IFIL Bilancio 2003
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Cover bil ifil ING 2003 17-06-2004 12:08 Pagina 1 IFIL GROUP IN 2003 IFIL GROUP IN 2003 CONSOLIDATED FINANCIAL STATEMENTS AND STATUTORY FINANCIAL STATEMENTS AT DECEMBER 31, 2003 CONSOLIDATED FINANCIALCONSOLIDATED AND STATUTORY FINANCIAL STATEMENTS DECEMBER 31, AT 2003 STATEMENTS Cover bil ifil ING 2003 17-06-2004 12:08 Pagina 2 Joint-stock Company Capital stock € 1,075,195,737, fully paid-in Registered office in Turin - Corso Matteotti 26 - Turin Company Register No. 00914230016 IFIL GROUP IN 2003 CONSOLIDATED FINANCIAL STATEMENTS AND STATUTORY FINANCIAL STATEMENTS AT DECEMBER 31, 2003 TABLE OF CONTENTS CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2003 2 Consolidated balance sheet 6 Consolidated statement of operations 8 Notes to the consolidated financial statements STATUTORY FINANCIAL STATEMENTS AT DECEMBER 31, 2003 78 Balance sheet 80 Statement of operations 81 Notes to the statutory financial statements 101 Annexes 114 REPORTS OF THE BOARD OF STATUTORY AUDITORS 117 REPORTS OF THE INDEPENDENT AUDITORS 119 IFIL GROUP’S COMPANIES This is an English translation of the Italian original “Bilancio consolidato e Bilancio di esercizio al 31 dicembre 2003” approved by the IFIL Board of Directors on March 29, 2004, which has been prepared solely for the convenience of the reader. The version in Italian takes precedence and for complete information about IFIL S.p.A. and the Group, reference should be made to the full original report in Italian “Il Gruppo IFIL nel 2003” containing the Directors’ Report on Operations and the Consolidated and Statutory Financial Statements also available on the corporate website: http://www.ifil.it BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 1 Group CONSOLIDATED FINANCIAL STATEMENTS 1 AT DECEMBER 31, 2003 BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 2 Group CONSOLIDATED BALANCE SHEET - ASSETS 12/31/2003 12/31/2002 12/31/2002 € in millions restated (a) published AMOUNTS DUE FROM STOCKHOLDERS FOR SHARES SUBSCRIBED BUT NOT CALLED 0 1 0 FIXED ASSETS Intangible fixed assets (note 1) Start-up and expansion costs 155 81 4 Research, development and advertising expenses 22 18 0 Industrial patents and intellectual property rights 406 417 0 Concessions, licenses, trademarks and similar rights 383 493 26 Goodwill 159 236 7 Intangible assets in progress and advances 255 281 18 Other intangible assets 167 366 8 Differences on consolidation 3,164 4,331 960 Total intangible fixed assets 4,711 6,223 1,023 Property, plant and equipment (note 2) Land and buildings 3,117 4,239 429 Plant and machinery 3,401 3,728 7 Industrial and commercial equipment 2,104 2,182 671 Other assets 1,363 2,151 56 Construction in progress and advances 828 1,023 46 Total property, plant and equipment 10,813 13,323 1,209 Financial fixed assets (note 3) Investments in . unconsolidated subsidiaries 528 569 11 . associated companies 4,286 3,974 2,068 . other companies 944 1,357 674 Total investments 5,758 5,900 2,753 Receivables from associated companies 1 1 1 others 181 201 154 Total receivables 182 202 155 Other securities 84 2,463 18 Treasury stock 45 45 42 Finance lease contracts receivable 1,797 2,947 0 Investments where the investment risk is borne by policyholders and those related to pension plan management 0 6,930 0 Other financial fixed assets 315 359 359 Total financial fixed assets 8,181 18,846 3,327 TOTAL FIXED ASSETS 23,705 38,392 5,559 CURRENT ASSETS Inventories (note 4) Raw materials and supplies 1,259 1,399 151 Work in progress and semifinished products 983 1,122 41 Contract work in progress 4,077 5,293 0 Finished goods and merchandise 4,431 4,242 412 Advances to suppliers 5,188 3,824 0 Total inventories 15,938 15,880 604 (a) Restated for purposes of comparison to give effect to the line-by-line consolidation of the data of the Fiat Group and Soiem. CONSOLIDATED FINANCIAL STATEMENTS 2 CONSOLIDATED BALANCE SHEET - ASSETS AT DECEMBER 31, 2003 BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 3 Group 12/31/2003 12/31/2002 12/31/2002 € in millions restated (a) published CURRENT ASSETS (continued) Receivables (note 5) Trade receivables 4,679 6,294 986 Receivables from unconsolidated subsidiaries 78 55 1 Receivables from associated companies 768 477 4 Other receivables 5,232 7,168 367 Total receivables 10,757 13,994 1,358 Financial assets not held as fixed assets (note 6) Investments 32 810 0 Treasury stock 2 0 0 Other securities 4,357 7,112 321 Financial receivables from unconsolidated subsidiaries 521 519 8 Financial receivables from associated companies 644 1,313 0 Financial receivables from parent companies 0 4 0 Financial receivables from others 9,605 16,596 7 Total financial assets not held as fixed assets 15,161 26,354 336 Cash Banks and post office accounts 3,443 3,697 242 Cash on hand 9 25 0 Checks 9 11 0 Total cash 3,461 3,733 242 TOTAL CURRENT ASSETS 45,317 59,961 2,540 ACCRUED INCOME AND PREPAID EXPENSES (note 7) 849 1,280 40 TOTAL ASSETS 69,871 99,634 8,139 (a) Restated for purposes of comparison to give effect to the line-by-line consolidation of the data of the Fiat Group and Soiem. CONSOLIDATED FINANCIAL STATEMENTS 3 CONSOLIDATED BALANCE SHEET - ASSETS AT DECEMBER 31, 2003 BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 4 Group CONSOLIDATED BALANCE SHEET - LIABILITIES AND STOCKHOLDERS' EQUITY 12/31/2003 12/31/2002 12/31/2002 € in millions restated (a) published STOCKHOLDERS' EQUITY (note 8) Stockholders' equity of the Group Capital stock 1,075 442 442 Additional paid-in capital 1,049 801 801 Revaluation reserves 3 3 3 Legal reserve 146 101 101 Treasury stock valuation reserve 47 42 42 Retained earnings and other reserves 2,148 1,882 1,882 Cumulative translation adjustments (469) (196) (196) Net loss (45) (367) (367) Total stockholders' equity of the Group 3,954 2,708 2,708 Minority interest - capital and reserves 8,040 12,347 935 Minority interest - net loss (1,477) (3,651) 109 TOTAL STOCKHOLDERS' EQUITY 10,517 11,404 3,752 RESERVES FOR RISKS AND CHARGES (note 9) Reserve for pensions and similar obligations 1,571 1,527 68 Income tax reserves 422 1,571 136 Consolidation reserve for risks and future expenses 70 0 0 Other reserves 3,830 4,515 387 Insurance policy liabilities and accruals 89 9,605 0 Other insurance policy liabilities and accruals 0 7,000 0 TOTAL RESERVES FOR RISKS AND CHARGES 5,982 24,218 591 RESERVE FOR EMPLOYEE SEVERANCE INDEMNITIES (note 10) 1,330 1,625 15 PAYABLES (note 11) Bonds 9,910 11,018 145 Convertible bonds 1,765 2,125 0 Borrowings from banks 10,215 14,196 1,156 Other financial payables 1,405 1,634 425 Advances 9,166 9,326 16 Trade payables 12,596 13,014 862 Notes payable 955 2,438 801 Payables to unconsolidated subsidiaries 69 68 5 Payables to associated companies 854 1,117 10 Taxes payable 944 1,390 87 Social security payable 328 354 41 Other payables 1,500 2,223 167 TOTAL PAYABLES 49,707 58,903 3,715 ACCRUED EXPENSES AND DEFERRED INCOME (note 12) 2,335 3,484 66 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 69,871 99,634 8,139 (a) Restated for purposes of comparison to give effect to the line-by-line consolidation of the data of the Fiat Group and Soiem. CONSOLIDATED FINANCIAL STATEMENTS 4 CONSOLIDATED BALANCE SHEET – LIABILITIES AT DECEMBER 31, 2003 AND STOCKHOLDERS’ EQUITY BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 5 Group GUARANTEES GRANTED, COMMITMENTS AND OTHER MEMORANDUM ACCOUNTS (note 13) 12/31/2003 12/31/2002 12/31/2002 € in millions restated (a) published GUARANTEES GRANTED Unsecured guarantees Suretyships on behalf of associated companies 10 21 0 on behalf of others 3,162 1,678 62 Total suretyships 3,172 1,699 62 Guarantees of notes on behalf of others 261 316 Other unsecured guarantees on behalf of unconsolidated subsidiaries 1 0 0 on behalf of associated companies 295 351 0 on behalf of others 2,813 3,050 28 Total other unsecured guarantees 3,109 3,401 28 Total unsecured guarantees 6,542 5,416 90 Secured guarantees on behalf of others 47 501 185 TOTAL GUARANTEES GRANTED 6,589 5,917 275 COMMITMENTS Commitments related to derivative financial instruments 22,337 39,726 1,191 Commitments to purchase property, plant and equipment 330 499 5 Other commitments 10,686 10,213 329 TOTAL COMMITMENTS 33,353 50,438 1,525 THIRD-PARTY ASSETS HELD BY THE GROUP 2,017 2,071 0 GROUP ASSETS HELD BY THIRD PARTIES 4,672 20,811 54 OTHER MEMORANDUM ACCOUNTS 380 267 0 (a) Restated for purposes of comparison to give effect to the line-by-line consolidation of the data of the Fiat Group and Soiem. CONSOLIDATED FINANCIAL STATEMENTS 5 GUARANTEES GRANTED, COMMITMENTS AND AT DECEMBER 31, 2003 OTHER MEMORANDUM ACCOUNTS BIL ifil IMPAGINATO ING 2003 18-06-2004 18:11 Pagina 6 Group CONSOLIDATED STATEMENT OF OPERATIONS 2003 2002 2002 € in millions restated (a) published VALUE OF PRODUCTION (note 14) Revenues from sales and services 53.510 60.795 5.364 Change in work in progress, semifinished and finished products inventories 694 (809) 7 Change in contract work in progress (1.075) 222 0 Additions to internally produced fixed assets 688 1.107 0 Other income and revenues: revenue grants 53 47 0 other 1.684 2.125 19 Total other income and revenues 1.737 2.172 19 TOTAL VALUE OF PRODUCTION 55.554 63.487 5.390 COSTS OF PRODUCTION (note 15) Raw materials, supplies and merchandise (30.917) (32.965) (2.676) Services (9.853) (11.332) (1.441) Leases and rentals (434) (531) (64) Personnel: salaries and wages (5.339) (6.036) (578) social security contributions (1.409) (1.519) (154) employee severance indemnities (247) (259) (3) employee pensions and similar obligations (188) (105) (5) other