2009 1st Half Report - Indesit

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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
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2009 1st Half Report - Indesit

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