Chrysler 2008 Annual Report Download - page 177

Sales and purchases of treasury shares in 2008 were as follows: sales of 71,000 ordinary shares (at a total price of €1 million) were
made on the exercise of stock options. Purchases of 16.788 million ordinary shares (at a total price of €239 million) were made
under a share buy-back programme (the “Programme”) announced by the Board of Directors following the approval given by
Shareholders at the General Meeting held on 5 April 2007 and renewed on 31 March 2008. This authorisation is effective for a
period of 18 months beginning 31 March 2008. The buy-backs, whose purpose is the servicing of stock option plans and investment
of liquidity, are authorised up to a maximum number of shares for the three share classes not to exceed 10% of share capital or an
aggregate value of €1.8 billion, including the €656.6 million in Fiat shares currently held by the Company. Under the Programme
(which is renewable), the purchases are to be carried out on regulated markets in accordance with the following conditions:
the Programme will end on 30 September 2009, or once the maximum purchase value of €1.8 billion (including the €656.6 million
in Fiat shares currently held by the Company) or a number of shares equivalent to 10% of share capital is reached;
the maximum purchase price may not exceed the reference price reported on the Stock Exchange on the day before the purchase
is made by more than 10%;
the maximum number of shares purchased daily may not exceed 20% of the total daily trading volume for each share class.
At 13 February 2009, the total number of ordinary shares purchased since the beginning of the programme was 37.27 million, for a
total invested amount of €665 million. Although the share buy-back programme has been placed on hold, the Board in
consideration of the fact that the current authorisation expires on 30 September 2009 and to maintain the necessary operating
flexibility for an adequate period, has decided proposed to Shareholders at the Annual General Meeting that the Programme be
renewed for a period of 18 months and for a maximum amount of shares for the three classes not to exceed 10% of share capital
or € 1.8 billion including the €656.6 million in Fiat shares currently held by the Company. Should renewal of the programme be
approved, the Company would, however, have no obligation to buyback shares.
In 2007, Treasury share sales of 2.404 million ordinary shares (at a total price of €31 million) were made on the exercise of stock
options. Purchases of 20.482 million ordinary shares (at a total price of €426 million) were made under the above-mentioned
Programme.
Capital reserve
At 31 December 2008, the Capital reserve, amounting to €682 million, refers to the Additional paid-in capital, consisting of part
of the share premium paid by the subscribers of the capital increase made after the extinguishment of the Mandatory Convertible
Facility on 20 September 2005; the remaining share premium of €859 million arising from this is into Earning reserves.
Earning reserves
The principal earning reserves are as follows:
The legal reserve of Fiat S.p.A. of €640 million at 31 December 2008 (€536 million at 31 December 2007);
Retained earnings totalling €2,313 million at 31 December 2008 (retained earnings totalling €622 million at 31 December 2007);
The net profit before minority interests of €1,612 million at 31 December 2008 (net profit of €1,953 million for the at 31 December
2007);
The share based payments reserve of €96 million at 31 December 2008 (€93 million at 31 December 2007).
Fiat Group Consolidated Financial Statements at 31 December 2008176