Fiat Chrysler

(30.05% of share capital)

The main consolidated results of the Fiat Group for the first nine months of 2012 are as follows:

Net revenues
Revenuesof the Fiat Group were €62.2 billion for the nine months of 2012. Excluding Chrysler, revenues totaled €26.4 billion, a 6% decrease over the same period in 2011, mainly reflecting volume declines in Europe. Luxury and Performance brands increased revenues by 8% to €2.1 billion. Components were down 1% to €6.0 billion.

Trading profit
Trading profit was €2,827 million. Excluding Chrysler, trading profit was €243 million compared to €921 million for the same period of 2011. For Luxury and Performance brands, trading profit increased 10% to €264 million, while Components reported a 25% decrease to €122 million.

EBIT
EBIT was €2,770 million. Excluding Chrysler, EBIT was €175 million (compared to €2,215 for the first nine months 2011); net of unusuals, EBIT totaled €319 million.

EBIT by segment is as follows:

Profit for the period
Net financial expense totaled €1,237 million. Excluding Chrysler, net financial expense was €612 million, compared to €632 million for the same period in 2011. Net of the impact of the mark-to-market of the Fiat stock option-related equity swaps (a €30 million gain for the nine months to September 2012 and a €115 million loss for the same period in 2011), net financial expense increased by €125 million mainly reflecting higher debt levels.

Profit before taxes was €1,533 million. Excluding Chrysler, there was a €437 million loss compared to a €1,583 million profit for the corresponding period of 2011. Net of unusuals, the loss was €293 million in 2012, compared to a profit of €362 million for the same period in 2011; the €655 million difference over the nine months to September 2011 mainly reflects the €678 million decrease in trading profit.

Income taxes totaled €510 million. Excluding Chrysler, income taxes were €363 million and related primarily to the taxable income of companies operating outside Europe and employment-related taxes in Italy.

Net profit was €1,023 million for the nine months to September. Excluding Chrysler, there was an €800 million loss, compared to a €1,207 million profit for 2011; excluding unusuals, the loss was €656 million, compared to a €37 million loss for the nine months to September 2011.

Equity
Equity attributable to owners of the parent at September 30, 2012 amounted to €9,069 million compared to €8,727 million at December 31, 2011.

Net debt
Consolidated net debt at September 30, 2012was€9.5 billion, an increase of €0.6 billion compared to year-end 2011. Excluding Chrysler, net debt of Fiat increased by approximately €2.4 billion to €8.2 billion.

Net industrial debt at September 30, 2012 was €6.7 billion, compared to €5.5 billion at year-end 2011. Chrysler improved net industrial debt by €1.8 billion, partially offsetting absorption of €3.0 billion for the rest of the Group. Capital expenditures totaled €5.3 billion (of which €2.1 billion for Fiat excluding Chrysler), progressing in line with full-year expectation.

Significant events
On July 3, 2012, Fiat notified VEBA of its intention to exercise the option to purchase a portion of VEBA’s ownership interest in Chrysler. That tranche represents approximately 3.3% of Chrysler’s outstanding equity. On September 26, 2012, Fiat announced that Fiat North America (a wholly-owned subsidiary) was seeking a declaratory judgment from the Delaware Court of Chancery confirming the price to be paid for the stake, since the parties had not reached agreement on the purchase price. Upon completion of the purchase, Fiat will hold 61.8% of the outstanding equity in Chrysler.

On July 16, 2012, Fiat issued a €600 million bond (fixed coupon 7.75% due October 2016). The notes – issued by Fiat Finance and Trade Ltd. S.A., a wholly-owned Group subsidiary, and guaranteed by Fiat S.p.A. under the GMTN Program – have been rated Ba3 by Moody’s, BB- by Standard & Poor’s and BB by Fitch.

On July 25, 2012, the Fiat plant in Pomigliano D’Arco was awarded the prestigious “Automotive Lean Production 2012” award in the OEM category, based on the evaluation of a committee of experts selected by the German magazine Automobil Produktion and a leading consultancy firm.

On July 26, 2012, Fiat Group Automobiles S.p.A. (FGA) and PSA Peugeot Citroën signed an agreement for the transfer of FGA’s shareholding in the SevelNord joint venture to PSA Peugeot Citroën on or before December 31, 2012. SevelNord will continue to produce light commercial vehicles for the two groups until Euro 6 emissions standards come into effect at the end of 2016. The agreement does not impact on other cooperation agreements between FGA and PSA Peugeot Citroën, including the Sevel joint venture located in Val di Sangro (Italy), which will continue as per current contracts.

On September 19, 2012, Fitch Ratings confirmed its rating on Fiat S.p.A.’s long-term debt at “BB” and short-term at “B”. On October 10, 2012, Moody’s Investors Service lowered the Corporate Family Rating of Fiat S.p.A. from “Ba2” to “Ba3” and consequently, according to their methodology, the rating on the notes issued by Fiat Finance & Trade Ltd. S.A. and Fiat Finance North America, Inc. from “Ba3” to “B1”. The outlook is negative for both agencies.