Document


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 August 2021
Commission File No. 001-36675
_______________________________
STELLANTIS N.V.
(Translation of Registrant’s Name Into English)

_______________________________
Singaporestraat 92-100
1175 RA Lijnden
The Netherlands
Tel. No.: +31 20 3421 707
(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


























The following exhibits are furnished herewith:
Exhibit 99.1Stellantis N.V. Semi-Annual Report as of and for the six months ended June 30, 2021



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: August 4, 2021
STELLANTIS N.V.
By:
/s/ Richard K. Palmer
Name: Richard K. Palmer
Title: Chief Financial Officer



Index of Exhibits
Exhibit NumberDescription of Exhibit
Exhibit 99.1Stellantis N.V. Semi-Annual Report as of and for the six months ended June 30, 2021


Document







Exhibit 99.1

https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-stellantislogo.jpg

Semi-Annual Report
As of and for the six months ended June 30, 2021










TABLE OF CONTENTS
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CERTAIN DEFINED TERMS
    In this Semi-Annual Report, unless otherwise specified, the terms “we”, “our”, “us”, the “Group”, the “Company” and “Stellantis” refer to Stellantis N.V., together with its consolidated subsidiaries, or any one or more of them, as the context may require. References to “FCA”, “FCA NV” and “FCA Group” mean Fiat Chrysler Automobiles N.V. or Fiat Chrysler Automobiles N.V. together with its consolidated subsidiaries, or any one or more of them, as the context may require. References to “PSA” and “Groupe PSA” mean Peugeot S.A. or Peugeot S.A. together with its consolidated subsidiaries, or any one or more of them, as the context may require. References to the “merger” refer to the merger between PSA and FCA completed on January 16, 2021 and resulting in the creation of Stellantis.
    All references in this Semi-Annual Report to “Euro” and “€” refer to the currency issued by the European Central Bank. The Group’s financial information is presented in Euro. All references to “U.S. Dollars”, “U.S. Dollar”, “U.S.$” and “$” refer to the currency of the United States of America (“U.S.”).

Cautionary Statements Concerning Forward Looking Statements
    Statements contained in this Semi-Annual Report, particularly those regarding possible or assumed future performance, competitive strengths, costs, dividends, reserves, our growth, industry growth and other trends and projections and estimated company earnings are “forward-looking statements” that contain risks and uncertainties. In some cases, words 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 are used to identify forward-looking statements. These forward-looking statements reflect our current views with respect to future events and involve significant risks and uncertainties that could cause actual results to differ materially.
These factors include, without limitation:
the impact of the COVID-19 pandemic;
our 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;
our ability to expand certain of our brands globally;
our ability to offer innovative, attractive products, and to develop, manufacture and sell vehicles with advanced features, including enhanced electrification, connectivity and autonomous-driving characteristics;
various types of claims, lawsuits, governmental investigations and other contingencies, 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 our defined benefit pension plans;
our ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the establishment and operations of financial services companies;
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our ability to access funding to execute our business plans and improve our businesses, financial condition and results of operations;
a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in our vehicles;
our ability to realize anticipated benefits from joint venture arrangements;
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, parts, components and systems used in our vehicles;
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;
the risk that the operations of Peugeot S.A. and Fiat Chrysler Automobiles N.V. will not be integrated successfully and other risks and uncertainties; and
other factors discussed elsewhere in this report.
Furthermore, in light of the inherent difficulty in forecasting future results, any estimates or forecasts of particular periods that are provided in this report are uncertain. We expressly disclaim and do not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this report or in connection with any use by any third party of such forward-looking statements. Actual results could differ materially from those anticipated in such forward-looking statements. We do not undertake an obligation to update or revise publicly any forward-looking statements.
    Additional factors which could cause actual results and developments to differ from those expressed or implied by the forward-looking statements are included in the section — Risks and Uncertainties of this Semi-Annual Report.


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MANAGEMENT DISCUSSION AND ANALYSIS

FCA - PSA merger
On December 17, 2019, FCA and PSA entered into a combination agreement providing for the combination of FCA and PSA through a cross-border merger, with FCA as the surviving legal entity in the merger (“Stellantis”).
On September 14, 2020, FCA and PSA agreed to amend the combination agreement. According to the combination agreement amendment, the FCA Extraordinary Dividend, to be paid to former FCA shareholders was reduced to €2.9 billion, with PSA’s 46 percent stake in Faurecia S.E. (“Faurecia”) planned to be distributed to all Stellantis shareholders promptly after closing following approval of the Stellantis board and shareholders.
On January 4, 2021, PSA and FCA held their respective extraordinary general shareholder meetings in order to, among other matters, approve the merger transaction. The respective shareholder meetings approved the merger. Following the respective shareholder approvals and receipt of the final regulatory clearances, FCA and PSA completed the legal merger. The conditions agreed to as part of the regulatory clearance do not have a material impact on the cash flows or financial positions for the Group.
On January 17, 2021, the combined company was renamed Stellantis, the board of directors was appointed and the Stellantis articles of association became effective. On this date, the Stellantis management and board of directors collectively obtained the power and the ability to control the assets, liabilities and operations of both FCA and PSA. As such, under IFRS 3 - Business Combinations (“IFRS 3”), January 17, 2021 is the acquisition date for the business combination.
On January 29, 2021, the approximately €2.9 billion extraordinary distribution was paid to holders of FCA common shares of record as of the close of business on Friday, January 15, 2021.
Refer to Note 2, Scope of Consolidation, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information.
Identification of the accounting acquirer
The merger was accounted for by Stellantis using the acquisition method of accounting in accordance with IFRS 3, which requires the identification of the acquirer and the acquiree for accounting purposes. Based on the assessment of the indicators under IFRS 3 and consideration of all pertinent facts and circumstances, management determined that PSA is the acquirer for accounting purposes and as such, the merger has been accounted for as a reverse acquisition. In identifying PSA as the acquiring entity, notwithstanding that the merger was effected through an issuance of FCA shares, the most significant indicators were (i) the composition of the combined group’s board, composed of eleven directors, six of whom were to be nominated by PSA, PSA shareholders or PSA employees, or were current PSA executives, (ii) the combined group’s first CEO, who is vested with the full authority to individually represent the combined group, and was the president of the PSA Managing Board prior to the merger, and (iii) the payment of a premium by pre-merger shareholders of PSA.
Refer to Note 2, Scope of Consolidation, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information.
References to Stellantis and PSA annual reports for the year ended December 31, 2020
As a result of FCA being the surviving legal entity in the merger, the section “Risks and Uncertainties” within this Semi-Annual Report makes reference to the Stellantis Annual Report and Form 20-F for the year ended December 31, 2020 filed with the U.S. Securities and Exchange Commission (“SEC”) and the Netherlands Authority for Financial Markets (Autoriteit Financiële Markten, the “AFM”) on March 4, 2021, which included disclosure of the main risks and uncertainties to which the Stellantis Group is exposed. As a result of PSA being the accounting acquirer in the merger, the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report, in particular Note 1, Basis of preparation, make reference to the “Consolidated Financial Statements and Management’s Discussion and Analysis of Groupe PSA for the year ended December 31, 2020”, furnished to the SEC on March 4, 2021, which includes disclosure of the significant accounting policies of PSA, which have been applied by the Group following the merger.
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Faurecia Distribution
On January 25, 2021, an extraordinary general meeting of the shareholders was convened in order to approve the distribution by Stellantis to the holders of its common shares of up to 54,297,006 ordinary shares of Faurecia (an automotive equipment supplier) and up to €308 million, which are the proceeds received by Peugeot S.A. in November 2020 from the sale of certain ordinary shares of Faurecia. The distribution represented the legacy PSA ownership in Faurecia and approximately 39 percent of the share capital of Faurecia and became unconditional on March 10, 2021, with (i) ex-date on Monday, March 15, 2021; and (ii) record date on Tuesday, March 16, 2021. Holders of Stellantis common shares have been entitled to: (i) 0.017029 ordinary shares of Faurecia; and (ii) €0.096677 for each common share of Stellantis they hold on the record date for the Distribution. The distribution occurred on March 22, 2021, resulting in 53,130,574 ordinary shares of Faurecia and €302 million in cash distributed.
Refer to Note 2, Scope of consolidation, and to Note 21, Equity, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information on Faurecia deconsolidation and distribution.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
This Unaudited Pro Forma Condensed Consolidated Financial Information has been prepared to give effect to completion of the merger of PSA and FCA to create Stellantis, which was completed on January 17, 2021, as if it had been completed on January 1, 2020. The Unaudited Pro Forma Condensed Consolidated Financial Information includes the unaudited pro forma condensed consolidated income statement for the six months ended June 30, 2021 and 2020 and the related explanatory notes (the “Unaudited Pro Forma Condensed Consolidated Financial Information”). The Unaudited Pro Forma Condensed Consolidated Financial Information has been prepared for illustrative purposes only with the aim to provide comparative period income statement information, and does not necessarily represent what the actual results of operations would have been had the merger been completed on January 1, 2020. Additionally, the Unaudited Pro Forma Condensed Consolidated Financial Information does not attempt to represent, or be an indication of, the future results of operations or cash flows of Stellantis. No pro forma statement of financial position has been presented as the effects of the merger have been reflected in the Semi-Annual Condensed Consolidated Statement of Financial Position of Stellantis as of June 30, 2021. Please refer to the Semi-Annual Condensed Consolidated Statement of Financial Position as of June 30, 2021 included elsewhere within this Semi-Annual Report for additional information.
Refer to the section FCA - PSA merger included above for information on the reverse acquisition presentation of the financial statements and to Note 2, Scope of Consolidation in the Semi-Annual Condensed Consolidated Financial Statements included elsewhere within this Semi-Annual Report for additional information on the merger.
The Unaudited Pro Forma Condensed Consolidated Financial Information presented herein is derived from (i) the Semi-Annual Condensed Consolidated Income Statement of Stellantis for the six months ended June 30, 2021 and 2020 included elsewhere in this report, (ii) FCA’s Semi-Annual Condensed Consolidated Income Statement for the three and six months ended June 30, 2020, contained in FCA’s Semi-Annual Report on Form 6-K furnished to the SEC on July 31, 2020, and (iii) FCA’s accounting records for the period from January 1, 2021 to January 16, 2021. The Unaudited Pro Forma Condensed Consolidated Financial Information should be read in conjunction with the historical consolidated financial statements referenced above and the accompanying notes thereto, as well as the other information contained in this Semi-Annual Report.
The historical consolidated financial statements of Stellantis and FCA are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and in accordance with IFRS as adopted by the European Union. There is no effect on the historical consolidated financial statements resulting from differences between IFRS as issued by the IASB and IFRS as adopted by the European Union. The Unaudited Pro Forma Condensed Consolidated Financial Information is prepared on a basis that is consistent with the accounting policies used in the preparation of the Semi-Annual Condensed Consolidated Financial Statements of Stellantis as of and for the six months ended June 30, 2021 and 2020 included elsewhere in this report.
The historical consolidated financial information has been adjusted in the accompanying Unaudited Pro Forma Condensed Consolidated Financial Information to give effect to unaudited pro forma events that are directly attributable to the merger and factually supportable. Specifically, the pro forma adjustments relate to the following:
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The preliminary purchase price allocation, primarily to reflect adjustments to depreciation and amortization associated with the acquired property, plant and equipment and intangible assets with a finite useful life, as well as a reduction in interest expense related to the fair value adjustments to financial liabilities.
The alignment of accounting policies of FCA to those applied by Stellantis.
The elimination of intercompany transactions between FCA and PSA.
The pro forma adjustments relate to the two periods from January 1, 2020 to June 30, 2020 and from January 1, 2021 to January 16, 2021.
The Unaudited Pro Forma Condensed Consolidated Financial Information does not reflect any anticipated synergies, operating efficiencies or cost savings that may be achieved, or any integration costs that may be incurred, following the completion of the merger.

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UNAUDITED PRO FORMA SEMI-ANNUAL CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020
For the six months ended June 30, 2021
Pro Forma adjustments
(€ million, except per share amounts)
Stellantis
January 1 - 16, 2021 results of FCAPreliminary Purchase Price AllocationOther adjustmentsStellantis Pro Forma Consolidated Income Statement
Note 1Note 2Note 3Note 4
Net revenues72,610 2,704 (6)75,310 
Cost of revenues58,301 2,322 (52)(6)60,565 
Selling, general and other costs4,550 192 (2)— 4,740 
Research and development costs2,046 113 (40)— 2,119 
Gains on disposal of investments— — — 
Restructuring costs371 — — — 371 
Operating income/(loss)7,344 77 96  7,517 
Net financial expenses217 29 (17)— 229 
Profit/(loss) before taxes7,127 48 113  7,288 
Tax expense1,729 21 — 1,757 
Share of the profit of equity method investees402 — — 405 
Net profit/(loss) from continuing operations5,800 30 106  5,936 
Profit/(loss) from discontinued operations, net of tax990 — — 990 
Net profit/(loss)6,790 30 106  6,926 
Net profit/(loss) attributable to:
Owners of the parent6,780 30 106 — 6,916 
Non-controlling interests10 — — — 10 
Net profit/(loss) from continuing operations
Owners of the parent5,790 30 106 — 5,926 
Non-controlling interests10 — — — 10 
Earnings per share:
Basic earnings per share2.17 2.21 
Diluted earnings per share2.11 2.16 
Earnings per share from continuing operations:
Basic earnings per share1.85 1.90 
Diluted earnings per share1.81 1.85 


The accompanying notes are an integral part of the Unaudited Pro Forma Condensed Consolidated Financial Information.
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For the six months ended June 30, 2020
Pro Forma adjustments
(€ million, except per share amounts)
PSA Consolidated Income Statement (as adjusted)(1)
FCA January 1 - June 30, 2020Preliminary Purchase Price AllocationOther adjustmentsStellantis Pro Forma Consolidated Income Statement
Note 1Note 2Note 3Note 4
Net revenues19,614 32,274 59 (279)51,668 
Cost of revenues16,108 29,921 (635)(239)45,155 
Selling, general and other costs1,873 2,480 (26)15 4,342 
Research and development costs1,077 1,509 (480)121 2,227 
Gains on disposal of investments203 — — 207 
Restructuring costs43 43 — — 86 
Operating income/(loss)716 (1,675)1,200 (176)65 
Net financial (income)/expenses(160)450 (189)(10)91 
Profit/(loss) before taxes876 (2,125)1,389 (166)(26)
Tax expense/(benefit)155 690 121 (30)936 
Share of the profit of equity method investees76 73 — — 149 
Net profit/(loss) from continuing operations797 (2,742)1,268 (136)(813)
Loss from discontinued operations, net of tax(421)— — — (421)
Net profit/(loss)376 (2,742)1,268 (136)(1,234)
Net profit/(loss) attributable to:
Owners of the parent595 (2,734)1,260 (136)(1,015)
Non-controlling interests(219)(8)— (219)
Net profit/(loss) from continuing operations
Owners of the parent800 (2,734)1,260 (136)(810)
Non-controlling interests(3)(8)— (3)
Earnings per share:
Basic earnings per share0.66 (0.33)
Diluted earnings per share0.63 (0.33)
Earnings per share from continuing operations:
Basic earnings per share0.89 (0.26)
Diluted earnings per share0.85 (0.26)
________________________________________________________________________________________________________________________________________________
(1) Refer to Note 2, Scope of consolidation in the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this Report.
The accompanying notes are an integral part of the Unaudited Pro Forma Condensed Consolidated Financial Information.

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NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Note 1 – Stellantis
This column is the Semi-Annual Condensed Consolidated Income Statement of Stellantis for the six months ended June 30, 2021 and 2020, included elsewhere within this Semi-Annual Report. In accordance with IFRS 3, PSA was determined to be the acquirer for accounting purposes, therefore, the six months ended June 30, 2020 represent the continuing operations of PSA and are not directly comparable to previously reported results of PSA, as the results reflect reporting classifications of the Group. Refer to Note 2, Scope of Consolidation, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere within this Semi-Annual Report for additional information.
Note 2 – FCA Historical
This column represents the FCA Semi-Annual Condensed Consolidated Income Statement for the six months ended June 30, 2020, included in the FCA Semi-Annual Report on Form 6-K furnished to the SEC on July 31, 2020, as well as FCA results for the period from January 1, 2021 to January 16, 2021, as derived from FCA’s accounting records. In order to conform to the presentation of Stellantis in its Semi-Annual Condensed Consolidated Income Statement for the six months ended June 30, 2021 and 2020 included elsewhere within this Semi-Annual Report, Results from investments related to equity method investments are reclassified to Share of the profit of equity method investees, and Results from Investments other than equity method investments are reclassified to Net financial expenses.
Note 3 – Preliminary Purchase Price Allocation
As noted in the introduction to this Unaudited Pro Forma Condensed Consolidated Financial Information, the merger has been accounted for using the acquisition method of accounting in accordance with IFRS 3, with PSA identified as the accounting acquirer (reverse acquisition accounting). The acquisition method of accounting under IFRS 3 applies the fair value concepts defined in IFRS 13 and requires, among other things, that the assets acquired and the liabilities assumed in a business combination be recognized by the acquirer at their fair values as of the merger date, which for accounting purposes was January 17, 2021. As a result, the acquisition method of accounting has been applied and the assets and liabilities of FCA have been recognized at the merger acquisition date at their respective fair values, with limited exceptions as permitted by IFRS 3. The fair values assigned to the assets acquired and liabilities assumed are preliminary and will be finalized during the one-year measurement period from the acquisition date, as provided for by IFRS 3. The excess of the consideration transferred over the fair value of FCA’s assets acquired and liabilities assumed has been recorded as goodwill. Refer to Note 2, Scope of Consolidation, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere within this Semi-Annual Report for additional information.
The Unaudited Pro Forma Condensed Consolidated Financial Information reflects the effects of the preliminary purchase accounting adjustments, where applicable, on the unaudited pro forma condensed consolidated income statement for the six months ended June 30, 2021 and 2020 as if the merger had occurred on January 1, 2020.
The following tables provide a summary of the pro forma effects of the preliminary purchase price allocation adjustments in the unaudited pro forma condensed consolidated income statement for the six months ended June 30, 2021 and 2020.
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For the period January 1 - 16, 2021
January 1-16, 2021
(€ million)Intangible assetsProperty, plant and equipmentFinancial liabilitiesOtherTotal
(A)(B)(C)(D)
Net revenues— — — 
Cost of revenues— 45 — 52 
Selling, general and other costs— — — 
Research and development costs40 — — — 40 
Net financial expenses/(income)— — 21 (4)17 
Tax expenses(4)— (3)— (7)
Net profit36 47 18 5 106 

For the six months ended June 30, 2020

For the six months ended June 30, 2020
(€ million)
Intangible assets
Property, plant and equipment
Financial liabilities
Other
Total
(A)(B)(C)(D)
Net revenues— — — 59 59 
Cost of revenues(2)546 — 91 635 
Selling, general and other costs22 — — 26 
Research and development costs480 — — — 480 
Net financial expenses/(income)— — 236 (47)189 
Tax expenses(45)(14)(38)(24)(121)
Net profit437 554 198 79 1,268 
The pro forma adjustments are described in further detail below.
A.Intangible assets
The fair value of brands (Jeep, Ram, Dodge, Fiat, Maserati, Alfa Romeo and Mopar) was determined through an income approach based on the relief from royalty method, which requires an estimate of future expected cash flows. The useful life associated with the brands is determined to be indefinite. For capitalized development expenditures, the fair value has been assessed according to a multi-criteria approach based on relief from royalty method and an excess-earning method. The fair value for the Dealer network has been assessed using the replacement cost method.
Amortization of intangible assets has been calculated on the fair value taking into account the estimated remaining useful life of the acquired assets. The related change in amortization as a result of the fair value adjustment to intangible assets was a net decrease in amortization expense of €40 million and €482 million for the period January 1 to January 16, 2021, and for the six months ended June 30, 2020, respectively, of which €40 million and €480 million has been recorded within Research and development costs in relation to capitalized research and development costs and other intangible assets, respectively, and €4 million has been recorded within Selling, general and other costs in relation to the dealer network and €(2) million has been recorded within Cost of revenues in relation to reacquired rights for the six months ended June 30, 2020.

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B.Property, plant and equipment
The fair value of property, plant and equipment was determined primarily through the replacement cost method, which requires an estimation of the physical, functional and economic obsolescence of the related assets. A market approach, which requires the comparison of the subject assets to transactions involving comparable assets, was applied to determine the fair value of land. The fair value of certain assets was determined through an income approach.
Depreciation has been calculated on the fair value taking into account the estimated remaining useful life of the acquired assets. The related change in depreciation as a result of the fair value adjustment to property, plant and equipment was a decrease in depreciation expense of €47 million and €568 million for the period January 1 to January 16, 2021, and for the six months ended June 30, 2020, respectively, of which €45 million and €546 million has been recorded within Cost of revenues and €2 million and €22 million within Selling, general and other costs in the Unaudited Pro Forma Condensed Consolidated Financial Information.
C.Financial liabilities
Purchase price adjustments were recognized to step up to fair value the financial liabilities not measured at fair value based on quoted market prices for listed debt and based on discounted cash flow models for debt that is not listed. The fair value adjustments to financial liabilities resulted in a decrease in interest expense due to the decrease of the effective interest rate based on current market conditions, of €21 million and €236 million for the period January 1 to January 16, 2021 and for the six months ended June 30, 2020, respectively, and has been recorded within Net financial income (expense) in the Unaudited Pro Forma Condensed Consolidated Financial Information.
D.Other
Primarily reflects:
the recognition of additional revenue of €2 million and €28 million for the period January 1 to January 16, 2021 and for the six months ended June 30, 2020, respectively, as a result of a step up to fair value of deferred revenue relating to extended warranty service contracts, as well as additional finance costs of €4 million and €52 million for the period January 1 to January 16, 2021 and for the six months ended June 30, 2020, respectively, due to the recognition of the fair value adjustments of the related liabilities.
the reversal of the income statement impact of €7 million and €121 million for the period January 1 to January 16, 2021 and for the six months ended June 30, 2020, respectively, of certain prepaid assets that were written off as part of the purchase price allocation.
The step up in the value of inventories has not been recognized as a pro forma adjustment as this impact has been recognized in Stellantis results for the six months ended June 30, 2021.
E.Tax expense
Represents the tax effects on the pro forma adjustments reflected in the unaudited pro forma condensed consolidated income statement, calculated based on statutory tax rates applicable in the relevant jurisdictions.
Note 4 – Other Adjustments
Other adjustments mainly include the following:
the elimination of the intercompany transactions with Sevel S.p.A. (“Sevel”) in the Stellantis Semi-Annual Condensed Consolidated Income Statement for the six months ended June 30, 2020 of €255 million. Sevel is a joint operation that was previously owned 50 percent each by both PSA and FCA. Upon completion of the merger, Stellantis holds 100 percent of Sevel, which is fully consolidated from that date;
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The alignment of FCA’s accounting policies to Stellantis accounting policies resulting in a net decrease in Net profit of €136 million for the six months ended June 30, 2020, primarily relating to an increase in Research and development expenditures expensed.
the alignment of the classification of certain items to align to Stellantis’ income statement presentation.
Note 5 - Pro Forma Earnings per Share
Pro forma basic earnings per share is calculated by dividing the Pro Forma Net profit from continuing operations attributable to the owners of the parent by the Pro Forma weighted average number of shares outstanding, as adjusted for the merger.
Pro forma diluted earnings per share is calculated by adjusting the historical diluted weighted average number of shares outstanding with the Pro Forma weighted average number of dilutive shares outstanding, as adjusted for the merger.
Refer to Note 22, Earnings per share, included within the Semi-Annual Condensed Consolidated Financial Statements included within this report for additional detail on the calculation of earnings per share.

Regarding the Pro Forma basic and diluted earnings per share from continuing operations for the six months ended June 30, 2020:
(i) Pro forma weighted average number of outstanding Stellantis common shares for the six months ended June 30, 2020 includes PSA weighted average number of outstanding common shares for the six months ended June 30, 2020 converted with the merger exchange ratio of 1.742 and Stellantis common shares issued at the merger date;
(ii) The number of the equity warrants on PSA ordinary shares delivered to General Motors, amounting to 39,727,324, have been included in the diluted number of shares and converted with the merger exchange ratio of 1.742;
(iii) Pro forma weighted average number of outstanding Stellantis common shares resulting from dilutive equity instruments performance share plans issued by PSA. and converted with the merger exchange ratio of 1.742; and
(iv) Pro forma weighted average number of outstanding Stellantis common shares resulting from the equity instruments issued under FCA’s equity incentive plan

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Pro Forma Basic earnings per share
Six months ended June 30, 2021
(€ million except otherwise noted)StellantisContinuing operationsDiscontinued operations
Net profit attributable to owners of the parent6,780 5,790 990 
Add: FCA Net profit attributable to owners of the parent, January 1 - 16, 202130 30 — 
Add: Pro forma adjustments106 106 — 
Pro Forma Net profit attributable to owners of the parent (A)6,916 5,926 990 
Weighted average number of shares outstanding for basic earnings per share (thousand), January 17 - June 30, 2021 (B)3,123,533 3,123,533 3,123,533 
 Pro Forma Basic earnings per share (€ per share) (A/B)2.21 1.90 0.32 
Six months ended June 30, 2020
(€ million except otherwise noted)StellantisContinuing operationsDiscontinued operations
Net profit/(loss) attributable to owners of the parent595 800 (205)
Add: FCA Net loss attributable to owners of the parent, January 1 - June 30, 2020(2,734)(2,734) 
Add: Pro forma adjustments1,124 1,124  
 Pro Forma Net profit attributable to owners of the parent (A)(1,015)(810)(205)
 Pro Forma Weighted average number of shares outstanding for diluted earnings per share (thousand) (B)3,119,935 3,119,935 3,119,935 
 Pro Forma Basic loss per share (€ per share) (A/B)(0.33)(0.26)(0.07)

Pro Forma Diluted earnings per share
Six months ended June 30, 2021
(€ million except otherwise noted)StellantisContinuing operationsDiscontinued operations
Net profit attributable to owners of the parent6,780 5,790 990 
Add: FCA Net profit attributable to owners of the parent, January 1 - 16, 202130 30 — 
Add: Pro forma adjustments106 106 — 
Pro Forma Net profit attributable to owners of the parent (A)6,916 5,926 990 
Weighted average number of shares outstanding (thousand), January 17 - June 30, 20213,123,533 3,123,533 3,123,533 
Number of shares deployable for share-based compensation, January 17 - June 30, 202114,577 14,577 14,577 
   Equity warrants delivered to General Motors68,497 68,497 68,497 
Pro Forma Weighted average number of shares outstanding for diluted earnings per share (thousand) (B)3,206,607 3,206,607 3,206,607 
Pro Forma Diluted earnings per share (€ per share) (A/B)2.16 1.85 0.31 
14









Six months ended June 30, 2020
(€ million except otherwise noted)StellantisContinuing operationsDiscontinued operations
Net profit/(loss) attributable to owners of the parent595 800 (205)
Add: FCA Net loss attributable to owners of the parent, January 1 - June 30, 2020(2,734)(2,734)— 
Add: Pro forma adjustments1,124 1,124 — 
Pro Forma Net loss attributable to owners of the parent (A)(1,015)(810)(205)
Weighted average number of shares outstanding for diluted earnings per share (thousand) (B)(1)
3,119,935 3,119,935 3,119,935 
Pro Forma Diluted loss per share (€ per share) (A/B)(0.33)(0.26)(0.07)
________________________________________________________________________________________________________________________________________________
(1) Number of shares deployable for share-based compensation and equity warrants delivered to General Motors have not been taken into consideration in the calculation of Pro Forma diluted loss per share for the six months ended June 30, 2020 as this would have had an anti-dilutive effect




15









Highlights - from continuing operations
    Unless otherwise stated, all figures below exclude results from discontinued operations:
Pro Forma
Six months ended June 30,Six months ended June 30,
20212020(€ million, except shipments, which are in thousands of units, and per share amounts)20212020
3,181 1,032 
Combined shipments(1)
3,274 2,274 
3,080 1,010 
Consolidated shipments(2)
3,171 2,198 
72,610 19,614 
Net revenues
75,310 51,668 
5,800 797 
Net profit/(loss) from continuing operations
5,936 (813)
990 (421)
Profit/(loss) from discontinued operations, net of tax(3)
990 (421)
6,790 376 
Net profit/(loss) (including discontinued operations)
6,926 (1,234)
8,438 
Adjusted operating income(4)
8,622 752 
Adjusted net profit(5)
6,895 361 
Earnings/(loss) per share - including discontinued operations(6)
2.17 0.66 
Basic earnings/(loss) per share (€)
2.21 (0.33)
2.11 0.63 
Diluted earnings/(loss)/(loss) per share (€)
2.16 (0.33)
Earnings/(loss) per share from continuing operations(6)
1.85 0.89 
Basic earnings/(loss) per share (€)
1.90 (0.26)
1.81 0.85 
Diluted earnings/(loss) per share (€)
1.85 (0.26)
n.a.n.a.
Adjusted diluted earnings per share(7) (€)
2.15 0.12 
Distribution paid, per share
— — 
Ordinary dividends, per share (€)
n.a.n.a.
0.32 — 
Extraordinary distribution, per share (€)
n.a.n.a.
____________________________________________________________________________________________________
n.a. = not applicable
16









Pro Forma
Six months ended June 30,Six months ended June 30,
20212020(€ million)20212020
5,615 (2,739)
Net cash from (used in) operating activities
n.a.n.a.
5,615 (2,452)
Of which: Net cash from (used in) operating activities of continuing operations
n.a.n.a.
— (287)
Of which: Net cash from (used in) operating activities of discontinued operations(8)
n.a.n.a.
Industrial free cash flows(9)
(1,163)
n.a.
______________________________________________________________________________________________________________________________
n.a. = not applicable
Aggregated
At June 30, 2021(€ million)At December 31, 2020
52,396 Available Liquidity 58,253 
51,445 Of which: Industrial Available liquidity57,278 
11,506 
Industrial net financial position(10)
17,826 
____________________________________________________________________________________________________________________________
(1) Combined shipments include shipments by the Stellantis Group's consolidated subsidiaries and unconsolidated joint ventures.
(2) Consolidated shipments only include shipments by the Stellantis Group's consolidated subsidiaries.
(3) Loss from discontinued operations, net of tax for the six months ended June 30, 2020 relates to Faurecia. Refer to Note 2, Scope of Consolidation in the Semi-Annual Condensed Consolidated Financial Statements included in this Semi-Annual Report.
(4) Refer to sections — Non-GAAP Financial Measures, Group Results and Results by Segment in this Semi-Annual Report for further discussion.
(5) Refer to sections — Non-GAAP Financial Measures and Group Results in this Semi-Annual Report for further discussion.
(6) Refer to Note 22, Earnings per share, in the Semi-Annual Condensed Consolidated Financial Statements included in this Semi-Annual Report.
(7) Refer to sections - Non-GAAP Financial Measures and Group Results in this Semi-Annual Report for further discussion.
(8) For the six months ended June 30, 2020, includes only cash flows relating to third parties and excluding intercompany..
(9) Amounts exclude discontinued operations. Refer to sections — Non-GAAP Financial Measures and Liquidity and Capital Resources in this Semi-Annual Report for further discussion.
(10) Refer to sections — Non-GAAP Financial Measures and Liquidity and Capital Resources in this Semi-Annual Report for further discussion.


17









Non-GAAP Financial Measures
    We monitor our operations through the use of several non-generally accepted accounting principles (“non-GAAP”) financial measures: Adjusted operating income, Adjusted net profit, Adjusted diluted earnings per share (“Adjusted diluted EPS”), and Industrial free cash flows. We believe that these non-GAAP financial measures provide useful and relevant information regarding our operating results and enhance the overall ability to assess our financial performance. They provide us with comparable measures which facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. These and similar measures are widely used in the industry in which we operate, however, these financial measures may not be comparable to other similarly titled measures of other companies and are not intended to be substitutes for measures of financial performance as prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), as well as IFRS as adopted by the European Union.
Adjusted operating income: Adjusted operating income/(loss) excludes from Net profit/(loss) from continuing operations adjustments comprising restructuring, impairments, asset write-offs, disposals of investments and unusual operating income/(expense) that are considered rare or discrete events and are infrequent in nature, as inclusion of such items is not considered to be indicative of the Group's ongoing operating performance, and also excludes Net financial expenses/(income), Tax expense/(benefit) and Share of the profit of equity method investees.
Unusual operating income/(expense) are impacts from strategic decisions as well as events considered rare or discrete and infrequent in nature, as inclusion of such items is not considered to be indicative of the Group's ongoing operating performance. Unusual operating income/(expense) includes, but may not be limited to:
Impacts from strategic decisions to rationalize Stellantis’ core operations,
Facility-related costs stemming from Stellantis’ plans to match production capacity and cost structure to market demand, and
Convergence and integration costs directly related to significant acquisitions or mergers.
For the six months ended June 30, 2021, Pro Forma Adjusted operating income includes the Adjusted operating income of FCA for the period January 1 - January 16, 2021. For the six months ended June 30, 2020, Pro Forma Adjusted operating income includes the Adjusted operating income result of FCA for the period January 1 - June 30, 2020.

Adjusted operating income is used for internal reporting to assess performance and as part of the Group's forecasting, budgeting and decision making processes as it provides additional transparency to the Group's core operations. We believe this non-GAAP measure is useful because it excludes items that we do not believe are indicative of the Group’s ongoing operating performance and allows management to view operating trends, perform analytical comparisons and benchmark performance between periods and among our segments. We also believe that Adjusted operating income is useful for analysts and investors to understand how management assesses the Group’s ongoing operating performance on a consistent basis. In addition, Adjusted operating income is one of the metrics used in the determination of the annual performance bonus for the Chief Executive Officer of the Group and other eligible employees, including members of the Top Executive Team.

    Refer to the sections Group Results and Results by Segment below for further discussion and for a reconciliation of this non-GAAP measure to Net profit from continuing operations, which is the most directly comparable measure included in our Semi-Annual Condensed Consolidated Income Statement. Adjusted operating income should not be considered as a substitute for Net profit from continuing operations, cash flow or other methods of analyzing our results as reported under IFRS.
    Adjusted net profit: is calculated as Net profit from continuing operations excluding post-tax impacts of the same items excluded from Adjusted operating income, as well as financial income/(expenses) and tax income/(expenses) considered rare or discrete events that are infrequent in nature. For the six months ended June 30, 2021, Pro Forma Adjusted net profit includes the Adjusted net profit of FCA for the period January 1 - January 16, 2021. For the six months ended June 30, 2020, Pro Forma Adjusted net profit includes the Adjusted net profit of FCA for the period January 1 - June 30, 2020.
18









    We believe this non-GAAP measure is useful because it also excludes items that we do not believe are indicative of the Group’s ongoing operating performance and provides investors with a more meaningful comparison of the Group's ongoing operating performance.
    Refer to the section Group Results below for further discussion and for a reconciliation of this non-GAAP measure to Net profit from continuing operations, which is the most directly comparable measure included in our Semi-Annual Condensed Consolidated Income Statement. Adjusted net profit should not be considered as a substitute for Net profit from continuing operations, cash flow or other methods of analyzing our results as reported under IFRS.
    Adjusted diluted EPS: is calculated by adjusting Diluted earnings per share from continuing operations for the impact per share of the same items excluded from Adjusted net profit. For the six months ended June 30, 2021, the calculation of Pro Forma Adjusted diluted EPS includes the Net profit of FCA for the period January 1 - January 16, 2021. For the six months ended June 30, 2020, the calculation of Pro Forma Adjusted diluted EPS includes the Net profit of FCA for the period January 1 - June 30, 2020.
    We believe this non-GAAP measure is useful because it also excludes items that we do not believe are indicative of the Group’s ongoing operating performance and provides investors with a more meaningful comparison of the Group's ongoing quality of earnings.
    Refer to the section Group Results below for a reconciliation of this non-GAAP measure to Diluted earnings per share from continuing operations, which is the most directly comparable measure included in our Semi-Annual Condensed Consolidated Financial Statements. Adjusted diluted EPS should not be considered as a substitute for Basic earnings per share, Diluted earnings per share from continuing operations or other methods of analyzing our quality of earnings as reported under IFRS.
    Industrial free cash flows: is our key cash flow metric and is calculated as Cash flows from operating activities less: cash flows from operating activities from discontinued operations; cash flows from operating activities related to financial services, net of eliminations; investments in property, plant and equipment and intangible assets for industrial activities, contributions of equity to joint ventures and minor acquisitions of consolidated subsidiaries and equity method investments; adjusted for: net intercompany payments between continuing operations and discontinued operations, proceeds from disposal of assets and contributions to defined benefit pension plans, net of tax. For the six months ended June 30, 2021, Pro Forma Industrial free cash flows includes the Industrial free cash flows of FCA for the period January 1 - January 16, 2021. The timing of Industrial free cash flows may be affected by the timing of monetization of receivables and the payment of accounts payables, 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. In addition, Industrial free cash flows is one of the metrics used in the determination of the annual performance bonus for the Chief Executive Officer of the Group and other eligible employees, including members of the Top Executive Team.
    Refer to Liquidity and Capital Resources —Industrial free cash flows for further information and the reconciliation of this non-GAAP measure to Cash flows from operating activities, which is the most directly comparable measure included in our Semi-Annual Condensed Consolidated Statement of Cash Flows. Industrial free cash flows should not be considered as a substitute for Net profit from continuing operations, cash flow or other methods of analyzing our results as reported under IFRS.
Industrial net financial position is calculated as: Debt plus derivative financial liabilities related to industrial activities less (i) cash and cash equivalents, (ii) financial securities that are considered liquid, (iii) current financial receivables from the Group or its 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 Stellantis’ financial services entities are excluded from the computation of the Industrial net financial position. Industrial net financial position includes the Industrial net financial position classified as held for sale. We believe Industrial net financial position is useful in providing a measure of the Group’s net cash, considering cash and cash equivalents and financial securities. Due to different sources of cash flows used for the repayment of the financial debt between industrial activities and financial services (by cash from operations for industrial activities and by collection of financial receivables for financial services) and the different business structure and leverage implications, we provide a separate analysis of Net financial position between industrial activities and financial services. Refer to Liquidity and Capital Resources —Industrial net financial position for further information.
19









Group Results
    The following is a discussion of the Group's results of operations for the six months ended June 30, 2021 compared to the six months ended June 30, 2020, on both the IFRS and pro forma basis (refer to Pro Forma Basis of Preparation for additional information):
Pro Forma
Six months ended June 30,Six months ended June 30,
20212020(€ million)20212020
72,610 19,614 Net revenues75,310 51,668 
58,301 16,108 Cost of revenues60,565 45,155 
4,550 1,873 Selling, general and other costs4,740 4,342 
2,046 1,077 Research and development costs2,119 2,227 
203 Gains/(losses) on disposal of investments207 
371 43 Restructuring costs371 86 
7,344 716 Operating income/(loss)7,517 65 
217 (160)Net financial expenses/(income)229 91 
7,127 876 Profit/(loss) before taxes7,288 (26)
1,729 155 Tax expense1,757 936 
402 76 Share of the profit of equity method investees405 149 
5,800 797 Net profit/(loss) from continuing operations5,936 (813)
990 (421)Profit/(loss) from discontinued operations, net of tax990 (421)
6,790 376 Net profit/(loss)6,926 (1,234)
Net profit/(loss) attributable to:
6,780 595 
Owners of the parent
6,916 (1,015)
10 (219)
Non-controlling interests
10 (219)
Net profit from continuing operations attributable to:
5,790 800 
Owners of the parent
5,926 (810)
10 (3)
Non-controlling interests
10 (3)
Net profit from discontinued operations attributable to:
990 (205)
Owners of the parent
990 (205)
— (216)
Non-controlling interests
— (216)
Net revenues
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
72,610 19,614 270.2 %
Net revenues
75,310 51,668 45.8 %
See — Results by Segment below for a discussion of Net revenues on an IFRS and pro forma basis for each of our six reportable segments (North America, South America, Enlarged Europe, Middle East and Africa, China and India & Asia Pacific, and Maserati).
20









Cost of revenues
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
58,301 16,108 261.9 %
Cost of revenues
60,565 45,155 34.1 %
80.3 %82.1 %
Cost of revenues as % of Net revenues
80.4 %87.4 %
The increase in Cost of revenues during the six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with Cost of revenues of approximately €40 billion relating to the operations of the former FCA.
The increase in Pro Forma Cost of revenues during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to volume growth, improved vehicle line mix and cost inflation, partially offset by translation exchange impact.
Selling, general and other costs
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
4,550 1,873 142.9 %
Selling, general and other costs
4,740 4,342 9.2 %
6.3 %9.5 %
Selling, general and other costs as % of Net revenues
6.3 %8.4 %
The increase in Selling, general and other costs during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with Selling, general and other costs of approximately €2,400 million relating to the operations of the former FCA.
The increase in Pro Forma Selling, general and other costs during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to higher volumes and higher marketing spending as compared to the lower expense in 2020 from cancellations and retiming of advertising expense, as well as, cost-cutting initiatives in response to COVID-19.

21









Research and development costs
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
1,305 580 125.0 %
Research and development expenditures expensed
1,362 1,299 4.8 %
726 416 74.5 %
Amortization of capitalized development expenditures
742 552 34.4 %
15 81 (81.5)%
Impairment and write-off of capitalized development expenditures
15 376 (96.0)%
2,046 1,077 90.0 %
Total Research and development costs
2,119 2,227 (4.8)%

Pro Forma
Six months ended June 30,Six months ended June 30,
2021202020212020
1.8 %3.0 %
Research and development expenditures expensed as % of Net revenues
1.8 %2.5 %
1.0 %2.1 %
Amortization of capitalized development expenditures as % of Net revenues
1.0 %1.1 %
— %0.4 %
Impairment and write-off of capitalized development expenditures as % of Net revenues
— %0.7 %
2.8 %5.5 %
Total Research and development cost as % of Net revenues
2.8 %4.3 %
The increase in Research and development expenditures expensed during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the Merger, with Research and development expenditures expensed of approximately €800 million relating to the operations of the former FCA.
The increase in Pro Forma Research and development expenditures expensed during the six months ended June 30 2021, compared to the corresponding period in 2020, was primarily due to temporary cost cutting measures implemented in 2020 in response to the COVID-19 pandemic and increased research and development activity in connection with the acceleration of electrification and other initiatives in 2021 partially offset by the realization of synergies.
The increase in Amortization of capitalized development expenditures during six months ended June 30, 2021 compared to the corresponding period in 2020, is primarily related to the impact of the merger, with Amortization of capitalized development expenditures of approximately €270 million relating to the operations of the former FCA.
The increase in Pro Forma Amortization of capitalized development expenditures during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to new model launches primarily in North America.

22









    Total research and development expenditures during the six months ended June 30, 2021 and 2020 and total Pro Forma Research and development expenditures during the six months ended June 30, 2021 and 2020 were as follows:
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
1,484 538 175.8 %
Capitalized development expenditures(1)
1,563 1,590 (1.7)%
1,305 580 125.0 %
Research and development expenditures expensed
1,362 1,299 4.8 %
2,789 1,118 149.5 %
Total Research and development expenditures
2,925 2,889 1.2 %

53.2 %48.1 %
Capitalized development expenditures as % of Total Research and development expenditures
53.4 %55.0 %
3.8 %5.7 %
Total Research and development expenditures as % of Net revenues
3.9 %5.6 %
________________________________________________________________________________________________________________________________________________
(1) Does not include capitalized borrowing costs of €103 million and €18 million for the six months ended June 30, 2021 and 2020, respectively, and €110 million and €106 million for the six months ended June 30, 2021 and 2020, on a pro forma basis, respectively, in accordance with IAS 23 - Borrowing costs (Revised).
The increase in total Research and development expenditures during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with total Research and development expenditures of approximately €1,650 million relating to the operations of the former FCA.
Total Pro Forma Research and development expenditures during six months ended June 30, 2021, were substantially in line compared to the corresponding period in 2020 with temporary cost cutting measures implemented in 2020 in response to the COVID-19 pandemic and increased research and development activity in connection with the acceleration of electrification and other initiatives in 2021 being offset by the realization of synergies.
Net financial expenses/(income)
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
217 (160)(235.6)%
Net financial expenses/(income)
229 91 151.6 %
The increase in Net financial expenses during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with Net financial expenses of approximately €100 million relating to the operations of the former FCA. In the six months ended June 30, 2020, Interest income and other financial income for the six months ended June 30, 2020 include a benefit of €216 million resulting from the remeasurement of the financial liability recognized upon the commitment to repurchase 30.7 million Groupe PSA shares from Dongfeng Group in the context of the merger with FCA. Refer to Note 21 - Equity and to Note 4 - Net financial expenses within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information.
The increase in Pro Forma Net financial expenses during the six months ended June 30, 2021, compared to the corresponding period in 2020 is primarily due to the financial income of €216 million recognized in 2020 as explained above. Excluding this gain, Net financial expenses decreased by €78 million, compared to the corresponding period in 2020, primarily reflecting one-off gains on unwinding of hedges.
23










Tax (benefit)/expense
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
1,729 155 n.m.Tax (benefit)/expense1,757 936 87.7 %
24.3 %17.7 %
Effective tax rate
24.1 %(3,600.0)%
The effective tax rate was 24.3 percent and 17.7 percent for six months ended June 30, 2021, and 2020, respectively. The Pro Forma effective tax rate was 24.1 percent and (3,600.0) percent for six months ended June 30, 2021, and 2020, respectively.
The increase in the effective tax rate during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to the merger, including additional U.S. earnings taxed at the approximately 24 percent blended U.S. corporate and state statutory tax rate, in conjunction with losses in Italy and Brazil on which deferred tax assets are not recognized, as well as deferred tax asset adjustments in Germany and the UK related to the merger.
During the six months ended June 30, 2021 a portion of available deferred tax assets have been recognized, mainly in France, Germany and Spain, based on forecasted profitability which was separately established prior to the merger. The Group will continue to use this data to measure and assess our deferred tax asset recognition until there is sufficient evidence to support changes in our recognition position. During the second half of 2021 or early 2022, the Group expects to have additional information and there is a possibility that this may represent sufficient positive evidence to allow us to conclude that a significant portion of additional deferred tax assets may be recognized. Further deferred tax asset recognition would result in a tax benefit during the period in which the recognition is recorded. However, the exact timing and amount of the deferred tax asset recognition is subject to change on the basis of the level of profitability we are able to achieve and forecast, and are not known at this time.
The change in the Pro Forma effective tax rate during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to the non-repeat of deferred tax asset write-downs in Italy and Brazil of €549 million during the six months ended June 30, 2020, by FCA, offset by deferred tax asset adjustments in Germany and the UK during the six months ended June 30, 2021, along with the combination of increased profitability and tax expense primarily in the US and France, in conjunction with the favorable effective tax rate impact of lower current year losses on which deferred tax assets are not recognized, primarily in Italy and Brazil.
Share of the profit of equity method investees
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
402 76 428.9 %
Share of the profit of equity method investees
405 149 171.8 %
The increase in the Share of the profit of equity method investees during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with the Share of the profit of equity method investees of approximately €190 million relating to the operations of the former FCA.
The increase in the Pro Forma Share of the profit of equity method investees during six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily due to losses from the joint ventures in China recognized during the six months ended June 30, 2020 as well as, purchase accounting adjustments to write down certain investment balances to zero. In addition, the profits from the financial services joint ventures have improved.
24









Net profit/(loss) from continuing operations
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
5,800 797 627.7 %
Net profit/(loss) from continuing operations
5,936 (813)830.1 %
The increase in Net profit from continuing operations during six months ended June 30, 2021 compared to the corresponding period in 2020, primarily related to the impact of the merger, with Net profit from continuing operations of approximately €4.1 billion relating to the operations of the former FCA.
The increase in Pro Forma Net profit from continuing operations during the six months ended June 30, 2021, compared to the corresponding period in 2020, was primarily related to the improved operating performance and higher Share of the profit of equity method investees partially offset by increased net financial and tax expense.
Profit/(loss) from discontinued operations, net of tax
Pro Forma
Six months ended June 30,Increase/(Decrease)Six months ended June 30,Increase/(Decrease)
202120202021 vs. 2020(€ million)202120202021 vs. 2020
990 (421)335.2 %
Profit/(loss) from discontinued operations, net of tax
990 (421)335.2 %
For the six months ended June 30, 2020, loss from discontinued operations related to the results of Faurecia. Following the loss of control of Faurecia at the beginning of January 2021, a gain of €990 million has been recognized consisting of a gain of €515 million upon the classification of the investment in Faurecia as a financial asset and the subsequent remeasurement at fair value through profit and loss of €475 million. Refer to Note 2, Scope of consolidation, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information.
25









Adjusted operating income
Increase/(Decrease)
Six months ended June 30,2021 vs. 2020
(€ million)20212020% Actual
Pro Forma Adjusted operating income
8,622 752 n.m.
Pro Forma Adjusted operating income margin (%)
11.4 %1.5 %+990 bps
The following chart presents the change in Pro Forma Adjusted operating income by segment for the six months ended June 30, 2021 compared to the corresponding period in 2020.
https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-chart-3e25e8d40d4042f6902.jpg
    Refer to — Results by Segment below for a discussion of Pro Forma Adjusted operating income for each of our six reportable segments (North America, South America, Enlarged Europe, Middle East and Africa, China and India & Asia Pacific, and Maserati).




26









The following table is the reconciliation of Net profit from continuing operations, which is the most directly comparable measure included in the Semi-Annual Condensed Consolidated Income Statement, to Pro Forma Adjusted operating income:
(€ million)Six months ended June 30, 2021
Net profit from continuing operations
5,800 
Tax expense
1,729 
Net financial expenses
217 
Share of the profit of equity method investees(402)
Operating income
7,344 
Add: Operating income of FCA, January 1 - 16, 202177 
Add: Pro Forma adjustments96 
Pro Forma Operating income
7,517 
Adjustments:
Reversal of inventory fair value adjustment in purchase accounting522 
Restructuring and other costs, net of reversals541 
Impairment expense and supplier obligations21 
Brazilian indirect tax - reversal of liability/
recognition of credits
(222)
Other243 
Total Adjustments
1,105 
Pro Forma Adjusted operating income
8,622 
The following table is the reconciliation of Net profit from continuing operations, which is the most directly comparable measure included in the Semi-Annual Condensed Consolidated Income Statement, to Adjusted operating income:
(€ million)Six months ended June 30, 2021
Net profit from continuing operations
5,800 
Tax expense
1,729 
Net financial expenses
217 
Share of the profit of equity method investees(402)
Operating income
7,344 
Adjustments:
Reversal of inventory fair value adjustment in purchase accounting522 
Restructuring and other costs, net of reversals541 
Impairment expense and supplier obligations21 
Brazilian indirect tax - reversal of liability/
recognition of credits
(222)
Other243 
Total adjustments January 1 - June 30, 2021
1,105 
Less: adjustments January 1- 16, 202111 
Adjusted operating income
8,438 





27










The following table is the reconciliation of Net profit from continuing operations, which is the most directly comparable measure included in the Semi-Annual Condensed Consolidated Income Statement, to Pro Forma Adjusted operating income:
(€ million)Six months ended June 30, 2020
Net profit from continuing operations
797 
Tax expense
155 
Net financial income
(160)
Share of the profit of equity method investees(76)
Add: Operating loss of FCA, January 1 - June 30, 2020(1,675)
Add: Pro Forma adjustments1,024 
Pro Forma Operating income
65 
Adjustments:
Impairment expense and supplier obligations771 
Restructuring costs, net of reversals87 
Gains on disposal of investments
(241)
Other
70 
Total Adjustments
687 
Pro Forma Adjusted operating income
752 

During the six months ended June 30, 2021, Pro Forma Adjusted operating income excluded adjustments primarily related to:
€522 million of reversal of fair value adjustment recognized in purchase accounting on FCA inventories;
€541 million of restructuring and other costs related to the reorganization of operations and the dealer network primarily in Enlarged Europe;
€222 million benefit related to final decision of Brazilian Supreme Court on calculation of state value added tax, resulting in the recognition of €73 million in Net revenues and €149 million in Selling, general and other costs. Refer to Note 9, Other assets and prepaid expenses, within the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this report for additional information; and
€243 million of other costs primarily related to the completion of merger and integration activities.
During the six months ended June 30, 2021, Adjusted operating income excluded the same adjustments excluded for Pro Forma Adjusted operating income, as well as, adjustments for the period January 1 - 16, 2021, which were primarily costs related to the merger.
During the six months ended June 30, 2020, Pro Forma Adjusted operating income excluded adjustments primarily related to:
€87 million of restructuring costs, primarily related to South America, Enlarged Europe and North America;
€771 million primarily relating to impairment expense in North America, South America, Enlarged Europe, China and India & Asia Pacific and Maserati due to reduced volume expectations primarily as a result of the estimated impacts of COVID, as well as, for certain assets in Maserati;
28









€241 million relating to the gain on disposal of investment, primarily related to the disposal of Changan PSA Auto Company Ltd (“CAPSA”), which was a joint venture in China; and
€70 million of other costs primarily related to the merger.
Adjusted net profit
Six months ended June 30,Increase/(Decrease)
(€ million) 202120202021 vs. 2020
Pro Forma Adjusted net profit 6,895 361 n.m.
The following table summarizes the reconciliation of Net profit from continuing operations, which is the most directly comparable measure included in the Semi-Annual Condensed Consolidated Income Statement, to Pro Forma Adjusted net profit:
(€ million)Six months ended June 30, 2021
Net profit from continuing operations
5,800 
Add: Net profit from continuing operations of FCA, January 1 - 16, 202130 
Add: Pro Forma adjustments106 
Adjustments (as above)1,105 
Tax impact on adjustments(241)
Derecognition of deferred tax assets95 
Total adjustments, net of taxes959 
Pro Forma Adjusted net profit
6,895 
(€ million)Six months ended June 30, 2020
Net profit from continuing operations
797 
Add: Net loss from continuing operations of FCA, January 1 - June 30, 2020(2,742)
Add: Pro Forma adjustments1,132 
Adjustments (as above)687 
Tax impact on adjustments(62)
Net derecognition of deferred tax assets and other tax adjustments549 
Total adjustments, net of taxes1,174 
Pro Forma Adjusted net profit
361 

During the six months ended June 30, 2021, Pro Forma Adjusted net profit excluded adjustments related to:
€241 million reflecting the tax impact on the items excluded from Adjusted operating income above; and
€95 million due to the derecognition of deferred tax assets
    During the six months ended June 30, 2020 Pro Forma Adjusted net profit excluded adjustments related to:
€62 million reflecting the tax impact on the items excluded from Adjusted operating income above; and
€549 million loss from write-down of deferred tax assets in Italy and Brazil related to the former FCA as it reviewed its business and operations to take into consideration the potential impacts and effects of the COVID-19 pandemic, including the estimated impact on economic and market outlook.
29









Adjusted diluted earnings per share
Six months ended June 30,Increase/(Decrease)
(€ per share) 202120202021 vs. 2020
Pro Forma Adjusted diluted earnings per share2.15 0.12 n.m.
    The following table summarizes the reconciliation of Pro Forma Diluted earnings per share from continuing operations to Pro Forma Adjusted diluted earnings per share.
Refer to the section Pro Forma Earnings per share above for additional information for the reconciliation of Diluted earnings per share from continuing operations, which is the most directly comparable measure included in the Semi-Annual Condensed Consolidated Financial Statements, to Pro Forma Diluted earnings per share:
(€ per share except otherwise noted)Six months ended June 30, 2021
Pro Forma Diluted earnings per share from continuing operations ("Diluted EPS") 1.85 
Impact of adjustments above, net of taxes, on Diluted earnings per share from continuing operations0.30 
Pro Forma Adjusted diluted EPS 2.15 
(€ per share except otherwise noted)Six months ended June 30, 2020
Pro Forma Diluted earnings per share from continuing operations ("Diluted EPS") (0.26)
Impact of adjustments above, net of taxes, on Diluted earnings per share from continuing operations0.38 
Pro Forma Adjusted diluted EPS0.12 
30









Results by Segment
The following are the results by segment Pro Forma for the six months ended June 30, 2021 and 2020:
Pro Forma
Net revenuesAdjusted operating incomeConsolidated Shipments
Six months ended June 30,
(€ million, except shipments which are in thousands of units)202120202021202020212020
North America32,447 22,841 5,236 876 873 697 
South America
4,936 2,192 326 (63)424 186 
Enlarged Europe
32,040 22,683 2,829 194 1,664 1,181 
Middle East and Africa2,547 1,757 247 43 138 93 
China and India & Asia Pacific
1,883 1,200 206 67 61 36 
Maserati885 445 29 (104)11 
Other activities1,422 1,099 (335)(262)— — 
Unallocated items & eliminations(1)
(850)(549)84 — — 
Total75,310 51,668 8,622 752 3,171 2,198 
________________________________________________________________________________________________________________________________________________
(1) Primarily includes intercompany transactions which are eliminated on consolidation
The following are the market shares by segment for the six months ended June 30, 2021 and 2020. The market share information below includes both FCA and PSA for the six months ended June 30, 2020.
Market share(1)
Six months ended June 30,
20212020
North America
10.9 %11.9 %
South America
23.6 %17.4 %
Enlarged Europe
20.4 %19.6 %
Middle East and Africa11.9 %11.6 %
India & Asia Pacific0.8 %0.7 %
China0.5 %0.6 %
Maserati
2.1 %1.8 %
________________________________________________________________________________________________________________________________________________
(1) Industry and market share information is derived from third-party industry sources (e.g. European Automobile Manufacturers Association (ACEA), Ward’s Automotive, Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA)) and internal information.
• Represents PC and LCVs, except as noted below
• India & Asia Pacific reflects aggregate for major markets where Group competes (Japan (PC), India(PC), South Korea (PC + Pickups), Australia and South East Asia)
• Middle East and Africa exclude Iran, Sudan and Syria
• Maserati market share and industry information is derived from IHS data, Maserati competitive segment and internal information.

Refer to Note 23, Segment reporting included elsewhere in this Semi-Annual report for additional detail on the Group’s reportable segments.
The following is a discussion of IFRS and Pro Forma Net revenues and shipments and Pro Forma Adjusted operating income for each of our six reportable segments for the six months ended June 30, 2021 as compared to the six months ended June 30, 2020. We review changes in our results of operations with the following operational drivers:
Operating environment
Industry & Market Mix: reflects changes in volumes of products sold to customers driven by industry volumes and market mix. Reflects also the gap between production and shipment (fixed manufacturing costs absorption).
31









Performance
Vehicle Net Price & Content: reflects changes in net prices including discounts and incentives and related to new product content, option take rates. Includes also channel and trim mix;
Vehicle Line Mix: reflects the changes in nameplate mix;
Market Share & Market Mix: reflects changes of market share and market mix on new vehicle business;
Industrial: reflects manufacturing, logistics and purchasing efficiencies and inefficiencies, as well as changes to costs of raw materials. Warranty and compliance costs are also included here;
SG&A: primarily includes costs for advertising and promotional activities, purchased services, information technology and administrative costs and other costs not directly related to the development and manufacturing of Stellantis products;
R&D: includes research and development costs;
FX and Other: includes other items not mentioned above, such as used cars, parts & services, sales to other partners, owned dealer network, royalties, the difference between shipments and sales, as well as foreign currency exchange translation, transaction and hedging.

32









North America
Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
817 n.m.
Shipments (thousands of units)
873 697 25.3 %
30,426 45 n.m.
Net revenues (€ million)
32,447 22,841 42.1 %
4,983 n.a.n.a.
Adjusted operating income (€ million)
5,236 876 497.7 %
Adjusted operating income margin (%)
16.1 %3.8 %+1230 bps
____________________________________________________________________________________________________________________________
n.m. = not meaningful
n.a. = not applicable
Six Months Ended June 30, 2021
The Group's market share(1) in North America of 10.9 percent for the six months ended June 30, 2021 reflected a decrease of 100 bps from 11.9 percent in the same period in 2020. The U.S. market share(1) of 11.2 percent reflected a decrease of 110 bps from 12.3 percent in the same period in 2020.
Shipments
The increase in North America Pro Forma shipments in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to COVID interrupted six months ended June 30, 2020 and discontinuation of Dodge Grand Caravan and Journey in the last six months of 2020.
Net revenues
The increase in North America Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was almost entirely due to the contribution of FCA operations following the merger.
The increase in North America Pro Forma Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to increased volumes, favorable vehicle and market mix, as well as strong net pricing, partially offset by unfavorable foreign translation effects.




















________________________________________________________________________________________________________________________________________________
(1) 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 European Automobile Manufacturers Association (ACEA), Ward’s Automotive, Associação Nacional dos Fabricantes de Veículos Automotores

33









Adjusted operating income
    The following chart reflects the change in North America Pro Forma Adjusted operating income by operational driver for the six months ended June 30, 2021 compared to the same period in 2020.
https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-chart-6dd68171eace49afb4c.jpg
The increase in North America Pro Forma Adjusted operating income in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher Net revenues, partially offset by increased costs as business normalized compared to COVID interrupted six months ended June 30, 2020.

34









South America
Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
405 33 n.m.
Shipments (thousands of units)
424 186 128.0 %
4,751 479 891.9 %
Net revenues (€ million)
4,936 2,192 125.2 %
317 n.a.n.a.
Adjusted operating income (€ million)
326 (63)617.5 %
Adjusted operating income margin (%)
6.6 %(2.9)%+950 bps
________________________________________________________________________________________________________________________________________________
n.a. = not applicable
Six Months Ended June 30, 2021
The Group's market share(1) in South America increased 620 bps to 23.6 percent for the six months ended June 30, 2021 from 17.4 percent in the same period in 2020. The Group's market share in Brazil and Argentina for the six months ended June 30, 2021 increased 1,070 bps to 31.6 percent from 20.9 percent and increased 260 bps to 27.7 percent from 25.1 percent, respectively, compared to the corresponding period in 2020.
Shipments
    The increase in South America Pro Forma shipments in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to reduced COVID interruptions and success of all-new Fiat Strada, as well as mid-cycle refreshes of Fiat Toro and Jeep Compass.

Net revenues
The increase in South America Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the contribution of FCA operations following the merger.
The increase in South America Pro Forma Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to increased volumes, higher net pricing and improved vehicle mix, partially offset by negative foreign exchange translation effects, mainly from Brazilian real.
























_______________________________________________________________________________________________________________________________________________
(1) 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 European Automobile Manufacturers Association (ACEA), Ward’s Automotive, Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA)
35









Adjusted operating income
    The following chart reflects the change in South America Pro Forma Adjusted operating income by operational driver for the six months ended June 30, 2021 compared to the same period in 2020.
https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-chart-c7a334c04a06407e875.jpg

The increase in South America Pro Forma Adjusted operating income in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher Net revenues, partially offset by product cost inflation and unfavorable foreign exchange translation and transaction effects.

36









Enlarged Europe
Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
1,651 891 85.3 %
Shipments (thousands of units)
1,664 1,181 40.9 %
31,708 17,623 79.9 %
Net revenues (€ million)
32,040 22,683 41.3 %
2,878 n.a.n.a.
Adjusted operating income (€ million)
2,829 194 n.m.
Adjusted operating income margin (%)
8.8 %0.9 %+790 bps
________________________________________________________________________________________________________________________________________________
n.m. = not meaningful
n.a. = not applicable

Six Months Ended June 30, 2021
The Group's market share(1) in the Enlarged Europe for the six months ended June 30, 2021, increased 80 bps to 23.1 percent from 22.3 percent in the same period in 2020.
Shipments
    The increase in Enlarged Europe Pro Forma shipments in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to COVID interrupted six months ended June 30, 2020 and increased volumes of Peugeot 2008, all-new Citroën C4, all-new Opel Mokka and all-new Fiat 500e.

Net revenues

The increase in Enlarged Europe Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the contribution of FCA operations following the merger.
The increase in Enlarged Europe Pro Forma Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher volumes, improved vehicle mix, positive net pricing, and increased parts and services business, as well as used car business.






















_______________________________________________________________________________________________________________________________________________
(1) EU30 = EU27 (excluding Malta) + Iceland + Norway+ Switzerland + UK. 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 European Automobile Manufacturers Association (ACEA), Ward’s Automotive, Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA)
37









Adjusted operating income
    The following chart reflects the change in Enlarged Europe Pro Forma Adjusted operating income by operational driver for the six months ended June 30, 2021 compared to the same period in 2020.
https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-chart-8216c99dbcb84bb7adf.jpg
The increase in Enlarged Europe Pro Forma Adjusted operating income in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher Net Revenues, purchasing and manufacturing efficiencies, as well as reduced compliance costs, partially offset by increased advertising costs and labor due to prior period COVID measures as compared to 2021.

38









Middle East and Africa

Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
198 71 178.9 %
Combined shipments (thousands of units)
200 130 53.8 %
137 71 93.0 %
Consolidated shipments (thousands of units)
138 93 48.4 %
2,511 1,096 129.1 %
Net revenues (€ million)
2,547 1,757 45.0 %
256 n.a.n.a.
Adjusted operating income (€ million)
247 43 474.4 %
Adjusted operating income margin (%)
9.7 %2.4 %+730 bps
________________________________________________________________________________________________________________________________________________
n.a. = not applicable

Six Months Ended June 30, 2021
The Group's market share(1) in the Middle East and Africa for the six months ended June 30, 2021, increased 30 bps to 11.9 percent from 11.6 percent in the same period in 2020.

Shipments
The increase in Middle East and Africa Pro Forma consolidated shipments in the six months ended June 30, 2021 compared to the same period in 2020 was primarily driven by COVID interrupted six months ended June 30, 2020 and higher volumes of Peugeot 208 and 3008, Opel Corsa and Jeep Wrangler.

Net revenues
The increase in Middle East and Africa Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the contribution of FCA operations following the merger.
The increase in Middle East and Africa Pro Forma Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to increased volumes, higher net pricing, including pricing actions for the Turkish lira devaluation, and improved market mix, partially offset by negative foreign exchange translation effects, mainly from Turkish lira.
39









Adjusted operating income
    The following chart reflects the change in Middle East and Africa Pro Forma Adjusted operating income by operational driver for the six months ended June 30, 2021 compared to the same period in 2020.
https://cdn.kscope.io/ec282edbed4fd45b9abbf7879123970f-chart-825b777c9a3d470dbf4.jpg
The increase in Middle East and Africa Pro Forma Adjusted operating income in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to improved Net revenues, partially offset by negative foreign exchange translation effects, primarily from the Turkish lira.
















_______________________________________________________________________________________________________________________________________________
(1) 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 European Automobile Manufacturers Association (ACEA), Ward’s Automotive, Associação Nacional dos Fabricantes de Veículos Automotores.
40









China and India & Asia Pacific
Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
99 34 191.2 %
Combined shipments (thousands of units)
102 75 36.0 %
59 12 391.7 %
Consolidated shipments (thousands of units)
61 36 69.4 %
1,830 334 447.9 %
Net revenues (€ million)
1,883 1,200 56.9 %
208 n.a.n.a.
Adjusted operating income (€ million)
206 67 207.5 %
Adjusted operating income margin (%)
10.9 %5.6 %+530 bps
________________________________________________________________________________________________________________________________________________
n.m. = not meaningful
n.a. = not applicable    
We locally produce and distribute the Jeep Cherokee, Renegade, Compass, Grand Commander and Commander PHEV through the 50% owned GAC Fiat Chrysler Automobiles Co (“GAC FCA JV”). We also locally manufacture vehicles under the Dongfeng Peugeot and Dongfeng Citroën brands in China through the 50% owned Dongfeng Peugeot Citroën Automobile joint venture (“DPCA JV”), based in Wuhan, China. The Dongfeng Peugeot Citroën Automobile Sales Co (“DPCS”), markets the vehicles produced by DPCA in China. The results of these joint ventures are accounted for using the equity method, with recognition of our share of the net income of the joint venture in the line item “Share of the profit of equity method investees” within the Consolidated Income Statement. We also produce the Jeep Compass through our joint operation with Fiat India Automobiles Private Limited (“FIAPL”) and we recognize our related interest in the joint operation on a line by line basis. Until June 2020, vehicles under the DS brand have been manufactured and marketed in China through CAPSA a 50% joint venture between PSA and the Changan group. Upon the sale of the 50 percent stake by PSA in June 2020, CAPSA will continue to manufacture DS vehicles for the Group.
Shipments distributed by our consolidated subsidiaries, which include vehicles produced by FIAPL, are reported in both consolidated and combined shipments. Shipments of the GAC FCA JV and DPCA JV are not included in consolidated shipments and are only in combined shipments.
Six Months Ended June 30, 2021
Shipments
The increase in China and India & Asia Pacific Pro Forma combined and consolidated shipments in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the industry recovery.

Net revenues
The increase in China and India & Asia Pacific Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to the contribution of FCA operations following the merger.
The increase in China and India & Asia Pacific Pro Forma Net revenues in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to overall higher volumes and favorable market mix and net pricing.
Adjusted operating income
The increase in China and India & Asia Pacific Pro Forma Adjusted operating income in the six months ended June 30, 2021 compared to the same period in 2020 was primarily due to higher Net revenues, partially offset by increased advertising costs that were impacted by cost containment measures in 2020 due to COVID-19.

41









Maserati
Pro Forma
Six months ended June 30,
Increase/(Decrease)
Six months ended June 30,
Increase/(Decrease)
202120202021 vs. 2020202120202021 vs. 2020
10.8 — n.m.
Shipments (thousands of units)
10.8 5.1 111.8 %
867 — n.m.
Net revenues (€ million)
885 445 98.9 %
42 n.a.n.a.
Adjusted operating income (€ million)
29