2. Safe Harbor Statement
Certain
information
including,
without
included
limitation,
in
this
any
presentation,
forecasts
to
realize
benefits
and
synergies
from
our
global
included
alliance among the Group’s members; substantial debt
herein, is forward looking and is subject to important
and limits on liquidity that may limit our ability to
risks and uncertainties that could cause actual results
execute the Group’s combined business plans; political
to differ materially.
and
The Group’s businesses include
civil
unrest;
earthquakes
or
other
natural
its automotive, automotive-related and other sectors,
disasters and other risks and uncertainties. Any of the
and
it
assumptions underlying this presentation or any of the
affecting
circumstances or data mentioned in this presentation
its
outlook
considers
these
to
is
be
predominantly
the
businesses.
key
based
economic
on
factors
Forward-looking
what
statements
with
may
change.
regard to the Group's businesses involve a number of
contained
important
change,
date
interrelated
duty
factors
including,
but
not
that
are
limited
subject
to: the many
to
of
to
in this
this
statements.
demand
for
disclaims
products
and
could
reduce
products;
automotive
in
relative
governmental
and
automotive-related
consumer
demand
programs;
preferences
for
the
general
that
Group’s
economic
Fiat
any
inaccuracies
forward-looking
presentation
presentation.
provide
factors that affect consumer confidence and worldwide
changes
Any
updates
does
any
any
assume
in
only
expressly
to
not
liability
in
speak
We
statements
as
these
the
a
forward-looking
and
connection
of
of
disclaim
expressly
with
any
forward-looking
statements or in connection with any use by any third
party
of
such
forward-looking
statements.
This
conditions in each of the Group's markets; legislation,
presentation does not represent investment advice or
particularly that relating to automotive-related issues,
a recommendation for the purchase or sale of financial
the
products
environment,
trade
and
commerce
and
and/or
any
kind
investment solicitation in Italy, pursuant to Section 1,
production difficulties, including capacity and supply
letter (t) of Legislative Decree no. 58 of February 24,
constraints, excess inventory levels, and the impact of
1998,
vehicle defects and/or product recalls; labor relations;
solicitation as contemplated by the laws in any other
interest rates and currency exchange rates; our ability
country or state.
Q4 & FY 2013 Results Review
nor
does
it
not
services.
the various industries in which the Group competes;
amended,
does
financial
Finally,
January 29, 2014
presentation
of
infrastructure development; actions of competitors in
as
this
of
represent
represent
a
an
similar
2
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
TRANSACTION BENEFITS TO FIAT
Acquisition of remaining 41.5% of Chrysler at reasonable levels
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
Eliminates headwinds to seamless integration of Fiat–Chrysler
global alliance
Parties agreed to dismiss litigation
proceedings in Delaware Chancery
Court
Effective and efficient access to capital markets
Not envisioned that Fiat will require
equity capital to be raised via a rights
issue
Full optimization of global product platforms, R&D,
manufacturing footprint and sales & marketing efforts
January 29, 2014
Q4 & FY 2013 Results Review
3
4. Fiat re-organization
Summary of proposed transaction
FIAT S.P.A.
Transaction
Structure
REORGANIZES AFTER COMPLETION OF PURCHASE OF
CHRYSLER GROUP LLC
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
Loyalty voting structure to promote core base of long-term shareholders
Voting
Mechanism
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
Listing
Withdrawal
Rights
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
Process
Timeline
January 29, 2014
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
Q4 & FY 2013 Results Review
4
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
Italy 7%
EMEA
19%
Revenues at €87bn
Others
1%
Trading profit at €3.4bn
Components
7%
EBIT at €3.0bn
Net profit at €2.0bn (€0.9bn excl. unusuals)
Luxury
brands
4%
Net industrial debt at €6.6bn
Total available liquidity at €22.7bn
Jeep set all-time global sales record of 732k vehicles
NAFTA
53%
APAC
5%
LATAM
11%
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)
NAFTA
65%
LATAM
18%
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
Components
6%
Revenues of ~€93bn
APAC
11%
Trading profit in €3.6-4.0bn range
Break-even
Net profit of ~€0.6-0.8bn
Net industrial debt in €9.8-10.3bn
(1)
range1
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
EMEA mass-markets brand
Luxury brands
Other and Eliminations
~(€0.5)bn
~ €0.5bn
~(€0.1)bn
6
7. FY 2013 financial highlights
Net revenues (€mn)
83,957
Net profit (€mn)
86,816
1,951
Group revenues up 3%
Increases in NAFTA and APAC partly offset
by reductions in LATAM and EMEA
Strong top-line growth for Luxury brands
Positive impact of €1.5bn from recognition of net deferred
tax assets related to Chrysler partly offset by €0.5bn in net
unusual charges
896
Normalized net profit of €943mn (€1,140mn for 2012)
Components in line with 2012 (+4% at
constant exchange rates)
Excl. unusuals and positive deferred tax impact, net loss of
€911mn (€787mn last year) for Fiat excl. Chrysler
FY ‘12
FY ‘13
FY ‘12 (1)
FY ‘13
Dec 31 ‘12
Dec 31 ‘13
Trading profit (€mn)
3,541
Strong Q4 cash-flow generation of €1.4bn from Chrysler
and €0.3bn from Fiat excl. Chrysler
NAFTA: €2,220mn (+4.8% margin)
APAC: €358mn (+7.7% margin)
Slight increase for the year including €0.2bn of equity
investments
Excluding equity investments, cash-flow for the year
positive by €0.1bn
3,394
Mass-market brands
LATAM: €619mn (+6.2% margin)
Cost of income taxes of €557mn, net of recognition of
deferred tax assets (€244mn for Fiat excl. Chrysler)
Net industrial debt (€bn)
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
€904mn attributable to the owners of the parent
4.2%
margin
FY ‘12 (1)
FY ‘13
Group Capex at €7.4bn, substantially in line with 2012, but
3% higher at constant exchange rates
3.9%
margin
EMEA: -€470mn (-2.7% margin)
Luxury Brands: €535mn (+14.0% margin)
6.5
6.6
20.8
22.7
Components: €201mn (+2.5% margin)
EBIT (€mn)
Mass-market brands
NAFTA: €2,290mn
3,404
2,972
2.9
3.0
LATAM: €492mn
APAC: €318mn
17.9
19.7
EMEA: -€520mn
FY ‘12 (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
(1)
January 29, 2014
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)
Luxury brands: €470mn
Components: €146mn
Liquidity (€bn)
FY ‘13
Dec 31 ‘12
Dec 31 ‘13
Chrysler at €10.6bn (€9.8bn at 2012-end) with a €0.6bn
negative impact from currency translation
Undrawn committed credit lines
Cash & Mktable Securities
Q4 & FY 2013 Results Review
7
8. FY 2013 financial highlights
Performance by segment
MASS-MARKET
84.0 86.8
BRANDS
NAFTA (+5% or 9% at constant
FX rate) and APAC (+48%) up
on the back of higher volumes
43.5 45.8
LATAM down 10% in nominal
terms (+1% at constant FX rate)
11.1 10.0
NAFTA
3.1 4.6
LATAM
MASS-MARKET
2.9 3.8
APAC
EMEA
Ferrari &
Maserati
8.0 8.1
Components
392 470
492 255 318
NAFTA
(1)
LATAM
(737)
APAC
(520)
EMEA
EBIT before unusuals
2012: €3,648mn
2013: €3,491mn
3,404
2,972
Components
Other &
Fiat Group
(1)
Eliminations
APAC +25%
EMEA reduced losses by €217mn
(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
(1)
January 29, 2014
Q4 & FY 2013 Results Review
EBIT -13% (ex-unusuals
down 4%)
LATAM -52% (-41% before
unusuals)
(187) (224)
(1)
Components revenues in line
with 2012 at €8.1bn (+4% at
constant FX rate)
NAFTA -8% (-9% before
unusuals)
165 146
EBIT before unusuals
2012: €392mn
2013: €535mn
Ferrari &
Maserati
Fiat Group
EBIT before unusuals
2012: €(131)mn
2013: €(82)mn
1,025
EBIT before unusuals
2012: €2,443mn
2013: €2,219mn
Other &
Eliminations
EBIT before unusuals
2012: €176mn
2013: €206mn
EBIT before unusuals
2012: €(543)mn
2013: €(325)mn
Luxury brands up 31% (Ferrari
+5%, Maserati more than
doubling to €1.7bn on strength
of new models)
(2.5) (2.9)
FY 2013
BRANDS
EBIT before unusuals
2012: €1,056mn
2013: €619mn
2,290
EMEA down 2% mainly reflecting
volume decline in H1
17.8 17.4
FY 2012
2,491
Group revenues up 3% (+7%
at constant FX rates)
Luxury Brands +20% (+36%
before unusuals)
Components -12% (+17%
before unusuals)
8
9. Breakdown of unusual items
FY 2013
(€mn)
Asset write-downs mainly related to rationalization of architectures associated
with new product strategy
Repositioning of Alfa Romeo brand
(390)
(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
Voluntary safety recall and customer satisfaction action related to certain older
Jeep products
166
(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
January 29, 2014
~(100)
Q4 & FY 2013 Results Review
9
10. FY 2013
From trading profit to net result
€mn
(unless otherwise stated)
Fiat Group
Fiat excl. Chrysler
FY ’13
FY ‘12 (1)
FY ‘13
FY ‘12
4,352
4,223
1,900
1,920
Net Revenues
86,816
83,957
35,593
35,566
Trading Profit
3,394
3.9%
3,541
4.2%
246
0.7%
338
1.0%
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
(1,964)
(1,885)
(989)
(817)
1,008
1,519
(1,177)
(630)
943
(623)
736
(418)
1,951
896
(441)
(1,048)
943
1,140
(911)
(787)
Worldwide total shipments
(Units ‘000)
% of revenues
Investment income, net
Financial charges, net
(2)
Pre-tax result
Taxes
Net result
Net result excl. unusuals
(3)
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
January 29, 2014
Q4 & FY 2013 Results Review
10
11. FY 2013 net industrial debt walk
Change in Net Industrial Debt
(104)
€mn
Cash Flow from operating activities, net of Capex
+79
7,961
1,464
313
(2,226)
3
(7,433)
(6,545)
December 31,
2012
Industrial
EBITDA
(excl. unusuals)
Financial
Charges
& Taxes 1
Change in
Funds &
Other
Working
capital
Capex
(183)
Investments,
Scope &
Other
(6,649)
(3)
Capital
increase
/Repos/
Dividends
FX
translation
effect
2
December 31,
2013
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)
Net of equity swap and IAS 19 as amended
Opening balance on Jan 1, 2014 higher by €0.3bn due to adoption of IFRS 11
Numbers may not add due to rounding
1
2
January 29, 2014
Q4 & FY 2013 Results Review
11
12. Chrysler pension & OPEB status update
(IFRS, €bn)
OPEB FUNDED STATUS
PENSION PLAN FUNDED STATUS
Dec 31, 2012
Discount
Rate
Contributions
Earnings on
Plan Assets
Interest,
Service &
Other
Dec 31, 2013
Dec 31, 2012 Discount Rate
0.2
1.2
2.0
Benefit
Payments
Interest,
Service &
Other
Dec 31, 2013
(0.1)
(2.0)
0.2
(2.3)
0.5
(1.0)
(4.0)
(6.7)
WORLDWIDE WEIGHTED AVG. ASSUMPTIONS
2013
2012
WORLDWIDE WEIGHTED AVG. ASSUMPTIONS
2013
2012
Benefit Obligations at December 31:
- Discount Rate – Ongoing Benefits
4.69%
3.98%
Benefit Obligations at December 31:
- Discount Rate – Ongoing Benefits
4.87%
4.07%
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
Note: 2012 restated for adoption of IAS 19 as amended
January 29, 2014
Q4 & FY 2013 Results Review
12
13. Chrysler refinancing transaction overview
Sources & uses and pro-forma capitalization
Add-on to existing Term Loan B
Refinance VEBA Trust Note
4.7
New Term Loan B
Accrued Interest
0.3
Chrysler Group LLC to
refinance VEBA Trust Note
in capital markets to
enhance earnings and cashflow
5.0
Reimbursement of principal
amount and accrued interest,
both tax deductible
CASH SOURCES TO CHYSLER ($bn)
CASH USES FROM CHYSLER ($bn)
Add-on to Secured Senior Notes
TOTAL SOURCES
5.0
TOTAL USES
No penalty for early
repayment
Note: Excludes estimated fees and expenses
FIAT GROUP
(€bn)
Cash & Mktable Securities
Actual
Dec 31, 2013
19.7
Post Fiat-VEBA
transaction
Pro-forma
Dec 31, 2013
Key benefits of transaction
Post
refinancing
Pro-forma
Dec 31, 2013
16.9
(1)(2)
16.9
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
(1)(2)
Derivatives Assets / (Liabilities)
0.4
0.4
0.4
Total Cash Maturities (Principal)
(28.7)
(28.7)
(28.7)
(8.8)
(8.8)
(10.2)
(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)
(1)
Industrial Activities
(6.6)
(9.5)
(9.5)
(2)
Financial Services
(3.1)
(3.1)
(3.1)
Bank Debt
Capital Market
No incremental debt at
Chrysler or Fiat level
Transaction consistent with
Fiat-Chrysler treasury
integration path
Including consideration of $1.75bn paid by
Fiat and $1.9bn special distribution paid by
Chrysler to its members
Including $175mm payment to VEBA Trust
which represents first of four equal annual
payments due to VEBA Trust through 2017
Numbers may not add due to rounding
January 29, 2014
Q4 & FY 2013 Results Review
13
14. 1
MASS-MARKET BRANDS BY REGION
2
LUXURY BRANDS
3
COMPONENTS
4
BUSINESS ENVIRONMENT OVERVIEW
5
2014 GUIDANCE
15. Mass-market brands
Highlights
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
Shipments
(k units)
Revenues
(€mn)
EBIT
(€mn)
(1)
(1)
FY ‘12
2,115
45,777 43,521
(€mn)
Trading Profit
FY ‘13
2,238
TOTAL NAFTA
(1)
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
2,220
2,443
2,290
2,491
2012 restated for adoption of IAS 19 as amended
January 29, 2014
FY shipments up 6% vs. prior year, primarily reflecting
increased Jeep (Grand Cherokee, Wrangler and
Cherokee) and Ram 1500 pickup shipments
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
Q4 & FY 2013 Results Review
15
16. Mass-market brands
EBIT walk
€bn
Volume increase of 123k
vehicle shipments
Positive mix primarily
reflecting higher retail
volumes and lower fleet
volumes
868
588
2,491
2,290
(1,456)
(90)
(111)
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
FY 2012
(1)
Volume
& Mix
Net price
Industrial
costs
SG&A
Investments /
FX / Other
FY 2013
SG&A costs higher
primarily due to increased
advertising expense
Other primarily relates to
negative FX translation
impact (~80mn)
(1)
2012 restated for adoption of IAS 19 as amended
January 29, 2014
Q4 & FY 2013 Results Review
16
17. Mass-market brands
Market trends & business dynamics
INDUSTRY VOLUME & OUTLOOK
(MN UNITS)
U.S.
FY ‘13 industry up 7% vs. prior year
(cars +4%; trucks +10%)
15.9
Q4 industry up 6% (cars +3%; trucks +9%)
FY ‘13 Group sales up 9% vs. prior year
Q4 up 11% vs. prior year
3.9
3.7
0.38
Q4 '12
Q4 '13
Q4 '12
FY '13
1.8
0.40
Q4 '13
Strongest annual sales since 2007
FY '13
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%
QUARTERLY MARKET SHARE
Q4 retail sales up 12%
(%)
12.6
December represented the 45th consecutive month
of year-over-year sales gains
Fleet mix down 70 bps to 21.7% of total sales in Q4
13.0
12.9
13.2
11.4
10.9
10.8
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
8.8
Q4 sales up 7% vs. prior year
Q4
Q1
Q2
Q3
Q4
2010
FY share
13.0%
9.2%
January 29, 2014
2011
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2012
2013
FY share
FY share
FY share
14.3%
10.5%
14.2%
11.2%
Q4
14.6%
11.4%
Q4 & FY 2013 Results Review
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%
17
18. 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
TOTAL LATAM
Shipments
(k units)
Revenues
(€mn)
Trading Profit
(€mn)
EBIT
(€mn)
January 29, 2014
FY ‘13
FY ‘12
950
979
9,973
11,062
619
1,056
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%)
492
1,025
Disciplined management of company & dealer
inventory (stable at ~1 month-supply at year-end)
Q4 & FY 2013 Results Review
18
19. Mass-market brands
EBIT walk
Negative volume, reflecting
decline in shipments, and less
favorable market mix
€mn
Disciplined pricing behavior
supported by new product
initiatives, but unable to price
for inflationary increases
1,025
Industrial costs impacted by
64
Labor and input cost inflation also on
weakening of Real affecting prices of
imported materials (principally
within region)
(111)
(257)
(37)
492
Start-up costs for Pernambuco plant
(192)
FY 2012
January 29, 2014
Volume
& Mix
Net price
Industrial
costs
SG&A
Investments
FX / Other
Q4 & FY 2013 Results Review
Less favorable production mix
(Argentina vs. Brazil)
Higher SG&A driven by new
advertising campaigns in
Brazil
FY 2013
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)
19
20. Mass-market brands
Market trends & business dynamics
REGIONAL OVERVIEW
INDUSTRY VOLUME & OUTLOOK
(TOTAL LATAM;
MN UNITS)
Brazil
5.9
FY industry down 1.5% (Q4: -3%) compared to
2012 which benefited from a period of higher
sales tax incentives
1.2
1.5
0.5
4.7
1.5
0.5
1.0
Q4 '12
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
1.1
Q4 '13
Group products continued to perform well
FY '13
Passenger cars
Combined 25% share of A/B segment, driven by
continued success of new Palio and Uno
LCVs
Siena and Grand Siena posting a combined 25%
year-over-year sales increase
QUARTERLY MARKET SHARE
(PASSENGER
CARS
Strada up 5% boosted by contribution from
refreshed models launched in Q4
& LCVS; %)
Argentina
22.3
10.2
11.6
Q4
Q1
Q2
Q3
Q4
FY market up 14% to 919k units (Q4: +23%)
23.6
21.7
20.0
9.3
Q1
Q2
Q3
10.5
Q4
Q1
Q2
Q3
2010
2012
2013
FY share
FY share
FY share
23.0%
11.2%
January 29, 2014
2011
FY share
22.2%
11.6%
23.3%
10.6%
Q4
21.5%
12.0%
Q4 & FY 2013 Results Review
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 preincentive 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.)
20
21. Mass-market brands
Market trends & business dynamics
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%)
TOTAL APAC
FY ‘13
FY ‘12
Shipments
163
103
Revenues
4,621
3,128
358
260
318
255
(k units)
(€mn)
Trading Profit
(€mn)
EBIT
(€mn)
APAC industry reflects aggregate for key markets where Group
competes (i.e. China, India, Australia, Japan, South Korea)
January 29, 2014
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
Q4 & FY 2013 Results Review
21
22. Mass-market brands
EBIT walk
€mn
Volume/mix reflecting
higher shipments (+60k
units) and better mix
(higher penetration of
SUVs)
Pricing impacted by
increasingly competitive
environment, particularly in
China
423
(79)
(106)
FY 2012
318
(72)
255
(103)
Volume
& Mix
Net price
Industrial
costs
SG&A
Investments /
FX / Other
FY 2013
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
January 29, 2014
Q4 & FY 2013 Results Review
22
23. Mass-market brands
Market trends & business dynamics
INDUSTRY VOLUME1
(PASSENGER CARS & LCVS; MN UNITS)
26.1
REGIONAL OVERVIEW
FY Group sales (incl. JVs) significantly outperforming
industry (+9%) driven by strong performance in China
and Australia
7.0
6.1
Q4 '12
CHINA
Q4 '13
FY Group sales up 125% posting the best sales
improvement in an industry growing 17%
FY '13
Share gain of 40 bps driven by Fiat Viaggio, Dodge
Journey and continued growth of Jeep brand
QUARTERLY MARKET SHARE
(PASSENGER CARS & LCVS; %)
2.2%
0.36%
0.49%
INDIA
0.38%
0.27%
0.21%
Q2
Q3
Q4
Q1
0.11%
Q2
Q3
0.38%
Q4
Q1
Q2
Q3
2010
2011
2012
FY share
AUS
IND
CHI
JAP
FY share
FY share
FY share
1.2%
0.9%
0.2%
0.2%
1.6%
0.7%
0.3%
0.3%
2.1%
0.4%
0.4%
0.3%
3.1%
0.4%
0.8%
0.4%
2013
1.Reflects aggregate for key markets where Group is competing (i.e. China, India,
Australia, Japan, South Korea)
January 29, 2014
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
0.91%
0.55%
0.28%
0.31%
Q1
Group sales up 53%, significantly outperforming a
moderately growing market (up 2%) in 2013
FY share up 100 bps over 2012
0.54%
Q4
AUSTRALIA
1.7%
1.4%
Fiat Viaggio, Jeep Compass and Dodge Journey as topsellers
3.4%
Q4
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%
Q4 & FY 2013 Results Review
23
24. Mass-market brands
Highlights
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%
TOTAL EMEA
Shipments
(k units)
Revenues
(€mn)
Trading Profit
(€mn)
EBIT
(€mn)
FY ‘13
FY ‘12
979
1,012
17,420
17,800
(470)
(703)
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
(520)
Note
1 Harbour definition: 235 days p.a. / 16 hours per day
2 Technical definition: 280 days p.a. / 3 shifts per day
January 29, 2014
Results from investments of €145mn (€160mn in 2012) with
decline also due to unfavorable FX impact of Turkish Lira
(737)
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)
Q4 & FY 2013 Results Review
24
25. Mass-market brands
EBIT walk
Better mix (mainly 500
family & LCVs) partly
offset by negative
volume, reflecting decline
in passenger car
shipments
€mn
Price pressure continuing
(more accentuated in H1)
199
(26)
139
(737)
FY 2012
(520)
77
(172)
Volume
& Mix
Net price
Industrial
costs
SG&A
Investments /
FX / Other
FY 2013
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)
January 29, 2014
Q4 & FY 2013 Results Review
25
26. Mass-market brands
Passenger cars: market trends & business dynamics
INDUSTRY VOLUME & OUTLOOK
(MN UNITS)
EU27+EFTA
FY industry down 1.8% to 12.3mn units
EU27+EFTA
12.3
Positive year-over-year performance in H2
(+4%) unable to counter downwards trend in
H1 (-7%)
3.0
2.8
1.3
0.3
Q4 '12
Q4 '13
0.3
Q4 '12
FY '13
Among major countries, positive comps for UK
(+11%) & Spain (+3%); negative performance
in Germany (-4%), France (-6%) with Italy
suffering the most (-7%)
Q4 '13
FY '13
FY Group sales down 7% to 736k
FY share at 6.0%
QUARTERLY MARKET SHARE
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
(%)
28.8
29.3
28.4
6.9
6.3
27.7
Italian market weight further reduced, to 11%
of total European industry, or 500 bps lower
than pre-crisis levels in 2007
6.2
5.6
ITALY
EU27+EFTA
Q4
2010
Q1
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
FY share
FY share
FY share
FY share
30.3%
7.7%
January 29, 2014
Q4
29.4%
6.9%
29.6%
6.3%
28.7%
6.0%
Q4 & FY 2013 Results Review
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
26
27. Mass-market brands
LCVs: market trends & business dynamics
INDUSTRY VOLUME & OUTLOOK
(MN UNITS)
1.57
EU27+EFTA
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%)
0.41
0.38
0.03
Q4 '12
Q4 '13
0.10
Q4 '12
FY '13
0.03
Q4 '13
FY '13
FY Group sales at 182k units, flat over
prior year
QUARTERLY MARKET SHARE*
(%)
42.4
41.9
10.8
46.0
42.7
11.9
10.8
10.4
EU27+EFTA
Q4
2010
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
2011
2012
FY share
44.0%
12.7%
44.4%
12.5%
FY share
FY share
42.7%
11.7%
Q4
2013
FY share
44.0%
11.6%
* 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
January 29, 2014
Mixed trend among major markets: for fullyear, 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
Q4 & FY 2013 Results Review
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)
27
28. Luxury brands
2
Ferrari & Maserati
• FY revenue up 5% to €2.3bn
• FY revenue 2.2x last year’s level to €1.7bn
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
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
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%
GranCabrio & GranTurismo in line with 2012 (5k units)
North America (+9%) remained #1 market
China: 4.3x last year’s volumes to ~4k units, the brand’s
second market
USA: ~7k units (+138%), brand’s #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
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
Margin up 50 bps to 15.6%
USA
30%
European Top-5
35%
Q4 at €123mn (€13mn in 2012) or 15.9% margin
European Top-4
13%
USA
45%
Japan
4%
Japan
5.5%
Others
22%
January 29, 2014
China,
Hong Kong
& Taiwan
8%
China
25%
Others
13%
Q4 & FY 2013 Results Review
28
29. 3
Components
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
Operational Highlights
5,828
5,988
141
166
Solid performance in
NAFTA and China with
modest gain in Europe;
Brazil stable at constant
exchange rates
Order intake up 44% to
€2.6bn
FY ‘12
FY ‘13
FY ‘12
FY ‘13
780
688
0
(13)
FY ‘12
FY ‘13
FY ‘12
FY ‘13
Note: graphs not to scale
Aluminum business
posted 13% increase in
volumes
Trading performance
primarily attributable
to volume declines
Note: graphs not to scale
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
Revenues
substantially in line
with prior year
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%
1,482
1,463
33
FY ‘12
FY ‘13
Top-line growth only partially offset by higher industrial
costs associated with new product launches in NAFTA
January 29, 2014
Q4 & FY 2013 Results Review
48
FY ‘12
FY ‘13
Note: graphs not to scale
A €15mn increase in
trading profit
primarily driven by
Body Welding ops
Order intake for
System activities up
18% to €1.5bn
29
31. Business environment overview
Jeep Cherokee starts strong; All-new Chrysler 200 revealed
All-New 2015
Chrysler 200
All-New
Cherokee
(Launched end of October 2013)
17
Worldwide sales
(000’s)
11
Presented at 2014 Detroit Auto Show
Available in H1 2014
1
Oct
Nov
Derived from common Compact U.S. Wide
architecture
Dec
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)
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)
First mid-size SUV with a 9-speed
automatic transmission
Production at Sterling Heights assembly plant in
Michigan
Best-in-class capability with new
Trailhawk model
More than $1bn investment (product and plant), including
all-new paint shop and fully robotic body shop
January 29, 2014
Q4 & FY 2013 Results Review
31
32. Business environment overview
Strengthening product line-up, preparing for upscale move
KEY
LAUNCHES IN
NEW STRADA
Q4
STATUS
Best-selling nameplate
in its segment
UPDATE OF NEW PLANT
LOCATED IN GOIANA
(STATE OF PERNAMBUCO)
NORTHEAST BRAZIL
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
ALL-NEW FIORINO
Expanding Uno
family
Significant
improvements
compared to prior
model
Increased cargo
capacity
New and more fuelefficient engines
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…)
January 29, 2014
Q4 & FY 2013 Results Review
32
33. Business environment overview
Significant sales up for Fiat brand in China
APAC SALES GROWTH BY BRAND
Vehicles (000s)
20
16
8
FIAT BRAND IN CHINA
199
Fiat Viaggio
Group best-selling
vehicle in APAC in
2013
41
Positive market
acceptance driven by
design and equipment
levels
115
Viaggio One-year Anniversary Special Edition and Shining
Edition debuted at Chengdu Auto Show and Guangzhou
Auto Show, respectively
Fiat Ottimo
FY SALES +73%
Hatchback version of
Fiat Viaggio, to roll
out to Chinese
dealerships in early
2014
FY ‘13
FY ‘12
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
January xx, 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
Fiat dealership network continued to expand,
nearly doubling to 200+ points of sale in 2013,
covering a total of 126 cities across China
Q4 & FY 2013 Results Review
33
34. Business environment overview
Moving on & up
RE-FOCUS
AND REALIGNMENT OF
FIAT
TRADING PERFORMANCE
BRAND
(€MN)
Structural shift of brand towards upper layer of core
segments
2012
Expanded 500 family with 500L, Trekking & Living variants,
adding to iconic hatchback model (1+mn units sold in Europe
since launch in 2007)
Q1
Q2
2013
Q3
Q4
FY
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
(157)
(207)
3 out of 4 Fiat 500s sold outside Italy
(138)
29%
Launch of 500X model in H2 2014
24%
(50)
(98)
(165)
(238)
(120)
58%
31%
Select utility vehicles to round out brand offerings, with
Panda second best-selling vehicle in A-segment
(470)
(703)
33%
improvement
Sustained improvement driven by:
More favorable mix driven by product portfolio
repositioning strategy
Enhancement of industrial cost efficiencies
Optimization of advertising spending by rechannelling resources to 500 family while
reducing overall spending
Continued tight grip on G&A costs
January 29, 2014
Q4 & FY 2013 Results Review
34
35. 4
Business environment overview
Market outlook (mn units)
NAFTA
APAC
LATAM
5.9
1.3
4.7
EU27+EFTA
4.6
FY '13
>16
5.9
1.2
15.9
EMEA
FY '14E
26.1
~27.0
1.6
FY '13
FY '14E
Passenger cars
1.8
LCVs
1.5
12.3
FY '13
FY '13
FY '14E
~1.8
12.4
FY '14E
Passenger cars
LCVs
~0.1
0.12
FY '13
FY '14E
Both car and truck segments
expected to increase
LATAM market in 2014
expected to perform in line with
prior year
2013 Canada market was
the highest ever
Brazilian industry to grow
~3% underpinned by a
projected GDP growth in line
with prior year
Canada market in 2014
expected to be substantially
in line with record levels
reached in 2013
Argentina industry to decline
double-digit due to import
restrictions and higher sales
tax on high-end segments
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
~1.4
FY '12
Upwards trend for U.S.
industry projected for 2014,
but at lower rate than prior
years
1.4
FY '13E
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
Note: APAC reflects aggregate for key markets where Group competes (i.e. China, India, Australia, Japan, South Korea)
January 29, 2014
Q4 & FY 2013 Results Review
35
36. 4
Business environment overview
Group shipments (excl. JVs)
(units in thousands)
(units in millions)
4,223
Luxury
+150%
APAC
+85%
4
26
+8%
267
543
248
Q4 ‘12
EMEA
-5%
LATAM
-3%
2,238
1,012
EMEA
-3%
Luxury
>0.2
APAC
950
NAFTA
+6%
0.05
163
22
0.9-1.0
LATAM
~2.4
NAFTA
979
~1.0
EMEA
FY ‘13
FY ‘14E
10
227
LATAM
-15%
NAFTA
+20%
103
Luxury
+57%
APAC
+58%
2,115
1,172
4.5-4.6
4,352
979
14
1,088
+3%
48
651
236
Q4 ‘13
FY ‘12
Note: Numbers may not add due to rounding; Graphs not to scale
January 29, 2014
Q4 & FY 2013 Results Review
36
37. 5
2014 Guidance for the Group
(€bn, except EPS)
REVENUES
NET INCOME
2.0
CHANGES RELATIVE TO 2013
1.5
~93
0.2-0.6
87
0.9
0.6-0.8
(0.5-0.7)
(0.5)
2013
2013
2014E
Profit to the owners
of the Parent
Recognition
of deferred
tax assets
Unusuals
2013
Normalized
Net income
Taxes
(principally
deferred)
2014E
0.9
0.1
0.5-0.7
0.74
EPS
0.10
0.44-0.60
TRADING PROFIT
NET INDUSTRIAL DEBT
Year-end
2013
(Pro-forma)
Year-end
2013
Year-end
2014E
CHANGES
3.4
Trading
profit
3.6-4.0
RELATIVE TO
2013
(1)
Industrial EBITDA: higher
Financial charges: stable
(6.6)
Positive change in Working Capital: lower
(2.7)
2013
2014E
Capex: higher
(0.3)
(9.7)
Purchase of
Adoption of
remaining 41.5%
IFRS 11
minority stake in
Chrysler from VEBA
(1)
Includes first payment of $175mn to VEBA
Trust under MoU regarding industrial
cooperation principles with UAW
(9.8-10.3)
Note: Numbers may not add due to rounding; Graphs not to scale
January 29, 2014
Q4 & FY 2013 Results Review
37
39. Supplemental financial measures
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
January 29, 2014
Q4 & FY 2013 Results Review
39
40. Chrysler
Net income reconciliation (from IFRS to US GAAP)
(1)
Twelve Months
ended December 31, 2013
EURO
(mn)
(895)
472
626
68
(201)
(166)
(218)
(316)
Other
(3)
(674)
(150)
Pension/OPEB adjustments
3,176
52
Reconciling Items:
Capitalization of development
costs, net of amortization (2)
USD
(mn)
2,392
Chrysler Net Income – IFRS (1)
(419)
2,076
2,757
(2)
(3)
Unusual Items:
Pension plan changes
(4)
Chrysler Net Income - US GAAP
January 29, 2014
Q4 & FY 2013 Results Review
(4)
Including unusual items and restructuring
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
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
Under U.S. GAAP, curtailment gain and plan
amendments were a net reduction to pension
obligation
offset
in
accumulated
other
comprehensive income
40
41. Chrysler
Net debt reconciliation (from IFRS to US GAAP)
Dec 31, 2013
EURO
(mn)
USD
(mn)
Chrysler Net Debt - IFRS
(215)
(296)
Unamortized purchase accounting
adjustments (1)
(424)
(584)
(218)
101
(541)
(301)
138
(747)
(756)
(1,043)
Classification and other differences:
Accrued interest
Other
Net Industrial Debt - US GAAP
(1)
January 29, 2014
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
Q4 & FY 2013 Results Review
41
42. Financial charges breakdown
FY 2013
FY 2012
Avg.
Outstanding
(€bn)
Gross Industrial Debt
Industrial Cash & Net
Intersegment Financial
Receivables (2)
Net Industrial Debt
(3)
IAS 19
Avg.
Outstanding
(€bn)
Rate
(%)
P&L
(€mn)
7.0%
(900)
(12.0)
7.1%
(849)
(13.9)
6.6%
(920)
(13.7)
7.2%
(990)
(26.8)
Other Financial Debt
(1)
P&L
(€mn)
(12.9)
Capital Market
Rate
(%)
6.8%
(1,820)
(25.7)
7.2%
(1,839)
19.4
0.8%
156
19.3
1.2%
230
(1,664)
(6.4)
(7.4)
(1,609)
(371)
(388)
Equity Swap
31
34
Others
40
78
(1,964)
(1,885)
(interest cost on pension & OPEB)
(4)
Net Financial Charges
Note
Include expense incurred in relation to sale of receivables, committed lines fees, hedges
Net of charges on sales of receivables intersegment and floor plan fees
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
(1)
(2)
(3)
January 29, 2014
Q4 & FY 2013 Results Review
42
43. Detailed cash flow
(€mn)
Fiat Group
Q4 2013
Fiat Group
Q4 2012
(1)
(8,307)
(6,694)
1,296
224
1,227
1,028
(365)
407
2,158
1,659
1,672
590
3,830
2,249
(2,175)
(2,254)
1,655
(5)
(23)
122
1,632
117
(1)
2
27
30
1,658
149
(6,649)2
(6,545)
FY 2013
Net Industrial (Debt)/Cash beginning of period
Fiat ex cl. Chrysler
FY 2012
(1)
FY 2013
FY 2012
(1)
(6,545)
(5,529)
(5,048)
(2,449)
Net Income
1,951
896
(441)
(1,048)
D&A
4,572
4,132
2,299
2,115
Change in Funds & Others
(475)
617
(679)
(36)
6,048
5,645
1,179
1,031
1,464
694
1,129
(581)
7,512
6,339
2,308
450
(7,433)
(7,530)
(3,860)
(3,219)
79
(1,191)
(1,552)
(2,769)
(183)
292
(308)
247
(104)
(899)
(1,860)
(2,522)
(3)
(36)
3
(36)
3
(81)
41
(41)
(104)
(1,016)
(1,816)
(2,599)
(6,649)2
(6,545)
(6,864)
(5,048)
Cash Flow from Op. Activities bef. Chg. in W.C.
Change in Working Capital
Cash Flow from Operating Activities
Tangible & Intangible Capex
Cash Flow from Operating Activities net of Capex
Change in Investments, Scope & Others
Net Industrial Cash Flow
Capital Increase / Share Repurchases / Dividends
FX Translation Effect
Change in Net Industrial Debt
Net Industrial (Debt)/Cash end of period
(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
January 29, 2014
Q4 & FY 2013 Results Review
43
44. Fiat excl. Chrysler
Net debt breakdown (€bn)
Sept. 30, 2013
Dec. 31, 2013
Cons.
Fin.
19.1
15.9
3.3
(0.3)
(0.3)
(8.6)
10.2
*
Ind.
Cons.
Ind.
Fin.
Gross Debt*
20.3
17.0
3.4
-
Derivatives M-to-M, Net
(0.3)
(0.3)
-
(8.4)
(0.2)
Cash & Mktable Securities
(10.0)
(9.8)
(0.2)
7.1
3.1
Net Debt
10.0
6.9
3.1
Net of intersegment receivables
Note: Numbers may not add due to rounding
January 29, 2014
Q4 & FY 2013 Results Review
44
45. Fiat excl. Chrysler
Gross debt (€bn)
Outstanding
Sept 30, ‘13
Outstanding
Dec. 31, ‘13
18.4
5.8
11.4
1.2
Cash Maturities
Bank Debt
Capital Market
Other Debt
19.3
6.2
11.9
1.2
0.4
Asset-backed financing
0.6
0.0
0.0
0.4
ABS / Securitization
Warehouse Facilities
Sale of Receivables
0.0
0.0
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
Note: Numbers may not add due to rounding
January 29, 2014
Q4 & FY 2013 Results Review
45
46. Chrysler
Gross debt (€bn)
Outstanding
Sept 30, ‘13
Outstanding
Dec 31, ‘13
9.6
2.6
2.4
4.7
Cash Maturities
Bank Debt
Capital Market
Other Debt
9.4
2.5
2.3
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
January 29, 2014
Q4 & FY 2013 Results Review
46
47. Debt maturity schedule
(€bn)
Outstanding
Dec. 31, ‘13
6.2
11.9
1.2
Fiat ex Chrysler
2014
2015
2016
2017
2018
Beyond
Bank Debt
2.5
1.7
0.9
0.4
0.4
0.4
Capital Market
2.3
2.0
2.3
2.2
1.9
1.3
Other Debt
0.8
0.0
0.0
0.0
0.0
0.3
5.6
3.7
3.2
2.7
2.2
1.9
19.3
Total Cash Maturities
10.0
Cash & Mktable Securities
2.1
12.1
Undrawn committed credit lines
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
0.4
0.4
0.4
2.5
0.5
5.3
9.4
9.7
0.9
10.6
Total Cash Maturities
Cash & Mktable Securities
Undrawn committed credit lines
Total Available Liquidity
Note: Numbers may not add due to rounding; total cash maturities excluding accruals
January 29, 2014
Q4 & FY 2013 Results Review
47
48. Contacts
GROUP INVESTOR RELATIONS TEAM
Marco Auriemma
+39-011-006-3290
Maristella Borotto
+39-011-006-2709
Francesca Ferragina
+39-011-006-2308
Timothy Krause
+1-248-512-2923
Paolo Mosole
Vice President
+39-011-006-1064
fax: +39-011-006-3796
email:
websites:
January 29, 2014
investor.relations@fiatspa.com
www.fiatspa.com
www.chryslergroupllc.com
Q4 & FY 2013 Results Review
48