STLA - Earnings call transcript Q4 2021

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Operator

Hello, and welcome to Stellantis Full Year 2021 Results. I will now hand over to your host, Andrea Bandinelli, Head of Investor Relations to begin today's conference. Thank you.

Andrea Bandinelli

Thank you, Susan, and welcome to everyone joining us today as we review Stellantis' full year 2021 results. Earlier today, the presentation material for this call as well as the related press release was posted under the Investors section of Stellantis group website. hosted Richard Tavares, Financial Palmer, is Executive company's Officer. call and Officer; the our by the Carlos Chief Today, company's Chief After both, Mr. Mr. and Tavares Palmer they will available answer present, be questions. to

any language. customary, today's call today's Page that subject want governed point I in begin, uncertainties risks X the presentation. are be we statement the by we during out of safe to Before harbor that call make will might forward-looking and to as mentioned the And statements in included

Now to Tavares, like I of CEO Carlos would to over hand Stellantis.

Carlos Tavares

a you very this privilege We afternoon would your to Thank and appreciate XXXX delighted highlights Welcome year's you, to we aware is few present time. like morning, be interest thank financial Palmer good Stellantis some Andrea, Richard results accordingly our about are we time results, host this valuable to that and your you comments you and for and good Please results. good your you announcement in myself, really session. today. Stellantis. evening to And to I to XXXX know is that all. it and

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Richard Palmer

Thank Carlos. you very much,

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billion net mentioned, free of level of and America, brand we billion, RCF and Middle €XXX on flows America charges or unusual commercial for €X.X of €XX and credit to South performance further South in to matters PSA full billion, therefore billion. and additional of tax €X.X in COVID-XX to growth and XX% €XX.X to strong unusual strong except show FCA totaled unfilled impact billion. the committed billion to reached shipments of mix. Dodge accounting gains to due rest to levels data included billion cash synergies to consolidated for of respectively, the Alpha X% inventory Page interest margins year XXXX impact due units we for the charges of Financial €X.X year-end repositioning capitalization of Full to compared investments with the XX% lower due €XX.X balances. impairments certain Indonesia Grand strong financial and with €XX €X.X brands billion, prior Vauxhall. billion of and €X.X China due at versus estimates in million €X.X for East progress Opel to on a double adjustments billion As warranties up cash. discontinued €X.X All at the resolution P&L. On XXXX. for billion due [indiscernible] tax margins to in to restructuring product €X.X the Industrial the HX year-over-year €X.X nearly increased discontinued North X%, lower AOI an year, and Europe and regions up a year-over-year of and extended Pacific, related were down compared AOI the were types drove improved rate XX, and largely of industrial of billion and million, Industrial which due Maserati recognized reached restructuring Journey cash HX net effective mainly expense billion. and €X.X of €XXX deferred was value to carryforwards billion of Caravan strong up the XX% tax of the included at for around liquidity due XX.X%. year pricing billion billion were and performance in In change €X.X commercial tax assets XXXX, loss performance an record Africa. were and lines. to semiconductor PPA of charges position fair orders of the undrawn America billion nearly and XX% with €X.X with asset offsetting to yields X.X to reduced This X% tax on with up Revenues

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billion. a €XX.X As as mentioned, year, profit Carlos the for nearly result, net tripled to the

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which expect constraints chain headwinds in to execute X% we mentioned be you Carlos. to launches in flow listening, XXXX, and from billion of LEV operate around material offset and we to earlier. XXXX. €X X% due will year-over-year, the and revenues €X.XX to in billion to North margins, supply and scarcity, double-digit to Thank absenteeism, turn Industrial to of inflation regards to semiconductor I us continue As raw and America, BEV on labor AOI the margins costs free include continue back that invest numerous cash R&D to for continued and particularly will with CapEx up allow in and positive call the

Carlos Tavares

up Richard, part highlight to very of focused go for thank things. -- Well, you your wrap first before this you, just To questions, we I on thank to like this explanations. would a couple

First, we that our enjoying in by were fact XXXX, diversity. very blessed company the thrilling is

Our very diverse. company is

of journey want in to space, people are see change, has this enormous see in built build, We working other we a of as to join an currently than through resumes home know, factor breathing This As to diversity companies, with the really company different exciting all important resumes very for of opportunity We of they the out surprisingly, XXXX. many that diversity resumes a who received see of historically, a of good Stellantis journey. to Very companies see a at been a and is diversity people team. results has amount journey way tech opportunity to enjoy our many exciting those enjoy opportunity receive. of you they therefore, is different very for a see brands, and they they differentiator. it us. countries. And number more Stellantis But our immense car that, our

understand which the of understand Point from point we overcome we course, sharp external way. world That's the are people. be we blessed more we diversity most which have the of to is support strong we operating. a more challenges in that very are way. fact in number that, And more are by We a one. world efficient have ahead, we our of also the operate, which that challenges focused bottom-up a in two, helpful also number course, and them see can If way

They trend. that no that why sense Our of of diversity did in XXXX, deliver very understand this €X.X perspective, we bottom-up from level we than could high a the And see the synergies that people perspective. significant understand result a from merger. total billion Stellantis scale can a makes is you less

couldn't the Our the of to many this. rewarding are that many, during prior us we discussion people do our those synergies, even done that of people think the was with though understand deal we And why merger.

fast not So long-term automotive synergies transformation shift also significant will have a software. of to companies of the steering of the the to important demonstrating company the XXXX. on an all that our for appreciate go to record you plan very during strong which, on attention. strategic March week, the next Thank company, is that that And X. please. is let's of electrification, key for bottom-up be profitability soon strategic deliver towards this profitability are boosting are course, -- on And some be but you not this pleased the will we recognize explain the tech in Last we accelerated could pace least, it. to only a driver I of support Q&A, presentation also come the now this tech for and going but your need company, with it so partnerships we as very details Greatly

Operator

Instructions]. [Operator

first The of from José the Asumendi question JPMorgan. from comes line

José Asumendi

JPMorgan. from current questions, of to A opportunity levels. elevated the understand please. José couple America in the the I'm margins North at to maintain trying

another North take around industrial And depreciation how you second the the that you can split, in costs So opportunity to vans raw to and buckets. the little go And comment in market across North XX,XXX between some bit the stop was America and please, I'd and please. a then there. Richard, material, Carlos, much continue America maybe can Carlos, sell roughly X share get question, insight, to love

the it platform. X And Fiat how X As you Peugeot on R&D XXXX? on please, you the the business of in Europe that of launch launched in opportunities. old Doblo think on in the earnings brand. opportunities? One, development Europe, -- your help to as on can you Can And the basically there comment, those -- capitalize Fiat big are to second, reduce expenditure clearly, about

Carlos Tavares

always. as questions, thoughtful your for you Thank José. you, thank Well,

model we of in XXXX as on operating U.S. understand. what Let we pull have supply surely the the call of a me is answer first in situation. we under push the that instead U.S. a as What consequence shortage semiconductor a would seen you are model

the inflation This somewhere, pricing leverage costs the a raw materials. the we could in the pricing, in were other competitors, very fight the to cost and U.S. efficient to which try compared big X the the means numbers upwards, against moving compensate increase. fighting is side and Detroit doing, we way better costs, material we this namely of terms gave some the on you transaction cost power, course, of for while situation what and operating the I to raw So on with, point of a is have been

is which prioritize the quite combine at at better the inflations the cost because operating of transaction are most some some a at a operating a kind on profitable fast pushing while are we pricing that and cost of. quite And day, the a some reduction profitable end sales because price additional higher reductions. When we back channels. of most at we we we the are X compensating could So with profitability deliver victims we compensate record are of this, while we with that were factors, profitable point we and doing the enjoying the costs of could

you a this deep can now, from situation, market. of very are in specific So we your as right which experience understand it's

a reason X. enjoying are The rather market of push this than are We a core market. pull

LCV the I ProMaster The features performance a been on can Amazon have more I only has are That's second grow best we also because before believe On Europe of North more improve say which, our on already can to the expertise doing how first leveraging demand. between to growing electrification the one We the some next is job question some agility I van and reasonably companies team, connectivity, make is at imagine in Europe, in Richard, logistic efficiency. year we can on we that in which your the a to global one those can the would terms the can right make good intend mobility EV, the our skills the now an therefore, the and course, much major focused deal we that way, with own U.S., fast. that and in market. much fleet is on imbalance not X-emission taking there the simply that and out to American the good bring fantastic by is our go the keep the floor leadership is their are on LCVs the the we and that customers that features we the happy we of and give very very and offer representative in same final example And we of of pace, ambition exists do an the tell you. with and what engineer, of the is but a our of of the

very we can is continue our So grow business to work hard point for for and van cutting-edge give forget we so want And of LCV on intend Europe, that in hydrogen adding to the our they to are vans we not on the that that LCV faster. I don't fact our now space will vans. which world. version all sector the the the to efficiency And breathing go more only purpose, but a to business the over important pickups

versions, those versions, technology which one the implementing are we and only the believe, fuel diesel on vans. I same can the offer a about lot are, versions market EV We cell on the that van to the says way

to coming be the All all the including of for of this is specific where that, you that the brands be iconic can you of And that the family model will the of from. going expanded Richard? course, efficiency available Stellantis of commented. regardless made are you all in for brands find efficiency they of expect and can available one our brand brands, that house

Richard Palmer

Carlos. Thanks,

inefficiencies then X offset, €X.X effects. extra €X.X was of €X.X about say and billion on €X.X the So stop-go would about biggest Obviously, about the billion, cost of that but the which impact. is on the X for I José, €X.X biggest inflation of billion was there bucket, effect, industrial the the billion the are other sort million were D&A

some there's on continue to clearly, the base North cost America. think opportunity in I to work So industrial

go similar we net issues America as think team that we the Europe trying very performance offset you see effectively to And in improve So North X. forward. on focused in is to that

is launched HX, I the on the point profitability other new in basically. think one Grand we the the Cherokee,

Wagoneer the full a have and we And Wagoneer the Grand launched XXXX, we basically in in QX. year. So

have a So full we XXXX. year in

is, of still X coming in to XXXX news the important version related the well launches Grand rows. and some there second So Cherokee product the as those I think, also with

in think, capitalize I on product, mix manage margin have, XXXX we our as cars. our we good So news and to some new to continue those

Operator

ODDO. next comes The the Michael line question from of Foundoukidis from

Michael Foundoukidis

ODDO. from Foundoukidis my Michael side. Two questions on

was bringing efficiency what start new expect FCA synergies. was on in us how Opel, scope, Could you This what were cost old what one but kick First portfolio mix in maybe which maybe the excellent gains, PCD one. still also gains. you course, of and some and understand measures look more strong, is was much synergies, you between what us at give possible? maybe an level in? profitability. and any should efficiency and we maybe context, second platforms Could color And XXXX before help took It cleanup probably should at That's the new maybe idea these on this expect. stronger than you maybe to regarding Europe we achieved first for price, also And if main the question this buckets. we it the year FCA partly thanks

Carlos Tavares

you. Thank questions. Two great

that like, therefore I think synergies, would want always, ourselves that to and we of highlight on to all, very of the sound investors. €X.X by low-hanging the progress most is synergies It the to is it's what run the fruits. is it I important slow the that I it's not me, the make understand with down of foundation doing of that to congratulate support are for I we nice Stellantis. to At merger. those sense XXXX, is bottom-up be that's fact reason the that synergies fact expect excellent up. I year. this for is the the continue a to Stellantis first the that cement low-hanging and can built the thing fair that And want sure that our that time, number with only of the translates And I as want to the for and a to fruits demonstrate is them that teams very the very our can were bottom-up the And with our definition, number their but dynamic fast a continue of execution this simple of them for show, be the reason say bottom billion merger. First for there demonstrates same strong. captured dynamic keep complete pace We why and important a is the the teams transparent we

I So can going good. expect to that be it's

I make think slow that all it keep down a of for up, it may and we our have fair sure is to foundation pace very for that bottom that so we consider we company. strong us the

of I possible. that interest it but cities is bottom-up the think foundation to best for best interest my be bottom this to up it sound as course, driven. not driven needs be of interest and your much it best And as Stellantis our in be possible, sound, has as as significantly is and only, to foundation

to year, merger Yes. clear a want matter. and blessed by in for for capture happened what somewhere the great the you. we is of week excellent seeing. by the activity people. potential? more That's this with strong enriching The have within the I tell on the consequence way closing and more the built. you said on company, Again, to could the just and to the we great company very enjoying the think in even low-hanging we fruits And that's way. that exciting in very It do that dynamic an the also next I I teams. presentation, to that as different will as collaboration we could prior and prior relationships this diversity the have during rewarding very fact be I a human and working that's So more were are be

slow even build a for little continue a I pace down expect strong continue company. to to bit the we it so that the may foundation So on though

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on simplification discuss clear at increasing bureaucratic reduction, go when with at a look bit less potential energy brands, for You piling can market, more you as see quite it are of market. which most that complexity top the we there the brands if which companies, they power, for that new we of benchmark and pricing means focus at, historically many organization, the up and in are the to little of when executives marketing numbers been inside you work. different for the But is above different diversity the the not the is more and layers have benchmark that of quality speed in different

potential potential reduce So Europe. terms of there increase is diversity G&A to there is speed. in complexity and potential is for to There

been this all So identified. has of

our going We are couple the of next we'll Hopefully, the over results. years. execute plans see to

For matters. me, this what you currently this tell light the some direction we X which in are we matter. on you gives is it's certainly, these But are are on magnitudes to premature shooting working for. the Hopefully, this

Operator

from comes the Goldman question next The line George Galliers from of Sachs.

George Galliers

The to It on scenario I would first the a ago, you question imagine consider of particularly was struggled America to years really just margin an extraordinary Europe, North people and obviously where have was when some in think X reached we in that base assets in And addition XXXX. XX% PSA. X% performance. in

they was as from despite investors you as it development was get good as perspective? interest, gets evolution However, then of would the price second little X%. as That at which of company, do internal planning Out insight mix growth? seems Perhaps end industry give you're why seeing your vehicles the on I year a had perspective to you the XXXX from main X% was your the low on presents And just from what do end-market of classify of very the to prognosis good volume. a an could shortage rate only a than market some an you question from due an for as that XXXX feel industry most stronger some conservative. wholesale growing and And your around into XXXX. markets you X% do the think Obviously, perspective? little as better expect

Carlos Tavares

great Well, questions. those are

answer. to try me Let

for with not on the identified being On rewarding I team, being have of like we to quality, the management one, things first would North we like would we part North that Stellantis see and we America, P&L. shy American things given are are refreshing company tell a we your improve, being are somebody is any have that And that can a internal such experience just very could to experience, it's there to cost, there lot a in we marketing, is open Because do result in you improve. of always a a better book things you the doing than of benchmarking large that in that why? better

This internal improve region been is huge that a defensive only or our executives own benchmarking company and a is team, aggressively the performance. in very us on of has that topic lever their at things we embracing So the in brand. own keep been any giving improving being in have to top focused not to are fortunately, working we an well which kind their inside of top find able where because, the open-minded could company attitude leadership better

a margins ones. you we the to the better in is creates now. not know I hinted that list market North it So for that America. very we conditions not offer we we on think positive and is the have in the those the and do given we what the of market. same But to only we pool push the because demand, are consider situation market. the both conditions At between can significant imbalance are good margins that which And profitability are a are we are which then very a current call shy of This a instead America things improve in fair, think North time, in I this

energy, compare the that investor, same Stellantis looking you is in the far. North enjoying by From -- and congratulations metrics same our can them the you, And warm in that have position, time, winner then better, job to obviously the North the I internal be the are access at congratulate America putting able, focus is doing to of our things where it's the thanks American for strength on just benchmarking. we better team. our do the them, same the to margins. our competitors be That's we who at time the Our our and is good and course, can to to,

current situation. what What the on that's would American you North tell I I other to the was question, So forgot?

Richard Palmer

Growth of X%...

Carlos Tavares

I we be very the Well, forecast. have the think yes, X%, The to humble on outlooks.

as good are know you We Historically, are semiconductors. markets we very see will of the supply by Anyway, outlooks. the that often well, mostly of now, we making at be not right the wrong. managed size

the market going consequence supply. of is to that size of the the So be somewhere

that have helpful been believe which expresses going will situation is, get year. direction. seem not say geopolitics to we time. going the be fact we a that course, we we the of this cost And that in it's XXXX can take to the course, and in problem, bit they to We back hopefully, right not yes, going year very we coming normal. is the slow. the very that So normal also are is that On move top that, It [indiscernible] going which world, where But going happen. be hurdles to overcome. things be don't from raw little that the we mentioned will it's will to years But create the pure better. think additional of material to have, it's the last to believe very we to believe semiconductor perspective, better of that is don't be of inflation, And be

all helpful because the not of we long-term the very been it's efficiency to to plate way working are areas are on of we The on we intensively that we enough could should and see improve So our plan, strategic have at doing the in things the pockets have company. the be pessimistic better. where

facing still consider our same we the we things improve. we we on time, and side, we know. supply is, answer And from quite small on we that would an very headwinds the the the pace that outlook, have you At that are can improvement. see seem low it's to improvement that you of if because are but very tons a So probably, semiconductor cautious front,

on best that's the this I matter. think you answer give we can that

Operator

Cheuvreux. from comes Besson Kepler from question Thomas next The

Thomas Besson

please. Thomas Besson X It's have from Kepler Cheuvreux. I questions,

is first cash generated anticipated than The one amount 'XX. a mean about much stronger cash initially of in returns. you've I

on are of bit via the eventually buyback dividend your HX, of allowed in you this But maybe Chinese not and terms a to that particular, new to least much that in if your depressed complement a billion explain you their price of achieved to direct you the as share know well your with €X.X others earnings. in well you update in We dividend, competitors in while in months it something your is in us pushing exposure, already us above see you so a America What still change coming XXXX. America. margin why coming proposing get while less prefer could regions North you've to do I you. North agreements you're Is But or of as maybe competition. decided is of with may valuation? in than Can times discuss Or operating XX% the reasonable deterioration all performance had next to week? agreements return are it remains explain try think Second, Europe what you to still, improve suppliers distribution at do? see us you as for and performance. way extraordinary results may most improvement, always for Stellantis there for

Carlos Tavares

of you, dividend to Great question free relates it I Richard. flow will indeed. details Thomas. thank the A policy. to cash give Well, He will questions you more comments. couple as give

next We matter cash that tell week in the to this more you It will consider some owned that a about just the needs details. of shareholders. you the is is we I explanations. sensitive talk company by that to want

we availability projects fair. we as there have, have cash is either we will will there liquidity which you shareholders, is our see not to the So company. if position, and our why the which the are And very next a give of week. back is is strong a case, to strong no I think They owners and propose, reason

hand going keep about second Richard. that's cash question, But do On think about why will free certainly talking So are how pushing we as we And your next question, for week, things. as which we we is I over to that. much to the are. be flow about

may that soon well, this the It as you from my is then know never are, competitive other pushing, answer being They guys pushing. of backwards fair the than go you go the as are the pushing because know, stop years backwards you have day. a you as automotive you guys end be better I all they is anyway. XX that at life learned pushing, about Thomas, the is but not much And as you as think of are I other because you pushing stop if game.

So go backwards. stop pushing if you you then

total conventional expect of an We the to big For in the can big our lose to we customer XX% cost against do classes production XX% we the vehicle. us, production additional cost is will cost can gorilla gorilla additional XX% the customer around in to is the big, the will and bases represent way electrification middle of the There room no room. electrification. total we the That's XX% to so, shrink. because transfer if

we red, So the that. that the have pricing do cannot time, we go will with cost the same we course, and same company. keep At in because, to restructure of the we cannot

productivity used industry to the as the deliver, from margin. only that have told that move XX% you AOI If we forward up double-digit per over from on would around commit between do it the at few then next to say to those XX% of you it we XXXX is ready in for to additional be Capital we that a to we the an is Day way to to do Thomas, absorb XXXX, means X%. next years because year years, know, If X that we cost. So now X%

year do X% go from to per many, many ways There X% to how different not go So you XX% are year. to per there.

It's final that One And customer, at final with the improve the time, improve of while strong cost, improving the cost. connect the the fact of is distribution. the a of the you distribution journey, not the quality only lever. to cost you It's quality your the can the absorption for ways same are of reduce contributor you reduce electrification the customer the to customer.

supportive that to week. stop, didn't with are this distribution, we partners quality agreement double-digit we that making of significant well We margin discussing one an do lose cost base. have say while we next achieving of the represent improve why in classes, others Europe. journey now of which a AOI is that we progressing But reasons in believe can a very about be And world, while middle that we of can the didn't of part stop comment we'll a our fully electrified customer not I reach and our the we we reducing sure customer will the how the that

But are So and pushing. please. that's trying Thank competitors, to why we are you flow, what on Richard, know for stop don't and we that's the the you, we are free we DNA, our cash here do, Thomas. race.

Richard Palmer

you, basically you answered think Well, Carlos. Thank question. I the

X. capital allocation, talking about on March on we'll be think it I

we're propose think the to Board very able Board I the and to agreed. think with payout being satisfied on dividend, of the the I

at the Thomas, the pleased the basically it's off. see subject not We're it's obviously, precise to think approval. therefore, a to look but €X.X shareholder I with payout. We'll XX.X%, rounding billion far if So

forward. I a move be by X. we're seen payout respectable. But we'll So visibility more think very on allocation XX% give thoughts at capital which and shareholders you Stellantis, first hopefully, on I on think March is as investors, then so and And we'll overall for we'll

Operator

from question comes from Philippe next The of the line Jefferies. Houchois

Philippe Houchois

nonrecurring, I've much there billion the are direction they how valuation for like last One, XXXX; hard questions, year because please. looking I'm to What's €X.X XXXX. €X.X of they're size much the in adjustments, how of it's billion adjustments at was got Richard your or is. things some maybe know warranties. those two the

on views Carlos. So adjustments I think we're it'd in be terms one, visibility very future the interesting going where you to get much, and size thank second your the on And of of this.

of And about affordability. possibly, to going vocal been materials have year electrification going is up Interest go -- prices to one. maintain want you margin. you've if I'm know still going looking but much. real I values raw cars and next, cost then so up, But aren't the definitely So at improve up logically, rates to your this nominal

down. may also may but they stable, they So come be

with that of lots multiple makes headwinds. affordability So

going So to talked I'm you take doing your it back that where be far productivity your very gains. are about -- just requiring I'm with of suppliers? I any what wondering any you going distribution, Are your seem levers? that's to strict about years. to with you're taking you very, that about what's there but you're suppliers know the risk going And bit a several some gives be, you it's to curious Or

Carlos Tavares

will I I topic, think perfect your understanding the answer second is question, leave to Richard. second the then on absolutely one first the

the XX% years fact the been when car our that our made structure, both of the come On is that, that some good additional cost in both years. car need put situation costs to one, the suppliers of on we total could this surprise cost the it enjoy made automobile have total production last is course, structure. over out parts, kind is out created XX% to doing have significant out which the an they of is of last production you this for this production of because industry. the you has mobile of been a trailer activity of It XX% as in if there And to to last which know second just of coming over to I the electrification, cost, the years XX do, you back have This ship for productivity automotive absorb you suppliers business no significant before dealer, as the be XX is on total the of such cost of of course, parts. a happens contributor the automobile to the that today, that additional basics have your XX our with a

So yes, they have to contribute.

And of them doing. some are

consumer, are something cannot who these keep pass will are has Stellantis, are mean? Some very be efficient the that the Because means I partnership-oriented productivity the a believe a point. be means in we manage are keeping to going and transition those breakeven families time, in the of X total nice OEMs, everything boat, it in to enough slightly that us The is It who also the a is competition cost course, it's the low the you it it guys. to of them the differentiator we we not point. are what Stellantis. cannot pass suppliers the the but significant formally the imposed same to going absorb And for to very and point the is base. in of the for to down. as able it's guys that can the markets breakeven we a is perhaps to the additional Darwinian know, any been at in same as as we very we strong only on OEMs. it electrification by And that It about the for supplier which contributing regulations. period consumer, if have that are does way. will of this and a much created guys our there And is going is of also base, industry, generate lowest supplier transformation are go that transformation. And And we about means speed What in

keep than more we because R&D breakeven will low a XX% spend very we CapEx. and peers We point have efficiency our when

more So efficient. are we

cost. are We level. We power costs, to fixed benchmark sharper try on at pricing enjoy sharper strong a on

their we have the be market very very point at who did and point. able suppliers XXXX we the absorbing that that cars. be is to customer, lowest good the day, some left have can digest need what XX% And are the low because of will example the to So contribute and guys on are And of part keep breakeven to is concrete may contribute. we We end contribute process of because significantly this the impact cost, of will our we the is additional transferred of in as an OEM. the to who the size going breakeven perspective, X million guys from it it

know when of a is opportunities put get spontaneous. X RPS. weather and do million delivered competitive of investors. company. And think, of could of is a company that not gives point this likes be It's in X%, free a above the a company. course, XX.X% you to grasp well, breakeven we protecting is, one we that's car business certain which cars -- more million, AOI itself to which extent, that a more push. of to of X is things change north margin, company positive differentiator cash that billion flow demonstrates because as Stellantis all potential, all-weather need change. with in the extent, €X likes were board about and to Yes, low Our But and extent us to it different certain than is more our a And teammates company vis-a-vis talking don't always protecting our your to things are changing, company some and dynamic we This even why I

classes terms board reduction middle is we size a years going the that the in sales. so can keep new over cost on race your market X to on This affordability mostly valid. next to car is protecting So the protect of point the of be

social car important, the stability in only not we of for Western societies but for operate. I the companies, think the also it's very which

I for one. I fair think other classes. your question, This floor very middle Richard comment of the for freedom give important that's and to we protect what the will I mobility is can that to the

Richard Palmer

Hi, Carlos. Thanks, Philippe.

think so I X well, relatively unusual So years, hope. we're at looking let's

we billion, forward of in policy the in of €X.X frankly, related are on and €X.X XXXX. to FCA, the related billion look charges In So noncash some about unusual obviously, largely again, which, XXXX, warranty, if due product items in were to to to inventory; billion, a issues we XXXX, €X.X impairments COVID PPA, that had largely going at related the obviously, €X.X looked noncash is item. I billion at alignment,

and line And house then the that some practices, product need an in towards the We estimate lines companies consistent to comes point an vehicle end. impairments a old basically side we €X.X manner. of ex-opal forward on view, billion have accounting that had frankly, some from of X mainly of different move as up from

these which So And restructuring a million, in to transactions of word €X.X have in remainder a occurred more billion is that of about also the noncash for and to then sense the million, traditional ex-FCA. the both charges, and we have ex-PSA merger. is largely related related €XXX €XXX past

merger. likely some that billion going in level the So would line on that XXXX term, have I of €X.X the we I €X through the over of same the there would we down had of in to XXXX continue to noncash forward, the to restructuring to to are going restructuring imagine time. coming charges have billion of in depending But for related some short not events the year expect level

Carlos Tavares

Thank you, Richard.

more the as is please? Let's take question time flying, one

Operator

Horst of from question Schneider America. from next comes The Bank

Horst Schneider

checked The that again your I market morning. I this most important one cap, relates to have that

you the one Group. adjusted similar EBIT the XXXX, to an generated Volkswagen in of probably So

just Volkswagen the Group. cap is market Your XX% of

I get embark embarked to think assets. that about you What to the no, likely to great on share. you or to than your you transaction do is to it's for worse at going we would from market increase what the of increase prices to incentive important, would to has that on last is and in just in one valuation say, So rather relates Volkswagen is George want Galliers good the dispose we how are engineering understand financial -- if moment second need margin, Group you see still keep company. cut the a question volumes? also that more Stellantis question volumes, And more if valuation back the again the said preference? measures, engineering going volumes U.S. I have and on of U.S., the consider I would would a maybe you financial on Or or

Carlos Tavares

absolutely Well, be next thank that more right you. Those course. than convinced have week, our Stellantis this cheap. are a possibly plan are very is us It I ahead because now, I them to right I really through you am next that comment you is just exciting, good week of would that would opportunity see it investors for and week. great is questions. of pleased much answer what But we the will

not So the company. been have and enough because have exciting at have we Why is that? yes, good we communicating is to not good you the that been plans I quite Stellantis enough Possibly cheap. for

Capital correct the Capital with software electrification to tried Day have We the Day. that with

Hopefully, We to investors. for surely, extensive will better present next very much you clear. a you the week. plan a deserves will manner Stellantis It's cap. opportunity but an market in for obvious That's be convinced,

in demonstrated all-weather We an we have that company. DNA, our are

have we towards are tech therefore, like demonstrated afraid company company in way. a we any We mobility change. that And steering not the of

technologies. not of afraid We have demonstrated new are that we

that partnerships able to we have make high demonstrated tech a pace. We companies with are at

you, investors all for the So has this to of opportunities. done been enjoy

and a ensuring stability rigorous have value ensure are is everything our that convinced management we absolutely different the have not absolutely sustainability the proper the the governance company, challenges clear need. of we that we mine. we ensure your convinced And in we that decision job and that team, My creating in execute with our very plans. a we I'm that company I'm fantastic is the we that I'm can through absolutely to to have ahead. convinced have we are and in hands, Now for the that

but The how our disregard company, opportunities. plan. you and ourselves the And still You our not and positioning core company were shareholders, do. of we unleash tech represent few had do our of that. far, I we may cannot are that you we a also we will plan, do. disregard core don't not happen to hopefully, of I convinced numbers explain asking to week, we could if by to so based of And see And exclude it's the the think years that of should but what we that grasp not things we the will are possibility we can first not, big to expect in things be it's financial should that in have, to on profitable by specific we and some that we for clarity additional the want you that we things how not as the years steering great now next tons opportunities a plan do. a automotive value great I building. are towards But more the to those is operations only

see I being questions thoughtful I don't this, would confident. are company, generally realities I'm grounded with tell always. I like that all the the inside So that speak that very you of of I on the to you company. you would very thank for as to without CEO raising like this can

So think we is move. cannot And was move. in has winning it a do our to great say a to I that Stellantis think that a It's people Stellantis fair everything great I potential. have that is first it through single fair on the described, layers to they X tell is And already them I quite achieved that one year. what the year, immense. of the already accumulation have

first thanks convey they achieved much thank to Stellantis. have So the for on my and would questions, what to people, my your and hopefully, the I like like congratulations see week. and year I you, sincere for for you, to very your thoughtful Thank of warm investors, Bye-bye. next trust, would you

Operator

Thank you for today's call. joining

now may You disconnect.

Stellantis (STLA) 23 Feb 222021 Q4 Earnings call transcript