Investor Presentation
FY 2014
March 2015 Disclaimer
By opening this presentation and/or attending the meeting where this presentation is made, you agree to be bound by the following limitations.
This presentation is for information purposes only and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of FCA Bank S.p.A. or any of its subsidiaries (together, FCA Bank), nor should this presentation or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. If any offer for any such securities is made, it will be done so pursuant to separate and distinct documentation in the form of a prospectus or offering circular and such other documentation as may be required for the purposes of such an offer and any decision to purchase or subscribe for any securities pursuant to such offer should be made solely on the basis of such prospectus, offering circular or other documentation and not this presentation. This presentation does not constitute a recommendation regarding any securities of FCA Bank
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The information set out in this presentation may be subject to updating, revision, verification and amendment and such information may change materially. FCA Bank is under no obligation to update or keep current the information contained in this document and any opinion expressed herein is subject to change without notice. None of FCA Bank S.p.A. nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection with this presentation.
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This document is for distribution in Italy only to "qualified investors" (investitori qualificati ), as defined pursuant to Article 100, paragraph 1(a), of Legislative Decree no. 58 of 24 February 1998, as amended and restated from time to time (the Financial Services Act), and as defined in Article 34-ter , paragraph 1(b) of CONSOB Regulation no. 11971 of 14 May 1999, as amended and restated from time to time (the CONSOB Regulation), or in other circumstances provided under Article 100 of the Financial Services Act and Article 34-ter , CONSOB Regulation, where exemptions from the requirement to publish a prospectus pursuant to Article 94 of the Financial Services Act are provided.
These materials may contain projections and forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause FCA Bank's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding FCA Bank's present and future business strategies and the environment in which FCA Bank will operate in the future. Further, any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. Any such forward-looking statements in these materials will speak only as at the date of these materials and FCA Bank assumes no obligation to update or provide any additional information in relation to such forward-looking statements.
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Investor Presentation March 2015 2 FCA Bank: a JV between Crédit Agricole and FCA
50 / 50 Joint Venture between Fiat Chrysler Automobiles and Crédit Agricole
Long-Term Partnership initially signed in December 2006 and extended until December 2021, at least
A unique business model, combining commercial effectiveness of an industrial partner, with risk discipline and financial strength of a banking partner
Investor Presentation March 2015 3 FCA Bank – Overview
FCA Bank is one of the largest specialized car finance and lease companies operating in Europe, diversified across products, geographies and brands
FCA Bank provides retail, dealer and rental financial services in Europe to the brands of:
FCA - Alfa Romeo, Chrysler, Fiat, Fiat Professional, Jeep, Lancia and Abarth Maserati Jaguar and Land Rover
FCA Bank is regulated as a bank by the Bank of Italy under the Italian Banking Act (formerly was regulated as a financial institution)
BBB- Long-term / F3 Short-term by FITCH (Stable Outlook) Baa3 Long-term / P-3 Short-term by MOODY’S RATINGS (Rating placed under review for possible upgrade on 17 th March 2015) BB+ Long-term / B Short-term by STANDARD&POOR’S (Stable Outlook)
Investor Presentation March 2015 4 FCA Bank Group - History
Renewal of JV Agreement between Fiat Group with Maserati Automobiles (now and creation of FCA Italy) and Maserati FS Crédit Agricole Consumer Finance
JV between Fiat Partnership Partnership with Renewal of Auto SpA & with Jaguar Chrysler for the Partnership with Creation of Crédit Agricole Land Rover in brands Chrysler, Jaguar Land Rover FCA Bank Consumer 9 European Jeep and Dodge in 8 European Finance countries in Europe countries
Investor Presentation March 2015 5 FCA Bank The Transformation Announcement
FCA Italy S.p.A. and CA Consumer Finance S.A. announced on January 15 th 2015 the creation of FCA Bank S.p.A. which, following receipt of its banking license in Italy, becomes the parent company of an international banking group with operations in 16 European countries.
The creation of FCA Bank is a major milestone in the strategic development of the business that began some 90 years ago with the establishment of SAVA in Turin in 1925. Building on the existing model, FCA Bank will continue to support the sales activities of its co- operating brands through the offer of vehicle financing to customers and dealers, in addition to insurance solutions and long-term fleet lease programs. The new status as a bank will further enhance the Company’s reputation, will allow it to offer customers even more attractive products, and will be an opportunity for a further diversification of the funding sources / access to bank specific funding The bank will be strengthened by the compliance with capital and regulatory ratios The JV corporate governance will also be further reinforced (with 2 independent board members and governing bodies in line with Bank of Italy requirements), although the model is unvaried, having proven its effectiveness during the last 8 years.
Investor PresentationMarch 2015 6 JV Corporate Governance Overview
The JV agreement was renewed in 2013 - effective January 2015 - for 7 years, hence up to 31st December 2021; such renewal confirms a relationship on a 15-year time horizon at least, which demonstrates the strategic relevance of the JV for Fiat Chrysler Automobiles and Crédit Agricole Board of Directors members increased from 8 to 10, of which 2 independent Chairman: appointed by CACF Chief Executive Officer & General Manager: appointed by FCA Chief Financial Officer & Deputy General Manager: appointed by CACF
Corporate governance model, now including the following bodies (also in compliance with Bank of Italy requirements):
Advisory Board Finance and Control Committee Board Executive Credit Committee Internal Control Committee Credit Committee Risk and Audit Committee
Investor Presentation March 2015 7 FCA Bank Group – Business Overview Multi-Brand and Multi-Business
3 Business lines Dealer Financing
10 Brands OEM Dealer Networks Outstanding (avg.): 3.5 €/Bn 26 Legal entities 24% of avg. outstanding assets
1,920 Employees Retail Financing Private customers 16 Countries Channel: Dealership Outstanding (avg.): 9.9 €/Bn 67% of avg. outstanding assets
Rental Corporate customers Channel: Dealership/Direct Outstanding (avg.): 1.3 €/Bn 9% of avg. outstanding assets Figures as at 31/12/2014
Investor Presentation March 2015 8 Average Outstanding Overview
16.4 FCA & MASERATI JLR 15.8 15.5 15.5 14.6 1.3 14.9 14.6 14.7 0.4 1.9 ~18% 2.3 2.9 2.7
15.5 15.1 15.1 14.6 13.9 ~ 82% 12.6 11.7 12.0
2007 2008 2009 2010 2011 2012 2013 2014
Positive automotive market trend – EU monthly passenger car registrations Others Spain 11% increasing for 18 consecutive months (FCA +3.4% yoy, JLR +6.4% yoy) (1) 4% France FCA Bank continuing to pursue opportunities, by exploring new commercial 8% Italy agreements and brand diversification 41% FY 2014 UK Overall business increasing (penetration rate on the cooperating brands: 17% FCA 43%, JLR 34%, Maserati 24%) Germany (1) Source: European Automobile Manufacturers Association, 17 March 2015 20%
Investor Presentation March 2015 9 Average Outstanding Overview
Overview per Year (€/Bn)
15.5 15.5 16.4 15.8 14.6 14.9 14.6 14.7 1.7 1.5 1.6 2.1 1.9 1.3 1.3 1.3 3.7 3.8 3.8 3.8 3.6 3.8 3.7 3.5 Rental Dealer Financing 10.9 9.2 9.6 10.0 10.6 9.8 9.5 9.9 Retail
2007 2008 2009 2010 2011 2012 2013 2014
5 Major Markets – All Brands (€/Bn) 3 Business lines managed by a single 4 structure, exploiting commercial and FY 2014 3 operational synergies
2 5 major markets accounting for almost 90%
1 of total assets
0 Outstanding mix, evenly distributed Italy Germany UK France Spain throughout the years
Retail Financing Dealer Financing Rental
Investor Presentation March 2015 10 2013 Capitalization
2007 2008 2009 2010 2011 2012 2013 2014 Avg. Managed Outstanding (€/Bn) 14.6 15.5 15.5 16.4 15.8 14.9 14.6 14.7
11.7% 200 10.6% 11.0% 9.2% 8.8% 182 8.2% 8.0% 172 150 7.2% 167 147 153 137 100 119 Core Tier 1 105
50
Net Profit (€/M) 0 High quality of capital (common equity only) FCA Bank subsidiaries not needing additional capital FCA Bank regulated legal entities well above Minimum Capital Requirements "MCR"
Investor Presentation March 2015 11 Key Financial Indicators
Net Banking Income (€/M) & Percentage Cost / Income Ratio (%) on Average Outstanding
700 6.00% 46.4% 0.025 596 609 608 0 576 587 566 0.023 600 536 43.0% 42.9% 517 5.00% 0 40.1% 0.021 39.0% 38.6% 39.4% 39.9% 500 4.08% 4.03% 3.71% 3.86% 3.84% 0 0.019 3.53% 3.46% 3.65% 4.00% 400 0.017 0 0.015 3.00% 300 0 0.013 2.00% 0.011 200 0 0.009 100 1.00% 0 0.007 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 Net Banking Income NBI / Average Outstanding
Pre-Tax Income (€/M) & Percentage on Net Profit (€/M) & Percentage on Average Average Outstanding 300 2.50% 200 182 2.50% 257 257 Outstanding 172 248 180 167 250 229 147 153 213 160 137 190 189 1.72% 1.74% 2.00% 2.00% 200 184 1.70% 140 119 1.45% 120 105 1.30% 150 1.30% 1.22% 1.18% 1.50% 100 1.24% 1.50% 80 1.12% 1.18% 0.97% 100 60 0.88% 0.90% 1.00% 0.81% 0.67% 1.00% 50 40 20 0 0.50% 0 0.50% 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014 Pre-Tax Income Pre-Tax Income / Average Outstanding Net Profit Net income / Average Outstanding
Investor Presentation March 2015 12 Credit Risk Performance
Cost of Risk (€/M) & Ratio on Average Total Provision Funds (€/M) & Outstanding Provision Funds / Outstanding (%)
450 424 428 400 374 160 145 145 144 338 1.40%350 330 140 302 315 117 116 1.20%300 120 109 255 0.93% 0.89% 0.91% 1.00% 100 250 87 0.75% 0.78% 0.75% 83 0.80%200 80 0.60% 0.57% 60 0.60%150 2.6% 2.7% 0.40%100 2.3% 2.3% 2.2% 2.0% 40 1.6% 2.0% 20 0.20% 50 0 0.00% 0 2007 2008 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 2014
Provisions Cost of Risk / Average Outstanding Provision Funds Provision Funds / Outstanding
Cost of Risk ratio resilient despite difficult market conditions Decreasing level of doubtful receivables on total outstanding
Investor PresentationMarch 2015 13 Historical Funding Sources Evolution
16,000
14,000
12,000
10,000 Bonds 8,000 CA Group TP Banks 6,000 Securitizations
4,000
2,000
(€/M) 0 2007 2008 2009 2010 2011 2012 2013 2014
Investor Presentation March 2015 14 FCA Bank – Highlights
Transformation into a bank pointing to new opportunities in financial services offer and in funding instruments Bank‘s mission unvaried: supporting the co-operating brands’ sales whilst guaranteeing long-term return on shareholders’ investment Strategic development continues to be based on two pillars: organic growth and diversification Net Profit reaching an unprecedented record of EUR 182 M in 2014 Group Core Tier 1 increasing to 11.7% Cost of risk increasing performance in all business lines Strong liquidity position enhanced in 2014 by further diversification on secured and unsecured capital markets, with cost of funding well under control:
EUR 2.250 M Bond issuances under the EMTN Programme CHF 125 M domestic issuance EUR 550 M German Syndicated Facility EUR 920 M Italian ABS (A-BEST 9 and A-BEST 10)
Investor Presentation March 2015 15 Contacts
FCA Bank SpA
Giacomo Carelli CEO and General Manager [email protected] Franco Casiraghi CFO and Deputy General Manager [email protected] Riccardo Mesturino Treasurer [email protected] Wiebke Wortmann Capital Markets [email protected] Antonella Baroncelli Investor Relations [email protected]
Bloomberg
Ticker: 2865431ZIM
Website
www.fcabankgroup.com
Investor Presentation March 2015 16