Turin, June 2010

The Iveco 2010-14 Plan

Paolo MonferinoIveco CEO

Turin, June 2010 2The Iveco 2010-14 Plan

Performance Over Last Plan Period

8,0 8,59,1

11,2 10,9

7,2

295 332546

813 838

1050,0

2,0

4,0

6,0

8,0

10,0

12,0

2004* 2005 2006 2007 2008 2009

Net

reve

nues

(€bn

)

0

400

800

1200

1600

2000

Trad

ing

prof

it (€

mn)

*Pro-forma excluding FPT segment

Trading margin 3.7% 3.9% 6.0% 7.3% 7.7% 1.5%

Net revenues (€bn) ~9.0 ~9.0 ~9.5

Trading profit (€mn) 640-710 670-740 800-870

Trading margin 7.1-7.9% 7.4-8.2% 8.4-9.2%4.0-7.5% operating margin range

2004 – 2007 Plan Targets 2006 – 2010 Plan Targets

Net revenues 2003-2007CAGR +6.6%

Turin, June 2010 3The Iveco 2010-14 Plan

2006Net Sales: €9.1bn

2009Net Sales: €7.2bn

Medium Heavy Bus Special VehiclesLight

2008Net Sales: €10.8bn

Revenues by Business Area

Enlarged product portfolio providing resilience

27%

12%

37%

14%

10%25%

12%

41%

12%

10%25%

14%

30%

17%

14%

Turin, June 2010 4The Iveco 2010-14 Plan

Growing Latin American positionBrazil positive market trendComplete product rangeExtensive distribution system

2010-2014 Plan4 Pillars

Recovery of traditional markets in EU

New productsEfficient Industrial footprintMarket and market share recovery

Trucks and Commercial Vehicles

Opportunities from leading position in China

Local profitabilityChinese products for exportEconomies of scale and cost saving opportunities

International Operations

Strengthening Special Vehicles and Buses

Development of Special VehiclesBus re-organisation

“Other” products

Achieving double-digit profitability

Turin, June 2010 5The Iveco 2010-14 Plan

1. Recovery of Traditional Markets in EU

Turin, June 2010 6The Iveco 2010-14 Plan

Light imported

2010 2011 2012 2013 2014

Light

Medium

Medium imported

Heavy

PRODUCT ACTIONS

Refresh / Legal

Major modification / Legal

Euro 5 LD Euro VI HD

New Model

New Daily in 2013New Heavy Line introduction in 2014 (modular & global product)China export products: PowerDaily & new cab over (“Leoncino”*)

•Historical and successful cab over in 1950s to 1970s manufactured by OM (Officine Meccaniche) a company merged for the foundation of Iveco in 1975

Product Plan - EMEA Markets

Currentmodel

Turin, June 2010 7The Iveco 2010-14 Plan

Iveco Innovations

Natural gas commercial vehicles

Pure electric commercial vehiclesDiesel - electric hybrid commercial vehicles

Turin, June 2010 8The Iveco 2010-14 Plan

Factors impacting Truck and Commercial Vehicle demand

during next 4 yearsEU freight by mode

Source: Automotive World – June 2009

European Market Drivers

Our goal:Back to 2008 volumes in a “normalised” market

Focus on network strengthsand service level

Customer concentration(distribution channel mix change)

Emission legislation(Euro VI in 2013)

Gradual need for replacementof existing park

Road freight dominant

Transport needs strongly correlated to GDP

0

500

1000

1500

2000

2500

3000

1970 1980 1990 2000 2010E 2020E 2030E

Bn

tons

-km

Road Rail Other

Turin, June 2010 9The Iveco 2010-14 Plan

Market trend forecast in line with consensus

European Market Trend

200

400

600

800

2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E

K U

nit

s

0

50

100

150

2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E

K U

nits

Western EuropeMarket ≥ 3.5t

Eastern EuropeMarket ≥ 3.5t

Eastern Europe excluding Russia, CIS countries and Bulgaria

Western Europe

Eastern Europe

Turin, June 2010 10The Iveco 2010-14 Plan

European Market Share

16,2%15,2%

14,0%14,5%

16,0%15,2% 14,8%

15,5%

17,0%17,1%17,6%

16,5%

2006 2007 2008 2009 2010E …… 2014E

11,4%10,3%

9,3% 9,5%

11,5%

11,8% 11,3% 11,2% 11,5%12,0%

10,9%

8,0%

2006 2007 2008 2009 2010E …… 2014E

24,9% 24,2% 24,5%26,0%

37,8%33,2%

30,5% 31,0% 31,0%

26,2%25,4%31,3%

2006 2007 2008 2009 2010E …… 2014E

Light(3,5-6,0t)

Heavy(≥16,0t)

Medium(6,01-15,99t)

Eastern Europe

Western Europe

Turin, June 2010 11The Iveco 2010-14 Plan

\Light

+ Imported Products(3,5-6,0t)

Heavy(≥16,0t)

Source: Iveco estimates (based on Export To)

Medium+ Imported

Products(6,01-15,99t)

Africa and Middle EastMarket and Market Share

6,9%

3,8% 3,4%4,6% 4,6%

6,0%

0

25

50

75

100

125

2006 2007 2008 2009 2010E …… 2014E0,0%

4,0%

8,0%

3,2% 3,0% 1,8%3,8% 3,8%

12,0%

0

25

50

75

100

125

2006 2007 2008 2009 2010E …… 2014E0,0%

4,0%

8,0%

12,0%

Increase dealer network coverage from 49 to ~80 points-of-sale by 2014

8,9% 8,9% 9,5%11,5% 11,5% 12,5%

0

25

50

75

100

125

2006 2007 2008 2009 2010E …… 2014E0,0%

4,0%

8,0%

12,0%

11,5

Market Share

Market (units)

Turin, June 2010 12The Iveco 2010-14 Plan

Plant Utilisation in Europe

Return to near complete utilisation of technical capacity with no additional investments required

83%

95%84%

35%

49%59%

73%80%

88%

2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E

x

Vehicles / Year191K

Note: Calculations based on Harbour definition

Turin, June 2010 13The Iveco 2010-14 Plan

Industrial Flexibility in Europe

270

100139 166

209 227249

0

50

100

150

200

250

300

2007A 2009A 2010E 2011E 2012E 2013E 2014E

+39%+20%

+26%+9%

+10%Production Volumes

(Base 100 = 2009)

126100 102 103 107 100 95

60

80

100

120

140

2007A 2009A 2010E 2011E 2012E 2013E 2014E

Fixed Industrial Costs(Base 100 = 2009)

7% average YoY efficiency over the Plan (mainly on the back of WCM Program)

Turin, June 2010 14The Iveco 2010-14 Plan

2. Growing Latin American Position

Turin, June 2010 15The Iveco 2010-14 Plan

Medium “Vertis”

Chinese platform

Heavy

2010 2011 2012 2013 2014

Light

Light imported

Medium imported

Medium “Cavallino”

Euro V

PRODUCT ACTIONS

Refresh

Major modification

New Model

Latin AmericaProduct Plan

Fully updated product offering including Chinese Vehicles

Turin, June 2010 16The Iveco 2010-14 Plan

Latin AmericaMarket and Market Share

Light CV(2,8-7,9t)

Medium CV(8,1-31,0t)

Heavy CV(>31,0t)

Significant growth opportunities leveraging on Brazil volumes

10,4%

8,3% 8,2%9,3%

13,0%

10,6%

0255075

100125

2006 2007 2008 2009 2010E …… 2014E8,0%

12,0%

3,3% 3,2% 4,1%4,3%

6,4% 9,8%

0255075

100125

2006 2007 2008 2009 2010E …… 2014E2,0%

6,0%

10,0%

11,3%14,5%

17,9%14,0%

15,8%21,4%

0255075

100125

2006 2007 2008 2009 2010E …… 2014E10,0%

14,0%

18,0%

22,0%

Market Share

Market (units)

Turin, June 2010 17The Iveco 2010-14 Plan

3. Strengthening Special Vehicles and Buses

Turin, June 2010 18The Iveco 2010-14 Plan

Keep on developing business by leveraging success of recent products and extending offering and geographical presence

DefenceConsolidate technological leadership in Protection Systems and Mobility Performance

Multirole product range completion

Growth outside traditional markets (€2.5bn contract with Brazilian Ministry of Defence)

Fire FightingEnlarge product range (Aircrash) to keep worldwide leadership

AstraLeveraging construction sector recovery

Special VehiclesKey Objectives

Net Revenues of ~ €1,4bn by 2014 (+40% vs. 2009)

Turin, June 2010 19The Iveco 2010-14 Plan

Product range rationalizationProduct standardization and cost reduction

Overlapping vehicles to be discontinued

New entry level coach to gain additional volumes

Re-balancing Industrial FootprintIndustrial cost optimization

WCM to improve efficiency

Entering new marketsNew Citybus versions to compete in non-domestic markets

Direct distribution in major markets

BusesKey Objectives

Turin, June 2010 20The Iveco 2010-14 Plan

Minibus

Intercity& Coach

Citibus

Iveco Irisbus Western Europe Market and Market Share (>= 3,5t)

Net revenues of ~ €1,6bn by 2014 (+30% vs. 2009)

25,8%

21,8%19,8%

21,9% 21,5% 23,0%

05

101520

2006 2007 2008 2009 2010E …… 2014E18,0%20,0%22,0%24,0%26,0%

19,3% 18,5%15,5% 14,1% 15,0%

19,5%

05

101520

2006 2007 2008 2009 2010E …… 2014E12,0%

16,0%

20,0%

24,0%

18,3% 19,3% 19,7% 19,5% 19,0%22,5%

05

101520

2006 2007 2008 2009 2010E …… 2014E12,0%

16,0%

20,0%

24,0%

Market Share

Market (units)

Turin, June 2010 21The Iveco 2010-14 Plan

4. Opportunities from Leading Position in China

Turin, June 2010 22The Iveco 2010-14 Plan

SFHEngines

Chongqing

Nanjing

A single partner

3 JVs: NAVECOSAIC-IVECO HONGYAN (SIH) SAIC-IVECO FPT HONGYAN (SFH)

Full localized range, including engines

(Iveco Share: 50%)

(Iveco Share: 33,5%)

Fiat Group Share: 60%

(Consolidated line by line in FPT)

ChinaIveco presence and product offer

SIHHCV Range

(GENLYON, TAMPA, T/T8)

NAVECO (Jiangning)Yuejin Range

NAVECO (Heimoying)Daily Range

Turin, June 2010 23The Iveco 2010-14 Plan

Serving domestic market

Increasing Network territorycoverage

2009 2014

JVs’ Export (units)* 1 k 31 k

Exporting to international markets

Leveraging supplier base for global sourcing

Targeting €300mn Annual Purchase Value in 2014

*Included in Iveco consolidated sales

Market by segment(K units)

Iveco estimates

Heavy

3,293CAGR

(2006-2014E)

11.8%

4.3%

9.6%

2,576

2,1541,923

Medium

Light

ChinaStrong platform for growth

2,581

1,632

951 1,1051,200

1,560 1,6841,984202

237 207

258268

282

307487 540

636707

748

2006 2007 2008 2009 2010E …… 2014E

Turin, June 2010 24The Iveco 2010-14 Plan

Common components and product investments well supported by total size

Looking at Iveco from a wider PerspectiveIveco + Chinese JVs consolidated volumes (pro-forma)

Iveco+JVs

Iveco+JVs

Iveco+JVs

Scania

Scania

Volvo

Volvo

Daimler

Daimler

Man

Man

Paccar

Paccar

0 100 200 300 400 500 600

2007

2009

2014E

Common components and product investments well supported by total size

Iveco+JVs

Iveco+JVs

Iveco+JVs

Scania

Scania

Volvo

Volvo

Daimler

Daimler

Man

Man

Paccar

Paccar

0 100 200 300 400 500 600

2007

2009

2014E

Turin, June 2010 25The Iveco 2010-14 Plan

Conclusions

Turin, June 2010 26The Iveco 2010-14 Plan

12,111,2

9,8

7,27,9

8,5

3,0%

4,2%

6,6%

8,4%

9,6%

1,5%

3,4%

7,4%

9,2%

10,4%

5,0%

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2009A 2010E 2011E 2012E 2013E 2014E

Ne

t R

even

ues

(€bn

)

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

Tra

din

g m

arg

in

Net Revenues Trading margin range - Low Trading margin range - High

2009-14 Financial Targets

Turin, June 2010 27The Iveco 2010-14 Plan

Our Roadmap to Double-Digit Profitability

• Market– Western & Eastern European markets restored to “normalized” level, but still below

2007 peak– Strengthening our position in Latin America with significant market growth in Light &

Medium segments and share gains across range– Full exploitation of Chinese platforms for export to Africa & Middle-East and Latin

America

• Substantially overhauled portfolio across all product ranges and geographies including Chinese trucks to complement range

• Major efficiency gains in manufacturing returning to around 90% capacity utilization by 2014

• Significant growth in Special Vehicles and realignment of product portfolio in Buses resulting in manufacturing efficiencies

• Strategic platform to become part of a leading capital goods company within Fiat Industrial