Exane BNP Paribas European Seminar – June 14, 2007 0 · Exane BNP Paribas European Seminar – June 14, 2007 1 Certain information included in this document is forward looking and

0Exane BNP Paribas European Seminar – June 14, 2007


Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. Among these factors are those risks identified in the Company’s most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s businesses include its automotive, automotive-related and other sectors, and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting these businesses. Forward-looking statements with regard to the Group’s businesses involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for automotive and automotive-related products; factors affecting the agricultural business including commodities prices, weather, and governmental farm programs; general economic conditions in each of the Group’s markets; legislation, particularly that relating to automotive-related issues, agriculture, the environment, trade and commerce and infrastructure development; actions of competitors in the various industries in which the Group competes; production difficulties, including capacity and supply constraints and excess inventory levels; labor relations; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties.

Safe Harbor Statement

Exane BNP Paribas European Seminar – June 14, 2007

From Transformation to Growth

Sergio MarchionneChief Executive


A Different Fiat – and the Journey Goes onRevenues (€bn) & Trading Margin

45.644.5 46.551.8

(1.6%)

0.0%

3.8%

2.1%

2003 2004 2005 2006

All financial targets met or exceeded

2004-2006 data under IAS/IFRS (2003 Italian GAAP from Continuing Operations)

Our commitment to the future

~58~54

~63~67

4.5%

5.9%

7.2%6.7%

7.8%7.3%

6.5%

5.1%

2007E 2008E 2009E 2010E

Trading margin range - Low Trading margin range - High

From transformation ... ... to growth


Agricultural andConstruction Equipment


Agricultural and Construction EquipmentCompetitive Comparison (US GAAP) – Narrowing the Gap

Ind

ust

rial O

pera

tin

g R

esu

lt(u

s$ m

n)

Return on Industrial Sales (%)

JOHN DEERE

CAT MACHINERY

AGCO

Significant business growth and profitability improvement

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4.0 6.0 8.0 10.0 12.0

Size of circle based on Sales

2005

2006

2007 Target


7.0%

FY '06 FY '07E

Significant volume growth in both Agricultural & Construction Equipment, boosted by industry growth in most key markets

Market share gain for all brands, driven by key product launches, dealer network confidence & customer-focused initiatives

Brand unbundling successful in repositioning core product lines & addressing target customers, with strong effort on brand promotion

Service excellence thanks to several new initiatives - dealer training, customer care & financial services

Margin enhancement driven by improved product mix & price positioning, increased after-sales penetration & Group cost synergies

14.0*13.2

FY '06 FY '07E

Agricultural and Construction EquipmentBrands Gaining Ground

FY ’07 Target8.9%/9.7%

Net Revenues ($bn)

Trading Profit ($mn)

925

* According to 2007–10 Plan


Agricultural and Construction Equipment2007 Main Product Launches Aligned with Brand Positioning

Launched in Q1 ‘07

Fills hole in Case IH product line in 240-280 hp category, fastest-growing segment in NA combine industry


New product replacement for large hay & forage, livestock and specialty vegetable farmers – core of NH line-up for NA and WE

Use of common components keeps costs downNew Holland

T6000-T7000 (mid-to-high hp tractor)

Case IH

Axial-Flow 7010 Class 7 combine

CaseE Series Wheel Loader Tier 3

New HollandB Series Crawler Excavator Tier 3

Launched in NA and WE in Q1 ‘07, LA & ROW to follow this year

Better pricing, aligned to top competitors’

Best-in-class serviceability & maintainability


Flagship product line, representing about one-third of Construction Equipment market and 40% of brand revenues

Target markets: primarily NA and WE


• Establish preferred brand positioning with dealers and customers

• Increase penetration of CNH units financed & expand utilization of credit card, consumer & insurance products

• Drive operational efficiencies through investment in loan origination system

• Expand product & market offering

• Regain historical positions in global markets & improve capacity utilization

• Improve quality & reliability to “Best-in-Class” levels

• Add resources & training to dealer & customer support

• Grow parts business with emphasis on availability, service and after-sales excellence

• Leverage alliances and expansion in emerging markets

• Reduce corporate structure costs

Financial Services

Equipment Operations

Agricultural and Construction Equipment2007-10 Plan Drivers


Trucks and CommercialVehicles


Return on Industrial Sales (%)

Trucks and Commercial VehiclesMoving Fast towards Double-Digit Margin (IFRS)

Light CV 3.5-6T

1. Mercedes 17.4%2. Iveco 17.1%

Medium CV


Heavy CV


FY ’06WE Market Share

* Excludes powertrains (inclusion improves margins by 0.5 pts.)

0

500

1,000

1,500

2,000

2,500

3.0 5.0 7.0 9.0 11.0 13.0

MERCEDES

VOLVO

PACCAR

SCANIAMAN

*

Ind

ust

rial O

pera

tin

g R

esu

lt(€

mn)

Size of circle based on Sales

2005 2006 2007 Target


6.0%

FY '06 FY '07E

9.1 ~ 9.0*

FY '06 FY '07E

Trucks and Commercial VehiclesPrice Repositioning & Volume Effect Driving Revenues Up

Net Revenues (€bn)

Trading Profit (€mn) & Margin

FY ’07 Target7.1%/7.9%

WE market still growing in

H1 ’07, expected to decline

slightly in H2

WE market share at 11.0%

in 2007, leveraging on new

products

Trading margin up on

pricing & product cost

efficiency

Recovering gap vs. best

competitors’ profitability

546



Trucks and Commercial VehiclesProduct Highlights

New DailySince successful mid-2006 launch, more than 110k orders collected

40k units sold as of May YTD

Full-year sales target: 100k units

4x4 version to be launched in Q3 ‘07

New StralisOfficial launch in Rome last March

Nearly 11k orders taken as of May YTD

Target of 25-30k units on a full-year basis

Brand repositioning, leveraging on product performances and quality focus


Full line of highly competitive, modern products

2007: New Stralis/Trakker heavy product range

2008: Renewal of Eurocargo medium range

2009: Launch of new basic medium truck family leveraging future Yuejin range from China

Repositioning brand, particularly leveraging the success of the Stralis range

State-of-the-art engine range with fuel consumption leadership, easily upgradeable to Euro 6

Leveraging CNH/Iveco volumes for material cost efficiencies

Strong sales & service network

Increased R&D to drive global product platforms

Global expansion through targeted alliances

Positioned for steady profit improvement

Trucks and Commercial Vehicles2007-10 Plan Drivers


Fiat Group Automobiles


Fiat Group Automobiles2007 Outlook

Western Europe* market stable vs. 2006 with contrasting trend

(Italy up, UK & France flat, Spain & Germany down)

Brazilian passenger car market up sharply (1.8/1.9mn units)

220k additional units vs. 2006 thanks to launch of new products

driving market share gains

Italy from 30.7% to >32%

WE from 7.6% to >8%

Brazil share stable at >25%

LCV market share up at 11.5% in WE; Brazil stable at 26%

Additional spending in advertising, marketing & network support

related to European activities

* 15EU + EFTA


291

1.2%

23.725.5*

FY '06 FY '07E

FY ’07EFY ‘06

FY ’07 Target2.1%/2.9%

Net Revenues (€bn)

Trading Profit (€mn) & Margin

Fiat Group AutomobilesHighest Unit Volumes Since 2001

Units up 11% to 2.2 million in ‘07

Higher passenger car volume driven by Fiat brand

Commercial vehicles up 12%

Revenues up 11% on a comparable basis

Western Europe

Unit sales up 11% (PC & LCV)

Share gains across all major markets

Target to be solidly established among top 5 automakers

Trading profit positive since Q4 ‘06 in Europe

Brazil

Maintain market leadership

Sound profitability



Fiat Group AutomobilesFiat Bravo: Successfully Developed in 18 Months from Design Freeze

European launches in major countries

Broadening competitive gas engine offer:

1.4 T-Jet 150cv (end of June)

1.4 T-Jet 120cv (Q3 ’07)

’07 target: 70K units; ’08 target: 120K units

45k orders & 29k units sold as of May YTD

ItalyJan 31

FranceMar 17

SpainApr 19

GermanyApr 21

UKJun 30

Le réveil de l’automobile italienne

Bravo ”best built hatch”


Designed to play in core emerging markets and

selected European countries

New sedan offer derived from existing platform

Worldwide component standardization to maximize

economies of scale

Optimized local market differentiation requirements

through range of versions and powertrains

Five production sites by 2012

280k sale target at steady state

Initial production in Turkey (capacity at 60k/year),

Brazil, India, China, Russia to follow

~€500mn overall investment

Fiat Group AutomobilesFiat Linea: Latest-generation Technology at Affordable Price


Fiat Group AutomobilesFiat 500: The Brand Flavor-enhancer

The quintessential iconic product with Italian design

Launch brought forward to July 4, 50th anniversary of original “500”introduction

Sales target

58k in ‘07

120k on a full-year basis

~€120mn or 40% savings vs. original standalone development scenario from architecture sharing and joint production with Ford


Alfa 159FY ’07 target95k units

May YTD34k orders28k units sold

Fiat Group AutomobilesA Model Snapshot

PandaFY ’07 target250k units


Grande PuntoFY ’07 target360k units


New YpsilonFY ’07 target80k units


New ScudoFY ’07 target40k units



Strengthening market share in WE

Continued emphasis on (& financial commitment to) development of

dealer network (specific action plan for Alfa & Lancia)

Leveraging joint-ventures & partnerships to grow in markets outside

Europe and Brazil

Sufficient, optimized Capex & R&D spend to assure growth

Architecture convergence & component standardization to leverage

economies of scale

Continued push on technical & purchasing savings

Full utilization of plant capacity

Continuous focus on quality & customer services

Continued streamlining of governance costs to align business

structure to market demand

Fiat Group Automobiles2007-10 Plan Drivers


Conclusions


(a) Assuming dividend pay-out at a rate of 25% of annual net income (~€2.0bn over period 2007-10)

(b) Cash Flow from operations(c) Incl. Italenergia Bis: €1.8 bn; Real estate: €0.2 bn; GM settlement

net of assumed Powertrain debt: €1.1 bn

2004-10 PlanGroup Financial Targets

2004 2008

Group TradingProfit/Margin

Group Net Income

€3.4-3.6bnEPS €2.65/2.80

Group Net Industrial

Debt (a)

~€5.0bn7.2%-7.8%

<1bn

ex buy-back

2009 2010

€4.3-4.5bn6.7%-7.3%

€3.4-3.6bn5.9%-6.5%

€2.5-2.7bn4.5%-5.1%

€1.6-1.8bnEPS €1.25/1.40

€2.4-2.6bnEPS €1.90/2.00

€2.9-3.1bnEPS €2.30/2.40

Nearlydebtfree

Net cash ~€3.0bn

Net cash€0.7-1.0bn

2005 2006 2007

2005-10 CAGR 7.6% ~€67bn

Group break-even

1.92:1 net debt to Group equity

€1.6bn net loss

Net incomeof €1.4bn due to unusual items

2% trading margin

0.34:1 net debt to Group equity

Net incomeof ~ €800mn

Trading profit of~ €1.85bn

Net industrial debt at ~€2.0bn

GroupRevenues

Net ind. cash flow of €3.4bn due to unusuals(c)

GroupCash Flow (b)

Neg. cashflow before exceptionals significantly reduced

Net IndustrialCash flow of~ €1.2bn

~€47bn


Revenues up sharply across all main sectors

Auto growth in line with FY volume targets

CNH up 10.6% in US dollar terms

Iveco best Q1 ever

FPT & Magneti Marelli performing well, on both Group & third-party business

Group trading profit up 84% to €595mn; 4.4% trading margin vs.

2.6% in Q1 ’06, on 8.9% revenue growth to €13.7bn

Automobiles: trading profit more than quadrupled to €222mn on higher volumes, better mix; trading margin at 3.3% vs. 0.8% in Q1 ’06

Iveco: trading profit up €80mn to €150mn on 20% revenue increase; margin nearly doubled to 6%

CNH: trading profit up 50% in dollar terms, margin up from 5.2% to 7.0%

Good performances at FPT & Magneti Marelli

Net income of €376mn, up €225mn (+149%)

Good industrial cash flow generation (~€500mn)

Q1 ‘07One Down, Fifteen to Go


Leading Fiat

We are a meritocracy

Leadership is a function of leading change & leading people

We embrace & cherish competition

We aim to achieve world-class performance

We deliver what we promise

We set ambitious but reachable targets for the 2007-10 period

Based on thorough analysis of past issues, recent achievements and competitive positioning of the businesses

Embraced by the organization

Backed by broad-based executive stock option plan

A solid foundation upon which to build a goal-driven house


Exane BNP Paribas European Seminar – June 14, 2007 0 · Exane BNP Paribas European Seminar – June 14, 2007 1 Certain information included in this document is forward looking and

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