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Page 1: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016

Q2 2016 Results July 27, 2016

Page 2: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 2

This document, and in particular the section entitled “2016

guidance – revised upwards”, contains forward-looking

statements. These statements may include terms such as

“may”, “will”, “expect”, “could”, “should”, “estimate”,

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

“objective”, “goal”, “forecast”, “projection”, “outlook”,

“prospects”, “plan”, “intend”, or similar terms. Forward-

looking statements are not guarantees of future

performance. Rather, they are based on the Group’s current

expectations and projections about future events and, by

their nature, are subject to inherent risks and uncertainties.

They relate to events and depend on circumstances that may

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

reliance should not be placed on them. Actual results may

differ materially from those expressed in such statements as a

result of a variety of factors, including: the Group’s ability to

reach certain minimum vehicle volumes; developments in

global financial markets and general economic and other

conditions; changes in demand for automotive products,

which is highly cyclical; the Group’s ability to enrich the

product portfolio and offer innovative products; the high

level of competition in the automotive industry; the Group’s

ability to expand certain of the Group’s brands

internationally; changes in the Group’s credit ratings; the

Group’s ability to realize anticipated benefits from any

acquisitions, joint venture arrangements and other strategic

alliances; potential shortfalls in the Group’s defined benefit

pension plans; the Group’s ability to provide or arrange for

adequate access to financing for the Group’s dealers and

retail customers; the Group’s ability to access funding to

execute the Group’s business plan and improve the Group’s

business, financial condition and results of operations;

various types of claims, lawsuits and other contingent

obligations against the Group; disruptions arising from

political, social and economic instability; material operating

expenditures in relation to compliance with environmental,

health and safety regulation; developments in labor and

industrial relations and developments in applicable labor

laws; increases in costs, disruptions of supply or shortages

of raw materials; exchange rate fluctuations, interest rate

changes, credit risk and other market risks; political and

civil unrest; earthquakes or other disasters and other risks

and uncertainties.

Any forward-looking statements contained in this

document speak only as of the date of this document and

the Company does not undertake any obligation to update

or revise publicly forward-looking statements. Further

information concerning the Group and its businesses,

including factors that could materially affect the

Company’s financial results, is included in the Company’s

reports and filings with the U.S. Securities and Exchange

Commission, the AFM and CONSOB.

Safe Harbor Statement

Page 3: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 3

Group overview

Mass-market brands by region

Luxury brand - Maserati

Components

Industry outlook & guidance

Appendix

Page 4: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 4

Q2 ’16 highlights

Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Adjusted EBIT margin improved in all regions and Components

Strong cash flow in the quarter with €1.1B reduction in Net industrial debt

Google and FCA enter into first-of-its-kind collaboration

FCA will initially design and engineer ~100 Chrysler Pacifica hybrids uniquely built for Google’s self-driving technology

Both companies to co-locate engineering teams to accelerate design, testing and manufacturing

Moody’s corporate credit rating upgrade – “Stable” outlook

Rating raised to “Ba3” from “B1”

Rating raised to “B1” from “B2” on bonds issued or guaranteed by FCA

NAFTA capacity realignment plan proceeding on schedule

Increased capacity for Jeep and Ram brands starting from Q2 ’17

Commercial launches of all-new Alfa Romeo Giulia and Maserati Levante in Europe

Another key milestone in luxury and premium brand strategies

U.S. launches planned for H2

2016 FY guidance revised upwards due to strong H1 operating performance

Net revenues raised to >€112B from >€110B

Adjusted EBIT raised to >€5.5B from >€5.0B

Adjusted net profit raised to >€2.0B from >€1.9B

Net industrial debt <€5.0B confirmed

Page 5: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 5

New products

• All-new hatchback version along with previously launched Tipo sedan and station wagon models marks comeback of Fiat brand to the C-segment (second largest segment in EU)

• Targets budget conscious consumers with a product providing “skills-no-frills” concept

• Hatchback launched in Q2 ’16 in Europe

• 4x4 and 4x2 with 1 metric ton payload and 3,100 kg towing capacity to fully address customer needs in mid-size pickup segment

• Offered in Europe with gasoline or diesel engine, both available with manual or automatic transmission

• Available from Q2 ‘16 in main European markets

• The flagship Maserati model has a restyled exterior, interior refinements and additional high-tech features

• Model line has been expanded with the introduction of the new GranLusso and GranSport trim levels

• Available from Q2 ‘16 in main European markets

Page 6: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 6 July 27, 2016

• Net financial charges down due to debt reduction and refinancing at lower rates, with taxes included in Adjusted net profit flat

• Net profit was €321M vs €257M in Q2 ’15

Q2 ‘16 summary *

• Shipments down 1% driven by APAC due to transition to localized Jeep production in China

• Combined shipments (including JVs) up 1% to 1,233k units with increase in EMEA, partially offset by LATAM reduction

Shipments (000s units)

1,191

1,175

2015

2016

Q2

Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics. Figures may not add due to rounding.

* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015. Refer to the Appendix for a reconciliation of these results to amounts previously reported.

• Net revenues down 2%

• Up 1% at constant exchange rates (CER)

Net revenues (€M)

28,540

27,893

2015

2016

Q2

• Adjusted EBIT up 16%, with margin at 5.8% vs 4.9% in Q2 ‘15

• EBIT was €1,060M vs €1,226M in Q2 ’15, primarily due to charges for

Takata airbag inflator recalls excluded from Adjusted EBIT

Adjusted EBIT (€M)

1,401

1,628

2015

2016

Q2

• Net industrial debt reduced by €1.1B from Mar 31 ‘16

due to strong cash generation from operations

Net industrial debt (€B)

• Available liquidity stable at €24.7B with cash generation from operations

offsetting debt reduction (including €1B bond repaid at maturity)

Available liquidity (€B)

24.7

24.3

YTD

2,261

2,284

YTD

54,463

54,383

YTD

3,007

2,101 18.4

18.6

5.9

6.2 Jun 30 ‘16

Mar 31 ‘16

Undrawn committed credit lines Cash & Marketable Securities

6.6

5.5 Jun 30 ‘16

Mar 31 ‘16

Adjusted net profit (€M)

Q2

372

709

2015

2016

YTD

1,237

403

Page 7: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 7 July 27, 2016

Q2 ‘16 Adjusted EBIT walk by segment *

* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015.

Refer to the Appendix for a reconciliation of these results to amounts previously reported.

€M % = Adjusted EBIT margin

1,401 47 79

(5)

86

(7)

15 12 1,628

Q2 '15 NAFTA LATAM APAC EMEA Maserati Components Other & Eliminations

Q2 '16

B/(W) than

Q1 ‘16 147 (11) 30 47 20 25 (9) 249

4.9%

5.8%

Page 8: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 8 July 27, 2016

1,401

359 15

(99) (76)

28 1,628

Q2 '15 Volume & Mix Net price Industrial costs SG&A Other Q2 '16

Q2 ‘16 Adjusted EBIT walk by operational driver *

B/(W) than

Q1 ‘16 284 177 12 (163) (61) 249

* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015.

Refer to the Appendix for a reconciliation of these results to amounts previously reported.

4.9%

5.8%

€M % = Adjusted EBIT margin

Page 9: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 9

Q2 ‘16 Net industrial debt walk

Q2 ’16 Change in Net industrial debt 1,119 €M

(6,593) 3,121

(570)

131

1,180

(2,052)

(691)

(5,474)

Mar 31 '16 Adjusted

industrial

EBITDA

Financial

charges and

taxes *

Change

in funds

& other

Working

capital

Capex Scope, FX &

dividend

Jun 30 '16

* Net of IAS 19

YTD ‘16 5,877 (1,204) 105 (136) (3,872) (1,195)

Q2 ’16 Cash flows from operating activities, net of Capex 1,810

YTD ’16 Change in Net industrial debt -425

YTD ’16 Cash flows from operating activities, net of Capex 770

Page 10: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 10

NAFTA

Q2 ‘16 Q2 ‘15 ∆

Sales (k units) 698 686 2%

Market share 12.5% 12.4% 10 bps

U.S. dealer inventory (days of supply) 75 74 1 d/s

Shipments (k units) 666 677 (2%)

Net revenues (€M) 17,479 17,186 2%

o Industry sales down 1% in U.S. and up 3% in Canada, with Group sales up 2% in the region

U.S. sales up 2% to 589k vehicles with share up 30 bps to

12.7%; Jeep and Ram sales up 12% and 10%, respectively

U.S. dealer days of supply decreased to 75 vs 83 days at

end of Q1 ‘16

U.S. fleet mix at 24% vs 21% in Q2 ‘15 with improved

channel and model mix

In Canada, maintained market leadership with sales of

90k units, up 4%; market share at 15.2%

Mexico sales down 3% to 19k units

o Shipments in U.S. down 7k units (-1%) with Canada flat and Mexico down 4k units (-17%)

o Net revenues up 2% (+4% at CER), due to improved mix and net pricing, partially offset by unfavorable FX

Adjusted EBIT walk (€M)

%= Adjusted EBIT margin

Sales data represents sales to retail and fleet customers and limited deliveries to Group-related persons.

Sales by dealers to customers are reported through a new vehicle delivery system. Reporting methodology

consistent with FCA US press release issued July 26, 2016. U.S. dealer inventory days of supply calculated

using total sales including fleet.

o Mix favorability primarily driven by improved truck and SUV model mix

o Positive net pricing actions more than offset by negative FX transaction impact from CAD and MXN

o Purchasing efficiencies more than offset by higher product costs for content enhancements and higher manufacturing and D&A costs

o Adjusted EBIT excludes total charges of €519M related to Takata airbag inflator recalls and incremental costs for NAFTA capacity realignment plan

7.7%

1,327 1,374

251

(32) (137) (19) (16)

Q2 '15 Volume &

Mix

Net price Industrial

costs

SG&A Other Q2 '16

B/(W)

Q1 ‘16 56 161 66 (67) (69) 147

7.7% 7.9%

Page 11: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 11 July 27, 2016

o Industry down 12% due to continued macroeconomic weakness

Brazil industry down 22% y-o-y, Argentina up 12%

o Continued as market leader in Brazil with share at 17.8%

Jeep Renegade and all-new Fiat Toro continued strong performance in Brazil with segment share of 23.8% and 76.0%, respectively

Shipments in Brazil down 29k units (-25%), Argentina up 1k units (+8%)

o Net revenues down 9% at CER due to lower volumes, partially offset by better product mix

o Mix improvement driven primarily by newly launched Fiat Toro, more than offset by lower volumes due to poor market conditions in Brazil

o Lower industrial costs mainly due to non-repeat of launch costs in prior period, partially offset by input cost inflation

o SG&A improvement driven primarily by continued cost reduction initiatives to rightsize to market volume

o Other primarily reflects FX translation impact mainly due to Brazilian Real

Adjusted EBIT walk (€M)

%= Adjusted EBIT margin

B/(W)

Q1 ‘16 (9) 28 (15) (13) (2) (11)

Q2 ‘16 Q2 ‘15 ∆

Sales (k units) 112 143 (22%)

Market share 12.5% 14.0% (150) bps

Inventories (days of supply) 41 39 2 d/s

Shipments (k units) 112 138 (19%)

Net revenues (€M) 1,469 1,851 (21%)

LATAM

(4.3)%

(79)

3 9

49 6

12 0

Q2 '15 Volume &

Mix

Net price Industrial

costs

SG&A Other Q2 '16

(4.3)%

Page 12: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 12 July 27, 2016

APAC

o Industry demand increased 7% with China +9%,

South Korea +14%, India +7%, Australia +4%, Japan -2%

o Group sales flat

China +17% and Japan +21%, both outperforming their

respective industries

Australia -54% due to price increases to offset AUD

weakness, South Korea -15% and India -35%

Jeep brand (73% of regional Group sales) +32% y-o-y

driven by strong sales of locally produced Jeep Cherokee

in China

o Shipments -50% due to transition to localized Jeep production

o Net revenues -34% at CER primarily as a result of lower shipments, partially offset by favorable vehicle mix

o Volume & mix decrease driven by reduced shipments due to transition to Jeep localized production in China and lower volumes in Australia due to pricing actions to offset negative FX impacts

o Industrial costs improved due to localization of Jeep production

o SG&A improved primarily due to lower direct marketing expenses, now incurred by China JV

o Other primarily reflects improved results from China JV

APAC market share reflects aggregate for major markets where Group competes (China, Australia, Japan,

South Korea and India). Market share is based on retail registrations except in India where market share is

based on wholesale volumes.

Adjusted EBIT walk (€M)

%= Adjusted EBIT margin

B/(W)

Q1 ‘16 26 (9) 7 (7) 13 30

xx%

3.1%

Q2 ‘16 Q2 ‘15 ∆

Sales (k units) Of which China JV sales

55 30

55 10

- 200%

Market share 0.8% 0.8% -

Inventories (days of supply) 114 158 (44) d/s

Shipments (k units) 23 46 (50%)

Net revenues (€M) 957 1,523 (37%)

4.4%

2.2%

47

(71)

2

21

25

18 42

Q2 '15 Volume &

Mix

Net price Industrial

costs

SG&A Other Q2 '16

3.1% 4.4%

Page 13: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results 13 July 27, 2016

EMEA

Passenger Cars

o EU28+EFTA (EU) industry up 10% to 4.2M units with

growth in all major markets: Spain and Italy +17%,

France +8%, Germany +9% and UK +1%

o EU sales up 17% to 285k units. EU market share up 40 bps

driven by increases in Italy and Spain (+60 bps each),

UK (+20 bps), France and Germany (+10 bps each)

o Shipments of 292k (+13%)

LCVs

o EU industry up 14% to 573k units with growth in all major

markets: Italy +26%, France +15%, Spain +18%,

Germany +12% and UK +5%

o EU sales up 13% to 74k units with market share down 10 bps

o Shipments of 75k (+16%)

o Volume increase and favorable mix driven by Fiat 500

and Tipo vehicle families, and LCVs

o Positive net price driven by pricing actions and positive FX impact offsetting increased incentives in EU

o Industrial costs improvement due to manufacturing and purchasing efficiencies, partially offset by higher R&D and D&A costs

o Higher SG&A primarily due to increased advertising to support new product launches

Adjusted EBIT walk (€M)

%= Adjusted EBIT margin

57

142 7 9

(76)

4 143

Q2 '15 Volume &

Mix

Net price Industrial

costs

SG&A Other Q2 '16

2.5%

1.0%

B/(W)

Q1 ‘16 127 12 (33) (67) 8 47

Q2 ‘16 Q2 ‘15 ∆

Sales (k units) 407 359 13%

EU Market share - passenger cars 6.8% 6.4% 40 bps

EU Market share - LCVs 12.9% 13.0% (10) bps

Inventories (days of supply) 57 57 -

Shipments (k units) 367 322 14%

Net revenues (€M) 5,770 5,470 5%

Page 14: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 14

Luxury brand Maserati

Q2 ‘16 Q2 ’15 ∆

Shipments 6,912 8,281 (17%)

Net revenues (€M) 579 610 (5%)

Adjusted EBIT (€M) 36 43 (16%)

Commercial Performance

o Shipments down due to lower volumes in North America (-26%) and Europe (-17%), partially offset by increase in China (+20%)

Financial Performance

o Net revenues decrease mainly due to lower volumes,

partially offset by favorable vehicle and market mix

and positive FX impacts

o Adjusted EBIT down due to lower volumes, higher

industrial and SG&A costs for all-new Levante and

restyled Quattroporte launch activities, partially

offset by favorable mix and FX

o Q2 ’16 Adjusted EBIT margin at 6.2%, double Q1 ’16

margin of 3.1%

Q2 ‘16 Shipments By Market

North

America

35%

Europe

Top-5

18%

Greater

China

28%

Japan

3%

Others

16%

All-new Levante

“Creates a whole new class of SUV” European commercial launch in Q2

Page 15: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 15

2,549

2,430

Q2 '15

Q2 '16

Components

o Net revenues reflects higher volumes at Magneti Marelli, more than offset by volume

reduction at Comau and unfavorable FX impacts

o Adjusted EBIT increase reflects higher volumes and favorable mix, partially offset

by increased industrial costs. Adjusted EBIT margin improvement attributable

to Magneti Marelli.

o Magneti Marelli order intake was €603M in line with Q2 ’15, with non-captive

orders at 57%

o Comau order backlog was €1.2B, up €186M from March 31, 2016

96

111

Q2 '15

Q2 '16

Adjusted EBIT

(€M)

Margin

4.6%

3.8%

Net revenues

Page 16: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 16

NAFTA (passenger cars, UVs, pickup trucks & LCVs)

LATAM (passenger cars & LCVs)

APAC

(passenger cars only)

EMEA (EU28+EFTA) (passenger cars & LCVs)

FY '15

FY '16E

FY '15

FY '16E

FY '15

FY '16E

Industry outlook

28.9 - 29.4

21.1

21.0 – 21.5 3.6 - 4.1

4.1

16.1 – 16.6

16.1

M units

Forecast unchanged

U.S. industry remains strong

Forecast unchanged

Modest industry growth continues

Forecast unchanged

H1 ‘16 trend indicates high-end of range with minimal impact expected from Brexit

Forecast unchanged – awaiting resolution of impeachment process expected in Aug ‘16

Continued weak market conditions indicates low-end of range

FY '15

FY '16E 28.9 – 29.4

28.2

Page 17: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

17 Q2 2016 Results July 27, 2016

2016 guidance – revised upwards

>€110B Net revenues

>€5.0B Adjusted EBIT

>€1.9B Adjusted net profit

<€5.0B Net industrial debt

Raised to >€112B

Raised to >€5.5B

Raised to >€2.0B

Confirmed

Original Revised

Page 18: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 18

APPENDIX

Page 19: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 19

FCA 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. Group management believes

these supplemental financial measures provide comparable

measures of its financial performance which then facilitate

management’s ability to identify operational trends, as well as

make decisions regarding future spending, resource

allocations and other operational decisions.

Supplemental financial measures

FCA’s supplemental financial measures are defined as follows:

Adjusted Earnings Before Interest and Taxes (“Adjusted

EBIT”) is computed as EBIT excluding: gains/(losses) on the

disposals of investments, restructuring, impairments, asset

write-offs and other unusual items that are considered rare

or discrete events that are infrequent in nature

Adjusted Net Profit is calculated as Net Profit excluding

after-tax impacts of the same items excluded from

Adjusted EBIT

Adjusted Earnings Before Interest, Taxes, Depreciation and

Amortization (“Adjusted EBITDA”) is computed starting

with Adjusted 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

Page 20: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

20 Q2 2016 Results July 27, 2016

Key performance metrics

€M

Three months ended June 30, Six months ended June 30,

2016 2015 2016 2015

1,175 1,191 Worldwide shipments (units ‘000) 2,261 2,284

27,893 28,540 Net revenues 54,463 54,383

1,060 1,226 EBIT 2,367 1,922

(568) (175) Adjustments (640) (179)

1,628 1,401 Adjusted EBIT 3,007 2,101

79 45 Of which: Result from investments 141 95

(491) (619) Net financial expenses (1,003) (1,227)

569 607 Profit before taxes 1,364 695

(248) (350) Tax expense (565) (411)

321 257 Net profit 799 284

709 372 Adjusted net profit 1,237 403

Page 21: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

21 Q2 2016 Results July 27, 2016

Reconciliation of Adjusted EBIT to EBIT and Adjusted net profit to Net profit

Adjusted EBIT to EBIT

Three months ended June 30, Six months ended June 30,

2016 2015 2016 2015

1,628 1,401 Adjusted EBIT 3,007 2,101

(414) — Recall campaigns - airbag inflators (414) —

(105) — NAFTA capacity realignment (156) —

— (80) Venezuela currency devaluation (19) (80)

— (81) U.S. National Highway Traffic Safety Administration

(NHTSA) consent order — (81)

(60) (8) Restructuring costs (67) (12)

— (4) Impairment expense — (4)

5 — Gains on disposal of investments 5 —

6 (2) Other 11 (2)

(568) (175) Total adjustments (640) (179)

1,060 1,226 EBIT 2,367 1,922

Adjusted net profit to Net profit

Three months ended June 30, Six months ended June 30,

2016 2015 2016 2015

709 372 Adjusted net profit 1,237 403

(568) (175) Adjustments (as above) (640) (179)

180 60 Tax impact on adjustments 202 60

(388) (115) Total adjustments, net of taxes (438) (119)

321 257 Net profit 799 284

€M

Page 22: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

22 Q2 2016 Results July 27, 2016

Reconciliation of Net industrial debt to Debt

Jun 30 ‘16 Mar 31 ‘16 Dec 31 ‘15

Net industrial debt 5,474 6,593 5,049

Net financial services debt 1,689 1,442 1,499

Net debt 7,163 8,035 6,548

Intercompany financial receivables/(payables), net — — (39)

Current financial receivables from jointly-controlled

financial services companies 50 35 16

Other financial assets/(liabilities), net (397) 63 117

Current securities 414 459 482

Cash and cash equivalents 18,144 17,963 20,662

Debt 25,374 26,555 27,786

€M

Page 23: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

23 Q2 2016 Results July 27, 2016

Reconciliation of results for Ferrari separation

Results excluding

Ferrari (as reported

herein)

Ferrari, net of

intercompany

Results including

Ferrari (previously reported)

Results excluding

Ferrari (as reported

herein)

Ferrari, net of

intercompany

Results including

Ferrari (previously reported)

1,191 2 1,193 Shipments (units ‘000) 2,284 4 2,288

28,540 688 29,228 Net revenues 54,383 1,241 55,624

1,226 122 1,348 EBIT 1,922 218 2,140

1,401 124 1,525 Adjusted EBIT 2,101 224 2,325

257 76 333 Net profit 284 141 425

The following is a reconciliation of the Group's results as reported herein for the three and six months ended June 30, 2015 (re-

presented to exclude Ferrari) to the Group's results previously reported. The amounts presented in the table below are not

representative of the income statement of Ferrari on a stand-alone basis, as these amounts are net of transactions between

Ferrari and other companies of the Group

Six months ended June 30, 2015 Three months ended June 30, 2015

€M

Page 24: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

24 Q2 2016 Results July 27, 2016

YTD Adjusted EBIT walk *

673 155

(58)

157

(27)

33

(27)

3,007

H1 '15 NAFTA LATAM APAC EMEA Maserati Components Other & Eliminations

H1 '16 YTD

Jun 30 ‘15

YTD

Jun 30 ‘16

€M

2,101

2,101

650 143 4 34 75 3,007

Volume & Mix

Net price Industrial costs

SG&A Other YTD

Jun 30 ‘15

YTD

Jun 30 ‘16

* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015.

Refer to the Appendix for a reconciliation of these results to amounts previously reported.

Page 25: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 25

11.5 12.2 12.4 12.7

15.1 15.3 15.1 15.2

Market Share - mass-market brands

LATAM

12.8

15.8

12.2 11.5

22.120.9 19.0 17.8

LCV

Passenger

Cars

LCV

Passenger Cars

EMEA

Q2 ‘13 Q2 ‘14 Q2’ 15 Q2 ‘16

Q2 ‘13 Q2 ‘14 Q2’ 15 Q2 ‘16

%

NAFTA

Q2 ‘13 Q2 ‘14 Q2’ 15 Q2 ‘16

Market share is based on retail registrations except in India where market share is based

on wholesale volumes

Q2 ‘13 Q2 ‘14 Q2’ 15 Q2 ‘16

0.7

1.2

0.8 1.0

2.5

3.93.5

1.5

0.4

0.3 0.20.4

0.4

0.4 0.5

0.3

APAC

29.2 27.9 28.6 29.2

43.6 44.5 45.1 43.9

6.3 6.1 6.4 6.8

13.6 13.0 13.0 12.9

Page 26: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

26 Q2 2016 Results July 27, 2016

Note: Numbers may not add due to rounding

* Represents total cash maturities excluding accruals

Outstanding

Jun 30 ‘16 6M 2016 2017 2018 2019 2020 Beyond

9.6 Bank Debt 2.1 3.1 2.5 0.5 0.4 1.0

13.8 Capital Market 1.7 2.4 1.9 1.5 1.4 5.0

1.6 Other Debt 0.5 0.2 0.2 0.2 0.1 0.4

25.0 Total Cash Maturities* 4.3 5.7 4.5 2.2 1.9 6.4

18.6 Cash & Mktable Securities

6.2 Undrawn Committed Revolving

Facilities

24.7 Total Available Liquidity

5.8 Sale of Receivables (IFRS de-recognition compliant)

3.6 Of which receivables sold to financial services JVs (FCA Bank)

Debt maturity schedule

€B

Page 27: Q2 2016 Results - up.picr.deup.picr.de/26331018lu.pdf · Q2 2016 Results July 27, 2016 4 Q2 ’16 highlights Strongest Q2 performance ever with record Adjusted EBIT margin at 5.8%

Q2 2016 Results July 27, 2016 27

Investor Relations Team

Joe Veltri +1-248-576-9257 Vice President

Erin Banyas +1-248-512-3224

Francesca Ferragina +39-011-006-2308

Tim Krause +1-248-512-2923

Alois Monger +1-248-512-1549

Paolo Mosole +39-011-006-1064

fax: +39-011-006-3796

email: [email protected]

websites: www.fcagroup.com

www.fcausllc.com

Contacts


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