January 27, 2011 Q4 & FY ‘10 Results Review 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 2
Dawn of a new day
January 27, 2011 Q4 & FY ‘10 Results Review 3
Fiat SpA & Fiat Industrial“D-Day”
January 27, 2011 Q4 & FY ‘10 Results Review 4
FY ‘10 highlightsAll key indicators ahead of previously upped guidance, all businesses contributing positively
Net profit (€/mn)
600
222
378
Net industrial debt(€/bn)
2.4
0.5
1.9
Liquidity(€/bn)12.2
3.7
15.9
A positive swing of €1.4bn over 2009
• 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
Revenues(chg vs. FY ’09) (€/bn)
Trading profit(chg vs. FY ’09) (€/bn)
Trading margin(chg vs. FY ’09)
• 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
• Automobiles €934mn(up €215mn y-o-y)
• CNH and Iveco more than double prior year’s results
Cash position of €15.9bn further strengthened (2009:€12.4bn) also thanks to strong cash flow from operations and continued access to capital markets
+12.3%
+9.8%+18.8%
+2x+51.1% +3.4x
56.3
35.9
21.3
+1.8 p.p.+0.8 p.p.
+3.3 p.p.
2.2
1.1 1.1
3.9%3.1%
5.1%
Fiat Group
Fiat Group
January 27, 2011 Q4 & FY ‘10 Results Review 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 10th 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 6
FY ‘10From trading to net result
“Unusual items, net”:
Mainly due to restructuring costs across all Sectors (€176mn) inclusive of related-asset 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)
'10 '09 ∆
Trading profit 2,204 1,058 +1,146
Unusual items, net (195) (699) +504
Operating income 2,009 359 +1,650
Financial charges, net (905) (753) -152Investment income, net 178 27 +151
Pre-tax result 1,282 (367) +1,649
Taxes (682) (481) -201
Net result 600 (848) +1,448
FY(€mn)
January 27, 2011 Q4 & FY ‘10 Results Review 7
Strong operating cash flow in the quarter enhanced by working capital contribution
Further stock reduction
Seasonal increase in trade payables
Continued Capex discipline
(€mn)
Q4 '10 FY '09 FY '10
(3,966) Net Industrial (Debt)/Cash beginning of period (5,949) (4,418)
318 Net Income (848) 600 734 D&A (excl. Vehicle Buybacks) 2,667 2,846
221 Change in Funds & Others 118 552
1,273 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 2,172
10 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
1,524 Change in Net Industrial Debt 1,531 1,976
(2,442) Net Industrial (Debt)/Cash end of period (4,418) (2,442)
Group cash flowQ4 & FY ‘10
January 27, 2011 Q4 & FY ‘10 Results Review 8
Synergies across businesses
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
FY ‘09 Average
Q4 ‘10 Average
FY ‘10 Average
Dec 08=100
Q4 ‘09 Average
Group PurchasingPerformance trend 2010 - Direct materials
World Class Manufacturing
0
200
400
600
800
1,000
1,200
2006 2007 2008 2009 2010
Savings achieved Cumulative savings achieved
~€1,100mn
€m
n
20 Novembre, 2010
FY revenue & trading profit by business
Fiat Group Automobiles
Luxury & Performance brands
Fiat Powertrain
Outlook
1
2
3
4
5
January 27, 2011 Q4 & FY ’10 Results Review 10
1
Revenues(€mn)
30,13035,880
(5,115)
6.3%9.8%
10,865
23.6%
Automobiles Components & Production
Systems
Eliminations& Others
FY‘10
Trading profit(€mn)
9341,112
29.9%
249
(71)
Fiat Group Automobiles
• 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 notablerecovery in LCV demand, significant contribution from Brazil, continued improvements from purchasing & WCM efficiencies
51.1%
+2.8x
Luxury & Performance brands
• 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)
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 medium-large 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
Automobiles Eliminations& Others
FY‘10
FGA 27,860 6.0%
Maserati 586 30.8%
Ferrari 1,919 7.9%
FGA 607 29.1%
Maserati 24 +2.2x
Ferrari 303 27.3%
Components & Production
Systems
* Fiat Powertrain includes activities of Passenger & Commercial Vehicles business line of former FPT Powertrain Technologies sector
FY ’10Fiat post-demerger – Revenues and trading profit by business
January 27, 2011 Q4 & FY ’10 Results Review 11
Fiat Group AutomobilesSales volumes & industry outlook
2
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%
Passenger cars
LCVs
Italy
EU* ex-Italy
RoW
LA
Pas
seng
er c
ars
Unit Sales (x000)
963
390
60
668
2,082
416
FY ‘10 FY ‘11E
547
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 eco-
incentive 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 2007-08 levels Double-digit demand growth in Germany, France & UK; more
modest increase in Italy & Spain (+6.2% and 9.5% respectively)
• 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 3.35-3.50mn units range; Fiat share expected at 2010 level
LCVs
* EU27+EFTA
January 27, 2011 Q4 & FY ’10 Results Review 12
January 2008 January 2011
Fiat Group AutomobilesPassenger car business dynamics in 2010
2
[Change vs. last year in percentage points]
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 0.2p.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
• 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.
• Residual value of FGA products narrowing distance vs. industry average also in UK & Germany
Source: Eurotax Blu
* Excludes OEMs with market share below 1%
(4.1)%
36 months
(1.5)%
Industry average* FGA
+0.3
-0.5 -0.5
+0.7
-0.5
-0.3
-1.7
-2.7
+0.3
+0.8
+1.2
+0.5
-2.2
+0.2
-1.6-0.1
-1.9
+1.7
+0.2
-0.2
-0.2
=
+0.6
+0.3
EU27+EFTA
January 27, 2011 Q4 & FY ’10 Results Review 13
Fiat Group AutomobilesThe Cinderella stories
2
• 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 9th 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
Brazil
• Laid foundation for new plant inPernambuco at December-end Investment of ~R$3bn, part of
~R$10bn commitment to be investedin Brazil in 2011-14 timeframe
Start-of-production expected in 2013, with initial yearly capacity of 200k locally developed vehicles for domestic market and export to LA countries
LCVs
Fiat Professional FY share of 12.8% in EU27+EFTA, unchanged vs. 2009 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
EU27+EFTA(market share; %)
FY ‘06 FY ‘07 FY ‘09FY ‘08 FY ‘10
10.9 11.7 12.3 12.8 12.8
January 27, 2011 Q4 & FY ’10 Results Review 14
Fiat Group AutomobilesProduction systems & labour union agreements
2
Capacity utilization
2009A 2010A
(Passenger car plants)
Rest of Europe 2
Italy 1
Harbour definition(235 days per annum/16 hours per day)
Technical definition(280 days per annum/3 shifts per day)
2010 key commitments (Italy)
• Labour Union agreements: securing the future through greatest operating flexibility at plants
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 H2 2011 (expected volumes up to 270k units/year)
Mirafiori: agreement for plant re-launch through establishment of Fiat & Chrysler JV
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
Ensuring more effective plant operations, with no infringement on worker rights
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
1 Italy: Cassino, Melfi, Mirafiori, Pomigliano d’Arco & Termini Imerese2 Tycky (Pol), Kragujevac (Ser), Bursa (Tur)
January 27, 2011 Q4 & FY ’10 Results Review 15
Luxury & Performance brands – FerrariAll-time record of units sold
3
• China now a top-5 international market for Ferrari
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
• 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 (%)
USA28%
European Top 537%
China7%
Japan7%
Others21%
January 27, 2011 Q4 & FY ’10 Results Review 16
Luxury & Performance brands – MaseratiExpanding international reach
3
• 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)
• 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.)
GranTurismo MC Stradale
presented at Paris Motorshow with commercial launch in 2011
Units sold by region (%)
USA36%
European Top 531%
China8%
Japan3%
Others23%
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
January 27, 2011 Q4 & FY ’10 Results Review 17
Fiat Powertrain4
• 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
Awarded with “Best of What’s New” in US by “Popular Science” magazine in Q4
2010
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
January 27, 2011 Q4 & FY ’10 Results Review 18
• 2011-14 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 H2 2011 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
As per Apr 21, 2010 Plan(€bn) 2011E 2012E 2013E 2014E
Revenues 37 45 57 64
Trading Profit 0.9-1.2 1.6-2.0 2.5-2.9 3.2-3.8
Industrial EBITDA 3.6 4.7 6.0 6.9
CAPEX 4.0-4.5 4.2 3.6 3.7
OutlookFiat post-demerger
5
January 27, 2011 Q4 & FY ’10 Results review 19
January February March April May June July August September October DecemberNovember
Apr i l 20Q1 Results
February 18
Consolidated and parent company
financial statements for 2010
2011 financial calendar
October 27Q3 Results
March 30Annual General Meeting
July 25Q2 & H1 Results
20 Novembre, 2010
3 Iveco
2 CNH
5 Outlook
4 FPT Industrial
1 FY revenue & trading profit by business
January 27, 2011Q4 & FY ’10 Results Review 21
21
Revenues(€mn)
11,906
21,342
(1,286)
17.8%
18.8%
8,307
15.6%
2,41552.8%
CNH IVECO Eliminations& Others
FY‘10
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
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
Iveco
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
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
Trading profit(€mn)
755
1,092
+2.2x
270+2.6x
CNH IVECO Eliminations& Others
FY‘10
65 2
+3.4x
n.a.
FPT Industrial
FPT Industrial
*FPT Industrial includes activities of Industrial & Marine business line of former FPT Powertrain Technologies sector
FY ‘10Fiat Industrial – Revenues and trading profit by business
January 27, 2011Q4 & FY ’10 Results Review 22
2
• 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 Q4 2010 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. 2010• Tractors demand flat to up 5%
• Combines demand up 5-10% with growth in every region
FY ‘10 FY ’11E
Industry(change vs.prior year)
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% +10-15%
Combines
Tractors
CNH Agricultural EquipmentSales volume & industry outlook
2
January 27, 2011Q4 & FY ’10 Results Review 23
FY ’10 FY ‘11E
Industry(change vs.prior year)
CNH(performance
relative to mkt)
Industry(change vs.prior year)
WW +35% +8-12%
NA +20% +25-30%
WE +23% +15-20%
LA +89% +0-5%
RoW +50% Flat
WW +59% +5-10%
NA +14% ~ +25%
WE +17% ~ +15%
LA +86% ~ +5%
RoW +71% ~ +5%
Light
Heavy
• 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%
2CNH Construction EquipmentSales volume & industry outlook
2
January 27, 2011Q4 & FY ’10 Results Review 24
• 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)
Other International region consolidated subsidiaries
RussiaKamaz - Tractors, Combines, CE
ChinaHarbin – TractorsShanghai - Tractors
UzbekistanTashkent - Tractors, Planters
Significant unconsolidated subsidiaries
TurkeyTTF – Tractors
JapanKCM - Excavators
HFT – Tractors
PakistanAl Ghazi – Tractors
IndiaL&T – Tractor Loader Backhoes, Compactors
2CNHAG&CE JVs operations update
2
• 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
January 27, 2011Q4 & FY ’10 Results Review 25
Iveco (Trucks)Sales volume & industry outlook
3
Industry (≥3.5T)(change vs. prior year)
FY ‘10 FY ‘11E
WE +6% +5-10%
EE +13% +5-10%
LA +32% Flat
Light Medium Heavy
• 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%
• 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
January 27, 2011Q4 & FY ’10 Results Review 26
China
FY 2006 FY 2007 FY 2009
20
10795
FY 2010
141
92
FY 2008
Unconsolidated sales [k/units]
Brazil
Iveco registrations [k/units]
• 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)
3.35.3
10.9 9.8
15.44.0%
5.2%
8.5% 8.4%9.0%
FY 2006 FY 2007 FY 2008 FY 2009 FY 2010
Iveco (Trucks)Focus on China & Latin America
3
• 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. 2009 driven by Latin America and
8 new markets in Africa, Middle East & Asia
• Investment income of €15mn in 2010, recognized under equity method
January 27, 2011Q4 & FY ’10 Results Review 27
• 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 3rd 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
FPT Industrial (Industrial & Marine)4
DOC
COHC
PMNOx
H2O
N2
CO2DPF SCR
Urea
DOC: Diesel Oxidation CatalystDPF: Diesel Particulate Filter
EGR: Exhaust Gas RecirculationSCR: Selective Catalytic Reduction
Proprietary SCR technology
• Euro 6 standards compliant without EGR, maximizing fuel economy
• Very high NOx conversion efficiency (>95% vs. 80-85% of best peers)
January 27, 2011Q4 & FY ’10 Results Review 28
• 2011-14 plan confirmed• 2011 targets Revenues of ~€22bn
Trading profit of €1.2-1.4bn
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
As per Apr 21, 2010 Plan(€bn) 2011E 2012E 2013E 2014E
Revenues 22 24 27 29
Trading Profit 1.2-1.4 1.9-2.1 2.5-2.8 3.2-3.4
Industrial EBITDA 1.9 2.6 3.3 4.1
CAPEX 1.4 1.4 1.4 1.3
OutlookFiat Industrial
5
January 27, 2011 Q4 & FY ‘10 Results Review 29
Appendix
January 27, 2011 Q4 & FY ‘10 Results Review 30
Group net debt breakdown(€bn)
Sept. 30, ‘10 Dec. 31, ‘10
Cons. Ind. Fin. Cons. Ind. Fin.
29.7 15.5 14.2 Gross Debt* 31.0 17.0 14.0
(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)
16.7 4.0 12.7 Net Debt 14.9 2.4 12.5
* Net of intersegment receivables
January 27, 2011 Q4 & FY ’10 Results Review 31
Net debt breakdown(€bn)
Dec. 31, ‘10 Dec. 31, ‘10
Cons. Ind. Fin. Cons. Ind. Fin.
15.2 12.7 2.5 Gross Debt* 15.8 4.3 11.5
(0.3) (0.3) - Derivatives M-to-M, Net 0.1 0.1 -
(12.2) (11.9) (0.3) Cash & Mktable Securities (3.7) (2.5) (1.2)
2.7 0.5 2.2 Net Debt 12.2 1.9 10.3
* Net of intersegment receivables and including:
(2.8) (2.8) -Net Intercompany debt /
(receivables) between Fiat and Fiat Industrial
2.8 1.8 1.0
January 27, 2011 Q4 & FY ’10 Results Review 32
Fiat post-demerger & Fiat IndustrialFY ‘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 222 378 600D&A (excl. Vehicle Buybacks) 2,184 662 2,846Change in Funds & Others 201 351 552Cash Flow from Op. Activities bef. Chg. in W.C.
2,607 1,391 3,998
Change in Working Capital 893 993 1,886
Cash Flow from Operating Activities 3,500 2,384 5,884Tangible & 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 116 2 118Change 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 33
Group gross debt(€bn)
OutstandingSept. 30, ‘10
OutstandingDec. 31, ‘10
21.9 Cash Maturities 22.0
8.9 Bank Debt 9.011.3 Capital Market* 11.31.7 Other Debt 1.7
7.6 Securitization and Sale of Receivables (on book) 8.9
5.2 ABS / Securitization 6.30.7 Warehouse Facilities 0.51.7 Sale of Receivables 2.1
0.2 Adjust. for Hedge Accounting on Fin. Payables 0.1
29.7 Gross Debt 31.0
12.9 Cash & Mktable Securities 15.9
0.1 Derivatives Fair Value 0.2
16.7 Net Debt 14.9
0.0 Available Committed Lines 0.0
*Excluding Bond fair value, including interest accruals
January 27, 2011 Q4 & FY ’10 Results Review 34
Fiat post-demerger – Debt maturity schedule1
(€bn)
OutstandingDec. 31, 2010 2011 2012 2013 2014 2015 Beyond
5.0 Bank Debt 1.7 1.7 1.0 0.3 0.2 0.1
9.1 Capital Market2 2.9 1.5 1.0 1.2 1.5 1.0
1.5 Other Debt 1.0 - 0.1 0.1 - 0.3
15.6 Total Cash Maturities 5.6 3.2 2.1 1.6 1.7 1.4
13.2 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 20112 Excluding Bond fair value, including interest accruals
January 27, 2011Q4 & FY ’10 Results Review 35
Fiat Industrial – Debt maturity schedule1
(€bn)
OutstandingDec. 31, 2010 2011 2012 2013 2014 2015 Beyond
5.1 Bank Debt 1.1 2.8 0.8 0.2 0.1 0.1
2.2 Capital Market 2 - 0.1 0.8 - - 1.3
0.2 Other Debt 0.2 - - - - -
7.5 Total Cash Maturities 1.3 2.9 1.6 0.2 0.1 1.4
3.7 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 post-demerger (€2.8bn)
2 Excluding Bond fair value, including interest accruals
January 27, 2011 Q4 & FY ‘10 Results Review 36
Group financial charges breakdownFY ‘10 vs. ‘09
Average Outstanding
(€bn)
Rate/Spread(%)
Net Charges (€mn)
2009 2010 Chg
Net Industrial Debt FY ’10 (3.9) 5.3% (206)+102
Net Industrial Debt FY ’09 (5.6) 5.5% (308)
“Cost of Carry” FY ’10 (11.8) 3.5% (413)(206)
“Cost of Carry” FY ’09 (5.9) 3.5% (207)
Equity Swap (hedging stock option plans) 117 111 (6)
IAS 19 (interest cost on pension & OPEB) (160) (125) +35
Indirect taxes on banking transactions (South America)
(27) (24) +3
Others (fees, FX, interest cost on long-term provisions, discount of certain receivables...)
(168) (248) (80)
NET FINANCIAL CHARGES (753) (905) (152)
January 27, 2011 Q4 & FY ’10 Results Review 37
FY ‘10Revenues & trading profit
(€mn) FY ‘10 Change 2010/2009Cons. Industrial Financial Cons. Industrial Financial
RevenuesFiat post-demerger 35,880 35,676 270 3,196 3,145 80of which
Automobiles 30,130 29,906 270 1,779 1,716 80FGA 27,860 27,662 242 1,567 1,511 74
Ferrari 1,919 1,893 28 141 134 6Maserati 586 586 - 138 138 -
Components 10,865 10,865 - 2,076 2,076 -Others & Elim. (5,115) (5,095) - (659) (647) -
Trading profitFiat post-demerger 1,112 1,047 65 376 352 24of which
Automobiles 934 869 65 215 191 24FGA 607 551 56 137 116 21
Ferrari 303 294 9 65 62 3Maserati 24 24 - 13 13 -
Components 249 249 - 160 160 -Others & Elim. (71) (71) - 1 1 -
January 27, 2011 Q4 & FY ’10 Results Review 38
FY ‘10From trading profit to net result
(€mn)
*Financial charges, net include: gain of €111mn on two stock-option related equity swaps (gain of €117mn in FY ‘09)
FY2010 2009 ∆
Trading profit 1,112 736 +376
Unusual items, net (120) (358) +238
Operating income 992 378 +614Financial charges, net* (400) (352) -48Investment income, net 114 77 +37
Pre-tax result 706 103 +603
Taxes (484) (448) -36
Net result 222 (345) +567
January 27, 2011 Q4 & FY ’10 Results Review 39
Fiat Group AutomobilesRevenues & trading profit
Revenues (€mn)
Trading Profit (€mn)
1,766 1,697 1,980
2,234 2,153 2,151 2,082
• 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 2nd quarter in a row
5,600
FY ‘09 FY ‘10
6,840
Q2
Q1
Q3
Q4
7,350
6,550
7,120
6,905
6,541
7,247
(30)
FY ‘09 FY ‘10
153
Q2
Q1
Q3
Q4
185
130
139
155
155
190 (16.1)%
19.4%
n.a.
(26.8)%
0.1%
6.4%
22.1%
(1.8)%
FY’04 FY’05 FY’06 FY’07 FY’08 FY’09 FY’10
Unit Sales (x000)
January 27, 2011 Q4 & FY ’10 Results Review 40
Fiat Group AutomobilesTrading profit variance & margin
(€mn)
(20)(130)
(85)
82
470
(14)
210
94607
FY '09 Volume Price & Mix
Purchasing Net
Production Cost Absorp.
SG&AR&D FY ‘10Other
1.8%
2.2%
• Overall volumes down ~82k units (ex
Chrysler Group product distribution)
Robust increase in LCVs volumes (+27%)
unable to offset volume decline in passenger
cars
• Improved mix in LA, LCVs, & Alfa Romeo
Giulietta more than countered by
unfavorable mix (CNG & LPG) in passenger
cars
• Purchasing savings above expectations
• WCM efficiencies more than offset by under
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 41
Fiat Group AutomobilesQ4 ‘10 market & market share (ex Ferrari & Maserati)
Unit %
Units 000 2010 2009 Change Change
EU27 Market 3,214.4 3,528.3 -313.8 -8.9%
Registrations 217.3 292.0 -74.7 -25.6%
Mkt Share % 6.8% 8.3% -1.5
Italy Market 416.5 546.9 -130.4 -23.8%
Registrations 118.7 172.4 -53.7 -31.1%
Mkt Share % 28.5% 31.5% -3.0
Germany Market 749.4 816.4 -67.0 -8.2%
Registrations 18.8 28.0 -9.2 -32.9%
Mkt Share % 2.5% 3.4% -0.9
France Market 594.2 658.4 -64.2 -9.8%
Registrations 21.3 26.6 -5.2 -19.6%
Mkt Share % 3.6% 4.0% -0.4
U.K. Market 395.2 478.0 -82.8 -17.3%
Registrations 12.0 20.0 -8.0 -40.1%
Mkt Share % 3.0% 4.2% -1.2
Spain Market 196.0 276.3 -80.3 -29.1%
Registrations 5.3 7.1 -1.7 -24.2%
Mkt Share % 2.7% 2.6% 0.1
Poland Market 100.5 81.3 19.2 23.6%
Registrations 7.1 7.4 -0.2 -3.2%
Mkt Share % 7.1% 9.1% -2.0
Brazil Market 780.3 657.0 123.2 18.8%
Registrations 170.2 161.5 8.7 5.4%
Mkt Share % 21.8% 24.6% -2.8
Passenger Cars Q4 Unit %
Units 000 2010 2009 Change Change
EU27 Market 430.1 390.2 39.9 10.2%
Registrations 51.28 48.17 3.1 6.5%
Mkt Share % 11.9% 12.3% -0.4
Italy Market 48.5 50.5 -2.0 -3.9%
Registrations 20.6 20.5 0.1 0.5%
Mkt Share % 42.4% 40.5% 1.9
Germany Market 74.2 58.5 15.7 26.8%
Registrations 6.3 5.3 1.0 19.5%
Mkt Share % 8.5% 9.0% -0.5
France Market 111.0 103.6 7.4 7.1%
Registrations 8.2 7.4 0.8 11.2%
Mkt Share % 7.4% 7.1% 0.3
U.K. Market 55.8 45.8 10.0 21.9%
Registrations 1.9 1.6 0.3 17.8%
Mkt Share % 3.3% 3.5% -0.2
Spain Market 28.9 30.0 -1.1 -3.8%
Registrations 2.6 2.6 0.0 0.2%
Mkt Share % 9.1% 8.7% 0.4
Poland Market 11.8 10.2 1.6 15.7%
Registrations 3.1 3.0 0.1 4.3%
Mkt Share % 26.2% 29.1% -2.9
Brazil Market 180.1 140.8 39.3 27.9%
Registrations 42.2 32.8 9.5 28.9%
Mkt Share % 23.4% 23.3% 0.1
Light Commercial Vehicles Q4
January 27, 2011 Q4 & FY ’10 Results Review 42
Fiat Group AutomobilesFY ‘10 market & market share (ex Ferrari & Maserati)
Passenger Cars FY Unit %Units 000 2010 2009 Change Change
EU27 Market 13,785.7 14,499.1 -713.4 -4.9%Registrations 1,034.9 1,248.9 -214.0 -17.1%Mkt Share % 7.5% 8.6% -1.1
Italy Market 1,960.3 2,159.5 -199.2 -9.2%Registrations 589.2 707.6 -118.4 -16.7%Mkt Share % 30.1% 32.8% -2.7
Germany Market 2,916.3 3,807.2 -890.9 -23.4%Registrations 88.3 179.4 -91.1 -50.8%Mkt Share % 3.0% 4.7% -1.7
France Market 2,251.7 2,302.4 -50.7 -2.2%Registrations 89.1 98.9 -9.7 -9.9%Mkt Share % 4.0% 4.3% -0.3
U.K. Market 2,030.8 1,995.0 35.8 1.8%Registrations 61.9 69.4 -7.5 -10.8%Mkt Share % 3.0% 3.5% -0.5
Spain Market 982.0 952.8 29.2 3.1%Registrations 29.4 23.9 5.5 23.1%Mkt Share % 3.0% 2.5% 0.5
Poland Market 333.5 320.3 13.3 4.1%Registrations 27.0 33.0 -6.0 -18.2%Mkt Share % 8.1% 10.3% -2.2
Brazil Market 2,695.4 2,520.2 175.1 6.9%Registrations 611.4 619.0 -7.6 -1.2%Mkt Share % 22.7% 24.6% -1.9
Light Commercial Vehicles FY Unit %Units 000 2010 2009 Change Change
EU27 Market 1,664.5 1,524.0 140.5 9.2%
Registrations 212.7 195.3 17.3 8.9%
Mkt Share % 12.8% 12.8% 0.0
Italy Market 186.7 175.8 10.9 6.2%
Registrations 82.2 72.2 10.0 13.9%
Mkt Share % 44.0% 41.1% 2.9
Germany Market 272.9 239.5 33.4 14.0%
Registrations 29.0 28.6 0.4 1.5%
Mkt Share % 10.6% 11.9% -1.3
France Market 423.0 382.2 40.8 10.7%
Registrations 36.1 33.8 2.3 6.7%
Mkt Share % 8.5% 8.8% -0.3
U.K. Market 230.9 194.4 36.4 18.7%
Registrations 8.8 7.1 1.7 22.5%
Mkt Share % 3.8% 3.7% 0.1
Spain Market 115.8 105.7 10.1 9.5%
Registrations 10.1 9.1 1.0 10.6%
Mkt Share % 8.7% 8.6% 0.1
Poland Market 38.6 40.1 -1.5 -3.8%
Registrations 9.72 10.27 -0.5 -5.3%
Mkt Share % 25.2% 25.6% -0.4
Brazil Market 634.6 489.9 144.7 29.5%
Registrations 149.1 118.0 31.2 26.4%
Mkt Share % 23.5% 24.1% -0.6
January 27, 2011 Q4 & FY ’10 Results Review 43
Fiat Group AutomobilesWorldwide unit sales by region, Cars+LCVs (unit/000)*
Brazil
Italy
EU27 ex Italy
RoW
(1.7)% (7.6)%
0.8%
(9.3)%
(5.6)%
1,595
556514**
3.9%
(25.2)%
(12.1)%
53.5%
1.6%
(13.3)%
(7.3)%
(3.2)%
60.3%
2,1511,568** 2,082**
* 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
62.9%
January 27, 2011 Q4 & FY ’10 Results Review 44
Fiat Group AutomobilesWorldwide unit sales by brand, Cars+LCVs (unit/000)*
LCV
Lancia
Fiat
Alfa
(1.7)% (7.6)%
30.9%
(9.8)%
(7.8)%
4.0%
1,595 1,568**
556
514**
17.9%
(15.2)%
28.7%
(34.2)%
27.1%
(16.1)%
(9.7)%
2,082**
(3.2)%
2,151
10.2%
* 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 45
Fiat Group AutomobilesProduction volumes, sales volume & registrations
521521
468527
556612
556 592 600665
542
402465
582 541 582 543 583506 515
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
509530
469502
569600
537571
591631
532
463
525
630
557 565 580
545500
517
485516
460
520
541
579
543
571
564
645
517
428
465
591
539556 532
554
481514
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
RegistrationsUnits sold
Production
Registrations & Sales
WW Passenger Cars & LCV(‘000 units)
2006 2007 2008 2009 2010
January 27, 2011 Q4 & FY ’10 Results Review 46
ComponentsMagneti Marelli, Teksid, Comau
Trading Result (€mn)
Revenues (€mn)
FY '09 FY ‘10
4,528
578
FY '09 FY ‘10
728
5,402
776
1,023
98
(28)
25(12)
17
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
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
Teksid
• 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
(6)
January 27, 2011 Q4 & FY ’10 Results Review 47
Fiat Powertrain & FPT IndustrialTrading profit variance & margin
(€mn)
Industrial & MarineTrading profit increase driven by significant volume recovery for all customers and cost
efficiency
(7)162
8
(131)
-
29 4 65
FY '09 Volume/Mix
Price ProductionCost
SG&A R&D FY ‘10Other
(8.3)%
2.7%
Passenger & Commercial VehiclesTrading profit increase driven by LA
volumes and cost efficiency
(15)
4313
104(20)
11 4 140
FY '09 Volume/Mix
Price ProductionCost
SG&A R&D FY ‘10Other
3.1%
3.3%
January 27, 2011Q4 & FY ’10 Results Review 48
FY ‘10Revenues & trading profit
(€mn) FY ‘10 Change 2010/2009Cons. Industrial Financial Cons. Industrial Financial
RevenuesFiat Industrial 21,342 20,235 1,379 3,374 3,319 99of which
CNH 11,906 10,920 1,220 1,799 1,755 91Iveco 8,307 8,175 159 1,124 1,123 8Components 2,415 2,415 - 835 835 -Others & Elim. (1,286) (1,275) - (384) (394) -
CNH ($) 15,784 14,477 1,616 1,687 1,694 42
Trading resultFiat Industrial 1,092 969 123 770 774 (4)of which
CNH 755 600 155 418 416 2Iveco 270 302 (32) 165 171 (6)Components 65 65 - 196 196 -Others & Elim. 2 2 - (9) (9) -
CNH ($) 1,001 796 205 531 539 (8)
January 27, 2011Q4 & FY ’10 Results Review 49
FY ‘10From trading profit to net result
(€mn) FY2010 2009 ∆
Trading profit 1,092 322 +770
Unusual items, net (75) (341) +266
Operating income 1,017 (19) 1,036
Financial charges, net* (505) (401) -104
Investment income, net 64 (50) +114
Pre-tax result 576 (470) +1,046
Taxes (198) (33) -165
Net result 378 (503) +881
January 27, 2011Q4 & FY ’10 Results Review 50
Agricultural and Construction Equipment Revenues & trading profit
Revenues (€mn)
Trading Profit (€mn)
2,598
FY ‘09
Q2
Q1
Q3
Q4
FY ‘10
2,575
3,317
2,991
3,023
2,860
2,268
2,381
FY ‘09 FY ‘10
Q2
Q1
Q3
Q4
127
263
215
150
123
6699
49
31.9%
16.0%
(0.9)%
27.0%
+3.3x
+2x
+2.5x
1.5x
• Revenues up 18% (+12% in US$) 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
January 27, 2011Q4 & FY ’10 Results Review 51
Agricultural and Construction Equipment Trading profit variance & margin
(€mn)
Trading profit 2.2x of last year level• Higher volumes and better mix
• Positive net pricing
• Increased production efficiencies for both AG & CE products
(80)
79
201
337
82
154
3.3%
6.3%
755
(18)
FY '09 Volume/Mix Pricing, Net Production Cost
SG&A Other FY‘10R&D
January 27, 2011Q4 & FY ’10 Results Review 52
Trucks and Commercial VehiclesRevenues & trading profit
• 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%
By segment
• Light up 25.3%
• Medium up 51.3%
• Heavy up 27.6%
• Improved profitability driven by continued
recovery of quarterly sales volume in the year Trading margin at 3.3% (+1.8 p.p.)
Revenues (€mn)
Trading Profit (€mn)
FY ‘10
1,694
Q2
Q1
Q3
Q4
2,097
1,978
2,538
1,523
FY ‘09
1,773
1,715
2,172
FY ‘10
3
Q2
Q1
Q3
Q4
50
80
137
15.3%
18.3%
11.2%
16.9%
3.6x
2.8x
n.a.
1.8x
(12)
FY ‘09
22
77
18
January 27, 2011Q4 & FY ’10 Results Review 53
Trucks and Commercial VehiclesTrading profit variance & margin
(€mn)
2
(29)
177
105
(7)
26
1.5%
3.3%
270(38)
FY '09 Volume/Mix
Purchasing Prod.Cost
R&D Other FY‘10SG&A
34
Price
• Volumes up 26k units on continued sales recovery of Trucks & Commercial Vehicles
• Focus on cost reduction actions through enhancement of WCM program and savings from component standardization
January 27, 2011Q4 & FY ’10 Results Review 54
Trucks and Commercial VehiclesMarket share by region
WE market shareFY ’10
13.9%1 23.8% 8.4%
Change vs. FY ’09 -0.1 p.p. -0.4 p.p. -0.9 p.p.
EE market share FY ‘10
14.1% 29.1% 8.2%
Change vs. FY ‘09 -0.6 p.p. -1.4 p.p. -3.1 p.p.
Brazil market shareFY ‘10
18.1%2 4.0%2 11.9%2
Change vs. FY ’09 -0.1p.p. 1.1p.p. 0.0p.p.
1 2.8-6T at 7,4% (-0.4p.p. vs. last year)2 Brazil: Light 3.5-6T at 24.8% (-2.2p.p.); Medium 6-15.99T at 2.7% (0.2p.p.); Heavy ≥16T at 8.8% (0.9 p.p.)
Light(3.5-6T) Medium Heavy
Light(3.5-7.9T)
Medium(8.0-31T)
Heavy(>31T)
• 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)
January 27, 2011 Q4 & FY ’10 Results Review 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 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. 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 56
Contacts
Fiat Industrial Investor Relations
Manfred Markevitch
email: [email protected]
website: www.fiatindustrial.com
Fiat Spa Investor Relations
Marco Auriemma
email: [email protected]
website: www.fiatspa.com