chrysler group llc q3 2013 results review · october 30, 2013 (preliminary results prepared in...

Chrysler Group LLCQ3 2013 Results Review

(U.S. GAAP – Preliminary)

October 30, 2013

1October 30, 2013

(Preliminary results prepared in accordance with U.S. GAAP - Refer to Appendix for definitions of non-U.S. GAAP financial measures)

Forward-Looking Statement

This document contains forward-looking

statements that ref lect management 's

current v iews wi th respect to future

ev ents. The words “ant ic ipate,”

“assume,” “bel iev e,” “est imate,”

“expect , ” “intend,” “may,” “plan,”

“project , ” “should” and similar

expressions ident if y forward-looking

statements. Such statements are

subject to risks and uncertaint ies,

including, but not l im ited to: the

ef fect ive implementation of the Chrysler

Group LLC 2010 – 2014 Business Plan

out l ined on November 4, 2009 and

subsequent updates, including

successful vehicle launches; industry

SAAR lev els; continued economic

weakness, especial ly in North America,

including continued high unemployment

lev els and l imi ted avai labi l i ty of

af fordably pr iced f inancing for our

dealers and consumers; introduct ion of

competing products and competi t iv e

pressures which may lim i t our abi l i ty to

reduce sales incent ives; supply

disrupt ions resul t ing f rom natural

disasters and other ev ents impacting

our supply chain; and the cont inuation

of , and our abi l i ty to real ize benef i ts

f rom, our industr ial al l iance wi th Fiat . In

addi t ion, any project ions or targets on

future performance are based on the

assumpt ion that the Company maintains

i ts status as a partnership for U.S.

federal and state income tax purposes

and do not consider the impact of a

potent ial conversion into a corporat ion.

If any of these or other r isks and

uncertaint ies occur, or if the

assumpt ions underlying any of these

statements prov e incorrect , then actual

resul t s may be material ly dif ferent f rom

those expressed or impl ied by such

statements. W e do not intend or assume

any obl igation to update any forward-

looking statement, which speaks only as

of the date on which i t is made. Further

detai ls of potent ial r isks that may affect

Chrysler Group are described in

Chrysler Group LLC’s periodic reports

f i led wi th the U.S. Securi t ies and

Exchange Commission.

2October 30, 2013


Executive SummaryQ3 2013 Highlights

• Worldwide shipments totaled 593k vehicles, up 6% versus Q3 2012

• Net revenues totaled $17.6B, up 13.5% versus Q3 2012

Q3 2013 net revenues benefited from higher shipments, including the Jeep Grand Cherokee and Ram 1500 pickup trucks

• Modified Operating Profit increased 22% year-over-year to $862M

Higher shipment volumes and pricing offset increased industrial costs and vehicle content enhancements

• Net income increased 22% year-over-year to $464M – 9th consecutive quarter of positive net income

• Worldwide vehicle sales of 603k, up 8% from Q3 2012

U.S. market share down 10 bps in Q3 2013 to 11.2% year-over-year

U.S. retail vehicle sales increased 16%

U.S. dealer inventories at 62 days supply

Canada market share flat at 14.3%

• Net Industrial Debt increased to $888M at September 30, 2013 (from $656M at June 30, 2013) partly due tonegative Free Cash Flow of $343M in Q3 2013

Cash decreased partly due to the scheduled annual VEBA Trust Note interest payment and the shipment hold of JeepCherokees at quarter-end

• Jeep Cherokee shipments to dealers started in late October

• FY 2013 guidance confirmed

3October 30, 2013


Q3 2013 Financial Highlights

Net Income ($M)

Net Industrial Debt ($B)

0.70.9

Cash ($B)

Net Revenue ($B)

Modified Operating Profit ($M)

Modified EBITDA ($M)

• Increase of 13.5% primarily due tohigher shipment volumes andpositive net pricing

• Worldwide shipments up 6% to593k units (598k shipmentsadjusted for GDP – see appendix),led by the Jeep Grand Cherokeeand Ram pickup trucks

• Modified Operating Profit increased22% versus the prior year to 4.9%of net revenue

• Increase due to higher shipmentvolumes and positive pricing, partlyoffset by higher industrial andlaunch-related costs and vehiclecontent enhancements

15.517.6

706862

1,3051,573

Q3 ‘12 Q3 ‘13 Q3 ‘12 Q3 ‘13

Q3 ‘12 Q3 ‘13

Q3 ‘12 Q3 ‘13

Jun 30, ‘13 Sept 30, ‘13

4.9% ofnet

revenue

• Net Industrial Debt increased to$888M primarily due to negativeFree Cash Flow in the quarter

4.6% ofnet

revenue

9.0% ofnet

revenue

8.4% ofnet

revenue

11.9• Free Cash Flow of $(0.3)B in Q3 2013

primarily due to continued capitalexpenditures, Jeep Cherokeeshipment hold and the scheduledannual VEBA Trust Note payment ofinterest, partially offset by cash fromoperations

• Total liquidity of $12.8B, including$1.3B available under a revolvingcredit facility

11.5

Jun 30, ‘13 Sept 30, ‘13

464381

• Net income increased $83M, or22%, versus the prior year

• Year-to-date net income of $1.1B

• Modified EBITDA increased $268Mor 21% versus prior year, consistentwith the increase in ModifiedOperating Profit plus higherdepreciation/amortization

4October 30, 2013


Q3 2012 Volume& Mix

Net Price IndustrialCosts

SG&A Other Q3 2013

706

65 11 862

(595)

$ Millions

332

$156

4.6% ofnet

revenue

4.9% ofnet

revenue

Modified Operating Profit WalkQ3 2012 to Q3 2013

343

• Volume increase of 33k GDPadjusted vehicle shipments (plus34k unadjusted) primarily related toan increase in Ram 1500 pickupvolumes

• Mix was positive primarily reflectinghigher retail volumes and lowerfleet volumes and improved carlinemix

• Positive net price partly driven byvehicle content enhancements onrecent launches

• Industrial costs impacted by the keyproduct launches, including contentenhancements and depreciation &amortization, partly offset bypurchasing synergies

• SG&A costs lower primarily due toreduced advertising costs

• Other relates to foreign exchangeaffects

5October 30, 2013


Structural Costs and Capital Expenditures

$ Billions

1.01.2

0.6

0.7

0.8

0.7

0.5

0.6

Q3 2012 Q3 2013

Plant /Corporate

Depreciation &Amortization

Sales &Marketing

ER&D

2.9

Structural Costs

1.2

0.8

3.1

2.6 1

Q3 2012 Q3 2013 Q3 YTD2012

Q3 YTD2013

Capital Expenditures

3.2

Cost increase primarily due to increased volumes, newproduct launches, and support for future product plan Full year 2013 capital expenditures expected at ~$4B

1 Includes non-cash expenditures of $0.1B in Q3 YTD 2013

6October 30, 2013


Cash WalkJune 30, 2013 to September 30, 2013

$ Billions

Jun 30,2013

ModifiedEBITDA

Working Capital& Other

CapitalExpenditures

Pension /OPEB

Taxes &Interest

Net PrincipalPayments & FX

Sept 30,2013

Change in Cash$(0.4)

(-0-)(0.5) 11.5

(0.6)

11.9

1.6

(0.8)

Free Cash Flow$(0.3)

Negative Free Cash Flow driven by capital expenditures and the VEBA Trust Note interest payment, partiallyoffset by improved operating performance

Note: Numbers may not add due to rounding

(0.1)

7October 30, 2013


Net Industrial Debt

$ Billions Carrying

Value as of

Sept 30, 2013

Carrying

Value as of

Jun 30, 2013

Sept 30, 2013

B/(W)

Jun 30, 2013

Carrying

Value as of

Sept 30, 2012

Sept 30, 2013

B/(W)

Sept 30, 2012

Cash 11.5 11.9 (0.4) 11.9 (0.5)

Term Loan B 2.9 2.9 - 2.9 -

Secured Senior Notes 3.2 3.2 - 3.2 -

VEBA Trust Note 4.2 4.3 0.1 4.3 0.1

Canadian Health Care Trust Notes 1.0 0.9 - 1.1 0.1

Mexican Development Banks CreditFacilities

0.6 0.6 - 0.6 -

Other Financial Liabilities 0.6 0.6 - 0.6 -

Total Financial Liabilities 12.4 12.5 0.2 12.6 0.3

Net Industrial Debt 1 0.9 0.7 (0.2) 0.7 (0.2)

1 Excludes pension and OPEB underfundingNote: Numbers may not add due to rounding

8October 30, 2013


Worldwide Vehicle SalesQ3 2013 versus Q3 2012

182 186

175 195

8385

101121

15

16

Q3 2012 Q3 2013

417 449

646822195367

Q3 2012 Q3 2013

U.S.

CanadaMexico

Int’l

By Market By Brand

Vehicles (000s)

556603

+32

+4(3)

+14

2013 +/- 2012

+4

+2

+20

+1

2013 +/- 2012

+20

+8%

U.S.Fleet Mix

24%

556603

Note – 2013 includes Fiat manufactured Fiat and Alfa Romeo vehicle sales in Mexico; prior to 1/1/13,these vehicles were reported by Fiat S.p.A. (1k in Q3 2012 and 3k in Q3 YTD 2012)

Worldwide vehicle sales totaled 1.8M units in Q3 YTD 2013 (versus 1.7M vehicles in Q3 YTD 2012)representing an increase of 9%

Worldwide vehicle sales totaled 1.8M units in Q3 YTD 2013 (versus 1.7M vehicles in Q3 YTD 2012)representing an increase of 9%

U.S.Fleet Mix

18%

9October 30, 2013


IndustryVehicles (000’s)

Chrysler Group performance (Q3 2013 vs. Q3 2012)

Sales Market share Key Messages (period-over-period)

+8%11.2%

(down 10 bps)

+6%14.3%

(no change)

Vehicle Sales in U.S. & CanadaQ3 2013 versus Q3 2012

3,6994,024

Q3 2012 Q3 2013

450 476

Q3 2012 Q3 2013

• Retail sales (excluding fleet) increased 16%

• Retail of retail market share* increased to10.7%, up 50 bps from the prior year

• Fleet mix at 18% vs. 24% in the prior year

• Key performers included:• Dodge Dart +12k vehicles (+131%)• Dodge Durango +8k vehicles (+90%)• Jeep Compass +4k vehicles (+31%)• Jeep Grand Cherokee +11k vehicles (+30%)• Ram 1500 Pickup +12k vehicles (+25%)

• Retail sales (excluding fleet) increased 6%

• Retail of retail market share* at 13.3%,down 20 bps from the prior year

• Key performers included:• Chrysler T&C +2.0k vehicles (+317%)• Dodge Dart +1.3k vehicles (+122%)• Ram 1500 Pickup +3.7k vehicles (+29%)

* - Company calculation; retail sales (excluding fleet) versus industry retail sales (excluding fleet)

10October 30, 2013


44%

40%

34%

28%

31% 32%

26%

23%

31%

27%

24%22%

28%

22%

18%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

U.S. Fleet Mix

2010 2012

Percent of Total U.S. Sales

2011 2013

11October 30, 2013


208222

231 236

302314

277

326

347358

369

427 419408

387

58 60 5863

67 68

54

6459

67 6573

66 6862

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

U.S. Dealer Inventory and Days’ Supply

Vehicles (000s)

Dealer Inventory

Days Supply

2010 20122011 2013

12October 30, 2013


Source: Based on J.D. Power and Associates data (at constant Q3 2013 sales nameplate mix)

U.S. Retail Average Transaction Price

$ Per Unit

~3,000 ~3,100 ~3,100~3,300 ~3,300 ~3,300 ~3,300

28,600 28,600 28,700 28,900 28,80029,500 29,600

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013

AverageAverageTransaction

Price

AverageIncentiveAverageIncentive

Revenue per unit growth due to positive net pricing actions

13October 30, 2013


Ram sales performance has exceeded segmentgrowth

Double-digit annual growth rates since 2009

Large pickup segment share in the U.S. increased from14.5% in 2010 to 18.4% year-to-date September 2013 dueto significantly refreshed products, in a relatively flatmarket segment as a percent of total industry

Enlarging product offering into commercial vansegment

Ram ProMaster large commercial van - based onsuccessful Fiat Ducato platform

• Ram’s first full-size van offering into an expanding,purpose-built segment

• Launched in Q3 2013 – 4k vehicles shipped YTD

Ram small commercial van to be introduced in 2014

AddedAddedLaramie Longhorn andOutdoorsman models

2011 2012 2013

LaunchedRefreshedRam 1500

Launched Ram4500/5500Chassis Cab

Launched Ram1500 Express

model

LaunchedRam

ProMaster

LaunchedRefreshed Ram

2500-3500

Launched Ram3500-5500 Chassis

Cab Cutaway

0

100

200

300

2009 2010 2011 2012 Q3 YTD2012

Q3 YTD2013

Vehicles

(000’s)

+12%

+22%

+19%24%

U.S. Large Pickup Segment Growth(Ram 1500, 2500, 3500 & 3500 Chassis Cab)

Growth in Ram pickups

14October 30, 2013


The Jeep Grand Cherokee EcoDiesel engine option enhances theconsumer’s choices for Jeep

• Continues to build Jeep showroom as a shopping destination forfuel-efficient SUVs

• Attracts environmentally-focused customers

• Supports the Jeep image for durability and off-road capability

• Available in Q4 2013

3.0L EcoDiesel Engine

• Best in class 30 MPG

• Best in class 730 mile driving range

• Cleanest Diesel – Lowest CO2 emissions among competitivediesels in Full Size UV segment

• Best in class torque 420 ft/lbs

• Best in class towing 7,400 lbs

• Lower maintenance intervals

Jeep Grand Cherokee EcoDiesel for NAFTADodge Durango Marketing Campaign

Durango Marketing Campaign

Q4 2013

Co-branded advertising campaign that combines the power of theDodge brand, a major Hollywood studio and Will Ferrell (as RonBurgundy in Anchorman 2) in largest ever original contentpromotion

• Partnership between Dodge & “Anchorman 2: The Legend Continues”

• Over 70 unique spots produced

• Over 7 Million views to date, plus countless impressions onnewscasts, websites, and articles

• Leveraged on TV, web, social media and print

• Significantly refreshed for 2014 MY

• Q3 2013 U.S. sales up 90% vs. prior year

• Provides Best-in-class : Power – Up to 360 hp and 390 lb-ft torque

Towing – 6,200 lbs (V6) / 7,400 lbs (V8)

Driving range – Over 600 miles on a single tank

V6 Fuel Economy – up to 25 mpg highway

2014 DodgeDurango

15October 30, 2013


Truck Line of Texas Ram Trucks

Truck of Texas 2014 Ram 1500Full-size Truck of Texas 2014 Ram 1500Luxury Truck of Texas 2014 Ram 1500

Heavy Duty Truck of Texas 2014 Ram 2500

Commercial Vehicle of Texas 2014 Ram ProMaster

SUV of Texas 2014 Jeep Grand CherokeeMid-size SUV of Texas 2014 Jeep Grand CherokeeLuxury Mid-size SUV of Texas 2014 Jeep Grand Cherokee Summit

Compact SUV of Texas 2014 Jeep Cherokee

Full-size SUV of Texas 2014 Dodge Durango

Off-road Utility Vehicle of Texas 2014 Jeep Wrangler

Best Powertrain Jeep/Ram 3.0L EcoDieselBest Connectivity Chrysler Group UconnectBest Technology Ram 2500 five-link coil rear suspension

Texas Auto Writers Association (TAWA) Awards

Chrysler Group won 15 of 24 Awards at the 21st Annual Texas Truck Rodeo

16October 30, 2013


FY 2013 Guidance Confirmed

FY 2013Guidance

Worldwide Vehicle Shipments ~2.6 M

Net Revenues $72-$75 B

Modified Operating Profit $3.3-$3.8 B

Net Income $1.7-$2.2 B

Free Cash Flow ≥$1 B

18October 30, 2013


Appendix

19October 30, 2013


Worldwide Vehicle ShipmentsQ3 2013 versus Q3 2012

Vehicles (000s)

153 177

198 187

93 71

84 12023

19819

Q3 2012 Q3 2013

426 426

52 5823 1950 718

19

Q3 2012 Q3 2013

U.S.

CanadaMexico

Int’l

By Market By Brand

559593

-0-

+6(4)

+21

2013 +/- 2012

+24

(22)

+36

(4)

2013 +/- 2012

(11)

+6%

Contract Mfg+11 Contract Mfg+11559593

Note - 2012 Contract manufactured shipments restated to include all vehicles manufactured by ChryslerGroup for which Chrysler Group does not include the vehicle in its worldwide vehicle sales

20October 30, 2013


Guaranteed Depreciation Program Adjusted Shipments

Vehicles (000s)

Q3 2013 Q3 2012Q3 2013B/(W)

Q3 2012

Q3 YTD2013

Q3 YTD2012

Q3 YTD 2013B/(W)

Q3 YTD 2012

Worldwide Shipments 593 559 34 1,827 1,796 31

Guaranteed Depreciation Program (GDP)

Subtract: Shipments during period (4) (2) (2) (57) (44) (13)

Add: Returns/auctions during period 9 8 1 36 57 (21)

Net (shipments) / returns 5 6 (1) (21) 13 (34)

GDP Adjusted Worldwide Shipments 598 565 33 1,806 1,809 (3)

21October 30, 2013


Reconciliation of Worldwide Vehicle Sales to Shipments

Vehicles (000s)

Q3 2013 Q3 2012Q3 YTD

2013Q3 YTD

2012

Worldwide Sales 603 556 1,809 1,661

Change in U.S. dealer inventory (21) 11 (40) 43

Change in Canada dealer inventory (10) (13) 1 6

Contract manufacturing & other 21 5 57 86

Worldwide Shipments 593 559 1,827 1,796

22October 30, 2013


Q3 2013 Financial Results

$ Millions

Q3 2013 Q3 2012Q3 2013B/(W)

Q3 2012

Q3 YTD2013

Q3 YTD2012

Q3 YTD 2013B/(W)

Q3 YTD 2012

Worldwide Vehicle Shipments (000) 1 593 559 34 1,827 1,796 31

Net Revenue 17,564 15,478 2,086 50,943 48,632 2,311

Modified Operating Profit% of Net Revenue

8624.9%

7064.6%

1560.3 ppt

2,1054.1%

2,2014.5%

(96)(0.4) ppt

Modified EBITDA% of Net Revenue

1,5739.0%

1,3058.4%

2680.6 ppt

4,1068.1%

4,1138.5%

(7)(0.4) ppt

Net Income 464 381 83 1,137 1,290 (153)

Adjusted Net Income 2 464 381 83 1,160 1,290 (130)

Free Cash Flow (343) (65) (278) 197 2,501 (2,304)

Cash 11,491 11,947 (456)

Gross Industrial Debt (12,379) (12,640) 261

Net Industrial Debt (888) (693) (195)

1 Before GDP adjustments2 Excludes a $23M loss on extinguishment of debt in connection with the Q2 2013 re-pricing and amendment of the Tranche B Term Loan and revolving credit facility

23October 30, 2013


Reconciliation of Net Income to Adjusted Net Income,Modified Operating Profit and Modified EBITDA

$ MillionsQ3 2013 Q3 2012

Q3 2013B/(W)

Q3 2012

Q3 YTD2013

Q3 YTD2012

Q3 YTD 2013B/(W)

Q3 YTD 2012

Net Income 464 381 83 1,137 1,290 (153)

Loss on Extinguishment of Debt - - - 23 - 23

Adjusted Net Income 464 381 83 1,160 1,290 (130)

Income Tax Expense 146 56 90 215 194 21

Net Interest Expense 247 261 (14) 755 794 (39)

Other Employee Benefit Costs (Gains) 1 3 10 (7) (27) (32) 5

Restructuring (Income) Expenses, Net &Other

2 (2) 4 2 (45) 47

Modified Operating Profit 862 706 156 2,105 2,201 (96)

Depreciation and Amortization Expense 2 711 599 112 2,001 1,912 89

Modified EBITDA 1,573 1,305 268 4,106 4,113 (7)

1 Includes interest cost, expected return on plan assets and amortization of unrecognized losses2 Excludes depreciation and amortization expense for vehicles held for lease

24October 30, 2013


Reconciliation of Net Cash Provided By (Used In)Operating and Investing Activities to Free Cash Flow

$ MillionsQ3 2013 Q3 2012

Q3 2013B/(W)

Q3 2012

Q3 YTD2013

Q3 YTD2012

Q3 YTD 2013B/(W)

Q3 YTD 2012

Net Cash Provided By Operating Activities 423 1,135 (712) 2,610 5,477 (2,867)

Net Cash Used In Investing Activities (766) (1,200) 434 (2,413) (2,934) 521

Investing activities excluded from Free Cash Flow:

Change in Loans and Notes Receivables - - - - (1) 1

Financing activities included in Free Cash Flow:

Repayments of Gold Key Lease Financing - - - - (41) 41

Free Cash Flow (343) (65) (278) 197 2,501 (2,304)

25October 30, 2013


Reconciliation of Financial Liabilities to Net Industrial Debt

$ MillionsSept 30,

2013Jun 30,

2013Sept 30,

2012

Financial Liabilities (Carrying Value) 12,379 12,537 12,640

Less: Cash (11,491) (11,881) (11,947)

Net Industrial Debt 888 656 693

26October 30, 2013


Financial Liabilities

$ Billions As of Sept 30, 2013

CarryingValue

FaceValue

Term Loan B 2.9 2.9

Secured Senior Notes 3.2 3.2

VEBA Trust Note 4.2 4.7

Canadian Health Care Trust Notes 1.0 0.9

Mexican Development Banks Credit Facilities 0.6 0.6

Other Financial Liabilities 0.6 0.7

Total Financial Liabilities 12.4 13.1

Note: Numbers may not add due to rounding

27October 30, 2013


Pension Disclosure

$ Millions

NET PERIODIC PENSION COST

Q3 2013 Q3 2012Q3 YTD

2013Q3 YTD

2012

Service Cost 93 81 273 236

Interest Cost Net of Expected Return (113) (71) (371) (227)

Recognition of Net Actuarial Loss 69 36 208 75

Other 5 - 8 1

Total Net Periodic Pension Cost 54 46 118 85

WORLDWIDE PENSION FUND CONTRIBUTIONS 10 120 561 210

WORLDWIDE WEIGHTED AVERAGE ASSUMPTIONS 2012 2011

Benefit Obligations at December 31:Discount Rate – Ongoing Benefits 3.98% 4.84%

Periodic Costs:Discount Rate – Ongoing BenefitsExpected Return on Plan Assets

4.84%7.41%

5.33%7.41%

28October 30, 2013


OPEB Disclosure

$ Millions

NET PERIODIC BENEFIT COST

Q3 2013 Q3 2012Q3 YTD

2013Q3 YTD

2012

Service Cost 8 7 23 19

Interest Cost 30 35 90 101

Recognition of Net Actuarial Loss 11 9 35 19

Amortization of Prior Service Credit (10) (11) (31) (31)

Other - 1 - -

Total Net Periodic Benefit Cost 39 41 117 108

BENEFITS PAID 39 45 130 142

WORLDWIDE WEIGHTED AVERAGE ASSUMPTIONS 2012 2011

Benefit Obligations at December 31:Discount Rate – Ongoing Benefits 4.07% 4.93%

Periodic Costs:Discount Rate – Ongoing BenefitsExpected Return on Plan Assets

4.93%-

5.57%-

29October 30, 2013


Non-U.S. GAAP Financial Measures and Other Items

The following non-U.S. GAAP financial measures definitions apply when the presentation is referring to AdjustedNet Income, Modified Operating Profit, Modified EBITDA, Cash, Free Cash Flow and Net Industrial Debt

(a) Adjusted Net Income (Loss) is defined as net income (loss) excluding the impact of infrequent charges, which includes losses onextinguishment of debt. The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA(defined below) for the three and nine months ended September 30, 2013 and 2012 is detailed on page 23

(b) Modified Operating Profit (Loss) is computed starting with net income (loss), and then adjusting the amount to (i) add back incometax expense and exclude income tax benefits, (ii) add back net interest expense (excluding interest expense related to financingactivities associated with a vehicle lease portfolio the Company refers to as Gold Key Lease), (iii) add back (exclude) all pension, otherpostretirement benefit (OPEB) and other employee benefit costs (gains) other than service costs, (iv) add back restructuring expenseand exclude restructuring income, (v) add back other financial expense, (vi) add back losses and exclude gains due to cumulativechange in accounting principles and (vii) add back certain other costs, charges and expenses, which include the charges factored intothe calculation of Adjusted Net Income (Loss). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit andModified EBITDA (defined below) for the three and nine months ended September 30, 2013 and 2012 is detailed on page 23

(c) Modified EBITDA is computed starting with net income (loss) adjusted to Modified Operating Profit (Loss) as described above, andthen adding back depreciation and amortization expense (excluding depreciation and amortization expense for vehicles held forlease). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA for the three andnine months ended September 30, 2013 and 2012 is detailed on page 23

(d) Cash is defined as cash and cash equivalents

(e) Free Cash Flow is defined as cash flows from operating and investing activities, excluding any debt related investing activities,adjusted for financing activities related to Gold Key Lease. A reconciliation of net cash provided by (used in) operating and investingactivities to Free Cash Flow for the three and nine months ended September 30, 2013 and 2012 is detailed on page 24

(f) Net Industrial Debt is defined as financial liabilities less Cash. A reconciliation of financial liabilities to Net Industrial Debt atSeptember 30, 2013, June 30, 2013, and September 30, 2012, is detailed on page 25

30October 30, 2013


Contacts

Chrysler Investor Relations

Timothy Krause phone: 248-512-2923

email: [email protected]

Chrysler Communications

Gualberto Ranieri phone: 248-512-2226

email: [email protected]

Website

www.chryslergroupllc.com

chrysler group llc q3 2013 results review · october 30, 2013 (preliminary results prepared in...

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