Q Results Review. On the way to 2010: One down, fifteen to go. Sergio Marchionne Chief Executive

Transcription

1 Q Results Review On the way to 2010: One down, fifteen to go. Sergio Marchionne Chief Executive April 23, 2007

2 Q The key points Ninth consecutive y-o-y improvement in quarterly trading profit (IFRS) Group trading profit up 84% to 595mn; 4.4% trading margin vs. 2.6% in Q1 06, on 8.9% revenue growth to 13.7bn Automobiles: trading profit more than quadrupled to 222mn on higher volumes and better mix; trading margin at 3.3% vs. 0.8% in Q1 06 Iveco: trading profit up 80mn to 150mn on 20% revenue increase; margin nearly doubled to 6% CNH: trading profit up 50% in dollar terms and margin up to 7.0% from 5.2% Good performances at FPT and Magneti Marelli Net income of 376mn, up 225mn (+149%) Good industrial cash flow generation (~ 500mn) Net industrial debt below the 1.3bn mark Liquidity high, 7.6bn on hand 2007 targets confirmed Year-end net industrial debt now expected below 1bn 2

3 Net Revenues Up sharply across all main sectors ( mn) 12,556 * +8.9% 13,676 * Auto growth in line with FY volume targets 3, % 3,244 Components CNH up 10.6% in US dollar terms 2,071 2, % +1.5% 2,487 2,691 Iveco CNH Iveco best Q1 ever 6, % 6,824 Automobiles FPT and Magneti Marelli performing well, on both Group and third party business Q1 '06 Q1 '07 * After Eliminations & Others of 1,510mn in Q1 06 and 1,570mn in Q1 07 3

4 Trading Profit On track for FY targets FY 07 Target 4.5%/5.1% 84% trading profit rise ( mn) 4.4% chiefly on volume/mix and prices 2.6% (34) Components Iveco Automobiles: trading profit >4x 2006 despite launch costs and R&D CNH profitability boosted by enhanced CNH mix and better pricing in both Ag and Q1 ' (15) 49 Automobiles CNH Iveco Components Elim. & Oth. Q1 ' Automobiles (49) Other & Elim. Construction Iveco trading profit on strong demand for heavy and light 4

5 Fiat Group Automobiles Highest quarterly volume since 2001 Net Revenues ( mn) & Volumes (000 units) , ,302 Revenues up 10.2% on 11.6% unit growth to 541k 447k passenger cars, up 8.6% 94k commercial vehicles, up 28.5% WE passenger car market share at 8.5% from 8.0% Q1 '06 Q1 '07 Trading Profit ( mn) & Margin % 57 FY 07 Target 2.1%/2.9% Brazil continuing strength Units sales up 25%, outperforming market (+17%) Outstanding profitability Ex-Brazil operations trading profit positive 1.0% Q1 06 Q1 07 5

6 Fiat Group Automobiles All in the green, apart from investments in future Q1 07 Trading Profit variance ( mn) 41 Volume driven by 56k unit growth The idiot proof was correct (45) (29) Price/Mix driven by Bravo and LCVs (new Scudo & Ducato) Stringent purchasing processes deliver savings in 57 line with 07 target R&D, Advertising and Network Development Q1 '06 Volume Price/Mix Purchasing Net Prod. Cost & Absorb. R&D Advert. - Net Develop. SG&A Others Q1 07 increases supporting intensive product program & commercial strategy 6

7 Fiat Group Automobiles Steadily gaining market share Italy & Western Europe (%; passenger cars) Western Europe Registrations up 6% (+19k units) vs. market down 1% Share gains across all major markets Solidly established among top 5 automakers Light Commercial Vehicles Market share up at 10.6% in WE; record orders in March (30k) Brazil: 18k registrations; 28.7% market share (+3.1 p.p.) 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Brazil 101K units, up 19K units Gaining share in booming market Network enhancement plans proceeding apace 21 additional mandates in quarter, half from competitor networks New dealerships in Paris, Nantes, Dusseldorf, Bochum, Oxford, Nottingham & Rome New owned dealers in Lisbon & Versailles Began expansion of Alfa Romeo Brand Experience Turnaround plans beyond UK 7

8 Fiat Group Automobiles Keeping production aligned with market WW Cars & LCV: 000 units Production Registrations & Sales Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Registrations Units sold Q Company inventory flat, dealer inventory down 20k units Intensifying working capital discipline 8

9 Fiat Group Automobiles A model snapshot Grande Punto FY 07 target 360k; Q1 07: 94k orders, 88k units sold Successfully developed in 18 months from design freeze Panda FY 07 target 250k; Q1 07: 101k orders, 76k units sold European launches in major countries D D D D Italy Jan 31 France Mar 17 Spain Apr 19 Germany Apr 21 UK Jun target: 70K units; 08 target: 120K units 29K orders; 11K units sold in Q1 07 Alfa 159 FY 07 target 95k; Q1 07: 20k orders, 17k units sold New Ypsilon FY 07 target 80k; Q1 07: 23k orders, 21k units sold New Scudo FY 07 target 40k; Q1 07: 10k orders, 9k units sold 9

10 Fiat Group Automobiles 500 Wants You Iconic Italian design - The Fiat brand flavor-enhancer Launch brought forward to July 4, 50 th anniversary of original 500 introduction Sale target 58k in k on a full-year basis Shared development substantially lowered costs 10

11 Luxury Auto Brands - Growing mn Net Revenues Trading Profit Net Revenues Trading Profit Q1 06 Q1 07 (1) 11 (19) Q1 06 Q1 07 Q1 06 Q1 07 Q1 06 Q1 07 Trading profit up on higher volume & efficiency gains 1,596 units sold, up 26%, on success of 599GTB Fiorano and all F430 versions Trading profit close to breakeven due to volume increase and production efficiencies Units sales up 38% to 1,841 on success of new automatic version of the Quattroporte, launched in January 11

12 Agricultural and Construction Equipment Brands gaining ground Net Revenues ( mn) Revenues up despite currency impact, NA slowdown Ag: benefiting from extensive segment coverage 2,652 2,691 Strength in NA hp tractors key in Q1 growth Combines up in LA and RoW Construction: global footprint provides resilience Q1 '06 Q1 '07 EU - Really gaining traction LA & RoW - Right products thanks to int l sourcing Trading Profit ( mn) & Margin 189 Reversing market share erosion in all relevant market segments 137 Ag (Q1 07 vs. Q1 06) Construction (Q1 07 vs. Q1 06) 5.2% 7.0% FY 07 Target 8.9%/9.7% NA EU +ve +ve NA EU flat/-ve +ve LA flat LA -ve Q1 '06 Q1 '07 Brand unbundling successful in repositioning core product lines 12

13 Agricultural and Construction Equipment Volume/Mix and Pricing driving margin up Q1 07 Trading Profit variance Continued improvement ( mn) 14 in product value (5) (19) positioning Volume/mix Up in Ag, flat in R&D Construction SG&A (22) Pricing up both in Ag 137 and Construction Higher SG&A cost connected with brand- Q1 '06 Volume/mix Price Prod Cost Purchasing R&D/SG&A Other Q1 '07 enhancement initiatives 13

14 Agricultural and Construction Equipment Products to drive performance Case IH Axial-Flow 7010 Class 7 combine New Holland T6000-T7000 (mid-to-high hp tractor) Launched in Q1 07 Fills hole in Case IH product line in hp category, fastest growing segment of NA combine industry Focus on mid/large size farms, core of Case IH customer base New model in Axial-Flow product line family, keeping development & production costs down Launched in Q1 07 New product replacement for large hay & forage, livestock and specialty vegetable farmers core of NH line-up for NA and WE Improved quality and reliability vs. previous models, with new Tier 3 compliant engines Utilizes common components to keep costs down 14

15 Trucks and Commercial Vehicles Iveco s best Q1 ever Net Revenues ( mn) & Volumes (000 units) Q1 revenues up 20% and trading profit doubled on Volumes up to record Q1 level; 2,487 growth in all major WE markets 2,071 France +17.5% Germany +16.3% Q1 '06 Q1 '07 Spain +14% Italy +10.8% Trading Profit ( mn) & Margin 150 and in Central/Eastern Europe +59% Narrowing pricing gaps vs. competition, particularly in heavy % FY 07 Target 7.1%/7.9% International expansion strategy continuing: MoU signed with TATA 3.4% in February Q1 '06 Q1 '07 15

16 Trucks and Commercial Vehicles Trading Profit up Sharply Q1 07 Trading Profit variance ( mn) Volume impact from sharp increase in units sold in Light (+22%) 71 (1) (15) (10) and Heavy (+25%) Improved pricing more 150 than offsetting higher product costs (Euro4/5) 70 Higher R&D to support new lines technical savings and Q1 '06 Vol/Mix Price Prod Cost Buyback / used R&D SG&A Other Q1 '07 quality improvement 16

17 Trucks and Commercial Vehicles Product highlights New Stralis Official launch in Rome last March Nearly 6k orders taken with a target of 25-30k units on a full-year basis Brand repositioning, leveraging on product performances and quality focus All-Blacks sponsorship New Daily Since successful mid-2006 launch, more than 100k orders collected 26k units sold in Q1 Full year sales target: 100k units 4x4 version to be launched in May 17

18 Components Fiat Powertrain Technologies Net Revenues ( mn) 1,578 1,708 Other 5mn Passenger cars & Commercial Vehicles Revenues up 8.2% Strong growth in revenues from I&M (+11%) driven by Cursor Industrial & Marine (Stralis), F1A (Sevel) & F1C (New Daily) Q1 '06 Q1 '07 Fire 16V gasoline engine and Q1 07 Trading Profit variance related transmission main 30 growth driver in passenger 7 (4) (2) (3) vehicles Trading Profit up on higher 34 (19) volume and significant cost efficiencies despite higher R&D Q1 '06 Vol.Mix Price Production Costs SG&A R&D Others Scope Q1 '07 expenses 18

19 Components Teksid, Comau, Marelli Net Revenues ( mn) Teksid Comau Marelli ,196 1,228 Revenues down 10% on a like-forlike basis due to lower demand in North America Trading profit up sharply on cost efficiencies Teksid Q1 '06 Q1 '07 Trading Profit ( mn) & Margin Sharp slowdown in body-welding & powertrain revenues Trading loss of 26mn, vs. 6mn loss last year Benefits from restructuring process fully visible in 2008 Marelli Comau (6) (26) Q1 06 Q1 07 Comparable revenues up 7.4% on success of Fiat Group Automobiles and growth of non-captive business Trading margin at 3.7%, +0.2 p.p., driven by higher volume and efficiencies 19

20 Q1 07 Net Income up 149% ( mn) From trading profit to net result Q1 '07 '06 Trading profit Unusual items, net - - = Operating income Financial charges, net (57) (135) +78 Investment income, net Pre-tax result Taxes (198) (81) -117 Net result Includes gain of 91mn on two stock-option related equity swaps ( 33mn in Q1 2006) 20

21 Q1 07 Financial charges breakdown Average Outstanding ( bn) Rate / Spread % Net Charges ( mn) Recurring Net Industrial Debt (1) (1.8) 6% (27) Cost of carry (spread on avg. cash) (6.0) 2% (30) Equity swap (hedging stock option plans) 91 IAS 19 (interest cost on employee benefits) (43) Indirect taxes on banking transactions (S. America) (13) Others (35) (fees, FX, rev. of long-term provisions, discount of rec., etc.) * * NET FINANCIAL CHARGES (57) (1) Average, excluding 0.3bn net derivative mk-to-mkt * Key focus of management attention 21

22 Q1 07 Cash Flow Strong Net Industrial Cash Flow ( mn) Q1 '07 Net Industrial Debt beginning of period (1,773) Net Income 376 D&A (excl. Buy backs) 653 Change in Funds & Others (283) Cash Flow from Op. Activities bef. Chg. in W.C. 746 Change in Working Capital (13) Cash Flow from Operating Activities 733 Tangible & Intangible Capex (excl. Buy backs) (538) Cash Flow from Operating Activities net of Capex 195 Changes in Receivables from Financing 78 Change in Investments, Scope & Other 227 Net Industrial Cash Flow 500 Positive cash flow driven by results Stable working capital despite seasonality Positive contribution from non-core asset disposals and derivative mark-to-market Capital Increase/Dividends (11) FX Translation Effect 7 Change in Net Industrial Debt 496 Net Industrial Debt end of period (1,277) 22

23 Looking ahead 2007 targets confirmed Group trading profit between 2.5 and 2.7bn (4.5% to 5.1% trading margin) Net income between 1.6 and 1.8bn EPS between 1.25 and 1.40 Guidance confirmed at upper end of range Net industrial debt target updated < 1bn at 07 year end 1.4bn share buy-back approved Strategy of targeted alliances to be actively pursued All targets from Lingotto plan confirmed 23

24 Appendix 24

25 Q1 07 Revenues & Trading Profit ( mn) Q1 '07 Change 2007/2006 Cons. Industrial Financial Cons. Industrial Financial Revenues Fiat Group 13,676 13, ,120 +1,227 (205) of which Automobiles 6,824 6, (205) Fiat Auto 6,302 6, (206) Ferrari Maserati CNH 2,691 2, Iveco 2,487 2, Components 3,244 3, Others & Elim. (1,570) (1,561) (60) (39) (19) CNH ($) 3,526 3, Trading profit Fiat Group of which Automobiles (1) Fiat Auto Ferrari (1) (1) Maserati (1) (1) CNH Iveco Components Others & Elim. (49) (49) (34) (29) (5) CNH ($)

26 Fiat Group Automobiles Q1 07 Market & Market Share (Ex. Ferrari & Maserati) Passenger Cars Unit % Units 000 Q1 Change Change WE Market 3.954, ,1-42,4-1,1% Registrations 337,2 318,3 18,9 5,9% Acea Mkt Share 8,5% 8,0% 0,6 Italy Market 733,2 704,1 29,1 4,1% Registrations 233,3 215,8 17,5 8,1% Mkt Share % 31,8% 30,7% 1,2 Germany Market 695,9 774,9-79,0-10,2% Registrations 17,3 19,4-2,1-10,8% Mkt Share % 2,5% 2,5% 0,0 France Market 516,6 524,4-7,9-1,5% Registrations 17,9 17,4 0,4 2,5% Mkt Share % 3,5% 3,3% 0,1 U.K. Market 687,9 670,5 17,4 2,6% Registrations 17,4 16,1 1,3 8,0% Mkt Share % 2,5% 2,4% 0,1 Spain Market 411,1 413,4-2,3-0,6% Registrations 15,4 14,3 1,0 7,2% Mkt Share % 3,7% 3,5% 0,3 Poland Market 69,7 58,1 11,6 19,9% Registrations 7,6 6,0 1,6 26,7% Mkt Share % 10,9% 10,3% 0,6 Brazil Market 406,1 346,0 60,1 17,4% Registrations 100,9 82,3 18,6 22,6% Mkt Share % 24,8% 23,8% 1,1 Light Commercial Vehicles Unit % Units 000 Q1 Change Change WE Market 548,6 527,9 20,6 3,9% Registrations 58,3 52,8 5,5 10,4% Mkt Share 10,6% 10,0% 0,6 Italy Market 58,1 55,5 2,6 4,7% Registrations 24,4 23,3 1,1 4,7% Mkt Share % 42,0% 42,0% 0,0 Germany Market 71,8 68,6 3,3 4,7% Registrations 8,5 7,1 1,4 20,3% Mkt Share % 11,8% 10,3% 1,5 France Market 120,7 118,6 2,1 1,8% Registrations 6,9 6,0 1,0 16,0% Mkt Share % 5,7% 5,0% 0,7 U.K. Market 87,9 86,1 1,7 2,0% Registrations 3,6 3,6 0,1 1,6% Mkt Share % 4,1% 4,1% 0,0 Spain Market 69,4 68,9 0,5 0,7% Registrations 5,7 5,3 0,4 7,3% Mkt Share % 8,3% 7,7% 0,5 Poland Market 10,3 8,3 2,0 24,2% Registrations 2,3 2,0 0,3 12,5% Mkt Share % 22,2% 24,5% -2,3 Brazil Market 63,4 50,2 13,2 26,3% Registrations 18,2 12,8 5,3 41,4% Mkt Share % 28,7% 25,6% 3,1 26

27 Fiat Group Automobiles Q1 07 Worldwide Unit Sales by Region, Cars+LCVs (unit/000)* +11.3% +16.7% +11.6% RoW WE ex Italy % +17.6% , % +17.0% 1, , % +4.0% 541, Italy % % % 234 Brazil % % % Q4 '05 Q4 '06 FY '05 FY '06 Q1 '06 Q1 '07 * Incl. sales w/buyback, excl. Ferrari & Maserati 27

28 Fiat Group Automobiles Q1 07 Worldwide Unit Sales by Brand, Cars+LCVs (unit/000)* +11.3% +16.7% +11.6% 1, , % , % 541,2 40 Alfa % 40 Fiat % 356 1, % 1, % 373 Lancia LCV % % % % % % Q4 '05 Q4 '06 FY '05 FY '06 Q1 '06 Q1 '07 * Incl. sales w/buyback, excl. Ferrari & Maserati 28

29 Net Debt Breakdown ( bn) Dec 31, '06 Mar. 31, '07 Cons. Ind. Fin. Cons. Ind. Fin Gross Debt* (0.3) (0.3) 0.0 Derivatives M-to-M, Net (0.4) (0.4) 0.0 (8.0) (6.8) (1.2) Cash & Mktable Securities (7.6) (6.1) (1.5) Net Debt * Net of intersegment receivables 29

30 Gross Debt ( bn) Outstanding Outstanding Dec 31, '06 Mar 31, ' Cash Maturities Bank Debt Capital Market* Other Debt Securitization and Sale of Receivables (on book) ABS Warehouse Facilities Sale of Receivables Adjust. for Hedge Accounting on Fin. Payables** Gross Debt Cash e Mkt Securities Derivatives Fair Value Net Debt Available Committed Lines 2.0 * Exc luding Bond fair value, inc luding interest ac c ruals ** Including current fin. rec. vs jointly controlled companies 30

31 Debt Maturity Schedule ( bn) Outstanding Mar 31, '07 next 12 M 9M Beyond 3.1 Bank Debt Capital Market * Other Debt Total Cash Maturities Cash & Marketable Securities 0.9 of which ABS related 2.0 Available Committed Lines 6.1 Sale of Receivables (IFRS derecognition compliant) 4.3 of which receivables sold to financial services JVs (FAFS, Iveco Finance) * Excluding Bond fair value, including interest accruals 31

32 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 automotive-related 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. 32

33 Contacts Fiat Investor Relations team Marcello Ledda phone: Vice President Marco Auriemma phone: Vice President Barbara D Andrea phone: Vincenzo Torrisi phone: Federico Donati phone: Zaira Laganà phone: fax: investor.relations@fiatgroup.com website: 33