You are on page 1of 49

IM: F

NYSE: Expected October 2014

Michael Guichon, Columbia Business School

Share Price (as of 5/2/14) 8.71 €
Shares outstanding (mm) 1,251
Equity Market Cap (mm) 10,894 €
Add: Debt (mm) 29,306 €
Less: Cash (mm) 19,439 €
Total Enterprise Value 20,761 €
Add: Underf unded Pension 6,000 €
Adjusted Total Enterprise Value 26,761 €
52 Week Range 3.91 € 8.85 €
Dividend Yield 0.0%
Average Daily Volume (mm) 12.2
2014E 2015E 2016E
EV/EBITDA 3.08x 2.79x 2.46x
P/E 13.15x 8.08x 6.25x
P/CPS 1.75x 1.53x 1.42x
Note: Consensus as of 5/2/14
Current Capitalization
Trading Statistics
Summary Valuation
Investment Thesis
• Market significantly underestimating transformative nature of
Chrysler consolidation and the value of the company’s business units.
Chrysler alone is conservatively worth €16.5bn and
Ferrari/Maserati are worth €6.9bn (~90% of current EV), minimizing
downside
• Chrysler acquisition improves the firm by reducing management
distraction, leveraging future production and R&D synergies and
FCA’s improved credit profile
• FCA’s value is misunderstood due to a cumbersome capital structure,
several obscured assets and economic weakness in key markets
• FCA has great brands managed by excellent capital allocators and
they are taking share in key markets
• FCA trades at 4.0x normalized earnings
• Fair Value: €16.50 (8.0x base normalized EPS of €2.05)
2
Recommend investors buy Fiat shares with a target share price of €16.50; over 90% upside
China, 55.2%
Japan, 9.8%
Australia,
22.7%
Other,
12.3%
US, 84.1%
Canada, 12.1%
Mexico, 3.8%
Brazil, 82.6%
Argentina, 11.7%
Other, 5.7%
Company Overview
• FCA is the 6th largest automobile manufacturer globally
1

• CEO Sergio Marchionne hired in 2004 by founding Agnelli family (31% owners) and encouraged to sell the Fiat Auto subsidiary
• Finding no buyers interested in a low margin, Italian focused car company, he began growing the business with the goal of expanding Fiat’s presence
globally
• Fiat acquired 20% of Chrysler after its 2009 bankruptcy. On January 21, 2014 it acquired 100% ownership
• Fiat and Chrysler have been run by CEO Sergio Marchionne since 2004 and 2009 respectively
3
Source: Fiat 2013 Annual Report
FCA
North America
% of Sales: 53%
% of EBIT: 77%
Europe
% of Sales: 19%
% of EBIT: -25%
LatAm
% of Sales: 11%
% of EBIT: 17%
Asia-Pac
% of Sales: 5%
% of EBIT: 11%
Ferrari/Maserati
% of Sales: 4%
% of EBIT: 16%
Components and Other
% of Sales: 8%
% of EBIT: 5%
Geographical Breakdown of Segment Unit Volumes:
Breakdown by
Type:
Italy, 48.0%
France, 9.9%
Germany, 11.4%
U.K.,
9.9%
Rest of
Europe,
20.8%
Magneti Mareli -
Auto Parts, 74.1%
Teksid - Metal
Casting, 8.5%
Comau -
Automation
Systems, 18.1%
North
America,
40.5%
Europe, 23.2%
China,
18.9%
Other,
17.4%
1
By revenues
How the Chrysler deal is transformational
• The Chrysler purchase was a very value accretive deal; Fiat paid $4.4bn in
cash for a business that generated $3.1bn in EBIT in 2013
• The addition of Chrysler changed Fiat from a regional car manufacturer
into the 6
th
largest in the world
1. Operational synergies – a larger manufacturing base with a more
diverse group of product cycles will allow the combined company to
achieve higher average levels of capacity utilization and increase sales in
formerly underserved areas around the world
2. The use of common components and vehicle platforms between Fiat
and Chrysler will reduce design and manufacturing costs
3. Increased scale allows FCA to generate high ROI from investments in
R&D, i.e. R&D synergies with Ferrari and Maserati


4 Marchionne inherited a loss making Italian car/tractor/parts maker in 2004 and created a global automotive giant
Key Drivers of Normalized
Earnings
Normalized Earnings Potential
• €2.05 with Europe at Breakeven (base
case, expected in 2016)
• €2.55 long term with modest
European recovery
• Normalized earnings yield
of 24%-30%
• Continued strong
performance/market share gains of
Chrysler in North America
• Return to high single digit/low double
digit margins in LATAM
• Cash balance reduced by €10bn to
delever. Average weighted cost of
debt falls 120bps to 5.3%

6
A return to normal earnings driven by Italian/Brazilian recoveries, Chrysler performance and capital structure
rationalization
€ 0.63
€ 0.36
€ 0.37
€ 0.01
€ 0.24
€ 0.04
€ 0.40 € 2.05
€ 0.50 € 2.55
€ -
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ -
€ 500
€ 1,000
€ 1,500
€ 2,000
€ 2,500
€ 3,000
€ 3,500
E
P
S

N
e
t

I
n
c
o
m
e

(

m
m
)

Capital Structure
2013A Normalized Change
Debt 29,875 € 20,039 € (9,836) €
Cash 19,439 € 10,000 € (9,439) €
Net Debt 10,436 € 10,039 € (397) €
Interest Expense (1,995) € (1,062) € 933 €
Interest Income 97 € 100 € 3 €
Cost of Debt 6.7% 5.3% -1.4%
Income Interest Rate 0.5% 1.0% 0.5%
Net Interest Margin -6.2% -4.3% 1.9%
Net Debt Expense (1,898) € (962) € 936 €
ETR 40.0% 40.0% 40.0%
Net Income Impact (1,139) € (577) € 562 €
EPS Impact (0.91) € (0.46) € 0.45 €
Capital Structure Optimization
Capital Structure
• Previously, complicated ownership structure and debt covenants prevented Fiat
from accessing Chrysler’s liquidity and led to an excessive cash balance at Chrysler
and a highly inefficient overall capital structure
• With full ownership of Chrysler, cash will start to be more fungible between Fiat
and Chrysler, FCA can begin to reduce its gross debt burden
• The simplified company has a much better credit profile and this has been reflected
in an improvement in credit default swap levels
• FCA’s cost of 7 year debt is currently 4.3% in EUR
• FCA is rated BB-/B1/BB- (S&P, Moody’s, Fitch)
• Debt/EBITDA = 3.9x, interest coverage = 1.5x
• In 2017, Debt/EBITDA = 2.4x, interest coverage = 3.4x
• Future credit rating upgrades are likely

8
Rationalizing the company’s capital structure will increase pre-tax earnings significantly
North America
Chrysler/North America
(Value: €16.6bn)
• Given Chrysler’s 2013 EBITDA of approximately €4.4bn,
FCA’s EV is trading at 5.8x Chrysler’s LTM EBITDA
• Chrysler has maintained steady margins in recent years
while growing revenue in the US and Canada by taking
market share
• Since Marchionne took control, North American market
share grew from 9.2% in 2009 to 11.5% in 2013, which is
still below 2007 pre-crisis level of 12.6%
• Chrysler’s previous underperformance can largely be
attributable to management, which is no longer a
concern given Marchionne’s strong track record
1
US, Canada and Mexico respectively represent 83%, 12% and 5% of North American Chrysler vehicles sold
0.0%
5.0%
10.0%
15.0%
$0
$10,000
$20,000
$30,000
Q
1

'
1
0
Q
2

'
1
0
Q
3

'
1
0
Q
4

'
1
0
Q
1

'
1
1
Q
2

'
1
1
Q
3

'
1
1
Q
4

1
1
Q
1

1
2
Q
2

1
2
Q
3

1
2
Q
4

1
2
Q
1

1
3
Q
2

1
3
Q
3

1
3
Q
4

1
3
QoQ Chrysler Group Performance
Qtly Revenue (mm USD) EBITDA Margin EBIT Margin
Chrysler has steadily improved operations in North America versus Ford and GM …
6.00%
11.00%
16.00%
2007 2008 2009 2010 2011 2012 2013
Chrysler Market Share
1

US Canada Mexico Total North America
Marchionne Takes Control
10
Chrysler/North America
(Value: €16.6bn)
• Were Chrysler to trade in the market on a standalone basis at
peer multiples, it would be valued significantly higher than
16.6bn
• From 2010 to 2013, Chrysler grew EBITDA at a 21.0% CAGR
versus -5% for Ford and -1% for GM
• Ford and GM’s TEV/EBITDA LTM are 11.5x and 4.8x respectively
• Given EV/EBIT and EV/EBITDA multiples for Ford and GM,
Chrysler would be worth between €24.0bn and €37.1bn, or
90% to 138% of FCA’s current EV with net pension obligations
… yet still trades at a discounted valuation
$0
$5,000
$10,000
$15,000
$20,000
2010 2011 2012 2013
Annual EBITDA (mn USD)
Chrysler GM Ford
$0
$5,000
$10,000
2010 2011 2012 2013
Annual EBIT (mn USD)
Chrysler GM Ford
11
How you improve a brand
2007 Jeep Grand Cherokee V8
• Base price: $34,690
• 13 mpg city, 20 mpg highway
• 0-60 in 9 seconds
12
2014 Jeep Grand Cherokee V8
• Base price: $36,790
• 18 mpg city, 26 mpg highway
• 0-60 in 7 seconds

• Chrysler’s reorganization strategy is focused on improving its products and relying
on existing brands to drive consumer demand and take market share
• FCA’s global reach will help Chrysler sell into new markets and increase penetration
in emerging markets
• Producing Chrysler brands for European markets in Italy will reduce idle capacity and
have a meaningful impact on profitability
Chrysler does not need to completely reinvent itself in order to succeed
Valuation of North America
• Chrysler has steadily gained market share and maintained consistent margins since Marchionne
took over in 2009
• Jeep is the #1 SUV brand in the US; Ram trucks sales have experience double digit growth rates since 2009
• New Jeep and Ram models will help Chrysler continue top line growth
13
Segment Financials 2013A 2017E Normalized Low High
Revenue 45,777 € 54,690 € 55,000 € 50,000 € 60,000 €
EBIT Margin 5.0% 5.8% 5.8% 5.0% 6.5%
EBIT 2,290 € 3,149 € 3,190 € 2,500 € 3,900 €
EBITDA 3,820 € 4,985 € 5,026 € 4,336 € 5,736 €
NOPAT 1,489 € 2,047 € 2,074 € 1,625 € 2,535 €
ETR 35.0%
Net Income 968 € 1,330 € 1,348 € 1,056 € 1,648 €
EPS 0.77 € 1.06 € 1.08 € 0.84 € 1.32 €
Fair Value Base Bear Bull
EBIT Multiple 5.20x 4.23x 6.50x
EBITDA Multiple 3.30x 2.44x 4.42x
NOPAT Multiple 8.00x 6.50x 10.00x
EV of Segment 16,588 € 10,563 € 25,350 €
As % of Current Adjusted EV 62.2% 39.6% 95.0%
Value Per Share 13.26 € 8.44 € 20.27 €
NAFTA
International
-7.0%
-5.0%
-3.0%
-1.0%
1.0%
3.0%
80.0%
100.0%
120.0%
140.0%
160.0%
180.0%
2003 2005 2007 2009 2011 2013 2015 2017
Revenue/Assets (lhs)
Revenue/Assets Forecast (lhs)
EBIT Margin (rhs)
Fiat - Focus on Capacity Utilization
• A recovery in European automotive
demand, particularly in Italy, will
naturally increase Fiat’s capacity
utilization and lead to margin expansion
• Increasing demand of higher margin
luxury brands in Italy will improve
profitability significantly
• Plans to shut high cost production
facilities in Italy will remove the only
assets that are losing money on an
operating basis
• The forecast shown incorporates a
further 12% drop in Brazilian sales, after
a 10% drop in 2013 from 2012, and a
significant decrease in EBIT margin
15
Marchionne becomes CEO
In this high fixed cost business, utilization = profitability
Europe
-5%
0%
5%
10%
15%
20%
25%
30%
1000
1200
1400
1600
1800
2000
2200
2400
2600
1
2
/
1
/
1
9
9
5
1
1
/
1
/
1
9
9
6
1
0
/
1
/
1
9
9
7
9
/
1
/
1
9
9
8
8
/
1
/
1
9
9
9
7
/
1
/
2
0
0
0
6
/
1
/
2
0
0
1
5
/
1
/
2
0
0
2
4
/
1
/
2
0
0
3
3
/
1
/
2
0
0
4
2
/
1
/
2
0
0
5
1
/
1
/
2
0
0
6
1
2
/
1
/
2
0
0
6
1
1
/
1
/
2
0
0
7
1
0
/
1
/
2
0
0
8
9
/
1
/
2
0
0
9
8
/
1
/
2
0
1
0
7
/
1
/
2
0
1
1
6
/
1
/
2
0
1
2
5
/
1
/
2
0
1
3
Italian New Car Sales (in thousands, YTD)
Net Mortgage Lending (YoY % Change)
Fiat Europe (Value: €4.2bn)
Italian Recovery
• Automotive demand has fallen more in
Italy than in peer countries that avoided
severe dislocation in local credit markets
• Fiat’s Italian sales were worth €7bn in 2013
(29% market share), making it the most
exposed to the European PIIGS among large
auto manufacturers
• Reduced banking solvency concerns will
lead to a recovery in automotive financing
• Fiat is very well placed to benefit from the
recovery in Italian demand for durable
goods
• A recovery to 2.2mn sales per year would
imply a €5bn increase in Fiat’s revenue if
market share remains roughly constant
17 A return to normalcy in Italian credit markets will drive a recovery in automotive demand
How to relaunch Alfa Romeo
18 A timeless brand and key technology from Ferrari/Maserati gives Marchionne the wherewithal to turn around Alfa Romeo
• Increasing volumes of higher margin luxury brands by employing idle capacity in
Italian plants will have a meaningful impact on profitability
• Goal of tripling production to 300,000 units/year would add nearly €1bn of EBIT
2007 Alfa Romeo GT Q2
• Base price: $42,400
• 0-60 in 8.2 seconds
2014 Alfa Romeo 4C
• Base price: $55,000
• 0-60 in 4.2 seconds
Valuation of Europe
• Improved capacity utilization and gradual rollbacks of sales incentives should lead a return to
profitability
• Operational synergies with Chrysler will improve overall efficiency and allow for higher
normalized EBIT margins in the future
19
Prior Peak
Segment Financials 2007A 2013A 2017E Normalized Low High
Revenue 26,812 € 17,420 € 24,911 € 23,000 € 21,000 € 27,000 €
EBIT Margin 3.0% -4.2% 3.7% 3.3% 2.5% 4.0%
EBIT 803 € (737) € 910 € 748 € 525 € 1,080 €
EBITDA 180 € 2,414 € 2,251 € 2,029 € 2,584 €
NOPAT 562 € (516) € 637 € 523 € 368 € 756 €
ETR 30.0%
Net Income 393 € (361) € 446 € 366 € 257 € 529 €
EPS 31.5% (0.29) € 0.36 € 0.29 € 0.21 € 0.42 €
Fair Value Base Bear Bull
EBIT Multiple 5.60x 4.55x 7.00x
EBITDA Multiple 1.86x 1.18x 2.93x
NOPAT Multiple 8.00x 6.50x 10.00x
EV of Segment 4,186 € 2,389 € 7,560 €
As % of Current Adjusted EV 15.7% 9.0% 28.3%
Value Per Share 3.35 € 1.91 € 6.04 €
Europe
Latin America
Latin America/Brazil (Value: €5.5bn)
• Fiat is the largest auto manufacturer
in Brazil and had the highest reported
profit in the region in 2013
• In Brazil, low interest rates led to
unsustainable growth in consumer
and business lending
• The coming recession will likely
involve sharp increases in non-
performing loans and a significant
reduction in the availability of credit
• Long-term fundamentals of Brazilian
automotive demand (growing
population and gradually increasing
living standards) remain positive
21 Fiat has a dominant position in Brazil where long term fundamentals remain positive
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
1
2
/
1
/
1
9
9
5
1
0
/
1
/
1
9
9
6
8
/
1
/
1
9
9
7
6
/
1
/
1
9
9
8
4
/
1
/
1
9
9
9
2
/
1
/
2
0
0
0
1
2
/
1
/
2
0
0
0
1
0
/
1
/
2
0
0
1
8
/
1
/
2
0
0
2
6
/
1
/
2
0
0
3
4
/
1
/
2
0
0
4
2
/
1
/
2
0
0
5
1
2
/
1
/
2
0
0
5
1
0
/
1
/
2
0
0
6
8
/
1
/
2
0
0
7
6
/
1
/
2
0
0
8
4
/
1
/
2
0
0
9
2
/
1
/
2
0
1
0
1
2
/
1
/
2
0
1
0
1
0
/
1
/
2
0
1
1
8
/
1
/
2
0
1
2
6
/
1
/
2
0
1
3
Government Debt/GDP
Private Debt/GDP
Total Debt/GDP
Valuation of Latin America
• Fiat’s Brazilian business has a history of being fast growing and consistently profitable with high
returns on capital, and it deserves a higher multiple
• Fiat has 22% market share in Brazil and a large domestic manufacturing base – a necessity in a
country with high local content requirements
22
While 2011 EBIT margins may not be sustainable, the Brazilian business is very profitable and total market demand will
grow
Prior Peak
Segment Financials 2011A 2013A 2017E Normalized Low High
Revenue 11,068 € 9,973 € 12,125 € 12,000 € 11,000 € 14,000 €
EBIT Margin 12.5% 4.9% 8.6% 8.5% 7.5% 11.0%
EBIT 1,385 € 492 € 1,040 € 1,020 € 825 € 1,540 €
EBITDA 1,890 € 1,136 € 1,673 € 1,654 € 1,459 € 2,174 €
NOPAT 928 € 330 € 696 € 683 € 553 € 1,032 €
ETR 33.0%
Net Income 622 € 221 € 467 € 458 € 370 € 691 €
EPS 0.50 € 0.18 € 0.37 € 0.37 € 0.30 € 0.55 €
Fair Value Base Bear Bull
EBIT Multiple 5.36x 4.36x 6.70x
EBITDA Multiple 3.31x 2.46x 4.75x
NOPAT Multiple 8.00x 6.50x 10.00x
EV of Segment 5,467 € 3,593 € 10,318 €
As % of Current Adjusted EV 20.5% 13.5% 38.7%
Value Per Share 4.37 € 2.87 € 8.25 €
Latin America
Luxury & Performance
Brands
A unique, obscured asset with the best operating and financial performance in the industry
Luxury Brands –
Ferrari & Maserati (Value: €6.9bn)
• Stable, high margin business with real pricing power
• Very attractive R&D synergies found using 2-3 year old Ferrari technology
in Maserati cars
• Uncertain if Fiat willing to monetize but given margin, growth and
pricing power Ferrari is a €4bn - €7bn asset (€3.50- €5.50/sh)
1,2

• Agnelli family has been supportive of value maximizing spinoffs (Fiat Industrial spun off to shareholders in late 2010)
• Using the valuation of Ferrari peer Aston Martin’s sale of 37.5% of the company to Investindustrial
in 2013 would value Ferrari alone at €7bn
3

• Successful relaunching of Maserati in 2002 gives confidence in Fiat’s ability to reestablish the
Alfa Romeo brand outside of Europe
24
1
Net to Fiat’s 90% ownership of Ferrari.
2
No true public comparable companies exist. Toyota and BMW have the highest margins of public automakers (9.5-
10.5%) and trade at 9.0-9.5x EBIT Multiples
3
http://www.bloomberg.com/news/2012-12-07/investindustrial-to-purchase-37-5-stake-in-aston-martin.html
Luxury Brands –
Ferrari & Maserati (Value: €6.9bn)
• EBIT to grow from €535mm in 2013 to €923mm in
2015 as Maserati production increases from 15,400
units/year – 50,000 units/year (all capacity is online
and Maserati gross margins now higher than Ferrari)
• Pricing power:
• 12% and growing EBIT margin business (vs.
3.5% for FCA)
• Two year waiting list for Ferrari (intentionally
limiting sales to 7,000 units/year)
• 22,500 orders outstanding for Maserati
1
• Maserati currently participates in only 22% of luxury
market segments
• Launch of Luxury SUV and E segment high end
sedan in 2015 provides exposure to 100% of
1 million unit/year market

25
1
October 15, 2013 Fiat Group Luxury and Finance – Borsa Italiana, Milan
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
€ 0
€ 500
€ 1,000
€ 1,500
€ 2,000
€ 2,500
€ 3,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Ferrari
Revenue (lhs) EBITDA (lhs) FCF EBITDA Margin (rhs) FCF to sales (rhs)
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
-€ 500
€ 0
€ 500
€ 1,000
€ 1,500
€ 2,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Maserati
Revenue (lhs) EBITDA (lhs) FCF EBITDA Margin (rhs) FCF to sales (rhs)
After relaunching in the US in 2002, Maserati has now primed the market for even more rapid, profitable growth
Valuation of Luxury Brands - Ferrari
• Business deserves premium multiple given brand is one of the few with real pricing power
• Margins are highly resilient
• Ferrari intentionally supplying below actual demand, models assumes no growth in units

26
Prior Peak
Segment Financials 2008A 2013A 2015E Normalized Low High
Revenue 1,921 € 2,300 € 2,569 € 2,575 € 2,200 € 3,000 €
EBIT Margin 17.6% 15.8% 16.0% 16.0% 15.0% 18.0%
EBIT 339 € 364 € 412 € 413 € 330 € 540 €
EBITDA 497 € 406 € 710 € 711 € 628 € 838 €
NOPAT 220 € 237 € 268 € 268 € 215 € 351 €
ETR 35.0%
Net Income 143 € 154 € 174 € 174 € 139 € 228 €
EPS 0.11 € 0.12 € 0.14 € 0.14 € 0.11 € 0.18 €
Fair Value Base Bear Bull
EBIT Multiple 9.30x 8.57x 9.78x
EBITDA Multiple 6.00x 5.00x 7.00x
NOPAT Multiple 14.31x 13.18x 15.05x
EV of Segment
1
3,839 € 2,827 € 5,281 €
As % of Current Adjusted EV 14.4% 10.6% 19.8%
Value Per Share 3.07 € 2.26 € 4.22 €
Ferrari
1
Net to Fiat’s 90% ownership
Conservative multiples relative to peers yields significant value
Valuation of Luxury Brands - Maserati
• Maserati was relaunched in the US in 2002, and after absorbing several years of start up costs
now exhibits similar gross margins as Ferrari
• Capacity has been expanded to support 50,000 units/year in 2015 from 15,400 last year
• Significantly higher room for growth in this segment of the market

27
Annualized
Segment Financials 4Q13 2013A 2015E Normalized Low High
Revenue 3,104 € 1,659 € 4,911 € 5,000 € 4,000 € 5,750 €
EBIT Margin 7.5% 6.4% 10.0% 10.0% 7.5% 15.0%
EBIT 232 € 106 € 491 € 500 € 300 € 863 €
EBITDA 424 € 298 € 683 € 692 € 492 € 1,054 €
NOPAT 151 € 69 € 319 € 325 € 195 € 561 €
ETR 35.0%
Net Income 98 € 45 € 208 € 211 € 127 € 364 €
EPS 0.08 € 0.04 € 0.17 € 0.17 € 0.10 € 0.29 €
Fair Value Base Bear Bull
EBIT Multiple 6.23x 4.92x 6.11x
EBITDA Multiple 4.50x 3.00x 5.00x
NOPAT Multiple 9.58x 7.57x 9.40x
EV of Segment 3,113 € 1,476 € 5,272 €
As % of Current Adjusted EV 11.7% 5.5% 19.8%
Value Per Share 2.49 € 1.18 € 4.21 €
Maserati
A highly profitable, high growth business
Asia
Valuation of Asian Business
• Despite being late to Asia, the Jeep products have been hugely successful in recent years and
consumer demand remains very strong
• Shipments increased 58% year over year to 163,000 in 2013
• FCA has sales points in 126 Chinese cities and there are nearly 500 cities with populations over
500,000
29
Prior Peak
Segment Financials 2011A 2013A 2017E Normalized Low High
Revenue 2,086 € 4,621 € 5,670 € 5,600 € 5,000 € 8,000 €
EBIT Margin 6.2% 6.9% 7.9% 7.5% 6.75% 8.0%
EBIT 129 € 319 € 448 € 420 € 338 € 640 €
EBITDA 224 € 617 € 790 € 762 € 680 € 982 €
NOPAT 97 € 239 € 336 € 315 € 253 € 480 €
ETR 25.0%
Net Income 73 € 179 € 252 € 236 € 190 € 360 €
EPS 0.06 € 0.14 € 0.20 € 0.19 € 0.15 € 0.29 €
Fair Value Base Bear Bull
EBIT Multiple 6.00x 4.88x 7.50x
EBITDA Multiple 3.31x 2.42x 4.89x
NOPAT Multiple 8.00x 6.50x 10.00x
EV of Segment 2,520 € 1,645 € 4,800 €
As % of Current Adjusted EV 9.4% 6.2% 18.0%
Value Per Share 2.01 € 1.32 € 3.84 €
Asia-Pacific
Current penetration only focused on 1
st
tier cities, future growth to be driven by build out in 2
nd
and 3
rd
tier cities
Management Track
Record
Management & Track Record
31
• Fiat under Marchionne has a great track record of
creating value for shareholders
• Some market participants point to missed goals from
the 2010 5-year plan as a sign that management is
unreliable, but this is unfair because the Euro crisis
could not have been predicted by management a
year in advance
• Marchionne’s incentives are fully aligned with
shareholders as he has vested options on 5mn
shares with a strike price of €13.37 in addition to
10.7mn shares with a strike of €6.583
5%
-9%
3%
6%
0%
9%
-9%
0%
8%
-1%
-15%
-10%
-5%
0%
5%
10%
15%
Fiat Ford Toyota VW Renault
CAGR (2004-2013)
Revenue/Share EBITDA/Share
Under Marchionne’s stewardship, FCA has generated best in class financial performance
Valuation
Fair Value
TEV Per Share TEV Per Share TEV Per Share
Chrysler 16,588 € 13.26 € 10,563 € 8.44 € 25,350 € 20.27 €
Fiat-Europe 4,186 € 3.35 € 2,389 € 1.91 € 7,560 € 6.04 €
Fiat-Brazil 5,467 € 4.37 € 3,593 € 2.87 € 10,318 € 8.25 €
Asia-Pac 2,520 € 2.01 € 1,645 € 1.32 € 4,800 € 3.84 €
Luxury Brands
1
6,952 € 5.56 € 4,303 € 3.44 € 10,553 € 8.44 €
Parts 1,000 € 0.80 € - € - € 2,000 € 1.60 €
Total 36,714 € 29.35 € 22,492 € 17.98 € 60,581 € 48.43 €
TEV Per Share TEV Per Share TEV Per Share
Less: Debt (29,306) € (23.43) € (29,306) € (23.43) € (29,306) € (23.43) €
Add: Cash 19,439 € 15.54 € 19,439 € 15.54 € 19,439 € 15.54 €
Total Equity Value 26,847 € 21.46 € 12,625 € 10.09 € 50,714 € 40.55 €
Less: Underf unded Pension (6,000) € (4.80) € (6,000) € (4.80) € (6,000) € (4.80) €
Adjusted Total
Equity Value
% Upside 91.4% 91.4% -39.2% -39.2% 310.4% 310.4%
Sum of the Parts
35.75 €
Base Bear Bull
2013A
44,714 € 5.30 € 6,625 € 16.67 € 20,847 €
Sum-of-the-Parts
33
Recommend investors buy Fiat shares with a target share price of €16.50; over 90% upside
• Market significantly underestimating transformative
nature of Chrysler consolidation. Chrysler alone is
conservatively worth €16.5bn and Ferrari/Maserati are
worth €6.9bn, which minimizes downside
• Chrysler acquisition improves the firm by reducing
management distraction, leveraging future production
and R&D synergies and FCA’s improved credit profile
• FCA’s value is misunderstood due to a complicated
capital structure and several obscured assets
• FCA has great brands managed by excellent capital
allocators and they are taking share in key markets
• FCA trades at sub 4.0x normalized earnings
• Fair Value: €16.50 (8.0x base normalized EPS of €2.05)
1
Net to Fiat’s 90% ownership of Ferrari
Special Thanks To
Thomas Schweitzer
Sam White
tschweitzer15@gsb.columbia.edu
swhite15@gsb.columbia.edu



34
Appendix
Ticker Name CUR EV '14 P/E '15 P/E '16 P/E
'14 EV /
EBIT
'15 EV /
EBIT
'16 EV /
EBIT
'14 EV /
EBITDA
'15 EV /
EBITDA
'16 EV /
EBITDA
Gross
Margin
EBIT
Margin
NI
Margin
VOW GR VOLKSWAGEN AG € 165,980 8.31 7.39 6.80 13.05 11.30 10.34 6.59 6.10 5.66 18.1% 6.3% 4.6%
7203 JT TOYOTA MOTOR CORP € 219,355 9.42 8.80 7.97 12.63 11.37 10.39 9.28 8.44 7.80 18.8% 9.4% 4.4%
DAI GR DAIMLER AG € 143,601 11.81 10.06 9.19 14.88 12.87 11.80 9.81 8.74 8.03 21.6% 6.7% 5.8%
GM GENERAL MOTORS CO € 38,617 9.20 6.95 6.17 6.64 5.15 4.90 3.82 3.18 2.95 13.2% 3.6% 3.4%
F FORD MOTOR CO € 44,495 11.80 8.51 8.01 9.44 6.24 4.58 5.93 4.60 4.48 12.8% 3.7% 4.9%
BMW GR BAYERISCHE MOTOREN WERK € 114,009 10.53 10.02 9.67 13.64 13.19 12.84 9.38 9.06 7.94 20.1% 10.4% 7.0%
7201 JT NISSAN MOTOR CO LTD € 60,110 10.59 8.95 7.69 16.43 13.10 11.33 9.28 8.10 7.38 16.9% 4.7% 3.6%
UG FP PEUGEOT SA € 28,342 11.22 8.37 64.63 24.33 18.50 10.08 7.81 6.63 15.0% -0.3% -4.3%
RNO FP RENAULT SA € 43,632 9.29 7.10 6.14 31.48 22.39 18.09 9.80 8.54 7.88 17.9% 3.0% 1.4%
F IM FIAT SPA € 31,138 13.15 8.08 6.25 8.61 7.34 6.49 3.59 3.26 2.87 14.1% 3.9% 1.0%
Mean Peer Group (EX FIAT): 10.12 8.78 7.78 20.31 13.33 11.42 8.22 7.17 6.53 17.2% 5.3% 3.4%
FIAT Valuation Dif f erential vs. peer group: 29.9% -7.9% -19.6% -57.6% -45.0% -43.2% -56.3% -54.6% -56.1% -17.8% -26.0% -69.6%
Fiat Ex Luxury Brands € 24,186 7.72 4.04 2.87 8.47 7.24 6.21 3.15 2.96 2.56 14.1% 3.0% 1.0%
Mean Peer Group (EX FIAT): 10.12 8.78 7.78 20.31 13.33 11.42 8.22 7.17 6.53 17.2% 5.3% 3.4%
FIAT Valuation Dif f erential vs. peer group: -23.7% -54.0% -63.1% -58.3% -45.7% -45.7% -61.6% -58.7% -60.9% -17.8% -42.8% -71.4%
Relative Valuation
36

Source: Bloomberg as of 5/2/2014. Luxury Brands valued at €6.952bn
Across most metrics, Fiat trades at a sizeable discount to peers
Bear Case
• Despite success of Chrysler, FCA remains free cash flow negative and the company
needs a recovery in Europe to return to positive cash flow
• FCA is operating in a cyclical and capital intensive industry and the company carries
substantial leverage
• Obstructive European labor laws will prevent FCA from rationalizing production and
achieving high levels of capacity utilization
• Credit overhang and rising non-performing loans could lead to a funding stop in Brazil
• High expectations for Jeep and Maserati leave room to disappoint

37
Risks and Mitigants
• Continued troubles in the global economy, particularly Italy and Brazil, could hurt automobile sales
• Consumers will eventually need to purchase new cars as maintaining older ones becomes prohibitively expensive
• Large ownership by Agnelli family – approximately 31% of the company. If they look to exit their
position, problems could arise
• John Elkann, who is Gianni Agnelli’s grandson, is Chairman of the company. The family has mostly been passive, but is
looking to maintain its large stake. Elkann has demonstrated considerable faith in Marchionne’s abilities
• Marchionne has said he will stay through 2016, but it is uncertain what will happen if he decides to
leave then. He said it is highly likely that his successor will be an internal candidate
• Marchionne’s options give him substantial incentives to stay and improve shareholder value
• There are large pension liabilities, with approximately €6bn in unfunded employee benefits and other
provisions
• The trend here is positive as unfunded amount decreased from €8bn in 2012 to €6bn in 2013
• Should the company issue convertible debt, there could be potential dilution in share value
• Unsubstantiated rumor, no real need for additional equity in the business
38
Chrysler Acquisition
• Fiat acquired Chrysler through a series of transactions between June
2009 and January 2014 for a total cash outlay of approximately $4.4bn
• The initial transaction was a Section 363 bankruptcy sale for 20% of
Chrysler, which occurred after it declared Chapter 11 bankruptcy
• Creditors appealed the sale, but were eventually overruled to preserve
going concern value and prevent liquidation
• Fiat increased its ownership by meeting performance targets and shrewd
negotiating with the US Treasury, Canadian Government and VEBA Trust
• Fiat purchased the remaining 41.5% from VEBA trust for $4.35bn in
January 2014, which included $1.75bn in cash from Fiat, $1.9bn from
Chrysler and an additional $700mn in contributions over the next four
years
• Fiat’s cash outlay of approximately $4.4bn compares with $7.4bn that
Cerberus paid for 80% of the company in 2006 and $37bn that Daimler-
Benz paid in 1998, although these amounts include Chrysler Financial,
which Cerberus sold to TD for $6.3bn in December 2010
39
20%
5%
5%
16%
7.5%
5%
41.5%
363 Bankruptcy Sale (4/30/2009)
Performance Event 1 (1/10/2011)
Performance Event 2 (4/11/2011)
UST Call Options (5/24/2011)
Remaining Call Options (7/21/2011)
Performance Event 3 (1/5/2012)
Purchase From VEBA Trust (1/5/2014)
Fiat Ownership Stake
Marchionne’s negotiating prowess secured Chrysler at an extremely attractive valuation
Overview of Ownership
• The Agnelli family is the largest shareholder in the company, holding just under 31%
• Once the firm lists on the NYSE (expected in October), there will likely be a large shift in
shareholder base
40
Source: Capital IQ
Common % of Market Value
Holder Stock Held Common (EUR in mm)
Giovanni Agnelli e C. S.a.p.az. 375,972,150
30.9% 3,267.6 €
Baillie Gif f ord & Co. 61,286,212
5.0% 532.6 €
BlackRock, Inc. (NYSE:BLK) 38,449,885
3.2% 334.2 €
Norges Bank Investment Management 25,139,854
2.1% 218.5 €
Capital Research and Management Company 22,982,403
1.9% 199.7 €
Grantham, Mayo, Van Otterloo & Co. LLC 12,992,183
1.1% 112.9 €
Oldf ield Partners LLP 11,880,608
1.0% 103.3 €
The Vanguard Group, Inc. 11,034,209
0.9% 95.9 €
Sunamerica Asset Management, LLC 11,028,138
0.9% 95.8 €
Bessemer Investment Management LLC 5,734,633
0.5% 49.8 €
Agnelli family has a history of supporting value creative initiatives at its companies
Overview of
Management
• Sergio Marchionne:
• Has been CEO of Fiat since 2004 and has led Chrysler since 2009
• Oversaw the turnaround of SGS
1
, which is the world’s leading inspection,
verification, testing and certification company, over 13 years. The Agnelli
family sold its 15 percent SGS holding in 2013 at a 14x EBITDA valuation for
€2bn, netting a capital gain of €1.5bn
• Unusually nonconformist style and acts as an owner of the business
• Focuses on creating a more collaborative culture between units to enhance
shareholder value

• John Elkann:
• Grandson of Gianni Agnelli and current scion of the Agnelli dynasty
• Has served as Chairman of Fiat SpA since 2010
• He is currently CEO and Chairman of Exor
2

• Member of the Board of Directors of News Corp and is a board member of
Fiat Industrial, The Economist Group and Banca Leonardo
41 Best in class management operating business as an owner
1
Agnelli family portfolio company
2
Agnelli family holding company for Fiat, Fiat Industrial shares
Current Bear Base Bull
Option Number of Shares Strike Expiry € 8.65 € 5.30 € 16.50 € 35.75
1 10,670,000 6.583 € 1-Jan-16 22,054,890 € - € 105,814,390 € 311,211,890 €
2 5,000,000 13.370 € 3-Nov-14 - € - € 15,650,000 € 111,900,000 €
Total: 15,670,000 8.749 € 22,054,890 € - € 121,464,390 € 423,111,890 €
% Change: -100.0% 450.7% 1818.4%
CEO Incentives
• Marchionne currently has options to purchase 10,670,000 shares at a
strike of €6.583 per share with expiration of January 1, 2016 and
other options to purchase 5,000,000 shares at a strike of €13.37 per
share with expiration of November 3, 2014
42 Management’s interests are well aligned with shareholders
Debt Maturity Schedule
43
€ 0.00
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ 3.50
€ 4.00
€ 4.50
€ 5.00
2014 2015 2016 2017 2018 2019 2020 2021
Corporate Debt Maturity Schedule (€ bn)
Weighted Average Interest Rate: 6.7%
Summary Model
45
2011 2012 2013 2014 2015 2016 2017 2018 2019
FY FY FY FY FY FY FY FY FY
(€ million) 365 366 365 365 365 366 365 365 365
Net revenues 59,559 € 83,957 € 86,816 € € 93,321 € 97,749 € 98,545 € 104,403 € 105,199 € 110,167
% Growth 66.0% 41.0% 3.4% 7.5% 4.7% 0.8% 5.9% 0.8% 4.7%
Cost of  sales 50,704 71,474 74,570 80,537 83,191 83,219 87,636 88,133 92,291
SG&A 5,047 6,731 6,689 7,094 7,430 7,491 7,936 7,997 8,374
Research and development costs 1,367 1,835 2,231 2,498 2,617 2,638 2,795 2,816 2,949
Other income/(expenses) (49) (103) 68 - - - - - -
TRADING PROFIT/(LOSS) 2,392 3,814 3,394 3,440 4,745 5,414 6,253 6,470 6,770
Result f rominvestments:
Share of  equity method the prof it/(loss) 146 94 87 - - - - - -
Other income/(expenses) f rominvestments (15) 13 10 - - - - - -
Gains/(losses) on the disposal of  investments 21 (91) 8 - - - - - -
Restructuring costs (102) (15) (28) - - - - - -
Other unusual income/(expenses) 1,025 (138) (499) (300) - - - - -
Total 1,075 (137) (422) (300) - - - - -
EBIT 3,467 3,677 2,972 3,140 4,745 5,414 6,253 6,470 6,770
DD&A 3,358 4,134 4,574 4,822 5,055 5,272 5,489 5,705 5,922
EBITDA 6,825 7,811 7,546 7,962 9,800 10,686 11,741 12,175 12,692
Financial income/(expenses) (1,282) (1,641) (1,964) (1,859) (1,600) (1,351) (1,120) (987) (987)
EBT 2,185 2,036 1,008 1,281 3,145 4,063 5,133 5,483 5,783
Income taxes (534) (625) (943) (513) (1,258) (1,625) (2,053) (2,193) (2,313)
ETR 24% 31% 94% 40% 40% 40% 40% 40% 40%
PROFIT/(LOSS) FROMCONTINUING OPERATIONS 1,651 1,411 1,951 769 1,887 2,438 3,080 3,290 3,470
Post‐tax prof it/(loss) f romDiscontinued Operations - - (943) - - - - - -
PROFIT/(LOSS) FORTHEPERIOD 1,651 1,411 1,008 769 1,887 2,438 3,080 3,290 3,470
   
PROFIT/(LOSS) FORTHEPERIODATTRIBUTABLETO:   
Owners of  the parent 1,334 348 904 769 1,887 2,438 3,080 3,290 3,470
Non‐controlling interests 317 1,063 1,047 - - - - - -
     
(in €)
BASICEARNINGS/(LOSS) PERORDINARY SHARE 1.10 € 0.29 € 0.74 € 0.63 € 1.55 € 2.01 € 2.53 € 2.71 € 2.85 €
Income Statement
46
2011 2012 2013 2014 2015 2016 2017 2018 2019
FY FY FY FY FY FY FY FY FY
(€ million) 365 366 365 365 365 366 365 365 365
CASHFLOWS FROM/(USEDIN) OPERATING ACTIVITIES:
Prof it/(loss) f or the period 1,651 € 1,411 € 1,951 € 769 € 1,887 € 2,438 € 3,080 € 3,290 € 3,470 €
Amortisation and depreciation 3,358 4,134 4,574 4,822 5,055 5,272 5,489 5,705 5,922
(Gains)/losses f romdisposal of  non‐current assets - 105 23
Other non‐cash items (1,106) 47 522
Dividends received 105 89 92
Change in provisions (116) 77 444
Change in def erred income taxes (19) (72) (1,578)
Change in items due to buy‐back commitments (62) (51) 92
Change in operating lease items (28) (10) 1
Change in working capital 1,412 714 1,468 122 830 150 - - -
TOTAL CASHFLOWS FROM OPERATING ACTIVITIES: 5,195 6,444 7,589 5,713 7,772 7,860 8,568 8,995 9,392
CASHFLOWS FROM/(USEDIN) INVESTMENT ACTIVITIES:
Investments in:     
Property, plant and equipment and intangible assets (5,528) (7,534) (7,440) (7,000) (6,500) (6,500) (6,500) (6,500) (6,500)
Investments in consolidated subsidiaries and other investments (22) - (19)
Proceeds f romthe sale of  non‐current assets 329 139 48
Net change in receivables f romf inancing activities (1,218) (24) (449)
Change in other current securities (43) (64) (10)
Other changes 5,624 (30) (216)
TOTAL CASHFLOWS FROM INVESTMENT ACTIVITIES: (858) (7,513) (8,086) (7,000) (6,500) (6,500) (6,500) (6,500) (6,500)
CASHFLOWS FROM/(USEDIN) FINANCING ACTIVITIES:     
Issuance of  bonds 2,500 2,535 2,866 1,750 (2,500) (2,500) (2,500) (2,500) -
Repayment of  bonds (2,448) (1,450) (1,000)
Issuance of  medium‐termborrowings 2,149 1,925 3,188
Repayment of  medium‐termborrowings (3,895) (1,528) (2,549)
Net change in other f inancial payables and other f inancial assets/liabilities 2,761 197 686
Capital increase 143 22 4
Dividends paid 41 (58) (1)
Distribution f or tax withholding obligations on behalf  of  non‐controlling interests  (181) (6)
Purchase of ownership interests in subsidiaries (438)
TOTAL  CASHFLOWS FROM FINANCING ACTIVITIES:    632 1,643 3,188 1,750 (2,500) (2,500) (2,500) (2,500) -
Translation exchange dif f erences (419) (909) - - - - - -
TOTAL CHANGEINCASHANDCASHEQUIVALENTS  4,969 155 1,782 463 (1,228) (1,140) (432) (5) 2,892
CASHANDCASHEQUIVALENTS AT BEGINNING OF PERIOD 11,967 17,526 17,657 19,439 19,902 18,674 17,534 17,102 17,097
CASHANDCASHEQUIVALENTS AT ENDOF PERIOD 17,526 17,657 19,439 19,902 18,674 17,534 17,102 17,097 19,989
STATEMENT OF CASHFLOWS
47
2011 2012 2013 2014 2015 2016 2017 2018 2019
FY FY FY FY FY FY FY FY FY
(€ million) 365 366 365 365 365 366 365 365 365
ASSETS     
Inventories 9,123 € 9,295 € 10,230 € € 10,997 € 11,518 € 11,612 € 12,302 € 12,396 € 12,982
Trade receivables 2,625 2,702 2,406 2,586 2,709 2,731 2,893 2,915 3,053
Receivables f romf inancing activities 3,968 3,727 3,671 3,946 4,133 4,167 4,415 4,448 4,658
Current tax receivables 369 236 291 291 291 291 291 291 291
Other current assets 2,088 2,163 2,302 2,302 2,302 2,302 2,302 2,302 2,302
Current f inancial assets: 789 807 815 815 815 815 815 815 815
Current investments 33 32 35 35 35 35 35 35 35
Current securities 199 256 247 247 247 247 247 247 247
Other f inancial assets 557 519 533 533 533 533 533 533 533
Cash and cash equivalents 17,526 17,657 19,439 19,902 18,674 17,534 17,102 17,097 19,989
Total Current assets 36,488 36,587 39,154 40,839 40,442 39,452 40,121 40,265 44,090
Intangible assets 18,200 19,284 19,509 19,509 19,509 19,509 19,509 19,509 19,509
Property, plant and equipment 13,213 22,061 22,843 25,021 26,466 27,694 28,705 29,500 30,078
Investments and other f inancial assets: 4,987 2,287 2,260 2,260 2,260 2,260 2,260 2,260 2,260
Investments accounted f or using the equity method 20,785 1,507 1,561 1,561 1,561 1,561 1,561 1,561 1,561
Other investments and f inancial assets 2,660 780 699 699 699 699 699 699 699
Leased assets 1,579 1 1 1 1 1 1 1 1
Def ined benef it plan assets 1,081 93 105 105 105 105 105 105 105
Def erred tax assets 45 1,738 2,893 2,893 2,893 2,893 2,893 2,893 2,893
Total Non‐current assets 39,105 45,464 47,611 49,789 51,234 52,462 53,473 54,268 54,846
Assets held f or sale 1,690 55 9 - - - - - -
TOTAL ASSETS 77,283 82,106 86,774 90,628 91,676 91,914 93,594 94,533 98,936
EQUITY ANDLIABILITIES       
Equity:
Equity attributable to owners of  the parent 8,727 6,187 8,326 12,623 15,262 17,836 20,813 24,089 27,472
Non‐controlling interest 3,533 2,182 4,258 750 750 750 750 750 750
Provisions:
Employee benef its 7,026 11,486 8,265 8,265 8,265 8,265 8,265 8,265 8,265
Other provisions 8,598 8,790 9,095 9,095 9,095 9,095 9,095 9,095 9,095
Debt:
Asset‐backed f inancing 710 449 596 596 596 596 596 596 596
Other debt 26,062 27,440 29,306 31,056 28,556 26,056 23,556 21,056 21,056
Other f inancial liabilities 429 201 137 137 137 137 137 137 137
Trade payables 16,418 16,558 17,235 18,526 19,405 19,563 20,726 20,884 21,871
Current tax payables 230 231 314 338 354 356 378 380 398
Def erred tax liabilities 760 801 278 299 313 316 334 337 353
Other current liabilities 7,538 7,781 8,943 8,943 8,943 8,943 8,943 8,943 8,943
Liabilities held f or sale - 21 - - - - - -
TOTAL EQUITY ANDLIABILITIES 80,031 82,106 86,774 90,628 91,676 91,914 93,594 94,533 98,936
BALANCESHEET
48
2011 2012 2013 2014 2015 2016 2017 2018 2019
FY FY FY FY FY FY FY FY FY
(€ million) 365 366 365 365 365 366 365 365 365
Revenues:
NAFTA 33,800 € 43,521 € 45,777 € 49,091 € 52,644 € 51,136 € 54,690 € 53,182 € 56,735 €
LATAM 11,068 11,062 9,973 8,976 9,448 9,973 10,498 11,023 11,548
APAC 2,086 3,128 4,621 5,670 5,670 5,670 5,670 5,670 5,670
EMEA 20,078 17,800 17,420 19,573 21,352 23,132 24,911 26,691 27,580
Luxury Brands 4,000 8,512 7,134 7,134 7,134 7,134 7,134
Components and Production Systems 1,500 1,500 1,500 1,500 1,500 1,500
Other activities
Unallocated items & adjustments
Total net Revenues 67,032 75,511 81,791 93,321 97,749 98,545 104,403 105,199 110,167
EBIT:
NAFTA 1770 2,491 € 2,290 € 2,456 € 2,891 € 2,944 € 3,149 € 3,062 € 3,267 €
LATAM 1385 1,025 492 269 € 373 € 570 € 800 € 945 € 990 €
APAC 119 255 318 390 € 410 € 430 € 450 € 470 € 490 €
EMEA -897 (470) (737) (489) € 120 € 520 € 910 € 1,050 € 1,085 €
Luxury Brands 470 € 762 € 903 € 903 € 903 € 903 € 903 €
Components and Production Systems 146 145 145 145 145 145 145
Other activities
Unallocated items & adjustments (93) € (98) € (99) € (104) € (105) € (110) €
EBIT: 2,377 3,301 2,979 3,440 4,745 5,414 6,253 6,470 6,770
EBIT Margin (%):
NAFTA 5.2% 5.7% 5.0% 5.0% 5.5% 5.8% 5.8% 5.8% 5.8%
LATAM 12.5% 9.3% 4.9% 3.0% 4.0% 5.7% 7.6% 8.6% 8.6%
APAC 5.7% 8.2% 6.9% 6.9% 7.2% 7.6% 7.9% 8.3% 8.6%
EMEA -4.5% -2.6% -4.2% -2.5% 0.6% 2.2% 3.7% 3.9% 3.9%
Luxury Brands 11.8% 15.0% 12.7% 12.7% 12.7% 12.7% 12.7%
Components and Production Systems
Other activities
Unallocated items & adjustments (as % of revenue) 0.0% 0.0% 0.0% -0.1% -0.1% -0.1% -0.1% -0.1% -0.1%
EBIT Margin (%): 3.5% 4.4% 3.6% 3.7% 4.9% 5.5% 6.0% 6.2% 6.1%
Segment Economics
49
2011 2012 2013 2014 2015 2016 2017 2018 2019
FY FY FY FY FY FY FY FY FY
(€ million) 365 366 365 365 365 366 365 365 365
Vehicle Shipments (000s)
NAFTA 1783 2,115 2,238 2,400 2,574 2,500 2,674 2,600 2,774
LATAM 929 979 950 855 900 950 1,000 1,050 1,100
APAC 74 103 163 200 200 200 200 200 200
EMEA 1180 1,012 979 1,100 1,200 1,300 1,400 1,500 1,550
Luxury Brands - 22 48 57 57 57 57 57
Vehicle Shipments (000s) 3,966 4,209 4,352 4,603 4,931 5,007 5,331 5,407 5,681
Revenues per vehicle:
NAFTA 20,577 € 20,454 € 20,454 € 20,454 € 20,454 € 20,454 € 20,454 € 20,454 €
LATAM 11,299 € 10,498 € 10,498 € 10,498 € 10,498 € 10,498 € 10,498 € 10,498 €
APAC 30,369 € 28,350 € 28,350 € 28,350 € 28,350 € 28,350 € 28,350 € 28,350 €
EMEA 17,589 € 17,794 € 17,794 € 17,794 € 17,794 € 17,794 € 17,794 € 17,794 €
Luxury Brands 179,195 € 179,195 € 125,163 € 125,163 € 125,163 € 125,163 € 125,163 €
Total net Revenues 17,940 € 18,792 € 20,276 € 19,824 € 19,681 € 19,585 € 19,456 € 19,393 €
EBIT per vehicle:
NAFTA 993 € 1,178 € 1,023 € 1,023 € 1,123 € 1,178 € 1,178 € 1,178 € 1,178 €
LATAM 1,491 € 1,047 € 518 € 315 € 415 € 600 € 800 € 900 € 900 €
APAC 1,608 € 2,476 € 1,951 € 1,951 € 2,051 € 2,151 € 2,251 € 2,351 € 2,451 €
EMEA (760) € (464) € (753) € (445) € 100 € 400 € 650 € 700 € 700 €
Luxury Brands 21,055 € 16,050 € 15,840 € 15,840 € 15,840 € 15,840 € 15,840 €
EBIT: 599 € 784 € 684 € 747 € 962 € 1,081 € 1,173 € 1,197 € 1,192 €
Vehicle Economics