investor presentation fy 2014 - fca bank groupinvestor presentation fy 2014 march 2015. by opening...

Investor Presentation

FY 2014

March 2015

By opening this presentation and/or attending the meeting where this presentation is made, you agree to be bound by the following limitations.

This presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation ofany offer to buy or subscribe for, any securities of FCA Bank S.p.A. or any of its subsidiaries (together, FCA Bank), nor should this presentation or any part of it form the basis of,or be relied on in connection with, any contract or commitment whatsoever. If any offer for any such securities is made, it will be done so pursuant to separate and distinctdocumentation in the form of a prospectus or offering circular and such other documentation as may be required for the purposes of such an offer and any decision to purchaseor subscribe for any securities pursuant to such offer should be made solely on the basis of such prospectus, offering circular or other documentation and not this presentation.This presentation does not constitute a recommendation regarding any securities of FCA Bank

The information in this presentation is confidential and this document is being made available to selected recipients only and solely for the information of such recipients. Thisdocument may not be reproduced, redistributed or passed on to any other persons, in whole or in part. This presentation is not intended for distribution to or use by any person orentity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

The information set out in this presentation may be subject to updating, revision, verification and amendment and such information may change materially. FCA Bank is under noobligation to update or keep current the information contained in this document and any opinion expressed herein is subject to change without notice. None of FCA Bank S.p.A.nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this documentor its contents, or otherwise arising in connection with this presentation.

This presentation and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the UnitedStates (within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the Securities Act)).

This presentation is being communicated in the United Kingdom only to persons who have professional experience in matters relating to investments falling within Article 19(5) ofthe Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) and to persons to whom it may otherwise be lawful to communicate it to (all suchpersons being referred to as relevant persons). This presentation is only directed at relevant persons and any investment or investment activity to which the presentation relatesis only available to relevant persons or will be engaged in only with relevant persons. Other persons should not rely or act upon this presentation or any of its contents.

This document is for distribution in Italy only to "qualified investors" (investitori qualificati), as defined pursuant to Article 100, paragraph 1(a), of Legislative Decree no. 58 of 24February 1998, as amended and restated from time to time (the Financial Services Act), and as defined in Article 34-ter, paragraph 1(b) of CONSOB Regulation no. 11971 of 14May 1999, as amended and restated from time to time (the CONSOB Regulation), or in other circumstances provided under Article 100 of the Financial Services Act and Article34-ter, CONSOB Regulation, where exemptions from the requirement to publish a prospectus pursuant to Article 94 of the Financial Services Act are provided.

These materials may contain projections and forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors whichmay cause FCA Bank's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by suchforward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding FCA Bank's present and future business strategies and theenvironment in which FCA Bank will operate in the future. Further, any forward-looking statements will be based upon assumptions of future events which may not prove to beaccurate. Any such forward-looking statements in these materials will speak only as at the date of these materials and FCA Bank assumes no obligation to update or provide anyadditional information in relation to such forward-looking statements.

.

Disclaimer

Investor Presentation March 2015 2

FCA Bank: a JV between Crédit Agricole and FCA

50 / 50 Joint Venture between Fiat Chrysler Automobiles and Crédit Agricole

Long-Term Partnership initially signed in December 2006 and extended until December 2021, at least

A unique business model, combining commercial effectiveness of an industrial partner, with risk discipline

and financial strength of a banking partner


FCA Bank – Overview

FCA Bank is one of the largest specialized car finance and lease companies operating in Europe,

diversified across products, geographies and brands

FCA Bank provides retail, dealer and rental financial services in Europe to the brands of:

� FCA - Alfa Romeo, Chrysler, Fiat, Fiat Professional, Jeep, Lancia and Abarth

� Maserati

� Jaguar and Land Rover

FCA Bank is regulated as a bank by the Bank of Italy under the Italian Banking Act (formerly was

regulated as a financial institution)

BBB- Long-term / F3 Short-term by FITCH (Stable Outlook)

Baa3 Long-term / P-3 Short-term by MOODY’S (Rating placed under review for possible upgrade on 17th March 2015)

BB+ Long-term / B Short-term by STANDARD&POOR’S (Stable Outlook)

RATINGS


FCA Bank Group - History

Renewal of JV between Fiat Group Automobiles (now FCA Italy) and Crédit AgricoleConsumer Finance

Agreement with Maserati and creation of Maserati FS

JV between Fiat Auto SpA & Crédit AgricoleConsumer Finance

Partnership with Jaguar Land Rover in 9 European countries

Partnership with Chrysler for the brands Chrysler, Jeep and Dodge in Europe

Renewal of Partnership with Jaguar Land Rover in 8 European countries

Creation of FCA Bank


FCA Italy S.p.A. and CA Consumer Finance S.A. announced on January 15th 2015 the creation

of FCA Bank S.p.A. which, following receipt of its banking license in Italy, becomes the parent

company of an international banking group with operations in 16 European countries.

The creation of FCA Bank is a major milestone in the strategic development of the business that

began some 90 years ago with the establishment of SAVA in Turin in 1925.

Building on the existing model, FCA Bank will continue to support the sales activities of its co-

operating brands through the offer of vehicle financing to customers and dealers, in addition to

insurance solutions and long-term fleet lease programs.

The new status as a bank will further enhance the Company’s reputation, will allow it to offer

customers even more attractive products, and will be an opportunity for a further diversification of

the funding sources / access to bank specific funding

The bank will be strengthened by the compliance with capital and regulatory ratios

The JV corporate governance will also be further reinforced (with 2 independent board members

and governing bodies in line with Bank of Italy requirements), although the model is unvaried,

having proven its effectiveness during the last 8 years.

FCA BankThe Transformation Announcement

March 2015Investor Presentation 6

The JV agreement was renewed in 2013 - effective January 2015 - for 7 years, hence upto 31st December 2021; such renewal confirms a relationship on a 15-year time horizon atleast, which demonstrates the strategic relevance of the JV for Fiat Chrysler Automobilesand Crédit Agricole

Board of Directors members increased from 8 to 10, of which 2 independent

� Chairman: appointed by CACF

� Chief Executive Officer & General Manager: appointed by FCA

� Chief Financial Officer & Deputy General Manager: appointed by CACF

Corporate governance model, now including the following bodies (also in compliance withBank of Italy requirements):


JV Corporate Governance Overview

� Advisory Board

� Board Executive Credit Committee

� Credit Committee

� Finance and Control Committee

� Internal Control Committee

� Risk and Audit Committee

FCA Bank Group – Business Overview

3 Business lines

10 Brands

26 Legal entities

1,920 Employees

16 Countries� Private customers

� Channel: Dealership

� Outstanding (avg.): 9.9 €/Bn

� 67% of avg. outstanding assets

� OEM Dealer Networks



� Corporate customers

� Channel: Dealership/Direct



Dealer Financing

Retail Financing

Rental

Multi-Brand and Multi-Business


Figures as at 31/12/2014

14.615.5 15.1 15.1

13.912.6

11.7 12.0

0.41.3

1.9

2.32.9 2.7

2007 2008 2009 2010 2011 2012 2013 2014

FCA & MASERATI JLR

Average Outstanding Overview

~18%

~ 82%

Italy

41%

Germany

20%

UK

17%

France

8%

Spain

4%

Others

11%


14.615.5

16.415.8

15.514.9 14.6 14.7

Positive automotive market trend – EU monthly passenger car registrations

increasing for 18 consecutive months (FCA +3.4% yoy, JLR +6.4% yoy) (1)

FCA Bank continuing to pursue opportunities, by exploring new commercial

agreements and brand diversification

Overall business increasing (penetration rate on the cooperating brands:

FCA 43%, JLR 34%, Maserati 24%)

(1) Source: European Automobile Manufacturers Association, 17 March 2015

FY 2014

0

1

2

3

4

Italy Germany UK France Spain

Retail Financing Dealer Financing Rental

9.2 9.6 10.0 10.9 10.6 9.8 9.5 9.9

3.8 3.8 3.63.7 3.8

3.8 3.7 3.5

1.6 2.1 1.91.7 1.5

1.3 1.3 1.3

2007 2008 2009 2010 2011 2012 2013 2014

Rental

Dealer Financing

Retail

Average Outstanding Overview

Overview per Year (€/Bn)

5 Major Markets – All Brands (€/Bn) 3 Business lines managed by a single

structure, exploiting commercial and

operational synergies

5 major markets accounting for almost 90%

of total assets

Outstanding mix, evenly distributed

throughout the years

FY 2014


14.615.5 16.4 15.815.5 14.9 14.6 14.7

119

137

105

147 153167 172

182

7.2%8.2% 8.0%

8.8% 9.2%

10.6% 11.0%11.7%

0

50

100

150

200

Avg. ManagedOutstanding (€/Bn)

2009

14.6

2010

15.5

2011

16.4

2012

15.8

2007 2008 2014

15.5 14.9 14.6

Core Tier 1

Net Profit (€/M)

2013

2013

14.7

Capitalization


High quality of capital (common equity only)

FCA Bank subsidiaries not needing additional capital

FCA Bank regulated legal entities well above Minimum Capital Requirements "MCR"

119137

105

147 153167 172

182

0.81%0.88%

0.67%0.90% 0.97%

1.12% 1.18% 1.24%

0.50%

1.00%

1.50%

2.00%

2.50%

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014

Net Profit Net income / Average Outstanding

Net Profit (€/M) & Percentage on Average

Outstanding

Net Banking Income (€/M) & Percentage

on Average OutstandingCost / Income Ratio (%)

Key Financial Indicators

517 536576 596 609 608 587 566

3.53% 3.46%3.71% 3.65%

3.86%4.08% 4.03%

3.84%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014

Net Banking Income NBI / Average Outstanding

Pre-Tax Income (€/M) & Percentage on

Average Outstanding

190 189 184213

229257 248

257

1.30% 1.22% 1.18% 1.30%1.45%

1.72% 1.70% 1.74%

0.50%

1.00%

1.50%

2.00%

2.50%

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014

Pre-Tax Income Pre-Tax Income / Average Outstanding


46.4%

43.0% 42.9%40.1% 39.0% 38.6% 39.4% 39.9%

0.007

0.009

0.011

0.013

0.015

0.017

0.019

0.021

0.023

0.025

0

0

0

0

0

0

0

2007 2008 2009 2010 2011 2012 2013 2014

March 2015

Cost of Risk (€/M) & Ratio on Average

Outstanding

Cost of Risk ratio resilient despite difficult market conditions

Decreasing level of doubtful receivables on total outstanding

Credit Risk Performance

87

117

145 145 144

116109

83

0.60%

0.75%

0.93% 0.89% 0.91%

0.78% 0.75%

0.57%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014

Provisions Cost of Risk / Average Outstanding

Total Provision Funds (€/M) &

Provision Funds / Outstanding (%)

Investor Presentation 13

255

302

374

424 428

338 330315

1.6% 2.0% 2.3% 2.6% 2.7% 2.3% 2.2% 2.0%

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014

Provision Funds Provision Funds / Outstanding

Historical Funding Sources Evolution

(€/M)


0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007 2008 2009 2010 2011 2012 2013 2014

Bonds

CA Group

TP Banks

Securitizations

FCA Bank – Highlights

Transformation into a bank pointing to new opportunities in financial services offer and infunding instruments

Bank‘s mission unvaried: supporting the co-operating brands’ sales whilst guaranteeinglong-term return on shareholders’ investment

Strategic development continues to be based on two pillars: organic growth anddiversification

Net Profit reaching an unprecedented record of EUR 182 M in 2014

Group Core Tier 1 increasing to 11.7%

Cost of risk increasing performance in all business lines

Strong liquidity position enhanced in 2014 by further diversification on secured andunsecured capital markets, with cost of funding well under control:

� EUR 2.250 M Bond issuances under the EMTN Programme

� CHF 125 M domestic issuance

� EUR 550 M German Syndicated Facility

� EUR 920 M Italian ABS (A-BEST 9 and A-BEST 10)


Giacomo Carelli CEO and General Manager [email protected]

Franco Casiraghi CFO and Deputy General Manager [email protected]

Riccardo Mesturino Treasurer [email protected]

Wiebke Wortmann Capital Markets [email protected]

Antonella Baroncelli Investor Relations [email protected]

Ticker: 2865431ZIM

www.fcabankgroup.com

FCA Bank SpA

Bloomberg

Website

Contacts


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