Building on global strengths…
European uncertainty
continuing
Richard Palmer
Chief Financial Officer
Exane BNP Paribas – 14th European Seminar
Paris - June 14, 2012
20 Novembre, 2010
Safe Harbor Statement
Certain
information
including,
without
herein,
forward
is
included
in
limitation,
looking
this
any
alliance
among
other
include
sectors,
its
and
risks
and
execute
the
uncertainties.
on
liquidity
members;
plans; political and civil unrest; earthquakes and other
businesses
and
limits
Group‟s
differ
ability
and
the
to
Group‟s
important
global
our
The
to
our
risks and uncertainties that could cause actual results to
automotive-related
subject
rates; our ability to realize benefits and synergies from
debt
materially.
is
included
substantial
automotive,
and
presentation,
forecasts
Group‟s
Any
that
may
combined
of
the
limit
business
assumptions
its outlook is predominantly based on its interpretation
underlying this presentation or any of the circumstances
of
or data mentioned in this presentation may change. Any
what
it
considers
to
be
affecting these businesses.
the
key
economic
factors
Forward-looking statements
forward-looking
statements
with regard to the Group's businesses involve a number
presentation
speak
of
presentation.
We
important
including,
factors
factors
but
that
not
affect
that
limited
are
to:
consumer
subject
the
to
many
confidence
change,
interrelated
and
worldwide
updates
not
to
any
assume
connection
and changes in consumer preferences that could reduce
forward-looking
relative demand for the Group‟s products; governmental
use
programs;
statements.
Group's
to
economic
commerce
and
competitors
Group
conditions
legislation,
automotive-related
and
of
general
markets;
in
competes;
issues,
the
infrastructure
the
in
particularly
various
production
each
that
of
environment,
development;
industries
in
difficulties,
the
relating
trade
actions
which
the
including
by
of
expressly
any
party
This
a
disclaims
or
in
date
duty
in
of
in
this
provide
Fiat
does
liability
any
of
connection
such
presentation
any
this
of
to
statements.
inaccuracies
statements
third
the
disclaim
forward-looking
with
any
contained
as
expressly
and
demand for automotive and automotive-related products
only
in
these
with
any
forward-looking
does
not
represent
investment advice or a recommendation for the purchase
or
sale
financial
of
financial
services.
products
Finally,
and/or
this
of
any
presentation
kind
does
of
not
represent an investment solicitation in Italy, pursuant to
Section
1,
letter
(t)
of
Legislative
Decree
no.
58
of
capacity and supply constraints, excess inventory levels,
February 24, 1998, as amended, nor does it represent a
and the impact of vehicle defects and/or product recalls;
similar solicitation as contemplated by the laws in any
labor
other country or state.
relations;
June 14, 2012
interest
rates
and
currency
exchange
Exane BNP Paribas – 14th European Seminar
2
The Group at a glance
GLOBAL
AUTOMOTIVE
PLAYER WITH VALUABLE
BRAND PORTFOLIO
NAFTA
45%
STATE-OF-THE-ART
VW GROUP
TECHNOLOGY
LATAM
15%
EXPOSURE
TO
US
AUTO
RECOVERY THROUGH
CHRYSLER
EMEA
37%
(including Ferrari
& Maserati and
Components)
APAC
3%
8.3
TOYOTA
7.6
GM
7.6
RENAULT-NISSAN
6.8
HYUNDAI-KIA
6.7
FORD
5.3
4.1
FIAT/CHRYSLER
FIAT
& CHRYSLER
STRONG PRESENCE
LATAM, POTENTIAL
PSA
IN
NAFTA
52%
FOR
HONDA
SOLID
EMEA
Components
6%
LIQUIDITY
APAC
5%
INTEGRATED
MANAGEMENT TEAM WITH
REGIONAL FOCUS
LATAM
37%
EMEA Car substantially at break-even
Luxury & Performance brands
~€0.4bn
Mass market brands
~€(0.5)bn
Note:
June 14, 2012
3.1
SUZUKI
EXPANSION IN OTHER
EMERGING MARKETS
3.4
pro-forma constructed by including Chrysler results
as if consolidated from Jan 1, 2011
2.6
BMW
1.7
DAIMLER
1.6
SAIC
1.5
MAZDA
1.2
CHANGAN
1.1
OTHERS
~13.0
Source: Company data for Fiat & Chrysler; HIS Global Insight (March 2012
release) for peers
Note:
JVs volumes for Saic and Changan already accounted for in related
OEMs
Exane BNP Paribas – 14th European Seminar
3
Q1 ‟12 financial highlights
Significant contribution from Chrysler
Net revenues (€bn)
• Fiat ex Chrysler down 5.7% to €8.7bn
mainly reflecting volume declines in
Europe for both passenger cars and
LCVs, particularly in Italy, with Fiat
production and deliveries being
additionally affected by protracted car
hauler strike
Net profit (€bn)
20.2
379
• Fiat ex Chrysler: net loss of €273mn
• Income taxes of €141mn representing 27% tax
rate for the Group
9.2
 Fiat ex Chrysler of €119mn primarily related to
taxable income of companies operating outside
Italy and employment-related taxes in Italy
37
• Luxury and Performance brands up 12%
• Components stable
Q1 „11
Q1 „12
Q1 „11
Q1 „12
Trading profit (€mn)
Net industrial debt (€bn)
• Group margin at 4.3%
• Fiat ex Chrysler at €3.8bn
• Fiat ex Chrysler at break-even
• Mass-market brands
5.8
866
5.5
Q1 „12
Dec 31 „11
Mar 31 „12
20.7
21.4
3.0
2.9
17.7
18.5
Dec 31 „11
Mar 31 „12
 NAFTA: €670mn (+6.5% margin)
 LATAM: €235mn (+9.1% margin)
 APAC: €77mn (+10.8% margin)
251
• Slight increase in net industrial debt with cash
generation from Chrysler largely offsetting
absorption by remainder of the Group, principally
due to working capital impact of reduced volumes
in Europe and capital expenditure
 EMEA: -€207mn (-4.6% margin)
• Luxury & Performance brands: €71mn
(+10.8% margin)
Q1 „11
• Components: €36mn (+1.8% margin)
EBIT (€mn)
Liquidity (€bn)
• Fiat ex Chrysler: €12mn
895
• Mass-market brands
 NAFTA: €681mn
 LATAM: €235mn
 APAC: €85mn
291
Total available liquidity for Fiat ex Chrysler at €12bn
including €1.2bn from bonds issued during the
quarter
• Bond of CHF425mn (5% coupon due Sep 2015)
• Bond of €850mn (7% coupon due Mar 2017)
 EMEA: -€170mn
• Luxury & Performance brands: €71mn
• Components: €36mn
June 14, 2012
Q1 „11
Q1„12
Exane BNP Paribas – 14th European Seminar
Undrawn committed credit lines
Cash & Mktable Securities
4
Q1 ‟12 financial highlights
Performance by segment
18.6
20.2
•
Revenues and
profitability
reflecting generally
positive trading
conditions across
regions with
exception of EMEA,
where conditions
further declined
•
Top-line growth
focused in NAFTA
(+22%) and APAC
(+43%) with EMEA
down 13%
•
Strong EBIT
performance in
NAFTA (+81%) and
APAC (+143%)
offsetting worsened
losses in EMEA and
reduction in LATAM
earnings (-23%)
MASS-MARKET BRANDS
10.4
8.5
5.2
2.6
0.5
NAFTA
4.5
2.6
LATAM
0.7
APAC
0.6
EMEA
0.7
Ferrari &
Maserati
2.0
2.0
-0.7
Components
-0.6
Other &
Eliminations
Q1 2011 (pro-forma)
Fiat Group
Q1 2012
MASS-MARKET BRANDS
756
681
377
306
235
35
85
62
-66
NAFTA
LATAM
APAC
71
36
36
6
-43
-170
EMEA
Ferrari &
Maserati
Components
Other &
Eliminations
Note
1) Pro-forma constructed by including Chrysler results for the quarter as if consolidated from Jan 1, 2011
2) Graphs not to scale
June 14, 2012
895
Exane BNP Paribas – 14th European Seminar
Fiat Group
5
Integration activities on track
20% at year-end 2011…



Group Executive Council formed with leaders from both organizations
Quick wins and beyond…
•
Integration of sale and service activities of Chrysler Group branded products with Fiat in
Europe
•
Introduced Fiat 500 in North America, produced in Mexico also for export in Latin
America and China
•
•
Started production in U.S. of 1.4L MultiAir gas engine
•
Pushing on architecture convergence & component sharing with Dodge Dart now ready
to enter largest retail segment in US with a vehicle derived from combined Fiat and
Chrysler Compact architecture
•
Initial benefits from joint purchasing activities through organizational alignment,
common suppliers, common strategies on major commodities and architecture sharing
•
Implementation of World Class Manufacturing as common language
Lancia Thema & Voyager, and Fiat Freemont launched in Europe (the latter also in Latin
America and China), all based on Chrysler Group products
…starting to yield significant benefits
…expected to accelerate to 50% by end of 2012
June 14, 2012
Exane BNP Paribas – 14th European Seminar
6
Answering some key questions
June 14, 2012
Exane BNP Paribas – 14th European Seminar
7
How can Fiat increase its
stake in Chrysler?
FIAT‟S
RIGHTS TO INCREASE ITS STAKE IN
“VEBA Trust Call Option”
CHRYSLER GROUP
“Equity Recapture Agreement”
•
What: Fiat has the option to purchase 40% of VEBA‟s
current interest in Chrysler Group (“Covered Interest”)
•
What: Fiat may purchase any remaining membership
interest held by VEBA
•
When: from July 1st, 2012 until June 30th, 2016
•
•
How: option is exercisable not in excess of 20% of
Covered Interest in any 6-month period
Price: equal to a specified threshold of $4.25bn plus 9%
p.a. compounded annually from Jan 1, 2010
•
Price: before an IPO, based on a market multiple not to
exceed Fiat‟s multiple applied to Chrysler reported LTM
EBITDA less net industrial debt; following an IPO, based
on trading price of common stock
June 14, 2012
Note: under the Equity Recapture agreement, Fiat receives all
proceeds from Chrysler ownership interest held by VEBA over the
above threshold (and once such threshold is reached, any remaining
interests held by VEBA are turned over to Fiat)
Exane BNP Paribas – 14th European Seminar
8
What are the 2012 Fiat
Group maturities?
•
Fiat ex Chrysler

Bank Debt



•
Renewal process of credit
facilities unaffected, backed
by strong relationship with
a large number of
institutions, both domestic
and international
5.0
10.2
1.3
Fiat SpA
(ex Chrysler)
9M
2012
2013
2014
2015
2016
Beyond
Bank Debt
1.9
1.4
0.6
0.6
0.2
0.3
Capital Market
1.6
1.0
2.2
1.9
1.0
2.5
Other Debt
0.7
0.2
0.1
0.0
0.0
0.2
4.3
2.6
2.8
2.5
1.2
3.0
9M
2012
2013
2014
2015
2016
Beyond
16.5
Total Cash Maturities
10.1
Cash & Mktable Securities
2.0
12.0
Undrawn committed credit lines
Total Available Liquidity
Capital Market


Nearly 2/3 related to
LATAM and other non-EU
treasury operating needs
Outstanding
Mar. 31, „12
Successfully accessed for
€1.2bn in Q1 „12 through
two bond issuances
representing 80+%
coverage of bond
maturities for the year
Outstanding
Mar. 31, „12
Chrysler
2.7
Bank Debt
0.0
0.0
0.0
0.0
0.1
2.5
Other Debt
2.4
Capital Market
0.0
0.0
0.0
0.0
0.0
2.4

4.9
Other Debt
0.2
0.3
0.3
0.3
0.3
3.5
0.2
0.3
0.3
0.4
0.4
8.4
Mostly self-liquidating and
automatically rolled-over
positions related to dealer
floor plan financing in Brazil
No major maturities due
prior to 2017 for Chrysler
10.0
8.4
Total Cash Maturities
Cash & Mktable Securities
1.0
Undrawn committed credit lines
9.4
Total Available Liquidity
Note: Numbers may not add due to rounding; total cash maturities excluding accruals
June 14, 2012
Exane BNP Paribas – 14th European Seminar
9
Why does the Group keep so
much liquidity?
FIAT GROUP LIQUIDITY AT QUARTER-END
INDUSTRIAL LIQUIDITY /REVENUES RATIO BENCHMARK
(€bn)
20.8
20.7
21.4
7.0
8.0
8.4
9.4
12.2
12.8
12.3
12.0
Q2 '11
Q3 '11
Q4 '11
Q1 '12
19.2
(as of Dec 31, 2011)
35%
30%
25%
20%
15%
Fiat ex Chrysler
10%
Chrysler
5%
•
By maintaining cash balances well in
excess of minimum operating cash
levels in still uncertain and volatile
markets, the Group has sufficient
cash to:



•
•
0%
Note:
• Ratios calculated by Fiat on the ground of information contained in the relevant public FY 2011 Financial Reports
• Industrial liquidity includes unused credit lines and marketable securities
• Fiat Group revenues are pro-forma, constructed by including Chrysler as if consolidated from Jan 1, 2011
Fund development programs
Optimize management of consolidated debt, also in view of debt capital market maturity profile
Maintain strategic flexibility
Prudent international diversification of liquidity
Assuming normalized capital markets, Group could operate with liquidity levels well below 20% of
yearly revenues
June 14, 2012
Exane BNP Paribas – 14th European Seminar
10
Are Fiat & Chrysler liquidity/
debt managed separately?
•
•
June 14, 2012
Chrysler Group and Fiat manage financial matters, including treasury
services, separately

Fiat SpA has no guarantee, support or similar obligations in relation to any
Chrysler financing obligations, nor does Fiat SpA have any obligation or
commitment to provide funding to Chrysler

Similarly, Chrysler Group has no guarantee, support or similar obligations in
relation to any Fiat financing obligations, nor does Chrysler Group have any
obligation or commitment to provide funding to Fiat

Financial segregation is also provided for by legally binding documentation

Agreements from Chrysler Group‟s refinancing transaction completed in May
2011 contain limitations on Chrysler Group‟s ability to provide financial support
to Fiat, including dividend payment apart from $500mn subject to certain proforma liquidity tests

Fiat‟s latest 3-year Revolving Credit Facility, maturing in July 2014, also limits
the ability of Fiat to financially support Chrysler Group, including limits on
guarantees and loans

Chrysler‟s Operating Agreement contains additional restrictions on related-party
transactions
If Fiat‟s ownership in Chrysler were to exceed 80%, Fiat may become
subject to certain US legal requirements making it secondarily
responsible for any funding shortfall in certain of Chrysler‟s pension
plans in the event Chrysler were to become insolvent. Chrysler‟s
organizational documents contain certain protections designed to
ensure that Fiat will not inadvertently become subject to these
obligations
Exane BNP Paribas – 14th European Seminar
11
What are the main synergies
between Fiat and Chrysler?
•
Multiple source of synergies across operations
and the entire supply chain
•
Major synergies from Purchasing, WCM &
architecture development with the latter
representing ~50% of cumulative synergies from
2010-14

Common
Modular
Interchangeable
Cumulative synergies of €1.4bn achieved in 2010-11 (of
which €0.9bn in 2011) with architecture development
accounting for 40+%; remainder evenly split between
joint purchasing activities and WCM
CASE STUDY
Top hat &
powertrain
applications
Up to
~65%
reduction






Industrial
installation
Architecture
development
Primary vehicle on a
brand-new architecture
June 14, 2012
Optimizing allocation of capital through
architecture convergence and component
standardization
Derivative
vehicle
Reduced investment & development cost
Reduced technical complexity
Shortened time-to-market
Increased economies of scale
Improved quality & reliability
Optimized production capacity utilization &
manufacturing flexibility
Exane BNP Paribas – 14th European Seminar
12
What are the expected Capex
for the Group in 2012?
•
•
•
GROUP CAPEX TARGETED FOR FY „12 BY CATEGORY
MAJOR PROGRAMS IN 2012
(€mn; IFRS)
New vehicles







Fiat: Compact MPV (5- & 7-seater), Panda, Small CUV
Dodge: Dart
Chrysler: D-Sedan
Alfa Romeo: 4C
~7.5
8.0
Jeep: Small SUV, D-SUV
Maserati: E-Segment, New Quattroporte
Ferrari: sustained investments
6.0
Powertrains: 8- & 9- speed planetary automatic
transmissions, Euro6 for gas & diesel engines
“Other” includes start of investment for new plant in
Pernambuco in Brazil (initial capacity of 200k vehicles p.a.)
4.0
2.0
CUMULATIVE AVERAGE GROUP CAPEX BY QUARTER
(based on historical data)
100%
0.0
New products
100%
New
powertrains
Other
FY '12E
80%
~60-70%
60%
•
40%
~35-45%

20%
~15-20%
•
0%
Q1
June 14, 2012
IFRS: Q1 „12 consolidated Capex at €1.6bn,
or ~20% of projected spending for the year
Q2
Q3
Fiat ex Chrysler €0.6bn
US GAAP: Chrysler FY Capex guidance of
~$4.0bn for Chrysler ($0.9bn in Q1 „12)
Q4
Exane BNP Paribas – 14th European Seminar
13
How bad could the European
car market get in 2012?
EU27+EFTA
•
MARKET TREND
(mn units; passenger cars)
Outlook for European car market in
2012 further worsened

13.1 13.2
10.3
11.1
12.2
14.1
16.0 15.6
15.1 15.5 15.8 14.4
13.6

8.2
•
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
•
•
Group capacity
utilization in
Europe for FY „11
(i.e. ~80% as per
Harbor definition)
in line with
industry average
At end of 2011,
Group removed
~140k units p.a.
technical
production
capacity by closing
Termini Imerese
plant
June 14, 2012
THE
Adverse impacts from economic
recession in Eurozone and increased fuel
prices to drive European market to 5th
consecutive y-o-y decline
New car registrations in EU27+EFTA
expected to be below 13.0mn units mark
Though not all OEMs affected to
same extent, vehicle production in
Europe likely to decline as well
CHRONIC ISSUE FOR THE INDUSTRY: UNDERUTILIZED PRODUCTION CAPACITY
(EUROPE)
Industry
24.7
24.1
89%
69%
24.6
(FY 2011 CAPACITY UTILIZATION)
82%
Italy1
Passenger car
plants only
2007
2009
Production capacity (units
mn) - Harbour definition -
2011
Capacity
utilization
Source: Pwc Autofacts (Q1 2012 release)
Rest of
Europe2
1
2
50%
33%
Harbour definition
(235 days p.a./2 shifts per day)
Technical definition
(280 days p.a./3 shifts per day)
118%
74%
Italy: Cassino, Melfi, Mirafiori, Pomigliano d’Arco & Termini Imerese
Tycky (Poland) and Bursa (Turkey) including third-party supplied vehicles
Exane BNP Paribas – 14th European Seminar
14
Why are you delaying certain
model launches in Europe?
•
Group refuses to engage in value destroying
strategies

•
PRICES
GREW LESS THAN
Allocation made to preserve integrity of architecture
development easily transferrable back to European
market at any time
Less than 24 months between decision-to-invest and
decision-to-produce
CONSUMER PRICE INDEX
(CAGR 2004-11)
B-SEGMENT
2.0%
YEARS
2.0%
1.7%
1.6%
Germany
1.2%
1.2%
1.1%
France
Spain
Car Transaction Price Index
Launch of select new models ongoing
7
OVER PAST
2.9%
2.6%
Intentionally delayed industrialization investment
in Europe for certain projects until return to a more
rational car market

•
COMPETITIVE ENVIRONMENT IN
Continuation of Group investment program
unabated in NAFTA and LATAM in view of much
more stable market conditions

•
Hanging on to notional market share objectives
ultimately never delivers value
EXAMPLE:
(5 major European markets; Sourced from independent research agency)
1.0%
UK
Italy
Consumer Price Index
MOST RELEVANT INCENTIVE RECEIVED BY NEW CAR BUYERS IS PRICE DISCOUNT
(“DID
•
•
Maintained leading position in A-segment in
Apr YTD (~28% share including Panda Classic
& Fiat 500), increasing gap over nearest
competitor
62%
•
Production of 5-seater version to start in July
2012, also available for NAFTA in early 2013
•
New Trekking and 7-seater versions to follow
2008
2011
53%
More than 65k orders in May YTD
A compact MPV enhancing the 500 product
offerings, based on “Small” architecture and
produced at Kragujevac plant (Serbia)
June 14, 2012
YOU GET SOME OF THE FOLLOWING INCENTIVES?”)
38%
17%
23%
37%
22%
15%
12%
11%
No
incentives
Low cost
financing
Exane BNP Paribas – 14th European Seminar
Discounted
price
Good
trade-in
Extended
warranty
17% 16%
Free options
or extras
15
How much is Fiat dependent
on the Italian market?
ITALIAN
MARKET TREND OVER LAST
(mn units; passenger cars)
2.3
2.4
2.2
2.3
2.4
30
YEARS
2.5
2.2
2.2
2.0
1.7
1.6
1.7
1.7
•
Italian passenger car
industry expected to
further decline in 2012…
Max
2007=2.49mn
2.2

1.7
1.7
Min
1983=1.58mn
•
Down to ~1.4mn units, well
below the lowest level since
1983
…but significantly reduced
Group sales exposure to
domestic market on the
back of strengths in other
regions, thanks to
consolidation of Chrysler
WORLDWIDE GROUP
REDUCED WEIGHT OF ITALIAN MARKET IN EUROPE IN 2011,
STEADILY WELL ABOVE 14% MARK IN PAST DECADE
SALES
(mn units; passenger cars & LCVs; excl. JVs)
(EU27+EFTA; passenger cars)
4.1
2007
Italy
15.6%
Italy
12.9%
2011
1.7
1.0
-270bps from
historical peak
3.5
1.4
0.7
0.9
0.6
2003
2007
2011*
Italy
*
June 14, 2012
2.1
>4.1
2012E*
RoW
Including Chrysler sales as if consolidated from Jan 1, 2011
Exane BNP Paribas – 14th European Seminar
16
US market performance: too
good to be true?
• US auto industry recovering at a steady pace


+39
Market recorded at least 10% growth for 2 straight calendar
years, first time since 1984 (FY ‟11 up 11% over 2010)
+24
(+27%)
May „12 YTD market up 14% vs. prior year
+14
+19
• Chrysler winning back market share, primarily resulting
from momentum of 16 new and significantly refreshed
products in 2010-11




+23
+17
(+75%)
(+38%)
+33
Fiat
500
(+131%)
May „12 YTD share at 11.3%, +160bps vs. prior year
Other
(+432%)
(+203%)
FY ‟11 share at 10.5%, up 130bps vs. 2010
• Product portfolio rejuvenation continuing in 2012
689
Ram
Pickup
Dodge
Avenger
520
Jeep
Chrysler Grand
300 Cherokee
All-new Dodge Dart available at dealership starting in June
All-new SRT Viper and refresh for Ram 1500 to come in H2
(k units)
Chrysler
200
SALES UP 169K UNITS OR +33%
May ‟11
YTD
• Dodge is entering the
largest retail segment in
US (13.8% of 2011
market) with an all-new
world-class vehicle
derived from combined
Fiat & Chrysler Compact
architecture
• Style, technology,
customization and
quality not typically
found in a compact car
June 14, 2012
• Best-in-class fuel
economy (3.6L V6
Pentastar engine: 42%
more hp, 20% better
fuel economy vs.
previous 3.7L V6
engine)
• Class-exclusive 8-speed
automatic transmission
• Two all-new models:
SRT Viper & SRT Viper
GTS
• 8.4L V10 engine, 640hp
Exane BNP Paribas – 14th European Seminar
May ‟12
YTD
• May „12 marked
the first full
month of
500 Abarth
sales
• Dealer orders for the
Abarth dramatically
exceeded number of units
scheduled for production
17
How will the Brazilian market
perform in 2012?
Industry average daily sales by month
Industry average daily sales
- May 1 through Jun 6, 2012 -
(passenger cars & LCVs; k units)
(passenger cars & LCVs; k units; selling days)
All-time sales high
FY 2010 = 3.3mn units
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
J
F
H1 avg.
H2 avg.
H1 avg.
H2 avg.
May YTD avg.
~12,100
~14,300
~13,200
~14,100
~12,300
M
A
M
J
J
2010
•
A
S
O
N
D
J
F
M
A
M
J
J
2011
A
S
O
N
D
J
F
M
A
M
2012
Positive impact from various economic and government
stimuli expected to offset pricing pressure



•
Another record-breaking sales
FY 2011 = 3.4mn units

New Government tax measures increased IPI rates on imported
vehicles by 30 p.p. and import tax (35%) in mid Dec 2011
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
IPI reduction of up to 7% for passenger cars and LCVs (May 22nd)
Group trading profit target for FY „12 in excess of €1bn,
substantially in line with prior year
June 14, 2012
Daily avg.
(before IPI tax policy change)
Daily avg.
~13,500
~15,400
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 2 3 4
May
•
•
June
Market reacted very positively
following IPI rate cut

Interbank interest rate cut by 50bps to 8.5% (a historic low)
introduced by Brazil‟s Central Bank at May-end
Reserve requirements for car loans reduced by Central Bank,
freeing up ~R$18bn, allowing banks to boost lending in the sector
and lower borrowing rates
IPI rate cut
announcement

Average daily sales jumped in latter part
of May
June off to a good start
Additional liquidity, lower interest
rates, and IPI cut expected to
continue stimulating sales

Exane BNP Paribas – 14th European Seminar
FY outlook of mid single-digit y-o-y
growth
18
How is the Group expansion
in Asia proceeding?
TOTAL APAC
Shipments
(k units)
Revenues
(€mn)
Trading Profit
(€mn)
EBIT
(€mn)
Q1 ‟12
Q1 ‟11
25
17
714
499
77
41
85
35
Notes:
• Pro-forma constructed by including Chrysler results for the
quarter as if consolidated from Jan 1, 2011
• APAC reflects aggregate key markets where Group is
competing (i.e. China, India, Australia, Japan, South Korea)

A benchmark for midclass segment

World-class manufacturing
standards

Beguiling design and
cutting-edge technology


First Fiat sedan made in China

Two years after GAC Fiat establishment, 91 dealers and
125 showrooms opened throughout China
•
New organizational structure with regional focus is
key to support expansion of the Group in APAC

Strengthen Jeep‟s legitimacy as an on-road and
performance product offerings

Grow Alfa Romeo and Fiat brands while positioning
Chrysler as an affordable premium vehicle
Q1 ‟12 highlights

Revenues up 43% mainly driven by Chrysler Group brands
(representing 80+% of total revenue)

Trading profit nearly double with margin at 10.8%
A 50-50 JV signed early 2010 with
Guangzhou Automobile Group (GAC) for
production of cars and engines

A strong partner, also forming part of JVs with
Toyota and Honda in China

Fiat Viaggio, world premiere at 2012 Beijing Auto
Show, marking a key milestone of the JV
Operations in India refocused
Fiat GAC JV plant ready for roll-off of Fiat Viaggio cars
by end of June (in Chinese dealerships in Q3 2012)
June 14, 2012
•
(PRO-FORMA)

Hand-over from JV with Tata of Fiat‟s commercial
and distribution activities to a separate Group
owned company to provide greater focus on Fiat
brand

State-of-the-art technology industrial JV with Tata
to continue producing Fiat and Tata cars in
addition to engines and transmissions for both
domestic and export markets
Exane BNP Paribas – 14th European Seminar
19
What is FY „12 outlook for
industry & Group shipments?
FY „12E industry volumes outlook by region
(mn units)
>13.8
Group FY shipments
(excluding JVs, mn units)
4.1-4.4
~1.6
~0.1
APAC
0.9-1.0
LATAM
~2.0
NAFTA
1.1-1.3
EMEA
LATAM
~5.7
EU27+EFTA
Passenger cars:
LCVs:
June 14, 2012
~13.0
~1.65
APAC
~23.5
Exane BNP Paribas – 14th European Seminar
FY 2012E
20
What is the Group guidance
for FY 2012?
•
Group remains fully committed to strategic direction laid out in the 5-year plans outlined in
November 2009 for Chrysler and April 2010 for Fiat
•
Having reviewed economic and trading conditions in the 4 operating regions encompassing
activities of the Group
•
•

Expectations of performance in North America, Latin America and Asia-Pacific are confirmed

Recent events in last 12 months, and more particularly in H2 2011, have cast doubt on volume assumptions
governing overall market and our own development plans for Europe until 2014

Level of uncertainty regarding economic activity in Eurozone in foreseeable future made specific point projections of
financial performance unreliable
As a result, Group is providing guidance for FY 2012 in terms of ranges, ranging from continuing
depressed trading conditions to a gradual stabilization and recovery at the very end of 2012

Revenues in excess of €77bn

Trading profit in €3.8 to €4.5bn range

Net profit between €1.2bn to €1.5bn

Net industrial debt between €5.5bn to €6.0bn
Group expects to fully articulate effect of Eurozone economic climate on its 2014 plan when
releasing Q3 2012 results
June 14, 2012
Exane BNP Paribas – 14th European Seminar
21
Contacts
GROUP INVESTOR RELATIONS TEAM
Marco Auriemma

+39-011-006-3290
Alexandra Deschner

+39-011-006-2308
Timothy Krause

+1-248-512-2923
Paolo Mosole

+39-011-006-1064
Sara Nicola

+39-011-006-2572
Maristella Borotto

+39-011-006-2709
Vice President
fax: +39-011-006-3796
June 14, 2012
email:
[email protected]
websites:
www.fiatspa.com
www.chryslergroupllc.com
Exane BNP Paribas – 14th European Seminar
22