chrysler q3 2011 presentation
TRANSCRIPT
-
8/2/2019 Chrysler Q3 2011 Presentation
1/33
Q32011
ResultsReview(U.S.GAAP Preliminary)
October28,2011
TheAmericancontribution
toglobal
carco
-
8/2/2019 Chrysler Q3 2011 Presentation
2/33
1October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
ForwardLookingStatement
T h i s d o cu m e nt c o nt a in s f or w ar d looking
s ta te m en ts t ha t r ef l ec t m an ag em en t' s
c ur re nt v ie ws w it h re sp ec t t o f ut ure
events. The words anticipate, assume,b elieve, est ima te, exp ec t , in t en d ,
ma y, pl an , pr oj ec t, sh ou ld a nd
s im il ar e xp re ss io ns i de nt if y f or wa rd
l o o ki n g s t at e me n ts . S u ch s t at e me n ts a r e
subject to r isks and uncertainties,
in c lu d in g , b u t n ot l imit ed t o: t h e effec t iveimp lemen t a t ion of t h e Ch rys ler Grou p LLC
2 01 0 2 01 4 B us in es s P la n o ut li ne d o n
N ov em be r 4 , 2 0 09 , i n cl ud in g s uc ce s sf ul
v eh ic l e l a un ch e s; i n du st ry S AA R l e ve l s;
c on tin u ed ec on omic w ea kn es s , es p ec ial ly
in North America, including continued highunemployment levels and limited available
fin a n c in g for ou r d ea lers a n d c on s u mers ;
i n tr o du c ti o n o f c o mp e ti n g p r od u ct s a n d
c omp etit ive p res s u res w h ic h ma y l imit ou r
a b il i t y t o r e du c e s a l es i n ce n ti v e s; s u pp l y
disruptions resulting from natural
d i s a s t e r s a n d o t h e r e v e n t s i m p a c t i n g o u r
s up pl y c ha in ; a nd o ur a bi l it y t o r ea l iz eb en efit s from ou r in d u s t r ia l a l l ia n c e w it h
F iat . I f a ny o f t he se o r o th er r is ks a nd
u n c ert a in t ies oc c u r, or i f t h e a s s u mp t ion s
u n d erlyin g a n y of t h es e s t a t emen t s p rove
i nc or re ct , t he n a ct ua l r es ul ts m ay b e
ma t eria l ly d ifferen t from t h os e ex p res s edor imp lied b y s u c h s t a t emen t s . We d o n ot
intend or assume any obligation to update
a ny f or wa rd l oo ki ng s ta te me nt , w hi ch
s p e a k s o n l y a s o f t h e d a t e o n w h i c h i t i s
m ad e. F ur th er d et ai l s o f p ot en ti a l r i sk s
that may affect Chrysler Group ared es cr ib ed i n C hr ys le r G ro up s F or m 1 0
fi led w it h t h e U.S. Sec u rit ies a n d Ex c h a n ge
Commission.
-
8/2/2019 Chrysler Q3 2011 Presentation
3/33
2October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Agenda
FinancialandSalesSummary
BusinessandProductUpdate
Appendix
ExecutiveSummary
Highlights
-
8/2/2019 Chrysler Q3 2011 Presentation
4/33
3October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Q32011FinancialHighlights
NetResult($M)
(84)
212
Net
Industrial
Debt ($B)2.1
2.9
Cash($B)
9.510.2
NetRevenue($B)
ModifiedOperatingProfit($M)
ModifiedEBITDA
($M)
Growthprimarilydrivenbyincreasedvolumesandpositivepricingandmix
(includingpositiveeffectoflower
fleetmix)
Worldwide
shipments
up
15%
to
469kunits (467kshipments
adjustedforGDPunits)
ModifiedOperatingProfitmorethandoubletheprioryear
Improvedperformance
primarily
attributabletoincreasedvolumes
andpositivepricingandmix,
partiallyoffsetbyincreased
advertisingandindustrialcosts
Decreaseprimarilyduetoseasonalworkingcapitalfluctuationsandincreasedcapitalexpenditures
11.0
13.1
239
483
937
1,119
Q32011reflectsanearly$300millionincreaseinnetincomeovertheprior
year
RepresentsthelargestquarterlynetincomesincetheCompanybegan
operationsQ310 Q311
Q310 Q311
Q310 Q311
Q310 Q311 Jun30,11 Sept30,11
Jun30,11 Sept30,11
Anincreaseof19%versusprioryeardrivenbyhighervolumesanda
continuedpositivetrendinmargins
+19%
3.7%
Margin
NetIndustrialDebtat$2.9B
IncreaseprimarilyduetoreducedcashlevelatSeptember30
2.2%
Margin
8.6%
Margin8.5%
Margin
-
8/2/2019 Chrysler Q3 2011 Presentation
5/33
4October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Q32011Operating,ProductandBusinessHighlights
Worldwidevehiclesales inQ32011increased24%to496kvehiclesvs.Q32010,reflectingcontinuedsuccessofnewandsignificantlyrefreshedproducts
U.S.marketshareat11.4%,up180bpsvs.Q32010
Fleet
sales
mix
of
total
sales
was
26%
versus
34%
in
Q3
2010;
Retail
of
retail
market
share
1
up250
bps
vs.
Q32010
ContinuedstrongperformanceinCanadawithmarketshareincreasingto14.5%,up170bpsvs.Q32010
U.S.dealerinventoryat277kunits,or54daysofsupplyvs.68daysinQ22011and58daysinQ32010;decreaseduetostrongSeptembersalesandpartsshortages
ChryslerGroupBoardofDirectorschanges: New
Chairman
elected:
Sergio
Marchionne
Newmembersappointed: Lo W.Houle andJohnB.Lanaway
NewLeadDirectorelected: RonaldL.Thompson
Fullyearguidancerevised: NetRevenues: >$55B
ModifiedOperatingProfit: >$2.0B
ModifiedEBITDA:
>$4.8B
AdjustedNetIncome2: ~$0.6B(revisedfrom$0.2 $0.5billion)
FreeCashFlow: >$1.2B(revisedfrom>$1.0B)
1 Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)2
Excludes loss on extinguishment of debt of $551 million in Q2 2011
-
8/2/2019 Chrysler Q3 2011 Presentation
6/33
5October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
New4YearUAWLaborAgreementHighlights RatifiedinOctoberWinWinforChryslerGroupandUAW
Newplantandproduct
investments$4.5Bininvestments;2,100
newentryleveljobs
Gainsfor
new
hires
Highestmaximumrateincreasesto
$19.28perhourbyendofcontract;
nocaponnewhires
Ratification,Performance,and
Quality/WCMBonusesRatificationbonusof$3,500,50%delayed
untilafinancialmilestoneisachieved;
PerformanceandQualitybonusestotal
$4,000overthecontractperiodwith100%
upsidepotential
Simplified andtransparent
profitsharingformulaBasedon85%ofreportedworldwide
ModifiedOperatingProfitMaintainedoverall
laborcost
competitivenesswith
foreigntransplants
~$51/hourallin
New4yearnationallaboragreementwiththeUAWmaintainsChryslerGroupscostcompetitiveness
andlinksvariablecompensationdirectlytocompanyperformanceandproductquality
Noadditionalcostfor
traditionalemployee
defined
benefitpensionplansNewhirepensionplanchangedtoa
definedcontributionplan;Legal
ServicesPlaneliminatedafter2013
-
8/2/2019 Chrysler Q3 2011 Presentation
7/33
6October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
$Millions
Q32011 Q32010
Q32011
B/(W)
Q32010
Q3YTD
2011
Q3YTD
2010
YTD2011
B/(W)
YTD2010
WorldwideShipments
Units
(000)
1 469 407 62 1,468 1,220 248
NetRevenue 13,067 11,018 2,049 39,852 31,183 8,669
ModifiedOperatingProfit
%ofNetRevenues
4833.7%
2392.2%
2441.5ppt
1,4673.7%
5651.8%
9021.9ppt
ModifiedEBITDA
%of
Net
Revenues
1,119
8.6%
937
8.5%
182
0.1ppt
3,583
9.0%
2,579
8.3%
1,004
0.7ppt
NetIncome(Loss) 212 (84) 296 (42) (453) 411
AdjustedNetIncome(Loss) 212 (84) 296 5092 (453) 962
FreeCashFlow (699) 32 (731) 2,001 2,171 (170)
Cash 9,454 8,260 1,194
GrossIndustrialDebt (12,322) (12,026) (296)
NetIndustrialDebt (2,868) (3,766) 898
Q32011FinancialResults
1 BeforeGDPadjustments(seedetailsinAppendix)2
Excludes
loss
on
extinguishment
of
debt
of
$551
million
in
Q2
2011
-
8/2/2019 Chrysler Q3 2011 Presentation
8/33
7October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
ReconciliationofNetIncome(Loss)toAdjustedNetIncome(Loss),
ModifiedOperatingProfitandModifiedEBITDA
$Millions
Q32011 Q32010
Q32011
B/(W)
Q32010
Q3YTD
2011
Q3YTD
2010
YTD2011
B/(W)
YTD2010
NetIncome(Loss) 212 (84) 296 (42) (453) 411
LossonExtinguishmentofDebt 551 551
AdjustedNetIncome(Loss) 212 (84) 296 509 (453) 962
IncomeTaxExpense 47 39 8 148 107 41
NetInterest
Expense 273 308 (35) 927 899 28
RestructuringExpenses,Net&Other (5) (13) 8 15 50 (35)
OtherEmployeeBenefitGains1 (44) (11) (33) (132) (38) (94)
ModifiedOperatingProfit 483 239 244 1,467 565 902
DepreciationandAmortization
Expense
2 636 698 (62) 2,116 2,014 102
ModifiedEBITDA 1,119 937 182 3,583 2,579 1,004
1 Includesinterestcostandexpectedreturnonplanassets2 Excludesdepreciationandamortizationexpenseforvehiclesheldforlease
-
8/2/2019 Chrysler Q3 2011 Presentation
9/33
8October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Q32010 Volume Mixand
NetPrice
Industrial
Costs
SG&A Other Q32011
ModifiedOperatingProfitWalk
239
(123) (14)
483
(78)
$Millions
153
306
+$244 Volumeincreaseof62kunits(57k
unitsadjustedforGDP see
Appendix)period
over
period
relatedtocontinuedsuccessof
newandsignificantlyrefreshed
products
Mixandnetpriceimprovedprimarilydueto2011modelyear
vehiclelaunchesandincreased
U.S.retailpenetration
Industrialcostsprimarilyimpactedbyhighercommodity,
transportationandER&Dcosts,
partiallyoffsetbylower
depreciation/amortizationcosts
SG&Aprimarilyreflectsincreasedadvertisingexpenditures
2.2%
3.7%
ModifiedOperatingProfitmorethandoubledprimarilydrivenbyvolumeandnetpricing
-
8/2/2019 Chrysler Q3 2011 Presentation
10/33
9October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
StructuralCostsandCapitalExpenditures
$Billions
0.8 0.8
0.7 0.6
0.5 0.7
0.40.4
Q32010 Q32011
Plant/Corporate
Depreciation&Amortization
Sales&Marketing
ER&D
2.4
StructuralCosts/1
2.0*
~3.0*
Q3YTD2011 FY2011E
CapitalExpenditures
2.5
Higheradvertisingexpenditurescontinuetodrivetheincrease
instructuralcostsonaperiodoverperiodbasis
CapitalexpendituresYTDtotal$2.0B*;
~$1.0billionexpectedinQ42011
/1 Previously referred to as Fixed Costs in Form 10 Registration Statementfiled with the U.S. SEC
* Includes non-cash expenditures of $0.1B
-
8/2/2019 Chrysler Q3 2011 Presentation
11/33
10October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
$Billions
CashWalkJune30,2011toSeptember30,2011
June30,
2011ModifiedEBITDA
WorkingCapital
&OtherCapital
ExpendituresPension
/
OPEBTaxes
&
InterestNet
Principal
Payments/
Receipts&FX
Sept30,
2011
ChangeinCash$(0.7)
(0.1)
(0.6) 9.5
(0.4)
10.2
1.1
(0.7)
Note:Numbersmaynotaddduetorounding
FreeCashFlowwasnegativeinthequarter
duetounfavorable
seasonalworkingcapital
fluctuationsandcapital
expenditures,partially
offsetby
strong
operatingperformance
TaxesandInterestincludes a$0.3B
scheduledpaymenton
theVEBATrustNote
FreeCashFlow$(0.7)
0
-
8/2/2019 Chrysler Q3 2011 Presentation
12/33
11October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
NetIndustrialDebt
$Billions CarryingValueasof
Sept
30,
2011
CarryingValueasof
June
30,
2011
Sept30,2011
B/(W)
June
30,
2011
Cash 9.5 10.2 (0.7)
TermLoanB 2.9 2.9
SeniorSecuredNotes 3.2 3.2
UAWVEBATrustNote 4.2 4.0 (0.2)
CAWHealthCareTrustNotes 1.0 1.1 0.1
MexicanDevelopmentBanksLoan 0.4 0.4
OtherFinancialLiabilities1 0.7 0.7
GrossIndustrialDebt 12.3 12.3
NetIndustrial
Debt
2 2.9 2.1 (0.8)
1 ExcludesGoldKeyLease(GKL)selfliquidatingdebt
2 ExcludespensionandOPEBunderfunding
Note: Numbersmaynotaddduetorounding
-
8/2/2019 Chrysler Q3 2011 Presentation
13/33
12October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
WorldwideVehicleSalesThirdQuarter
114160
147
164
57
6883
93
11
Q32010 Q32011
293
369
55
61
18
19
35
47
Q32010 Q32011
U.S.
Canada
Mexico
Intl
ByMarket ByBrand
Units (000s)
401 401
496 496
+76
+6
+1
+12
2011+/ 2010
+46
+11
+10
+11
2011+/ 2010
+17
+24%
Fleet Mix34%
Fleet Mix26%
2011yeartodateworldwidevehiclesalestotaled1,376k(comparedto1,142kvehiclesforthesame
periodayearago)representinganincreaseof20%
Note Excludescontractmanufacturedvehicles,primarilyforFiat(17kinQ32011and4kinQ32010)
-
8/2/2019 Chrysler Q3 2011 Presentation
14/33
13October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
304
58 5860
5863
67 68
54
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
U.S.DealerInventoryandDaysSupply
DaysSupply
2009 2011
Units (000s)
179
222
208
231 236
DayssupplyatU.S.dealersdecreasedduetoastrongSeptembersalesperformanceandpartsshortages
302
2010
DealerInventory
314
277
-
8/2/2019 Chrysler Q3 2011 Presentation
15/33
14October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Source:CompanycalculationbasedonJ.D.PowerandAssociatesdata(atconstantQ32011salesnameplatemix)
U.S.RetailAverageTransactionPrice
$Per
Unit
~3,600~4,000
~3,600~3,300
~3,100 ~3,000~3,200
27,00026,800
27,00027,300
27,80028,200 28,000
Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Q32011
AverageTransactionPrice
Maintainingstrongtransactionprices(+$1,000perunitcomparedtothesameperiodayearago);
increaseinQ32011incentivesversusQ22011primarilyduetomodelyearchangeover
AverageIncentiveAverage
Incentive
-
8/2/2019 Chrysler Q3 2011 Presentation
16/33
15October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Industry
Units(000s)
ChryslerGroupperformance(Q32011vs.Q32010)
Sales Market share KeyMessages(periodoverperiod)
+26%11.4%
(up180bps)
+13% 14.5%(up170bps)
SalesinU.S.&CanadaContinuetoOutpaceIndustry18consecutivemonthsofyearoveryearsalesgainsintheU.S.
3,0513,254
Q32010 Q3
2011
426 425
Q32010 Q32011
Retailsales(excludingfleet)increased41%
Retailofretailmarketshare*increasedto10.2%,up250bps
Fleetmixat26%,downfrom34%
Keyperformersincluded: JeepCompass(+208%) JeepWrangler(+52%) JeepGrandCherokee(+38%)
Chrysler300
(+18%)
Chrysler200(26kvehiclessold) DodgeDurango(16kvehiclessold)
Retailsales(excludingfleet)increased10%
Retailofretailmarketshare*increasedto13.4%,up160bps
Keyperformersincluded: JeepWrangler(+52%) JeepCompass(+35%) JeepGrandCherokee(+31%) RamPickup(+9%)
* - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)
-
8/2/2019 Chrysler Q3 2011 Presentation
17/33
16October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
ResidualValueImprovementNewandsignificantlyrefreshedmodelsshowstrongprogress
ChryslerGroupresidualvaluesoverallincreasedatahigherratethantheindustry,
improvingcompetitivenessonleaseratesandtradeinvalues
8 ppt
+20%
200
10 ppt+23%
9 ppt
+18%
9 ppt+25%
Wrangler&
WranglerUnlimited
GrandCaravan
Source: ALG, Inc. Sept/Oct 2011 Edition, electronic version as of 10/17/2011Note Percentage point improvement based on non-sales weighted average improvement of all trim levels for each
vehicle (2011 MY vs. 2012 MY at 36 months; 15,000 miles per year)
-
8/2/2019 Chrysler Q3 2011 Presentation
18/33
17October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
RamTruckSuccessNewversionscontributetoshareincreases
Designedforthecommercialbuyerwhoislookingforcapabilityandlowcostofownership
5.7LHEMIV8engine
Towsupto10,400pounds thousandsmorethansimilarpricedcompetitors
Designedforthecostconsciousnewtruckbuyerwhoislooking forstyleandperformance
Availableinregular,quadorcrewcab
5.7LHEMIV8engine
Ram ExpressRam ExpressRam TradesmanRam Tradesman
Q1 Q2 Q3
2010 2011
Ram Pickup Period-over-Period U.S. Sales Gains
38%
23%18%
Rampickupscontinuetogainmomentum
inthemarketplacewithquarterlyyear
overyeargainsduring2011
Newversionsdrivingsharegains(versus
2010)intheLargePickupsegmentSegmentshareincrease
(periodoverperiod) +1.6ppt +3.3ppt +1.3ppt
-
8/2/2019 Chrysler Q3 2011 Presentation
19/33
18October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
2012Chrysler300Newmodelbuildsonhistoryasmostawardednewcarever
Q1 Q2 Q3
2010
2011
U.S. Sales
Firsteightspeedautomatictransmissioninadomestic,luxurysedan
3.6LPentastarV6enginewith292horsepower
Bestinclasshighwayfueleconomy,with31mpghighway
Bestin
class
V
6
AWD
fuel
economy,
with
18
mpg
city
and
27mpghighway
Worldclassinteriortakesdomesticluxurytonewlevel
Allnewluxurysedanearnedexcellentratingfromaleadingconsumermagazine
NewIfYoureGonnaadvertisements
linkthe300toImportedfromDetroit
campaign
U.S.salesgainingmomentumasvehicle
availabilityincreasessinceQ12011
-
8/2/2019 Chrysler Q3 2011 Presentation
20/33
19October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
BrandinU.S.andCanada
926
6,578
10,721
86
147
181
0
5,000
10,000
0
50
100
150
200
Q1 2011 Q2 2011 Q3 2011
Fiat Dealers(U.S. & Canada)
Fiat BrandSales
(U.S. & Canada)
Fiat500andFiat500Cabrio byGucciFiat500andFiat500Cabrio byGucci
NewspecialeditionscustomizedbyGucciinpartnershipwithFIATsCentroStile
Uniqueinteriorandexterior
AvailableDecember2011
CallittheJLoFactor.
SantaMonicabasedautositeEdmunds.comsaidtodaythat
interestinthenewfor2012Fiat500hasbeendramatically
boostedbytheappearanceofactresssingerJenniferLopezina
recentlyintroducedtelevisioncommercial.
Inthead,LopezjukesanddrivesaFiat500aroundacrowdof
pursuing,adoringfans.
Edmunds.comsaidconsumerconsiderationfortheFiat500on
itssitehasclimbed31percentsincetheadmadeitsdebuton
theSept.12telecastofESPN'sMondayNightFootball.On
Sept.18,whentheadairedthroughoutanentireSundayof
NFLtelecasts,Fiat500considerationspiked95percent.
EdmundsAutoObserver9/28/11
FIAT JenniferLopezAdvertisingCampaignFIAT JenniferLopezAdvertisingCampaign
ThenewsabouttheFiat500andJennifer
Lopezadvertisingcampaigngeneratedalmost
240millionoverallmediaimpressions
FIATbrandsalesincreasinginU.S.and
Canada;dealers,
new
editions
and
marketingcampaignscontinuetolaunch
-
8/2/2019 Chrysler Q3 2011 Presentation
21/33
20October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
JeepGrand
Cherokee
is
the
most
awarded
SUV
ever,
receiving
over
30
awards
fromautomotivejournalistassociations,print/online/televisionmediaoutletsand
industryorganizations
Also,recentlyvotedSUVofTexasandtheOverlandSummitmodelwon
tophonorsintheLuxurySUVcategorybytheTexasAutoWritersAssociation
3.6LPentastar V6enginedeliversupto23MPG (highway)fuelefficiencyand550miledrivingrange
JeepGrandCherokeeSRT8forEuropeshownatFrankfurtMotorShow(September2011);tobeavailableinEuropestartingQ12012
Salesincreasesinallmarkets(Q3YTD2011versusQ3YTD2010) U.S. + 78% Canada + 86% Mexico +101% International + 73%
2012JeepGrandCherokeeTheMostAwardedSUVEver;worldwidesalessuccess
Q1 Q2 Q3
2010 2011
Jeep Grand Cherokee Period-over-Period
Worldwide Sales Gains
59%174%
47%
The2012GrandCherokee,
withitswelltrimmedand
roomierinterior,powerfulV6
andmorerefinedperformance
andride,isinfightingshapeas
atopcontenderamongmidsizeSUVs.
Edmunds.com
-
8/2/2019 Chrysler Q3 2011 Presentation
22/33
21October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
WorldwideShipments >2.0M
NetRevenues >$55B
ModifiedOperatingProfit >$2.0B
Modified
EBITDA >
$4.8
B
AdjustedNetIncome~$0.6B*
(revisedfrom$0.2$0.5B*)
FreeCashFlow>$1.2B
(revisedfrom>$1.0B)
2011GuidanceRevised
* Excludeslossonextinguishmentofdebtof$551million
-
8/2/2019 Chrysler Q3 2011 Presentation
23/33
-
8/2/2019 Chrysler Q3 2011 Presentation
24/33
23October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Appendix
-
8/2/2019 Chrysler Q3 2011 Presentation
25/33
24October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
WorldwideVehicleShipmentsThirdQuarter
123 132
151 152
5566
7487
154
17
Q32010 Q32011
301331
50
5818
1834
454
17
Q32010 Q32011
U.S.
Canada
Mexico
Intl
ByMarket ByBrand
Units (000s)
407 407
469
+30
+8
0
+11
2011+/ 2010
+9
+11
+13
+15
2011+/ 2010
+1
+15%
ContractMfg+13
ContractMfg+13
2011yeartodateworldwidevehicleshipmentstotaled1,468k(comparedto1,220kvehiclesforthesame
periodayearago)representinganincreaseof20%
469
-
8/2/2019 Chrysler Q3 2011 Presentation
26/33
25October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
GuaranteedDepreciationProgramAdjustedShipments
Units(000s)
Q3
2011 Q3
2010
Q32011
B/(W)Q32010
Q3YTD
2011
Q3YTD
2010
YTD2011
B/(W)YTD2010
WorldwideShipments 469 407 62 1,468 1,220 248
GuaranteedDepreciationProgram(GDP)
Subtract: Shipments
during
period (8) (4) (4) (71) (55) (16)
Add: Returns/auctionsduringperiod 6 7 (1) 36 19 17
Net(shipments)/returns (2) 3 (5) (35) (36) 1
GDPAdjustedShipments 467 410 57 1,433 1,184 249
-
8/2/2019 Chrysler Q3 2011 Presentation
27/33
26October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
ReconciliationofCashFlowsFromOperatingActivitiesto
FreeCashFlow
$Millions
Q32011 Q32010
Q32011
B/(W)
Q32010
Q3YTD
2011
Q3YTD
2010
YTD2011
B/(W)
YTD2010
NetCashProvidedBy(UsedIn)OperatingActivities (171) 648 (819) 3,537 4,227 (690)
NetCashUsedInInvestingActivities (481) (290) (191) (874) (652) (222)
InvestingactivitiesexcludedfromFreeCashFlow
ChangeinLoansandNotesReceivable
ProceedsfromUSDART1
2
(2)
(4)
(96)
(37)
33
(96)
FinancingactivitiesincludedinFreeCashFlow
ProceedsfromGoldKeyLeaseFinancing
RepaymentsofGoldKeyLeaseFinancing
(47)
(328)
281
(562)
266
(1,633)
(266)
1,071
FreeCashFlow (699) 32 (731) 2,001 2,171 (170)
1U.S.DealerAutomotiveReceivablesTransitionsLLC
-
8/2/2019 Chrysler Q3 2011 Presentation
28/33
27October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
ReconciliationofFinancialLiabilitiesto
GrossIndustrialDebtandNetIndustrialDebt
$MillionsSept30,
2011
June30,
2011
Mar31,
2011
Dec31,
2010
FinancialLiabilities
(CarryingValue) 12,384 12,403 13,445 13,731
Less: GoldKeyLeaseobligations
Shorttermassetbackednotespayable
Longtermassetbackednotespayable
GoldKeyLeasecreditfacility
TotalGold
Key
Lease
obligations
(62)
(62)
(63)
(53)
(116)
(66)
(45)
(80)
(191)
(130)
(43)
(438)
(611)
GrossIndustrialDebt 12,322 12,287 13,254 13,120
Less: Cash (9,454) (10,175) (9,877) (7,347)
Net
Industrial
Debt 2,868 2,112 3,377 5,773
-
8/2/2019 Chrysler Q3 2011 Presentation
29/33
28October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
GrossIndustrialDebt
$Billions AsofSeptember30,2011
CarryingValue
FaceValue
TermLoanB 2.9 3.0
SeniorSecuredNotes 3.2 3.2
VEBATrustNote 4.2 4.8
CanadianHealthCareTrustNotes 1.0 1.0
MexicoDevelopmentBanksLoan 0.4 0.4
OtherFinancialLiabilities1 0.7 0.8
GrossIndustrialDebt 12.3 13.2
1ExcludingGKLselfliquidatingdebt
Note:Numbersmaynotaddduetorounding
-
8/2/2019 Chrysler Q3 2011 Presentation
30/33
29October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
PensionDisclosure
$Millions
NET PERIODICBENEFITCOST
Q3
2011
Q3
2010
Q3YTD
2011
Q3YTD
2010
Service Cost 65 60 197 184
InterestCostNet ofExpectedReturn (78) (60) (226) (184)
Special EarlyRetirementCosts 46 73
TotalNetPeriodicBenefitCost 33 44
WORLDWIDEPENSION
FUND
CONTRIBUTIONS49 76 339 383
WORLDWIDEASSUMPTIONS(Dec31) 2010 2009
Expected LongTerm
Asset
Return 7.41% 7.42%
Discount Rate OngoingBenefits(WeightedAverage)
5.33% 5.54%
-
8/2/2019 Chrysler Q3 2011 Presentation
31/33
30October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
OPEBDisclosure
$Millions
NET PERIODICBENEFITCOST
Q3
2011
Q3
2010
Q3YTD
2011
Q3YTD
2010
Service Cost 6 8 16 26
InterestCostNet ofExpectedReturn 32 48 101 143
AmortizationofActuarial Loss 3 1 8 3
GainonVEBAclaimsadjustment (15)
TotalNetPeriodicBenefitCost 41 57 110 172
BENEFITSPAID 46 58 170 214
WORLDWIDEASSUMPTIONS(Dec31) 2010 2009
Expected LongTermAssetReturn 7.50%
Discount Rate OngoingBenefits(WeightedAverage)
5.57% 5.38%
-
8/2/2019 Chrysler Q3 2011 Presentation
32/33
-
8/2/2019 Chrysler Q3 2011 Presentation
33/33
32October28,2011
(PreliminaryresultspreparedinaccordancewithU.S.GAAP RefertoAppendixfordefinitionofnonU.S.GAAPfinancialmeasures)
Contacts
ChryslerInvestorRelations
TimothyKrause phone: 2485122923
email: [email protected]
ChryslerCommunications
GualbertoRanieri phone: 2485122226
email: [email protected]
Website
www.chryslergroupllc.com