I NVESTO R PRESENTATION 2017 FY
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FCA Bank: a JV between FCA and Crédit Agricole FCA Bank is one of the largest specialized auto finance and lease companies operating in Europe, diversified across products, geographies and brands 50 / 50 Joint Venture between Fiat Chrysler Automobiles and Crédit Agricole Long-Term Partnership signed in December 2006 and extended until December 2022, at least A unique business model, focusing on the automotive industry and combining the commercial effectiveness of an industrial partner, with the risk discipline and financial strength of a universal banking group FCA Bank is regulated as a bank by the Bank of Italy under the Italian Banking Act Board Composition: 10 members, 2 independent, 4 appointed by each shareholder 3
About FCA Bank Business deployed in 3 Business lines, 12 Brands, 18 Countries Significant brand diversification, compared to the other Automotive Captive European peers, offering services and open market solutions to: FCA Brands Maserati Ferrari Jaguar and Land Rover Erwin Hymer Group (leisure vehicles) FCA BANK RATINGS Baa1 Long-term (Stable Outlook) / P-2 Short-term / A3 Deposits Long-term (Negative Outlook) BBB Long-term (Stable Outlook) / A-2 Short-term BBB+ Long-term (Stable Outlook) / F2 Short-term 4
FCA Bank Group Business Overview Multi-Brand and Multi-Business Total Outstanding 2017 (EoP): 23.9 /Bn 3 Business lines 12 Brands 26 Legal entities and 8 branches More than 2,000 Employees 18 Countries Dealer Financing OEM Dealer Networks Outstanding 2017 (EoP): 7.3 /Bn 31% of outstanding assets Retail Financing Private customers Channel: Dealership Outstanding 2017 (EoP): 14.4 /Bn 60% of outstanding assets Long Term Rental Corporate customers Channel: Dealership/Direct Outstanding 2017 (EoP): 2.2 /Bn 9% of outstanding assets 5
FCA Bank Group 2017 Highlights Outstanding commercial performance continuing in 2017, with a managed portfolio of 23.9 Bn compared to 20.7 Bn at the end of 2016, a further increase of over 3 Bn, or 15% y-o-y Net Banking Income increasing by 15% y-o-y Cost of risk improving to an unprecedented 20 bps in 2017 INTERNATIONALIZATION ROAD MAP Net Profit increasing by 22% y-o-y, at 383 M, best ever full year result Stronger liquidity position enhanced by further diversification on secured and unsecured capital markets, with decreasing cost of funding CET 1 set at 12% (Consolidated perimeter), on the back of a Total Equity equal to 2.37 Bn; Total Capital Ratio set at 13.7% 6
Outstanding by Business Line End of Period ( /Bn) 23.9 20.7 2.2 16.1 15.9 1.6 1.5 3.7 4.1 14.5 15.0 15.3 1.3 1.3 1.3 3.7 3.9 4.0 17.2 1.4 4.8 1.7 6.0 7.3 10.8 10.3 9.5 9.8 10.0 11.0 13.0 14.4 2010 2011 2012 2013 2014 2015 2016 2017 Retail Dealer Financing Long term Rental FCA Brands currently account for ~ 80% of FCA Bank total portfolio UK 9% France 8% Spain 6% Other 12% 2017 Germany 17% Italy 47% 7
Performance Indicators ( and %) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average Managed Outstanding 14.6 Bn 15.5 Bn 15.5 Bn 16.4 Bn 15.8 Bn 14.9 Bn 14.6 Bn 14.7 Bn 16.1 Bn 18.5 Bn 21.8 Bn Net Banking Income / Average Managed Outstanding 3.5% 3.5% 3.7% 3.7% 3.9% 4.1% 4.0% 3.8% 4.2% 4.0% 3.9% Net Profit 119 M 137 M 105 M 147 M 153 M 167 M 172 M 182 M 249 M 312 M 383 M CET 1 7.2% 8.2% 8.0% 8.8% 9.2% 10.6% 11.0% 11.7% 11.2%* 11.3%* 12,0%* *Basel III Banking Group (effective 2015) Note: i) Managed Portfolio figures are net of credit risk funds 8
2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% Key Financial Indicators Net Banking Income ( /M) & Percentage on Average Outstanding Cost / Income Ratio (%) 900 800 700 600 500 400 3.5% 3.5% 517 536 4.1% 3.7% 3.9% 4.0% 3.8% 3.7% 576 596 609 608 587 566 4.1% 4.0% 3.9% 732 841 667 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 46.5% 42.8% 40.6% 40.0% 38.8% 38.6% 39.4% 39.9% 35.3% 33.5% 31.4% 300 1.50% 200 1.00% 100 0.50% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Banking Income NBI / Average Outstanding 160 140 120 100 80 60 40 20 0 Cost of Risk ( /M) & Ratio (%) on Average Outstanding 87 0.59% 117 0.76% 145 145 144 0.93% 0.89% 0.91% 116 109 0.78% 0.75% 83 0.57% 70 0.44% 55 0.30% 43 0.20% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Provisions ( /M) Cost of Risk (%) 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 600 500 400 300 200 100 0 Pre-Tax Income ( /M) & Percentage on Average Outstanding 2,2% 2.3% 2.4% 1,7% 1,7% 1,7% 521 1,3% 1,2% 1,2% 1,3% 1,4% 417 359 257 190 189 213 229 248 257 184 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Pre-Tax Income Pre-Tax Income / Average Outstanding Sound performance highlighted by positive trend of all main financial indicators Cost of Risk performance continuing to improve 9
Capitalization Consolidated Perimeter Outstanding EOP ( /Bn) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14.9 15.2 16.1 16.1 15.9 14.5 15.0 15.3 17.2 20.7 23.9 JVA perimeter / Basel II Rules Basel III 13.7% Total Capital Ratio CET 1 8.2% 8.0% 7.2% 8.2% 8.0% 7.2% 119 137 105 11.7% 11.0% 10.6% 8.8% 9.2% 11.7% 11.0% 10.6% 8.8% 9.2% 147 153 167 172 182 11.2% 11.3% 11.2% 11.3% 312 249 383 12.0% Net Profit ( /M) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FCA Bank subsidiaries not needing additional capital FCA Bank regulated legal entities above Minimum Capital Requirement "MCR Total Capital Ratio improving by mean of the inclusion of Tier 2 Subordinated Loans 10
Credit Quality December 31 st, 2016 December 31 st, 2017 ( / M) Gross Exposure Allowance for loan and lease losses Net Exposure Gross Exposure Allowance for loan and lease losses Net Exposure Non-performing loans 298.1 (143.0) 155.1 307.8 (138.5) 169.3 Performing loans 18,540.6 (139.7) 18,400.8 21,213.1 (128.6) 21,084.5 Total 18,838.7 (282.8) 18.555.9 21,520.9 (267.1) 21,253.8 December 31 st, 2016 December 31 st, 2017 Gross Exposure weight Net Exposure weight Coverage ratio Gross Exposure weight Net Exposure weight Coverage ratio Non-performing loans 1.58% 0.84% 47.98% 1.43% 0.80% 45.00% Performing loans 98.42% 99.16% 0.75% 98.57% 99.20% 0.61% Total 100.00% 100.00% 1.50% 100.00% 100.00% 1.24% 11
Residual Value Risk euro/mln December 31 st, 2016 December 31 st, 2017 Consumer loans and leases: - Residual Risk assumed by FCA Bank 926 924 of which UK market 879 803 Provision for residual value 48 Provision / Risk 5.19% Long-Term Rental: euro/mln December 31 st, 2016 December 31 st, 2017 - Residual Risk assumed by Leasys 638 894 Provision for residual value 38 Provision / Risk 4.25% 12
Funding Sources Evolution 23.1 19.5 Bonds 8.9 CA Group ( Bn) 14.9 0.5 5.2 14.3 14.9 14.7 14.5 0.5 0.5 6.4 8.4 8.0 7.1 13.9 13.0 1.5 2.3 5.2 5.1 13.7 3.1 4.1 16.0 5.1 2.7 7.5 2.8 0.2 2.7 0.5 4.8 Deposits Banks ECB Securitizations 4.8-4.3 3.9 3.5 3.2 3.1 3.0 - - - - - 3.5 3.0 3.5 3.8 3.3 3.8 4.1 2.4 2.7 - - 1.0 1.8 4.1 3.8 3.1 3.5 1.8 4.4 38% 2017 19% 21% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2% 12% 8% 13
CONTACTS FCA Bank SpA Riccardo Mesturino Treasurer riccardo.mesturino@fcagroup.com Giovanni Gili Debt Capital Markets & IR giovanni.gili@fcagroup.com Bloomberg Ticker: FCABNK Website www.fcabankgroup.com 14