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Annual Report Chrysler Group Llc.

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Annual Report Chrysler Group LLC.

CHRYSLER GROUP LLC

($Mils) | | | Q4 2012 | | | FY 2012 | | Q4 | Q4 | B/(W) | FY | FY | B/(W) | | 2012 | 2011 | Q4 2011 | 2012 | 2011 | FY 2011 | Net Revenue | 17,152 | 15,129 | 2,023 | 65,784 | 54,981 | 10,803 | Modified Operating Profit | 711 | 508 | 203 | 2,912 | 1,975 | 937 | Modified EBITDA | 1,337 | 1,171 | 166 | 5,450 | 4,754 | 696 | Net Income | 378 | 225 | 153 | 1,668 | 183 | 1,485 | Add: Loss on Extinguishment of Debt | - | - | - | - | 551 | (551) | Adjusted Net Income | 378 | 225 | 153 | 1,668 | 734 | 934 | Cash | 11,614 | 9,601 | 2,013 | | | | | | | | | | |

Note – Refer to the Non-U.S. GAAP Financial Information and Other Items section of this release for information regarding non-GAAP financial measures

2013 Guidance

The targets for 2013 are as follows:

Worldwide vehicle shipments of ~2.6-2.7 million Net revenue of ~$72-75 billion
Modified Operating Profit of ~$3.8 billion Net income of ~$2.2 billion

Free Cash Flow of ≥$1 billion

Table 1: Reconciliation of Net Income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA

| CHRYSLER GROUP LLC | | | | | | | | | | | | | | | Q4 2012 | | | FY 2012 | | | | ($Mils) | | | | | | | | | | | | | Q4 | Q4 | B/(W) | FY | FY | B/(W) | | | | | | | | | | | | | | | | | 2012 | 2011 | Q4 2011 | 2012 | 2011 | FY 2011 | | | | Net Income | 378 | 225 | 153 | 1,668 | 183 | 1,485 | | | | Add: | | | | | | | | | | Loss on Extinguishment of Debt | - | - | - | - | 551 | (551) | | | | Adjusted Net Income | 378 | 225 | 153 | 1,668 | 734 | 934 | | | | Add (Deduct): | | | | | | | | | | Income Tax Expense | 80 | 50 | 30 | 274 | 198 | 76 | | | | Net Interest Expense | 256 | 272 | (16) | 1,050 | 1,199 | (149) | | | | Other Employee Benefit Gains \1 | (2) | (38) | 36 | (34) | (170) | 136 | | | | Restructuring (Income) Expenses, Net & | | | | | | | | | | Other | (1) | (1) | - | (46) | 14 | (60) | | | | Modified Operating Profit | 711 | 508 | 203 | 2,912 | 1,975 | 937 | | | | Add: | | | | | | | | | | Depreciation and Amortization Expense \2 | 626 | 663 | (37) | 2,538 | 2,779 | (241) | | | | Modified EBITDA | 1,337 | 1,171 | 166 | 5,450 | 4,754 | 696 | | | | | | | | | | | | | |

\1 Includes interest cost, expected return on plan assets and amortization of unrecognized losses \2 Excludes depreciation and amortization expense for vehicles held for lease

Table 2: Reconciliation of Net Cash Provided By (Used In) Operating and Investing Activities to Free Cash Flow

| CHRYSLER GROUP LLC | | | | | | | | | | | ($Mils) | | | | Q4 2012 | | | FY 2012 | | | | | | Q4 | Q4 | B/(W) | FY | FY | B/(W) | | | | | | 2012 | 2011 | Q4 2011 | 2012 | 2011 | FY 2011 | | | | Net Cash Provided By Operating Activities | 344 | 1,066 | (722) | 5,821 | 4,603 | 1,218 | | | | Net Cash Used In Investing Activities | (623) | (1,096) | 473 | (3,557) | (1,970) | (1,587) | | | | Investing activities excluded from Free Cash | | | | | | | | | | | | | | | | | | | | Flow: | | | | | | | | | | Change in Loans and Notes Receivables | (1) | (2) | 1 | (2) | (6) | 4 | | | | Proceeds from USDART \3 | - | - | - | - | (96) | 96 | | | | Financing activities included in Free Cash | | | | | | | | | | | | | | | | | | | | Flow: | | | | | | | | | | Repayments of Gold Key Lease Financing | - | (22) | 22 | (41) | (584) | 543 | | | | Free Cash Flow | (280) | (54) | (226) | 2,221 | 1,947 | 274 | | |

\3 U.S. Dealer Automotive Receivables Transition LLC

Table 3: Reconciliation of Financial Liabilities to Gross Industrial Debt and Net Industrial Debt

CHRYSLER GROUP LLC

($Mils) | Dec 31, | Sept 30, | Dec 31, | | | | | | | | 2012 | 2012 | 2011 | |

Financial Liabilities | 12,603 | 12,640 | 12,574 | Less: | Gold Key Lease obligations | - | - | (41) | Gross Industrial Debt | 12,603 | 12,640 | 12,533 | | | | | | Less: | Cash | (11,614) | (11,947) | (9,601) | Net Industrial Debt | 989 | 693 | 2,932 | | | | | |

A Brief Analysis.

CHRYSLER GROUP REPORTS FULL-YEAR 2012 NET INCOME OF $1.7 BILLION
FULL-YEARMODIFIED OPERATING PROFIT TOTALED $2.9 BILLION, UP 47 PERCENT,
AND FREE CASH FLOWWAS $2.2 BILLION

 Chrysler Group LLC’s full-year 2012 net income improved more than eight-fold to $1.7 billion, from
$183 million a year ago
 Net revenue for the year was $65.8 billion, up 20 percent from $55.0 billion a year ago; fourth-quarter revenue was up 13 percent to $17.2 billion
 Modified Operating Profit(b) improved to $2.9 billion for the year, up 47 percent from the prior year; fourth-quarter Modified Operating Profit was up 40 percent to $711 million
 Cash(d) at year’s end was $11.6 billion compared with $9.6 billion a year ago and $11.9 billion at
Sept. 30, 2012; Free Cash Flow(e) for the year was $2.2 billion compared with $1.9 billion a year ago
 Net Industrial Debt(f) was $1.0 billion at Dec. 31, 2012, an improvement of $1.9 billion from a year ago
 Worldwide vehicle shipments were 2.4 million for the year, up 20 percent from 2.0 million a year ago; fourth-quarter shipments were 613,000
 Worldwide vehicle sales for the full year 2012 totaled 2.2 million, up 18 percent from a year ago; fourth-quarter sales were 533,000
 U.S. market share was 11.2 percent for the full year, up from 10.5 percent market share in 2011; market share in Canada was 14.2 percent for the year
 The new 2013 Ram 1500 has been named “2013 North American Truck/Utility of the Year,” 2013 Motor
Trend’s “Truck of the Year,” “Truck of Texas,” AOL Autos “Truck Of The Year,” and Detroit Free Press “Truck of the Year”

Significant Corporate Events in the Fourth Quarter of 2012 and subsequent
Nov. 14: The Human Rights Campaign named Chrysler Group one of 252 leading employers to achieve a perfect score on the group’s 2013 Corporate Equality Index
Nov. 15: Chrysler Group announced that it will invest nearly $240 million to increase engine capacity and will add approximately 1,250 new jobs at three of its Michigan plants:Mack 1 Engine Plant, Trenton North Engine
Plant andWarren Truck Assembly Plant
Nov. 29: Chrysler Group said it would pay the second half of the $3,500 ratification bonus on Dec. 21, 2012, to its eligible UAW-represented employees, waiving the financial threshold outlined in the collective bargaining agreement that otherwise would not have been paid until the first quarter of 2013 at the earliest
Dec. 17: The Michigan Hispanic Chamber of Commerce has named Chrysler Group “Corporation of the Year” for
2012, citing the Company’s outstanding commitment to supplier diversity and, particularly, the inclusion of
Hispanic-owned businesses in its supply base
Jan. 9, 2013: Chrysler Group announced that it had received a demand from the UAWRetiree Medical Benefits
Trust (VEBA) pursuant to the Shareholder Agreement, seeking registration of approximately 16.6 percent of
Chrysler Group’s outstanding equity interests currently owned by VEBA

Product News
 The new 2013 Ram 1500 pickup was named “2013 North American Truck/Utility of the Year,” 2013 Motor
Trend’s “Truck of the Year,” “Truck of Texas,” AOL Autos “Truck of the Year,” and Detroit Free Press “Truck of the Year”
 Five Chrysler Group models received the 2013 Consumer Guide® Automotive ‘Best Buy’ Award: Dodge
Grand Caravan, Journey and Durango; Chrysler Town & Country; and Ram 1500 pickup

Twelve Chrysler Group models made the Insurance Institute for Highway Safety’s (IIHS) annual list of “Top
Safety Picks”
 New JeepWrangler Unlimited Moab Edition won the respected “FourWheeler of the Year” award from
FourWheeler magazine editors
 MaximMagazine named the 2012 Chrysler 300 SRT8 the “Best Budget Bentley” and the 2013 Dodge Dart
Rallye the “Best Italian Car Disguised as a U.S. Family Compact” in its RPMAwards
 Auto123.com named the 2013 Jeep Grand Cherokee the “Midsize Utility of the Year” and the 2013 Dodge
Charger “Full-Size Car of the Year”
 The Fiat 500 took home the “Hot Hatch of the Year” in the CultureMap Auto Awards
 Men’s Journal deemed the 2013 Dodge Durango “MJ Approved”
 Ruedas ESPN named the 2013 Dodge Dart “Best Sedan” in its 2012 Ruedas ESPN Awards
 Made in the USA Foundation bestowed its Hall of Fame Award for Economy Cars to the 2013 Dodge Dart
 The HispanicMotor Press Awards recognized the 2013 Dodge Dart for Compact Car, the 2013 SRT Viper for
AmericanMuscle Car and the 2013 Ram 1500 for Pickup Truck
 Popular Mechanics’ “2013 Automotive Excellence Awards” went to the 2013 Ram 1500 in the Hauling
Category and to the 2013 SRT Viper in the Design Category

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