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Fiat Group Closed 2012 With All Targets Achieved Or Exceeded

WORLDWIDE SHIPMENTS INCREASED TO 4.2 MILLION UNITS AND TRADING PROFIT REACHED €3.8 BILLION. NET INDUSTRIAL DEBT WAS REDUCED FROM SEPTEMBER LEVEL TO €6.5 BILLION. GROUP REVENUES REACHED €84 BILLION, TRADING MARGIN WAS 4.5% AND NET PROFIT EXCEEDED €1.4 BILLION. SHIPMENTS WERE UP 6% YEAR-OVER-YEAR ON THE BACK OF INCREASES IN ALL REGIONS EXCEPT EMEA. EMEA … Continued

WORLDWIDE SHIPMENTS INCREASED TO 4.2 MILLION UNITS AND TRADING PROFIT REACHED €3.8 BILLION.

NET INDUSTRIAL DEBT WAS REDUCED FROM SEPTEMBER LEVEL TO €6.5 BILLION.

GROUP REVENUES REACHED €84 BILLION, TRADING MARGIN WAS 4.5% AND NET PROFIT EXCEEDED €1.4 BILLION.

SHIPMENTS WERE UP 6% YEAR-OVER-YEAR ON THE BACK OF INCREASES IN ALL REGIONS EXCEPT EMEA.

EMEA LOSSES IN Q4 WERE NEARLY HALVED COMPARED TO Q4 2011 AT €121 MILLION.

AVAILABLE LIQUIDITY AT YEAR-END WAS IN EXCESS OF €20 BILLION.

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  • Revenues reflect volume growth for mass-market brands in NAFTA, LATAM and APAC, which more than offset the decline in EMEA.
  • Luxury and Performance brands posted 7% revenue growth.
  •  Trading profit was €3.8 billion, with strong performances in NAFTA €2.7 billion, LATAM €1.1 billion and APAC €0.3 billion while EMEA reported a trading loss of €0.7 billion. Luxury and Performance brands improved trading profit by 11% to €0.4 billion.
  • Net industrial debt increased to €6.5 billion from €5.5 billion at 2011 year-end, with €7.5 billion in capital expenditure. A €1.6 billion positive cash contribution from Chrysler was more than offset by absorption for Fiat excluding Chrysler.
  • Total available liquidity (inclusive of undrawn credit lines, unchanged) was €20.8 billion, slightly higher than year-end 2011.
  • Guidance for 2013 confirms targets underpinning Group development plans presented on 30 October 2012.

For 2012, Group revenues totaled approximately €84 billion, increasing 12% over the prior year on a proforma (*) basis (+8% at constant exchange rates). There were strong year-over-year increases in NAFTA (+29% or 19% at constant exchange rates) and APAC (+50%). LATAM remained strong, while EMEA declined 11% on the back of a continued deterioration in European demand, particularly in Italy. Luxury and Performance brands posted a 7% increase in revenues to €2.9 billion, mainly driven by growth in North America and Asia Pacific. For Components, revenues were substantially in line with 2011 at €8.0 billion.

Trading profit was €3,814 million, a year-over-year increase of 18% on a pro-forma basis (+11% at constant exchange rates). The NAFTA region increased €1 billion to €2,693 million, driven by strong volume growth, pricing pressure and unfavorable currency translation impacts, only partially offset by higher volumes and efficiency gains. APAC reported €260 million, nearly double the prior year. EMEA recorded a loss of €704 million, with cost containment actions only partially mitigating the impact of reduced volumes and pricing pressures. Growth for Luxury and Performance brands continued, with trading profit increasing €40 million to €392 million. Components contributed €176 million.

EBIT was €3,677 million. Net of unusuals, there was a year-over-year increase of 17% on a pro-forma basis to €3,921 million. For 2012, net unusuals of €244 million primarily related to the write-down of the investment in SevelNord, as well as provisions for restructuring and for disputes relating to operations terminated in prior years. For mass-market brands, EBIT by region was as follows: NAFTA €2,741 million, LATAM €1,032 million, and APAC €255 million. EMEA reported a €738 million loss (€544 million net of unusuals), compared with an €897 million loss in 2011 (€353 million net of unusuals).

Net financial expense totaled €1,641 million. Excluding Chrysler, net financial expense was €825 million, compared with €796 million for 2011. Net of the impact of the mark-to-market of the Fiat stock optionrelated equity swaps (a €34 million gain for 2012 and €108 million loss for 2011), net financial expense increased by €171 million, mainly reflecting higher net debt levels.

Profit before taxes was €2,036 million. Excluding Chrysler, there was a loss of €621 million, compared with a profit of €1,470 million in 2011. Net of unusuals, the loss was €360 million, compared with a profit of €381 million in 2011; the €741 million difference reflects a €692 million reduction in trading profit and €29 million increase in net financial expense. Income taxes totaled €625 million. Excluding Chrysler, income taxes were €420 million and related primarily to the taxable income of companies operating outside Europe and employment-related taxes in Italy.

Net profit was €1,411 million. Profit attributable to owners of the parent amounted to €348 million (€1,334 million in 2011). Excluding Chrysler, net result was a €1,041 million loss, compared with a €1,006 million profit for 2011; excluding unusuals, there was a €780 million loss, compared with a €106 million loss for 2011.

Net industrial debt for the Group at 31 December 2012 was €6.5 billion, an increase of €1.0 billion for the year. For Fiat excluding Chrysler, the €2.6 billion increase in net industrial debt was driven by the net loss, negative change in working capital and capital expenditure on new products: as a result, net industrial debt increased to €5.0 billion. Chrysler reported positive cash flow of €1.6 billion, thus reducing its net industrial debt to €1.5 billion, despite increased capital expenditure of €4.3 billion. Total available liquidity, inclusive of €2.9 billion in undrawn committed credit lines, was €20.8 billion (€20.7 billion at year-end 2011), of which €11.1 billion related to Fiat excluding Chrysler (€12.3 billion at yearend 2011) and €9.8 billion to Chrysler (€8.4 billion year-end 2011). The Group successfully accessed capital markets throughout the year, with a total of €2.5 billion in bond issuances (which compare with €1.5 billion of bond maturities for the year).

Fourth Quarter
Group revenues
were €21.8 billion for Q4 2012, up 11% over the prior year. The increases in NAFTA (+25%), LATAM (+5%) and APAC (+42%) more than compensated for the 10% decrease in EMEA attributable to declines in market demand in Europe. For Luxury and Performance brands, revenues increased 6%. Components were substantially in line with Q4 2011.

Trading profit totaled €987 million for the quarter, up 29% compared to prior year. The NAFTA region posted a 28% increase to €646 million. For LATAM, trading profit was down €81 million to €249 million. APAC was up 10% over Q4 2011 at €46 million. For EMEA, the trading loss was nearly half the prior year level at €121 million. Luxury and Performance brands and Components contributed €128 million and €54 million, respectively.

EBIT was €907 million (€760 million in Q4 2011). For mass-market brands, EBIT by region was as follows: NAFTA increased by 13% to €652 million; LATAM was €249 million, down from €330 million in Q4 2011; APAC was down €9 million to €36 million. EMEA reduced losses to €165 million from €289 million a year ago; excluding unusuals, the loss was €85 million, compared with a loss of €178 million.

Net financial expense totaled €404 million, compared to €371 million in 2011. Net of the impact from the mark-tomarket of the Fiat stock option-related equity swaps (a €4 million gain in Q4 2012 and a €7 million gain in Q4 2011), the increase of €30 million year-over-year reflects the growth in net indebtedness. Profit before taxes was €503 million, an increase of €114 million over Q4 2011, reflecting a €147 million increase in EBIT and higher net financial expense. Income taxes totaled €115 million (€124 million in Q4 2011) and related primarily to the taxable income of companies operating outside Europe and employment-related taxes in Italy.

Net profit was €388 million (€102 million attributable to owners of the parent), a €123 million increase over the €265 million for Q4 2011. Excluding unusuals, net profit for the quarter was €500 million (€322 million in Q4 2011).

Net industrial debt for the Group decreased by €0.2 billion in the quarter to €6.5 billion. For Fiat excluding Chrysler, a €0.4 billion positive cash flow, in line with Q4 2011, took net industrial debt to €5.0 billion. Chrysler reported negative cash flow of €0.2 billion, due to normal seasonality, bringing its net industrial debt to €1.5 billion.

Total available liquidity increased by €0.8 billion in the quarter, to €20.8 billion. Total available liquidity for Fiat excluding Chrysler was €11.1 billion, improved by €1.3 billion from September-end, mainly as a result of net inflows from both the debt capital market (two bond issuances, totaling €0.7 billion, were successfully executed in the quarter) and new medium term financing. Liquidity for Chrysler was €9.8 billion, from €10.2 billion at September-end.

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Dividends
The Board of Directors, pending approval of Fiat S.p.A.’s 2012 financial statements on 20 February 2013, has decided not to recommend a dividend payment on Fiat shares, given the Company’s desire to maintain a high level of liquidity and the existence of certain restrictions on the ability of Chrysler to pay dividends to its members.

Further details of Fiat Group’s 2012 financial results are available at here.

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