Chrysler Group LLC Full Year & 4th Quarter 2013 Results Review
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Chrysler Group LLC Full Year & 4th Quarter 2013 Results Review

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Chrysler Group LLC

Chrysler Group LLC

Full Year & 4th Quarter 2013
Results Review

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    Chrysler Group LLC Full Year & 4th Quarter 2013 Results Review Chrysler Group LLC Full Year & 4th Quarter 2013 Results Review Presentation Transcript

    • Chrysler Group LLC Full Year & 4th Quarter 2013 Results Review (U.S. GAAP – Preliminary) January 29, 2014
    • Forward-Looking Statement Thi s do c u me nt c o nt a i ns f o rwa rd-lo o ki ng di s a s te rs a nd o t he r ev e nt s i mpa c t i ng s t a te me nt s t ha t re f le c t ma na ge me nt 's c urre nt v i e ws wi t h re s pec t to f ut ure e v e nts . The wo rds “a nt i c i pa t e, ” “a s s ume , ” “be li e v e , ” “e st i ma t e , ” o ur s upp ly c ha i n; a nd o ur de pe nde nc e o n o ur pa re nt , F ia t . I n a ddi t i o n, a ny pro je c t i o ns or ta rge t s on f ut ure pe rf o rma nc e a re bas e d on t he “e xpe c t , ” “i nt e nd, ” “ ma y , ” “p la n, ” “pro je c t , ” “s ho uld” and s i mi la r e xpre s s i o ns i de nt i f y f o rwa rd-lo o ki ng s t a te me nt s . Suc h s ta t e me nt s a re a s s umpt i o n t ha t t he Co mpa ny ma i nt a i ns i t s s ta t us a s a pa rt ne rs hi p fo r U. S. f e de ra l a nd st a te i nc o me t a x purpo s e s a nd do no t c o nsi de r t he i mpa c t of a s ubje c t t o ris ks a nd unc e rt a i nt i e s , i nc lu di n g, but no t li mi t e d t o : t he e f f ec t iv e i mp le me nt a t i o n o f t he Chry s le r Gro up L L C 2 0 10 – 2 01 4 Bus i nes s Pla n po t e nt i a l c o nv e rs i o n o f t he Co mpa ny i nt o a co rpo ra t e ta x pa y i ng e nt i t y . I f a ny o f t he s e o r o t he r ri s ks a nd unc e rt a i nt i e s o c c ur, o r i f t he as s umpt i o ns un de rly i n g o ut li ne d o n No v e mbe r 4 , 2 0 0 9 a nd s ubs e que nt u p da t e s , i nc ludi n g s uc c es sf ul v e hi c le la unc he s ; i nd us t ry SAAR le v e ls ; c o nt i nue d e c o no mi c a ny of t hes e st a te me nt s pro v e i nc o rre ct , t he n a ct ua l re s ult s ma y be ma t e ri a lly di f f e re nt f ro m t ho s e e xpre s s e d or i mp li e d by s uc h we a kne s s , es pe ci a lly i n No rt h Ame ri c a , i nc lu di n g c o nt i nue d hi gh u ne mp lo y me nt le v e ls a nd li mi t e d a v a i la bi li t y of a f f o rda bly pri c e d f i na nc i ng f o r o ur s t a te me nt s . W e do not i nte nd o r a s s ume a ny o bli ga t i o n t o upda t e a ny f o rwa rd-lo o ki ng s t a t e me nt , w hi c h s pe a ks o nly as of t he da t e o n whi c h i t i s de a le rs a nd co ns ume rs ; i nt ro duc t i o n o f c o mpe t i ng pro duc t s a nd c o mpe t i t i v e pre s s ure s whi c h ma y li mi t o ur a bi li t y t o re duc e s a le s i nc e nt iv es ; s upply ma de . F urt he r de t a i ls o f po t e nt ia l ri s ks t ha t ma y a f f e c t Chry s le r Gro up a re de s c ri be d i n Chry s le r Gro up L L C’ s pe ri o di c re po rts f i le d wi t h t he U. S. di s rupt i o ns Se c uri t i e s a nd Exc ha nge Co mmi s s i o n. re s ult i ng f ro m na t ura l January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 1
    • FY 2013 Financial Highlights Net Revenue ($B) • Increase of 10% primarily due to positive net pricing and higher shipments • Worldwide shipments up 6% to 2,563k units (2,542k shipments adjusted for GDP – see Appendix) Modified Operating Profit ($B) • Modified Operating Profit increased 9% versus the prior year • Increase primarily due to higher shipment volumes and positive pricing that partially offset the increase in vehicle costs due to vehicle content enhancements on newly launched products. Results were also negatively impacted by industrial costs, launchrelated costs and launch delays, as well as a $151M charge in Q2 2013 for the voluntary safety recall and customer satisfaction action related to certain older Jeep products Modified EBITDA ($B) • Modified EBITDA increased 9% versus prior year, consistent with the increase in Modified Operating Profit plus higher depreciation/amortization expense 65.8 72.1 2.8 1.7 1.8 FY 2012 2.9 FY 2013 3.2 4.4% of net revenue FY 2013 FY 2013 13.3 11.6 Cash ($B) 4.4% of net revenue FY 2012 FY 2012 5.5 8.3% of net revenue FY 2012 Dec 31, ‘12 Dec 31, ‘13 • Operations generated positive Free Cash Flow of $2.1B for the year • Total available liquidity of $14.6B as of Dec. 31, 2013, including $1.3B available under a revolving credit facility 1.0 5.9 Net Industrial Cash (Debt) ($B) 8.2% of net revenue (1.0) FY 2013 Net Income ($B) • Net income was $2.8B, including the net favorable effects of infrequent items • Adjusted Net Income was $1.8B, up 9%, which excludes a $962M non-cash tax benefit related to the release of valuation allowances on deferred tax assets and a $24M loss on extinguishment of debt in connection with the June and December re-pricing and amendment of the Term Loan B and Revolving Credit Facility Dec 31, ‘12 Dec 31, ‘13 January 29, 2014 • Net Industrial Cash position achieved for first time • Positive free cash flow of $2.1B during the year drove the change in Net Industrial Cash (Debt) (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 2
    • Modified Operating Profit Walk $ Billions • Volume increase of 110k GDP adjusted vehicle shipments, primarily related to Jeep Cherokee and Ram Pickup $0.3 • Mix was positive primarily reflecting higher retail volumes and lower fleet volumes 1.2 • Positive net price partly driven by vehicle content enhancements on recent launches 1.0 0.0 2.9 (1.8) 3.2 (0.1) 4.4% of net revenue 4.4% of net revenue FY 2012 Volume & Mix Net Price Industrial Costs SG&A Other FY 2013 $(Mils) Q4 2013 Q4 2012 711 694 272 (599) 5 (12) 1,071 January 29, 2014 • Industrial costs impacted by the cost of vehicle content enhancements on newly launched products as well as launch-related costs and launch delays, higher depreciation & amortization, and a $151 million charge in Q2 2013 for the voluntary safety recall and customer satisfaction action related to certain older Jeep products • SG&A costs relatively flat with prior year • Other primarily relates to foreign exchange effects (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 3
    • Cash Walk $ Billions Change in Cash $1.7 Free Cash Flow $2.1 1.7 5.9 (3.4) 11.6 Dec 31, 2012 Modified EBITDA Working Capital Capital & Other Expenditures Pension / OPEB 13.3 (1.3) (0.4) Taxes & Interest Net Principal Payments & FX Free Cash Flow $1.9 Sept 30, ‘13 11.5 (0.8) 1.8 1.4 (1.0) Dec 31, 2013 Dec 31, ‘13 (0.1) (0.2) (0.1) 13.3 Note: Numbers may not add due to rounding January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 4
    • Net Industrial Cash (Debt) $ Billions Carrying Value as of Dec 31, 2013 Carrying Value as of Sept 30, 2013 Dec 31, 2013 B/(W) Sept 30, 2013 Carrying Value as of Dec 31, 2012 Dec 31, 2013 B/(W) Dec 31, 2012 13.3 11.5 1.9 11.6 1.7 Term Loan B 2.9 2.9 - 2.9 - Secured Senior Notes 3.2 3.2 - 3.2 - VEBA Trust Note 4.2 4.2 - 4.3 0.1 Canadian Health Care Trust Notes 0.9 1.0 - 1.1 0.2 Mexican Development Banks Credit Facilities 0.6 0.6 - 0.6 - Other Financial Liabilities 0.6 0.6 0.1 0.5 - Total Financial Liabilities 12.3 12.4 0.1 12.6 0.3 Net Industrial Cash (Debt) 1 1.0 (0.9) 1.9 (1.0) 2.0 Cash 1 Excludes pension and OPEB underfunding Note: Numbers may not add due to rounding January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 5
    • Worldwide Vehicle Sales FY 2013 versus FY 2012 Vehicles (000s) By Market +9% 2,194 210 88 244 1,652 By Brand 2013 +/- 2012 2013 +/- 2012 2,401 254 87 260 60 +7 472 +76 351 +3 695 +44 Int’l (1) Mexico +16 Canada 786 +91 +30 2,194 53 396 348 1,800 2,401 +148 U.S. U.S. Market Share 11.2% U.S. Market Share 11.4% 702 732 FY 2012 FY 2013 FY 2012 FY 2013 Worldwide vehicle sales totaled 592k units in Q4 2013 versus 533k vehicles in Q4 2012, representing an increase of 11% Note – 2013 includes Fiat manufactured Fiat and Alfa Romeo vehicle sales in Mexico; prior to 1/1/13, these vehicles were reported by Fiat S.p.A. (1k in Q4 2012 and 5k in FY 2012) January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 6
    • U.S. Fleet Mix / Dealer Inventory and Days Supply Percentage of Total U.S. Sales Vehicles (000s) 31% Dealer Inventory 509 28% 27% 427 24% 22% 22% 22% 347 358 419 408 387 369 18% 73 67 65 59 79 66 68 62 Days Supply Q1 Q2 Q3 2012 FY Fleet Mix 26% Q4 Q1 Q2 Q3 2013 22% Q4 Q1 Q2 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q4 2013 reflects seasonal increase in U.S. dealer inventory plus launch of the all-new Jeep Cherokee and build-out of 2014 MY Chrysler 200 and Dodge Avenger January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 7
    • FY 2014 Guidance FY 2013 Actual FY 2014 Guidance Worldwide Vehicle Shipments 2.6 M ~2.8 M Net Revenues $72 B ~$80 B Modified Operating Profit $3.2 B $3.7-$4.0 B $1.8 B * $2.3-$2.5 B $2.1 B $0.5-$1.0 B Net Income Free Cash Flow * Reflects Adjusted Net Income and excludes the effects of: • In Q4 2013, $962M non-cash tax benefit related to the release of valuation allowances on deferred tax assets • In Q4 2013, $1M loss on extinguishment of debt related to the December 2013 re-pricing of the Term Loan B • In Q2 2013, $23M loss on the extinguishment of debt related to the June 2013 re-pricing and amendment of the Term Loan B and Revolving Credit Facility January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 8
    • -- Confidential -- Additional Key Data January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 10
    • Q4 2013 Financial Highlights Net Revenue ($B) • Increase of 24% primarily due to higher shipment volumes and positive net pricing • Worldwide shipments up 20% to 736k units , led by the Jeep Cherokee and Ram 1500 pickups 21.2 1,620 17.2 378 Q4 ‘12 Q4 ‘12 Q4 ‘13 659 Q4 ‘13 Modified Operating Profit ($M) • Modified Operating Profit increased 51% versus the prior year to 5.1% of net revenue • Increase due to higher shipment volumes and positive pricing, partly offset by higher industrial and launch-related costs and vehicle content enhancements Modified EBITDA ($M) • Modified EBITDA increased 36% versus prior year, consistent with the increase in Modified Operating Profit plus higher depreciation/amortization expense 1,071 711 4.1% of net revenue Q4 ‘13 11.6 11.5 Dec 31, ‘12 Sept 30, ‘13 Cash ($B) • Free Cash Flow of $1.9B primarily due to higher shipment volumes (working capital), including Jeep Cherokees on shipment hold at the end of Q3 2013 5.1% of net revenue Q4 ‘12 13.3 Dec 31, ‘13 1.0 1,337 7.8% of net revenue 1,813 8.6% of net revenue (1.0) Q4 ‘12 Q4 ‘13 (0.9) Dec 31, ‘12 Sept 30, ‘13 Net Income ($M) • Net income was $1.6B, including the net favorableeffects of infrequent items • Adjusted Net Income was $659M, up 74%, which excludes a $962M noncash tax benefit related to the release of valuation allowances on deferred tax assets and a $1M loss on extinguishment of debt in connection with the December repricing of the Term Loan B Dec 31, ‘13 January 29, 2014 • Total available liquidity of $14.6B as of Dec. 31, 2013, including $1.3B available under a revolving credit facility Net Industrial Cash (Debt) ($B) • Net Industrial Cash position achieved for first time • Positive free cash flow of $1.9B in the quarter drove the change in Net Industrial Cash (Debt) (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 11
    • Structural Costs and Capital Expenditures $ Billions Capital Expenditures Structural Costs 12.1 1 12.9 3.6 2 2.3 2.3 ER&D Sales & Marketing 3.4 2 3.3 3.3 Depreciation & Amortization 2.5 Plant / Corporate 4.0 FY 2012 2.7 4.6 FY 2013 FY 2012 FY 2013 Cost increases primarily due to increased volumes and new product launches 1 Includes certain advertising costs which were not previously reported as structural costs of $0.1B in 2012 2 Excludes non-cash expenditures of $0.2B in 2013 and $0.4B in 2012 January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 12
    • Worldwide Vehicle Shipments FY 2013 versus FY 2012 Vehicles (000s) By Market +6% 2,409 81 227 By Brand 2013 +/- 2012 2,563 60 273 85 (21) +46 (13) +14 2013 +/- 2012 Contract Mfg Int’l Mexico Canada 2,409 81 67 430 2,563 60 65 (21) Contract Mfg (2) 255 269 506 +76 341 (21) 803 +53 719 98 788 +69 FY 2012 FY 2013 362 1,748 FY 2012 1,876 750 +128 U.S. FY 2013 Worldwide vehicle shipments totaled 736k units in Q4 2013 versus 613k vehicles in Q4 2012 representing an increase of 20% Note - 2012 Contract manufactured shipments restated to include all vehicle shipments for which the sale is not reflected by Chrysler Group January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 13
    • Vehicle Sales in U.S. & Canada FY 2013 versus FY 2012 Chrysler Group performance Industry Vehicles (Mils) 14.8 Sales 15.9 +9% FY 2012 1.71 11.4% (up 20 bps) FY 2013 1.78 +7% FY 2012 Market share 14.6% (up 40 bps) Key Messages (period-over-period) • Retail sales (excluding fleet) increased 14% • Retail of retail market share* increased to 10.7%, up 50 bps from the prior year • Fleet mix at 22% vs. 26% in the prior year • Key performers included: • • • • • Jeep Cherokee +26k vehicles (new) Dodge Dart +58k vehicles (+230%) Dodge Durango +18k vehicles (+43%) Ram 1500 Pickup +46k vehicles (+25%) Jeep Grand Cherokee +20k vehicles (+13%) • Retail sales (excluding fleet) increased 7% • Retail of retail market share* at 13.0%, up 30 bps from the prior year • Key performers included: • Jeep Cherokee +2.9k vehicles (new) • Dodge Dart +6.4k vehicles (+185%) • Ram 1500 Pickup +12k vehicles (+25%) FY 2013 * - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet) January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 14
    • Term Loan B and Revolver Re-pricing • In December, lowered annual interest rate on Term Loan B by 75 bps (Term Loan B savings of ~$22M annually)  Combined with the interest rate reduction in June (Term Loan B savings of ~$50M annually), lowered the interest rate on the Term Loan B by 250 bps to the current rate of 3.50% under current market conditions • $1M loss on extinguishment of debt recorded in Q4 2013 ($23M loss recorded in Q2 2013) JUNE 2013 DECEMBER 2013 Borrower Chrysler Group LLC Chrysler Group LLC Facilities $1.3 billion Senior Secured Revolving Credit Facility (“RC”) $2.9 billion Senior Secured Term Loan B (“TL”) $2.9 billion Senior Secured Term Loan B (“TL”) Maturity RC: TL: May 24, 2016 May 24, 2017 TL: May 24, 2017 L+325 bps L+325 bps [previously L+475 bps] [previously L+475 bps] TL: L+275 bps [previously L+325 bps] [previously 1.25%] TL: 0.75% TL: 101 soft call protection for 6 months Indicative Coupon RC: (Annual) TL: LIBOR Floor RC: TL: None 1.00% Optional Prepayments TL: 101 soft call protection for 6 months [previously 1.00%] January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 15
    • Gross Industrial Debt Maturity Schedule $ Billions Financial Liabilities Annual Maturities 12.3 6.9 3.3 0.5 2015 2016 0.6 0.5 2014 Dec 31, 2013 (Carrying Value) 0.5 2017 2018 2019+ 3.4 0.7 7.3 Note: Excluding accrued and accreted interest Face Value 13.0 0.5 0.5 0.6 Note: Numbers may not add due to rounding January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 16
    • Pension and OPEB Plans Funded Status $ Billions OPEB Funded Status Pension Plan Funded Status Dec 31, 2012 Discount Rate Contributions Earnings on Plan Assets Interest, Service & Other Dec 31, 2013 Dec 31, 2012 Discount Rate 0.3 1.6 2.6 Interest, Service & Other Dec 31, 2013 (0.1) Benefit Payments (2.7) 0.2 (3.1) 0.6 (1.4) (5.5) (8.9) $3.4 $0.4 • Pension and OPEB underfunded status’ decreased primarily due to a higher discount rate and pension contributions • A ±100 basis point change in the discount rate would impact pension obligations by ~$3 billion January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 17
    • Appendix January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 18
    • Q4 & FY 2013 Financial Results $ Millions Q4 2013 Q4 2012 Q4 2013 B/(W) Q4 2012 FY 2013 FY 2012 FY 2013 B/(W) FY 2012 736 613 123 2,563 2,409 154 Net Revenue 21,201 17,152 4,049 72,144 65,784 6,360 Modified Operating Profit 1,071 360 3,176 2,912 Worldwide Vehicle Shipments (000) 1 711 4.1% 1,813 1,337 7.8% 0.8 ppt 476 5,919 5,450 8.3% (0.1) ppt Net Income 1,620 378 1,242 2,757 1,668 1,089 Adjusted Net Income 659 2 378 281 1,819 2 1,668 151 Free Cash Flow 1,926 (280) 2,206 2,123 2,221 (98) Cash 13,344 11,614 1,730 (12,301) (12,603) 302 1,043 (989) 2,032 Modified EBITDA % of Net Revenue Financial Liabilities Net Industrial Cash (Debt) 1 2 8.6% 1.0 ppt 4.4% 8.2% 4.4% 264 5.1% % of Net Revenue -0- ppt 469 Before GDP adjustments Excludes the effects of: • In Q4 2013, $962M non-cash tax benefit related to the release of valuation allowances on deferred tax assets • In Q4 2013, $1M loss on extinguishment of debt related to the December 2013 re-pricing of the Term Loan B • In Q2 2013, $23M loss on the extinguishment of debt related to the June 2013 re-pricing and amendment of the Term Loan B and Revolving Credit Facility January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 19
    • Reconciliation of Net Income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA $ Millions Q4 2013 Q4 2012 Q4 2013 B/(W) Q4 2012 1,620 378 1,242 2,757 1,668 1,089 (962) - (962) (962) - (962) 1 - 1 24 - 24 659 378 281 1,819 1,668 151 Income Tax Expense 1 194 80 114 409 274 135 Net Interest Expense 239 256 (17) 994 1,050 (56) Other Employee Benefit Costs (Gains) 2 (22) (2) (20) (49) (34) (15) Restructuring (Income) Expenses, Net & Other 1 (1) 2 3 (46) 49 1,071 711 360 3,176 2,912 264 742 626 116 2,743 2,538 205 1,813 1,337 476 5,919 5,450 469 Net Income Release of Valuation Allowances on Deferred Tax Assets Loss on Extinguishment of Debt Adjusted Net Income Modified Operating Profit Depreciation and Amortization Expense 3 Modified EBITDA FY 2013 FY 2012 FY 2013 B/(W) FY 2012 1 - Excludes the effects of the release of valuation allowances on deferred tax assets included in the calculation of Adjusted Net Income 2 - Includes interest cost, expected return on plan assets and amortization of unrecognized losses 3 - Excludes depreciation and amortization expense for vehicles held for lease January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 20
    • Guaranteed Depreciation Program Adjusted Shipments Vehicles (000s) Q4 2013 Worldwide Shipments Q4 2012 Q4 2013 B/(W) Q4 2012 FY 2013 FY 2012 FY 2013 B/(W) FY 2012 736 613 123 2,563 2,409 154 (22) (7) (15) (79) (51) (28) 22 17 5 58 74 (16) - 10 (10) (21) 23 (44) 736 623 113 2,542 2,432 110 Guaranteed Depreciation Program (GDP) Subtract: Shipments during period Add: Returns/auctions during period Net (shipments) / returns GDP Adjusted Worldwide Shipments January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 21
    • Reconciliation of Worldwide Vehicle Sales to Shipments Vehicles (000s) Q4 2013 Q4 2012 FY 2013 FY 2012 592 533 2,401 2,194 122 58 82 101 Change in Canada dealer inventory 9 5 10 11 Contract manufacturing & other 13 17 70 103 736 613 2,563 2,409 Worldwide Sales Change in U.S. dealer inventory Worldwide Shipments January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 22
    • Reconciliation of Net Cash Provided By (Used In) Operating and Investing Activities to Free Cash Flow $ Millions Net Cash Provided By Operating Activities Net Cash Used In Investing Activities Q4 2013 Q4 2012 Q4 2013 B/(W) Q4 2012 FY 2013 FY 2012 FY 2013 B/(W) FY 2012 2,926 344 2,582 5,536 5,821 (285) (1,000) (623) (377) (3,413) (3,557) 144 - (1) 1 - (2) 2 - - - - (41) 41 1,926 (280) 2,206 2,123 2,221 (98) Investing activities excluded from Free Cash Flow: Change in Loans and Notes Receivables Financing activities included in Free Cash Flow: Repayments of Gold Key Lease Financing Free Cash Flow January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 23
    • Reconciliation of Cash to Net Industrial Cash (Debt) $ Millions Dec 31, 2013 Less: Financial Liabilities (Carrying Value) Net Industrial Cash (Debt) Dec 31, 2012 13,344 Cash Sept 30, 2013 11,491 11,614 (12,301) (12,379) (12,603) 1,043 (888) (989) January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 24
    • Financial Liabilities $ Billions As of Dec 31, 2013 Carrying Value Face Value Term Loan B 2.9 2.9 Secured Senior Notes 3.2 3.2 VEBA Trust Note 4.2 4.7 Canadian Health Care Trust Notes 0.9 0.9 Mexican Development Banks Credit Facilities 0.6 0.6 Other Financial Liabilities 0.6 0.6 Total Financial Liabilities 12.3 13.0 Note: Numbers may not add due to rounding January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 25
    • Pension Disclosure $ Millions Q4 2013 Q4 2012 FY 2013 FY 2012 95 88 368 324 (129) (70) (500) (297) Recognition of Net Actuarial Loss 63 26 271 101 Other 4 - 12 1 Total Net Periodic Pension Cost 33 44 151 129 WORLDWIDE PENSION FUND CONTRIBUTIONS 23 44 584 254 (5,339) (113) (5,452) (7,669) (1,196) (8,865) 2013 2012 Benefit Obligations at December 31: Discount Rate – Ongoing Benefits 4.69% 3.98% Periodic Costs: Discount Rate – Ongoing Benefits Expected Return on Plan Assets 3.98% 7.41% 4.84% 7.41% NET PERIODIC PENSION COST Service Cost Interest Cost Net of Expected Return FUNDED STATUS OF PLANS U.S. Non-U.S. Total WORLDWIDE WEIGHTED AVERAGE ASSUMPTIONS January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 26
    • OPEB Disclosure $ Millions Q4 2013 Q4 2012 FY 2013 FY 2012 Service Cost 7 5 30 24 Interest Cost 30 34 120 135 Recognition of Net Actuarial Loss 12 7 47 26 (11) (9) (42) (40) - - - - 38 37 155 145 42 47 172 189 (2,322) (402) (2,724) (2,585) (488) (3,073) 2013 2012 Benefit Obligations at December 31: Discount Rate – Ongoing Benefits 4.87% 4.07% Periodic Costs: Discount Rate – Ongoing Benefits Expected Return on Plan Assets 4.07% - 4.93% - NET PERIODIC BENEFIT COST Amortization of Prior Service Credit Other Total Net Periodic Benefit Cost BENEFITS PAID FUNDED STATUS OF PLANS U.S. Non-U.S. Total WORLDWIDE WEIGHTED AVERAGE ASSUMPTIONS January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 27
    • Non-U.S. GAAP Financial Measures and Other Items The following non-U.S. GAAP financial measures definitions apply when the presentation is referring to Adjusted Net Income, Modified Operating Profit, Modified EBITDA, Cash, Free Cash Flow and Net Industrial Cash (Debt) (a) Adjusted Net Income (Loss) is defined as net income (loss) excluding the impact of infrequent items, which includes losses on extinguishment of debt and the release of valuation allowances on deferred tax assets. The reconciliation of net income to Adjusted Net Income, Modified Operating Profit (defined below) and Modified EBITDA (defined below) for the three and twelve months ended December 31, 2013 and 2012 is detailed on page 20 (b) Modified Operating Profit (Loss) is computed starting with net income (loss), and then adjusting the amount to (i) add back income tax expense and exclude income tax benefits (excluding the effects of the release of valuation allowances on deferred tax assets), (ii) add back net interest expense (excluding interest expense related to financing activities associated with a vehicle lease portfolio the Company refers to as Gold Key Lease), (iii) add back (exclude) all pension, other postretirement benefit (OPEB) and other employee benefit costs (gains) other than service costs, (iv) add back restructuring expense and exclude restructuring income, (v) add back other financial expense, (vi) add back losses and exclude gains due to cumulative change in accounting principles and (vii) add back certain other costs, charges and expenses, which include the impact of infrequent items factored into the calculation of Adjusted Net Income (Loss). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA (defined below) for the three and twelve months ended December 31, 2013 and 2012 is detailed on page 20 (c) Modified EBITDA is computed starting with net income (loss) adjusted to Modified Operating Profit (Loss) as described above, and then adding back depreciation and amortization expense (excluding depreciation and amortization expense for vehicles held for lease). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA for the three and twelve months ended December 31, 2013 and 2012 is detailed on page 20 (d) Cash is defined as cash and cash equivalents (e) Free Cash Flow is defined as cash flows from operating and investing activities, excluding any debt-related investing activities, adjusted for financing activities related to Gold Key Lease. A reconciliation of net cash provided by (used in) operating and investing activities to Free Cash Flow for the three and twelve months ended December 31, 2013 and 2012 is detailed on page 23 (f) Net Industrial Cash (Debt) is defined as Cash less financial liabilities. A reconciliation of Cash to Net Industrial Cash (Debt) at December 31, 2013, September 30, 2013, and December 31, 2012, is detailed on page 24 January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 28
    • Contacts Chrysler Investor Relations Timothy Krause phone: email: 248-512-2923 tsk@chrysler.com Chrysler Communications Gualberto Ranieri phone: email: 248-512-2226 gualberto.ranieri@chrysler.com Website www.chryslergroupllc.com January 29, 2014 (Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAPfinancial measures) 29