Fiat Italian Gaap vs Ifrs

Fiat GROUP

IAS/IFRS First Time Adoption

March 30, 2005

Disclaimer

This document was prepared to provide a general overview of the impacts of IAS/IFRS on the accounts of Fiat Group during the transition from Italian GAAP to IAS/IFRS As provided for in IFRS 1 – First-time adoption of International Financial Reporting Standards – the information is prepared in accordance with IAS/IFRS published as of December 31, 2004 and applicable as of January 1, 2005 Information presented in this document is based on preliminary and unaudited data; as such, this information is subject to change

IFRS = International Financial Reporting Standards IAS = International Accounting Standards SIC = IAS Interpretation

IAS/IFRS First time adoption Mar 30, 2005 - slide 2

Agenda

General framework IAS/IFRS applied to Fiat Going forward

IAS/IFRS First time adoption Mar 30, 2005 - slide 3

General framework – EU Regulation and Objectives of IAS/IFRS

European Parliament Regulation 1606 of July 19, 2002 requires adoption of IFRS for all EU listed companies starting January 1, 2005 First IAS/IFRS annual report for fiscal year 2005 with 2004 comparatives Main objective of IAS/IFRS is to develop a single set of high quality, understandable and enforceable global accounting standards to allow transparent and comparable information in financial reporting

IAS/IFRS First time adoption Mar 30, 2005 - slide 4

General framework – IAS/IFRS key principles

Economic substance over legal form Limited use of alternative valuation criteria to historical cost, such as fair value (financial instruments) or present value (reserves) is required Retrospective application of the new standards to opening equity as of January 1, 2004 to properly establish IFRS based data

IAS/IFRS First time adoption Mar 30, 2005 - slide 5

General framework – Implementation status at Fiat

Fiat will adopt IAS/IFRS for Consolidated Financial Statements as of January 1, 2005 First reporting period...