Fiat Chrysler Automobiles NV : FCA Board of Directors' Meeting: 2015 full year and fourth quarter results

FCA

PRESS RELEASE

FCA closed 2015 with a strong performance well in excess of full-year guidance. Including Ferrari, Net revenues were €113.2 billion, up 18%, Adjusted EBIT was €5.3 billion, up 40% and Adjusted net profit was €2.0 billion, up 91%. The spin- off of Ferrari allowed the Group to begin 2016 operations with Net industrial debt of €5.0 billion.

• Worldwide shipments were 4.6 million units, in line with 2014. Jeep's strong global performance continued with record worldwide shipments of 1.3 million up 21%.
• Adjusted EBIT1 was €5.3 billion, up 40% from €3.8 billion in 2014, with NAFTA more than doubling and EMEA returning to profitability one year ahead of plan. All segments were profitable in Q4 2015.
• Adjusted net profit2 was €2.0 billion, up 91% compared to €1.1 billion in 2014. Net profit in 2015 was €377 million, which includes Q3 charges for the change in estimate to reflect current regulatory and recall environment, as well as Q4 charges for planned realignment of NAFTA capacity to reflect market trends.
• Net industrial debt was €6.0 billion at December 31, 2015 and liquidity remained strong at €25.2 billion. After giving effect to the January 3, 2016 Ferrari spin-off, Net industrial debt stood at €5.0 billion and liquidity reduced marginally to €24.6 billion.

  Group results in the following table include Ferrari to promote comparability with prior periods and with previously provided guidance:

  FIAT CHRYSLER AUTOMOBILES- Highlights including Ferrari

  Three months ended December 31, Year ended December 31,

  2015 2014 Change (€ million) 2015 2014 Change

  
  

  1,208	1,215 (7) Total shipments (000s)	4,610	4,608 2
  30,099	27,084 3,015 Net revenues	113,191	96,090 17,101
  1,639	1,175 464 Adjusted EBIT1	5,267	3,766 1,501
  6,012	7,845 (4) (1,833) Net industrial debt	6,012	7,654 (1,642)
  25,239	24,877 (4) 362 Total available liquidity	25,239	26,221 (982)

  
  

  Under IFRS, Ferrari will be presented as a discontinued operation in the financial statements for the year ended December 31, 2015 and for prior periods whereby Ferrari's results are excluded from the Group's results from continuing operations and are presented net of tax in a separate financial line item after Net profit - continuing operations; this presentation is reflected in the following table:

  
  

  FIAT CHRYSLER AUTOMOBILES- Highlights (amounts exclude Ferrari un	less otherwise noted)
  Three months ended December 31, 2015 2014 Change (€ million)	2015	Year ended December 31, 2014 Change

  FIAT CHRYSLER AUTOMOBILES- Highlights (amounts exclude Ferrari unless otherwise noted)

  Three months ended December 31, Year ended December 31,

  2015 2014 Change (€ million) 2015 2014 Change

  
  

  29,414	26,420 2,994 Net revenues	110,595	93,640 16,955
  480	951 (471) EBIT	2,625	2,834 (209)
  1,530	1,060 470 Adjusted EBIT1	4,794	3,362 1,432
  196	336 (140) Net profit - continuing operations	93	359 (266)
  55	84 (29) Net profit from discontinued operations (Ferrari)	284	273 11
  251	420 (169) Net profit	377	632 (255)
  1,041	445 596 Adjusted net profit - continuing operations2	1,708	772 936
  1,121	529 592 Adjusted net profit - (including Ferrari)2	2,026	1,060 966
  0.160	0.329 (0.169) Basic earnings per share (EPS) (including Ferrari)(€)	0.221	0.465 (0.244)
  0.736	0.417 0.319 Adjusted basic EPS (including Ferrari) (€)3	1.313	0.815 0.498
  0.160	0.328 (0.168) Diluted EPS (€)	0.221	0.460 (0.239)
  5,049	- - Net industrial debt - continuing operations	5,049	- -
  24,557	- - Total available liquidity - continuing operations	24,557	- -

  
  

  1 Refer to page 11 for reconciliation of EBIT to Adjusted EBIT; 2 Refer to page 12 for reconciliation to Net profit; 3 Refer to page 12 for calculation of Adjusted basic EPS; 4 At September 30, 2015.

  
  

  PRESS RELEASE

  Net revenues1,2 for the year were €113.2 billion, an increase of €17.1 billion, or 18% (+6% at constant exchange rates, or CER) from €96.1 billion for the prior year. Higher Net revenues in NAFTA (+33%;

  +13% CER), EMEA (+13%; +11% CER) and Components (+13%; +11% CER), were partially offset by

  decreases in LATAM (-25%; -18% CER), APAC (-22%; -31% CER) and Maserati (-13%; -22% CER).

  Adjusted EBIT1,2 was €5,267 million, an increase of €1,501 million (+40%; +19% CER) from prior year. The increase in Adjusted EBIT was primarily attributable to increases in NAFTA (+€2,271 million), EMEA (+€254 million) and Components (+€110 million), partially offset by decreases in APAC (-€489 million), LATAM (-€376 million) and Maserati (-€170 million). Adjusted EBIT excludes a total of €2,203 million pre-tax impact of unusual items, of which €1,631 million relates to NAFTA, €219 million to LATAM,

  €205 million to APAC and €47 million to EMEA.

  Net financial expense1 totaled €2,377 million, €330 million higher than in 2014, primarily reflecting an increase in debt levels and interest rates in Brazil, the call premiums, net of the remaining unamortized debt premiums, of €168 million for the prepayment of the FCA US senior secured notes due in 2019 and 2021 and unfavorable foreign currency translation, partially offset by interest cost savings resulting from the refinancing transactions and reduction in overall gross debt in 2015. Tax expense1 totaled €310 million, compared to €544 million in 2014, mainly due to decreased profit before taxes. Net profit for the year was €377 million, compared to €632 million for 2014 and profit attributable to owners of the parent was €334 million compared to €568 million for 2014. Adjusted net profit for the year was €2,026 million, compared to €1,060 million for 2014. Net industrial debt1,2 at December 31, 2015 was €6.0 billion, a decrease from €7.7 billion at December 31, 2014. The improvement reflects positive cash flows from operating activities of €9.7 billion and €0.7 billion of positive foreign exchange translation effects primarily related to the devaluation of the Brazilian Real, which were partially offset by capital expenditures of €9.2 billion. The decrease also reflects €0.9 billion of net cash proceeds from the IPO of 10% of Ferrari and a €0.3 billion cash payment to the non-controlling interest. After giving effect to the January 3, 2016 Ferrari spin-off, Net industrial debt stood at €5.0 billion. Total available liquidity1 was €25.2 billion at December 31, 2015, down from €26.2 billion at December 31, 2014. The decrease reflects bond repayments during the year totaling €7.3 billion which included the prepayment of the FCA US secured senior notes due in 2019 and 2021 with an aggregate principal balance of €5.3 billion and the repayment at maturity of two bonds with an aggregate principal balance of €1.9 billion. This decrease was partially offset by the issuance of unsecured senior notes due in 2020 and 2023 with an aggregate principal balance of $3.0 billion (€2.8 billion); net increases of €1.5 billion attributable to changes in bank borrowings, other debt and credit facilities; cash generated from operations net of investing activities of €0.7 billion; transactions related to the IPO of 10% of Ferrari of €0.6 billion and a favorable foreign exchange translation impact of €0.7 billion. Total available liquidity includes the new syndicated revolving credit facility of €2.5 billion entered into in June, which will expand to €5.0 billion following the termination of the ring-fencing of FCA US expected in Q1 2016. After giving effect to the January 3, 2016 Ferrari spin-off, total available liquidity reduced marginally to €24.6 billion.

  
  

  1 These results include Ferrari to promote comparability with prior periods and previously provided guidance. However, as a result of the approval of the Ferrari spin-off at the Extraordinary General Meeting of Shareholders on December 3, 2015, Ferrari will be treated as a discontinued operation for the year ended December 31, 2015 financial statements and for all prior periods in accordance with IFRS. In addition, Ferrari assets and liabilities will be classified as held for distribution at December 31, 2015;

  2 Refer to page 10 for reconciliation of these results to results reflecting Ferrari's classification as a discontinued operation.

  
  

  PRESS RELEASE

  2016 Guidance

  As a result of the completion of the spin-off of Ferrari on January 3, 2016, the Group's results for 2016 will no longer include the results or financial position of Ferrari. The Group indicates the following guidance:

  
  

  FIAT CHRYSLER AUTOMOBILES- 2016 Guidance

  
  

  2016 Guidance 2015 Actual excluding Ferrari

  Net revenues	>€110 billion	€111 billion
  Adjusted EBIT	>€5.0 billion	€4.8 billion
  Adjusted net profit	>€1.9 billion	€1.7 billion
  Net industrial debt	€5.0 billion	€5.0 billion

  
  

• NAFTA and EMEA continue trend of improved performance

• LATAM returns to modest profitability with Pernambuco reaching full model production in second half of 2016

• APAC profitability improving in second half of 2016 as Jeep manufacturing localization in China completed

• Maserati performance improving in second half of 2016 following Levante launch

• Capital expenditures in line with 2015

Net debt and available liquidity

FIAT CHRYSLER AUTOMOBILES-including Ferrari, unless otherwise noted Net debt and available liquidity

December 31, 20151 September 30, 2015 December 31, 2014

(€ million)
Cash maturities (principal)	(29,716)	(30,617)	(32,892)
Bank debt	(14,507)	(12,434)	(13,120)
Capital market instruments2	(13,646)	(16,530)	(17,729)
Other debt3	(1,563)	(1,653)	(2,043)
Asset-backed financing4	(206)	(179)	(469)
Accruals and other adjustments5	(104)	(347)	(305)
Gross debt	(30,026)	(31,143)	(33,666)
Cash & marketable securities	21,326	20,408	23,050
Derivative assets/(liabilities)	117	473	(233)
Net debt	(8,583)	(10,262)	(10,849)
Industrial activities	(6,012)	(7,845)	(7,654)
Financial services activities	(2,571)	(2,417)	(3,195)

Undrawn committed credit lines	3,913	4,469 3,171
Total available liquidity	25,239	24,877 26,221

1 Includes Ferrari to promote comparability with prior quarters and with previously provided guidance. However, under IFRS, Ferrari assets and liabilities will be classified as held for distribution at December 31, 2015; refer to page 10 for reconciliation of Net industrial debt as reported above to Net industrial debt excluding Ferrari.

2 Includes bonds and other securities issued in the financial markets.

3 Includes HCT Notes, arrangements accounted for as a lease under IFRIC 4 - Determining whether an arrangement contains a lease, and other non-bank financing.

4 Advances on sale of receivables and securitizations on book.

5 At December 31 2015, includes: adjustments for hedge accounting on financial payables for €(43) million (€(50) million at September 30, 2015; €(67) million at December 31, 2014), current financial receivables from jointly-controlled financial services companies of €16 million (€32 million at September 30, 2015; €58 million at December 31, 2014) and accrued net financial charges of €(77) million (€(329) million at September 30, 2015; €(296) million at December 31, 2014).

PRESS RELEASE

Results by Segment

Year ended December 31, 2015 and 2014

FIAT CHRYSLER AUTOMOBILES

Net revenues and Adjusted EBIT by segment - Year ended December 31,

Net revenues Adjusted EBIT 2015 2014 Change (€ million) 2015 2014 Change

69,992	52,452	17,540	NAFTA	4,450	2,179	2,271
6,431	8,629	(2,198)	LATAM	(87)	289 (376)
4,885	6,259	(1,374)	APAC	52	541 (489)
20,350	18,020	2,330	EMEA	213	(41)	254
2,411	2,767	(356)	Maserati	105	275 (170)
9,770	8,619	1,151	Components (Magneti Marelli, Comau, Teksid)	395	285	110
844	831	13	Other	(150)	(116) (34)
(4,088)	(3,937)	(151)	Unallocated items and adjustments	(184)	(50) (134)
110,595	93,640	16,955	Total - excluding Ferrari	4,794	3,362	1,432
2,596	2,450	146	Ferrari, net of inter-company eliminations	473	404	69
113,191	96,090	17,101	Total - including Ferrari	5,267	3,766	1,501

18,925	15,328 3,597 NAFTA	1,336	650 686
1,514	2,314 (800) LATAM	29	120 (91)
1,008	1,662 (654) APAC	23	127 (104)
5,585	4,989 596 EMEA	111	90 21
762	728 34 Maserati	14	65 (51)
2,438	2,379 59 Components (Magneti Marelli, Comau, Teksid)	133	113 20
223	229 (6) Other	(41)	(67) 26
(1,041)	(1,209) 168 Unallocated items and adjustments	(75)	(38) (37)
29,414	26,420 2,994 Total - excluding Ferrari	1,530	1,060 470
685	664 21 Ferrari, net of inter-company eliminations	109	115 (6)
30,099	27,084 3,015 Total - including Ferrari	1,639	1,175 464

Three months ended December 31, 2015 and 2014

FIAT CHRYSLER AUTOMOBILES

Net revenues and Adjusted EBIT by segment - Three months ended December 31,

Net revenues Adjusted EBIT 2015 2014 Change (€ million) 2015 2014 Change