The Closing of 111 Years of Solitude Two Brave New Worlds Revisited Q4 & FY 10 Results Review

Transcription

1 The Closing of 111 Years of Solitude Two Brave New Worlds Revisited Q4 & FY 10 Results Review January 27, 2011 Q4 & FY 10 Results Review 1

2 Dawn of a new day January 27, 2011 Q4 & FY 10 Results Review 2

3 Fiat SpA & Fiat Industrial D-Day January 27, 2011 Q4 & FY 10 Results Review 3

4 FY 10 highlights All key indicators ahead of previously upped guidance, all businesses contributing positively Revenues (chg vs. FY 09) ( /bn) Automobiles business up 6.3% on increased sales of LCVs, Ferrari and Maserati, in addition to positive FX more than offsetting decline in unit volumes in passenger cars for FGA Fiat Industrial: significant volume recoveries for all businesses % % % Fiat Group Net profit ( /mn) A positive swing of 1.4bn over 2009 Trading profit (chg vs. FY 09) ( /bn) Automobiles 934mn (up 215mn y-o-y) CNH and Iveco more than double prior year s results Trading margin (chg vs. FY 09) x 3.9% +1.8 p.p. Fiat Group % +3.4x 3.1% +0.8 p.p. 5.1% +3.3 p.p Net industrial debt ( /bn) Reduced significantly ( 4.4bn in 2009) reflecting positive operating performance for all businesses and continued disciplined working capital management Split between Fiat post-demerger and Fiat Industrial takes into account effects deriving from demerger occurred on Jan 1, 2011 Liquidity ( /bn) Cash position of 15.9bn further strengthened (2009: 12.4bn) also thanks to strong cash flow from operations and continued access to capital markets January 27, 2011 Q4 & FY 10 Results Review 4

5 FY 10 highlights (cont d) Fiat Industrial financing package Successfully signed and syndicated a 4.2bn financing package in December 3-year 2.0bn revolving credit facility 1-year 2.2bn bridge to Capital Markets term facility plus 1-year extension at Company s option In January 2011, newly negotiated credit facilities became available and drawn down to the extent necessary to fully repay amounts owed to Fiat s central treasury Had this taken place at year-end, liquidity would have been 1.0bn higher for Fiat post-demerger, with Fiat Industrial s liquidity and cash balances unchanged while still having access to an additional 2.0bn of committed undrawn credit facilities 1bn bi-lateral committed credit facilities finalized and now available to Fiat Industrial Fiat s Board of Directors recommend a total dividend for all 3 classes of Fiat S.p.A. shares of 152mn (ex own shares) with proposed distribution by share class as follows 0.09 per ordinary share, representing a total distribution of 98.3mn ( 94.8mn excluding own shares currently held) 0.31 per preference share, representing a total distribution of 32mn 0.31 per savings share, representing a total distribution of 24.8mn Fiat SpA increased ownership interest in Chrysler Group LLC from 20% to 25% on January 10 th following achievement of first of 3 performance-related events (beginning of commercial production of FIRE engine in Dundee facility) January 27, 2011 Q4 & FY 10 Results Review 5

6 FY 10 From trading to net result ( mn) FY '10 '09 Trading profit 2,204 1,058 +1,146 Unusual items, net (195) (699) +504 Operating income 2, ,650 Financial charges, net (905) (753) -152 Investment income, net Pre-tax result 1,282 (367) +1,649 Taxes (682) (481) -201 Net result 600 (848) +1,448 Unusual items, net : Mainly due to restructuring costs across all Sectors ( 176mn) inclusive of relatedasset write-off Financial charges, net : Increase primarily due to cost of maintaining a higher level of liquidity Include gain of 111mn on two stock-option related equity swaps (gain of 117mn in FY 09) January 27, 2011 Q4 & FY 10 Results Review 6

7 Group cash flow Q4 & FY 10 ( mn) Q4 '10 FY '09 FY '10 (3,966) Net Industrial (Debt)/Cash beginning of period (5,949) (4,418) 318 Net Income (848) D&A (excl. Vehicle Buybacks) 2,667 2, Change in Funds & Others ,273 Cash Flow from Op. Activities bef. Chg. in W.C. 1,937 3,998 1,553 Change in Working Capital 2,564 1,886 2,826 Cash Flow from Operating Activities 4,501 5,884 (1,404) Tangible & Intangible Capex (excl. Vehicle Buybacks) (3,382) (3,712) 1,422 Cash Flow from Operating Activities net of Capex 1,119 2, Change in Investments, Scope & Other 525 (76) 1,432 Net Industrial Cash Flow 1,644 2,096 (1) Capital Increase / Share Repurchases / Dividends (20) (238) 93 FX Translation Effect (93) 118 Strong operating cash flow in the quarter enhanced by working capital contribution Further stock reduction Seasonal increase in trade payables Continued Capex discipline 1,524 Change in Net Industrial Debt 1,531 1,976 (2,442) Net Industrial (Debt)/Cash end of period (4,418) (2,442) January 27, 2011 Q4 & FY 10 Results Review 7

8 Synergies across businesses World Class Manufacturing Group Purchasing Performance trend Direct materials mn 1,200 ~ 1,100mn Dec 08=100 1, FY 09 Average 200 Q4 10 Average 0 Q4 09 Average FY 10 Average Savings achieved Cumulative savings achieved Group savings in 2010 at 7.3% of transformation cost, well above initial target Enlargement of scope and plant level upgrading Achievements since implementation: 73 Fiat SpA & 57 Fiat Industrial plants involved, program extended to 200 supplier plants Awards: 7 plant upgrades in 2010, with 7 plants now at Silver level & 12 at Bronze at Fiat SpA; 2 plants at Silver level & 6 at Bronze at Fiat Industrial Achieved 380+mn net savings in FY, exceeding original target, with Q4 performance flat due to price hikes of certain raw materials (i.e. steel, rubber ) Joint purchasing activities with Chrysler Group proceeding apace, contributing positively to FY results January 27, 2011 Q4 & FY 10 Results Review 8

9 1 FY revenue & trading profit by business 2 Fiat Group Automobiles 3 Luxury & Performance brands 4 Fiat Powertrain 5 Outlook 20 Novembre, 2010

10 1 FY 10 Fiat post-demerger Revenues and trading profit by business Fiat Group Automobiles Revenues ( mn) 30,130 10, % (5,115) 35,880 Revenues up 6% to 27.9bn on favourable mix & FX impacts partially offset by volume declines for passenger cars (+0.5% at constant FX rate) Trading profit up nearly a third with 2.2% margin on improved mix with notable recovery in LCV demand, significant contribution from Brazil, continued improvements from purchasing & WCM efficiencies 6.3% FGA 27, % Maserati % Ferrari 1, % 9.8% Luxury & Performance brands Automobiles Components & Production Systems Eliminations & Others FY 10 Double-digit combined top-line growth: Ferrari at 1.9bn, up 7.9% & Maserati up 30.8% to 0.6bn Trading profit for both brands benefited from performance of new models and optimization of cost structures: Ferrari up 65mn to 303mn (15.8% margin); Maserati more than doubled to 24mn (4.1% margin) Trading profit ( mn) % Automobiles x (71) FGA % Maserati x Ferrari % Components & Production Systems Eliminations & Others 1, % FY 10 Components & Production Systems (Fiat Powertrain *, Magneti Marelli, Teksid, Comau) Revenues of 10.9bn, up 23.6% Fiat Powertrain up 24.9% to 4.2bn Magneti Marelli up 19.3% to 5.4bn on strong performance for LCVs and recovery in mediumlarge passenger car segments Nearly tripled trading profit to 249mn (2.3% margin), driven by higher volumes & improved product mix Fiat Powertrain improved by 36mn to 140mn Magneti Marelli up 73mn to 98mn due to increased sales volumes, cost containment actions and manufacturing efficiencies * Fiat Powertrain includes activities of Passenger & Commercial Vehicles business line of former FPT Powertrain Technologies sector January 27, 2011 Q4 & FY 10 Results Review 10

11 2 Fiat Group Automobiles Sales volumes & industry outlook Passenger cars LCVs 2,082 FY 10 (change vs. prior year) FY 11E (change vs. prior year) EU27+EFTA (4.9)% ~(3)% ITA (9.2)% ~(5)% BRA 6.9% +0-5% EU27+EFTA 9.2% +2-3% ITA 6.2% + ~1% BRA 29.5% +2-5% 2.2 to 2.3 mn units FY 10 Passenger car industry (EU27+EFTA) down 4.9% to 13.8mn units with mixed but overall positive trend in minor markets unable to counter drop in demand A mixed year, with overall market up in Q1 on the back of ecoincentive tail in most countries while down ~10% for the rest of the year Sharp decline in Germany (-23.4%) but improved in latter part of 2010 (-8.2% in Q4) & Italy (-9.2% or ~200k units for FY; -22.7% in H2) UK & Spain up 1.8% and 3.1% respectively with double-digit decline in H2 due to phase-out of incentive programs; demand slightly negative in France (-2.2%) with trend deteriorated in H2 LCVs market (EU27+EFTA) recovering from 2009 lows, topping 1,660k units, but well below levels Double-digit demand growth in Germany, France & UK; more modest increase in Italy & Spain (+6.2% and 9.5% respectively) FY 10 FY 11E Passenger cars Italy EU * ex-italy LA RoW LCVs Unit Sales (x000) FY 11 expectations EU27+EFTA Passenger cars: market projected to ~13.3mn units, with decrease driven by France & Italy while Germany up slightly; FGA share expected to improve on the back of new launches in H2 LCVs: slight increase in overall European market including top-5 markets; Fiat Professional maintaining a leading position Brazil: overall industry projected in mn units range; Fiat share expected at 2010 level * EU27+EFTA January 27, 2011 Q4 & FY 10 Results Review 11

12 2 Fiat Group Automobiles Passenger car business dynamics in 2010 EU27+EFTA [Change vs. last year in percentage points] = FGA residual value gap vs. peers significantly narrowed in Italy due to continued quality enhancement and careful price management Residual value stable since 2008 with 2.6 p.p. reduction vs. industry average Fiat brand: 0.3 p.p. better than industry average; Lancia +7.8 p.p.; Alfa Romeo +3.2 p.p. (4.1)% 36 months (1.5)% FY share at 7.5% (1,035k registrations), down 1.1 p.p. mainly due to underperformance in Italy & Germany Italy: drop in demand largely driven by sharp contraction of CNG & LPG powered vehicles (-25%) where FGA has lion s share; up 0.2 p.p. ex alternative-fuel market Europe ex-italy share at 3.8% (-0.6 p.p.): gains in the Netherlands, Spain and other countries unable to offset negative performance in Germany with FGA s relevant market segments down 40+% By brand Fiat at 6.0% (-1 p.p.) or 825k units Lancia at 0.7% Alfa Romeo stable at 0.8% (110k units) with targeted performance of Giulietta providing support to the brand for stable registrations January 2008 January 2011 Source: Eurotax Blu * Excludes OEMs with market share below 1% Industry average* Residual value of FGA products narrowing distance vs. industry average also in UK & Germany FGA January 27, 2011 Q4 & FY 10 Results Review 12

13 2 Fiat Group Automobiles The Cinderella stories LCVs Brazil Fiat Professional FY share of 12.8% in EU27+EFTA, unchanged vs Registrations up 17k on the back of highly competitive product offering and strong distribution network Share at record high despite unfavorable market mix in H2 Italy: 3 p.p. gain to 44.0% in a market progressing at slower pace (+6.2%) than overall Europe Europe ex-italy: double-digit share in half of European countries, with gains in all markets, except Germany, France, Belgium & Portugal All-time overall industry high at 3.3mn units in 10 (+10.6% vs. prior year); record sales in December (361k units) Fiat leader for 9 th consecutive year with 22.8% overall share Booming passenger car market (+6.9% to 2.7mn units) Successful launch of Novo Uno (110k units sold), winner of 15 prizes in 2010 including Carro do Ano award Strong LCV market, up 29.5% to 0.6mn units Fiat undisputed market leader with ~8 p.p. advantage 10.9 EU27+EFTA (market share; %) FY 06 FY 07 FY 08 FY 09 FY 10 Laid foundation for new plant in Pernambuco at December-end Investment of ~R$3bn, part of ~R$10bn commitment to be invested in Brazil in timeframe Start-of-production expected in 2013, with initial yearly capacity of 200k locally developed vehicles for domestic market and export to LA countries January 27, 2011 Q4 & FY 10 Results Review 13

14 2 Fiat Group Automobiles Production systems & labour union agreements Capacity utilization (Passenger car plants) 2009A 2010A 2010 key commitments (Italy) Labour Union agreements: securing the future through greatest operating flexibility at plants Italy 1 Pomigliano d Arco: new collective labour agreement in force since Jan 2011 replacing national Metal Industry labour contract Start of production of future Panda in H (expected volumes up to 270k units/year) Mirafiori: agreement for plant re-launch through establishment of Fiat & Chrysler JV Rest of Europe 2 Production of C-segment SUVs for distribution under both Jeep & Alfa Romeo brands worldwide (including US) with output levels of up to a maximum of 280k vehicles per year Harbour definition (235 days per annum/16 hours per day) Technical definition (280 days per annum/3 shifts per day) Ensuring more effective plant operations, with no infringement on worker rights 1 Italy: Cassino, Melfi, Mirafiori, Pomigliano d Arco & Termini Imerese 2 Tycky (Pol), Kragujevac (Ser), Bursa (Tur) All conditions of national collective agreement remaining unchanged, as well as, those granted over time by Fiat in favour of workers Termination of car production at Termini Imerese plant in 2011 January 27, 2011 Q4 & FY 10 Results Review 14

15 3 Luxury & Performance brands Ferrari All-time record of units sold FY revenue up 7.9% to 1.9bn mainly reflecting higher sales volumes and positive contribution from customization program Units sold up 5.4% to 6,573 Continued success of Ferrari California and full roll-out of 458 Italia accounting for 87% of total deliveries Excellent performance of limited edition 599 GTO FY trading profit up 27.3% to 303mn on higher sales volumes, excellent results from customization program and efficiency gains Trading margin at 15.8% (up 2.4 p.p.) Units sold by region (%) China now a top-5 international market for Ferrari China 7% Others 21% USA 28% Record high of ~300 units sold, up 50% vs. last year Strengthened official network to 10 dealerships, with new locations opening in various cities within next few months Japan 7% European Top 5 37% January 27, 2011 Q4 & FY 10 Results Review 15

16 3 Luxury & Performance brands Maserati Expanding international reach FY revenue up 30.8% to 586mn primarily attributable to excellent sales performance for new GranCabrio 5,675 units sold, up 26.4% Positive performance in majority of 59 national markets USA, #1 market: +45% UK: +72% China: +128% (becoming 4th largest market) New products and accomplishments New GranTurismo MC Stradale, fastest, lightest and most powerful model in the product range Limited edition Quattroporte Sport GTS Awards Edition and GranTurismo MC Trofeo MC12's victory of the 2010 FIA GT1 World Championship FY trading profit at 24mn (2.2x last year level) on the back of higher sales volumes and continued optimization of operating costs Trading margin at 4.1% (up 1.6 p.p.) Others 23% Units sold by region (%) USA 36% GranTurismo MC Stradale presented at Paris Motorshow with commercial launch in 2011 China 8% Japan 3% European Top 5 31% January 27, 2011 Q4 & FY 10 Results Review 16

17 4 Fiat Powertrain FY revenue up 24.9% to 4.2bn (+11.1% on comparable basis) on continued robust sales in LA partly offset by decline in Europe Engines up 2.5% to 2,347k Transmissions up 1.1% to 2,233k Trading profit improved by 36mn to 140mn driven by favorable sales mix and manufacturing & material efficiencies Other key achievements Start of production of 2.0L 140hp Fam. B diesel engine, a new version featuring down-speeding technology (4% reduction in consumption on combined cycle) 1.4 MultiAir turbo engine awarded Engine of the Year in the best new engine of the year category Awarded prestigious international Technobest 2010" prize for innovative TwinAir 2-cylinder engine 2010 Awarded with Best of What s New in US by Popular Science magazine in Q4 January 27, 2011 Q4 & FY 10 Results Review 17

18 5 Outlook Fiat post-demerger As per Apr 21, 2010 Plan ( bn) 2011E 2012E 2013E 2014E Revenues Trading Profit Industrial EBITDA CAPEX Plan confirmed 2011 targets Revenues of ~ 37bn FGA volumes of between 2.2 and 2.3mn cars, with continuing strength expected from Brazil and recovering volumes in H in Europe Trading profit of 0.9 to 1.2bn Net Income of ~ 0.3bn Capital expenditures of 4.0 to 4.5bn Net industrial debt between 1.5 and 1.8bn Dividend policy for 2011, a transition year, is expected to remain unchanged, with expected payout range of 25% of consolidated income with a minimum payout of 50mn The Board of Director will articulate a dividend policy for later years within 2011 January 27, 2011 Q4 & FY 10 Results Review 18

19 2011 financial calendar February 18 Consolidated and parent company financial statements for 2010 March 30 Annual General Meeting July 25 Q2 & H1 Results January February March April May June July August September October November December April 20 Q1 Results October 27 Q3 Results January 27, 2011 Q4 & FY 10 Results review 19

20 1 FY revenue & trading profit by business 2 CNH 3 Iveco 4 FPT Industrial 5 Outlook 20 Novembre, 2010

21 2 1 FY 10 Fiat Industrial Revenues and trading profit by business Revenues ( mn) 8,307 2, % (1,286) 21,342 CNH Double-digit growth in FY revenue on improved demand for AG driven by increased global commodity prices and healthy recovery in CE demand, particularly in the Americas and Asia-Pacific markets 11, % 18.8% Trading profit of 755mn, up 418mn (a 300 bps margin improvement) due to higher sales volumes, increased capacity utilization in the Americas, improved product mix and pricing 17.8% Iveco CNH IVECO FPT Industrial Eliminations & Others Trading profit ( mn) FY 10 Revenues up 15.6% with overall deliveries up 24.8% to ~130k (+52.4% in LA; +41.6% in East Europe; +17.3% in WE) Improvement of 165mn in trading profit with 3.3% margin primarily driven by higher sales volumes and production efficiencies n.a. +2.6x +2.2x CNH IVECO FPT Industrial Eliminations & Others 1, x FY 10 FPT Industrial * Revenues 1.5x of last year level on strong volume recovery Swing of 196mn over last year in trading profit (2.7% margin) on strong volume increase and manufacturing & material efficiencies FPT Industrial includes activities of Industrial & Marine business line of former FPT Powertrain Technologies sector * Q4 & FY 10 Results Review January 27,

22 2 2 CNH Agricultural Equipment Sales volume & industry outlook Tractors Combines Industry (change vs. prior year) FY 10 FY 11E CNH (performance relative to mkt) Industry (change vs. prior year) WW +8% +0-5% NA +5% ~ +5% <40hp +5% +5-10% 40+hp +6% +0-5% WE (9%) +5-10% LA +20% ~ (5%) RoW +13% +0-5% WW +2% +5-10% NA +9% +5-10% WE (29%) ~ +10% LA +29% +0-5% RoW +3% % FY 10 Global AG industry up 8% NA: market demand for high hp tractors and combines continued to support overall industry on strong AG commodity prices and solid farm income WE: tractor sales up 12% in Q but FY industry level remained below historical norm LA: industry sales growth on good fundamentals and stability in government s support to AG sector RoW: positive market demand overall and especially strong in Turkey CNH tractor market share Global share in line with industry trend, share stable in WE despite industry decline NA share slightly down in <40hp and mid-sized utility tractors while transitioning to new and more competitive products CNH combine market share Gains on strong performance in RoW region Company and dealer inventories in line or below industry averages largely driven by strong demand in NA in Q4 and selective production curtailments in Brazil FY 11 expectations Global AG demand flat to up 5% vs Tractors demand flat to up 5% Combines demand up 5-10% with growth in every region Q4 & FY 10 Results Review January 27,

23 2 2 CNH Construction Equipment Sales volume & industry outlook Light Heavy Industry (change vs. prior year) FY 10 FY 11E CNH (performance relative to mkt) Industry (change vs. prior year) WW +35% +8-12% NA +20% % WE +23% % LA +89% +0-5% RoW +50% Flat WW +59% +5-10% NA +14% ~ +25% WE +17% ~ +15% LA +86% ~ +5% RoW +71% ~ +5% FY 10 Overall CE industry up 47% off a low basis in 2009 LA: market remained solid, supported by increased infrastructure activity NA: volumes up both in Q4 and for FY, largely as a result of restocking of ageing fleet CNH market share in line with market growth LA share down due to CNH local manufacturing capacity constraints; important capacity expansion projects started in 2010 Production 13% below retail to allow for de-stocking initiatives to be completed, and as a result of product launch related capacity losses and for introduction of new models in 2011 FY 11 expectations Global demand for Light equipment expected to increase 8-12% Global demand for Heavy equipment expected up 5-10% Q4 & FY 10 Results Review January 27,

24 CNH 2 AG&CE JVs operations update Significant unconsolidated subsidiaries Turkey TTF Tractors Japan KCM - Excavators HFT Tractors Pakistan Al Ghazi Tractors India L&T Tractor Loader Backhoes, Compactors Other International region consolidated subsidiaries Russia Kamaz - Tractors, Combines, CE China Harbin Tractors Shanghai - Tractors Uzbekistan Tashkent - Tractors, Planters CNH International ideally positioned through its global footprint to capture rapid growth of AG and CE equipment in emerging markets Investment income of 66mn in 2010 attributable to CNH from Equipment Operations unconsolidated JVs (negative interest of 32mn in 2009) Russia Successfully achieved local manufacturer status (via CNH- Kamaz JV) for assembly of New Holland AG high hp 4WD T9000 and row crop T8000 tractor series and CSX combine harvesters; CE localization planned for 2011 China Manufacturing facilities expansion in Harbin to maintain leadership in imported large equipment Leverage of Chinese low cost platform to export tractors in other international region markets (i.e. South East Asia) Turkey Market strongly recovered from its 2009 slump India New Holland India more than doubled its export to the Americas and select African markets Current capacity expansion underway to capture new volumes in growing market and to expand production into balers, cane and cotton harvesters and rice farming equipment Uzbekistan Continued leadership position through localized tractors Introduction of construction equipment Q4 & FY 10 Results Review January 27,

25 3 Iveco (Trucks) Sales volume & industry outlook FY 10 WE market up mid-single digit to 529k units on initiated recovery in all markets with sole exception of Italy (-3.2%); Heavy range up +35% in H2 vs. same period last year Light : +9.0% Medium: -1.5% Light Medium Heavy Industry ( 3.5T) (change vs. prior year) FY 10 FY 11E WE +6% +5-10% EE +13% +5-10% LA +32% Flat Heavy: +3.5% Latin America industry at all-time record driven by Brazil (+47%) & Argentina (+51%) but mitigated by poor Venezuelan market (-39%) Iveco Order intake up 38% in WE (Light +28%; Medium +40%; Heavy +107%) Company and dealer inventory levels for new & used vehicles well below WE industry average on the back of structural improvements in supply chain management WE share at 13.2% impacted by performance in Heavy segment due to earlier de-stocking actions and price recovery vs. competition FY 11 expectations WE market recovery to continue across segments with Light +5% and Medium/Heavy +10% LA industry to stabilize over 2010 peak levels with Brazil and Argentina continuing to perform well Q4 & FY 10 Results Review January 27,

26 3 Iveco (Trucks) Focus on China & Latin America China Brazil Unconsolidated sales [k/units] FY 2006 FY 2007 FY 2008 FY FY 2010 Favorable economic environment supported by Government incentives and infrastructure investment programs Share gains on competitive product offering across segments and a dealer network now restructured Strong performance of New Eurocargo /Tector family in Medium segment (+1.1 p.p. share) Share gains in Q4 in Heavy segment (+0.6 p.p. to 12.5%) driven by new models (Stralis NR and Cursor) Continued strong market, up 35% to 3.3mn units in 2010 Iveco FY unconsolidated sales up 32% to 141k units Light +26%, Medium & Heavy +56% and Light Bus +28% Growing importance for serving int l markets Export volumes up 8% vs driven by Latin America and 8 new markets in Africa, Middle East & Asia Investment income of 15mn in 2010, recognized under equity method Iveco registrations [k/units] 4.0% % % 8.4% % 15.4 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Q4 & FY 10 Results Review January 27,

27 4 FPT Industrial (Industrial & Marine) FY revenue up 52.8% to 2.4bn on strong volume recovery from 2009 lows Engines up 58.1% to 423k Gearboxes up 25.0% to 66k units & axles up 32.1% to 139k units Sales to 3 rd parties and JVs accounted almost a third of total sales A 196mn swing in trading profit to 65mn on strong volume increase and manufacturing & material efficiencies Other key achievements Successfully launched new high performance version of Cursor 13 for AG application, equipped with twin-stage turbo common rail engine (max 660hp output) and FPT proprietary SCR technology Consolidated leadership position as powertrain supplier for marine endurance competitions Showcased in Q4 new 650hp C90 engine for marine applications with start of production in early 2011 HC CO DOC DPF Urea SCR N 2 CO 2 PM NOx H 2 O DOC: Diesel Oxidation Catalyst DPF: Diesel Particulate Filter EGR: Exhaust Gas Recirculation SCR: Selective Catalytic Reduction Proprietary SCR technology Euro 6 standards compliant without EGR, maximizing fuel economy Very high NOx conversion efficiency (>95% vs % of best peers) Q4 & FY 10 Results Review January 27,

28 5 Outlook Fiat Industrial As per Apr 21, 2010 Plan ( bn) 2011E 2012E 2013E 2014E Revenues Trading Profit Industrial EBITDA CAPEX plan confirmed 2011 targets Revenues of ~ 22bn Trading profit of bn Net Income ~ 0.6bn Capital expenditures of ~ 1.4bn Net industrial debt between 1.8 and 2.0bn Dividend policy for 2011, a transition year, is expected to remain unchanged, with expected payout range of 25% of consolidated income with a minimum payout of 100mn The Board of Director will articulate a dividend policy for later years within 2011 Q4 & FY 10 Results Review January 27,

29 Appendix January 27, 2011 Q4 & FY 10 Results Review 29

30 Group net debt breakdown ( bn) Sept. 30, 10 Dec. 31, 10 Cons. Ind. Fin. Cons. Ind. Fin Gross Debt* (0.1) (0.1) - Derivatives M-to-M, Net (0.2) (0.2) - (12.9) (11.4) (1.5) Cash & Mktable Securities (15.9) (14.4) (1.5) Net Debt * Net of intersegment receivables January 27, 2011 Q4 & FY 10 Results Review 30

31 Net debt breakdown ( bn) Dec. 31, 10 Dec. 31, 10 Cons. Ind. Fin. Cons. Ind. Fin Gross Debt* (0.3) (0.3) - Derivatives M-to-M, Net (12.2) (11.9) (0.3) Cash & Mktable Securities (3.7) (2.5) (1.2) Net Debt * Net of intersegment receivables and including: (2.8) (2.8) - Net Intercompany debt / (receivables) between Fiat and Fiat Industrial January 27, 2011 Q4 & FY 10 Results Review 31

32 Fiat post-demerger & Fiat Industrial FY 10 Cash Flow ( mn) Fiat post Fiat Fiat Group demerger Industrial pre-demerger Net Industrial (Debt)/Cash beginning of period (3,103) (1,315) (4,418) De-merger debt allocation 2,521 (2,521) 0 Adj. Net Industrial (Debt)/Cash beginning of period (582) (3,836) (4,418) Net Income D&A (excl. Vehicle Buybacks) 2, ,846 Change in Funds & Others Cash Flow from Op. Activities bef. Chg. in W.C. 2,607 1,391 3,998 Change in Working Capital ,886 Cash Flow from Operating Activities 3,500 2,384 5,884 Tangible & Intangible Capex (excl. Vehicle Buybacks) (2,859) (871) (3,712) Cash Flow from Operating Activities net of Capex 641 1,513 2,172 Change in Investments, Scope & Other (172) 114 (76) Net Industrial Cash Flow 469 1,627 2,096 Capital Increase/ Dividends (*) (545) 307 (238) FX Translation Effect Change in Net Industrial Debt 40 1,936 1,976 Net Industrial (Debt)/Cash end of period (542) (1,900) (2,442) (*) Includes dividends, capital increases and scope between Fiat post-demerger and Fiat Industrial Group not related to the demerger January 27, 2011 Q4 & FY 10 Results Review 32

33 Group gross debt ( bn) Outstanding Sept. 30, 10 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 27, 2011 Q4 & FY 10 Results Review 33

34 Fiat post-demerger Debt maturity schedule 1 ( bn) Outstanding Dec. 31, Beyond 5.0 Bank Debt Capital Market Other Debt Total Cash Maturities Cash & Mktable Securities - of which ABS related 3.5 Sale of Receivables (IFRS de-recognition compliant) 2.4 of which receivables sold to financial services JV (FGA Capital) 1 Including impact of repayment of 2.8bn intercompany receivables by Fiat Industrial and reimbursement of 1.7bn credit facilities in January Excluding Bond fair value, including interest accruals January 27, 2011 Q4 & FY 10 Results Review 34

35 Fiat Industrial Debt maturity schedule 1 ( bn) Outstanding Dec. 31, Beyond 5.1 Bank Debt Capital Market Other Debt Total Cash Maturities Cash & Mktable Securities 0.7 of which ABS related 2.0 Undrawn committed credit lines (maturity 2014) 1.1 Sale of Receivables (IFRS de-recognition compliant) 0.4 of which receivables sold to financial services JV (Iveco Finance Holding Ltd) 1 Including outstanding and cash maturities of credit lines made available to Fiat Industrial in January 2011 and utilized to repay intercompany debt to Fiat postdemerger ( 2.8bn) 2 Excluding Bond fair value, including interest accruals Q4 & FY 10 Results Review January 27,

36 Group financial charges breakdown FY 10 vs. 09 Average Outstanding ( bn) Rate/Spread (%) Net Charges ( mn) Chg Net Industrial Debt FY 10 (3.9) 5.3% (206) Net Industrial Debt FY 09 (5.6) 5.5% (308) +102 Cost of Carry FY 10 (11.8) 3.5% (413) Cost of Carry FY 09 (5.9) 3.5% (207) (206) Equity Swap (hedging stock option plans) (6) IAS 19 (interest cost on pension & OPEB) (160) (125) +35 Indirect taxes on banking transactions (South America) Others (fees, FX, interest cost on long-term provisions, discount of certain receivables...) (27) (24) +3 (168) (248) (80) NET FINANCIAL CHARGES (753) (905) (152) January 27, 2011 Q4 & FY 10 Results Review 36

37 FY 10 Revenues & trading profit ( mn) FY 10 Change 2010/2009 Cons. Industrial Financial Cons. Industrial Financial Revenues Fiat post-demerger 35,880 35, ,196 3, of which Automobiles 30,130 29, ,779 1, FGA 27,860 27, ,567 1, Ferrari 1,919 1, Maserati Components 10,865 10,865-2,076 2,076 - Others & Elim. (5,115) (5,095) - (659) (647) - Trading profit Fiat post-demerger 1,112 1, of which Automobiles FGA Ferrari Maserati Components Others & Elim. (71) (71) January 27, 2011 Q4 & FY 10 Results Review 37

38 FY 10 From trading profit to net result ( mn) FY Trading profit 1, Unusual items, net (120) (358) +238 Operating income Financial charges, net* (400) (352) -48 Investment income, net Pre-tax result Taxes (484) (448) -36 Net result 222 (345) +567 *Financial charges, net include: gain of 111mn on two stock-option related equity swaps (gain of 117mn in FY 09) January 27, 2011 Q4 & FY 10 Results Review 38

39 Fiat Group Automobiles Revenues & trading profit Revenues ( mn) Q4 7,247 (1.8)% 7,120 Unit Sales (x000) Q3 6, % 6,550 1,766 1,697 1,980 2,234 2,153 2,151 2,082 Q2 6, % 7,350 Q1 5, % 6,840 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 Q4 Q3 Q2 Q1 FY 09 FY Trading Profit ( mn) (26.8)% 190 (16.1)% 19.4% n.a (30) FY 09 FY 10 Revenues up 6% notwithstanding volumes decline due to favorable mix & FX impact (+0.5% at constant rate) Passenger cars down 8.2% to 1.691k LCVs up 27.1% to 390k Integration of sale and service activities in Europe of Chrysler, Jeep and Dodge branded products on track Overall sales reduction of 3.2% driven by Italy & Germany, partially offset by Latin America and recovery in many EU countries Italy down 13% to 626k, Germany down 40% to 108k, UK down 11% to 66k, France up 5% to 121k, Spain up 48% to 37k RoE up 10% driven by The Netherlands & Belgium Strong sales in Brazil, with Q4 exceeding 200k units for the 2 nd quarter in a row January 27, 2011 Q4 & FY 10 Results Review 39

40 Fiat Group Automobiles Trading profit variance & margin ( mn) Overall volumes down ~82k units (ex Chrysler Group product distribution) Robust increase in LCVs volumes (+27%) unable to offset volume decline in passenger 470 (20) (130) cars Improved mix in LA, LCVs, & Alfa Romeo 1.8% (85) (14) 2.2% Giulietta more than countered by unfavorable mix (CNG & LPG) in passenger cars Purchasing savings above expectations WCM efficiencies more than offset by under FY '09 Volume Price & Mix Purchasing Net Production Cost Absorp. R&D SG&A Other FY 10 absorption In Italian plants R&D spending in line with product schedule SG&A mainly driven by higher advertising spending to support new product launches (Giulietta, New Doblò & Novo Uno) January 27, 2011 Q4 & FY 10 Results Review 40

41 Fiat Group Automobiles Q4 10 market & market share (ex Ferrari & Maserati) Passenger Cars Q4 Unit % Light Commercial Vehicles Q4 Unit % Units Change Change Units Change Change EU27 Market 3, , % Registrations % Mkt Share % 6.8% 8.3% -1.5 Italy Market % Registrations % Mkt Share % 28.5% 31.5% -3.0 Germany Market % Registrations % Mkt Share % 2.5% 3.4% -0.9 France Market % Registrations % Mkt Share % 3.6% 4.0% -0.4 U.K. Market % Registrations % Mkt Share % 3.0% 4.2% -1.2 Spain Market % Registrations % Mkt Share % 2.7% 2.6% 0.1 Poland Market % Registrations % Mkt Share % 7.1% 9.1% -2.0 Brazil Market % Registrations % Mkt Share % 21.8% 24.6% -2.8 EU27 Market % Registrations % Mkt Share % 11.9% 12.3% -0.4 Italy Market % Registrations % Mkt Share % 42.4% 40.5% 1.9 Germany Market % Registrations % Mkt Share % 8.5% 9.0% -0.5 France Market % Registrations % Mkt Share % 7.4% 7.1% 0.3 U.K. Market % Registrations % Mkt Share % 3.3% 3.5% -0.2 Spain Market % Registrations % Mkt Share % 9.1% 8.7% 0.4 Poland Market % Registrations % Mkt Share % 26.2% 29.1% -2.9 Brazil Market % Registrations % Mkt Share % 23.4% 23.3% 0.1 January 27, 2011 Q4 & FY 10 Results Review 41

42 Fiat Group Automobiles FY 10 market & market share (ex Ferrari & Maserati) Passenger Cars FY Unit % Units Change Change Light Commercial Vehicles FY Unit % Units Change Change EU27 Market 13, , % Registrations 1, , % Mkt Share % 7.5% 8.6% -1.1 Italy Market 1, , % Registrations % Mkt Share % 30.1% 32.8% -2.7 Germany Market 2, , % Registrations % Mkt Share % 3.0% 4.7% -1.7 France Market 2, , % Registrations % Mkt Share % 4.0% 4.3% -0.3 U.K. Market 2, , % Registrations % Mkt Share % 3.0% 3.5% -0.5 Spain Market % Registrations % Mkt Share % 3.0% 2.5% 0.5 Poland Market % Registrations % Mkt Share % 8.1% 10.3% -2.2 Brazil Market 2, , % Registrations % Mkt Share % 22.7% 24.6% -1.9 EU27 Market 1, , % Registrations % Mkt Share % 12.8% 12.8% 0.0 Italy Market % Registrations % Mkt Share % 44.0% 41.1% 2.9 Germany Market % Registrations % Mkt Share % 10.6% 11.9% -1.3 France Market % Registrations % Mkt Share % 8.5% 8.8% -0.3 U.K. Market % Registrations % Mkt Share % 3.8% 3.7% 0.1 Spain Market % Registrations % Mkt Share % 8.7% 8.6% 0.1 Poland Market % Registrations % Mkt Share % 25.2% 25.6% -0.4 Brazil Market % Registrations % Mkt Share % 23.5% 24.1% -0.6 January 27, 2011 Q4 & FY 10 Results Review 42

43 Fiat Group Automobiles Worldwide unit sales by region, Cars+LCVs (unit/000)* (1.7)% (7.6)% (3.2)% 556 RoW 1, % 514 ** 1,568 ** 53.5% 2,151 2,082 ** 60.3% EU27 ex Italy (5.6)% (12.1)% (7.3)% Italy (9.3)% (25.2)% (13.3)% Brazil 0.8% 3.9% 1.6% * Incl. sales w/buyback, excl. JVs and Ferrari & Maserati ** Incl. Chrysler Group sales in Europe of 7k units in Q4 and 14k units in FY January 27, 2011 Q4 & FY 10 Results Review 43

44 Fiat Group Automobiles Worldwide unit sales by brand, Cars+LCVs (unit/000)* (1.7)% (7.6)% (3.2)% 556 Alfa 1, % 1,568 ** 28.7% 514 ** 2, % 2,082 ** (15.2)% Fiat (7.8)% (9.7)% Lancia (9.8)% (34.2)% (16.1)% LCV 30.9% 17.9% 27.1% * Incl. sales w/buyback, excl. JVs and Ferrari & Maserati ** Incl. Chrysler Group sales in Europe of 7k units in Q4 and 14k units in FY January 27, 2011 Q4 & FY 10 Results Review 44

45 Fiat Group Automobiles Production volumes, sales volume & registrations WW Passenger Cars & LCV ( 000 units) Production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Registrations & Sales Registrations Units sold Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 January 27, 2011 Q4 & FY 10 Results Review 45

46 Components Magneti Marelli, Teksid, Comau Revenues ( mn) 1, ,402 4,528 Magneti Marelli Revenues up 19.3% to 5.4bn reflecting strong performance for LCVs and recovery in the medium-large passenger car segments Strong performance in both China and Brazil and significant recovery in NAFTA region, driven by new product launches; Italy & Poland down as a consequence of overall decline for A- & B-segment cars due to elimination of government eco-incentives All business lines recorded an increase in production volumes Trading profit up 73mn to 98mn due to increased sales volumes, combined with cost containment actions and manufacturing efficiencies Teksid FY '09 FY 10 Trading Result ( mn) 25 (12) (28) (6) FY '09 FY 10 Revenues at 776mn up 34.3% principally due to increase in volumes, severely impacted by market crisis in 2009 Cast Iron sales up 21.8% driven primarily by growth in components for heavy vehicles, with positive performance in Mercosur and NAFTA regions, as well as in Europe Aluminum sales up 15.3% Trading profit at 17mn vs. trading loss of 12mn last year Comau Revenues up 40.5% to 1bn mainly attributable to operations in China, LA and NA Order intake of 1.2bn up 70% principally attributable to Powertrain Systems operations in NA and Service operations in LA Order backlog of 629mn, up 32% over last year Trading loss at 6mn, up 22mn vs. last year largely due to improved performance in Asian markets and Robotics business January 27, 2011 Q4 & FY 10 Results Review 46

47 Fiat Powertrain & FPT Industrial Trading profit variance & margin ( mn) (7) 2.7% 104 (20) (15) 3.3% (8.3)% 3.1% (131) FY '09 Volume/ Mix Price Production Cost SG&A R&D Other FY 10 FY '09 Volume/ Mix Price Production Cost SG&A R&D Other FY 10 Passenger & Commercial Vehicles Trading profit increase driven by LA volumes and cost efficiency Industrial & Marine Trading profit increase driven by significant volume recovery for all customers and cost efficiency January 27, 2011 Q4 & FY 10 Results Review 47

48 FY 10 Revenues & trading profit ( mn) FY 10 Change 2010/2009 Cons. Industrial Financial Cons. Industrial Financial Revenues Fiat Industrial 21,342 20,235 1,379 3,374 3, of which CNH 11,906 10,920 1,220 1,799 1, Iveco 8,307 8, ,124 1,123 8 Components 2,415 2, Others & Elim. (1,286) (1,275) - (384) (394) - CNH ($) 15,784 14,477 1,616 1,687 1, Trading result Fiat Industrial 1, (4) of which CNH Iveco (32) (6) Components Others & Elim (9) (9) - CNH ($) 1, (8) Q4 & FY 10 Results Review January 27,

49 FY 10 From trading profit to net result ( mn) FY Trading profit 1, Unusual items, net (75) (341) +266 Operating income 1,017 (19) 1,036 Financial charges, net* (505) (401) -104 Investment income, net 64 (50) +114 Pre-tax result 576 (470) +1,046 Taxes (198) (33) -165 Net result 378 (503) +881 Q4 & FY 10 Results Review January 27,

50 Agricultural and Construction Equipment Revenues & trading profit Revenues ( mn) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2,381 2,268 2,860 2,598 FY % 31.9% 16.0% (0.9)% 3,023 2,991 3,317 2,575 FY 10 Trading Profit ( mn) x +3.3x +2x +2.5x FY 09 FY 10 Revenues up 18% (+12% in US$) Positive market conditions in the Americas and RoW regions with decline softening quarter-over-quarter in Europe NA up 14% WE down 9% LA up 57% RoW up 15% AG revenues up 14% (+8% in US$): growth in demand in all regions but Europe where market continue to improve but remain still weak Global tractor and combine unit deliveries up 8% CE revenues up 46% (+39% in US$) on growing demand for new equipment and reduced destocking Wholesale deliveries up 50% Light equipment unit deliveries up 51% Heavy equipment unit deliveries up 47% Trading margin nearly doubled to 6.3% AG margin improved on better pricing and industrial efficiencies CE margin improved on higher volume, increased capacity utilization and as results of restructuring action taken during last 2 years Q4 & FY 10 Results Review January 27,

51 Agricultural and Construction Equipment Trading profit variance & margin ( mn) (80) (18) % % Trading profit 2.2x of last year level Higher volumes and better mix Positive net pricing Increased production efficiencies for both AG & CE products FY '09 Volume/Mix Pricing, Net Production Cost SG&A R&D Other FY 10 Q4 & FY 10 Results Review January 27,

52 Trucks and Commercial Vehicles Revenues & trading profit Revenues ( mn) Q4 Q3 Q2 Q1 2,172 1,715 1,773 1,523 FY % 15.3% 18.3% 11.2% 2,538 1,978 2,097 1,694 FY 10 Revenues up 15.6% to 8.3bn Overall volumes up 25% to 130k units By geography WE up 17.3% to 78.3k units: Italy stable, Germany +31.9%, France +22.3%, Spain +40.8% & UK +36.9% EE up 41.6 % LA up 52.4% Trading Profit ( mn) By segment Light up 25.3% Q4 1.8x Medium up 51.3% Heavy up 27.6% Q3 Q2 Q (12) 3.6x 2.8x n.a Improved profitability driven by continued recovery of quarterly sales volume in the year Trading margin at 3.3% (+1.8 p.p.) FY 09 FY 10 Q4 & FY 10 Results Review January 27,

53 Trucks and Commercial Vehicles Trading profit variance & margin ( mn) 177 (7) (38) (29) 270 Volumes up 26k units on continued sales recovery of Trucks & Commercial Vehicles % FY '09 Volume /Mix Price Purchasing Prod. Cost 3.3% R&D SG&A Other FY 10 Focus on cost reduction actions through enhancement of WCM program and savings from component standardization Q4 & FY 10 Results Review January 27,

54 Trucks and Commercial Vehicles Market share by region Light (3.5-6T) Medium Heavy WE market share FY % % 8.4% Change vs. FY p.p p.p p.p. EE market share FY % 29.1% 8.2% Change vs. FY p.p p.p p.p. Brazil market share FY 10 Light ( T) Medium (8.0-31T) Heavy (>31T) 18.1% 2 4.0% % 2 Change vs. FY p.p. 1.1p.p. 0.0p.p. WE market share 3.5T at 13.2% (8.5% 2.8T), down 0.4 p.p. reflecting unfavorable market mix and aggressive competition in Heavy segment Brazil market share 3.5T at 9.0% or +0.6 p.p. on strong performance in Medium segment and share recovery in Heavy in Q4 driven by new products (Stralis NR and Cursor) T at 7,4% (-0.4p.p. vs. last year) 2 Brazil: Light 3.5-6T at 24.8% (-2.2p.p.); Medium T at 2.7% (0.2p.p.); Heavy 16T at 8.8% (0.9 p.p.) Q4 & FY 10 Results Review January 27,

55 Safe Harbor Statement Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company's businesses include its automotive, automotive-related and other sectors, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Group's businesses involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive-related products; factors affecting the agricultural business including commodities prices, weather, and governmental farm programs; general economic conditions in each of the Group's markets; legislation, particularly that relating to automotiverelated issues, agriculture, the environment, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Group competes; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties. Any forward-looking statements contained in this document are referred to the current date and, therefore, any of the assumptions underlying this document or any of the circumstances or data mentioned in this document may change. Fiat S.p.A. expressly disclaims and does not assume any liability in connection with any inaccuracies in any of these forward-looking statements or in connection with any use by any third party of such forward-looking statements. This document does not represent investment advice or a recommendation for the purchase or sale of financial products and/or of any kind of financial services. Finally, this document does not represent an investment solicitation in Italy, pursuant to Section 1, letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state. January 27, 2011 Q4 & FY 10 Results Review 55

56 Contacts Fiat Spa Investor Relations Fiat Industrial Investor Relations Marco Auriemma Manfred Markevitch website: website: January 27, 2011 Q4 & FY 10 Results Review 56