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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 .
January 29, 2014 Q4 & FY 2013 Results Review 3
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
January 29, 2014 Q4 & FY 2013 Results Review 4
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
January 29, 2014 Q4 & FY 2013 Results Review 5
New corporate identity
January 29, 2014 Q4 & FY 2013 Results Review 6
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
January 29, 2014 Q4 & FY 2013 Results Review 7
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
January 29, 2014 Q4 & FY 2013 Results Review 8
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
January 29, 2014 Q4 & FY 2013 Results Review 9
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)
January 29, 2014 Q4 & FY 2013 Results Review 10
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
January 29, 2014 Q4 & FY 2013 Results Review 11
• 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
January 29, 2014 Q4 & FY 2013 Results Review 12
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%
January 29, 2014 Q4 & FY 2013 Results Review 13
(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
16 January 29, 2014 Q4 & FY 2013 Results Review
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)
17 January 29, 2014 Q4 & FY 2013 Results Review
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
18 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands Highlights
FINANCIAL PERFORMANCE
• 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%
COMMERCIAL PERFORMANCE & HIGHLIGHTS
• 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
19 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands EBIT walk
€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
FY 2013 Volume & Mix
20 January 29, 2014 Q4 & FY 2013 Results Review
QUARTERLY MARKET SHARE
(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.)
Mass-market brands Market trends & business dynamics
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
21 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands Market trends & business dynamics
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)
FINANCIAL PERFORMANCE
• 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
COMMERCIAL PERFORMANCE & HIGHLIGHTS
• 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
22 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands EBIT walk
€mn
FY 2012 Net price Industrial costs
SG&A Investments / FX / Other
FY 2013 Volume & Mix
• 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)
23 January 29, 2014 Q4 & FY 2013 Results Review
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)
Mass-market brands Market trends & business dynamics
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%
QUARTERLY MARKET SHARE
(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%
24 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands Highlights
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)
FINANCIAL PERFORMANCE
• 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)
COMMERCIAL PERFORMANCE & HIGHLIGHTS
• 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
25 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands EBIT walk
€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)
FY 2012 Net price Industrial costs
SG&A FY 2013 Volume & Mix
Investments / FX / Other
(737)
(520)
77
(172)
139
199
(26)
26 January 29, 2014 Q4 & FY 2013 Results Review
2.8 3.0
12.3
Q4 '12 Q4 '13 FY '13
QUARTERLY MARKET SHARE
(%)
INDUSTRY VOLUME & OUTLOOK (MN UNITS)
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
27 January 29, 2014 Q4 & FY 2013 Results Review
Mass-market brands LCVs: market trends & business dynamics
QUARTERLY MARKET SHARE*
(%)
INDUSTRY VOLUME & OUTLOOK (MN UNITS)
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%
28 January 29, 2014 Q4 & FY 2013 Results Review
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
29 January 29, 2014 Q4 & FY 2013 Results Review
• 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
30 January 29, 2014 Q4 & FY 2013 Results Review
4 Business environment overview
31 January 29, 2014 Q4 & FY 2013 Results Review
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
32 January 29, 2014 Q4 & FY 2013 Results Review
• 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
34 January 29, 2014 Q4 & FY 2013 Results Review
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
35 January 29, 2014 Q4 & FY 2013 Results Review
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
36 January 29, 2014 Q4 & FY 2013 Results Review
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
37 January 29, 2014 Q4 & FY 2013 Results Review
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
January 29, 2014 Q4 & FY 2013 Results Review 39
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
January 29, 2014 Q4 & FY 2013 Results Review 40
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
January 29, 2014 Q4 & FY 2013 Results Review 41
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)
January 29, 2014 Q4 & FY 2013 Results Review 42
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
January 29, 2014 Q4 & FY 2013 Results Review 43
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)
January 29, 2014 Q4 & FY 2013 Results Review 44
Note: Numbers may not add due to rounding
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)
January 29, 2014 Q4 & FY 2013 Results Review 45
Note: Numbers may not add due to rounding
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)
January 29, 2014 Q4 & FY 2013 Results Review 46
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
Note: Numbers may not add due to rounding
Chrysler Gross debt (€bn)
January 29, 2014 Q4 & FY 2013 Results Review 47
Note: Numbers may not add due to rounding; total cash maturities excluding accruals
Outstanding Dec. 31, ‘13
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)
Outstanding Dec. 31, ‘13
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)
January 29, 2014 Q4 & FY 2013 Results Review 48
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: investor.relations@fiatspa.com
websites: www.fiatspa.com
www.chryslergroupllc.com
Contacts