Chrysler 2008 Annual Report Download - page 95

Report on Operations Financial Review – Fiat S.p.A.94
Balance Sheet
Following is a summary of Fiat S.p.A.’s balance sheet:
(€ millions) At 31.12.2008 At 31.12.2007
Non-current assets 14,499 13,367
- of which: Investments 14,444 13,311
Working capital 34 204
Net Capital Invested 14,533 13,571
Shareholders’ Equity 12,170 11,691
Net Debt 2,363 1,880
Non-Current Assets consisted almost entirely of controlling
interests in the Group’s principal entities.
The €1,133 million increase in investments for the year
included €812 million attributable to the transfer of
shareholdings from the subsidiary Fiat Partecipazioni S.p.A.
through a partial spin-off in favour of Fiat S.p.A., following
which the Parent Company directly holds the controlling
interest in all of the Group's industrial sectors. This
simplification of the Group’s structure will enable improved
operating efficiency, financial optimization and streamlined
dividend flows.
The transaction consisted of the transfer to Fiat S.p.A. of
interests held by Fiat Partecipazioni S.p.A. in the following
subsidiaries: Fiat Group Automobiles S.p.A. (100.00%), Fiat
Powertrain Technologies S.p.A. (100.00%), Magneti Marelli
S.p.A. (99.99%), Maserati S.p.A. (100.00%), Teksid S.p.A.
(84.79%), Teksid Aluminum S.r.l. (100.00%), Fiat Netherlands
Holding N.V. (39.44%), Iveco S.p.A. (39.44%), in addition to the
associate company RCS Media Group S.p.A. (10.09%). The
transaction also included the transfer of €800 million in
outstanding liabilities to Fiat Finance S.p.A. from Fiat
Partecipazioni S.p.A. to Fiat S.p.A.
The carrying value of the investment in Fiat Partecipazioni was
replaced by the book value of the assets and liabilities
transferred and the residual value of the investment in Fiat
Partecipazioni. The transaction is accounted for in Fiat S.p.A.
consistently with the carrying value of the investment in Fiat
Partecipazioni.
Working Capital of €34 million consisted of trade
receivables/payables, other receivables/payables (from/to tax
authorities, employees, etc.), and inventory for contract work in
progress, net of advances and provisions. The €170 million
decrease from 31 December 2007 was essentially attributable
to the increase in VAT payable to tax authorities.
At 31 December 2008, Shareholders’ Equity totalled €12,170
million, a net increase of €479 million from 31 December 2007
principally reflecting profit for the period (€1,199 million), net
of dividend distributions (€509 million) and share buy-backs
(€239 million).
A more detailed analysis of changes in shareholders’ equity is
provided in the Statement of Changes in Shareholders' Equity
and accompanying notes which form part of Fiat S.p.A.'s
Statutory Financial Statements.
At 31 December 2008, Net Debt was €2,363 million, an increase
of €483 million over 31 December 2007. This increase was
principally due to dividend distributions, share repurchases
and debt assumed as part of the transaction with Fiat