Separate Financial Statements 2007 - Indesit

Separate Financial Statements as of 31 December 2007
Percentages (margins and changes) are determined with reference to amounts stated in
thousands of euro. Indesit Company S.p.A. is referred to by its full name or simply as the
Company, while the Group reporting to it is referred to as Indesit Company or simply the
Group. When the commentary relates to subsidiaries, their names and legal form are stated in
full.
Summary of results
Indesit Company S.p.A. plays a dual role as an operating company that supplies goods and
services to its local market (Italy) and other Group companies, and as an investment holding
company. Accordingly, the results of the Company do not reflect the economic performance of
the Group as a whole, or the performance of the market (Italy) in which it operates.
The Company's principal economic indicators are reported in the following table.
2007 2006 Changes
million
euro
% million
euro
% million
euro
%
Revenue 1.634,0 100,0% 1.602,0 100,0% 32,1 2,0%
Gross operating margin 52,3 3,2% 63,8 4,0% (11,5) (18,0%)
Operating profit (10,4) (0,6%) (1,5) (0,1%) (9,0) 608,9%
Profit before taxation 63,2 3,9% 65,1 4,1% (2,0) (3,0%)
Profit 55,8 3,4% 54,3 3,4% 1,5 2,8%
Sales rose by 2.0% in 2007 as a whole. In particular, revenue from third parties rose by 6.9%,
while intercompany sales declined by 1.0%.
The gross operating profit (EBITDA) 2 amounted to 52.3 million euro (63.8 million euro),
representing 3.2% (4.0%) of revenue. Net non-recurring income amounted to 1.6 million euro
(net charges of 18.7 million euro). In particular, income from the adjustment of severance
indemnities following the reform of supplementary pensions in Italy was offset by the cost of
restructuring work performed in accordance with the business plan. EBITDA before nonrecurring
income and charges was 50.7 million euro (82.5 million euro), representing 3.1%
(5.1%) of revenue. The reduction in EBITDA was essentially due to the higher cost of raw
materials, as well as to the increased provisions for product warranties and doubtful accounts.
The operating loss (EBIT) was -10.4 million euro (-1.5 million euro), representing –0.6% of
revenue (-0.1%). The reasons for the change in EBIT entirely reflect those given in relation to
the change in EBITDA.
Net financial income was 73.6 million euro (66.6 million euro). This change reflects an increase
in dividends received, 127.6 million euro (97.8 million euro), as partially offset by higher writedowns
in relation to investments, 21.6 million euro (5.8 million euro).
Profit before taxation (PBT) was 63.2 million euro (65.1 million euro), representing 3.9%
(4.1%) of revenue. The tax charge was 7.4 million euro (10.8 million euro) and, accordingly,
profit amounted to 55.8 million euro (54.3 million euro).
2 EBITDA: operating profit reported in the income statement, stated gross of the depreciation and amortization
reported in note 6.6.
3