Chrysler 2007 Annual Report Download - page 241

Financial Review of Fiat S.p.A.
The financial statements illustrated and commented on in the following pages have been prepared on the basis of the company’s
statutory financial statements at December 31, 2007 to which reference should be made. These financial statements were prepared
in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board
(“IASB”) and endorsed by the European Union, and with the provisions issued in implementation of Article 9 of Legislative Decree
no. 38/2005.
Operating performance
In 2007, the Parent Company reported a net income of 2,069 million euros, 274 million euros lower than in 2006.
The company’s Income Statement is summarised in the following table:
(in millions of euros) 2007 2006
Investment income 2,188 2,461
- Reversals (impairment losses) 1,247 2,099
- Dividends 823 362
- Gains (losses) on disposals 118 –
Personnel and operating costs net of other revenues (98) (120)
Financial income (expenses) (149) (24)
Income before taxes 1,941 2,317
Income taxes 128 26
Net income for the year 2,069 2,343
Investment income totalled 2,188 million euros and consisted of the reversal of impairment losses on investments, dividends received
during the period, and gains on disposals. It is lower by 273 million euros with respect to the previous year (2,461 million euros in
2006), when the figure included higher reversals of impairment losses. Specifically:
■Impairment loss reversals (net of write-downs) of 1,247 million euros resulted from the write-up of the investment in the
subsidiary Fiat Partecipazioni S.p.A. (1,308 million euros mainly connected to Fiat Group Automobiles S.p.A.), written-down in
previous years, net of the impairment loss recognised on the investment in Comau S.p.A. (61 million euros).
In 2006, impairment loss reversals (net of write-downs) of 2,099 million euros resulted from the revaluation of the investments in
the subsidiaries Fiat Partecipazioni S.p.A. (1,388 million euros mainly connected to Fiat Group Automobiles S.p.A.), Iveco S.p.A.
(946 million euros) and Fiat Netherlands Holding N.V. (96 million euros connected to CNH), all written-down in previous years, net
of the impairment loss recognised on the investment in Comau S.p.A. (330 million euros);
■Dividends totalled 823 million euros, for the most part received from subsidiaries: FGI - Fiat Group International S.A., formerly
IHF – Internazionale Holding Fiat S.A. (271 million euros), Fiat Partecipazioni S.p.A. (250 million euros), Fiat Netherlands Holding
N.V. (151 million euros), Ferrari S.p.A. (64 million euros) and Fiat Finance S.p.A. (60 million euros). In 2006, dividends totalled
362 million euros, mainly from FGI - Fiat Group International S.A. (259 million euros) and Fiat Finance S.p.A. (75 million euros).
■Gains on the disposal of investments regarded the gain realised in September on the sale of the Company’s 1.83% interest in
Mediobanca S.p.A.
Financial Review of Fiat S.p.A.240