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Q3 Interim report
at September 30th, 2014
Contents
3
4
4
5
5
6
8
14
15
16
17
17
18
25
(million euro)
Income statement key data of the quarter
Q3 2014
Q3 2013
Change
700.9
50.5
(25.7)
24.8
3.5%
4.7
0.04
0.04
718.9
54.7
(26.9)
27.8
3.9%
9.0
0.07
0.07
-2.5%
-7.7%
-4.5%
n.a
-0.3 p.p.
n.a
(0.03)
(0.03)
Change
1,885.2
134.5
(76.2)
58.3
3.1%
3.8
0.03
0.03
1,967.0
123.9
(81.4)
42.5
2.2%
(8.2)
(0.10)
(0.10)
-4.2%
8.5%
-6.3%
n.a.
0.9 p.p.
n.a.
0.13
0.13
221.4
1,069.6
523.4
488.4
529.5
108.4%
(10.0)
1,088.3
559.5
465.3
325.5
69.9%
245.2
1,075.0
551.9
475.7
553.3
116.3%
(139.9)
(64.1)
(27.1)
(204.1)
63.8
(112.3)
236.4
(69.1)
(183.9)
(92.3)
316.1
(296.9)
Revenue
Gross operating profit (EBITDA)
Depreciation and amortisation
Operating profit (EBIT)
Operating profit (EBIT) / Revenue
Profit for the period attributable to the owners of the Parent
Net basic earnings per share (euro)
Net diluted earnings per share (euro)
Income statement key data of the first nine months
Revenue
Gross operating profit (EBITDA)
Depreciation and amortisation
Operating profit (EBIT)
Operating profit (EBIT) / Revenue
Profit for the period attributable to the owners of the Parent
Net basic earnings per share (euro)
Net diluted earnings per share (euro)
Balance sheet key data
Net working capital
Non-current assets
Non-current liabilities
Equity attributable to the owners of the Parent
Net financial indebtedness
Net financial indebtedness / Equity
Cash Flow
Operating cash flow
Cash flow from investing activities
Cash flow from financing activities
Free Cash Flow
Introduction
The unaudited Interim report on operations at 30 September 2014, prepared
pursuant to para. 2 of Art. 154-ter of the Consolidated Finance Law, has been
prepared applying the accounting principles and measurement criteria required
by the International Financial Reporting Standards (IFRS).
The consolidation principles and measurement criteria are consistent with those
reported in the consolidated financial statements at 31 December 2013.
All the amounts presented below are stated in millions of euro, and the
comparisons made (in brackets) relate to information for the corresponding
period in the prior year. Percentages (margins and changes) are determined
with reference to amounts stated in thousands of euro. Totals are calculated
with reference to amounts stated in euro.
The Group reporting to Indesit Company S.p.A. is hereafter referred to as
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 2013 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
foreign currency financial statements.
Certain economic information presented below by the Group makes reference
to intermediate indicators of profitability, such as EBITDA (gross operating
profit).
Management believes that this indicator is an important parameter for
monitoring and measuring the Group's operating performance, since it is not
influenced by the effects of differing criteria for the determination of taxable
income, or by the related depreciation policies. Nevertheless, EBITDA is not
identified as an accounting measure in the IFRS endorsed by the European
Commission. Consequently, the criteria applied for determining this indicator
might not be consistent with those adopted by other groups or companies and,
accordingly, its value might not be comparable with that determined by them.
Market trends
The household appliances market (Industry Unit Shipments) recorded an
increase in Western Europe (2.0%) during the third quarter of 2014, compared
with the same period in 2013, and a decrease in Eastern Europe (of around
6.0%). Overall, demand in Greater Europe recorded a decline equal to 0.9%.
In the first nine months of 2014, the household appliances market, compared to
2013 saw a positive trend in Western Europe of around 1.5% and a contraction
of around 2.0% in Eastern Europe. Overall, demand in Greater Europe recorded
a trend in line with the previous year.
4.0%
4.0%
3.0%
2.0%
2.0%
0.0%
1.0%
0.0%
-2.0%
-1.0%
-4.0%
-2.0%
-6.0%
-3.0%
-8.0%
Western Europe
-4.0%
Eastern Europe
Total Europe
Currency
movements
During the third quarter of 2014, compared to the same period of 2013, the
Euro1 gained on the Turkish lira (+9.9%) and the Russian ruble (+10.6%), with
negative effects on the dynamics of sales and profitability. There was a
depreciation of the Euro against the Polish zloty (-1.7%) and British pound
(-7.1%).
Compared with the first nine months of 2013, the Euro2 gained on the Turkish
lira (+19.3%) and the Russian ruble (+15.2%); there was a depreciation of the
Euro against the the Polish zloty (-0.6%) and British pound (-4.7%).
Sept. 30th,
2014
Sept. 30th,
2013
change %
Effect on
revenue
Effect on
profitability
Q3
0.794
0.855
-7.1%
positive
positive
9 months
0.812
0.852
-4.7%
positive
positive
Closing
0.777
0.836
-7.1%
Q3
48.058
43.439
10.6%
negative
negative
9 months
48.015
41.672
15.2%
negative
negative
Closing
49.765
43.824
13.6%
Q3
4.175
4.248
-1.7%
positive
negative
9 months
4.175
4.201
-0.6%
positive
negative
Closing
4.178
4.229
-1.2%
Q3
2.867
2.609
9.9%
negative
negative
9 months
2.933
2.459
19.3%
negative
negative
Closing
2.878
2.751
4.6%
RUR
PLN
TRY
Determined with reference to the average monthly rates reported by the European
Central Bank.
2 Determined with reference to the average monthly rates reported by the European
Central Bank.
Consolidated
results
Revenue
Group revenue for the third quarter of 2014 was 700.9 million euro (718.9
million euro), down by 2.5% with respect to the third quarter in 2013. Revenue
for finished products in particular decreased by 3.5% as a result of the decline
in sales volumes and the negative trend in currencies (except for the British
pound).
The price/mix contributed positively, during the course of the quarter, in
balancing out this unfavourable trend.
Revenue from services was 10.2% higher.
1,000
6.0%
800
600
599.5
718.9
648.5
704.1
3.9%
2.4%
400
200
624.2
560.1
700.9
3.5%
3.2%
3.6%
2.0%
2.3%
0
Q1 2013
4.0%
0.0%
Q20.1%
2013
Q3 2013
Total revenue
Q4 2013
Q1 2014
Ebit % on revenue
Q2 2014
Q3 2014
(million euro)
Revenue from finished products
Q3 2014
642.1
change %
665.4
-3.5%
58.9
53.4
10.2%
700.9
718.9
-2.5%
Q3 2013
Group revenue for the first nine months of 2014 was 1,885.2 million euro
(1,967.0 million euro), down by 4.2% with respect to the same period in 2013.
The dynamics of the first nine months were in line with those of the quarter.
Revenue from services was 2.8% higher.
(million euro)
Revenue from finished products
Revenue from service operations
Total Revenue
Sept. 30th,
2014
Sept. 30th,
2013
1,720.6
164.5
1,885.2
1,806.9
160.0
1,967.0
change %
-4.8%
2.8%
-4.2%
Product cost
At constant exchange rates, product cost declined by 3.1% during the third
quarter of 2014, with respect to the comparative period in 2013, due to the
effect of manufacturing efficiencies and the purchase of raw materials/
components.
The quarterly percentage changes in product cost are analyzed in the following
table:
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Sourcing cost
0.7%
0.4%
-0.9%
-0.2%
-0.6%
-2.3%
-1.2%
Manufacturing cost
-2.0%
-0.8%
0.0%
0.5%
-1.8%
-1.4%
-1.9%
-1.3%
-0.4%
-0.9%
0.3%
-2.5%
-3.8%
-3.1%
At constant exchange rates, product cost was 3.1% lower in the first nine
months of 2014 than in the comparative period of 2013, as a result of savings in
production and supply costs.
Other operating costs
At current exchange rates, advertising and promotion expenses totaled 13.7
million euro in the third quarter of 2014 (13.0 million euro).
At current exchange rates, advertising and promotion expenses totaled 35.2
million euro in the first nine months of 2014 (31.6 million euro).
Advertising and Promo
incidence on revenue
3.0%
16.0
2.5%
15.9
14.0
13.9
12.0
13.0
12.6
2.1%
1.5%
10.0
1.8%
2.0%
1.8%
1.0%
8.0
0.5%
6.0
4.0
2.5%
2.0%
13.7
4.8
1.0%
0.8%
0.0%
5.5
2.0
0.0
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Operating profitability
EBIT, with reference both to the quarterly, reveals a slight reduction. The
reduction in sales volumes and the negative effect of the currencies was almost
completely offset by positive price/mix and savings in the cost of manufacturing
and sourcing.
In the first nine months of 2014, compared to 2013, the operating profitability of
the Group is due to the considerable performance of the price/mix, to the lesser
impact of the recorded non-recurring net expenses and to the savings in the
product cost despite the negative impact recorded by the sales volumes and
currencies.
Operating profit (EBIT), gross of non-recurring items, is analyzed by quarter in
the following chart:
10.0%
100
8.0%
80
6.0%
60
4.1%
4.0%
4.1%
3.3%
2.0%
4.2%
40
2.5%
2.0%
2.0%
20
29.6
12.3
13.0
Q12013
Q2 2013
29.0
13.9
20.8
29.6
0.0%
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Results by
geographical
segment
Consistent with para. 33 of IFRS 8, the following information is provided about
the geographical areas in which the Group operates:
Western Europe Area3;
Eastern Europe Area4;
International Area5.
Q3 2014
Total revenue
International
Costs not
allocated
(million euro)
Total
408.3
246.8
45.8
0.0
700.9
Operating Costs
(379.2)
(231.3)
(39.4)
(26.2)
(676.1)
Operating Profit
29.1
15.5
6.4
(26.2)
24.8
45.8
7%
246.8
35%
Revenue by Segment
Q3 2014
Western Europe
408.3
58%
Operating Profit
by Segment*
Q3 2014
6.4
13%
15.5
30%
Eastern Europe
29.1
57%
International
Western Europe
Eastern Europe
International
Q3 2013
Total revenue
International
Costs not
allocated
Total
(million euro)
382.0
299.4
37.5
0.0
718.9
Operating Costs
(364.0)
(279.4)
(33.1)
(14.6)
(691.1)
Operating Profit
17.9
20.0
4.4
(14.6)
27.8
Revenue by Segment
Q3 2013
37.5
5%
299.4
42%
Operating Profit
by Segment*
Q3 2013
4.4
10%
17.9
42%
382.0
53%
Western Europe
Western Europe
Eastern Europe
International
20.0
47%
Eastern Europe
International
This includes: Italy, the UK and Ireland, France, the Netherlands, Spain, Portugal,
Germany, Austria, Switzerland, Benelux and Scandinavia.
4 This includes: Russia and the Asian Republics, Belarus, Kazakhstan, Poland, Ukraine,
Moldova, Czech Republic, Hungary, Romania, Greece, the Baltic States, Caucasian
Republics, Slovak Republic, Turkey, Bulgaria and the Balkans.
5 This includes all other non-European markets.
Total revenue
International
Costs not
allocated
Total
(million euro)
1,126.9
631.5
126.8
0.0
1,885.2
Operating Costs
(1,049.4)
(600.1)
(108.4)
(68.9)
(1,826.9)
Operating Profit
77.5
31.4
18.4
(68.9)
58.3
126.8
7%
Revenue by Segment
Sept. 30th, 2014
631.5
33%
Western Europe
1,126.9
60%
Operating Profit
by Segment*
Sept. 30th, 2014
18.4
14%
31.4
25%
Eastern Europe
Western Europe
77.5
61%
Eastern Europe
International
International
Total revenue
International
Costs not
allocated
Total
(million euro)
1,095.8
756.6
114.6
0.0
1,967.0
Operating Costs
(1,046.3)
(717.3)
(101.2)
(59.7)
(1,924.4)
Operating Profit
49.4
39.4
13.0
(59.7)
42.5
Revenue by Segment
Sept. 30th, 2013
114.6
6%
756.6
38%
1,095.8
56%
49.4
49%
Western Europe
Eastern Europe
International
Operating Profit
by Segment*
Sept. 30th, 2013
13.0
13%
39.4
39%
Western Europe
Eastern Europe
International
The costs not allocated to segments principally comprise corporate costs and
the net restructuring charges.
Western Europe
Area
Q3 2014
Q3 2013
Change
Revenue
408.3
382.0
26.3
6.9
Operating Profit
29.1
17.9
11.1
62.1
Operating Margin %
7.1%
4.7%
2.4p.p.
Sept. 30th,
2014
Sept. 30th,
2013
Change
Change %
1,126.9
1,095.8
31.2
2.8
56.8
(million euro)
(million euro)
Revenue
Operating Profit
77.5
49.4
28.1
Operating Margin %
6.9%
4.5%
2.4p.p.
Change %
Revenue
480.0
408.3
407.2
400.0
382.0
358.3
355.4
Q1 2013
Q2 2013
365.4
353.2
320.0
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Revenue increased by 6.9% in the third quarter of 2014, with respect to the third
quarter of 2013, is due to an increase in sales volumes and the positive effect of
the British pound. Price/mix is resulted unfavourable.
The first nine months of 2014 followed the same trend of the quarter.
Profitability
7.5%
35.0
7.3%
25.0
6.0%
4.7%
5.0%
3.5%
4.0%
30.6
15.0
19.1
25.7
17.9
29.1
22.6
3.0%
2.0%
12.4
5.0
8.0%
7.0%
5.3%
20.0
10.0
7.1%
6.2%
30.0
1.0%
0.0%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Operating Profit
Operating Margin %
10
Eastern Europe
Area
Q3 2014
Q3 2013
Change
Change %
Revenue
246.8
299.4
(52.6)
(17.6)
Operating Profit
15.5
20.0
(4.4)
(21.9)
Operating Margin %
6.3%
6.7%
-0.4p.p.
Sept. 30th,
2014
Sept. 30th,
2013
Change
Change %
Revenue
631.5
756.6
(125.1)
(16.5)
Operating Profit
31.4
39.4
(7.9)
(20.1)
Operating Margin %
5.0%
5.2%
-0.2p.p.
(million euro)
(million euro)
Revenue
360.0
299.4
300.0
240.0
260.7
252.1
246.8
214.9
205.1
169.8
180.0
120.0
60.0
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Revenue from sales in the third quarter of 2014 decreased, compared to the
same period in 2013, by 17.6%, due to the significant negative trend in sales
volumes in Russia, and unfavourable exchange rates between the euro and the
Areas main currencies (Rouble, Turkish lira, Ukrainian hryvnia). These adverse
factors, however, were partially offset by the positive price/mix.
The trend of the first nine months of 2014 was in line with that for the quarter.
Profitability
25.0
8.0%
6.6%
6.7%
20.0
6.3%
5.2%
7.0%
6.0%
5.0%
15.0
4.0%
3.1%
20.0
10.0
3.0%
13.1
5.0
1.9%
6.3
5.0
1.0%
14.1
15.5
2.0%
1.0%
1.7
0.0%
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Operating Profit
Operating Margin %
The operating profit generated by the Area in the third quarter of 2014, with
respect to 2013, decreased of 21.9%. Particularly penalizing was the effect due
to the devaluation of principle currencies of the Area, combined with the
decrease in sales volumes.
The reduction in profitability was mitigated by the price/mix, by savings on
production and logistics costs.
The trend of the first nine months of 2014 was in line with that for the quarter.
11
International Area
(million euro)
Q3 2014
Q3 2013
Change
Change %
45.8
37.5
8.4
22.3
47.1
Revenue
Operating Profit
Operating Margin %
6.4
4.4
2.1
14.0%
11.8%
2.2p.p.
Sept. 30th,
2014
Sept. 30th,
2013
Change
Change %
Revenue
126.8
114.6
12.2
10.6
Operating Profit
18.4
13.0
5.3
41.0
14.5%
11.3%
3.3p.p.
(million euro)
Operating Margin %
Revenue
50.0
45.8
43.9
41.0
40.0
37.5
36.1
37.1
36.2
30.0
20.0
10.0
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
In the third quarter of 2014, revenues were up 22.3%, with respect to 2013, due
to a significant increase in sales volumes and in the price/mix, offset by the
negative impact of the currencies (in particular the Argentine Peso).
The first nine months of 2014 recorded, with respect to the quarter, a negative
price/mix.
Profitability
7.0
6.0
18.0%
15.5%
12.6%
11.8%
5.0
12.2%
14.0%
16.0%
14.0%
12.0%
9.7%
4.0
10.0%
3.0
2.0
14.1%
5.8
4.5
4,0
4.4
Q2 2013
Q3 2013
6.2
6.4
8.0%
6.0%
4.4
4.0%
1.0
2.0%
0.0%
Q1 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Operating Profit
Operating Margin %
The profitability of the Area, compared to the same period of 2013, increased
around 47.1%, due to higher sales volumes and the positive contributions
recorded with reference to the costs of goods sold (both in manufacturing in
both purchases). The contribution of the currencies was unfavorable, in
particular the Argentine Peso.
The trend of the first nine months of 2014 was in line with that for the quarter.
12
Non-recurring items
Net non-recurring charges amounted to 4.8 million euro during the third quarter
(net charges of 1.8 million euro).
Net non-recurring charges amounted to 6.1 million euro during the first nine
months of 2014 (net charges of 12.3 million euro). The reduction is due to the
costs for the consensual termination of executives involved in the reorganization
implemented in the second quarter of 2013.
Net profit
Net financial charges amounted to 13.6 million euro (12.4 million euro) during
the third quarter of 2014.
Net financial charges amounted to 43.4 million euro (35.6 million euro) during
the first nine months of 2014.
The income tax of the third quarter of 2014 was 6.5 million euro (6.4 million
euro).
In the first nine months of 2014 the income tax was 11.0 million euro (15.1
million euro).
The consolidated net profit for the third quarter of 2014 was 4.7 million euro
(profit of 9.0 million euro).
The consolidated net profit for the first nine months of 2014 was 3.8 million euro
(loss of 8.2 million euro).
1.6%
15.0
10.0
2.0%
1.3%
0.7%
0.7%
5.0
9.0
0.7%
1.0%
5,3
4.7
0.0%
Q2 2014
Q3 2014
11.4
4.1
Q1 2013
Q2 2013
Q3 2013
-5.0
-10.0
Q4 2013
Q1 2014
-6.2
-1.0%
-0.9%
-21.2
-2.0%
-15.0
-3.0%
-20.0
-3.3%
-25.0
-4.0%
Profit attributable to the owners of the company
13
Profit %
Cash flows6
(million euro)
EBITDA
Net financial expenses
Income tax expenses
Change in NWC
Change in Other Assets & Liabilities
Change in funds
Capex
Equity
Free cash flow
Sept. 30th,
2014
Dec. 31st,
2013
Sept. 30th,
2013
134.5
(43.4)
(11.0)
(224.8)
(15.8)
(2.4)
(49.8)
8.8
(204.1)
178.5
(51.3)
(13.7)
(55.5)
(6.4)
(7.7)
(88.8)
(24.4)
(69.1)
123.9
(35.6)
(15.1)
(306.4)
15.0
(6.1)
(48.7)
(23.9)
(296.9)
The Free Cash Flow absorbed was 204.1 million euro (296.9 million euro).
The improvement compared to the same period of 2013 is due to an efficient
management of net working capital, to the favorable trend of other operating
cash flows and to the other transaction in Equity (in particular to the handling of
the remeasurement reserve).
.
For operational reasons, the schedule of Free Cash Flow classifies certain
captions (translation reserve, remeasurement reserve, assets available for sale
and certain provisions) differently with respect to the consolidated statements
presented in the condensed Half year financial statements.
14
Balance sheet7
Sept. 30th,
2014
Dec. 31st,
2013
Sept. 30th,
2013
Trade receivables
578.4
426.5
602.4
Inventories
346.1
302.4
382.1
(million euro)
Trade payables
(703.1)
(738.9)
(739.3)
221.4
(10.0)
245.2
Non-current assets
932.7
954.2
948.9
(136.2)
(153.4)
(165.2)
1,017.9
790.7
1,028.9
529.5
325.5
553.3
488.4
465.3
475.7
0.0
0.0
0.0
1,017.9
790.7
1,028.9
Non-controlling interests
Equity and financial liabilities
The decrease in net working capital since 30 September 2013 reflects the
rationalization of inventory and the careful management of credit rating and
trade payable.
Certain trade receivables in the UK and Poland have been sold without
recourse. The amounts sold but not collected at 30 September 2014 total 29.9
million euro.
(% on revenue)
Sept. 30th,
2014
Dec. 31st,
2013
Sept. 30th,
2013
Trade receivables
22.3%
16.0%
21.9%
Inventories
13.4%
11.3%
13.9%
Trade payables
27.2%
27.7%
26.9%
8.6%
-0.4%
8.9%
The trade receivables and payables, inventories and equity reported in the above
reclassified statement of financial position are the same as the amounts reported in the
consolidated statement of financial position. Net financial indebtedness is analyzed in the
following table. Non-current assets and Other current assets and liabilities and noncurrent liabilities comprise the captions of the consolidated statement of financial
position that are not mentioned above or included as part of net financial indebtedness.
15
Financial position
Sept. 30th,
2014
(million euro)
Dec. 31st,
2013
Sept. 30th,
2013
16.7
17.9
18.8
99.7
330.8
182.6
(313.0)
(307.4)
(386.0)
(196.6)
41.3
(184.6)
(334.9)
(368.6)
(369.8)
(531.5)
(327.4)
(554.4)
2.0
1.9
1.1
(529.5)
(325.5)
(553.3)
(*) As defined in CONSOB Communication DEM /6064293 dated 28 July 2006, applying the CESR recommendations dated 10 February
2005
Net financial indebtedness amounts to 529.5 million euro (553.3 million euro).
Gross financial indebtedness totals 647.9 million euro (755.8 million euro), of
which 51.7% is classified as long term (48.9% at 30 September 2013).
The maturity profile of gross long-term financial payables is presented below:
Medium/long-term
financial payables
2015
2016
2017
2018
TOTAL
297.0
0.0
0.0
0.0
297.0
297.0
37.9
(0.0)
12.5
12.8
12.8
37.9
Total
334.9
0.0
12.5
12.8
309.8
334.9
EUROBOND
16
Significant events
during the third
quarter of 2014
and subsequent
to period end
On 14 October 2014, Whirlpool Italia Holdings s.r.l. completed the acquisition
following receipt of the authorizations by the competent competition authorities
(the latest of which occurred on 13 October 2014), except for the authorization
from Ukrainian competition authority, and the waiver on 14 October 2014 by
Fineldo and Whirlpool Italia Holdings s.r.l. of the condition precedent provided
for in the Contract with Fineldo relating to the authorization by the Ukrainian
competition authority.
On 14 October 2014, hereby gives notice that the legal requirements for the
launch, by Whirlpool Italia Holdings s.r.l., of a mandatory tender offer.
The Offer is for all the ordinary shares of Indesit Company S.p.A., a company
whose shares are listed on the Electronic Stock (MTA) organized and
managed by Borsa Italiana S.p.A., excluding the Indesit ordinary shares held,
either directly or indirectly, by Whirlpool Italia Holdings s.r.l. as of the date of this
Notice. In particular, as of the date of this Notice, Whirlpool Italia Holdings s.r.l.
directly holds 68,924,071 ordinary shares, representing 60.4% of Indesits share
capital, and the Issuer owns 11,008,260 treasury shares of the Issuer, equal to
9.6% of Indesits share capital.
On 15 October 2014, as a consequence of the resignation of Franca Carloni,
Andrea Merloni, Antonella Merloni, Aristide Merloni and Maria Paola Merloni
from their office, the Board has co-opted, in accordance with Italian legislation,
Irene Frances Bellew, Esther Fatima Berrozpe Galindo, Marc Robert Bitzer,
Kathryn Lynn Nelson and Antonio Segni as new directors of the Company.
17
Consolidated
financial statements
18
Consolidated Income Statement for the third quarter and the first nine months of
2014
(million euro)
Revenue
Q3 2014
Q3 2013
Sept. 30th,
2014
Sept. 30th,
2013
700.9
718.9
1,885.2
1,967.0
Cost of sales
(531.9)
(548.7)
(1,425.1)
(1,502.7)
(116.8)
(117.8)
(326.1)
(336.2)
(27.4)
(24.6)
(75.7)
(85.5)
Operating profit
24.8
27.8
58.3
42.5
Net interest
(7.5)
(7.2)
(20.3)
(19.9)
Exchange rate
(5.2)
(3.9)
(20.1)
(12.1)
(1.1)
(1.4)
(3.2)
(3.7)
0.1
0.1
0.0
11.2
15.4
14.8
7.0
Income taxes
(6.5)
(6.4)
(11.0)
(15.1)
4.7
9.0
3.8
(8.2)
0.0
(0.0)
0.0
(0.0)
4.7
9.0
3.8
(8.2)
0.04
0.07
0.03
(0.10)
0.04
0.07
0.03
(0.10)
19
3.8
(8.2)
20.4
(54.6)
11.3
(3.7)
Tax effect
(2.4)
0.5
8.9
(3.2)
11.5
(51.4)
(0.9)
0.4
(1.4)
0.6
0.5
(0.2)
(0.9)
0.4
19.4
(54.2)
23.2
(62.3)
(0.0)
0.0
23.2
(62.3)
Tax effect
20
579.1
615.4
613.7
257.3
240.1
239.5
96.3
98.7
95.8
Investments in associates
0.5
0.5
0.5
2.2
2.3
1.5
132.2
129.5
123.0
2.0
1.9
1.1
1,069.6
1,088.3
1,075.0
Inventories
346.1
302.4
382.1
Trade receivables
578.4
426.5
602.4
16.7
17.9
18.8
Tax receivables
17.2
14.1
12.8
82.4
63.2
66.5
99.7
330.8
182.6
Assets
2.1
2.4
1,140.4
1,157.0
1,267.6
Total assets
2,210.0
2,245.4
2,342.6
Equity
Share capital
Reserves
Retained earnings
Profit attributable to owners of the Parent
92.9
92.8
92.8
(171.5)
(190.9)
(167.9)
563.3
560.2
558.9
3.8
3.2
(8.2)
488.4
465.3
475.7
0.0
0.0
0.0
488.4
465.3
475.7
334.9
368.6
369.8
Employee benefits
77.4
81.0
67.2
61.2
56.7
57.0
32.9
30.5
33.5
17.0
22.6
24.4
523.4
559.5
551.9
313.0
307.4
386.0
48.1
52.3
53.1
703.1
738.9
739.3
23.3
25.3
26.7
110.7
96.8
109.8
1,198.2
1,220.6
1,315.0
Total liabilities
1,721.6
1,780.1
1,866.9
2,210.0
2,245.4
2,342.6
21
Consolidated Cash Flow Statement for the period ended 30 September 2014
(million euro)
3.8
3.2
(8.2)
Income taxes
11.0
13.7
15.1
76.2
110.3
81.4
39.5
10.7
17.8
(151.9)
38.8
(137.1)
(43.7)
29.4
(50.3)
(21.5)
(81.8)
(61.3)
(8.5)
(26.9)
(15.0)
Taxes paid
(19.4)
(18.4)
(14.5)
Interest paid
(38.1)
(27.7)
(23.3)
12.6
12.5
11.5
(139.9)
63.8
(183.9)
(46.8)
(82.7)
(74.3)
Interest received
Cash flows from/(used in) operating activities
0.2
1.4
1.5
(17.6)
(31.0)
(19.4)
0.0
0.0
0.0
(64.1)
(112.3)
(92.3)
(0.0)
(20.6)
(20.6)
(12.7)
(14.1)
(13.9)
(14.4)
271.1
350.6
(27.1)
236.4
316.1
(231.1)
188.0
39.8
330.8
142.8
142.8
99.7
330.8
182.6
(231.1)
188.0
39.8
22
Closing Balances
Total effects of
transactions with owners
of the Parent
Reclassification
Other movements
Dividends paid
Income (expenses)
recognised directly in
equity
(million euro)
Opening Balances
(restated)
Statement of Changes in Consolidated Equity for the period ended 30 September 2014
92.8
35.9
22.7
(170.5)
(89.9)
10.8
560.2
3.2
465.3
0.0
465.3
11.5
(0.9)
8.9
19.4
19.4
3.8
3.8
0.0
3.8
11.5
(0.9)
8.9
3.8
23.2
0.0
23.2
(0.0)
(0.0)
(0.0)
0.0
0.0
0.0
3.2
(3.2)
-
92.8
35.9
22.7
(97.7)
(79.1)
15.0
506.3
61.7
556.9
0.0
557.0
(51.4)
0.4
(3.2)
(54.2)
(54.2)
(8.2)
(8.2)
(0.0)
(8.2)
(51.4)
0.4
(3.2)
(8.2)
(62.3)
(0.0)
(62.3)
(20.6)
(20.6)
(20.6)
(12.4)
1.8
12.4
1.8
1.8
61.7
(61.7)
-
0.0
3.2
(3.2)
0.0
0.0
92.9
35.9
22.7
(159.0)
(90.8)
19.7
563.3
3.8
488.4
0.0
488.4
(12.4)
1.8
53.5
(61.7)
(18.9)
(18.9)
92.8
35.9
22.7
(161.5)
(78.6)
13.6
558.9
(8.2)
475.7
0.0
475.7
23
Consolidated Income Statement for the third quarter and the first nine months of
2014, classified by nature of expenditure
(million euro)
Revenue
Q3 2014
Q3 2013
Sept. 30th,
2014
Sept. 30th,
2013
700.9
718.9
1,885.2
1,967.0
(25.5)
(19.3)
52.6
68.0
(385.4)
(402.6)
(1,125.5)
(1,196.9)
Services
(128.0)
(129.5)
(355.8)
(359.4)
Payroll costs
(106.2)
(106.0)
(313.8)
(324.6)
(25.7)
(26.9)
(76.2)
(81.4)
(5.4)
(6.8)
(8.2)
(30.0)
Operating profit
24.8
27.8
58.3
42.5
Net interest
(7.5)
(7.2)
(20.3)
(19.9)
Exchange rate
(5.2)
(3.9)
(20.1)
(12.1)
(1.1)
(1.4)
(3.2)
(3.7)
0.1
0.1
0.0
11.2
15.4
14.8
7.0
Income taxes
(6.5)
4.7
(6.4)
9.0
(11.0)
3.8
(15.1)
(8.2)
0.0
(0.0)
0.0
(0.0)
4.7
9.0
3.8
(8.2)
24
Marco Milani
Luigi Abete
Paolo Amato
Irene Frances Bellew
Marc Robert Bitzer
Guido Corbetta
Esther Fatima Berrozpe Galindo
Kathryn Lynn Nelson
Antonio Segni
Libero Milone
Paolo Monferino
Graziano Visentin
Rosalba Casiraghi
Francesco Di Carlo
Paola Spoldi
Guido Cesarini
Gianpaolo Davide Rossetti
Indipendent Auditors
Reconta Ernst & Young S.p.A.
Manager charged with preparing the company's financial reports
Stefano Cavacini
*******
The Executive responsible for financial reporting, Stefano Cavacini, confirms pursuant to para. 2 of art. 154 bis of
Decree 58/1998 that the accounting information contained in this Interim report on operations agrees with the
underlying documents, accounting records and entries.
25
www.indesitcompany.com