Firs rst t Qua uart rter er 2017 17 Result lts April 26, 2017 - PowerPoint PPT Presentation

Firs rst t Qua uart rter er 2017 17 Result lts April 26, 2017 Q1 2017 Results Q2 2017 Results April 26, 2017 April, 2017 ‹#› 1

Safe Harbor Statement This document, and in particular the section entitled “ 2017 of competition in the automotive industry, which may increase guidance  confirmed”, contains forward-looking statements. due to consolidation; exposure to shortfalls in the Group's These statements may include terms such as “may”, “will”, defined benefit pension plans; the Group's ability to provide or “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, arrange for adequate access to financing for the Group's “believe”, “remain”, “on track”, “design”, “target”, “objective”, dealers and retail customers and risks associated with financial “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or services companies; the Group's ability to access funding to similar terms. Forward-looking statements are not guarantees execute the Group's business plan and improve the Group's of future performance. Rather, they are based on the Group’s business, financial condition and results of operations; changes current expectations and projections about future events and, in the Group's credit ratings; the Group's ability to realize by their nature, are subject to inherent risks and uncertainties. anticipated benefits from any joint venture arrangements and They relate to events and depend on circumstances that may or other strategic alliances; disruptions arising from political, social may not occur or exist in the future and, as such, undue and economic instability; risks associated with our relationships reliance should not be placed on them. Actual results may differ with employees, dealers and suppliers; increases in costs, materially from those expressed in such statements as a result disruptions of supply or shortages of raw materials; of a variety of factors, including: the Group's ability to maintain developments in labor and industrial relations and vehicle shipment volumes; changes in the global financial developments in applicable labor laws; exchange rate markets, general economic environment and changes in fluctuations, interest rate changes, credit risk and other market demand for automotive products, which is subject to cyclicality; risks; political and civil unrest; earthquakes or other disasters changes in local economic and political conditions, including and other risks and uncertainties. with regard to trade policy; the Group's ability to expand Any forward-looking statements contained in this document certain of the Group's brands internationally; various types of speak only as of the date of this document and the Company claims, lawsuits, governmental investigations and other does not undertake any obligation to update or revise contingent obligations against the Group, including product publicly forward-looking statements. Further information liability and warranty claims and environmental claims, concerning the Group and its businesses, including factors governmental investigations and lawsuits; material operating that could materially affect the Company’s financial results, is expenditures in relation to compliance with environmental, included in the Company’s reports and filings with the U.S. health and safety regulations; the Group's ability to enrich its Securities and Exchange Commission, the AFM and CONSOB. product portfolio and offer innovative products; the high level Q1 2017 Results April 26, 2017 2

Highlights Continued Cash flows from Record strong operating Gross debt Q1 results with performance in activities, net of reduced NAFTA, EMEA, capex, €353M Adjusted EBIT by €2.9B Maserati and better than margin at 5.5% Components Q1 ’16 Moody’s RCF increased Completed sale improved Annual General by €1.25B outlook on of CNHi shares Meeting of with maturity FCA’s ratings to Shareholders with proceeds extended to positive from held on April 14 of €144M 2022 stable 2017 guidance confirmed Net revenues €115 – €120B Adjusted net profit* > €3.0B > €7.0B Adjusted EBIT* Net industrial debt* < €2.5B * Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics. Guidance is not provided on the most directly comparable IFRS financial statement line item for Adjusted EBIT and Adjusted net profit as the income or expense excluded from these non-GAAP supplemental financial measures in accordance with our policy are, by definition, not predictable and uncertain. Q1 2017 Results April 26, 2017 3

Products Premium m Most st Capab able le Upgrad adab able le Strateg tegy y Compac act t SUV Technolo ology gy Conti tinu nues es All-new Stelvio European debut at Completing global Chrysler Portal Concept debuted Geneva International Motor Show industrialization plan at 2017 Consumer Electronics Show in Las Vegas Commercial launch in EMEA in All-new Compass European debut Q1 ’17, NAFTA in Q2 ’17 and at Geneva International Motor Forward-thinking interpretation of APAC in Q3 ’17 Show family transportation, focused towards millennial generation Features an all-new, all-aluminum Commercial launch in NAFTA in 2.0-liter direct-injection turbo gas Q1 ’17 and Europe in Q2 ’17 Semi-autonomous fully electric engine delivering a class-leading vehicle with estimated range of Offers best-in-class 4x4 off-road standard 280 hp/306 lb-ft of more than 250 miles capability and advanced torque fuel-efficient powertrains Created in collaboration with Quadrifoglio with best-in-class supplier partners and upgradable 505 hp, 0-60 mph in 3.9 seconds to Level Four autonomous driving and top speed of 177 mph Q1 2017 Results April 26, 2017 4

Q1 ‘17 summary Shipm pment nts (k units) Net revenu nues s (€B) Adju justed sted EBIT T (€M) 1,535 35 1,14 145 1,131 131 27.7 1,379 79 67 67 JVs 26.6 45 45 5.5% Consolidated 1,0 ,078 1,0 ,086 5.2% Q1 ‘17 Q1 ‘16 Q1 ‘17 Q1 ‘16 Q1 ‘17 Q1 ‘16  Combined shipments (incl.  Impact of slightly lower  Improvement in all segments JVs) in line with prior year consolidated shipments, except LATAM more than offset by positive  Increased JV shipments due  Margin up 30 bps mix and FX to localized Jeep production in China Net industrial rial deb ebt (€M) Avai ailab able e liqui quidity y (€B) Adju justed ed net profit fit (€M) 23.8 671 671 21.6 Undrawn 6.2 528 528 committed 7.4 credit lines 17.6 .6 Cash & 14.2 .2 (4,585) marketable (5,112) securities Mar 31 ‘17 Dec 31 ‘16 Mar 31 ‘17 Dec 31 ‘16 Q1 ‘17 Q1 ‘16  Improved operating  Increase mainly driven by  Gross debt reduced by €2.9B performance and reduced negative working capital due to prepayment of 2017 finance charges, net of seasonality TLB and repayment of higher taxes Eurobond  Cash flows from operating  Net profit of €641M compared activities, net of capex,  Syndicated RCF availability to €478M in Q1 ’16 €353M better than in Q1 ‘16 increased €1.25B to €6.25B Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics. Figures may not add due to rounding. Q1 2017 Results April 26, 2017 5

Q1 ‘17 Adjusted EBIT walk €M % = Adjusted EBIT margin By segment ment 91 91 32 32 1,535 35 82 82 9 14 14 1,379 (41) 5.5% 5% (31) 5.2% 2% Q1 ‘16 NAFTA FTA LATAM AM APAC EMEA Mase serat ati Compo ponents ents Others ers & Q1 ‘17 Eliminati ination ons B/(W) Q4 ‘16 (10) 0) (30) 0) (9) (19) 9) (77) 7) (18) 8) 149 149 (14) By operat rational al driver ver 291 291 51 51 1,535 35 (92) (44) 1,379 (50) 5.5% 5% 5.2% 2% Q1 ‘16 Volu lume e & Mix Net t pric ice Industrial strial costs ts SG&A Other er Q1 ‘17 B/(W) Q4 ‘16 (243 43) (228 28) 203 203 212 212 42 42 (14) 4) Q1 2017 Results April 26, 2017 6

Q1 ‘17 Net industrial debt walk €M Change in Net industrial debt (527) Cash flows from industrial operating activities, net of capex (687) 3,072 72 (467) 7) (287) 7) (774) 4) 160 160 (4,585) 85) (5,112) 112) (2,231) 231) Dec 31 ‘16 Adjuste sted Finan nancia ial l Chang ange in Working king Capex pex FX & Other er Mar 31 ‘17 industria strial charge ges fund nds s & other er capital pital EBITDA & Taxes es* ∆ vs. Q1 ’16 316 316 168 168 (261 61) 541 541 (411 11) 664 664 1,01 017 Q1 ‘17 cash flows from industrial operating activities, net of capex 353 higher than Q1 ’16 * Net of IAS 19 Q1 2017 Results April 26, 2017 7