6-K Cover Page Q3 2018 Press Release




UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 6-K
_______________________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2018
Commission File No. 001-36675
_______________________________
FIAT CHRYSLER AUTOMOBILES N.V.
(Translation of Registrant’s Name Into English)

_______________________________
25 St. James’s Street
London SW1A 1HA
United Kingdom
Tel. No.: +44 (0)20 7766 0311
(Address of Principal Executive Offices)
_______________________________

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule101(b)(7): o
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3­2(b): N/A








The following exhibit is furnished herewith:
Exhibit 99.1
Press release issued by Fiat Chrysler Automobiles N.V. dated October 30, 2018.



















SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Date: October 30, 2018
FIAT CHRYSLER AUTOMOBILES N.V.
 
 
 
 
 
 
 
 
 
By:
/s/ Richard K. Palmer
 
 
Name: Richard K. Palmer
 
 
Title: Chief Financial Officer









Index of Exhibits

Exhibit
Number    Description of Exhibit

99.1
Press release issued by Fiat Chrysler Automobiles N.V. dated October 30, 2018.

    






Exhibit 99.1 FCA NV Q3 2018 Press Release
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Exhibit 99.1
FCA reports record Adjusted EBIT at €2.0 billion and margin at 6.9%, including Magneti Marelli. NAFTA up 51% with margin at 10.2%, Adjusted Net Profit at €1.4 billion, up 51%. Net Profit down 38% to €0.6 billion, including €0.7 billion charge related to U.S. diesel emissions matters. Operating metrics guidance confirmed; Net industrial cash reflects production realignment to expected demand and accelerated discretionary pension contribution.
Worldwide combined shipments(2) of 1,160 thousand units, up 3%, mainly due to NAFTA and LATAM, partially offset by APAC and EMEA
Net revenues(1) of €28.8 billion, up 9% (up 11% at constant exchange rates, or CER), with higher shipments, positive pricing and mix
Adjusted EBIT(1),(3) of €1,995 million, up 13% (up 16% at CER), with margin up 20 bps to 6.9%
Adjusted net profit(1),(3) of €1,396 million, up 51% (up 54% at CER); Net profit of €564 million, down 38% (down 33% at CER) reflecting a €0.7 billion charge for estimated costs related to U.S. diesel emissions matters(*) 
Net industrial debt(1) of €0.2 billion, after acceleration of €0.6 billion discretionary pension contribution, net of tax
Moody's raised FCA's outlook to positive from stable and affirmed its Corporate Family Rating at "Ba2"
Agreement announced to sell Magneti Marelli to CK Holdings Co., Ltd. The combined business will operate under the name Magneti Marelli CK Holdings. The agreement represents a transaction value of €6.2 billion
Transaction enables payment of an extraordinary dividend of €2 billion at closing, which is in addition to the commencement of an annual ordinary dividend in Spring 2019 of 20% of earnings as presented at 2018 Capital Markets Day. Both are subject to Board of Directors and shareholder approval
The following Group results(1) include Magneti Marelli for comparability with prior periods and previously provided guidance
Nine months ended
 September 30
 
FINANCIAL RESULTS (1)
(including Magneti Marelli)
Three months ended
September 30
 
2018

2017

Change
(€ million, except as otherwise noted)
2018

2017

Change
3,665

3,493

172

+5
 %
Combined shipments (thousands of units)
1,160

1,123

37

+3
 %
3,526

3,267

259

+8
 %
Consolidated shipments (thousands of units)
1,125

1,051

74

+7
 %
84,791

82,058

2,733

+3
 %
Net revenues
28,771

26,414

2,357

+9
 %
5,261

5,160

101

+2
 %
Adjusted EBIT
1,995

1,758

237

+13
 %
2,339

2,706

(367
)
(14
)%
Net profit
564

910

(346
)
(38
)%
3,415

2,673

742

+28
 %
Adjusted net profit
1,396

922

474

+51
 %
1.48

1.73

(0.25
)


Diluted earnings per share (EPS) (€)
0.36

0.58

(0.22
)


2.17

1.71

0.46



Adjusted diluted EPS(3) (€)
0.89

0.59

0.30



 
At September
30, 2018
At December
31, 2017
Change
 
At September
30, 2018
At June
30, 2018
Change
(189
)
(2,390
)
2,201
Net industrial cash/(debt)
(189
)
456

(645)
(15,426
)
(17,971
)
2,545
Debt
(15,426
)
(16,362
)
936
19,975

20,377

(402)
Available liquidity
19,975

21,170

(1,195)
 
ADJUSTED EBIT(1)
 
ADJUSTED NET PROFIT(1)
 
NAFTA record results of €1.9 billion, with record 10.2% margin on the back of new Jeep and Ram models
LATAM up 41% despite economic deterioration in Argentina and negative foreign exchange effects
EMEA decrease due to Worldwide Harmonized Light Vehicle Test Procedure (WLTP) transition and associated negative price impacts
APAC decreased due to lower China volumes and prior year benefit from Tianjin insurance recoveries
Maserati decreased due to lower China and Europe volumes
Adjusted net profit up 51%, due primarily to stronger operating performance, reduced net financial and tax expense
Net financial expenses of €278 million, down €43 million
Tax expense of €321 million, down €194 million, due to reduced U.S. tax rate and tax benefits recorded on tax positions finalized in the quarter, including the impact from an accelerated discretionary pension contribution
 
 
 
 
 
NET INDUSTRIAL CASH/(DEBT)
 
2018 GUIDANCE(4)
 
Change of €0.6 billion from Q2 2018 to Net industrial debt position of €0.2 billion primarily due to acceleration of €0.6 billion discretionary pension contribution, net of tax
Industrial free cash outflows of €0.2 billion (net of capital expenditures of €1.5 billion), primarily impacted by working capital seasonality
Available liquidity decreased €1.2 billion to €20.0 billion, reflecting repayment of notes at maturity and accelerated discretionary pension contribution
Operating metrics confirmed. Net industrial cash reflects production realignment to expected demand and accelerated discretionary pension contribution, net of tax
Net revenues €115 - €118 billion
Adjusted EBIT €7.5 - €8.0 billion
Adjusted net profit ~ €5.0 billion
Net industrial cash of €1.5 - €2.0 billion from ~ €3.0 billion
 
 
 
________________________________________________________________________________________________________________________________
(*) This charge does not represent an agreed settlement amount nor an admission of liability, but represents an estimate of the provisions under applicable accounting guidelines based on progress of settlement discussions with counterparties.
(1) Refer to page 2 for highlights excluding Magneti Marelli in line with its presentation as a discontinued operation in the Interim Report for the three and nine months ended September 30, 2018; (2) Combined shipments include all shipments by the Group's unconsolidated joint ventures, whereas consolidated shipments only include shipments from the Group's consolidated subsidiaries; (3) Refer to page 6 for the reconciliations of Net profit to Adjusted EBIT, page 7 for the reconciliations of Net profit to Adjusted net profit and Diluted EPS to Adjusted diluted EPS and page 8 for the reconciliations of Debt to Net industrial cash/(debt) and cash flows from operating activities to Industrial free cash flows; (4) Guidance is not provided on the most directly comparable IFRS financial statement line item for Adjusted EBIT and Adjusted net profit as the income or expense excluded from these non-GAAP financial measures in accordance with our policy are, by definition, not predictable and uncertain. Amounts include the results of Magneti Marelli and do not include any impacts from the announced sale of Magneti Marelli or U.S. diesel emissions matters.

1

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Group results - excluding Magneti Marelli
As a result of the announced sale of Magneti Marelli and, in accordance with IFRS, Magneti Marelli will be presented as a discontinued operation in the Interim Report for the three and nine months ended September 30, 2018, and its results will be presented net of tax in a separate, single line item after Net profit from continuing operations, with the comparative amounts restated. The remaining Components activities are no longer considered a separate reportable segment and are included within "Other activities".
Nine months ended
 September 30
 
FINANCIAL RESULTS 
(excluding Magneti Marelli)
Three months ended
September 30
 
2018

2017

Change
(€ million, except as otherwise noted)
2018

2017

Change
80,938

78,148

2,790

+4
 %
Net revenues - continuing operations
27,594

25,192

2,402

+10
 %
4,907

4,830

77

+2
 %
Adjusted EBIT - continuing operations
1,872

1,648

224

+14
 %
2,159

2,550

(391
)
(15
)%
Net profit from continuing operations
514

822

(308
)
(37
)%
3,215

2,504

711

+28
 %
Adjusted net profit - continuing operations
1,343

854

489

+57
 %
1.38

1.64

(0.26
)


Diluted EPS - continuing operations (€)
0.33

0.53

(0.20
)


2.05

1.61

0.44



Adjusted diluted EPS - continuing operations (€)
0.86

0.55

0.31





Results by segment
Net revenues and Adjusted EBIT
Net revenues
 
Adjusted EBIT
Three months ended September 30
 
Three months ended September 30
2018

2017

(€ million)
2018

2017

19,073

16,126

NAFTA
1,937

1,286

1,983

2,115

LATAM
83

59

582

782

APAC
(96
)
109

4,955

4,975

EMEA
(25
)
127

631

821

Maserati
15

113

370

373

Other activities, unallocated items and eliminations
(42
)
(46
)
27,594

25,192

Total continuing operations, excluding Magneti Marelli
1,872

1,648

1,177

1,222

Magneti Marelli, net of inter-company eliminations
123

110

28,771

26,414

Total - including Magneti Marelli
1,995

1,758

Net revenues and Adjusted EBIT
Net revenues
 
Adjusted EBIT
Nine months ended September 30
 
Nine months ended September 30
2018

2017

(€ million)
2018

2017

53,025

49,307

NAFTA
4,550

3,878

5,979

5,798

LATAM
258

99

1,853

2,424

APAC
(184
)
174

16,925

16,615

EMEA
345

505

1,953

2,844

Maserati
103

372

1,203

1,160

Other activities, unallocated items and eliminations
(165
)
(198
)
80,938

78,148

Total continuing operations, excluding Magneti Marelli
4,907

4,830

3,853

3,910

Magneti Marelli, net of inter-company eliminations
354

330

84,791

82,058

Total - including Magneti Marelli
5,261

5,160


2

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

NAFTA
Three months ended September 30
 
Change
 
2018

2017

 
Actual

CER

Shipments (thousands of units)
673

592

 
+14
%

Net revenues (€ million)
19,073

16,126

 
+18
%
+18
%
Adjusted EBIT (€ million)
1,937

1,286

 
+51
%
+52
%
Adjusted EBIT margin
10.2
%
8.0
%
 
+220 bps


 
Record results with Adjusted EBIT up 51% and margin at 10.2%
 
U.S. market share(5) at 12.9%, up 160 bps year-over-year, with retail share at 12.7%, up 150 bps, and U.S. fleet mix at 17%, up 200 bps
Increase in shipments mainly due to all-new Ram 1500 and Jeep Wrangler, as well as new Jeep Cherokee
Higher Net revenues primarily due to positive effects from volumes and net pricing
Adjusted EBIT increase due to higher volumes, positive mix and net pricing, partially offset by increased product content and logistics costs
 
 
LATAM
Three months ended September 30
 
Change
 
2018

2017

 
Actual

CER

Shipments (thousands of units)
151

140

 
+8
 %

Net revenues (€ million)
1,983

2,115

 
(6
)%
+14
%
Adjusted EBIT (€ million)
83

59

 
+41
 %
+83
%
Adjusted EBIT margin
4.2
%
2.8
%
 
+140 bps


 
Adjusted EBIT up 41%, with margin at 4.2%, despite Argentina economic downturn
 
Market-leader in Brazil, with share(6) up 60 bps to 18.2%, Argentina up 70 bps to 12.7%
Shipments increased, with 15% increase in Brazil partially offset by impact of Argentina economic downturn
Net revenues decrease primarily due to negative foreign exchange translation effects, partially offset by higher shipments, pricing and mix
Adjusted EBIT increase mainly as a result of higher volumes, positive pricing and favorable mix, partially offset by negative foreign exchange effects and higher advertising costs related to new vehicles
 
 
 
 
 
 
 

APAC
Three months ended September 30
 
Change
 
2018

2017

 
Actual

CER

Combined shipments(2) (thousands of units)
46

66

 
(30
)%

Consolidated shipments(2) (thousands of units)
19

23

 
(17
)%

Net revenues (€ million)
582

782

 
(26
)%
(24
)%
Adjusted EBIT (€ million)
(96
)
109

 
n.m(7)

n.m(7)

Adjusted EBIT margin
(16.5
)%
13.9
%
 
n.m(7)


 
Continuation of challenges in China, prior year benefit of Tianjin insurance recovery
 
Shipments down primarily due to China market weakness and increased competition
Net revenues decrease due to lower consolidated volumes, unfavorable mix and pricing actions
Decrease in Adjusted EBIT primarily due to lower net revenues and lower results from China JV, as well as the benefit of the Tianjin port explosions final insurance recovery of 87 million included in prior year results
Results exclude 129 million impairment of inventory in connection with acceleration of new emissions standards in China and slower than expected sales
 
 



______________________________________________________________________________________________________
(5) Our estimated market share data presented are based on management’s estimates of industry sales data, which use certain data provided by third-party sources, including IHS Markit and Ward’s Automotive; (6) Our estimated market share data presented are based on management’s estimates of industry sales data, which use certain data provided by third-party sources, including IHS Markit, National Organization of Automotive Vehicles Distribution and Association of Automotive Producers; (7) Number is not meaningful.

3

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

EMEA
Three months ended September 30
 
Change
 
2018

2017

 
Actual

CER

Shipments (thousands of units)
273

285

 
(4
)%

Net revenues (€ million)
4,955

4,975

 
 %
%
Adjusted EBIT (€ million)
(25
)
127

 
n.m(7)

n.m(7)

Adjusted EBIT margin
(0.5
)%
2.6
%
 
n.m(7)


 
Market transition to new emissions standards. Jeep shipments up 29%
 
European market share (EU28+EFTA) for passenger cars up 10 bps to 6.3% and Light commercial vehicles (LCVs)(8) down 30 bps to 10.6%
Shipments slightly down, with higher Jeep shipments more than offset by lower Fiat volumes
Net revenues flat, with favorable mix offset by lower shipments and continued negative net pricing
Adjusted EBIT decrease due to the items impacting net revenues above, negative trim and channel mix, impacts from the transition to WLTP, as well as higher advertising costs, partially offset by purchasing and manufacturing efficiencies
 
 
MASERATI
Three months ended September 30
 
Change
 
2018

2017

 
Actual

CER

Shipments (thousands of units)
8.8

10.9

 
(19
)%

Net revenues (€ million)
631

821

 
(23
)%
(23
)%
Adjusted EBIT (€ million)
15

113

 
(87
)%
(86
)%
Adjusted EBIT margin
2.4
%
13.8
%
 
n.m(7)


Continued market challenges in China and inventory management actions
 
Shipments down, primarily from lower volumes in China and Europe, more than offsetting slight increase in North America
Net revenues decrease primarily due to lower volumes and market mix
Adjusted EBIT decrease primarily due to lower volumes, market mix and increased research and development costs






















______________________________________________________________________________________________________
(8) Due to unavailability of market data for Italy, the figures reported are an extrapolation and discrepancies with actual data could exist.

4

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Brand Activity
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=9
 
All-new Jeep Wrangler launched in Europe and Korea
All-new Jeep Cherokee launched in Europe and Australia
All-new Jeep Compass launched in Korea
All-new Jeep Commander 5-passenger SUV launched in China  
Jeep brand presents the 2018 Jeep Wrangler Moab Edition, the first limited-edition model based on the all-new Jeep Wrangler
Jeep Grand Cherokee wins gold at the 2018 "Asia Today Korea Consumer Confidence Awards"
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=11
 
Ram reveals new 2018 2500/3500 Heavy Duty "Longhorn Ram Rodeo Edition"
2019 Ram 1500 named to the third annual "Wards 10 Best User Experience List" for 2018
Ram announced the new 2018 limited-edition Power Wagon Mojave Sand Model
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=10
 
World premiere of the V8 Levante GTS and European debut of the Levante Trofeo at the "Goodwood Festival of Speed". Maserati also unveils its 2019 model range at the event
Maserati stars at the 2018 "Monterey Car Week" in California with the new V8 Levante GTS and Trofeo
Maserati Ghibli is voted "Best New Design of 2018" upper class segment by readers of auto motor und sport
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=4
 
Alfa Romeo Stelvio Quadrifoglio is named "SUV of the Year 2018" by Auto Zeitung
Alfa Romeo Stelvio Quadrifoglio named Northwest’s "Most Fun-to-Drive Vehicle" and "Most Fun SUV" by the Northwest Automotive Press Association
Alfa Romeo Stelvio Quadrifoglio named "Performance SUV of the Year" by the Automotive Video Association
Alfa Romeo Stelvio Quadrifoglio receives top award in the "Premium Panoramic" category at the eighth annual "Topless in Miami" hosted by the Southern Automotive Media Association
Alfa Romeo Giulia Carbonio Limited Edition launched in Australia
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=5
 
Chrysler Pacifica ranks highest among minivans for second consecutive year in J.D. Power’s "2018 U.S. Automotive Performance, Execution and Layout Study"
Chrysler 300 awarded best-in-class for the large car segment in AutoPacific's 2018 Ideal Vehicle awards
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=6
 
2019 Dodge Challenger R/T Scat Pack 1320 unveiled, powered by the 392 HEMI V8 that delivers 485 horsepower and 475 lb-ft of torque
“Roadkill Nights Powered by Dodge” attracted more than 44,000 enthusiasts from around the country to watch and participate in legal street racing in Michigan
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=3
 
Abarth launched five new versions of the 595 in EMEA with power levels from 145 to 180 HP
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=8
 
New Fiat 500X unveiled in Europe
Fiat 500e and Fiat 124 Spider Abarth named to Driving Today’s top 10 list of "Coolest Cars under $35,000"
In Brazil, Fiat Fiorino is two-time winner of Agência Autoinforme’s "Higher Resale Value" award - Commercial Vehicle category 
Fiat Cronos Drive 1.3L is elected as "Best Buy 2018" in the "under R$ 60.000" category by Quatro Rodas magazine of Brazil  
Celebrating its legendary past, Fiat announces the return of the Fiat 500 1957 edition in both hatchback and cabrio configurations


5

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Reconciliations
Nine months ended September 30
Net profit to Adjusted EBIT
Three months ended September 30
2018

2017

(€ million)
2018

2017

2,339

2,706

Net profit
564

910

180

156

Less: Net profit - discontinued operations
50

88

2,159

2,550

Net profit from continuing operations
514

822

868

2,065

Tax expense
277

517

801

1,010

Net financial expenses
249

292

 
 
Adjustments:
 
 
713


Charge for U.S. diesel emissions matters(A)
713


164

133

Impairment expense and supplier obligations

80

129


China inventory impairment(B)
129


111


U.S. special bonus payment


78


Employee benefits settlement losses


26

80

Restructuring costs, net of reversals(C)
24

3


(68
)
Tianjin (China) port explosions insurance recoveries

(68
)

(49
)
Gains on disposal of investments


(46
)

Recovery of costs for recall - airbag inflators
(3
)

(47
)
(895
)
Brazilian indirect tax – reversal of liability/recognition of credits(D)
(47
)

(50
)

(Recovery of)/costs for recall - contested with supplier
13


1

4

Other
3

2

1,079

(795
)
Total adjustments - continuing operations
832

17

4,907

4,830

Adjusted EBIT - continuing operations(9)
1,872

1,648

354

330

Adjusted EBIT - discontinued operations(9)
123

110

5,261

5,160

Adjusted EBIT(1),(9)
1,995

1,758

Q3 2018 Adjusted EBIT excludes adjustments primarily related to:
(A)
Charge for estimated costs related to U.S. diesel emissions matters
(B)
Impairment of inventory in connection with acceleration of new emissions standards in China and slower than expected sales
(C)
Restructuring costs of €60 million in EMEA partially offset by reversal of €36 million of previously recorded restructuring costs in LATAM
(D)
Credits recognized related to indirect taxes in Brazil











______________________________________________________________________________________________________
(9) Adjusted EBIT - continuing operations excludes certain adjustments from Net profit from continuing operations including: gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature, and also excludes Net financial expenses and Tax expense/(benefit). Adjusted EBIT includes both Adjusted EBIT - continuing operations and Adjusted EBIT - discontinued operations.

6

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Nine months ended September 30
Net profit to Adjusted net profit
Three months ended September 30
2018

2017

(€ million)
2018

2017

2,339

2,706

Net profit
564

910

180

156

Less: Net profit - discontinued operations
50

88

2,159

2,550

Net profit from continuing operations
514

822

1,079

(795
)
Total adjustments - continuing operations (as above)
832

17

(23
)
15

Tax impact on adjustments(E)
(3
)
15


281

Brazil deferred tax assets write-off



453

Reduction of deferred tax assets related to reversal of a Brazilian indirect tax liability


1,056

(46
)
Total adjustments, net of taxes - continuing operations
829

32

3,215

2,504

Adjusted net profit - continuing operations(10)
1,343

854

200

169

Adjusted net profit - discontinued operations(10)
53

68

3,415

2,673

Adjusted net profit(1),(10)
1,396

922

(E)
Reflects tax impact on adjustments excluded from Adjusted EBIT noted above.

Nine months ended September 30
Diluted EPS to Adjusted diluted EPS
Three months ended September 30
2018

2017

 
2018

2017

1.48

1.73

Diluted EPS (€/share)
0.36

0.58

0.11

0.09

Less: Diluted EPS - discontinued operations
0.03

0.05

1.38

1.64

Diluted EPS - continuing operations (€/share)(*)
0.33

0.53

0.67

(0.03
)
Impact of adjustments, net of taxes, on Diluted EPS - continuing operations(€/share)
0.53

0.02

2.05

1.61

Adjusted diluted EPS - continuing operations (€/share)(11)
0.86

0.55

0.12

0.10

Adjusted diluted EPS - discontinued operations (€/share)(11)
0.03

0.04

2.17

1.71

Adjusted diluted EPS (€/share)(1), (11)
0.89

0.59

1,567,701

1,553,407

Weighted average number of shares outstanding for Diluted EPS (thousand)
1,568,788

1,558,936

(*)Figures may not add due to rounding

















______________________________________________________________________________________________________
(10) Adjusted net profit - continuing operations is calculated as Net profit from continuing operations excluding post-tax impacts of the same items excluded from Adjusted EBIT - continuing operations, as well as financial income/(expenses) and tax income/(expenses) considered rare or discrete events that are infrequent in nature. Adjusted net profit includes both Adjusted net profit - continuing operations and Adjusted net profit - discontinued operations; (11) Adjusted diluted EPS - continuing operations is calculated by adjusting Diluted EPS for the post-tax impact of the same items excluded from Adjusted EBIT - continuing operations, as well as financial income/(expenses) and tax income/(expenses) considered rare or discrete events that are infrequent in nature. Adjusted diluted EPS includes both Adjusted diluted EPS - continuing operations and Adjusted diluted EPS - discontinued operations.

7

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

Debt to Net industrial cash/(debt)
At September
30, 2018
At June
30, 2018
At December
31, 2017
(€ million)
 
 
 
Debt
(15,426
)
(16,362
)
(17,971
)
Current financial receivables from jointly-controlled financial services companies
350

296

285

Derivative financial assets/(liabilities), net and collateral deposits
272

326

206

Current debt securities(12)
371

284

176

Cash and cash equivalents
11,926

13,243

12,638

Net cash/(debt)
(2,507
)
(2,213
)
(4,666
)
Exclude: Net financial services debt
2,318

2,669

2,276

Net industrial cash/(debt)(13)
(189
)
456

(2,390
)
 
 
 
 
Cash flows from operating activities to Industrial free cash flows
Three months ended September 30
(€ million)
2018

2017

Cash flows from operating activities
779

2,051

Less: Operating activities not attributable to industrial activities
(16
)
(17
)
Less: Capital expenditures for industrial activities
(1,514
)
(2,044
)
Add back: Discretionary pension contribution, net of tax
594


Industrial free cash flows(14)
(157
)
(10
)

























______________________________________________________________________________________________________
(12) Excludes certain debt securities held pursuant to applicable regulations (€69 million at September 30, 2018, €67 million at June 30, 2018 and €59 million at December 31, 2017); (13) Net industrial cash/(debt) is computed as: Debt plus derivative financial liabilities related to industrial activities less (i) cash and cash equivalents, (ii) certain current debt securities, (iii) current financial receivables from Group or jointly controlled financial services entities and (iv) derivative financial assets and collateral deposits; therefore, debt, cash and cash equivalents and other financial assets/liabilities pertaining to financial services entities are excluded from the computation of Net industrial cash/(debt). Net industrial cash/(debt) should not be considered as a substitute for cash flows or other financial measures under IFRS; in addition, Net industrial cash/(debt) depends on the amount of cash and cash equivalents at each balance sheet date, which may be affected by the timing of monetization of receivables and the payment of accounts payable, as well as changes in other components of working capital, which can vary from period to period due to, among other things, cash management initiatives and other factors, some of which may be outside of the Group’s control. Net industrial cash/(debt) should therefore be evaluated alongside these other measures as reported under IFRS for a more complete view of the Company’s capital structure and liquidity; (14) Industrial free cash flows is calculated as Cash flows from operating activities less: cash flows from operating activities related to financial services, net of eliminations; Investment in property, plant and equipment and intangible assets for industrial activities; and adjusted for discretionary pension contributions in excess of those required by the pension plans.

8

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12518132&doc=7

This document, and in particular the section entitled “2018 Guidance”, contains forward-looking statements. In particular, these forward-looking statements include statements regarding future financial performance and the Company's expectations as to the achievement of certain targeted metrics, including net cash/(debt) and net industrial cash/(debt), revenues, industrial free cash flows, vehicle shipments, capital investments, research and development costs and other expenses at any future date or for any future period are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group’s current state of knowledge, future expectations and projections about future events and are, by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the Group's ability to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic  environment and changes in demand for automotive products, which is subject to cyclicality; changes in local economic and political conditions, changes in trade policy and the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the Group's ability to expand certain of the Group's brands globally; the Group's ability to offer innovative, attractive products; the Group's ability to develop, manufacture and sell vehicles with advanced features including enhanced electrification and autonomous driving characteristics; various types of claims, lawsuits, governmental investigations and other contingent obligations affecting the Group, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the intense level of competition in the automotive industry, which may increase due to consolidation; exposure to shortfalls in the funding of the Group's defined benefit pension plans; the Group's ability to provide or arrange for access to adequate financing for the Group's dealers and retail customers and associated risks related to the establishment and operations of financial services companies, including capital required to be deployed to financial services;  the Group's ability to access funding to execute the Group's business plan and improve the Group's business, financial condition and results of operations; a significant malfunction, disruption or security breach compromising the Group’s information technology systems or the electronic control systems contained in the Group’s vehicles; the Group's ability to realize anticipated benefits from joint venture arrangements; the Group's ability to successfully implement and execute strategic initiatives and transactions, including the Group's plans to separate certain businesses; disruptions arising from political, social and economic instability; risks associated with our relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or shortages of raw materials; developments in labor and industrial relations and developments in applicable labor laws; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other disasters and other risks and uncertainties.

Any forward-looking statements contained in this document speak only as of the date of this document and the Company disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.

On October 30, 2018, at 3 p.m. GMT, management will hold a conference call to present the 2018 third quarter results to financial analysts and institutional investors. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en-us/pages/home.aspx). The supporting document will be made available on the Group website prior to the call.

London, October 30, 2018




9