EL DORSINO È DA DEFINIRE - FIAT SpA

FIAT S.P.A.
Operating Performance
The Statement of Operations of Fiat S.p.A. for the first half
of 2000 shows income before taxes of 171 million euros.
A breakdown of its principal components is provided below:
1st half 1st half
(in millions of euros) 2000 1999 Change
Net financial income 189 238 (49)
Revenues 55 66 (11)
Personnel and service costs (73) (73) –
Extraordinary income – 73 (73)
Income before taxes 171 304 (133)
An analysis of the main items in the statement of operations
is provided below:
Net financial income, which totaled 189 million euros, up
from 238 million euros in the first half of 1999, includes the
following:
❚ Financial income of 205 million euros, compared to 242
million euros in the first half of 1999. It consists of
dividends paid by affiliated companies for 197 million euros
(224 million euros in the first half of 1999), plus interest
income and fees for suretyships totaling 8 million euros
(18 million euros in the first half of 1999);
❚ Financial expenses of 16 million euros (4 million euros in
the first half of 1999). They represent interest expenses,
bank fees for the payment of dividends and discount
interest charges on the disposal of receivables due from
the Italian Tax Authorities.
Revenues totaled 55 million euros, compared to 66 million
euros in the first half of 1999. They consist of fees for the
right to use the Fiat trademark and services rendered by
managerial staff on loan to Group companies.
Personnel and service costs totaled 73 million euros, in line
with those recorded in the first half of 1999. They included
the costs of personnel in the amount of 33 million euros (29
million euros in the first half of 1999) and other expenses
totaling 40 million euros (44 million euros in the first half of
1999). The average number of staff decreased from 248 in the
first half of 1999 to 226 in the corresponding period in 2000.
At June 30, 2000, the Company had 225 employees, 23 fewer
than at the same time a year earlier.
No Extraordinary income was recorded in 2000. In the first
half of 1999 extraordinary income included the gains on the
sales of 30% of In.Te.S.A. S.p.A. to IBM Italia S.p.A. (32
million euros) and 0.46% of Banco Central Hispano Americano
S.A. (41 million euros).
Balance Sheet
The Balance Sheet can be summarized as follows:
(in million of euros) 6/30/2000 12/31/1999 Change
Fixed assets 7,617 7,050 567
Working capital 49 (1) 50
Total net invested capital 7,666 7,049 617
Stockholders’ equity 6,622 6,804 (182)
Net financial position (1,044) (245) (799)
Fixed assets, for the most part, consist of investments in
the Group’s main companies, which at June 30, 2000 totaled
7,536 million euros, up from 6,967 million euros at December
31, 1999. The net increase of 569 million euros is due
primarily to the acquisition of 11.79% of the ordinary shares
of Magneti Marelli S.p.A. (194 million euros) and 4.45% of the
ordinary shares of Toro Assicurazioni S.p.A. (62 million euros)
and the capital increases of Fiat Ge.Va. S.p.A. (200 million
euros) and Comau S.p.A. (65 million euros).
Investments do not include the interests acquired following the
tender offers for Toro Assicurazioni S.p.A. and Magneti Marelli
S.p.A. since these operations were concluded after June 30,
2000.
Working capital includes receivables from and payables to
Tax Authorities, trade and personnel totaling 19 million euros,
and ordinary treasury stock (No. 1,000,000) amounting to 30
million euros. Working capital increased by a net amount of
50 million euros compared to December 31, 1999, due largely
to the buyback of No. 1,000,000 ordinary shares to service
the 2000 stock option plan and lower payables for VAT.
Stockholders’ equity totaled 6,622 million euros at June 30,
2000, compared to 6,804 million euros at the end of 1999.
The decrease of 182 million euros is the net effect of the
distribution of 1999 earnings (353 million euros), as approved
by the Stockholders’ Meeting of June 5, 2000, and the pretax
income for the first half of 2000 (171 million euros).
Net financial position was a net debt of 1,044 million euros
compared to 245 million euros at December 31, 1999, with
an increase of 799 million euros.
The main reasons for this increase are the net additions to
equity investments (569 million euros), the distribution of the
1999 earnings (353 million euros) and higher working capital
requirements (50 million euros), offset in part by the cash flow
for the period (173 million euros).
Operating performance of the Fiat Group and Fiat S.p.A. in the First Half of 2000
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