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

Other financial income
(in millions of euros) 1st half 2004 1st half 2003
Interest earned and other income 209 248
Interest from customers and lease payments 501 771
Income from derivative financial instruments 608 424
Foreign exchange gains, net – 38
Total Other financial income 1,318 1,481
of which:
Other financial income excluding financial services companies 817 710
Interest and other financial expenses
(in millions of euros) 1st half 2004 1st half 2003
Bond interest 300 343
Bank interest 234 364
Interest paid and other financial expenses 420 452
Expenses from derivative financial instruments 254 345
Foreign exchange losses, net 25 –
Total Interest and other financial expenses 1.233 1,504
of which:
Interest and other financial expenses, excluding financial services companies 999 1,137
In the first half of 2004 the total of Other financial income of 1,318 million euros (1,481 million euros in the first half of 2003) net of
total Interest and other financial expenses of 1,233 million euros (1,504 million euros in the first half of 2003) resulted in net financial
income of 85 million euros, compared to net financial expenses of 23 million euros in the first half of 2003. The 108-million-euro
difference is mainly due to the increase in net financial expenses for 311 million euros as a result of the sale of the Toro Assicurazioni
Group, FiatAvio S.p.A., the retail financing activities of Fiat Auto, and the reduction thereof by 331 million euros as the positive,
non-recurring effect of the termination of the equity swap on General Motors shares in the first half of 2004 (Note 12). The
improvement, determined on a comparable consolidation basis and net of the cited non-recurring income, thus totals 88 million
euros and is largely attributable to the lower level of average indebtedness and lower interest rates.
Interest and other financial expenses include discounted receivables and securitization expenses for 112 million euros in the first
half of 2004 (148 million euros in the first six months of 2003).
16 Adjustments to financial assets
(in millions of euros) 1st half 2004 1st half 2003
Revaluations of:
Equity investments 68 60
Securities held as current assets other than equity investments 2 14
Total Revaluations 70 74
Writedowns of:
50 Fiat Group Consolidated Financial Statements and Notes at June 30, 2004
Equity investments 33 119
Securities held as current assets other than equity investments 1 10
Financial receivables 1 1
Total Writedowns 35 130
Total Adjustments to financial assets 35 (56)
The Revaluations and Writedowns of equity investments essentially include the Group’s interest in net income and losses of the
companies accounted for using the equity method.