2006 Annual Report - Fiat SpA

The carrying amount of other current receivables is deemed to approximate their fair value.
Almost all other current receivables are due within one year, except for an amount of 59 thousand euros which is due between
one and five years.
19. Cash and cash equivalents
Cash and cash equivalents consist of the following:
At At
(in thousands of euros) December 31, 2006 December 31, 2005 Change
Cash at banks and post offices 608 345 263
Cheques and cash in hand – 150 (150)
Total Cash and cash equivalents 608 495 113
The above figures related to on demand deposits in euros in the company’s bank current accounts. The carrying amount of cash
and cash equivalents is deemed to be in line with their fair value.
The credit risk relating to cash and cash equivalents is insignificant since the counterparties are leading national and international
banks.
20. Stockholders’ equity
Stockholders’ equity amounts to 10,373,528 thousand euros at December 31, 2006, an increase of 2,388,969 thousand euros
as compared to December 31, 2005 resulting mostly from the profit for the year of 2,343,375 thousand euros.
Capital stock
Capital stock amounts to 6,377,257 thousand euros at December 31, 2006, which may be analysed as follows:
At At
(no. of shares) December 31, 2006 December 31, 2005
Shares issued and fully paid-up
- Ordinary shares 1,092,246,316 1,092,246,316
- Preference shares 103,292,310 103,292,310
- Savings shares 79,912,800 79,912,800
Total shares issued 1,275,451,426 1,275,451,426
All issued shares have a nominal value of 5 euros, with each category having rights as follows.
Each share conveys the right to a proportionate share of earnings available for distribution and of the residual net assets upon
liquidation, without harming the rights of preference and savings shares on the allocation of the earnings as described in the
following paragraph.
Each ordinary share conveys the right to vote without any restrictions whatsoever. Each preference share conveys the right to
vote only on issues that are within the purview of the Extraordinary Stockholders Meeting and on resolutions concerning the
regulations for stockholders meetings. Savings shares are not entitled to vote.
268 Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements
The profit for the year resulting from the annual financial statements of Fiat S.p.A. is to be allocated as follows:
■ to the legal reserve, 5% of profit for the year until this reserve reaches one fifth of the capital stock;
■ to savings shares, a dividend of up to 0.31 euros per share;
■ to the legal reserve (additional allocation), to the extraordinary reserve and/or to retained earnings, such allocations
as shall be resolved by the Stockholders Meeting;
■ to preference shares, a dividend of up to 0.31 euros per share;
■ to ordinary shares, a dividend of up to 0.155 euros per share;
■ to savings shares and ordinary shares, in equal proportions, an additional dividend of up to 0.155 euros per share and
■ to each ordinary, preference and savings share, in equal proportions, the balance of the profit for the year which the
Stockholders Meeting resolves to distribute.
When the dividend paid to savings shares in any year amounts to less than 0.31 euros, the difference is added to the preferred
dividend to which they are entitled in the following two years.
If the savings shares are delisted, they are transformed into registered shares if originally bearer shares, and have the right
to a higher dividend increased by 0.175 euros, rather than 0.155 euros, with respect to the dividend received by the ordinary
and preference shares.
If the ordinary shares are delisted, the higher dividend received by the savings shares with respect to the dividend received
by ordinary and preference shares is increased by 0.2 euros per share.
As no dividends were distributed in 2004 and 2005, savings shares are entitled to an additional 0.62 euros per share
at December 31, 2006.
The reconciliation of the number of shares outstanding at December 31, 2004 and at December 31, 2006 is as follows:
(Purchases)/ (Purchases)/
At Capital Sales of At Capital Sales of At
(no. of shares, in thousands) December 31, 2004 increase treasury stock December 31, 2005 increase treasury stock December 31, 2006
Ordinary shares issued 800,417 291,829 – 1,092,246 – – 1,092,246
Less: Treasury stock (4,384) – 52 (4,332) – 559 (3,773)
Ordinary shares outstanding 796,033 291,829 52 1,087,914 – 559 1,088,473
Preference shares issued 103,292 – – 103,292 – – 103,292
Less: Treasury stock – – – – – – –
Preference shares outstanding 103,292 – – 103,292 – – 103,292
Savings shares issued 79,913 – – 79,913 – – 79,913
Less: Treasury stock – – – – – – –
Savings shares outstanding 79,913 – – 79,913 – – 79,913
Total shares issued by Fiat S.p.A. 983,622 291,829 – 1,275,451 – – 1,275,451
Less: Treasury stock (4,384) – 52 (4,332) – 559 (3,773)
Total Fiat S.p.A. shares outstanding 979,238 291,829 52 1,271,119 – 559 1,271,678
Fiat S.p.A. Financial Statements at December 31, 2006 - Notes to the Financial Statements 269