UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15D-16 UNDER THE SECURITIES
EXCHANGE ACT OF 1934
For the month of August 2007
FIAT S.p.A.
(Translation of Registrant’s name into English)
Via Nizza 250
Torino, Italy 10126
(Address of principal executive office)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F [X] Form 40-F [ ]
(Indicate by check mark whether the registrant by
furnishing the information contained in the form
is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes [ ] No [X]
TABLE OF CONTENTS
FIAT 2007 FIRST-HALF REPORT
SIGNATURES
First-Half Report
At June 30, 2007
Second Quarter 2007
| Contents |
| | | | |
| | Board of Directors and Control Bodies |
1 | Operating and Financial Highlights of the Fiat Group |
2 | Overview |
4 | Operating Performance of the Group |
9 | Operating Performance by Business |
20 | Consolidated Statement of Cash Flows |
21 | Balance Sheet of the Group at June 30, 2007 |
23 | Industrial Activities and Financial Services Activities: Performance in the second quarter and first half of 2007 |
33 | Fiat Group – Interim Consolidated Financial Statements and Notes at June 30, 2007 |
| 34 | - | Consolidated Income Statement |
| 35 | - | Consolidated Balance Sheet |
| 36 | - | Consolidated Statement of Cash Flows |
| 37 | - | Statement of Changes in Stockholders’ Equity |
| 38 | - | Consolidated Statement of Recognised Income and Expense at June 30, 2007 |
| 39 | - | Consolidated Income Statement pursuant to Consob Resolution No. 15519 of July 27, 2006 |
| 40 | - | Consolidated Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 |
| 41 | - | Consolidated Statement of Cash Flows pursuant to Consob Resolution No. 15519 of July 27, 2006 |
| 42 | - | Notes to the Consolidated Financial Statements |
69 | Significant Events Occurring since the End of the Period and Business Outlook |
71 | Appendix – The Companies of the Fiat Group at June 30, 2007 |
87 | Fiat S.p.A. – Financial Review and Interim Financial Statements at June 30, 2007 |
| 88 | - | Financial Review of Fiat S.p.A. |
| 91 | - | Income Statement |
| 92 | - | Balance Sheet |
| 93 | - | Statement of Cash Flows |
| 94 | - | Statement of Changes in Stockholders’ Equity |
| 95 | - | Income Statement pursuant to Consob Resolution No. 15519 of July 27, 2006 |
| 96 | - | Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 |
97 | Auditors’ Report on the Interim Financial Statements |
This Report has been translated into English from the original version in Italian.
In case of doubt, the Italian version shall prevail.
__________________________________________________________________________________
Date of issue: July 24, 2007
This Report is available on the Internet at the address:
www.fiatgroup.com
FIAT S.P.A.
Registered Office: Via Nizza 250, Turin
Paid-in capital: 6,377,262,975 euros
Entered in the Turin Company Register – Fiscal Code: 00469580013
Board of Directors and Control Bodies
Board of Directors | Board of Statutory Auditors |
Chairman Luca Cordero di Montezemolo (4) Vice Chairman John Elkann (1) (4) Chief Executive Officer Sergio Marchionne (4) Directors Andrea Agnelli Roland Berger (3) (4) Tiberto Brandolini d’Adda Renè Carron (*) Luca Garavoglia (1) (3) Gian Maria Gros-Pietro (1) (2) Hermann-Josef Lamberti (**) Virgilio Marrone Vittorio Mincato (2) Pasquale Pistorio (4) Carlo Sant’Albano Ratan Tata Mario Zibetti (2) (3) Secretary of the Board Franzo Grande Stevens | Statutory Auditors Carlo Pasteris – Chairman Giuseppe Camosci Cesare Ferrero Alternate Auditors Giorgio Giorgi Piero Locatelli Roberto Lonzar |
External Auditors Deloitte & Touche S.p.A. |
| |
(*) Co-opted on July 24, 2007
(**) Resigned on July 24, 2007
(1) Member of the Nominating and Corporate Governance Committee
(2) Member of the Internal Control Committee
(3) Member of the Compensation Committee
(4) Member of the Strategic Committee
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | (in millions of euros) | | 2007 | | 2006 |
28,855 | | 26,164 | | Net revenues | | 15,179 | | 13,608 |
1,541 | | 982 | | Trading profit | | 946 | | 659 |
1,541 | | 982 | | Operating result | | 946 | | 659 |
1,449 | | 774 | | Income before taxes | | 875 | | 542 |
1,003 | | 481 | | Net income for the period | | 627 | | 330 |
951 | | 418 | | Net result attributable to equity holders of the Parent | | 593 | | 280 |
| | | | | (in euros) | | | | |
0.740 | | 0.277 | | Basic earnings per ordinary share (1) | | 0.472 | | 0.168 |
0.740 | | 0.310 | | Basic earnings per preference share (1) | | 0.430 | | 0.201 |
0.895 | | 1.052 | | Basic earnings per savings share (1) | | 0.472 | | 0.943 |
0.739 | | 0.277 | | Diluted earnings per ordinary share (1) | | 0.472 | | 0.168 |
0.735 | | 0.310 | | Diluted earnings per preference share (1) | | 0.427 | | 0.201 |
0.890 | | 1.052 | | Diluted earnings per savings share (1) | | 0.469 | | 0.943 |
(1) See Note 12 of the Interim Consolidated Financial Statements of this First-half Report for further information on the determination of basic earnings per share and diluted earnings per share.
Financial Highlights of the Fiat Group
| (in millions of euros) | | At 06.30.2007 | | At 12.31.2006 |
| Total assets | | 60,781 | | 58,303 |
| Net debt | | 12,155 | | 11,836 |
| - of which: Net industrial debt | | 873 | | 1,773 |
| Stockholders’ equity before minority interest | | 10,587 | | 10,036 |
| Group interest in stockholders’ equity | | 9,939 | | 9,362 |
| | | | | |
| Employees at period-end (number) | | 180,031 | | 172,012 |
| | | | | |
Highlights of the Group’s performance in the second quarter of 2007
The Fiat Group had revenues of 15,179 million euros in the second quarter of 2007, up 11.5% from the same period in 2006. The improvement was mostly attributable to the positive contributions of Iveco (+25.2%), the Automobiles businesses (+12.3%) and CNH-Case New Holland (+8.5%; +16.3% in US dollar terms), as a result of higher sales volumes.
In the second quarter of 2007, trading profit totalled 946 million euros (6.2% of revenues), a sharp increase (+287 million euros) from the trading profit of 659 million euros (4.8% of revenues) reported in the second quarter of 2006. A significant contribution came from the Automobiles businesses, with Fiat Group Automobiles more than doubling its trading profit to 193 million euros (2.8% of revenues), Iveco, whose trading profit increased by 61 million euros to 224 million euros (7.8% of revenues), and the Agricultural and Construction Equipment businesses, whose trading profit rose by 75 million euros to 348 million euros (10.6% of revenues).
In the second quarter of 2007, Fiat Group operating result was positive by 946 million euros, equal to trading profit, with unusual items netting out to nil.
Result before taxes was positive by 875 million euros, compared with income before taxes of 542 million euros in the second quarter of 2006. The improvement of 333 million euros is due in the main to the increase of 287 million euros in operating result as well as to lower net financial expenses of 52 million euros, which include gains of 69 million euros arising from stock-option related equity swaps partly offset by costs of 43 million euros in connection with accelerated redemption of a CNH 9.25% fixed rate bond originally repayable in 2011.
Net result for the period was 627 million euros in the second quarter of 2007, up 297 million euros compared with 330 million euros in the second quarter of 2006.
Highlights of the Group’s performance in the first half of 2007
In the first half of 2007, the Fiat Group had revenues of 28,855 million euros, up 10.3% from the corresponding period of 2006, with very positive contributions coming from Iveco (+22.7%), the Automobiles businesses (+11.7%) and CNH-Case New Holland (+5.2%; +13.7% in US dollar terms).
In the first half of 2007, the Group had trading profit of 1,541 million euros (5.3% of revenues), a sharp improvement (+559 million euros) from the trading profit of 982 million euros (3.8% of revenues) reported in the first six months of 2006. This improvement reflects, among other things, significant improvements at Fiat Group Automobiles, whose trading profit grew by 240 million euros to 385 million euros (2.9% of revenues), Iveco, up by 141 million euros to 374 million euros (7% of revenues) and the Agricultural and Construction Equipment businesses, whose trading profit increased by 127 million euros to 537 million euros (9% of revenues).
Operating result was positive by 1,541 million euros in the first half of 2007, equal to trading profit, with unusual items netting out to nil.
Result before taxes was positive by 1,449 million euros, compared with income before taxes of 774 million euros in the first half of 2006. The 675 million euro improvement is due to the increase of 559 million euros in operating result, as well as to lower net financial expenses of 130 million euros, which include the positive effect, totalling 160 million euros (32 million euros in the first half of 2006) arising from stock-option related equity swaps, partly offset by the mentioned 43 million euro costs in connection with CNH.
Net result for the period was positive by 1,003 million euros in the first half of 2007, up by 522 million euros compared with 481 million euros in the first six months of 2006.
Net industrial debt, totalling 873 million euros, decreased by 900 million euros during the first half of 2007, mainly reflecting positive net industrial cash flow of 1.4 billion euros, which was partially offset by dividends paid and share buy-backs of more than 0.5 billion euros. At the end of the first half of 2007, the Group net industrial debt to stockholders’ equity ratio was 0.082 (0.18 at December 31, 2006).
The Group’s cash position at June 30, 2007 was 7.4 billion euros compared with approximately 8 billion euros at December 31, 2006.
Outlook for 2007
The Group’s first half results are fully in line with its 2007 targets and provide a solid base to pursue the growth and margin expansion path set out in the 2007-2010 industrial plan.
In particular, the Group confirms that it expects to reach the upper end of all the 2007 target ranges announced last November. The Group now expects:
§ Consolidated trading profit of approximately 2.7 billion euros (approximately 5% trading margin);
§ net income between 1.6 and 1.8 billion euros;
§ earnings per share between 1.25 and 1.40 euros.
In addition, strong industrial cash flow generation in the first half of the year enables the Group to move its year-end net industrial debt target to approximately 600 million euros (excluding the impact of additional share buy-backs).
The Group will continue to implement its strategy of targeted alliances, in order to optimise capital commitments and reduce risks.
Operating Performance of the Group
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | (in millions of euros) | | 2007 | | 2006 |
28,855 | | 26,164 | | Net revenues | | 15,179 | | 13,608 |
1,541 | | 982 | | Trading profit | | 946 | | 659 |
1,541 | | 982 | | Operating result | | 946 | | 659 |
1,449 | | 774 | | Income before taxes | | 875 | | 542 |
1,003 | | 481 | | Net result for the period | | 627 | | 330 |
Effective January 1, 2007 the activities which were previously part of the Services Sector were transferred to Fiat Services S.p.A., a company included among Holding companies and Other companies. Fiat Services S.p.A. and its subsidiaries outside of Italy provide administrative and professional services to Fiat Group Companies. In accordance with IAS 14 – Segment Reporting, effective January 1, the Services Sector is no longer represented and the relevant figures for 2006 have consequently been reclassified. Fiat Services activities are organised in three service units: Transactional Processes (Finance and Payroll), Information and Communication Technology Services and Customs Services.
On February 1, 2007 Fiat Auto changed its name into “Fiat Group Automobiles S.p.A.”.
Operating performance of the Fiat Group in the second quarter of 2007
Net revenues
| | 2nd Quarter |
| (in millions of euros) | | 2007 | | 2006 | | % change |
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) | | 7,357 | | 6,552 | | 12.3 |
Agricultural and Construction Equipment (CNH-Case New Holland) | | 3,269 | | 3,014 | | 8.5 |
Trucks and Commercial Vehicles (Iveco) | | 2,861 | | 2,286 | | 25.2 |
Components and Production Systems (FPT, Magneti Marelli, Teksid, Comau) | | 3,464 | | 3,230 | | 7.2 |
Other Businesses (Publishing and Communications, Holding companies and Other companies) | | 352 | | 390 | | -9.7 |
Eliminations | | (2,124) | | (1,864) | | - |
Total for the Group | | 15,179 | | 13,608 | | 11.5 |
In the second quarter of 2007, the Group had net revenues of 15,179 million euros, posting an increase of 11.5% from the second quarter of 2006. The main drives of this growth were the very positive contribution of Iveco and the Automobiles businesses as well as the good performance of the other industrial businesses.
With revenues of 7,357 million euros, the Automobiles businesses grew by 12.3% from the second quarter of 2006. All the Sectors contributed to this improvement: higher sales volumes at Fiat Group Automobiles drove Sector’s revenues to 6,782 million euros, up 12.1% from the second quarter of 2006; revenues increased by 8.7% at Ferrari and 19.6% at Maserati.
In the second quarter of 2007, Agricultural and Construction Equipment (CNH) had revenues of 3,269 million euros (+8.5% from the second quarter of 2006). In US dollar terms, revenues increased by 16.3% as a result of increased volumes of higher horsepower tractors and combine harvesters and higher sales of construction equipment outside North America, where volumes declined due to an unfavourable market trend.
With revenues of 2,861 million euros, Iveco confirmed its particularly positive trend and posted an increase of 25.2% with respect to the second quarter of 2006, due to a sharp rise in sales volumes and higher pricing.
In the second quarter of 2007, the Components and Production Systems businesses had aggregate revenues of 3,464 million euros; the 7.2% increase from the corresponding period of 2006 reflects diverging performances across the various Sectors. Revenues increased by 15.8% at FPT Powertrain Technologies and by 11.2% at Magneti Marelli (+10.7% on a comparable scope of operations). Teksid’s revenues decreased by 31.2%, largely due to the sale at the beginning of March 2007 of Meridian Technologies, a company operating in the Magnesium business (-2.7% on a comparable scope of operations); Comau recorded a decline of 11.3%, as it was impacted by the industry’s structural decline.
Trading profit
| | 2nd Quarter |
| (in millions of euros) | | 2007 | | 2006 | | Change |
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) | | 264 | | 134 | | 130 |
Agricultural and Construction Equipment (CNH-Case New Holland) | | 348 | | 273 | | 75 |
Trucks and Commercial Vehicles (Iveco) | | 224 | | 163 | | 61 |
Components and Production Systems (FPT, Magneti Marelli, Teksid, Comau) | | 146 | | 105 | | 41 |
Other Businesses (Publishing and Communications, Holding companies and Other companies) and Eliminations | | (36) | | (16) | | -20 |
Total for the Group | | 946 | | 659 | | 287 |
Trading margin (%) | | 6.2 | | 4.8 | | |
In the second quarter of 2007, the Group had a trading profit of 946 million euros, an increase of 287 million euros from the 659 million euro trading profit of the same period of 2006. A significant contribution came from the Automobiles businesses, with Fiat Group Automobiles delivering a trading profit of 193 million euros (+105 million euros), CNH up by 75 million euros (+27.5%) to 348 million euros and Iveco up by 61 million euros (+37.4%) to 224 million euros. Positive performances were also posted by the Components and Production Systems businesses, which reported an aggregate increase of 41 million euros, reflecting improved results at FPT Powertrain Technologies, Magneti Marelli, as well as Comau, where the first positive effects of the restructuring plan have begun to be visible; the decrease at Teksid is attributable to the change in the scope of consolidation.
Operating result
Operating result was positive by 946 million euros in the second quarter of 2007; the improvement of 287 million euros with respect to the operating income of 659 million euros in the second quarter of 2006 reflects higher trading profit.
Net gains on the disposal of investments amounted to 8 million euros in the second quarter of 2007 and included gains realised upon the sale of an interest held in the associated company Servizio Titoli S.p.A. (5 million euros) and the sale of a branch of business of Comau in France (4 million euros). The 6 million euros reported in the same period of 2006 included 9 million euros from the sale of the residual stake held in IPI.
In the second quarter of 2007, restructuring costs totalled 7 million euros and related to Comau. In the second quarter of 2006 restructuring costs totalled 5 million euros.
In the April-June 2007 period, other unusual income (expenses) consisted of net expenses of one million euros (in line with the value of said item in the second quarter of 2006) which included costs of 6 million euros incurred in connection with the reorganisation and rationalisation of the Group’s suppliers and other non recurring income of 5 million euros arising from the favourable settlement of certain contractual claims regarding the sale of businesses carried out in prior years.
Net result
Net financial expenses totalled 111 million euros in the second quarter of 2007, compared with net expenses of 163 million euros in the corresponding period of 2006. The improvement (+52 million euros) mainly reflects the lower net industrial debt of the Group and financial income of 69 million euros arising from the equity swap agreements on Fiat shares entered into to hedge stock option plans (expenses of 1 million euros in the second quarter of 2006), partially offset by a cost of 43 million euros recognised in the quarter relating to the early redemption of a CNH 9.25% fixed rate bond originally repayable in 2011.
The financial component of costs for pension plans and other employee benefits totalled 35 million euros in the second quarter of 2007, compared with 41 million euros in the same period of 2006.
The result from investments for the second quarter of 2007 consisted of a profit of 40 million euros, down 6 million euros over the second quarter of 2006.
Income before taxes totalled 875 millions euros in the second quarter of 2007, against income of 542 million euros in the same period a year ago. The 333 million euro improvement is due to the increase of 287 million euros in operating result, and lower net financial expenses for 52 million euros, while investment income declined by 6 million euros.
Income taxes totalled 248 millions euros in the second quarter of 2007, 46 million euros of which for IRAP and 3 million euros for prior-year taxes. The tax charge (excluding IRAP) for the period, amounting to 199 million euros, increased with respect to the same period of 2006 due to improved results, mainly of companies outside of Italy. In the second quarter of 2006 income taxes amounted to 212 million euros, 39 million euros of which for IRAP.
Net result was 627 million euros in the second quarter of 2007, against income of 330 million euros in the same period of 2006.
Net result attributable to equity holders of the Parent was positive by 593 million euros in the second quarter of 2007, against income of 280 million euros in the same period of 2006.
Operating Performance of the Fiat Group in the first half of 2007
Net revenues
| | | | | | | 1st Half |
| (in millions of euros) | | 2007 | | 2006 | | % change |
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) | | 14,181 | | 12,691 | | 11.7 |
Agricultural and Construction Equipment (CNH-Case New Holland) | | 5,960 | | 5,666 | | 5.2 |
Trucks and Commercial Vehicles (Iveco) | | 5,348 | | 4,357 | | 22.7 |
Components and Production Systems (FPT, Magneti Marelli, Teksid, Comau) | | 6,708 | | 6,434 | | 4.3 |
Other Businesses (Publishing and Communications, Holding companies and Other companies) | | 685 | | 748 | | -8.4 |
Eliminations | | (4,027) | | (3,732) | | - |
Total for the Group | | 28,855 | | 26,164 | | 10.3 |
The Fiat Group had net revenues of 28,855 million euros in the first half of 2007, an increase of 10.3% from the corresponding period of 2006. All the main industrial businesses contributed to this improvement, with Iveco, whose sales increased strongly, and the Automobiles businesses standing out for their particularly good performances.
The Automobiles businesses had revenues of 14,181 million euros for an increase of 11.7% with respect to the first six months of 2006. All Sectors contributed to this good performance: higher sales volumes drove Fiat Group Automobiles revenues to 13,084 million euros, up 11.2% from the first half of 2006; revenues increased by 13.9% at Ferrari and by 27.9% at Maserati.
Agricultural and Construction Equipment (CNH) had revenues of 5,960 million euros in the first half of 2007 (+5.2% from the corresponding period of 2006). In US dollar terms, revenues increased by 13.7% mainly due to increased sales of higher horse-powered tractors and combine harvesters and higher sales prices.
In the first half of 2007, Iveco had revenues of 5,348 million euros, an increase of 22.7% from the corresponding period of 2006, attributable to significantly higher sales volumes and improved pricing.
In the first six months of 2007, the Components and Production Systems businesses had revenues of 6,708 million euros, up 4.3% from the first half of 2006. Revenues increased at FPT Powertrain Technologies (+12%) and at Magneti Marelli (+6.8%; +9% on a comparable scope of operations), while they decreased by 24.8% at Teksid, mainly due to the sale at the beginning of March 2007 of Meridian Technologies (-6.7% on a comparable scope of operations). Comau’s revenues also decreased (-17.8%) due to the difficult market context.
Trading profit
| | 1st Half |
| (in millions of euros) | | 2007 | | 2006 | | Change |
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) | | 486 | | 183 | | 303 |
Agricultural and Construction Equipment (CNH-Case New Holland) | | 537 | | 410 | | 127 |
Trucks and Commercial Vehicles (Iveco) | | 374 | | 233 | | 141 |
Components and Production Systems (FPT, Magneti Marelli, Teksid, Comau) | | 229 | | 187 | | 42 |
Other Businesses (Publishing and Communications, Holding companies and Other companies) and Eliminations | | (85) | | (31) | | -54 |
Total for the Group | | 1,541 | | 982 | | 559 |
Trading margin (%) | | 5.3 | | 3.8 | |
In the first half of 2007, trading profit amounted to 1,541 million euros, an increase of 559 million euros from the 982 million euros reported in the corresponding period of 2006. Continued growth at the Automobiles businesses reflects a 240 million euro increase in the trading profit of Fiat Group Automobiles (it should be noted that this Sector’s trading profit included a one-off gain net of one-off costs of approximately 40 million euros recorded in the first quarter of 2007). A significant contribution also came from Iveco, whose trading profit improved by 141 million euros (+60.5%) to 374 million euros, and CNH, whose trading profit was up 127 million euros (+31%) to 537 million euros. The Components and Production Systems businesses posted an aggregate improvement of 42 million euros as a result of higher trading profit at FPT Powertrain Technologies, Magneti Marelli and Teksid, while Comau had a trading loss of 25 million euros (trading loss of 21 million euros in the first half of 2006).
Operating result
Operating result was positive by 1,541 million euros in the first half of 2007. The 559 million euro improvement from the 982 million euros reported in the first half of 2006 reflects higher trading profit.
Net gains on the disposal of investments amounted to 52 million euros in the first half of 2007 (8 million euros in the first six months of 2006) and included, in addition to gains reported for the quarter, the gain of 42 million euros realised upon final disposal of Ingest Facility. With regard to the sale of Meridian Technologies, which was finalised in the first months of 2007, a net loss of 29 million euros was recognised in the Consolidated Financial Statements at December 31, 2006.
In the first half of 2007, restructuring costs totalled 22 million euros and related primarily to Comau. In the first six months of last year, restructuring costs totalled 8 million euros and related mainly to CNH.
Other unusual income (expenses) for the first half of 2007 consisted of net expenses of 30 million euros, largely related to the reorganisation and rationalisation of the Group’s suppliers. In the first half of 2006 this item had a net balance of zero.
Net result
Net financial expenses totalled 168 million euros in the first half of 2007, compared with net expenses of 298 million euros in the corresponding period of 2006. The 130 million euro improvement from the previous year mainly reflects lower net industrial debt of the Group and financial income of 160 million euros arising from the equity swap agreements on Fiat shares entered into to hedge stock option plans (32 million euros in the first half of 2006). Conversely, expenses of 43 million euros reported for the quarter had a negative impact. The financial component of costs for pension plans and other employee benefits totalled 78 million euros in the first half of 2007, compared with 81 million euros in the corresponding period of 2006.
The result from investments for the first half of 2007 consisted of a profit of 76 million euros, down 14 million euros from the first half of 2006 (profit of 90 million euros), which included the release to income of a provision of 15 million euros for which the risk, originally made in connection with an investment in China, no longer subsisted.
Income before taxes totalled 1,449 million euros in the first half of 2007, against income of 774 million euros in the corresponding period of the previous year. The improvement of 675 million euros is due to the increase of 559 million euros in operating result, and to lower net financial expenses for 130 million euros, while investment income decline by 14 million euros.
Income taxes totalled 446 million euros in the first half of 2007, 90 million euros of which for IRAP and 6 million euros for prior-period taxes. The tax charge (excluding IRAP) for the period, amounting to 350 million euros, increased with respect to the same period of 2006 due to improved results, mainly of companies outside of Italy. In the first half of 2006 income taxes amounted to 293 million euros, 77 million euros of which for IRAP.
Net result was 1,003 million euros in the first six months of 2007, against income of 481 million euros in the corresponding period of 2006.
Net result attributable to equity holders of the Parent was positive by 951 million euros in the first half of 2007, against income of 418 million euros in the first half of 2006.
Operating Performance by Business
Automobiles
Net revenues
| | 1st Half | | | | 2nd Quarter |
2007 | | 2006 | | % change | | (in millions of euros) | | 2007 | | 2006 | | % change |
13,084 | | 11,768 | | 11.2 | | Fiat Group Automobiles | | 6,782 | | 6,050 | | 12.1 |
344 | | 269 | | 27.9 | | Maserati | | 177 | | 148 | | 19.6 |
804 | | 706 | | 13.9 | | Ferrari | | 423 | | 389 | | 8.7 |
(51) | | (52) | | - | | Eliminations | | (25) | | (35) | | - |
14,181 | | 12,691 | | 11.7 | | Total | | 7,357 | | 6,552 | | 12.3 |
Trading profit
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | Change | | (in millions of euros) | | 2007 | | 2006 | | Change |
385 | | 145 | | 240 | | Fiat Group Automobiles | | 193 | | 88 | | 105 |
- | | (26) | | 26 | | Maserati | | 1 | | (7) | | 8 |
101 | | 64 | | 37 | | Ferrari | | 70 | | 53 | | 17 |
486 | | 183 | | 303 | | Total | | 264 | | 134 | | 130 |
3.4 | | 1.4 | | | | Trading margin (%) | 3.6 | | 2.0 | | |
Fiat Group Automobiles
Fiat Group Automobiles closed the second quarter of 2007 with revenues of 6,782 million euros, an increase of 12.1% over the second quarter of 2006. The success of Sector’s new models continued to drive the increase in sales. Higher volumes were recorded both in Europe and South America.
Effective January 1, 2007, the European Financial Services activities (financing to the sales network and renting) sold to Fiat Group Automobiles Financial Services (FAFS), the 50-50 joint venture established at the end of December 2006 by Fiat Group Automobiles and Crédit Agricole, are no longer consolidated on a line-by-line basis but are accounted for using the equity method. Detailed information on the transactions connected with the establishment of FAFS was provided in the Fiat Group Consolidated Financial Statements at December 31, 2006. On a comparable scope of operations, Sector revenues would have increased by 14.6%.
In the second quarter of 2007, the automobile market in Western Europe decreased by 1.4% from the second quarter of 2006. This performance reflects a sharp decline in demand in Germany (-8.4%), connected with accelerated purchasing of automobiles in the closing months of 2006 before the German VAT rate increased at the beginning of 2007, as well as decreases in France (-3.7%) and Spain (-2.4%). Among leading European countries, increases were recorded in Italy (+8.7%), where the market increased as a result of incentives for car scrapping, and Great Britain (+1.1%).
Outside Western Europe, the markets where the Sector operates were particularly buoyant: demand for automobiles increased by 25.6% in Poland; registrations in Brazil were up sharply posting an increase of 33.6% from the second quarter of last year.
The Western European market for light commercial vehicles rose by 5.6% over the second quarter of 2006, with increases in all the principal countries.
In the second quarter of 2007 Fiat Group Automobiles delivered a total of approximately 578,700 units, 12.2% more than in the corresponding period of 2006. A total of approximately 360,600 units were delivered in Western Europe, for an increase of 3.8%. The performance of the Sector’s models was outstanding: Fiat Panda was the best-selling car in Europe in the A segment and the Punto was one of the most requested cars of its segment. The Fiat Bravo, the new C segment car, has now joined these models. As for sales performance by country, Sector deliveries in Italy rose by 3%; sales increased significantly in Spain (+26.8%), France (+7.8%) and Great Britain (+7.8%), in certain cases in sharp contrast with market weakness. Germany represented the sole exception where Sector deliveries declined by 9.5% in the face of extremely negative demand. The market shares of Fiat Group Automobiles continued to improve: its share of the automobile market reached 31.5% in Italy, up 0.9 percentage points over the second quarter of 2006; at the European level, its market share stood at 8.2% for an increase of 0.6 percentage points.
In Brazil the Sector took full advantage of the positive trend in demand and continued to improve its performance: deliveries increased by 35.6% with respect to the second quarter of 2006, and its share of the automobile market rose by 0.9 percentage points to 25.9%. In Poland, deliveries also increased significantly (+37.1%) and the Sector’s market share stood at 10.4% (-0.6 percentage points with respect to the second quarter of 2006).
With regard to light commercial vehicles, a total of 102,000 units were delivered, for an increase of 16.3% from the corresponding quarter of 2006. The Ducato and the New Scudo were the Sector’s best selling vehicles: the latter was marketed in January 2007 and is performing well as transport vehicle for both goods and passengers. In Western Europe deliveries totalled 66,000 units, an increase of 10.3%. Market share of light commercial vehicles stood at 43% in Italy, down 4.7 percentage points with respect to the second quarter 2006, which had benefited from significant fleet contracts which come up for renewal every four years, and at 12.8% (+0.3 percentage points) in Western Europe.
Fiat Group Automobiles had a trading profit of 193 million euros in the second quarter of 2007, a significant improvement from the 88 million euros reported in the second quarter of 2006. The increase is mainly attributable to higher volumes, a more favourable product mix following the introduction of new models and more efficient absorption of fixed production costs, net of higher marketing costs for the introduction of new models and increased network development costs. Furthermore, trading profit was impacted by the effects of strikes involving an important supplier.
In the first half of 2007 Fiat Group Automobiles had revenues of 13,084 million euros, an 11.2% increase over the first six months of 2006 reflecting higher sales volumes. On a comparable scope of operations, revenues increased by 13.5%.
Total deliveries in the first six months of 2007 amounted to 1,119,850, an increase of 11.9% over the corresponding period of 2006. In particular, in Western Europe the Sector’s deliveries increased by 5.2% to 716,200 units, notwithstanding a soft automobile market. Demand declined by 1.1% overall, with deliveries declining in Germany (-9.1%), France (-2.6%) and Spain (-1.6%), only partially offset by increases in Italy (+6.5%) and Great Britain (+2%).
Sector’s deliveries increased in Italy by 5.6%, in Spain by 23.3%, in France by 10.3% and in Great Britain by 8%, while the only reduction was recorded in Germany (-6.9%). In the first half of 2007, Fiat Group Automobiles share of the automobiles market in Italy reached 31.7%, from 30.6% in the first six months of 2006. The positive trend was confirmed in Western Europe too, where the overall market share stood at 8.4%, for an increase of 0.6 percentage points.
Sustained also by positive market trends, deliveries were up strongly in Brazil, where volumes increased by 30.6%, and in Poland, with a 19.1% increase.
A total of 196,200 light commercial vehicles were delivered in the first six months of 2007, an increase of 21.8% from the first half of 2006. 125,400 units were delivered in Western Europe (+15.3%), where the Sector’s market share reached 11.7% (+0.4 percentage points).
Fiat Group Automobiles had a trading profit of 385 million euros in the first half of 2007, a sharp improvement (+240 million euros) from the 145 million euros reported in the first six months of 2006. The reasons for this increase are the same as those provided for the quarter, to which should be added the impact of approximately 40 million euros arising from a non recurring gain (net of non recurring expenses) recorded in the first quarter of 2007 and net of increased research and development spending borne in connection with the renewal of the product portfolio.
Noteworthy events that occurred during the first half include the launch at the end of January of the Fiat Bravo, a model that plays a key role in the brand’s product line up renewal effort and thanks to which the Sector aims at conquering a significant share of the medium car segment, the most important in Europe. It is the first model equipped with the innovative Blue&Me Nav navigation system, developed thanks to the cooperation between Fiat Group Automobiles and Microsoft. Especially appreciated for its design, safety equipment and engine performance, Fiat Bravo received 55,000 orders from its launch to the end of June.
In March 2007, the Grande Punto Abarth Preview was presented at the Geneva Motor Show. This car marks the return of the legendary Abarth brand. The street model is flanked by the Grande Punto Abarth S2000 that will take part in the Italian Rally Championship and the International Rally Challenge. The Lancia brand presented the New Ypsilon MomoDesign, that is sold from June and is the first car with the new Lancia logo.
In April, Fiat Professional, the new brand of the Sector’s light commercial vehicles, enriched its products range in the passenger vehicles field with the introduction of the Panorama version of the Scudo.
In May, the Fiat Linea was presented in Istanbul. Fiat Linea is manufactured in the Bursa plant in Turkey and marketed in non-European countries and in some European countries.
In mid-June the Fiat brand introduced a new version of the Grande Punto equipped with the innovative 1.4 T-jet 120 hp gasoline engine, which produces approximately 10% less CO2 emission than comparable engines in its range.
The launch of the new Fiat 500 which took place on July 4, 2007 in Turin marked the return of the car that is an icon of the Sector and that represents the starting point for the Fiat of the future. Most of the 2007 production was sold out after its introduction in the Italian and French markets, and the Group is examining ways to boost production in the short term.
Maserati
Maserati had revenues of 177 million euros in the second quarter of 2007, up 19.6% over the corresponding period of 2006. The sharp increase was mainly attributable to the excellent performance of the new Quattroporte Automatica, which is enjoying success in the various markets where Maserati operates.
During the quarter, Maserati delivered 1,863 cars to the dealer network, an increase of 9.4% from the 1,703 units delivered in the second quarter of 2006. As stated above, sales volumes of the Quattroporte models grew significantly within the context of a luxury sedan market that contracted, while sales of the Coupé fell sharply in anticipation of the introduction of the new GranTurismo.
In the second quarter of 2007, for the first time since it was acquired by Fiat in 1993, Maserati reported a turnaround in performance and delivered a trading profit of 1 million euros, a sharp improvement from the 7 million euro trading loss reported in the corresponding quarter of last year, attributable to higher volumes and major cost efficiency gains.
In the first half of 2007, the Sector had revenues of 344 million euros, up 27.9% over the first half of 2006, once again driven by the excellent performance of the Quattroporte Automatica.
During the period, a total of 3,704 units were delivered to the dealer network, for an increase of 22% from the first half of 2006.
Maserati’s trading profit reached break-even during the first half of 2007, a significant improvement with respect to the trading loss of 26 million euros of the first six months of 2006. This improvement is attributable to the same reasons illustrated for the quarter.
The order backlog at the end of June 2007 amounted to 1,979 cars, 1,442 of which were Maserati GranTurismo, the new car presented at the Geneva Motor Show in March 2007 and expected to reach markets at the end of July 2007.
Ferrari
Ferrari recorded revenues of 423 million euros in the second quarter of 2007, an increase of 8.7% from the second quarter of 2006 mainly due to sales of the 599 GTB Fiorano model and of the coupé, spider and challenge versions of the F430 model.
Deliveries to the dealer network reached 1,651 units, 11.3% more than in the second quarter of 2006. A total of 1,740 units were delivered to end customers, an increase of 9% over the second quarter of 2006.
Ferrari closed the second quarter of 2007 with a trading profit of 70 million euros, an improvement of 17 million euros with respect to the trading profit of 53 million euros recorded in the corresponding period of 2006. This positive performance is mainly attributable to an increase in sales volumes and cost efficiency gains.
In the first half of 2007, Ferrari recorded revenues of 804 million euros, up 13.9% from the first half of 2006, mainly due to higher sales of the same models indicated for the quarter.
During the period, deliveries to the dealer network amounted to 3,247 units, an increase of 18% over the first six months of 2006. Deliveries to end customers totalled 3,364 units, up 14% from the same period a year ago.
Ferrari closed the first half of 2007 with a trading profit of 101 million euros, a sharp increase from the 64 million euro trading profit reported in the first six months of 2006. The reasons for this improvement are the same than those analysed for the quarter.
Agricultural and Construction Equipment
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | (in millions of euros) | | 2007 | | 2006 |
5,960 | | 5,666 | | Net revenues | | 3,269 | | 3,014 |
| 5.2 | | | | % change | | 8.5 | | |
537 | | 410 | | Trading profit | | 348 | | 273 |
| 127 | | | | Change | | 75 | | |
9.0 | | 7.2 | | Trading margin (%) | | 10.6 | | 9.1 |
In the second quarter of 2007, CNH-Case New Holland had revenues of 3,269 million euros. The change (+8.5%) over the second quarter of 2006 was negatively influenced by the translation impact of the dollar/euro exchange rate: in US dollar terms, revenues increased by 16.3%. The improvement was due to an increase in sales of higher horsepower tractors and combines in the agricultural segment and of construction equipment outside of North America, where demand for these products declined.
The global market for agricultural equipment increased by approximately 4% over the second quarter of 2006. Demand rose by 1% in North America due to higher sales of both tractors and combine harvesters. In Latin America, the market increased significantly, for both combine harvesters and tractors. In Western Europe, the market decreased for tractors while it was up for combine harvesters. In the Rest of the World countries, the market increased overall, with a strong demand for combine harvesters. With regard to deliveries of CNH-Case New Holland to its dealer network, in the second quarter of 2007 tractor volumes increased by 13% with respect to the second quarter of 2006. The improvement would be higher (+17%) if only 40+ horsepower range tractors (which represent the core segment for CNH) are considered. Deliveries of combine harvesters to the network increased by 37% over the same quarter of 2006. This significant improvement was driven by good performances in all regions, outperforming the demand growth rate. The Case IH and New Holland brands increased their market shares for both tractors and combine harvesters.
In the second quarter of 2007, the global construction equipment market grew by 10% with respect to the second quarter of 2006. Demand for both heavy and light equipment grew significantly in all the main geographic regions except North America where it declined by 14%. In the second quarter of 2007, CNH-Case New Holland deliveries to the network were essentially flat with respect to the second quarter of 2006. The decline in sales volumes in North America was offset by good performances in all the other geographic regions.
CNH-Case New Holland closed the second quarter of 2007 with a trading profit of 348 million euros, an increase of 75 million euros from the 273 million euros reported in the second quarter of 2006. The increase in volume, a more favourable mix and lower warranty costs connected with improved product quality more than offset the increase in raw material costs.
In the first half of 2007 CNH-Case New Holland revenues totalled 5,960 million euros, up 5.2% from the same period a year earlier. The change from the first half of 2006 was negatively influenced by the translation impact of the dollar/euro exchange rate; in U.S. dollar terms, revenues increased by 13.7% mainly due to an increase in sales of higher horsepower tractors and combine harvesters and improved pricing.
The global market for agricultural equipment increased by 3% in the first half of 2007, with positive performances for both tractors and combine harvesters and high growth rates in Latin America. CNH deliveries of tractors to its dealer network rose by 4% from the first half of 2006, with deliveries of 40+ horsepower range tractors increasing by 8%. Sales volumes of combine harvesters rose by 26% reflecting positive performances across all geographic regions. In the construction equipment segment, within the context of a market that grew (+12%) at the global level, but contracted significantly in North America, CNH deliveries to the network were in line with the first half of 2006: the decrease in North America was offset by positive performances in other areas.
In the first half of 2007 CNH had a trading profit of 537 million euros, significantly higher that the trading profit of 410 million euros reported in the first six months of 2006. Increased volumes, a more favourable product mix, higher prices in both segments and reduced warranty costs as a result of improved product quality amply offset higher raw material costs.
CNH continued to enrich its product offer by introducing new models focused on the differentiation between four distinct global brands.
New Holland Agricultural Equipment launched the important T6000 Series and T7000 Series Tractors (100 to 213 hp range) and T5600 Series tractor in the domestic Chinese market. Case IH started deliveries of the new Puma Series tractors and the new Axial-Flow 7010 combine harvester.
New Holland Construction launched its new B-series crawler excavators, telehandlers, skid steer loaders and mini excavators. Case Construction launched its new M Series backhoe loaders and E Series wheel loaders.
Trucks and Commercial Vehicles
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | (in millions of euros) | | 2007 | | 2006 |
5,348 | | 4,357 | | Net revenues | | 2,861 | | 2,286 |
| 22.7 | | | | % change | | 25.2 | | |
374 | | 233 | | Trading profit | | 224 | | 163 |
| 141 | | | | Change | | 61 | | |
7.0 | | 5.3 | | Trading margin (%) | 7.8 | | 7.1 |
In the second quarter of 2007, Iveco had revenues of 2,861 million euros, a sharp increase of 25.2% from the corresponding period of 2006, attributable to significantly higher sales volumes and improved pricing.
Western European demand for commercial vehicles (curb weight> 2.8 tons) increased overall by 6.4% compared with the second quarter of 2006. The increase was driven by the growth (+14.4%) in the light vehicle segment, while the medium and heavy segment markets posted declines of 14.4% and 10.3% respectively over the second quarter of 2006, which was characterized by a high number of pre-registrations prior to the introduction of the digital tachograph on these vehicles and the phase-out of production of Euro 3-compliant engines. Demand rose in all the principal European countries, with the exception of the British market, which contracted by 3.9%. Significant increases were recorded in Spain (+13.7%), France (+7%), Italy (+7.9%) and Germany (+4.6%). Demand for buses in the five most important Western European markets fell by 2.3% with respect to the second quarter of 2006.
Iveco delivered a total of 56,600 vehicles in the second quarter of 2007, 3,700 of which sold with buy back commitments, posting an increase of 19.1% over the corresponding period of 2006. In Western Europe, a total of 41,100 vehicles were delivered for a 12.4% improvement, significantly outperforming the market. The Sector recorded remarkable improvements in the principal European countries, especially in the light and heavy vehicles segments, with increases in Germany (+24.2), Spain (+16.5%), France (+9.2%) and Italy (+6.8%). As regards the main geographic areas outside Western Europe where the Sector operates, sales volumes increased significantly in Eastern Europe (+67%) and Latin America (+45%).
Iveco’s market share in Western Europe stood at 10.5%, a slight decrease (-0.4 percentage points) with respect to the second quarter of 2006. It was negatively impacted by a decline in the light vehicle segment (-0.5 percentage points), partly attributable to increased demand for vans, which was also satisfied by the offer available of car-derived vehicles. This decline was only partially offset by the improvements achieved in the market shares of medium and heavy vehicles (+2 percentage points and +0.4 percentage points, respectively). In any case, its market share increased with respect to the first quarter of this year thereby confirming its growth trend in 2007.
In the second quarter of 2007, Iveco had a trading profit of 224 million euros, a sharp improvement (+61 million euros) with respect to the 163 million euros recorded in the second quarter of 2006. The change is mainly attributable to the strong increase in sales volumes and better pricing resulting from the improvement in the competitive repositioning of its products, especially heavy vehicles.
In the first half of 2007, Iveco’s revenues totalled 5,348 million euros. The sharp increase (+22.7%) over the same period a year ago, reflects higher sales volumes and better pricing.
In the first half of 2007 Iveco delivered a total of 104,500 vehicles, including 6,900 with buy back commitments, posting an increase of 16.8% over the corresponding period of 2006. In Western Europe alone, a total of 76,800 vehicles were delivered for an 11.2% increase in sales in a positive market environment (+6.5%, with diverging performances in the various segments, as previously mentioned for the quarter). Deliveries increased sharply, especially for light and heavy vehicles, throughout the principal European markets, with the exception of Great Britain where demand declined. In the first six months of the year the Sector confirmed its high performances in the other geographic areas with an increase in deliveries of 63% in Eastern Europe and 44% in Latin America. The Sector’s market share in Western Europe (10.4%) declined slightly (-0.2 percentage points) with respect to the first six months of 2006, as the Sector’s market share decreased slightly for light vehicles (-0.1 percentage points), while it increased for medium and heavy vehicles (+0.8 percentage points and +0.4 percentage points, respectively).
In the first half of 2007, trading profit reached 374 million euros, up 141 million euros from the first half of 2006. The reasons for the sharp improvement are the same as those mentioned for the quarter.
On February 14, 2007 Iveco and Tata Motors announced the signing of a Memorandum of Understanding to analyse the feasibility of cooperation, across markets, in the area of commercial vehicles.
In March Iveco launched the new Stralis, the latest evolution of its heavy-range on-road vehicles. The Stralis, equipped with three types of Euro 5-compliant engines and with a larger and restyled cabin, is marketed in numerous versions.
In April Iveco presented the new Trakker, an off-road dump truck and construction vehicle, with two new cabin models. At the same time Iveco also launched the latest version of the Daily CNG, a natural gas powered vehicle.
In May the Citelis bus, a new vehicle for passenger transport specifically conceived for urban areas, was presented to customers and the Italian press.
In June 2007 Iveco and the industrial group Samotlor-NN, one of the major Russian bodybuilders, signed an industrial agreement that precedes the realisation of a joint venture, 51% of which will be held by Iveco, for the production in Russia of the Daily, the light commercial vehicle of the Iveco range, in particular those used for the transport of goods, minibuses and ambulances.
Components and Production Systems
Net revenues
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | % change | | (in millions of euros) | | 2007 | | 2006 | | % change |
3,551 | | 3,170 | | 12.0 | | FPT Powertrain Technologies | | 1,843 | | 1,592 | | 15.8 |
2,502 | | 2,342 | | 6.8 | | Components (Magneti Marelli) | | 1,274 | | 1,146 | | 11.2 |
391 | | 520 | | -24.8 | | Metallurgical Products (Teksid) | | 179 | | 260 | | -31.2 |
536 | | 652 | | -17.8 | | Production Systems (Comau) | 307 | | 346 | | -11.3 |
(272) | | (250) | | - | | Eliminations | | (139) | | (114) | | - |
6,708 | | 6,434 | | 4.3 | | Total | | 3,464 | | 3,230 | | 7.2 |
Trading profit
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | Change | | (in millions of euros) | | 2007 | | 2006 | | Change |
121 | | 86 | | 35 | | FPT Powertrain Technologies | | 77 | | 52 | | 25 |
101 | | 92 | | 9 | | Components (Magneti Marelli) | | 56 | | 50 | | 6 |
32 | | 30 | | 2 | | Metallurgical Products (Teksid) | | 12 | | 18 | | -6 |
(25) | | (21) | | -4 | | Production Systems (Comau) | 1 | | (15) | | 16 |
229 | | 187 | | 42 | | Total | | 146 | | 105 | | 41 |
3.4 | | 2.9 | | | | Trading margin (%) | | 4.2 | | 3.3 | |
FPT Powertrain Technologies
FPT Powertrain Technologies had revenues of 1,843 million euros in the second quarter of 2007, for an increase of 15.8% over the same period in 2006. The automotive powertrain activities (Passenger & Commercial Vehicles product line) and the powertrain activities for commercial vehicles, industrial applications in agricultural and construction equipment and marine engines (Industrial & Marine product line) contributed to this result. Most of the Sector output was sold to other Group Sectors, while sales to third parties and joint ventures represented 24% of revenues of the period.
In the second quarter of 2007, the Passenger & Commercial Vehicles product line had revenues of 1,009 million euros (+15.2%), with 79% of production earmarked for Group Sectors. During the quarter, the product line sold a total of 676,300 engines (+11.8%), and 543,200 transmissions (+24.7%).
The Industrial & Marine product line had revenues of 829 million euros in the second quarter of 2007, up 17.1% from the second quarter of 2006, mainly due to higher sales to Iveco and Sevel, the joint venture for the production of light commercial vehicles, and a higher mix of products sold to CNH-Case New Holland. A total of 134,600 engines were sold (+15.5%), principally to Iveco (45%), CNH (17%) and Sevel (26%). In addition, 32,600 transmissions (+2.8% net of a reselling activity no longer performed in 2007) and 78,300 axles (+7.6%) were sold.
In the second quarter of 2007, the Sector had a trading profit of 77 million euros, against 52 million euros in the second quarter of 2006. The increase stemmed from higher sales volumes and significant purchasing and manufacturing efficiencies.
In the first half of 2007, FPT reported revenues of 3,551 million euros (25% of which to third parties and joint ventures), for an increase of 12% over the same period a year ago.
In the first half of 2007, the Passenger & Commercial Vehicles product line posted revenues of 1,944 million euros (+10.4%), 76% of which earmarked for Group Sectors. During the period, a total of 1,310,100 engines (+8.1%) and 1,043,800 transmissions (+20.1%) were sold. With sales of 260,000 engines (+10.7%), the Industrial & Marine product line had revenues of 1,597 million euros. The 14% increase over the first half of 2006 arose from sales to all the product line’s main customers.
Trading profit for the first half of 2007 was 121 million euros, an increase from the 86 million euros of the same period a year ago attributable to higher volumes and efficiency gains.
In June 2007, the DaimlerChrysler Truck Group and FPT Powertrain Technologies announced that they concluded a strategic cooperation agreement in the field of powertrains. The first step of this agreement concerns the long-term supply of light-duty diesel engines (FPT F1C) to the Mitsubishi Fuso Bus & Truck Corporation. These engines will be mounted on a light commercial vehicle to be marketed in major markets, including Europe and Japan.
Magneti Marelli
In April 2007, following the acquisition of 80% of Concordia Finance S.A., Magneti Marelli reacquired control of the automotive spare parts distribution activities. The After Market Parts and Services business unit was therefore consolidated as of May 1, 2007. This business unit is active worldwide in the distribution of spare parts in the Independent After Market segment.
In the second quarter of 2007, Magneti Marelli had revenues of 1,274 million euros, an increase of 11.2% from the second quarter of last year. The impact of the mentioned change in the scope of operations was largely nullified by the sale to Fiat Group Automobiles of the activities for the final assembly of suspension systems earmarked for Fiat models, which took place in the second quarter of 2006. On a comparable basis the increase in revenues would have amounted to 10.7%, attributable to higher sales of Fiat models. Furthermore during the period all business units benefited from the sale of products for the Fiat 500. Sales to third parties also increased, especially of new applications in the Nafta area.
As regards business units, Lighting revenues increased in particular in its principal markets, Germany and the Nafta area. Sales to Fiat also increased significantly. Engine Control revenues rose in particular for the Fiat customer in Europe and Brazil; Electronic Systems revenues were impacted by lower sales to French customers, against higher sales to other third parties and Fiat that enabled revenues to be at the same levels of last year. The rise in revenues at the Suspension Systems business unit was mainly connected to higher sales to Fiat, due to the good performance of production in Poland and Brazil. The same is true for the Exhaust Systems business unit whose revenues grew as a result of increased sales to Fiat as well as higher sales to third parties in Spain.
In the second quarter of 2007 Magneti Marelli had a trading profit of 56 million euros. The 6 million euro improvement with respect to the second quarter of 2006 mainly reflected the positive impact of higher sales volumes and the streamlining of the cost base, which offset competitive price pressure and higher raw material costs.
In the first half of 2007 Magneti Marelli had revenues of 2,502 million euros, an increase of 6.8% with respect to last year. On a comparable scope of operations, the increase in revenues would have amounted to 9%, due to buoyant sales to Fiat and third parties, with a substantial contribution from high-tech products.
In the first six months of 2007, Magneti Marelli had a trading profit of 101 million euros. The 9 million euro increase from the first half of 2006 is attributable to the same reasons illustrated for the quarter.
In June 2007, Magneti Marelli and Avtopribor signed a letter of intent for the creation of a joint venture in Russia, aimed at the design, development, production and marketing of electronic instrument clusters for motor vehicles.
The agreement calls for the future company’s capital to be participated for 51% by Magneti Marelli and for 49% by Avtopribor. The closing of the transaction is expected to take place by year-end.
Teksid
At the beginning of March 2007, the sale of the interests held in Meridian Technologies Inc., which was headed by Teksid’s Magnesium Business Unit, to a consortium of investors headed by the Swiss holding company Estatia AG was finalised on receiving the necessary authorisations. Said activities were therefore deconsolidated as of that date.
In the second quarter of 2007, the Sector had revenues of 179 million euros, a decrease of 31.2% from the 260 million euros reported in the second quarter of last year. Excluding the impact of the mentioned sale, the decrease in revenues would have amounted to 2.7% and is attributable to lower sales volumes at the Cast Iron Business Unit in North America.
Teksid closed the second quarter of 2007 with a trading profit of 12 million euros, against a trading profit of 18 million euros in the corresponding quarter of 2006. Considering the fact that the Magnesium Business Unit had contributed 8 million euros to this result, on a comparable scope of operations the increase would have amounted to approximately 2 million euros, attributable to efficiency gains which more than offset higher material and energy costs.
In the first half of 2007 Teksid had revenues of 391 million euros, down 24.8% from the first six months of 2006. Excluding the impact of the mentioned change in the scope of operations, the decrease amounted to 6.7%.
Teksid’s trading profit in the first six months of 2007 was 32 million euros, with respect to 30 million euros in the first half of 2006. Excluding the positive result (11 million euros) posted by the Magnesium Business Unit in the March-June 2006 period, the improvement with respect to the first half of 2006 would have amounted to 13 million euros.
Comau
Comau had revenues of 307 million euros in the second quarter of 2007, down 11.3% from the second quarter of 2006. The decrease is due to the Body-welding operations in Europe and to the Powertrain operations, which started the year with a low order backlog. Revenues were also negatively impacted by foreign currency translation differences.
The low level of investments by carmakers negatively impacted order intake for the period, which totalled 291 million euros, down 13.9% from the second quarter of 2006.
In the second quarter of 2007, Comau had a trading profit of 1 million euros, as against a trading loss of 15 million euro in the second quarter of 2006. This improvement is attributable to the first benefits arising from a reshaping and restructuring plan launched in the second half of 2006; the effects of this process will be fully visible in 2008.
In the first half of 2007 Comau had revenues of 536 million euros, down 17.8% from the corresponding period of 2006. As for the quarter, the change is attributable to the Body-welding operations in Europe and to the Powertrain operations.
Order intake in the first half of 2007 totalled 689 million euros, a decrease of 5.6% from the first six months of 2006. Order backlog at the end of June totalled 665 million euros, up 15% from December 31, 2006, but still lower than at the end of June 2006.
Comau closed the first half of 2007 with a trading loss of 25 million euros, against a trading loss of 21 million euros in the first six months of 2006.
Net revenues
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | % change | | (in millions of euros) | | 2007 | | 2006 | | % change |
205 | | 202 | | 1.5 | | Publishing and Communications (Itedi) | | 105 | | 108 | | -2.8 |
480 | | 546 | | -12.1 | | Holding companies and Other companies | | 247 | | 282 | | -12.4 |
685 | | 748 | | -8.4 | | Total | | 352 | | 390 | | -9.7 |
Trading profit
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | Change | | (in millions of euros) | | 2007 | | 2006 | | Change |
6 | | 5 | | 1 | | Publishing and Communications (Itedi) | | 6 | | 5 | | 1 |
(91) | | (36) | | -55 | | Holding companies and Other companies and Eliminations | | (42) | | (21) | | -21 |
(85) | | (31) | | -54 | | Total | | (36) | | (16) | | -20 |
Itedi
In the second quarter of 2007, Itedi had revenues of 105 million euros, down 2.8% from the corresponding quarter of the previous year. Lower advertising revenues at Publikompass, mainly due to the termination of concession agreements of certain newspapers, were only partly offset by higher revenues at Editrice La Stampa, due to higher sales of additional products notwithstanding lower newspaper sales.
The Sector closed the second quarter of 2007 with a trading profit of 6 million euros, compared with 5 million euros in the corresponding period of 2006. Cost containment initiatives and higher revenues from additional items contributed to this improvement.
In the first half of 2007 Itedi had revenues of 205 million euros, an increase of 1.5% with respect to the first six months of 2006, as higher sales of additional products drove Editrice La Stampa revenues up. Trading profit rose by one million euros to 6 million euros mainly due to the same reasons mentioned for the quarter, which offset the termination of government subsidies on paper that had been present in the first half of 2006.
Holding companies and Other companies
In the second quarter of 2007, Holding companies and Other companies had revenues of 247 million euros; the decrease of 12.4% from the corresponding quarter of 2006 is connected to the sale of Ingest Facility (active in the facility management field) in the first quarter of 2007.
Holding companies and Other companies had a trading loss of 42 million euros in the second quarter of 2007 against a trading loss of 21 million euros in the second quarter of 2006 (including 11 million euro trading profit of the Services Sector). The worsening is attributable to changes in the scope of consolidation (-8 million euros), of which 3 million euros due to the sale of B.U.C. – Banca Unione di Credito in the third quarter of 2006 and 5 million euros for the sale of certain activities which were previously part of the Services Sector.
In the first half of 2007, revenues of Holding companies and Other companies declined by 12.1% to 480 million euros. Trading loss came to 91 million euros in the first half of 2007 from 36 million euros in the first six months of 2006 (which included a profit of 15 million euros of the Services Sector). The change of 55 million euros is attributable to lower volumes of activity for the “Treno Alta Velocità” (TAV) contract (in the first quarter of 2006 there had still been significant income from the Turin-Novara line, which was completed in that period) for 8 million euros and to the change in the scope of consolidation for 13 million euros, 8 million euros of which arose from the sale of B.U.C.-Banca Unione di Credito. To these effects must also be added non-cash costs of 22 million euros recognised in accordance with IFRS in connection with the stock option plan on Fiat shares approved by the Board of Directors at the end of 2006 subject to the approval by stockholders in general meeting; this approval was given in April 2007.
Consolidated Statement of Cash Flows
The consolidated statement of cash flows is presented as a component of the Interim Consolidated Financial Statements. A condensed version thereof as well as comments are provided below.
| (in millions of euros) | | 1st Half 2007 | | 1st Half 2006 |
A) | Cash and cash equivalents at beginning of period as reported | | 7,736 | | 6,417 |
| | Cash and cash equivalents included as Assets held for sale | | 5 | | - |
B) | Cash and cash equivalents at beginning of period | | 7,741 | | 6,417 |
C) | Cash flows from (used in) operating activities during the period | | 2,289 | | 1,926 |
D) | Cash flows from (used in) investment activities | | (2,145) | | (1,438) |
E) | Cash flows from (used in) financing activities | | (728) | | (460) |
| | Translation exchange differences | | 56 | | (128) |
F) | Total change in cash and cash equivalents | | (528) | | (100) |
G) | Cash and cash equivalents at end of period | | 7,213 | | 6,317 |
| | of which: cash and cash equivalents included as Assets held for sale | | 36 | | 191 |
H) | Cash and cash equivalents at end of period as reported | | 7,177 | | 6,126 |
During the first half of 2007, cash flows from operating activities totalled 2,289 million euros.
Income cash flow, that is net income plus amortisation and depreciation, dividends, changes in provisions and items related to sales with buy-back commitments, net of Gains/losses and other non-monetary items, amounted to 1,953 million euros, to which the cash generated by the decrease in working capital must be added which, when calculated on a comparable consolidation and exchange rate basis, amounted to 336 million euros.
Cash flows used in investment activities totalled 2,145 million euros. Net of the decrease in securities held as current assets (38 million euros), which mainly represent a temporary investment of funds, investment activities used a total of 2,183 million euros.
Investments in tangible assets (including investments in vehicles for long-term renting operations for 140 million euros) and intangible assets (including capitalised development costs for 400 million euros) totalled 1,428 million euros.
In the first half of 2007 proceeds from the sale of non-current assets totalled 278 million euros and relate mostly to the sales of Meridian Technologies Inc. (Metallurgical Products Sector) and Ingest Facility (included in the Services Sector until the end of 2006), the receipt of extended term payments as part of the sale of 51% of FAFS which took place at the end of 2006, as well as the proceeds from the sales of vehicles as part of the long-term renting operations.
The increase in receivables from financing activities (881 million euros) is mainly attributable to growth in financing extended by the financial services companies of CNH-Case New Holland, partly offset by the decrease in financing activities of the financial services companies of Fiat Group Automobiles that were not conveyed to Fiat Auto Financial Services at the end of 2006 and by the decrease in other financial receivables.
Cash flows used in financing activities totalled 728 million euros mainly due to the payment of dividends (308 million euros) as well as the purchase of treasury stock as part of the Treasury Stock Purchase Programme approved by the Stockholders Meeting held in April 2007 and aimed at servicing stock option plans and the investment of liquidity, for 214 million euros net of sales resulting from the exercise of stock options.
Balance Sheet of the Group at June 30, 2007
At June 30, 2007, Total Assets amounted to 60,781 million euros, an increase of 2,478 million euros from 58,303 million euros at December 31, 2006.
At the end of the period, Total Assets included assets reclassified under “Assets held for sale” for 256 million euros, mainly relating to the Production Systems Sector and Fiat Group Automobiles (activities destined to be conveyed to the joint venture with Tata Motors in India).
In the first six months of 2007, Non-current Assets increased by 74 million euros.
In particular, the increase recorded in Intangible Assets (+81 million euros) mainly due to an increase in Goodwill following the repurchase of the activities relating to the distribution of automotive parts (After Market Parts and Services business unit) by Magneti Marelli (+61 million euros) and in Leased Assets (+75 million euros) was only partially offset by the decrease in Property, plant and equipment of 128 million euros, which is largely attributable to the negative balance of investments, depreciation and disposals (mainly vehicles sold by Iveco with buy-back commitments) and the mentioned reclassification of assets under Assets held for sale.
At June 30, 2007, receivables from financing activities totalled 12,717 million euros, an increase of 974 million euros from December 31, 2006. Net of the foreign exchange impact and of writedowns carried out, the increase amounted to 881 million euros.
Working capital, net of items connected with the sales of vehicles with buy-back commitments, is negative by 1,305 million euros, 467 million euros less than at the beginning of the fiscal year, when working capital was negative by 838 million euros.
| (in million of euros) | | At 06.30.2007 | | At 12.31.2006 | | Change |
| Net inventories | (1) | 8,305 | | 7,553 | | 752 |
| Trade receivables | | 5,546 | | 4,944 | | 602 |
| Trade payables | | (13,951) | | (12,603) | | -1,348 |
| Other receivables/(payables), accruals and deferrals | (2) | (1,205) | | (732) | | -473 |
Working capital | | (1,305) | | (838) | | -467 |
(1) Inventories are shown net of the value of vehicles sold with buy-back commitments by Fiat Group Automobiles.
(2) Other payables included in the balance of Other receivables/(payables), accruals and deferrals exclude amounts due to customers corresponding to the buy-back price due upon expiration of the related contracts and the amount of the fees paid in advance by customers for vehicles sold with buy-back commitments, which is equal to the difference at the date of signing the contract between the sales price and the buy-back price and which is allocated over the term of the entire agreement.
In the first half of 2007, the increase in net inventories (752 million euros) and trade receivables (602 million euros) is attributable to higher levels of activity at Fiat Group Automobiles, Iveco, CNH-Case New Holland (the latter also due to seasonal growth), Magneti Marelli and FPT Powertrain Technologies.
At June 30, 2007 trade receivables, other receivables and receivables from financing activities falling due after that date and sold without recourse and therefore eliminated from the balance sheet in compliance with IAS 39 derecognition requirements, totalled 5,974 million euros (5,697 million euros at December 31, 2006). This amount includes receivables, mainly from the sales network, sold to jointly-controlled financial services companies (FAFS) for 3,408 million euros (3,400 million euros at December 31, 2006) and associated financial services companies (Iveco Financial Services, controlled by Barclays) for 863 million euros (661 million euros at December 31, 2006).
The increase in net inventories and trade receivables (1,354 million euros) was more than offset by the rise in trade payables, which increased by 1,348 million euros in the first half of 2007 mainly as a result of high activity levels and the rise in the liability balance of Other receivables/(payables), accruals and deferrals (473 million euros) which is mainly attributable to the change in receivables from/payables to tax authorities as well as receipt of extended term payments as part of the sale of 51% of FAFS.
At June 30, 2007 consolidated net debt (including net debt reclassified among Assets/Liabilities held for sale) amounted to 12,155 million euros, 319 million euros more than the 11,836 million euros reported at December 31, 2006 due to growth in the investment portfolio of financial services companies mentioned further on.
| (in millions of euros) | | At 06.30.2007 | | At 12.31.2006 |
| Debt | | (19,934) | | (20,188) |
| - Asset-backed financing | | (7,697) | | (8,344) |
| - Other debt | | (12,237) | | (11,844) |
| Debt included among Liabilities held for sale | | (42) | | (33) |
| Current financial receivables from jointly controlled financial services entities | (a) | 47 | | 143 |
Financial payables net of intersegment balances and current financial receivables from jointly controlled financial services entities | | (19,929) | | (20,078) |
| Other financial assets | (b) | 525 | | 382 |
| Other financial liabilities | (b) | (152) | | (105) |
| Current securities | | 188 | | 224 |
| Cash and cash equivalents | | 7,177 | | 7,736 |
| Cash and cash equivalents included among Assets held for sale | | 36 | | 5 |
Net debt | | (12,155) | | (11,836) |
- Industrial Activities | | (873) | | (1,773) |
- Financial Services | | (11,282) | | (10,063) |
(a) This item includes current financial receivables from the joint venture Fiat Auto Financial Services (FAFS). (b) This item includes the asset and liability fair values of derivative financial instruments. |
At June 30, 2007, debt decreased by 254 million euros. Net of the change in foreign exchange rates, which led to a decrease in debt of 61 million euros, and the change in the scope of consolidation, the decrease of approximately 400 million euros is attributable to lower asset-backed financing (approximately 600 million euros net of exchange rate impacts) and partly to lower bank loans and other debt (approximately 800 million euros, 21 million euros of which relating to bonds) which were offset only in part by the new 1 billion euro bond with a fixed coupon of 5.625% and due in June 2017, whose issuance was completed in June.
The cash position (cash, cash equivalents and current securities including those reclassified under Assets held for sale, for 36 million euros) totalled 7,401 million euros at June 30, 2007, a decrease of 564 million euros with respect to 7,965 million euros at December 31, 2006.
At June 30, 2007, cash and cash equivalents included 741 million euros (627 million euros at December 31, 2006), specifically allocated to service the debt for securitisation structures, mainly recognised under “Asset-backed financing”.
Group employees
At June 30 2007, the Group had 180,031 employees, an increase of 5,429 over the 174,602 employees at March 31 2007, and 8,019 more than the 172,012 employees at December 31 2006. In both cases, staff increases referred mainly to blue-collar workers that were hired in connection with higher production volumes.
Conversely, changes in the scope of operations entailed a staff decrease of approximately 700 employees with respect to December 31, 2006, mainly due to the sale of Teksid’s Magnesium activities and Ingest Facility, offset in part by the consolidation, in the second quarter of 2007, of the After Market Parts and Services activities by Magneti Marelli.
Industrial Activities and Financial Services Activities: performance in the second quarter and first half of 2007
The following analyses of the consolidated income statement, balance sheet and statement of cash flows present separately the consolidated data of the Group's Industrial Activities and Financial Services activities. The latter include the retail financing, leasing, and rental companies of CNH-Case New Holland, Iveco and Fiat Group Automobiles. Starting from the end of 2006, Fiat Group Automobiles no longer consolidates on a line by line basis the activities that were transferred to the joint venture Fiat Auto Financial Services (FAFS), established at the end of December 2006 with Crédit Agricole, which is accounted for using the equity method. Starting from the end of 2006, financial services activities are performed by Ferrari as well.
Certain of the Iveco financial services companies also carry out their business through commercial intermediation activities: in order to present the contribution made by Financial Services activities to the Group’s performance more clearly, it has been decided to exclude this commercial intermediation activity from the presentation of their revenues and cost of sales from January 1, 2007. As a result of this, the figures for the second quarter and first half of 2006 have been reclassified, leading to a reduction in the revenues and the cost of sales of the Financial Services activities of the same amount, with no effect on the trading profit of these activities, or on the income statement of Industrial Activities or that of the Group as a whole.
Principles of analysis
The separation between Industrial Activities and Financial Services activities is made by preparing specific subconsolidated financial statements on the basis of the normal business performed by each Group company.
The investments held by companies belonging to one activity segment in companies included in another segment are accounted for using the equity method.
To avoid a misleading presentation of net result, the effect of this accounting is classified in the income statement item Result from intersegment investments.
The Holding companies (Fiat S.p.A., IHF-Internazionale Holding Fiat S.A., Fiat Partecipazioni S.p.A. and Fiat Netherlands Holding N.V.) are classified under Industrial Activities.
The sub-consolidated financial statements of Industrial Activities also include companies that operate centralised cash management activities, i.e. those which raise financial resources on the market and finance Group companies, without providing financial services support to third parties.
Operating Performance by Activity Segment
Second Quarter results | 2nd Quarter 2007 | | 2nd Quarter 2006 |
| (in millions of euros) | Consolidated | Industrial Activities | Financial Services | | Consolidated | Industrial Activities | Financial Services |
| Net revenues | 15,179 | 14,964 | 347 | | 13,608 | 13,207 | 552 |
| Cost of sales | 12,581 | 12,491 | 222 | | 11,419 | 11,157 | 413 |
| Selling, general and administrative costs | 1,276 | 1,234 | 42 | | 1,196 | 1,126 | 70 |
| Research and development | 381 | 381 | - | | 371 | 371 | - |
| Other income (expenses) | 5 | 3 | 2 | | 37 | 35 | 2 |
Trading profit | 946 | 861 | 85 | | 659 | 588 | 71 |
| Gains (losses) on the disposal of investments | 8 | 8 | - | | 6 | 9 | (3) |
| Restructuring costs | 7 | 7 | - | | 5 | 5 | - |
| Other unusual income (expenses) | (1) | (1) | - | | (1) | 1 | (2) |
Operating result | 946 | 861 | 85 | | 659 | 593 | 66 |
| Financial income (expenses) | (111) | (111) | - | | (163) | (163) | - |
| Result from investments (*) | 40 | 19 | 21 | | 46 | 33 | 13 |
Result before taxes | 875 | 769 | 106 | | 542 | 463 | 79 |
| Income taxes | 248 | 218 | 30 | | 212 | 210 | 2 |
Net result | 627 | 551 | 76 | | 330 | 253 | 77 |
| Result from intersegment investments | - | 76 | - | | - | 77 | - |
Net result | 627 | 627 | 76 | | 330 | 330 | 77 |
| (*) | This item includes investment income as well as writedowns and upward adjustments in non-intersegment investments accounted for using the equity method. |
First-Half results | 1st Half 2007 | | 1st Half 2006 |
| (in millions of euros) | Consolidated | Industrial Activities | Financial Services | | Consolidated | Industrial Activities | Financial Services |
| Net revenues | 28,855 | 28,395 | 675 | | 26,164 | 25,411 | 1,085 |
| Cost of sales | 24,060 | 23,843 | 432 | | 22,068 | 21,590 | 810 |
| Selling, general and administrative costs | 2,531 | 2,449 | 82 | | 2,409 | 2,270 | 139 |
| Research and development | 755 | 755 | - | | 701 | 701 | - |
| Other income (expenses) | 32 | 32 | - | | (4) | (7) | 3 |
Trading profit | 1,541 | 1,380 | 161 | | 982 | 843 | 139 |
| Gains (losses) on the disposal of investments | 52 | 52 | - | | 8 | 11 | (3) |
| Restructuring costs | 22 | 22 | - | | 8 | 8 | - |
| Other unusual income (expenses) | (30) | (30) | - | | - | 2 | (2) |
Operating result | 1,541 | 1,380 | 161 | | 982 | 848 | 134 |
| Financial income (expenses) | (168) | (168) | - | | (298) | (298) | - |
| Result from investments (*) | 76 | 39 | 37 | | 90 | 64 | 26 |
Result before taxes | 1,449 | 1,251 | 198 | | 774 | 614 | 160 |
| Income taxes | 446 | 390 | 56 | | 293 | 264 | 29 |
Net result | 1,003 | 861 | 142 | | 481 | 350 | 131 |
| Result from intersegment investments | - | 142 | - | | - | 132 | - |
Net result | 1,003 | 1,003 | 142 | | 481 | 482 | 131 |
(*)This item includes investment income as well as writedowns and upward adjustments in non-intersegment investments accounted for using the equity method.
Industrial Activities
In the second quarter of 2007, net revenues of Industrial Activities totalled 14,964 million euros, an increase of 13.3% from the corresponding period of the previous year. This improvement was driven by particularly positive performances at Iveco and the Automobiles businesses. In US dollar terms, CNH-Case New Holland revenues increased by 17%. As for the Components and Production Systems businesses, revenues increased at FPT Powertrain Technologies and Magneti Marelli while they decreased at Teksid, mainly due to the sale of the Magnesium operations, and at Comau.
In the first half of 2007, net revenues for Industrial Activities increased by 11.7%, rising from 25,411 million euros in the first half of 2006 to 28,395 million euros.
In the second quarter of 2007, trading profit of Industrial Activities totalled 861 million euros, an increase of 273 million euros compared to the 588 million euros reported in the second quarter of 2006: all industrial businesses contributed to this improvement, with the Automobiles businesses, Iveco and CNH-Case New Holland delivering outstanding results.
Trading profit was 1,380 million euros in the first half of 2007, up sharply (+537 million euros) from the trading profit of 843 million euros reported in the first half of 2006.
In the second quarter of 2007, Industrial Activities had an operating income of 861 million euros, compared with 593 million euros in the second quarter of 2006. The 268 million euro increase reflects higher trading profit.
The operating income of Industrial Activities was 1,380 million euros in the first half of 2007, an improvement of 532 million euros compared with operating income of 848 million euros in 2006.
Financial Services
In the second quarter of 2007, Financial Services had net revenues of 347 million euros, a decrease of 37.1% from the corresponding period of 2006 due to changes in the scope of operations (sale of B.U.C. – Banca Unione di Credito in August 2006 and establishment of FAFS at the end of December 2006).
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | % change | | (in millions of euros) | | 2007 | | 2006 | | % change |
66 | | 484 | | -86.4 | | Fiat Group Automobiles | | 33 | | 245 | | -86.5 |
2 | | - | | n.s. | | Ferrari | | 1 | | - | | n.s |
551 | | 509 | | 8.3 | | Agricultural and Construction Equipment (CNH) | 284 | | 260 | | 9.2 |
56 | | 56 | | - | | Trucks and Commercial Vehicles (Iveco) | | 29 | | 30 | | -3.3 |
- | | 36 | | n.s. | | Holding companies and Other companies (1) | | - | | 17 | | n.s |
675 | | 1,085 | | -37.8 | | Total | | 347 | | 552 | | -37.1 |
| (1) These amounts refer to the banking activities performed by B.U.C. - Banca Unione di Credito sold in August 2006. |
In the second quarter of 2007, Financial Services of Fiat Group Automobiles had revenues of 33 million euros against 245 million euros in the corresponding period of 2006. The figure for 2006 included 211 million euros related to the companies conveyed to FAFS. On a comparable scope of operations, revenues were virtually unchanged.
The Financial Services of the Agricultural and Construction Equipment Sector had revenues of 284 million euros for an increase of 9.2% due to growth in the managed portfolio.
Iveco’s Financial Services reported revenues of 29 million euros, substantially in line with the same period of 2006.
Financial Services had revenues of 675 million euros in the first half of 2007, down 37.8% compared with 1,085 million euros in the first half of 2006 due to the changes in scope of operations mentioned before. On a comparable basis, revenues grew by 5.3%.
Trading profit totalled 85 million euros in the second quarter of 2007, up 14 million euros from the second quarter of 2006.
1st Half | | | | 2nd Quarter |
2007 | | 2006 | | Change | | (in millions of euros) | | 2007 | | 2006 | | Change |
21 | | 19 | | 2 | | Fiat Group Automobiles | | 12 | | 10 | | 2 |
(2) | | - | | -2 | | Ferrari | | (1) | | - | | -1 |
136 | | 114 | | 22 | | Agricultural and Construction Equipment (CNH) | 70 | | 59 | | 11 |
6 | | (2) | | 8 | | Trucks and Commercial Vehicles (Iveco) | | 4 | | (1) | | 5 |
- | | 8 | | -8 | | Holding companies and Other companies (1) | | - | | 3 | | -3 |
161 | | 139 | | 22 | | Total | | 85 | | 71 | | 14 |
| (1) These amounts refer to the banking activities performed by B.U.C. - Banca Unione di Credito sold in August 2006. |
The Financial Services of Fiat Group Automobiles reported trading profit of 12 million euros in the second quarter of 2007, up 2 million euros from the same period of last year. The decrease arising from the change in the scope of consolidation was offset by the favourable effects resulting from the use of the liquidity generated by the FAFS transaction and efficiencies on governance costs.
The trading profit of the Financial Services of CNH-Case New Holland grew to 70 million euros from 59 million euros in the second quarter of 2006 as a result of higher activity levels and the positive effects of an improved portfolio quality.
In the second quarter of 2007, the trading profit of Iveco’s Financial Services totalled 4 million euros, against a trading loss of 1 million euros in the second quarter of 2006. The improvement is mainly due to the effects of the reorganisation of renting activities.
In the first half of 2007, the Financial Services reported a trading profit of 161 million euros, compared with the 139 million euros recorded in the corresponding period a year ago.
Balance Sheet by Activity Segment
| | At 06.30.2007 | | Al 12.31.2006 |
| (in millions of euros) | | Consolidated | | Industrial Activities | | Financial Services | | Consolidated | | Industrial Activities | | Financial Services |
| Intangible assets | | 6,502 | | 6,398 | | 104 | | 6,421 | | 6,325 | | 96 |
| - Goodwill | | 2,874 | | 2,781 | | 93 | | 2,850 | | 2,756 | | 94 |
| - Other intangible assets | | 3,628 | | 3,617 | | 11 | | 3,571 | | 3,569 | | 2 |
| Property, plant and equipment | | 10,412 | | 10,406 | | 6 | | 10,540 | | 10,528 | | 12 |
| Investment property | | 11 | | 11 | | - | | 19 | | 19 | | - |
| Investments and other financial assets | | 2,333 | | 4,043 | | 885 | | 2,280 | | 3,886 | | 867 |
| Leased assets | | 322 | | 8 | | 314 | | 247 | | 7 | | 240 |
| Defined benefit plan assets | | 13 | | 13 | | - | | 11 | | 11 | | - |
| Deferred tax assets | | 1,859 | | 1,715 | | 144 | | 1,860 | | 1,710 | | 150 |
Total Non-current Assets | | 21,452 | | 22,594 | | 1,453 | | 21,378 | | 22,486 | | 1,365 |
| Inventories | | 9,551 | | 9,467 | | 84 | | 8,447 | | 8,390 | | 57 |
| Trade receivables | | 5,546 | | 5,729 | | 261 | | 4,944 | | 5,068 | | 178 |
| Receivables from financing activities | | 12,717 | | 4,373 | | 12,984 | | 11,743 | | 2,891 | | 11,977 |
| Other receivables: | | 3,071 | | 2,992 | | 111 | | 2,839 | | 2,806 | | 58 |
| - Current tax receivables | | 882 | | 879 | | 15 | | 808 | | 798 | | 11 |
| - Others | | 2,189 | | 2,113 | | 96 | | 2,031 | | 2,008 | | 47 |
| Accrued income and prepaid expenses | | 274 | | 251 | | 23 | | 247 | | 226 | | 21 |
| Current financial assets | | 737 | | 656 | | 81 | | 637 | | 531 | | 106 |
| - Current investments | | 24 | | 24 | | - | | 31 | | 31 | | - |
| - Current securities | | 188 | | 128 | | 60 | | 224 | | 134 | | 90 |
| - Other financial assets | | 525 | | 504 | | 21 | | 382 | | 366 | | 16 |
| Cash and cash equivalents | | 7,177 | | 6,068 | | 1,109 | | 7,736 | | 6,706 | | 1,030 |
Total Current Assets | | 39,073 | | 29,536 | | 14,653 | | 36,593 | | 26,618 | | 13,427 |
| Assets held for sale | | 256 | | 256 | | - | | 332 | | 332 | | - |
TOTAL ASSETS | | 60,781 | | 52,386 | | 16,106 | | 58,303 | | 49,436 | | 14,792 |
Total assets adjusted for asset-backed financing transactions | | 53,084 | | 51,699 | | 8,734 | | 49,959 | | 48,504 | | 7,313 |
| Stockholders’ equity | | 10,587 | | 10,587 | | 2,411 | | 10,036 | | 10,036 | | 2,395 |
| Provisions | | 8,457 | | 8,333 | | 124 | | 8,611 | | 8,471 | | 140 |
| - Employee benefits | | 3,648 | | 3,639 | | 9 | | 3,761 | | 3,750 | | 11 |
| - Other provisions | | 4,809 | | 4,694 | | 115 | | 4,850 | | 4,721 | | 129 |
| Debt | | 19,934 | | 11,762 | | 12,996 | | 20,188 | | 11,555 | | 11,836 |
| - Asset-backed financing | | 7,697 | | 687 | | 7,372 | | 8,344 | | 932 | | 7,479 |
| - Other debt | | 12,237 | | 11,075 | | 5,624 | | 11,844 | | 10,623 | | 4,357 |
| Other financial liabilities | | 152 | | 141 | | 11 | | 105 | | 98 | | 7 |
| Trade payables | | 13,951 | | 14,009 | | 385 | | 12,603 | | 12,637 | | 260 |
| Other payables: | | 6,217 | | 6,137 | | 113 | | 5,019 | | 4,963 | | 89 |
| - Current tax payables | | 554 | | 497 | | 70 | | 311 | | 266 | | 56 |
| - Others | | 5,663 | | 5,640 | | 43 | | 4,708 | | 4,697 | | 33 |
| Deferred tax liabilities | | 248 | | 248 | | - | | 263 | | 262 | | 1 |
| Accrued expenses and deferred income | | 1,121 | | 1,055 | | 66 | | 1,169 | | 1,105 | | 64 |
| Liabilities held for sale | | 114 | | 114 | | - | | 309 | | 309 | | - |
TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES | | 60,781 | | 52,386 | | 16,106 | | 58,303 | | 49,436 | | 14,792 |
Total liabilities adjusted for asset-backed financing transactions | | 53,084 | | 51,699 | | 8,734 | | 49,959 | | 48,504 | | 7,313 |
| | At 06.30.2007 | | At 12.31.2006 |
| (in millions of euros) | | Consolidated | | Industrial Activities | | Financial Services | | Consolidated | | Industrial Activities | | Financial Services |
| Debt | | (19,934) | | (11,762) | | (12,996) | | (20,188) | | (11,555) | | (11,836) |
| - Asset-backed financing | | (7,697) | | (687) | | (7,372) | | (8,344) | | (932) | | (7,479) |
| - Other debt | | (12,237) | | (11,075) | | (5,624) | | (11,844) | | (10,623) | | (4,357) |
| Debt included among Liabilities held for sale | | (42) | | (42) | | - | | (33) | | (33) | | - |
Current financial receivables from jointly controlled financial services entities | (a) | 47 | | 47 | | - | | 143 | | 143 | | - |
| Intersegment financial receivables | | - | | 4,289 | | 535 | | - | | 2,559 | | 644 |
Financial payables net of intersegment balances and current financial receivables from jointly controlled financial services entities | | (19,929) | | (7,468) | | (12,461) | | (20,078) | | (8,886) | | (11,192) |
| Other financial assets | (b) | 525 | | 504 | | 21 | | 382 | | 366 | | 16 |
| Other financial liabilities | (b) | (152) | | (141) | | (11) | | (105) | | (98) | | (7) |
| Current securities | | 188 | | 128 | | 60 | | 224 | | 134 | | 90 |
| Cash and cash equivalents | | 7,177 | | 6,068 | | 1,109 | | 7,736 | | 6,706 | | 1,030 |
| Cash and cash equivalents included among Assets held for sale | | 36 | | 36 | | - | | 5 | | 5 | | - |
Net debt | | (12,155) | | (873) | | (11,282) | | (11,836) | | (1,773) | | (10,063 |
(a) This item includes current financial receivables due to Fiat Group companies by the FAFS Group.
(b) This item includes the asset and liability fair values of derivative financial instruments.
“Debt” under Industrial Activities partly includes funds raised by the central cash management and transferred to financial services companies in support of their activity (represented under the item “Intersegment financial receivables”).
“Intersegment financial receivables” under Financial Services represent loans or advances to industrial companies, relating to the sale of receivables by industrial to financial companies in transactions that do not comply with the requirements set out in IAS 39 for the recognition of those sales, as well as any temporary cash deposited with the central cash management.
At June 30, 2007, “Cash and cash equivalents” include 741 million euros (627 million euros at December 31, 2006) mainly relating to financial services companies, allocated to service the debt for securitisation structures and classified as “Asset-backed financing”.
At June 30, 2007, net debt of the financial services companies showed an increase of 1,219 million euros compared to net debt at December 31, 2006 mainly due to growth in the investment portfolio totalling 1,040 million euros and investments for the period (mainly in vehicles that had been leased out under operating leases) for 141 million euros.
Statement of Changes in Net Industrial Debt
| (in millions of euros) | | 1st Half 2007 | | 1st Half 2006 |
Net industrial debt at beginning of period | | (1,773) | | (3,219) |
| - Net result | | 1,003 | | 482 |
| - Amortisation and depreciation (net of vehicles sold under buy-back commitments) | | 1,311 | | 1,340 |
| - Change in provisions for risks and charges and other changes | | (413) | | (74) |
Cash flows from (used in) operating activities during the period, net of change in working capital | | 1,901 | | 1,748 |
| - Change in working capital | | 355 | | (66) |
Cash flows from (used in) operating activities during the period | | 2,256 | | 1,682 |
| - Investments in tangible and intangible assets (net of vehicles sold under buy-back commitments) | | (1,287) | | (1,065) |
Cash flows from (used in) operating activities during the period, net of capital expenditures | | 969 | | 617 |
| - Net change in receivables from financing activities | | 159 | | 161 |
- Change in the scope of consolidation and other changes | | 245 | | 134 |
Net cash flows from (used in) industrial activities excluding capital contributions and dividends paid | | 1,373 | | 912 |
| - Capital increases, (purchase) disposal of treasury stock and dividends | | (522) | | 3 |
| - Translation exchange differences | | 49 | | 16 |
Change in net industrial debt | | 900 | | 931 |
Net industrial debt at end of period | | (873) | | (2,288) |
During the first half of 2007, net industrial debt decreased by 900 million euros, despite dividend payments for 308 million euros and net purchases of treasury stock for 214 million euros.
Cash flow generated by operating activities during the period was positive by 2,256 million euros, and more than offset industrial capital expenditures totalling 1,287 million euros in the first six months of 2007.
The item Change in the scope of consolidation and other changes includes in particular the proceeds from the sale of Ingest Facility, Meridian Technologies and receipt of extended term payments as part of the sale of 51% of FAFS which took place at the end of 2006.
Statement of Cash Flows by Activity Segment
| | | | 1st Half 2007 | | 1st Half 2006 |
| (in millions of euros) | | Consolidated | | Industrial Activities | | Financial Services | | Consolidated | | Industrial Activities | | Financial Services |
A) | Cash and cash equivalents at beginning of period as reported in the financial statements | | 7,736 | | 6,706 | | 1,030 | | 6,417 | | 5,517 | | 900 |
| | Cash and cash equivalents included as Assets held for sale | | 5 | | 5 | | - | | - | | - | | - |
B) | Cash and cash equivalents at beginning of the fiscal year | | 7,741 | | 6,711 | | 1,030 | | 6,417 | | 5,517 | | 900 |
C) | Cash flows from (used in) operating activities during the period: | | | | | | | | | | | | |
| | Net result for the year | | 1,003 | | 1,003 | | 142 | | 481 | | 482 | | 131 |
| | Amortisation and depreciation (net of vehicles sold under buy-back commitments) | | 1,343 | | 1,311 | | 32 | | 1,497 | | 1,340 | | 157 |
| | (Gains)/losses and other non-cash items | | (328) | | (462) | | (8) | | (7) | | (197) | | 58 |
| | Dividends received | | 67 | | 171 | | 11 | | 61 | | 137 | | - |
| | Change in provisions | | (212) | | (190) | | (22) | | (159) | | (138) | | (21) |
| | Change in deferred income taxes | | (2) | | (8) | | 6 | | 70 | | 83 | | (13) |
| | Change in items due to buy-back commitments | (a) | 82 | | 76 | | 6 | | (5) | | 41 | | (50) |
| | Change in working capital | | 336 | | 355 | | (19) | | (12) | | (66) | | 61 |
| | Total | | 2,289 | | 2,256 | | 148 | | 1,926 | | 1,682 | | 323 |
D) | Cash flows from (used in) investment activities: | | | | | | | | | | | | |
| | Investments in: | | | | | | | | | | | | |
| | - | Tangible and intangible assets (net of vehicles sold under buy-back commitments) | | (1,428) | | (1,287) | | (141) | | (1,556) | | (1,065) | | (491) |
| | - | Investments | | (74) | | (34) | | - | | (37) | | (37) | | - |
| | Proceeds from the sale of non-current assets | | 278 | | 246 | | 32 | | 293 | | 114 | | 179 |
| | Net change in receivables from financing activities | | (881) | | 159 | | (1,040) | | (281) | | 161 | | (442) |
| | Change in current securities | | 38 | | 3 | | 35 | | 136 | | 67 | | 69 |
| | Other changes | | (78) | | (1,891) | | 1,807 | | 7 | | (696) | | 702 |
| | Total | | (2,145) | | (2,804) | | 693 | | (1,438) | | (1,456) | | 17 |
E) | Cash flows from (used in) financing activities: | | | | | | | | | | | | |
| | Net change in financial payables and other financial assets/liabilities | | (206) | | 423 | | (629) | | (463) | | (542) | | 79 |
| | Increase in capital stock | | - | | - | | (40) | | 18 | | 18 | | - |
| | (Purchase) Disposal of treasury stock | | (214) | | (214) | | - | | - | | - | | - |
| | Dividends paid | | (308) | | (308) | | (115) | | (15) | | (15) | | (76) |
| | Total | | (728) | | (99) | | (784) | | (460) | | (539) | | 3 |
| | Translation exchange differences | | 56 | | 40 | | 22 | | (128) | | (85) | | (45) |
F) | Net change in cash and cash equivalents | | (528) | | (607) | | 79 | | (100) | | (398) | | 298 |
G) | Cash and cash equivalents at end of period | | 7,213 | | 6,104 | | 1,109 | | 6,317 | | 5,119 | | 1,198 |
| | of which: cash and cash equivalents included as Assets held for sale | | 36 | | 36 | | - | | 191 | | - | | 191 |
H) | Cash and cash equivalents at end of period as reported in the financial statements | | 7,177 | | 6,068 | | 1,109 | | 6,126 | | 5,119 | | 1,007 |
Industrial Activities
In the first half of 2007, Industrial Activities absorbed cash and cash equivalents totalling 607 million euros and in particular:
§ operating activities generated 2,256 million euros: income cash flow (net income plus amortisation and depreciation), net of Gains/losses and other non-cash items and including changes in provisions, deferred taxes and items relating to the management of sales with buy-back commitments, was positive by 1,730 million euros, to which should be added dividends for 171 million euros and liquidity generated by the decrease in working capital which, on a comparable scope of consolidation and at the same exchange rates, amounted to 355 million euros;
§ investment activities absorbed a total of 2,804 million euros. The liquidity generated by the sale of non-current assets for 246 million euros (mainly the sale of Meridian Technologies, Ingest Facility and receipt of extended term payments as part of the sale of 51% of FAFS which took place at the end of 2006) and the collection of net financial receivables for 159 million euros, only partly offset funding requirements for period investments and those generated by the increase in net financial receivables from the Group’s Financial Services companies (included among other changes).
§ financing activities absorbed 99 million euros in liquidity. Funding requirements for the payment of dividends, purchase of treasury stock and lower asset backed financing were only partly compensated by the new 1 billion euro bond whose issuance was finalised in June 2007.
Financial Services
The cash and cash equivalents of Financial Services at June 30, 2007 totalled 1,109 million euros, up 79 million euros from December 31, 2006.
The cash generated during the quarter derived from:
§ operations during the year which generated 148 million euros in cash, principally in consequence of income cash flow (net income plus amortisation and depreciation);
§ investment activities (including changes in financial receivables from/payables to Group industrial companies) which generated 693 million euros in cash. In particular, higher financing received from central cash management companies, included among industrial companies, in support of their activity (included under other changes), more than offset requirements connected with growth in the investment portfolio and investments (141 million euros) mainly for vehicles that had been leased out under operating leases.
§ financing activities which absorbed a total of 784 million euros, 629 million euros of which due to a net reduction in financial payables to third parties.
Fiat Group | Interim Consolidated Financial Statements and Notes at June 30, 2007 |
Consolidated Income Statement (*)
| (in millions of euros) | (Note) | | 2nd Quarter 2007 | 2nd Quarter 2006 | 1st Half 2007 | 1st Half 2006 |
| Net revenues | (1) | | 15,179 | 13,608 | 28,855 | 26,164 |
| Cost of sales | (2) | | 12,581 | 11,419 | 24,060 | 22,068 |
| Selling, general and administrative costs | (3) | | 1,276 | 1,196 | 2,531 | 2,409 |
| Research and development costs | (4) | | 381 | 371 | 755 | 701 |
| Other income (expenses) | (5) | | 5 | 37 | 32 | (4) |
Trading profit | | | 946 | 659 | 1,541 | 982 |
| Gains (losses) on the disposal of investments | (6) | | 8 | 6 | 52 | 8 |
| Restructuring costs | (7) | | 7 | 5 | 22 | 8 |
| Other unusual income (expenses) | (8) | | (1) | (1) | (30) | - |
Operating result | | | 946 | 659 | 1,541 | 982 |
| Financial income (expenses) | (9) | | (111) | (163) | (168) | (298) |
| Result from investments: | (10) | | 40 | 46 | 76 | 90 |
| - Net result of investees accounted for using the equity method | | | 38 | 43 | 66 | 70 |
| - Other income (expenses) from investments | | | 2 | 3 | 10 | 20 |
Result before taxes | | | 875 | 542 | 1,449 | 774 |
| Income taxes | (11) | | 248 | 212 | 446 | 293 |
Result from continuing operations | | | 627 | 330 | 1,003 | 481 |
| Result from discontinued operations | | | - | - | - | - |
Net result | | | 627 | 330 | 1,003 | 481 |
| | | | | | | |
Attributable to: | | | | | | |
| Equity holders of the parent | | | 593 | 280 | 951 | 418 |
| Minority interests | | | 34 | 50 | 52 | 63 |
| (in euros) | | | | | | | |
Basic earnings per ordinary share | (12) | | 0.472 | 0.168 | 0.740 | 0.277 |
Basic earnings per preference share | (12) | | 0.430 | 0.201 | 0.740 | 0.310 |
Basic earnings per savings share | (12) | | 0.472 | 0.943 | 0.895 | 1.052 |
Diluted earnings per ordinary share | (12) | | 0.472 | 0.168 | 0.739 | 0.277 |
Diluted earnings per preference share | (12) | | 0.427 | 0.201 | 0.735 | 0.310 |
Diluted earnings per savings share | (12) | | 0.469 | 0.943 | 0.890 | 1.052 |
(*) Pursuant to Consob Resolution No. 15519 of July 27, 2006, the effects of related party transactions on the Consolidated Income Statement are presented in the specific Income Statement schedule provided in the following pages and are further described in Note 31.
Consolidated Balance Sheet (*)
| (in millions of euros) | (Note) | | At June 30, 2007 | At December 31, 2006 |
ASSETS | | | | |
| Intangible assets | (13) | | 6,502 | 6,421 |
| Property, plant and equipment | (14) | | 10,412 | 10,540 |
| Investment property | | | 11 | 19 |
| Investments and other financial assets: | (15) | | 2,333 | 2,280 |
| - Investments accounted for using the equity method | | | 1,745 | 1,719 |
| - Other investments and financial assets | | | 588 | 561 |
| Leased assets | (16) | | 322 | 247 |
| Defined benefit plan assets | | | 13 | 11 |
| Deferred tax assets | (11) | | 1,859 | 1,860 |
Total Non-current assets | | | 21,452 | 21,378 |
| Inventories | (17) | | 9,551 | 8,447 |
| Trade receivables | (18) | | 5,546 | 4,944 |
| Receivables from financing activities | (18) | | 12,717 | 11,743 |
| Other receivables: | (18) | | 3,071 | 2,839 |
| - Current tax receivables | | | 882 | 808 |
| - Others | | | 2,189 | 2,031 |
| Accrued income and prepaid expenses | | | 274 | 247 |
| Current financial assets: | | | 737 | 637 |
| - Current investments | | | 24 | 31 |
| - Current securities | (19) | | 188 | 224 |
| - Other financial assets | (20) | | 525 | 382 |
| Cash and cash equivalents | (21) | | 7,177 | 7,736 |
Total Current assets | | | 39,073 | 36,593 |
| Assets held for sale | (22) | | 256 | 332 |
TOTAL ASSETS | | | 60,781 | 58,303 |
Total assets adjusted for asset-backed financing transactions | | | 53,084 | 49,959 |
LIABILITIES | | | | |
| Stockholders' equity: | (23) | | 10,587 | 10,036 |
| - Stockholders' equity of the Group | | | 9,939 | 9,362 |
| - Minority interest | | | 648 | 674 |
| Provisions: | (24) | | 8,457 | 8,611 |
| - Employee benefits | | | 3,648 | 3,761 |
| - Other provisions | | | 4,809 | 4,850 |
| Debt: | (25) | | 19,934 | 20,188 |
| - Asset-backed financing | | | 7,697 | 8,344 |
| - Other debt | | | 12,237 | 11,844 |
| Other financial liabilities | (20) | | 152 | 105 |
| Trade payables | (26) | | 13,951 | 12,603 |
| Other payables: | (27) | | 6,217 | 5,019 |
| - Current tax payables | | | 554 | 311 |
| - Others | | | 5,663 | 4,708 |
| Deferred tax liabilities | (11) | | 248 | 263 |
| Accrued expenses and deferred income | (28) | | 1,121 | 1,169 |
| Liabilities held for sale | (22) | | 114 | 309 |
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES | | | 60,781 | 58,303 |
Total liabilities adjusted for asset-backed financing transactions | | | 53,084 | 49,959 |
(*) Pursuant to Consob Resolution No. 15519 of July 27, 2006, the effects of related party transactions on the Consolidated Balance sheet are presented in the specific Balance Sheet schedule provided in the following pages and are further described in Note 31.
Consolidated Statement of Cash Flows (*)
| in millions of euros) | | 1st Half 2007 | 1st Half 2006 |
A) | Cash and cash equivalents at beginning of period as reported | | 7,736 | 6,417 |
| | Cash and cash equivalents included as Assets held for sale | | 5 | - |
B) | Cash and cash equivalents at beginning of period | | 7,741 | 6,417 |
C) | Cash flows from (used in) operating activities during the period: | | | |
| | Net result | | 1,003 | 481 |
| | Amortisation and depreciation (net of vehicles sold under buy-back commitments) | | 1,343 | 1,497 |
| | (Gains) losses and other non-cash items | | (328) | (7) |
| | Dividends received | | 67 | 61 |
| | Change in provisions | | (212) | (159) |
| | Change in deferred income taxes | | (2) | 70 |
| | Change in items due to buy-back commitments | (a) | 82 | (5) |
| | Change in working capital | | 336 | (12) |
| | Total | | 2,289 | 1,926 |
D) | Cash flows from (used in) investment activities: | | | |
| | Investments in: | | | |
| | - Tangible and intangible assets (net of vehicles sold under buy-back commitments) | | | (1,428) | (1,556) |
| | - Investments in consolidated subsidiaries and other investments | | | (74) | (37) |
| | Proceeds from the sale of non-current assets (net of vehicles sold under buy-back commitments) | | 278 | 293 |
| | Net change in receivables from financing activities | | (881) | (281) |
| | Change in current securities | | 38 | 136 |
| | Other changes | | (78) | 7 |
| | Total | | (2,145) | (1,438) |
E) | Cash flows from (used in) financing activities: | | | |
| | New issuance of bonds | | 1,000 | 2,414 |
| | Repayment of bonds | | (21) | (1,691) |
| | Issuance of other medium-term borrowings | | 148 | 836 |
| | Repayment of other medium-term borrowings | | (561) | (1,000) |
| | Net change in other financial payables and other financial assets/liabilities | | (772) | (1,022) |
| | (Buy-back) Sale of Treasury Stock | | (214) | - |
| | Increase in capital stock | | - | 18 |
| | Dividends paid | | (308) | (15) |
| | Total | | (728) | (460) |
| | Translation exchange differences | | 56 | (128) |
F) | Total change in cash and cash equivalents | | (528) | (100) |
G) | Cash and cash equivalents at end of period | | 7,213 | 6,317 |
| | of which: Cash and cash equivalents included as Assets held for sale | | 36 | 191 |
H) | Cash and cash equivalents at end of period as reported | | 7,177 | 6,126 |
| (*) | Pursuant to Consob Resolution No. 15519 of July 27, 2006, the effects of related party transactions on the Consolidated Statement of Cash Flows are presented in the specific Statement of Cash Flows schedule provided in the following pages. |
| (a) | The cash flows for the two periods generated by the sale of vehicles with a buy-back commitment net of the amount already included in the net result, are included in operating activities for the period, in a single item which includes the change in working capital, capital expenditures, depreciation, gains and losses and proceeds form sales at the end of the contract term, relating to assets included in Property, plant and equipment. |
Statement of Changes in Stockholders’ Equity
| (in millions of euros) | Capital stock | Treasury stock capital reserves, earning reserves | Income (expense) recognised directly in equity | Minority interest | Total |
Balance at December 31, 2005 | 6,377 | 1,393 | 911 | 732 | 9,413 |
| Dividends paid | - | - | - | (15) | (15) |
| Increase in reserve for share based payments | - | 3 | - | - | 3 |
| Net changes in Income (expenses) recognised directly in equity | - | - | (437) | (17) | (454) |
| Capital increase | - | - | - | 18 | 18 |
| Other changes | - | 17 | - | (1) | 16 |
| Net result | - | 418 | - | 63 | 481 |
Balance at June 30, 2006 | 6,377 | 1,831 | 474 | 780 | 9,462 |
| (in millions of euros) | Capital stock | Treasury stock capital reserves, earning reserves | Income (expense) recognised directly in equity | Minority interest | Total |
Balance at December 31, 2006 | 6,377 | 2,459 | 526 | 674 | 10,036 |
| Dividends paid | - | (274) | - | (34) | (308) |
| Increase in reserve for share based payments | - | 35 | - | - | 35 |
| Net changes in Income (expenses) recognised directly in equity | - | - | 85 | 5 | 90 |
| Treasury stock buy-back and sale | - | (219) | - | - | (219) |
| Other changes | - | (1) | - | (49) | (50) |
| Net result | - | 951 | - | 52 | 1,003 |
Balance at June 30, 2007 | 6,377 | 2,951 | 611 | 648 | 10,587 |
Consolidated Statement of Recognised Income and Expense at June 30, 2007
| (in millions of euros) | 1st Half 2007 | 1st Half 2006 |
| Gains (losses) recognised directly in the cash flow hedge reserve | 86 | 41 |
| Gains (losses) recognised directly in reserve for fair value measurement of available-for-sale financial assets | (15) | (10) |
| Exchange gains (losses) on the translation of foreign operations | 92 | (480) |
Gains (losses) recognised directly in equity | 163 | (449) |
| | | |
| Transfers from cash flow hedge reserve | (72) | 4 |
| Transfer from reserve for fair value measurement of available-for-sale financial assets | (2) | (9) |
| Transfer from reserve for the translation of foreign operations | 1 | - |
| Net result | 1,003 | 481 |
Recognised income (expense) for the period | 1,093 | 27 |
| | | |
Attributable to: | | |
| Equity holders of the parent | 1,036 | (19) |
| Minority interests | 57 | 46 |
Consolidated Income Statement pursuant to Consob Resolution No. 15519 of July 27, 2006
| (in millions of euros) | Note | | 1st Half 2007 | of which Related parties (Note 31) | 1st Half 2006 | of which Related parties (Note 31) |
| Net revenues | (1) | | 28,855 | 1,259 | 26,164 | 1,062 |
| Cost of sales | (2) | | 24,060 | 1,846 | 22,068 | 1,484 |
| Selling, general and administrative costs | (3) | | 2,531 | 65 | 2,409 | 25 |
| Research and development costs | (4) | | 755 | - | 701 | - |
| Other income (expenses) | (5) | | 32 | 9 | (4) | 10 |
Trading profit | | | 1,541 | | 982 | |
| Gains (losses) on the disposal of investments | (6) | | 52 | - | 8 | - |
| Restructuring costs | (7) | | 22 | - | 8 | - |
| Other unusual income (expenses) | (8) | | (30) | - | - | - |
Operating result | | | 1,541 | | 982 | |
| Financial income (expenses) | (9) | | (168) | (38) | (298) | (12) |
| Result from investments: | (10) | | 76 | 76 | 90 | 70 |
| - Net result of investees accounted for using the equity method | | | 66 | 66 | 70 | 70 |
| - Other income (expenses) from investments | | | 10 | 10 | 20 | - |
Result before taxes | | | 1,449 | | 774 | |
| Income taxes | (11) | | 446 | - | 293 | - |
Result from continuing operations | | | 1,003 | | 481 | |
| Result from discontinued operations | | | - | - | - | - |
Net result | | | 1,003 | | 481 | |
| | | | | | | |
Attributable to: | | | | | | |
| Equity holders of the parent | | | 951 | | 418 | |
| Minority interests | | | 52 | | 63 | |
Consolidated Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006
| (in millions of euros) | Note | | At June 30, 2007 | of which Related parties (Note 31) | At December 31, 2006 | of which Related parties (Note 31) |
ASSETS | | | | | | |
| Intangible assets | (13) | | 6,502 | - | 6,421 | - |
| Property, plant and equipment | (14) | | 10,412 | - | 10,540 | - |
| Investment property | | | 11 | - | 19 | - |
| Investments and other financial assets: | (15) | | 2,333 | 1,844 | 2,280 | 1,777 |
| - Investments accounted for using the equity method | | | 1,745 | 1,745 | 1,719 | 1,719 |
| - Other investments and financial assets | | | 588 | 99 | 561 | 58 |
| Leased assets | (16) | | 322 | - | 247 | - |
| Defined benefit plan assets | | | 13 | - | 11 | - |
| Deferred tax assets | (11) | | 1,859 | - | 1,860 | - |
Total Non-current assets | | | 21,452 | | 21,378 | |
| Inventories | (17) | | 9,551 | 12 | 8,447 | 24 |
| Trade receivables | (18) | | 5,546 | 472 | 4,944 | 377 |
| Receivables from financing activities | (18) | | 12,717 | 172 | 11,743 | 191 |
| Other receivables: | (18) | | 3,071 | 28 | 2,839 | 145 |
| Accrued income and prepaid expenses | | | 274 | - | 247 | - |
| Current financial assets: | | | 737 | - | 637 | - |
| - Current investments | | | 24 | - | 31 | - |
| - Current securities | (19) | | 188 | - | 224 | - |
| - Other financial assets | (20) | | 525 | - | 382 | - |
| Cash and cash equivalents | (21) | | 7,177 | - | 7,736 | - |
Total Current assets | | | 39,073 | | 36,593 | |
| Assets held for sale | (22) | | 256 | 4 | 332 | 5 |
TOTAL ASSETS | | | 60,781 | | 58,303 | |
LIABILITIES | | | | | | |
| Stockholders' equity: | (23) | | 10,587 | - | 10,036 | - |
| - Stockholders' equity of the Group | | | 9,939 | - | 9,362 | - |
| - Minority interest | | | 648 | - | 674 | - |
| Provisions: | (24) | | 8,457 | 80 | 8,611 | 77 |
| - Employee benefits | | | 3,648 | 11 | 3,761 | 10 |
| - Other provisions | | | 4,809 | 69 | 4,850 | 67 |
| Debt: | (25) | | 19,934 | 537 | 20,188 | 734 |
| - Asset-backed financing | | | 7,697 | 333 | 8,344 | 396 |
| - Other debt | | | 12,237 | 204 | 11,844 | 338 |
| Other financial liabilities | (20) | | 152 | - | 105 | - |
| Trade payables | (26) | | 13,951 | 1,029 | 12,603 | 1,005 |
| Other payables: | (27) | | 6,217 | 67 | 5,019 | 45 |
| Deferred tax liabilities | (11) | | 248 | - | 263 | - |
| Accrued expenses and deferred income | (28) | | 1,121 | - | 1,169 | - |
| Liabilities held for sale | (22) | | 114 | - | 309 | - |
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES | | | 60,781 | | 58,303 | |
Consolidated Statement of Cash Flows pursuant to Consob Resolution No. 15519 of July 27, 2006
| (in millions of euros) | | 1st Half 2007 | of which Related parties |
A) | Cash and cash equivalents at beginning of period as reported | | 7,736 | |
| | Cash and cash equivalents included as Assets held for sale | | 5 | |
B) | Cash and cash equivalents at beginning of period | | 7,741 | |
C) | Cash flows from (used in) operating activities during the period: | | | |
| | Net result | | 1,003 | |
| | Amortisation and depreciation (net of vehicles sold under buy-back commitments) | | 1,343 | |
| | (Gains) losses and other non-cash items | | (328) | |
| | Dividends received | | 67 | 67 |
| | Change in provisions | | (212) | |
| | Change in deferred income taxes | | (2) | |
| | Change in items due to buy-back commitments | (a) | 82 | |
| | Change in working capital | | 336 | (27) |
| | Total | | 2,289 | |
D) | Cash flows from (used in) investment activities: | | | |
| | Investments in: | | | |
| | - Tangible and intangible assets (net of vehicles sold under buy-back commitments) | | | (1,428) | |
| | - Investments in consolidated subsidiaries and other investments | | | (74) | (38) |
| | Proceeds from the sale of non-current assets (net of vehicles sold under buy-back commitments) | | 278 | 97 |
| | Net change in receivables from financing activities | | (881) | 29 |
| | Change in current securities | | 38 | |
| | Other changes | | (78) | |
| | Total | | (2,145) | |
E) | Cash flows from (used in) financing activities: | | | |
| | New issuance of bonds | | 1,000 | |
| | Repayment of bonds | | (21) | |
| | Issuance of other medium-term borrowings | | 148 | |
| | Repayment of other medium-term borrowings | | (561) | |
| | Net change in other financial payables and other financial assets/liabilities | | (772) | (212) |
| | (Buy-back) Sale of Treasury Stock | | (214) | |
| | Increase in capital stock | | - | |
| | Dividends paid | | (308) | |
| | Total | | (728) | |
| | Translation exchange differences | | 56 | |
F) | Total change in cash and cash equivalents | | (528) | |
G) | Cash and cash equivalents at end of period | | 7,213 | |
| | of which: Cash and cash equivalents included as Assets held for sale | | 36 | |
H) | Cash and cash equivalents at end of period as reported | | 7,177 | |
Significant accounting policies
This half year Report for the first half of 2007 and the Consolidated Financial Statements for the six months ended June 30, 2007 have been prepared in accordance with Consob Regulation No. 11971 of May 14, 1999 and subsequent amendments, and with the provisions issued to implement article 9 of Legislative Decree No. 38/2005.
Accounting policies
This half year Report has been prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) endorsed by the European Union. The designation “IFRS” also includes all valid International Accounting Standards (“IAS”), as well as all interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”), formerly the Standing Interpretations Committee (“SIC”).
In particular, this half-year report has been prepared in accordance with IAS 34 - Interim Financial Reporting applying the same accounting principles and policies used in the preparation of the Consolidated financial statements at December 31, 2006, other than those discussed in the paragraph “Accounting principles applicable from January 1, 2007”.
The preparation of the interim financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets, liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements. If in the future such estimates and assumptions, which are based on management’s best judgment at the date of the interim financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change.
Moreover, these valuation procedures, in particular those of a more complex nature regarding matters such as any impairment of non-current assets, are only carried out in full during the preparation of the annual financial statements, when all the information required is available, other than in the event that there are indications of impairment, when an immediate assessment is necessary. In the same way the actuarial valuations that are required for the determination of employee benefit provisions are also usually only carried out during the preparation of the annual financial statements. In this respect the Fiat Group has not yet recognised the accounting effects resulting from the changes made to the regulations governing the reserve for the Italian employee severance indemnity (the “Trattamento di Fine Rapporto” or “TFR”) by Law No. 296 of 27 December 2006 (the “Legge Finanziaria 2007”) and subsequent Decrees and Regulations issued during the first part of 2007. More specifically, the Group has yet to carry out a precise remeasurement of the vested obligation at December 31, 2006 and the consequent curtailment in accordance with paragraph 109 of IAS 19, for the following reasons:
§ the majority of employees finalised their decision as to how they wish their TFR entitlement to be dealt with only during the latter part of the half year; as a result the accounting records are still being updated for this and it will only be possible to carry out precise actuarial calculations over the coming few months;
§ it was only in July 2007 that the competent organisations established, without yet formally communicating, the accounting treatment under IFRS of the new TFR regime and the method by which the curtailment referred to above should be measured.
In this overall context the effect of curtailment had not yet been precisely determined at the date of this half year report. Nonetheless no significant effect on the Group’s result is expected to arise from this matter on the basis of the broad estimates that have been made until now.
The Group operates in industries where significant seasonal or cyclical variations in total sales are not experienced during the financial year.
Income taxes are recognised based upon the best estimate of the weighted average income tax rate expected for the full financial year.
Format of the financial statements
The Fiat Group presents an income statement using a classification based on the function of expenses within the Group (otherwise known as the “cost of sales” method), rather than based on their nature, as this is believed to provide information that is more relevant. The format selected is that used for managing the business and for management reporting purposes and is consistent with international practice in the automotive sector.
In an income statement in which the classification of expenses is based on their function the result from trading operations is reported specifically as part of the Operating result and separate from the income and expense resulting from the non-recurring operations of the business, such as gains and losses on the sale of investments, restructuring costs and any other unusual income or expense that are not considered part of normal trading operations. By doing this, it is believed that the Group’s actual performance from normal trading operations may be measured in a better way, while disclosing specific details of unusual income and expenses.
The definition of unusual income and expenses adopted by the Group differs from that provided in the Consob Communication of July 28, 2006, under which unusual and abnormal transactions are those which, because of their significance or importance, the nature of the parties involved, the object of the transaction, the methods of determining the transfer price or the timing of the event (close to the period end), may give rise to doubts regarding the accuracy/completeness of the information in the financial statements, conflicts of interest, the safeguarding of an entity’s assets or the protection of minority interests.
For the balance sheet, a mixed format has been selected to present current and non-current assets and liabilities, as permitted by IAS 1. In more detail, both companies carrying out industrial activities and those carrying out financial activities are consolidated in the Group’s financial statements. The investment portfolios of financial services companies are included in current assets, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining are obtained from Fiat S.p.A. through the Group’s treasury companies (included in industrial companies), which lend funds both to industrial Group companies and to financial services companies as the need arises. This financial service structure within the Group means that any attempt to separate current and non-current debt in the consolidated balance sheet cannot be meaningful.
The Statement of Cash Flows is presented using the indirect method.
In connection with the requirements of the Consob Resolution No. 15519 of July 27, 2006 as to the format of the financial statements, specific supplementary Income Statement and Balance Sheet formats have been added for related party transactions so as not to compromise an overall reading of the statements.
Accounting principles applicable from January 1, 2007
On March 3, 2006, the IFRIC issued interpretation IFRIC 9 – Reassessment of Embedded Derivatives, which requires an entity to assess whether an embedded derivative is required to be separated from the host contract and accounted for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the contract, in which case reassessment is required. No significant effect arose from the adoption of this interpretation.
On November 2, 2006, IFRIC issued IFRIC Interpretation 11 – IFRS 2-Group and Treasury Share Transactions in order to address the accounting treatment of share-based payment arrangements under which an entity chooses or is required to buy treasury stock to satisfy its obligations and those under which the employees of one Group company are granted rights to the shares of another (such as the parent company). The Fiat Group applied this interpretation to the new stock option plan for which rights were granted in November 2006 and which was approved at the stockholders’ meeting of April 5, 2007. No significant effects on the accounting for existing plans arose on the adoption of this interpretation.
New accounting principles
On November 30, 2006, the IASB issued the IFRS 8 – Operating Segments that will become effective for the Group on January 1, 2009 and which will replace IAS 14 – Segment Reporting from that date. The new standard requires the information provided in segment reporting to be based upon the components of the entity that management uses to make decisions about operational matters. The standard requires these operating segments to be identified on the basis of internal reports that are regularly reviewed by an entity’s management in order to allocate resources to the segment and assess its performance. At the date of this half year report this document has not yet been endorsed by the European Union and the Group is currently assessing any impact that the adoption of this new standard may have on the financial statements.
On March 29, 2007 the IASB issued a revised version of IAS 23 – Borrowing costs. The standard shall be applied for annual period beginning after 1 January, 2009. The main change from the previous version is the removal of the option of immediately recognizing as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale. The standard shall be applied to borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after the 1 January 2009. At the date of this half year report this document has not yet been endorsed by the European Union.
On July 5, 2007 IFRIC issued the interpretation IFRIC 14 – IAS 19 – The Limit on aDefined Benefit Asset, Minimum Funding Requirements and their Interaction. The interpretation is mandatory from January 1, 2008. The interpretation provides general guidance on how to assess the limit in IAS 19 Employee Benefits on the amount of the surplus that can be recognised as an asset. It also explains how the pension asset or liability may be affected when there is a statutory or contractual minimum funding requirement. At the date of this half year report this interpretation had not yet been endorsed by the European Union.
The following standards and interpretations have also been issued in 2006 and in the first half of 2007 but are not applicable to the Fiat Group:
§ IFRIC 8 – Scope of IFRS 2 (effective from January 1, 2007);
§ IFRIC 12 – Service Concession Arrangements (effective from January 1, 2008);
§ IFRC 13 – Customer Loyalty Programmes (effective from January 1, 2009).
Scope of consolidation
Changes in the scope of consolidation that took place during the first half of 2007 with respect to the annual consolidated financial statements at December 31, 2006 are as follows:
§ On February 28, 2006, the procedure for the sale of subsidiary Ingest Facility S.p.A. to Pirelli RE Facility Management was concluded on receiving the antitrust authorities’ approval.
§ On March 2, 2007, the sale of Meridian Technologies Inc. to a consortium of investors headed by the Swiss holding company Estatia A.G. was finalised on receiving approval from the authorities and on the closing of the financing to the purchaser from financial institutions.
§ At the end of April 2007 Magneti Marelli reacquired control of Automotive Spare Parts Distribution Operations following its acquisition of 80% of Concordia Finance S.A. As a result of this the After Market Parts and Services business line, which operates at a worldwide level in the distribution of spare parts in the Independent After Market sector, is accounted for on a consolidated basis from 1 May 2007.
These changes in the scope of consolidation do not have a significant overall impact.
Further in May 2007 the Fiat Group acquired the entire ownership of the I.T.C.A. group which carries out its business in the automotive sector. The Group is currently going through a process aimed at carrying out of purchase accounting for this acquisition, which includes converting the consolidated financial statements of the acquired group to IFRS and obtaining the necessary appraisals for the assets acquired. This investment, which has been recognised at cost in this half year report, will be consolidated during the second half of 2007 once the purchase accounting process has been completed.
The assets and liabilities of certain business of the Comau Sector in the UK and South Africa have been reclassified as Assets and Liabilities held for sale in the first half of 2007.
In addition, starting from January 1, 2007, the activities previously forming the Business Solutions Sector were transferred to Fiat Services S.p.A., a subsidiary included in the Other and Holdings grouping and performing professional service operations for Fiat Group entities along with its foreign subsidiaries. Starting from this date the Business Solutions Sector is no longer presented and the comparative data for 2006 have been suitably reclassified In accordance with IAS 14 - Segment Reporting.
Other information
Other sections of this Report provide information on significant events occurred since the end of the first half and business outlook.
Composition and principal changes
Income Statement
1. Net revenues
An analysis of Net revenues (net of intra-Group transactions) by business Sector is as follows:
| (in millions of euros) | 2nd Quarter 2007 | 2nd Quarter 2006 | 1st Half 2007 | 1st Half 2006 |
| Fiat Group Automobiles | 6,712 | 5,989 | 12,959 | 11,651 |
| Maserati | 172 | 132 | 336 | 251 |
| Ferrari | 406 | 369 | 760 | 670 |
| Agricultural and Construction Equipment | 3,269 | 3,013 | 5,959 | 5,665 |
| Trucks and Commercial Vehicles | 2,835 | 2,278 | 5,300 | 4,310 |
| Fiat Powertrain Technologies | 435 | 403 | 889 | 816 |
| Components | 811 | 703 | 1,599 | 1,416 |
| Metallurgical Products | 123 | 200 | 276 | 399 |
| Production Systems | 215 | 273 | 380 | 521 |
| Publishing and Communications | 103 | 105 | 201 | 198 |
| Other and holdings (*) | 98 | 143 | 196 | 267 |
Total Net revenues | 15,179 | 13,608 | 28,855 | 26,164 |
(*)This line includes for 2006 the activities of Business Solution Sector transferred to Fiat Services S.p.A on January 1, 2007.
2. Cost of sales
Cost of sales comprises the following:
| (in millions of euros) | 2nd Quarter 2007 | 2nd Quarter 2006 | 1st Half 2007 | 1st Half 2006 |
| Interest cost and other financial charges from financial services companies | 183 | 212 | 360 | 422 |
| Other cost of sales | 12,398 | 11,207 | 23,700 | 21,646 |
Cost of sales | 12,581 | 11,419 | 24,060 | 22,068 |
3. Selling, general and administrative costs
Selling costs amount to 724 million euros and 1,444 in the second quarter of 2007 and in the first half of 2007, respectively (670 million euros and 1,351 million euros in the second quarter of 2006 and in the first half of 2006, respectively) and comprise mainly marketing, advertising and sales personnel costs.
General and administrative costs amount to 552 million euros and 1,087 in the second quarter of 2007 and in the first half of 2007, respectively (526 million euros and 1,058 million euros in the second quarter of 2006 and in the first half of 2006, respectively) and comprise mainly expenses for administration which are not attributable to sales, production and research and development functions.
4. Research and development costs
In the second quarter of 2007, research and development costs of 381 million euros (371 million euros in the second quarter of 2006) comprise all research and development costs not recognized as assets amounting to 214 million euros (218 million euros in the second quarter of 2006) including the write-downs of any costs previously capitalized, and the amortization of capitalized development costs of 167 million euros (153 million euros in the second quarter of 2006). During the period the Group incurred new expenditure for capitalized development costs of 231 million euros (214 million euros in the second quarter of 2006).
In the first half of 2007, research and development costs of 755 million euros (701 million euros in the first half of 2006) comprise all research and development costs not recognized as assets amounting to 417 million euros (406 million euros in the first half of 2006) including the write-downs of any costs previously capitalized and the amortization of capitalized development costs of 338 million euros (295 million euros in the first half of 2006). During the period the Group incurred new expenditure for capitalized development costs of 400 million euros (425 million euros in the first half of 2006).
5. Other income (expenses)
Other income amounts to 5 million euros and 32 million euros in the second quarter 2007 and in the first half of 2007, respectively (other income of 37 million euros and other expenses of 4 million euros in the second quarter 2006 and in the first half of 2006, respectively) and consists of trading income which is not attributable to the typical sales and services operations of the Group, such as income from the sale of licenses and know-how, net of miscellaneous operating costs not ascribable to specific functional areas, such as post employment benefits for retired former employees (health care costs), indirect taxes and duties, and accruals to miscellaneous provisions.
In particular, this item includes non-recurring income of 60 million euros arising from the reinstatement of the carrying amount of a piece of land which had been fully written down in a prior period and which is now in the process of being sold; it also includes miscellaneous non-recurring expenses of 20 million euros.
6. Gains (losses) on the disposal of investments
In the second quarter of 2007 this item results in a net gain of 8 million euros, which includes a gain of 5 million euros on the disposal of a 17% interest in the associate Servizio Titoli S.p.A., in which the Group maintains a 10% holding, and a gain of 4 million euros from the disposal of a Comau French business. This item resulted in a net gain of 52 million euros in the first half of 2007, consisting also of the gain of 42 million euros recognised in the first quarter of 2007 on the finalisation of the disposal of the subsidiary Ingest Facility S.p.A. As described in Note 13 to the Consolidated financial statements at December 31, 2006, the net loss of 29 million euros on the disposal of the subsidiary Meridian Technologies Inc., concluded on March 2, 2007, was recognised in the income statement for 2006.
In the second quarter of 2006 and in the first half of 2006 this item resulted in a net gain of 6 million euros and 8 million euros, respectively, and included gain of 9 million euros realized from the sale of the Group residual interest in I.P.I. S.p.A.
7. Restructuring costs
Restructuring costs amount to 7 million euros in the second quarter of 2007 (5 million euros in the second quarter of 2006) relating to Comau.
In the first half of 2007, the group incurred restructuring costs for a total of 22 million euros (8 million euros in the first half of 2006), again relating to Comau.
8. Other unusual income (expenses)
In the second quarter of 2007 this item results in a net loss of 1 million euros (net loss of 1million euros in the second quarter of 2006), including expenses of 6 million euros incurred in connection with the process of reorganisation and streamlining of relationships with Group suppliers as well as other non recurring income of 5 million euros arising from the favourable settlement of certain contractual claims regarding the sale of businesses carried out in prior years.
In the first half of 2007, this item resulted in a net loss of 30 million euros, mostly incurred in connection with the process of reorganisation and streamlining of relationships with Group suppliers. In the first half of 2006, this item amounted to zero.
9. Financial income (expenses)
In addition to the items included in the specific line of the income statement, Net financial income (expenses) also includes the income from financial services companies included in Net revenues for 235 million euros and 471 million euros in the second quarter of 2007 and in the first half of 2007, respectively (282 million euros and 544 million euros in the second quarter of 2006 and in the first half of 2006, respectively) and the costs incurred by financial services companies included in Interest cost and other financial charges from financial services companies included in Cost of sales for 183 million euros and 360 million euros in the second quarter of 2007 and in the first half of 2007, respectively (212 million euros and 422 million euros in the second quarter of 2006 and in the first half of 2006, respectively). Reconciliation to the income statement is provided at the foot of each column of the following table.
| (in millions of euros) | 2nd Quarter 2007 | 2nd Quarter 2006 | 1st Half 2007 | 1st Half 2006 |
Financial income | | | | |
| - Interest earned and other financial income | 84 | 69 | 162 | 136 |
| - Interest income from customers and other financial income of financial services companies | 235 | 282 | 471 | 544 |
| - Gains on disposal of securities | 5 | 3 | 8 | 4 |
Total financial income | 324 | 354 | 641 | 684 |
| of which: | | | | |
| - Financial income, excluding financial services companies | 89 | 72 | 170 | 140 |
| | | | | |
Interest and other financial expenses | | | | |
| - Interest expense and other financial expenses | 417 | 400 | 781 | 783 |
| - Write-downs of financial assets | 18 | 31 | 30 | 61 |
| - Losses on disposal of securities | 1 | - | 1 | 1 |
| - Interest costs on employee benefits | 35 | 41 | 78 | 81 |
Total interest and other financial expenses (a) | 471 | 472 | 890 | 926 |
| | | | | |
Net income (expenses) from derivative financial instruments and exchange losses (b) | 88 | 25 | 192 | 66 |
| | | | | |
| of which of (a-b): | | | | |
| Interest and other financial expenses, effects resulting from derivative financial instruments and exchange differences, excluding financial services companies | 200 | 235 | 338 | 438 |
| | | | | |
Net financial income (expenses) excluding financial services companies | (111) | (163) | (168) | (298) |
Net financial expenses for the second quarter of 2007, excluding the financial services companies, amounted to 111 million euros, a decrease compared to the net expenses of 163 million euros for the corresponding period in 2006. Net financial expenses for the first half of 2007, excluding the financial services companies, amounted to 168 million euros, a decrease compared to the net expenses of 298 million euros for the corresponding period in 2006.
The improvement compared to the corresponding periods of 2006 is the consequence of the lower level of debt in the Group’s Industrial Activities and of the net financial income of 69 million euros in the second quarter of 2007 and 160 million euros in the first half of 2007, arising from the equity swaps on Fiat shares, set up to support certain stock options plans (expenses of 1 million euros in the second quarter of 2006 and gain of 32 million euros in the first half of 2006). These effects have been partially offset by a cost of 43 million euros recognised in the second quarter of 2007 arising from the adjustment of the carrying amount of a CNH 9.25% fixed rate bond, originally repayable in 2011 but which as announced will be repaid on August 1, 2007, to the expected amount repayable.
There has been a decrease in the income and expense of the financial services companies compared to the second quarter of 2006 and the first half of 2006, as the result of the sale of BUC and the transfer of the Fiat Group Automobiles European financial services business to FAFS, occurred in the second half of 2006.
10. Result from investments
The item includes the Group’s interest in the net income or loss of the companies accounted for using the equity method for an amount equal to 38 million euros and 66 million euros in the second quarter of 2007 and in the firs half of 2007, respectively (43 million euros and 70 million euros in the corresponding periods of 2006) , the write-downs connected with the impairment loss of financial assets and any reversal, the write-downs of investments classified as available-for-sale, accruals to provisions against investments, income and expense arising from the adjustment to fair value of investments in other entities held for trading, and dividend income.
The Result from investments in the second quarter of 2007 is a profit amounting to 40 million euros (a profit of 46 million euros in the second quarter of 2006) and consists of (amounts in millions of euros): Fiat Group Automobiles Sector Companies 23 (16 in the second quarter of 2006); entities of Agricultural and Construction equipment Sector 10 (19 in the second quarter of 2006), Trucks and Commercial Vehicles Sector Companies 5 (3 in the second quarter of 2006) and other companies 2 (8 in the second quarter of 2006).
The Result from investments in the first half of 2007 is a profit amounting to 76 million euros (a profit of 90 million euros in the first half of 2006) and consists of (amounts in millions of euros): Fiat Group Automobiles Sector Companies 34 (24 in the first half of 2006); entities of Agricultural and Construction equipment Sector 17 (29 in the first half of 2006), Trucks and Commercial Vehicles Sector Companies 2 (21 in the first half of 2006) and other companies 23 (16 in the first half of 2006).
The profit for the first half of 2006 for the Trucks and Commercial Vehicles Sector was due to the release to income of provisions of 15 million euros made in 2005 against risks in connection with a Chinese associate which no longer subsist.
11. Income taxes
Income taxes consist of the following:
| (in millions of euros) | 2nd Quarter 2007 | 2nd Quarter 2006 | 1st Half 2007 | 1st Half 2006 |
| Current taxes: | | | | | | | | |
| - IRAP | 46 | | 39 | | 90 | | 77 | |
| - Other taxes | 213 | | 90 | | 357 | | 165 | |
Total current taxes | | 259 | | 129 | | 447 | | 242 |
| Deferred taxes for the period | | (14) | | 80 | | (7) | | 45 |
| Taxes relating to prior periods | | 3 | | 3 | | 6 | | 6 |
Total Income taxes | | 248 | | 212 | | 446 | | 293 |
The increase in the charge for income taxes in the second quarter of 2007 and in the first half of 2007 with respect to the same periods of 2006 mainly arises from improvements in results, in particular those of the foreign companies.
Net deferred tax assets at June 31, 2007 consist of deferred tax assets, net of deferred tax liabilities that have been offset where permissible by the individual companies. The net balance of Deferred tax assets and Deferred tax liabilities may be analyzed as follows:
| (in millions of euros) | At June 31, 2007 | At December 31, 2006 |
| Deferred tax assets | 1,859 | 1,860 |
| Deferred tax liabilities | (248) | (263) |
Net deferred tax assets | 1,611 | 1,597 |
12. Earnings per share
As explained in Note 25 to Consolidated financial statements at December 31, 2006, Fiat S.p.A. capital stock is represented by three different classes of shares (ordinary shares, preference shares and saving shares) that participate in dividends with different rights. Profit or loss of the period attributable to each class of share is determined in accordance with the share’s contractual dividend rights.
For this purpose, the net result attributable to the ordinary equity holders of the parent company has been adjusted by the amount of the dividends that would be contractually due to each class of shares in the theoretical event of a total distribution of profits. The total profit allocated to each class of share has then been divided by the weighted average number of outstanding shares in the period to determine earnings per share.
The following table shows for the first half of 2007 and the first half of 2006 the reconciliation between the net result attributable to equity holders of the parent and the profit attributable to each class of shares, as well as, the weighted number of shares outstanding during the period:
| | | 1st Half 2007 | 1st Half 2006 |
| | | Ordinary shares | Preference shares | Saving shares | Total | Ordinary shares | Preference shares | Saving shares | Total |
| Profit attributable to equity holders of the parent | million of euros | | | | 951 | | | | 418 |
| Prior period dividends to saving shares declared for the period | million of euros | - | - | - | - | - | - | 50 | 50 |
| Dividends due to each class of shares | million of euros | 168 | 32 | 25 | 225 | 169 | 32 | 25 | 226 |
| Theoretical preference right on saving and ordinary shares | million of euros | 168 | - | 12 | 180 | 133 | - | 9 | 142 |
| Profit available for distribution to all classes of shares | million of euros | 468 | 44 | 34 | 546 | - | - | - | - |
Profit attributable to each class of shares | million of euros | 804 | 76 | 71 | 951 | 302 | 32 | 84 | 418 |
Weighted average number of shares outstanding | thousand | 1,086,134 | 103,292 | 79,913 | 1,269,339 | 1,087,923 | 103,292 | 79,913 | 1,271,128 |
| | | | | | | | | | |
Basic earning per share | euros | 0.740 | 0.740 | 0.895 | | 0.277 | 0.310 | 1.052 | |
The following table shows for the second quarter of 2007 and the second quarter of 2006 the reconciliation between the net result attributable to equity holders of the parent and the profit attributable to each class of shares, as well as, the average number of shares outstanding during the period.
| | | 2nd Quarter 2007 | 2nd Quarter 2006 |
| | | Ordinary shares | Preference shares | Saving shares | Total | Ordinary shares | Preference shares | Saving shares | Total |
| Profit attributable to equity holders of the parent | million of euros | | | | 593 | | | | 280 |
Profit attributable to each class of shares | Million of euros | 511 | 44 | 38 | 593 | 183 | 21 | 76 | 280 |
Weighted average number of shares | Thousand | 1,083,732 | 103,292 | 79,913 | 1,266,937 | 1,087,923 | 103,292 | 79,913 | 1,271,128 |
| | | | | | | | | | |
Basic earning per share | euros | 0.472 | 0.430 | 0.472 | | 0.168 | 0.201 | 0.943 | |
Prior period dividends of 0.62 euros per share were included in the calculation of earnings per share attributable to savings shares for the second quarter of 2006 and the first half of 2006. If these prior period dividends had not been included, basic earnings per savings share would have been 0.365 euros per share in the second quarter of 2006 and 0.474 euros per share in the first half of 2006. Basic earnings per ordinary and preference share would have been 0.210 euros per share in the second quarter of 2006 and 0.319 euros per share in the first half of 2006.
For the purpose of calculating diluted earnings per share for the second quarter of 2007 and the first half of 2007, the average number of outstanding ordinary shares has been increased so as also to take into consideration the effect that would arise if the stock options on Fiat S.p.A. shares were to be exercised, while the result attributable to the Group has been adjusted to take into account the dilutive effects that would arise if the stock options granted by the Group’s subsidiaries on their equity instruments were to be exercised. No dilutive effects arose in the first half of 2007 and 2006 and in the second quarter of 2006 from warrants issued by Fiat S.p.A. on its ordinary shares; this warrants expired in January 2007.
The following table sets out for the first half of 2007 and the second quarter of 2007, together with the corresponding comparative periods in 2006, the weighted number of shares outstanding during the period used in the calculation of diluted earnings per share and diluted earnings per share by class of share.
| | | 1st Half 2007 | 1st Half 2006 |
| | | Ordinary shares | Preference shares | Saving shares | Total | Ordinary shares | Preference shares | Saving shares | Total |
Profit attributable to each class of shares | million of euros | 803 | 76 | 71 | 950 | 302 | 32 | 84 | 418 |
Total number of shares considered in the diluted earning per share | thousands | 1,092,498 | 103,292 | 79,913 | 1,275,703 | 1,087,923 | 103,292 | 79,913 | 1,271,128 |
Diluted earning per share | euros | 0.739 | 0.735 | 0.890 | | 0.277 | 0.310 | 1.052 | |
| | | 2nd Quarter 2007 | 2nd Quarter 2006 |
| | | Ordinary shares | Preference shares | Saving shares | Total | Ordinary shares | Preference shares | Saving shares | Total |
Profit attributable to each class of shares | million of euros | 511 | 44 | 37 | 592 | 183 | 21 | 76 | 280 |
Total number of shares considered in the diluted earning per share | thousands | 1,090,471 | 103,292 | 79,913 | 1,273,676 | 1,087,923 | 103,292 | 79,913 | 1,271,128 |
Diluted earning per share | euros | 0.472 | 0.427 | 0.469 | | 0.168 | 0.201 | 0.943 | |
13. Intangible assets
| (in millions of euros) | Net of amortisation at December 31, 2006 | Additions | Amortisation | Foreign exchange effects and other changes | Net of amortisation at June 30, 2007 |
| Goodwill | 2,850 | - | - | 24 | 2,874 |
| Development costs | 2,776 | 400 | (338) | (15) | 2,823 |
| Other | 795 | 54 | (97) | 53 | 805 |
Total Intangible assets | 6,421 | 454 | (435) | 62 | 6,502 |
Goodwill consists principally of net goodwill resulting from the purchase of the Case group and other companies of the Agricultural and Construction Equipment Sector for 1,759 million euros, the Ferrari Sector for 786 million euros, the Pico group and other companies in the Production Systems Sector for 149 million euros, companies in the Components Sector for 109 million euros,), companies in the Trucks and Commercial Vehicles Sector for 56 million euros and companies in the Metallurgical Products Sector for 11 million euros. In particular, the Other changes column includes goodwill of 61 million euros arising from the acquisition of the After Market Parts and Services group.
The addition to Other intangible assets of 54 million euros in the first half of 2007 relates mainly to software.
Foreign exchange losses of 33 million euros in the first half of 2007 principally reflect changes in the Euro/U.S. dollar rate.
The item Other changes includes a reclassification of 57 million euros of expenditure on software previously improperly reported as Property, plant and equipment.
14. Property, plant and equipment
| (in millions of euros) | Net of depreciation at December 31, 2006 | Additions | Depreciation | Foreign exchange effects | Disposals and other changes | Net of depreciation at June 30, 2007 |
| Property, plant and equipment | 9,383 | 834 | (872) | 80 | (155) | 9,270 |
| Assets sold with a buy-back commitment | 1,157 | 174 | (67) | - | (122) | 1,142 |
Total Property plant and equipment | 10,540 | 1,008 | (939) | 80 | (277) | 10,412 |
Additions of 1,008 million euros in the first half of 2007 mainly refer to the Automotive Sectors (Fiat Group Automobiles, Trucks and Commercial Vehicles and CNH - Case New Holland). Foreign exchange gains of 80 million euros in the first half of 2007 principally reflect changes in the Euro/Brazilian Real rate.
15. Investments and other financial assets
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Investments | 2,129 | 2,078 |
| Receivables | 99 | 97 |
| Other securities | 105 | 105 |
Total Investments and other financial assets | 2,333 | 2,280 |
Changes in Investments are as follows:
| (in millions of euros) | At December 31, 2006 | Revaluations (write-downs) | Changes in the scope of consolidation | Other changes | At June 30, 2007 |
Investments | 2,078 | 65 | (3) | (11) | 2,129 |
At June 30, 2007 the item Investments totals 2,129 million euros (2,078 million euros at December 31, 2006) and includes, amongst others, the following investments (in millions of euros): Fiat Group Automobiles Financial Services S.p.A. 550 (528 at December 31, 2006), Tofas Turk Otomobil Fabrikasi A.S. 222 (206 at December 31, 2006), Trucks and Commercial Vehicles Finance Holdings Limited 145 (141 at December 31, 2006), Sevel S.p.A. 94 (93 at December 31, 2006), Naveco Ltd. 114 (117 at December 31, 2006), Kobelco Construction Machinery Co. Ltd. 86 (97 at December 31, 2006), Rizzoli Corriere della Sera MediaGroup S.p.A. 117 (107 at December 31, 2006), Mediobanca S.p.A. 253 (268 at December 31, 2006) and I.T.C.A. S.p.A. 26.
Other negative changes of 11 million euros are made up as follows: negative fair value adjustments of 15 million euros arising from the investment in Mediobanca S.p.A.; the negative effect of dividends for 67 million euros distributed by companies accounted for using the equity method and other minor decreases of 12 million euros; net of foreign exchange gains of 3 million euros; purchases and capitalisations amounting to 80 million euros attributable to the purchase of I.T.C.A. S.p.A, a company working in the automotive sector, and other minor companies; and the capitalisation of certain jointly controlled entities for 26 million euros.
Revaluations and write-downs consist of adjustments for the result for the period to the carrying value of investments accounted for under the equity method. Write-downs also include any impairment loss in investments accounted for under the cost method.
16. Leased assets
| (in millions of euros) | Net of depreciation at December 31, 2006 | Additions | Depreciation | Foreign exchange effect | Disposals and other changes | Net of depreciation at June 30, 2007 |
Leased assets | 247 | 140 | (32) | (1) | (32) | 322 |
17. Inventories
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Raw materials, supplies and finished goods | 9,338 | 8,240 |
| Work in progress | 2,202 | 2,493 |
| Advances on contract work | (1,989) | (2,286) |
Total Inventories | 9,551 | 8,447 |
At June, 30 2007, Inventories include assets sold with a buy-back commitment by Fiat Group Automobiles for 1,246 million euros (894 million euros at December 31, 2006). Net of this amount, inventories show an increase of 752 million euros in the first half of 2007, manly due to the increase in volumes and to the seasonal increase in CNH-Case New Holland and Trucks and Commercial Vehicles inventories.
The majority of Work in progress and Advances on contract work relate to the Production Systems Sector (Comau).
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Trade receivables | 5,546 | 4,944 |
| Receivables from financing activities | 12,717 | 11,743 |
| Other receivables | 3,071 | 2,839 |
Total Current Receivables | 21,334 | 19,526 |
Trade receivables have increased by 602 million euros compared to December 31, 2006 as the result of increase in sales of Fiat Group Automobiles, Trucks and Commercial Vehicles, Magneti Marelli and FPT Powertrain technologies.
Other receivables mainly include amounts due from the Tax Authorities, security deposits and miscellaneous receivables.
Receivables from financing activities include the following:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Retail financing | 6,902 | 6,482 |
| Finance leases | 621 | 580 |
| Dealer financing | 4,862 | 4,084 |
| Supplier financing | 121 | 234 |
| Current financial receivables from jointly controlled financial services entities | 47 | 143 |
| Financial receivables from companies under joint control, associates and unconsolidated subsidiaries | 38 | 22 |
| Other | 126 | 198 |
Total Receivables from financing activities | 12,717 | 11,743 |
The increase of 974 million euros in Receivables from financing activities is principally due to the increase in the financing given by the CNH - Case New Holland financial services companies, partially offset by the decrease in the financing activities of the Fiat Group Automobiles financial services companies that did not become part of FAFS at the end of 2006 and the decrease in Current financial receivables from jointly controlled financial services entities and in Other financial receivables.
19. Current securities
At June 30, 2007 Current securities include mainly short-term or marketable securities which represent temporary investments readily convertible into cash, but which do not satisfy the requirements for being classified as cash equivalents. During the first half of 2007 this item decreased by 36 million euros, as a consequence of a changed mix in the temporary investment of funds.
20. Other financial assets and Other financial liabilities
These items include, respectively, the positive and the negative measurement at fair value of derivative financial instruments at June 30, 2007.
In particular, the overall change in other financial assets (from 382 million euros at December 31, 2006 to 525 million euros at June 30, 2007), and the increase in other financial liabilities (from 105 million euros at December 31, 2006 to 152 million euros at June 30, 2007), is mainly due to the changes in exchange rates and interest rates over the period, as well as to the increase in fair value relating to the equity swap on Fiat shares (approximately 160 million euros at June 30, 2007).
As this item consists principally of hedging instruments, the change in their value is compensated by the change in the value of the hedged item.
21. Cash and cash equivalents
Cash and cash equivalents include cash at bank, units in liquidity funds and other money market securities that are readily convertible into cash and are subject to an insignificant risk of changes in value.
At June 30, 2007, this item includes approximately 741 million euros (627 million euros at December 31, 2006) of cash whose use is restricted to the repayment of the debt related to securitisations mainly classified in the item Asset-backed financing. During the first half of 2007 the item Cash and cash equivalents decreased by 559 million euros.
22. Assets and liabilities held for sale
At June 30, 2007 Assets and liabilities held for sale include the assets and liabilities of the Indian business of Fiat Group Automobiles that will be transferred to the joint venture with Tata Motors that is currently being set up, certain properties and buildings held by Fiat Group Automobiles, CNH - Case New Holland and Trucks and Commercial Vehicles, and the carrying value of the assets and liabilities of certain business of Comau Sector.
The items included in Assets held for sale and Liabilities held for sale may be summarised as follows:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Intangible assets | 3 | 8 |
| Property, plant and equipment | 180 | 173 |
| Investments and other financial assets | 4 | - |
| Leased assets | - | 7 |
| Deferred tax assets | - | 6 |
| Inventories | 8 | 37 |
| Trade receivables | 20 | 80 |
| Receivables from financing activities | - | 6 |
| Other receivables, Accrued income and prepaid expenses | 5 | 10 |
| Cash and cash equivalents | 36 | 5 |
Total Assets | 256 | 332 |
| Employee benefits | - | 13 |
| Other provisions | 28 | 42 |
| Other debt | 42 | 34 |
| Trade payables | 19 | 172 |
| Deferred tax liabilities | - | 4 |
| Other payables, Accrued expenses and deferred income | 25 | 44 |
Total Liabilities | 114 | 309 |
At December 31, 2006, the item Assets and Liabilities held for sale consisted of the above-mentioned buildings and factories of Fiat Group Automobiles, Trucks and Commercial Vehicles and CNH - Case New Holland, the assets and liabilities of the subsidiaries Meridian Technologies Inc. and Ingest Facility S.p.A. and the assets and liabilities of the Indian business of Fiat Group Automobiles that will be transferred to the joint venture with Tata Motors that is currently being set up.
23. Stockholders' equity
Stockholders’ equity has increased by 551 million euros over that at December 31, 2006, a figure which includes the net income for the period of 1,003 million euros, net of dividend distributed of 308 million euros, foreign exchange losses from the translation into euros of the financial statements of subsidiaries denominated in other currencies of 93 million euros, a decrease of 56 million euros arising from the sale of Meridian Technologies Inc. and from the treasury stock buy-back and sale (219 millions of euros). In respect of this latter item a total of 11,081 million ordinary shares were purchased under the treasury stock purchase Programme approved by stockholders on April 5, 2007, with an overall investment being made of 231.3 million euros. The purchase programme, aimed at servicing stock option plans and the investment of liquidity, refers to a maximum number of Fiat S.p.A. treasury shares from the three classes of stock which shall not exceed 10% of the capital stock and a maximum aggregate amount of 1.4 billion euros and will be carried out on the regulated market as follows:
§ from the effective date on April 10, 2007 and through December 31, 2007, or once the maximum amount of 1.4 billion euros or a number of shares equal to 10% of the capital stock is reached;
§ maximum purchase price not exceeding 10% of the reference price reported on the Stock Exchange on the day before the purchase is made;
§ the maximum number of shares purchased daily not exceeding 20% of the total daily trading volume for each class of shares.
On January 29, 2007, the Italian Stock Exchange removed from trading the 2007 Fiat Ordinary Share Warrants issued in 2002 and expired in 2007. The owners of the 65,509,168 outstanding warrants at that date were given the option to subscribe in January 2007 to Fiat S.p.A. ordinary shares in the ratio of one Fiat ordinary share at a price of 29.364 euros for every four warrants held. To date 4,676 warrants have been exercised with the issue of 1,169 shares. As a consequence, on February 1, 2007 the capital stock of Fiat S.p.A. increased from 6,377,257,130 euros to 6,377,262,975 euros and additional paid-in capital increased by 28,481.52 euros.
Capital stock, fully paid-in, amounts to 6,377 million euros at March 31, 2007 and consists of 1,275,452,595 shares as follows:
§ 1,092,247,485 ordinary shares;
§ 103,292,310 preference shares;
§ 79,912,800 savings shares;
All with a par value of 5 euros each.
For more complete information on the capital stock of Fiat S.p.A., reference should be made to Note 25 of the Consolidated Financial Statements at December 31, 2006.
Consolidated gains (losses) recognised directly in equity are as follows:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Gains (losses) recognised directly in the cash flow hedge reserve | 90 | 76 |
| Gains (losses) recognised directly in the available-for-sale reserve | 153 | 170 |
| Gains (losses) on translation differences | 387 | 294 |
Total Gains (losses) recognised directly in equity | 630 | 540 |
The decrease in gains recognized directly in the available-for-sale reserve is due to a decline in the fair value of the assets to which it relates.
24. Provisions
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Employee benefits | | 3,648 | | 3,761 |
| Other provisions: | | | | |
| - Warranty provision | 1,290 | | 1,254 | |
| - Restructuring provision | 477 | | 561 | |
| - Investment provision | 69 | | 67 | |
| - Other risks | 2,973 | | 2,968 | |
| Total Other provisions | | 4,809 | | 4,850 |
Total Provisions | | 8,457 | | 8,611 |
Provisions for Employee benefits include provisions for both pension plans and other post employment benefits. The decrease of 113 million includes a foreign exchange loss of 21 million euros arising from changes in the exchange rate between the US dollar and the Euro.
Reserves for risks and charges and other reserves amount to 4,809 million euros at June 30, 2007 (4,850 million euros at December 31, 2006) and include provisions for contractual, commercial and legal risks.
25. Debt
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Asset-backed financing | | 7,697 | | 8,344 |
| Other debt: | | | | |
| Bonds | 8,157 | | 7,297 | |
| Borrowings from banks | 2,818 | | 3,349 | |
| Payables represented by securities | 341 | | 315 | |
| Other | 921 | | 883 | |
| Total Other debt | | 12,237 | | 11,844 |
Total Debt | | 19,934 | | 20,188 |
At June 30, 2007 Debt decreased by 254 million euros. The decrease from December 31, 2006, is attributable to lower asset-backed financing (647 million euros) partly offset by the increase in other debt (approximately 393 million euros).
The increase in Bonds during the first half of 2007 is the result of the issue by Fiat Finance North America Inc. of a bond having a nominal value of 1 billion euros at a price of 99.232 as part of a Global Medium Term Note Programme with a ceiling of 15 billion euros; the bond bears fixed interest at 5.625% and is repayable on June 12, 2017.
Repayment of bonds during the period totalled 21 million euros. During the first half of 2007 the residual debt for an amount of 13 million euros of the 5 year convertible into General Motors Corporation common stock (the “Exchangeable bond”) was repaid at the due date.
The principal bond issues outstanding at June 30, 2007 are as follows:
| | Currency | Face value of outstanding bonds (in millions) | Coupon | Maturity | Outstanding amount (in millions of euros) |
Global Medium Term Notes: | | | | | |
Fiat Finance & Trade Ltd.(1) | EUR | 1,000 | 6.25% | February 24, 2010 | 1,000 |
Fiat Finance & Trade Ltd.(1) | EUR | 1,300 | 6.75% | May 25, 2011 | 1,300 |
Fiat Finance & Trade Ltd.(1) | EUR | 617 | (2) | (2) | 617 |
Fiat Finance & Trade Ltd.(4) | EUR | 1,000 | 5.625% | November 15, 2011 | 1,000 |
Fiat Finance North America Inc. (4) | EUR | 1,000 | 5.625% | June 12, 2017 | 1,000 |
Others (3) | | | | | 250 |
Total Global Medium Term Notes | | | | | 5,167 |
Other bonds: | | | | | |
| CNH Capital America LLC | USD | 127 | 6.75% | October 21, 2007 | 94 |
| Case New Holland Inc. | USD | 500 | 6.00% | June 1, 2009 | 370 |
Case New Holland Inc. (5) | USD | 1,050 | 9.25% | August 1, 2011 | 778 |
Fiat Finance & Trade Ltd. (4) | EUR | 1,000 | 6.625% | February 15, 2013 | 1,000 |
| Case New Holland Inc. | USD | 500 | 7.125% | March 1, 2014 | 370 |
| CNH America LLC | USD | 254 | 7.25% | January 15, 2016 | 188 |
Total Other bonds | | | | | 2,800 |
Hedging effect and amortised cost valuation | | | 190 |
Total Bonds | | | | | 8,157 |
(1) Bonds listed on the Mercato Obbligazionario Telematico of the Italian stock exchange (EuroMot). In addition, the majority of the bonds issued by the Fiat Group are also listed on the Luxembourg stock exchange.
(2) “Fiat Step-Up Amortizing 2001-2011” bonds repayable at face value in five equal annual instalments each for 20% of the total issued (617 million euros) due beginning from the sixth year (November 7, 2007) by reducing the face value of each bond outstanding by one-fifth. The last instalment will be repaid on November 7, 2011. The bonds pay coupon interest equal to: 4.40% in the first year (November 7, 2002), 4.60% in the second year (November 7, 2003), 4.80% in the third year (November 7, 2004), 5.00% in the fourth year (November 7, 2005), 5.20% in the fifth year (November 7, 2006), 5.40% in the sixth year (November 7, 2007), 5.90% in the seventh year (November 7, 2008), 6.40% in the eighth year (November 7, 2009), 6.90% in the ninth year (November 7, 2010), 7.40% in the tenth year (November 7, 2011).
(3) Bonds with amounts outstanding equal to or less than the equivalent of 50 million euros.
(4) Bond listed on the Irish Stock Exchange.
(5) CNH announced on June 28, 2007 that this Note will be fully redeemed in advance on August 1, 2007.
Further information about these bonds is included in Note 28 to the Consolidated Financial Statements at December 31, 2006. The prospectuses, the offering circulars or their abstracts relating to the aforementioned principal bond issues are available on the Group’s website at www.fiatgroup.com under “Investor Relations – Financial Reports”.
The Fiat Group intends to repay the issued bonds in cash at maturity by utilizing available liquid resources.
At June 30, 2007, the Fiat Group also had unused committed credit lines of approximately 2 billion euros.
In addition, the companies in the Fiat Group may from time to time buy back bonds on the market that have been issued by the Group, also for purposes of their cancellation. Such buybacks, if made, depend upon market conditions, the financial situation of the Group and other factors which could affect such decisions.
Finally, financial payables secured with mortgages and other liens on assets of the Group amount to 288 million euros at June 30, 2007 (190 million euros at December 31, 2006); this amount includes balances of 99 million euros (57 million euros at December 31, 2006) due to creditors for assets acquired under finance leases.
Net financial position
In compliance with Consob Communication No. DEM/6064293 issued on July 28, 2006 and in conformity with the CESR’s Recommendations for the consistent implementation of the European Commission’s Regulation on Prospectuses issued on February 10, 2005, the Net financial position of the Fiat Group is as follows:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Liquidity (a): | 7,401 | 7,965 |
| - Cash and cash equivalents | 7,177 | 7,736 |
| - Cash and cash equivalents included as Assets held for sale | 36 | 5 |
| - Securities held for trading (Current securities) | 188 | 224 |
| | | |
| Current financial receivables (Receivables from financing activities) (b): | 12,717 | 11,743 |
| - From jointly controlled financial services entities | 47 | 143 |
| - From other related parties | 125 | 48 |
| - From third parties | 12,545 | 11,552 |
| | | |
| Current financial receivables included as Assets held for sale (c) | - | 5 |
| | | |
| Other current financial assets (Other financial assets) (d) | 525 | 382 |
| | | |
| Debt (e): | 19,934 | 20,188 |
| - due to related parties | 537 | 734 |
| - due to third parties | 19,397 | 19,454 |
| | | |
| Debt included as Liabilities held for sale (f) | 42 | 33 |
| | | |
| Other current financial liabilities (Other financial liabilities) (g) | 152 | 105 |
| | | |
Net financial position (h) = (a+b+c+d-e-f-g): | 515 | (231) |
| - due to related parties | (365) | (543) |
| - due to third parties | 880 | 312 |
The item Receivables from financing activities includes the entire portfolio of the financial services entities, classified as current assets as they will be realised during the normal operating cycle of these companies.
The following is reconciliation between Net financial position as presented in the above table and Net debt as presented in the Report on Operations:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
Consolidated net debt as presented in the Report on Operations | (12,155) | (11,836) |
| | | |
| Less: Current financial receivables, excluding those due from jointly controlled financial services companies amounting to 47 million euros at June 30, 2007 and to 143 million euros at December 31, 2006 | 12,670 | 11,605 |
| | | |
Net financial position | 515 | (231) |
Reference should be made to Notes 18, 19, 20 and 21 and the information provided in Note 25 for a further analysis of the items in the table.
26. Trade payables
Trade payables of 13,951 million euros at June 30, 2007 increased by 1,348 million euros from the amount at December 31, 2006. This change is mainly due to the increase in the level of activities of Fiat Group Automobiles, FPT Powertrain Technologies, CNH - Case New Holland, Trucks and Commercial Vehicles Sectors and Components Sectors.
27. Other payables
Other payables include 2,788 million euros of amounts payable to customers related to buy-back agreements (2,370 million euros at December 31, 2006).
28. Accrued expenses and deferred income
The item Accrued liabilities and deferred income includes public investment grants recognised as income over the useful lives of the assets to which they relate. Furthermore, the item comprises deferred income relating to service contracts, as well as accrued liabilities for costs that will be settled in the following periods.
29. Guarantees granted, commitments and other contingent liabilities
Guarantees granted
At June 30, 2007, the Group has provided guarantees on the debt or commitments of third parties or jointly controlled and associated entities totalling 743 million euros, in line with the amount at December 31, 2006 (726 million euros).
Other commitments and important contractual rights
The Fiat Group has important commitments and rights deriving from outstanding agreements. These commitments and rights are described in Note 32 of the Consolidated Financial Statements at December 31, 2006, to which reference should be made, insofar as no changes occurred in the first half of 2007. In particular, these involve commitments and rights regarding:
§ relations of Fiat with the Arab fund Mubadala Development Company concerning its holding in the subsidiary Ferrari S.p.A.;
§ relations of Fiat with Renault concerning the subsidiary Teksid.
Lawsuits and controversies
The Parent Company and certain subsidiaries are party to various lawsuits and controversies. Nevertheless, it is believed that the resolution of these controversies will not cause significant liabilities for which specific risk provisions have not already been set aside.
Sales of receivables
The Group has discounted receivables and bills without recourse having due dates beyond June 30, 2007 amounting to 5,974 million euros (5,697 million euros at December 31, 2006, with due dates beyond that date), which refer to trade receivables and other receivables for 4,793 million euros (4,489 million euros at December 31, 2006) and receivables from financing for 1,181 million euros (1,208 million euros at December 31, 2006). The amount includes receivables, mostly due from the sales network, of 3,408 million euros (3,400 million euros at 31 December 2006) sold to jointly-controlled financial services companies (FAFS) and of 863 million euros (661 million euros at 31 December 2006) sold to associate financial services companies (Iveco Financial Services, controlled by Barclays). The increase which has taken place over the first half of 2007 is connected with the high levels of business volumes and in particular those of Fiat Group Automobiles, CNH - Case New Holland, Trucks and Commercial Vehicles and Magneti Marelli.
30. Income statement by business sector
| (in millions of euros) | Fiat Group Automobiles | Maserati | Ferrari | CNH | Iveco | FPT | Magneti Marelli | Teksid | Comau | Itedi | Other and eliminations | FIAT Group |
2nd Quarter 2007 | | | | | | | | | | | | |
| Total net revenues | 6,782 | 177 | 423 | 3,269 | 2,861 | 1,843 | 1,274 | 179 | 307 | 105 | (2,041) | 15,179 |
| Net revenues intersegment (*) | (70) | (5) | (17) | - | (26) | (1,408) | (463) | (56) | (92) | (2) | 2,139 | - |
Net revenues from third parties | 6,712 | 172 | 406 | 3,269 | 2,835 | 435 | 811 | 123 | 215 | 103 | 98 | 15,179 |
Trading profit | 193 | 1 | 70 | 348 | 224 | 77 | 56 | 12 | 1 | 6 | (42) | 946 |
| Unusual income (expenses) | (7) | - | - | - | - | - | - | 3 | (3) | - | 7 | - |
Operating result | 186 | 1 | 70 | 348 | 224 | 77 | 56 | 15 | (2) | 6 | (35) | 946 |
| Financial income (expenses) | | | | | | | | | | | | (111) |
| Result from investments | | | | | | | | | | | | 40 |
Result before taxes | | | | | | | | | | | | 875 |
| Income taxes | | | | | | | | | | | | 248 |
Result from continuing operations | | | | | | | | | | | | 627 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (in millions of euros) | Fiat Group Automobiles | Maserati | Ferrari | CNH | Iveco | FPT | Magneti Marelli | Teksid | Comau | Itedi | Other and eliminations | FIAT Group |
2nd Quarter 2006 | | | | | | | | | | | | |
| Total net revenues | 6,050 | 148 | 389 | 3,014 | 2,286 | 1,592 | 1,146 | 260 | 346 | 108 | (1,731) | 13,608 |
| Net revenues intersegment (*) | (61) | (16) | (20) | (1) | (8) | (1,189) | (443) | (60) | (73) | (3) | 1,874 | - |
Net revenues from third parties | 5,989 | 132 | 369 | 3,013 | 2,278 | 403 | 703 | 200 | 273 | 105 | 143 | 13,608 |
Trading profit | 88 | (7) | 53 | 273 | 163 | 52 | 50 | 18 | (15) | 5 | (21) | 659 |
| Unusual income (expenses) | (5) | - | - | (1) | - | - | (1) | (1) | (1) | - | 9 | - |
Operating result | 83 | (7) | 53 | 272 | 163 | 52 | 49 | 17 | (16) | 5 | (12) | 659 |
| Financial income (expenses) | | | | | | | | | | | | (163) |
| Result from investments | | | | | | | | | | | | 46 |
Result before taxes | | | | | | | | | | | | 542 |
| Income taxes | | | | | | | | | | | | 212 |
Result from continuing operations | | | | | | | | | | | | 330 |
(*) Intersegment net sales and revenues include revenues between consolidated Group companies relating to different Sectors. Intersegment sales are accounted for at transfer prices that are substantially in line with market.
| (in millions of euros) | Fiat Group Automobiles | Maserati | Ferrari | CNH | Iveco | FPT | Magneti Marelli | Teksid | Comau | Itedi | Other and eliminations | FIAT Group |
1st Half 2007 | | | | | | | | | | | | |
| Total net revenues | 13,084 | 344 | 804 | 5,960 | 5,348 | 3,551 | 2,502 | 391 | 536 | 205 | (3,870) | 28,855 |
| Net revenues intersegment (*) | (125) | (8) | (44) | (1) | (48) | (2,662) | (903) | (115) | (156) | (4) | 4,066 | - |
Net revenues from third parties | 12,959 | 336 | 760 | 5,959 | 5,300 | 889 | 1,599 | 276 | 380 | 201 | 196 | 28,855 |
Trading profit | 385 | - | 101 | 537 | 374 | 121 | 101 | 32 | (25) | 6 | (91) | 1,541 |
| Unusual income (expenses) | (30) | - | - | - | - | - | - | (3) | (17) | - | 50 | - |
Operating result | 355 | - | 101 | 537 | 374 | 121 | 101 | 29 | (42) | 6 | (41) | 1,541 |
| Financial income (expenses) | | | | | | | | | | | | (168) |
| Result from investments | | | | | | | | | | | | 76 |
Result before taxes | | | | | | | | | | | | 1,449 |
| Income taxes | | | | | | | | | | | | 446 |
Result from continuing operations | | | | | | | | | | | | 1,003 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (in millions of euros) | Fiat Group Automobiles | Maserati | Ferrari | CNH | Iveco | FPT | Magneti Marelli | Teksid | Comau | Itedi | Other and eliminations | FIAT Group |
1st Half 2006 | | | | | | | | | | | | |
| Total net revenues | 11,768 | 269 | 706 | 5,666 | 4,357 | 3,170 | 2,342 | 520 | 652 | 202 | (3,488) | 26,164 |
| Net revenues intersegment (*) | (117) | (18) | (36) | (1) | (47) | (2,354) | (926) | (121) | (131) | (4) | 3,755 | - |
Net revenues from third parties | 11,651 | 251 | 670 | 5,665 | 4,310 | 816 | 1,416 | 399 | 521 | 198 | 267 | 26,164 |
Trading profit | 145 | (26) | 64 | 410 | 233 | 86 | 92 | 30 | (21) | 5 | (36) | 982 |
| Unusual income (expenses) | (5) | - | - | (4) | 2 | - | (1) | (2) | (1) | 1 | 10 | - |
Operating result | 140 | (26) | 64 | 406 | 235 | 86 | 91 | 28 | (22) | 6 | (26) | 982 |
| Financial income (expenses) | | | | | | | | | | | | (298) |
| Result from investments | | | | | | | | | | | | 90 |
Result before taxes | | | | | | | | | | | | 774 |
| Income taxes | | | | | | | | | | | | 293 |
Result from continuing operations | | | | | | | | | | | | 481 |
(*) Intersegment net sales and revenues include revenues between consolidated Group companies relating to different Sectors. Intersegment sales are accounted for at transfer prices that are substantially in line with market.
31. Related party transactions
The Fiat Group engages in transactions with unconsolidated subsidiaries, jointly controlled entities, associated companies and other related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved.
The effects of such transactions on the Consolidated income statements for the first half of 2007 and the first half of 2006 are as follows:
| | | of which: with related parties |
| (in millions of euros) | 1st Half 2007 | Unconsolidated Subsidiaries | Jointly controlled entities | Associated companies | Other related parties | Total related parties | Effect on Total (%) |
| Net revenues | 28,855 | 44 | 1,094 | 120 | 1 | 1,259 | 4.4% |
| Cost of sales | 24,060 | 4 | 1,803 | 23 | 16 | 1,846 | 7.7% |
| Selling, general and administrative costs | 2,531 | 2 | 11 | 7 | 45 | 65 | 2.6% |
| | | | | | | | |
| | | of which: with related parties |
| (in millions of euros) | 1st Half 2006 | Unconsolidated Subsidiaries | Jointly controlled entities | Associated companies | Other related parties | Total related parties | Effect on Total (%) |
| Net revenues | 26,164 | 7 | 836 | 219 | - | 1,062 | 4.1% |
| Cost of sales | 22,068 | - | 1,391 | 88 | 5 | 1,484 | 6.7% |
| Selling, general and administrative costs | 2,409 | - | - | 3 | 22 | 25 | 1.0% |
The effects on the Fiat Group Consolidated balance sheets at June 30, 2007 and at December 31, 2006 are as follows:
| | | of which: with related parties |
| (in millions of euros) | At June 30, 2007 | Unconsolidated Subsidiaries | Jointly controlled entities | Associated companies | Other related parties | Total related parties | Effect on Total (%) |
| Other investments and non-current financial assets | 588 | 68 | - | 31 | - | 99 | 16.8% |
| Inventories | 9,551 | - | 12 | - | - | 12 | 0.1% |
| Current Trade receivables | 5,546 | 36 | 340 | 96 | - | 472 | 8.5% |
| Current Receivables from financing activities | 12,717 | 27 | 131 | 14 | - | 172 | 1.4% |
| Other current receivables | 3,071 | 7 | 16 | 5 | - | 28 | 0.9% |
| Asset-backed financing | 7,697 | - | 143 | 190 | - | 333 | 4.3% |
| Other debt | 12,237 | 33 | 89 | 82 | - | 204 | 1.7% |
| Trade payables | 13,951 | 29 | 942 | 43 | 15 | 1,029 | 7.4% |
| Other payables | 6,217 | 1 | 61 | - | 5 | 67 | 1.1% |
| | | of which: with related parties |
| (in millions of euros) | At December 31, 2006 | Unconsolidated Subsidiaries | Jointly controlled entities | Associated companies | Other related parties | Total related parties | Effect on Total (%) |
| Other investments and non-current financial assets | 561 | 23 | - | 35 | - | 58 | 10.3% |
| Inventories | 8,447 | - | 24 | - | - | 24 | 0.3% |
| Current Trade receivables | 4,944 | 18 | 280 | 78 | 1 | 377 | 7.6% |
| Current Receivables from financing activities | 11,743 | 13 | 174 | 4 | - | 191 | 1.6% |
| Other current receivables | 2,839 | 13 | 129 | 3 | - | 145 | 5.1% |
| Asset-backed financing | 8,344 | - | 124 | 272 | - | 396 | 4.7% |
| Other debt | 11,844 | 40 | 266 | 32 | - | 338 | 2.9% |
| Trade payables | 12,603 | 3 | 947 | 55 | - | 1,005 | 8.0% |
| Other payables | 5,019 | 1 | 44 | - | - | 45 | 0.9% |
Transactions with jointly controlled entities
Significant transactions with jointly controlled entities are set out as follows:
§ Net revenues: transactions consist principally of the sales of vehicles and components, including engines and gearboxes, production systems, and the rendering of services, to the following companies:
| (in millions of euros) | 1st Half 2007 | 1st Half 2006 |
| Tofas-Turk Otomobil Fabrikasi Tofas A.S., for the sale of motor vehicles | 421 | 418 |
| Società Europea Veicoli Leggeri-Sevel S.p.A., for the sale of engines, other components and production systems | 401 | 295 |
| FAFS | 124 | - |
| Iveco Fiat-Oto Melara Società consortile, for the sale of vehicles and special transport | 59 | 50 |
| Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme, for the sale of engines and other components and production systems | 41 | 40 |
| New Holland Trakmak Traktor A.S., for the sale of Agricultural and construction equipment | 2 | - |
| New Holland HFT Japan Inc., for the sale of Agricultural and construction equipment | 6 | 15 |
| Other minor amounts | 40 | 18 |
Total Net revenues from jointly controlled entities | 1,094 | 836 |
§ Cost of sales: transactions have taken place principally with the following companies:
| (in millions of euros) | 1st Half 2007 | 1st Half 2006 |
| Tofas-Turk Otomobil Fabrikasi Tofas A.S., for the purchase of motor vehicles | 454 | 425 |
| Società Europea Veicoli Leggeri-Sevel S.p.A., for the purchase of motor vehicles | 869 | 583 |
| Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme, for the purchase of motor vehicles | 307 | 232 |
| FAFS | 72 | - |
| Other minor amounts | 101 | 151 |
Total Cost of sales for purchases from jointly controlled entities | 1,803 | 1,391 |
§ Current trade receivables: these relate to receivables resulting from the revenues discussed above and, starting from December 2006, those arising from the Group’s trade relationships with FAFS, which mostly regard the sales of vehicles leased out by FAFS in its own turn under operating or financial lease arrangements. In particular:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| FAFS | 160 | 46 |
| Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 79 | 82 |
| Società Europea Veicoli Leggeri-Sevel S.p.A. | 51 | 110 |
| Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme | 5 | 1 |
| Other minor amounts | 45 | 41 |
Total Current trade receivables due from jointly controlled entities | 340 | 280 |
§ Current receivables from financing activities of 131 million euros at June 30, 2007 (174 million euros at December 31, 2006): these relate to receivables resulting from financial activities carried out by the Group with jointly controlled entities (Sevel) and receivables of 47 million euros at June 30, 2007 (143 million euros at December 31, 2006) from jointly controlled financial service companies (FAFS) resulting from the financing of the sales network.
§ Other current receivables of 16 million euros at June 30, 2007 (129 million euros at December 31, 2006): these relate mostly to other receivables of 1 million euros due from FAFS (113 million euros at December 31, 2006). At December 31, 2006, this item included 98 million euros related to the extended term consideration due in connection with the transaction by which the joint venture was established, collected in the first half of 2007.
§ Asset-backed financing of 143 million euros at June 30, 2007 (124 million euros at 31 December 31, 2006): these relate to amounts due to FAFS for sales of receivables which do not qualify as sales under IAS 39.
§ Other financial payables of 89 million euros at June 30, 2007 (266 million euros at December 31, 2006): this item includes 54 million euros at June 30, 2007 (243 million euros at December 31, 2006) of other payables of a financial nature due to FAFS.
§ Trade payables: these relate to payables resulting from the costs discussed above and, starting from December 2006, those arising from the Group’s trade relationships with FAFS. In particular:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 187 | 152 |
| Società Europea Veicoli Leggeri-Sevel S.p.A. | 575 | 655 |
| Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme | 120 | 56 |
| FAFS | 50 | 76 |
| Other minor amounts | 10 | 8 |
Total Trade payables due to jointly controlled entities | 942 | 947 |
Transactions with associated companies
The principal transactions are as follows:
§ Revenues: transactions consist principally of the sales of vehicles and components, including engines and gearboxes, production systems, and the provision of services, to the following companies:
| (in millions of euros) | 1st Half 2007 | 1st Half 2006 |
| Iveco Finance Holdings Ltd. (a subsidiary of the Barclays group), for the sale of industrial vehicles leased out by the associate | 44 | 91 |
| Otoyol Sanayi A.S., for the sale of industrial vehicles | 6 | 37 |
| Other minor amounts | 70 | 91 |
Total Revenues from associated companies | 120 | 219 |
§ Current trade receivables of 96 million euros at June 30, 2007 (78 million euros at December 31, 2006): these relate to receivables resulting from the revenues discussed above.
Transactions with other related parties
The principal transaction in this category relates to an amount of 16 million euros in the first half of 2007 (5 million euros in the first half of 2006) classified in cost of sales; included in this balance is the purchase of goods of 7 million euros in the first half of 2007 (5 million euros in the first half of 2006) for the high range and de-luxe upholstery of the Group's automobiles from Poltrona Frau S.p.A., a company listed on the Milan Stock Exchange in which the chairman of the Board of Directors of Fiat S.p.A., Luca Cordero di Montezemolo, has an indirect investment.
Emoluments to Directors, Statutory Auditors and Key Management
The fees of the Director and Statutory Auditors of Fiat S.p.A. for carrying out their respective functions, including those in other consolidated companies, are as follows
| (in thousands of euros) | | | 1st Half 2007 | 1st Half 2006 |
| Directors | | (a) | 30,633 | 9,872 |
| Statutory auditors | | | 99 | 91 |
Total Emoluments | | | 30,732 | 9,963 |
(a) This amount includes for both the first half of 2007 and the first half of 2006 the notional compensation cost arising from stock options granted to the Chief Executive Officer.
The aggregate expense incurred in the first half of 2007 for the compensation of Executives with strategic responsibilities of the Group amounts to approximately 10 million euros. This amount is inclusive of the following:
§ the amount contributed by the Fiat Group to State and employer defined contribution pension funds of approximately 3 million euros;
§ the amount contributed by the Fiat Group to a special defined benefit plan for certain senior Executives amounting to 0.1 million euros.
These costs consist of compensation for Executives with strategic responsibilities who were already working for the Group in 2006 and continue with the Group at present.
32. Non-recurring transactions
Pursuant to the Consob Communication No. DEM/6064293 of July 28, 2006, there were not significant non-recurring operations carried out by the Fiat Group in the first half of 2007.
For disclosure purposes it is recalled that the Group has entered certain important targeted industrial and/or sales agreements during the period (in some cases these are still at the stage of the “Letter of intent”) under which manufacturing and/or commercial joint ventures will be set up in foreign countries (including India and Russia), development and growth will be agreed with other operators in the automotive business and vehicles will be constructed on behalf of other manufacturers and/or the manufacturing know how will be sold. By June 30, 2007 these agreements, which have by now become part of the Group’s ordinary operations, had not yet had a significant effect on the amounts stated in the consolidated financial statements.
33. Transactions resulting from unusual and/or abnormal operations
Pursuant to the Consob Communication No. DEM/6064293 of July 28, 2006, the Group has not taken part in the first half of 2007 in any unusual and/or abnormal operations as defined in that Communication (reference should be made to the section Format of the financial statements for a definition of these).
34. Translation of financial statements denominated in a currency other than the euros
The principal exchange rates used to translate into euros the financial statements prepared in currencies other than the euros were as follows:
| | 1st Half 2007 | | At December 31, 2006 | | 1st Half 2006 |
| | Average | At June 30 | | | | Average | At June 30 |
| US dollar | 1.329 | 1.351 | | 1.317 | | 1.230 | 1.271 |
| Pound sterling | 0.675 | 0.674 | | 0.672 | | 0.687 | 0.692 |
| Swiss franc | 1.632 | 1.655 | | 1.607 | | 1.561 | 1.567 |
| Polish zloty | 3.844 | 3.768 | | 3.831 | | 3.890 | 4.055 |
| Brazilian real | 2.717 | 2.601 | | 2.815 | | 2.697 | 2.751 |
| Argentine peso | 4.134 | 4.190 | | 4.066 | | 3.786 | 3.944 |
During the first half of 2007, the Group had an average number of employees of 175,737, compared to an average of 173,891 during the first half of 2006.
Significant Events Occurring since the End of the Period and Business Outlook
On July 4, 2007, Fiat Group Automobiles launched the Fiat 500, an event that aroused international interest and occurred exactly 50 years after the introduction of its historic predecessor. Following its launch in the Italian and French markets, orders received by dealers total 57 thousand units, and most of the 2007 production is sold out.
Information on the business outlook for the balance of the year is provided in the Overview of this Report.
Appendix
THE COMPANIES OF THE FIAT GROUP
at June 30, 2007
As required by Consob Resolution no. 11971 of May 14, 1999 as amended (Article 126 of the Regulations), a complete list of the companies and significant investments of the Group is provided below.
The companies on this list have been classified according to percentage of ownership, method of consolidation and type of business.
The information provided for each company includes: name, registered office, country and capital stock stated in the original currency. The percentage of Group consolidation and the percentage held by Fiat S.p.A. or its subsidiaries are also shown.
A separate column shows the percentage held of the voting rights at the ordinary stockholders meeting, when this figure differs from the percentage interest held in the company.
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Controlling company | | | | | | | | |
Parent company | | | | | | | | |
| Fiat S.p.A. | Turin | Italy | 6,377,262,975 | EUR | - | - | - | - |
Subsidiaries consolidated on a line-by-line basis | | | | | | | |
Automobiles | | | | | | | | |
| Fiat Group Automobiles S.p.A. | Turin | Italy | 745,031,979 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| ABARTH & C. S.p.A. | Chivasso | Italy | 1,500,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Alfa Romeo Automobiles S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Banco Fidis de Investimento SA | Betim | Brazil | 116,235,465 | BRL | 100.00 | Fidis S.p.A. | 98.970 | |
| | | | | | | Fiat Automoveis S.A. - FIASA | 1.030 | |
| Clickar Assistance S.R.L. | Turin | Italy | 335.632 | EUR | 100.00 | Fidis S.p.A. | 100.000 | |
| Customer Services Centre S.r.l. | Turin | Italy | 2,500,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Easy Drive S.r.l. | Turin | Italy | 10,400 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 99.000 | |
| | | | | | | Fiat Center Italia S.p.A. | 1.000 | |
| Fiat Auto Argentina S.A. | Buenos Aires | Argentina | 476,464,366 | ARS | 100.00 | Fiat Group Automobiles S.p.A. | 72.495 | |
| | | | | | | Fiat Automoveis S.A. - FIASA | 27.505 | |
| Fiat Auto Dealer Financing SA | Brussels | Belgium | 62,000 | EUR | 99.84 | Fiat Group Automobiles Belgium S.A. | 99.839 | |
| Fiat Auto Hellas S.A. | Argyroupoli | Greece | 62,033,499 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Auto (Ireland) Ltd. | Dublin | Ireland | 5,078,952 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Auto Japan K.K. | Minatu-Ku. Tokyo | Japan | 420,000,000 | JPY | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Auto Maroc S.A. | Casablanca | Morocco | 1,000,000 | MAD | 99.95 | Fiat Group Automobiles S.p.A. | 99.950 | |
| Fiat Auto Poland S.A. | Bielsko-Biala | Poland | 660,334,600 | PLN | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Auto South Africa (Proprietary) Ltd | Sunninghill | South Africa | 640 | ZAR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Auto Var S.r.l. | Turin | Italy | 7,370,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Automobil AG | Heilbronn | Germany | 82,650,000 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 99.000 | |
| | | | | | | Fiat Group Automobiles Switzerland S.A. | 1.000 | |
| Fiat Automobil GmbH | Vienna | Austria | 37,000 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Automobil Vertriebs GmbH | Frankfurt | Germany | 8,700,000 | EUR | 100.00 | Fiat Automobil AG | 100.000 | |
| Fiat Automobiles S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Automoveis S.A. - FIASA | Betim | Brazil | 1,233,506,013 | BRL | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Center Italia S.p.A. | Turin | Italy | 2,000,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Center (Suisse) S.A. | Meyrin | Switzerland | 13,000,000 | CHF | 100.00 | Fiat Group Automobiles Switzerland S.A. | 100.000 | |
| Fiat CR Spol. S.R.O. | Prague | Czech Republic | 1,000,000 | CZK | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Credito Compania Financiera S.A. | Buenos Aires | Argentina | 142,630,748 | ARS | 100.00 | Fidis S.p.A. | 100.000 | |
| Fiat Finance Netherlands B.V. | Amsterdam | Netherlands | 690,000,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat France | Trappes | France | 235,480,520 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Group Automobiles Belgium S.A. | Brussels | Belgium | 18,600,000 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 99.998 | |
| | | | | | | Fiat Group Automobiles Switzerland S.A. | 0.002 | |
| Fiat Group Automobiles Denmark A/S | Glostrup | Denmark | 55,000,000 | DKK | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Group Automobiles Netherlands B.V. | Lijnden | Netherlands | 5,672,250 | EUR | 100.00 | Fiat Netherlands Holding N.V. | 100.000 | |
| Fiat Group Automobiles Portugal, S.A. | Alges | Portugal | 1,000,000 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| Fiat Group Automobiles Spain S.A. | Alcalá De Henares | Spain | 8,079,280 | EUR | 100.00 | Fiat Finance Netherlands B.V. | 99.998 | |
| | | | | | | Fiat Group Automobiles Switzerland S.A. | 0.002 | |
| Fiat Group Automobiles Switzerland S.A. | Schlieren | Switzerland | 21,400,000 | CHF | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Group Automobiles UK Ltd | Slough Berkshire | United Kingdom | 44,600,000 | GBP | 100.00 | Fiat Finance Netherlands B.V. | 100.000 | |
| (*) Fiat India Automobiles Private Limited | Mumbai | India | 19,620,126,500 | INR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| (*) Fiat India Private Ltd. | Mumbai | India | 8,363,617,700 | INR | 100.00 | Fiat India Automobiles Private Limited | 52.196 | 52.628 |
| | | | | | | Fiat Group Automobiles S.p.A. | 47.804 | 47.372 |
| Fiat Light Commercial Vehicles S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Magyarorszag Kereskedelmi KFT. | Budapest | Hungary | 150,000,000 | HUF | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Purchasing Italia S.r.l. | Turin | Italy | 600,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| FIAT Purchasing Poland Sp. z o.o. | Bielsko-Biala | Poland | 300,000 | PLN | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Real Estate Germany GmbH | Frankfurt | Germany | 25,000 | EUR | 100.00 | Fiat Automobil Vertriebs GmbH | 100.000 | |
| Fiat SR Spol. SR.O. | Bratislava | Slovack Republic | 1,000,000 | SKK | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Fiat Teamsys GmbH | Heilbronn | Germany | 500,000 | EUR | 100.00 | Fiat Automobil AG | 100.000 | |
| Fiat Versicherungsdienst GmbH | Heilbronn | Germany | 26,000 | EUR | 100.00 | Fiat Automobil AG | 51.000 | |
| | | | | | | Rimaco S.A. | 49,000 | |
| Fidis Hungary Ltd. under liquidation | Budapest | Hungary | 13,000 | EUR | 100.00 | Fidis S.p.A. | 100.00 | |
| Fidis S.p.A. | Turin | Italy | 250,000,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 99.000 | |
| | | | | | | Nuove Iniziative Finanziarie 2 S.r.l. | 0.100 | |
| i-FAST Automotive Logistics S.r.l. | Turin | Italy | 500,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| International Metropolitan Automotive Promotion (France) S.A. | Trappes | France | 2,977,680 | EUR | 100.00 | Fiat France | 99.997 | |
| Italian Automotive Center S.A. | Brussels | Belgium | 8,500,000 | EUR | 100.00 | Fiat Group Automobiles Belgium S.A. | 99.988 | |
| | | | | | | Nuove Iniziative Finanziarie 2 S.r.l. | 0.012 | |
| Italian Motor Village S.A. | Alges | Portugal | 50,000 | EUR | 100.00 | Fiat Group Automobiles Portugal, S.A. | 100.000 | |
| Italian Motor Village, S.L. | Alcalá De Henares | Spain | 1,454,420 | EUR | 100.00 | Fiat Group Automobiles Spain S.A. | 100.000 | |
| Lancia Automobiles S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Sata-Società Automobilistica Tecnologie Avanzate S.p.A. | Melfi | Italy | 276,640,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| SCDR Automotive Limited | Basildon | United Kingdom | 50,000 | GBP | 100.00 | Società di Commercializzazione e Distribuzione Ricambi S.p.A. | 100.000 | |
| SCDR (Ireland) Limited | Dublin | Ireland | 70,000 | EUR | 100.00 | Società di Commercializzazione e Distribuzione Ricambi S.p.A. | 100.000 | |
| SCDR (Switzerland) S.A. | Schlieren | Switzerland | 100,000 | CHF | 100.00 | Società di Commercializzazione e Distribuzione Ricambi S.p.A. | 100.000 | |
| Società di Commercializzazione e Distribuzione Ricambi S.p.A. | Turin | Italy | 100,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Targa Rent S.r.l. | Turin | Italy | 310,000 | EUR | 100.00 | Fidis S.p.A. | 100.000 | |
| Targasys Espana S.L. | Alcalá De Henares | Spain | 5,000 | EUR | 100.00 | Fiat Group Automobiles Spain S.A. | 100.000 | |
Ferrari | | | | | | | | |
| Ferrari S.p.A. | Modena | Italy | 20,260,000 | EUR | 85.00 | Fiat S.p.A. | 85.000 | |
| Charles Pozzi S.a.r.l. | Levallois-Perret | France | 959.519 | EUR | 85.00 | Ferrari West Europe S.A. | 100.000 | |
| Ferrari Deutschland GmbH | Wiesbaden | Germany | 1,000,000 | EUR | 85.00 | Ferrari International S.A. | 100.000 | |
| Ferrari Financial Services AG | Munich | Germany | 1,777,600 | EUR | 76.50 | Ferrari Financial Services S.p.A. | 100.000 | |
| Ferrari Financial Services, Inc. | Wilmington | U.S.A. | 1,000 | USD | 76.50 | Ferrari Financial Services S.p.A. | 100.000 | |
| Ferrari Financial Services S.p.A. | Modena | Italy | 5,100,000 | EUR | 76.50 | Ferrari S.p.A. | 90.000 | |
| Ferrari GB Limited | Slough Berkshire | United Kingdom | 50,000 | GBP | 85.00 | Ferrari International S.A. | 100.000 | |
| Ferrari GE.D. S.p.A. | Modena | Italy | 11,570,000 | EUR | 85.00 | Ferrari S.p.A. | 100.000 | |
| Ferrari International S.A. | Luxembourg | Luxembourg | 13,112,000 | EUR | 85.00 | Ferrari S.p.A. | 99.999 | |
| | | | | | | Ferrari N.America Inc. | 0.001 | |
| | | | | | | | | |
| (*) Assets held for sale. | | | | | | | | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Ferrari N.America Inc. | Englewood Cliffs | U.S.A. | 200,000 | USD | 85.00 | Ferrari S.p.A. | 100.000 | |
| Ferrari San Francisco Inc. | Mill Valley | U.S.A. | 100,000 | USD | 85.00 | Ferrari N.America Inc. | 100.000 | |
| Ferrari (Suisse) SA | Nyon | Switzerland | 1,000,000 | CHF | 85.00 | Ferrari International S.A. | 100.000 | |
| Ferrari West Europe S.A. | Levallois-Perret | France | 280,920 | EUR | 85.00 | Société Française de Participations Ferrari - S.F.P.F. S.A.R.L. | 100.000 | |
| GSA-Gestions Sportives Automobiles S.A. | Meyrin | Switzerland | 1,000,000 | CHF | 85.00 | Ferrari International S.A. | 100.000 | |
| Pozzi Rent Snc | Lyon | France | 15.256 | EUR | 85.00 | Ferrari West Europe S.A. | 100.000 | |
| Société Française de Participations Ferrari - S.F.P.F. S.A.R.L. | Levallois-Perret | France | 6,000,000 | EUR | 85.00 | Ferrari International S.A. | 100.000 | |
| 410 Park Display Inc. | New York | U.S.A. | 100 | USD | 85.00 | Ferrari N.America Inc. | 100.000 | |
Maserati | | | | | | | | |
| Maserati S.p.A. | Modena | Italy | 40,000,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Maserati Deutschland GmbH | Wiesbaden | Germany | 500,000 | EUR | 100.00 | Maserati S.p.A. | 100.000 | |
| Maserati GB Limited | Slough Berkshire | United Kingdom | 20,000 | GBP | 100.00 | Maserati S.p.A. | 100.000 | |
| Maserati North America Inc. | Englewood Cliffs | U.S.A. | 1,000 | USD | 100.00 | Maserati S.p.A. | 100.000 | |
| Maserati (Suisse) S.A. | Nyon | Switzerland | 250,000 | CHF | 100.00 | Maserati S.p.A. | 100.000 | |
| Maserati West Europe societé par actions simplifiée | Paris | France | 37,000 | EUR | 100.00 | Maserati S.p.A. | 100.000 | |
Agricultural and Construction Equipment | | | | | | | |
| CNH Global N.V. | Amsterdam | Netherlands | 533,257,907 | EUR | 89.45 | Fiat Netherlands Holding N.V. | 89.394 | 89.452 |
| | | | | | | CNH Global N.V. | 0.065 | 0.000 |
| Banco CNH Capital S.A. | Curitiba | Brazil | 252,285,242 | BRL | 89.45 | CNH Global N.V. | 98.760 | |
| | | | | | | CNH Latin America Ltda. | 1.240 | |
| Bli Group Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Blue Leaf I.P. Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | Bli Group Inc. | 100.000 | |
| Case Brazil Holdings Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case Canada Receivables, Inc. | Calgary | Canada | 1 | CAD | 89.45 | CNH Capital America LLC | 100.000 | |
| Case Construction Machinery (Shanghai) Co., Ltd | Shanghai | People's Rep.of China | 5,000,000 | USD | 89.45 | KCNH Construction Investments | 100.000 | |
| Case Credit Holdings Limited | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| Case Equipment Holdings Limited | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case Equipment International Corporation | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case Europe S.a.r.l. | Le Plessis-Belleville | France | 7.622 | EUR | 89.45 | CNH America LLC | 100.000 | |
| Case Harvesting Systems GmbH | Berlin | Germany | 281.211 | EUR | 89.45 | CNH America LLC | 100.000 | |
| CASE IH Machinery Trading (Shanghai) Co. Ltd. | Shanghai | People's Rep.of China | 2,250,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case India Limited | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case International Marketing Inc. | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case LBX Holdings Inc. | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case New Holland Inc. | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH Global N.V. | 100.000 | |
| Case United Kingdom Limited | Basildon | United Kingdom | 3,763,618 | GBP | 89.45 | CNH America LLC | 100.000 | |
| CNH America LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | Case New Holland Inc. | 100.000 | |
| CNH Argentina S.A. | Buenos Aires | Argentina | 29,611,105 | ARS | 89.45 | New Holland Holdings Argentina S.A. | 80.654 | |
| | | | | | | CNH Latin America Ltda. | 19.346 | |
| CNH Asian Holding Limited N.V. | Zedelgem | Belgium | 34,594,401 | EUR | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Australia Pty Limited | St. Marys | Australia | 306,785,439 | AUD | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Baumaschinen GmbH | Berlin | Germany | 61,355,030 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Belgium N.V. | Zedelgem | Belgium | 27,268,300 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Canada, Ltd. | Toronto | Canada | 28,000,100 | CAD | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Capital America LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital LLC | 100.000 | |
| CNH Capital Australia Pty Limited | St. Marys | Australia | 83,248,874 | AUD | 89.45 | CNH Australia Pty Limited | 100.000 | |
| CNH Capital Automotive Receivables LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| CNH Capital Benelux | Zedelgem | Belgium | 6,350,000 | EUR | 89.45 | CNH Global N.V. | 98.999 | |
| | | | | | | CNH Capital U.K. Ltd | 1.001 | |
| CNH Capital Canada Ltd. | Calgary | Canada | 1 | CAD | 89.45 | Case Credit Holdings Limited | 99.500 | |
| | | | | | | CNH Canada, Ltd. | 0.500 | |
| CNH Capital (Europe) plc | Dublin | Ireland | 38,100 | EUR | 89.45 | CNH Capital plc | 99.984 | |
| | | | | | | CNH Europe Holding S.A. | 0.003 | |
| | | | | | | CNH Financial Services A/S | 0.003 | |
| | | | | | | CNH Global N.V. | 0.003 | |
| | | | | | | CNH Trade N.V. | 0.003 | |
| | | | | | | CNH Financial Services S.A.S. | 0.002 | |
| | | | | | | CNH Financial Services S.r.l. | 0.002 | |
| CNH Capital Insurance Agency Inc. | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| CNH Capital LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH America LLC | 100.000 | |
| CNH Capital plc | Dublin | Ireland | 6,386,791 | EUR | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Capital RACES LLC | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| CNH Capital Receivables LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| CNH Capital U.K. Ltd | Basildon | United Kingdom | 10,000,001 | GBP | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Componentes, S.A. de C.V. | São Pedro | Mexico | 135,634,842 | MXN | 89.45 | CNH America LLC | 100.000 | |
| CNH Danmark A/S | Hvidovre | Denmark | 12,000,000 | DKK | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Deutschland GmbH | Heilbronn | Germany | 18,457,650 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Engine Corporation | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| CNH Europe Holding S.A. | Luxembourg | Luxembourg | 300,000,000 | USD | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Financial Services A/S | Hvidovre | Denmark | 500,000 | DKK | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Financial Services GmbH | Heilbronn | Germany | 1,151,000 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Financial Services S.A.S. | Puteaux | France | 28,860,625 | EUR | 89.45 | CNH Global N.V. | 98.040 | |
| | | | | | | CNH Capital Benelux | 1.960 | |
| CNH Financial Services S.r.l. | Modena | Italy | 10,400 | EUR | 89.45 | CNH Capital plc | 100.000 | |
| CNH France S.A. | Morigny-Champigny | France | 138,813,150 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH International S.A. | Paradiso | Switzerland | 100,000 | CHF | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Italia s.p.a. | Modena | Italy | 15,600,000 | EUR | 89.45 | CNH Osterreich GmbH | 75.000 | |
| | | | | | | CNH Global N.V. | 25.000 | |
| CNH Latin America Ltda. | Contagem | Brazil | 355,332,946 | BRL | 89.45 | CNH Global N.V. | 85.658 | |
| | | | | | | Case Brazil Holdings Inc. | 12.557 | |
| | | | | | | Case Equipment International Corporation | 1.785 | |
| CNH Maquinaria Spain S.A. | Coslada | Spain | 21,000,000 | EUR | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| CNH Osterreich GmbH | St. Valentin | Austria | 2,000,000 | EUR | 89.45 | CNH Global N.V. | 100.000 | |
| CNH Polska Sp. z o.o. | Plock | Poland | 162,591,660 | PLN | 89.45 | CNH Belgium N.V. | 99.995 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.005 | |
| CNH Portugal-Comercio de Tractores e Maquinas Agricolas Ltda | Carnaxide | Portugal | 498.798 | EUR | 89.45 | CNH Europe Holding S.A. | 99.980 | |
| | | | | | | CNH Italia s.p.a. | 0.020 | |
| CNH Receivables LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| CNH Serviços Técnicos e Desenvolvimento de Negocios Ltda | Curitiba | Brazil | 1,000,000 | BRL | 89.45 | Banco CNH Capital S.A. | 100.000 | |
| CNH Trade N.V. | Amsterdam | Netherlands | 50,000 | EUR | 89.45 | CNH Global N.V. | 100.000 | |
| CNH U.K. Limited | Basildon | United Kingdom | 91,262,275 | GBP | 89.45 | New Holland Holding Limited | 100.000 | |
| CNH Wholesale Receivables LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital America LLC | 100.000 | |
| Fiatallis North America LLC | Wilmington | U.S.A. | 32 | USD | 89.45 | CNH America LLC | 100.000 | |
| Flexi-Coil (U.K.) Limited | Basildon | United Kingdom | 3,291,776 | GBP | 89.45 | CNH Canada, Ltd. | 100.000 | |
| Harbin New Holland Tractors Co., Ltd. | Harbin | People's Rep.of China | 2,859,091 | USD | 89.45 | CNH Asian Holding Limited N.V. | 99.000 | |
| | | | | | | CNH Europe Holding S.A. | 1.000 | |
| HFI Holdings Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| JV Uzcaseagroleasing LLC | Tashkent | Uzbekistan | 0 | USD | 45.62 | Case Credit Holdings Limited | 51.000 | |
| JV UzCaseMash LLC | Tashkent | Uzbekistan | �� 0 | USD | 53.67 | Case Equipment Holdings Limited | 60.000 | |
| JV UzCaseService LLC | Tashkent | Uzbekistan | 0 | USD | 45.62 | Case Equipment Holdings Limited | 51.000 | |
| JV UzCaseTractor LLC | Tashkent | Uzbekistan | 0 | USD | 45.62 | Case Equipment Holdings Limited | 51.000 | |
| KCNH Construction Investments | Port Louis | Mauritius | 2 | USD | 89.45 | CNH Italia s.p.a. | 100.000 | |
| Kobelco Construction Machinery America LLC | Wilmington | U.S.A. | 0 | USD | 58.14 | New Holland Excavator Holdings LLC | 65.000 | |
| MBA AG | Bassersdorf | Switzerland | 4,000,000 | CHF | 89.45 | CNH Global N.V. | 100.000 | |
| New Holland Australia Pty Ltd | St. Marys | Australia | 1 | AUD | 89.45 | CNH Australia Pty Limited | 100.000 | |
| New Holland Credit Australia Pty Limited | St. Marys | Australia | 0 | AUD | 89.45 | CNH Capital Australia Pty Limited | 100.000 | |
| New Holland Credit Company, LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH Capital LLC | 100.000 | |
| New Holland Excavator Holdings LLC | Wilmington | U.S.A. | 0 | USD | 89.45 | CNH America LLC | 100.000 | |
| New Holland Holding Limited | London | United Kingdom | 165,000,000 | GBP | 89.45 | CNH Europe Holding S.A. | 100.000 | |
| New Holland Holdings Argentina S.A. | Buenos Aires | Argentina | 23,555,415 | ARS | 89.45 | CNH Latin America Ltda. | 100.000 | |
| New Holland Kobelco Construction Machinery S.p.A. | San Mauro Torinese | Italy | 80,025,291 | EUR | 66.75 | CNH Italia s.p.a. | 74.625 | |
| New Holland Ltd | Basildon | United Kingdom | 1,000,000 | GBP | 89.45 | CNH Global N.V. | 100.000 | |
| New Holland Tractor Ltd. N.V. | Antwerp | Belgium | 9,631,500 | EUR | 89.45 | New Holland Holding Limited | 100.000 | |
| New Holland Tractors (India) Private Ltd | New Delhi | India | 1,949,835,804 | INR | 89.45 | CNH Asian Holding Limited N.V. | 100.000 | |
| O & K - Hilfe GmbH | Berlin | Germany | 25.565 | EUR | 89.45 | CNH Baumaschinen GmbH | 100.000 | |
| Pryor Foundry Inc. | Oklahoma City | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Receivables Credit II Corporation | Calgary | Canada | 1 | CAD | 89.45 | CNH Capital America LLC | 100.000 | |
| Shanghai New Holland Agricultural Machinery Corporation Limited | Shanghai | People's Rep.of China | 35,000,000 | USD | 53.67 | CNH Asian Holding Limited N.V. | 60.000 | |
Powertrain Technologies | | | | | | | | |
| Fiat Powertrain Technologies SpA | Turin | Italy | 750,000,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| FMA - Fabbrica Motori Automobilistici S.r.l. | Pratola Serra | Italy | 150,000,000 | EUR | 100.00 | Fiat Powertrain Technologies SpA | 100.000 | |
| FPT RACING S.r.l. | Cusago | Italy | 100,000 | EUR | 100.00 | Fiat Powertrain Technologies SpA | 100.000 | |
| Powertrain Mekanik Sanayi ve Ticaret Limited Sirketi | Demirtas-Bursa | Turkey | 75,329,600 | TRY | 100.00 | Fiat Auto Holdings B.V. in liquidatie | 100.000 | |
| SAIC Fiat Powertrain Hongyan Co. Ltd. | Chongqing | People's Rep.of China | 580,000,000 | CNY | 60.00 | SAIC IVECO Commercial Vehicle Investment Company Limited | 60.000 | |
| | | | | | | Fiat Powertrain Technologies SpA | 30.000 | |
Trucks and Commercial Vehicles | | | | | | | | |
| Iveco S.p.A. | Turin | Italy | 819,519,717 | EUR | 100.00 | Fiat S.p.A. | 60.563 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 39.437 | |
| Afin Bohemia | Prague | Czech Republic | 1,000,000 | CZK | 100.00 | Afin Leasing AG | 100.000 | |
| Afin Broker de Asigurare - Reasigurare S.r.l. | Bucharest | Romenia | 25,000 | RON | 100.00 | s.c. Afin Leasing Ifn s.a. | 100.000 | |
| Afin Bulgaria EAD | Sofia | Bulgaria | 200,000 | BGN | 100.00 | Afin Leasing AG | 100.000 | |
| Afin Hungary Kereskedelmi KFT. | Budapest | Hungary | 24,000,000 | HUF | 100.00 | Afin Leasing AG | 100.000 | |
| Afin Leasing AG | Vienna | Austria | 1,500,000 | EUR | 100.00 | Iveco International Trade Finance S.A. | 100.000 | |
| Afin Slovakia S.R.O. | Bratislava | Slovack Republic | 1,200,000 | SKK | 100.00 | Afin Leasing AG | 100.000 | |
| Afin Trade Bulgaria Eood | Sofia | Bulgaria | 5,000 | BGN | 100.00 | Afin Bulgaria EAD | 100.000 | |
| Afin Trade Vostok OOO | Moscow | Russia | 345,000 | RUB | 100.00 | Afin Leasing AG | 100.000 | |
| Amce-Automotive Manufacturing Co.Ethiopia | Addis Ababa | Ethiopia | 3,000,000 | ETB | 70.00 | Iveco S.p.A. | 70.000 | |
| AS Afin Baltica | Tallin | Estonia | 800,000 | EEK | 100.00 | Afin Leasing AG | 100.000 | |
| Astra Veicoli Industriali S.p.A. | Piacenza | Italy | 10,400,000 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Brandschutztechnik Gorlitz GmbH | Gürlitz | Germany | 511.292 | EUR | 88.00 | Iveco Magirus Brandschutztechnik GmbH | 88.000 | |
| C.A.M.I.V.A. Constructeurs Associés de Matériels d'Incendie, Voirie, Aviation S.A. | Saint-Alban-Leysse | France | 1,870,169 | EUR | 99.96 | Iveco Magirus Fire Fighting GmbH | 99.961 | |
| Componentes Mecanicos S.A. | Barcelona | Spain | 37,405,038 | EUR | 59.39 | Iveco España S.L. | 59.387 | |
| Effe Grundbesitz GmbH | Ulm | Germany | 10,225,838 | EUR | 100.00 | Iveco Investitions GmbH | 90.000 | |
| | | | | | | Iveco S.p.A. | 10.000 | |
| Elettronica Trasporti Commerciali S.r.l. (Eltrac S.r.l.) | Turin | Italy | 109,200 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| European Engine Alliance S.c.r.l. | Turin | Italy | 32,044,797 | EUR | 63.15 | CNH Global N.V. | 33.333 | |
| | | | | | | Iveco S.p.A. | 33.333 | |
| FPT - Powertrain Technologies France S.A. | Garchizy | France | 73,444,960 | EUR | 100.00 | Iveco France | 97.200 | |
| | | | | | | Iveco Participations S.A. | 2.800 | |
| Heuliez Bus S.A. | Rorthais | France | 9,000,000 | EUR | 100.00 | Société Charolaise de Participations S.A. | 100.000 | |
| IAV-Industrie-Anlagen-Verpachtung GmbH | Ulm | Germany | 25.565 | EUR | 100.00 | Iveco Investitions GmbH | 95.000 | |
| | | | | | | Iveco S.p.A. | 5.000 | |
| Ikarus Egyedi Autobusz GY | Budapest | Hungary | 350,000,000 | HUF | 68.15 | Iveco España S.L. | 68.146 | |
| Industrial Vehicles Center Hainaut S.A. | Charleroi | Belgium | 600,000 | EUR | 100.00 | S.A. Iveco Belgium N.V. | 95.000 | |
| | | | | | | Iveco Nederland B.V. | 5.000 | |
| Irisbus Australia Pty. Ltd. | Dandenong | Australia | 1,500,000 | AUD | 100.00 | Iveco España S.L. | 100.000 | |
| Irisbus Benelux Ltd. | Leudelange | Luxembourg | 594,000 | EUR | 100.00 | Iveco France | 99.983 | |
| | | | | | | Société Charolaise de Participations S.A. | 0.017 | |
| Irisbus Deutschland GmbH | Mainz-Mombach | Germany | 8,800,000 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Irisbus Italia S.p.A. | Turin | Italy | 27,557,047 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Irisbus (U.K.) Ltd | Watford | United Kingdom | 200,000 | GBP | 100.00 | Iveco España S.L. | 100.000 | |
| IVC Brabant N.V. S.A. | Groot | Belgium | 800,000 | EUR | 100.00 | S.A. Iveco Belgium N.V. | 75.000 | |
| | | | | | | Iveco Nederland B.V. | 25.000 | |
| Iveco Argentina S.A. | Cordoba | Argentina | 130,237,793 | ARS | 100.00 | Iveco España S.L. | 99.000 | |
| | | | | | | Astra Veicoli Industriali S.p.A. | 1.000 | |
| Iveco Austria GmbH | Vienna | Austria | 6,178,000 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Bayern GmbH | Nuremberg | Germany | 742,000 | EUR | 100.00 | Iveco Magirus AG | 100.000 | |
| Iveco Contract Services Limited | Watford | United Kingdom | 17,000,000 | GBP | 100.00 | Iveco Partecipazioni Finanziarie S.r.l. | 100.000 | |
| Iveco Czech Republic A.S. | Vysoke Myto | Czech Republic | 1,065,559,000 | CZK | 97.98 | Iveco France | 97.978 | |
| Iveco Danmark A/S | Glostrup | Denmark | 501,000 | DKK | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco España S.L. | Madrid | Spain | 121,612,116 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Est Sas | Haunconcourt | France | 305,600 | EUR | 100.00 | Iveco France | 100.000 | |
| Iveco France | Vénissieux | France | 92,856,130 | EUR | 100.00 | Iveco España S.L. | 50.326 | |
| | | | | | | Iveco S.p.A. | 49.674 | |
| Iveco Holdings Limited | Watford | United Kingdom | 47,000,000 | GBP | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco International Trade Finance S.A. | Lugano | Switzerland | 30,800,000 | CHF | 100.00 | Iveco Partecipazioni Finanziarie S.r.l. | 100.000 | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Iveco Investitions GmbH | Ulm | Germany | 2,556,459 | EUR | 100.00 | Iveco Magirus AG | 99.020 | |
| | | | | | | Iveco S.p.A. | 0.980 | |
| Iveco Latin America Ltda | Vila da Serra | Brazil | 684,700,000 | BRL | 100.00 | Iveco España S.L. | 99.999 | |
| | | | | | | Astra Veicoli Industriali S.p.A. | 0.001 | |
| Iveco Limited | Watford | United Kingdom | 117,000,000 | GBP | 100.00 | Iveco Holdings Limited | 100.000 | |
| Iveco L.V.I. S.a.s. | Saint-Priest-En-Jarez | France | 503,250 | EUR | 100.00 | Iveco France | 100.000 | |
| Iveco Magirus AG | Ulm | Germany | 250,000,000 | EUR | 100.00 | Iveco S.p.A. | 53.660 | |
| | | | | | | Fiat Netherlands Holding N.V. | 46.340 | |
| Iveco Magirus Brandschutztechnik GmbH | Ulm | Germany | 6,493,407 | EUR | 100.00 | Iveco Magirus Fire Fighting GmbH | 99.764 | |
| | | | | | | Iveco S.p.A. | 0.236 | |
| Iveco Magirus Fire Fighting GmbH | Weisweil | Germany | 30,776,857 | EUR | 100.00 | Iveco Magirus AG | 90.032 | |
| | | | | | | Iveco S.p.A. | 9.968 | |
| Iveco Mezzi Speciali S.p.A. | Brescia | Italy | 13,120,000 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Motorenforschung AG | Arbon | Switzerland | 4,600,000 | CHF | 100.00 | Iveco S.p.A. | 60.000 | |
| | | | | | | Iveco France | 40.000 | |
| Iveco Motors of North America Inc. | Wilmington | U.S.A. | 1 | USD | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Nederland B.V. | Breda | Netherlands | 4,537,802 | EUR | 100.00 | Fiat Netherlands Holding N.V. | 100.000 | |
| Iveco Nord Nutzfahrzeuge GmbH | Hamburg | Germany | 818,500 | EUR | 100.00 | Iveco Magirus AG | 100.000 | |
| Iveco Nord-Ost Nutzfahrzeuge GmbH | Berlin | Germany | 2,120,000 | EUR | 100.00 | Iveco Magirus AG | 100.000 | |
| Iveco Norge A.S. | Voyenenga | Norway | 18,600,000 | NOK | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Otomotiv Ticaret A.S. | Samandira-Kartal/Istanbul | Turkey | 15,060,046 | TRY | 100.00 | Iveco S.p.A. | 99.995 | |
| Iveco Partecipazioni Finanziarie S.r.l. | Turin | Italy | 50,000,000 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Participations S.A. | Trappes | France | 10,896,100 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco Pension Trustee Ltd | Watford | United Kingdom | 2 | GBP | 100.00 | Iveco Holdings Limited | 50.000 | |
| | | | | | | Iveco Limited | 50.000 | |
| Iveco Poland Ltd. | Warsaw | Poland | 46,974,500 | PLN | 100.00 | Iveco S.p.A. | 99.989 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.011 | |
| Iveco Portugal-Comercio de Veiculos Industriais S.A. | Vila Franca de Xira | Portugal | 15,962,000 | EUR | 100.00 | Iveco S.p.A. | 99,997 | |
| | | | | | | Astra Veicoli Industriali S.p.A. | 0.001 | |
| Iveco (Schweiz) AG | Kloten | Switzerland | 9,000,000 | CHF | 100.00 | Iveco Nederland B.V. | 100,000 | |
| Iveco Slovakia, r.s.o. | Bratislava | Slovack Republic | 200,000 | SKK | 97.98 | Iveco Czech Republic A.S. | 100,000 | |
| Iveco South Africa (Pty) Ltd. | Wadewille | South Africa | 15,000,750 | ZAR | 100.00 | Iveco S.p.A. | 100,000 | |
| Iveco Sud-West Nutzfahrzeuge GmbH | Mannheim-Neckarau | Germany | 1,533,900 | EUR | 100.00 | Iveco Magirus AG | 100,000 | |
| Iveco Sweden A.B. | Arlov | Sweden | 600,000 | SEK | 100.00 | Iveco S.p.A. | 100,000 | |
| Iveco Trucks Australia Limited | Dandenong | Australia | 47,492,260 | AUD | 100.00 | Iveco S.p.A. | 100,000 | |
| Iveco Ukraine Inc. | Kiev | Ukraine | 55,961,760 | UAH | 99.97 | Iveco S.p.A. | 99.968 | |
| Iveco Venezuela C.A. | La Victoria | Venezuela | 2,495,691,000 | VEB | 100.00 | Iveco S.p.A. | 100.000 | |
| Iveco West Nutzfahrzeuge GmbH | Cologne | Germany | 1,662,000 | EUR | 100.00 | Iveco Magirus AG | 100.000 | |
| Lohr-Magirus Feuerwehrtechnik GmbH | Kainbach | Austria | 1,271,775 | EUR | 95.00 | Iveco Magirus Brandschutztechnik GmbH | 95.000 | |
| Mediterranea de Camiones S.L. | Valencia | Spain | 48,080 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Officine Brennero S.p.A. | Trento | Italy | 7,120,000 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| OOO Afin Leasing Vostok LLC | Moscow | Russia | 50,000,000 | RUB | 100.00 | Afin Leasing AG | 100.000 | |
| S.A. Iveco Belgium N.V. | Groot | Belgium | 6,000,000 | EUR | 100.00 | Iveco S.p.A. | 99.983 | |
| | | | | | | Iveco Nederland B.V. | 0.017 | |
| s.c. Afin Leasing Ifn s.a. | Bucharest | Romenia | 2,063,200,000 | RON | 100.00 | Afin Leasing AG | 100.000 | |
| s.c. Afin Trade Company S.r.l. | Bucharest | Romenia | 17,500 | RON | 100.00 | Afin Leasing AG | 100.000 | |
| S.C.I. La Méditerranéenne | Vitrolles | France | 248,000 | EUR | 100.00 | Iveco France | 50.000 | |
| | | | | | | Société de Diffusion de Vehicules Industriels-SDVI S.A.S. | 50.000 | |
| Seddon Atkinson Vehicles Ltd | Watford | United Kingdom | 41,700,000 | GBP | 100.00 | Iveco Holdings Limited | 100.000 | |
| Société Charolaise de Participations S.A. | Vénissieux | France | 2,370,000 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Société de Diffusion de Vehicules Industriels-SDVI S.A.S. | Trappes | France | 7,022,400 | EUR | 100.00 | Iveco France | 100.000 | |
| Transolver Service S.A. | Madrid | Spain | 610,000 | EUR | 100.00 | Iveco Partecipazioni Finanziarie S.r.l. | 100.000 | |
| Transolver Service S.p.A. | Turin | Italy | 214.763 | EUR | 100.00 | Iveco Partecipazioni Finanziarie S.r.l. | 100.000 | |
| Transolver Services GmbH | Heilbronn | Germany | 750,000 | EUR | 100.00 | Iveco Partecipazioni Finanziarie S.r.l. | 100.000 | |
| UAB Afin Baltica (Lithuania) | Vilnius | Lithuania | 35,000 | LTL | 100.00 | Afin Leasing AG | 100.000 | |
| Utilitaries & Véhicules Industriels Franciliens-UVIF SAS | La Garenne | France | 1,067,500 | EUR | 100.00 | Iveco France | 100.000 | |
| Zona Franca Alari Sepauto S.A. | Barcelona | Spain | 520,560 | EUR | 51.87 | Iveco España S.L. | 51.867 | |
| 2 H Energy S.A.S. | Fécamp | France | 2,000,000 | EUR | 100.00 | Iveco Participations S.A. | 100.000 | |
Components | | | | | | | | |
| Magneti Marelli Holding S.p.A. | Corbetta | Italy | 254,324,998 | EUR | 99.99 | Fiat Partecipazioni S.p.A. | 99.991 | 100.000 |
| Automotive Lighting Brotterode GmbH | Meiningen | Germany | 7,270,000 | EUR | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Automotive Lighting Italia S.p.A. | Venaria Reale | Italy | 2,000,000 | EUR | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Automotive Lighting LLC | Farmington Hills | U.S.A. | 25,001,000 | USD | 99.99 | Magneti Marelli Holding U.S.A. Inc. | 100.000 | |
| Automotive Lighting o.o.o. | Rjiasan | Russia | 36,875,663 | RUB | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Automotive Lighting Polska Sp. z o.o. | Sosnowiec | Poland | 83,500,000 | PLN | 99.99 | Automotive Lighting Reutlingen GmbH | 99.997 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.003 | |
| Automotive Lighting Rear Lamps Espana S.A. | Llinares del Valles | Spain | 3,655,385 | EUR | 99.99 | Automotive Lighting Rear Lamps Italia S.p.A. | 100.000 | |
| Automotive Lighting Rear Lamps France S.A. | Saint Denis | France | 1,011,536 | EUR | 99.99 | Automotive Lighting Rear Lamps Italia S.p.A. | 100.000 | |
| Automotive Lighting Rear Lamps Italia S.p.A. | Tolmezzo | Italy | 10,000,000 | EUR | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Automotive Lighting Rear Lamps Mexico S. de r.l. de C.V. | El Marques Queretaro | Mexico | 50,000 | MXN | 99.99 | Magneti Marelli Holding U.S.A. Inc. | 100.000 | |
| Automotive Lighting Reutlingen GmbH | Reutlingen | Germany | 1,330,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Automotive Lighting S.R.O. | Jihlava | Czech Republic | 927,637,000 | CZK | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Automotive Lighting UK Limited | Cannock | United Kingdom | 15,387,348 | GBP | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Concordia Finance S.A. | Luxembourg | Luxembourg | 13,137,000 | EUR | 80.00 | Magneti Marelli Holding S.p.A. | 80.003 | |
| Fiat CIEI S.p.A. in liquidation | Corbetta | Italy | 220.211 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Industrial Yorka de Mexico S.A. de C.V. | Mexico City | Mexico | 50,000 | MXN | 99.99 | Automotive Lighting Rear Lamps Mexico S. de r.l. de C.V. | 98.000 | |
| | | | | | | Industrial Yorka de Tepotzotlan S.A. de C.V. | 2.000 | |
| Industrial Yorka de Tepotzotlan S.A. de C.V. | Mexico City | Mexico | 50,000 | MXN | 99.99 | Automotive Lighting Rear Lamps Mexico S. de r.l. de C.V. | 99.000 | |
| | | | | | | Industrial Yorka de Mexico S.A. de C.V. | 1.000 | |
| Industrias Magneti Marelli Mexico S.A. de C.V. | Tepotzotlan | Mexico | 50,000 | MXN | 99.99 | Magneti Marelli Sistemas Electronicos Mexico S.A. | 99.998 | |
| | | | | | | Servicios Administrativos Corp. IPASA S.A. | 0.002 | |
| Kadron S/A | Maua | Brazil | 2,622,229 | BRL | 99.99 | Magneti Marelli Sistemas Automotivos Industria e Comercio Ltda | 100.000 | |
| Magneti Marelli After Market Parts and Services S.p.A. | Corbetta | Italy | 7,000,000 | EUR | 80.00 | Concordia Finance S.A. | 100.000 | |
| Magneti Marelli After Market Sp. z o.o. | Katowice | Poland | 2,000,000 | PLN | 80.00 | Concordia Finance S.A. | 100.000 | |
| Magneti Marelli After Market S.p.A. in liquidation | Turin | Italy | 1,550,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 99.999 | 100,000 |
| Magneti Marelli Aftermarket GmbH | Heilbronn | Germany | 100,000 | EUR | 80.00 | Concordia Finance S.A. | 100.000 | |
| Magneti Marelli Aftermarket S.a.s. | Nanterre | France | 782.208 | EUR | 80.00 | Concordia Finance S.A. | 100.000 | |
| Magneti Marelli Aftermarket SL | Barcelona | Spain | 5,255,000 | EUR | 80.00 | Magneti Marelli After Market Parts and Services S.p.A. | 100.000 | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Magneti Marelli Argentina S.A. | Buenos Aires | Argentina | 700,000 | ARS | 99.99 | Magneti Marelli Holding S.p.A. | 95.000 | |
| | | | | | | Magneti Marelli France S.a.s. | 5.000 | |
| Magneti Marelli Automotive Components (WUHU) Co. Ltd. | Anhui | People's Rep.of China | 9,500,000 | USD | 99.99 | Magneti Marelli Powertrain S.p.A. | 100.000 | |
| Magneti Marelli Cofap Autopecas S.A. | São Paulo | Brazil | 7,555,000 | BRL | 79.69 | Magneti Marelli After Market Parts and Services S.p.A. | 99.620 | |
| Magneti Marelli Cofap Companhia Fabricadora de Pecas | Santo Andre | Brazil | 170,950,534 | BRL | 99.63 | Magneti Marelli Holding S.p.A. | 99.634 | 99,966 |
| Magneti Marelli Components B.V. in liquidation | Amsterdam | Netherlands | 53,600,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Conjuntos de Escape S.A. | Buenos Aires | Argentina | 12,000 | ARS | 99.99 | Magneti Marelli Sistemi di Scarico S.p.A. | 95.000 | |
| | | | | | | Magneti Marelli Argentina S.A. | 5.000 | |
| Magneti Marelli do Brasil Industria e Comercio SA | Hortolandia | Brazil | 40,568,427 | BRL | 99.86 | Magneti Marelli Holding S.p.A. | 99.872 | 99990 |
| Magneti Marelli Electronica SL | Barcelona | Spain | 18,388,581 | EUR | 99.99 | Magneti Marelli Iberica S.A. | 100.000 | |
| Magneti Marelli Elektronische Systeme GmbH | Heilbronn | Germany | 100,000 | EUR | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 100.000 | |
| Magneti Marelli Exhaust Systems Polska Sp. z o.o. | Sosnowiec | Poland | 15,000,000 | PLN | 99.99 | Magneti Marelli Sistemi di Scarico S.p.A. | 99.993 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.007 | |
| Magneti Marelli France S.a.s. | Nanterre | France | 42,672,960 | EUR | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 99.999 | |
| | | | | | | Ufima S.A.S. | 0.001 | |
| Magneti Marelli Guangzhou Motor Vehicle Instruments Co. Limited | Guangzhou | People's Rep.of China | 8,100,000 | USD | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 100.000 | |
| Magneti Marelli Hellas A.E. | Athens | Greece | 587,000 | EUR | 80.00 | Concordia Finance S.A. | 100.000 | |
| Magneti Marelli Holding U.S.A. Inc. | Wixom | U.S.A. | 10 | USD | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Iberica S.A. | Santpedor | Spain | 18,099,776 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Motopropulsion France SAS | Nanterre | France | 10,692,500 | EUR | 99.99 | Magneti Marelli Powertrain S.p.A. | 100.000 | |
| Magneti Marelli North America Inc. | Wilmington | U.S.A. | 40,223,205 | USD | 99.63 | Magneti Marelli Cofap Companhia Fabricadora de Pecas | 100.000 | |
| Magneti Marelli Poland S.A. | Sosnowiec | Poland | 10,567,800 | PLN | 99.99 | Magneti Marelli Holding S.p.A. | 99.995 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.005 | |
| Magneti Marelli Powertrain GmbH | Russelsheim | Germany | 100,000 | EUR | 99.99 | Magneti Marelli Powertrain S.p.A. | 100.000 | |
| Magneti Marelli Powertrain (Shanghai) Co. Ltd. | Shanghai | People's Rep.of China | 17,500,000 | USD | 99.99 | Magneti Marelli Powertrain S.p.A. | 100.000 | |
| Magneti Marelli Powertrain S.p.A. | Corbetta | Italy | 85,690,872 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 99.999 | 100,000 |
| Magneti Marelli Powertrain U.S.A. LLC | Sanford | U.S.A. | 25,000,000 | USD | 99.99 | Magneti Marelli Holding U.S.A. Inc. | 100.000 | |
| Magneti Marelli Racing Ltd | Basildon | United Kingdom | 10,000 | GBP | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Repuestos S.A. | Buenos Aires | Argentina | 2,012,000 | ARS | 79.85 | Magneti Marelli After Market Parts and Services S.p.A. | 51.000 | |
| | | | | | | Magneti Marelli Cofap Autopecas S.A. | 48.000 | |
| | | | | | | Concordia Finance S.A. | 1.000 | |
| Magneti Marelli Sistemas Automotivos Industria e Comercio Ltda | Contagem | Brazil | 196,634,874 | BRL | 99.99 | Magneti Marelli Powertrain S.p.A. | 66.111 | |
| | | | | | | Automotive Lighting Reutlingen GmbH | 33.889 | |
| Magneti Marelli Sistemas Electronicos Mexico S.A. | Tepotzotlan | Mexico | 23,611,680 | MXN | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 100.000 | |
| Magneti Marelli Sistemi di Scarico S.p.A. | Corbetta | Italy | 20,000,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Sistemi Elettronici S.p.A. | Corbetta | Italy | 74,897,548 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 99.999 | 100,000 |
| Magneti Marelli South Africa (Proprietary) Limited | Johannesburg | South Africa | 1,950,000 | ZAR | 99.99 | Magneti Marelli Sistemi di Scarico S.p.A. | 100.000 | |
| Magneti Marelli Suspension Systems Bielsko Sp. z.o.o. | Bielsko-Biala | Poland | 70,050,000 | PLN | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Magneti Marelli Suspension Systems Poland Sp. z o.o. | Sosnowiec | Poland | 43,100,000 | PLN | 99.99 | Magneti Marelli Holding S.p.A. | 99.993 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.007 | |
| Magneti Marelli Tubos de Escape SL | Barcelona | Spain | 10,154,256 | EUR | 99.99 | Magneti Marelli Iberica S.A. | 100.000 | |
| Magneti Marelli U.K. Limited in liquidation | Cannock | United Kingdom | 12,400,000 | GBP | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Mako Elektrik Sanayi Ve Ticaret A.S. | Osmangazi Bursa | Turkey | 16,500,000 | TRY | 94.99 | Magneti Marelli Holding S.p.A. | 95.000 | |
| Malaysian Automotive Lighting SDN. BHD | Penang | Malaysia | 8,000,000 | MYR | 79.99 | Automotive Lighting Reutlingen GmbH | 80.000 | |
| Servicios Administrativos Corp. IPASA S.A. | Col. Chapultepec | Mexico | 1,000 | MXN | 99.99 | Magneti Marelli Sistemas Electronicos Mexico S.A. | 99.990 | |
| | | | | | | Industrias Magneti Marelli Mexico S.A. de C.V. | 0.010 | |
| Sistemi Sospensioni S.p.A. | Corbetta | Italy | 37,622,179 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Tecnologia de Iluminacion Automotriz S.A. de C.V. | Chihuahua | Mexico | 50,000 | MXN | 99.99 | Automotive Lighting LLC | 100.000 | |
| Ufima S.A.S. | Nanterre | France | 44,940 | EUR | 99.94 | Magneti Marelli Holding S.p.A. | 64.967 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 34.980 | |
Metallurgical Products | | | | | | | | |
| Teksid S.p.A. | Turin | Italy | 71,403,261 | EUR | 84.79 | Fiat Partecipazioni S.p.A. | 84.791 | |
| Compania Industrial Frontera S.A. de C.V. | Frontera | Mexico | 50,000 | MXN | 84.79 | Teksid Hierro de Mexico S.A. de C.V. | 100.000 | |
| Fonderie du Poitou Fonte S.A.S. | Ingrandes-sur-Vienne | France | 26,958,464 | EUR | 84.79 | Teksid S.p.A. | 100.000 | |
| Funfrap-Fundicao Portuguesa S.A. | Cacia | Portugal | 13,697,550 | EUR | 70.89 | Fonderie du Poitou Fonte S.A.S. | 83.607 | |
| Teksid Acquisition Inc. in liquidation | Toronto | Canada | 30,000,000 | CAD | 84.79 | Teksid S.p.A. | 100.000 | |
| Teksid do Brasil Ltda | Betim | Brazil | 59,899,570 | BRL | 84.79 | Teksid S.p.A. | 100.000 | |
| Teksid Hierro De Mexico Arrendadora S.A. de C.V. | Frontera | Mexico | 497,690,000 | MXN | 84.79 | Teksid S.p.A. | 100.000 | |
| Teksid Hierro de Mexico S.A. de C.V. | Frontera | Mexico | 418,874,300 | MXN | 84.79 | Teksid S.p.A. | 100.000 | |
| Teksid Inc. | Wilmington | U.S.A. | 100,000 | USD | 84.79 | Teksid S.p.A. | 100.000 | |
| Teksid Iron Poland Sp. z o.o. | Skoczow | Poland | 115,678,500 | PLN | 84.79 | Teksid S.p.A. | 99.996 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.004 | |
Production Systems | | | | | | | | |
| Comau S.p.A. | Grugliasco | Italy | 48,013,959 | EUR | 100.00 | Fiat S.p.A. | 100.000 | |
| Autodie International, Inc. | Grand Rapids | U.S.A. | 1,000 | USD | 100.00 | Comau Pico Holdings Corporation | 100.000 | |
| Comau France S.A. | Trappes | France | 11,900,000 | EUR | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Argentina S.A. | Buenos Aires | Argentina | 25,680 | ARS | 100.00 | Comau S.p.A. | 55.280 | |
| | | | | | | Comau do Brasil Industria e Comercio Ltda. | 44.688 | |
| | | | | | | Fiat Argentina S.A. | 0.031 | |
| Comau Canada Inc. | Windsor | Canada | 100 | CAD | 100.00 | Comau Inc. | 100.000 | |
| Comau Deutschland GmbH | Boblingen | Germany | 1,330,000 | EUR | 100.00 | Comau S.p.A. | 100.000 | |
| Comau do Brasil Industria e Comercio Ltda. | Betim | Brazil | 29,312,653 | BRL | 100.00 | Comau S.p.A. | 99.999 | |
| | | | | | | Fiat do Brasil S.A. | 0.001 | |
| (*) Comau Estil Unl. | Luton | United Kingdom | 97,461,477 | USD | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Inc. | Southfield | U.S.A. | 21.455 | USD | 100.00 | Comau Pico Holdings Corporation | 100.000 | |
| Comau India Private Limited | Pune | India | 161,935,020 | INR | 100.00 | Comau S.p.A. | 99.990 | |
| | | | | | | Comau Deutschland GmbH | 0.010 | |
| Comau Pico Expatriate, Inc. | Southfield | U.S.A. | 1,000 | USD | 100.00 | Comau Pico Holdings Corporation | 100.000 | |
| Comau Pico Holdings Corporation | New York | U.S.A. | 100 | USD | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Pico Iaisa S.de R.L. de C.V. | Tepotzotlan | Mexico | 3,000 | MXN | 100.00 | Comau Pico Mexico S.de R.L. de C.V. | 99.967 | |
| | | | | | | Comau S.p.A. | 0.033 | |
| Comau Pico Mexico S.de R.L. de C.V. | Tepotzotlan | Mexico | 3,000 | MXN | 100.00 | Comau S.p.A. | 99.967 | |
| | | | | | | Comau Deutschland GmbH | 0.033 | |
| Comau Pico Pitex S.de R.L. C.V. | Tepotzotlan | Mexico | 3,000 | MXN | 100.00 | Comau Pico Mexico S.de R.L. de C.V. | 99.967 | |
| | | | | | | Comau S.p.A. | 0.033 | |
| Comau Pico Resources, Inc. | Southfield | U.S.A. | 1,000 | USD | 100.00 | Comau Pico Holdings Corporation | 100.000 | |
| | | | | | | | | |
| (*) Assets held for sale. | | | | | | | | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Comau Pico Trebol S.de R.L. de C.V. | Tepotzotlan | Mexico | 3,000 | MXN | 100.00 | Comau Pico Mexico S.de R.L. de C.V. | 99.967 | |
| | | | | | | Comau S.p.A. | 0.033 | |
| Comau Poland Sp. z o.o. | Bielsko-Biala | Poland | 2,100,000 | PLN | 100.00 | Comau S.p.A. | 99.976 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.024 | |
| Comau Romania S.R.L. | Bihor | Romenia | 10,315,170 | RON | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Russia OOO | Moscow | Russia | 4,770,225 | RUB | 100.00 | Comau S.p.A. | 99.000 | |
| | | | | | | Comau Deutschland GmbH | 1.000 | |
| (*) Comau SA Body Systems (Pty) Ltd. | Uitenhage | South Africa | 301 | ZAR | 100.00 | Comau South Africa (Pty) Ltd. | 100.000 | |
| (*) Comau SA Press Tools and Parts (Pty) Ltd. | Uitenhage | South Africa | 100 | ZAR | �� 100.00 | Comau SA Body Systems (Pty) Ltd. | 100.000 | |
| (*) Comau SA Properties (Pty) Ltd. | Uitenhage | South Africa | 100 | ZAR | 100.00 | Comau SA Body Systems (Pty) Ltd. | 100.000 | |
| Comau Service Systems S.L. | Madrid | Spain | 250,000 | EUR | 100.00 | Comau S.p.A. | 100.000 | |
| Comau (Shanghai) Automotive Equipment Co. Ltd. | Shanghai | People's Rep.of China | 1,000,000 | USD | 100.00 | Comau S.p.A. | 100.000 | |
| (*) Comau South Africa (Pty) Ltd. | Uitenhage | South Africa | 1,001,002 | ZAR | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Sverige AB | Trollhattan | Sweden | 5,000,000 | SEK | 100.00 | Comau S.p.A. | 100.000 | |
| Mecaner S.A. | Urdùliz | Spain | 3,000,000 | EUR | 100.00 | Comau S.p.A. | 100.000 | |
| Pico Europe, Inc. | Southfield | U.S.A. | 1,000 | USD | 100.00 | Comau S.p.A. | 100.000 | |
| Precision Pico Products Inc. | Plymouth | U.S.A. | 1,000 | USD | 100.00 | Comau Pico Holdings Corporation | 100.000 | |
Publishing and Communications | | | | | | | | |
| Itedi-Italiana Edizioni S.p.A. | Turin | Italy | 5,980,000 | EUR | 100.00 | Fiat S.p.A. | 100.000 | |
| BMI S.p.A. | Genoa | Italy | 124,820 | EUR | 58.00 | Itedi-Italiana Edizioni S.p.A. | 58.004 | |
| Editrice La Stampa S.p.A. | Turin | Italy | 4,160,000 | EUR | 100.00 | Itedi-Italiana Edizioni S.p.A. | 100.000 | |
| La Stampa Europe SAS | Paris | France | 18,600,000 | EUR | 100.00 | Itedi-Italiana Edizioni S.p.A. | 100.000 | |
| Publikompass S.p.A. | Milan | Italy | 3,068,000 | EUR | 100.00 | Itedi-Italiana Edizioni S.p.A. | 100.000 | |
Holding companies and Other companies | | | | | | | |
| Business Solutions S.p.A. | Turin | Italy | 4,791,396 | EUR | 100.00 | Fiat S.p.A. | 100.000 | |
| Centro Ricerche Plast-Optica S.p.A. | Amaro | Italy | 1,033,000 | EUR | 75.13 | C.R.F. Società Consortile per Azioni | 51.000 | |
| | | | | | | Automotive Lighting Rear Lamps Italia S.p.A. | 24.500 | |
| C.R.F. Società Consortile per Azioni | Orbassano | Italy | 45,000,000 | EUR | 99.28 | Fiat Partecipazioni S.p.A. | 52.061 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 17.478 | |
| | | | | | | Iveco S.p.A. | 9.987 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 7.490 | |
| | | | | | | Fiat Powertrain Technologies SpA | 4.994 | |
| | | | | | | CNH Italia s.p.a. | 2.497 | |
| | | | | | | Comau S.p.A. | 2.497 | |
| | | | | | | Teksid S.p.A. | 2.497 | |
| | | | | | | Ferrari S.p.A. | 0.499 | |
| Deposito Avogadro S.r.l. | Turin | Italy | 100,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Elasis-Società Consortile per Azioni | Pomigliano d'Arco | Italy | 20,000,000 | EUR | 98.91 | Fiat Group Automobiles S.p.A. | 51.000 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 27.933 | |
| | | | | | | CNH Italia s.p.a. | 6.800 | |
| | | | | | | Fiat Powertrain Technologies SpA | 5.000 | |
| | | | | | | Iveco S.p.A. | 3.300 | |
| | | | | | | Comau S.p.A. | 1.500 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 1.500 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 1.450 | |
| | | | | | | Ferrari S.p.A. | 1.100 | |
| | | | | | | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 0.250 | |
| | | | | | | Fiat S.p.A. | 0.167 | |
| eSPIN S.p.A. | Turin | Italy | 1,000,000 | EUR | 100.00 | Business Solutions S.p.A. | 100.000 | |
| Fahag Immobilien-und Finanz-Gesellschaft AG | Zurich | Switzerland | 500,000 | CHF | 100.00 | IHF-Internazionale Holding Fiat S.A. | 100.000 | |
| Fast Buyer France S.a.r.l. | Trappes | France | 7,700 | EUR | 100.00 | Fast-Buyer S.p.A. | 100.000 | |
| Fast-Buyer S.p.A. | Turin | Italy | 500,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Fiat Argentina S.A. | Buenos Aires | Argentina | 5,292,117 | ARS | 100.00 | Fiat Partecipazioni S.p.A. | 90.961 | |
| | | | | | | Fiat do Brasil S.A. | 9,029 | |
| | | | | | | SGR-Sociedad para la Gestion de Riesgos S.A. | 0.009 | |
| | | | | | | Fiat Auto Argentina S.A. | 0.001 | |
| Fiat Attività Immobiliari S.p.A. | Turin | Italy | 65,700,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Fiat Auto Holdings B.V. in liquidatie | Amsterdam | Netherlands | 1,000,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Fiat do Brasil S.A. | Nova Lima | Brazil | 28,513,780 | BRL | 100.00 | Fiat Partecipazioni S.p.A. | 99.998 | |
| | | | | | | Fiat Services S.p.A. | 0.002 | |
| Fiat Financas Brasil Ltda | Nova Lima | Brazil | 2,469,701 | BRL | 100.00 | Fiat Finance S.p.A. | 99.994 | |
| | | | | | | Fiat do Brasil S.A. | 0.006 | |
| Fiat Finance and Trade Ltd | Luxembourg | Luxembourg | 251,494,000 | EUR | 100.00 | Fiat Finance S.p.A. | 99.993 | |
| | | | | | | Fiat Finance Canada Ltd. | 0.007 | |
| Fiat Finance Canada Ltd. | Calgary | Canada | 10,099,885 | CAD | 100.00 | Fiat Finance S.p.A. | 100.000 | |
| Fiat Finance et Services S.A. | Trappes | France | 3,700,000 | EUR | 100.00 | Business Solutions S.p.A. | 99.997 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 0.001 | |
| Fiat Finance North America Inc. | Wilmington | U.S.A. | 40,090,010 | USD | 100.00 | Fiat Finance S.p.A. | 60,526 | |
| | | | | | | Fiat S.p.A. | 39.474 | |
| Fiat Finance S.p.A. | Turin | Italy | 224,440,000 | EUR | 100.00 | Fiat S.p.A. | 100.000 | |
| Fiat GmbH | Ulm | Germany | 200,000 | EUR | 100.00 | Fiat Services S.p.A. | 100.000 | |
| Fiat Iberica S.A. | Madrid | Spain | 2,797,054 | EUR | 100.00 | Fiat Services S.p.A. | 100.000 | |
| Fiat Information & Communication Services società consortile per azioni | Turin | Italy | 800,000 | EUR | 98.04 | Fiat S.p.A. | 51.000 | |
| | | | | | | CNH Italia s.p.a. | 10.000 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 10.000 | |
| | | | | | | Iveco S.p.A. | 10.000 | |
| | | | | | | Comau S.p.A. | 3.000 | |
| | | | | | | Ferrari S.p.A. | 3.000 | |
| | | | | | | Fiat Services S.p.A. | 3.000 | |
| | | | | | | Itedi-Italiana Edizioni S.p.A. | 3.000 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 3.000 | |
| | | | | | | Teksid S.p.A. | 3.000 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 1.000 | |
| Fiat Netherlands Holding N.V. | Amsterdam | Netherlands | 2,610,397,295 | EUR | 100.00 | Fiat S.p.A. | 60.563 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 39.437 | |
| Fiat Partecipazioni S.p.A. | Turin | Italy | 356,158,302 | EUR | 100.00 | Fiat S.p.A. | 100.000 | |
| Fiat Partecipazioni (U.K.) Limited | Basildon | United Kingdom | 860,000 | GBP | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| | | | | | | | | |
| (*) Assets held for sale. | | | | | | | | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Fiat Polska Sp. z o.o. | Warsaw | Poland | 25,500,000 | PLN | 100.00 | Fiat Partecipazioni S.p.A. | 99.907 | |
| | | | | | | Fiat Auto Poland S.A. | 0.029 | |
| | | | | | | Magneti Marelli Suspension Systems Poland Sp. z o.o. | 0.012 | |
| | | | | | | Automotive Lighting Polska Sp. z o.o. | 0.010 | |
| | | | | | | Magneti Marelli Exhaust Systems Polska Sp. z o.o. | 0.010 | |
| | | | | | | Magneti Marelli Poland S.A. | 0.010 | |
| | | | | | | Teksid Iron Poland Sp. z o.o. | 0.010 | |
| | | | | | | CNH Polska Sp. z o.o. | 0.002 | |
| | | | | | | Comau Poland Sp. z o.o. | 0.002 | |
| | | | | | | Fiat Services Polska Sp. z o.o. | 0.002 | |
| | | | | | | Iveco Poland Ltd. | 0.002 | |
| | | | | | | Sadi Polska-Agencja Celna Sp. z o.o. | 0.002 | |
| | | | | | | Sirio Polska Sp. z o.o. | 0.002 | |
| Fiat Services Belgium N.V. | Zedelgem | Belgium | 62,500 | EUR | 100.00 | Fiat U.K. Limited | 99.960 | |
| | | | | | | Fiat Services S.p.A. | 0.040 | |
| Fiat Services Polska Sp. z o.o. | Bielsko-Biala | Poland | 3,600,000 | PLN | 100.00 | Fiat Services S.p.A. | 99.986 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.014 | |
| Fiat Services S.p.A. | Turin | Italy | 3,600,000 | EUR | 100.00 | Business Solutions S.p.A. | 100.000 | |
| Fiat Servizi per l'Industria S.c.p.a. | Turin | Italy | 1,652,669 | EUR | 99.37 | Fiat Partecipazioni S.p.A. | 51.000 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 25.500 | |
| | | | | | | Iveco S.p.A. | 6.000 | |
| | | | | | | Fiat S.p.A. | 5.000 | |
| | | | | | | CNH Italia s.p.a. | 3.000 | |
| | | | | | | Teksid S.p.A. | 2.000 | |
| | | | | | | Comau S.p.A. | 1.500 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 1.500 | |
| | | | | | | Editrice La Stampa S.p.A. | 1.500 | |
| | | | | | | Fiat Services S.p.A. | 1.500 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 1.500 | |
| Fiat U.K. Limited | Basildon | United Kingdom | 750,000 | GBP | 100.00 | Fiat Services S.p.A. | 100.000 | |
| Fiat U.S.A. Inc. | New York | U.S.A. | 16,830,000 | USD | 100.00 | Fiat S.p.A. | 100.000 | |
| Fiat-Revisione Interna S.c.r.l. | Turin | Italy | 300,000 | EUR | 98.34 | Fiat S.p.A. | 51.000 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 15.000 | |
| | | | | | | CNH Global N.V. | 10.000 | |
| | | | | | | Iveco S.p.A. | 6.000 | |
| | | | | | | Comau S.p.A. | 2.000 | |
| | | | | | | Ferrari S.p.A. | 2.000 | |
| | | | | | | Fiat Powertrain Technologies SpA | 2.000 | |
| | | | | | | Fiat Services S.p.A. | 2.000 | |
| | | | | | | Itedi-Italiana Edizioni S.p.A. | 2.000 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 2.000 | |
| | | | | | | Maserati S.p.A. | 2.000 | |
| | | | | | | Teksid S.p.A. | 2.000 | |
| | | | | | | Fiat Finance S.p.A. | 1.000 | |
| | | | | | | Fiat Partecipazioni S.p.A. | 1.000 | |
| IHF-Internazionale Holding Fiat S.A. | Lugano | Switzerland | 100,000,000 | CHF | 100.00 | Fiat S.p.A. | 100.000 | |
| Intermap (Nederland) B.V. | Amsterdam | Netherlands | 200,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | Turin | Italy | 300,000 | EUR | 99.23 | Fiat Partecipazioni S.p.A. | 51.000 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 16.000 | |
| | | | | | | Iveco S.p.A. | 12.000 | |
| | | | | | | CNH Italia s.p.a. | 3.000 | |
| | | | | | | Comau S.p.A. | 3.000 | |
| | | | | | | Fiat Powertrain Technologies SpA | 3.000 | |
| | | | | | | Fiat Services S.p.A. | 3.000 | |
| | | | | | | Fiat S.p.A. | 3.000 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 3.000 | |
| | | | | | | Teksid S.p.A. | 3.000 | |
| ITS GSA FiatGroup France S.A.S. | Trappes | France | 1,737,440 | EUR | 100.00 | Fiat Finance et Services S.A. | 100.000 | |
| ITS-GSA Deutschland GmbH | Ulm | Germany | 25,000 | EUR | 100.00 | Fiat GmbH | 100.000 | |
| ITS-GSA U.K. Limited | Watford | United Kingdom | 50,000 | GBP | 100.00 | Fiat U.K. Limited | 100.000 | |
| KeyG Consulting S.p.A. | Turin | Italy | 167.352 | EUR | 60.00 | Fiat Services S.p.A. | 60.000 | |
| Neptunia Assicurazioni Marittime S.A. | Lausanne | Switzerland | 10,000,000 | CHF | 100.00 | Rimaco S.A. | 100.000 | |
| New Business 7 S.p.A. | Turin | Italy | 11,899,524 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| New Business 8 S.p.A. | Turin | Italy | 1,437,210 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Rimaco S.A. | Lausanne | Switzerland | 350,000 | CHF | 100.00 | IHF-Internazionale Holding Fiat S.A. | 100.000 | |
| Risk Management S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Sadi Polska-Agencja Celna Sp. z o.o. | Bielsko-Biala | Poland | 500,000 | PLN | 100.00 | Servizi e Attività Doganali per l'Industria S.p.A. | 99.800 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.200 | |
| Servizi e Attività Doganali per l'Industria S.p.A. | Turin | Italy | 520,000 | EUR | 100.00 | Fiat Services S.p.A. | 100.000 | |
| SIRIO - Sicurezza Industriale Società consortile per azioni | Turin | Italy | 120,000 | EUR | 92.98 | Fiat Partecipazioni S.p.A. | 57.688 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 17.455 | |
| | | | | | | Iveco S.p.A. | 4.583 | |
| | | | | | | Fiat Powertrain Technologies SpA | 2.356 | |
| | | | | | | Magneti Marelli Powertrain S.p.A. | 1.159 | |
| | | | | | | Comau S.p.A. | 0.751 | |
| | | | | | | Fiat S.p.A. | 0.751 | |
| | | | | | | Ferrari S.p.A. | 0.729 | |
| | | | | | | Teksid S.p.A. | 0.664 | |
| | | | | | | Irisbus Italia S.p.A. | 0.622 | |
| | | | | | | Fiat Services S.p.A. | 0.593 | |
| | | | | | | Sistemi Sospensioni S.p.A. | 0.551 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 0.535 | |
| | | | | | | New Holland Kobelco Construction Machinery S.p.A. | 0.535 | |
| | | | | | | Fiat Servizi per l'Industria S.c.p.a. | 0.503 | |
| | | | | | | Fiat Finance S.p.A. | 0.449 | |
| | | | | | | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 0.449 | |
| | | | | | | Magneti Marelli Sistemi Elettronici S.p.A. | 0.438 | |
| | | | | | | Fidis S.p.A. | 0.325 | |
Subsidiaries consolidated on a line-by-line basis (continued) | | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| | | | | | | CNH Italia s.p.a. | 0.237 | |
| | | | | | | Automotive Lighting Italia S.p.A. | 0.233 | |
| | | | | | | Editrice La Stampa S.p.A. | 0.233 | |
| | | | | | | Elasis-Società Consortile per Azioni | 0.233 | |
| | | | | | | Magneti Marelli Sistemi di Scarico S.p.A. | 0.218 | |
| | | | | | | Astra Veicoli Industriali S.p.A. | 0.103 | |
| | | | | | | Fiat Information & Communication Services società consortile per azioni | 0.103 | |
| | | | | | | Servizi e Attività Doganali per l'Industria S.p.A. | 0.103 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 0.091 | |
| | | | | | | Fiat Purchasing Italia S.r.l. | 0.063 | |
| | | | | | | Fiat-Revisione Interna S.c.r.l. | 0.061 | |
| | | | | | | Iveco Mezzi Speciali S.p.A. | 0.061 | |
| | | | | | | Fiat Center Italia S.p.A. | 0.045 | |
| | | | | | | eSPIN S.p.A. | 0.040 | |
| | | | | | | Fast-Buyer S.p.A. | 0.040 | |
| | | | | | | Turinauto S.P.A. | 0.040 | |
| | | | | | | ABARTH & C. S.p.A. | 0.039 | |
| | | | | | | Itedi-Italiana Edizioni S.p.A. | 0.039 | |
| | | | | | | Maserati S.p.A. | 0.039 | |
| | | | | | | Orione-Società Industriale per la Sicurezza e la Vigilanza Consortile per Azioni | 0.039 | |
| | | | | | | PDL Services S.r.l. | 0.039 | |
| | | | | | | Risk Management S.p.A. | 0.039 | |
| | | | | | | Sisport Fiat S.p.A. - Società sportiva dilettantistica | 0.039 | |
| | | | | | | Magneti Marelli After Market Parts and Services S.p.A. | 0.037 | |
| | | | | | | Automotive Lighting Rear Lamps Italia S.p.A. | 0.022 | |
| | | | | | | Easy Drive S.r.l. | 0.022 | |
| | | | | | | Fiat Attività Immobiliari S.p.A. | 0.022 | |
| Sisport Fiat S.p.A. - Società sportiva dilettantistica | Turin | Italy | 889.049 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Telexis do Brasil Ltda. | Nova Lima | Brazil | 1,400 | BRL | 100.00 | Fiat do Brasil S.A. | 99.929 | |
| | | | | | | Fiat Financas Brasil Ltda | 0.071 | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Jointly-controlled entities accounted for using the proportional consolidation | | | | |
Powertrain Technologies | | | | | | | | |
| Fiat-GM Powertrain Polska Sp. z o.o. | Bielsko-Biala | Poland | 220,100,000 | PLN | 50.00 | Fiat Powertrain Technologies SpA | 50.000 | |
Jointly-controlled entities accounted for using the equity method | | | | | | |
Automobiles | | | | | | | | |
| Fiat Group Automobiles Financial Services S.p.A. | Turin | Italy | 700,000,000 | EUR | 50.00 | Fiat Group Automobiles S.p.A. | 50.000 | |
| FAL Fleet Services S.A.S. | Trappes | France | 3,000,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| FC France S.A. | Trappes | France | 11,360,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 99.999 | |
| Fiat Auto Contracts Ltd | Slough Berkshire | United Kingdom | 16,000,000 | GBP | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Auto Financial Services Limited | Slough Berkshire | United Kingdom | 10,250,000 | GBP | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Auto Financial Services (Wholesale) Ltd. | Slough Berkshire | United Kingdom | 3,500,000 | GBP | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Bank GmbH | Heilbronn | Germany | 39,600,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Bank Polska S.A. | Warsaw | Poland | 125,000,000 | PLN | 50.00 | Fiat Bank GmbH | 100.000 | |
| Fiat Credit Belgio S.A. | Evere | Belgium | 3,718,500 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 99.999 | |
| Fiat Credit Hellas Commercial S.A. of Vehicles | Argyroupoli | Greece | 600,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Distribuidora Portugal S.A. | Alges | Portugal | 450,300 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Finance Holding S.A. | Luxembourg | Luxembourg | 2,300,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 99.995 | |
| Fiat Finance S.A. | Luxembourg | Luxembourg | 9,900,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 99.995 | |
| | | | | | | Fidis Finance (Suisse) S.A. | 0.005 | |
| Fiat Finansiering A/S | Glostrup | Denmark | 13,000,000 | DKK | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fiat Handlerservice GmbH | Heilbronn | Germany | 5,100,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Credit Danmark A/S | Glostrup | Denmark | 500,000 | DKK | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Finance Polska Sp. z o.o. | Warsaw | Poland | 10,000,000 | PLN | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Finance (Suisse) S.A. | Schlieren | Switzerland | 24,100,000 | CHF | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Insurance Consultants SA | Argyroupoli | Greece | 60,000 | EUR | 49.99 | Fiat Credit Hellas Commercial S.A. of Vehicles | 99.975 | |
| Fidis Leasing GmbH | Vienna | Austria | 40,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Leasing Polska Sp. z o.o. | Warsaw | Poland | 12,500,000 | PLN | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Nederland B.V. | Utrecht | Netherlands | 3,085,800 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Retail Financial Services (Ireland) PLC | Dublin | Ireland | 100.007 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 99.994 | |
| Fidis Retail IFIC SA | Alges | Portugal | 10,000,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Fidis Retail Portugal Aluguer de Veiculos S.A. | Alges | Portugal | 50,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Finplus Renting S.A. | Alcalá De Henares | Spain | 2,225,884 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| FL Auto Snc | Trappes | France | 8,954,581 | EUR | 50.00 | FC France S.A. | 99.998 | |
| FL Location SNC | Paris | France | 76.225 | EUR | 49.99 | FC France S.A. | 99.980 | |
| Leasys S.p.A. | Fiumicino | Italy | 77,499,400 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Savarent Società per Azioni | Turin | Italy | 21,000,000 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Sofice-Société de Financement des Concessionnaires s.a.s. | Trappes | France | 3,353,600 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| TarCredit E.F.C. S.A. | Alcalá De Henares | Spain | 16,671,569 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| Targasys Stock SA | Alcalá De Henares | Spain | 5,108,799 | EUR | 50.00 | Fiat Group Automobiles Financial Services S.p.A. | 100.000 | |
| | | | | | | | | |
| FER MAS Oto Ticaret A.S. | Istanbul | Turkey | 5,500,000 | TRY | 37.64 | Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 99.418 | |
| G.E.I.E. Gisevel | Paris | France | 15,200 | EUR | 50.00 | Fiat France | 50.000 | |
| G.E.I.E.-Sevelind | Paris | France | 15,200 | EUR | 50.00 | Fiat France | 50.000 | |
| Koc Fiat Kredi Tuketici Finansmani A.S. | Istanbul | Turkey | 30,000,000 | TRY | 37.86 | Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 100.000 | |
| MEKATRO Arastirma-Gelistirme ve Ticaret A.S. | Kocaeli | Turkey | 150,000 | TRY | 36.72 | Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 97.000 | |
| Nan Jing Fiat Auto Co. Ltd. | Nanjing | People's Rep.of China | 1,409,469,782 | CNY | 50.00 | Fiat Group Automobiles S.p.A. | 50.000 | |
| PLATFORM Arastirma Gelistirme Tasarim ve Ticaret A.S. | Bursa | Turkey | 1,000,000 | TRY | 37.48 | Tofas-Turk Otomobil Fabrikasi Tofas A.S. | 99.000 | |
| Società Europea Veicoli Leggeri-Sevel S.p.A. | Atessa | Italy | 68,640,000 | EUR | 50.00 | Fiat Group Automobiles S.p.A. | 50.000 | |
| Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme | Paris | France | 80,325,000 | EUR | 50.00 | Fiat France | 50.000 | |
| Tofas-Turk Otomobil Fabrikasi Tofas A.S. | Levent | Turkey | 500,000,000 | TRY | 37.86 | Fiat Group Automobiles S.p.A. | 37.856 | |
Agricultural and Construction Equipment | | | | | | | |
| Case Mexico S.A. de C.V. | São Pedro | Mexico | 810,000 | MXN | 44.73 | CNH de Mexico SA de CV | 100.000 | |
| Case Special Excavators N.V. | Zedelgem | Belgium | 1,100,000 | EUR | 44.73 | CNH Global N.V. | 50.000 | |
| CNH Comercial, SA de C.V. | São Pedro | Mexico | 160,050,000 | MXN | 44.73 | CNH de Mexico SA de CV | 100.000 | |
| CNH de Mexico SA de CV | São Pedro | Mexico | 165,276,000 | MXN | 44.73 | CNH Global N.V. | 50.000 | |
| CNH Industrial S.A. de C.V. | São Pedro | Mexico | 200,050,000 | MXN | 44.73 | CNH de Mexico SA de CV | 100.000 | |
| CNH Servicios Comerciales, S.A. de C.V. | São Pedro | Mexico | 50,000,000 | MXN | 43.83 | CNH Global N.V. | 49.000 | |
| CNH Servicios Corporativos S.A. de C.V. | São Pedro | Mexico | 375,000 | MXN | 44.73 | CNH de Mexico SA de CV | 99.999 | |
| Consolidated Diesel Company | Whitakers | U.S.A. | 100 | USD | 44.73 | CNH Engine Corporation | 50.000 | |
| LBX Company LLC | Wilmington | U.S.A. | 0 | USD | 44.73 | Case LBX Holdings Inc. | 50.000 | |
| L&T-Case Equipment Private Limited | Mumbai | India | 240,100,000 | INR | 44.73 | CNH America LLC | 50.000 | |
| Megavolt L.P. L.L.L.P. | Wilmington | U.S.A. | 500,000 | USD | 35.78 | CNH America LLC | 40.000 | |
| New Holland HFT Japan Inc. | Sapporo | Japan | 240,000,000 | JPY | 44.73 | CNH Global N.V. | 50.000 | |
| New Holland Trakmak Traktor A.S. | Izmir | Turkey | 800,000 | TRY | 33.54 | CNH Global N.V. | 37.500 | |
| Turk Traktor Ve Ziraat Makineleri A.S. | Ankara | Turkey | 47,000,000 | TRY | 33.54 | CNH Global N.V. | 37.500 | |
Trucks and Commercial Vehicles | | | | | | | | |
| Iveco Fiat - Oto Melara Società consortile r.l. | Rome | Italy | 40,000 | EUR | 50.00 | Iveco S.p.A. | 50.000 | |
| Naveco Ltd. | Nanjing | People's Rep.of China | 2,527,000,000 | CNY | 50.00 | Iveco S.p.A. | 50.000 | |
| SAIC IVECO Commercial Vehicle Investment Company Limited | Shanghai | People's Rep.of China | 50,000,000 | USD | 50.00 | Iveco S.p.A. | 50.000 | |
| Transolver Finance Establecimiento Financiero de Credito S.A. | Madrid | Spain | 9,315,500 | EUR | 50.00 | Iveco S.p.A. | 50.000 | |
Components | | | | | | | | |
| Gestamp Marelli Autochasis S.L. | Barcelona | Spain | 2,000,000 | EUR | 50.00 | Sistemi Sospensioni S.p.A. | 50.000 | |
Metallurgical Products | | | | | | | | |
| Hua Dong Teksid Automotive Foundry Co. Ltd. | Zhenjiang-Jangsu | People's Rep.of China | 385,363,550 | CNY | 42.40 | Teksid S.p.A. | 50.000 | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Subsidiaries accounted for using the equity method | | | | | | |
Automobiles | | | | | | | | |
| Alfa Romeo Inc. | Orlando | U.S.A. | 3,000,000 | USD | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Alfa Romeo Motors Ltd. | Bangkok | Thailand | 160,000,000 | THB | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Auto Italia Erfurt GmbH in liquidation | Erfurt | Germany | 2,985,000 | EUR | 100.00 | Fiat Automobil Vertriebs GmbH | 100.000 | |
| F.A. Austria Commerz GmbH | Vienna | Austria | 37,000 | EUR | 100.00 | Fiat Group Automobiles Switzerland S.A. | 100.000 | |
| Fiat Auto Egypt Industrial Company SAE | Giza | Egypt | 50,000,000 | EGP | 80.40 | Fiat Group Automobiles S.p.A. | 80.400 | |
| Fiat Auto Egypt S.A.E. | Giza | Egypt | 5,000,000 | EGP | 79.60 | Fiat Auto Egypt Industrial Company SAE | 99.000 | |
| Fiat Auto S.A. de Ahorro para Fines Determinados | Buenos Aires | Argentina | 24,535,149 | ARS | 100.00 | Fiat Auto Argentina S.A. | 100.000 | |
| Fiat Auto Thailand Pvt. Ltd. | Bangkok | Thailand | 276,000,000 | THB | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| Italcar SA | Casablanca | Morocco | 28,000,000 | MAD | 99.94 | Fiat Auto Maroc S.A. | 99.986 | |
| Sirio Polska Sp. z o.o. | Bielsko-Biala | Poland | 1,350,000 | PLN | 100.00 | Fiat Auto Poland S.A. | 99.963 | |
| | | | | | | Fiat Polska Sp. z o.o. | 0.037 | |
| Zao Zernoproductpromsnabmechanizatsija | Nizhniy Novgorod | Russia | 24,660,000 | RUB | 73.14 | Fiat Group Automobiles S.p.A. | 73.139 | 73127 |
Agricultural and Construction Equipment | | | | | | | |
| Farmers New Holland Inc. | Wilmington | U.S.A. | 800,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Jackson New Holland, Inc. | Wilmington | U.S.A. | 371,000 | USD | 84.39 | CNH America LLC | 94.340 | |
| Medicine Hat New Holland Ltd. | Ottawa | Canada | 903.783 | CAD | 56.27 | CNH Canada, Ltd. | 62.900 | |
| Northside New Holland Inc. | Wilmington | U.S.A. | 250,000 | USD | 62.33 | CNH America LLC | 69.680 | |
| Ridgeview New Holland Inc. | Wilmington | U.S.A. | 534,000 | USD | 61.61 | CNH America LLC | 68.876 | |
| Southside New Holland Tractor & Equipment, Inc. | Wilmington | U.S.A. | 325,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Sunrise Tractor & Equipment Inc. | Wilmington | U.S.A. | 875,000 | USD | 70.64 | CNH America LLC | 78.971 | |
| Tri-County New Holland Inc. | Wilmington | U.S.A. | 400,000 | USD | 89.45 | CNH America LLC | 100.000 | |
Trucks and Commercial Vehicles | | | | | | | | |
| Altra S.p.A. | Genoa | Italy | 516,400 | EUR | 100.00 | Iveco S.p.A. | 100.000 | |
| F. Pegaso S.A. | Madrid | Spain | 993.045 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Financière Pegaso France S.A. | Trappes | France | 260.832 | EUR | 100.00 | Iveco España S.L. | 100.000 | |
| Iveco Colombia Ltda. | Santa Fe' de Bogota | Colombia | 7,596,249,000 | COP | 100.00 | Iveco Venezuela C.A. | 99.990 | |
| | | | | | | Iveco Latin America Ltda | 0.010 | |
| Iveco Plan S.A. de Ahorro para fines determinados | Buenos Aires | Argentina | 153,000 | ARS | 100.00 | Iveco Argentina S.A. | 99.600 | |
| | | | | | | Fiat Argentina S.A. | 0.400 | |
| Iveco S.P.R.L. | Kinshasa | Congo (Dem. Rep. Congo) | 340,235,000 | CDF | 100.00 | Iveco S.p.A. | 99.992 | |
| | | | | | | Astra Veicoli Industriali S.p.A. | 0.008 | |
Components | | | | | | | | |
| Cofap Fabricadora de Pecas Ltda | Santo Andre | Brazil | 62,838,291 | BRL | 68.26 | Magneti Marelli do Brasil Industria e Comercio SA | 68.350 | |
Production Systems | | | | | | | | |
| Comau AGS s.r.l. | Grugliasco | Italy | 103,100 | EUR | 100.00 | Comau S.p.A. | 100.000 | |
| Comau Service U.K. Ltd | Watford | United Kingdom | 260,000 | GBP | 100.00 | Comau S.p.A. | 100.000 | |
Holding companies and Other companies | | | | | | | |
| Centro Studi sui Sistemi di Trasporto-CSST S.p.A. | Turin | Italy | 520,000 | EUR | 89.92 | Fiat Group Automobiles S.p.A. | 49.000 | |
| | | | | | | Iveco S.p.A. | 30.000 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 11.000 | |
| Cromos Consulenza e Formazione S.r.l. in liquidation | Turin | Italy | 13,000 | EUR | 76.00 | Business Solutions S.p.A. | 76.000 | |
| European Engine Alliance EEIG | Basildon | United Kingdom | 0 | GBP | 63.15 | CNH U.K. Limited | 33.333 | |
| | | | | | | Iveco S.p.A. | 33.333 | |
| Fiat (China) Business Co., Ltd. | Beijing | People's Rep.of China | 500,000 | USD | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Isvor Dealernet S.r.l. in liquidation | Turin | Italy | 10,000 | EUR | 99.38 | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 80.000 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 20.000 | |
| SGR-Sociedad para la Gestion de Riesgos S.A. | Buenos Aires | Argentina | 10,000 | ARS | 99.96 | Rimaco S.A. | 99.960 | |
| Sistemi Ambientali S.p.A. in liquidation | Rivoli | Italy | 9,544,080 | EUR | 99.79 | Fiat Partecipazioni S.p.A. | 99.785 | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Subsidiaries valued at cost | | | | | | | | |
Automobiles | | | | | | | | |
| Fiat Auto Espana Marketing Instituto Agrupacion de Interes Economico | Alcalá De Henares | Spain | 30.051 | EUR | 95.00 | Fiat Group Automobiles Spain S.A. | 95.000 | |
| Fiat Auto Marketing Institute (Portugal) ACE | Alges | Portugal | 15,000 | EUR | 80.00 | Fiat Group Automobiles Portugal, S.A. | 80.000 | |
| I.T.C.A. Produzione S.p.A. | Grugliasco | Italy | 10,000,000 | EUR | 100.00 | I.T.C.A. Tools S.p.A. | 100.000 | |
| I.T.C.A. S.p.A. | Grugliasco | Italy | 2,000,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 100.000 | |
| I.T.C.A. Tools S.p.A. | Grugliasco | Italy | 10,000,000 | EUR | 100.00 | I.T.C.A. S.p.A. | 100.000 | |
| New Business 18 S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | ABARTH & C. S.p.A. | 100.000 | |
| Nuove Iniziative Finanziarie 2 S.r.l. | Turin | Italy | 25,000 | EUR | 100.00 | Fiat Group Automobiles S.p.A. | 99.000 | |
| | | | | | | Fidis S.p.A. | 1.000 | |
| (*) Powertrain India Pvt. Ltd. in liquidation | Mumbai | India | 101,000 | INR | 100.00 | Fiat India Automobiles Private Limited | 100.000 | |
| Sistemas & Componentes Mecanicos - S.C.M. Industria e Comercio Ltda | Sete Lagoas | Brazil | 74,772,257 | BRL | 100.00 | Sistemas de Comandos Mecanicos - S.C.M. Industria e Comercio LTDA. | 100.000 | |
| Sistemas de Comandos Mecanicos - S.C.M. Industria e Comercio LTDA. | Sete Lagoas | Brazil | 141,362,320 | BRL | 100.00 | Fiat Automoveis S.A. - FIASA | 100.000 | |
| Turinauto S.P.A. | Turin | Italy | 510,000 | EUR | 100.00 | I.T.C.A. S.p.A. | 100.000 | |
Ferrari | | | | | | | | |
| Scuderia Ferrari Club S.c. a r.l. | Maranello | Italy | 105,000 | EUR | 81.28 | Ferrari S.p.A. | 95.619 | |
Agricultural and Construction Equipment | | | | | | | |
| Austoft Industries Limited | St. Marys | Australia | 0 | AUD | 89.45 | CNH Australia Pty Limited | 100.000 | |
| Brim Oregon, Inc. | Wilmington | U.S.A. | 500,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case Construction Equipment, Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| Case Credit Australia Investments Pty Ltd | St. Marys | Australia | 0 | AUD | 89.45 | CNH Australia Pty Limited | 100.000 | |
| Case Credit Wholesale Pty. Limited | St. Marys | Australia | 0 | AUD | 89.45 | CNH Australia Pty Limited | 100.000 | |
| Case IH Agricultural Equipment, Inc. | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| CNH Capital Canada Insurance Agency Ltd. | Calgary | Canada | 1 | CAD | 89.45 | CNH Canada, Ltd. | 100.000 | |
| Fermec North America Inc. | Wilmington | U.S.A. | 5 | USD | 89.45 | CNH America LLC | 100.000 | |
| International Harvester Company | Wilmington | U.S.A. | 1,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| J.I. Case Company Limited | Basildon | United Kingdom | 2 | GBP | 89.45 | Case United Kingdom Limited | 100.000 | |
| Mass-Conn Equipment, Inc. | Wilmington | U.S.A. | 500,000 | USD | 89.45 | CNH America LLC | 100.000 | |
| New Holland Agricultural Equipment S.p.A. | Turin | Italy | 120,000 | EUR | 89.45 | CNH Italia s.p.a. | 100.000 | |
| New Holland Construction Equipment S.p.A. | Turin | Italy | 120,000 | EUR | 89.45 | CNH Italia s.p.a. | 100.000 | |
| RosCaseMash | Saratov | Russia | 0 | RUB | 34.22 | Case Equipment Holdings Limited | 38.250 | 51.000 |
Trucks and Commercial Vehicles | | | | | | | | |
| Consorzio per la Formazione Commerciale Iveco-Coforma | Turin | Italy | 51.646 | EUR | 59.92 | Iveco S.p.A. | 50.000 | |
| | | | | | | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 10.000 | |
| Iran Magirus-Deutz | Teheran | Iran | 180,000,000 | IRR | 100.00 | Iveco Magirus AG | 100.000 | |
| Irisbus North America Limited Liability Company | Las Vegas | U.S.A. | 20,000 | USD | 100.00 | Iveco France | 100.000 | |
| Iveco Motors of China Limited | Shanghai | People's Rep.of China | 300,000 | USD | 100.00 | Iveco S.p.A. | 100.000 | |
| M.R. Fire Fighting International S.A. | Brasov | Romenia | 35,000,000 | RON | 75.88 | Iveco Magirus Brandschutztechnik GmbH | 74.000 | |
| | | | | | | Brandschutztechnik Gorlitz GmbH | 1.000 | |
| | | | | | | Iveco Magirus Fire Fighting GmbH | 1.000 | |
Components | | | | | | | | |
| Automotive Lighting Japan K.K. | KohoKu-Ku-Yokohama | Japan | 10,000,000 | JPY | 99.99 | Automotive Lighting Reutlingen GmbH | 100.000 | |
| Electromechanical Racing S.r.l. | Corbetta | Italy | 100,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Fast Buyer Middle East A.S. | Bursa | Turkey | 350,230 | TRY | 93.95 | Mako Elektrik Sanayi Ve Ticaret A.S. | 98.900 | |
| Magneti Marelli Automotive Components (India) Limited in liquidation | Pune | India | 125,000,000 | INR | 99.99 | Magneti Marelli Components B.V. in liquidation | 100.000 | |
| Magneti Marelli Electronic Systems (Asia) Limited | Hong Kong | People's Rep.of China | 10,000 | HKD | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 99.990 | |
| | | | | | | Magneti Marelli France S.a.s. | 0.010 | |
| Magneti Marelli Slovakia s.r.o. | Bratislava | Slovack Republic | 200,000 | SKK | 99.99 | Magneti Marelli Sistemi Elettronici S.p.A. | 100.000 | |
| Sistemi Comandi Meccanici Otomotiv Sanayi Ve Ticaret A.S. | Bursa | Turkey | 90,000 | TRY | 99.95 | Magneti Marelli Holding S.p.A. | 99.956 | |
| Sistemi Comandi Meccanici S.C.M. S.p.A. | Corbetta | Italy | 1,800,000 | EUR | 99.99 | Magneti Marelli Holding S.p.A. | 100.000 | |
| Yorka Northamerica Corp. | Southfield | U.S.A. | 10,000 | USD | 99.99 | Automotive Lighting Rear Lamps Mexico S. de r.l. de C.V. | 100.000 | |
Production Systems | | | | | | | | |
| Comau (Shanghai) International Trading Co. Ltd. | Shanghai | People's Rep.of China | 200,000 | USD | 100.00 | Comau S.p.A. | 100.000 | |
| Comau U.K. Limited | Telford | United Kingdom | 2,500 | GBP | 100.00 | Comau S.p.A. | 100.000 | |
| Consorzio Fermag in liquidation | Milan | Italy | 144.608 | EUR | 68.00 | Comau S.p.A. | 68.000 | |
| Synesis | Modugno | Italy | 20,000 | EUR | 75.00 | Comau S.p.A. | 75.000 | |
Holding companies and Other companies | | | | | | | |
| Fiat Common Investment Fund Limited | London | United Kingdom | 2 | GBP | 100.00 | Fiat U.K. Limited | 100.000 | |
| Fiat Gra.De EEIG | Watford | United Kingdom | 0 | GBP | 97.41 | Fiat Group Automobiles S.p.A. | 46.000 | |
| | | | | | | CNH Global N.V. | 23.000 | |
| | | | | | | Fiat Netherlands Holding N.V. | 23.000 | |
| | | | | | | Business Solutions S.p.A. | 2.000 | |
| | | | | | | Fiat S.p.A. | 2.000 | |
| | | | | | | Comau S.p.A. | 1.000 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 1.000 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 1.000 | |
| | | | | | | Teksid S.p.A. | 1.000 | |
| Fiat Oriente S.A.E. in liquidation | Cairo | Egypt | 50,000 | EGP | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Fides Corretagens de Securos Ltda | Nova Lima | Brazil | 365.525 | BRL | 100.00 | Rimaco S.A. | 99.998 | |
| Isvor Fiat India Private Ltd. in liquidation | New Delhi | India | 1,750,000 | INR | 99.23 | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 100.000 | |
| MC2 - Media Communications S.p.A. | Turin | Italy | 219.756 | EUR | 51.00 | Fiat Partecipazioni S.p.A. | 51.000 | |
| New Business 19 S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| New Business 20 S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Nuova Immobiliare nove S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Nuova Immobiliare Otto S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Nuova Immobiliare Tre S.p.A. | Turin | Italy | 120,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| Nuove Iniziative Finanziarie 4 S.r.l. | Turin | Italy | 50,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| | | | | | | | | |
| (*) Assets held for sale. | | | | | | | | |
Subsidiaries valued at cost (continued) | | | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
| Orione-Società Industriale per la Sicurezza e la Vigilanza Consortile per Azioni | Turin | Italy | 120,000 | EUR | 98.85 | Fiat Partecipazioni S.p.A. | 77.822 | |
| | | | | | | Fiat S.p.A. | 18.003 | |
| | | | | | | Editrice La Stampa S.p.A. | 0.439 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 0.439 | |
| | | | | | | CNH Italia s.p.a. | 0.220 | |
| | | | | | | Comau S.p.A. | 0.220 | |
| | | | | | | Ferrari S.p.A. | 0.220 | |
| | | | | | | Fiat Finance S.p.A. | 0.220 | |
| | | | | | | Fiat Powertrain Technologies SpA | 0.220 | |
| | | | | | | Fiat Services S.p.A. | 0.220 | |
| | | | | | | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 0.220 | |
| | | | | | | Iveco S.p.A. | 0.220 | |
| | | | | | | Magneti Marelli Holding S.p.A. | 0.220 | |
| | | | | | | Sisport Fiat S.p.A. - Società sportiva dilettantistica | 0.220 | |
| PDL Services S.r.l. | Turin | Italy | 105,000 | EUR | 100.00 | Fiat Partecipazioni S.p.A. | 100.000 | |
| | | | | | | | | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Associated companies accounted for using the equity method | | | | | | |
Automobiles | | | | | | | | |
| Fiat Auto Kreditbank GmbH | Vienna | Austria | 5,000,000 | EUR | 25.00 | Fidis S.p.A. | 25.000 | |
| Fidis Bank G.m.b.H. | Vienna | Austria | 4,740,000 | EUR | 25.00 | Fidis S.p.A. | 25.000 | |
| Targasys S.r.l. | Turin | Italy | 4,322,040 | EUR | 40.00 | Fidis S.p.A. | 40.000 | |
| Utymat S.A. | Santa Margarita I Els Monjos | Spain | 2,644,453 | EUR | 40.00 | I.T.C.A. S.p.A. | 40.000 | |
Ferrari | | | | | | | | |
| Ferrari Maserati Cars International Trading (Shanghai) Co. Ltd. | Shanghai | People's Rep.of China | 3,000,000 | USD | 34.00 | Ferrari S.p.A. | 40.000 | |
| Senator Software Gmbh | Munich | Germany | 25.565 | EUR | 37.49 | Ferrari Financial Services AG | 49.000 | |
Agricultural and Construction Equipment | | | | | | | |
| Al-Ghazi Tractors Ltd | Karachi | Pakistan | 214,682,226 | PKR | 38.62 | CNH Global N.V. | 43.169 | |
| CNH Capital Europe S.a.S. | Puteaux | France | 88,482,297 | EUR | 44.64 | CNH Global N.V. | 49.900 | |
| Employers Health Initiatives LLC | Wilmington | U.S.A. | 0 | USD | 44.73 | CNH America LLC | 50.000 | |
| Kobelco Construction Machinery Co. Ltd. | Tokyo | Japan | 16,000,000,000 | JPY | 17.89 | CNH Global N.V. | 20.000 | |
| New Holland Finance Ltd | Basingstoke | United Kingdom | 2,900,001 | GBP | 43.83 | CNH Global N.V. | 49.000 | |
| Rathell Farm Equipment Company Inc. | Wilmington | U.S.A. | 640,000 | USD | 38.70 | CNH America LLC | 43.266 | |
Powertrain Technologies | | | | | | | | |
| Powertrain Industrial Services S.C.R.L. in liquidation | Turin | Italy | 100,000 | EUR | 50.00 | Fiat Powertrain Technologies SpA | 25.000 | |
| | | | | | | FMA - Fabbrica Motori Automobilistici S.r.l. | 25.000 | |
Trucks and Commercial Vehicles | | | | | | | | |
| GEIE V.IV.RE | Boulogne | France | 0 | EUR | 50.00 | Iveco S.p.A. | 50.000 | |
| Haveco Automotive Transmission Co. Ltd. | Zhajiang | People's Rep.of China | 200,010,000 | CNY | 33.33 | Iveco S.p.A. | 33.330 | |
| Iveco Finance Holdings Limited | Basingstoke | United Kingdom | 1,000 | EUR | 49.00 | Iveco Partecipazioni Finanziarie S.r.l. | 49.000 | |
| Iveco Uralaz Ltd. | Miass | Russia | 65,255,056 | RUB | 33.33 | Iveco S.p.A. | 33.330 | |
| Iveco-Motor Sich, Inc. | Zaporozhye | Ukraine | 26,568,000 | UAH | 38.62 | Iveco S.p.A. | 38.618 | |
| Otoyol Sanayi A.S. | Samandira-Kartal/Istanbul | Turkey | 52,674,386 | TRY | 27.00 | Iveco S.p.A. | 27.000 | |
| V.IVE.RE Gruppo Europeo di Interesse Economico | Turin | Italy | 0 | EUR | 50.00 | Iveco S.p.A. | 50.000 | |
Production Systems | | | | | | | | |
| Gonzalez Production Systems Inc. | Pontiac | U.S.A. | 10,000 | USD | 49.00 | Comau Pico Holdings Corporation | 49.000 | |
| G.P. Properties I L.L.C. | Pontiac | U.S.A. | 10,000 | USD | 49.00 | Comau Pico Holdings Corporation | 49.000 | |
Publishing and Communications | | | | | | | | |
| Editalia S.r.l. | Caserta | Italy | 2,833,050 | EUR | 45.00 | Editrice La Stampa S.p.A. | 45.000 | |
| Edizioni Dost S.r.l. | Bologna | Italy | 1,042,914 | EUR | 40.00 | Editrice La Stampa S.p.A. | 40.000 | |
| Società Editrice Mercantile S.r.l. | Genoa | Italy | 4,247,000 | EUR | 40.00 | Editrice La Stampa S.p.A. | 40.000 | |
| To-dis S.r.l. | Turin | Italy | 510,000 | EUR | 45.00 | Editrice La Stampa S.p.A. | 45.000 | |
Holding companies and Other companies | | | | | | | |
| Livingstone Motor Assemblers Ltd. | Livingstone | Zambia | 20,000,000 | ZMK | 20.00 | Fiat Partecipazioni S.p.A. | 20.000 | |
| Rizzoli Corriere della Sera MediaGroup S.p.A. | Milan | Italy | 762,019,050 | EUR | 10.09 | Fiat Partecipazioni S.p.A. | 10.093 | 10,497 |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Associated companies valued at cost | | | | | | | |
Automobiles | | | | | | | | |
| Consorzio per la Reindustrializzazione Area di Arese S.r.l. in liquidation | Arese | Italy | 1,020,000 | EUR | 30.00 | Fiat Group Automobiles S.p.A. | 30.000 | |
| Fidis Rent GmbH | Frankfurt | Germany | 50,000 | EUR | 49.00 | Fiat Teamsys GmbH | 49.000 | |
| Turin Auto Private Ltd. in liquidation | Mumbai | India | 43,300,200 | INR | 50.00 | I.T.C.A. S.p.A. | 50.000 | |
Ferrari | | | | | | | | |
| Iniziativa Fiorano S.r.l. | Modena | Italy | 90,000 | EUR | 28.33 | Ferrari S.p.A. | 33.333 | |
Agricultural and Construction Equipment | | | | | | | |
| Nido Industria Vallesina | Ancona | Italy | 53.903 | EUR | 34.64 | CNH Italia s.p.a. | 38.728 | |
Trucks and Commercial Vehicles | | | | | | | | |
| Sotra S.A. | Abidijan | Ivory Coast | 3,000,000,000 | XOF | 39.80 | Iveco France | 39.800 | |
| Trucks & Bus Company | Tajoura | Libya | 96,000,000 | LYD | 25.00 | Iveco España S.L. | 25.000 | |
| Zastava-Kamioni D.O.O. | Kragujevac | Serbia | 1,673,505,893 | YUM | 33.68 | Iveco S.p.A. | 33.677 | |
Components | | | | | | | | |
| Flexider S.p.A. | Turin | Italy | 4,131,655 | EUR | 25.00 | Magneti Marelli Holding S.p.A. | 25.000 | |
| Mars Seal Private Limited | Mumbai | India | 400,000 | INR | 24.00 | Magneti Marelli France S.a.s. | 24.000 | |
| Matay Otomotiv Yan Sanay Ve Ticaret A.S. | Istanbul | Turkey | 2,400,000 | TRY | 28.00 | Magneti Marelli Holding S.p.A. | 28.000 | |
| M.I.P.-Master Imprese Politecnico | Milan | Italy | 20.658 | EUR | 50.00 | Magneti Marelli Holding S.p.A. | 50.000 | |
Production Systems | | | | | | | | |
| Consorzio Generazione Forme-CO.GE.F. | San Mauro Torinese | Italy | 15.494 | EUR | 33.33 | Comau S.p.A. | 33.333 | |
Publishing and Communications | | | | | | | | |
| Le Monde Europe S.A.S. | Paris | France | 5,024,274 | EUR | 48.44 | La Stampa Europe SAS | 48.443 | |
| Le Monde Presse S.A.S. | Paris | France | 7,327,930 | EUR | 27.28 | La Stampa Europe SAS | 27.277 | |
Holding companies and Other companies | | | | | | | |
| Agenzia Internazionalizzazione Imprese Torino S.r.l. in liquidation | Turin | Italy | 102,000 | EUR | 35.00 | Fiat Partecipazioni S.p.A. | 35.000 | |
| Ascai Servizi S.r.l. in liquidation | Rome | Italy | 73.337 | EUR | 25.77 | Isvor Fiat Società consortile di sviluppo e addestramento industriale per Azioni | 25.970 | |
| Ciosa S.p.A. in liquidation | Milan | Italy | 516 | EUR | 25.00 | Fiat Partecipazioni S.p.A. | 25.000 | |
| Consorzio Parco Industriale di Chivasso | Chivasso | Italy | 51,650 | EUR | 27.40 | Fiat Partecipazioni S.p.A. | 23.100 | |
| | | | | | | ABARTH & C. S.p.A. | 4,300 | |
| Consorzio per lo Sviluppo delle Aziende Fornitrici in liquidation | Turin | Italy | 241.961 | EUR | 30.89 | CNH Italia s.p.a. | 10.672 | |
| | | | | | | Fiat Group Automobiles S.p.A. | 10.672 | |
| | | | | | | Iveco S.p.A. | 10.672 | |
| Consorzio Prode | Naples | Italy | 51.644 | EUR | 34.62 | Elasis-Società Consortile per Azioni | 35.000 | |
| Consorzio Scire | Pomigliano d'Arco | Italy | 51.644 | EUR | 49.46 | Elasis-Società Consortile per Azioni | 50.000 | |
| Consorzio Scuola Superiore per l'Alta Formazione Universitaria Federico II | Naples | Italy | 127,500 | EUR | 19.78 | Elasis-Società Consortile per Azioni | 20.000 | |
| FMA-Consultoria e Negocios Ltda | São Paulo | Brazil | 1 | BRL | 50.00 | Fiat do Brasil S.A. | 50.000 | |
| Interfinanziaria S.A. | Paradiso | Switzerland | 1,000,000 | CHF | 33.33 | IHF-Internazionale Holding Fiat S.A. | 33.330 | |
| MB Venture Capital Fund I Participating Company F N.V. | Amsterdam | Netherlands | 50,000 | EUR | 45.00 | Fiat Partecipazioni S.p.A. | 45.000 | |
| Nuova Didactica S.c. a r.l. | Modena | Italy | 112,200 | EUR | 24.89 | Ferrari S.p.A. | 16.364 | |
| | | | | | | CNH Italia s.p.a. | 12.273 | |
| Tecnologie per il Calcolo Numerico-Centro Superiore di Formazione S.c. a r.l. | Trento | Italy | 100,000 | EUR | 24.82 | C.R.F. Società Consortile per Azioni | 25.000 | |
| Zetesis S.p.A. in liquidation | Milan | Italy | 283,150 | EUR | 40.00 | Fiat Partecipazioni S.p.A. | 40.000 | |
Name | Registered office | Country | Capital stock | Currency | % of Group consoli-dation | Interest held by | % interest held | % of voting rights |
Other companies valued at cost | | | | | | | | |
Agricultural and Construction Equipment | | | | | | | |
| Polagris S.A. | Pikieliszki | Lithuania | 1,133,400 | LTL | 9.89 | CNH Polska Sp. z o.o. | 11.054 | |
Trucks and Commercial Vehicles | | | | | | | | |
| Consorzio Spike | Genoa | Italy | 90,380 | EUR | 15.00 | Iveco S.p.A. | 15.000 | |
Holding companies and Other companies | | | | | | | |
| Centro di Eccellenza su Metodi e Sistemi per le Aziende Competitive | Fisciano | Italy | 225,000 | EUR | 15.83 | Elasis-Società Consortile per Azioni | 16.000 | |
| Consorzio Calef (Consorzio per la ricerca e lo sviluppo delle applicazioni industriali laser e del fascio elettronico) | Rotondella | Italy | 83.445 | EUR | 10.44 | Elasis-Società Consortile per Azioni | 5.319 | |
| | | | | | | C.R.F. Società Consortile per Azioni | 5.213 | |
| Consorzio Lingotto | Turin | Italy | 9.612 | EUR | 16.90 | Fiat Attività Immobiliari S.p.A. | 11.500 | |
| | | | | | | Fiat S.p.A. | 5.400 | |
| Consorzio Technapoli | Naples | Italy | 1,626,855 | EUR | 10.99 | Elasis-Società Consortile per Azioni | 11.110 | |
| Ercole Marelli & C. S.p.A. in liquidation | Milan | Italy | 9,633,000 | EUR | 13.00 | Fiat Partecipazioni S.p.A. | 13.000 | |
| Euromedia Luxembourg One S.A. in liquidation | Luxembourg | Luxembourg | 44,887,500 | USD | 14.29 | Fiat Netherlands Holding N.V. | 14.286 | |
| Expo 2000 - S.p.A. | Turin | Italy | 2,205,930 | EUR | 18.95 | Fiat Partecipazioni S.p.A. | 18.949 | |
| Fin.Priv. S.r.l. | Milan | Italy | 20,000 | EUR | 14.29 | Fiat S.p.A. | 14.285 | |
| Sorore Ricerche per Santa Maria della Scala | Siena | Italy | 9.296 | EUR | 16.66 | Fiat Partecipazioni S.p.A. | 16.663 | |
| Torino Zerocinque Investment S.p.A. | Milan | Italy | 2,755,000 | EUR | 17.62 | Fiat Partecipazioni S.p.A. | 17.620 | |
| Torino Zerocinque Trading S.p.A. | Milan | Italy | 2,425,000 | EUR | 15.04 | Fiat Partecipazioni S.p.A. | 15.040 | |
Fiat S.p.A. | Financial Review and Interim Financial Statements at June 30, 2007 |
Financial Review of FIAT S.p.A.
In compliance with Consob Regulation No. 11971 of May 14, 1999 and subsequent amendments, the financial statements of the Parent Company Fiat S.p.A. for the six months ended June 30, 2007, reported in the following pages and summarised and commented upon in this section, have been prepared in accordance with accounting principles and policies consistent with those used in the preparation of the company’s annual financial statements at December 31, 2006, to which reference should be made, and with those which will be used in the preparation of the company’s annual financial statements at December 31, 2007.
In this respect, from 2005, the Fiat Group prepares its consolidated financial statements in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”), in compliance with European Regulation no. 1606 of July 19, 2002. On the basis of national laws implementing that Regulation, the Parent Company Fiat S.p.A. began presenting its separate financial statements in accordance with IFRS in 2006, reporting these together with the comparative figures for the previous year.
Operating Performance
The Parent Company earned net income of 370 million euros in the first half of 2007, 97 million euros higher than in the corresponding period of 2006.
The company’s Income Statement is summarised in the following table:
| (in millions of euros) | 1st Half 2007 | 1st Half 2006 |
| Investment income | 368 | 256 |
| - Dividends | 421 | | 348 | |
| - Impairment losses | (53) | | (92) | |
| - Gains (losses) on disposal of investments | - | | - | |
| Personnel and operating costs net of other revenues | (43) | (33) |
| Financial income (expenses) | 46 | 51 |
| Income taxes | (1) | (1) |
| Net income | 370 | 273 |
Investment income totalled 368 million euros, compared with investment income of 256 million euros in the first half of 2006. This item, consisting of dividends received during the period net of impairment losses on investments, may be analysed more specifically as follows:
§ Dividends totalled 421 million euros and are almost completely related to dividends received from subsidiaries, mainly from IHF – Internazionale Holding Fiat S.A. (271 million euros), Ferrari S.p.A. (64 million euros) and Fiat Finance S.p.A. (60 million euros). In the corresponding period of 2006 dividends received totalled 348 million euros, mainly from Internazionale Holding Fiat S.A. (259 million euros) and Fiat Finance S.p.A. (75 million euros).
§ Impairment losses of 53 million euros relate to the investment in Comau S.p.A. The carrying amount of the investment (the company operates in a sector still going through a restructuring process which commenced in the second half of 2006) was tested for impairment using the same methodology as that employed for the preparation of the 2006 financial statements. There were no indications that any of the other investments in subsidiaries may have been impaired and accordingly impairment testing will be carried out for these assets only at the time of the preparation of the annual financial statements, when any reversals of impairment losses will also be recognised if appropriate.
Net impairment losses of 92 million euros recognised in the first half of 2006 regarded the investment in Fiat Partecipazioni S.p.A. and resulted from the unfavourable performance of its subsidiaries in the Auto Sector.
§ There were no significant gains or losses on the disposal of investments during the period.
Personnel and operating costs net of other revenues totalled 43 million euros, compared with 33 million euros in the first half of 2006.
Specifically:
§ Personnel and operating costs, totalling 110 million euros, comprise 25 million euros in personnel costs and 85 million euros in other operating costs, which include the costs for services, amortisation and depreciation and other operating costs. There was an overall increase of 37 million euros in these costs compared to those incurred in the first half of 2006, of which an amount of 22 million euros relates to the recognition as required by IFRS of the non-cash expense arising from the latest approved stock option plan and 15 million euros to increased costs for services.
The average headcount was 119 employees, compared with an average of 137 employees in the first half of 2006.
§ Other revenues, totalling 67 million euros, principally refer to the change in contract work in progress (agreements between Fiat S.p.A. and Treno Alta Velocità – T.A.V. S.p.A.), which is measured by applying the percentage of completion to the total contractual value of the work, to royalties for the use of the Fiat trademark, calculated as a percentage of the revenues generated by the Group companies that use it, and the services of executives at the principal companies of the Group. There was an overall increase of 27 million euros in these revenues compared to those earned in the first half of 2006, caused by a rise in the charges applied for the use of the trademark and increased recoveries.
Net financial income amounts to 46 million euros. The income of 160 million euros arising from the remeasurement at fair value of the two equity swap contracts on Fiat shares which expire in 2007, entered to hedge the risk of a rise in the share price above the exercise price of the stock options granted to the Chief Executive Officer in 2004 and 2006, more than compensated financial expenses of 126 million euros. Net financial income of 51 million euros recorded in the first half of 2006 arose from the interest income related to the liquid funds held for a major portion of the period.
Income taxes of 1 million euros relate to deferred taxation. Income tax expense of 1 million euros in the first half of 2006 regarded IRAP current taxation that had accrued during the period.
Net income of 370 million euros was earned in the first half of 2007 (against 273 million euros in the first half of 2006). Net income for the full year is in any case expected to be at a level sufficient to provide remuneration to stockholders in line with the previously announced dividend policy, under which it is the intention of Fiat to distribute about 25% of its consolidated net income to stockholders in the period from 2007 to 2010.
Balance Sheet
Highlights of the Parent Company’s Balance Sheet are illustrated in the following table:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Non-current assets | | 13,250 | | 14,559 |
| - of which: Investments | 13,191 | | 14,500 | |
| Working capital | 295 | 167 |
Total net invested capital | 13,545 | 14,726 |
Stockholders’ equity | 10,275 | 10,374 |
Net debt (liquid funds) | 3,270 | 4,352 |
The net decrease in investments of 1,309 million euros compared to the balance at December 31, 2006 is mostly due to the distribution of capital reserves of 1,300 million euros by the subsidiary Fiat Partecipazioni S.p.A. to its sole stockholder Fiat S.p.A. The other changes include the previously mentioned write down of the investment in Comau S.p.A. net of a recapitalisation of 50 million euros, and the remeasurement at fair value of investments in other companies.
Working capital totalling 295 million euros consists of trade and tax receivables and payables, balances due from and to employees, work in progress on contracts net of advances and provisions. The increase of 128 million euros compared to the balance at December 31, 2006 is principally due to the increase in receivables from the tax authorities relating to the Group consolidated VAT return (a refund has been requested for a large part of this) and the settlement of payables to subsidiaries for consolidated VAT and IRES corporate income tax.
Stockholders’ equity amounted to 10,275 million euros at June 30, 2007, representing a net decrease over the six month period of 99 million euros, which arose from the distribution of dividends for 274 million euros and the purchase of treasury stock for 231 million euros, partially balanced by net income for the period of 370 million euros and by other minor changes.
For a more detailed analysis of changes in stockholders’ equity, reference should be made to the relevant table set out in the following pages as part of the financial statements of the Parent Company Fiat S.p.A.
Net debt at June 30, 2007 totalled 3,270 million euros, a decrease of 1,082 million euros compared to the balance at December 31, 2006, which is principally the result of the repayment of capital reserves by the subsidiary Fiat Partecipazioni S.p.A. discussed earlier, net of other changes. A breakdown of net debt is illustrated in the following table:
| (in millions of euros) | At June 30, 2007 | At December 31, 2006 |
| Current financial receivables, cash and cash equivalents | (239) | (85) |
| Current financial payables | 698 | 1,627 |
| Non-current financial payables | 2,811 | 2,810 |
Net debt (net liquid funds) | 3,270 | 4,352 |
Current financial receivables consist of a balance with the subsidiary Intermap (Nederland) B.V. relating to derivative financial instruments. This balance represents the fair value of the two previously mentioned equity swap contracts on Fiat shares. Current financial payables consist of the overdraft with the subsidiary Fiat Finance S.p.A., as well as payables to factoring companies for advances on receivables. Non-current financial payables consist almost entirely of loans repayable in the 2010-2013 period granted by the subsidiary Fiat Finance S.p.A. at market rates.
For a more detailed analysis of cash flows, reference should be made to the relevant table set out in the following pages as part of the financial statements of the Parent Company Fiat S.p.A.
In conclusion, it is hereby stated that pursuant to the Consob Communication of July 28, 2006 Fiat S.p.A. did not carry out any significant non-recurring transactions or unusual or abnormal operations during the first half of 2007, as defined in that Communication.
Reconciliation between the Parent Company’s equity and its result for the first half of the year
Pursuant to Consob Communication of July 28, 2006, set out below is a reconciliation between the Parent Company’s equity at June 30, 2007 and its result for the first half of the year 2007 with those of the Group (Group interest):
| | Stockholders’ equity at | Net result First-Half | Stockholders’ equity at | Net result 2006 |
(in millions of euros) | June 30, 2007 | 2007 | December 31, 2006 |
Financial statements of Fiat S.p.A. | 10,275 | 370 | 10,374 | 2,343 |
| Elimination of the carrying amounts of consolidated investments and the respective dividends from the financial statements of Fiat S.p.A. | (12,919) | (421) | (14,211) | (346) |
| Elimination of the reversal of impairment losses (net of recognised impairment losses) of consolidated investments | - | 53 | - | (2,099) |
| Equity and results of consolidated subsidiaries | 12,805 | 974 | 13,404 | 1,229 |
| Consolidation adjustments : | | | | |
| Elimination of intercompany profits and losses on the sale of investments | - | (20) | - | (41) |
| Elimination of intercompany profits and losses in inventories and fixed assets and other adjustments | (222) | (5) | (205) | (21) |
Consolidated financial statements (Group interest) | 9,939 | 951 | 9,362 | 1,065 |
Income Statement (*)
| (in millions of euros) | | 1st Half 2007 | | 1st Half 2006 |
| Dividends and other income from investments | | 421 | | 348 |
| (Impairment losses) reversal of impairment losses on investments | | (53) | | (92) |
| Gains (losses) on the disposal of investments | | - | | - |
| Other operating income | | 67 | | 40 |
| Personnel costs | | (25) | | (19) |
| Other operating costs | | (85) | | (54) |
| Financial income (expenses) | | 46 | | 51 |
Result before taxes | | 371 | | 274 |
| Income taxes | | 1 | | 1 |
Result from continuing operations | | 370 | | 273 |
| Result from discontinued operations | | - | | - |
Net result for the period | | 370 | | 273 |
(*) Pursuant to Consob Resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Income Statement of Fiat S.p.A. are included in the specific income statement schedule reported in the following pages.
Statement of total recognised income and expenses for the first half of 2007 and 2006
| (in millions of euros) | | | 1st Half 2007 | | 1st Half 2006 |
| Gains (losses) recognised directly in the | | | | | |
| fair value reserve (investments in other companies) | | | (16) | | (11) |
Gains (losses) recognised directly in equity | | | (16) | | (11) |
| Net result for the period | | | 370 | | 273 |
Total of recognised income (expenses) for the period | | | 354 | | 262 |
Balance Sheet (*)
| (in millions of euros) | | | At June 30, 2007 | | At December 31, 2006 |
ASSETS | | | | | |
Non-current assets | | | | | |
| Intangible assets | | | 1 | | 1 |
| Property, plant and equipment | | | 35 | | 37 |
| Investments | | | 13,191 | | 14,500 |
| Other financial assets | | | 21 | | 20 |
| Other non-current assets | | | 2 | | 1 |
| Deferred tax assets | | | - | | - |
Total Non-current assets | | | 13,250 | | 14,559 |
Current assets | | | | | |
| Inventories | | | - | | - |
| Trade receivables | | | 242 | | 155 |
| Current financial receivables | | | 238 | | 84 |
| Other current receivables | | | 651 | | 626 |
| Cash and cash equivalents | | | 1 | | 1 |
Total Current assets | | | 1,132 | | 866 |
| Assets held for sale | | | - | | - |
TOTAL ASSETS | | | 14,382 | | 15,425 |
STOCKHOLDERS' EQUITY AND LIABILITIES | | | | | |
Stockholders' equity | | | | | |
| Capital stock | | | 6,377 | | 6,377 |
| Additional paid-in capital | | | 1,541 | | 1,541 |
| Legal reserve | | | 536 | | 447 |
| Other reserves and retained earnings | | | 1,694 | | (310) |
| Treasury stock | | | (243) | | (24) |
| Net result for the period | | | 370 | | 2,343 |
Total Stockholders' equity | | | 10,275 | | 10,374 |
Non-current liabilities | | | | | |
| Provisions for employee benefits and other non-current provisions | | | 21 | | 18 |
| Non-current financial payables | | | 2,811 | | 2,810 |
| Other non-current liabilities | | | 16 | | 20 |
| Deferred tax liabilities | | | 4 | | 3 |
Total Non-current liabilities | | | 2,852 | | 2,851 |
Current liabilities | | | | | |
| Provisions for employee benefits and other current provisions | | | 6 | | 27 |
| Trade payables | | | 244 | | 185 |
| Current financial payables | | | 698 | | 1,627 |
| Other payables | | | 307 | | 361 |
Total Current liabilities | | | 1,255 | | 2,200 |
| Liabilities held for sale | | | - | | - |
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES | | | 14,382 | | 15,425 |
(*) Pursuant to Consob Resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Balance Sheet of Fiat S.p.A. are included in the specific balance sheet schedule reported in the following pages.
Statement of Cash Flows
| (in millions of euros) | | 1st Half 2007 | | 1st Half 2006 |
A) | Cash and cash equivalents at beginning of period | | 1 | | 1 |
B) | Cash flows from (used in) operating activities during the period: | | | | |
| | Net result for the period | | 370 | | 273 |
| | Amortisation and depreciation | | 1 | | 1 |
| | Non-cash stock option costs | | 24 | | 3 |
| | (Impairment losses) reversals of impairment losses of investments | | 53 | | 92 |
| | Capital losses/gains on the disposal of investments | | - | | - |
| | Change in provisions for employee benefits and other provisions | | (18) | | (9) |
| | Change in deferred taxes | | 1 | | - |
| | Change in working capital | | (111) | | 101 |
| | Total | | 320 | | 461 |
C) | Cash flows from (used in) investment activities: | | | | |
| | Investments: | | | | |
| | Recapitalisations of subsidiaries | | (50) | | (6,121) |
| | Acquisitions | | - | | (44) |
| | Other investments (tangible and intangible assets and other financial assets) | | (1) | | - |
| | Divestitures of investments due to: | | | | |
| | Distribution by a subsidiary of capital reserves | | 1,300 | | - |
| | Proceeds from sale | | 1 | | - |
| | Other divestitures (proceeds from the sale of tangible and intangible assets and other) | | - | | - |
| | Total | | 1,250 | | (6,165) |
D) | Cash flows from (used in) financing activities: | | | | |
| | Change in current financial receivables | | (154) | | 3,035 |
| | Change in non-current financial payables | | 1 | | 2,800 |
| | Change in current financial payables | | (929) | | (131) |
| | Capital increase | | - | | - |
| | Purchase of treasury stock | | (231) | | - |
| | Sale of treasury stock | | 17 | | - |
| | Dividend distribution | | (274) | | - |
| | Total | | (1,570) | | 5,704 |
E) | Total change in cash and cash equivalents | | - | | - |
F) | Cash and cash equivalents at end of period | | 1 | | 1 |
Statement of Changes in Stockholders’ Equity
| (in millions of euros) | Capital stock | Additional paid-in capital | Legal reserve | Reserve under law no. 413/1991 | Reserve for treasury stock purchases | Reserve for treasury stock in portfolio | Extraordinary reserve | Retained earnings (losses) | Gains (losses) recognised directly in equity | Stock option reserve | Treasury stock (3) | Net result for the period | Total Stockholders’ equity |
Balances at December 31, 2006 | 6,377 | 1,541 | 447 | 23 | | 24 | 6 | (553) | 163 | 27 | (24) | 2,343 | 10,374 |
| Capital increases (1) | - | - | | | | | | | | | | | - |
| Allocation of previous year net income: | | | | | | | | | | | | | |
| - to absorb retained losses fully | | | | | | | | 553 | | | | (553) | - |
| - to the legal reserve | | | 89 | | | | | | | | | (89) | - |
| - dividend distribution to stockholders | | | | | | | | | | | | (274) | (274) |
| - balance to retained earnings | | | | | | | | 1,427 | | | | (1,427) | - |
| Establishment of a reserve for treasury stock purchases (2) | | | | | 1,379 | | | (1,379) | | | | | - |
| Purchase of treasury stock | | | | | (231) | 231 | | | | | (231) | | (231) |
| Sale of treasury stock | | | | | | (12) | 17 | | | | 12 | | 17 |
| Fair value adjustments recognised directly in equity | | | | | | | | | (16) | | | | (16) |
| Valuation of stock option plans | | | | | | | | | | 35 | | | 35 |
| Net result for the period | | | | | | | | | | | | 370 | 370 |
Balances at June 30, 2007 | 6,377 | 1,541 | 536 | 23 | 1,148 | 243 | 23 | 48 | 147 | 62 | (243) | 370 | 10,275 |
(1) On February 1, 2007, as the result of the exercising of the rights included in 4,676 “FIAT ordinary warrants 2007” (issued as part of the capital increase of December 10, 2001), 1,169 shares (each of nominal value 5 euros) were issued at a total price of 34,326.51 euros. Subscribed and paid-in capital increased as a consequence by 5,845 euros (from 6,377,257,130 euros to 6,377,262,975 euros). The difference of 28,481.51 euros was recognised as share premium in additional paid-in capital.
(2) As per the resolution passed by stockholders in a general meeting of April 5, 2007, up to a maximum of 1.4 billion euros inclusive of the already restricted reserve of approximately 21 million euros, for treasury stock of 3,344,958 ordinary shares held in portfolio at that date.
(3) Treasury stock at June 30, 2007 consisted of 13,467,127 ordinary shares for a nominal value of approximately 67 million euros (at December 31, 2006: 3,773,458 ordinary shares for a total nominal value of approximately 19 million euros).
| (in millions of euros) | Capital stock | Additional paid-in capital | Legal reserve | Reserve under law no. 413/1991 | Reserve for treasury stock in portfolio | Extraordinary reserve | Retained earnings (losses) | Gains (losses) recognised directly in equity | Stock option reserve | Treasury stock (4) | Net result for the period | Total Stockholders’ equity |
Balances at December 31, 2005 | 6,377 | 682 | 447 | 23 | 28 | - | (811) | 134 | 16 | (28) | 1,117 | 7,985 |
| Allocation of previous year net income: | | 859 | | | | | 258 | | | | (1,117) | - |
| Sale of treasury stock | | | | | - | | | | | - | | - |
| Fair value adjustments recognised directly in equity | | | | | | | | (11) | | | | (11) |
| Valuation of stock option plans | | | | | | | | | 3 | | | 3 |
| Net result for the period | | | | | | | | | | | 273 | 273 |
Balances at June 30, 2006 | 6,377 | 1,541 | 447 | 23 | 28 | - | (553) | 123 | 19 | (28) | 273 | 8,250 |
(4) Treasury stock at June 30, 2006 consisted of 4,314,458 ordinary shares for a total nominal value of approximately 22 million euros (at December 31, 2005: 4,331,708 ordinary shares for a total nominal value of approximately 22 million euros).
Income Statement
pursuant to Consob Resolution no. 15519 of July 27, 2006
| (in millions of euros) | 1st Half 2007 | of which Related parties | 1st Half 2006 | of which Related parties |
| Dividends and other income from investments | 421 | 421 | 348 | 346 |
(Impairment losses) reversal of impairment losses of investments | (53) | | (92) | |
| Gains (losses) on the disposal of investments | - | | - | |
| Other operating income | 67 | 31 | 40 | 13 |
| Personnel costs | (25) | (10) | (19) | (11) |
| Other operating costs | (85) | (45) | (54) | (30) |
| Financial income (expenses) | 46 | 52 | 51 | 56 |
Result before taxes | 371 | | 274 | |
| Income taxes | 1 | | 1 | |
Result from continuing operations | 370 | | 273 | |
| Result from discontinued operations | - | | - | |
Net result for the period | 370 | | 273 | |
Balance Sheet
pursuant to Consob Resolution no. 15519 of July 27, 2006
| (in millions of euros) | At June 30, 2007 | of which Related parties | At December 31, 2006 | of which Related parties |
ASSETS | | | | |
Non-current assets | | | | |
| Intangible assets | 1 | | 1 | |
| Property, plant and equipment | 35 | | 37 | |
| Investments | 13,191 | 12,919 | 14,500 | 14,211 |
| Other financial assets | 21 | 11 | 20 | 10 |
| Other non-current assets | 2 | | 1 | |
| Deferred tax assets | - | | - | |
Total Non-current assets | 13,250 | | 14,559 | |
Current assets | | | | |
| Inventories | - | | - | |
| Trade receivables | 242 | 19 | 155 | 2 |
| Current financial receivables | 238 | 238 | 84 | 84 |
| Other current receivables | 651 | 156 | 626 | 147 |
| Cash and cash equivalents | 1 | | 1 | |
Total Current assets | 1,132 | | 866 | |
| Assets held for sale | - | | - | |
TOTAL ASSETS | 14,382 | | 15,425 | |
STOCKHOLDERS' EQUITY AND LIABILITIES | | | | |
Stockholders' equity | | | | |
| Capital stock | 6,377 | | 6,377 | |
| Additional paid-in capital | 1,541 | | 1,541 | |
| Legal reserve | 536 | | 447 | |
| Other reserves and retained earnings | 1,694 | | (310) | |
| Treasury stock | (243) | | (24) | |
| Net result for the period | 370 | | 2,343 | |
Total Stockholders' equity | 10,275 | | 10,374 | |
Non-current liabilities | | | | |
| Provisions for employee benefits and other non-current provisions | 21 | 9 | 18 | 7 |
| Non-current financial payables | 2,811 | 2,811 | 2,810 | 2,810 |
| Other non-current liabilities | 16 | | 20 | |
| Deferred tax liabilities | 4 | | 3 | |
Total Non-current liabilities | 2,852 | | 2,851 | |
Current liabilities | | | | |
| Provisions for employee benefits and other current provisions | 6 | | 27 | |
| Trade payables | 244 | 5 | 185 | 18 |
| Current financial payables | 698 | 477 | 1,627 | 1,406 |
| Other payables | 307 | 280 | 361 | 324 |
Total Current liabilities | 1,255 | | 2,200 | |
| Liabilities held for sale | - | | - | |
TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES | 14,382 | | 15,425 | |
AUDITORS' REVIEW REPORT ON THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 PREPARED IN CONFORMITY WITH ARTICLE 81 OF CONSOB REGULATION NO. 11971 OF MAY 14, 1999, AND SUBSEQUENT MODIFICATIONS
FIAT S.p.A.
| 1. | We have reviewed the interim consolidated financial statements, consisting of the consolidated balance sheet, income statement, statements of cash flows and changes in stockholders’ equity and related explanatory notes, which are included in the Half Year Report as of June 30, 2007 of Fiat S.p.A. and subsidiaries (the “Fiat Group”). These interim consolidated financial statements are the responsibility of the Company’s directors. Our responsibility is to issue a report on these interim consolidated financial statements based on our review. In addition, we have read the other sections of the Half Year Report for the sole purpose of verifying their consistency with the interim consolidated financial statements. |
| 2. | Our review was carried out in accordance with the standards recommended by the Italian Regulatory Commission for Companies and the Stock Exchange (“Consob”) for the review of the half-yearly interim financial statements under Resolution no. 10867 of July 31, 1997. Our review consisted principally of applying analytical procedures to the underlying financial data, assessing whether accounting policies have been consistently applied and making enquiries of management responsible for financial and accounting matters. The review excluded audit procedures such as tests of controls and substantive verification procedures of the assets and liabilities and was therefore substantially less in scope than an audit performed in accordance with established auditing standards. Accordingly, unlike our report on the year-end consolidated financial statements, we do not express an audit opinion on the half-yearly interim consolidated financial statements. |
| 3. | With regard to the comparative figures related to the year ended December 31, 2006 and to the six-month period ended June 30, 2006, presented in the interim consolidated financial statements, reference should be made to our auditors’ report dated February 22, 2007 and our auditors’ review report dated July 25, 2006, respectively. |
| 4. | Based on our review, we are not aware of any material modifications that should be made to the interim consolidated financial statements mentioned in paragraph 1. above in order for them to be in conformity with IAS 34 and the criteria established by Consob for the preparation of half-yearly interim financial statements set out in Article 81 of Resolution no. 11971 of May 14, 1999 and subsequent modifications. |
DELOITTE & TOUCHE S.p.A.
By : /s/ Piergiovanni Pasquarelli
Partner
Turin, Italy
July 25, 2007
This report has been translated into the English language solely for the convenience of international readers
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: August 10, 2007
| | FIAT S.p.A. |
| | |
| | BY: /s/ Fabio Spirito |
| | _____________________________ |
| | |
| | Fabio Spirito |
| | |
| | Power of Attorney |
