Q3 F C A Q 3 2 0 1 9 R E S U L T S | O C T O B E R 3 1 , 2 0 1 9
SAFE HARB OR STATE ME N T This document, and in particular the sections entitled “ 2019 Industry Outlook and Guidance” and electrification, connectivity and autonomous-driving characteristics; various types of claims, “ 2020 Guidance”, contain forward-looking statements. In particular, these forward-looking lawsuits, governmental investigations and other contingencies affecting the Group, including statements include statements regarding future financial performance and the Company’s product liability and warranty claims and environmental claims, investigations and lawsuits; expectations as to the achievement of certain targeted metrics, including net cash/(debt) and material operating expenditures in relation to compliance with environmental, health and safety net industrial cash/(debt), revenues, industrial free cash flows, vehicle shipments, capital regulations; the intense level of competition in the automotive industry, which may increase due investments, research and development costs and other expenses at any future date or for any to consolidation; exposure to shortfalls in the funding of the Group’s defined benefit pension future period are forward-looking statements. These statements may include terms such as plans; the Group’s ability to provide or arrange for access to adequate financing for the Group’s “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, dealers and retail customers and associated risks related to the establishment and operations of “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, financial services companies, including capital required to be deployed to financial services; the “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future Group’s ability to access funding to execute the Group’s business plan and improve the Group’s performance. Rather, they are based on the Group’s current state of knowledge, future business, financial condition and results of operations; a significant malfunction, disruption or expectations and projections about future events and are by their nature, subject to inherent security breach compromising the Group’s information technology systems or the electronic risks and uncertainties. They relate to events and depend on circumstances that may or may not control systems contained in the Group’s vehicles; the Group’s ability to realize anticipated occur or exist in the future and, as such, undue reliance should not be placed on them. benefits from joint venture arrangements; the Group’s ability to successfully implement and Actual results may differ materially from those expressed in forward-looking statements as a result execute strategic initiatives and transactions, including the Group’s plans to separate certain of a variety of factors, including: the Group’s ability to launch new products successfully and to businesses; disruptions arising from political, social and economic instability; risks associated with maintain vehicle shipment volumes; changes in the global financial markets, general economic our relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or environment and changes in demand for automotive products, which is subject to cyclicality; shortages of raw materials; developments in labor and industrial relations, including any work changes in local economic and political conditions, changes in trade policy and the imposition stoppages, and developments in applicable labor laws; exchange rate fluctuations, interest rate of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax changes, credit risk and other market risks; political and civil unrest; earthquakes or other reforms or other changes in tax laws and regulations; the Group’s ability to expand certain of the disasters and other risks and uncertainties. Group’s brands globally; the Group’s ability to offer innovative, attractive products; the Group’s Any forward-looking statements contained in this document speak only as of the date of this ability to develop, manufacture and sell vehicles with advanced features including enhanced document and the Company disclaims any obligation to update or revise publicly forward- looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB. Q3 2019 RESULTS | 2 October 31, 2019
B USI N E SS HI G HLI G HTS DELI VERED RECORD Q3 RESULTS AS EARNI NGS MOMENTUM CONTINUES RECORD ADJUSTED EBIT OF €2.0B for RAM BRAND CONTINUED TO GAIN TRANSFORMATION OF MACK both Group and North America, with SHARE in U.S. large pickup market, PLANT (DETROIT) ON TRACK to record margins of 7.2% and 10.6%, up 170 bps y-o-y to 25.4%, with build all-new 3-row full-size respectively; continued strong results higher share in both light-duty Jeep SUV and next generation in LATAM, with Adjusted EBIT up 83% and heavy-duty segments Jeep Grand Cherokee EXTENDED FCA BANK JOINT VENTURE RATIONALIZED PRODUCT FCA AND PSA BOARDS EACH with Crédit Agricole Consumer PORTFOLIO PLANS for Europe in UNANIMOUSLY AGREED to work Finance to Dec 2024, with the aim to the A-segment, as well as for Alfa towards a full combination of enlarge FCA Bank’s product range Romeo, resulted in €1.4B non -cash their respective businesses by impairment charges way of a 50/50 merger Q3 2019 RESULTS | 3 October 31, 2019
K E Y COMME RCI AL ME TRI CS SHARE GAI NS I N NORTH AMERI CA AND LATI N AMERI CA, WI TH CONTINUED MARKET LEADERSHIP I N BRAZI L COMBINED SALES 000 units 641 634 314 283 150 150 54 33 Q3 2019 Q3 2018 EUROPE, MIDDLE NORTH AMERICA ASIA PACIFIC LATIN AMERICA EAST & AFRICA 12.1% 12.0% 0.4% 0.7% 5.9% 6.8% 13.7% 13.4% MARKET SHARE (1) Q3 INDUSTRY (1) flat - 7% + 1% - 3% (2019 vs. 2018) (1) Industry and market share data reflect the following: Asia Pacific 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, as well as management’s estimates of industry sales data, which use certain data provided by third party sources. E ffective Jan 2019, industry data sourced from China Passenger Car Association. Europe, Middle East & Africa reflects aggregate for EU 28 + EFTA markets only and is derived from a combination of passenger car information from European Automobile Manufacturers Association (ACEA) Registration • Databases and internal information on LCVs October 31, 2019 Q3 2019 RESULTS | 4
FI N ANCI AL HI G HLI G HTS RECORD ADJUSTED EBI T AND MARGI N, DESPI TE LOWER VOLUMES Record North America results, with Adjusted EBIT of €2.0B; margin at € million, except as otherwise stated 10.6%, up 40 bps RESULTS FROM CONTINUING OPERATIONS Q3 2019 Q3 2018 COMBINED SHIPMENTS (1) (000 units) 1,059 1,160 - 9% Net revenues flat while CONSOLIDATED SHIPMENTS (1) (000 units) 1,031 1,125 - 8% maintaining dealer stock discipline NET REVENUES (€ billion) 27.3 27.6 - 1% ADJUSTED EBIT * 1,959 1,872 + 5% Positive Industrial free cash flows, including ADJUSTED EBIT MARGIN * 7.2% 6.8% + 40 bps €2.2B of capex ADJUSTED NET PROFIT * 1,262 1,343 - 6% ADJUSTED DILUTED EARNINGS PER SHARE (EPS) * (€) 0.81 0.86 - 6% INDUSTRIAL FREE CASH FLOWS * 178 (98) n.m. 23.8 23.5 + 1% AVAILABLE LIQUIDITY ( € billion) (at Jun 30 2019) (1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consoli dated shipments only include shipments by the Group’s consolidated subsidiaries * Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics October 31, 2019 Q3 2019 RESULTS | 5
Q3 2 0 1 9 ADJUSTE D E B I T * WALK RECORD RESULTS DRI VEN BY FAVORABLE MI X AND CONTINUED PRI CING DI SCIPLINE € million % = Adjusted EBIT margin 1,959 1,872 7.2% 6.8% Q3 2018 Volume & Mix Net Price Industrial Costs SG&A Other Q3 2019 * Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics Q3 2019 RESULTS | 6 October 31, 2019
Q3 2 0 1 9 I N DUSTRI AL FRE E CASH FLOWS * POSITIVE CASH GENERATION WI TH HIGHER CAPEX AND SEQUENTIALLY LOWER VOLUMES € million 178 Adjusted Changes in Financial Industrial Working Industrial Capex Provisions Charges Free Cash Capital EBITDA & Other & Taxes (1) Flows 56 (796) 1,446 (516) 86 276 ∆ VS. Q3 2018 (1) Net of IAS 19 * Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics October 31, 2019 Q3 2019 RESULTS | 7
Q3 2 0 1 9 ADJUSTE D E BI T RECORD NORTH AMERI CA RESULTS AND CONTINUED I MPROVEMENT I N LATAM € million % = Adjusted EBIT margin 2,019 1,937 Q3 2019 10.6% Q3 2018 10.2% 152 83 6.9% 4.2% 15 (1.5)% (0.5)% (1.2)% (12.9)% 2.4% (10) (16.5)% (25) (55) (51) (96) NORTH AMERICA ASIA PACIFIC EUROPE, MIDDLE EAST LATIN AMERICA MASERATI & AFRICA October 31, 2019 Q3 2019 RESULTS | 8
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