in the First Half of 2003 98th Fiscal Year - FIAT SpA

Net revenues by destination
(in millions of euros) 1st half 2003 1st half 2002
Italy 9,060 10,137
Europe (excluding Italy) 9,699 10,633
North America 3,134 4,053
Mercosur 1,175 1,965
Other areas 1,706 1,967
Total Net revenues by destination 24,774 28,755
14 Costs of production
The Costs of production amounted to 26,519 million euros , or 14.3% less than the 30,955 million euros incurred in the first half
of 2002. The main components of this item and the changes that occurred during the period can be described as follows:
Raw materials, supplies and merchandise totaled 14,177 million euros (15,618 million euros in the first half of 2002). This total
is equivalent to 57.2% of revenues (54.3% in the first six months of 2002).
Services totaled 4,891 million euros in the first half of 2003 (5,819 million euros in the first half of 2002). This total is equivalent
to 19.7% of revenues (20.2% in the first six months of 2002). Service costs include advertising expenses, outsourced I.T. and
telecommunication service costs, outsourced maintenance service costs, and transportation costs.
Personnel costs totaled 3,587 million euros in the first half of 2003 (4,055 million euros in the first half of 2002) and decreased
by 11.5% with respect to the corresponding period in 2002. Personnel costs represent 14.5% as a percentage of revenues (14.1% in
the first six months of 2002). The decrease was mainly due to the lower average number of employees, for a total of 178,102 persons
in the first half of 2003, against 201,788 employees in the first half of 2002 due to changes in the scope of consolidation.
Insurance claims and other costs - insurance companies totaled 1,357 million euros in the first half of 2003 (2,066 million euros
in the corresponding period last year). The decrease of 34.3% compared with the first half of 2002 reflects the sale of the
Toro Assicurazioni Group.
15 Financial income and expenses
Investment income
46 Fiat Group Consolidated Financial Statements and Notes at June 30, 2003
(in millions of euros) 1st half 2003 1st half 2002
Investment income 17 80
Investment income amounted to 17 million euros. It includes 3 million euros in gains on disposals of short-term investments
(11 million euros in the first half of 2002), 9 million euros in dividends (51 million euros in the first half of 2002) and 5 million euros
in tax credits on dividends (18 million euros in the first half of 2002).
Dividends in the first half of 2002 included dividends paid by General Motors (36 million euros) on the equity investment that was
sold in December 2002.
Other financial income and Interest and other financial expenses
The following analyses of Other financial income and Interest and other financial expenses present the amounts shown in the related
items on the statement of operations and also the amounts of income and expenses of the Group’s financial companies presented
in the items on the statement of operations under Revenues from sales and services and Interest and other expenses of financial
services companies, respectively. The last line in the tables shows Interest and other financial income and Interest and other financial
expenses as shown on the statement of operations, excluding the financial activities.