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Q4 and Total Year 2010Results Review
(Preliminary)
January 31, 2011
“Seeing is Believing”
1Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Forward‐Looking Statement
This document contains forward‐looking statements that reflect management's currentviews with respect to future events. The words “anticipate,” “assume,” “believe,”“estimate,” “expect,” “intend,” “may,” “plan,” “project” and “should” and similarexpressions identify forward‐looking statements. Such statements are subject to risks anduncertainties, including, but not limited to: the effective implementation of the ChryslerGroup LLC 2010 – 2014 Business Plan outlined on November 4, 2009, including successfulvehicle launches; industry SAAR levels; continued economic weakness, especially in NorthAmerica, including continued high unemployment levels and limited available financingfor our dealers and consumers; introduction of competing products and competitivepressures which may limit our ability to reduce sales incentives; and our ability to realizebenefits from our industrial alliance with Fiat. If any of these or other risks anduncertainties occur, or if the assumptions underlying any of these statements proveincorrect, then actual results may be materially different from those expressed or impliedby such statements. We do not intend or assume any obligation to update any forward‐looking statement, which speaks only as of the date on which it is made.
2Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Agenda
Financial and Sales Summary
Business Update
Appendix
Executive Summary ‐ Highlights
3Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Q4 and Total Year 2010 Financial Highlights2010 revised guidance exceeded
• Total year Net Revenues at $41.9B, in line with revised 2010 guidance; 1.6M shipments worldwide (1.1M units in the U.S.)
Q4 2010 Net Revenues down 2.3% from Q3 2010 to $10.8B primarily due to reduced shipment volumes as the Company launched production of 11 new vehicles; overall shipments at 382k units, down 25k units or 6% vs. Q3
• Total year Modified Operating Profit of $763M or 1.8% margin, ahead of previously upped guidanceModified Operating Profit of $198M in Q4 2010 (down $41M vs. Q3 2010) primarily driven by improved mix and pricing, WCM efficiencies and improved quality, more than offset by lower volumes, increased advertising investment and higher launch costs; operating margin of 1.8%
• Total year Modified EBITDA of $3,461M (8.3% of net revenues)Q4 2010 Modified EBITDA of $882M (8.2% of net revenues), a $55M decrease from Q3 2010
• Total year Net Loss of $652MNet loss of $199M in Q4 2010 compared to a net loss of $84M in Q3 2010
• Net Industrial Debt increased by $0.4B in 2010 to $5.8B from year‐end 2009A $2.0B increase during Q4 2010 due to Chrysler Canada’s issuance of ~$1B promissory notes to an independent Health Care Trust (HCT) in accordance with CAW HCT settlement agreement (offset by a reduction in Accrued Expenses and Other Liabilities), and unfavorable working capital impacts at year‐end due to new vehicle launches
• Total Liquidity of $9.6B at December 31, 2010, including $7.3B of cash on hand and $2.3B of undrawn credit facilities under the UST & EDC loans
Positive Free Cash Flow of $1.4B during the year (over $2B favorable vs. original guidance)
4Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Q4 and Total Year 2010 Operating, Product and Business Highlights
• Total year Worldwide sales up 15% to 1.5M units vs. 2009* with 9.2% market share in the U.S. and 13.0% in Canada (respectively +40 and +200 bps vs. prior year)
Worldwide sales of 374k units in Q4 2010 (down 27k units or 7% from Q3) primarily due to reduced fleet volume associated with new model changeovers; U.S. market share at 8.8% and Canada at 12.6%
• U.S. dealer inventory at 236k units, or 63 days of supply, ready for marketing launch of new and refreshed products from Q4 2010
• 2011 vehicle lineup showcased at LA Auto Show, Montreal Auto Show & North American International Auto Show (NAIAS) in Detroit
Introduced Fiat 500, Dodge Charger and Dodge Durango at Los Angeles Auto Show, Fiat 500 and Jeep Compass at Montreal Auto Show, and Chrysler 300 and Jeep Compass at NAIAS
All Q4 product launches on schedule with strong dealer orders, available for sale in Q1 2011
• Fiat ownership increased to 25% – U.S. production of the 1.4L 4‐cylinder FIRE engine resulted in first Class B Event being achieved in January 2011
__________________* Chrysler Group LLC began operations on June 10, 2009; information for 2009 includes combined results of Chrysler Group LLC and Old Carco LLC
5Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Q4 2010 Q3 2010Q4 2010 B/(W)Q3 2010
Total Year 2010
Net Revenues 10,763 11,018 (255) 41,946
Modified Operating Profit 198 239 (41) 763
Modified EBITDA 882 937 (55) 3,461
Net Loss (199) (84) (115) (652)
Change in Cash (913) 419 (1,332) 1,470
Free Cash Flow (819) 35 (854) 1,355
Cash 7,347 8,260 (913) 7,347
Gross Industrial Debt (13,120) (12,026) (1,094) (13,120)
Net Industrial Debt (5,773) (3,766) (2,007) (5,773)
Worldwide Shipments ‐ Units (000) 1 382 407 (25) 1,602
Q4 and Total Year 2010 Financial Highlights
$ Millions
1 Before GDP adjustments (see details in Appendix)
6Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Net Loss to Modified Operating Profit and Modified EBITDA Walk
Q4 2010 Q3 2010Q4 2010 H/(L)
Q3 2010
Total Year 2010
Net Loss (199) (84) (115) (652)
Provision for Income Taxes 32 39 (7) 139
Net Interest Expense 329 308 21 1,228
Restructuring (Income)/Expenses & Other 4 (13) 17 54
Other Employee Benefit Losses/(Gains) 1 32 (11) 43 (6)
Modified Operating Profit 198 239 (41) 763
Depreciation and Amortization 2 684 698 (14) 2,698
Modified EBITDA 882 937 (55) 3,461
1 Includes interest cost, expected return on plan assets and CAW HCT settlement loss2 Excludes depreciation and amortization expense for vehicles held for lease
$ Millions
7Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Q3 2010 Volume Mix andNet Price
IndustrialCosts
SG&A Other Q4 2010
Modified Operating Profit Walk – Q3 2010 to Q4 2010
239
(83)
44 198
29
$ Millions
39
(70)
(41)• Shipment volumes decreased to 382k units in Q4 from 407k units in Q3 before GDP adjustments. Adjusted for GDP, shipments decreased by 13k units primarily due to 2011 MY changeovers
• Mix and pricing improved primarily due to 2011 model year vehicle launches
• Industrial costs were favorable due to WCM efficiencies and improved quality, partially offset by higher launch costs
• SG&A costs deteriorated primarily due to marketing investment to support “Big Finish” for 2010, and ramp‐up of 2011 MY new vehicle launches
• Other primarily relates to a change in inventory valuation reserves partially offset by FX losses
2.2%1.8%
New product launches in Q4 2010 impacted operating performance(lower volumes and higher advertising investments)
8Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
$ Billions
• Capital expenditures totaled $0.7B in the quarter, continuing the commitment to invest in new products
• Impact of new vehicle launch ramp‐up in Q4 contributed to negative working capital impact of $0.6B
• Interest payments primarily relate to UST and EDC loans
• Other primarily relates to the CAW HCT settlement which resulted in $1.2B reduction in OPEB obligations in exchange for notes with a fair value of $1.1B and $0.2B cash payment (including $45M of payments on the notes)
Cash Walk – September 30, 2010 to December 31, 2010
Cash(Sept 30, 2010)
ModifiedEBITDA
Working Capital CapitalExpenditures
Pension/OPEB Taxes & Interest Other Cash(Dec 31, 2010)
(0.9)
(0.1)
(0.6)7.3
(0.2)
8.3
0.9
(0.7)(0.2)
Note: Numbers may not add due to rounding
9Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Cash(Dec 31, 2009)
Modified EBITDA Working Capital &Other
Capital Expenditures Pension/OPEB Taxes & Interest Debt Proceeds Netof Payments
Cash(Dec 31, 2010)
$ Billions
Cash Walk – December 31, 2009 to December 31, 2010
Change in Cash+$1.5
(0.5)
2.0
7.3
(1.2)5.9
3.5
(2.4)0.1
Note: Numbers may not add due to rounding
• Working Capital favorability primarily relates to shipment increase
• Interest payments primarily relate to the UST, EDC and VEBA obligations
• Debt Proceeds Net of Payments include proceeds from the Mexican Development Banks’ loan ($0.4B) partially offset by payments on the Supplier Receivables SPV loan ($0.1B), and CAW HCT Notes and other principal payments ($0.2B)
Free Cash Flow+$1.4
10Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Fixed Costs and Capital Expenditures – Total Year 2010
$ Billions
2.9
2.7
2.2
1.5
FY 2010 Q1 '10 Q2 '10 Q3 '10 Q4 '10
2.2 2.3
Plant / Corporate
Depreciation & Amortization
Sales & Marketing
ER&D
9.3
2.4
Capital spending on future products continues as Chrysler and Fiat move closer to shared architectures
* Includes $0.3 billion of non‐cash intangible assets and equipment leases, and Chrysler Realty capital purchases
Fixed Costs
2010 Plan 2010 Actual
Capital Expenditures
2.7 2.7*
2.4
11Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
CAW Health Care Trust Settlement
The underfunded status of the Company’s remaining OPEB plans was $2,599 millionas of December 31, 2010
The settlement resulted in a $1,213 million reduction in the Company’s OPEB obligations, which were included in Accrued Expenses and Other Liabilities, and a loss of $46 million being recognized
On December 31, 2010, the Company issued notes to the HCT with a fair value of $1,087 million and made an initial cash contribution of $152 million, which included a $45 million payment on the notes
In August 2010, the Company entered into a settlement agreement with the CAW to permanently transfer the responsibility of providing postretirement health care benefits to CAW represented
employees, retirees and dependents to a new retiree plan to be funded by a new independent Health Care Trust (HCT)
12Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Leverage AnalysisGross Industrial Debt increased primarily due to CAW Health Care Trust Notes
Carrying Value as of Dec 31, 2010
Carrying Value as of
Sept 30, 2010
Dec 31, 2010B/(W)
Sept 30, 2010
Carrying Value as of Dec 31, 2009 (Pro‐Forma)
Dec 31, 2010B/(W)
Dec 31, 2009
Cash 7.3 8.3 (0.9) 5.9 1.5
UST Loan – Tranche B 2.1 2.1 ‐ 2.1 ‐
UST Loan – Tranche C 3.6 3.5 (0.1) 3.5 (0.1)
UST Zero Coupon Note 0.1 0.1 ‐ 0.1 ‐
UAW VEBA Trust Note 4.0 4.0 ‐ 3.9 1 (0.1)
EDC Loan 1.3 1.2 (0.1) 1.1 (0.2)
CAW Health Care Trust Notes 2 1.0 ‐ (1.0) ‐ (1.0)
Mexican Development Banks Loan 0.4 0.4 ‐ ‐ (0.4)
Other Financial Liabilities 3 0.7 0.7 ‐ 0.6 (0.1)
Gross Industrial Debt 13.1 12.0 (1.1) 11.2 (1.9)
Net Industrial Debt 4 5.8 3.8 (2.0) 5.3 (0.4)
1 Includes UAW VEBA Trust Note classified as OPEB Liability as of December 31, 2009; reclassified to Financial Liabilities on January 1, 2010, in accordance with UAW VEBA settlement agreement2 Offset by a reduction in “Accrued Expenses and Other Liabilities”3 Excludes Gold Key Lease (GKL) self‐liquidating debt4 Excludes pension underfunding of $4.0B and OPEB underfunding of $2.6BNote: Numbers may not add due to rounding
$ Billions
13Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Industry Units (000s)
Chrysler Group performance (2010 vs. 2009*)
Sales Market share Best performers
Annual sales increase (+17%)
9.2% (up 40 bps)
• JeepGrand Cherokee (+68% to 85k units)• Dodge Challenger (+42% to 37k units)• Chrysler Town & Country (+33% to 112k units)
• Dodge Charger (+24% to 75k units)• Jeep Wrangler (+15% to 94k units)• Ram Pickup (+12% to 194k units)
Annual sales increase (+26%)
13.0%(up 200 bps)
Sales Performance (2010 versus 2009*)U.S. & Canada highlights
10,60311,770
2009 2010
1,481 1,582
2009 2010
Chrysler Group sales in U.S. and Canada outpaced the industry during 2010
* Chrysler Group LLC began operations on June 10, 2009; information for 2009 includes combined results of Chrysler Group LLC and Old Carco LLC
**All‐time annual sales records
JeepGrand Cherokee (+68% to 85k units)
Dodge Challenger (+42% to 37k units)
Chrysler Town & Country (+33% to 112k units)
Dodge Charger (+24% to 75k units)
Jeep Wrangler (+15% to 94k units)
Ram Pickup (+12% to 194k units)
Ram Pickup (+74% to 53k units**)
Dodge Journey (+55% to 24k units**)
Jeep Wrangler (+52% to 11k units)
Dodge Grand Caravan (+37% to 55k units**)
JeepGrand Cherokee (+37% to 7k units)
14Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
2010 Worldwide Sales
93 94 114 118
124169 147 128
57
72 5748
60
72 8380
Q1 2010 Q2 2010 Q3 2010 Q4 2010
235292 293
265
45
60 55
4519
17 18
2535
38 3539
Q1 2010 Q2 2010 Q3 2010 Q4 2010
407 401
U.S.
CanadaMexicoInt’l
By Market By Brand
Units (000s)
334
407 401
334
Worldwide sales totaled 1,516k units in 2010 (versus 1,318k units in 2009*) representing an increase of 15%
374 374
* Chrysler Group LLC began operations on June 10, 2009; information for 2009 includes combined results of Chrysler Group LLC and Old Carco LLC
15Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
231
90
58 58 60 58 63
Jun10th
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
U.S. Dealer InventoryDays supply remains at low levels
Days Supply
2009 2010
Units (000s)
“Cash for Clunkers” Program
246
179
222208
231 236
Continued discipline in dealer inventory levels
16Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
~5,200 ~4,800
~4,500
~3,800 ~3,800 ~4,300
~3,800 ~3,700
25,800 26,400
25,400
28,000 28,10027,700 28,000 28,300
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010
U.S. Retail Average Transaction PriceIncentives trending down due to favorable model year mix and continued net price discipline
$/Unit
Source: Company calculation based on J.D. Power & Associates data (at constant Q4 2010 sales nameplate mix)
AverageTransaction
Price
Average Incentive
Note: Chrysler Group LLC began operations on June 10, 2009; information for 2009 includes combined results of Chrysler Group LLC and Old Carco LLC
17Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
FIAT 500North American reveal at Los Angeles and Montreal Auto Shows
Adapted for the U.S. Customer• Homologation of product for NAFTA market• Award‐winning 1.4L FIRE engine with
MultiAir®
• 6‐speed automatic transmission• Perfectly tailored safety and feature content• Three lifestyle models• Extreme personalization – 500,000
possibilities
Ready for Sale• Appointed 130 dealers for distribution in the
U.S. and 64 in Canada (over 400 applications received)
• 500 units of Prima Edizione sold out in just a few hours
POPAnything but an entry model!
LOUNGEFull of amenities
SPORTRedefining“fun to drive”
“The Fiat 500 is a flavor we didn't know we were missing”
"Even if you ignore its adorable styling inside and out (and that's a tall order), it’s a magnificent piece of engineering”
18Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
“Chrysler's makeover of virtually its entire fleet is a stylish success.”
“Chrysler is on a roll.”
LA and North American International Auto Show Highlights
"Chrysler Rides Higher at Detroit Show”
“What Chrysler has been able to accomplish in less than 12 months has been extraordinary” –Aaron Bragman
19Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Chrysler Announced 2 New Models for 2011 at the North American International Auto Show in Detroit
2011 Chrysler 300• All new vehicle with modernized styling of the prior generation award winning 300 sedan
• New 3.6L V6 Pentastar Engine• Redesigned and retuned suspension for improved ride and handling
• Refined luxury interior• New advanced electronic and safety features including:• Adaptive cruise control & forward collision warning
• Blind spot and rear cross path detection• 8.4” touchscreen multimedia radio
“The arrival of the new Chrysler 300 is a big turning point for the company. The statuesque sedan is the linchpin of the brand’s promise of “affordable luxury” and aggressive styling.”
2011 Jeep Compass• New sophisticated design; cues from Jeep Grand Cherokee (new hood, front fenders, front and rear fascias, grille and headlamps)
• Upgraded steering and suspension systems providing improved ride and handling
• Refined interior• 2,000 lbs. towing capacity• Now “Trail Rated”
“Chrysler points Jeep Compass in the right direction.”
20Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Update on Shareholder Structure
25.0% Fiat
63.5%VEBA
9.2%UST
2.3%Canada
Current Shareholder Structure• Fiat contributed strategic assets in return for initial 20% equity
interest, to be increased to 35% over time upon Chrysler’s achievement of certain events
+5% Technology Event (1.4L Fire Engine Program); completed
+5% Non‐NAFTA Distribution Event (Int’l revenue and distribution targets); expected to be completed 2H 2011
+5% Fuel Economy Event (40 MPG Chrysler C‐Sedan off Fiat Platform); expected to be completed 2H 2011
For any Performance Event above not achieved by Jan 2013, Fiat may acquire associated 5% equity tranches through a primary call option (“Alternative Call Option”)
• Fiat has a second primary call option (“Incremental Equity Call Option”) to acquire up to a further 16% of Chrysler’s equity (exercisable Jan ’13 to Jun ‘16), subject to a limit on Fiat’s ownership at 49.9% prior to full repayment of UST and Canadian government loans
“Incremental Equity Call Option” may not be exercised until Chrysler Group LLC aggregate amount of 2 loans falls below ~$4B
Consideration to be paid for option exercise is determined on the basis of an EBITDA multiple (average multiple of reference automakers, not to exceed the Fiat multiple)
In the event that at the time of exercise Chrysler is a listed company, such consideration will be based on a market trading price
Fiat may exercise “Alternative Call Option” or “Incremental Equity Call Option” prior to Jan 1, 2013 if loans granted by UST and Government of Canada have been repaid
35.0%Fiat
55.0%VEBA
8.0%UST
2.0%Canada
Pro‐forma Shareholder Structure (after all performance events, before call option)
21Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Worldwide Shipments > 2.0 M
Net Revenues > $55 B
Modified Operating Profit > $2.0 B
Modified EBITDA > $4.8 B
Net Income $0.2 – 0.5 B
Free Cash Flow > $1.0 B
2011 Guidance
23Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Appendix
24Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Guaranteed Depreciation Program Adjusted Shipments
Q4 2010 Q3 2010Q4 2010 B/(W)Q3 2010
Total Year 2010
Worldwide Shipments 382 407 (25) 1,602
Guaranteed Depreciation Program (GDP)
Subtract: Shipments during Period (7) (4) (3) (63)
Add: Returns/Auctions during Period 22 7 15 42
Net (Shipments) / Returns 15 3 12 (21)
GDP Adjusted Shipments 397 410 (13) 1,581
Units (000s)
25Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Reconciliation of U.S. GAAP Cash Flows from Operating Activities to Free Cash Flow
Q42010
Total Year 2010
Net Cash Provided By (Used In) Operating Activities (342) 4,522
Net Cash Used In Investing Activities (208) (1,494)
Investing activities excluded from Free Cash Flow
Change in loans and notes receivable 1 (36)
Financing activities included in Free Cash Flow
Proceeds from Gold Key Lease FinancingRepayments of Gold Key Lease Financing
‐(270)
266(1,903)
Free Cash Flow (819) 1,355
$ Millions
26Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Reconciliation of Total U.S. GAAP Financial Liabilities to Gross Industrial Debt and Net Industrial Debt
Dec 31,2010
Dec 31, 2009
Financial Liabilities (Carrying Value) 13,731 9,551
VEBA Trust Note ‐ 3,854 1
Gold Key Lease DebtShort Term ABSLong Term ABSGKL Credit Facility
Total
(130)(43)(438)(611)
(922)(291)(953)(2,166)
Gross Industrial Debt 13,120 11,239 2
Less Cash (7,347) (5,877) 3
Net Industrial Debt 5,773 5,362
$ Millions
1 Pro‐forma – UAW VEBA Trust Note was classified as an OPEB liability as of December 31, 2009,and was reclassified to Financial Liabilities on January 1, 2010, in accordance with the UAW VEBA settlement agreement
2 Pro‐forma due to inclusion of UAW VEBA Trust Note.3 Includes Marketable Securities
27Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Gross Industrial Debt
As of December 31, 2010
CarryingValue
FaceValue
UST Loan – Tranche B 2.1 2.1
UST Loan – Tranche C 3.6 3.7
UST Zero Coupon Note 0.1 0.1
UAW VEBA Trust Note 4.0 4.7
EDC Loan 1.3 1.7
CAW Health Care Trust Notes 1.0 1.0
Mexico Development Banks Loan 0.4 0.4
Other Financial Liabilities 1 0.7 0.8
Gross Industrial Debt 13.1 14.41 Excluding GKL self‐liquidating debtNote: Numbers may not add due to rounding
$ Billions
28Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Gross Industrial Debt Maturity Schedule
Note: Excluding accrued and accreted interest
2011 2012 2013 2014 2015 2016+December 31, 2010 (Carrying Value)
0.4 0.4 0.4
9.3
0.1
2.5
Annual MaturitiesGross
Industrial Debt
$ Billions
2.7 0.2 0.4 0.4 0.5 10.2Face Value
14.4
13.1 1
1. Excludes Gold Key Lease (GKL) self‐liquidating debtNote: Numbers may not add due to rounding
29Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Pension Disclosure
$ Millions
NET PERIODIC BENEFIT COST
Q4 2010 Total Year 2010
Service Cost 58 242
Interest Cost Net of Expected Return (31) (215)
Special Early Retirement Costs 27 27
Total Net Periodic Benefit Cost 54 54
WORLDWIDE PENSION FUND CONTRIBUTIONS 7 390
UNDERFUNDED STATUSU.S.Canada
Total
(3,545)(464)
(4,009)
(3,545)(464)
(4,009)
WORLDWIDE ASSUMPTIONS (Dec 31) 2009 2010
Expected Long‐Term Asset Return 7.42% 7.41%
Discount Rate – Ongoing Benefits (Weighted Average)
5.54% 5.33%
30Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
OPEB Disclosure
NET PERIODIC BENEFIT COST
Q4 2010 Total Year2010
Service Cost 8 34
Interest Cost Net of Expected Return 51 194
Amortization of Actuarial Loss 3 6
Settlement Loss Net of Gains 11 11
Total Net Periodic Benefit Cost 73 245
BENEFITS PAID 58 272
UNDERFUNDED STATUSU.S.Canada
Worldwide Total
(2,225)(374)
(2,599)
(2,225)(374)
(2,599)
WORLDWIDE ASSUMPTIONS (Dec 31) 2009 2010
Expected Long‐Term Asset Return 7.5% 0%
Discount Rate – Ongoing Benefits (Weighted Average)
5.38% 5.57%
$ Millions
31Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Non‐U.S. GAAP Financial Information and Other Items
The following Non‐U.S. GAAP Financial definitions apply when the presentation is referring to Modified Operating Profit (Loss), Modified EBITDA, Cash, Free Cash Flow and Gross and Net Industrial Debt
(a) Modified Operating Profit (Loss) is computed starting with net income (loss) and then adjusting the amount to (i) add back the provision for income taxes, (ii) add back net interest expense (excluding interest expense related to Gold Key Lease financing activities), (iii) add back all pension, other postretirement benefit obligations (“OPEB”) and other employee benefit costs other than service costs, (iv) add back restructuring expenses and exclude restructuring income, (v) add back other financial expense, (vi) add back losses and exclude gains due to cumulative change in accounting principles, and (vii) add back certain other costs, charges and expenses. The reconciliation of U.S. GAAP Net Loss to Modified Operating Profit (Loss) and Modified EBITDA (as defined below) for the three and twelve months ended December 31, 2010, is detailed on Page 6
(b) Modified EBITDA is computed starting with net income (loss) adjusted to Modified Operating Profit (Loss) as described above, and then adding back depreciation and amortization expense (excluding depreciation and amortization expense for vehicles held for lease). The reconciliation of U.S. GAAP Net Loss to Modified Operating Profit (Loss) and Modified EBITDA for the three and twelve months ended December 31, 2010, is detailed on Page 6
(c) Cash is defined as Cash and Cash Equivalents
(d) Free Cash Flow is defined as cash flows from operating and investing activities, excluding any debt related investing activities, reduced for financing activities related to Gold Key Lease financing. A reconciliation of U.S. GAAP Net Cash Provided by (Used in) Operating Activities to Free Cash Flow for the three and twelve months ended December 31, 2010, is detailed on Page 25
(e) A reconciliation of U.S. GAAP Financial Liabilities to Gross Industrial Debt and Net Industrial Debt at December 31, 2010, is detailed on Page 26
32Preliminary Results ‐ January 31, 2011(Refer to Appendix for definition of non‐U.S. GAAP financial measures )
Contacts
Chrysler Investor Relations
Timothy Krause phone: 248‐512‐2923email: [email protected]
Chrysler Communications
Gualberto Ranieri phone: 248‐512‐2226email: [email protected]
Website
www.chryslergroupllc.com