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 Group’s ability to provide or arrange for adequate access to guidance - confirmed”, contains forward-looking statements. financing for the Group’s dealers and retail customers; the These statements may include terms such as “may”, “will”, Group’s ability to access funding to execute the Group’s “expect”, “could”, “should”, “estimate”, “anticipate”, “believe”, business plan and improve the Group’s business, financial “remain”, “on track”, “design”, “target”, “objective”, “goal”, condition and results of operations; various types of claims, “forecast”, “projection”, “outlook”, “prospects”, “plan”, lawsuits and other contingent obligations against the “intend”, or similar terms. Forward-looking statements are Group; disruptions arising from political, social and not guarantees of future performance. Rather, they are based economic instability; material operating expenditures in on the Group’s current expectations and projections about relation to compliance with environmental, health and future events and, by their nature, are subject to inherent safety regulation; developments in labor and industrial risks and uncertainties. They relate to events and depend on relations and developments in applicable labor laws; circumstances that may or may not occur or exist in the increases in costs, disruptions of supply or shortages of future and, as such, undue reliance should not be placed on raw materials; exchange rate fluctuations, interest rate them. Actual results may differ materially from those changes, credit risk and other market risks; political and expressed in such statements as a result of a variety of civil unrest; earthquakes or other disasters and other risks factors, including: the Group’s ability to reach certain and uncertainties. minimum vehicle sales volumes; developments in global Any forward-looking statements contained in this financial markets and general economic and other conditions; document speak only as of the date of this document and changes in demand for automotive products, which is highly the Company does not undertake any obligation to update cyclical; the Group’s ability to enrich the product portfolio or revise publicly forward-looking statements. Further and offer innovative products; the high level of competition information concerning the Group and its businesses, in the automotive industry; the Group’s ability to expand including factors that could materially affect the certain of the Group’s brands internationally; changes in the Company’s financial results, is included in the Company’s Group’s credit ratings; the Group’s ability to realize reports and filings with the U.S. Securities and Exchange anticipated benefits from any acquisitions, joint venture Commission, the AFM and CONSOB. arrangements and other strategic alliances; potential shortfalls in the Group’s defined benefit pension plans; the Q1 2016 Results April 26, 2016 2

Group overview Components Mass-market brands by region Industry outlook & guidance Luxury brand - Maserati Appendix Q1 2016 Results Q1 2016 Results April 26, 2016 April 26, 2016 3

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 75 th 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 4

New products Chrysler Pacifica Maserati Levante  Production started on February 29 in Windsor (Canada) plant  Production started on February 29 in Mirafiori (Italy) plant  Unsurpassed highway fuel-economy rating in its segment  Offered with Euro 6 gasoline and diesel engine options  Industry's first hybrid minivan, available in H2  Available in Europe in Q2  Named to Ward’s “10 Best Interiors” list for 2016 Jeep Renegade production started in China Fiat Mobi  Production started on March 7 in Betim (Brazil) plant  Production started on April 18 in Guangzhou plant  All-new model  Second locally produced Jeep SUV in China  Focused on urban mobility  Commercial launch scheduled for Q2 Q1 2016 Results April 26, 2016 5

Q1 ‘16 summary * Shipments (000s units) Adjusted net profit ( € M) Q1 Q1 2016 528 2016 1,086 2015 1,093 31 2015 Shipments in line with Q1 ’15. Increases in EMEA and NAFTA Includes reduced financial charges offset by increased taxes. offset decreases in LATAM and APAC. Net profit at € 478M (vs €27M in Q1 ‘15) Net revenues ( € M) Net industrial debt ( € B) Q1 2016 26,570 Mar 31, 2016 6.6 25,843 Dec 31, 2015 2015 5.0 Net revenues up 3%, or 4% at constant exchange Net industrial debt increased mainly due to working capital rates - CER seasonality ( € 1.3B) and unfavorable FX translation ( € 0.4B) Adjusted EBIT ( € M) Available liquidity ( € B) Q1 24.3 Mar 31, 2016 2016 1,379 24.6 Dec 31, 2015 2015 700 Liquidity in line with year-end 2015 with € 2.5B RCF increase and Adjusted EBIT up 97%, with margin nearly doubled to 5.2% € 1.25B bond issuance offsetting operational seasonality, $2.0B vs 2.7% in Q1 ‘15 TLB prepayment and € 0.5B unfavorable FX Refer to Appendix for definitions of supplemental financial measures. Figures may not add due to rounding. * 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 April 26, 2016 6

Q1 ‘16 Adjusted EBIT walk * € M 71 76 18 1,379 626 (20) (39) (53) 700 Q1 '15 NAFTA LATAM APAC EMEA Maserati Components Other & Q1 '16 Eliminations B/(W) than (109) (18) (11) (15) 2 (47) 47 (151) Q4 ‘15 * 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 April 26, 2016 7

Q1 ‘ 16 Net industrial debt walk * € M Change in Net industrial debt (1,544) Cash flows from operating activities, net of Capex (1,040) 2,756 (634) (26) (1,316) (5,049) (1,820) (504) (6,593) Dec 31 '15 post Adjusted Financial Change Working Capex Scope, FX & Mar 31 '16 Ferrari spin-off industrial charges in funds capital dividend EBITDA and taxes ** & other Difference in Net industrial debt flows Q1 ‘16 vs Q1 ‘15 (719) ∆ vs Q1 ’15 770 (82) (536) (296) 179 (754) Excluding Ferrari * 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 Q1 2016 Results April 26, 2016 8

NAFTA o U.S. & Canada industry sales up 3% and 8%, respectively, with Group sales up 8% in the region Q1 ‘16 Q1 ‘15 ∆  U.S. sales up 9% to 551k vehicles with share up 70 bps; Jeep sales up 17% Sales (k units) 634 587 8%  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 Market share 12.9% 12.4% 50 bps fleet sales U.S. dealer inventories (days of supply) 82 73 9 d/s  Continued as market leader in Canada with 63k vehicles sold Shipments (k units) 649 633 3% (+2%); Jeep sales up 35%  Mexico sales flat at 20k vehicles with Ram brand +49% Net revenues ( € M) 17,136 16,177 6% o Shipments: U.S. +19k (+3%), Canada -1k (-2%), Mexico -2k (-11%) 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. o Net revenues up 6% (5% at CER) on higher shipments, positive vehicle mix, improved net pricing and favorable FX translation Adjusted EBIT walk ( € M) o Volume & mix improvement primarily driven by %= Adjusted EBIT margin 1,227 68 Jeep, Ram and minivans offsetting lower 200 and 36 117 Dart volumes 96 309 o Net price improvement reflects positive gross pricing partially offset by higher incentives and 7.2% FX transaction impact of the CAD and MXN 601 o Industrial costs reflect purchasing savings and lower recall campaign costs partially offset by 3.7% higher manufacturing and product costs for content enhancements o SG&A improvement primarily due to reduced advertising spend Q1 '15 Volume & Net price Industrial SG&A Other Q1 '16 Mix costs o Other reflects FX effects B/(W) (34) (79) (121) 85 40 (109) Q4 ‘15 Q1 2016 Results April 26, 2016 9