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

1. Chrysler Group LLC
Full Year & 4th Quarter 2013
Results Review
(U.S. GAAP – Preliminary)
January 29, 2014

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

11. -- 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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