Chrysler 2004 Annual Report Download - page 37

reserves for 901 million euros (791 million euros in 2003),
restructuring reserves for 408 million euros (471 million euros in
2003), reserves for pensions for 1,432 million euros (1,503 million
euros in 2003), reserves for employee severance indemnities
for 1,286 million euros (1,313 million euros in 2003), and reserves
for other risks and charges for 2,276 million euros (2,216 million
euros in 2003).
Net Invested Capital
Net invested capital totaled 10,718 million euros, compared
with 10,522 million euros at December 31, 2003. The increase
of 196 million euros is attributable to the increase in working
capital and deferred tax assets, which were only partially offset
by the decrease in fixed assets (mainly foreign exchange effect
and disinvestments during the period), and financial fixed assets
(dividends paid by BUC - Banca Unione di Credito accounted
for using the equity method).
The following table illustrates the composition of net invested
capital at the end of 2004 and 2003.
(in millions of euros) At 12.31.2004 At 12.31.2003 Change
Intangible fixed assets 3,322 3,724 (402)
Property, plant and equipment 9,537 9,675 (138)
Financial fixed assets 3,779 3,950 (171)
Financial assets not held as fixed assets 117 120 (3)
Deferred tax assets 2,161 1,879 282
Reserves (6,668) (6,692) 24
Working capital (1,530) (2,134) 604
Net invested capital 10,718 10,522 196
Stockholders’ Equity
Consolidated stockholders’ equity totaled 5,757 million euros
(7,494 million euros at December 31, 2003). The reduction
largely reflects the loss posted for the period (1,548 million
euros), the reduction in minority interests (62 million euros,
largely in consequence of the purchase of residual shares in
Fiat Auto Poland), distributed dividends (19 million euros),
and the decrease stemming from foreign exchange translation
differences (126 million euros).
Stockholders’ equity of the Group was 5,099 million euros,
against 6,793 million euros at December 31, 2003.
Net Financial Position
The net financial position, i.e. net indebtedness (financial
payables and related accruals and deferrals, net of cash and
securities) minus financial receivables, totaled -4,961 million
euros at December 31, 2004, reflecting an increase of 1,933
million euros compared with the negative net financial position
of 3,028 million euros at the beginning of the fiscal year.
The following table shows the net financial position at
December 31, 2004 and December 31, 2003.
(in millions of euros) At 12.31.2004 At 12.31.2003 Change
Financial payables (18,743) (22,034) 3,291
Accrued financial expenses (523) (593) 70
Prepaid financial expenses 93 85 8
Cash 3,164 3,211 (47)
Securities 2,126 3,789 (1,663)
Net indebtedness (*) (13,883) (15,542) 1,659
Financial receivables and lease
contracts receivable 8,897 12,576 (3,679)
Accrued financial income 234 301 (67)
Deferred financial income (209) (363) 154
Net Financial Position (4,961) (3,028) (1,933)
(*) Net Indebtedness
Industrial Activities (5,909) (5,088) (821)
Financial Activities (7,974) (10,454) 2,480
Aggregate liquidity (Cash and Securities) of the Group at
December 31, 2004, held principally by the companies that
operate centralized cash management activities, totaled
approximately 5.3 billion euros, approximately 1.7 billion euros
less than at December 31, 2003, partially in consequence of
the reimbursement of financial payables, including bond loans
of 2.7 billion euros.
Net indebtedness (financial payables and relative accruals and
deferrals, net of cash and securities) totaled approximately 13.9
billion euros at December 31, 2004, about 1.7 billion euros less
than at December 31, 2003. The net indebtedness of Industrial
Activities increased by 821 million euros in connection with
the operating requirements of the period, while the net
indebtedness of Financial Activities decreased by approximately
2.5 billion euros in consequence of the reduction in financial
assets for the reasons described hereunder in the analysis of the
“Financial Position and Operating Results by Activity Segment.”
Gross indebtedness (financial payables and relative accruals
and deferrals), equal to 19.2 billion euros, decreased by
approximately 3.4 billion euros, principally in consequence
of the reimbursement of bonds, including the bond for
approximately 1 billion euros issued by Fiat Finance & Trade,
reimbursed at the end of March 2004, and the bond
exchangeable for General Motors shares for 2.2 billion
dollars, equal to approximately 1.8 billion euros.
In connection with the above bond, it should be noted that:
■During the first quarter of 2004, Fiat had repurchased 540
million dollars in bonds to be cancelled out of a total of 2,229
million dollars;
■in June 2004, pursuant to the contractual right of each
bondholder to request early reimbursement of all or part of its
bonds, reimbursement for the above indicated amount was
requested by the contractually envisaged deadline. As of
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Financial Review of the Fiat Group and Fiat S.p.A.