up 50 bps to 11.4%

Q4 retail sales up 12%

Fleet mix down 70 bps to 21.7% of total sales in Q4

CANADA

• FY ‘13 industry recording highest FY levels ever, up 4% vs. prior year

Q4 industry up 6%

• FY ‘13 Group sales up 7% vs. prior year

Q4 sales up 7% vs. prior year

49 consecutive months of year-over-year sales growth

#2 selling manufacturer in Canada in 2013; best FY sales since 2000

• FY ‘13 market share up 40 bps to 14.6%

2013

FY share

14.6%

11.4%

3.7 3.9

15.9

Q4 '12 Q4 '13 FY '13




• FY industry up 1.3% in the region with Argentina at historical peak and Brazilian market at 3.6mn units, similar to 2012 levels

• FY revenues down 10% vs. prior year (+1% at constant exchange rates)

• Trading profit for full year reduced by 41% in nominal terms (down 33% at constant FX rates)

Decrease mainly attributable to Brazilian ops due to input cost inflation, also on weakening of Real affecting prices of imported materials, unfavorable production mix and lower volumes, as well as initial start-up costs for Pernambuco plant

Venezuela trading performance down mainly due to reduced volumes and negative mix as FX restrictions limited supply levels, while other LATAM markets improved

Trading margin at 6.2%


• Total Group FY shipments down 3% to 950k

Brazil: 785k shipments or down 7% (188k units in Q4, an 18% decline compared with exceptionally strong quarter in 2012, when Group reacted promptly to increased demand in Brazilian market driven by government incentives)

Argentina: 111k (+32%)

Other LATAM markets: 54k (+7%)

• Disciplined management of company & dealer inventory (stable at ~1 month-supply at year-end)

TOTAL LATAM FY ‘13 FY ‘12

Shipments (k units)

950 979

Revenues (€mn)

9,973 11,062

Trading Profit (€mn)

619 1,056

EBIT (€mn)

492 1,025



€mn • Negative volume, reflecting

decline in shipments, and less favorable market mix

• Disciplined pricing behavior supported by new product initiatives, but unable to price for inflationary increases

• Industrial costs impacted by

Labor and input cost inflation also on weakening of Real affecting prices of imported materials (principally within region)

Less favorable production mix (Argentina vs. Brazil)

Start-up costs for Pernambuco plant

• Higher SG&A driven by new advertising campaigns in Brazil

• Other mainly relates to FX translation effect (€85mn) and unusual charges (devaluation of Venezuelan Bolivar of €43mn and asset impairment for €75mn due to streamlining of architectures and models associated with region’s refocused product strategy)

1,025

492

(111)

64

(257) (37)

(192)

FY 2012 Net price Industrial costs

SG&A Investments FX / Other




(PASSENGER CARS & LCVS; %)

INDUSTRY VOLUME & OUTLOOK (TOTAL LATAM; MN UNITS)

Passenger cars LCVs

2010 2011 2012 2013

REGIONAL OVERVIEW

Brazil

• FY industry down 1.5% (Q4: -3%) compared to 2012 which benefited from a period of higher sales tax incentives

• FY share compares with exceptional performance in 2012

Group retained its leadership in Brazilian market for the 12th year with overall share of 21.5%, 270 bps ahead of nearest competitor

• Group products continued to perform well

Combined 25% share of A/B segment, driven by continued success of new Palio and Uno

Siena and Grand Siena posting a combined 25% year-over-year sales increase

Strada up 5% boosted by contribution from refreshed models launched in Q4

Argentina

• FY market up 14% to 919k units (Q4: +23%)

• Group FY sales up 31% to ~111k

Share up 140 bps facilitated by improved customs clearance for vehicle imports

Update on IPI tax

• Reduced IPI rates to gradually return to pre-incentive levels during 2014 with increases varying by engine displacement, fuel and vehicle type

A 1 to 2 p.p. increase occured on Jan 1

A further increase expected on Jul 1 (adding 2 to 5 p.p.)


FY share

23.0%

11.2%

FY share

22.2%

11.6%

FY share

23.3%

10.6%

FY share

21.5%

12.0%

1.0 1.1

4.7

0.5 0.5

1.2

Q4 '12 Q4 '13 FY '13

5.9

1.5 1.5

10.2 11.6 9.3 10.5

22.3 21.7 23.6

20.0

Q4 Q2 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4



TOTAL APAC FY ‘13 FY ‘12

Shipments

(k units) 163 103

Revenues

(€mn) 4,621 3,128

Trading Profit

(€mn) 358 260

EBIT (€mn)

318 255

APAC industry reflects aggregate for key markets where Group competes (i.e. China, India, Australia, Japan, South Korea)


• Strong overall demand in the region (+9%) driven by double-digit growth in China, partially offset by slowing demand in India

• FY revenues up 48%

Shipments up 58%, primarily driven by Jeep, Fiat and Dodge brands

• Trading profit for full year up 38% over 2012 levels

Increase primarily driven by higher volumes, partially offset by increased industrial, SG&A expenses in line with regional growth

Trading margin remained strong (7.7%)

• FY EBIT up 25%, with trading profit improvement partially offset by start-up costs incurred by Chinese joint venture


• Strong retail sales (incl. JVs) throughout the year, up 73% to 199k vehicles in the region

Jeep (~50% of total Group sales in APAC) up 26% over prior year

Fiat brand volumes ~5x last year’s level primarily driven by Fiat Viaggio in China

Successful return of Dodge Journey, now Group’s fourth best-selling vehicle in the region (after Fiat Viaggio, Jeep Compass and Jeep Grand Cherokee)

• Strong sales momentum continued in Q4, up 79% vs. a year ago to 62k vehicles with December the best-selling month in the region’s history



€mn


SG&A Investments / FX / Other


• Volume/mix reflecting higher shipments (+60k units) and better mix (higher penetration of SUVs)

• Pricing impacted by increasingly competitive environment, particularly in China

• Increased industrial costs due to higher R&D and fixed manufacturing costs from new product initiatives and higher production volumes

• Increased SG&A expenses to support volume growth and continued regional expansion

• Other primarily reflects higher losses of Chinese ops (€74mn) also including start-up costs for launch of Fiat Viaggio and Ottimo and unfavorable FX impact

255 318

423

(79)

(106)

(72)

(103)


INDUSTRY VOLUME1

(PASSENGER CARS & LCVS; MN UNITS)

1.Reflects aggregate for key markets where Group is competing (i.e. China, India, Australia, Japan, South Korea)


6.1 7.0

26.1

Q4 '12 Q4 '13 FY '13

Q4 Q3 Q1 Q2 Q4 Q2 Q1 Q3 Q4 Q1

2010 2011 2012

Q2 Q3 Q4

REGIONAL OVERVIEW

FY Group sales (incl. JVs) significantly outperforming industry (+9%) driven by strong performance in China and Australia

CHINA

• FY Group sales up 125% posting the best sales improvement in an industry growing 17%

Share gain of 40 bps driven by Fiat Viaggio, Dodge Journey and continued growth of Jeep brand

Fiat Viaggio, Jeep Compass and Dodge Journey as top-sellers

AUSTRALIA

• Group sales up 53%, significantly outperforming a moderately growing market (up 2%) in 2013

FY share up 100 bps over 2012

Jeep +31% vs. prior year; Fiat, Alfa Romeo and LCVs at 4x last year’s level supported by consolidation of sales & distribution activities into one Group company

INDIA

• Sales up 41% over same period in 2012 on the back of establishment of new distribution network

JAPAN

• FY Group sales up 6%, outperforming a largely flat industry (gains driven by Chrysler, Abarth & Fiat)

SOUTH KOREA

• Sales up 16% for the year in a market down 1%

2013

0.21%

0.28%

0.55% 0.91%

1.4% 1.7%

2.2%

3.4%

0.54% 0.36%

0.11%

0.49% 0.31%

0.27%

0.38%

0.38%

FY share

1.2%

0.9%

0.2%

0.2%


(PASSENGER CARS & LCVS; %)

AUS

IND

CHI

JAP

FY share

1.6%

0.7%

0.3%

0.3%

FY share

2.1%

0.4%

0.4%

0.3%

FY share

3.1%

0.4%

0.8%

0.4%



TOTAL EMEA FY ‘13 FY ‘12

Shipments (k units)

979 1,012

Revenues (€mn)

17,420 17,800

Trading Profit (€mn)

(470) (703)

EBIT (€mn)

(520) (737)


• Although mixed across major markets, overall trading conditions in EU27+EFTA remained weak throughout 2013 with initial signs of stabilization in H2

FY 2013 being the 6th consecutive year of decline

Among major markets, the Q4 passenger car segment posted 2nd quarter of year-over-year gains, Italy still negative

LCVs: FY industry flat vs. prior year

• FY revenues slightly down due to lower shipments

• Trading loss for FY reduced by €233mn, or 33%

Sequential quarter-over-quarter improvement in 2013, with losses in Q4 reduced by 58% to €50mn

Better mix and cost efficiencies more than offsetting headwinds still negative pricing

• FY EBIT loss reduced by ~30%

Results from investments of €145mn (€160mn in 2012) with decline also due to unfavorable FX impact of Turkish Lira

Unusual charges flat at €195mn (2013 including write-off of previously capitalized R&D related to new model development for Alfa Romeo products)


• Overall shipments down 3%, or 33k units

Passenger cars down 34k (-4%) to 776k units, with decline fully attributable to lower volumes in Italy

LCV shipments substantially unchanged at 203k units

• Strict management of supply and demand function

Company & dealer inventories stable at ~2-months supply

Utilization rate at plants in EMEA, including JVs, nearly stable (67% Harbor1 definition, or 42% Technical2 definition)

Note 1 Harbour definition: 235 days p.a. / 16 hours per day 2 Technical definition: 280 days p.a. / 3 shifts per day



€mn • Better mix (mainly 500 family & LCVs) partly offset by negative volume, reflecting decline in passenger car shipments

• Price pressure continuing (more accentuated in H1)

• Improvement in industrial costs driven by WCM program efficiencies & purchasing savings more than offsetting higher R&D amortization

• Continued implementation of cost efficiencies in SG&A spending, mainly related to reduced advertising

• Other includes unfavorable FX and lower contribution from JVs (principally Tofas due to FX conversion)


SG&A FY 2013 Volume & Mix

Investments / FX / Other

(737)

(520)

77

(172)

139

199

(26)


2.8 3.0

12.3

Q4 '12 Q4 '13 FY '13


(%)


0.3 0.3 1.3

Q4 '12 Q4 '13 FY '13

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

EU27+EFTA

Q4 Q3 Q1 Q2 Q4

2011 2012

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

2013 2010

EU27+EFTA

• FY industry down 1.8% to 12.3mn units

Positive year-over-year performance in H2 (+4%) unable to counter downwards trend in H1 (-7%)

Among major countries, positive comps for UK (+11%) & Spain (+3%); negative performance in Germany (-4%), France (-6%) with Italy suffering the most (-7%)

• FY Group sales down 7% to 736k

• FY share at 6.0%

Share performance in EU27+EFTA ex-Italy (3.3%) similar to prior year with share gains in France, UK & Spain offset by share losses in Germany and some other minor markets

Italian market weight further reduced, to 11% of total European industry, or 500 bps lower than pre-crisis levels in 2007

ITALY

• Industry troughed at lowest levels since 1978, with decline moderating in H2 (Q4: -3%)

Share down 90 bps as a combined result of Group’s repositioning strategy and decision not to engage further in value destructive price competition, particularly in H2

FY share

28.7%

6.0%

6.9 6.3 6.2 5.6

28.8 28.4 29.3 27.7

EU27+EFTA


Mass-market brands LCVs: market trends & business dynamics

QUARTERLY MARKET SHARE*

(%)


0.38 0.41

1.57

Q4 '12 Q4 '13 FY '13

* 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

0.03 0.03 0.10

Q4 '12 Q4 '13 FY '13

• FY market flat at 2012 levels, after a bad start (Q1: -10%), then gradually improving with Q4 being the first positive year-over-year industry gain (+9%)

Mixed trend among major markets: for full-year, Italy -15% (Q4: -2%), France -5% (Q4: +3%), Germany -2% (Q4: +6%), but with double-digit growth in UK (+12%) & Spain (+11%), up 26% and 34% in Q4, respectively

• FY Group sales at 182k units, flat over prior year

• Fiat Professional FY share stable, with a 9.4% record share in EU27+EFTA excl. Italy offsetting unfavorable market mix

Share gains in Italy (+130 bps), UK (+140 bps) and Spain (+40 bps), while flat in Germany & France

Unfavorable market mix penalized market share in Q4 in EU27+EFTA, notwithstanding a strong performance in Italy (+330 bps)

Ducato topped 100k units sold in European market, recording 80 bps share gain in its segment

• Outside Europe, strong share performance in Russia (+230 bps)

EU27+EFTA

Q4 Q3 Q1 Q2 Q4

2011 2012

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

2013 2010

11.9 10.8 10.8 10.4

42.4 41.9 42.7 46.0

FY share

44.0%

11.6%


Luxury brands Ferrari & Maserati

2

USA 30%

European Top-5 35%

China, Hong Kong & Taiwan

8%

Japan 5.5%

Others 22%

USA 45%

European Top-4 13%

China 25%

Japan 4%

Others 13%

• FY revenue up 5% to €2.3bn

Shipments of street cars down 5% to 6,922 units, consistent with strategic target to maintain production below prior year’s level to preserve brand’s exclusivity

First 20 units of special edition “LaFerrari” shipped

12-cyl models up 19% on the back of F12 Berlinetta released just 1 year ago; 8-cyl down 12%

North America (+9%) remained #1 market

Europe: UK in line with 2012, other major markets down

China, Hong Kong & Taiwan declined, partially offset by increases in Japan

• FY trading profit up 9% to €364mn

Improvement reflecting better sales mix and contribution from licensing and personalization program

Margin up 50 bps to 15.6%

• FY revenue 2.2x last year’s level to €1.7bn

FY shipments of 15.4k units, up 148% vs. 2012 driven by success of new Quattroporte and Ghibli launched in 2013

Shipments of ~8k for Quattroporte, ~3k for Ghibli with order intake totalling 13k units apiece at Dec-end

GranCabrio & GranTurismo in line with 2012 (5k units)

USA: ~7k units (+138%), brand’s #1 market

China: 4.3x last year’s volumes to ~4k units, the brand’s second market

Europe: up 133% to ~3k units

Mid-East up 81% and APAC-ex China up 52% to ~2k units in aggregate

• FY trading profit at €171mn, €114mn higher than a year ago, representing a 10.3% margin

Q4 at €123mn (€13mn in 2012) or 15.9% margin

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


• FY revenues up 3% to €6bn (+6% at constant exchange rates)

Lighting up 12% on the back of performance in China as well as NAFTA where several new products launched in H2 2012

Electronic Systems up 7% primarily due to growth in sales of “telematics and body” products

Powertrain business flat at constant exchange rates

After market business up 5% (+13% at constant FX rates) with growth in Europe and Mercosur only partially offset by decrease in NAFTA

• Trading profit up 18%, a 40 bps margin increase to 2.8%

Top-line growth only partially offset by higher industrial costs associated with new product launches in NAFTA

Operational Highlights

• Solid performance in NAFTA and China with modest gain in Europe; Brazil stable at constant exchange rates

• Order intake up 44% to €2.6bn

3 Components

FY ‘12 FY ‘13

780 688

0

(13)

FY ‘12 FY ‘13

• Revenues down 12%

Cast Iron business unit posted a 7% decrease in volumes in Europe and the Americas with lower demand in all segments, particularly light vehicles

Aluminum business posted 13% increase in volumes

• Trading performance primarily attributable to volume declines Note: graphs not to scale

FY ‘12 FY ‘13

1,482 1,463

33 48

FY ‘12 FY ‘13

• Revenues substantially in line with prior year

• A €15mn increase in trading profit primarily driven by Body Welding ops

• Order intake for System activities up 18% to €1.5bn

Note: graphs not to scale

FY ‘12 FY ‘13

5,828 5,988

141 166

FY ‘12 FY ‘13

Note: graphs not to scale


4 Business environment overview


Business environment overview Jeep Cherokee starts strong; All-new Chrysler 200 revealed

1

11

17

Oct Nov Dec

All-New Cherokee

(Launched end of October 2013)

• Over 29k sold worldwide (mostly NAFTA) in just over 2 full months on sale

• Strong market reception supporting 64k shipments since shipment hold released in late October

• Competes in largest SUV segment in NAFTA (~2.0mn vehicles)

• First mid-size SUV with a 9-speed automatic transmission

• Best-in-class capability with new Trailhawk model

Worldwide sales

(000’s)

• Presented at 2014 Detroit Auto Show

• Available in H1 2014

• Derived from common Compact U.S. Wide architecture

• Benchmark features in its category

First mid-size sedan with a standard 9-speed automatic transmission

Expected fuel economy rating of 35 MPG highway

Available all-wheel-drive system with automatic fully disconnecting rear axle

Two world-class engines (Pentastar V-6 with best-in-class 295hp) & 2.4L MultAir®2 Tigershark (I-4 engine, 184hp)

• Production at Sterling Heights assembly plant in Michigan

More than $1bn investment (product and plant), including all-new paint shop and fully robotic body shop

All-New 2015 Chrysler 200


• Investment for new complex started in Q4 2012

Capex spanning through 2016 (~€2bn in 2012-14 period) with Fiat to receive financing for up to 80% of total investment

In addition, once production begins, project will also benefit from tax incentives for a period of 5 years

• Start-of-production expected in H1 2015

Initial annual capacity of 200k vehicles for domestic market and export

Small-Wide architecture to strengthen mid-size car offerings

• Expandable, flexible world-class production site

Integrated international supplier park

Product engineering and testing facilities

Over 80% of components localized

Favorable logistics infrastructure (port, railway…)

LOCATED IN GOIANA (STATE OF PERNAMBUCO)

NORTHEAST BRAZIL

Business environment overview Strengthening product line-up, preparing for upscale move

KEY LAUNCHES IN Q4 STATUS UPDATE OF NEW PLANT

NEW STRADA

ALL-NEW FIORINO

• Best-selling nameplate in its segment

50% segment share in Brazil for FY 2013

• Launched two refreshed models

Single-cab Strada launched in market in October

Ramp-up of production for double-cab version started in October

• Expanding Uno family

• Significant improvements compared to prior model

Increased cargo capacity

New and more fuel-efficient engines

33 January xx, 2014 Q4 & FY 2013 Results Review

115

199

41

20 16

8

Business environment overview Significant sales up for Fiat brand in China

APAC SALES GROWTH BY BRAND

FY ‘12 FY ‘13

Vehicles (000s)

• Fiat brand sales up 160%, accounting for 44% of total sales increase

Fiat Viaggio continuing to gain momentum

• Strong performance of Jeep brand with 17 consecutive quarters of year-over-year growth

• Dodge brand sales boosted by re-introduced Journey

FY SALES +73%

FIAT BRAND IN CHINA

• Fiat dealership network continued to expand, nearly doubling to 200+ points of sale in 2013, covering a total of 126 cities across China

• Fiat Viaggio

Group best-selling vehicle in APAC in 2013

Positive market acceptance driven by design and equipment levels

Viaggio One-year Anniversary Special Edition and Shining Edition debuted at Chengdu Auto Show and Guangzhou Auto Show, respectively

• Fiat Ottimo

Hatchback version of Fiat Viaggio, to roll out to Chinese dealerships in early 2014

Second Fiat vehicle locally produced in China

Global premiere at Guangzhou Auto Show in November

7-speed dual-clutch transmission powered by 1.4T-JET engine


Business environment overview Moving on & up

(207)

(138)

(238)

(120)

(703)

(157)

(98)

(165)

(50)

(470)

Q1 Q2 Q3 Q4 FY

2012 2013

24%

33% improvement

29%

31%

58%

TRADING PERFORMANCE (€MN)

Sustained improvement driven by:

• More favorable mix driven by product portfolio repositioning strategy

• Enhancement of industrial cost efficiencies

• Optimization of advertising spending by re-channelling resources to 500 family while reducing overall spending

• Continued tight grip on G&A costs

RE-FOCUS AND REALIGNMENT OF FIAT BRAND

• Structural shift of brand towards upper layer of core segments

Expanded 500 family with 500L, Trekking & Living variants, adding to iconic hatchback model (1+mn units sold in Europe since launch in 2007)

500 family now representing 33% of brand sales (20% in 2012)

Segment leadership in FY 2013 for 500 (A-Segment, first-time since launch) and 500L (Compact-MPV) in EU27+EFTA

3 out of 4 Fiat 500s sold outside Italy

Launch of 500X model in H2 2014

• Select utility vehicles to round out brand offerings, with Panda second best-selling vehicle in A-segment


Business environment overview Market outlook (mn units)

Note: APAC reflects aggregate for key markets where Group competes (i.e. China, India, Australia, Japan, South Korea)

4

15.9 >16

FY '13 FY '14E

1.8 ~1.8

FY '13 FY '14E

NAFTA

• Upwards trend for U.S. industry projected for 2014, but at lower rate than prior years

Both car and truck segments expected to increase

• 2013 Canada market was the highest ever

• Canada market in 2014 expected to be substantially in line with record levels reached in 2013

LATAM

Passenger cars LCVs

4.7 4.6

1.2 1.3

FY '13 FY '14E

5.9 5.9

1.4 ~1.4

0.12 ~0.1

FY '12 FY '13E

EMEA

Passenger cars LCVs

12.3 12.4

1.6 1.5

FY '13 FY '14E

EU27+EFTA

Overall industry (passenger car & LCV segments in aggregate) projected stable

• Passenger cars

Slight growth in EU27+EFTA (+0.5%) vs. prior year

Italy +3%; Germany +4%

• LCVs

Mid-single digit contraction in EU27+EFTA

Italy to perform in line with passenger car segment

APAC

FY '13 FY '14E

26.1 ~27.0

• Industry demand projected up ~4% driven by strong growth in China, India, South Korea and Australia, offset by contraction in Japan

• Group targeting to increase 40% in 2014 retail sales (incl. JVs)

Performance of Fiat, Jeep and Dodge brands to play key role in Group expansion activities

LATAM market in 2014 expected to perform in line with prior year

• Brazilian industry to grow ~3% underpinned by a projected GDP growth in line with prior year

• Argentina industry to decline double-digit due to import restrictions and higher sales tax on high-end segments


Q4 ‘12 Q4 ‘13

LATAM -15%

APAC +85%

NAFTA +20%

EMEA -5%

+8% 1,172 1,088

Business environment overview Group shipments (excl. JVs)

236

227

651

248

267

543

26

(units in thousands)

Note: Numbers may not add due to rounding; Graphs not to scale

4,352

979

2,238

163

FY ‘13

(units in millions)

FY ‘12

4,223

1,012

979

2,115

103

4

EMEA

LATAM

NAFTA

APAC

LATAM -3%

APAC +58%

NAFTA +6%

EMEA -3%

+3% 4.5-4.6

~1.0

~2.4

>0.2

FY ‘14E

4 Luxury +150%

48

10

14 22

950

Luxury +57%

0.9-1.0

Luxury 0.05


5 2014 Guidance for the Group (€bn, except EPS)

Note: Numbers may not add due to rounding; Graphs not to scale

2013 2014E

REVENUES

87

~93

2013 2014E

TRADING PROFIT

3.4 3.6-4.0

NET INDUSTRIAL DEBT

(6.6)

Year-end 2013

(2.7) (0.3)

Year-end 2014E

Year-end 2013

(Pro-forma)

(9.8-10.3) Purchase of

remaining 41.5% minority stake in

Chrysler from VEBA

Adoption of IFRS 11

CHANGES RELATIVE TO 2013 (1)

Industrial EBITDA: higher

Financial charges: stable

Positive change in Working Capital: lower

Capex: higher

(9.7)

(1) Includes first payment of $175mn to VEBA Trust under MoU regarding industrial cooperation principles with UAW

2013 2014E Recognition of deferred tax assets

2.0 1.5

(0.5)

Unusuals 2013 Normalized Net income

0.9

0.2-0.6

(0.5-0.7)

0.6-0.8

Trading profit

Taxes (principally deferred)

CHANGES RELATIVE TO 2013

Profit to the owners of the Parent

EPS

0.9

0.74

0.5-0.7

0.44-0.60

0.1

0.10

NET INCOME

APPENDIX


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


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

(3) Under IFRS, net interest cost is calculated by multiplying the net defined benefit liability (asset) by the discount rate used at the start of the annual period to measure the defined benefit liability (asset). Under U.S. GAAP, entities recognize the interest cost on the present value of the defined benefit liability (asset), using the discount rate, and an expected return on plan assets (EROA), which is the expected long-term rate of return on the market value of assets. Since the EROA is generally higher than the discount rate used to determine interest cost on the defined benefit obligation, the overall cost reflected in the income statement is generally higher under IFRS as compared to U.S. GAAP

(4) Under U.S. GAAP, curtailment gain and plan amendments were a net reduction to pension obligation offset in accumulated other comprehensive income

Twelve Months ended December 31, 2013

EURO (mn)

USD (mn)

Chrysler Net Income – IFRS (1) 2,392 3,176

Reconciling Items:

Capitalization of development costs, net of amortization (2)

(674) (895)

Pension/OPEB adjustments (3) 472 626

Other 52 68

(150) (201)

Unusual Items:

Pension plan changes (4) (166) (218)

(316) (419)

Chrysler Net Income - US GAAP 2,076 2,757


Dec 31, 2013

EURO (mn)

USD (mn)

Chrysler Net Debt - IFRS (215) (296)

Unamortized purchase accounting adjustments (1)

(424) (584)

Classification and other differences:

Accrued interest (218) (301)

Other 101 138

(541) (747)

Net Industrial Debt - US GAAP (756) (1,043)

(1) In connection with the May 24, 2011 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)


Financial charges breakdown

FY 2013 FY 2012

Avg. Outstanding

(€bn)

Rate (%)

P&L (€mn)

Avg. Outstanding

(€bn)

Rate (%)

P&L (€mn)

Capital Market (12.9) 7.0% (900) (12.0) 7.1% (849)

Other Financial Debt (1) (13.9) 6.6% (920) (13.7) 7.2% (990)

Gross Industrial Debt (26.8) 6.8% (1,820) (25.7) 7.2% (1,839)

Industrial Cash & Net Intersegment Financial Receivables (2)

19.4 0.8% 156 19.3 1.2% 230

Net Industrial Debt (3) (7.4) (1,664) (6.4) (1,609)

IAS 19 (interest cost on pension & OPEB)

(371) (388)

Equity Swap 31 34

Others (4) 40 78

Net Financial Charges (1,964) (1,885)

Note

(1) Include expense incurred in relation to sale of receivables, committed lines fees, hedges (2) Net of charges on sales of receivables intersegment and floor plan fees (3) Excluding derivatives fair values (4) Include FX gain/losses, interest cost capitalized (IAS23), bank fees and other financial charges Numbers may not add due to rounding


Fiat Group Fiat Group Fiat ex cl. Chrysler

Q4 2013 Q4 2012 (1) FY 2013 FY 2012 (1) FY 2013 FY 2012 (1)

(8,307) (6,694) Net Industrial (Debt)/Cash beginning of period (6,545) (5,529) (5,048) (2,449)

1,296 224 Net Income 1,951 896 (441) (1,048)

1,227 1,028 D&A 4,572 4,132 2,299 2,115

(365) 407 Change in Funds & Others (475) 617 (679) (36)

2,158 1,659 Cash Flow from Op. Activities bef. Chg. in W.C. 6,048 5,645 1,179 1,031

1,672 590 Change in Working Capital 1,464 694 1,129 (581)

3,830 2,249 Cash Flow from Operating Activities 7,512 6,339 2,308 450

(2,175) (2,254) Tangible & Intangible Capex (7,433) (7,530) (3,860) (3,219)

1,655 (5) Cash Flow from Operating Activities net of Capex 79 (1,191) (1,552) (2,769)

(23) 122 Change in Investments, Scope & Others (183) 292 (308) 247

1,632 117 Net Industrial Cash Flow (104) (899) (1,860) (2,522)

(1) 2 Capital Increase / Share Repurchases / Dividends (3) (36) 3 (36)

27 30 FX Translation Effect 3 (81) 41 (41)

1,658 149 Change in Net Industrial Debt (104) (1,016) (1,816) (2,599)

(6,649)2 (6,545) Net Industrial (Debt)/Cash end of period (6,649)2 (6,545) (6,864) (5,048)

(1) Restated for adoption of IAS 19 as amended

(2) Opening balance on Jan 1, 2014 higher by €0.3bn due to adoption of IFRS 11

Note: Numbers may not add due to rounding

Detailed cash flow (€mn)



Sept. 30, 2013

Dec. 31, 2013

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

19.1 15.9 3.3 Gross Debt* 20.3 17.0 3.4

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

(8.6) (8.4) (0.2) Cash & Mktable Securities (10.0) (9.8) (0.2)

10.2 7.1 3.1 Net Debt 10.0 6.9 3.1

* Net of intersegment receivables

Fiat excl. Chrysler Net debt breakdown (€bn)



Outstanding Sept 30, ‘13

Outstanding Dec. 31, ‘13

18.4 Cash Maturities 19.3

5.8 Bank Debt 6.2 11.4 Capital Market 11.9 1.2 Other Debt 1.2

0.4 Asset-backed financing 0.6

0.0 ABS / Securitization 0.0 0.0 Warehouse Facilities 0.0 0.4 Sale of Receivables 0.6

0.3 Accruals & Other Adjustments 0.4

19.1 Gross Debt 20.3

(8.6) Cash & Mktable Securities (10.0)

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

10.2 Net Debt 10.0

2.1 Undrawn committed credit lines 2.1

Fiat excl. Chrysler Gross debt (€bn)


Outstanding Sept 30, ‘13

Outstanding Dec 31, ‘13

9.6 Cash Maturities 9.4

2.6 Bank Debt 2.5

2.4 Capital Market 2.3

4.7 Other Debt 4.5

0.0 Asset-backed financing 0.0

0.0 ABS / Securitization 0.0

0.1 Accruals & Other Adjustments 0.2

9.8 Gross Debt 9.5

(8.5) Cash & Mktable Securities (9.7)

(0.1) Derivatives (Assets)/Liabilities (0.1)

1.2 Net Debt (0.2)

1.0 Undrawn committed credit lines 0.9


Chrysler Gross debt (€bn)


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


Fiat ex Chrysler 2014 2015 2016 2017 2018 Beyond

6.2 Bank Debt 2.5 1.7 0.9 0.4 0.4 0.4

11.9 Capital Market 2.3 2.0 2.3 2.2 1.9 1.3

1.2 Other Debt 0.8 0.0 0.0 0.0 0.0 0.3

19.3 Total Cash Maturities 5.6 3.7 3.2 2.7 2.2 1.9

10.0 Cash & Mktable Securities

2.1 Undrawn committed credit lines

12.1 Total Available Liquidity

3.6 Sale of Receivables (IFRS de-recognition compliant)

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


Chrysler 2014 2015 2016 2017 2018 Beyond

2.5 Bank Debt 0.0 0.0 0.0 2.1 0.1 0.2

2.3 Capital Market 0.0 0.0 0.0 0.0 0.0 2.3

4.5 Other Debt 0.3 0.3 0.4 0.4 0.4 2.7

9.4 Total Cash Maturities 0.4 0.4 0.4 2.5 0.5 5.3

9.7 Cash & Mktable Securities

0.9 Undrawn committed credit lines

10.6 Total Available Liquidity

Debt maturity schedule (€bn)


GROUP INVESTOR RELATIONS TEAM

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

Maristella Borotto +39-011-006-2709

Francesca Ferragina +39-011-006-2308

Timothy Krause +1-248-512-2923

Paolo Mosole +39-011-006-1064

fax: +39-011-006-3796

email: [email protected]

websites: www.fiatspa.com

www.chryslergroupllc.com

Contacts

q4 fy 2013_results

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