Older, Wiser and Ready to Re-engage Q4 & FY 09 Results Review

Transcription

1 Older, Wiser and Ready to Re-engage Q4 & FY 09 Results Review January 25, 2010 Q4 & FY 09 Results Review 1

2 FY '09 highlights Ahead of guidance results... Group revenues at 50.1bn, down ~16% over record 2008 with steep declines in demand experienced by all businesses in H1 (-23.8% Y-o-Y), substantially reduced in H2 (-6.6% Y-o-Y) Automobiles at 28.4bn: flat unit sales at FGA yielding 26.3bn, recording highest Q4 ever CNH at 10.1bn, down 21% on most severe decline on record in CE industry and tough comps vs. record high 2008 AG market Iveco at 7.2bn, down 34% on a 46% decline in deliveries, especially in Europe & Heavy segment Trading profit at 1.1bn (2.1% margin) with sequential quarter-by-quarter improvements in trading margin primarily on the back of realignment of production levels & aggressive cost containment Automobiles at 719mn: FGA at 470mn in a notable mixed performance between passenger car & LCV markets, especially WE; Ferrari at 238mn; Maserati positive despite 46% revenue shortfall CNH at 337mn: rigorous cost containment and positive pricing partially offset revenue gap resulting from drastic volume decline in CE and continued de-stocking for both AG & CE equipment Iveco at 105mn: decisive cost reduction measures yielded positive trading result and margin increased quarter-by-quarter Net loss of 0.8bn, including unusuals of 0.6bn Cash flow generation of 1.5bn driving drop in net industrial debt to 4.4bn, well below FY target Realignment of production levels including significant de-stocking actions across all businesses and disciplined management of Capex January 25, 2010 Q4 & FY 09 Results Review 2

3 FY '09 highlights (cont d)...reinforced liquidity, positive outlook for 2010 Liquidity at 12.4bn, 3x higher than 2008 year-end level Guaranteeing adequate resources to cover contractual maturities well beyond 2011 and significant financial flexibility Re-accessed European and US capital markets in H2, raising nearly 5bn through 4 highly successful bond issues Taking advantage of progressive restoration of ABS market in NA Continuing to strengthen Group s international identity, emerging stronger through a difficult year Global strategic alliance with newly-formed Chrysler Group LLC Framework agreement for production of cars and engines in China with GAC Group Agreement with Kamaz to develop industrial & commercial alliance in AG&CE for Russian market Cumulative dividends of 237mn proposed across all 3 classes of shares 2010 OUTLOOK Top line growth of 3-6% in 2010, with trading profit of 1.5bn and net debt levels below 5bn mark Non renewal of eco-incentives scheme in WE to impact trading profit by 350 to 400 mn January 25, 2010 Q4 & FY 09 Results Review 3

4 FY '09 Revenues and trading result by business % chg vs. 08 % chg vs. 08 Revenues ( mn) 28,351 (3.5)% 10,107 (20.9)% 7,183 (34.1)% 10,327 (25.1)% (5,866) FY 09 H2 09 H1 09 FGA 26, % -14.3% Maserati % -43.2% Ferrari 1, % -8.0% Automobiles CNH Iveco Components Eliminations & Others 9.3 (45.9) (36.4) 50,102 (15.9)% FY'09 H2 H1 H1 H2 H1 H2 H1 H2 H1 H2 (6.6) (14.5) (11) (17.4) (19.1) (24.7) (23.8) Trading result ( mn) 719 (34.8)% Automobiles CNH Iveco Components Eliminations & Others (59.2) 337 (70.0)% (68.6) (71.2) 105 (87.5)% (98.7) FY'09 H1 (3.1) H1 H2 H1 H2 n.a. (5.8) H1 H2 (73.1) (40) (63) FY 09 H2 09 H1 09 FGA % -71.3% Maserati % -77.3% Ferrari % -24.4% 1,058 (68.5)% (86.2) (45.7) Automobiles FGA: cost containment measures and volume recovery in H2 partially compensating for drop in demand in H1 and less favorable product mix Ferrari: efficiency gains partly offsetting lower volumes, unfavorable product mix & currency movements Maserati: realignment of production levels and rigorous cost containment measures partly offsetting significant decline in volumes CNH Tight grip on cost and positive pricing partially offset decline in both AG & CE volumes attributable to market conditions Iveco Latin America, special vehicles business (seasonally stronger in latter part of year) and after-sales activities, continued to provide margin support, in addition to realignment of production levels and rigorous cost containment measures to counter steep volume decline Components FPT: significant efficiency gains in overheads, manufacturing & purchasing partially offsetting sharp drop in I&M volumes and unfavorable sales mix Magneti Marelli: reductions in overheads, increased production and purchasing efficiencies contained impact of lower revenues January 25, 2010 Q4 & FY 09 Results Review 4

5 Q4 & FY 09 From trading to net result ( mn) Q4 FY '09 '08 '09 '08 Trading profit ,058 3,362-2,304 Unusual items, net (425) (407) -18 (699) (390) -309 Operating income ,972-2,613 Financial charges, net (218) (345) +127 (753) (947) +194 Investment income, net Pre-tax result (119) (79) -40 (367) 2,187-2,554 Taxes (164) (481) (466) -15 Net result (283) (848) 1,721-2,569 January 25, 2010 Q4 & FY 09 Results Review 5

6 Breakdown of unusual items FY 09 ( mn) Restructuring Fixed assets write-downs Other provisions, net Total (312) (135) (252) (699) Automobiles (54) (104) (88) (246) CNH (87) - 1 (86) Iveco (22) - (173) (195) Others (149) (31) 8 (172) of which c ash impact '09 (93) - (183) (276) of which c ash impact '10 (160) - (98) (258) of which c ash later years (32) - - (32) Tax effects on unusual items of ~ 120mn January 25, 2010 Q4 & FY 09 Results Review 6

7 Financial charges breakdown FY 09 vs. 08 Average Outstanding ( bn) Rate/Spread (%) Net Charges ( mn) Chg Net Industrial Debt 2009 (5.6) 5.5% (308) Net Industrial Debt 2008 (2.4) 6.5% (156) (152) Cost of Carry 2009 (5.9) 3.5% (207) Cost of Carry 2008 (3.5) 2.0% (70) (137) Equity Swap (hedging stock option plans) (263) IAS 19 (interest cost on pension & OPEB) (155) (160) (5) Indirect taxes on banking transactions (South America) Others (fees, FX, interest cost on long-term provisions, discount of certain receivables...) (30) (27) +3 (273) (168) +105 NET FINANCIAL CHARGES (947) (753) +194 January 25, 2010 Q4 & FY 09 Results Review 7

8 Q4 & FY 09 Cash Flow Well exceeding year-end target ( mn) Q4 '09 FY '08 FY '09 (5,832) Net Industrial (Debt)/Cash beginning of period 355 (5,949) (283) Net Income 1,721 (848) 607 D&A (excl. Vehicle Buybacks) 2,802 2, Change in Funds & Others (769) Cash Flow from Op. Activities bef. Chg. in W.C. 3,754 1,937 1,700 Change in W orking Capital (3,604) 2,564 2,612 Cash Flow from Operating Activities 150 4,501 (1,235) Tangible & Intangible Capex (excl. Vehicle Buybacks) (4,973) (3,382) 1,377 Cash Flow from Operating Activities net of Capex (4,823) 1, Change in Investments, Scope & Other (942) 525 1,423 Net Industrial Cash Flow (5,765) 1,644 - Capital Increase / Share Repurchases / Dividends (770) (20) (9) FX Translation Effect 231 (93) 1,414 Change in Net Industrial Debt (6,304) 1,531 Strong cash generation in a difficult year Performance driven by working capital (partial reversal of 2008 absorption) Particularly strong contribution from inventories with a 2.9bn reduction ( 1bn in Q4) Disciplined Capex management at below 3.4bn Reflecting low market demand and postponement of certain projects (4,418) Net Industrial (Debt)/Cash end of period (5,949) (4,418) January 25, 2010 Q4 & FY 09 Results Review 8

9 2009 operational highlights & industry forecast 1. Demand conditions 2. Input cost 3. Cost structure & manufacturing capacity January 25, 2010 Q4 & FY 09 Results Review 9

10 1.1 Industry outlook & sales volume Fiat Group Automobiles 1,085 Passenger cars LCVs 2, FY 09 (change vs. prior year) FY 10E (change vs. prior year) WE 0.5% (12)% / (16)% * EE (26.6)% Flat ITA (0.2)% (5)% / (20)% * BRA 12.6% 2-3% WE (27.4)% (5)% / (7)% * EE (50.7)% Flat ITA (21.4)% Flat / (10)% * BRA 12.3% 2-3% 2,100 / 1,930 * E * in absence of incentives scheme renewal in Italy Passenger cars Italy WE ex-italy LA RoW LCVs Unit Sales (x000) Q4 09 Strong finish (+23.2%) for passenger car registrations, outperforming WE market Share gain (0.6 p.p.) in a record quarter for overall Brazilian market Robust order intake FY 09 Western Europe Passenger cars: consistent quarterly share gains year-overyear since 2005 with share up 0.6 p.p. (2.2 p.p. in 4 years) to 8.8% driven by gains in Italy (+0.9 p.p.), Germany (+1.5 p.p.), France (+0.1 p.p.) & UK (+0.6 p.p.) LCVs: share gain (+0.3 p.p.) in a steeply declining market All brands up both in WE & EU27 Highest share in WE since 2001 for Fiat (at 7.1%) and Lancia (at 0.9%) Alfa share up 0.1 p.p. at 0.8%, awaiting Giulietta in H1 10 Brazil: a sales record in its 33 rd year; leadership maintained with a 24.5% share in an overall booming market, topping healthy 2008 level FY 10 expectations WE+EE Passenger cars: market decline expected to be ~12% mainly driven by Germany. Non renewal of eco-incentives schemes to decrease demand for an additional 4% LCVs: market flat or slightly down, targeting share increase driven by new products Brazil: growth in line with market increase January 25, 2010 Q4 & FY 09 Results Review 10

11 1.2 Succeeding in an uneven 2009 WE market Fiat Group Automobiles Structural shift moving market towards lower segments with incentives accelerating process Coherent product portfolio and effective life-cycle management Panda: breaking record year-over-year since launch in 2003 (~310k FY registrations) 500: 190k FY registrations Punto family: increased penetration to 8.1% (+0.3 p.p.) in B- Segment also thanks to Punto Evo (85k orders at year-end), broadening spectrum to include high-end customers MiTo driving Alfa brand registrations up 8% vs. last year A wide array of environmentally-friendly product offerings Expanded offering of leading-edge engines with introduction in both gas (MultiAir) & diesel (MultiJet II) ~60% of FGA s registrations 130 CO 2 g/km (>50% for 120 CO 2 g/km) in 09 in Europe Fiat brand offering widest range of CNG & LPG powered vehicles in market (200k FY registrations) LPG available on key products of Lancia After 2 years of leadership, lowest level of CO 2 emissions in EU with Fiat brand ranked #1 again in Sep 09 Healthier and strengthened dealer network supporting market penetration ~290 new dealer appointments after completion last year of network gap closure plan Lean organization and prompt decision-making enabled rapid response to take full advantage of emerging opportunities Main benefits Up to 10% increase in max power Up to 15% increase in low-rpm torque Up to 10% reduction in fuel consumption and CO 2 emissions (up to 25% in combination with turbocharging & downsizing) Lower noxious emissions (CO/HC/NOx) Improved driveability 1.3 MultiJet II Euro 5 1 st application on Fiat Punto Evo (Oct 09) Main benefits Main benefits Up to 20-25% CO2 emissions reduction compared to equivalent gas engine Very low noxious emissions (NMHC ) 1.4 Fire MultiAir turbo Euro 5 1 st application on Alfa Romeo MiTo (Sep 09) Digital injection rate shaping bringing CO 2 emissions up to 3% lower NOx emissions up to 20% lower Greater accuracy in fuel injection quantity control Noise and driveability improvement January 25, 2010 Q4 & FY 09 Results Review 11

12 1.3 Inventory trend by quarter Fiat Group Automobiles Total inventory reduction of 63k units or ~20% compared to 2008 year end Healthy months-ofsupply ratio both for dealer and company inventory Months of Supply (as per average of latest 3 months) Company Inventory Dealer Inventory January 25, 2010 Q4 & FY 09 Results Review 12

13 1.4 Industry outlook & sales volume CNH Agricultural Equipment Tractors Combines Industry (change vs. prior year) FY 09 FY 10E CNH (performance relative to mkt) Industry (change vs. prior year) WW (7)% (5-10)% NA (21)% (5-10)% <40hp (20)% (5-10)% 40+hp (22)% ~(10)% WE (14)% (10-15)% LA (17)% ~5% RoW 8% ~(5)% WW (19)% (5-10)% NA 15% (10-15)% WE (12)% (15-20)% LA (36)% 5-10% RoW (45)% ~(10)% FY 09 Global industry down 7% (down 10% in quarter, decline slowed from Q3 09) NA: increasing strength in 4WD tractor markets where CNH is strong WE: market demand still hindered by weak commodity prices and general economic outlook LA: Brazilian market up, other countries down against high comparisons vs RoW: tractor industry up in Asian markets where CNH has limited presence, dropped in African and CIS markets where CNH is strong; combine market collapsed in CIS states where CNH is top player CNH market share Share gains in NA 40+hp tractor market with flat share everywhere else except RoW where market share eroded as demand in fast growing markets mainly satisfied by local, low-range products Combine share gains in LA offset by declines in NA where CNH dropped share despite strong performance on higher-end products FY 10 expectations Global market demand decline NA softening as industry passes peak farm income WE remains slow on economy concerns LA strong on high commodity prices January 25, 2010 Q4 & FY 09 Results Review 13

14 1.5 Industry outlook & sales volume CNH Construction Equipment Light Industry (change vs. prior year) FY 09 FY 10E CNH (performance relative to mkt) Industry (change vs. prior year) WW (45)% 0-5% NA (49)% (0-5)% WE (49)% Flat LA (54)% 15-20% RoW (36)% ~10% WW (30)% 5-10% NA (47)% (0-5)% FY 09 Decline 38% in all regions Overall industry down only 4% in quarter as market decline slows Market share up in LA for both Light & Heavy equipment and stable in NA RoW: strongest growth in markets where CNH has limited presence Highly competitive environment based on aggressive de-stocking actions drove down market share in WE Heavy WE (56)% Flat LA (56)% 20-25% RoW (14)% ~10% FY 10 expectations Construction activity in LA & RoW regions should lead to moderate global industry growth Worldwide industry demand for Light & Heavy Equipment up 5 10% as industry rebalances and renews fleet levels in market January 25, 2010 Q4 & FY 09 Results Review 14

15 1.6 Leveraging strengths in diverse markets CNH (AG & CE Equipment) Managing better pricing as AG products drive profit Leverage higher-end products to increase pricing in easing markets Deployment of Case IH CVT Magnum 180,190,210,225 Improved efficiency and performance Core strength in AG products NA combines Tractors 100+hp New Holland T7000 Tractor Series; most awarded line of tractors in 13-year history of this award 2007 Agritechnica -- T7060 Power Command Manage slowdown in CE with tight inventory control Inventories reduced to low levels Focus on Parts & Service to support dealers and customers Tractor of the Year Golden Tractor for Design for Agritechnica -- T7070 Auto Command Tractor of the Year Golden Tractor for Design for 2010 Deliver superior performance on Parts & Service 2 new environmentally-efficient parts centers opened using latest in RF radio tracking technology Shortened order-to-delivery & service times January 25, 2010 Q4 & FY 09 Results Review 15

16 1.7 Inventory trend by quarter CNH (AG & CE Equipment) FY production levels 12% below retail sales; production expected to return to more normal pattern FY underproduction at targeted levels (under-produced retail sales by 51%), 2010 still to be characterized by tight inventory control January 25, 2010 Q4 & FY 09 Results Review 16

17 1.8 Industry outlook & sales volume Iveco (Trucks) Light Medium Heavy Industry ( 2.8T) (change vs. prior year) FY 09 FY 10E WE (34.5)% Flat / 5% EE (54.5)% Flat LA (12.1)% ~5% FY 09 Industry: poor WW Truck & Commercial Vehicle market conditions with significant drop in all segments and most regions, especially Europe WE: Light (-32%); Medium (-33%); Heavy (-44%) EE (-55%) & LA (-12%) Iveco: overall share in 2.8T WE market down 0.7 p.p. vs. last year heavily impacted by unfavorable market mix for Heavy, with improved performance in all segments in latter part of year De-stocking for new and used vehicles mostly completed. Disciplined price management FY 10 expectations Industry: H1 10 substantially flat in line with H2 09 with signs of recovery expected in H2 10 Iveco: Trucks and CV sales targeted to grow faster than market registrations January 25, 2010 Q4 & FY 09 Results Review 17

18 1.9 Consolidated presence in China Iveco (Trucks) Iveco trucks unit sales by region (including JVs) Iveco JV sales in China 107k 92k A single, strong partner Strategy for trucks with SAIC Competitive advantage over peers First-mover advantage Up-to-date manufacturing systems Fully localized range, including engines Iveco strategy Serving domestic market Exporting to international markets Leveraging supplier base for global sourcing Full market coverage Light, Medium & Heavy range China Truck Of The Year 2009 award 18k January 25, 2010 Q4 & FY 09 Results Review 18

19 1.10 Inventory trend by quarter Iveco (Trucks) WE+EE Trucks & Commercial Vehicles Overall dealer & company inventory down ~20% vs. previous quarter FY company de-stocking target achieved -41% -42% Dealer inventory (units) Company inventory (units) January 25, 2010 Q4 & FY 09 Results Review 19

20 2 Group purchasing Direct materials savings Q4 08 Average FY 09 net savings at ~ 0.5bn or 2.3%, with FY performance slightly above target Dec 07=100 FY 08 Average = -0.6% Continued efficiency actions on commercial & technical savings expected to bring positive net savings in FY 10 despite some raw material price increase FY 09 Average = -2.9% Q4 09 Average Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 January 25, 2010 Q4 & FY 09 Results Review 20

21 3 Firm grasp on costs and production levels FY update Managing the downturn World Class Manufacturing program Right-sized global workforce... Reduction of workforce by ~8,300 or 4.2% vs to ~190,000 includes All actions designed to minimize social impact Achieved 13% salaried personnel reductions at CNH Change-in-scope mostly due to Bertone acquisition...optimized production systems to align with market demand through a difficult Production stoppages through temporary layoffs and utilization of vacation banks in Italy, France, Germany & Spain Effectively managed temporary increase in demand in Brazil & Poland through utilization of overtime...tight grip on overhead costs... Temporary lay-offs and utilization of remaining vacation banks Discretionary SG&A cost curtailment above ~15% FY target and ready for 2010 Strict balance of production levels with demand Businesses to continue implementation of cost reduction actions and review of organizational structure 2009 achievements Average Group FY savings at 7.4% of transformation cost, well above ~7% FY target 114 Group plants involved (6 plants now at Silver level & 17 at Bronze ) 2010 targets Average year-over-year Group savings projected to ~6% of transformation cost Enlargement of scope and plant level upgrading Consolidation of WCM program with top suppliers Strategic decision in Italy FGA: termination of car production at Termini Imerese plant in 2011 CNH: ongoing shift of loader backhoe & compact wheel loader production from Imola to Lecce Plant. Planned shift of remaining production to San Mauro plant January 25, 2010 Q4 & FY 09 Results Review 21

22 2010 outlook After uneven trading conditions in 09, a year of transition & stabilization All sectors to improve performance over prior year, with Automobiles business dependent on continued availability of reliable eco-incentives programs to underpin demand in WE Forecasts include a continuation of rigorous cost containment action initiated as early as latter part of 2008, implemented vigorously throughout 2009 Contraction in Capex programs expected to ease in 2010, with resumption of a normalized level of capital commitments across all sectors, yielding a 30% to 35% rise in expenditures over 2009 Capital expenditures programs, forming part of industrial plan, underwent a severe contraction in 2009, in response to uncertainty of demand function for our various businesses and tightening of credit markets 2010 targets Revenues in 52-53bn range, up between 3% and 6% Trading profit of ~ 1.5bn Positive net income of 200 to 300mn Net debt levels below 5bn Targets subject to continued availability of eco-incentives in European automotive market, ex Germany where non-renewal of 2009 incentive scheme assumed. If incentives not available in 2010, European demand for automobiles would be negatively impacted. In Italy alone volumes would decrease by ~20% impacting all car producers, more importantly those particularly active in A & B segments, and Fiat in particular holding ~30% share In such a case Revenues would be 2.5bn lower Trading profit for both Automobiles and Components would drop by mn Shortfall in profits would impact net income on a 100% basis due to unavailability of tax relief, and would balloon debt disproportionately, pushing overall levels above 5bn mark Even in these circumstances, Fiat able to post a trading profit in excess of 1bn and have more than adequate financial resources to transition to 2011 and later years, when a normalized trading environment expected If eco-incentive schemes extended into 10, Automobiles & Components sectors expected to improve performance over 09 January 25, 2010 Q4 & FY 09 Results Review 22

23 Save the date Fiat Business Plan January 25, 2010 Q4 & FY 09 Results Review 23

24 2010 financial calendar March 26, 2010 Annual General Meeting July 21, 2010 Q2 & H1 Results January February March April May June July August September October November December April 21, 2010 Q1 Results and Fiat Investor Day October 21, 2010 Q3 Results January 25, 2010 Q4 & FY 09 Results Review 24

25 Appendix January 25, 2010 Q4 & FY 09 Results Review 25

26 Fiat Group Automobiles Closed a challenging 2009 recording highest Q4 revenues ever Revenues ( mn) Q4 5, % 7,247 Unit Sales (x000) Q3 6, % 6,541 Q2 7, % 6,905 Q1 6, % 5,600 FY 08 FY 09 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 Trading Profit ( mn) FY revenues down 2.4% to 26.3bn (substantially unchanged on constant currency) Q4 Q3 Q % -18.4% -36.2% Passenger cars up 5.7% to 1,843k units LCVs down 24.8% to 307k units Key markets leading volume increase Germany: 149k cars, nearly 2x 08 levels Q1 193 n.a. 155 Italy: +6.2% to 653k cars (30) Brazil: 12.6% to 750k units, including LCV FY 08 FY 09 January 25, 2010 Q4 & FY 09 Results Review 26

27 Fiat Group Automobiles Trading profit variance & margin ( mn) % (3) (456) 230 (168) (130) % Volume increase driven by passenger cars (+100k units) totally offset by LCVs (-102k units) Price/Mix negative effect mainly due to reduced LCV volumes in WE Purchasing savings proceeding apace WCM efficiencies partly offsetting uneven absorption across factories SG&A cost reduction at FY target FY '08 Volume Price Mix Purchasing Net Production Cost Absorp. R&D SG&A Other FY '09 Other mainly relates to FX translation effect January 25, 2010 Q4 & FY 09 Results Review 27

28 Fiat Group Automobiles Registrations & market share Passenger cars (market share; %) Italy WE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q LCVs (market share; %) Italy WE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q p.p p.p. FY p.p p.p. FY 09 WESTERN EUROPE Passenger cars Fiat brand share at 7.1% (+0.5 p.p.); Lancia share at 0.9% (+0.1 p.p.); Alfa Romeo share at 0.8% (+0.1 p.p.) FGA at 8.8% in WE (+0.6 p.p.) LCVs Italy +0.9 p.p. Germany +1.5 p.p. UK +0.6 p.p. WE ex-italy: +0.5 p.p. WE market share at 12.6% (+0.3 p.p.) Share in Italy down to 39.9.% driven by phase-out of Doblò (new model available in market in early 2010) and a sharp drop in camper segment, where Fiat Professional has a lion s share of market BRAZIL Leadership maintained with a 24.5% share in an overall booming market, topping healthy 2008 level January 25, 2010 Q4 & FY 09 Results Review 28

29 Luxury Auto Brands ( mn) Revenues Trading Profit Revenues Trading Profit 1,921 1, FY 08 FY 09 FY 08 FY 09 FY 08 FY 09 FY 08 FY 09 Revenues down ~7% on lower sales volumes and unfavorable sales mix 6,235 units sold, down 4.5% with reference market down ~40% globally Deliveries of 8-cylinder vehicles up, driven by success of California Trading margin at 13.4% Efficiency gains partly offsetting negative impact of volumes and product mix (both particularly favorable in 08) in addition to unfavorable currency movements Revenues down ~46% over last year 4,489 units sold, with 48.7% decline attributable to significant drop in company s reference markets Overall market share maintained, with improvement in Quattroporte s segment Trading profit underpinned by realignment of production levels and rigorous cost containment measures partly offsetting significant decline in volumes 458 Italia GranTurismo Convertible Presented at Detroit Motorshow for US market January 25, 2010 Q4 & FY 09 Results Review 29

30 Agricultural and Construction Equipment Focus on cash and tight cost controls, disciplined management Revenues ( mn) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 3,051 3,122 3,631 2,977 FY 08 Trading Profit ( mn) FY % -27.4% -21.2% -12.7% -58.9% -76.8% -69.2% -75.3% 2,381 2,268 2,860 2,598 FY FY 09 FY revenues down ~21% to 10.1bn impacted by most severe decline on record in CE markets and tough comps vs. exceptionally strong 2008 AG levels, particularly for combines Target company & dealer inventory levels achieved Progressive slowdown of global demand in AG from peak highs in 2008 Total combine unit deliveries down 20%; total tractor unit deliveries down 25% NA revenues down slightly due to network de-stocking actions and softening tractor sales partially offset by strength in combines Slowdown in remaining regions attributable to overall industry decline, network de-stocking actions & tight credit markets Worldwide CE industry retail volume down 38% Overall wholesales decline in both Light & Heavy equipment in all regions impacted also by de-stocking actions Light equipment FY unit deliveries down 63% (down 46% in Q4) Heavy equipment FY unit deliveries down 55% (down 22% in Q4) January 25, 2010 Q4 & FY 09 Results Review 30

31 Agricultural and Construction Equipment Trading profit variance & margin ( mn) 1,122 Lower industry volumes, de-stocking and unfavorable product mix Positive AG & CE pricing, despite market conditions 8.8% (827) 358 (266) (265) % Targeted headcount reduction and SG&A cost containment programs Reduced R&D include impact of synergies with FPT on Tier IV development Other includes lower earnings at CNH Capital FY '08 Volume/Mix Pricing, Net Production Cost SG&A R&D Other FY 09 January 25, 2010 Q4 & FY 09 Results Review 31

32 Trucks and Commercial Vehicles Tight cost management yielding 1.5% FY trading margin Revenues ( mn) Q4 Q3 Q2 Q1 2,361 2,441 3,122 2,970 FY % -29.7% -43.2% -48.7% 2,172 1,715 1,773 1,523 FY 09 FY revenues down 34.1% to 7.2bn mainly due to lower sales volumes in a poor European market, softened by more resilient after-sales and special vehicles businesses Q4 positively impacted by strong seasonality of special vehicles & LA Overall wholesale volumes down 45.9% to 104k units Sales by geographic area Q4 Q3 Q2 Trading Profit ( mn) % -87.8% WE down 47% to 67k units with sharp declines in all key markets: Italy -31%, Germany -43%, France -46%, Spain -60% & UK -73% EE down 73% LA down 19% in an improved market in latter part of year Sales by segment -92.7% Light down 42% Q1 222 n.a. 77 (12) Medium down 41% Heavy down 62% FY 08 FY 09 January 25, 2010 Q4 & FY 09 Results Review 32

33 Trucks and Commercial Vehicles Trading profit variance & margin ( mn) 838 Volume drop in all business segments 7.7% Pricing impacted by de-stocking actions in Europe, partially offset by LA & after sales margins FY '08 (905) Volume/ Mix (65) Price Purchasing Production Cost - BB/used (63) % R&D SG&A Other FY '09 Purchasing savings & improved manufacturing efficiency through WCM and labor flexibility Overhead costs cut by 20+% from ongoing actions January 25, 2010 Q4 & FY 09 Results Review 33

34 Trucks and Commercial Vehicles Market shares by region WE market share FY % % 9.3% Change vs. FY p.p p.p p.p. EE market share FY % % % 2 Change vs. FY p.p p.p p.p. Brazil market share FY 09 Light (3.5-6T) Medium Heavy 27.0% 3.7% 11.9% Change vs. FY p.p p.p p.p. WE market share 3.5T at 13.6% (9.2% 2.8T), with slight decline in share reflecting unfavorable market mix Continued strong competition in Light segment from car-based vehicles Improved penetration in Q4 in all segments vs. previous quarter Brazil Market share 3.5T at 8.3%; Q4 share up 0.4 p.p. vs. last year Market share loss in Heavy segment due to margin protection and excess manufacturing capacity in market T at 7.9% (-0.5 p.p.) vs. last year 2 Estimates January 25, 2010 Q4 & FY 09 Results Review 34

35 Components FPT Powertrain Technologies Revenues ( mn) 166 2,4% FY '08 Other & Elim. (8) mn P&CV I&M 7,000 3,650 3,358-29% 4,952 3,372 1,580 FY '08 FY '09 Other & Elim. -mn Trading Profit variance ( mn) & margin (385) Volume /Mix 62 Price 52 Purchasing Net 63 Production Cost 6 (2) % (25) SG&A R&D Other FY '09 Passenger & Commercial Vehicles Revenues down ~8%: ~2.3mn engines (down 63k or ~3%, with third-party sales declining 50+%) and ~2.2mn transmissions (+9%) Industrial & Marine Revenues down 53%: engine sales at 268k (-51%), gearboxes at 53k (-50%) & axles at 105k (-62%) Start of production of F1C engines Offering of leading-edge powertrains compliant with strictest emissions standards expanded across businesses Technobest 2009-awarded Fire MultiAir Euro liter Small Diesel Engine with MultiJet II injection system technology Small off-road engines available to meet Tier IV interim requirements Range of 5 EEV compliant diesel engines for Iveco New EcoDaily, also available in twin-stage turbo version, CNG, bi-fuel (gas & CNG) Small trading loss for FY ( 59mn profit in H2) Significant efficiency gains in overheads, manufacturing & purchasing partially offsetting sharp drop in I&M volumes & unfavorable sales mix January 25, 2010 Q4 & FY 09 Results Review 35

36 Components Teksid, Marelli, Comau Revenues ( mn) 837 1, Teksid Comau Teksid FY revenues down ~31% with ~27% volume decline in Cast Iron business and ~6% volume drop in Aluminum business Trading result reflected significant contraction in volumes 5,447 4,528 FY '08 FY '09 Trading Result ( mn) (12) (28) FY '08 FY '09 Marelli Marelli Teksid Comau Magneti Marelli FY revenues down ~17% (down 14% on a comparable basis) primarily attributable to fall in volumes in H1, slowing in H2 Most significant volume declines in Europe (ex Poland) and US Comau Growth of Engine Control Units in China & India, strong sales performance for Exhaust Systems in Brazil (both third-party sales & Fiat) Notwithstanding lower volumes, a trading profit of 25mn posted on the back of reductions in overheads, increased production and purchasing efficiencies FY revenues down ~35% (down 31% on a comparable basis) mainly driven by Body Welding Services growth in Mercosur unable to offset order decline in EU Trading result primarily attributable to lower business volumes for Body Welding and Die-cutting January 25, 2010 Q4 & FY 09 Results Review 36

37 Q4 09 Revenues & trading result ( mn) Q4 '09 Change 2009/2008 Cons. Industrial Financial Cons. Industrial Financial Revenues Fiat Group 13,601 13, of which Automobiles 7,815 7, ,482 +1,488-9 FGA 7,247 7, ,545 +1,556-9 Ferrari Maserati CNH 2,381 2, Iveco 2,172 2, Components 2,872 2, Others & Elim. (1,639) (1,613) CNH ($) 3,540 3, Trading result Fiat Group of which Automobiles FGA Ferrari Maserati CNH Iveco (9) Components Others & Elim. (22) (23) CNH ($) January 25, 2010 Q4 & FY 09 Results Review 37

38 FY 09 Revenues & trading result ( mn) FY Change 2009/2008 Cons. Industrial Financial Cons. Industrial Financial Revenues Fiat Group 50,102 48,917 1,467-9,462-9, of which Automobiles 28,351 28, ,029-1, FGA 26,293 26, Ferrari 1,778 1, Maserati CNH 10,107 9,165 1,129-2,674-2, Iveco 7,183 7, ,711-3, Components 10,327 10,327-3,466-3,466 Others & Elim. (5,866) (5,817) (3) 1,418 1,432 CNH ($) 14,097 12,783 1,574-4,700-4, Trading result Fiat Group 1, ,304-2, of which Automobiles FGA Ferrari Maserati CNH Iveco (26) Components (40) (40) Others & Elim. (63) (63) CNH ($) ,180-1, January 25, 2010 Q4 & FY 09 Results Review 38

39 Fiat Group Automobiles Q4 09 market & market share (ex Ferrari & Maserati) Passenger Cars Q4 Unit % Units Change Change WE Market 3, , % Registrations % Mkt Share % 8.4% 8.3% 0.1 Italy Market % Registrations % Mkt Share % 31.5% 31.7% -0.2 Germany Market % Registrations % Mkt Share % 3.4% 2.9% 0.5 France Market % Registrations % Mkt Share % 4.1% 4.4% -0.3 U.K. Market % Registrations % Mkt Share % 4.2% 2.8% 1.4 Spain Market % Registrations % Mkt Share % 2.6% 3.4% -0.8 Poland Market % Registrations % Mkt Share % 9.1% 9.2% -0.1 Brazil Market % Registrations % Mkt Share % 24.6% 23.7% 0.9 Light Commercial Q4 Unit % Vehicles Units Change Change WE Market % Registrations % Mkt Share % 12.0% 12.5% -0.5 Italy Market % Registrations % Mkt Share % 39.5% 43.3% -3.8 Germany Market % Registrations % Mkt Share % 9.1% 9.9% -0.8 France Market % Registrations % Mkt Share % 7.1% 7.2% -0.1 U.K. Market % Registrations % Mkt Share % 3.5% 4.1% -0.6 Spain Market % Registrations % Mkt Share % 8.7% 8.7% 0.0 Poland Market Registrations % Mkt Share % 29.0% 24.2% 4.8 Brazil Market % Registrations % Mkt Share % 23.3% 24.2% -0.9 January 25, 2010 Q4 & FY 09 Results Review 39

40 Fiat Group Automobiles FY 09 market & market share (ex Ferrari & Maserati) Passenger Cars Full Year Unit % Units Change Change Light Commercial Vehicles Full Year Unit % Units Change Change WE Market 13, , % Registrations 1, % Mkt Share % 8.8% 8.2% 0.6 Italy Market 2, , % Registrations % Mkt Share % 32.8% 31.9% 0.9 Germany Market 3, , % Registrations % Mkt Share % 4.7% 3.2% 1.5 France Market 2, , % Registrations % Mkt Share % 4.4% 4.3% 0.1 U.K. Market 1, , % Registrations % Mkt Share % 3.5% 2.9% 0.6 Spain Market , Registrations % Mkt Share % 2.5% 3.6% -1.1 Poland Market % Registrations % Mkt Share % 10.3% 9.4% 0.9 Brazil Market 2, , % Registrations % Mkt Share % 24.6% 24.9% -0.3 WE Market 1, , % Registrations Mkt Share % 12.6% 12.3% 0.3 Italy Market % Registrations Mkt Share % 39.9% 43.3% -3.4 Germany Market % Registrations % Mkt Share % 11.9% 11.6% 0.3 France Market % Registrations % Mkt Share % 8.9% 8.1% 0.8 U.K. Market % Registrations % Mkt Share % 3.7% 4.2% -0.5 Spain Market % Registrations % Mkt Share % 8.6% 9.1% -0.5 Poland Market % Registrations % Mkt Share % 25.6% 21.4% 4.2 Brazil Market % Registrations % Mkt Share % 24.1% 23.0% 1.1 January 25, 2010 Q4 & FY 09 Results Review 40

41 Fiat Group Automobiles Worldwide unit sales by region, Cars+LCVs (unit/000) * -7.6% +30.1% -0.1% 1, ,153 2,151 RoW WE ex Italy % -8.1% 1, % +28.4% -34.5% -0.7% Italy -5.9% +25.9% +0.5% Brazil +2.7% +55.8% +12.6% * Incl. sales w/buyback, excl. JVs and Ferrari & Maserati January 25, 2010 Q4 & FY 09 Results Review 41

42 Fiat Group Automobiles Worldwide unit sales by brand, Cars+LCVs (unit/000) * -7.6% +30.1% -0.1% Alfa 1, % 1, % 556 2,153 2, % Fiat -1.9% +39.0% +5.9% Lancia +1.8% +37.9% +9.2% LCV -32.9% +5.6% -24.8% * Incl. sales w/buyback, excl. JVs and Ferrari & Maserati January 25, 2010 Q4 & FY 09 Results Review 42

43 Fiat Group Automobiles Production volumes, sales volume & registrations WW Passenger Cars & LCV ( 000 units) Production Registrations & Sales Registrations Units sold January 25, 2010 Q4 & FY 09 Results Review 43

44 Net debt breakdown ( bn) Sept. 30, 09 Dec. 31, 09 Cons. Ind. Fin. Cons. Ind. Fin Gross Debt* (0.1) (0.1) - Derivatives M-to-M, Net (0.2) (0.2) - (8.4) (7.3) (1.1) Cash & Mktable Securities (12.4) (11.0) (1.4) Net Debt * Net of intersegment receivables January 25, 2010 Q4 & FY 09 Results Review 44

45 Gross debt ( bn) Outstanding Sept. 30, '09 Outstanding Dec. 31, ' Cash Maturities Bank Debt Capital Market * Other Debt Securitization and Sale of Receivables (on book) ABS / Securitization Warehouse Facilities Sale of Receivables Adjust. for Hedge Accounting on Fin. Payables Gross Debt Cash & Mktable Securities Derivatives Fair Value Net Debt Available Committed Lines 0.0 * Excluding Bond fair value, including interest accruals January 25, 2010 Q4 & FY 09 Results Review 45

46 Debt maturity schedule ( bn) Outstanding Dec. 31, ' Beyond 8.4 Bank Debt Capital Market * Other Debt Total Cash Maturities Cash & Mktable Securities 0.5 of which ABS related 4.6 Sale of Receivables (IFRS de-recognition compliant) 3.0 of which receivables sold to financial services JVs (FGA Capital, Iveco Finance Holding Ltd) * Excluding Bond fair value, including interest accruals January 25, 2010 Q4 & FY 09 Results Review 46

47 Safe Harbor Statement January 25, 2010 Q4 & FY 09 Results Review 47

48 Contacts Fiat Investor Relations team Marco Auriemma phone: Vice President Federico Donati phone: Alexandra Deschner phone: Maristella Borotto phone: fax: website: January 25, 2010 Q4 & FY 09 Results Review 48