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December 1, 2011
The American Contribution to Global Carco
Bank of America / Merrill Lynch Annual 2011 Leveraged Finance Conference
1December 1, 2011
This document contains forward ‐ lookingstatements that ref lect management's currentv iews with respect to future events . The words"ant ic ipate“, "assume“, "bel ieve“, "est imate“,"expect“ , " intend“, "may“, "plan“, "project" and"should" and simi lar express ions ident i fyforward ‐ looking statements. Such statementsare subject to r isks and uncerta int ies , inc luding,but not l imited to: the effect ive implementat ionof the Chrys ler Group 2010 – 2014 business planoutl ined on November 4, 2009, includingsuccessful vehic le launches; industry SAARlevels ; cont inued economic weakness, especia l lyin North America, including cont inued highunemployment levels and l imited avai lablef inancing for our dealers and consumers;introduct ion of competing products andcompetit ive pressures which may l imit ourabi l i ty to reduce sales incent ives ; supplydisrupt ions result ing from the natural disastersand other events impact ing our supply chain;and our abi l i ty to real i ze benef i ts f rom ourindustr ia l a l l iance with Fiat . I f any of these orother r isks and uncerta int ies occur, or i f the
assumptions underly ing any of these statementsprove incorrect , then actual results may bemater ia l ly di f ferent from those expressed orimpl ied by such statements. We do not intendor assume any obl igation to update any forward ‐looking statement, which speaks only as of thedate on which it is made, except as required bylaw. Further detai ls of potent ia l r isks anduncerta int ies that may affect Chrys ler Group aredescr ibed in Chrys ler ’s Form 10 f i l ings.
Information included herein regarding Fiat 'sfuture business plans, products or f inancia lperformance was provided by Fiat and is subjectto the r isks descr ibed under the heading "Riskand Uncertaint ies" on the Investor Relat ionspage of i ts web si te : www.f iatspa.com. Theforward ‐ looking statements inc luded in thisinformation relate to events and depend oncircumstances that may or may not occur orexist in the future, and, as such, undue rel ianceshould not be placed on them. Information on,or access ib le through, the Company's website isnot a part of , and is not incorporated into thisdocument.
Forward‐Looking Statements
2December 1, 2011
One GroupOne Group
3December 1, 2011
From July 1st, 2012 until June 30th, 2016: Fiat has the option to purchase 40% of VEBA’s original interest in Chrysler Group. Option is exercisable not in excess of 20% of Covered Interest in any 6 month period. Before an IPO, exercise price is based on a market multiple not to exceed Fiat’s multiple applied to Chrysler Group reported LTM EBITDA less net industrial debt and following an IPO based on trading price of common stock
In addition to above option, under Equity Recapture Agreement: i) Fiat may purchase any remaining membership interest held by VEBA at a specified threshold ($4.25bn plus 9% p.a. compounded annually from Jan 1, 2010), and ii) Fiat receives all proceeds from Chrysler Group ownership interest held by VEBA over the above threshold (and once such threshold is reached, any remaining shares are turned over to holder)
Creation of a Global AutomakerMilestones in the Integration of Fiat & Chrysler Group
2009June: 20% initial
ownership interest in Chrysler Group LLC
2011January: achievement of 1st Performance
Event by Chrysler Group
April: achievement of 2nd Performance Event by Chrysler Group
May: exercise of Incremental Equity Call Option by Fiat
July: purchase of ownership interest in Chrysler Group from UST and Canada by Fiat plus UST rights under Equity Recapture Agreement
By year-end: expected achievement of 3rd
Performance Event, moving Fiat’s interest in Chrysler Group up to 58.5% from current 53.5%
VEBA 41.5% FIAT
58.5%
Chrysler Group pro‐forma shareholder structure(on a fully diluted basis)
4December 1, 2011
Established One Leadership TeamGlobal Executive Council
CHIEFOPERATING
OFFICERS
BRANDLEADERS
INDUSTRIALPROCESSLEADERS
CEO
SergioMarchionne
SUPPORT/ CORPORATE
LEADERS
EMEAGianni Coda
NAFTASergio Marchionne
LATAMCledorvino Belini
APACMichael Manley
Parts& Service
(Mopar)Pietro Gorlier
Systems& Castings
(Comau & Teksid)Riccardo Tarantini
Components(Magneti Marelli)
Eugenio Razelli
DesignLorenzo Ramaciotti
GroupPurchasing
Vilmar FistarolQualityDoug Betts
ProductPortfolio
ManagementMark Chernoby
PowertrainCoordinator
Bob Lee
ChiefManufacturing
OfficerStefan Ketter
ChiefTechnology
OfficerHarald Wester
BusinessDevelopment
Alfredo Altavilla
ChiefHuman
ResourceOfficer
Linda Knoll
ChiefFinancial
OfficerRichard Palmer
JeepMichael Manley
FiatOlivier François
ChiefMarketing
OfficerOlivier François
CommercialVehicles
Lorenzo Sistino
AlfaRomeoAbarth
MaseratiHarald Wester
LanciaChrysler
Saad ChehabDodge
Reid Bigland
Fiat Services& HoldingsAlessandro Baldi
5December 1, 2011
Operational MomentumOperational Momentum
6December 1, 2011
State of the Company at June 2009 and Challenges Ahead
A Solid Foundation...
Brands with strong heritage in North America, Jeep globally recognized
US distribution network re‐sized
Complementary partnership with Fiat established
Experienced and talented workforce
Competitive labor rates and significantly restructured OPEB liabilities
Sufficient liquidity to launch a credible business plan with speed being of the essence
...but Several Key Challenges Ahead
Regain customer trust and confidence, reduce reliance on high incentives• Reverse slide in market share• Refresh aged product line‐up• Develop competitive, brand‐relevant focused vehicles and complete C‐ & D‐segment offerings
• Close gap in quality and reliability vs competition• Focus on more fuel‐efficient product portfolio
Streamline development processes, drive architecture convergence with Fiat
Improve manufacturing infrastructure and empower workforce
Reconstruct supply base and converge with Fiat
Develop International distribution leveraging Jeep and Fiat brands
Rebuilding Brand Equity
7December 1, 2011
8.0
9.6
11.4
11.3
12.8
14.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Chrysler Group Gaining Market Share in U.S. and Canada19 consecutive months of U.S. year‐over‐year increases
17%
27%
17%
18%
-3%
8%
1%
8%11%
8%
23%
13%
31%23%
10%
30%
20%
31%27% 27%
58%
71%
36% 37%
27%
46%
33%
42%
50%
40%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan Feb Mar Apr May Jun Jul Aug Sept Oct
CG US Retail Only Sales
CG U.S. Total Sales
U.S. Industry
Year‐over‐year sales growth in the U.S. is outpacing the industry
MARKET SHARE(%)
2010 20112009
U.S.Q3 2011 share at 11.4%, up 1.8 ppt vs. a year ago and 3.4 ppt compared to a low point of 8.0% in Q3 2009
Six consecutive quarterly year-over-year share gainsFleet mix at 26%, down from 34%
Steady increase in market share primarily resulting from momentum of 16 new and significantly refreshed products
All-new Jeep Grand Cherokee, new Chrysler 200 and Dodge Durango continue to boost sales
Canada
Share steadily increased from 2009 lowsQ3 2011 share at 14.5%, up 1.7 ppt vs. a year ago
Retail sales (excluding fleet) increased 10%Retail of retail market share* increased to 13.4%, up 1.6 ppt
2011
YEAR-OVER-YEAR SALESCHANGE (%)
* - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)
8December 1, 2011
A/B SEGMENT
C SEGMENT
D SEGMENT
E SEGMENT
Up58%
Up309%
Up27%
Up13%
Up101%
F TRUCK
Charger Challenger DurangoGrand CaravanJourneyAvenger
Up34%
Up11%
Up79%
Up9%
New29K
Dn13%
Up71%
New44K
Up4%
Town & Country300200
Chassis Cab
Up97%
500 & Convertible
New11K
The 16 New and Significantly Refreshed Product Driving Sales in all Segments October YTD 2011 U.S. retail only sales versus October YTD 2010
The new Dodge C‐Sedan coming in H1 2012 will fill a void in the largest worldwide segment
Up49%
Up39%
Up53%
Up18%
New11K
9December 1, 2011
New C‐ and D‐Segment Entries – Heart of the Market
10
23 26
Q1 Q2 Q3
200 & Convertible C‐Sedan(launching H1 2012)
• All‐new interior with world‐class craftsmanship; new exterior design
• High fuel economy standards compared to segment average (Hwy 29/31 for V6/I4 engines, respectively)
• “Top Safety Pick for 2011” by the Insurance Institute for Highway Safety
• Named “2012 Motor Trend’s Car of the Year Contender”• Award‐winning “Imported from Detroit” campaign• 2011 Sales (000’s):
“Marchionne insisted the 200 had to be remade and Chrysler’s engineers responded to the challenge. The car was given a complete makeover inside and out. The results were impressive.“
• Dodge is entering the largest retail segment in the U.S. with a vehicle from the combined Fiat‐Chrysler Compact architecture
• Mid‐size roominess with compact car fuel economy at a compact car price
• Includes the segment’s most powerful lineup of engines
• Hundreds of ways to customize from the factory• Best‐in‐class technology and safety
The ultimate blend of power, performance, fuel economy and style
10December 1, 2011
Investments in Quality Proving Successful
• Warranty claims down 58% since their peak• Lowest warranty rate in our corporate history
• Warranty impact of launch and quality spikes reduced by more than 70%
Respondents likely to recommend brand to friend/colleague improved by 48% over the last 2
years
Other Achievements:• Favorable new model reviews from key opinion makers boosting perceived quality
Eight “Best Buys” from Consumers Digest (Chrysler 300, Town & Country, Jeep Grand Cherokee, Dodge Durango, Grand Caravan, Challenger, Ram 1500 and Fiat 500)
• Third‐party awards total over 100 in 2011, to‐date
2009 2010 2011
WARRANTY CLAIM RATE(CONDITIONS) CUSTOMER PROMOTER SCORE
(@ YEAR 3 OF OWNERSHIP)
11December 1, 2011
New Powertrains Leading to Improved Performance and Fuel Economy
• First NAFTA OEM implementation of 8‐speed transmission technology; to be followed by 9‐speed transmission in 2013
• Provides 8‐12% increase in EPA Combined Fuel Economy for Chrysler’s RWD V6, V8 and small Turbo Diesel applications (vs. 5‐speed transmission); and reduces CO2 emissions
• Delivers improved performance and shift quality over conventional 5‐ and 6‐speed transmissions
• Will be available across Chrysler Group’s RWD product portfolio; first application with the 3.6L V‐6 Pentastar Dodge Charger and Chrysler 300 vehicles
8‐Speed RWD Transmission
Fuel Economy Improvement for Chrysler 300 and Dodge Charger
+ 10‐12%
2011 MY 2012 MY
• Extensive manufacturing base for FIRE engine: US‐Michigan, Brazil, India and Italy
• MultiAir add‐on package on base engine; shot‐by‐shot control of air / fast response continuously variable valve lift
• Up to 10% fuel economy improvement; strong reduction of HC/CO/NOxemissions
• Highly fuel‐efficient V6 engine family; first launched in 2011 Jeep Grand Cherokee
• Fuel efficiency improvement up to 10%• Flexible family architecture for downsized displacement, Direct Injection, Turbo Charging and MultiAir
• Produced in two state‐of‐the‐art manufacturing facilities in Trenton (US‐Michigan) and Saltillo (Mexico); ~1 million engines target per year
V6 Pentastar Engine Family
FIRE MultiAir Engine
VM Motori 2.8L & 3.0L Diesel Engines
• Applied to Chrysler Grand Voyager, Jeep Wrangler, Chrysler 300, Lancia Thema and Jeep Grand Cherokee in Europr
• 24% (Grand Voyager) and 27% (Thema) improved fuel consumption vs. 3.6L gas engine
• Meets Euro 5b emmissions; Biodiesel capable
12December 1, 2011
Improving Competitiveness Through Shared Architectures
Mini
Small
Compact
SUV
Minivan
Pick‐up
Large
LCVs
Segment
Chrysler Group
Origin of architectureMini Small Compact
1Munits
2010 2012E 2014E 2010 2012E 2014E 2010 2012E 2014E
Fiat Chrysler Group
The 3 main Group architectures expected to exceed 1M units each by 2014
Fiat
3 3
8
2
0
2
2010 2014
A/B-Segment
C/D-Segment
E-Segment
11
7 *
1 Fiat Based
2 Fiat Based
0 Fiat Based
Chrysler Architecture Plan
Over half of 2014 car volumes based on Fiat-derived architectures,with three architectures to achieve 1 million vehicles combined each
* Excludes Truck and Specialty
13December 1, 2011
Product Spending
Vehicle Engineering / ER&D (1)
Capital Spending
$Bil
1. ER&D includes expense for Product Design Office2. Since Company began operations in June 2009
Continued Product InvestmentsCapital expenditures and capacity utilization
2.4
4.24.5
5.6
4.2 4.0
Model BFiat
Model CChrysler Group
Cars developed on common architectures can be allocated to
same flexible manufacturing plant to optimize industrial costs, including supply
chain costs
Optimal allocation of production
Plant B
Model AFiat
Model AChrysler Group
Plant A
Capital investments are being made to enhance our product and expand the product line without adding brick and mortar capacity
Announced Plant Investments2:Sterling Heights Assembly Plant – New Body Shop $0.2 BSterling Heights Assembly & Stamping Plants 0.9Toledo Machining 0.1Toledo Assembly Complex 0.5Trenton North Engine Plant 0.1Kokomo transmission facilities 1.3Belvidere Assembly Plant 0.6Global Engine Manufacturing Alliance 0.3Other (including supplier tooling) 0.5
$4.5 B
73%
93%
49%
63%
0%
20%
40%
60%
80%
100%
2010A 2011 Fcst
Harbour definition = Two 8‐hour shifts @ 235 daysTechnical definition = 3 shifts in all plants (except Saltillo) @ 285 days)
% UtilizationCapacity Utilization
CG Production 1.6M 2.0M(excludes Purchased vehicles)
Harbour
Technical
14December 1, 2011
New 4‐Year UAW Labor Agreement Highlights – Ratified in OctoberWin‐Win for Chrysler Group and UAW
New plant and product investments
$4.5B in investments; 2,100 new entry‐level jobs
Gains for new hiresHighest maximum rate increases to $19.28 per hour by end of contract;
no cap on new hires
Ratification, Performance, and Quality / WCM Bonuses
Ratification bonus of $3,500, 50% delayed until a financial milestone is achieved; Performance and Quality bonuses total
$4,000 over the contract period with 100% upside potential
Simplified and transparent profit sharing formula
Based on 85% of reported worldwide Modified Operating Profit
Maintained overall labor cost
competitiveness with foreign transplants
~$51 / hour all‐in
New 4‐year national labor agreement with the UAW maintains Chrysler Group’s cost competitiveness and links variable compensation directly to company performance and product quality
No additional cost for traditional employee defined
benefit pension plansNew hire pension plan changed to a defined contribution plan; Legal
Services Plan eliminated after 2013
15December 1, 2011
Combined Purchasing Power due to Integration with Fiat
$31B$39B
$70B
$41B$45B
$86B
•Sourcing table• Joint sourcing development
• Working collaboratively with Fiat counterparts •Weekly synergy call
•Strategic project updates
• Combined procurement efforts total forecasted level of $86B in 2011 vs. $70B in 2010, nearly tripled from 2010 standalone amount
• Strong and collaborative integration with Fiat Group Purchasing, leveraging Chrysler Group, Fiat and Fiat Industrial
• Exchange program well established and benefiting team cohesion since Q1 2010
• Global leads for commodities and services have been established – 3 from Chrysler and 3 from Fiat
• Merged China office
• Joint commodity and supplier strategies in place for more than 90% of APV
• Establishing common approach to supplier relationship management
16December 1, 2011
202K
~500K*
141K 147K
215K+4%
+37%
*Forecast Includes vehicles produced by Chrysler for sale under Fiat brands
Plus: Additional Opportunities in Brazil, China and Russia
International growth driven by global Jeep brand
International Success and Future Volume Development
Dodge/Ram
Chrysler/Lancia
Jeep
Fiat
Europe East Eur, ME& Africa
Asia-Pacific
LatinAmerica
2010 2011
October YTD Sales Gains(International Markets)
(19)% +7%
+57%
+18%
• Europe – Italy and France achieving significant gains; Chrysler brand vehicles being integrated into Lancia brand
• EEMEA – Russia and South Africa achieving significant gains of 104% and 40%, respectively
• Asia‐Pacific – Strength in China and Australia (two largest markets for Chrysler) with YTD gains of 71% and 36%, respectively
• Latin America – YTD gains in all markets (except Venezuela)
17December 1, 2011
Driving Increased European Sales Performance
• Q3 2011 sales up 126% over same period prior year to ~2K units
• Grand Cherokee CYTD sales up 18% with ~ 4K units.
• Compass sales up +1,340% over Q3 2010 to ~2.5K units
• Compass CYTD sales up 430% over prior year to ~5K units
• Q3 2010 Wrangler sales up +59% over prior year to ~2K units
• Wrangler CYTD sales up 63% to ~6K units
17.432* total Jeep sales up 55% over Q3 CYTD 2010 Strong 2011 Q3 Jeep sales up 135% over same period prior year to ~7K* units
Key actions
• Diesel engine launch June 2011.
• New 3.0 CRD delivering 8.3 L/100 km combined - 20% reduction in CO2 emissions versus prior model
Key actions• Full availability of 2WD in Q3 - 40% mix
• Diesel powertrains introduced in 2011 with 6.3% improvement in CO2
Key action
• Diesel fuel consumption improved in 2011CY to 7.1 L/100 km combined with 15% improvement in CO2
* ACEA Source – Passenger car only – EU27 +EFTA
Wrangler & Wrangler Unlimited
Q3 YTD
+126%+18%
Compass
Q3 YTD
+1,340%
+430%
Q3 YTD
+59%
+63%Grand Cherokee
2011
2010
18December 1, 2011
• Jeep Grand Cherokee is the most awarded SUV ever, receiving over 30 awards from automotive journalist associations, print/on‐line/television media outlets and industry organizations
Recently voted “SUV of Texas” and the Overland Summit model won top honors in the Luxury SUV category by the Texas Auto Writers Association
• 3.6L Pentastar V‐6 engine delivers up to 23 MPG (highway) fuel efficiency and 550 mile driving range
• Jeep Grand Cherokee SRT8 available in the U.S.; to be available in Europe starting Q1 2012
• Sales increases in all markets (Q3 YTD 2011 versus Q3 YTD 2010) to 118k• U.S. + 78%• Canada + 86%• Mexico +101%• International + 73%
Grand CherokeeThe “Most Awarded SUV Ever”; worldwide sales success
Q1 Q2 Q3
2010 2011
Jeep Grand Cherokee Period-over-Period Worldwide Sales Gains
59%174%
47%
“The 2012 Grand Cherokee, with its well‐trimmed and roomier interior, powerful V6 and more refined performance and ride, is in fighting shape as a top contender among midsize SUVs.”
Edmunds.com
19December 1, 2011
300New model builds on history as most awarded new car ever
Q1 Q2 Q3
2010
2011
U.S. Sales
• First eight‐speed automatic transmission in a domestic, luxury sedan
• 3.6L Pentastar V‐6 engine with 292 horsepower
• Best‐in‐class highway fuel economy, with 31 mpg highway
• Best‐in‐class V‐6 AWD fuel economy, with 18 mpg city and 27 mpg highway
• World‐class interior takes domestic luxury to new level
• SRT8 version is the ultimate combination of world‐class luxury, power and handling
New “If You’re Gonna” advertisements link the 300 to “Imported from Detroit”
campaign
U.S. sales gaining momentum as vehicle availability increases since Q1 2011
(46)% +18%(24)%
20December 1, 2011
& Momentum is AcceleratingNew and improved products leading the charge for Dodge
Challenger SRT8 392 Yellow JacketChallenger SRT8 392 Yellow Jacket
Charger SRT8 Super BeeCharger SRT8 Super Bee
Dodge and SRT – A Perfect Match• Awe‐inspiring powertrains• Outstanding ride, handling and capability• Benchmark braking• Aggressive and functional exteriors• Race‐inspired and high‐performance interiors
– Street & Racing Technology– Street & Racing Technology
Recent Awards:• Dodge Charger named Automobile Magazine “All‐Star” for 2012• Dodge Durango named “Full‐Size SUV of Texas” by the Texas Auto Writers Association
and a “Top Safety Pick” for 2012 by the Insurance Institute for Highway Safety
Challenger
Dodge builds upon nearly 100 years of innovation, racing, and technology with design and value.
In the past year, Dodge has launched six all‐new or completely redesignedvehicles making Dodge one of the youngest dealer showrooms in the country. The result – Retail sales up 39% CYTD & countless new awards
Dodge LineupDodge Lineup
Charger
Town & CountryJourney
Avenger
Durango
21December 1, 2011
Truck SuccessNew versions contribute to share increases
• Designed for a young, value oriented customer
• Standard 5.7L HEMI V8 engine• 390 HP and 20 MPG
• Engineered for the cost conscious commercial customer• Standard 5.7L HEMI V‐8 engine• Tows up to 10,400 pounds ‐more than similar priced competitors
Ram 1500 ExpressRam 1500 Express
Ram Laramie LonghornRam Laramie Longhorn
Brand focus on Hispanic Market
New, fully integrated Hispanic campaign “A Todo Con Todo” launched in key markets
First‐ever Hispanic Mexican Regional music platform live 11/1 on Yahoo! ‐ “La Banda Ram”
Hispanic Brand website and Mobile Sites launched
Ram pickups continue to gain momentum in the marketplace with quarterly year‐over‐year gains during 2011
New versions driving share gains (versus 2010) in the Large Pickup segment
Mossy Oak EditionMossy Oak Edition• The ultimate truck for 65% of truck customers who hunt, camp, fish and boat
• Based on the successful Outdoorsman package
• The most luxurious Ram ever with a Western flair
• Highly crafted interior
Ram 3500 H.O. Cummins with Max TowRam 3500 H.O. Cummins with Max Tow• Proven Cummins engine with 800lb ft of torque • Best in Class 22,750 Trailer Tow Capability
Ram 1500 TradesmanRam 1500 Tradesman
• Ram partners with Mossy Oak – the top Camo brand in the US
Q1 Q2 Q3
2010 2011
Ram Pickup Period-over-Period U.S. Sales Gains
38%
23%18%
Segment share increase (period‐over‐period) +1.6 ppt +3.3 ppt +1.3 ppt
22December 1, 2011
Brand in U.S. and Canada
926
6,578
10,721
86
147
181
0
5,000
10,000
0
50
100
150
200
Q1 2011 Q2 2011 Q3 2011
Fiat Dealers(U.S. & Canada)
Fiat Brand Sales
(U.S. & Canada)Fiat 500 AbarthFiat 500 Abarth
• Introduced at the Los Angeles Auto Show• European racing traditions with world‐class performance and precision, purposeful and aggressive styling, and high power‐to‐weight ratio
• 1.4L MultiAir® Turbo engine
FIAT – Jennifer Lopez Advertising CampaignFIAT – Jennifer Lopez Advertising Campaign
The news about the Fiat 500 and Jennifer Lopez advertising campaign generated over 240
million overall media impressions
FIAT brand sales increasing in U.S. and Canada; dealers, new editions and marketing
campaigns continue to launch
Facts:• Fiat 500 and Fiat 500 Cabrio produced in Mexico• Run‐rate target of 45‐50K units annually• Abarth version coming in 2012• Named candidate for “2012 North America Car of the Year”• Named “Top Safety Pick for 2011”
23December 1, 2011
CommercialsCommercials
24December 1, 2011
Financial MomentumFinancial Momentum
25December 1, 2011
Financial HighlightsQ1 2010 – Q3 2011
Operating Profit break-even reduced to 1.5M vehicles 2
1. Excludes loss on extinguishment of debt of $551 million in Q2 20112. Breakeven estimates and implied U.S. SAAR are illustrative one‐time calculations that reflect estimates of sales volumes and structural costs; Structural costs are composed of plant and corporate
expenses, depreciation and amortization (excluding depreciation of equipment on operating leases), sales and marketing expenses and ER&D expensesNote – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items
(197) (172)(84)
(199)
116 181 212
143 183239 198
477 507 483
787 855
937 882
1,171 1,293
1,119
-400
-200
0
200
400
600
800
1,000
1,200
1,400
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
$ Millions
Modified EBITDA
Modified Operating Profit
Adjusted Net Income (Loss) 1
WorldwideShipments (000’s) 380 433 407 382 485 514 469
26December 1, 2011
Cash from Operations adding to Cash Balance2010‐2011 Y‐T‐D
Dec 31,2009
ModifiedEBITDA
WorkingCapital &Other
CapitalExpenditures
Pension /OPEB
Taxes &Interest
DebtProceeds Netof Payments
(1)
Dec 31,2010
ModifiedEBITDA
WorkingCapital &Other
CapitalExpenditures
Pension /OPEB
Taxes &Interest
DebtProceeds Netof Payments
(2)
Sept 30,2011
Change in Cash+$1.5
(0.5)
2.0
7.3(1.2)5.9
3.5
(2.4)
0.1
Free Cash Flow+$1.4
Note: Numbers may not add due to rounding1. Debt Proceeds Net of Payments include proceeds from the Mexican development banks credit facility of $0.4B partially offset by payments on the Supplier Receivables SPV loan ($0.1B), and Canadian HCT Notes
and other principal payments ($0.2B)2. Comprised of the New Term Loan for $3.0B, the new Secured Senior Notes for $3.2B, and the Incremental Equity Call Option from Fiat of ~$1.3B, all used to repay UST and EDC Governments’ Debt of $7.6B and
serve the Transaction Fees and Expenses for $0.2BNote – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items
Change in Cash+$2.1
Free Cash Flow+$2.0
$ Billions
(0.3)
1.8
(0.7)
3.6
(1.9)
(0.3)
9.5
27December 1, 2011
Cash and Gross / Net Industrial Debt 2010‐2011 Y‐T‐D
7,3677,841 8,260
7,347
9,87710,175
9,454
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011
3,825 3,3853,766 5,773
3,377 2,11211,192 11,226
12,026
13,120 13,25412,287
Addition of Mexico Development Banks
Loan
Addition of Canada Health Care Notes
Refinancing of Gov’t debt plus equity
proceeds from FiatGROSS
INDUSTRIAL DEBT
CASH
NET INDUSTRIAL
DEBT
$ Millions
2,868
12,322
Note – Financial results based on U.S. GAAP – see Non‐U.S. GAAP Financial Information and Other Items
28December 1, 2011
Gross Industrial Debt Maturity Schedule
Note: Excluding accrued and accreted interest
2011 2012 2013 2014 2015 2016+September 30, 2011 (Carrying Value)
0.4 0.4 0.5
10.8
0.20.0
Annual MaturitiesGross
Industrial Debt
$ Billions
0.1 0.2 0.4 0.5 0.5 11.5Face Value
13.2
12.3 1
1 Excludes Gold Key Lease (GKL) self‐liquidating debtNote: Numbers may not add due to rounding
29December 1, 2011
Management of Financial Matters between Fiat and Chrysler Group
• Chrysler Group and Fiat manage financial matters, including treasury services, separately
• Chrysler Group has no guarantee, support or similar obligations in relation to any Fiat financing obligations, nor does Chrysler Group have any obligation or commitment to provide funding to Fiat
• Financial segregation is also provided for by legally binding documentation
Agreements from Chrysler Group’s recapitalization transaction completed on May 24, 2011
Agreements referring to Chrysler Group’s recapitalization transaction also provides for significant limits on Chrysler Grop’s ability to provide financial support to Fiat, including limits on dividends that can be paid
Agreement from Fiat’s Revolving Credit Facility on Oct 13, 2011
Credit Agreement provides for relevant limits to ability of Fiat financially supporting Chrysler Group, including limits on guarantees and limits on financial loans
30December 1, 2011
2010Actual
2011Revised Guidance
2012 2013
Net Revenue
Modified Operating Profit &
Margin
Free Cash Flow
* Using mid‐point convention
Target met or exceeded
$42B >$55B ~ $57.5B* ~ $62.5B* ~ $67.5B*
$0.8B >2.0B $3.0‐3.5B $3.8‐4.4B $4.7‐5.2B1.8% 3.6% 5.2 to 6.0% 6.1 to 7.0% 7.0 to 7.7%
$1.4B >$1.2B(from >$1.0B)
$1B $1B $3B
2010‐14 Financial Targets from Nov 2009 Business Plan
‐‐‐‐‐‐‐‐Source: 4Q 2010 and 3Q 2011 Earnings Presentations, Chrysler Group 2010 – 2014 business plan outlined on November 4, 2009Note: The financial targets set forth for 2012‐2014 are from our November 2009 business plan and have not been updated. These targets are subject to a number of risks and
uncertainties, including those under the "Forward‐Looking Statements" slide. Accordingly, actual results may be materially different from those expressed above.
2014
31December 1, 2011
Contacts
Chrysler Investor Relations
Timothy Krause phone: 248‐512‐2923email: [email protected]
Fiat, Group Investor Relations
Marco Auriemma phone: +39‐011‐006‐3290email: [email protected]
Websites
www.chryslergroupllc.com
www.fiatspa.com
32December 1, 2011
Non‐U.S. GAAP Financial Information and Other Items
The following Non‐U.S. GAAP Financial definitions apply when the presentation is referring to Adjusted Net Income, ModifiedOperating Profit (Loss), Modified EBITDA, Cash, Free Cash Flow and Gross and Net Industrial Debt.
a) Adjusted Net Income is defined as Net Income excludingthe loss on extinguishment of debt in Q2 2011.
b) Modified Operating Profit (Loss) is computed startingwith net income (loss), and then adjusting the amountto (i) add back income tax expense and exclude incometax benefits, (ii) add back net interest expense(excluding interest expense related to financingactivities associated with a vehicle lease portfolio theCompany refers to as Gold Key Lease), (iii) add back allpension, other postretirement benefit obligations(“OPEB”) and other employee benefit costs other thanservice costs, (iv) add back restructuring expense andexclude restructuring income, (v) add back otherfinancial expense, (vi) add back losses and exclude gainsdue to cumulative change in accounting principles, and(vii) add back certain other costs, charges and expenses
c) Modified EBITDA is computed starting with net income(loss) adjusted to Modified Operating Profit (Loss) asdescribed above, and then adding back depreciationand amortization expense (excluding depreciation andamortization expense for vehicles held for lease)
d) Cash is defined as Cash, Cash Equivalents andMarketable Securities
e) Free Cash Flow is defined as cash flows from operatingand investing activities, excluding any debt relatedinvesting activities, adjusted for financing activitiesrelated to Gold Key Lease financing
f) Gross Industrial Debt is defined as total financialliabilities less Gold Key Lease financing obligations.Gold Key Lease financing obligations are primarilysatisfied out of collections from the underlyingsecuritized assets and out of collections from operatingleases and proceeds from the sale of leased vehicles.Net Industrial Debt is computed starting with GrossIndustrial Debt as described above, and deducting cash,cash equivalents and marketable securities