FCA(29.15% stake, 44.27% of voting rights on issued capital)




The key consolidated figures of FCA for the first quarter of 2016 are presented below.

Unless otherwise indicated, the information for the first quarter of 2015 has been re-presented to exclude Ferrari, consistent with Ferrari’s classification as a discontinued operation for the year ended December 31, 2015.

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(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. It is calculated as EBIT excluding gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and other unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature.

Net revenues

Net revenues in the first quarter of 2016 are €26.6 billion, up €0.7 billion (+3%; +4% at constant exchange rates) compared to the first quarter of 2015. As for the segments, the improvement is mainly attributable to the increase of €1 billion in NAFTA (+6%; +5% at constant exchange rates), €0.4 billion in EMEA (+8%; +8% at constant exchange rates), partially offset by the decreases in LATAM (-15%; +5% at constant exchange rates) and APAC (-37%; -36% at constant exchange rates) owing to reduced shipments caused by weak demand in their markets.

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Adjusted EBI

Adjusted EBIT in the first quarter of 2016 is €1,379 million, an increase of €679 million (+97%), up from €700 million in the first quarter of 2015, driven by strong improvement recorded by NAFTA, attributable to higher volumes, better net prices, favorable product mix, purchasing savings, lower advertising and recall campaign costs, partially offset by higher manufacturing costs for content enhancements; and by EMEA, thanks to higher volumes, a more favorable vehicle mix and manufacturing  and purchasing efficiencies, partially offset by higher research and development costs and lower net pricing driven by higher incentives in Europe.

Adjusted EBIT in LATAM also improved (+€76 million) mainly due to a favorable vehicle mix, a decrease in marketing costs and manufacturing efficiencies, partially compensated by lower shipments, higher industrial costs from new product launches and input cost inflation.

In APAC Adjusted EBIT is down by 82% (82% also at constant exchange rates) owing to lower shipments and unfavorable mix, partially offset by a reduction in direct marketing costs that are now incurred by China JV and improved results from China JV.

The decrease in Maserati is due to lower volumes while the improvement in Components is on account of a favorable mix more than offsetting higher industrial costs.

Adjusted EBIT by segment is the following:

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EBIT

In the first quarter of 2016 net unusual expenses are recorded for €72 million and mainly refer to the estimated expenses for the realignment of manufacturing capacity in NAFTA (€51 million) and the Venezuelan currency devaluation following changes in the local monetary policy (€19 million).

In the first quarter of 2015 there were no unusual items such as to have a significant effect on EBIT, which was therefore in line with Adjusted EBIT.

Profit for the period

Net financial expenses total €512 million, down €96 million from the first quarter of 2015 mainly as a result of the reduction in gross debt.

Tax expenses increased compared to the first quarter of 2015 primarily due to increased profitability in the United States.

Net debt

Net industrial debt at March 31, 2016 is €6.6 billion, up €1.5 billion compared to December 31, 2015. The net increase is due to working capital seasonality (€1.3 billion), exacerbated by model change-over and reduced passenger car volumes in the United States as well as capital expenditures in the quarter of €1.8 billion.

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Significant events in the first quarter of 2016 and subsequent events

On January 3, 2016 the transactions for the separation of FCA’s remaining ownership interest in Ferrari N.V. and the distribution of that ownership interest to holders of FCA shares and mandatory convertible securities were completed. FCA common shareholders and holders of special voting shares received one common share and one special voting share of Ferrari for every ten common shares and special voting shares of FCA, whereas the holders of FCA mandatory convertible securities received 0.77369 Ferrari common shares for every $100 notional amount held.

Starting January 4, 2016 Ferrari common shares are also traded on Borsa Italiana’s MTA.

The spin-off of Ferrari allowed FCA to start 2016 operations with net industrial debt of €5 billion.

On March 2, 2016 FCA announced its intention to consummate a transaction that will result in the creation of the leading player in the Italian media and publishing business and to distribute all of its media and publishing sector interest to shareholders, consistent with its desire to increase focus on its core business.

The transaction, covered by a Memorandum of Understanding, provides for the merger between FCA’s media and publishing subsidiary ITEDI S.p.A. and the Italian media group, Gruppo Editoriale L’Espresso S.p.A.

Based on the preliminary valuation range agreed between the parties, following consummation of the merger, FCA would hold approximately 16% of the share capital of the combined entity, while FCA’s minority partner in the publishing business Ital Press Holding S.p.A. (controlled by the Perrone family), would hold approximately 5% of the combined entity.

The merger is expected to be consummated in the first quarter of 2017, following receipt of the necessary regulatory approvals and satisfaction of the conditions precedent customary for this type of transaction (such as completing satisfactory due diligence and obtaining corporate approvals).

As soon as practicable following consummation of the merger, FCA will distribute its entire interest in the enlarged group to the holders of its common shares.

Consistent with its stated intent to increase focus on its core business and prior to proceeding with the above mentioned merger and distribution, FCA will distribute its entire ownership interest in RCS MediaGroup S.p.A. to holders of its common shares.

In March 2016 FCA US, which is controlled by FCA, made a $2 billion voluntary prepayment, applied to the Term Loans due in 2017 and 2018, in proportion to their respective principal balances, bringing the remaining debt to approximately $2.8 billion. This prepayment, together with the amendments to the two Term Loans, eliminates covenants restricting the provision of guarantees and payment of dividends by FCA US for the benefit of the rest of the FCA Group and enables access to the second €2.5 billion tranche of FCA’s €5 billion syndicated revolving credit facility.

On April 15, 2016 the general meeting of the shareholders approved a demerger that is the initial step in the previously announced plans to distribute the ordinary shares of RCS MediaGroup S.p.A. held by FCA to the holders of its common shares.

It is anticipated that the distribution of RCS ordinary shares will be effected through several transactions that became effective on May 1, 2016.

Commercial Register No.64236277 Legal notes | Credits