Annual Report 2012 - Indesit

Separate financial statements at 31 December 2012 – Notes
7.6 Inventories
Inventories are analyzed as follows:
(million euro) 31.12.2012 31.12.2011
Raw materials 30.8 35.4
Obsolescence provision (1.0) (0.8)
Total raw materials 29.8 34.6
Finished and semi-finished products 54.3 64.2
Obsolescence provision (6.1) (4.8)
Total finished and semi-finished products 48.3 59.4
Spare parts 13.8 14.8
Obsolescence provision (1.6) (1.1)
Total spare parts 12.2 13.7
Total inventories 90.3 107.6
The provision for obsolescence totals 8.7 million euro (6.7 million euro) and the net increase during the
year was 1.9 million euro (1.6 million euro).
7.7 Trade receivables
Trade receivables comprise amounts due from customers as a result of commercial transactions
and the provision of services, 418.3 million euro (406.0 million euro), stated net of the allowance for
doubtful accounts of 15.2 million euro (17.3 million euro).
As part of its policy to diversify the sources of finance, the Indesit Group has devised a securitization
program for the Parent and Indesit Company France S.A.
The securitization involves the without-recourse sale of trade receivables, on a revolving basis, by the
Parent and by Indesit Company France S.A. The receivables are acquired by vehicle companies, which
are financed by the issue of securities whose repayment is guaranteed by the cash flows generated
by the portfolio of receivables sold (asset-backed securities). There are two classes of asset-backed
security: the senior securities are placed in the market and subscribed for by financial investors; the
junior securities, whose repayment is subordinated to that of the senior securities, are taken up by
Indesit Company International Business S.A., a subsidiary.
Control over the receivables is not transferred in full to the vehicle companies (the vehicle company
that acquires the receivables of Indesit Company S.p.A. is Olympia Finance S.r.l.), since their use of
them is restricted by the fact that they represent collateral for the redemption of the asset-backed
securities issued to finance the securitization program. Accordingly, the trade receivables sold are not
derecognized as an asset and, at 31 December 2012, they total 64.4 million euro (76.9 million euro).
Other financial payables include the liability to Olympia Finance S.r.l., 89.5 million euro (102.9 million
euro). The financial liability at 31 December 2012 exceeds the amount of receivables sold but not
derecognized, since it includes about 25.1 million euro (26 million euro) received almost entirely from
customers of Indesit Company S.p.A. but not yet paid over to Olympia Finance S.r.l. This amount was
paid to Olympia Finance S.r.l. in early 2013.
162