2018 › Annual Report 2018 › Review of Performance of the Operating Subsidiaries and Associates

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
 20182017Amount%
Net revenues 115,410110,934 4,476+4
Adjusted EBIT (1) 7,2847,054 230+3
Net profit/(loss) 3,6323,510 122+3
Net industrial debt (2) 1,862(2,930) 4,262n.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).
Visualizza tabella #3415
Modifica tabella #3415

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.
(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
Visualizza tabella #3416
Modifica tabella #3416
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.
Visualizza tabella #3417
Modifica tabella #3417

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)
Visualizza tabella #3418
Modifica tabella #3418

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.

 

 

 

Commercial Register No.64236277 Legal notes | Credits