in the First Half of 2004 99th Fiscal Year - FIAT SpA

The principal reimbursements carried out during the first half of 2004 were for the bonds issued in March 1999 by Fiat Finance
and Trade for 1 billion euros, reimbursed at their scheduled due date of March 31, 2004, in addition to the previously mentioned
repurchase of the 540 million dollars at par of the bond exchangeable for General Motors Corp. shares. In contrast, Case New
Holland Inc. issued high-yield bonds in May with a par value of 500 million dollars and maturity on June 1, 2009.
The Fiat Group intends to reimburse the issued bonds in cash at maturity by using available liquidity. In this regard, note that on
June 30, 2004 cash totaled 6.9 billion euros. In addition, the Fiat Group has available unused committed credit facilities totaling
over 2 billion euros.
Fiat Group companies might periodically repurchase bonds issued by the Group on the market in order to cancel them, among other
purposes. These repurchases, if carried out, will depend on market conditions, the Group’s financial position, and other factors that
might influence these decisions.
Other Payables include advances received totaling 8,772 million euros at June 30, 2004 (9,149 million euros at December 31, 2003),
of which 8,477 million euros as Advance payments on contract work in progress (8,876 million euros at December 31, 2003), that
consist of the payments received for work progress by the companies managing multi-year contract work.
Payables due beyond five years amount to 4,598 million euros at June 30, 2004 (3,955 million euros at December 31, 2003). At June
30, 2004, payables amounting to 1,233 million euros (1,234 million euros at December 31, 2003) are secured by mortgages and other
guarantees on fixed assets.
11 Accrued expenses and deferred income
46 Fiat Group Consolidated Financial Statements and Notes at June 30, 2004
(in millions of euros) At 6/30/2004 At 12/31/2003
Commercial accrued expenses and deferred income 1,365 1,329
Financial accrued expenses and deferred income 852 956
Total Accrued expenses and deferred income 2,217 2,285
Financial accrued expenses and deferred income include interest expenses on financial payables for the part attributable to the
period, and deferred interest income on the receivables portfolio of the financial services companies.
12 Memorandum accounts
Guarantees granted
At June 30, 2004, the Group has provided Guarantees totaling 6,048 million euros (6,430 million euros at December 31, 2003).
Suretyships total 2,669 million euros at June 30, 2004 (3,060 million euros at December 31, 2003). The 391-million-euro decrease
stems mainly from deconsolidation of Fiat Engineering.
Other Unsecured guarantees include commitments for receivables and bills discounted with recourse totaling 2,064 million euros
(2,203 million euros at December 31, 2003), which refer to trade receivables and other receivables for 2,022 million euros (2,144
million euros at December 31, 2003) and financial receivables for 42 million euros (59 million euros at December 31, 2003). The
volume of receivables and bills discounted with recourse during the first half of 2004 was 9,047 million euros (8,544 million euros
in the first half of 2003 and 15,341 million euros in fiscal 2003).
Although not included in the Memorandum accounts, the Group discounted receivables and bills without recourse having due dates
beyond June 30, 2004 amounting to 9,168 million euros (9,852 million euros at December 31, 2003, with due dates beyond that date).
They refer to trade receivables and other receivables for 4,622 million euros (4,638 million euros at December 31, 2003) and financial
receivables for 4,546 million euros (5,214 million euros at December 31, 2003). The discounting without recourse of financial
receivables principally refers to securitization transactions involving accounts receivable from the end (retail) customers of the
financial services companies. The volume of receivables and bills discounted without recourse during the first six months of 2004
was 16,107 million euros (15,873 million euros in the first half of 2003 and 33,298 million euros in fiscal 2003).