Chrysler 2007 Annual Report Download - page 53

Report on Operations Financial Review of the Group52
Industrial Activities
In 2007, Industrial Activities absorbed cash and cash
equivalents totalling 1,163 million euros and in particular:
■operating activities generated 5,756 million euros: income
cash flow (net income plus amortisation and depreciation), net
of Gains/losses on disposal 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 3,878 million euros, to which
should be added dividends for 203 million euros and the cash
generated by the decrease in working capital which, on a
comparable scope of consolidation and at the same exchange
rates, amounted to 1,675 million euros.
■Investment activities absorbed a total of 5,805 million euros.
The cash generated by the sale of non-current assets for 680
million euros (mainly the sale of the interest held in
Mediobanca, the sale of Meridian Technologies and Ingest
Facility, the receipt of extended term payments as part of the
sale of 51% of FAFS which took place at the end of 2006 and
the receipt of payments within the framework of the creation of
the joint venture with Tata) only partly offset funding
requirements for period investments (3,666 million euros) and
those deriving from the increase in financing extended to the
Group’s Financial Services companies by central cash
management companies (included among Other changes).
■Financing activities absorbed 1,125 million euros in cash.
Funding requirements for the repayment of bonds and bank
loans, the payment of dividends, the 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
December 31, 2007 totalled 1,093 million euros, up 63 million
euros from December 31, 2006.
Changes in cash during 2007 derive from:
■operations during the year which generated 288 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 1,183 million euros in cash. In particular, the
item Other changes includes the mentioned financing extended
by central cash management companies (included among
industrial companies), in support of their activity which more
than offset requirements connected with an increase in loans
extended (1,073 million euros) and investments (319 million
euros) mainly for vehicles leased out under operating leases.
■Financing activities which absorbed a total of 1,371 million
euros, 1,250 million euros of which mainly due to lower asset-
backed financing. The latter decreased since the central cash
management companies directly provided financing to
Financial Services companies.