• Worldwide combined shipments(1) of 1,123 thousand units, substantially in line with prior year; Jeep combined shipments(1) up 3%
  • Net revenues of €26.8 billion, in line with Q3 2015
  • Adjusted EBIT increased 29% to €1,500 million, with improvement in all segments except LATAM; EBIT was €1,341 million as compared with €225 million in Q3 2015
  • Adjusted Net Profit increased overthree-fold to €740 million; Net Profit of €606 million, up €1.0 billion from prior year
  • Net industrial debt increased €1.0 billion from June 2016 mainly due to normal working capital seasonality
  • Market share in U.S. increased to 12.5%, up 30 bps, and in Europe to 6.1%, up 40 bps; remained market leader in Brazil with 18.6% market share

 

ADJUSTED EBIT

  • Record Q3 driven by continued strong performance in NAFTA and Components with significant improvement in APAC, Maserati and EMEA
  • LATAM at nearly break-even with continued difficult market conditions
  • NAFTA margin increased to 7.6% from 6.7%
  • Maserati returned to double-digit margin at 11.8%

ADJUSTED NET PROFIT

  • Increase primarily driven by strong operating performance
  • Net financial expenses down €93 million to €528 million primarily driven by gross debt reduction
  • Tax expense in Adjusted net profit decreased to €232 million from €332 million primarily due to the increased use of tax credits

NET INDUSTRIAL DEBT

  • Cash flow generation from operating activities of €0.8 billion, including negative impact of €1.2 billion of normal seasonal working capital increase
  • Capital expenditures of €2.0 billion, in line with prior year
  • Strong available liquidity at €23.2 billion

2016 GUIDANCE

Group raises full-year guidance due to strong year-to-date operating performance:

  • Net revenues > €112 billion confirmed
  • Adjusted EBIT (6) raised to > €5.8 billion from > €5.5 billion
  • Adjusted net profit(6) raised to > €2.3 billion from > €2.0 billion
  • Net industrial debt < €5.0 billion confirmed

 

Results by segment

 

Adjusted EBIT margin up 90 bps to 7.6%. U.S. market share(8) up 30 bps

  • Shipments decrease primarily due to planned reduction in Chrysler 200 and Dodge Dart volumes in connection with NAFTA capacity realignment plan: U.S.-45 thousand units (-8%), Canada -9 thousand units (-13%), Mexico -4 thousand units (-13%)
  • Net revenues decrease due to lower shipments, with higher fleet mix, partially offset by favorable vehicle mix
  • Adjusted EBIT increase primarily due to positive net pricing (net of negative FX transaction impact from CAD and MXN), purchasing efficiencies and lower warranty costs, partially offset by lower revenues, increase in product costs for content enhancements and higher manufacturing costs
  • Adjusted EBIT excludes net charges of €149 million, primarily relating to estimated costs associated with a planned recall for which there is ongoing litigation with a component supplier; although FCA believes the component supplier has responsibility for the recall, no recovery has been recognized as of September 30, 2016 in accordance with applicable accounting guidance as a resolution with the supplier has not yet been reached

 

 

Remained market leader in Brazil, with market share of 18.6%

  • Decrease in shipments reflects poor market conditions in Brazil due to continued macroeconomic weakness, partly offset by improvement in Argentina: Brazil -30 thousand units (-26%), Argentina +2 thousand units (+8%)
  • Decrease in Net revenues with lower shipments, partially offset by favorable vehicle mix mainly from theall-new Fiat Toro
  • Adjusted EBIT decrease primarily as a result of higher input costs driven by inflation and foreign exchange effects

 

Jeep sales up 76% driven by ongoing transition to localized production in China

  • Decrease in shipments due to transition to local Jeep production in China, through JV with GAC; combined shipments (including JV produced units) up 69% to 61 thousand units
  • Net revenues slight increase primarily as a result of favorable vehicle mix in China and increased sales of components to the China JV, offsetting lower shipments
  • Adjusted EBIT increase mainly due to favorable mix on imported vehicles, lower net price due to incentives for completion of the sell-out of discontinued and other imported vehicles and improved results from China JV

 

Continued profit and margin improvement together with market share growth

  • European market share (EU28+EFTA) for passenger cars up 40 bps to 6.1% (up 70 bps to 28.9% in Italy) and up 30 bps to 11% for light commercial vehicles (LCVs)(9) (up 70 bps to 45.2% in Italy)
  • Passenger car shipments up 16% to 229 thousand units and shipments of LCVs up 24% to 66 thousand units
  • Net revenues increase primarily due to higher volumes and favorable vehicle mix mainly driven by all- new Fiat Tipo family
  • Adjusted EBIT increase mainly driven by higher Net revenues, purchasing efficiencies, improved results from joint ventures and favorable FX, partially offset by higher advertising to support new product launches, as well as higher research and development and manufacturing costs

 

 

Return to double- digit Adjusted EBIT margin at 11.8%

  • Increase in shipments driven by launch of all-new Levante, partially offset by decrease in Ghibli, with significant increases in all regions: China (+109%), North America (+42%) and Europe (+67%)
  • Net revenues increase primarily due to higher shipments, positive net pricing and favorable vehicle and market mix mainly from all-new Levante
  • Adjusted EBIT improvement resulting from increase in Net revenues, partially offset by increase in industrial costs and commercial launch activities

 

Continued strong performance with Adjusted EBIT margin up to 4.7%

  • Increase in Net revenues reflects higher volumes and favorable mix at Magneti Marelli, partially offset by lower volumes at Comau
  • Adjusted EBIT increase due to higher Net revenues, partially offset by higher industrial costs
  • Magneti Marelli non-captive Net revenues at 69%, in line with Q3 2015

Brand Activity

 

 

 

 

 

 

This document, and in particular the section entitled “2016 Guidance”, contains 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 expectations and projections about future events and, by their nature, are 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 such statements as a result of a variety of factors, including: the Group’s ability to reach certain minimum vehicle volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group’s ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group’s ability to expand certain of the Group’s brands internationally; changes in the Group’s credit ratings; the Group’s ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; potential shortfalls in the Group’s defined benefit pension plans; the Group’s ability to provide or arrange for adequate access to financing for the Group’s dealers and retail customers; 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; various types of claims, lawsuits and other contingent obligations against the Group; disruptions arising from political, social and economic instability; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs; disruptions of supply or shortages of raw materials; 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 does not undertake 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.

On October 25, 2016, at 1.30 p.m. BST, management will hold a conference call to present the 2016 third quarter results to financial analysts and institutional investors. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en- us/pages/home.aspx). The supporting document will be made available on the Group website prior to the call.

London, October 25, 2016