2014 Q1 Highlights Vs.

2013
Q1 14

Q1 13

Sales (M )

560

600

EBIT adj.

14

12

% on sales

2.5%

2.0%

14

14

% on sales

2.4%

2.3%

Net Debt
March (M )

499

506

EBIT

as of

31st

-6.6 %(*)

+0.4p.p.

+0.1p.p.

(*) At constant Exchange Rates : -2.5%

Sales:
A positive contribution from price-mix driven by price increases in main markets
Strong currency headwinds (Rouble and Turkish Lira mainly) and an adverse comparison
with Q1 13 in Russia heavily affected top line

Profitability:
Cost reduction activities on products, SG&A optimization and positive price-mix delivered
better than Q1 13 results

Net Debt: significantly lower cash absorption in Q1 14 vs same period previous year,
resulted in lower net debt

07/05/2014 2014 Q1 Results

2014 Q1 Sales variance trend Vs. 2013

Total MDA

Jan

Volume

Feb

Mar

Q1

-4.4%

-4.6%

2.9%

1.7%

-6.4%

-4.6%

-7.8%

-7.5%

-0.6%
-9.9%

Price/Mix

0.2%

1.9%

-2.9%

-4.3%

Ex. rate

Total

-3.0%

-12.7%

07/05/2014 2014 Q1 Results

2014 Q1 Industry shipments Vs. 2013

Western

+2.3%

Europe

Eastern

Europe

+1.1%

Greater
Europe

+1.9%

Western Europe: UK slightly negative. Italy, Spain & Portugal positive

Eastern Europe: Turkey & Ukraine heavily negative; Russia positive on

imports

07/05/2014 2014 Q1 Results

2014 Q1 EBIT Adj. Key Drivers Vs. 2013

Positive

Product cost

16

SG&A

Price/Mix

Exchange rate

-16

Volume

-10

Negative

07/05/2014 2014 Q1 Results

2014 Q1 Product cost Vs. 2013

Manufacturing

Sourcing

Total

-3.2%

-2.2

-2.5%

Manufacturing: positive contribution from design change and factory

efficiencies, despite a negative volume effect

Sourcing: savings from cost of components, metals and plastics

Note: Constant Exchange Rates

07/05/2014 2014 Q1 Results

2014 Q1 Western Europe

Q1 14

Q1 13

Sales (M )

353

358

Profitability

26

19

7.3%

5.3%

% on sales

-1.4%

Italy: improving both in sales and profitability, also assisted by positive market demand
trend

France: still lagging behind on sales but performance recovery in line with expectations

UK: Sales in line and growing profitability also assisted by positive contribution of the
exchange rate

Overall: strong profitability improvements in all main markets. Sales still affected by
France

07/05/2014 2014 Q1 Results

2014 Q1 Eastern Europe

Q1 14

Q1 13

Sales (M )

170

205

Profitability

1.0%

3.1%

% on sales

-17.2%

Turkey: sales and profitability heavily affected by negative exchange rates,

notwithstanding positive price-mix contribution

Poland: continues to grow versus previous year both in sales and margin

Russia: a positive contribution from price-mix in an unstable market situation with very
negative exchange rate

Overall: heavily negative currencies and fragile market situations in Russia & Ukraine
drove down results, partially counterbalanced by price/mix enhancements

07/05/2014 2014 Q1 Results

2014 Q1 International
Q1 14

Q1 13

Sales (M )

37

36

Profitability

15.5%

12.6%

% on sales

+2.5%

Top line growth positively driven by Asian markets

Profitability continues to improve despite a strong negative currency effect in

Argentina

07/05/2014 2014 Q1 Results

2014 Q1 Sales by Product

Q1 14

Q1 13

Cooking (M )

111

114

-3.0%

Refrigeration(M )

139

159

-12.5%

Laundry(M )

207

225

-8.0%

Dishwashing (M )

48

47

+1.1%

SDA (M )

n.a.

Services (M )

53

54

-3.1%

Vs. 2013

Market demand: Refrigeration negative, Cooking, Dishwashing & Laundry

positive

07/05/2014 2014 Q1 Results

10

2014 Q1 Consolidated income statement

Q1 2014
Net Sales (M )

07/05/2014 2014 Q1 Results

Q1 2013

560

600

-6.6%

EBITDA (M )
% on sales

39
6.9%

41
6.9%

+0.0 pp

EBIT (M )
% on sales

14
2.4%

14
2.3%

+0.1 pp

PBT (M )
% on sales

(5)
-0.8%

9
1.5%

n.a.

Net Group Income (M )

% on sales

(6)
-1.1%

4
0.7%

n.a.

13

2014 Q1 Net Financial Expenses

Q1 13

Q1 14

(4.7)

(6.4)

1.1

(10.6)

Bank Fees

(1.1)

(1.1)

Total Net Financial Expenses

(4.7)

(18.1)

Net Interests Expenses

Exchange Rate

Exchange Rate

1.1

-6.5

Q1 13

07/05/2014 2014 Q1 Results

Ukrainian
Hryvnia

-2.0
British
Pound

-1.8
Russian
Rubble

-1.5

+0.2

-10.6

Turkish
Lira

Polish
Zloty

Q1 14

14

2014 Consolidated Balance Sheet as of 31st March

2014
Non current
operating assets

2013

(M )

1,114

Net Debt

(M )

533

18.5%

18.6%

338

393

12.9%

13.7%

(664)

(729)

% on 12m rolling sales

25.2%

25.4%

Net working capital

% on 12m rolling sales

160

197

6.1%

6.9%

(273)

(250)

Inventories
% on 12m rolling sales

Trade payables

499

506

448

556

947

1,061

(M )

486

% on 12m rolling sales

2013

(M )

1,059

Trade receivables

2014

Total
Shareholders
equity

(M )

Other assets liabilities

(M )

Net invested Capital

07/05/2014 2014 Q1 Results

(M )

947

1,061

Total Sources

15

2014 Q1 Consolidated Cash Flow

(M )

2014

2013

39

41

Net financial expenses

(18)

(5)

Income tax expenses

(2)

(5)

Change in NWC

(171)

(246)

Change in Other
Assets & Liabilities

(11)

(18)

Change in Funds

(1)

(6)

Capex

(11)

(15)

Equity

(174)

(249)

EBITDA

Free cash flow

07/05/2014 2014 Q1 Results

16

2014 Update on Key Business Action

Key commercial priorities
Additional price increases already executed in Q1 in Russia, Ukraine and Turkey; further
actions already planned for following months
Business turnaround in France in line with expectations; Italy improving both in sales and
profitability
Substantial new product launches
MDA: New Indesit (Innex) & Hotpoint (Aqualtis) washer dryers launched in Q1;

Launches of new Hotpoint range in BI Cooking, Indesit & Hotpoint slim dishwashers
and New Hotpoint Dialogic technology planned in 2H 14
SDA: Iron range completion ongoing. Food preparation and Vacuum range extension
planned in Q2/Q3 14
Industrial plan roll out in line with planned activities
Improvement of product cost and SG&A already in Q1, in line with expectations

Promising signs for the rest of the year are visible in market demand indicators,
especially in West European countries, such as Italy, which lend weight to forecasts
of improvements in 2014 compared to the previous year

07/05/2014 2014 Q1 Results

17

Disclaimer
This presentation contains forward-looking statements regarding future results of Indesit Company
SpA based on intents, beliefs or current expectations. Any of these statements made by or on behalf
of Indesit Company SpA speak only as of the date they are made. Information provided herein have to
be linked to the oral comments made during presentation to analysts.
The forward-looking statements contain no guarantees of future performance and involve risks and
uncertainties that could significantly affect expected results and actual results may materially differ
from those projected or implied in the forward-looking statements as a result of various factors.
Consequently, analysts and investors are warned not to place undue reliance on those statements.
No obligation is undertaken by Indesit Company SpA to update said statements in order to reflect any
expectations with regard thereto or any changes in events, conditions or circumstances on which any
such statement is based.
This presentation does not constitute an offer, or invitation to purchase or subscribe any securities and
no part of it shall form the basis of or be relied upon in connection with any commitment whatsoever.
The manager charged with preparing the companys financial reports, Stefano Cavacini, confirms,
pursuant to paragraph 2 of art. 154-bis of the Consolidated Finance Law, that the accounting
information included in this press release agrees with the underlying documentation, records and
accounting entries.

07/05/2014 2014 Q1 Results

18