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F C A F U L L Y E AR 2 0 1 9 R E S U L T S | F E B R U AR Y 6 , 2 0 2 0

2019

February 6, 2020 FY 2019 RESULTS | 2

S A F E H A R B O R S T A T E M E N TThis document, and in particular the section entitled “FY 2020 Guidance”, contains forward-

looking statements. In particular, these forward-looking statements include statements

regarding future financial performance and the Company’s expectations as to the

achievement of certain targeted metrics, including revenues, industrial free cash flows, vehicle

shipments, capital investments, research and development costs and other expenses at any

future date or for any future period are forward-looking statements. These statements may

include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”,

“anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”,

“forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking

statements are not guarantees of future performance. Rather, they are based on the Group’s

current state of knowledge, future expectations and projections about future events and are

by their nature, 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 forward-looking statements as a

result of a variety of factors, including: the Group’s ability to launch new products successfully

and to maintain vehicle shipment volumes; changes in the global financial markets, general

economic environment and changes in demand for automotive products, which is subject to

cyclicality; changes in local economic and political conditions, changes in trade policy and

the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the

enactment of tax reforms or other changes in tax laws and regulations; the Group’s ability to

expand certain of the Group’s brands globally; the Group’s ability to offer innovative,

attractive products; the Group’s ability to develop, manufacture and sell vehicles with

advanced features including enhanced electrification, connectivity and autonomous-driving

characteristics; various types of claims, lawsuits, governmental investigations and other

contingencies affecting the Group, including product liability and warranty claims and

environmental claims, investigations and lawsuits; material operating expenditures in relation to

compliance with environmental, health and safety regulations; the intense level of competition

in the automotive industry, which may increase due to consolidation; the Group’s ability to

complete and realize expected synergies following completion of the Group’s proposed

merger with Peugeot S.A., exposure to shortfalls in the funding of the Group’s defined benefit

pension plans; the Group’s ability to provide or arrange for access to adequate financing for

the Group’s dealers and retail customers and associated risks related to the establishment and

operations of financial services companies, including capital required to be deployed to

financial services; 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; a significant

malfunction, disruption or security breach compromising the Group’s information technology

systems or the electronic control systems contained in the Group’s vehicles; the Group’s ability

to realize anticipated benefits from joint venture arrangements in certain emerging markets;

the Group’s ability to successfully implement and execute strategic initiatives and transactions,

including the Group’s plans to separate certain businesses; disruptions arising from political,

social and economic instability; risks associated with the Group’s relationships with employees,

dealers and suppliers; increases in costs, disruptions of supply or shortages of raw materials;

developments in labor and industrial relations, including any work stoppages, and

developments in applicable labor laws; 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 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.

FY 2019 RESULTS |February 6, 2020 3

B U S I N E S S H I G H L I G H T SH I S TORI C YEAR WI TH S TR ONG R ES UL TS WH I LE S ET T I NG A S EC UR E PATH TO R EMAI N AN I N DUSTRY L EADER

€1.1B ORDINARY DIVIDEND TO

BE PAID IN SPRING 2020, subject

to Board and shareholder

approval

RECORD U.S. RAM BRAND SALES of

703K units, up 18% y-o-y; U.S. large

pickup market share up 350 bps

vs. last year to 25.8%

COMPLETED SALE OF MAGNETI

MARELLI with cash proceeds of €5.8B

and payment of €2.0B extraordinary

dividend to shareholders

NEW UAW FOUR-YEAR COLLECTIVE

BARGAINING AGREEMENT IN U.S.,

building on Group’s commitment

to grow U.S. manufacturing

operations

FCA AND PSA SIGNED BINDING

COMBINATION AGREEMENT for

50/50 merger to create

3rd largest global OEM by

revenues and 4th by volume

STRONG OPERATING RESULTS WITH

ADJUSTED EBIT OF €6.7B and Industrial

free cash flows of €2.1B; record North

America Adjusted EBIT of €6.7B, with

higher results in LATAM at €0.5B


K E Y C O M M E R C I A L M E T R I C S

2,490

152

1,327

580

2,534

228

1,428

566

COMBINED SALES

MARKET SHARE (1) 12.0% 12.0%

FY INDUSTRY (1)

(2019 vs. 2018) - 2%

0.5% 0.7%

- 6%

6.4% 7.1%

flat

13.9% 12.8%

- 6%

N O R TH AMER I CA I N L I NE WI TH I NDUS TRY , C O N T I NUED S H AR E GAI N S I N L AT I N AMER I CA

NORTH AMERICA LATIN AMERICAASIA PACIFICEUROPE, MIDDLE EAST & AFRICA

(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. Effective 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

000 units

FY 2018

FY 2019


(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated 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

RESULTS FROM CONTINUING OPERATIONS FY 2019 FY 2018

COMBINED SHIPMENTS (1)(000 units) 4,418 4,842 - 9%

CONSOLIDATED SHIPMENTS (1)(000 units) 4,272 4,655 - 8%

NET REVENUES (€ billion) 108.2 110.4 - 2%

ADJUSTED EBIT* 6,668 6,738 - 1%

ADJUSTED EBIT MARGIN* 6.2% 6.1% + 10 bps

ADJUSTED NET PROFIT* 4,297 4,707 - 9%

ADJUSTED DILUTED EARNINGS PER SHARE (EPS)*(€) 2.73 3.00 - 9%

INDUSTRIAL FREE CASH FLOWS* 2,113 4,448 - 52%

AVAILABLE LIQUIDITY (€ billion)23.1 21.1

(at Dec 31 2018)

+ 9%

Record North America results, with Adjusted

EBIT of €6.7B; margin at 9.1%, up 50 bps

Higher results in Latin America, with substantial

improvement in Asia Pacific

Net revenues down slightly despite 8% reduction in consolidated shipments

Industrial free cash flows of €2.1B, with capex at €8.4B

F I N A N C I A L H I G H L I G H T SSTRONG RESULTS AND I MPROVED MARGI N DESP I TE LOWER VOLUMES

€ million, except as otherwise stated


F Y 2 0 1 9 A D J U S T E D E B I T * WA L K


€ million

% = Adjusted EBIT margin

FY 2018 Volume & Mix Net Price Industrial Costs SG&A Other FY 2019

F AVO R AB L E M I X AN D C O N TI N UED PR I C I NG D I SC I PL I N E DR I VE I MPROVED MAR GI N

6,738 6,668

6.1%6.2%


Adjusted

Industrial

EBITDA

CapexWorking

Capital

Changes in

Provisions

& Other

Financial

Charges

& Taxes (1)

Industrial

Free Cash

Flows

(1) Net of IAS 19


F Y 2 0 1 9 I N D U S T R I A L F R E E C A S H F L O WS *

S O L I D C AS H GEN ERAT I ON O N L O WER VO L UMES AN D S I GNI F I CAN TLY H I GHER C APEX

∆ VS. FY 2018 (178) (2,994) 2,389 (2,128) 576 (2,335)

€ million

2,113


6,690

(36) (6)

501

(199)

6,230

(296)

406

359

151

R EC ORD N O RTH AMER I C A R ES ULTS AN D S TR ONG PER F ORMAN C E I N L ATAM

9.1%

8.6%

(0.0)%

1.8%

(12.4)%

5.7%(1.3)%

(11.0)%

5.9%

4.4%

FY 2018

FY 2019

€ million


F Y 2 0 1 9 A D J U S T E D E B I T

NORTH AMERICA ASIA PACIFIC EUROPE, MIDDLE EAST & AFRICA

LATIN AMERICA MASERATI


6,2306,690

N O R T H A M E R I C ADEL I VERED R EC ORD R ES UL TS WH I LE R EDUCI NG DEAL ER S TO CK

FY ‘18 Volume & Mix

Net Price

Industrial Costs

SG&A Other FY ‘19

ADJUSTED EBIT WALK € million


8.6%

9.1%

• Shipments down 9%, primarily due to dealer stock

discipline, partially offset by volumes of all-new Jeep

Gladiator and higher Ram 1500 shipments

• Net revenues flat, with favorable model mix and

foreign exchange translation effects, offset by lower

volumes and negative channel mix

• Record Adjusted EBIT and margin, due to favorable

model mix, positive net price, industrial efficiencies,

lower advertising costs and favorable foreign

exchange effects, partially offset by lower volumes

and increased product costs on new vehicles

649 638

2,4012,633

Q4 '19 Q4 '18 FY '19 FY '18

SHIPMENTS(000 units)

20.619.4

73.4 72.4

Q4 '19 Q4 '18 FY '19 FY '18

NET REVENUES(€ billion)

2,0621,680

6,6906,230

10.0% 8.7%

9.1%

8.6%

Q4 '19 Q4 '18 FY '19 FY '18

ADJUSTED EBIT & MARGIN(€ million)


A S I A P A C I F I CI MPROVED R ES UL TS I N S P I TE O F C O N T I NUED MAR KET C H AL L EN GES



• Combined shipments down 29%, primarily from

lower China JV volumes

• Consolidated shipments down 10%, with increased

Jeep Wrangler volumes more than offset by lower

volumes of other vehicles, primarily Jeep Compass

and Alfa Romeo Stelvio

• Net revenues up 4%, with favorable vehicle mix

and reduced incentives, partially offset by lower

volumes

• Adjusted EBIT up, due to increased Net revenues,

as well as lower manufacturing and R&D costs,

partially offset by lower China JV results

(296)

(36)

(11.0)%

(1.3)%


Industrial Costs

SG&A Other FY ‘19Net Price

JV

Consolidated

20 2676 8420 28

73125

Q4 '19 Q4 '18 FY '19 FY '18

COMBINED SHIPMENTS(000 units)

149

5440

209

0.8 0.8

2.8 2.7

Q4 '19 Q4 '18 FY '19 FY '18


(5)

(112)(36)

(296)

(0.6)%

(13.2)%

(1.3)%

(11.0)%

Q4 '19 Q4 '18 FY '19 FY '18



E U R O P E , M I D D L E E A S T & A F R I C A

• Combined and consolidated shipments down

8% and 9%, respectively, primarily due to sales

channel actions and discontinued products

• Net revenues down 10%, primarily due to lower

volumes

• Adjusted EBIT down, with lower volumes,

higher incentives, compliance and product

costs, partially offset by reduced advertising

costs and labor efficiencies resulting from

restructuring actions, as well as favorable model

and channel mix



406

(6)

1.8%

(0.0)%

Volume & Mix

Industrial Costs


FY ‘18

B EN EF I TS F R O M R ES TRUC TURI NG PL AN WH I LE ADDR ES S I N G C O N T I NUED C O MMERCI AL C H AL L EN GES

JV

Consolidated

280 304

1,199 1,31832 20

73 62

Q4 '19 Q4 '18 FY '19 FY '18


324312

1,3801,272

5.3 5.9

20.622.8

Q4 '19 Q4 '18 FY '19 FY '18


46 61

(6)

406

0.9% 1.0%

(0.0)%

1.8%

Q4 '19 Q4 '18 FY '19 FY '18



L A T I N A M E R I C AMAR KET L EADER S HI P I N B R AZ I L DR I VES S TR ONG R ES UL TS



• Shipments flat, with increased volumes in Brazil

offset by lower volumes in other markets, primarily

Argentina due to continued market decline

• Net revenues up 4%, with positive net pricing,

including recognition of Brazilian indirect tax

credits, partially offset by negative foreign

exchange effects

• Adjusted EBIT up 40%, due to higher Net revenues

and industrial efficiencies, partially offset by

purchasing cost inflation, higher import and export

duties, as well as negative foreign exchange

effects

359

501

4.4%5.9%


Industrial Costs


159152

577585

Q4 '19 Q4 '18 FY '19 FY '18


2.32.2

8.58.2

Q4 '19 Q4 '18 FY '19 FY '18


134 101

501

359

5.9% 4.6%

5.9%

4.4%

Q4 '19 Q4 '18 FY '19 FY '18



R ES UL TS R EF L ECT PL AN N ED AC T I ONS TO S UPPO RT UPC O MI NG PR O DUC T L AUN C H ES

Shipments down, primarily due to lower sales and planned

dealer stock reduction

Net revenues down, primarily due to lower volumes

Adjusted EBIT down, due to lower revenues, adjustments of residual

values in U.S. and higher incentives related to accelerated transition to

China 6, partially offset by favorable model and market mix

€ million

except as otherwise stated FY 2019 FY 2018

SALES (000 units) 26.5 35.3 - 25%

SHIPMENTS (000 units) 19.3 34.9 - 45%

NET REVENUES 1,603 2,663 - 40%

ADJUSTED EBIT (199) 151 n.m.

ADJUSTED EBIT MARGIN (12.4)% 5.7% n.m.

Maserati “Way Forward” Brand Day planned for Q2 ‘20

ACTIONS TAKEN IN 2019

Dealer stock reduced by 50% - now at

appropriate levels

New leadership team in place, with new

brand COO and other key appointments

Finalized new product portfolio plan,

including electrification, with execution

commenced - new vehicle launches

every year from 2020 - 2024

Developed and commenced new

marketing plan


F Y 2 0 2 0 I N D U S T R Y O U T L O O K A N D G U I D A N C EGUI DAN C E C O N F I RMED DES P I TE N EW H EADWI NDS

ADJUSTED EBIT > €7.0B

ADJUSTED DILUTED EPS > €2.80

INDUSTRIAL FREE CASH FLOWS > €2.0B

(1) APAC industry reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India). Effective Jan 2019, industry data sourced from China Passenger Car Association.

Source: IHS Global Insight, Wards, China Passenger Car Association and Group estimates

FY 2020 GUIDANCE *

REGION 20.3 - 3% y-o-y

U.S. 17.0 - 3% y-o-y

NORTHAMERICA

REGION 4.3 + 2% y-o-y

BRAZIL 2.8 + 5% y-o-y

PASSENGER CARS AND LCVs

LATINAMERICA

REGION 31.2 flat

CHINA 21.3 flat

PASSENGER CARS ONLY

(1)ASIA

PACIFIC(1)

REGION 22.7 - 1% y-o-y

EU 28+EFTA 17.5 - 3% y-o-y

PASSENGER CARS AND LCVs

EUROPEMIDDLE EAST

AFRICA

million units

FY 2020 INDUSTRY OUTLOOK

TOTAL VEHICLE SALES INCLUDING

MEDIUM/HEAVY TRUCKS

* Refer to Appendix for definitions of supplemental financial measures. Guidance is not provided on the most directly comparable IFRS financial statement line item for Adjusted EBIT and Adjusted diluted EPS as the income or expense excluded from these non-GAAP financial measures in accordance with our policy are, by definition, not predictable and uncertain.

MONITORING RECENT DEVELOPMENTS

• Significant increase in certain commodity prices

• Global impact of coronavirus


2018Actual

ConventionalTechnologies

TeslaPooling

ArrangementContribution

2019Estimated

Status

ConventionalTechnologies

High Voltage Electrification

including multipliers

TeslaPooling

Arrangement Contribution

2020 5% Compliance Exemption

2020 Anticipated

CO2

Compliance Requirement

F C A E U R O P E C O 2 C O M P L I A N C E P L A NMUL T I F AC ETED APPR O AC H I N PL AC E TO EN S UR E R EGUL ATORY C O MPL I AN C E

g/km 124.4 ~ 125E*

< 95E**

+ Lower diesel mix

- Higher mix of new engine families - Compass PHEV

- Renegade PHEV

- Wrangler PHEV

- 500 BEV

+ Lower diesel mix

- Higher mix of new engine families -including MHEVs

- High efficiency alternators

- LED lighting

Better

FCA AVERAGE CO2

MASS MARKET VEHICLES

Full compliance with CO2 regulatory requirements expected without paying fines

* Company estimate as actual results are pending

finalization under the required regulatory processes.

Actual results expected to be in line with 2018.

** Company estimate. Company January 2020

EU vehicle registrations in line with full year

compliance plan.

February 6, 2020 FY 2019 RESULTS | 16

APPENDIX


S U P P L E M E N T A L F I N A N C I A L M E A S U R E S

FCA monitors its operations through the use of various supplemental financial measures. These and similar measures are widely used in the industry in which the

Group operates, however, these financial measures may not be comparable to other similarly titled measures of other companies and are not intended to be

substitutes for measures of financial performance as prepared in accordance with IFRS as issued by the IASB, as well as IFRS adopted by the European Union.

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 other operational decisions.

FCA’s supplemental financial measures are defined as follows:

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is

computed starting with Net profit/(loss) and adding back Net financial

expenses, Tax expense/(benefit) and depreciation and amortization expense

Adjusted earnings before interest and taxes (“Adjusted EBIT”) excludes

certain adjustments from Net profit/(loss) from continuing operations

including: gains/(losses) on the disposal of investments, restructuring,

impairments, asset write-offs and unusual income/(expenses) that are

considered rare or discrete events that are infrequent in nature, and also

excludes Net financial expenses and Tax expense/(benefit)

Adjusted net profit is calculated as Net profit/(loss) from continuing

operations excluding post-tax impacts of the same items excluded from

Adjusted EBIT, as well as financial income/(expenses) and tax

income/(expenses) considered rare or discrete events that are infrequent in

nature

Adjusted diluted EPS is calculated by adjusting Diluted earnings/(loss) per

share from continuing operations for the impact per share of the same items

excluded from Adjusted net profit

Industrial free cash flows is calculated as Cash flows from operating activities

less: cash flows from operating activities from discontinued operations; cash

flows from operating activities related to financial services, net of

eliminations; investments in property, plant and equipment and intangible

assets for industrial activities; adjusted for net intercompany payments

between continuing operations and discontinued operations; and adjusted

for discretionary pension contributions in excess of those required by the

pension plans, net of tax. The timing of Industrial free cash flows may be

affected by the timing of monetization of receivables and the payment of

accounts payable, as well as changes in other components of working

capital, which can vary from period to period due to, among other things,

cash management initiatives and other factors, some of which may be

outside of the Group’s control.


Q 4 2 0 1 9 K E Y C O M M E R C I A L M E T R I C S

604

36

319

154

613

57

293

141

COMBINED SALES

MARKET SHARE (1) 11.6% 11.5%

Q4 INDUSTRY (1)

(2019 vs. 2018) - 2%

0.4% 0.7%

- 5%

6.1% 6.4%

+ 8%

14.4% 12.6%

- 4%

NORTH AMERICA LATIN AMERICAASIA PACIFICEUROPE, MIDDLE EAST & AFRICA

(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. Effective 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

Q4 2018

Q4 2019

000 units


YEARS ENDED DEC 31

RESULTS FROM CONTINUING OPERATIONS

THREE MONTHS ENDED DEC 31

2019 2018 2019 2018

4,418 4,842 COMBINED SHIPMENTS (1) (000 units) 1,165 1,177

4,272 4,655 CONSOLIDATED SHIPMENTS (1) (000 units) 1,113 1,129

108,187 110,412 NET REVENUES 29,643 29,474

6,668 6,738 ADJUSTED EBIT* 2,115 1,831

209 235 OF WHICH RESULT FROM INVESTMENTS 50 34

6.2% 6.1% ADJUSTED EBIT MARGIN 7.1% 6.2%

1,005 1,056 NET FINANCIAL EXPENSES 221 255

4,021 4,108 PROFIT BEFORE TAXES 1,930 1,081

1,321 778 TAX EXPENSE 352 (90)

2,700 3,330 NET PROFIT/(LOSS) 1,578 1,171

4,297 4,707 ADJUSTED NET PROFIT* 1,537 1,492

1.71 2.12 DILUTED EARNINGS/(LOSS) PER SHARE (“DILUTED EPS”) (€) 1.00 0.74

2.73 3.00 ADJUSTED DILUTED EPS* (€) 0.97 0.94

2,113 4,448 INDUSTRIAL FREE CASH FLOWS* 1,451 2,037

K E Y P E R F O R M A N C E M E T R I C S

(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated shipments only include shipments by the Group's consolidated subsidiaries

* Refer to definitions of supplemental financial measures and reconciliations to applicable IFRS metrics included herein

€ million, except as otherwise stated


Q 4 2 0 1 9 A D J U S T E D E B I T * WA L K


€ million% = Adjusted EBIT margin

1,831 2,115

6.2%7.1%

Q4 2018 Volume & Mix Net Price Industrial Costs SG&A Other Q4 2019


Q 4 2 0 1 9 I N D U S T R I A L F R E E C A S H F L O WS *

∆ VS. Q4 2018 302 (1,297) 303 (66) 172 (586)

€ million

Adjusted

Industrial

EBITDA

CapexWorking

Capital

Changes in

Provisions

& Other

Financial

Charges

& Taxes (1)

Industrial

Free Cash

Flows

(1) Net of IAS 19


1,451


K E Y F I N A N C I A L M E T R I C S *

6.2%

4.4%5.7%

7.2% 7.1%

Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19

1,831

1,067

1,527

1,9592,115

Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19

0.94

0.36

0.59

0.810.97

Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19

2,037

(270)

754

178

1,451

Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19

ADJUSTED EBIT € million

ADJUSTED EBIT MARGIN

ADJUSTED DILUTED EPS €

INDUSTRIAL FREE CASH FLOWS € million




1,680

2,062

N O R T H A M E R I C A

Q4 ‘18 Volume & Mix

Net Price

Industrial Costs

SG&A Other Q4 ‘19



8.7%10.0%

649 638

Q4 '19 Q4 '18


20.619.4

Q4 '19 Q4 '18


20 26

2028

Q4 '19 Q4 '18

0.8 0.8

Q4 '19 Q4 '18


(112)

(5)

Volume & Mix

Net Price

Industrial Costs

SG&A Other



(13.2)%

(0.6)%

A S I A P A C I F I C

Q4 ‘18 Q4 ‘19

4054


JV

Consolidated


6146

E U R O P E , M I D D L E E A S T & A F R I C A

Volume & Mix

Net Price

Industrial Costs

SG&A Other



1.0%0.9%

5.3

5.9

Q4 '19 Q4 '18


159152

Q4 '19 Q4 '18


2.32.2

Q4 '19 Q4 '18


101

134

Volume & Mix

Net Price

Industrial Costs

SG&A Other



4.6%

5.9%

L A T I N A M E R I C A

Q4 ‘18 Q4 ‘19 Q4 ‘18 Q4 ‘19

280 304

3220

Q4 '19 Q4 '18

312324


JV

Consolidated


€ million, except as otherwise stated Q4 2019 Q4 2018

SALES (000 units) 7.0 8.9 - 21%

SHIPMENTS (000 units) 5.0 8.9 - 44%

NET REVENUES 395 710 - 44%

ADJUSTED EBIT (40) 48 n.m.

ADJUSTED EBIT MARGIN (10.1)% 6.8% n.m.


RE C ON C I L I AT I ON OF N E T P ROF I T / (LO S S ) TO ADJUSTE D E B I T

FY 2019 Adjusted EBIT excludes adjustments primarily related to:

(1) Impairment expense primarily as a result of rationalized product portfolio

plans for Europe in A-segment, as well as for Alfa Romeo

YEAR ENDED


THREE MONTHS ENDED

DEC 312019

DEC 312018

DEC 31 2019

SEP 302019

JUN 302019

MAR 31 2019

DEC 312018

2,700 3,330 NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS 1,578 (179) 793 508 1,171

1,321 778 TAX EXPENSE/(BENEFIT) 352 440 317 212 (90)

1,005 1,056 NET FINANCIAL EXPENSES 221 280 260 244 255

ADJUSTMENTS:

1,542 353 IMPAIRMENT EXPENSE AND SUPPLIER OBLIGATIONS (1) 11 1,376 113 42 189

154 103 RESTRUCTURING COSTS, NET OF REVERSALS (2) (41) (1) (8) 204 77

(15) – GAINS ON DISPOSAL OF INVESTMENTS (8) – (7) – –

(164) (72) BRAZILIAN INDIRECT TAX – REVERSAL OF LIABILITY/RECOGNITION OF CREDITS (3) – – – (164) (25)

– 114 COSTS FOR RECALL, NET OF RECOVERY – AIRBAG INFLATORS – – – – 160

– 43 PORT OF SAVONA (ITALY) FIRE AND FLOOD – – – – 43

– 748 CHARGE FOR U.S. DIESEL EMISSIONS MATTERS – – – – 35

– 92 EMPLOYEE BENEFITS SETTLEMENT LOSSES – – – – 14

– (60) NORTH AMERICA CAPACITY REALIGNMENT – – – – (60)

– 129 CHINA INVENTORY IMPAIRMENT – – – – –

– (50) RECOVERY OF COSTS FOR RECALL – CONTESTED WITH SUPPLIER – – – – –

– 111 U.S. SPECIAL BONUS PAYMENT – – – – –

125 63 OTHER 2 43 59 21 62

1,642 1,574 TOTAL ADJUSTMENTS – CONTINUING OPERATIONS (36) 1,418 157 103 495

6,668 6,738 ADJUSTED EBIT 2,115 1,959 1,527 1,067 1,831

€ million

(2) Restructuring costs primarily related to LATAM and North America

(3) Credits recognized related to indirect taxes in Brazil


DILUTED EPS TO ADJUSTED DILUTED EPS

1.71 2.12 DILUTED EPS FROM CONTINUING OPERATIONS 1.00 (0.11) 0.50 0.32 0.74

1.02 0.88 IMPACT OF ADJUSTMENTS, NET OF TAXES, ON DILUTED EPS (0.03) 0.92 0.09 0.04 0.20

2.73 3.00 ADJUSTED DILUTED EPS 0.97 0.81 0.59 0.36 0.94

1,570,850 1,567,839 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING FOR DILUTED EPS (000) 1,573,810 1,571,155 1,570,180 1,569,868 1,568,312

YEAR ENDED

NET PROFIT/(LOSS) TO ADJUSTED NET PROFIT

THREE MONTHS ENDED

DEC 31

2019

SEP 30

2019

JUN 30

2019

MAR 31 2019

DEC 31

2018DEC 31

2019DEC 31

2018

6,630 3,632 NET PROFIT/(LOSS) (including Magneti Marelli results and net gain on disposal) 1,538 (179) 4,652 619 1,293

3,930 302 LESS: NET PROFIT – DISCONTINUED OPERATIONS (40) – 3,859 111 122

3,769 – OF WHICH: GAIN ON COMPLETION OF MAGNETI MARELLI SALE, NET OF TAXES (40) – 3,809 – –

161 302 OF WHICH: NET PROFIT MAGNETI MARELLI (1) – – 50 111 122

2,700 3,330 NET PROFIT/(LOSS) FROM CONTINUING OPERATIONS 1,578 (179) 793 508 1,171

1,642 1,574 TOTAL ADJUSTMENTS – CONTINUING OPERATIONS (per Page 26) (36) 1,418 157 103 495

(122) (125) TAX IMPACT ON ADJUSTMENTS (2) (5) (54) (22) (41) (128)

77 – NET DERECOGNITION OF DEFERRED TAX ASSETS AND OTHER TAX ADJUSTMENTS – 77 – – –

– (72) IMPACT OF U.S. TAX REFORM – – – – (46)

1,597 1,377 TOTAL ADJUSTMENTS, NET OF TAXES (41) 1,441 135 62 321

4,297 4,707 ADJUSTED NET PROFIT 1,537 1,262 928 570 1,492

R E C O N C I L I A T I O N O F N E T P R O F I T / (L O S S ) T O A D J U S T E D N E T P R O F I T A N D D I L U T E D E P S T O A D J U S T E D D I L U T E D E P S

(1) Reflects results of Magneti Marelli for each respective period up to its deconsolidation on completion of the sale transaction on May 2 2019

€/share

€ million

(2) Reflects tax impact on adjustments excluded from Adjusted EBIT noted on Page 26


R E C O N C I L I A T I O N O F C A S H F L O WS F R O M O P E R A T I N G A C T I V I T I E S T O I N D U S T R I A L F R E E C A S H F L O WS

YEAR ENDED THREE MONTHS ENDED

DEC 31

2019

DEC 31

2018

DEC 31

2019

SEP 30

2019

JUN 30

2019

MAR 31 2019

DEC 31

2018

10,462 9,948 CASH FLOWS FROM OPERATING ACTIVITIES 4,368 2,343 3,052 699 3,985

(308) 484LESS: CASH FLOWS FROM OPERATING ACTIVITIES –DISCONTINUED OPERATIONS

– – 63 (371) 144

10,770 9,464CASH FLOWS FROM OPERATING ACTIVITIES –CONTINUING OPERATIONS

4,368 2,343 2,989 1,070 3,841

74 59LESS: OPERATING ACTIVITIES NOT ATTRIBUTABLE TO INDUSTRIAL ACTIVITIES

15 13 17 29 8

8,383 5,389 LESS: CAPITAL EXPENDITURES FOR INDUSTRIAL ACTIVITIES 2,902 2,152 1,953 1,376 1,605

(200) (46)ADD: NET INTERCOMPANY PAYMENTS BETWEEN CONTINUING OPERATIONS AND DISCONTINUED OPERATIONS

– – (265) 65 (75)

– 478 ADD: DISCRETIONARY PENSION CONTRIBUTION, NET OF TAX – – – – (116)

2,113 4,448 INDUSTRIAL FREE CASH FLOWS 1,451 178 754 (270) 2,037

€ million


OUTSTANDING

DEC 31 2019CONTINUING OPERATIONS 2020 2021 2022 2023 2024 2025 BEYOND

3.9 BANK DEBT 2.3 0.5 0.7 0.2 0.1 0.0 0.1

6.7 CAPITAL MARKETS DEBT 1.5 1.2 1.4 1.3 1.3 0.0 0.0

0.6 OTHER DEBT 0.6 0.0 0.0 0.0 0.0 0.0 0.0

1.6 LEASE LIABILITIES (1) 0.4 0.2 0.2 0.2 0.2 0.1 0.5

12.8 TOTAL CASH MATURITIES (2) 4.8 1.8 2.3 1.7 1.5 0.1 0.6

15.5 CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES

7.6 UNDRAWN COMMITTED CREDIT LINES

–CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES INCLUDED WITHIN ASSETS HELD FOR SALE

23.1 TOTAL AVAILABLE LIQUIDITY

D E B T M A T U R I T Y S C H E D U L E

(1) Includes effects of adoption of IFRS 16, which resulted in a €1.1 billion increase in Lease liabilities (excluding Magneti Marelli) as of Jan 1 2019. Finance leases previously included in Other debt have

been reclassified to Lease liabilities.

(2) Excludes accruals and asset backed financing of €0.1B at Dec 31 2019

Figures may not add due to rounding

€ billion


YEARS ENDED DEC 31

RESEARCH AND DEVELOPMENT COSTS – CONTINUING OPERATIONS

THREE MONTHS ENDED DEC 31

2019 2018 2019 2018

1,305 1,448 RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 361 360

1,358 1,456 AMORTIZATION OF CAPITALIZED DEVELOPMENT EXPENDITURES 331 361

949 147 IMPAIRMENT AND WRITE-OFF OF CAPITALIZED DEVELOPMENT EXPENDITURES 9 81

3,612 3,051 TOTAL RESEARCH AND DEVELOPMENT COSTS 701 802

R E S E A R C H A N D D E VE L O P M E N T C O S T S A N D E X P E N D I T U R E S

RESEARCH AND DEVELOPMENT EXPENDITURES – CONTINUING OPERATIONS

2,889 2,079 CAPITALIZED DEVELOPMENT EXPENDITURES 933 616

1,305 1,448 RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 361 360

4,194 3,527 TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES 1,294 976

€ million

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