Fiat Chrysler Automobiles

FCA

(29.18% stake, 42.11% of voting rights on issued capital)

The key consolidated data of FCA for 2018 are presented below.

	Year		Change
	2018	2017	Amount	%
Net revenues	115,410	110,934	4,476	+4
Adjusted EBIT ⁽¹⁾	7,284	7,054	230	+3
Net profit/(loss)	3,632	3,510	122	+3
Net industrial debt ⁽²⁾	1,862	(2,930)	4,262	n.s

(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. Adjusted EBIT excludes certain adjustments from Net profit 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 31 December 2018 and at 31 December 2017. Net industrial cash (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 deposits; therefore, debt, cash and other financial assets/liabilities pertaining to financial services entities are excluded from the computation of Net industrial cash (debt).

Group results – excluding Magneti Marelli

As a result of the announced sale of Magneti Marelli and, in accordance with IFRS, Magneti Marelli is presented as a discontinued operation in the financial statements for the year ended 31 December 2018, with the comparative amounts restated. The remaining Components activities are no longer considered a separate reportable segment and are included within "Other activities".

	Year		Change
€ million	2018	2017	Amount	%
Net revenues, continuing operations	110,412	105,73	4,682	4
Adjusted EBIT⁽¹⁾, continuing operations	6,738	6,609	129	2
Net Profit from continuing operations	3,33	3,291	39	1
Net Industrial cash (debt)⁽²⁾	1,872	-2,39	4,262	n.s.

Net revenues and Adjusted EBIT

Net revenues			Adjusted EBIT
Years ended 31 December			Years ended 31 December
2018	2017	€ million	2018	2017
72,384	66,094	NAFTA	6,230	5,227
8,152	8,004	LATAM	359	151
2,703	3,250	APAC	(296)	172
22,815	22,700	EMEA	406	735
2,663	4,058	Maserati	151	560
1,695	1,624	Other activities, unallocated items and adjustments	(112)	(236)
110,412	105,730	Total continuing operations, excluding Magneti Marelli	6,738	6,609
4,998	5,204	Magneti Marelli, net of inter-company elimination ⁽¹⁾	546	445
115,410	110,934	Total including Magneti Marelli	7,284	7,054

(1) In accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, depreciation and amortization on the assets of Magneti Marelli ceased as at 30 September 2018. The impact of ceasing depreciation and amortization for the three months ended 31 December 2018 was €96 million, net of tax of €20 million.

NAFTA

Higher Net revenues primarily due to positive effects from volumes and net pricing, partially offset by negative foreign currency translation effects. Adjusted EBIT increase due to positive net pricing, favorable mix and higher volumes, partially offset by increased product content and launch costs related to new vehicles.

LATAM

Net revenues up slightly primarily due to higher shipments, mix and net pricing, partially offset by negative foreign exchange translation effects and weakening Argentine peso. Adjusted EBIT increase mainly as a result of higher volumes, favorable mix and positive net pricing, partially offset by negative foreign exchange effects and higher industrial and advertising costs related to new vehicles.

APAC

Net revenues decrease due to unfavorable mix, pricing actions and foreign currency translation effects. Decrease in Adjusted EBIT primarily due to lower net revenues and lower results from China JV, as well as the benefit of the Tianjin port explosions final insurance recovery of €93 million included in prior year results

EMEA

Net revenues flat, with favorable mix offset by lower volumes and negative net pricing. Adjusted EBIT decrease primarily due to negative net pricing, lower volumes and impacts from the transition to WLTP car type approval particularly in the second half of the year, as well as higher advertising to support Jeep brand growth, partially offset by industrial cost savings.

Maserati

Net revenues decrease primarily due to lower volumes and unfavorable market mix. Adjusted EBIT decrease primarily due to lower volumes, increased depreciation and amortization unfavorable FX, partially offset by lower marketing expense

Net industrial cash (debt)

Up €4.3 billion from 31 December 2017 to a net industrial cash position of €1.9 billion at 31 December 2018, reflecting improved industrial free cash flows partially offset by accelerated discretionary pension contribution.

€ million	12/31/2018	12/31/2017
Debt	(14,705)	(17,971)
Current financial receivables from jointly-controlled financial services companies	242	285
Derivative financial assets (liabilities) net and collateral deposits	151	206
Current debt securities	219	176
Cash and cash equivalents	13,175	12,638
Net Cash (debt)	(918)	(4,666)
Exclude: Net financial services debt	2,790	2,276
Net industrial cash (debt)	1,872	(2,390)

2019 Outlook⁽¹⁾

Guidance for 2019 is listed below:

Adjusted EBIT >€6.7 with margin >6.1%, both up from 2018 (2018:€6.7 billion with margin at 6.1%)
Adjusted diluted EPS >€2.70, reflecting higher effective tax rate, principally in the U.S. (2018:€3.00 per share)
Industrial free cash flows >€1.5 billion, down from 2018 due to higher capital expenditures and cash payments for fines and other costs in connection with the U.S. diesel emissions settlement (2018: €4.4 billion).

⁽¹⁾Amounts do not include any impacts from the spin-off of the Magneti Marelli business.

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