powerpoint presentation · or exist in the future and, as such, undue reliance should not be placed...

Q2F C A Q 2 2 0 1 9 R E S U L T S | J U L Y 3 1 , 2 0 1 9

July 31, 2019 Q2 2019 RESULTS | 2

This document, and in particular the section entitled “FY 2019 guidance”, contains forward-

looking statements. In particular, these forward-looking statements include statements

regarding future financial performance and the Company’s expectations as to the

achievement of certain targeted metrics, including net cash/(debt) and net industrial

cash/(debt), revenues, industrial free cash flows, vehicle shipments, capital investments,

research and development costs and other expenses at any future date or for any future

period are forward-looking statements. These statements may include terms such as “may”,

“will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on

track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”,

“plan”, or similar terms. Forward-looking statements are not guarantees of future performance.

Rather, they are based on the Group’s current state of knowledge, future expectations and

projections about future events and are by their nature, subject to inherent risks and

uncertainties. They relate to events and depend on circumstances that may or may not occur

or exist in the future and, as such, undue reliance should not be placed on them.

Actual results may differ materially from those expressed in forward-looking statements as a

result of a variety of factors, including: the Group’s ability to launch new products successfully

and to maintain vehicle shipment volumes; changes in the global financial markets, general

economic environment and changes in demand for automotive products, which is subject to

cyclicality; changes in local economic and political conditions, changes in trade policy and

the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the

enactment of tax reforms or other changes in tax laws and regulations; the Group’s ability to

expand certain of the Group’s brands globally; the Group’s ability to offer innovative,

attractive products; the Group’s ability to develop, manufacture and sell vehicles with

advanced features including enhanced electrification, connectivity and autonomous-driving

characteristics; various types of claims, lawsuits, governmental investigations and other

contingencies affecting the Group, including product liability and warranty claims and

environmental claims, investigations and lawsuits; material operating expenditures in relation to

compliance with environmental, health and safety regulations; the intense level of competition

in the automotive industry, which may increase due to consolidation; exposure to shortfalls in

the funding of the Group’s defined benefit pension plans; the Group’s ability to provide or

arrange for access to adequate financing for the Group’s dealers and retail customers and

associated risks related to the establishment and operations of financial services companies,

including capital required to be deployed to financial services; the Group’s ability to access

funding to execute the Group’s business plan and improve the Group’s business, financial

condition and results of operations; a significant malfunction, disruption or security breach

compromising the Group’s information technology systems or the electronic control systems

contained in the Group’s vehicles; the Group’s ability to realize anticipated benefits from joint

venture arrangements; the Group’s ability to successfully implement and execute strategic

initiatives and transactions, including the Group’s plans to separate certain businesses;

disruptions arising from political, social and economic instability; risks associated with our

relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or

shortages of raw materials; developments in labor and industrial relations and developments in

applicable labor laws; exchange rate fluctuations, interest rate changes, credit risk and other

market risks; political and civil unrest; earthquakes or other disasters and other risks and

uncertainties.

Any forward-looking statements contained in this document speak only as of the date of this

document and the Company disclaims any obligation to update or revise publicly forward-

looking statements. Further information concerning the Group and its businesses, including

factors that could materially affect the Company’s financial results, is included in the

Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and

CONSOB.

S A F E H A R B O R S T A T E M E N T

Q2 2019 RESULTS |July 31, 2019 3

B U S I N E S S H I G H L I G H T SB U I LD I NG MO MEN TUM TO DEL I VER S TRON G H 2 2 0 1 9

DIVIDENDS OF ~€3B paid to

shareholders, including ~€2B

extraordinary dividend following

sale of Magneti Marelli

SUCCESSFUL LAUNCHES of all-new

Ram heavy-duty pickup and

Jeep Gladiator; production

ramp-up of Gladiator ahead of

schedule

STRONG RAM PICKUP SALES

with Q2 y-o-y sales up 40% in U.S.,

leading to 27.9% large pickup

market share, up 7 ppts y-o-y

EXECUTED PARTNERSHIP

AGREEMENTS WITH ENEL X AND

ENGIE to develop e-mobility

solutions for electrified vehicles

in Europe

INVENTORY REDUCTION

INITIATIVES ON TRACK with

global dealer stock down

more than 100k units since

Dec 2018

RECORD Q2 NORTH AMERICA

RESULTS with Adjusted EBIT of €1.6B

and margin at 8.9%; Latin America

remains strong with Adjusted EBIT

up 9% and margin up 60 bps at 5.4%

Q2 2019 RESULTS |July 31, 2019 4

K E Y C O M M E R C I A L M E T R I C S

677

41

382

146

693

55

432

148

COMBINED SALES

MARKET SHARE (1) 12.4% 12.4%

Q2 INDUSTRY (1)

(2019 vs. 2018) - 2%

0.5% 0.7%

- 7%

7.0% 7.6%

- 4%

14.0% 13.4%

- 6%

PO S I T I VE PER F ORMAN C E I N N O RTH AMER I C A AN D L AT I N AMER I CA

NORTH AMERICA LATIN AMERICAASIA PACIFICEUROPE, MIDDLE EAST & AFRICA

(1) Industry and market share data reflect the following:

• Asia Pacific reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India); market share is based on retail registrations, except in India where market share is based on wholesale volumes, as well as management’s estimates of industry sales data, which use certain data provided by third party sources. Effective Jan 2019, industry data sourced from China Passenger Car Association.

• Europe, Middle East & Africa reflects aggregate for EU 28 + EFTA markets only and is derived from a combination of passenger car information from European Automobile Manufacturers Association (ACEA) Registration Databases and internal information on LCVs

000 units

Q2 2018

Q2 2019

Q2 2019 RESULTS |July 31, 2019 5

(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated shipments only include shipments by the Group’s consolidated subsidiaries

(2) Includes €0.4 billion related to Magneti Marelli at Mar 31 2019* Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics

RESULTS FROM CONTINUING OPERATIONSexcept as otherwise stated Q2 2019 Q2 2018

COMBINED SHIPMENTS (1)(000 units) 1,157 1,301 - 11%

CONSOLIDATED SHIPMENTS (1)(000 units) 1,128 1,250 - 10%

NET REVENUES (€ billion) 26.7 27.6 - 3%

ADJUSTED EBIT* 1,527 1,534 -

ADJUSTED EBIT MARGIN* 5.7% 5.6% + 10 bps

ADJUSTED NET PROFIT* 928 909 + 2%

ADJUSTED DILUTED EARNINGS PER SHARE (EPS)*(€) 0.59 0.58 + 2%

INDUSTRIAL FREE CASH FLOWS* 754 1,499 - 50%

AVAILABLE LIQUIDITY (2)(€ billion)

23.5 20.3(at Mar 31 2019)

+ 16%

Adjusted EBITin line with prior year

Record Q2 North America Adjusted EBIT and margin,

while reducing dealer stock by ~80k units

from Mar 2019

Adjusted net profit in line with prior year

Industrial free cash flows includes payments of €0.4B

for U.S. diesel emissions matters, as well as increased capex

Full-year guidance confirmed

F I N A N C I A L H I G H L I G H T SS TR ONG R ES UL TS , N O TWI THS TAN DI NG S I GNI F I CAN T DEAL ER S TO C K R EDUCT I ON

€ million, except as otherwise stated

July 31, 2019 Q2 2019 RESULTS | 6

Q 2 2 0 1 9 A D J U S T E D E B I T * WA L K

* Refer to Appendix for definitions of supplemental financial

measures and reconciliations to applicable IFRS metrics

€ million% = Adjusted EBIT margin

1,534 1,527

5.6%5.7%

Q2 2018 Volume & Mix Net Price Industrial Costs SG&A Other Q2 2019

I N L I NE WI TH PR I OR YEAR , DES P I TE L O WER VO L UMES MAI N L Y R EL ATED TO DEAL ER S TO CK R EDUC TI ON

Q2 2019 RESULTS |July 31, 2019 7

(1) Net of IAS 19

* Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics

Q 2 2 0 1 9 I N D U S T R I A L F R E E C A S H F L O WS *

STRONG CASH GENERATI ON FROM SEQUENTI ALLY H I GHER VOLUMES AND PROFI TAB I L I TY , WI TH H I GHER CAPEX

∆ VS. Q2 2018 (42) (779) 788 (854) 142 (745)

€ million

754

Adjusted

Industrial

EBITDA

CapexWorking

Capital

Changes in

Provisions

& Other

Financial

Charges

& Taxes (1)

Industrial

Free Cash

Flows

Changes in Provisions & Other includes payments of €0.4B for U.S. diesel emissions matters

Q2 2019 RESULTS |July 31, 2019 8

R EC ORD Q 2 PER F ORMAN C E I N N O RTH AMER I CA

1,565

(12)

22

110

(119)

1,397

(98)

188

101

2

8.9%

8.0%

0.4%

3.0%

(34.7)% 0.4%

(1.6)%

(15.0)%

5.4% 4.8%

Q2 2018

Q2 2019

€ million

% = Adjusted EBIT margin

Q 2 2 0 1 9 A D J U S T E D E B I T

NORTH AMERICA ASIA PACIFIC EUROPE, MIDDLE EAST & AFRICA

LATIN AMERICA MASERATI

Q2 2019 RESULTS |July 31, 2019 9

1,3971,565

N O R T H A M E R I C AR EC ORD Q 2 R ES UL TS AL O N G WI TH DEAL ER S TO C K R EDUC TI ON

Q2 ‘18 Volume & Mix

Net Price

Industrial Costs

SG&A Other Q2 ‘19

ADJUSTED EBIT WALK € million


8.0%

8.9%

• Shipments down 12%, primarily from dealer stock

reduction (down ~80k units from Mar 2019), partially

offset by increased Ram pickup truck volumes and all-

new Jeep Gladiator production ramp-up

• Net revenues flat, with favorable model mix and FX,

offset by lower volumes and negative net price

due to unfavorable CAD FX impact

• Adjusted EBIT up 12%, includes positive model mix,

lower SG&A, overall favorable FX and benefit due to

U.S. CAFE fine rate reduction on 2019MY vehicles sold

in prior quarters, partially offset by lower shipments

1,397

1,9371,680

1,044

1,565

8.0%10.2%

8.7%6.5%

8.9%

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

ADJUSTED EBIT & MARGIN(€ million)

17.5 19.1 19.416.1 17.6

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

NET REVENUES(€ billion)

676 673 638556 596

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

SHIPMENTS(000 units)

Q2 2019 RESULTS |July 31, 2019 10

A S I A P A C I F I CI MPORTED VEH I C LES C O N TR I BUT I NG TO I MPROVED R ES ULTS



• Combined shipments down 34% from continuing

lower China JV volumes

• Consolidated shipments up 10%, primarily due to

Jeep Wrangler volumes

• Net revenues up 17%, reflecting favorable model

mix and volumes, as well as non-repeat of prior

year incentives for import duty changes, partially

offset by lower component sales to China JV

• Adjusted EBIT increase due to higher revenues,

favorable model mix and reduced industrial costs,

partially offset by lower China JV results

(98)

(12)

(15.0)%

(1.6)%


Industrial Costs

SG&A Other Q2 ‘19Net Price

20 19 26 17 22

33 2728

22 13

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

COMBINED SHIPMENTS(000 units)Consolidated

JV

5346

54

39 35

0.70.6

0.80.6

0.8

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


(98) (96) (112)

(9) (12)

(15.0)% (16.5)%(13.2)%

(1.5)% (1.6)%

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


Q2 2019 RESULTS |July 31, 2019 11

E U R O P E , M I D D L E E A S T & A F R I C AR ES TRUC TUR I NG AC T I V I T I ES I N PR O GRES S

• Combined and consolidated shipments down 10%,

primarily due to discontinuation of Fiat Punto and

Alfa Romeo Mito and planned actions to improve

sales channel mix

• Net revenues down 12%, primarily due to lower

volumes

• Adjusted EBIT decline due to lower revenues,

higher compliance and product costs, as well as

unfavorable FX, partially offset by reduced

advertising costs and labor efficiencies from

restructuring actions

6.35.0

5.95.1 5.6

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


396273 304 302 357

18

8 20 1516

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

COMBINED SHIPMENTS(000 units)

Consolidated

JV 188

(25)

61

(19)

22 3.0%

(0.5)%

1.0%

(0.4)%

0.4%

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


414

281324 317

373

188

22


Net Price

Industrial Costs

SG&A Other Q2 ‘19



3.0%

0.4%

Q2 2019 RESULTS |July 31, 2019 12

L A T I N A M E R I C AS O L I D F I NAN CI AL R ES UL TS F R OM C O N T I NUED S TR ONG C O MMERCI AL PER F ORMAN C E I N B R AZ I L


% = Adjusted EBIT margin• Shipments substantially flat, with increased volumes

in Brazil, offset by lower Argentina volumes due to

ongoing market decline

• Net revenues substantially flat, with positive net

pricing, including recognition of credits related to

indirect taxes, offset by unfavorable model mix

and negative FX

• Adjusted EBIT up 9%, with positive net pricing and

manufacturing efficiencies, partially offset by cost

inflation, lower export tax benefits in Brazil and

Argentina, as well as unfavorable FX

101110

4.8%5.4%


Industrial Costs

SG&A Other Q2 ‘19Net Price

10183

101 105 110

4.8%4.2%

4.6%5.4% 5.4%

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


150 151 152120

148

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


2.12.0

2.2

1.92.1

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19


July 31, 2019 Q2 2019 RESULTS | 13

S I GNI F I CAN T I N VENTORY R EDUC TI ON AC T I ONS TAKEN , TO B E C O MPL ETED I N H 2 2 0 1 9

€ million, except as otherwise stated Q2 2019 Q2 2018

SALES (000 units) 7.2 8.7 - 17%

SHIPMENTS (000 units) 4.2 7.8 - 46%

NET REVENUES 343 568 - 40%

ADJUSTED EBIT (119) 2 n.m.

ADJUSTED EBIT MARGIN (34.7)% 0.4% n.m.

Lower sales across all markets, except China

Shipments down primarily due to dealer stock reduction and lower sales

Net revenues decrease due to lower volumes and higher incentives related

to accelerated transition to China 6

Adjusted EBIT reflects lower revenues and adjustments of residual values in U.S.

July 31, 2019 Q2 2019 RESULTS | 14

2 0 1 9 I N D U S T R Y O U T L O O K A N D G U I D A N C EGUI DAN C E C O N F I RMED, PER F ORMAN C E I MPROVEMENT MO MEN TUM TO C O N T I NUE I N H 2

ADJUSTED EBITM ARGIN

> 6.7> 6.1%

ADJUSTED DILUTED EPS (€ ) > 2.70

INDUSTRIAL FREE CASH FLOWS > 1.5

(1) APAC Industry reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India). Effective Jan 2019, industry data sourced from China Passenger Car Association.

Source: IHS Global Insight, Wards, China Passenger Car Association and Group estimates

€ billion, except as otherwise stated

FY 2019 GUIDANCE *

• Refer to Appendix for definitions of supplemental financial measures and reconciliations to applicable IFRS metrics. Guidance is not provided on the most directly comparable IFRS financial statement line item for Adjusted EBIT and Adjusted diluted EPSas the income or expense excluded from these non-GAAP financial measures in accordance with our policy are, by definition, not predictable and uncertain.

REGION 20.6 - 2% y-o-y

U.S. 17.2 - 3% y-o-y

NORTHAMERICA


BRAZIL 2.6 + 5% y-o-y

PASSENGER CARS AND LCVs

LATINAMERICA


CHINA 22.0 - 4% y-o-y

PASSENGER CARS ONLY

(1)ASIA

PACIFIC(1)

REGION 23.1 flat y-o-y

EU 28+EFTA 17.8 - 1% y-o-y

PASSENGER CARS AND LCVs

EUROPEMIDDLE EAST

AFRICA

million units

FY 2019 INDUSTRY OUTLOOK

Outlook unchanged Outlook unchangedOutlook unchanged Forecast for China market reduced from

22.9, while other markets decreased by 0.6

TOTAL VEHICLE SALES INCLUDING

MEDIUM/HEAVY TRUCKS

July 31, 2019 Q2 2019 RESULTS | 15

S ET T I NG TH E F O UN DAT I ON TO S UPPO RT KEY PR O DUC T L AUN C H ES B EGI NNI N G I N 2 0 2 0

Dec '18 Jun '19 Dec '19E

DEALER STOCK(units)

Targeting 2.0 – 2.5

months of supply

PRODUCT ACTIONS

2020 Ghibli All-new Sportscar

Levante Quattroporte

Mid-Cycle Freshening

2021 All-new D-UV

All-newSportscar

Cabrio

All-new GranTurismo

2022 All-new GranCabrio

All-new Quattroporte

All renewals and white-space products to be available as BEVs

2023 All-new Levante

H2 ’19 results will continue to

be impacted by reductions of

dealer stock which will then

allow the brand to fully

capitalize on key product

launches beginning in 2020

White-Space Product

July 31, 2019 Q2 2019 RESULTS | 16

APPENDIX

Q2 2019 RESULTS |July 31, 2019 17

S U P P L E M E N T A L F I N A N C I A L M E A S U R E S

FCA monitors its operations through the use of various supplemental financial measures. These and similar measures are widely used in the industry in which the

Group operates, however, these financial measures may not be comparable to other similarly titled measures of other companies and are not intended to be

substitutes for measures of financial performance as prepared in accordance with IFRS as issued by the IASB, as well as IFRS adopted by the European Union.

Group management believes these supplemental financial measures provide comparable measures of its financial performance which then facilitate

management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions.

FCA’s supplemental financial measures are defined as follows:

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is

computed starting with Net profit and adding back Net financial expenses,

Tax expense/(benefit) and depreciation and amortization expense

Adjusted earnings before interest and taxes (“Adjusted EBIT”) excludes

certain adjustments from Net profit from continuing operations including

gains/(losses) on the disposal of investments, restructuring, impairments,

asset write-offs and unusual income/(expenses) that are considered rare or

discrete events that are infrequent in nature, and also excludes Net

financial expenses and Tax expense/(benefit)

Adjusted net profit is calculated as Net profit from continuing operations

excluding post-tax impacts of the same items excluded from Adjusted EBIT,

as well as financial income/(expenses) and tax income/(expenses)

considered rare or discrete events that are infrequent in nature

Adjusted diluted EPS is calculated by adjusting Diluted EPS from continuing

operations for the impact per share of the same items excluded from

Adjusted net profit

Industrial free cash flows is calculated as Cash flows from operating

activities less: cash flows from operating activities from discontinued

operations; cash flows from operating activities related to financial

services, net of eliminations; investments in property, plant and equipment

and intangible assets for industrial activities; adjusted for net intercompany

payments between continuing operations and discontinued operations;

and adjusted for discretionary pension contributions in excess of those

required by the pension plans, net of tax. The timing of Industrial free cash

flows may be affected by the timing of monetization of receivables and

the payment of accounts payable, as well as changes in other

components of working capital, which can vary from period to period due

to, among other things, cash management initiatives and other factors,

some of which may be outside of the Group’s control.

Q2 2019 RESULTS |July 31, 2019 18

K E Y C O M M E R C I A L M E T R I C S

1,245

83

726

277

1,287

117

822

275

COMBINED SALES

MARKET SHARE (1) 12.0% 12.2%

YTD INDUSTRY (1)

(2019 vs. 2018) - 2%

0.5% 0.7%

- 7%

6.8% 7.5%

- 3%

13.7% 12.7%

- 7%

NORTH AMERICA LATIN AMERICAASIA PACIFICEUROPE, MIDDLE EAST & AFRICA

(1) Industry and market share data reflect the following:

• Asia Pacific reflects aggregate for major markets where Group competes (China, Australia, Japan, South Korea and India); market share is based on retail registrations, except in India where market share is based on wholesale volumes, as well as management’s estimates of industry sales data, which use certain data provided by third party sources. Effective Jan 2019, industry data sourced from China Passenger Car Association.

• Europe, Middle East & Africa reflects aggregate for EU 28 + EFTA markets only and is derived from a combination of passenger car information from European Automobile Manufacturers Association (ACEA) Registration Databases and internal information on LCVs

YTD 2018

YTD 2019

000 units

Q2 2019 RESULTS |July 31, 2019 19

SIX MONTHS ENDED JUN 30

RESULTS FROM CONTINUING OPERATIONS

THREE MONTHS ENDED JUN 30

2019 2018 2019 2018

2,194 2,505 COMBINED SHIPMENTS (1) (000 units) 1,157 1,301

2,128 2,401 CONSOLIDATED SHIPMENTS (1) (000 units) 1,128 1,250

51,222 53,344 NET REVENUES 26,741 27,611

2,594 3,035 ADJUSTED EBIT* 1,527 1,534

116 151 OF WHICH RESULT FROM INVESTMENTS 58 69

5.1% 5.7% ADJUSTED EBIT MARGIN 5.7% 5.6%

504 552 NET FINANCIAL EXPENSES 260 265

1,830 2,236 PROFIT BEFORE TAXES 1,110 1,071

529 591 TAX EXPENSE 317 377

1,301 1,645 NET PROFIT 793 694

1,498 1,872 ADJUSTED NET PROFIT* 928 909

0.83 1.05 DILUTED EPS (€) 0.50 0.44

0.96 1.19 ADJUSTED DILUTED EPS* (€) 0.59 0.58

484 2,509 INDUSTRIAL FREE CASH FLOWS* 754 1,499

K E Y P E R F O R M A N C E M E T R I C S

(1) Combined shipments include shipments by the Group's consolidated subsidiaries and unconsolidated joint ventures, whereas consolidated shipments only include shipments by the Group's consolidated subsidiaries

* Refer to definitions of supplemental financial measures and reconciliations to applicable IFRS metrics included herein

€ million, except as otherwise stated

Q2 2019 RESULTS |July 31, 2019 20

Y T D 2 0 1 9 A D J U S T E D E B I T * WA L K


3,035

2,594

5.7%5.1%

YTD ‘18 Volume & Mix Net Price Industrial Costs SG&A Other YTD ‘19

€ million% = Adjusted EBIT margin

Q2 2019 RESULTS |July 31, 2019 21

Y T D 2 0 1 9 I N D U S T R I A L F R E E C A S H F L O WS *

∆ VS. YTD 2018 (536) (901) 640 (1,546) 318 (2,025)

€ million

484

Adjusted

Industrial

EBITDA

CapexWorking

Capital

Changes in

Provisions

& Other

Financial

Charges

& Taxes (1)

Industrial

Free Cash

Flows

(1) Net of IAS 19


Q2 2019 RESULTS |July 31, 2019 22

K E Y F I N A N C I A L M E T R I C S *

5.6%6.8% 6.2%

4.4%5.7%

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

1,534

1,872 1,831

1,067

1,527

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

0.58

0.86 0.94

0.36

0.59

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

1,499

(98)

2,037

(270)

754

Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19

ADJUSTED EBIT € million

ADJUSTED EBIT MARGIN

ADJUSTED DILUTED EPS €

INDUSTRIAL FREE CASH FLOWS € million



Q2 2019 RESULTS |July 31, 2019 23

2,613 2,609

N O R T H A M E R I C A

YTD ‘18 Volume & Mix

Net Price

Industrial Costs

SG&A Other YTD ‘19



7.7% 7.7%

1,152

1,322

YTD '19 YTD '18


33.7 34.0

YTD '19 YTD '18


39 3935

70

YTD '19 YTD '18

Consolidated

JV 1.41.3

YTD '19 YTD '18


(88)

(21)

Volume & Mix

Net Price

Industrial Costs

SG&A Other



(6.9)%

(1.6)%

A S I A P A C I F I C

YTD ‘18 YTD ‘19

74109


Q2 2019 RESULTS |July 31, 2019 24

370

3

E U R O P E , M I D D L E E A S T & A F R I C A

Volume & Mix

Net Price

Industrial Costs

SG&A Other



3.1%

0.0%

10.612.0

YTD '19 YTD '18


268282

YTD '19 YTD '18


4.0 4.0

YTD '19 YTD '18


175215

Volume & Mix

Net Price

Industrial Costs

SG&A Other



4.4%5.4%

L A T I N A M E R I C A

YTD ‘18 YTD ‘19 YTD ‘18 YTD ‘19

659741

31

34

YTD '19 YTD '18

ConsolidatedJV

690

775


Q2 2019 RESULTS |July 31, 2019 25

€ million, except as otherwise stated YTD 2019 YTD 2018

SALES (000 units) 13.5 18.0 - 25%

SHIPMENTS (000 units) 9.7 17.2 - 44%

NET REVENUES 814 1,322 - 38%

ADJUSTED EBIT (108) 88 n.m.

ADJUSTED EBIT MARGIN (13.3)% 6.7% n.m.

Q2 2019 RESULTS |July 31, 2019 26

R E C O N C I L I A T I O N O F N E T P R O F I T T O A D J U S T E D E B I T

Q2 2019 Adjusted EBIT excludes adjustments primarily related to:

(1) Impairment expense primarily related to Maserati and North America

S IX MONTHS ENDED


THREE MONTHS ENDED

JUN 30

2019

JUN 30

2018

JUN 30 2019

MAR 31 2019

DEC 312018

SEP 302018

JUN 302018

1,301 1,645 NET PROFIT FROM CONTINUING OPERATIONS 793 508 1,171 514 694

529 591 TAX EXPENSE/(BENEFIT) 317 212 (90) 277 377

504 552 NET FINANCIAL EXPENSES 260 244 255 249 265

ADJUSTMENTS:

196 2 RESTRUCTURING COSTS, NET OF REVERSALS (8) 204 77 24 1

155 164 IMPAIRMENT EXPENSE AND SUPPLIER OBLIGATIONS (1) 113 42 189 – 164

(164) – BRAZILIAN INDIRECT TAX – REVERSAL OF LIABILITY/RECOGNITION OF CREDITS – (164) (25) (47) –

(7) – GAINS ON DISPOSAL OF INVESTMENTS (7) – – – –

– (43) COSTS FOR RECALL, NET OF RECOVERY – AIRBAG INFLATORS – – 160 (3) (43)

– – PORT OF SAVONA (ITALY) FLOOD AND FIRE – – 43 – –

– – CHARGE FOR U.S. DIESEL EMISSIONS MATTERS – – 35 713 –

– 78 EMPLOYEE BENEFITS SETTLEMENT LOSSES – – 14 – 78

– – NORTH AMERICA CAPACITY REALIGNMENT – – (60) – –

– – CHINA INVENTORY IMPAIRMENT – – – 129 –

– (63) RECOVERY OF COSTS FOR RECALL – CONTESTED WITH SUPPLIER – – – 13 –

– 111 U.S. SPECIAL BONUS PAYMENT – – – – –

80 (2) OTHER 59 21 62 3 (2)

260 247 TOTAL ADJUSTMENTS – CONTINUING OPERATIONS 157 103 495 832 198

2,594 3,035 ADJUSTED EBIT 1,527 1,067 1,831 1,872 1,534

€ million

Q2 2019 RESULTS |July 31, 2019 27

SIX MONTHS ENDED

NET PROFIT TO ADJUSTED NET PROFIT

THREE MONTHS ENDED

JUN 30

2019

MAR 31 2019

DEC 31

2018

SEP 30

2018

JUN 30

2018

JUN 30

2019

JUN 30

2018

5,271 1,775 NET PROFIT (including Magneti Marelli results and net gain on disposal) 4,652 619 1,293 564 754

3,970 130 LESS: NET PROFIT – DISCONTINUED OPERATIONS 3,859 111 122 50 60

3,809 – OF WHICH GAIN ON COMPLETION OF MAGNETI MARELLI SALE, NET OF TAXES 3,809 – – – –

161 130 OF WHICH NET PROFIT MAGNETI MARELLI (1) 50 111 122 50 60

1,301 1,645 NET PROFIT FROM CONTINUING OPERATIONS 793 508 1,171 514 694

260 247 TOTAL ADJUSTMENTS – CONTINUING OPERATIONS (per Page 26) 157 103 495 832 198

(63) 6 TAX IMPACT ON ADJUSTMENTS (2) (22) (41) (128) (3) 17

– (26) IMPACT OF DEC 2017 U.S. TAX REFORM – – (46) – –

197 227 TOTAL ADJUSTMENTS, NET OF TAXES 135 62 321 829 215

1,498 1,872 ADJUSTED NET PROFIT 928 570 1,492 1,343 909

R E C O N C I L I A T I O N O F N E T P R O F I T T O A D J U S T E D N E T P R O F I T A N D D I L U T E D E P S T O A D J U S T E D D I L U T E D E P S

DILUTED EPS TO ADJUSTED DILUTED EPS

0.83 1.05 DILUTED EPS FROM CONTINUING OPERATIONS 0.50 0.32 0.74 0.33 0.44

0.13 0.14 IMPACT OF ADJUSTMENTS, NET OF TAXES, ON DILUTED EPS 0.09 0.04 0.20 0.53 0.14

0.96 1.19 ADJUSTED DILUTED EPS 0.59 0.36 0.94 0.86 0.58

1,570,303 1,567,360 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING FOR DILUTED EPS (000) 1,570,180 1,569,868 1,568,312 1,568,788 1,568,497

(1) Reflects results of Magneti Marelli for each respective period up to the completion of the sale transaction on May 2 2019

(2) Reflects tax impact on adjustments excluded from Adjusted EBIT noted on Page 26

€/share

€ million

Q2 2019 RESULTS |July 31, 2019 28

R E C O N C I L I A T I O N O F C A S H F L O WS F R O M O P E R A T I N G A C T I V I T I E S T O I N D U S T R I A L F R E E C A S H F L O WS

SIX MONTHS ENDED THREE MONTHS ENDED

JUN 30

2019

JUN 30

2018

JUN 30

2019

MAR 31 2019

DEC 31

2018

SEP 30

2018

JUN 30

2018

3,751 5,184 CASH FLOWS FROM OPERATING ACTIVITIES 3,052 699 3,985 779 2,836

(308) 362LESS: CASH FLOWS FROM OPERATING ACTIVITIES –DISCONTINUED OPERATIONS

63 (371) 144 (22) 227

4,059 4,822CASH FLOWS FROM OPERATING ACTIVITIES –CONTINUING OPERATIONS

2,989 1,070 3,841 801 2,609

46 35LESS: OPERATING ACTIVITIES NOT ATTRIBUTABLE TO INDUSTRIAL ACTIVITIES

17 29 8 16 19

3,329 2,428 LESS: CAPITAL EXPENDITURES FOR INDUSTRIAL ACTIVITIES 1,953 1,376 1,605 1,356 1,174

(200) 150ADD: NET INTERCOMPANY PAYMENTS BETWEEN CONTINUING OPERATIONS AND DISCONTINUED OPERATIONS

(265) 65 (75) (121) 83

– – ADD: DISCRETIONARY PENSION CONTRIBUTION, NET OF TAX – – (116) 594 –

484 2,509 INDUSTRIAL FREE CASH FLOWS 754 (270) 2,037 (98) 1,499

€ million

Q2 2019 RESULTS |July 31, 2019 29

OUTSTANDING

JUN 30 2019CONTINUING OPERATIONS 6M 2019 2020 2021 2022 2023 BEYOND

4.5 BANK DEBT 2.0 0.8 0.4 0.7 0.2 0.2

8.2 CAPITAL MARKETS DEBT 1.7 1.4 1.1 1.4 1.3 1.3

0.4 OTHER DEBT 0.4 0.0 0.0 0.0 0.0 0.0

1.6 LEASE LIABILITIES (1) 0.2 0.3 0.2 0.2 0.1 0.6

14.7 TOTAL CASH MATURITIES (2) 4.3 2.5 1.7 2.2 1.7 2.1

15.8 CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES

7.7 UNDRAWN COMMITTED CREDIT LINES

–CASH, CASH EQUIVALENTS AND CURRENT DEBT SECURITIES INCLUDED WITHIN ASSETS HELD FOR SALE

23.5 TOTAL AVAILABLE LIQUIDITY

D E B T M A T U R I T Y S C H E D U L E

(1) Includes effects of adoption of IFRS 16, which resulted in a €1.1 billion increase in Lease liabilities (excluding Magneti Marelli) as of Jan 1 2019. Finance leases previously included in Other debt have

been reclassified to Lease liabilities.

(2) Excludes accruals and asset backed financing of €0.3B at Jun 30 2019

Figures may not add due to rounding

€ billion

Q2 2019 RESULTS |July 31, 2019 30

SIX MONTHS ENDED JUN 30

RESEARCH AND DEVELOPMENT COSTS – CONTINUING OPERATIONS

THREE MONTHS ENDED JUN 30

2019 2018 2019 2018

632 740 RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 322 339

696 738 AMORTIZATION OF CAPITALIZED DEVELOPMENT EXPENDITURES 349 356

127 66 IMPAIRMENT AND WRITE-OFF OF CAPITALIZED DEVELOPMENT EXPENDITURES 111 66

1,455 1,544 TOTAL RESEARCH AND DEVELOPMENT COSTS 782 761

R E S E A R C H A N D D E VE L O P M E N T C O S T S A N D E X P E N D I T U R E S

RESEARCH AND DEVELOPMENT EXPENDITURES – CONTINUING OPERATIONS

1,249 906 CAPITALIZED DEVELOPMENT EXPENDITURES 644 486

632 740 RESEARCH AND DEVELOPMENT EXPENDITURES EXPENSED 322 339

1,881 1,646 TOTAL RESEARCH AND DEVELOPMENT EXPENDITURES 966 825

€ million

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