2006 Annual Report - Fiat SpA

Costs for services rendered by Group companies consist of assistance and consultancy of an administrative and financial nature
(Fiat Gesco S.p.A. 3,948 thousand euros, Fiat Finance S.p.A. 630 thousand euros, Servizio Titoli S.p.A. 1,228 thousand euros, KeyG
Consulting S.p.A. 511 thousand euros), public relations (Fiat I.&C.S. S.c.p.A. 3,001 thousand euros), facility management (Ingest
Facility S.p.A. 3,709 thousand euros), payroll services (Fiat Sepin S.c.p.A. 3,005 thousand euros), information systems services
(eSPIN S.p.A. 1,932 thousand euros), security services (Orione S.c.p.A. 3,478 thousand euros, Sirio S.c.p.A. 1,132 thousand euros),
sponsorship, advertising and promotion services (Ferrari S.p.A. 2,066 thousand euros, Fiat France S.A. 1,734 thousand euros) and
internal auditing services (Fiat-Revisione Interna S.c.r.l. 13,704 thousand euros).
Costs for services rendered by third parties consist of professional advice and consultancy in the technical field (the high speed
train TAV) and the legal, administrative and financial fields for a total of 26,599 thousand euros, sponsorship and advertising
services for 3,217 thousand euros, information systems services for 2,209 thousand euros and insurance costs and general
expenses.
Costs for services also include the fees paid to the directors and statutory auditors of Fiat S.p.A. amounting to 8,991 thousand
euros and 147 thousand euros respectively. The amount of directors’ fees include those resolved by stockholders as well as
compensation established by the Board of Directors for directors having particular duties.
Sundry operating costs consist of costs attributed to Group companies for their initiatives in supporting the Group’s brand and
image, accruals for provisions, subscriptions to trade associations, prior year expenses and other more minor costs.
In 2005 sundry operating costs included the costs for an indemnity paid on the termination of the agreements with IBM and higher
costs attributed to Group companies for their initiatives in supporting the Group’s brand and image.
7. Income (expenses) from significant non-recurring transactions
There is no non-recurring income or expense in 2006.
The net income from significant non-recurring transactions of 1,133,110 thousand euros in 2005 consisted of the amount
of 1,135,000 thousand euros received on the termination of the Master Agreement with General Motors, net of the related
transaction costs (legal expenses and other costs for a total of 1,890 thousand euros).
256 Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements
8. Financial income (expenses)
Financial income (expenses) can be analysed as follows:
(in thousands of euros) 2006 2005
Financial income 55,282 105,787
Financial (expenses) (145,945) (182,304)
Net income (expenses) from derivative financial instruments 65,816 14,832
Total Financial income (expenses) (24,847) (61,685)
Financial income can be analysed as follows:
(in thousands of euros) 2006 2005
Financial income from Group companies:
- Interest income from Fiat Finance S.p.A. current account 13,258 40,387
- Interest income from Fiat Finance S.p.A. loans 28,209 48,868
- Commission income from sureties and personal guarantees 3,631 4,397
- Other financial income 979 717
Total Financial income from Group companies 46,077 94,369
Financial income from third parties:
- Interest income on bank and other deposits 90 102
- Interest income on tax credits 8,506 9,464
- Commission income from third party sureties and guarantees 604 1,836
- Other third party financial income 5 16
Total Financial income from third parties 9,205 11,418
Total Financial income 55,282 105,787
Financial expenses can be analysed as follows:
(in thousands of euros) 2006 2005
Financial expenses with Group companies:
- Interest expense from Fiat Finance S.p.A. current account 3,032 –
- Interest expense from Fiat Finance S.p.A. loans 122,487 –
- Commissions and other charges payable to Intermap (Nederland) B.V. 3,992 2,937
- Fiat Finance S.p.A. service commissions 147 5
Total Financial expenses with Group companies 129,658 2,942
Financial expenses with third parties:
- Interest expense on the Mandatory Convertible Facility – 97,288
- Commissions on the Mandatory Convertible Facility – 68,945
- Interest expense and charges for the sale of receivables 14,286 11,695
- Financial expenses for employee benefits 732 655
- Other third party interest and financial expenses 1,286 721
Total Financial expenses with third parties 16,304 179,304
Exchange losses (income) (17) 58
Total Financial expenses 145,945 182,304
Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements 257