Consolidated Statement of Cash Flows

Following is a summary statement of cash flows and related comments. A complete statement of cash flows is provided in the Consolidated Financial Statements. 

(€ million)20132012
A) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR   17,657 17,526
B) CASH FROM/(USED IN) OPERATING ACTIVITIES 7,589 6,444
C) CASH FROM/(USED IN) INVESTING ACTIVITIES (8,086) (7,537)
D) CASH FROM/(USED IN) FINANCING ACTIVITIES 3,188 1,643
Currency translation differences (909) (419)
E) NET CHANGE IN CASH AND CASH EQUIVALENTS 1,782 131
F) CASH AND CASH EQUIVALENTS AT END OF YEAR 19,439 17,657

Operating activities generated cash of €7,589 million, of which €6,121 million from income-related cash inflows (i.e., net profit plus amortization and depreciation, dividends, changes in provisions and items related to sales with buy‑back commitments, net of gains/losses on disposals and other non-cash items) and €1,468 million from the decrease in working capital.

Investing activities absorbed €8,086 million in cash, consisting primarily of a €7,440 million increase in tangible and intangible fixed assets (including €2,042 million in capitalized development costs) and a €449 million increase in receivables from financing activities, mainly consisting of dealer financing in Latin America and China, as well as a €231 million increase in equity investments. The change in equity investments includes the additional investment in RCS (€94 million), capitalization of the 50% JV interests in Fiat India Automobiles (€46 million) and GAC Fiat Automobiles (€37 million), and the acquisition of the remaining 50% in VM Motori (€34 million).

Financing activities generated €3.2 billion in cash. During the year, Fiat S.p.A. issued bonds totaling €2.9 billion and repaid a €1 billion bond at maturity in February. In addition, there were new medium-term borrowings of approximately €2.6 billion1, which more than covered medium‑term borrowings maturing during the period (€2.0 billion).

1 Excluding approximately €0.6 billion in new notes issued as repayment for existing notes in relation to the renegotiation of the Tranche B Term Loan by Chrysler in June.