Chrysler 2008 Annual Report Download - page 96

Report on Operations Financial Review – Fiat S.p.A. 95
Partecipazioni S.p.A., referred to previously, net of operating
cash flows for the period. Net debt is broken down as follows:
(€ millions) At 31.12.2008 At 31.12.2007
Current financial assets, cash and cash equivalents –(1,224)
Current financial liabilities 553 295
Non-current financial liabilities 1,810 2,809
Net debt/(cash) 2,363 1,880
At 31 December 2008, there were no current financial assets.
By contrast, however, at 31 December 2007 the item included a
positive balance on the current account held with the
subsidiary Fiat Finance S.p.A., a short-term loan of €900
million, also to Fiat Finance S.p.A., as a temporary investment
of surplus funds, in addition to amounts receivable from the
subsidiary Fiat Netherlands Holding N.V. connected to fair
value recognition of the stock-option related equity swaps on
Fiat S.p.A. shares referred to above.
At 31 December 2008, current financial liabilities consisted of a
negative balance on the current account held with Fiat Finance
S.p.A., amounts payable to factoring companies for advances
on receivables, in addition to a liability to Fiat Netherlands
Holding N.V. connected to fair value recognition of the stock-
option related equity swaps on Fiat S.p.A. shares referred to
above. At 31 December 2007, current financial liabilities
essentially consisted of amounts payable to factoring
companies for advances on receivables.
Non-current financial liabilities consisted almost entirely of
loans from Fiat Finance S.p.A., at market rates, which mature
between 2010 and 2013. During the year, one of those loans
was repaid for an amount of €1 billion.
A more detailed analysis of cash flows is provided in Fiat
S.p.A.’s Cash Flow Statement which follows.
Reconciliation between shareholders’ equity and
net profit of the Parent Company and of the Group
Pursuant to the requirements of the Consob Communication of
28 July 2006, the following table provides a reconciliation
between net profit and shareholders’ equity of Fiat S.p.A. for
the year ended 31 December 2008 and the same values on a
consolidated basis (attributable to shareholders of Fiat S.p.A.):
Shareholders’ Equity Shareholders’ Equity
(€ millions) at 31.12.2008 Net Profit 2008 at 31.12.2007 Net Profit 2007
Statutory financial statements of Fiat S.p.A. 12,170 1,199 11,691 2,069
Elimination of carrying amounts of consolidated investments and related dividends (14,426) (873) (13,278) (822)
Elimination of impairment reversals/(net of impairment losses) on consolidated entities –7– (1,247)
Equity and profit/(loss) of consolidated entities 14,398 3,317 12,444 2,027
Consolidation adjustments:
- Elimination of intercompany profits and losses on the disposal of investments –(7) – (33)
- Elimination of the gain on disposal of the “Fiat” brand (879) (879) ––
- Elimination of intercompany profits and losses on inventories and fixed assets,
dividends paid between subsidiaries and other adjustments (909) (1,152) (251) (41)
Consolidated financial statements (attributable to shareholders of Fiat S.p.A.) 10,354 1,612 10,606 1,953