Chrysler 2005 Annual Report Download - page 206

205
Financial Review of Fiat S.p.A.
In particular:
Cost of personnel and services totalled 187 million euros and consisted of services costs (76 million euros), personnel costs (42 million
euros) and, for the remainder, of amortisation and other operating costs.The 20 million euro decrease over the previous fiscal year stemmed
for 11 million euros from lower personnel costs and for 9 million euros from lower services costs, depreciation and amortisation and other
net costs.The average number of employees in 2005 was 133 (including 11 persons seconded to the principal companies of the Group),
against an average number of 151 employees in 2004 (including 12 persons seconded to those Group companies);
Revenues totalled 45 million euros and consisted of 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 rendered by executives at the main Group companies.The decrease of 43
million euros with respect to fiscal 2004 is mainly due to lower charges for the use of the trademark.
N et extraordinary income amounted to 1,121 million euros and consisted of the net extraordinary gain on the transaction regarding the
termination of the Master Agreement with General Motors for an amount of 1,133 million euros, and costs for the restructuring of the Parent
Company.
In 2004, net extraordinary expenses were connected with the implementation of the Parent Company’s restructuring and reorganisation plan.
Income taxes totalled 279 million euros, an amount which includes the realisation of deferred tax assets of 277 million euros, initially
recognised in the financial statements for the year ended D ecember 31, 2004 in relation to the settlement subsequently made with General
Motors for the termination of the Master Agreement.
Balance Sheet
The following table provides highlights of the Parent Company’s balance sheet:
(in millions of euros) At 12.31.2005 At 12.31.2004
Fixed assets 5,052 5,342
of which:equity investments 4,983 5,249
W orking capital (314)99
Total net invested capital 4,738 5,441
Stockholders’ equity 7,689 4,466
N et debt (N et liquid funds) (2,951) 975
Fixed assets refer mainly to equity investments in the principal Group companies, in which Fiat S.p.A. holds a controlling interest.
The net decrease in fixed assets of 290 million euros with respect to December 31, 2004 is mainly due to the decrease of 266 million euros
in equity investments as a result of the adjustments to financial assets discussed earlier net of the recapitalisations of the Teksid S.p.A., Comau
S.p.A., Business Solutions S.p.A. and Itedi S.p.A. subsidiaries carried out during the year (for a total amount of 165 million euros).
Working capital comprises inventories net of advances received, trade, tax and employee receivables/payables and provisions, which in total
result in a net liability of 342 million euros, together with treasury stock of 28 million euros (represented by 4,331,708 ordinary shares).The
413 million euro decrease from D ecember 31, 2004 stems from the reduction in receivables, mainly due to the previously mentioned
realisation of deferred tax assets (277 million euros) and the higher amount of receivables sold.