2006 Annual Report - Fiat SpA

Statement of Cash Flows
(in thousands of euros) 2006 2005
A) Cash and cash equivalents at beginning of period 495 325
B) Cash flows from (used in) operating activities during the period:
Net result for the period 2,343,375 1,117,325
Amortisation and depreciation 2,882 2,918
Non-cash gain from extinguishment of the Mandatory Convertible Facility – (859,000)
Non-cash stock option costs 11,297 10,041
(Impairment losses) reversals of impairment losses of investments (2,099,350) 430,789
Capital losses/gains on the disposal of investments (329) (93)
Change in provisions for employee benefits and other provisions 7,990 2,100
Change in deferred taxes 3,438 277,000
Change in working capital 151,872 (76,028)
Total 421,175 905,052
C) Cash flows from (used in) investment activities:
Investments:
- Recapitalisations of subsidiaries (6,361,126) (165,193)
- Acquisitions (919,412) –
Other investments (tangible and intangible assets and other financial assets) (15,529) (1,808)
Proceeds from the sale of:
- Investments 2,357 –
- Other non-current assets (tangible, intangible and other) 313 261
Total (7,293,397) (166,740)
D) Cash flows from (used in) financing activities:
Change in current financial receivables 2,991,721 (753,091)
Change in non-current financial payables 2,804,767 –
Change in current financial payables 1,070,047 14,548
Capital increase (a) – –
Sale of treasury stock 5,800 401
Dividend distribution – –
Total 6,872,335 (738,142)
E) Total change in cash and cash equivalents 113 170
F) Cash and cash equivalents at end of period 608 495
(a) In 2005, the item “Capital increase” is shown net of the repayment of the Mandatory Convertible Facility (3 billion euros), as it did not give rise to cash flows.
240 Fiat S.p.A. Financial Statements at December 31, 2006
Statement of Changes
in Stockholders’ Equity
Capital increase
for conversion Fair value
of the Mandatory adjustments Valuation of stock
At Convertible recognised directly option plans and Net result for the At
(in thousands of euros) December 31, 2004 Facility in equity other changes period December 31, 2005
Capital stock 4,918,113 1,459,144 6,377,257
Additional paid-in capital – 681,856 681,856
Reserve under law no. 413/1991 22,591 22,591
Legal reserve 446,562 446,562
Reserve for treasury stock in portfolio 26,413 1,297 27,710
Extraordinary reserve 1,632 (1,297) 335
Retained earnings (losses) (813,435) 1,698 (811,737)
Treasury stock (26,413) (1,297) (27,710) (*)
Gains (losses) recognised directly in equity 74,397 59,870 134,267
Stock option reserve 6,062 10,041 16,103
Net result for the period 1,117,325 1,117,325
Total Stockholders’ equity 4,655,922 2,141,000 59,870 10,442 1,117,325 7,984,559
(*) Treasury stock at December 31, 2005 consists of 4,331,708 ordinary shares for a total nominal value of 21,659 thousand euros.
Allocation Fair value
of the net result adjustments Valuation of stock
At for the prior recognised directly option plans and Net result for the At
December 31, 2005 period in equity other changes period December 31, 2006
Capital stock 6,377,257 6,377,257
Additional paid-in capital 681,856 859,000 1,540,856
Reserve under law no. 413/1991 22,591 22,591
Legal reserve 446,562 446,562
Reserve for treasury stock in portfolio 27,710 (3,571) 24,139
Extraordinary reserve 335 5,800 6,135
Retained earnings (losses) (811,737) 258,325 (553,412)
Treasury stock (27,710) 3,571 (24,139) (*)
Gains (losses) recognised directly in equity 134,267 28,497 162,764
Stock option reserve 16,103 11,297 27,400
Net result for the period 1,117,325 (1,117,325) 2,343,375 2,343,375
Total Stockholders’ equity 7,984,559 – 28,497 17,097 2,343,375 10,373,528
(*) Treasury stock at December 31, 2006 consists of 3,773,458 ordinary shares for a total nominal value of 18,867 thousand euros.
Statement of total recognised income and expenses for 2006 and 2005
(in thousands of euros) 2006 2005
Gains (losses) recognised directly in the fair value reserve (investments in other companies) 28,497 58,958
Gains (losses) recognised directly in equity 28,497 58,958
Transfer from cash flow hedge reserve – 912
Net result for the period 2,343,375 1,117,325
Total of recognised income (expense) for the period 2,371,872 1,177,195
Fiat S.p.A. Financial Statements at December 31, 2006 241