FCA Closed 2014 With Strong Performance in Line With Full-year Guidance

LONDON -- Jan. 28, 2015: Revenues were up 11% to €96.1 billion with EBIT up to €3.7 billion adjusted for unusual items. Net profit was €632 million. Net industrial debt at year-end was €7.7 billion, including €2.3 billion benefit from the capital raising in Q4

Worldwide shipments totaled 4.6 million units, an increase of 6% driven by growth in NAFTA, APAC and EMEA. Jeep brand achieved record volumes with global sales of over 1 million vehicles.

Net revenues were up 11% to €96.1 billion (+12% at constant exchange rates - CER).

EBIT was €3,223 million, up 7% (+9% CER). EBIT adjusted for unusual items totaled €3,651 million (+4%) with strong improvements for APAC, Maserati and EMEA, which posted a €28 million positive result in the fourth quarter. NAFTA was substantially in line with the prior year, while weak market conditions impacted performance in LATAM.

Net profit was €632 million. Adjusted for unusual items, the Group closed 2014 with a net profit of €955 million, representing a slight improvement over the prior year.

Net industrial debt was €7.7 billion at year end, after issuance of USD 2.9 billion Mandatory Convertible Securities (MCS), placement of 100 million common shares and share repurchases following completion of the merger in Q4. Available Liquidity, including €3.2 billion in undrawn committed credit lines, was €26.2 billion.

FIAT CHRYSLER AUTOMOBILES - Highlights
	4^th Quarter					Full Year
	2014	2013^()*		Change	(€ million)	2014	2013^()*	Change
	1,215	1,171		44	Total Shipments (000s)	4,608	4,352	256
	27,084	23,943		3,141	Net Revenues	96,090	86,624	9,466
	1,066	460		606	EBIT	3,223	3,002	221
	1,077	943		134	EBIT adjusted for unusual items	3,651	3,521	130
	2,364	1,701		663	EBITDA⁽¹⁾	8,120	7,637	483
	529	(74)		603	Profit Before Taxes	1,176	1,015	161
	420	1,296		-876	Net Profit	632	1,951	-1,319
	0.329	0.707		-	EPS basic (€) (**)	0.465	0.744	-
	7,654	11,372⁽²⁾		-3,718	Net Industrial Debt	7,654	7,014⁽³⁾	640
	26,221	21,741⁽²⁾		4,480	Total Available Liquidity	26,221	22,745⁽³⁾	3,476
	Net Revenues increased by €9.5 billion year-over-year (+11%; +12% CER) to €96.1 billion, driven mainly by NAFTA (+15%), APAC (+34%) and Maserati (+67%), with increases also for EMEA (+4%) and Components (+7%). These increases were partly offset by a 13% reduction for LATAM (-7% CER), where vehicle shipments were down 13% due to continued weak demand in the region's main markets. EBIT totaled €3,223 million for the year, a 7% increase (+9% CER) over the €3,002 million in 2013. EBIT includes unusual items which totaled €428 million net charge in 2014, compared with €519 million in 2013. In 2014 unusual items include primarily €495 million charge connected with the UAW Memorandum of Understanding entered into by Chrysler (now named FCA US) on January 21, 2014 and €98 million negative impact from the devaluation of the Venezuelan Bolivar (VEF) net of €223 million non-cash and non-taxable gain resulting from the fair value of the options representing approximately 10% of Chrysler equity interest which was a portion of the 41.5% stake that Fiat acquired from the VEBA Trust on January 21, 2014. In 2013 unusual items included €390 million in asset write-downs mainly associated with the rationalization of architectures associated with the new product strategy. In addition there was a €56 million write-off of the book value of the Equity Recapture Agreement Right in connection with the acquisition of the minority stake in Chrysler and a €43 million charge related to the devaluation of the VEF. EBIT adjusted for these unusual items increased by €130 million on the back of strong improvements for APAC and Maserati, with EMEA reducing losses by €198 million, benefiting primarily from higher volumes and better product mix, manufacturing and purchase efficiencies. In LATAM, EBIT adjusted for unusual items decreased by €330 million mainly reflecting lower volumes, €51 million in negative exchange rate translation impacts and €45 million in start-up costs for the Pernambuco plant. NAFTA was substantially in line with the prior year despite the impact of higher warranty and recall costs. Net financial expense totaled €2,047 million, €60 million higher than 2013, with the impact of higher average debt levels partially offset by the benefits of FCA US (formerly named Chrysler) refinancing transactions completed in February. Excluding the impact of stock option-related equity swaps that expired in Q4 2013 (gain of €31 million for 2013), net financial expense was substantially in line with the prior year. Tax expense totaled €544 million for the year, compared with tax income of €936 million for 2013. In 2013, income taxes included a €1.5 billion positive one-time recognition of net deferred tax assets related to FCA US; excluding this item, net income tax expenses totaled €564 million. Higher deferred tax expense in 2014 due to utilization of a portion of the deferred tax assets recognized in 2013 were largely offset by non-recurring deferred tax benefits which did not occur in the prior year. Net profit for the year was €632 million, of which €568 million was attributable to owners of the parent. Adjusted for unusual items, net profit was €955 million (as compared €943 million for 2013, recasted for the retrospective application of IFRS 11, adjusted for unusual items and the €1.5 billion positive deferred tax impact stated above). Net industrial debt at year-end was €7.7 billion, compared with €7.0 billion at year-end 2013 (recasted for the retrospective application of IFRS 11 – €0.4 billion impact). Excluding the effect of the acquisition of the minority interest in Chrysler and Q4 capital transactions, net industrial debt increased by €0.3 billion, with capex of €8.1 billion almost fully covered by cash flow from operations. Total available liquidity at year-end, including €3.2 billion in undrawn committed credit lines (unchanged at CER versus the prior year), totaled €26.2 billion, which was €3.5 billion higher than at year-end 2013. The difference mainly reflects the €3.1 billion cash proceeds from the capital transactions completed in December 2014, a €1.5 billion net increase in Medium-Term financing particularly in Brazil and a positive currency translation effect of €1.3 billion, partly offset by the €2.7 billion paid for the acquisition of the minority interests in Chrysler. Dividends The Board of Directors has declined to recommend a dividend payment on FCA common shares in order to further fund capital requirements of the Group's five-year business plan presented on May 6, 2014. 2015 Outlook The Group indicates the following guidance for 2015: Worldwide shipments in 4.8 to 5.0 million unit range; Net revenues of ~€108 billion; EBIT() in €4.1 to €4.5 billion range; Net Income() in €1.0 to €1.2 billion range, with EPS (*) in €0.64 to €0.77 range; Net Industrial Debt in €7.5 billion to €8.0 billion range. Figures do not include any impacts for the previously announced capital transactions regarding Ferrari. () Excluding eventual unusual items (**) EPS calculated including the MCS conversion at minimum number of shares at 222 million
	Memo items
	4^th Quarter					Full Year
	2014	2013		Change	(€ million)	2014	2013	Change
	446	252		194	Net profit adjusted for unusual items	955	943	12
	0.350	0.026		-	EPS basic adjusted for unusual items (€) ()	0.729	0.099	-
	From EBIT to EBIT adjusted for unusual items
	4^th Quarter					Full Year
	2014	2013	Change		(€ million)	2014	2013		Change
	1,066	460	606		EBIT	3,223	3,002		221
	(11)	(483)			Unusual items (pre-tax)⁽⁴⁾	(428)	(519)
	1,077	943	134		EBIT adjusted for unusual items	3,651	3,521		130
	⁽⁴⁾ Includes: Gain/(losses) on the disposal of investments, Restructuring, Other unusual income/(expenses).

Net revenues were €6.5 billion, a 9% increase over 2013 (+11% CER), with performance positive in North America, China and Europe, but down in Brazil. EBIT was €204 million, an increase of €35 million year-over-year. EBIT includes unusual charges of €20 million for 2014 (unusual income of €1 million for 2013). EBIT adjusted for these unusual charges, increased by €56 million, mainly reflecting higher volumes and the benefit of cost containment actions and efficiencies.

Teksid

Net revenues were €0.6 billion, a 3% increase on a constant scope of operations. Volumes were down 4% for the Cast Iron business unit (on a constant scope of operations) and up 24% for the Aluminum business. There was an EBIT loss of €4 million, compared with a loss of €70 million for 2013. EBIT includes unusual charges of €60 million for 2013, mainly related to impairment of assets in the Cast Iron business unit.

Comau

Net revenues were €1.6 billion, with a 6% increase mainly attributable to the Body Welding business. EBIT totaled €60 million, a €13 million increase over the €47 million for 2013. Order intake (mainly for Systems) totaled €1,789 million, a 12% year-over-year increase. At December 31, 2014, the order backlog totaled €1,585 million, representing a 15% increase over year-end 2013.

Brand Activity in 2014

The Jeep brand set an all-time annual record in 2014 with global sales of just over 1 million vehicles. From a product standpoint, the highlight of the year was the presentation in March and launch in September of the Jeep Renegade, the first FCA vehicle designed in the U.S. and crafted in Italy for sales to customers in more than 100 countries worldwide. The Renegade marks the brand's first entry in the small SUV segment. In addition, the new Jeep Cherokee was launched in Chile and China in Q1 and in EMEA, Australia and Japan in Q2.

In Q2, Chrysler launched the all-new Chrysler 200 mid-size sedan, which is produced at the Sterling Heights (Michigan) Assembly Plant, the third FCA US vehicle derived from the "Compact U.S. Wide" architecture.

Fiat gave the debut presentation of the 500X, a cross-over and the latest addition to the 500 family, at the Paris Motor Show. The 500X will be produced at the Group's Melfi plant in Italy, alongside the Jeep Renegade, for sale in markets worldwide. The new Fiat Panda Cross and Fiat Freemont Cross were presented during the third quarter. The new Fiat Linea was unveiled at the New Delhi Motor Show in February and launched in India in March and Brazil in April.

After an absence of some 20 years, Alfa Romeo returned to the U.S. market with the launch of the 4C Coup� mini supercar in November and the newly-presented Alfa Romeo 4C Spider was named "Most Beautiful Car 2014" in the Sports Cars and Convertibles category of the Auto Bild Design Award 2014. In June, the brand also presented the MY2014 Giulietta and MiTo "Quadrifoglio Verde" to the international press.

Fiat Professional debuted the sixth generation of the highly successful Fiat Ducato, which has sold 2.7 million units since the nameplate was first launched in 1981. The Ducato continued its strong performance in 2014, taking the lead in the OEM ranking in its segment in Europe for the first year ever, and registering a further gain in market share - which has increased continuously since 2008 - to an all-time record of 20.9%. Available in more than 80 countries around the world, in 2013 the vehicle was introduced in North America as the Ram ProMaster. In Q3, at the International Show for Commercial Vehicles in Hannover ("IAA"), Fiat Professional gave the world premiere presentation of the new Dobl�.

At the Geneva Motor Show in March, Maserati presented the Alfieri concept, named after the brand's founder, a prototype coup� with a range of stylistic features that will appear on future Maserati models. Maserati also showcased the Ermenegildo Zegna version of the Quattroporte, which will be produced in a limited run of 100 vehicles to commemorate the brand's 100th anniversary.

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