2009 1st Half Report - Indesit

2009 1st Half Report

HALF-YEAR
REPORT AT
30 JUNE 2009

Half-year report at 30 June 2009
Half-year report at 30 June 2009
Milan, 30 July 2009
Highlights
Revenue of 1,203.7 million euro (1,525.3 million euro in the first
half of 2008).
Revenue down by 15.2% at constant exchange rates; down by
21.1% at current exchange rates.
Contraction of 20.3% in the volume of sales of household
appliances due to the slowdown in demand.
Net non-recurring charges of 34.8 million euro (16.8 million euro
in the first half of 2008), mainly due to the reorganisation of
manufacturing activities.
Operating profit, gross of non-recurring charges of 50.2 million
euro (89.2 million euro in the first half of 2008).
Operating profit at constant exchange rates of 48.4 million euro;
15.4 million euro at current exchange rates.
Average European market share up by 0.5 percentage points
during the first four months of the year.
Net working capital of 163.8 million euro (250.3 million euro at 30
June 2008).
Net borrowing of 524.1 million euro (592.5 million euro at 30
June 2008).
Negative free cash flow of 50.2 million euro (negative by 261.3
million euro in the first half of 2008).
Contents
Highlights 2
Company bodies 3
Interim report on operations 4
Condensed half-year consolidated
financial statements 19
Notes 25
Attachments 51
30 june 2009 30 june 2008 Change
Euro
Euro
Euro
%
%
milion
milion
milion
Revenue 1.203,7 100,0% 1.525,3 100,0% (321,6) (21,1%)
Gross operating profit before non recurring items 110,0 9,1% 149,8 9,8% (39,8) (26,6%)
Gross operating profit 83,0 6,9% 136,8 9,0% (53,8) (39,3%)
Operating profit before non recurring items 50,2 4,2% 89,2 5,9% (39,1) (43,8%)
Operating profit 15,4 1,3% 72,4 4,7% (57,0) (78,8%)
Profit before taxation (20,8) (1,7%) 58,5 3,8% (79,3) (135,5%)
Profit for the period (22,6) (1,9%) 34,1 2,2% (56,7) (166,3%)
Profit attributable to the Group (22,5) (1,9%) 33,7 2,2% (56,2) (166,9%)
II Q 2009 II Q 2008 Change
Euro
Euro
Euro
%
%
milion
milion
milion
Revenue 613,0 100,0% 769,1 100,0% (156,1) (20,3%)
Gross operating profit before non recurring items 62,6 10,2% 73,6 9,6% (11,0) (14,9%)
Gross operating profit 49,3 8,0% 59,5 7,7% (10,3) (17,2%)
Operating profit before non recurring items 32,3 5,3% 44,1 5,7% (11,7) (26,7%)
Operating profit 14,1 2,3% 26,2 3,4% (12,0) (46,0%)
Profit before taxation (4,3) (0,7%) 22,7 2,9% (27,0) (119,0%)
Profit for the period (7,9) (1,3%) 12,6 1,6% (20,5) (162,8%)
Profit attributable to the Group (8,0) (1,3%) 12,1 1,6% (20,1) (165,8%)
%
%
2

Half-year report at 30 June 2009
Board of Directors
Chairman
Vice Chairman
Chief Executive Officer
Directors
Board of Statutory Auditors
Chairman
Auditors
Alternate Auditors
Human Resources Committee
Audit Committee
Innovation and Technology Committee
Members who are directors
Members who are not directors
Representative of the savings shareholders
Indipendent Auditor
Company bodies
Vittorio Merloni
Andrea Merloni
Marco Milani
Bruno Busacca
Innocenzo Cipolletta
Adriano De Maio
Luca Garavoglia
Mario Greco
Hugh Malim
Emma Marcegaglia
Antonella Merloni
Maria Paola Merloni
Paolo Monferino
Angelo Casò
Andrea Amaduzzi
Luigi Biscozzi
Francesco Nobili
Serenella Rossano
Mario Greco (Chairman)
Maria Paola Merloni
Paolo Monferino
Hugh Malim (Chairman)
Innocenzo Cipolletta
Antonella Merloni
Adriano De Maio (Chairman)
Andrea Merloni
Marco Milani
Luca Garavoglia
Paolo Monferino
Francesco Trovato
Adriano Mencarini
Massimo Rosini
Adriano Gandola
KPMG S.p.A.
Manager charged with preparing the company’s financial reports
Andrea Crenna
3

Half-year report at 30 June 2009
Interim report on
operations
at 30 June 2009
4

Half-year report at 30 June 2009
Introduction
The Half-year Report at 30 June 2009, presented pursuant to paragraph 2 of article 154-ter
of the Consolidated Finance Act, has been prepared in accordance with International
Financial Reporting Standards (IFRS) and, in particular, IAS 34 – Interim Financial
Reporting. It comprises this Interim report on operations, the condensed, half-year
consolidated financial statements and the confirmation required by paragraph 5 of article
154-bis of the Consolidated Finance Act.
The condensed, half-year consolidated financial statements have been reviewed by KPMG
S.p.A..
All the amounts presented below are stated in millions of euro, and the comparisons made
(in brackets) relate to information for the prior year. Percentages (margins and changes) are
determined with reference to amounts stated in thousands of euro.
The Group reporting to Indesit Company S.p.A. is hereafter referred to “Indesit Company” or
“Indesit” or simply the “Group”. When the commentary relates to the parent company or
individual subsidiaries, their names and legal form are stated in full.
The amounts presented at constant exchange rates with respect to 2008 were estimated by
taking account of the transaction effects and the effect of translating to euro (the Group's
functional currency) the operations reported in the foreign currency financial statements.
Economic background
During the first half of 2009, the Group was heavily penalised by the major contraction in
demand for household appliances in almost every market and, in particular, in those where
Indesit Company has a leadership position: UK, Italy, France and Russia. By contrast, the
slowdown in demand in countries where the Group's market share is not significant or, in any
case, is lower - such as Germany - was less marked, with moderate growth in some cases.
In western markets, the downward trend has affected sales of built-in products more than
those of free-standing appliances, while the opposite is true in eastern markets where there
is less emphasis on built-in items due to lifestyle considerations.
The market downturn has been most severe for the cooking and refrigeration families of
products. Demand for washers and dryers has fallen by slightly less than the overall
average.
5,0%
0,0%
-5,0%
-10,0%
-15,0%
-20,0%
Industry shipment (variation % vs the same period of previous
year) Exchage rates vs EUR 30 June 09 30 June 08
1,6% 1,0%
GBP Average exchange rate 0,894 0,775
Closing exchange rate 0,852 0,792
RUR
-1,9%
Average exchange rate
Closing exchange rate
44,103
43,881
36,620
36,948
PLN Average exchange rate 4,475 3,490
-11,4%
Closing exchange rate 4,452 3,351
-17,4%
-15,6%
TRY Average exchange rate 2,165 1,890
Closing exchange rate 2,161 1,932
Q108 Q208 Q308 Q408 Q109 Q209
The considerations for the principal currencies used by the Group are somewhat similar to
those made above in relation to market demand: the generalised depreciation against the
euro of the British pound, the Russian rouble, the Polish zloty and the Turkish lira has
squeezed the results of the Group in terms of both sales and margins.
5

Half-year report at 30 June 2009
During the first half of 2009, with respect to the first half of 2008, the euro 1 appreciated by
10.9% against the British pound, 18.6% against the Russian rouble, 8.6% against the
Turkish lira and 30.6% against the Polish zloty.
Consolidated results
Group revenue for the first half of 2009 totalled 1,203.7 million euro (1,525.3 million euro),
down 21.1%. At constant exchange rates, 2009 first half revenue would have been 1,293.7
million euro, down 15.2%.
The reduction in revenue principally reflects the lower sales of finished products, while
revenue from services was down only slightly despite the depreciation of the British pound.
900
800
700
600
500
400
300
200
100
0
Total Revenue (euro/million)
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009
Revenue Breakdown 30 June 09 30 June 08 Change
%
%
Appliances 1.102,1 1.421,9 -22,5%
Services 101,6 103,4 -1,7%
Total Revenue 1.203,7 1.525,3 -21,1%
The decline in revenue from the sale of finished products was mainly due to lower volume,
down about 20.3%, following the slump in demand in certain markets where the Group has a
leadership position. This was compounded by approximately a 5.6% exchange rate effect
resulting from the appreciation of the euro against the principal currencies in which the
Group operates. These adverse effects were partially offset by a significant 3.5% rise in unit
revenues (price/mix effect).
1 Determined with reference to the average monthly rates reported by the European Central Bank
6

Half-year report at 30 June 2009
The gross operating profit (EBITDA 2 ) for the first half of 2009 was 83.0 million euro (136.8
million euro), representing 6.9% (9.0%) of revenue.
The operating profit (EBIT 3 ) for the first half of 2009 was 15.4 million euro (72.4 million
euro), representing 1.3% (4.7%) of revenue.
Before non-recurring income and expenses, operating profit (EBIT) was 50.2 million euro
(89.2 million euro), representing 4.2% (5.8%) of revenue.
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0%
EBIT after of non recurring items by quarter
Q108 Q208 Q308 Q408 IQ09 IIQ09
60
50
40
30
20
10
0
EBIT after of non
recurring (million euro
- right)
EBIT after of non
recurring (% of
revenue -left )
Non recurring items - first half 2009
Non recurring charges for restructuring (41,1)
Other non recurrings items 6,3
Total (34,8)
The decline in operating profitability with respect to the first half of 2008 was due to negative
factors associated with international market conditions, negative factors affecting the results
for 2009 which will benefit the Group over the medium term, and positive factors deriving
from successful actions and corporate transactions.
The Group's operating results were penalised by a marked reduction in the volume of sales
caused by the collapse in demand; with regard to production, this contraction in volume
resulted in the lower absorption of industrial fixed costs. Unfavourable exchange rate
movements during the first half of 2009 also lowered operating profits by about 33.0 million
euro overall.
The higher non-recurring charges will, on the other hand, benefit future years. These
charges principally relate to closure of the Kinmel Park factory in the UK and the
reorganisation of production at the None factory in Italy.
The Group has partially offset the adverse effects described above by an improvement in the
price/mix, the constant enhancement of product quality and the positive results from Service
activities. Additional positive effects stemmed from a reduction in logistics costs, mainly due
to lower volume despite a deterioration in the market mix with respect to the first half of 2008,
as well as from the lower cost of raw materials and lower transformation costs due to the
steady improvement of production processes. Efforts have also continued to lower general
expenses and, in particular, to reduce advertising and promotion costs.
At constant exchange rates, EBIT for the first half of 2009 would have been 48.4 million euro.
Net financial expenses amounted to 36.2 million euro (13.9 million euro); this increase
mainly reflects the higher cost of hedging exchange rate risks and an increase in the
exchange rate losses incurred in relation to unhedged exposures, due to the greater volatility
of exchange rates and a rise in the total average exposure. An additional adverse effect
came from the mark-to-market adjustment of derivatives hedging the interest-rate risk on
borrowings, including the income statement effect generated by financial instruments
representing cash flow hedges.
Net borrowing costs, on the other hand, fall due to the decline in interest rates.
2 EBITDA: operating profit reported in the consolidated income statement, stated gross of depreciation
and amortisation.
3 EBIT: operating profit reported in the consolidated income statement.
7

Half-year report at 30 June 2009
The consolidated net loss for the first half of 2009 was 22.5 million euro (profit of 33.7
million euro), after recognising significant net non-recurring charges, as mentioned above,
totalling 34.8 million euro (16.8 million euro).
Results by segment
The Group's operating segments consist of geographical areas. Pursuant to IFRS 8, these
were determined with reference to the availability of separate financial information and
consistent with the principal way in which results are periodically reviewed by the Chief
operating decision maker, in order to evaluate performance and the effect of strategic
decisions.
The Group identifies the following operating segments:
- Italy;
- UK and Ireland;
- Russia, comprising Russia and the Asian republics;
- Western Europe, comprising France, Spain, Portugal, Germany, Austria, Switzerland,
Benelux, Scandinavia, Lithuania, Estonia and Latvia;
- Eastern Europe, comprising Poland, Ukraine, Moldova, Czech Republic, Hungary,
Romania, Greece, Turkey, Bulgaria and the Balkans;
- Overseas, which includes all other non-European markets.
First half of 2009
(million Euro)
Total
Areas
Costs not
allocated
Total
Group
Revenue 1.203,7 1.203,7
Operative costs (1.129,3) (59,1) (1.188,4)
Operating margin 74,5 (59,1) 15,4
First half of 2008
(million Euro)
Total
Areas
Costs not
allocated
Total
Group
Revenue 1.525,3 1.525,3
Operative costs (1.409,9) (43,1) (1.452,9)
Operating margin 115,4 (43,1) 72,4
The costs not allocated to segments principally comprise corporate costs and restructuring
charges.
8

Half-year report at 30 June 2009
Italy Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 229,0 250,2 (21,2)
Operating Margin 26,0 25,0 1,0
Operating Margin % 11,4% 10,0% 1,4%
The Industry shipment of household appliances sales to retailers in Italy declined in the first
half 2009 by approximately 8.6% compared to the comparative prior year period. This fall in
demand has contributed significantly to the erosion of the revenue generated by the Italy
Area. In particular, the decline in the market for built-in appliances was somewhat greater
than that for free-standing items. The total revenue deriving from the Group's Italian sales
reflects this trend, although the effect has been attenuated by a noticeable price-mix effect
combined, essentially, with the maintenance of market share and therefore market
leadership.
In this context and despite the higher provision for doubtful accounts with respect to 2008,
the operating profit for the period achieved by the Italy Area was in line with that for the
comparative prior year period. This was due to the improvement in the price/mix, a focus on
fixed costs and an inevitable reduction in advertising and promotional costs.
140,0
135,0
130,0
125,0
120,0
115,0
110,0
105,0
100,0
120,6
107,6
Italy Area
Revenue (million Euro)
129,6
121,3
2008
2009
50,0
45,0
40,0
35,0
30,0
25,0
20,0
15,0
10,0
5,0
-
14,7
Italy Area
Operating Margin (million Euro)
9,2
10,3
16,8
2008
2009
Q1
Q2
Q1
Q2
UK and Ireland Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 340,3 385,4 (45,1)
Operating Margin 20,7 7,4 13,3
Operating Margin % 6,1% 1,9% 4,2%
The results for the UK and Ireland Area reflect the most significant discontinuity experienced
by the Group during the first half of 2009. Despite the marked depreciation of the Uk pound
with respect to the comparative prior year period (15.4% drop in the average exchange rate)
and the steady reduction in the proportion of production carried out in the UK (down from
40% in the first half of 2008 to 31% in the first half of 2009), the British organisation easily
offset the adverse exchange rate effect with an improvement in the sales price/mix and a
significant reduction in non-quality costs. Operating profit was more than the double of that
achieved in 2008 and the market share also increased significantly, almost overshadowing
the approximately 16% contraction in the market (industry shipment) during the first half of
2009 with respect to the comparative period. In general, all the performance indicators for
the UK and Ireland Area were very good in the first half of the year.
9

Half-year report at 30 June 2009
220,0
210,0
200,0
190,0
180,0
170,0
160,0
150,0
140,0
198,6
169,1
UK and Ireland Area
Revenue (million Euro)
186,8
171,2
2008
2009
50,0
45,0
40,0
35,0
30,0
25,0
20,0
15,0
10,0
5,0
-
4,7
UK and Ireland Area
Operating Margin( million Euro)
3,2
2,6
17,3
2008
2009
Q1
Q2
Q1
Q2
West Europe Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 261,9 293,2 (31,3)
Operating Margin 6,0 2,4 3,6
Operating Margin % 2,3% 0,8% 1,5%
Overall, sales in Western Europe declined faster during the second quarter than in the first,
when the fall was relatively moderate. In particular, the two most significant markets in this
area, France and Spain, suffered serious losses in sales due, once again, to the slump in
demand by an estimated 10% in France and 22% in Spain (industry shipment). Despite the
drop in sales, the Area's operating profit rose by 3.6 million euro with respect to the
comparative period, largely due to an improvement in the sales price/mix for free-standing
products, the reduction of fixed costs, the containment of advertising and promotion costs,
and the lower incidence of distribution expenses. The sales performance of built-in
appliances was less satisfactory in almost all West European countries, given the effects of
the real estate market crisis afflicting this area.
180,0
170,0
160,0
150,0
140,0
130,0
120,0
110,0
100,0
90,0
80,0
144,6
West Europe Area
Revenue (million Euro)
148,6
131,7 130,2
2008
2009
40,0
35,0
30,0
25,0
20,0
15,0
10,0
5,0
-
-5,0
3,0
Q1
West Europe Area
Operating Margin (million Euro)
1,0
-0,6
Q2
5,0
2008
2009
Q1
Q2
Russian Fed. Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 152,6 274,1 (121,5)
Operating Margin 17,6 58,0 (40,4)
Operating Margin % 11,5% 21,2% (9,6%)
In Russia, excluding the growth achieved in January 2009, the remaining months of the
period experienced contractions (industry shipment) of largely more than 30% with respect to
the prior year. The large decline in euro revenue from this geographical area reflects a
combination of lower demand with the major depreciation of the rouble with respect to the
comparative period in 2008 (20.8% drop in the average exchange rate). The decrease in
operating profit, equal to 40.4 million euro, was however slowed down due to the essential
self-sufficiency of the Russia Area in terms of production (74 % of sales were produced
10

Half-year report at 30 June 2009
locally during the first half), the improvement in the price/mix and the actions taken to contain
overheads. Even under these circumstances, the profitability percentage achieved by the
Russia Area is still among the best in the Group.
140,0
120,0
140,3
Russian Fed. Area
Revenue (million Euro)
133,8
90,0
80,0
70,0
60,0
Russian Fed. Area
Operating Margin (million Euro)
100,0
80,0
90,8
2008
2009
50,0
40,0
30,0
30,0 28,0
2008
2009
60,0
61,7
20,0
10,0
13,0
4,6
40,0
-
Q1
Q2
Q1
Q2
East Europe Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 160,7 233,8 (73,1)
Operating Margin -0,7 14,9 (15,6)
Operating Margin % -0,4% 6,4% (6,8%)
The decline in operating profit and revenue experienced in Eastern Europe during the first
half of 2009 was second only to that seen in Russia.
The only significant exception was found in Turkey, where there was a notable rise in sales
(+6.6%) and operating profit (3.4 million euro); this positive performance reflects an
improvement in the market situation due to the introduction of government incentives and an
increase in the Group's market penetration.
Results in Poland were penalised by the marked depreciation of the zloty with respect to the
first half of the prior year (28.8% fall in the average exchange rate) and the overall weakness
of demand (down in the second quarter following a positive first quarter), although the limited
price increases made during the second quarter did have some positive effect.
Although positive operating profit is expected for the full year, this Area - as elsewhere - will
only return to acceptable levels of profitability when market demand picks up again.
150,0
140,0
130,0
120,0
110,0
100,0
90,0
80,0
70,0
60,0
50,0
111,4
65,4
Q1
East Europa Area
Revenue (million Euro)
Q2
122,4
95,3
2008
2009
35,0
30,0
25,0
20,0
15,0
10,0
5,0
-
-5,0
-10,0
5,8
Q1
East Europe Area
Operating Margin (million Euro)
-5,9
9,1
Q2
5,2
2008
2009
Overseas Area
(million Euro) 30 June 2009 30 June 2008 Change
Revenue 59,2 88,6 (29,4)
Operating Margin 4,9 7,8 (2,9)
Operating Margin % 8,2% 8,8% (0,6%)
The Overseas Area includes those markets that are usually served by independent
11

Half-year report at 30 June 2009
distributors. As an exception, the Group has a direct presence in Argentina via a commercial
branch. The principal contractions in revenue and operating profit were suffered in the United
States, the Middle East and Asia.
60,0
55,0
50,0
45,0
40,0
35,0
30,0
25,0
20,0
15,0
10,0
40,7
26,1
Q1
Overseas Area
Revenue (million Euro)
Q2
47,9
33,1
2008
2009
35,0
30,0
25,0
20,0
15,0
10,0
5,0
-
3,9 3,9
1,6
Q1
Overseas Area
Operating Margin (million Euro)
Q2
3,2
2008
2009
Revenue by product line and brand
In the first half of 2009 sales of free-standing and built-in appliances declined in an almost
identical fashion, by 22.4% and 22.6% respectively, although the dynamics were different
when analysed by channel, product and geographical area.
(million Euro) 30 June 2009 30 June 2008 Change %
Free Standing 832,0 1.072,7 -22,4%
Built In 270,1 349,2 -22,6%
Total 1.102,1 1.421,9 -22,5%
The decline in sales affected the Indesit brand more than Hotpoint-Ariston, since Indesit has
a greater presence in the geographical areas more seriously hit by the crisis, such as
Eastern Europe and Russia.
(million Euro) 30 June 2009 30 June 2008 Change %
Indesit 515,5 675,2 -23,6%
Hotpoint-Ariston 550,3 695,2 -20,8%
Altri marchi 36,3 51,6 -29,6%
Total 1.102,1 1.421,9 -22,5%
The larger reduction in the revenue from Other brands confirms pursuit of the Group's
strategy of focusing sales on the two principal brands.
(million Euro) 30 June 2009 30 June 2008 Change %
Cooking 266,0 359,2 -26,0%
Cooling 346,1 442,2 -21,7%
Washing 490,0 620,4 -21,0%
Total 1.102,1 1.421,9 -22,5%
Cooking and cooling were the product families that saw the greatest declines. The reduction
in the sales of washing appliances was lower due to the performance achieved in Western
Europe.
12

Half-year report at 30 June 2009
Cash flows 4
(million Euro) 30 June 09 31 Dec 08 30 June 08
EBITDA 83,0 270,5 136,8
Change in NWC (98,7) (62,7) (247,9)
Other Operating Flow (15,9) (162,0) (53,2)
Operating cash flow (31,5) 45,8 (164,3)
Net CapEx (18,5) (136,1) (44,4)
Cash Flow before financial activies (50,0) (90,3) (208,7)
Financial operations & others (0,2) (52,4) (52,7)
Free cash flow (50,2) (142,7) (261,3)
The cash flow absorbed by operating activities during the first half of 2009 was 31.5 million
euro (absorbed 164.3 million euro).
The absorption of cash flow was much lower than in the first half of 2008, despite the
reduction in gross operating profit (EBITDA). This improvement in cash flows was mainly due
to the management of net working capital. In particular, aside from the lower volume of
sales, the reduction in trade receivables was also due to the sale without recourse of trade
receivables totalling 54.3 million euro.
Capital expenditure net of the proceeds from asset disposals diminished significantly,
consistency with the policy announced by the Group, and amounted to 18.5 million euro
(44.4 million euro).
Lastly, no dividends were paid during the first half of 2009.
The free cash flow 5 generated during the first half of 2009 was therefore negative by 50.2
million euro (261.3 million euro), resulting in an increase in net borrowings of the same
amount since 31 December 2008.
4
In the above Cash flow view, the change in net working capital includes the change in Trade payables
incurred for investment purposes, classified as part of the Cash flows from investing activities in the
Consolidated statement of cash flows, where the amounts of cash flow from operating activities and
Cash flow from investing activities are different.
5 Free Cash Flow: the cash flow from/for operating and investing activities, net of dividend payments
and capital increases.
13

Half-year report at 30 June 2009
Balance sheet 6
(million Euro) 30 June 09 31 Dec 08 30 June 08
Trade receivables 416,2 459,0 649,0
Inventories 338,0 374,1 457,6
Trade payables (590,5) (767,9) (856,3)
Net working capital 163,8 65,1 250,3
Non-current assets 1.088,2 1.113,5 1.196,0
Other current assets and liabilities and non-current liabilities (327,1) (282,2) (321,0)
Net invested capital 924,9 896,4 1.125,4
Net financial indebtedness 524,1 473,8 592,5
Equity attributable to the Group 398,3 420,0 530,7
Minority interests 2,5 2,5 2,2
Equity and financial liabilities 924,9 896,4 1.125,4
The reduction in Net working capital as a percentage of sales (from 7.4% of rolling sales in
June 2008 to 5.8% in June 2009) was made possible by the sale without recourse of trade
receivables. Without these sales, the incidence on sales would have been 7.9%. The fall in
the volume of production was greater than the decline in the volume of sales, resulting in a
reduction in trade payables that was larger than the decrease in trade receivables, despite
the slowdown in collections due to the challenging general economic situation. Lastly,
consistent with the Group’s policy, inventory levels were reduced.
The decrease in shareholders' equity since 31 December 2008 was mainly due to the net
loss for the half year period of 22.5 million euro. The translation reserve increased by 10.8
million euro overall, due the appreciation of Uk pound against the euro since 31 December
2008, which more than offset the effect on the reserve of the appreciation of the euro against
the zloty and the rouble. The cash flow hedge reserve, on the other hand, decreased by 9.9
million euro.
6 The trade receivables and payables, inventories and equity reported in the above reclassified balance
sheet are the same as the amounts reported in the consolidated balance sheet; net financial
indebtedness is analysed in the notes to the condensed, half-year consolidated financial statements;
“Non-current assets” and “Other current assets and liabilities and non-current liabilities” comprise the
captions of the consolidated balance sheet that are not mentioned above or included as part of net
financial indebtedness.
14

Half-year report at 30 June 2009
Financial position
(million Euro) 30 June 2009 31 Dec 08 30 June 2008
Current financial assets 27,6 43,8 53,5
Cash and cash equivalents 136,1 193,2 152,3
Banks and other financial payables (297,3) (268,2) (513,8)
Net financial position - short term (133,6) (31,2) (307,9)
Medium/long-term financial payables (392,6) (451,9) (297,8)
Net financial position (*) (526,2) (483,1) (605,7)
Other non-current financial assets 2,1 9,3 13,3
Net financial indebtedness (524,1) (473,8) (592,5)
*) As defined in CONSOB Communication DEM /6064293 dated 28/07/2006, applying the CESR recommendations
dated 10/02/2005
The net financial indebtedness amounts to 524.1 million euro (592.5 million euro).
The Gross financial indebtedness totals 689.9 million euro (811.6 million euro), of which 57%
is classified as medium and long term and 43% as short term.
The maturity profile of medium and long-term loans is presented below:
Medium/longterm
MATURITY
2010 2011 2012 2013 2014 2015 2016
Bonds 201,2 4,7 57,1 6,8 6,5 111,4 0,8 13,8
Due to banks and Other payables 191,4 5,6 17,4 147,4 1,3 16,8 0,0 2,8
Total 392,6 10,4 74,5 154,2 7,9 128,2 0,8 16,6
At 30 June 2009, the Group has unused, committed lines of credit totalling 250.0 million
euro.
Reorganisation of activities
In February 2009, Indesit Company informed the parties concerned of its intention to close
the factory at Kinmel Park in the UK. Consultation with the trade unions was completed in
June, with the final decision agreed with the social partners being to close the factory at the
end of July.
In June 2009, Indesit Company reached an agreement with the social partners and the
institutions on the reorganisation of activities at the None factory in Italy. This agreement,
involving a reduction in production levels, was signed at the Ministry for Economic
Development in July.
Significant events during the first half of 2009 and subsequent to period end
Other than the events mentioned above, there were no additional significant events or
transactions during the first half of 2009 or subsequent to period end.
15

Half-year report at 30 June 2009
Reconciliation with the shareholders' equity and net profit for the period of the
parent company
In accordance with Consob Communication no. DEM/6064293 dated 28 July 2006, the
shareholders' equity and net results for the period of the parent company are reconciled
below with the related consolidated amounts.
(million Euro)
30 June 09 31 Dec 08
Profit (Loss) Equity Profit (Loss) Equity
Financial statements of the parent company (18,9) 410,2 62,6 428,7
Consolidation adjustments
Difference between carrying amount and equity of group
companies
(4,7) (7,7) 123,0 (4,4)
Dividends received from subsidiaries - - (132,7) -
Effect of aligning separate financial statements with group
accounting policies
0,8 3,0 2,7 2,4
Elimination of intercompany profits 0,3 (13,3) (1,2) (13,3)
Tax effect of adjustments (0,1) 6,1 1,0 6,2
Other minor effects 0,0 0,1 0,1 0,4
Total consolidation adjustments (3,7) (11,9) (7,1) (8,7)
Consolidated financial statements (22,6) 398,3 55,5 420,0
Intercompany and related-party transactions, and significant, atypical or unusual
transactions
Transactions between Group companies are settled on arms'-length terms, having regard for
the quality of the goods and services provided. The notes to the condensed, half year
consolidated financial statements describe the nature of the principal transactions arranged
by the parent and other Group companies with related parties. They also contain the detailed
information required by Consob regulations and IAS 24. In accordance with Consob
regulations, 7 Attachments 3 and 4 to the condensed, half year consolidated financial
statements present the consolidated income statement and balance sheet showing nonrecurring
items and transactions with related parties separately, together with the percentage
incidence with respect to each caption.
Transactions with related parties are not significant to the economic and financial position of
the Group.
Stock option plans
The stock option plans are described in the notes to the condensed, half-year consolidated
financial statements at 30 June 2009, which describe the plans and provide the information
required by law and the relevant Consob communications.
Corporate governance
The system of corporate governance adopted by Indesit Company is essentially consistent
with the principles established in the Code of Conduct for Listed Companies and with
international best practice. On 26 March 2009, the Board of Directors approved the Annual
7 Resolution no. 15519 dated 27 July 2006 and Consob Communication no. DEM/6064293 dated 28 July
2006
16

Half-year report at 30 June 2009
Report on Corporate Governance, which provides a complete description of the governance
model adopted by the Company and reports on the implementation of the Code.
The Parent Company has adopted the ordinary model of administration and control
(envisaged under Italian law), including a Board of Directors, a Board of Statutory Auditors
and Independent Auditors. The company bodies are appointed at the Shareholders' Meeting
and remain in office for a period of three years. The significant presence of Independent
Directors, as defined in the Code, and the important role they play on both the Board and
Board Committees (Human Resources Committee, Audit Committee and Innovation and
Technology Committee), ensures that the interests of all shareholders are appropriately
balanced and guarantees a high level of discussion at Board meetings.
Further information is available in the Annual Report on Corporate Governance (available on
the Company's website: www.indesitcompany.com).
Forecast for operations
The forecast falls in GDP 8 during 2009 in the principal geographical areas in which the Group
operates, being the UK (-4.2%), the Euro area (-4.8%) and Russia (-6.5%), has been revised
downwards with respect to the previous quarter. It is likely that demand for durable goods,
including household appliances, during the second half of the year will remain affected by the
currently difficult economic conditions.
Demand for household appliances and trends in the three main currencies that influence the
Group's results (British pound, Russian rouble and Polish zloty) will, remain decisive factors
for the achievement of the Group's economic and financial objectives also in the second half
year.
In this context, the greatest concerns continue to be the situation in Russia and the East
European markets.
Demand in Russia contracted even further during the second quarter, almost halving in
certain months with respect to the comparative period of the prior year. Growing
unemployment and the continuing credit squeeze do not allow the coming months to be
viewed with optimism; expectations for the second half year suggest that a slight
improvement might emerge, but only towards the end of the fourth quarter. The pressure on
the rouble, which struggles to maintain a rate of 44/45 to the euro, represents an additional
risk, since it would be hard to pass on further depreciation in the form of higher selling prices.
As mentioned in the last quarter, despite the expected, significant further reduction in sales
and profitability, Russia will still remain one of the most important areas for the Group.
Sales and profitability also fell in Eastern Europe, and this is likely to continue. Demand in
the region remains poor (down about 24 % in the first half) and the weakness of the local
currencies (PLN, HUF, CZK) continues with respect to the euro. The Group's priority in this
area is to recoup profitability in order to offset the effects of currency depreciation and the
possible loss of market share.
Performance during the second quarter and current forecasts suggest that the following
areas can be viewed with confidence:
a) UK. The price adjustments made to cover the depreciation of the GBP, together with the
cost containment measures taken, should mean – in the absence of a further significant
decline in Uk pounds – that the UK will close the year with lower sales but higher
profitability, despite an expected contraction of the market by at least 10% over the whole
of 2009.
8 International Monetary Fund forecasts from World Economic Outlook July 2009
17

Half-year report at 30 June 2009
b) Italy and other West European countries. Italy too, despite a likely contraction in the
market, is expected to close the year with profitability in line with or better than in the
prior year. Similar results are expected from the other markets in Western Europe.
c) Cost of purchasing raw materials and components. The stabilisation of the oil price at
around 60-70 USD and the steel price at current levels will enable the Group to achieve
considerable savings on procurement costs.
d) Service and warranty costs. Consistently with the performance in recent years, service
costs are expected to fall further in 2009 due to the significant improvements made to the
product/ process quality and the efficiency of the Service area.
The results for 2009 will be burdened by substantial restructuring costs (recorded during the
first half) associated, in large measure, with the closure of the Kinmel Park factory (UK) and
the reorganisation of production at the None factory (Italy).
The outlook on the second half of the year remains hazy, especially in relation to Russia and
Eastern Europe, making it difficult to develop forecasts with a low margin of error. At this
time, the best expectations for market performance are based more on favourable
comparisons with the prior period than on an actual upturn in consumption.
Nevertheless in this difficult context, the Group believes that given:
1) Stable exchange rates
2) Lower market demand during the second half year in line with the second quarter trend -
10% and -15%.
2009 sales should be between 2.5 and 2.6 billion euro, and operating profit (EBIT) should be
between 60 and 70 million euro; net financial position at 31 December 2009 is expected to
be essentially in line with the situation at 31 December 2008.
Milan, 30 July 2009
On behalf of the Board of Directors
The Vice Chairman
Andrea Merloni
18

19
Condensed interim
consolidated financial
statements
at 30 June 2009

Half-year report at 30 June 2009
Consolidated income statement for the first half of 2009 1
(million Euro)
Note
30 June 2009 30 June 2008
Revenue 8.1 1.203,7 1.525,3
Cost of sales 8.2 (937,6) (1.142,6)
Selling and distribution expenses 8.3 (198,2) (251,9)
General and administrative expenses 8.4 (52,5) (58,4)
Operating profit 8.5 15,4 72,4
Interest paid 8.6 (18,9) (16,9)
Interest received 8.6 0,9 6,6
Exchage rates and Net financial expenses 8.6 (18,2) (3,6)
Share of profit (losses) of associates - -
Profit before tax (20,8) 58,5
Income tax expenses 8.7 (1,8) (24,4)
Profit for the period (22,6) 34,1
of which:
Attributable to minority interests (0,1) 0,4
Attributable to the group (22,5) 33,7
Basic earnings per share 8.14 (0,22) 0,33
Diluted earnings per share 8.14 (0,22) 0,33
1 Pursuant to Consob Resolution no. 15519 dated 27 July 2006, the effects of related-party and non-recurring
transactions on the consolidated income statement are reported in Attachment 3 and in notes 10 and 8.5
respectively.
20

Half-year report at 30 June 2009
Consolidated statement of comprehensive income for the first half of 2009
(million Euro)
Note
30 June 2009 30 June 2008
Profit (loss) for the period (A) (22,6) 34,1
Gains/(Losses) on cash flow hedges 8.14 (9,9) 1,0
Gains/(Losses) on exchange rate differences on translating 8.14 10,8 (29,4)
foreign operations
Total Other comprehensive income, net of tax (B) 0,8 (28,4)
Total Comprehensive income (A+B) (21,7) 5,7
of which:
Attributable to minority interests (0,1) 0,4
Attributable to the group (21,6) 5,3
21

Half-year report at 30 June 2009
Consolidated balance sheet at 30 June 2009 2
(million Euro)
Note 30 June 2009 31 December 2008 30 June 2008
Assets
Property, plant and equipment 8.8 635,5 692,8 747,5
Goodwill and other intangible assets with an indefinite useful
life
8.9 232,0 207,7 275,4
Other intangible assets with a finite useful life 8.10 119,7 123,9 102,3
Investments in associates 0,6 0,5 0,5
Other non-current assets 31,7 33,9 33,5
Deferred tax assets 68,8 54,6 36,9
Other non-current financial assets 8.15.5 2,1 9,3 13,3
Total non-current assets 1.090,3 1.122,8 1.209,3
Inventories 8.11 338,0 374,1 457,6
Trade receivables 8.12 416,2 459,0 649,0
Current financial assets 8.15.1 27,6 43,8 53,5
Tax receivables 44,2 44,1 61,4
Other receivables and current assets 8.13 42,7 63,6 67,9
Cash and cash equivalents 8.15.2 136,1 193,2 152,3
Total current assets 1.004,9 1.177,7 1.441,7
Total assets 2.095,2 2.300,5 2.651,0
Equity
Share capital 92,8 92,8 92,8
Reserves 176,8 176,0 308,4
Retained earnings 151,3 95,8 95,8
Profit attributable to the group (22,6) 55,5 33,7
Equity attributable to the group 8.14 398,3 420,0 530,7
Minority interests 2,5 2,5 2,2
Total equity 400,8 422,6 532,9
Liabilities
Medium and long-term interest-bearing loans and borrowings 8.15.4 392,6 451,9 297,8
Employee benefits 8.16 67,6 66,3 76,9
Provisions for risks and charges 8.17 48,4 43,3 41,3
Deferred tax liabilities 41,5 46,0 53,1
Other non-current liabilities 8.18 38,6 42,3 52,6
Total non-current liabilities 588,6 649,8 521,7
Banks and other financial payables 8.15.3 297,3 268,2 513,8
Provisions for risks and charges 8.17 64,6 51,9 54,2
Trade payables 590,5 767,9 856,3
Tax payables 33,5 34,6 36,2
Other payables 8.19 119,9 105,5 136,0
Total current liabilities 1.105,8 1.228,1 1.596,4
Total liabilities 1.694,4 1.878,0 2.118,1
Total equity and liabilities 2.095,2 2.300,5 2.651,0
2 Pursuant to Consob Resolution no. 15519 dated 27 July 2006, the effects of related-party transactions on the
consolidated balance sheet are reported in Attachment 4 and in note 10. The effects of non-recurring transactions
on the balance sheet and financial position are described in note 8.5.
22

Half-year report at 30 June 2009
Consolidated statement of cash flows for the six-month period ended 30
June 2009 3
(million Euro)
Note
30 June 2009 31 December 2008 30 June 2008
Total profit 8.21 (22,6) 56,0 34,1
Income taxes 8.21 1,8 38,9 24,4
Depreciation and amortisation 8.21 67,7 129,9 64,4
Other non-monetary income and expenses, net 8.22 23,0 30,7 10,2
Change in trade receivables 8.23 42,7 63,7 (126,3)
Change in inventories 8.23 36,1 (39,9) (123,4)
Change in trade payables 8.23 (151,5) (86,0) 27,2
Change in other assets and liabilities 8.24 25,5 (65,8) (15,5)
Income taxes 8.21 (15,3) (50,9) (20,1)
Interest paid 8.22 (17,2) (42,1) (17,3)
Interest received 8.22 4,2 11,7 3,6
Cash flows from operating activities
(5,6) 46,4 (138,8)
Acquisition of property, plant and equipment 8.25 (40,3) (114,4) (63,4)
Proceeds from sale of property, plant and equipment 8.25 6,0 7,6 3,0
Acquisition of intangible assets 8.26 (10,3) (30,6) (9,5)
Proceeds from sale of non-current intangible assets 8.26 0,1 - 0,1
Proceeds from sale of non-current financial assets 8.27 - 0,7 -
Acquisition of non-current financial assets and other investments 8.27 (0,2) - (0,2)
Cash flows from (used in) investing activities
(44,7) (136,6) (70,0)
Dividends paid - (52,5) (52,5)
New medium/long-term payables - 200,2 -
Repayment of borrowing for acquisition of GDAH - (40,9) -
Other repayments of medium/long-term financial payables 8.28 (7,9) (30,0) (0,2)
Change in current financial payables 8.29 1,2 20,0 227,3
Cash flows from (used in) financing activities
Net cash flows
(6,7) 96,8 174,6
(57,0) 6,6 (34,2)
-
Cash and cash equivalents, start of period 193,2 186,5 186,5
Cash and cash equivalents, end of period 136,1 193,2 152,3
Total change in cash and cash equivalents (57,0) 6,6 (34,2)
3 Pursuant to Consob Resolution no. 15519 dated 27 July 2006, the financial effects of non-recurring transactions
are reported in note 8.5.
23

Opening balances
Other profit (losses) net of
taxation
Profit for the period
Income (expense)
recognised directly in
equity
Dividends paid
Exercise of stock options
Allocation of profit of the
year
Changes in scope of
consolidation and
acquisition of minority
interests
Total effects of
transactions with shareholders
Closing balances
Nota 8.14
Statement of changes in consolidated equity at 30 June 2009 (million euro)
Share capital 92,8 - - - - - - - 92,8
Share premium reserve 35,8 - - - - - - - 35,8
Legal reserve 22,7 - - - - - - - 22,7
Translation reserve (139,8) 10,8 10,8 - - - - - (129,0)
Other reserves 257,2 (9,9) (9,9) - - - - - 247,3
Retained earnings 95,8 - - - - 55,5 - 55,5 151,3
Profit attributable to the group 55,5 - (22,6) (22,6) (55,5) (55,5) (22,6)
Equity attributable to the group 420,0 0,8 (22,6) (21,7) - - - - - 398,3
Minority interests 2,5 - (0,1) (0,1) - 2,5
Total equity 422,6 0,8 (22,5) (21,7) - - - - - 400,8
Statement of changes in consolidated equity at 30 June 2008 (million euro)
Share capital 92,8 - - - - - - - - 92,8
Share premium reserve 35,8 - - - - - - - - 35,8
Legal reserve 22,7 - - - - - - - - 22,7
Translation reserve 19,8 (29,4) - (29,4) - - - - - (9,6)
Other reserves 258,5 1,0 - 1,0 - - - - - 259,5
Retained earnings 42,9 - - - (52,5) - 105,4 - 52,9 95,8
Profit attributable to the group 105,4 - 33,7 33,7 - - (105,4) - (105,4) 33,7
Equity attributable to the group 577,9 (28,4) 33,7 5,3 (52,5) - 0,0 - (52,5) 530,7
Minority interests 1,8 0,4 0,4 - 2,2
Total equity 579,6 (28,4) 34,1 5,7 (52,5) - 0,0 - (52,5) 532,9
24

25
Explanatory notes

Half-year report at 30 June 2009
1. Group structure and activities
Indesit Company is a Group led by Indesit Company S.p.A., an Italian company based in
Fabriano (near Ancona) that is listed on the Milan Stock Exchange.
The Group is active in the production and sale of white goods, namely household appliances
for the cooking sector (cookers, ovens and hobs), the refrigeration sector (refrigerators and
freezers), and the washing sector (washing machines, dryers, combined washer-dryers and
dishwashers).
The Group operates mainly in Europe, Turkey and Russia.
The Group's operating segments, as defined in IFRS 8 – Operating Segments, comprise the
geographical areas which, in organisational terms, generate revenue and costs that are
periodically reviewed by the most senior decision makers in order to evaluate performance
and decide on the allocation of resources, and for which separate financial information is
available.
The household appliances sector is highly seasonal, which affects all the main economic and
financial parameters.
The reporting by business segment required by IFRS 8 is provided in note 7.
2. Approval of the consolidated half-year report at 30 June 2009
The consolidated half-year report at 30 June 2009 was approved by the Board of Directors
on 30 July 2009 and the condensed interim consolidated financial statements included
therein have been reviewed by the independent auditors.
There have not been any significant events subsequent to the end of the first half of 2009.
3. Declaration of compliance with IFRS international accounting standards and
basis of presentation
These condensed interim consolidated financial statements have been prepared in
compliance with IAS 34 and the requirements of art. 154-ter of Legislative Decree no. 58
dated 24 February 1998 (Consolidated Finance Law) and subsequent amendments. They do
not include all the information required for annual financial statements and should be read
together with the consolidated financial statements at 31 December 2008. In particular, the
income statement, balance sheet and statement of cash flows are presented in extended
form using the formats adopted for the consolidated financial statements at 31 December
2008, except as discussed below regarding adoption of the statement of comprehensive
income and the consequent modifications made to the statement of changes in equity. On
the other hand, the following notes are presented in summary form and, accordingly, do not
include all the information required for annual financial statements. In particular, as
envisaged by IAS 34 in order to avoid repeating the information already published, the
explanatory notes relate solely to those elements of the income statement, balance sheet
and statement of cash flows whose content or change, in terms of nature or amount or
because unusual, must be known in order to understand the economic and financial position
of the Group.
The condensed interim consolidated financial statements at 30 June 2009 comprise the
balance sheet, the income statement, the statement of comprehensive income, the
statement of cash flows, the statement of changes in equity and these notes. The
comparative figures presented together with the balance sheet and the statement of cash
flows include those at 30 June 2008 for the balance sheet and at 31 December 2008 for the
statement of cash flows, as well as those required by IAS 34 (31 December 2008 for the
26

Half-year report at 30 June 2009
balance sheet and 30 June 2008 for the statement of cash flows). This decision was made to
permit the consistent comparison of data that is significantly affected by the seasonality of
the sector. The income statement presents figures for the first half of 2009 and the first half
of 2008, since the Group has adopted the six-month period for interim reference purposes.
The consolidated income statement is classified with reference to the reasons for which
costs were incurred, the balance sheet distinguishes between current and non-current assets
and liabilities, the statement of cash flows is presented using the indirect method, and the
Statement of Changes in Equity format has been adopted. In addition, as required by the
revised version of IAS 1 – Presentation of financial statements, the Consolidated statement
of comprehensive income is presented for the first time. This statement comprises the
various components forming the results for the period, together with the income and charges
deriving from transactions not carried out with shareholders that were recognised directly in
equity. The transactions carried out with shareholders are presented in the statement of
changes in shareholders' equity, together with the equity transactions reported in the
statement of comprehensive income.
The format adopted for the classification of the consolidated income statement was chosen
to help the market understand more clearly the profitability of the Group; in particular,
performance can be measured better with reference to the profit and cost centeres used for
the allocation of income and expenses. Additionally, this format assures the provision of
precise segment information that is consistent with the way results are normally measured
for management accounting purposes. This approach also ensures greater comparability
with direct competitors and the multinationals operating in related sectors, since classification
of the income statement by function is the format most widely used in international practice.
In addition, the notes provide information on the nature of expenditure and the other
disclosures necessary for the market, investors and all stakeholders.
4. Principal accounting policies
Except as discussed in note 5 below, the accounting policies and consolidation criteria
applied for the preparation of the condensed interim consolidated financial statements are
consistent with those adopted for the consolidated financial statements at 31 December
2008, to which explicit reference is made for further details, and which form an integral part
of these notes.
Basis of preparation
The currency of presentation of the condensed interim consolidated financial statements is
the euro, and the financial statement balances are expressed in millions of euro (except
where stated otherwise). The condensed interim consolidated financial statements are
prepared on an historical cost basis, except for derivative financial instruments, financial
assets held for sale and financial instruments classified as available for sale, which are
measured at their fair value, as applicable to going concerns. Despite the difficult economic
and financial conditions, the Group has determined that there are no significant uncertainties
about business continuity. This confidence takes account of the actions already identified
and, in part, already implemented to adjust to the marked reduction in the level of demand
and preserve the Group's financial strength and solidity. The accounting policies are applied
on a consistent basis by all Group companies. There are no financial assets held to maturity.
Financial transactions are recognised with reference to the trade date. The accounting
policies adopted for the preparation of the condensed interim consolidated financial
statements at 30 June 2009 have also been applied on a consistent basis to all the
comparative financial information.
27

Half-year report at 30 June 2009
Accounting estimates
The preparation of condensed interim consolidated financial statements involves making
assumptions and estimates that affect the value of assets and liabilities and the related
explanatory information, as well as the value of contingent assets and liabilities at the
reference date. These estimates are used to measure the property, plant and equipment and
intangible assets subject to impairment, as well as to recognise provisions for doubtful
accounts, inventory obsolescence, depreciation and amortisation and the write-down of
assets, employee benefits, taxation, and risks and charges. The estimates and underlying
assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances. In this context, the difficult general economic
situation caused by the deterioration of the international financial crisis has heightened the
uncertainties inherent in the assumptions about future performance used to make certain
estimates. The financial statement captions most affected by these uncertainties are the
provisions for doubtful accounts, the provisions for obsolescence and the recoverable
amount of non-current assets. With regard to these captions, the prolonging and possible
deterioration of the current economic and financial crisis could worsen the financial condition
of debtors, or increase the risk of product obsolescence linked to high inventory levels, or
reduce the forecast cash flows used for the impairment testing of non-current assets, with
respect to the deterioration already contemplated when making the estimates included in
these condensed interim consolidated financial statements. Estimates and assumptions are
reviewed regularly and, if later estimates differ from those made initially, the effects - which
obviously cannot be estimated or forecast at this time - are immediately reflected in the
income statement. If the changes in estimates relate to both the current and future periods,
their effects are reflected in the income statements for the periods concerned.
5. Changes in accounting policies, changes in accounting estimates and
reclassifications
5.1 New accounting standards, amendments and interpretations adopted
The revised version of IAS 1 – Presentation of Financial Statements took effect from 1
January 2009. The new version of the standard requires all changes generated by
transactions with shareholders to be reported in a statement of changes in equity. The effect
of all transactions with third parties (comprehensive income) must be reported in a single
statement of comprehensive income, or in two separate statements (income statement and
statement of comprehensive income).
The Group has taken the second approach to the presentation of comprehensive income,
including in a separate statement entitled “Consolidated statement of comprehensive
income” all the changes in equity accounts generated by transactions with parties who are
not shareholders. The retrospective adoption of this standard from 1 January 2009 has had
no effect on the measurement of the captions. As a consequence of the change, the Group
has modified the presentation of the statement of changes in equity.
IFRS 8 Operating segments took effect from 1 January 2009, replacing IAS 14 Sector
information. The new accounting standard requires companies to base their segment
information disclosures on the information used by the highest level of decision makers to
make operating decisions. Accordingly, the standard requires the identification of operating
segments with reference to the internal reports that are reviewed regularly by those decision
makers for the purpose of allocating resources to such segments and analysing their
performance. The adoption of this standard has had no effect on the measurement of the
captions. Further information is provided in note 7.
28

Half-year report at 30 June 2009
The revised version of IAS 23 – Borrowing costs has been applied from 1 January 2009. The
new version of this standard prevents the immediate expensing of financial expenses
incurred in relation to assets that normally require time before they become available for use
or for sale. The adoption of this standard has had no significant effect on the measurement
of the captions.
The amendment to IAS 19 – Employee benefits took effect from 1 January 2009: this
amendment clarifies the definition of cost/income relating to past service and establishes, in
the event of a plan curtailment, that the effect to be recognised immediately in the income
statement must comprise solely the reduction in benefit relating to future periods, while the
effect deriving from any reductions associated with past service must be treated as a
negative cost in relation to such past service. The amendment has also redefined the
meaning of short-term and long-term benefits and modified the definition of return on plan
assets, establishing that this caption must be stated net of any plan administration charges
not already included in the amount of the obligation. The adoption of this standard has had
no significant effect on the measurement of the captions.
The following amendments and interpretations, applicable from 1 January 2009, govern
situations and cases not relevant to the Group at the date of these condensed interim
consolidated financial statements:
- Amendments to IAS 32 – Financial Instruments: Presentation and IAS 1 – Presentation
of Financial Statements – Financial Instruments.
- Improvement to IAS 29 – Financial Reporting in Hyperinflationary Economies.
- Improvement to IAS 36 – Impairment of Assets.
- Improvement to IAS 39 – Financial Instruments: Recognition and Measurement.
- Improvement to IAS 40 – Investment Property.
- IFRIC 13 – Customer Loyalty Programmes.
- IFRIC 15 – Agreements for the Construction of Real Estate.
- IFRIC 16 – Hedges of a Net Investment in a Foreign Operation.
5.2 Reclassifications
In order to improve the presentation of the financial statements, commencing from 1 January
2009 certain costs (mainly relating to the central technical departments) have been
reclassified to Cost of sales from General and administrative expenses. The 2008
comparative information has also been reclassified accordingly. These reclassifications did
not affect the Group's operating profit (EBIT), net results or shareholders' equity.
In addition, in order to improve the presentation of financial captions, interest expense,
interest income, exchange rate differences and other net financial expenses are stated
separately in the income statement from 1 January 2009. Previously, these captions were
grouped together as Net financial expenses. The 2008 comparative information has also
been reclassified accordingly.
5.3 New accounting standards not yet applicable
In January 2008, the IASB issued an updated version of IFRS 3 – Business Combinations,
and amended IAS 27 – Consolidated and Separate Financial Statements. The principal
modifications made to IFRS 3 relate to elimination of the obligation to measure the individual
assets and liabilities of a subsidiary at fair value in each subsequent acquisition, in the case
of an acquisition in stages. Goodwill in this case will be determined as the difference
between the value of the investment immediately prior to the acquisition, the consideration
for the transaction and the value of the net assets acquired. In addition, if the company does
not acquire 100% of the equity investment, the minority interest in shareholders' equity may
be measured either at fair value or using the methodology already envisaged in the previous
29

Half-year report at 30 June 2009
version of IFRS 3. The revised version of the standard also requires that all costs associated
with the business combination be charged to the income statement, as well as recognition at
the acquisition date of the liability for contingent consideration.
In the amendment to IAS 27, the IASB established that changes in equity investments
interests not involving the loss of control must be recognised as equity transactions. In
addition, it was also established that when a parent company relinquishes control over an
investment but will retain an equity investment in that company, such equity investment must
be remeasured at fair value in the balance sheet and any profits or losses deriving from the
loss of control must be recognised in the income statement. Lastly, the amendment to IAS 27
requires that all losses attributable to minority shareholders be allocated to equity pertaining
to minority interest, even if they exceed their interest in the equity of the subsidiary
concerned. The new rules must be applied on a prospective basis from 1 January 2010.
As part of the 2008 Improvement process carried out by the IASB, the amendment made to
IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations states that if a
company is committed to a sale involving loss of control of a subsidiary, all the assets and
liabilities of that subsidiary must be reclassified as held for sale, even if the company will
retain a non-controlling interest in its former subsidiary after the sale. This amendment must
be adopted on a prospective basis from 1 January 2010.
On 31 July 2008, the IASB issued an amendment to IAS 39 – Financial Instruments:
Recognition and Measurement which must be applied on a retrospective basis from 1
January 2010. The amendment clarifies how to apply the standard when defining the
underlying that is hedged in particular situations. At the date of preparing these condensed
interim consolidated financial statements, the competent EU bodies have not yet completed
the endorsement process necessary for the adoption of this amendment.
On 27 November 2008, the IFRIC issued IFRIC 17 – Distributions of Non-cash Assets to
Owners in order to align the accounting treatment of such distributions. In particular, this
interpretation clarifies that dividends payable must be recognised when such dividends have
been appropriately authorised and that the payable must reflect the fair value of the net
assets that will be used to make the payment. Lastly, the business must recognise in the
income statement the difference between the dividend paid and the net carrying amount of
the assets used to make the payment. This interpretation is applicable on a prospective
basis from 1 January 2010. At the date of preparing these condensed interim consolidated
financial statements, the competent EU bodies have not yet completed the endorsement
process necessary for its adoption.
On 29 January 2009, the IFRIC issued IFRIC 18 – Transfers of Assets from Customers to
clarify the accounting treatment applicable if the business signs a contract under which it
receives a tangible asset from a customer that must be used to connect it to a network, or to
provide it with specific access to the supply of goods and services (such as the supply of
electricity, gas or water). In particular, in certain cases the business receives cash from the
customer in order to construct or purchase the tangible asset that will be used in the
performance of the contract. This interpretation is applicable on a prospective basis from 1
January 2010. At the date of preparing these condensed interim consolidated financial
statements, the competent EU bodies have not yet completed the endorsement process
necessary for its adoption.
On 5 March 2009, the IASB issued an amendment to IFRS 7 – Financial Instruments:
Disclosures to increase the information required in the case of measurement at fair value
and to strengthen existing standards with regard to disclosure of the liquidity risks associated
with financial instruments. This amendment is applicable from 1 January 2009. At the date
of preparing these condensed interim consolidated financial statements, the competent EU
bodies have not yet completed the endorsement process necessary for its adoption.
On 12 March 2009, the IASB issued amendments to IFRIC 9 – Reassessment of Embedded
Derivatives and IAS 39 - Financial Instruments: Recognition and Measurement that allow, in
specific circumstances, the reclassification of certain financial instruments away from the
“measured at fair value through profit or loss” category. These amendments clarify that,
30

Half-year report at 30 June 2009
when reclassifying a financial instrument away from the above category, all related
embedded derivatives must be measured and, if necessary, recognised separately in the
financial statements. These amendments are applicable on a retrospective basis from 31
December 2009. At the date of preparing these condensed interim consolidated financial
statements, the competent EU bodies have not yet completed the endorsement process
necessary for their adoption.
On 16 April 2009, the IASB issued a number of improvements to the IFRSs. The following
are mentioned since they were described by the IASB as requiring changes in the
presentation, recognition or measurement of captions, while those merely involving changes
in terminology or editorial corrections, with minimal effect in accounting terms, and those
affecting principles and interpretations not applicable to the Indesit Group have been
ignored.
- IFRS 2 – Share-based Payments: this amendment, which must be applied from 1
January 2010 (early adoption is allowed), clarifies - following amendment of the definition
of a business combination in IFRS 3 - that the contribution of a line of business on the
formation of a joint venture and the combination of businesses and lines of business in
entities under joint control do not fall within the scope of application of IFRS 2.
- IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations: this
amendment, which is applicable on a prospective basis from 1 January 2010, clarifies
that IFRS 5 and the other IFRSs making specific reference to non-current assets (or
groups of assets) classified as available for sale or as discontinued operations, establish
all the disclosures required for these types of assets or operations.
6. Changes in the scope of consolidation
Commencing from these condensed interim consolidated financial statements, Indesit
Company Ireland Ltd and Indesit Middle East FZE are consolidated on a line-by-line basis.
In addition, commencing from these condensed interim consolidated financial statements,
Aeradriatica S.p.A. is now part of the scope of consolidation following its spin-off from
Aermarche S.p.A., which has been sold to third parties and therefore deconsolidated.
These changes in the scope of consolidation have not resulted in significant changes
affecting the comparability of amounts with respect to prior periods.
7. Operating segments
The Group's operating segments, as defined in IFRS 8 – Operating Segments, comprise the
geographical areas which, in organisational terms, generate revenues and costs that are
periodically reviewed by the most senior decision makers in order to evaluate performance
and decide on the allocation of resources, and for which separate financial information is
available.
The Group identifies the following operating segments:
Italy;
UK and Ireland;
Russia, comprising Russia and the Asian republics;
Western Europe, comprising France, Spain, Portugal, Germany, Austria, Benelux,
Scandinavia, Switzerland, Estonia, Lithuania and Latvia;
Eastern Europe, comprising Poland, Ukraine, Moldova, Czech Republic, Hungary,
Romania, Greece, Bulgaria, Turkey and the Balkans;
Overseas, which includes all other non-European markets.
31

Half-year report at 30 June 2009
Segment revenue is calculated based on the final destination of the products and segment
results take account of all expenses that can be directly allocated to the geographical areas
concerned. The costs not allocated to geographical areas include non-recurring charges and
corporate costs. Similarly, financial income and expenses and taxation are not allocated to
the various geographical areas.
Except for trade receivables, assets, liabilities and investments are not allocated to
geographical areas and are examined by senior management at Group level.
The trade receivables allocated to geographical areas and reviewed by the most senior
decision makers comprise those deriving from the sale of finished products. They do not
include receivables deriving from the provision of services, advances to suppliers and the
effects of any disposals of receivables.
The following tables present the Group's operating information analysed by geographical
area based on the final destination of the products.
Analysis by operating segment at 30 June 2009
(million Euro)
UK and
West East
Russian
Overseas Costs not
Italy Area Ireland
Europe Europe
Total
Fed. Area
Area allocated
Area
Area Area
Total Sales 229,0 340,3 152,6 261,9 160,7 59,2 0,0 1.203,7
Total Sales 229,0 340,3 152,6 261,9 160,7 59,2 0,0 1.203,7
Cost of sales (171,7) (261,6) (114,2) (198,1) (131,9) (43,1) (17,1) (937,6)
Selling and distribution expenses (29,0) (50,5) (15,2) (51,9) (26,7) (10,3) (14,6) (198,2)
General and administrative expenses (2,3) (7,5) (5,6) (5,9) (2,8) (1,0) (27,4) (52,5)
Segment results 26,0 20,7 17,6 6,0 (0,7) 4,9 (59,1) 15,4
Net financial expenses 0,0 0,0 0,0 0,0 0,0 0,0 (36,2)
Share of profit (losses) of associates 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Income tax expense 0,0 0,0 (4,6) (0,1) 0,1 0,0 (1,8)
Profit attributable to the Group (22,6)
Analysis by operating segment of 30 June 2008
(million Euro)
UK and
West East
Russian
Overseas Costs not
Italy Area Ireland
Europe Europe
Total
Fed. Area
Area allocated
Area
Area Area
Total Sales 250,2 385,4 274,1 293,2 233,8 88,6 0,0 1.525,3
Total Sales 250,2 385,4 274,1 293,2 233,8 88,6 0,0 1.525,3
Cost of sales (188,8) (307,5) (184,6) (226,3) (180,6) (65,9) 11,0 (1.142,6)
Selling and distribution expenses (34,3) (60,7) (25,0) (58,1) (35,1) (13,5) (25,2) (251,9)
General and administrative expenses (2,2) (9,8) (6,5) (6,4) (3,2) (1,4) (28,9) (58,4)
Segment results 25,0 7,4 58,0 2,4 14,9 7,8 (43,1) 72,4
Net financial expenses 0,0 0,0 0,0 0,0 0,0 0,0 (13,9)
Share of profit (losses) of associates 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Income tax expense 0,0 0,0 (14,9) (0,1) (0,2) 0,0 (24,4)
Profit attributable to the Group 34,1
32

Half-year report at 30 June 2009
Trade receivables by operating segment at 30 June 2009
(million Euro)
30 June 2009
% of rolling
sales
(12 months)
30 June 2008
% of rolling
sales
(12 months)
Italy Area 110,6 21,3% 122,5 21,9%
Uk and Ireland Area 53,1 6,1% 76,2 7,3%
Russia Area 29,2 5,4% 66,7 8,9%
West Europe Area 74,5 11,6% 104,0 14,3%
East Europe Area 89,7 18,6% 117,4 20,2%
Overseas Area 29,4 20,7% 42,9 23,9%
Not allocated trade receivables 29,7 - 119,4 -
Total 416,2 12,6% 649,0 16,6%
33

Half-year report at 30 June 2009
8. NOTES TO THE CONSOLIDATED INCOME STATEMENT, BALANCE SHEET AND
STATEMENT OF CASH FLOWS
8.1. Revenue
Revenue is analysed as follows:
(million Euro)
30 June 2009 30 June 2008
Revenue from sale of finished products 1.102,1 1.421,9
Revenue from provision of services 101,6 103,4
Total Revenue 1.203,7 1.525,3
Revenues from the provision of services relate to services provided to customers (transport)
and to end consumers (after-sales maintenance) and to the sale of extended warranties
beyond the legal minimum period.
8.2. Cost of sales
Cost of sales consists of all production-related costs and mainly comprises the cost of raw
materials and components, external processing, direct and indirect labour, the depreciation
of property, plant and equipment, internal handling and logistics, inventory write-downs,
provisions for product warranty and provisions for risks and charges, research and
development expenses that are not capitalised.
Cost of sales is analysed below by type of expenditure.
(million Euro )
30 June 2009 30 June 2008
Change in the inventories of finished products 1,6 133,9
Purchase of raw materials, components, materials and change in inventories (655,4) (974,1)
Services (66,2) (75,5)
Payroll costs (131,9) (171,6)
Depreciation and amortization (55,6) (52,3)
Other expenses (45,9) (23,6)
Other income 15,9 20,6
Total (937,6) (1.142,6)
The cost of sales fell by slightly less than the decrease in volume. This was due to the lower
absorption of industrial overheads, partially offset by the lower cost of raw materials, an
improvement in production efficiency and the positive effect of the depreciation of the Polish
zloty and Russian rouble on the production costs incurred in those currencies.
8.3. Selling and distribution expenses
Selling and distribution expenses comprise all the costs incurred to commercialise products,
including advertising and promotion, and provide after-sales services, as well as the costs of
distributing products to the Group's warehouses and to customers.
Selling and distribution expenses are analysed below by type.
(million Euro )
30 June 2009 30 June 2008
Change in the inventories of finished products (0,6) (0,4)
Purchase of raw materials, components, materials and change in inventories (3,6) (6,8)
Services (128,6) (173,5)
Payroll costs (47,5) (53,1)
Depreciation and amortization (4,8) (4,1)
Other expenses (17,3) (21,6)
Other income 4,2 7,6
Total (198,2) (251,9)
34

Half-year report at 30 June 2009
The reduction in selling and distribution expenses reflects the lower volume of sales. The
most significant decrease relates to the cost of services, mainly as a result of lower
distribution costs and the significant reduction in advertising and promotional expenditure.
8.4. General and administrative expenses
General and administrative expenses include all general management and administrative
costs, and all expenditure not directly attributable to production, sales or research and
development units.
General and administrative expenses are analysed below by type:
(million Euro )
30 June 2009 30 June 2008
Purchase of raw materials, components, materials and change in inventories (1,2) (0,3)
Services (27,4) (34,2)
Payroll costs (22,6) (23,4)
Depreciation and amortization (7,3) (8,0)
Other expenses (4,5) (4,9)
Other income 10,6 12,1
Total (52,5) (58,7)
35

Half-year report at 30 June 2009
8.5. Operating profit
Operating profit is analysed below by type of cost.
(million Euro)
30 June 2009 30 June 2008
Revenue 1.203,7 1.525,3
Change in the inventories of finished products 0,9 133,7
Purchase of raw materials, components, materials and change in inventories (660,2) (981,2)
Services (222,4) (283,3)
Payroll costs (202,1) (247,9)
Depreciation and amortisation (67,7) (64,4)
Other income and expenses (37,0) (9,8)
Operating profit 15,4 72,4
In order to improve the presentation of the financial statements, the visible fees recovered
(recharge of waste equipment disposal costs) are now deducted from the corresponding
charges classified as part of the cost of services. The comparative data at 30 June 2008 has
also been reclassified.
The number of employees at 30 June 2009 is 16,805 (17,483).
In addition to the factors discussed above, the increase in other costs and revenues was due
to the recognition of higher restructuring charges in relation to the reorganisation of
production by the Group.
This caption also includes non-recurring income deriving from the relief of social security
contributions and taxes for the areas affected by the 1997 earthquake.
As required by Consob Communication DEM/6064293 dated 28 July 2006, non-operating
income and expenses are detailed in the following table. They mainly comprise restructuring
charges.
(million Euro)
Cost of
Sales
Selling and
distribution
expenses
General and
administrative
expenses
30 June 2009
Non recurring restructuring charges (36,3) (4,1) (0,8) (41,1)
Other non-recurring items 4,8 0,8 0,8 6,3
Total (31,3) (3,3) (0,0) (34,8)
The restructuring charges relate to the above-mentioned reorganisations and, in particular, to
the closure of the Kinmel Park factory in the UK and the reorganisation of production at the
None factory in Italy. The other net non-recurring income and charges mainly reflect the
accounting recognition of relief from taxes and contributions for the areas affected by the
1997 earthquake (Law 103/2008) and certain penalties incurred.
Non-recurring charges have an immediate cash flow effect, except for restructuring costs
whose cash flow effect is spread over a number of years consistent with the reorganisation
plans concerned. Total payables and provisions for non-recurring transactions at 30 June
2009 amount to 32.5 million euro and the cash flows absorbed by them was 0.9 million euro.
8.6. Interest expense, interest income, exchange rate differences and other net
financial expenses
Net financial expenses are analysed at 30 June 2009 as follows:
36

Half-year report at 30 June 2009
(million Euro)
30 June 2009 30 June 2008
Interest income 0,6 5,6
Interest income on UK pension schemes 0,3 3,1
Mark-to-market derivatives - 0,1
Total interest income 0,9 6,6
Interest expense (14,0) (20,5)
Interest expense on post employment employee benefits (1,2) (1,2)
Mark-to-market derivatives (3,7) 4,8
Total interest expense (18,9) (16,9)
Exchange rate fluctuations (16,6) (2,3)
Commissions (1,6) (1,3)
Total net financial expenses (36,2) (13,9)
See note 9 for information about derivatives outstanding at 30 June 2009.
8.7. Income tax
Income tax, amounting to 1.8 million euro (24.4 million euro), comprises current taxes of 23.1
million euro (29.9 million euro) and net deferred tax assets of 21.3 million euro (5.5 million
euro), mainly recognised in relation to the provisions for restructuring costs.
8.8. Property, plant and equipment
Property, plant and equipment are analysed as follows:
(million Euro)
30 June 2009 31 December 2008 30 June 2008
Land and buildings 259,3 270,8 266,4
Plant and machinery 240,6 261,9 271,1
Industrial and commercial equipment 81,0 86,2 86,5
Assets under construction 28,2 41,4 88,7
Other assets 26,4 32,4 34,8
Total 635,5 692,8 747,5
The change in the historical cost of property, plant and equipment is shown below:
(million Euro) 31 December 2008 Additions Decreases
Exchange
rate Reclassifications 30 June 2009
differences
Land and buildings 398,7 0,4 (1,5) (2,9) - 394,7
Plant and machinery 722,9 5,6 (23,5) (0,4) 4,5 709,1
Industrial and commercial equipment 423,2 1,0 (7,1) (1,8) 13,1 428,6
Assets under construction 41,4 7,0 (0,4) (2,5) (17,5) 28,2
Other assets 122,0 0,3 (4,6) 2,9 0,7 121,4
Total 1.708,3 14,4 (37,1) (4,6) 0,8 1.681,9
The changes in the related accumulated depreciation were as follows:
(million Euro) 31 December 2008
Depreciation
and
impairment
losses
Decreases
Exchange
rate
differences
Reclassifications 30 June 2009
Land and buildings (127,9) (6,6) 1,1 (2,0) - (135,4)
Plant and machinery (461,0) (27,2) 23,3 (3,4) (0,1) (468,4)
Industrial and commercial equipment (337,0) (14,9) 6,5 (1,7) (0,5) (347,5)
Other assets (89,6) (2,9) 0,4 (2,9) 0,0 (95,0)
Totale (1.015,5) (51,7) 31,4 (10,0) (0,6) (1.046,4)
The changes in the net carrying amount of property, plant and equipment are summarised in
the following table:
37

Half-year report at 30 June 2009
(million Euro) 31 December 2008 Additions
Depreciation
and
impairment
losses
Decreases
Exchange rate
differences
Reclassificat
ions
30 June 2009
Land and buildings 270,8 0,4 (6,6) (0,3) (4,9) - 259,3
Plant and machinery 261,9 5,6 (27,2) (0,2) (3,8) 4,3 240,6
Industrial and commercial equipment 86,2 1,0 (14,9) (0,5) (3,5) 12,7 81,0
Assets under construction 41,4 7,0 - (0,4) (2,5) (17,5) 28,2
Other assets 32,4 0,3 (2,9) (4,2) 0,0 0,7 26,4
Total 692,8 14,4 (51,7) (5,7) (14,7) 0,2 635,5
In line with the containment policy announced by the Group, in 2009 investments have been
restricted to strategic and/or essential projects, with a focus on the development and launch
of new products and the improvement of manufacturing processes.
8.9. Goodwill and other intangible assets with an indefinite useful life
Goodwill and other intangible assets with an indefinite useful life are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Goodwill 129,8 116,4 139,9
Brands with an indefinite useful life 102,2 91,4 135,5
Total goodwill and other intangible assets with an indefinite useful life 232,0 207,7 275,4
The changes in the net carrying amount of goodwill and other intangible assets with an
indefinite useful life are summarised in the following table:
(million Euro) 31 Dec 08
Exchange rate
differences
Reclassifications 30 June 09
Goodwill 116,4 13,5 - 129,8
Brands with an indefinite useful life 91,4 10,8 - 102,2
Total 207,7 24,3 - 232,0
The brand name with an indefinite useful life (Hotpoint) and goodwill relate to the acquisition
of General Domestic Appliances Holding Ltd. As mentioned in the consolidated financial
statements at 31 December 2008, part of the goodwill deriving from this acquisition was
allocated to the Group Cash Generating Units (CGUs) that benefit from the synergies
deriving from this acquisition.
Considering the results for the first half of 2009, checks were made on the principal plan
assumptions made when preparing the consolidated financial statements at 31 December
2008, in order to calculate the recoverable value of the CGUs to which the intangible assets
with an indefinite useful life were allocated. These checks did not identify any circumstances
at 30 June 2009 making it necessary to repeat the impairment tests at the level of the group
CGU o the UK CGU. There is no apparent need to adjust the carrying amounts of these
assets, given broad compliance with the plans made by the Group and recent trends in
exchange and interest rates.
8.10. Other intangible assets with a finite life
Other intangible assets are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Development expenses 45,8 37,7 35,7
Licences and software 39,1 42,0 39,7
Brands with a finite useful life 25,3 26,5 8,4
Intangible assets under development 4,3 12,4 11,9
Other 5,2 5,3 6,7
Total 119,7 123,9 102,3
The development expenditure capitalised during the first half of 2009 totalled 8.2 million euro
(6.1 million euro).
The changes in the historical cost of other intangible assets with a finite useful life during the
period are shown below:
38

Half-year report at 30 June 2009
(million Euro) 31 Dec 2008 Increases Decreases
Exchange
rate
differences
Reclassificat
ions
30 June 2009
Development expenses 81,8 7,0 (13,8) 3,7 6,2 84,9
Licences and software 76,1 1,5 (8,5) 1,1 0,8 70,9
Brands with a finite useful life 18,3 - - 5,4 - 23,7
Intangible assets under development 12,3 1,5 0,2 (2,2) (7,6) 4,3
Other 4,1 0,0 (0,5) (0,2) 0,3 3,6
Total 192,6 10,0 (22,7) 7,8 (0,3)
The changes in the related accumulated amortisation were as follows:
187,4
(million Euro) 31 Dec 2008
Amortization
and
impairment
losses
Decreases
Exchange
Reclassificat
rate
ions
differences
30 June 2009
Development expenses (44,1) (7,6) 13,5 (1,5) 0,6 (39,1)
Licences and software (34,0) (5,6) 8,5 (0,7) - (31,9)
Brands with a finite useful life 8,2 (2,5) (0,0) (4,1) - 1,7
Other 1,2 (0,2) 0,5 0,0 0,0 1,6
Total (68,7) (15,8) 22,6 (6,4) 0,6 (67,7)
The changes in the net carrying amount of other intangible assets with a finite life are
summarised in the following table:
(million Euro) 31 Dec 2008 Increases
Amortization
and
impairment
losses
Decreases
Exchange
rate
differences
Reclassificati
ons
30 June 2009
Development expenses 37,7 7,0 (7,6) (0,3) 2,1 6,8 45,8
Licences and software 42,0 1,5 (5,6) (0,0) 0,4 0,8 39,1
Brands with a finite useful life 26,4 - (2,5) (0,0) 1,2 - 25,3
Intangible assets under development 12,3 1,5 - 0,2 (2,2) (7,6) 4,3
Other 5,1 0,0 (0,2) (0,0) (0,2) 0,3 5,2
Total 123,7 10,0 (15,8) (0,1) 1,4 0,3 119,7
8.11. Inventories
Inventories are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Raw materials, components and semi-finished products 74,9 114,5 106,3
Obsolescence provision (2,8) (2,2) (1,9)
Total raw materials 72,1 112,2 104,4
Finished products, components and semi-finished products 244,4 246,0 330,9
Obsolescence provision (9,9) (11,3) (10,8)
Total finished products and semi-finished products 234,5 234,7 320,1
Spare parts 33,1 28,8 36,5
Obsolescence provision (1,7) (1,7) (3,4)
Total Spare part 31,4 27,1 33,1
Total Inventories 338,0 374,1 457,6
The reduction in inventories mainly reflects the adjustment of stocks to reflect forecasts for
production and future sales.
The obsolescence provision at 30 June 2009 totals 14.4 million euro (16.0 million euro) and
the amount accrual for the period was 0.8 million euro (utilisation of 2.1 million euro).
8.12. Trade receivables
Trade receivables comprise amounts due from customers as a result of commercial
transactions and the provision of services, stated net of the provision for doubtful accounts.
The provision for doubtful accounts totals 53.3 million euro (38.1 million euro) at 30 June
2009, and the related provision during the period amounted to 6.9 million euro (utilisation of
1.8 million euro).
39

Half-year report at 30 June 2009
The reduction in trade receivables mainly reflects the sale without recourse of receivables
and notes falling due subsequent to 30 June 2009, equal to 54.3 million euro, and the lower
volume of sales.
8.13. Other receivables and current assets
Other receivables and current assets are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Due from employees 2,8 2,2 3,0
Due from social security and pension institutions 6,1 3,0 3,9
Grants due from public bodies 5,9 5,6 6,3
Insurance reimbursements - 0,2 7,5
VAT receivable 20,5 46,3 42,9
Other receivables 7,5 6,3 4,3
Total other receivables and other current assets 42,7 63,6 67,9
The reduction since 31 December 2008 was mainly due to the decrease in the receivable
VAT recoverable due to the decline in purchases linked to the decrease in sales.
8.14. Equity attributable to the Group
Share capital comprises ordinary shares and savings shares, as analysed below inclusive of
treasury shares.
Description
30 June 09
Number
Euro
Ordinary shares 113.630.684 102.267.616
Savings shares 511.282 460.154
Total 114.141.966 102.727.770
No dividends were paid during the first half of 2009 (52.5 million euro in 2008).
With reference to the amounts reported in the Consolidated Statement of Comprehensive
Income, during the first half of 2009 the loss on cash flow hedges is negative for 9.9 million
euro and it comprises: the pre-tax reduction in cash flow hedges generated during the period
for 0.3 million euro, the pre-tax increase in cash flow hedges reclassified to the income
statement for 14.7 million euro, and related tax effects of 4.5 million euro.
The gain on the translation of foreign currency financial statements for the first half of 2009
was 10.8 million euro.
The calculations of basic earnings per share and diluted earnings per share reported in the
consolidated income statements for the six months ended 30 June 2009 and 2008 are set
out in the following table.
40

Half-year report at 30 June 2009
Basic EPS 30 June 2009 30 June 2008
Basic attributable earnings (million Euro) (22,6) 33,7
Basic average number of ordinary shares (thousand) 102.590,9 102.590,9
Ordinary EPS (without savings shares effect) (0,22) 0,33
Unit earnings attributed to savings shares (Euro) (0,22) 0,33
Number of savings shares (thousand) 511,3 511,3
Earnings attributed to savings shares (million Euro) 0,1 (0,2)
Basic attributable earnings (million Euro) (22,5) 33,5
Basic average number of ordinary shares (thousands) 102.590,9 102.590,9
Basic EPS (Euro) (0,22) 0,33
Diluted EPS
Basic attributable earnings (Euro million) (22,5) 33,5
Basic average number of ordinary shares (thousands) 102.590,9 102.590,9
Average number of shares granted to Directors without payment (thousands) - -
Average number of shares granted to employees without payment (thousands) 21,9 150,7
Total 102.612,8 102.741,7
Diluted EPS (Euro) (0,22) 0,33
8.15. Net financial indebtness
The net financial indebtness of the Group is analysed below.
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Current financial assets 8.15.1 27,6 43,8 53,5
Cash and cash equivalents 8.15.2 136,1 193,2 152,3
Banks and other financial payables 8.15.3 (297,3) (268,2) (513,8)
Net financial position - short term (133,6) (31,2) (307,9)
Medium/long-term financial payables 8.15.4 (392,6) (451,9) (297,8)
Net financial position (1) (526,2) (483,1) (605,7)
Other non-current financial assets 8.15.5 2,1 9,3 13,3
Net financial position (524,1) (473,8) (592,5)
1) As defined in CONSOB Communication DEM /6064293 dated 28/07/2006, applying the CESR
recommendations dated 10/02/2005
8.15.1 Current financial assets
Current financial assets include assets deriving from the measurement of financial
transactions in accordance with IAS 39. See note 9 below for more information about these
financial transactions.
8.15.2 Cash and cash equivalents
Cash and cash equivalents include bank and postal deposits, as well as cheques and other
amounts on hand. The changes in liquidity during the period are analysed in the consolidated
statement of cash flows.
8.15.3 Banks and other financial payables
Banks and other financial payables mainly comprise amounts due within the current year.
This caption is analysed below.
41

Half-year report at 30 June 2009
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Short-term bank loans 197,5 172,4 322,4
Short-term advances for transfer of receivables 8,3 3,8 105,8
Liability from the measurement of derivative instruments 18,2 18,4 8,2
Current portion of bonds issued 57,1 58,5 11,0
Current portion of liability from the acquisition of GDAH - - 35,1
Current portion of medium/long-term bank loans 15,5 14,3 30,5
Current portion of other medium/long-term loans 0,8 0,8 0,8
Total 297,3 268,2 513,8
Short-term bank borrowings comprise bank overdrafts, the current portion of the revolving
lines of credit drawn down and other short-term advances in various forms.
Short-term advances for transfer of receivables mainly relate to the sale of receivables with
recourse basis.
8.15.4 Medium and long-term interest-bearing loansand borrowing
Medium and long-term interest-bearing loans and borrowingare analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Bonds 201,2 212,0 212,3
Due to banks 168,1 227,3 31,0
Other financial payables 23,3 12,6 54,5
Total 392,6 451,9 297,8
The bonds were subscribed by institutional investors (U.S. Private Placement) and are
denominated in USD. The change in their fair value is offset by the change in the fair value of
the derivative arranged to hedge this liability (Cross Currency Swap).
The interest and exchange rate risks relating to the above-mentioned U.S. Private Placement
have been hedged by a Cross Currency Swap which is described below in note 9 on
Financial instruments.
The long-term amounts due to banks mainly comprise the partial draw down of 150.0 million
euro against a revolving line of credit for 350.0 million euro that expires in 2012.
Other payables are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Lease payables 0,7 0,9 1,1
Liability from the measurement of derivatives 22,2 11,1 52,8
Other financial payables 0,4 0,6 0,6
Total 23,3 12,6
Medium and long-term payables are analysed by maturity in the following table.
54,5
(million Euro)
Medium/long-term
financial payables
Between 1 and 5 years
Beyond 5 years
Bonds 201,2 78,4 122,8
Due to banks 168,1 168,1 -
Other fiancial payables 23,3 3,8 19,6
Total 392,6 250,2 142,4
Among other obligations, the bond and the committed bank loans require compliance with
certain financial covenants. In particular, the financial parameters applying at 30 June each
year are set out below:
42

Half-year report at 30 June 2009
Covenants
EBITDA / Net financial expenses 3,5
Net borrowing / EBITDA 3,5
Equity
covenant limit
320 million Euro
In addition to the financial covenants, the bond and the committed lines of credit require
Indesit Company S.p.A. and, in certain cases, a number of Group companies to comply with
other undertakings (affirmative and negative covenants) that reflect market standards for
transactions of a similar nature, amount, maturity and risk profile.
Failure to comply with these covenants would, following the elapse of a given period of time
available to correct such non-compliance, give the counterparty a right to the early
repayment of the related borrowings. The above parameters are monitored constantly by the
Group and, at 30 June 2009 all the covenants have been respected.
The maturity profile of long-term borrowing is presented below:
Medium/longterm
financial
payables 2010 2011 2012
MATURITY
2013 2014 2015 2016
Bonds 201,2 4,7 57,1 6,8 6,5 111,4 0,8 13,8
Due to banks 168,1 3,9 15,7 147,3 1,2 0,0 0,0 0,0
Other financial payables 23,3 1,7 1,7 0,1 0,2 16,8 0,0 2,8
Total 392,6 10,4 74,5 154,2 7,9 128,2 0,8 16,6
8.15.5 Other non-current financial assets
Other non-current financial assets are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Term deposits 0,0 5,1 5,1
Asset from the measurement of derivative instruments 2,0 4,2 8,2
Total 2,1 9,3
All mature other non-current financial assets within 5 years.
13,3
8.16. Employee benefits
Employee benefits reflect the provisions recorded for such post-employment benefits as
severance indemnities and pension plans.
This caption solely comprises the liability arising in relation to defined benefit plans; these
plans principally relate to the TFR accrued by Italian companies up to 31 December 2006, for
46.3 million euro (48.9 million euro), the pension funds of the British companies, for 19.1
million euro (25.8 million euro) and other smaller plans, for 2.2 million euro (2.3 million euro).
8.17. Provisions for risks and charges
The provisions for risks and charges are analysed as follows:
43

Half-year report at 30 June 2009
2009
Opening
balance
1/1/2009
Provisions
Uses
Other
movements
Closing
balance
30/6/2009
Current
portion
Noncurrent
portion
Provision for warranties 57,2 5,3 (5,6) 0,3 57,3 31,2 25,9
Provision for agents' termination indemnities 1,4 0,0 (0,0) - 1,4 (0,0) 1,4
Provisions for restructuring 0,3 21,9 (0,1) - 22,1 5,9 16,2
Provision for WEEE 8,0 0,8 (0,4) 0,1 8,5 3,8 4,8
Provision for onerous contracts 5,0 - (2,1) 0,5 3,4 3,4 -
Provision for disputes 23,3 0,2 (2,8) (0,3) 20,3 20,3 0,1
Total 95,2 28,2 (11,0) 0,6 113,0 64,6 48,4
2008
Opening
balance
1/1/2008
Provisions
Uses
Other
movements
Closing
balance
30/6/2008
Current
portion
Noncurrent
portion
Provision for warranties 61,6 4,3 (5,3) 0,4 60,9 35,0 25,9
Provision for agents' termination indemnities 1,3 0,1 (0,1) (0,0) 1,3 - 1,3
Provisions for restructuring 1,4 - (0,3) - 1,1 0,1 1,0
Provision for WEEE 10,2 1,4 (2,5) 0,2 9,3 0,2 9,0
Provision for onerous contracts 3,5 0,4 - (0,3) 3,6 3,6 -
Provision for disputes 14,0 8,5 (2,6) (0,6) 19,3 15,3 4,0
Total 92,0 14,6 (10,8) (0,3) 95,5 54,2 41,3
The increase in the provision for restructuring reflects provisions for charges associated with
the reorganisation of the Group's production activities.
8.18. Other non-current liabilities
Other non-current liabilities solely relate to deferred grants from the government and other
bodies. These grants are analysed by country below:
(million Euro )
30 June 2009 31 Dec 2008 30 June 2008
Italy 6,9 7,6 8,3
Poland 31,7 34,7 44,2
Other countries - - 0,1
Other non-current liabilities 38,6 42,3 52,6
Deferred Italian government grants totalling 0.7 million euro (0.7 million euro) were credited
to the income statement for the period, together with deferred Polish government grants
amounting to 2.0 million euro (1.6 million euro).
8.19. Other payables
Other payables are analysed as follows:
(million Euro )
30 June 2009 31 Dec 2008 30 June 2008
Due to social security and pension institutions 23,3 24,5 27,1
Due to employees 69,7 48,0 72,8
VAT payable 25,2 27,0 29,5
Other payables 1,6 6,0 6,5
Total 119,9 105,5 136,0
8.20. Share-based payments (stock options)
Stock option plan for Group executives and managers
The resolutions adopted at the extraordinary meetings held on 16 September 1998 and on
23 October 2001 authorised, pursuant to art. 2441 of the Italian Civil Code, two increases in
share capital by up to 2,700,000 euro each, via the issue of a combined maximum of
6,000,000 ordinary shares, nominal value Euro 0.90 each, to service the stock option plan for
the Group's executives and managers. The Board of Directors, in the person of the
Chairman, determines the number of options to be granted each year and identifies - on the
recommendation of the Chief Executive Officer - the beneficiaries of the options. The options
granted on 24 July 2003 (last grant date) envisage a vesting period of 3 years for the first
50% and 4 years for the remaining 50%. The options granted previously envisage a vesting
44

Half-year report at 30 June 2009
period of 2 years and 3, years respectively, and may be exercised within 10 years of the
grant date.
No new plans were authorised during the first half of 2009 and no stock options were
granted.
STATEMENT OF CASH FLOWS
8.21. Total profit, Income taxes, Depreciation and amortization, Income Taxes paid
The total profit, income taxes, depreciation and amortization, all non-monetary items, are
reported directly on the face of the income statement and in the related notes, to which
reference is made. The provision for income taxes recorded in the first half of 2009 totalled
1.8 million euro, while payments of 15.3 million euro have been made to settle the residual
amount due for the prior year and make tax advances. The amounts due are determined with
reference to tax regulations in the various countries in which the Group operates.
8.22. Other non-monetary income and expenses, net
The other non-monetary income and expenses, net, comprise all non-monetary items
recorded in the income statement, except for income taxes, depreciation and amortization
and the provisions deducted directly from asset captions (provision for doubtful accounts and
provisions for obsolescence). Accordingly, they include provisions for warranties, provisions
for risks and charges, disposal gains and losses, unrealised exchange rate fluctuations, and
accrued interest income and expense. The interest collected and paid, reported separately,
was essentially the same as the amounts recognised in the income statement.
8.23. Change in trade receivables, inventories, trade payables
This caption reports the cash absorbed or generated by the changes in net working capital,
which comprises trade receivables, inventories and trade payables. The changes in trade
payables relate solely to the supply of raw materials, goods and services, and exclude the
changes in amounts due to suppliers of fixed assets, which are reported in the section of the
statement of cash flows that reports the cash flows generated (absorbed) by investing
activities.
8.24. Change in other assets and liabilities
This caption reports the change in all other current and non-current assets and liabilities, net
of the lelated effect of the provisions for non-monetary income and expense. This represents
the changes in the related balances with a direct effect on the absorption or generation of
cash.
8.25. Payments for acquisition of property, plant and equipment and proceeds from
their disposal
The cash flow from acquisition of property, plant and equipment reflect investments in the
replacement of plant and in new plant, mainly by the companies operating in Turkey, Poland
and the CIS. In this context, there were also changes in payables, receivables and advances
to suppliers of property, plant and equipment.
8.26. Payments for acquisition of intangible assets
The cash flow from investments in intangible assets relate to the purchase of licences and
software, and the capitalisation of development costs.
The cash flows generated (absorbed) by investing activities include the amounts capitalised
since these involve payments for the related internal costs incurred (mainly payroll). These
payments essentially reflect the costs capitalised during the period.
45

Half-year report at 30 June 2009
8.27. Proceeds from the sale of non-current financial assets and investment in
financial and other fixed assets
Proceeds from the sale of non-current financial assets include the cash flows relating to
changes in the carrying amount of non-current financial assets due to the collection of
dividends from associates measured using the equity method.
8.28. Other refunds of medium/long-term borrowings
The repayments of other medium/long-term borrowings relate to loans from banks and other
providers of finance.
8.29. Change in current financial payables
The change in current financial payables includes the change in short-term bank borrowing
since this represents a technical form of short-term borrowing.
9. Financial instruments
Risk management policies
The Group is exposed to the following principal financial risks deriving from operations:
Liquidity risk: the Group defines liquidity risk as the risk that a Group company, or the
Group as a whole, may be unable to meet its obligations on a timely basis.
Market risks:
o exchange rate: exchange rate risk relates to the adverse effects of changes
in the exchange rates for foreign currencies on the economic-financial
results and equity position of the Group.
o interest rate: the Group defines interest rate risk as the risk that adverse
movements in the interest rate curve (both changes in slope and parallel
shifts) might have a negative effect on the cost of liabilities or the yield from
financial assets and, in the final analysis, on the Group's net financal
expenses.
o commodity prices: the Group is subject to the risk that fluctuations in the
prices for the commodities used in the production process might have an
adverse effect on the results for the period.
Credit risk: credit risk represents the Group's exposure to potential losses deriving from
the failure of counterparts to meet their obligations.
The above risks are managed in accordance with the guidelines established in the Treasury
Policy approved by the Board of Directors and, with regard to the commodity price risk, in the
context of the Group's purchasing policies.
Information about the Group's exposure to and assessment of the above financial risks is
provided in the consolidated financial statements at 31 December 2008. There have not
been any significant changes subsequent to that date.
Transactions outstanding at period end
The transactions outstanding at 30 June 2009 and their fair values are reported in the
following table, which also indicates the change in the carrying amount value of the
underlyings (where applicable). This is followed by detailed information on the individual
transactions.
46

Nature of risk hedged
Fair value of derivatives at
30.06.2009
Fair value of derivatives at
31.12.2008
Change in fair value of derivatives at
30.06.2009 versus 31.12.2008
Change in Fair value of underlyings
at 30.06.2009 vs. inception date
Change in Fair value of underlyings
at 31.12.2008 vs. inception date
Change in Fair value of underlyings
at 30.06.2009 versus 31.12.2008
Other non-current financial
assets
Current financial assets
Medium/long-term financial
payables
Banks and other financial
payables
Total
Half-year report at 30 June 2009
Financial Instruments
Classification at 30 June 2009
Operation of cash flow
hedging
a Currency options Currency 0,5 19,2 (18,7) na na na - 1,9 - (1,4) 0,5
b IRS on loans Interest rate - 0,0 (0,0) na na na - - - - -
c Irs on Securitization Interest rate (6,8) (1,0) (5,7) na na na - - (2,9) (3,9) (6,8)
d Forward Price (4,1) (6,3) 2,2 na na na - 0,9 - (4,9) (4,1)
Total (10,3) 11,9 (22,2) na na na - 2,8 (2,9) (10,2) (10,3)
Fair value hedges
e CCS on bonds Currency/Interest rate (20,6) (11,3) (9,3) 17,3 4,9 12,4 0,9 1,8 (19,3) (4,0) (20,6)
f IRS on bonds Interest rate 1,7 1,2 0,5 (1,7) (1,4) (0,2) 1,1 0,5 - - 1,7
Total (19,0) (10,1) (8,9) 15,6 3,5 12,1 2,0 2,3 (19,3) (4,0) (19,0)
Other hedges
g Currency options Currency - 0,1 (0,1) na na na - - - - -
h Forward Currency (3,0) 5,8 (8,8) na na na - 1,0 - (4,0) (3,0)
Totale (3,0) 5,9 (8,9) na na na - 1,0 - (4,0) (3,0)
Totale generale (32,3) 7,7 (39,9) 15,6 3,5 12,1 2,0 6,1 (22,2) (18,2) (32,3)
a. The currency options recognised as cash flow hedges were acquired to hedge the
exchange rate risk on highly likely future transactions and have a notional value of
194.0 million euro. The principal hedged currencies are the British pound and the
Polish zloty. The reduction was mainly due to the close-out, during the first half of the
year, of transactions that had a positive value at year end (especially hedges of the
British pound).
b. The float-to-fix interest rate swap on loans outstanding at 31 December 2008 was
closed-out during the first half of 2009.
c. Float-to-fix Interest Rate Swaps with a nominal value of 274.8 million euro, initially
arranged to transform the exposure to the U.S. Private Placement from floating rate
euro to fixed rate euro during the period March 2007 – March 2011 and not
recognised as a hedge, have been designated from 1 July 2008 as cash flow hedges
of the interest rate risk on part of the short-term loans, the use of which is expected to
be equivalent to such Interest Rate Swaps in terms of their nominal value and
maturities. The necessary effectiveness tests for the adoption of hedge accounting
have been performed for this hedging relationship. The reduction was mainly due to
the decrease in interest rates during the first half of the year.
d. The forwards, designated as cash flow hedges, were arranged to hedge the
exchange rate risk on future, highly likely transactions, and the price risk on future,
highly likely purchases of commodities and semi-finished products; they have a
nominal value of 101.5 million euro. With regard to the forwards hedging the rate
exchange risk, the principal hedged currencies are the British pound, the Polish zloty,
the Turkish lira and the Chinese reminbi. The commodity forwards relate to the
forward purchase of copper and aluminium at fixed exchange rates.
e. The cross currency swap was arranged to hedge the interest rate and exchange rate
risks deriving from commitments in relation to the US Private Placement of bonds
with a nominal value of 308.0 million dollars. This transaction converted the fixed rate
US dollar bonds into floating rate euro. The notional value amounts to 256.9 million
euro.
f. The interest rate swap on the bonds relates to the euro tranche of the US Private
Placement, with a nominal value of 18.3 million euro, and was arranged to hedge the
47

Half-year report at 30 June 2009
interest rate risk which was swapped from fixed to floating at the time the loan was
arranged.
g. The currency options not recognised for hedge accounting purposes were all closed
out during the first half of the year.
h. The currency forwards not recognised for hedge accounting purposes were mainly
arranged to hedge exposures in the following currencies: British pound, Polish zloty,
Turkish lira, Chinese reminbi, Hungarian forint and US dollar, and have a notional
value of 333.9 million euro. The reduction was mainly due to the close-out during the
first half of 2009 of transactions that had a positive value at year end, and to the
negative fair value of instruments arranged during the period.
10. Information required by IAS 24 on the remuneration of management and on related
parties
Remuneration of management
In addition to the executive and non-executive directors and the statutory auditors, the
managers with strategic responsibility for operations, planning and control include the
Administration, Finance and Control Manager, the Marketing Manager, the Industrial
Technical Manager and the Supply Chain and IT Manager.
The expected gross remuneration of the above persons for 2009, comprising all forms of
compensation (gross pay, bonuses, fringe benefits, etc.), and the bonuses provided but not
yet paid, since subject to the achievement of long-term objectives, is shown in the following
table.
Remunerations of directors, statutory auditors and managers with strategic responsibility operations at
30/06/2009
(million Euro)
Short-term
benefits
Long-term
benefits
Stock options
Directors 4,6 0,1 -
Statutory Auditors 0,1 - -
Managers with strategic responsibility operations 3,7 1,7 -
Total 8,4 1,7 -
Remunerations of directors, statutory auditors and managers with strategic responsibility operations at
30/06/2008
(million Euro)
Short-term
benefits
Long-term
benefits
Stock options
Directors 4,0 1,7 -
Statutory Auditors 0,1 - -
Managers with strategic responsibility operations 3,0 2,1 -
Total 7,1 3,8 -
List of related parties
The principal related parties (other than subsidiaries), as defined in IAS 24, with which
commercial and financial transactions have been carried out, are listed below. All commercial
and financial transactions with these entities were arranged on arms'-length terms and in the
interest of the Group.
48

Half-year report at 30 June 2009
List of related parties
Faber Factor Spa
Fines
Fineldo Spa
LTT Life Tool Technologies Spa
Marcegaglia Spa
Marcegaglia Building Spa
M&B Marchi e Brevetti Spa
MCP eventi Srl
Merloni Maria Paola
Merloni Progetti Spa
MPE Spa
M P & S Srl
Mita srl
MPE Energia Srl
Protecno Sa
Tradeplace BV
Indesit Company UK Ltd Group
Personal Pension Plan
Co Env
Type of relationship
Other related - Controlled by Fineldo S.p.A., Group parent of Indesit company
Other related - Related to a member of the Merloni family
Group parent belonging to Vittorio Merloni
Other related - Related to a member of the Merloni family
Other related - Related to a Director of the Group
Other related - Related to a Director of the Group
Associate
Other related - Related to a member of the Merloni family
Other related - Member of the Merloni family
Other related - Controlled by Fineldo S.p.A., Group parent of Indesit company
Other related - Controlled by Fineldo S.p.A., Group parent of Indesit company
Other related - Related to a member of the Merloni family
Other related - Related to a member of the Vigilance Committee
Other related - Controlled by Fineldo S.p.A., Group parent of Indesit company
Other related - Related to a member of the Merloni family
Associate
Pension fund
Associate
Merloni Ireland Pension Plan Pension fund
In addition to the above companies, the following physical persons are also deemed to be
related parties: members of the Board of Directors and the Board of Statutory Auditors,
managers with strategic responsibility for management, planning and control activities, and
the close family members of these parties, as defined in IAS 24.
Nature of relations with the principal related parties
Indesit Company UK Ltd Group Personal Pension Plan and Merloni Ireland Pension Plan
Indesit Company UK Ltd and the employees concerned contribute to The Indesit Company
UK Ltd Group Personal Pension Plan and the Merloni Ireland Pension Plan under the
pension rules applicable in the UK.
The Merloni Progetti Group
The Merloni Progetti Group leases property to Indesit Company.
Schedules summarising transactions with related parties
The table on the next page summarises the balances and transactions with the related
parties identified above, distinguishing between the transactions with the parent company,
associates and other related parties. Furthermore, in accordance with Consob Resolution no.
15519 dated 27 July 2006 and Consob Communication no. DEM/6064293 dated 28 July
2006, Attachments 3 and 4 present the consolidated income statement and balance sheet
showing the transactions with related parties separately and indicating their percentage
incidence with respect to each financial statement caption.
There have not been any significant, atypical and/or unusual transactions with related parties
(except those with regard to the pension funds described above).
The increase in the cost of purchasing from related parties reported in Cost of sales is due to
the classification of the cost of purchasing raw materials from the Marcegaglia group, which
is considered a related part following the appointment of Emma Marcegaglia as a director of
Indesit Company. Purchases for similar amounts were also made in previous years.
49

Half-year report at 30 June 2009
Schedules summarizing transactions with related parties
(million Euro)
30 June 2009 30 June 2008
Revenue
Other related 0,0 0,0
Associates - -
Parent Company 0,2 0,2
Total 0,2 0,2
Cost of sales
Associates - -
Other related (3,5) (9,7)
Total (3,5) (9,7)
Selling and distribution expenses
Other related (0,0) (0,5)
Associates - -
Total (0,0) (0,5)
General and administrative expenses
Associates - (0,4)
Other related (0,0) (0,3)
Parent Company - (0,1)
Total (0,0) (0,7)
Property, plant and equipment
Associates - -
Other related 3,5
Total 3,5 -
Trade receivables
Associates - -
Other related 0,9 0,2
Parent Company 0,2 0,2
Total 1,2 0,4
Trade payables
Associates - 0,0
Other related (2,9) 3,7
Parent Company 0,0 0,1
Total (2,9) 3,8
Other payables
Parent Company - -
Other related (0,1) (0,1)
Total (0,1) (0,1)
The amounts for other related parties within Cost of sales mainly relate to the Marcegaglia
group, 2.8 million Euro, for the purchase of raw materials.
The amounts for other related parties within Trade payables mainly relate to the Marcegaglia
group, 2.6 million Euro.
The amounts for other related parties within Trade receivables mainly relate to the advance
paid to Vittorio Merloni (Chairman), 0.9 million Euro, for the property disposal assigned to
home and guest quarters for Executives and Managers of the Group. The total amount of
property disposal is 2.3 million Euro.
50

Half-year report at 30 June 2009
Attachment 1. List of companies consolidated on a line-by-line basis
List of companies consolidated on a line-by-line basis
Name
Registered
Note
Share capital
Group interest
office
direct indirect
Indesit Company Luxembourg Sa Luxembourg EUR 117.977.728,65 100,00 -
Indesit Electrodomesticos Sa Spain EUR 1.000.000 78,95 21,05
Merloni Domestic Appliances Ltd UK GBP 90.175.500 19,60 80,40
Indesit Company Portugal Electrodomésticos Sa Portugal EUR 3.129.450 - 99,44
Indesit Company International Bv The Netherlands EUR 272.270 - 100,00
Indesit Pts Ltd UK GBP 1.000 - 100,00
Indesit Company France Sas France EUR 17.000.000 - 99,99
Fabrica Portugal Sa Portugal EUR 11.250.000 - 96,40
Indesit Company Beyaz Esya Sanayi ve Ticaret A.S. Turkey TUL 53.870.580 - 100,00
Indesit Company Beyaz Esya Pazarlama A.S. Turkey TUL 69.744 100,00 -
Indesit Company Deutschland GmbH Germany EUR 550.000 - 99,75
Indesit Company Ireland Reinsurance Ltd Ireland USD 750.000 - 100,00
Closed Joint Stock Company Indesit International Russia RBL 1.664.165.000 100,00 -
Indesit Company Polska Sp.z o.o. Poland PLN 540.876.500 100,00 - (1)
Argentron Sa Argentina ARS 22.000.000 - 100,00
Indesit Company Magyarország Kft Hungary HUF 2.116.400.000 - 100,00
Indesit Company Ceská s.r.o Czech Republic CZK 1.000.000 100,00 -
Indesit Company International Business Sa Switzerland SFR 250.000 - 100,00
Indesit Company UK Finance Llp UK EUR 95.750.000 99,00 1,00
Indesit Company Uk Holdings Ltd UK EUR 163.000.000 - 100,00
General Domestic Appliances Holdings Ltd UK GBP 26.000.000 - 100,00
Indesit IP Srl Italy EUR 10.000 100,00 -
Indesit Aeradriatica Spa Italy EUR 23.068.545 100,00 -
Indesit Company Ireland LTD UK EUR 100.000 100,00
Airdum Ltd UK GBP 15.000 - 100,00
Cannon Industries Ltd UK GBP 3.000.000 - 100,00
Creda Domestic Appliances Service Ltd UK GBP 1.000 - 100,00
Creda Ltd UK GBP 5.850.000 - 100,00
Fixt Ltd UK GBP 2 - 100,00
General Domestic Appliances International Ltd UK GBP 100.000 - 100,00
Hotpoint Sales Ltd UK GBP 775.000 - 100,00
Hotpoint UK Ltd UK GBP 50 - 100,00
Jackson Appliances Ltd UK GBP 750.000 - 100,00
Indesit Company UK Ltd UK GBP 76.195.645 - 100,00
Xpelair Ltd UK GBP 825.000 - 100,00
Ariston Group Services Ltd UK GBP 100 - 100,00
RTC International Ltd UK GBP 50.000 - 100,00
Wuxi Indesit Home Appliance Co. Ltd China USD 13.600.000 - 70,00
Indesit Company Österreich Ges. m.b.h. Austria EUR 18.168,21 - 100,00
Indesit Company Belgium SA Belgium EUR 150.000 - 100,00
Indesit Middle East FZE Dubai AED 1.000.000 100,00 -
(1) includes the percentage held subject to a resale clause.
51

Half-year report at 30 June 2009
Attachment 2. List of other investments in subsidiaries and associates
List of other investments in subsidiaries and associates
Name
Registered
office
Share capital
Group interest
direct indirect
Indesit Company Bulgaria Ltd Bulgaria BGL 7.805.000 100,00 -
Indesit Company Domestic Appliances Hellas Mepe Greece EUR 18.000 - 100,00
Indesit Company Norge Ltd Norway NOK 100.000 - 100,00
Indesit Company Singapore Pte. Ltd. Singapore SGD 100.000 - 100,00
Co Env Italy EUR 24.000 22,20 -
Tradeplace B.V. The Nederlands EUR 30.000 20,00 -
Indesit Rus Ltd Russia RBL 4.340.000 1,00 99,00
52

Half-year report at 30 June 2009
Attachment 3. Consolidated income statement for the period ended 30 June 2009,
prepared in accordance with Consob Resolution no. 15519 dated 27 July 2006 and
Consob Communication no. DEM/6064293 dated 28 July 2006
(million Euro)
30 June 2009 30 June 2008
Balances of which
non
recurring
of which
with
related
parties
Balances of which
non
recurring
of which
with
related
parties
Revenue 1.203,7 - (0,2) 1.525,3 - (0,2)
Cost of sales (937,6) (31,3) (3,5) (1.142,6) (16,7) (9,7)
Selling and distribution expenses (198,2) (3,3) (0,0) (251,9) - (0,5)
General and administrative expenses (52,5) (0,0) (0,0) (58,4) (0,1) (0,7)
Operating profit 15,4 - - 72,4 - -
Net financial expenses (36,2) - - (13,8) - -
Share of profit (losses) of associates - - - - - -
Profit before tax (20,8) - - 58,6 - -
Income tax expenses (1) (1,8) 9,5 n.a. (24,4) 4,7 n.a.
Profit (loss) for the period (22,6) - - 34,1 - -
Percentage weight over Consolidated
Income Statement items
30 June 2009 30 June 2008
Balances
of which
non
recurring
of which
with
related
parties
Balances
of which
non
recurring
of which
with
related
parties
Revenue 100,0% - (0,0%) 100,0% - 0,0%
Cost of sales 100,0% 3,3% 0,4% 100,0% 1,5% 0,8%
Selling and distribution expenses 100,0% 1,7% 0,0% 100,0% - 0,2%
General and administrative expenses 100,0% 0,0% 0,0% 100,0% 0,2% 1,2%
Other income - - - - - -
Other expenses - - - - - -
Operating profit 100,0% - - 100,0% - -
Net financial expenses 100,0% - - 100,0% - -
Share of profit (losses) of associates - - - -
Profit before tax 100,0% - - 100,0%
Income tax expenses 100,0% (531,5%) n.a. 100,0% (19,3%) n.a.
Profit (loss) for the period 100,0% - - 100,0% - -
(1) Tax effects calculated referring to tax rate of the countries in which the operations took place.
53

Half-year report at 30 June 2009
Attachment 4. Consolidated balance sheet at 30 June 2009, prepared in accordance
with Consob Resolution no. 15519 dated 27 July 2006 and Consob Communication no.
DEM/6064293 dated 28 July 2006
Million Euro and percentage weight over
Consolidated Balance Sheet items
30 June 2009 30 June 2008
Balances of which
with
related
parties
Weight % Balances of which
with
related
parties
Weight %
Assets
Property, plant and equipment 635,5 3,5 0,1% 747,5 - -
Goodwill and other intangible assets with an
232,0 - - 275,4 - -
indefinite useful life
Other intangible assets with a finite useful life 119,7 - - 102,3 - -
Investments in associates 0,6 - - 0,5 - -
Other non-current assets 31,7 - - 33,5 - -
Deferred tax assets 68,8 - - 36,9 - -
Other non-current financial assets 2,1 - - 13,3 - -
Total non-current assets 1.090,3 1.209,3 - -
Inventories 338,0 - - 457,6 - -
Trade receivables 416,2 1,2 0,3% 649,0 0,4 0,1%
Current financial assets 27,6 - 0,0% 53,5 - -
Tax receivables 44,2 - - 61,4 - -
Other receivables and current assets 42,7 - - 67,9 - -
Cash and cash equivalents 136,1 - - 152,3 - -
Assets held for sale - - - - - -
Total current assets 1.004,9 1.441,7
Total assets 2.095,2 2.651,0
Equity
Share capital 92,8 - - 92,8 - -
Reserves 176,8 - - 308,4 - -
Retained earnings 151,3 - - 95,8 - -
Profit attributable to the group (22,6) - - 33,7 - -
Equity attributable to the group 398,3 - - 530,7 - -
Minority interests 2,5 - - 2,2 - -
Total equity 400,8 - - 532,9 - -
Liabilities
Medium and long-term interest-bearing loans
392,6 - - 297,8 - -
and borrowings
Employee benefits 67,6 - - 76,9 - -
Provisions for risks and charges 48,4 - - 41,3 - -
Deferred tax liabilities 41,5 - - 53,1 - -
Other non-current liabilities 38,6 - - 52,6 - -
Total non-current liabilities 588,6 - - 521,7 - -
Banks and other financial payables 297,3 - - 513,8 - -
Provisions for risks and charges 64,6 - - 54,2 - -
Trade payables 590,5 2,9 0,5% 856,3 (3,8) (0,4%)
Tax payables 33,5 - - 36,2 - -
Other payables 119,9 0,1 0,1% 136,0 0,1 0,1%
Total current liabilities 1.105,8 1.596,4
Total liabilities 1.694,4 2.118,1
- -
Total equity and liabilities 2.095,2 2.651,0
Milan, 30 July 2009
on behalf of the Board of Directors
The Vice Chairman
Andrea Merloni
54

Attestation in respect of the Company’s condensed half-yearly consolidated
financial statements in accordance with art. 81-ter of Consob Regulation 11971
of 14 May 1999 and subsequent amendments and additions
The Chief Executive Officer Marco Milani and the Manager charged with preparing the
company’s financial reports Andrea Crenna of Indesit Company S.p.A, pursuant to the
provisions of Article 154-bis, clauses 3 and 4, of Legislative Decree no. 58 of 1998,
hereby attest to:
the adequacy with respect to the Company structure, and
the effective application,
of the administrative and accounting procedures applied in the preparation of the
Company’s condensed half-yearly consolidated financial statements as of 30 June
2009.
The undersigned moreover attest that the condensed half-yearly consolidated
financial statements:
a) have been prepared in accordance with International Financial Reporting
Standards, as endorsed by the European Union through Regulation (EC)
1606/2002 of the European Parliament and Counsel, dated 19 July 2002;
b) correspond to the results documented in the books, accounting and other
records;
c) provide a fair and correct representation of the financial conditions, results of
operations and cash flows of the Company and its consolidated subsidiaries as of
30 June 2009.
The interim management Report contains a reliable analysis of the reference to the
important events affecting the Company during the first six month of the current fiscal
year, including the impact of such events on the Company’s condensed half-yearly
consolidated financial statements and a description of the principal risks and
uncertainties for the remaining six months of the year along with a description of
material related party transactions.
30 July 2009
The Chief Executive Officer
Marco Milani
The manager charged with preparing
the company’s financial reports
Andrea Crenna

www.indesitcompany.com