annual report - FIAT SpA

Principal changes in the scope of consolidation in 2010
� On 1 February 2010 the sale of Targa Rent S.r.l., a subsidiary of the Fiat Group Automobiles sector, was
completed; this investment was already classified under assets held for sale at 31 December 2009.
� On 30 June 2010 the Fiat Group acquired the remaining 50% of the joint venture Fiat Powertrain Polska Sp. z.o.o.
(ex Fiat-GM Powertrain Polska), thereby obtaining 100% control. The 50% interest acquired was consolidated on a
line-by-line basis effective 1 January 2010.
FINANCIAL REVIEW
Operating Performance
2010 2009
Fiat Group
Fiat Group
Continuing Discontinued pre Continuing Discontinued pre
(€ million)
Operations Operations Demerger Operations Operations Demerger
Net revenues 35,880 21,342 56,258 32,684 17,968 50,102
Cost of sales 30,718 17,979 47,738 28,252 15,549 43,261
Selling, general and administrative 2,956 1,793 4,742 2,673 1,636 4,296
Research and development 1,013 418 1,431 1,010 388 1,398
Other income/(expense) (81) (60) (143) (13) (73) (89)
TRADING PROFIT/(LOSS) 1,112 1,092 2,204 736 322 1,058
Gains/(losses) on disposal of investments 12 3 15 3 1 4
Restructuring costs 118 58 176 168 144 312
Other unusual income/(expense) (14) (20) (34) (193) (198) (391)
OPERATING PROFIT/(LOSS) 992 1,017 2,009 378 (19) 359
Financial income/(expense) (400) (505) (905) (352) (401) (753)
Result from investments
Share of profit/(loss) of investees accounted for using
114 64 178 77 (50) 27
the equity method 120 70 190 65 (47) 18
Other income/(expense) from investments (6) (6) (12) 12 (3) 9
PROFIT/(LOSS) BEFORE TAXES 706 576 1,282 103 (470) (367)
Income taxes 484 198 682 448 33 481
PROFIT/(LOSS) 222 378 600 (345) (503) (848)
PROFIT/(LOSS) ATTRIBUTABLE TO:
Owners of the parent 179 341 520 (374) (464) (838)
Non-controlling interests 43 37 80 29 (39) (10)
The following review provides an analysis of net revenues and trading profit by individual Business/sector. Other data
relates to the Fiat Group as a whole, with a breakdown provided for Continuing Operations (Fiat post Demerger) and
Discontinued Operations (Fiat Industrial).
Net revenues
Net revenues for 2010 totaled €56,258 million, a 12.3% increase over 2009, when overall trading conditions were
particularly weak. Continuing Operations posted revenues of €35,880 million (+9.8%). The Automobiles business
recorded €30,130 million (+6.3%): increased sales of light commercial vehicles, and by Ferrari and Maserati, in addition
to positive currency effects, more than offset the decline in passenger cars for Fiat Group Automobiles, following the
phase-out of eco-incentives in major European markets. Components and Production Systems achieved a 23.6%
increase in revenues to €10,865 million on the back of higher demand. Discontinued Operations recorded revenues of
€21,342 million, up 18.8% over 2009, with significant volume recoveries for all businesses.
Report on Operations Financial Review – Fiat Group
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