Q1 2016 Results April 26, 2016
Q1 2016 Results April 26, 2016 Q1 2016 Results April 26, 2016 - - PowerPoint PPT Presentation
Q1 2016 Results April 26, 2016 Q1 2016 Results April 26, 2016 - - PowerPoint PPT Presentation
Q1 2016 Results April 26, 2016 Q1 2016 Results April 26, 2016 Safe Harbor Statement This document, and in particular the section entitled 2016 Groups ability to provide or arrange for adequate access to guidance - confirmed, contains
Q1 2016 Results April 26, 2016
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This document, and in particular the section entitled “2016 guidance - confirmed”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, “intend”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based
- n the Group’s current expectations and projections about
future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on
- them. Actual results may differ materially from those
expressed in such statements as a result of a variety of factors, including: the Group’s ability to reach certain minimum vehicle sales volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group’s ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group’s ability to expand certain of the Group’s brands internationally; changes in the Group’s credit ratings; the Group’s ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; potential shortfalls in the Group’s defined benefit pension plans; the Group’s ability to provide or arrange for adequate access to financing for the Group’s dealers and retail customers; the Group’s ability to access funding to execute the Group’s business plan and improve the Group’s business, financial condition and results of operations; various types of claims, lawsuits and other contingent obligations against the Group; disruptions arising from political, social and economic instability; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs, disruptions of supply or shortages of raw materials; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other disasters and other risks and uncertainties. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update
- r revise publicly forward-looking statements. Further
information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
Safe Harbor Statement
Q1 2016 Results April 26, 2016
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Q1 2016 Results April 26, 2016
Group overview Mass-market brands by region Luxury brand - Maserati Components Industry outlook & guidance Appendix
Q1 2016 Results April 26, 2016
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Q1 ’16 highlights
Record Q1 results Adjusted EBIT margin of 5.2% nearly double Q1 ’15 All segments profitable Removal of FCA US ring-fencing Enables unified financing platform Provides free flow of capital within the Group Issuance of €1.25B medium-term notes Due March 2024 with a 3.75% coupon FCA’s long-term debt rating raised by Standard & Poor’s Rating raised to “BB” from “BB-” “Stable” outlook confirmed 2016 marks the 75th anniversary of the Jeep brand Global expansion plan continues with Jeep introduced to India market Annual General Shareholders Meeting held in Amsterdam on April 15 2016 FY guidance confirmed
Q1 2016 Results April 26, 2016
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New products
Maserati Levante Jeep Renegade production started in China Fiat Mobi
- Production started on February 29 in Mirafiori (Italy) plant
- Offered with Euro 6 gasoline and diesel engine options
- Available in Europe in Q2
- Production started on March 7 in Betim (Brazil) plant
- All-new model
- Focused on urban mobility
- Production started on April 18 in Guangzhou plant
- Second locally produced Jeep SUV in China
- Commercial launch scheduled for Q2
Chrysler Pacifica
- Production started on February 29 in Windsor (Canada) plant
- Unsurpassed highway fuel-economy rating in its segment
- Industry's first hybrid minivan, available in H2
- Named to Ward’s “10 Best Interiors” list for 2016
Q1 2016 Results
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April 26, 2016
Q1 ‘16 summary *
Shipments in line with Q1 ’15. Increases in EMEA and NAFTA
- ffset decreases in LATAM and APAC.
Shipments (000s units)
1,093 1,086
2015 2016
Q1
Includes reduced financial charges offset by increased taxes. Net profit at €478M (vs €27M in Q1 ‘15)
Adjusted net profit (€M)
Q1 31 528
2015 2016
Refer to Appendix for definitions of supplemental financial measures. Figures may not add due to rounding.
Net revenues up 3%, or 4% at constant exchange rates - CER
Net revenues (€M)
25,843 26,570
2015 2016
Q1
Adjusted EBIT up 97%, with margin nearly doubled to 5.2% vs 2.7% in Q1 ‘15
Adjusted EBIT(€M)
700 1,379
2015 2016
Q1
Net industrial debt increased mainly due to working capital seasonality (€1.3B) and unfavorable FX translation (€0.4B)
Net industrial debt (€B)
5.0 6.6
Liquidity in line with year-end 2015 with €2.5B RCF increase and €1.25B bond issuance offsetting operational seasonality, $2.0B
TLB prepayment and €0.5B unfavorable FX
Available liquidity (€B)
24.3 24.6
Mar 31, 2016 Dec 31, 2015 Mar 31, 2016 Dec 31, 2015 * Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015. Refer to the Appendix for a reconciliation of these results to amounts previously reported.
Q1 2016 Results
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April 26, 2016
€M
Q1 ‘16 Adjusted EBIT walk *
700 626 76 (53) 71 (20) 18 (39) 1,379
Q1 '15 NAFTA LATAM APAC EMEA Maserati Components Other & Eliminations Q1 '16
B/(W) than Q4 ‘15 (109) (18) (11) (15) 2 (47) 47 (151)
* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015. Refer to the Appendix for a reconciliation of these results to amounts previously reported.
Q1 2016 Results
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April 26, 2016 Cash flows from operating activities, net of Capex
(1,040)
Change in Net industrial debt
(1,544)
Q1 ‘16 Net industrial debt walk *
€M (5,049) 2,756 (634) (26) (1,316) (1,820) (504) (6,593)
Dec 31 '15 post Ferrari spin-off Adjusted industrial EBITDA Financial charges and taxes ** Change in funds & other Working capital Capex Scope, FX & dividend Mar 31 '16
∆ vs Q1 ’15
Excluding Ferrari
770 (82) (536) (296) 179 (754)
* Information for 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015. Refer to the Appendix for a reconciliation of these results to amounts previously reported. ** Net of IAS 19
Difference in Net industrial debt flows Q1 ‘16 vs Q1 ‘15
(719)
Q1 2016 Results April 26, 2016
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NAFTA
Q1 ‘16 Q1 ‘15 ∆ Sales (k units) 634 587 8% Market share 12.9% 12.4% 50 bps U.S. dealer inventories (days of supply) 82 73 9 d/s Shipments (k units) 649 633 3% Net revenues (€M) 17,136 16,177 6% 601 1,227
309 96 117 36 68
Q1 '15 Volume & Mix Net price Industrial costs SG&A Other Q1 '16
- U.S. & Canada industry sales up 3% and 8%, respectively, with
Group sales up 8% in the region
- U.S. sales up 9% to 551k vehicles with share up 70 bps; Jeep
sales up 17%
- U.S. dealer days of supply consistent with year-end 2015
- U.S. fleet mix at 30% vs 23% in Q1 ’15 due to the timing of
fleet sales
- Continued as market leader in Canada with 63k vehicles sold
(+2%); Jeep sales up 35%
- Mexico sales flat at 20k vehicles with Ram brand +49%
- Shipments: U.S. +19k (+3%), Canada -1k (-2%), Mexico -2k
(-11%)
- Net revenues up 6% (5% at CER) on higher shipments, positive
vehicle mix, improved net pricing and favorable FX translation Adjusted EBIT walk (€M)
%= Adjusted EBIT margin 7.2% 3.7%
- Volume & mix improvement primarily driven by
Jeep, Ram and minivans offsetting lower 200 and Dart volumes
- Net price improvement reflects positive gross
pricing partially offset by higher incentives and FX transaction impact of the CAD and MXN
- Industrial costs reflect purchasing savings and
lower recall campaign costs partially offset by higher manufacturing and product costs for content enhancements
- SG&A improvement primarily due to reduced
advertising spend
- Other reflects FX effects
B/(W) Q4 ‘15 (34) (79) (121) 85 40 (109)
Sales data represents sales to retail and fleet customers and limited deliveries to Group-related persons. Sales by dealers to customers are reported through a new vehicle delivery system.
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April 26, 2016
LATAM
Q1 ‘16 Q1 ‘15 ∆ Sales (k units) 109 153 (29%) Market share 12.7% 14.7% (200) bps Inventories (days of supply) 49 46 3 d/s Shipments (k units) 102 135 (24%) Net revenues (€M) 1,311 1,551 (15%)
- Industry down 18% due to continued macroeconomic
weakness
- Brazil industry down 28% y-o-y, Argentina up 1%
- Group sales down more than industry due to actions to
protect margins
- Continued as market leader in Brazil with share at 18.1%,
180 bps lead over nearest competitor
- Jeep Renegade and new Fiat Toro had strong
performance in Brazil with segment share of 27.2% and 59.3%, respectively
- Shipments in Brazil down 37k units, Argentina up 4k units
- Net revenues +5% at CER due to better mix offsetting lower
volume
6.4% 4.2%
B/(W) Q4 ‘15 28 (7) (15) 4 (28) (18)
(65)
10 4 22 34 6 11
Q1 '15 Volume & Mix Net price Industrial costs SG&A Other Q1 '16 (4.2%) 0.8%
- Overall volume down reflecting poor trading
conditions in Brazil was more than offset by better mix from newly launched Jeep Renegade and Fiat Toro
- Higher industrial costs from new product
launches and input cost inflation more than offset by efficiencies
- Lower SG&A driven primarily by lower
marketing expense Adjusted EBIT walk (€M)
%= Adjusted EBIT margin
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April 26, 2016
APAC
Q1 ‘16 Q1 ‘15 ∆ Sales (k units)
Of which China JV sales
53
24
59
13
(10%)
85%
Market share 0.7% 0.8% (10) bps Inventories (days of supply) 94 137 (43) d/s Shipments (k units) 25 47 (47%) Net revenues (€M) 949 1,512 (37%)
- Industry demand flat with China +1%, India +2%, Australia +3%,
South Korea +6% offsetting a 7% decline in Japan
- Group sales decreased 10% compared with prior year
- Australia -50% due to price increases taken to offset
financial impact of AUD weakness
- Japan +9% outperforming the industry
- China -1%, South Korea -6%, India -2%
- Jeep (69% of regional group sales) +17% y-o-y driven by
strong sales of China locally produced Jeep Cherokee
- Consolidated shipments -47% with Jeep -56% due to
transition to local production
- Net revenues -36% at CER
4.2%
- Consolidated shipments declined due to transition to
Jeep local production in China and lower volumes in Australia due to pricing to offset negative FX impact Unfavorable mix resulted from shipment of vehicles affected by Tianjin port explosion in Q3 ‘15
- SG&A improved primarily due to lower direct
marketing expenses, now incurred by China JV
- Other reflects improvement of China JV results due
to local production and commercialization of Jeep Cherokee
4.3%
65
(120) 9 (2) 50
12
10
Q1 '15 Volume & Mix Net price Industrial costs SG&A Other Q1 '16 B/(W) Q4 ‘15 (84) 17 (20) 37 39 (11)
4.3% 1.3%
APAC market share reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea, and India). Market share is based on retail registrations except in India where market share is based on wholesale volumes.
Adjusted EBIT walk (€M)
%= Adjusted EBIT margin
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April 26, 2016
EMEA
Q1 ‘16 Q1 ‘15 ∆ Sales (k units) 352 319 10% EU Market share - passenger cars 6.7% 6.2% 50 bps EU Market share - LCVs 10.9% 11.0% (10) bps Inventories (days of supply) 57 58 (1) d/s Shipments (k units) 304 271 12% Net revenues (€M) 5,040 4,684 8%
25
73 (24) 27 (9) 4
96
Q1 '15 Volume & Mix Net price Industrial costs SG&A Other Q1 '16
1.9%
Passenger Cars
- EU28+EFTA (EU) industry up 8% to 3.9M units with growth in all
major markets: Spain (+7%), Italy (+21%), France (+8%), UK (+5%) and Germany (+4%)
- EU sales up 16% to 263k units. EU market share up 50 bps driven
by Italy (+90 bps), Spain (+20 bps), UK (+10 bps), France (+10 bps)
- ffset by a decline in Germany (-30bps)
- Shipments at 240k (+13%)
LCVs
- EU industry up 10% to 0.5M units with growth in all major
markets: Italy (+19%), France (+10%), Spain (+9%) and Germany (+8%)
- Sales up 9% to 56k units with EU market share down 10 bps
- Shipments at 64k (+8%)
- Volume increase and favorable mix driven by Jeep
Renegade, Fiat 500X and Tipo
- Lower net price driven by higher incentives in EU
- Industrial costs reflect manufacturing and
purchasing efficiencies partially offset by higher R&D
0.5%
B/(W) Q4 ‘15 (13) 7 (24)
- 15
(15)
Adjusted EBIT walk (€M)
%= Adjusted EBIT margin
Q1 2016 Results April 26, 2016
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Q1 ‘16 Q1 ’15 ∆ Shipments 6,295 7,306 (14%) Net revenues (€M) 508 523 (3%) Adjusted EBIT (€M) 16 36 (56%)
Commercial Performance
- Shipments down 14% due to lower shipments in
North America (-16%) and Europe (-8%) partially
- ffset by higher shipments in China (+36%)
Financial Performance
- Net revenues down 3% (-3% at CER), with lower
shipments partially offset by positive mix and FX
- Adjusted EBIT decreased to €16M primarily due to
lower volumes
Q1 ‘16 Shipments By Market
North America 37% Europe Top-5 20% Greater China 24% Japan 4% Others 15%
Luxury brand Maserati
Levante
Production started in Q1 at Mirafiori plant North America remains #1 market for the brand
Q1 2016 Results April 26, 2016
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Components
- Net revenues down 5% (flat at CER) reflecting volume declines at Comau and Teksid
more than offsetting higher volumes at Magneti Marelli
- Adjusted EBIT up 26% with favorable mix more than offsetting higher industrial costs
- Magneti Marelli order intake was €653M (+17% vs Q1 ‘15) with non-captive at 53%
- Comau order backlog was €972M in line with year-end 2015, but lower than at end
- f Q1 ‘15
Net revenues
2,435 2,319
Q1 '15 Q1 '16
68 86
Q1 '15 Q1 '16
Adjusted EBIT (€M) Margin
3.7% 2.8%
Q1 2016 Results April 26, 2016
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NAFTA
(passenger cars, UVs, pickup trucks & LCVs)
LATAM
(passenger cars & LCVs)
APAC
(passenger cars only)
EMEA (EU28+EFTA)
(passenger cars & LCVs)
FY '15 FY '16E FY '15 FY '16E FY '15 FY '16E FY '15 FY '16E
Industry outlook
28.9 - 29.4 21.1 21.0 – 21.5 28.2 3.6 - 4.1 4.1 16.1 – 16.6 16.1 M units
- Forecast unchanged
- U.S. industry remains strong
- Forecast unchanged – awaiting resolution
- f political uncertainties
- Continued weak market conditions
indicates low-end of range
- Forecast unchanged
- Modest industry growth continues
- Forecast unchanged
- Q1 ‘16 trend indicates high-end of range
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Q1 2016 Results April 26, 2016
2016 guidance - confirmed
Net revenues Adjusted EBIT Adjusted net profit Net industrial debt
>€110B >€5.0B >€1.9B
- As per initial guidance:
- NAFTA and EMEA continue trend of improving margin performance
- LATAM returns to modest profitability with Pernambuco reaching full model production in H2
- APAC profitability improving in H2 as Jeep manufacturing localization in China completed
- Maserati performance improving in H2 following Levante launch
- Capex spending in line with 2015
- Net industrial debt confirmed with Q1 ‘16 working capital seasonality expected
to substantially reverse in Q2 ’16
<€5.0B
Q1 2016 Results April 26, 2016
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APPENDIX
Q1 2016 Results April 26, 2016
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FCA monitors its operations through the use of various supplemental financial measures that may not be comparable to other similarly titled measures of other
- companies. Accordingly, investors and analysts should
exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial measures reported by other companies. Group management believes these supplemental financial measures provide comparable measures of its financial performance which then facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and
- ther operational decisions.
Supplemental financial measures
FCA’s supplemental financial measures are defined as follows:
- Adjusted Earnings Before Interest and Taxes (“Adjusted
EBIT”) is computed as EBIT excluding: gains/(losses)
- n the disposals of investments, restructuring,
impairments, asset write-offs and other unusual items that are considered rare or discrete events that are infrequent in nature. These same items, on a tax effected basis, are factored into the calculation of Adjusted net profit and Adjusted basic EPS
- 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
- f Net Industrial Debt
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Q1 2016 Results April 26, 2016
Key performance metrics
€M
Q1 ’16 Q1 ‘15 Worldwide shipments (units ‘000) 1,086 1,093 Net revenues 26,570 25,843 EBIT 1,307 696 Adjustments (72) (4) Adjusted EBIT 1,379 700 Of which: Investment income, net 62 50 Net financial expenses (512) (608) Profit before taxes 795 88 Tax expense (317) (61) Net profit 478 27 Adjusted net profit 528 31 EBITDA 2,724 2,033
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Q1 2016 Results April 26, 2016
Reconciliation of Adjusted EBIT to EBIT and Adjusted net profit to Net profit
Adjusted EBIT to EBIT
Q1 ’16 Q1 ‘15 Adjusted EBIT 1,379 700 NAFTA capacity realignment (51)
- Venezuela currency devaluation
(19)
- Restructuring costs
(7) (4) Other 5
- Total adjustments
(72) (4) EBIT 1,307 696
€M
Adjusted net profit to Net profit
Q1 ’16 Q1 ‘15 Adjusted net profit 528 31 Adjustments (as above) (72) (4) Tax impact on adjustments 22
- Adjustments, net of taxes
(50) (4) Net profit 478 27
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Q1 2016 Results April 26, 2016
Reconciliation of Net industrial debt to Debt
March 31, 2016 December 31, 2015
Net industrial debt 6,593 5,049 Net financial services debt 1,442 1,499 Net debt 8,035 6,548 Intercompany financial receivables/(payables), net — (39) Current financial receivables from jointly-controlled financial services companies 35 16 Other financial assets/(liabilities), net 63 117 Current securities 459 482 Cash and cash equivalents 17,963 20,662 Debt 26,555 27,786
€M
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Q1 2016 Results April 26, 2016
Reconciliation of results for Ferrari separation
€M
Results excluding Ferrari (as reported herein) Ferrari, net of intercompany Results including Ferrari (previously reported)
Shipments (units ‘000) 1,093 2 1,095 Net revenues 25,843 553 26,396 EBIT 696 96 792 Adjusted EBIT 700 100 800 Net profit 27 65 92 The following is a reconciliation of the Group's results as reported herein for the three months ended March 31, 2015 (re-presented to exclude Ferrari) to the Group's results previously reported Three months ended March 31, 2015
Q1 2016 Results April 26, 2016
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Market Share - mass-market brands
APAC
Market share is based on retail registrations except in India where market share is based
- n wholesale volumes
NAFTA LATAM
0.6 0.8 0.9 0.8 3.0 3.9 4.0 1.9
0.6 0.3 0.3 0.3 0.3 0.3 0.4
0.1
LCV Passenger Cars LCV Passenger Cars
EMEA
12.2 13.2 12.6 12.4 22.9 22.7 19.7 18.1
Q1 ‘13 Q1 ‘14 Q1’ 15 Q1 ‘16
11.4 12.5 12.5 13.2 16.0 16.6 16.4 15.5
29.0 28.1 28.2 29.1 43.5 44.3 45.4 44.7 6.4 6.0 6.2 6.7
11.7
11.4
11.0
10.9
Q1 ‘13 Q1 ‘14 Q1’ 15 Q1 ‘16 Q1 ‘13 Q1 ‘14 Q1’ 15 Q1 ‘16 Q1 ‘13 Q1 ‘14 Q1’ 15 Q1 ‘16
%
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Q1 2016 Results April 26, 2016
Note: Numbers may not add due to rounding; total cash maturities excluding accruals
Outstanding March 31 ‘16 9M 2016 2017 2018 2019 2020 Beyond
9.9 Bank Debt 3.0 2.8 2.5 0.5 0.4 0.9 14.8 Capital Market 2.8 2.4 1.9 1.5 1.3 4.9 1.6 Other Debt 0.5 0.2 0.2 0.2 0.1 0.4 26.3 Total Cash Maturities 6.3 5.3 4.5 2.2 1.8 6.2 18.4 Cash & Mktable Securities 5.9 Undrawn Committed Revolving Facilities 24.3 Total Available Liquidity 5.0 Sale of receivables (IFRS de-recognition compliant) 3.2 Of which receivables sold to financial services JVs (FCA Bank)
Debt maturity schedule
€B
Q1 2016 Results April 26, 2016
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Group Investor Relations Team
Joe Veltri +1-248-576-9257 Vice President Erin Banyas +1-248-512-3224 Francesca Ferragina +39-011-006-2308 Tim Krause +1-248-512-2923 Alois Monger +1-248-512-1549 Paolo Mosole +39-011-006-1064 fax: +39-011-006-3796 email: investor.relations@fcagroup.com websites: www.fcagroup.com www.fcausllc.com