Chrysler 2001 Annual Report Download - page 68

68
Services
(in millions of euros) 2001
Net revenues 1,805
Operating income 73
as a % of revenues 4
Net income before minority interest 497
Cash flow 567
Capital expenditures 32
Net invested capital 648
Number of employees 7,171
Highlights
Carlo Gatto,
Business Solutions’ Chief Executive Officer.
The Fiat Group has a long tradition of providing specialized
services to its core operations. The professionalism and
expertise developed in the fields of administrative services,
human resource management, information technology and
facility management are now being offered to customers
outside the Group through a product line that will enable
these customers to leap ahead of their competitors and
focus on their core businesses.
Business Solutions
OPERATING PERFORMANCE
Business Solutions completed its first year of operation in
2001. This Sector was created at the end of 2000 to combine,
under one umbrella all of the operations of the Fiat Group that
provide services to corporate customers.
The range of services offered by Business Solutions is broad
and comprehensive, designed to meet, in an effective and
integrated manner, the outsourcing needs of companies of
varying size that choose to entrust their service operations
to outsiders so that they may focus their efforts on their
core businesses.
Business Solutions operates in five main areas of business, all
of which are interrelated, permitting the delivery of specialized
services to privately held companies and to government agencies.
❚Human Resources. This Unit provides services in payroll
management and human resources in general (H.R.
Services S.p.A.), training (Isvor Knowledge System S.p.A.),
and temporary employment (Worknet S.p.A., acquired in
January 2001).
This Unit generated aggregate revenues in excess of
88 million euros in 2001, with non-captive customers
accounting for more than 55%.
Early in 2002, the Sector acquired Cronos S.p.A. This
company will help Worknet expand and strengthen its
portfolio of temporary employment services, making it
one of the top Italian players in this industry.
❚Property, Engineering & Facility Management. Because
of the types of services that it offers, this Unit is especially
important. It can meet any need in real estate management,
defined in the broadest possible sense, and can serve as a
general contractor in major civil engineering and
infrastructure projects.
Its activities range from developing, managing and selling large
real estate portfolios (IPI S.p.A.) to providing integrated services
for regular and extraordinary maintenance of offices and
industrial sites (Ingest Facility S.p.A.). Ingest Facility and
Jonhson Controls, a U.S. group with a global leadership
position in facility management, formed a joint venture that will
aggressively target large customers in the international market.
Fiat Engineering S.p.A. is the Unit’s general contractor, with
a strong presence in civil engineering projects
(redevelopment of the Novoli industrial district in Florence),
construction of large infrastructures (e.g., the Italian high-
speed railway project) and construction of energy facilities
(combined-cycle power plants).
The Unit’s aggregate revenues totaled more than 711 million
euros in 2001. This amount includes the contribution of
Fenice S.p.A. for the first six months of the year. Fenice, an
environmental and energy company, was later sold to EDF
as part of a transaction that enabled Business Solutions to
acquire a 17.65% interest in Italenergia.
Customers outside the Fiat Group generated 38% of this
Unit’s revenues.
❚Administration Services. Business Solutions uses Fiat
Gesco S.p.A. to offer administration services on an
outsourced basis and provides financial consulting support
that covers all of the accounting needs of its corporate
customers, including those relating to back office