The Fiat Group in 1999 - Report on Operations - Fiat SpA

Consolidated Revenues
<strong>in</strong> millions of euros
39,092
1995
Net Invested Capital
<strong>in</strong> millions of euros
14,577
1995
237,426 237,865
242,322
220,549 221,319
1995
40,244
1996
15,168
1996
1996
46,257
1997
14,122
1997
Number of Employees
1997
45,769
1998
13,700
1998
1998
48,123
<strong>1999</strong>
18,798
<strong>1999</strong> (*)
(*) Includes the controll<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> the Case <strong>Group</strong>
acquired at the end of <strong>1999</strong> and valued at cost.
<strong>1999</strong>
F<strong>in</strong>ancial Highlights of the <strong>Fiat</strong> <strong>Group</strong>
<strong>in</strong> millions of euros <strong>1999</strong> 1998 1997 1996 1995
Operat<strong>in</strong>g <strong>in</strong>come 788 746 1,791 932 1,717
Income before taxes 1,024 1,442 2,160 1,965 1,758
Income before m<strong>in</strong>ority <strong>in</strong>terest 506 916 1,550 1,420 1,329
<strong>Group</strong> net <strong>in</strong>come 353 621 1,248 1,225 1,109
Net f<strong>in</strong>ancial position (Net borrow<strong>in</strong>gs) (4,031) 1,420 1,340 (1,142) (1,341)
Stockholders’ equity
<strong>in</strong>clud<strong>in</strong>g m<strong>in</strong>ority <strong>in</strong>terest 14,767 15,120 15,462 14,026 13,236
<strong>Group</strong> <strong>in</strong>terest <strong>in</strong> stockholders’ equity 12,874 12,998 13,203 12,042 11,178
Cash flow (<strong>in</strong>come before m<strong>in</strong>ority <strong>in</strong>terest
plus depreciation and amortization) 2,860 3,226 4,184 3,867 3,501
Capital expenditures 2,712 2,418 2,398 2,746 2,918
Research and development 1,406 1,264 1,166 1,129 1,079
Operat<strong>in</strong>g <strong>in</strong>come from
Industrial Activities/Net revenues 1.9% 2.2% 4.4% 2.9% 4.8%
Operat<strong>in</strong>g <strong>in</strong>come/Average
net <strong>in</strong>vested capital 4.8% 5.4% 12.2% 6.3% 12.3%
Income before m<strong>in</strong>ority
<strong>in</strong>terest/Net revenues 1.1% 2.0% 3.4% 3.5% 3.4%
Net <strong>in</strong>come/Average stockholders’
equity (after m<strong>in</strong>ority <strong>in</strong>terest) 2.7% 4.7% 9.9% 10.5% 10.3%
Value creation (*) (480) (714) 144 (607) 26
(*) Difference between operat<strong>in</strong>g <strong>in</strong>come for the fiscal year (<strong>in</strong>clud<strong>in</strong>g <strong>in</strong>vestment <strong>in</strong>come) and the cost of average net
<strong>in</strong>vested capital at an annual rate of 10% <strong>in</strong> <strong>1999</strong>, and of 12% <strong>in</strong> the previous years.
Statistical data by geographical region
Research and
development
number Companies Employees Facilities Centers
Italy 233 122,730 83 72
Europe exclud<strong>in</strong>g Italy 454 53,654 79 34
Mercosur 67 27,883 24 9
North America 161 9,379 38 12
Other regions 133 7,673 25 4
Total 1,048 221,319 249 131
<strong>Fiat</strong> S.p.A. adopted the euro as its report<strong>in</strong>g currency as of January 1, <strong>1999</strong>, opt<strong>in</strong>g for
an early use of this currency, as allowed under Legislative Decree No. 213/1998 “Provisions
Govern<strong>in</strong>g the Introduction of the Euro <strong>in</strong> the Italian National System.”
<strong>The</strong> Consolidated and Statutory F<strong>in</strong>ancial Statements at December 31, <strong>1999</strong> of <strong>Fiat</strong>
S.p.A. are therefore denom<strong>in</strong>ated <strong>in</strong> euros. To make the respective data comparable,
the amounts for the previous years have been restated <strong>in</strong> euros us<strong>in</strong>g the fixed exchange
rate of 1 euro = 1,936.27 lire established on December 31, 1998.