Fiat Chrysler Automobiles N.V.

Report
IM: F
NYSE: Expected October 2014
Michael Guichon, Columbia Business School
Investment Thesis
Recommend investors buy Fiat shares with a target share price of €16.50; over 90% upside
• 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)
Current Capitalization
Share Price (as of 5/2/14)
Shares outstanding (mm)
Equity Market Cap (m m )
Add: Debt (mm)
Less: Cash (mm)
Total Enterprise Value
Add: Underfunded Pension
Adjusted Total Enterprise Value
Trading Statistics
52 Week Range
€
3.91
Dividend Yield
Average Daily Volume (mm)
Sum m ary Valuation
2014E
2015E
EV/EBITDA
3.08x
2.79x
P/E
13.15x
8.08x
P/CPS
1.75x
1.53x
Note: Consensus as of 5/2/14
€
€
€
€
€
€
€
€
8.71
1,251
10,894
29,306
19,439
20,761
6,000
26,761
8.85
0.0%
12.2
2016E
2.46x
6.25x
1.42x
2
Company Overview
• FCA is the 6th largest automobile manufacturer globally1
• 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
FCA
North America
Europe
LatAm
Asia-Pac
Ferrari/Maserati
Components and Other
% of Sales: 53%
% of EBIT: 77%
% of Sales: 19%
% of EBIT: -25%
% of Sales: 11%
% of EBIT: 17%
% of Sales: 5%
% of EBIT: 11%
% of Sales: 4%
% of EBIT: 16%
% of Sales: 8%
% of EBIT: 5%
Breakdown by
Type:
Geographical Breakdown of Segment Unit Volumes:
Canada, 12.1%
Mexico, 3.8%
Other, 5.7%
Germany, 11.4%
France, 9.9%
US, 84.1%
U.K.,
9.9%
Argentina, 11.7%
Other,
12.3%
Rest of
Europe,
20.8%
Italy, 48.0%
Teksid - Metal
Casting, 8.5%
Australia,
22.7%
Other,
17.4%
China, 55.2%
China,
18.9%
North
America,
40.5%
Brazil, 82.6%
Magneti
Mareli Auto Parts,
74.1%
Comau Automation
Systems, 18.1%
Europe, 23.2%
Japan, 9.8%
1By
revenues
Source: Fiat 2013 Annual Report
3
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 6th 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
Marchionne inherited a loss making Italian car/tractor/parts maker in 2004 and created a global automotive giant
4
Key Drivers of Normalized
Earnings
Normalized Earnings Potential
€ 3,500
€ 3.00
€ 0.50 € 2.55
€ 3,000
€ 2.50
€ 0.40 € 2.05
€ 2,500
€ 2.00
€ 0.24
€ 2,000
€ 0.37
€ 0.04
€ 0.01
€ 1.50
EPS
Net Income (€mm)
• €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%
€ 1,500
€ 0.36
€ 1,000
€ 1.00
€ 0.63
€ 500
€-
A return to normal earnings driven by Italian/Brazilian recoveries, Chrysler performance and capital structure
rationalization
€ 0.50
€-
6
Capital Structure
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
Capital Structure Optim ization
2013A
Norm alized
Debt
€ 29,875 € 20,039
Cash
€ 19,439 € 10,000
Net Debt
€ 10,436 € 10,039
Interest Expense
€
(1,995) €
(1,062)
Interest Income
€
97 €
100
Cost of Debt
6.7%
5.3%
Income Interest Rate
0.5%
1.0%
Net Interest Margin
-6.2%
-4.3%
Net Debt Expense
€
(1,898) €
(962)
ETR
40.0%
40.0%
Net Income Impact
€
(1,139) €
(577)
EPS Impact
€
(0.91) €
(0.46)
Rationalizing the company’s capital structure will increase pre-tax earnings significantly
Change
€
(9,836)
€
(9,439)
€
(397)
€
933
€
3
-1.4%
0.5%
1.9%
€
936
40.0%
€
562
€
0.45
8
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
$30,000
15.0%
$20,000
10.0%
$10,000
5.0%
$0
0.0%
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
• 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
QoQ Chrysler Group Performance
Qtly Revenue (mm USD)
EBITDA Margin
EBIT Margin
Chrysler Market Share1
16.00%
Marchionne Takes Control
11.00%
6.00%
1US,
Canada and Mexico respectively represent 83%, 12% and 5% of North American Chrysler vehicles sold
2007
US
Chrysler has steadily improved operations in North America versus Ford and GM …
2008
2009
2010
2011
2012
2013
Canada
Mexico
Total North America
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
Annual EBITDA (mn USD)
$20,000
$15,000
$10,000
$5,000
$0
2010
2011
Chrysler
2012
GM
2013
Ford
Annual EBIT (mn USD)
$10,000
$5,000
$0
2010
2011
Chrysler
… yet still trades at a discounted valuation
2012
GM
2013
Ford
11
How you improve a brand
• 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
2007 Jeep Grand Cherokee V8
2014 Jeep Grand Cherokee V8
• Base price: $34,690
• Base price: $36,790
• 13 mpg city, 20 mpg highway
• 18 mpg city, 26 mpg highway
• 0-60 in 9 seconds
• 0-60 in 7 seconds
Chrysler does not need to completely reinvent itself in order to succeed
12
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
NAFTA
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segm ent
As % of Current Adjusted EV
Value Per Share
€
€
€
€
2013A
45,777
5.0%
2,290
3,820
1,489
€
€
€
2017E
54,690
5.8%
3,149
4,985
2,047
€
€
1,330
1.06
€
Norm alized
€ 55,000
5.8%
€
3,190
€
5,026
€
2,074
Low
50,000
5.0%
€
2,500
€
4,336
€
1,625
€
High
60,000
6.5%
€
3,900
€
5,736
€
2,535
€
35.0%
€
€
968
0.77
Base
Bear
5.20x
4.23x
3.30x
2.44x
8.00x
6.50x
€ 16,588 € 10,563 €
62.2%
39.6%
€
13.26 €
8.44 €
€
€
1,348
1.08
€
€
1,056
0.84
€
€
1,648
1.32
Bull
6.50x
4.42x
10.00x
25,350
95.0%
20.27
13
International
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
In this high fixed cost business, utilization = profitability
180.0%
3.0%
160.0%
1.0%
140.0%
Revenue/Assets (lhs)
Revenue/Assets Forecast (lhs)
EBIT Margin (rhs)
120.0%
-1.0%
-3.0%
100.0%
-5.0%
Marchionne becomes CEO
80.0%
2003
2005
2007
2009
2011
2013
2015
-7.0%
2017
15
Europe
Fiat Europe (Value: €4.2bn)
Italian Recovery
2600
30%
2400
25%
2200
20%
2000
15%
1800
10%
1600
5%
1400
Italian New Car Sales (in thousands, YTD)
1200
0%
Net Mortgage Lending (YoY % Change)
A return to normalcy in Italian credit markets will drive a recovery in automotive demand
5/1/2013
6/1/2012
7/1/2011
8/1/2010
9/1/2009
10/1/2008
11/1/2007
12/1/2006
1/1/2006
2/1/2005
3/1/2004
4/1/2003
5/1/2002
6/1/2001
7/1/2000
8/1/1999
9/1/1998
10/1/1997
-5%
11/1/1996
1000
12/1/1995
• 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
How to relaunch 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
2014 Alfa Romeo 4C
• Base price: $42,400
• Base price: $55,000
• 0-60 in 8.2 seconds
• 0-60 in 4.2 seconds
A timeless brand and key technology from Ferrari/Maserati gives Marchionne the wherewithal to turn around Alfa Romeo 18
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
Europe
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Prior Peak
2007A
€ 26,812 €
3.0%
€
803 €
€
€
562 €
30.0%
€
393 €
31.5% €
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segm ent
As % of Current Adjusted EV
Value Per Share
Base
Bear
5.60x
4.55x
1.86x
1.18x
8.00x
6.50x
€
4,186 €
2,389 €
15.7%
9.0%
€
3.35 €
1.91 €
2013A
17,420
-4.2%
(737)
180
(516)
€
€
€
€
(361) €
(0.29) €
2017E
24,911
3.7%
910
2,414
637
446
0.36
Norm alized
€ 23,000
3.3%
€
748
€
2,251
€
523
€
€
366
0.29
Low
21,000
2.5%
€
525
€
2,029
€
368
€
€
€
257
0.21
High
27,000
4.0%
€
1,080
€
2,584
€
756
€
€
€
529
0.42
Bull
7.00x
2.93x
10.00x
7,560
28.3%
6.04
19
Latin America
Latin America/Brazil (Value: €5.5bn)
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
Government Debt/GDP
Private Debt/GDP
10.0%
Total Debt/GDP
Fiat has a dominant position in Brazil where long term fundamentals remain positive
6/1/2013
8/1/2012
10/1/2011
12/1/2010
2/1/2010
4/1/2009
6/1/2008
8/1/2007
10/1/2006
12/1/2005
2/1/2005
4/1/2004
6/1/2003
8/1/2002
10/1/2001
12/1/2000
2/1/2000
4/1/1999
6/1/1998
8/1/1997
10/1/1996
0.0%
12/1/1995
• 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 nonperforming 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
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
Latin Am erica
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Prior Peak
2011A
€ 11,068
12.5%
€
1,385
€
1,890
€
928
33.0%
€
622
€
0.50
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segm ent
As % of Current Adjusted EV
Value Per Share
Base
Bear
5.36x
4.36x
3.31x
2.46x
8.00x
6.50x
€
5,467 €
3,593 €
20.5%
13.5%
€
4.37 €
2.87 €
€
€
€
2013A
9,973
4.9%
492
1,136
330
€
€
221
0.18
€
€
€
€
2017E
12,125
8.6%
1,040
1,673
696
€
€
467
0.37
€
Norm alized
€ 12,000
8.5%
€
1,020
€
1,654
€
683
€
€
458
0.37
Low
11,000
7.5%
€
825
€
1,459
€
553
€
€
€
370
0.30
High
14,000
11.0%
€
1,540
€
2,174
€
1,032
€
€
€
691
0.55
Bull
6.70x
4.75x
10.00x
10,318
38.7%
8.25
While 2011 EBIT margins may not be sustainable, the Brazilian business is very profitable and total market demand will
grow
22
Luxury & Performance Brands
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
1Net
to Fiat’s 90% ownership of Ferrari.
true public comparable companies exist. Toyota and BMW have the highest margins of public automakers (9.510.5%) and trade at 9.0-9.5x EBIT Multiples
3http://www.bloomberg.com/news/2012-12-07/investindustrial-to-purchase-37-5-stake-in-aston-martin.html
2No
A unique, obscured asset with the best operating and financial performance in the industry
24
Luxury Brands –
Ferrari & Maserati (Value: €6.9bn)
Ferrari
• 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 Maserati1
• 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
1October
15, 2013 Fiat Group Luxury and Finance – Borsa Italiana, Milan
€ 3,000
35.0%
€ 2,500
30.0%
25.0%
€ 2,000
20.0%
€ 1,500
15.0%
€ 1,000
10.0%
€ 500
5.0%
€0
0.0%
2004
2005
Revenue (lhs)
2006
2007
EBITDA (lhs)
2008
2009
FCF
2010
2011
EBITDA Margin (rhs)
2012
2013
FCF to sales (rhs)
Maserati
€ 2,000
30.0%
20.0%
€ 1,500
10.0%
0.0%
€ 1,000
-10.0%
€ 500
-20.0%
-30.0%
€0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
-€ 500
-40.0%
-50.0%
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
25
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
Ferrari
1Net
to Fiat’s 90% ownership
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Prior Peak
2008A
€
1,921
17.6%
€
339
€
497
€
220
35.0%
€
143
€
0.11
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segm ent 1
As % of Current Adjusted EV
Value Per Share
Base
Bear
9.30x
8.57x
6.00x
5.00x
14.31x
13.18x
€
3,839 €
2,827 €
14.4%
10.6%
€
3.07 €
2.26 €
€
€
€
2013A
2,300
15.8%
364
406
237
€
€
154
0.12
€
Conservative multiples relative to peers yields significant value
€
€
€
2015E
2,569
16.0%
412
710
268
€
€
174
0.14
€
Norm alized
€
2,575
16.0%
€
413
€
711
€
268
€
€
174
0.14
Low
2,200
15.0%
€
330
€
628
€
215
€
€
€
139
0.11
High
3,000
18.0%
€
540
€
838
€
351
€
€
€
228
0.18
Bull
9.78x
7.00x
15.05x
5,281
19.8%
4.22
26
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
Maserati
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Annualized
4Q13
€
3,104
7.5%
€
232
€
424
€
151
35.0%
€
98
€
0.08
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segment
As % of Current Adjusted EV
Value Per Share
Base
Bear
6.23x
4.92x
4.50x
3.00x
9.58x
7.57x
€
3,113 €
1,476 €
11.7%
5.5%
€
2.49 €
1.18 €
A highly profitable, high growth business
€
€
€
2013A
1,659
6.4%
106
298
69
€
€
45
0.04
€
€
€
€
2015E
4,911
10.0%
491
683
319
€
€
208
0.17
€
Norm alized
€
5,000
10.0%
€
500
€
692
€
325
€
€
211
0.17
Low
4,000
7.5%
€
300
€
492
€
195
€
€
€
127
0.10
High
5,750
15.0%
€
863
€
1,054
€
561
€
€
€
364
0.29
Bull
6.11x
5.00x
9.40x
5,272
19.8%
4.21
27
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
Asia-Pacific
Segm ent Financials
Revenue
EBIT Margin
EBIT
EBITDA
NOPAT
ETR
Net Income
EPS
Prior Peak
2011A
€
2,086
6.2%
€
129
€
224
€
97
25.0%
€
73
€
0.06
Fair Value
EBIT Multiple
EBITDA Multiple
NOPAT Multiple
EV of Segm ent
As % of Current Adjusted EV
Value Per Share
Base
Bear
6.00x
4.88x
3.31x
2.42x
8.00x
6.50x
€
2,520 €
1,645 €
9.4%
6.2%
€
2.01 €
1.32 €
€
€
€
2013A
4,621
6.9%
319
617
239
€
€
179
0.14
€
€
€
€
2017E
5,670
7.9%
448
790
336
€
€
252
0.20
€
Norm alized
€
5,600
7.5%
€
420
€
762
€
315
€
€
236
0.19
Low
5,000
6.75%
€
338
€
680
€
253
€
€
€
190
0.15
High
8,000
8.0%
€
640
€
982
€
480
€
€
€
360
0.29
Bull
7.50x
4.89x
10.00x
4,800
18.0%
3.84
Current penetration only focused on 1st tier cities, future growth to be driven by build out in 2nd and 3rd tier cities
29
Management Track Record
Management & Track Record
• 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
CAGR (2004-2013)
15%
9%
10%
6%
5%
8%
5%
3%
0%
0%
Fiat
Ford
Toyota
VW
-5%
-10%
Renault
0% -1%
-9% -9%
-15%
Revenue/Share
Under Marchionne’s stewardship, FCA has generated best in class financial performance
EBITDA/Share
31
Valuation
Sum-of-the-Parts
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
€
€
€
€
€
€
€
Sum of the Parts
Base
Bear
TEV
Per Share
TEV
Per Share
16,588 € 13.26
€ 10,563 €
8.44
4,186 €
3.35
€ 2,389 €
1.91
5,467 €
4.37
€ 3,593 €
2.87
2,520 €
2.01
€ 1,645 €
1.32
6,952 €
5.56
€ 4,303 €
3.44
1,000 €
0.80
€
€
36,714 € 29.35
€ 22,492 € 17.98
€
€
€
€
TEV
(29,306)
19,439
26,847
(6,000)
Fair Value
Chrysler
Fiat-Europe
Fiat-Brazil
Asia-Pac
Luxury Brands 1
Parts
Total
Less: Debt
Add: Cash
Total Equity Value
Less: Underfunded Pension
Adjusted Total
Equity Value
% Upside
€ 20,847
91.4%
Per Share
€ (23.43)
€ 15.54
€ 21.46
€
(4.80)
€
€
€
€
€
€
16.67
91.4%
2013A
TEV
Per Share
(29,306) € (23.43)
19,439 € 15.54
12,625 € 10.09
(6,000) €
(4.80)
6,625
-39.2%
€
5.30
-39.2%
€
€
€
€
€
€
€
Bull
TEV
Per Share
25,350 € 20.27
7,560 €
6.04
10,318 €
8.25
4,800 €
3.84
10,553 €
8.44
2,000 €
1.60
60,581 € 48.43
TEV
Per Share
€ (29,306) € (23.43)
€ 19,439 € 15.54
€ 50,714 € 40.55
€ (6,000) €
(4.80)
€ 44,714
310.4%
€
35.75
310.4%
• FCA trades at sub 4.0x normalized earnings
1Net
• Fair Value: €16.50 (8.0x base normalized EPS of €2.05)
to Fiat’s 90% ownership of Ferrari
33
Special Thanks To
Thomas Schweitzer
[email protected]
Sam White
[email protected]
34
Appendix
Relative Valuation
Ticker
Nam e
CUR EV
'14 P/E
'15 P/E
'16 P/E
'14 EV / '15 EV / '16 EV /
EBIT
EBIT
EBIT
'14 EV / '15 EV / '16 EV /
EBITDA EBITDA EBITDA
Gross
EBIT
NI
Margin Margin 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%
29.9%
-7.9%
-19.6%
-57.6%
-45.0%
-43.2%
-56.3%
-54.6%
-56.1%
-17.8%
-26.0%
-69.6%
€ 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%
-23.7%
-54.0%
-63.1%
-58.3%
-45.7%
-45.7%
-61.6%
-58.7%
-60.9%
-17.8%
-42.8%
-71.4%
FIAT Valuation Differential vs. peer group:
Fiat Ex Luxury Brands
FIAT Valuation Differential vs. peer group:
Source: Bloomberg as of 5/2/2014. Luxury Brands valued at €6.952bn
Across most metrics, Fiat trades at a sizeable discount to peers
36
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 Ownership Stake
• 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 DaimlerBenz paid in 1998, although these amounts include Chrysler Financial,
which Cerberus sold to TD for $6.3bn in December 2010
20%
363 Bankruptcy Sale (4/30/2009)
5%
5%
Performance Event 1 (1/10/2011)
Performance Event 2 (4/11/2011)
16%
UST Call Options (5/24/2011)
7.5%
Remaining Call Options (7/21/2011)
Performance Event 3 (1/5/2012)
5%
41.5%
Purchase From VEBA Trust (1/5/2014)
Marchionne’s negotiating prowess secured Chrysler at an extremely attractive valuation
39
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
Com m on
Holder
Giovanni Agnelli e C. S.a.p.az.
Stock Held
375,972,150
% of Market Value
Com m on
(EUR in m m )
30.9% €
3,267.6
Baillie Gifford & 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
Oldfield 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
5,734,633
0.5% €
49.8
Bessemer Investment Management LLC
Source: Capital IQ
Agnelli family has a history of supporting value creative initiatives at its companies
40
Overview of Management
• Sergio Marchionne:
• Has been CEO of Fiat since 2004 and has led Chrysler since 2009
• Oversaw the turnaround of SGS1, 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:
•
•
•
•
1Agnelli
2Agnelli
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 Exor2
Member of the Board of Directors of News Corp and is a board member of
Fiat Industrial, The Economist Group and Banca Leonardo
family portfolio company
family holding company for Fiat, Fiat Industrial shares
Best in class management operating business as an owner
41
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
Current
Option
Number of Shares
Strike
Expiry
€ 8.65
1
10,670,000 € 6.583
1-Jan-16 € 22,054,890
2
5,000,000 € 13.370
3-Nov-14 €
Total:
15,670,000 € 8.749
€ 22,054,890
% Change:
Management’s interests are well aligned with shareholders
Bear
€ 5.30
€
€
€
Base
Bull
€ 16.50
€ 35.75
€ 105,814,390 € 311,211,890
€ 15,650,000 € 111,900,000
€ 121,464,390 € 423,111,890
-100.0%
450.7%
1818.4%
42
Debt Maturity Schedule
Corporate Debt Maturity Schedule (€ bn)
Weighted Average Interest Rate: 6.7%
€ 5.00
€ 4.50
€ 4.00
€ 3.50
€ 3.00
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00
2014
2015
2016
2017
2018
2019
2020
2021
43
Summary Model
(€ million)
Incom e Statem ent
Net revenues
% Grow th
2011
FY
365
2012
FY
366
2013
FY
365
2014
FY
365
€ 59,559 € 83,957 € 86,816
66.0%
41.0%
3.4%
Cost of sales
SG&A
Research and development costs
Other income/(expenses)
TRADING PROFIT/(LOSS)
Result from investments:
Share of equity method the profit/(loss)
Other income/(expenses) from investments
Gains/(losses) on the disposal of investments
Restructuring costs
Other unusual income/(expenses)
Total
50,704
5,047
1,367
(49)
2,392
71,474
6,731
1,835
(103)
3,814
146
(15)
21
(102)
1,025
1,075
94
13
(91)
(15)
(138)
(137)
74,570
6,689
2,231
68
3,394
87
10
8
(28)
(499)
(422)
2015
FY
365
2016
FY
366
2017
FY
365
2018
FY
365
2019
FY
365
€ 93,321
7.5%
€ 97,749
4.7%
80,537
7,094
2,498
3,440
83,191
7,430
2,617
4,745
83,219
7,491
2,638
5,414
87,636
7,936
2,795
6,253
88,133
7,997
2,816
6,470
92,291
8,374
2,949
6,770
-
-
-
-
-
(300)
(300)
€ 98,545 € 104,403 € 105,199 € 110,167
0.8%
5.9%
0.8%
4.7%
EBIT
3,467
3,677
2,972
3,140
4,745
5,414
6,253
6,470
6,770
DD&A
EBITDA
3,358
6,825
4,134
7,811
4,574
7,546
4,822
7,962
5,055
9,800
5,272
10,686
5,489
11,741
5,705
12,175
5,922
12,692
(1,282)
2,185
(534)
24%
1,651
1,651
(1,641)
2,036
(625)
31%
1,411
1,411
(1,964)
1,008
(943)
94%
1,951
(943)
1,008
(1,859)
1,281
(513)
40%
769
769
(1,600)
3,145
(1,258)
40%
1,887
1,887
(1,351)
4,063
(1,625)
40%
2,438
2,438
(1,120)
5,133
(2,053)
40%
3,080
3,080
(987)
5,483
(2,193)
40%
3,290
3,290
(987)
5,783
(2,313)
40%
3,470
3,470
1,334
317
348
1,063
904
1,047
1,887
-
2,438
-
3,080
-
3,290
-
3,470
-
Financial income/(expenses)
EBT
Income taxes
ETR
PROFIT/(LOSS) FROM CONTINUING OPERATIONS
Post‐tax profit/(loss) from Discontinued Operations
PROFIT/(LOSS) FOR THE PERIOD
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO:
Ow ners of the parent
Non‐controlling interests
(in €)
BASIC EARNINGS/(LOSS) PER ORDINARY SHARE
€
1.10
€
0.29
€
0.74
769
-
€
0.63
€
1.55
€
2.01
€
2.53
€
2.71
€
2.85
45
(€ million)
STATEMENT OF CASHFLOWS
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES:
Profit/(loss) for the period
€
Amortisation and depreciation
(Gains)/losses from disposal of non‐current assets
Other non‐cash items
Dividends received
Change in provisions
Change in deferred income taxes
Change in items due to buy‐back commitments
Change in operating lease items
Change in w orking capital
TOTAL CASH FLOWS FROM OPERATING ACTIVITIES:
2011
FY
365
1,651 €
3,358
(1,106)
105
(116)
(19)
(62)
(28)
1,412
5,195
CASH FLOWS FROM/(USED IN) INVESTMENT ACTIVITIES:
Investments in:
Property, plant and equipment and intangible assets
(5,528)
Investments in consolidated subsidiaries and other investments (22)
Proceeds from the sale of non‐current assets
329
Net change in receivables from financing activities
(1,218)
Change in other current securities
(43)
Other changes
5,624
TOTAL CASH FLOWS FROM INVESTMENT ACTIVITIES:
(858)
2012
FY
366
1,411 €
4,134
105
47
89
77
(72)
(51)
(10)
714
6,444
(7,534)
139
(24)
(64)
(30)
(7,513)
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES:
Issuance of bonds
2,500
2,535
Repayment of bonds
(2,448)
(1,450)
Issuance of medium‐term borrow ings
2,149
1,925
Repayment of medium‐term borrow ings
(3,895)
(1,528)
Net change in other financial payables and other financial assets/liabilities
2,761
197
Capital increase
143
22
Dividends paid
41
(58)
Distribution for tax w ithholding obligations on behalf of non‐controlling
(181)interests
Purchase of ow nership interests in subsidiaries
(438)
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES:
632
1,643
Translation exchange differences
TOTAL CHANGE IN CASH AND CASH EQUIVALENTS
4,969
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 11,967
CASH AND CASH EQUIVALENTS AT END OF PERIOD
17,526
(419)
155
17,526
17,657
2013
FY
365
1,951 €
4,574
23
522
92
444
(1,578)
92
1
1,468
7,589
2014
FY
365
769
4,822
2015
FY
365
€
1,887
5,055
2016
FY
366
€
2,438
5,272
2017
FY
365
€
3,080
5,489
2018
FY
365
€
3,290
5,705
2019
FY
365
€
3,470
5,922
122
5,713
830
7,772
150
7,860
8,568
8,995
9,392
(7,440)
(19)
48
(449)
(10)
(216)
(8,086)
(7,000)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
(7,000)
(6,500)
(6,500)
(6,500)
(6,500)
(6,500)
2,866
(1,000)
3,188
(2,549)
686
4
(1)
(6)
1,750
(2,500)
(2,500)
(2,500)
(2,500)
-
3,188
1,750
(2,500)
(2,500)
(2,500)
(2,500)
-
-
-
-
-
-
-
463
19,439
19,902
(1,228)
19,902
18,674
(1,140)
18,674
17,534
(432)
17,534
17,102
(5)
17,102
17,097
2,892
17,097
19,989
(909)
1,782
17,657
19,439
46
(€ million)
BALANCE SHEET
ASSETS
Inventories
Trade receivables
Receivables from financing activities
Current tax receivables
Other current assets
Current financial assets:
Current investments
Current securities
Other financial assets
Cash and cash equivalents
Total Current assets
Intangible assets
Property, plant and equipment
Investments and other financial assets:
Investments accounted for using the equity method
Other investments and financial assets
Leased assets
Defined benefit plan assets
Deferred tax assets
Total Non‐current assets
Assets held for sale
TOTAL ASSETS
EQUITY AND LIABILITIES
Equity:
Equity attributable to ow ners of the parent
Non‐controlling interest
Provisions:
Employee benefits
Other provisions
Debt:
Asset‐backed financing
Other debt
Other financial liabilities
Trade payables
Current tax payables
Deferred tax liabilities
Other current liabilities
Liabilities held for sale
TOTAL EQUITY AND LIABILITIES
2011
FY
365
€
2013
FY
365
2014
FY
365
2015
FY
365
2016
FY
366
2017
FY
365
2018
FY
365
2019
FY
365
9,295
2,702
3,727
236
2,163
807
32
256
519
17,657
36,587
€ 10,230
2,406
3,671
291
2,302
815
35
247
533
19,439
39,154
€ 10,997
2,586
3,946
291
2,302
815
35
247
533
19,902
40,839
€ 11,518
2,709
4,133
291
2,302
815
35
247
533
18,674
40,442
€ 11,612
2,731
4,167
291
2,302
815
35
247
533
17,534
39,452
€ 12,302
2,893
4,415
291
2,302
815
35
247
533
17,102
40,121
€ 12,396
2,915
4,448
291
2,302
815
35
247
533
17,097
40,265
€ 12,982
3,053
4,658
291
2,302
815
35
247
533
19,989
44,090
18,200
13,213
4,987
20,785
2,660
1,579
1,081
45
39,105
1,690
77,283
19,284
22,061
2,287
1,507
780
1
93
1,738
45,464
55
82,106
19,509
22,843
2,260
1,561
699
1
105
2,893
47,611
9
86,774
19,509
25,021
2,260
1,561
699
1
105
2,893
49,789
90,628
19,509
26,466
2,260
1,561
699
1
105
2,893
51,234
91,676
19,509
27,694
2,260
1,561
699
1
105
2,893
52,462
91,914
19,509
28,705
2,260
1,561
699
1
105
2,893
53,473
93,594
19,509
29,500
2,260
1,561
699
1
105
2,893
54,268
94,533
19,509
30,078
2,260
1,561
699
1
105
2,893
54,846
98,936
8,727
3,533
6,187
2,182
8,326
4,258
12,623
750
15,262
750
17,836
750
20,813
750
24,089
750
27,472
750
7,026
8,598
11,486
8,790
8,265
9,095
8,265
9,095
8,265
9,095
8,265
9,095
8,265
9,095
8,265
9,095
8,265
9,095
710
26,062
429
16,418
230
760
7,538
449
27,440
201
16,558
231
801
7,781
82,106
596
29,306
137
17,235
314
278
8,943
21
86,774
596
31,056
137
18,526
338
299
8,943
90,628
596
28,556
137
19,405
354
313
8,943
91,676
596
26,056
137
19,563
356
316
8,943
91,914
596
23,556
137
20,726
378
334
8,943
93,594
596
21,056
137
20,884
380
337
8,943
94,533
596
21,056
137
21,871
398
353
8,943
98,936
9,123
2,625
3,968
369
2,088
789
33
199
557
17,526
36,488
80,031
2012
FY
366
€
47
(€ million)
Segm ent Econom ics
Revenues:
NAFTA
LATAM
APAC
EMEA
Luxury Brands
Components and Production Systems
Other activities
Unallocated items & adjustments
Total net Revenues
EBIT:
NAFTA
LATAM
APAC
EMEA
Luxury Brands
Components and Production Systems
Other activities
Unallocated items & adjustments
EBIT:
2011
FY
365
2012
FY
366
2013
FY
365
2014
FY
365
2015
FY
365
2016
FY
366
2017
FY
365
2018
FY
365
2019
FY
365
€ 33,800
11,068
2,086
20,078
€ 43,521
11,062
3,128
17,800
€ 45,777
9,973
4,621
17,420
4,000
€ 49,091
8,976
5,670
19,573
8,512
1,500
€ 52,644
9,448
5,670
21,352
7,134
1,500
€ 51,136
9,973
5,670
23,132
7,134
1,500
€ 54,690
10,498
5,670
24,911
7,134
1,500
€ 53,182
11,023
5,670
26,691
7,134
1,500
€ 56,735
11,548
5,670
27,580
7,134
1,500
67,032
75,511
81,791
93,321
97,749
98,545
104,403
105,199
110,167
1770 €
1385
119
-897
2,377
EBIT Margin (%):
NAFTA
5.2%
LATAM
12.5%
APAC
5.7%
EMEA
-4.5%
Luxury Brands
Components and Production Systems
Other activities
Unallocated items & adjustments (as % of revenue) 0.0%
EBIT Margin (%):
3.5%
2,491 €
1,025
255
(470)
€
2,290
492
318
(737)
470
146
€
€
€
€
€
2,456
269
390
(489)
762
145
3,301
€
€
€
€
€
€
2,979
(93) €
3,440
(98) €
4,745
(99) €
5,414
(104) €
6,253
(105) €
6,470
(110)
6,770
5.7%
9.3%
8.2%
-2.6%
5.0%
4.9%
6.9%
-4.2%
11.8%
5.0%
3.0%
6.9%
-2.5%
15.0%
5.5%
4.0%
7.2%
0.6%
12.7%
5.8%
5.7%
7.6%
2.2%
12.7%
5.8%
7.6%
7.9%
3.7%
12.7%
5.8%
8.6%
8.3%
3.9%
12.7%
5.8%
8.6%
8.6%
3.9%
12.7%
0.0%
4.4%
0.0%
3.6%
-0.1%
3.7%
-0.1%
4.9%
-0.1%
5.5%
-0.1%
6.0%
-0.1%
6.2%
-0.1%
6.1%
2,891
373
410
120
903
145
€
€
€
€
€
2,944
570
430
520
903
145
€
€
€
€
€
3,149
800
450
910
903
145
€
€
€
€
€
3,062
945
470
1,050
903
145
€
€
€
€
€
3,267
990
490
1,085
903
145
48
2011
FY
365
(€ million)
Vehicle Econom ics
Vehicle Shipments (000s)
NAFTA
LATAM
APAC
EMEA
Luxury Brands
Vehicle Shipments (000s)
1783
929
74
1180
2013
FY
365
2,115
979
103
1,012
4,209
3,966
Revenues per vehicle:
NAFTA
LATAM
APAC
EMEA
Luxury Brands
Total net Revenues
EBIT per vehicle:
NAFTA
LATAM
APAC
EMEA
Luxury Brands
EBIT:
2012
FY
366
€
€
€
€
20,577
11,299
30,369
17,589
€ 17,940
€
€
€
€
993
1,491
1,608
(760)
€
€
€
€
1,178
1,047
2,476
(464)
€
599
€
784
2014
FY
365
2,238
950
163
979
22
4,352
€
€
€
€
€
€
20,454
10,498
28,350
17,794
179,195
18,792
€ 1,023
€
518
€ 1,951
€
(753)
€ 21,055
€
684
2015
FY
365
2,400
855
200
1,100
48
4,603
€
€
€
€
€
€
20,454
10,498
28,350
17,794
179,195
20,276
€ 1,023
€
315
€ 1,951
€
(445)
€ 16,050
€
747
2016
FY
366
2,574
900
200
1,200
57
4,931
€
€
€
€
€
€
20,454
10,498
28,350
17,794
125,163
19,824
€ 1,123
€
415
€ 2,051
€
100
€ 15,840
€
962
2017
FY
365
2,500
950
200
1,300
57
5,007
€
€
€
€
€
€
20,454
10,498
28,350
17,794
125,163
19,681
€ 1,178
€
600
€ 2,151
€
400
€ 15,840
€ 1,081
2018
FY
365
2,674
1,000
200
1,400
57
5,331
€
€
€
€
€
€
20,454
10,498
28,350
17,794
125,163
19,585
€ 1,178
€
800
€ 2,251
€
650
€ 15,840
€ 1,173
2019
FY
365
2,600
1,050
200
1,500
57
5,407
€
€
€
€
€
€
20,454
10,498
28,350
17,794
125,163
19,456
€ 1,178
€
900
€ 2,351
€
700
€ 15,840
€ 1,197
2,774
1,100
200
1,550
57
5,681
€
€
€
€
€
€
20,454
10,498
28,350
17,794
125,163
19,393
€ 1,178
€
900
€ 2,451
€
700
€ 15,840
€ 1,192
49

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