Citibank Performance Evaluation Case Study

Yearly Report Consolidated and Statutory Financial Statements at December 31, 2006 101st monetary year Fiat S. p. A. Budget reports at December 31, 2006 234 Financial Review of Fiat S. p. A. 238 Income Statement 239 Balance Sheet 240 Statement of Cash Flows 241 Statement of Changes in Stockholders’ Equity I am sufficient of a craftsman to draw uninhibitedly upon my creative mind. Creative mind is a higher priority than information. Information is constrained. Creative mind encloses the world. Albert Einstein 242 Income Statement compliant with Consob Resolution No. 5519 of July 27, 2006 243 Balance Sheet according to Consob Resolution No. 15519 of July 27, 2006 244 Notes to the Financial Statements 301 Appendix †Transition of the Parent Company Fiat S. p. A. to International Financial Reporting Standards (IFRS) Financial Review of Fiat S. p. A. The fiscal reports represented and remarked on in the accompanying pages have been set up based on the company’s legal bud get summaries at December 31, 2006 to which reference ought to be made. In consistence with European Regulation no. 606 of July 19, 2002, beginning from 2005 the Fiat Group has embraced International Financial Reporting Standards (â€Å"IFRS†) gave by the International Accounting Standards Board (â€Å"IASB†) in the readiness of its united budget summaries. Based on national laws actualizing that Regulation, beginning from 2006 the Parent Company Fiat S. p. A. is introducing its fiscal reports as per IFRS, which are accounted for along with near figures for the earlier year. Working PerformanceSpecifically: Personnel and working expenses, totalling 199 million euros, involve 58 million euros in faculty costs (60 million euros in 2005), and 141 million euros in other working costs (121 million euros in 2005), which incorporate the expenses for administrations, amortization and devaluation and other working expenses. These costs expanded in general by 18 million euros fr om 2005 because of non-repeating charges. In 2006, the normal headcount was 140 workers, contrasted and a normal of 133 representatives in 2005.The company’s Income Statement is summed up in the accompanying table: Investment salary †Dividends †(Impairment misfortunes) inversions †Gains (misfortunes) on removals Personnel and working costs net of different incomes Income (costs) from huge non-repeating exchanges Financial pay (costs) Financial pay from huge non-repeating exchanges Income charges Net pay Personnel and working costs net of different incomes all out 120 million euros, contrasted and 109 million euros in 2005. IThe Parent Company earned net gain of 2,343 million euros in 2006, 1,226 million euros higher than in 2005 when the outcome included net non-repeating pay of 1,714 million euros. (in a huge number of euros) Business Solutions S. p. A. (for a sum of 147 million euros), net of the revaluation of the speculations held in Fiat Netherlands Holdin g N. V. (376 million euros because of the positive execution of the CNH and Iveco auxiliaries), Magneti Marelli Holding S. p. A. (144 million euros) and minor organizations. 2006 2005 2,461 62 2,099 †(120) †(24) †26 2,343 (424) 8 (431) (1) (109) 1,133 (62) 858 (279) 1,117 Investment salary sums 2,461 million euros contrasted and speculation cost of 424 million euros in 2005 and comprises of profits got during the period and inversion of debilitation misfortunes (net of compose downs) of ventures. In particular: Dividends complete 362 million euros and were gotten from the auxiliaries IHF †Internazionale Holding Fiat S. A. (259 million euros), Fiat Finance S. p. A. (75 million euros) and other companies.In 2005 profits got from ventures totalled 8 million euros. I Impairment deficit inversions (net of compose downs) of 2,099 million euros came about because of the revaluation of the interests in the auxiliaries Fiat Partecipazioni S. p. A. (1,388 million euros for the most part associated with Fiat Auto), Iveco S. p. A. (946 million euros) and Fiat Netherlands Holding N. V. (96 million euros associated with CNH), all recorded in earlier years, net of the debilitation deficit perceived on the interest in Comau S. p. A. (330 million euros).I Other incomes , totalling 79 million euros (72 million euros in 2005), essentially allude to the adjustment in provisional labor in progress (understandings between Fiat S. p. A. what's more, Treno Alta Velocita †T. A. V. S. p. A. ), which is estimated by applying the level of fulfillment to the complete authoritative estimation of the work, to sovereignties for the utilization of the Fiat trademark, determined as a level of the incomes produced by the Group organizations that utilization it, and the administrations of officials at the chief organizations of the Group.The increment from 2005 is essentially owing to higher charges for the utilization of the trademark. No Income (costs) from huge non-re peating exchanges is accounted for in 2006. In 2005 an addition of 1,133 million euros (net of related expenses) was recorded on the exchange in regards to the end of the Master Agreement with General Motors. In 2006, there were net budgetary costs of 24 million euros, emerging from the intrigue charges on the Company’s obligation, which was in part balanced by the increase coming about because of subsidiary money related instruments.In 2005 there were net costs of 62 million euros mostly emerging from the premium costs associated with the Mandatory Convertible Facility. No Financial salary from huge non-repeating exchanges is accounted for in 2006. In 2005 this thing included pay of 858 million euros coming about because of the capital increment of September 20, 2005 with the concurrent transformation of the Mandatory Convertible Facility. The pay speaks to the distinction between the membership cost of the new offers gave and the securities exchange cost of the offers at th e membership date, net of issuance costs.I In 2005, net impedance misfortunes perceived on speculations totalled 431 million euros, for the most part because of misfortunes from the interests in Fiat Partecipazioni S. p. A. (811 million euros associated for the most part to the misfortunes of Fiat Auto), Teksid S. p. A. , Comau S. p. A. furthermore, 234 Financial Review of Fiat S. p. A. The personal assessment income of 26 million euros is the net aftereffect of the compensation for the duty deficit brought into the national expense combination by Fiat S. p. A. in 2006 to balance the pay announced by the Group’s Italian organizations, and the IRAP charge perceived for the period.Income charge costs of 279 million euros in 2005 comprised of the inversion of conceded charge resources of 277 million euros, perceived in the fiscal summaries at December 31, 2004 comparable to the settlement in this manner made with General Motors for the end of the Master Agreement. Budgetary Revi ew of Fiat S. p. A. 235 Balance Sheet Highlights of the Parent Company’s Balance Sheet are shown in the accompanying table: (in a large number of euros) Non-current resources †of which: Investments Working capital Total net contributed capital Stockholders’ equityNet obligation (fluid assets) At December 31, 2006 At December 31, 2005 14,559 14,500 167 14,726 10,374 4,352 5,168 5,118 303 5,471 7,985 (2,514) Current monetary payables comprise of the overdraft with the auxiliary Fiat Finance S. p. A. what's more, momentary financing got from that organization, just as payables to figuring organizations for propels on receivables. Non-current money related payables comprise on the whole of advances repayable in the 2010-2013 period conceded by the auxiliary Fiat Finance S. p. A. at showcase rates as a component of the recapitalisation of auxiliaries talked about above.At December 31, 2005 monetary receivables identified with momentary financing of 2,700 million euros allowed to the auxiliary Fiat Finance S. p. A. also, due in 2006, and to money stored on the current record held with that organization. For an increasingly complete examination of incomes, reference ought to be made to the Statement of Cash Flows set out on the accompanying pages as a major aspect of the legal fiscal reports of the Parent Company Fiat S. p. A. Compromise between the Parent Company’s value and its outcome for the year with those of the GroupNon-current resources principally remember speculations for the pertinent auxiliaries of the Group. The net increment of 9,382 million euros in speculations when contrasted with December 31, 2005 stems from net reviews emerging from the inversion of recently perceived debilitation misfortunes and recapitalisations of 6,361 million euros completed during the year in the auxiliaries Fiat Partecipazioni S. p. A. (6,000 million euros), Fiat Netherlands Holding N. V. (121 million euros) and Comau S. p. A. (240 million euros), s o as to re-balance the value structure inside the Group and spread misfortunes, just as the re-buy from Mediobanca S. . A. of 28. 6% of the portions of Ferrari S. p. A. (893 million) endless supply of the call alternative accommodated in the 2002 understandings, which carried the venture to a 85% stake. Working capital, which totalled 167 million euros, comprises of inventories net of advances got, exchange, assessment and representative receivables/payables, different receivables/payables and arrangements. The 136 million euro decline over December 31, 2005 is essentially owing to the discount of VAT receivables by the Tax Authorities.Stockholders’ value at December 31, 2006 totalled 10,374 million euros, mirroring an expansion of 2,389 million euros when contrasted with December 31, 2005 because of the positive aftereffect of the year (2,343 million euros) and other minor changes (counting 28 million euros coming about because of stamping to advertise the reasonable worth c onveying measure of the Mediobanca shareholding). In accordance with the Consob Communication of July 28, 2006, set out beneath is a compromise between the Parent Company’s value at December 31, 2006 and its outcome for the ye