Fiat post-demerger

0November 12, 2010

Investment highlights

New global strategic and operating paradigm with Chrysler

Drives growth and profitability worldwideDrives growth and profitability worldwide

FGA poised for market share gains in recovering European market

34 new models introduced and 17 major product actions in the 5-year plan

Chrysler transformation underway and ahead of plan

Full benefits from synergies with FGA yet to come

10 new products launched in the next 2 months completing 75% of vehicle renewal in 2010;

100% to be renewed by 2012

Widening margins and accelerating growth for Ferrari and Maserati

Demerger provides unprecedented flexibility to pursue growth opportunities

Disciplined, global, well capitalized industry leadergenerating consistent profitability

November, 12 2010 1

generating consistent profitability

Key strengths

World class, globally recognized brands

Market leading LCV business

Unique iconic position of Ferrari & Maserati

Best-in-class in engineering and design capabilities, with leadership in eco-friendly

technology

Excellence in powertrain and high value-added components business

Experienced and focused management team with proven track record

Deep expertise in sales, design, engineering and manufacturing

Strong operational alignment between FGA and Chrysler management teams

Strong liquidity profile and platform for growth

100+ years heritage of engineering, design d i ti l d hi

November, 12 2010 2

and innovation leadership

Track record of success at FGA

Revenues and trading margin evolutionSound volume growth

25

30

Trading margin (4.2)% (1.4)% 1.2% 3.0% 2.6% 1.8%

Revenues and trading margin evolutionSequential year-over-year market

share gains in Europe until 2009

All brands repositioned in most EU

countries (Fiat brand the most solid

19.5

23.7

19.7

26.8 26.9 26.3

15

20

25

1,500(€bn)

countries (Fiat brand the most solid

and Alfa Romeo requiring significant

additional work)

Closed the gaps in EU dealers

5

10

15

470

691803

500

1,000

,

Net

rev

enues

ofit

(€m

n)

Closed the gaps in EU dealers

network a year ahead of plan

CO2 emissions leadership

Strengthened position for LCVs in EU

0

470

291

-281-500

0

Tra

din

g p

ro

Strengthened position for LCVs in EU

Progression in architecture

convergence and components

standardization as planned

-822-1,000

‘07 ’09‘08‘04 ‘06‘05

Time-to-market from design freeze

now best-in-class

Y-o-Y record-breaking sales in a

November, 12 2010 3

booming Brazilian market

The Chrysler integration – a game changing strategic transformationstrategic transformation

++

1. Achieving critical mass target: 6 million cars by 2014

2. Optimal capital allocation and improved capacity utilization through product portfolio integration

3. Greater geographic penetration: North America for Fiat and Europe / Latin America for 3. Greater geographic penetration: North America for Fiat and Europe / Latin America for Chrysler

4. Significant cost synergies particularly in purchasing and engineering, targeting ~€1.5 billion of cumulative savings through 2014

5. Sharing of best practices in the area of WCM, engineering & design, quality and management

November, 12 2010 4

Scale advantages of a new global player without merger integration risks

Complementary integrated architecture and product strategy

Segment

product strategy

Fiat and Chrysler each to Segment architecture

LCVs

Fiat and Chrysler each to

focus on their core strengths

Maximize architecture

convergence and components Mini

Small

convergence and components

standardization

Fiat to move from 11 to 5

architectures by 2014

Compact

a c tectu es by 0

The 3 main architectures

expected to exceed 1mn

units each by 2014

MPV

Large

Architecture origin

y

SUV

Pick-up

Fiat Group

November, 12 2010 5

Chrysler Group

Extensive product launches support forecast volume gains in Europe

2010 2011 2012 2013 2014

gains in Europe

34 new models (13 of which produced in NAFTA)17 major product interventions

Ch l Fi t

PRODUCT ACTIONS

M j

NEW MODEL PRODUCED BY

November, 12 2010 6

Chrysler Group

Fiat Group

Major modification

Sharing technology and know-how

Small displacement engine with MultiAir technology

0.9L – 1.4L 16v

Diesel MultiJet II engine with High Pressure Common Rail technology

1.3L – 2.0L

Pentastar V6 Engine3.0L - 3.6L V6 24v

World Gas Engine 2.0-2.4L 16v

Cost Effective and Fuel Efficient

L4 and V6 gasoline engines

Reduced research and development cost

Turbocharging with Direct Injection 1 8L 16v

Planetary automatic transmission with wide gear spread

Reduced component and system cost due to economies of scale

1.8L 16v

Dual Dry Clutch Transmission

Reduced investment in manufacturing facilities

Broader technology

Off-road capability, Driveline disconnect

y6/7-speed

Alternative Fuels

Broader technology portfolio

Reduced complexityElectrification/hybridization

Alternative FuelsCNG, LPG…

November, 12 2010 7

Leveraging each companies’ core strengths

Strong position for LCV in EuropeEU27+EFTA

10.3% 10.9% 11.7% 12.3% 12.8%

EU27+EFTA

2 42.1 2.2 2.4

2.2

1.5

2005 2006 2007 2008 2009Industry (mn units) Fiat Professional market share

2009 ranking

14.2%12.8% 12.3%

11.1% 10.7% 10.3%8 5%

The most updated and complete product offerings of any EU producer

8.5%

5.1%

Renault FiatProfessional

VW Citroen Ford Europe Peugeot Mercedes GM Europe

Strong distribution network

November, 12 2010 8

o ess o a

Long-standing leadership position in the fast growing Latin American market

98.4%

growing Latin American market

Market leader in Brazil for 8 years

Market success factors:

Fiat perceived as a “domestic”, modern and

77.1%

innovative brand

Popular products

Anticipate market trends

TOP4

Industrial success factors:

Expansive dealer network

Cost efficient supply chain24 5%

Highly versatile and flexible manufacturing footprint

Significant barriers to entry to replicate Fiat’s market position

15.2%

24.5%

market position

Brazil provides platform for growth throughout Latin America

9892 94 009690 02 04 06 08 09

November, 12 2010 9

Enablers in place to further expand emerging markets footprint

A 50-50 JV signed early 2010 with Guangzhou Automobile Group (GAC) for production of cars and enginesM l t it t 330k hi l t t d t t

markets footprint

Max. plant capacity at 330k vehicles per annum at steady stateFocus on C, D and SUV segments (representing approx. 80% of the local market in 2014), leveraging the iconic Jeep brandTarget: ~300K units by 2014 and 2% market share

A global alliance established with Sollers through a 50-50 JV for production and distribution of passengers cars and SUVs branded Fiat and Chrysler Group

Initial expandable production capacity at ~300k vehicles/yearA minimum of 10% of produced vehicles to be shipped to export marketsA minimum of 10% of produced vehicles to be shipped to export markets

Focus on B, C, D and SUV segments (representing approx. 70% of the local market in 2014), leveraging the iconic Jeep brandTarget: ~280K units by 2014 (~230K passenger cars) and 7% market share

A 50/50 JV with Tata Motors established in 2007 for production and sale of Fiat branded vehicles, FPT engines & transmissions for both local market and exportFocus on B and C segments (representing approx. 75% of the local market in 2014)Target: ~130K units by 2014 and 5% market share

~€3.3bn overall investments in R&D and Capex jointly funded with JV partners over 2010-14 (~90+% without requiring financial support from Fiat except for

t h i l k h )

November, 12 2010 10

technical know-how)

Fiat Group AutomobilesReported sales by brand (Passenger Cars & LCVs)

Units millions

3.8Contract

Reported sales by brand (Passenger Cars & LCVs)

Units millions

2 7

3.4manufacturing

2.2

2.7

2.3

2.0

A

Units sold expected to reach 4 3mn in 2014 including JVs

November, 12 2010 11

Units sold expected to reach 4.3mn in 2014 including JVs

Ferrari & Maserati: positioning and key strengths

The Maserati DNA: long and proud racing heritage which continues today

The Trident brand as everlasting

Ferrari: a legendary brand since ’40

Inextricably linked to Ferrari’s success in Formula 1 (15 times g

symbol of luxury and aristocratic grace

World Champion since 1957)

Exploiting significant growth from emerging markets

Exclusive cars without equal

Successfully invested in reshaping the product portfolio

Quattroporte

GranTurismo

GranCabrio17 6%

Double digit profitability

Restructuring successfully completed

Turn to profitability in 2007 (first year since 1993)

T ti d bl di it fit bilit b d f l i d

12.2% 13.4%

17.6%15.9%

12.6%

0.0%

10.0%

20.0%

2005 2006 2007 2008 2009

Tra

din

g M

arg

in

Targeting double digit profitability by end of plan period

ad

ing

Marg

in

-6.4%

3.5%8.7%

2.5%

-15.9%-10.0%

0.0%

10.0%

November, 12 2010 12

Tra

-20.0%2005 2006 2007 2008 2009

Ferrari & Maserati: 2010-14 product plan and roadmaproadmap

2010-14 Product plan

Product differentiation: increase product differentiation to

2010-14 Product plan

New generation of Quattroporte

target a wider customer base

Product life cycle: ensure a life cycle of four years for all

new models followed by M version lasting another 4 years

d i k l h d l

Extend luxury market coverage by entering high-end E

segment

Maintain and sustain GranTurismo and GranCabrio products

Product renewing: keep launching a new model every year

to sustain turnover and reinforce brand

Special Series: selectively exploit Special Series to target

high end customers

in H segment

2010-14 Roadmap

Increase global market shares in all segments

G t f 3% t 8%2010-14 Roadmap

Continuing search for opportunities in emerging markets,

maintaining exclusivity in mature ones

G segment: from 3% to 8%

E segment: > 10%, in high-end

H segment: > 10%, maintaining current top 3 ranking

positionPersonalization, one-off program, spare parts and after sales

services improvement

Production efficiencies and fixed cost optimization

Further growth of Licensing, Retail & E-commerce and Ferrari

Dealer network improvement to support volume growth

Production efficiencies and fixed cost optimization

November, 12 2010 13

Further growth of Licensing, Retail & E commerce and Ferrari

Financial Services

FPT P&CV: excellence in powertrain

T h l i l l d

2009A Revenues: €3.4bn

Technology leadership as one of the most important players in the

Hydrogen propulsion

Theoretically, the cleanest option but no market impact in foreseeable future because of huge b i l t d t f l d ti di t ib ti

Technological landscape Technology leadership as one of the most important players in the world in the development of eco-friendly engines

Multiair, the revolutionary dynamic air flow control system, with ~1mn units/year expected by 2014

TwinAir is the greenest gasoline engine in the market

Dual Dry Clutch Transmission: the optimal solution for high barriers related to fuel production, distribution onboard storage and safety

Electric propulsion

In recent decades battery reliability improved significantly and energy content more than

Dual Dry Clutch Transmission: the optimal solution for high efficiency and comfort, raising overall production to ~1mn a yearCNG: Fiat’s technological leadership in Europe represent a key asset in foreseeable future development of US natural gas vehicle marketTetrafuel: a proprietary technology developed for Brazilian

li i il bl h i i i Fl F l h l g y gy

doubled but still nearly 10x lower than needed

Hybrid propulsion

Due to higher cost /CO2 reduction ratio, widespread use only when lower cost powertrain technologies are fully deployed (after 2020)

Non-captive revenues to grow from ~€0.3bn in 2009 to ~€1.6bn in 2014 ( f hi h 95% l d t t d)

applications available to enhance competitiveness in Flex-Fuel ethanol engines

Significant opportunities for non-captive sales development

technologies are fully deployed (after 2020), however in most simplified configuration

Natural Gas propulsion

Only realistic alternative to oil in foreseeable future, now developing from niche to mass

2014 (of which, 95% already contracted)

Provides economies of scale and more competitive cost, while shortening time-to-market

Technology and know-how sharing between Fiat and Chrysler

production in many markets worldwide

Internal combustion powertrain

Remaining predominant propulsion technology up to 2030, due to deployment of spark ignition breakthrough technologies over next decade

Aggressive JV strategy, especially focused in India, China and RussiaAdvanced R&D centers in strategic areas

Ready to fully capture the emerging market opportunities enhancing the worldwide footprint thanks to:

November, 12 2010 14

breakthrough technologies over next decadeWCM method deeply-rooted in all plants

High value added components business

2009A Revenues: €4.5bn2009A Revenues: €0.6bn

2009A Revenues Breakdown Revenues By Customer Group (OE + AM)

NonCaptive

€7.7bn

€4.9bn

60%

Worldwide leader in the production of iron-derived components

Improved capacity utilization as key driver of future profitability26%

ExhaustSystemsSuspension SystemsPlastic C. and M. Shock Captive

NonCaptive

2010E 2014E

56%

44%40%

key driver of future profitability

Significant growth expected from Mercosur & China

11%

18%

45%Shock AbsorbersAfter Market

2009A Revenues: €0.7bn

2010E 2014E

Leadership in Lighting, Electronics and Powertrain

Di t ti t Retain key role as technology Innovative global provider of advanced manufacturing systems

Roadmap to growth and enhanced profitability

Diverse automotive customer base

Strong backlog

Track record of growth and profitability

Retain key role as technology supplier to Fiat Group

Leverage Fiat – Chrysler platform integration

Position as key supplier to Chrysler

advanced manufacturing systems and robotized solutions

Revenue growth drivers mainly attributable to non-auto applications (+300% over plan period) and from Chi d I di ( 200% l

p y

Resilient business remained

profitable in 2009 despite industry

decline

Optimisation of global footprint and capacity utilisation

WCM efficiencies and cost opportunities from BCC sourcing

China and India (+200% over plan period)

Successful 2006-09 restructuring plan: Worldwide organization redesigned to adapt to highly

November, 12 2010 15

competitive and diverse market

Fiat post-demerger2010-14 financial targets2010-14 financial targets

(€ bn) 2010E 2011E 2012E 2013E 2014E

Revenues >32 37 45 57 64

% growth rate n.a. <15.6% 21.6% 26.7% 12.3%

Trading profit ~0.6 1.1 1.8 2.7 3.5

% margin ~1.7% 2.8% 4.0% 4.7% 5.5%

I d t i l EBITDA 2 9 3 6 4 7 6 0 6 9Industrial EBITDA 2.9 3.6 4.7 6.0 6.9

% margin n.a. 9.7% 10.4% 10.5% 10.8%

Capex 3.7 4.5 4.2 3.6 3.7

% of sales n a 12 2% 9 3% 6 3% 5 8%% of sales n.a. 12.2% 9.3% 6.3% 5.8%

November, 12 2010 16

Source: Fiat 2010–2014 Business Plan (mid-point of target range); Sep 16, 2010 EGM

Fiat post-demergerQ3 update and financial positionQ3 update and financial position

Pro-forma financial and liquidity position (1 January 2011)

(€ bn) Q3 ‘10 Sep YTD ‘10

Revenues 8.4 26.4

Industrial Activities

Net Industrial Debt €1 6 2 0 bTrading profit 0.3 0.8

% margin 3.0% 3.0%

Industrial EBITDA 0.8 2.4

Net Industrial Debt (consolidated)

Liquidity

€1.6-2.0 bn

~€10.0 bn

% margin 9.5% 9.0%

Capex 0.6 1.8

% of sales 7.2% 6.9% Financial Services

Bonds ~€9.0 bn

Net Ind. Debt (1.6) (1.6)

Net Debt Fin. Serv. (2.2) (2.2) Net Debt of Financial Services (consolidated)

R i bl f

~€1.5 bn

Receivables from financing activities ~€2.0 bn

November, 12 2010 17

From Chapter 11 to Chapter 1

Shareholders Structure(On a fully diluted basis)

• On June 10, 2009, substantially all operating assets and certain liabilities of Chrysler LLC (Old CarCo LLC) & its

8%UST

2% Canada

(On a fully diluted basis)subsidiaries were transferred to Chrysler Group LLC for consideration of $2B cash. Fiat contributes key technology & enters into alliance agreements

• Executed financial services term sheet whereby Ally Financial

35% Fiat

• Executed financial services term sheet whereby Ally Financial replaced Chrysler Financial in the US, Canada and Mexico

• Fiat contribution of strategic assets in return of initial 20% equity interest, to be increased to 35% over time upon

55% VEBA

35% Fiatequity interest, to be increased to 35% over time upon achievement of certain milestones

+5% Technology Event (1.4L Fire Engine Program); to be completed 1H 2011

+5% Non NAFTA Distribution Event (Int’l revenue and distribution+5% Non-NAFTA Distribution Event (Int l revenue and distribution targets); to be completed 2H2011

+5% Fuel Economy Event (40 MPG Chrysler C-Sedan off Fiat Platform); to be completed 2H 2011

• Chrysler Group LLC Board composed of 9 directors

4 appointed by UST

• Fiat call option on an additional 16% to be exercised in Jan 2013 - Jun 2016 timeframe

• Fiat cannot gain majority control of Chrysler until UST and C f

3 appointed by Fiat 

1 appointed by VEBA

1 by Canada  govt.

18

EDC loan had been fully repaid

2010‐2014 Business Plan MetricsAnnounced November 4, 2009

• Total units sold increase to 2.8mn in 2014 driven by 13% share of 14.5mn U.S. market plus International volumes of ~500k

• N t CAGR f 20% t h U S

($Billions) 20142010Revised

2011 2012 2013

N t R /1

• Net revenue CAGR of 20% to reach U.S.            $65‐70bn in 2014

• Average variable margin per unit stable through the plan with World Class M f i d h i i ~$42B ~ $52.5B ~ $57.5B ~ $62.5B ~ $67.5B

~$0.7B $1.6‐2.4B $3.0‐3.5B $3.8‐4.4B $4.7‐5.2B~1.7% 3.0 to 4.5% 5.2 to 6.0% 6.1 to 7.0% 7.0 to 7.7%

Net Revenue /1

Operating Profit

CAGR of 20% based on 2009

Manufacturing and purchasing savings partially offset by price erosion and negative segment mix

• Operating profit for 2010 revised upwards to $

% % % % %

~$0.5B $1B  $1B $1B $3BFree Cash Flow /2

~$700mn from break‐even, increasing to ~$5bn, or about 7% of net revenues by 2014 (total operating profit generation of ~$14bn over plan period)

$8B(as of 12/31/09)

$4BNet Debt /3

$4B Reduction

/1    Using Mid –Point Convention

DoE Debt $~2B

TARP Fully Repaid

• Net income break‐even in 2011, increasing to ~$3bn, or 5% of net revenues by 2014

• Product spending (R&D and Capex) averaging $4.5bn per year for a cumulative spending in 

/ g/2    Free cash flow after pension contributions and before debt changes/3    Change in net debt includes PIK interest accrued and paid as principal for ~$0.4B and accrued interest for VEBA / HCT trust and other 

for ~$0.6B. DoE loan application pending

the period of $23bn (Capex $15bn, in line with D&A)

• Operating cash flow positive from 2011 and generates ~$15bn in plan period

19

• TARP and EDC borrowing fully paid back by 2014; DoE debt* of ~$2bn at end of 2014

2010-14 Financial targetsFiat post-demerger and Chrysler Group pro-forma

(IFRS)CAGR 2010-14 = 12%

Fiat post-demerger and Chrysler Group pro-forma

Fiat post‐demerger Chrysler Group Eliminations

November, 12 2010 20

Fiat post demergerTrading margin range ‐ Low Trading margin range ‐ High

Chrysler Group EliminationsSource: Fiat 2010–2014 Business Plan

Safe Harbor Statement

Certain information included in this document is forward

looking and is subject to important risks and uncertainties

and uncertainties. Any forward-looking statements

contained in this document are referred to the current

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

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

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

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

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;

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

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;

Legislative Decree no. 58 of February 24, 1998, or in any

other country or state. The data related to Chrysler Group

LLC were independently prepared by Chrysler Group LLC

and, to the extent they are related to the data publicly

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

disclosed on November 4, 2009 and to other Chrysler

Group LLC documents, are subject to the disclaimers of

the presentation held on November 2009 and the forward

looking statements set forth therein are

November, 12 2010 21

exchange rates; political and civil unrest; and other risks herein incorporated by reference.

Contacts

Fiat Investor Relations teamFiat Investor Relations team

Marco Auriemma phone: +39-011-006-3290 Vice PresidentMarco Auriemma phone: +39 011 006 3290 Vice President

Federico Donati phone: +39-011-006-2756Alexandra Deschner phone: +39-011-006-2308Alexandra Deschner phone: +39 011 006 2308Maristella Borotto phone: +39-011-006-2709

fax: +39-011-006-3796email: investor.relations@fiatgroup.com

website: www.fiatgroup.com

November 12, 2010 22