FCA(29.41% stake, 42.60% of voting rights on issued capital)

The key consolidated figures of FCA for 2016 are presented below. Unless otherwise indicated the figures for the year 2015 have been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015.

 

 Year Change
€ million2016 2015  
Net revenues 111,018  110,595  423
Adjusted EBIT (1) 6,056  4,794  1,262
Net profit/(loss) 1,814  93  1,721
Net industrial debt 4,585(2) 5,049(2) (464)
(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. 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 expenses/(benefit); (2) At December 31, 2016 and 2015. Net industrial debt is computed as: Debt plus derivative financial liabilities related to industrial activities less (i) cash and cash equivalents, (ii) current available-for-sale and held-for-trading securities, (iii) current financial receivables from Group or jointly controlled financial services entities and (iv) derivative financial assets and collateral deposit; therefore, debt, cash and other financial assets/liabilities pertaining to financial services entities are excluded from the computation of Net industrial debt.

Net revenues

Net revenues in 2016 total €111 billion, in line with 2015. As regards net revenues by segment, increases are recorded in EMEA (+7%; +9% at constant exchange rates) primarily due to higher volumes and favorable vehicle mix mainly driven by the all-new Fiat Tipo family, all-new Alfa Romeo Giulia and Jeep Renegade and in Maserati (+44%; +47% at constant exchange rates) due to higher shipments and favorable vehicle and market mix.

Net revenues in NAFTA decreased 1% (also at constant exchange rates) due to lower shipments, partially offset by favorable vehicle mix, while revenues in LATAM decreased €0.2 billion (‑4%; +1% at constant exchange rates) owing to lower shipments, partially offset by favorable vehicle mix mainly from the all-new Fiat Toro and all-new Jeep Compass.

The €1.2 billion decrease in APAC (-25%; -24% at constant exchange rates) is due to lower imported volumes in China due to transition to local Jeep production, partially offset by favorable vehicle mix from imported vehicles and increased sales of components, whereas the slight decline in Components reflects lower volumes at Comau and negative foreign transaction effects, largely offset by volume increases at Magneti Marelli.

 YearChange
€ million 2016 2015 amount %
NAFTA 69,094 69,992 (898) -1.3
LATAM 6,197 6,431 (234) -3.6
APAC 3,662 4,885 (1,223) -25.0
EMEA 21,860 20,350 1,510 7.4
Maserati 3,479 2,411 1,068 44.3
Components (Magneti Marelli, Teksid, Comau) 9,659 9,770 (111) -1.1
Other activities, unallocated items and adjustments (2,933) (3,244) 311 -9.6
Net revenues 111,018 110,595 423 0.4

Adjusted EBIT

Adjusted EBIT in 2016 is €6,056 million, with an increase of €1,262 million (+26%) compared to €4,794 million in 2015, with all segments profitable and improving year-over-year.

The increase in NAFTA is primarily due to improved vehicle mix, purchasing savings and lower warranty costs, partially offset by lower shipments, increase in product costs for content enhancements and higher manufacturing costs.

EMEA’s Adjusted EBIT increased is mainly driven by higher net revenues, purchasing and manufacturing efficiencies, improved results from joint ventures, partially offset by higher advertising to support new product launches and higher research and development costs.

In APAC the increase in Adjusted EBIT is mainly due to favorable mix on imported vehicles, lower marketing expenses (now incurred by China JV) and improved results from China JV, partially offset by lower net price due to incentives for completion of the sell-out of discontinued and other imported vehicles and higher industrial costs due to negative foreign exchange transaction effects.

The significant improvement of Maserati Adjusted EBIT is due to the increase in net revenues, partially offset by higher industrial costs and commercial launch activities while the increase in Adjusted EBIT in Components is primarily due to favorable mix, partially offset by higher industrial costs.

The increase in LATAM is primarily the result of favorable vehicle mix and a decrease in selling, general and administrative costs driven by continued cost reduction initiatives to right-size to market volume, which were partially offset by lower shipments and higher product costs driven by inflation and new products.

The analysis of Adjusted EBIT by segment is as follows:

 YearChange
€ million 2016 2015  
NAFTA 5,133 4,450 683
LATAM 5 (87) 92
APAC 105 52 53
EMEA 540 213 327
Maserati 339 105 234
Components (Magneti Marelli, Teksid, Comau) 445 395 50
Other activities, unallocated items and adjustments (511) (334) (177)
Adjusted EBIT 6,056 4,794 1,262

Net profit (loss)

Net profit in 2016 are €1,814 million, up €1,721 million compared to the 2015 primarily for the increase in EBIT Adjusted of €1,262 million, for lower net financial expenses of €350 million, lower adjustments for non-current income (expenses) of €1,235 million net of higher tax expenses of €1,126 million.

Net industrial debt

Net industrial debt decreased €0.5 billion from December 31, 2015 to €4.6 billion at December 31, 2016 primarily due to operating cash flow from industrial activities, net of capital expenditures of €8.8 billion, reached €1.8 billion for the year, partially offset by negative foreign exchange impact of €1.1 billion primarily due to strengthening of Brazilian Real.

€ million 12/31/2016 12/31/2015 Change
Gross Debt (24,048) (27,786) 3,738
Current financial receivables from jointly-controlled financial services companies 80 16 64
Current securities 241 482 (241)
Cash and cash equivalents 17,318 20,662 (3,344)
Other financial assets /(liabilities), net (150) 117 (267)
Debt classified as held for sale (9) (39) 30
Net debt (6,568) (6,548) (20)
Industrial activities (4,585) (5,049) 464
Financial services (1,983) (1,499) (484)

Significant events in the fourth quarter of 2016 and subsequent events

On November 30, 2016 Fitch Ratings communicated that it has affirmed its rating on FCA N.V.’s long-term debt at “BB-” and it has improved the outlook to positive from stable. The short-term rating is confirmed at “B”.

On December 2, 2016 the European Investment Bank (“EIB”) and Fiat Chrysler Automobiles (“FCA”) announced that they have finalized a €250 million loan for research and development (“R&D”) projects implemented by FCA. The three-year loan will support the automobile manufacturing group’s activities in its R&D centres in Italy and will consolidate the EU bank's collaboration with FCA, which has resulted in EUR 2.4bn worth of financing operations since 2009.

On December 15, 2016, each U.S.$100 notional amount of the Mandatory Convertible Securities was converted to 8.3077 of FCA's common shares based upon the average volume weighted average prices of FCA common shares on the New York Stock Exchange during the 20 consecutive trading day period beginning November 14, 2016 and ending on December 12, 2016 (inclusive), which resulted in a total of 238,846,375 FCA common shares that were issued

Relating to the notice of violation with respect to the emissions control technology employed in the company’s 2014-16 model year light duty 3.0-liter diesel engines issued by EPA on January 12, 2017, FCA US, the US subsidiary of FCA N.V., intends to work with the incoming administration to present its case and resolve this matter fairly and equitably and to assure the EPA and FCA US customers that the company’s diesel-powered vehicles meet all applicable regulatory requirements. FCA US looks forward to the opportunity to meet with the EPA’s enforcement division and representatives of the new administration to demonstrate that FCA US’s emissions control strategies are properly justified and thus are not “defeat devices” under applicable regulations and to resolve this matter expeditiously.

In January 2017, as a result of the distribution of the Company's 16.7 percent ownership interest in RCS to holders of its common shares on May 1, 2016, the Compensation Committee of FCA approved a conversion factor of 1.005865 that was applied to outstanding awards that had been granted in 2015 to make equity award holders whole for the resulting diminution in the value of an FCA common share. There was no change to the total cost of these awards to be amortized over the remaining vesting period as a result of these adjustments.

On February 24, 2017, FCA US prepaid the outstanding principal and accrued interest for its Tranche B Term Loan due 2017. The prepayment of U.S.$1,826 million (€1,721 million) was made with cash on hand. The prepayment did not result in a material loss on extinguishment

On March 17, 2017 FCA N.V. completed the placement, carried out through an accelerate bookbuilding, of the totality of the stake in CNH Industrial, corresponding to 15,948,275 common shares (1.17% of common shares), for a total amount of €144.3 million (€9.05 per share). Settlement of the sale was on March 21, 2017.

Target 2017

Guidance for 2017, listed below, confirms conviction in achievement of 2018 targets:

  • Net revenues €115 - €120 billion;
  • Adjusted EBIT > €7 billion;
  • Adjusted net profit > €3.0 billion;
  • Net industrial debt < €2.5 billion.

 

 

 

 

 

 

 

Commercial Register No.64236277 Legal notes | Credits