Chrysler 2005 Annual Report Download - page 34

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Report on Operations Financial Review of the Group
At December 31, 2005, trade receivables, other receivables and receivables from financing activities falling due after that date that had been
sold without recourse (in compliance with IAS 39 de-recognition requirements) totalled 2,463 million euros (1,623 million euros at December
31, 2004). Approximately 500 million euros of this increase is attributable to the change in the scope of consolidation resulting from the
establishment of the joint-venture Iveco Finance Holdings with Barclays.
At December 31, 2005 consolidated net debt totalled 18,523 million euros, for a decrease of 6.9 billion euros with respect to 25,423 million
euros at December 31, 2004. During 2005 a number of financial transactions were carried out that led to a gradual reduction in the net debt
of the Fiat Group and more than offset foreign currency translation differences (mainly referring to debt of financial services companies
denominated in dollars and reais).
(in millions of euros) At 12.31.2005 At 12.31.2004
Debt (25,761) (32,191)
-Asset-backed financing (10,210) (10,174)
-Other debt (15,551) (22,017)
Other financial liabilities (1) (189) (203)
Other financial assets (1) 454 851
Current securities 556 353
Cash and cash equivalents 6,417 5,767
Net debt (18,523) (25,423)
Industrial Activities (3,219) (9,447)
Financial Services (15,304) (15,976)
(1) This item includes the asset and liability fair values of derivative financial instruments.
More specifically, the net debt of the Group decreased as a result of the following transactions:
the collection of 1.56 billion euros from General Motors (partially reduced by the effect of the consolidation of the powertrain activities
amounting to approximately 400 million euros);
the reimbursement of approximately 2 billion euros in financing that had previously been extended by central cash management to
the financial services companies sold byIveco to Barclays;
the conversion of the Mandatory Convertible Facility amounting to 3 billion euros;
the completion of the Italenergia Bis transaction for approximately 1.8 billion euros; following the sale to EDF of the 24.6% shareholding
owned by the Fiat Group, the financing of 1,147 million euros provided by Citigroup and a restricted pool of banks was reimbursed.
In addition, the payable of approximately 600 million euros to the bank shareholders of Italenergia Bis that purchased 14% of the shares
of Italenergia Bis from Fiat in 2002 was eliminated (see the “Notes to the Consolidated Financial Statements” for further information
on this transaction).
Cash position (cash, cash equivalents and current securities), which totalled 6,973 million euros at December 31, 2005, increased by 873
million euros compared to 6,120 million euros at December 31, 2004.
At December 31, 2005, “Cash and cash equivalents” included approximately 700 million euros (approximately 600 million euros at
December 31, 2004) specifically allocated to service the debt for securitisation structures recognised mainly under “Asset-backed financing.”