Chrysler 2012 Annual Report Download - page 61

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Debt, cash and other financial assets/liabilities pertaining to Financial Services entities are excluded from the computation of Net Debt of Industrial Activities.
In addition to its other activities, the Group treasuries of Fiat excluding Chrysler, raises funds for consolidated Financial Services companies by incurring debt
on their behalf which is on-lent to those Financial Services companies. These loans from Group treasuries of Fiat excluding Chrysler (which are included
within Industrial Activities) to the consolidated Financial Services companies, are included under intersegment financial receivables and are deducted in the
determination of net debt for Industrial Activities to reflect the third party borrowings underlying the Financial Services companies’ debt.
Intersegment financial receivables for Financial Services companies, on the other hand, represent loans or advances to industrial companies – for receivables
sold to Financial Services companies that do not meet the derecognition requirements of IAS 39 – as well as liquidity deposited temporarily with the central
treasury.
Net debt for Financial Services companies at 31 December 2012 was down €314 million over year-end 2011 to €3,055 million, primarily reflecting
€119 million in cash from operating activities and positive currency translation differences of €205 million, which were partially offset by €14 million in
dividends paid to industrial companies.
Change in Net Industrial Debt
2012 2011
(€ million)
Fiat
with
Chrysler Chrysler
Fiat
excluding
Chrysler
Fiat
with
Chrysler
Chrysler
(7 months)
Fiat
excluding
Chrysler
Net industrial debt at beginning of year (5,529) (3,080) (2,449) (542) - (542)
Consolidation of Chrysler net debt - - - (3,860) (3,860) -
Cash (paid)/received for 16% ownership interest in Chrysler - - - - 881 (881)
(Disbursements) for purchase of interests held in Chrysler by Canada and US
Treasury and UST rights under Equity Recapture Agreement ---(490) - (490)
Net industrial debt at beginning of year after Chrysler consolidation (5,529) (3,080) (2,449) (4,892) (2,979) (1,913)
Profit/(loss) 1,411 2,452 (1,041) 1,651 645 1,006
Depreciation and amortization 4,132 2,017 2,115 3,356 1,123 2,233
Changes in provisions and other changes 102 145 (43) (1,240) (221) (1,019)
Cash from/(used in) operating activities before change
in working capital 5,645 4,614 1,031 3,767 1,547 2,220
Change in working capital 694 1,275 (581) 1,417 204 1,213
Cash from/(used in) operating activities 6,339 5,889 450 5,184 1,751 3,433
Investments in property, plant and equipment and
intangible assets (7,530) (4,311) (3,219) (5,525) (1,936) (3,589)
Cash from/(used in) operating activities, net of capital expenditure (1,191) 1,578 (2,769) (341) (185) (156)
Change in consolidation scope and other changes 292 45 247 68 305 (237)
Net industrial cash flow (899) 1,623 (2,522) (273) 120 (393)
Capital increases and dividends (36) - (36) (140) (2) (138)
Currency translation differences (81) (40) (41) (224) (219) (5)
Change in net industrial debt (1,016) 1,583 (2,599) (637) (101) (536)
Net industrial debt at end of year (6,545) (1,497) (5,048) (5,529) (3,080) (2,449)
For 2012, net industrial debt increased by approximately €1 billion.
For Chrysler, there was a reduction of €1,583 million, with €5,889 million in cash from operations more than offsetting the €4,311 million in capital
expenditure during the period.
For Fiat excluding Chrysler, net industrial debt increased by €2.6 billion. Operating activities generated approximately €0.5 billion in cash, which only
partially offset capital expenditures of approximately €3.2 billion. The increase in Change in consolidation scope and other changes (€247 million) related
primarily to changes in the fair value of hedging instruments.
Financial
Review –
Fiat Group
Report on
Operations