INVESTOR PRESENTATION - FCA Bank Group
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I N V E S T O R P R E S E N TAT I O N
2017 H1
Disclaimer
By opening this presentation and/or attending the meeting where this presentation is made, you agree to be bound by the following limitations and restrictions.
This presentation is solely for use at a meeting where this presentation is to be held. It 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 may be
amended and supplemented, but may not be relied upon for the purposes of entering into any transaction. This presentation is strictly confidential, is being distributed to a limited range of persons solely for their own information and may not (i) be
distributed to the media or disclosed to any other person in any jurisdiction, nor (ii) be reproduced in any form, in whole or in part, without the prior written consent of FCA Bank. This presentation does not constitute a recommendation regarding
any securities of FCA Bank.
The information in this presentation is confidential and this document is being made available to selected recipients only and solely for the information of such recipients. This document may not be reproduced, redistributed or passed on to any
other persons, in whole or in part. This presentation is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.
The information set out in this presentation may be subject to updating, revision, verification and amendment and such information may change materially. In giving this presentation, none of FCA Bank nor any of its affiliates, subsidiaries,
shareholders, representatives, agents, employees or advisors, undertakes any obligation to amend, correct or update this presentation or to provide the recipient with access to any additional information that may arise in connection with it. 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, subsidiaries, shareholders,
representatives, agents, employees or advisors 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.
No representation, warranty or undertaking, express or implied, is made or given by or on behalf of FCA Bank or any of its affiliates, subsidiaries, shareholders, representatives, agents, employees or advisors, as to, and no reliance should be
placed on, the fairness, accuracy, completeness, fairness or correctness of the information or the opinions contained herein or any other material discussed at the presentation and no responsibility or liability is assumed by any such persons for
any such information or opinions or for any errors or omissions
This document is an advertisement and does not constitute a prospectus for the purposes of Article 2003/71/EC (as amended) (the “Prospectus Directive”).
In any member state of the European Economic Area, this presentation is directed only at “qualified investors” within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended, including by Directive 2010/73/EU).
This presentation and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States, its territories or possessions or to any U.S. person (within
the meaning of Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”)) or in any other jurisdiction where it is unlawful to do so. Any failure to comply with this restriction may constitute a violation of U.S.
securities laws. This presentation is not an offer of securities for sale in the United States.
This presentation is being communicated in the United Kingdom only to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (the “Order”) and to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as relevant persons). This presentation is only directed at relevant persons and any investment or investment
activity to which the presentation relates is only available to relevant persons or will be engaged in only with relevant persons. Other persons should not rely or act upon this presentation or any of its contents.
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, projections, objectives, estimates and forecasts are generally identifiable by the use of the words “may,” “will,” “should,” “plan,” “expect,”
“anticipate,” “estimate,” “believe,” “intend,” “project,” “goal” or “target” or the negative of these words or other variations on these words or comparable terminology. 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. These forward-
looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding FCA Bank’s future financial position and results of operations, strategy, plans, objectives, goals
and targets and future developments in the markets where FCA Bank participates or is seeking to participate. All statements, other than statements of historical facts, contained herein regarding FCA’s strategy, goals, plans, future financial
position, projected revenues and costs or prospects are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, some of which cannot be predicted or quantified. 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 and future events or actual results could differ materially from those set forth in, contemplated by or underlying forward-looking statements. 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. By attending the meeting where this presentation
is made or by accepting a copy of this presentation, you agree to be bound by the foregoing and to maintain confidentiality regarding the information disclosed in this presentation.
2
FCA Bank: a JV between FCA and Crédit Agricole
FCA Bank is one of the largest specialized auto finance and lease companies operating in Europe,
diversified across products, geographies and brands
50 / 50 Joint Venture between Fiat Chrysler Automobiles and Crédit Agricole
Long-Term Partnership signed in December 2006 and extended until December 2021, at least
A unique business model, focusing on the automotive industry and combining the commercial
effectiveness of an industrial partner, with the risk discipline and financial strength of a universal
banking group
FCA Bank is regulated as a bank by the Bank of Italy under the Italian Banking Act
Board Composition: 10 members, 2 independent, 4 appointed by each shareholder
3
About FCA Bank
Business deployed in 3 Business lines, 12 Brands, 18 Countries
Significant brand diversification, compared to the other Automotive Captive European peers,
offering services and open market solutions to:
FCA brands Jaguar and Land Rover (Mainland Europe)
Maserati Erwin Hymer Group (leisure vehicles)
Ferrari
FCA BANK RATINGS
Baa1 Long-term (Stable Outlook) / P-2 Short-term / A3 Deposits Long-term
(Negative Outlook)
BBB- Long-term (Stable Outlook) / A-3 Short-term
BBB+ Long-term (Stable Outlook) / F2 Short-term
4
FCA Bank Group – Business Overview
Multi-Brand and Multi-Business
Total Outstanding 2017 H1 (EoP): 22.7 €/Bn
Dealer Financing
3 Business lines OEM Dealer Networks
Outstanding 2017 H1 (EoP): 6.6 €/Bn
12 Brands
29% of outstanding assets
27 Legal entities and 7 branches
Retail Financing
2,066 Employees Private customers
Channel: Dealership
18 Countries Outstanding 2017 H1 (EoP): 14.0 €/Bn
62% of outstanding assets
Long Term Rental
Corporate customers
Channel: Dealership/Direct
Outstanding 2017 H1 (EoP): 2.1 €/Bn
9% of outstanding assets
5
FCA Bank Group –2017 H1 Highlights
Outstanding commercial performance with an average managed portfolio equal to €
21.2 Bn compared to € 17.8 Bn in the first half of 2016
Net Banking Income increasing compared with previous years
INTERNATIONALIZATION ROAD MAP
Cost of risk improving
Cost of funding decreasing
Net Profit reaching € 190 M, best ever half-year result
Stronger liquidity position enhanced by further diversification on secured and unsecured
capital markets
Core Tier 1 set at 11.4% (Consolidated perimeter); Equity equal to € 2.4 Bn
6
Performance Indicators
(€ and %) 2017
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
H1
Average Managed Outstanding 14.6 Bn 15.5 Bn 15.5 Bn 16.4 Bn 15.8 Bn 14.9 Bn 14.6 Bn 14.7 Bn 16.1 Bn 18.5 Bn 21.2 Bn
Net Banking Income /
3.5% 3.5% 3.7% 3.7% 3.9% 4.1% 4.0% 3.8% 4.2% 4.0% 3.9%
Average Managed Outstanding
Net Profit 119 M 137 M 105 M 147 M 153 M 167 M 172 M 182 M 249 M 312 M 190 M
CET 1 7.2% 8.2% 8.0% 8.8% 9.2% 10.6% 11.0% 11.7% 11.2%* 11.3%* 11.4%*
*Basel III Banking Group (effective 2015)
Note:
i) Managed Portfolio figures are net of credit risk funds
7Capitalization Consolidated Perimeter
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
Outstanding EOP
(€/Bn)
14.9 15.2 16.1 16.1 15.9 14.5 15.0 15.3 17.2 20.8 22.7
JVA perimeter / Basel II Rules Basel III
12,1%
11,7%
11,0% 11,2% 11,3%
10,6%
9,2% 11,7% 11,4%
8,8% 11,0% 11,2% 11,3%
8,2% 8,0% 10,6%
Total Capital
7,2% 9,2%
Ratio 8,8%
8,2% 8,0%
7,2%
312
CET 1 249
167 172 182 190
137 147 153
119 105
Net Profit (€/M)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
FCA Bank subsidiaries not needing additional capital
FCA Bank regulated legal entities above Minimum Capital Requirement "MCR"
8Outstanding by Business Line End of Period
22,7
20,8
(€/Bn) 2,1
1,7
17,2
16,1 15,9 6,6
15,0 15,3 1,4
14,5 6,0
1,6 1,5
1,3 1,3
1,3 4,8
3,7 4,1
3,7 3,9 4,0
13,0 14,0
10,8 10,3 9,8 10,0 11,0
9,5
2010 2011 2012 2013 2014 2015 2016 2017 H1
Retail Dealer Financing Long term Rental
Spain Other
6% 12%
France
8%
UK
FCA Brands currently account for around 80% of 10%
FCA Bank total portfolio 2017 H1
Italy
Germany 46%
18%
9Key Financial Indicators
Net Banking Income (€/M) & Percentage Cost / Income Ratio (%)
on Average Outstanding
4,1% 4,0% 4,1% 4,0%
800 3,9% 3,8% 3,9% 4,50%
46,5%
3,7% 3,7%
700
3,5% 3,5% 4,00%
42,8%
732 3,50% 40,6% 40,0% 40,1%
600
667 38,8% 38,6% 39,4%
500
576 596 609 608 587
3,00%
35,4%
536 566 416 2,50% 33,5%
400
517 31,7%
2,00%
300
1,50%
200
1,00%
100 0,50%
0 0,00%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
Net Banking Income NBI / Average Outstanding
Net Profit (€/M) & Percentage on Average
Pre-Tax Income (€/M) & Percentage on
Outstanding
Average Outstanding
2,2% 2,3% 2,4% 1,7% 1,8%
450 2,5%
350 1,6%
1,70%
400 1,7% 1,7% 1,7%
417 2,0%
300
1,2% 1,2%
350 1,3% 1,3% 1,4% 1,1% 312
1,2% 1,2% 359 250
0,9% 1,0% 1,20%
300 259 1,5%
0,8% 0,9%
0,7% 249 190
250 1,0%
200
200 257 248 257 0,70%
213 229 150
172 182
150 190 189 153 167
184
0,5%
100 137 147
100 119 0,20%
0,0%
105
50 50
0 -0,5%
0 -0,30%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
Pre-Tax Income Pre-Tax Income / Average Outstanding Net Profit Net Profit / Average Outstanding
Sound performance highlighted by positive trend of all main financial indicators
10Credit Risk Performance
Cost of Risk (€/M) & Ratio (%) on Average Outstanding
160 2,50%
145 145 144
140
2,00%
117 116
120 109
100
87 83 1,50%
80 70
0,93% 0,89% 0,91%
60 0,78% 55 1,00%
0,76% 0,75%
0,60%
40 0,57%
27 0,50%
20 0,44%
0,30% 0,25%
0 0,00%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
Provisions (€/M) Cost of Risk (%)
Cost of Risk performance continuing to improve
11Credit Quality
December 31st, 2016 June 30th, 2017
Allowance for Allowance for
Gross Net Gross Net
(€/ M) loan and lease loan and lease
Exposure Exposure Exposure Exposure
losses losses
Non-performing loans 298.1 (143.0) 155.1 283.5 (142.0) 141.5
Performing loans 18,540.6 (139.7) 18,400.8 20,121.5 (139.5) 19,982.0
Total 18,838.7 (282.8) 18.555.9 20,405.0 (281.5) 20,123.5
December 31st, 2016 June 30th, 2017
Gross Gross
Net Exposure Coverage Net Exposure Coverage
Exposure Exposure
weight ratio weight ratio
weight weight
Non-performing loans 1.58% 0.84% 47.98% 1.39% 0.70% 50.09%
Performing loans 98.42% 99.16% 0.75% 98.61% 99.30% 0.69%
Total 100.00% 100.00% 1.50% 100.00% 100.00% 1.38%
12Residual Value Risk
euro/mln December 31st, 2015 December 31st, 2016 June 30th, 2017
Consumer loans and leases:
- Residual Risk assumed by FCA Bank 1,086 926 952
of which UK market 1,036 879 878
Provision for residual value 56
Provision / Risk 5.88%
euro/mln December 31st, 2015 December 31st, 2016 June 30th, 2017
Long-Term Rental:
- Residual Risk assumed by Leasys 576 638 765
Provision for residual value 41
Provision / Risk 5.36%
13Funding Sources Evolution
21.2
19.5
Bonds
CA Group
16.0 8,0 Deposits
14.9 14.3 14.9 14.7 14.5 7,5
(€Bn)
13.9 13.7 Banks
0,5 0,5
0,5 13.0
5,1 ECB
2,3
1,5 3,1
5,2 2,9 Securitizations
6,4 8,4 8,0 7,1 2,8
0,4
2,7
5,2 5,1 0,2
4,1
4,5 17%
3,8
4,8
4,1
3,9 3,2 3,1 2,4 2,7
3,5 3,0 1,8 38%
- - 1,8
- - - - 1,0
-
4,3
- 2017 H1 21%
3,5 3,5 3,8 4,1 3,8 3,5 3,7
3,0 3,3 3,1
2%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1
8%
14%
14CONTACTS
FCA Bank SpA
Riccardo Mesturino Treasurer riccardo.mesturino@fcagroup.com
Niccolò Camerana Debt Capital Markets & IR niccolo.camerana@fcagroup.com
Bloomberg
Ticker: FCABANK
Website
www.fcabankgroup.com
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