The process focused on the redistribution of production is consistent with the three-year plan. Work has continued on the construction of two factories (washing machines and dishwashers) in Radomsko, Poland and in August 2007 at the end of the consultation period with the parties concerned, the forthcoming closure of Blythe Bridge factory in the UK has been made official. Action since 2005 to contain selling and distribution expenses and general and administrative expenses has ensured their essential stability as a percentage of revenue. Overall, the steps taken to contain costs, especially via continuation of the process to redistribute production, have more than offset the effect of higher raw material prices and helped to improve the gross profitability of the Group. Gross operating profit (EBITDA) amounted to 159.6 million euro in the first half of 2007 (144.6 million euro in the first half of 2006), representing 10.2% of revenue (9.9% in the first half of 2006). Capital investment by the Group during the first half of 2007 amounted to 48 million euro, of which 39 million euro was allocated to property, plant and equipment and 9 million euro to intangible assets. The largest portion of the investment recorded during the period was dedicated to the redistribution of production (41%) while, as usual, a significant part (36%) was spent on the development of new products. The policy of greater focus on capital expenditure, adopted from 2005, has continued. This is designed to contain the level of net capital invested while, at the same time, guaranteeing the resources needed for the development of strategic initiatives. The improved management of capital expenditure has also lowered the depreciation and amortization charge to 4.6% of revenue in the first half of 2007, compared with 4.9% in the first half of 2006. The action taken has also helped to improve the net profitability of the Group; operating profit (EBIT) amounted to 72.6 million euro in the first half of 2007 (52.4 million euro in the first half of 2006), representing 4.6% of revenue (3.6% in the first half of 2006). Focus on the management of net working capital has also continued, similar to the approach taken in relation to capital expenditure; as a percentage of revenue over the past 12 months, the level of net working capital has decreased to 7.5% from 8.2% as of 30 June 2006. The results of financial management were positive overall. Despite the higher volume of production and sales, net borrowing by the Group has fallen by 127.9 million euro since 30 June 2006.
Sales of household appliances in Europe
The volume of sales of white goods to retailers during the first half of 2007 rose by 1.5% in Western Europe and 9.5% in Eastern Europe(), while there was 6.9% growth in the CIS.

4. Principal accounting policies
The principal accounting policies adopted for the preparation of the interim consolidated financial statements are described below. They are consistent with those adopted for the consolidated financial statements as of 31 December 2006. Basis of preparation The presentation currency of the consolidated figures is the euro, and the balances are stated in millions of euro (except where stated otherwise). The interim consolidated financial statements are prepared on an historical cost basis, except with regard to derivative financial instruments, financial assets held for sale and financial instruments classified as available for sale, which are measured at their fair value. The accounting policies are applied on a consistent basis by all Group companies. There are no financial assets held to maturity. Financial transactions are recognised with reference to the trade date. The accounting policies adopted have been applied on a consistent basis to all the comparative financial information. Accounting estimates 18
The preparation of interim consolidated financial statements involves making assumptions and estimates that affect the amount of assets and liabilities and the related disclosure, as well as the amount of contingent assets and liabilities at the balance sheet date. These estimates are used to measure the property, plant and equipment and intangible assets subject to impairment, as well as to recognise provisions for doubtful accounts, inventory obsolescence, depreciation and amortisation and the impairment of assets, employee benefits, taxation, and risks and charges. The estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Estimates and assumptions are reviewed regularly and, if later estimates differ from those made initially, the effects are immediately reflected in the income statement. If the changes in estimate relate to both the current and future periods, their effects are reflected in the income statements for the periods concerned. The principal estimates made for the preparation of these interim consolidated financial statements are consistent with those made when preparing the financial statements for the prior year. At the reporting date, there are no significant estimates regarding the unforeseeable outcome of future events and other causes of uncertainty that might result in significant adjustments being made to the value of assets and liabilities in the coming 12 months. Basis of consolidation Subsidiaries Subsidiaries are entities over which Indesit Company S.p.A. exercises control by virtue of the power to govern, directly or indirectly, their financial and operating policies and to obtain benefits from their activities. In general, companies in which Indesit Company S.p.A. holds more than 50% of the voting rights, considering any potential voting rights that may be exercised at the time, are deemed to be subsidiaries. The financial statements of subsidiaries are consolidated on a line-by-line basis from the time that control commences until the date on which control ceases. Significant transactions between Group companies are eliminated in full. Unrealised gains and losses on transactions with subsidiaries are eliminated in full. The portions of equity and profit/loss attributable to minority interests are determined with reference to their voting rights, without considering any potential voting rights. Any surplus arising on the elimination of investments against the carrying amount of the related equity at the time of initial consolidation is allocated as an increase in the carrying amount of the assets, liabilities and contingent liabilities concerned; any residual amounts are classified as goodwill. Any difference between the price paid and the investment acquired from minority investors in companies already consolidated on a line-by-line basis are takes to the income statement, if attributable to an acquisition made on favourable terms. The balance sheet date of all Group companies is 31 December and the reporting date for all internal interim financial statements prepared for consolidation purposes is 30 June. Dormant subsidiaries and those with an insignificant volume of business are not consolidated on a line-by-line basis, since they do not have a material effect on the Balance Sheet, the financial position or the results of operations of the Group. The list of companies consolidated on a line-by-line basis is presented in the Notes to the interim consolidated financial statements. Associates Associates are those entities over which Indesit Company S.p.A. exercises significant influence, but does not control their financial and operating policies or obtain benefits from their activities. In general, companies in which Indesit Company S.p.A. holds directly or indirectly between 20% and 50% of the share capital or voting rights, considering any potential voting rights that may be exercised or converted, are deemed to be associates. 19

Associates are measured using the equity method from the time that significant influence commences over their operations until the date on which such influence ceases. If the Group's share of losses exceeds the carrying amount share of the investment, the Group's carrying amount is reduced to nil and further losses are recognised in a specific provision, to the extent that Indesit Company has an obligation to cover such losses or to make payments on behalf of the associate. Unrealised gains and losses on transactions with associates are eliminated in proportion to the investment held. Investments in other companies Investments in other companies in which, in general, the group holds less than 20% of the share capital or voting rights are initially measured at cost and subsequently adjusted to fair value through profit or loss. Where fair value cannot be reliably determined, these investments are measured at cost as adjusted to reflect any impairment losses. Dividends are recognised as financial income from investments when the right to collect them is established, which generally coincides with the shareholders' resolution. Treatment of foreign currency transactions Foreign currency transactions All transactions are recorded in the functional currency of the primary economic environment in which each Group company operates. Transactions not carried out in the functional currency of Group companies are translated using the exchange rates ruling at the time of the related transactions. Monetary assets and liabilities are translated using the exchange rates ruling at the balance sheet date and any exchange rate differences are recognised in the income statement. Non-monetary assets and liabilities recorded at historical cost in foreign currencies are translated using the historical rates applying at the time of the related transactions. Nonmonetary assets and liabilities measured at fair value in foreign currencies are translated using the exchange rates ruling at the time that their fair value was determined. Translation of financial statements The financial statements of companies whose functional currency differs from that used to prepare the consolidated financial statements (Euro) and which do not operate in hyperinflationary economies, are translated as follows: a) assets and liabilities, including the goodwill and fair-value adjustments arising on consolidation, are translated using the exchange rates ruling at the balance sheet date; b) revenues and expenses are translated using the monthly average exchange rate for the period, which is deemed to approximate the exchange rates ruling at the dates when the individual transactions took place; c) translation differences are recognised in a specific equity reserve. On disposal of an economic entity that gave rise to translation differences, the related cumulative translation differences are reclassified from the specific equity reserve to the income statement. The cumulative translation differences were reclassified to other reserves on the first-time adoption of IFRS, accordingly the gains and losses deriving from future disposals will only include the translation differences arising from 1 January 2004 onwards. The financial statements of foreign operations in hyper-inflationary economies whose functional currency differs from that used to prepare the consolidated financial statements (Euro) are translated using the exchange rates ruling at the balance sheet date, after restating the non-monetary balances in the balance sheet and the income statement using a general price index. Net investments in foreign operations 20

The exchange differences arising from the translation of net investments in functional currencies other than the euro, generally comprising intercompany loans, are taken to the translation reserve. Such differences are released to the income statement upon disposal. Derivative financial instruments If the conditions established in IAS 39 regarding the formal designation of derivative financial instruments as hedges are met and these instruments are shown to be highly effective, both ex ante when the transaction is arranged and ex post during subsequent accounting periods, then they are recorded on a hedge accounting basis, as described below. Fair Value Hedges (hedges of assets and liabilities) If a derivative financial instrument is designated to hedge the risk of changes in the fair value of a recognised asset or liability (the underlying), the gain or loss from subsequent fair-value adjustments to the hedging instrument is recognised in the income statement together with the gain or loss deriving from the measurement of the related underlying. Cash Flow Hedges If a derivative financial instrument is designated to hedge the risk of variability in the cash flows of a recognised asset or liability or a highly probable forecasted transaction, the effective part of gains or losses on such financial instrument is recognised in the cash flow hedging reserve, within equity, while the ineffective portion (if any) is taken to the income statement. If the hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or liability, the cash flow hedging reserve is removed from equity and included in the initial cost of such non-financial asset or liability. If the hedge of a forecast transaction subsequently involves recognition of a financial asset or liability, the cash flow hedging reserve is released to the income statement in the period when the acquired asset or recognised liability has an effect on the income statement. In other cases, the cash flow hedging reserve is recognised to the income statement in a manner consistent with the hedged transaction i.e. when its economic effects are recognised. If a hedging instrument expires, is sold or is terminated early with respect to the timing of the hedged transaction and the latter is no longer expected to take place, the related cash flow hedging reserve is released immediately to the income statement. If a hedging instrument expires, is sold or is terminated early with respect to the timing of the hedged forecast transaction, but the latter is still expected to occur, the cumulative gain or loss remains in equity until the forecast transaction takes place and treated on the basis described above. The company has adopted the amendment to IAS 39 issued by the IASB in April 2005 which allows forecast intragroup transactions to qualify as cash flow hedges, if the interim consolidated financial statements are exposed to foreign currency risk. Hedge of a net investment in a foreign operation If a derivative financial instrument is designated to hedge a net investment in a foreign operation, the gains or losses deriving from the related measurement of fair value are recognised directly in equity, to the extent that the hedge is deemed to be effective, while the ineffective portion (if any) is recognised in the income statement. If, on the other hand, financial instruments do not meet the requirements for the application of hedge accounting, they are stated at fair value and the related effects are recognised directly in the income statement.

Property, plant and equipment Owned assets Property, plant and equipment are stated at purchase cost or, if self-constructed, at production cost, comprising the cost of materials, labour and a reasonable portion of overheads and related charges, less accumulated depreciation and impairment losses determined on the basis described below. If necessary and significant, the cost of property, plant and equipment includes an initial estimate of dismantling and removal costs. Ordinary maintenance expenses are charged to the income statement, while the costs of replacing certain parts of property, plant and equipment and extraordinary maintenance costs are capitalised when it is probable that they will generate measurable economic benefits in the future. Finance leases Property, plant and equipment held under finance leases, in relation to which Indesit Company has assumed substantially all the risks and rewards incidental to ownership, are recognised at fair value at inception of the lease or, if lower, at the present value of the minimum lease payments, depreciated over their estimated useful lives and adjusted for any impairment loss determined on the basis described below. The liability to the lessor is classified among financial payables in the balance sheet. Depreciation Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives. Significant parts of plant and machinery with different useful lives are depreciated separately. Useful lives are monitored on a constant basis, having regard for changes in the intensity with which these assets are used. Any changes in the depreciation schedules are applied on a prospective basis. The residual value is verified with reference to the estimated present value of expected future cash flows and adjusted, where necessary, every time events suggest that the carrying amount of property, plant and equipment may be impaired, or when there is a marked decrease in their market value, significant technological changes or evidence of significant obsolescence. The impairment loss is reversed if the reasons for recognition cease to apply. Land, whether or not used for the construction of civil or industrial buildings, is not depreciated since it is deemed to have an indefinite useful life. The useful lives of property, plant and equipment are grouped into the following categories:
Category Buildings and temporary constructions Plant and machinery Industrial and commercial equipment Other assets: - vehicles and internal transport - furniture, IT and office machines Useful lives from 10 to 33 years from 5 to 20 years from 3 to 20 years from 3 to 6 years from 3 to 10 years
Intangible assets Intangible assets are stated at cost, determined on the basis described for property, plant and equipment, when it is likely that the use of such assets will generate economic benefits and their cost can be determined reliably. Intangible assets with a finite useful life are amortised and stated net of the related accumulated amortisation, calculated on a straight-line basis over their estimated useful lives, and any impairment loss over the period during which they are expected to generate economic benefits. Intangible assets with an indefinite useful life, comprising 22

certain brands and goodwill, are not amortised but are tested for impairment annually, or more frequently if specific events suggest that they may be impaired. Subsequent costs on recognised intangible assets are capitalised only if ithey increase the future economic benefits embodied in the specific asset to which they relate; otherwise, they are charged to the income statement as incurred. Goodwill Goodwill is an intangible asset with an indefinite life, deriving from a business combination recognised using the purchase method of accounting, and is recorded to reflect the positive difference between purchase cost and the carrying amount of the Group's interest at the time of acquisition, after having recorded all assets, liabilities and identifiable contingent liabilities attributable to both the Group and third parties at their full fair value. This method of accounting applies to all acquisitions made subsequent to 31 December 2002. The carrying amount of goodwill deriving from earlier acquisitions was determined by using the amount recorded in accordance with Italian GAAP. Goodwill is tested, at least annually, with reference to the cash generating units that benefit from the synergies deriving from the acquisition. Cash flows are discounted at the cost of capital, having regard for the specific risks associated with the unit concerned. Impairment losses are recognised if the recoverable amount, is less than the related carrying amount. The gains and losses arising on the disposal of businesses or lines of business that were acquired with the payment of goodwill are determined taking into account the residual amount of such goodwill. Any impairment losses on goodwill charged to the income statement are not reversed even if the related reasons cease to apply. Research and development expenses Expenditure on research activities, undertaken with the prospect of gaining new knowledge are charged to the income statement as incurred. Expenditure on development activities incurred to create new products or improve existing products, or to develop and improve production processes, are capitalised if the innovations made result in technically and commercially feasible processes or products, on condition that there is an intention to complete the development project, sufficient resources are available for such completion, and the economic costs and benefits deriving from such innovations can be measured reliably. Capitalised expenditure includes both internal and external design costs (including payroll and materials) and the portion of general production costs reasonably attributable to the projects concerned. Capitalised development expenditure is treated as an intangible asset with a finite life and is amortised over the expected period of economic benefit, which is generally taken to be 5 years. Adjustments are recorded to reflect any impairment losses subsequent to initial recognition. Other development expenditures are charged to the income statement in the year incurred. Other intangible assets Other intangible assets expected to generate measurable economic benefits are deemed to have a finite life and stated at cost. They are amortised on a straight-line basis over the period of expected economic benefit, which is deemed to be 20 years for brands with a finite life and between 5 and 10 years for other assets. Adjustments are recorded to reflect any impairment losses subsequent to initial recognition. Trade receivables Trade receivables, generally due within one year, are stated at the fair value of the initial consideration, increased by the related transaction costs. Subsequently, they are measured at amortised cost, adjusted to reflect any impairment losses represented by the difference between carrying amount and the estimated future cash flows. If the impairment loss decreases in a later 23

period, the loss previously recorded is partly or fully reversed and the carrying amount of the receivable is restored to an amount that does not exceed the amortised cost that would have been reported had the loss not been recognised. Trade receivables sold with or without recourse for which the conditions established in IAS 39 for the derecognition of financial assets do not apply continue to be reported in the balance sheet, while receivables sold without recourse which satisfy all the conditions of IAS 39 for the derecognition of financial assets are derecognised at the time of disposal. Other current and non-current financial assets Held-to-maturity securities are initially measured at cost, increased by the transaction costs incurred to acquire these financial assets. Subsequently, they are measured at amortised cost using the effective interest method, net of any impairment loss. Financial assets held for trading are classified as current assets and measured at fair value, with recognition of any gains or losses in the income statement. Securities and other financial assets classified as available for sale are stated at their fair value. Gains and losses deriving from fair-value measurement are recognised directly in equity, except for impairment losses and exchange rate losses which are charged to the income statement. The deferred gains and losses recognised in equity are released to the income statement at the time of sale. Receivables due after one year that do not earn interest or which earn interest at below market rates are discounted using market rates. The interest earned on financial assets, determined using the effective interest method, is taken to the income statement. The fair value of financial assets held for trading and those available for sale is represented by their market price at the balance sheet date. Inventories Inventories are measured at the lower of cost or net realisable value. Cost is determined on a weighted-average cost basis and includes purchasing-related expenses, inclusive of indirect charges, and the costs of converting products and bringing them to their present location and condition. Net realisable value is determined with reference to market prices after deducting completion costs and selling expenses. Obsolete and slow-moving materials and finished products are written down to reflect their estimated realisable value. Cash and cash equivalents Cash and cash equivalents comprise cash on hand, bank and postal deposits and similar assets that can be readily converted into cash (within three months) and are not subject to significant fluctuations in value. Cash and cash equivalents are stated at their nominal value. Impairment of assets At each balance sheet date, the carrying amounts of the Group's intangible assets with an indefinite life, goodwill and intangible assets in progress are tested for impairment, on the basis described in the relevant paragraphs. With the exclusion of inventories and deferred tax assets and except as discussed in relation to property, plant and equipment, other assets are tested for impairment if events suggest that they may have incurred an impairment loss. If the test shows that the assets recognised or a cash-generating unit (CGU) have suffered an impairment loss, their recoverable amount is estimated and the excess carrying amount is charged to the income statement. The impairment loss on a CGU is allocated first against the related goodwill, if any, and then against the carrying amount of other assets. The recoverable amount of an asset or a CGU is determined by discounting the cash flows that such asset or CGU is expected to generate. The discounting rate applied is the cost of capital, having regard for the specific risks associated with the asset or CGU concerned. The 24

Grants Grants from the Government or other bodies, recognised in the form of direct payments or tax benefits, are recognised as deferred income in the balance sheet, among other liabilities, at the time their collection becomes reasonably certain and when compliance with all the requirements to obtain them is assured. They are recognised systematically on an accruals basis, when the costs for which such grants were made are incurred (grants related to assets). Grants related to income are taken to the income statement at the time the requirements for their recognition are met, and when it becomes certain that they will be recognised in order to offset the eligible costs. Other income Other income includes all forms of non-financial revenue not covered above and is recognised on the basis described in relation to revenue from goods sold and services rendered. Expenses The costs of purchasing goods and services are recognised when the amounts concerned can be determined reliably. The costs of purchasing goods are recognised on delivery which, under the terms of current contracts, marks the time when the related risks and rewards are transferred. The costs of services are recognised on an accruals basis with reference to the time they are received. Cost of sales Cost of sales includes all the costs of manufacturing finished products, comprising raw materials, the purchase of components, the cost of direct and indirect, internal and external processing, industrial depreciation, all production-related charges, and the provisions for costs to be incurred in relation to products sold. Selling, distribution, general and administrative expenses Selling and distribution expenses comprise all the costs incurred to market products and provide services, as well as the costs of distributing products to the Group's warehouses and to customers; general and administrative expenses comprise any charges relating to the above, as well as all the other non-financial expenses that are not part of the core business. Operating and finance lease payments Payments made under operating leases are expensed on an accruals basis to match the economic benefits deriving from the leased assets. If such economic benefits are lower than the related charges, falling into the category of onerous contracts, the difference between the discounted charges and benefits is recognised immediately as an expense in the income statement. Finance leases give rise to the recognition of depreciation on the assets recognised and of financial charges representing interest on the loan obtained under the lease. Financial charges are spread over the term of the leases in order to produce a constant interest rate on the remaining balance of the liability. Net financing expenses Net financing costs include the interest payable on the borrowings, cash discounts allowed to customers for early payments with respect to the agreed terms of sale, financial income from cash and cash equivalents, dividends, and exchange rate gains and losses, as well as the economic effects recorded in the income statement of measuring the transactions that hedge interest-rate and exchange-rate risks. Share of profits (losses) of associates 28

The share of profits (losses) of associates includes the effects deriving from application of the equity method and the dividends declared by these companies. Income tax Income tax is recognised in the income statement, except for that relating to transactions recognised directly in equity, in which case it is also recognised in equity. Income tax includes current and deferred tax. Current tax is based on an estimate of the amount to be paid, using for all Group companies the tax rate in force at the balance sheet date in each of the countries concerned. Deferred tax is provided using the liability method, considering all the temporary differences that emerge between the tax value of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is not recognised in respect of goodwill or those assets and liabilities that do not affect taxable income. Income taxes deriving from the distribution of dividends are recognised at the time the related payable is recognised. The recoverability of deferred tax assets is verified at each balance sheet date and any amounts for which recovery is no longer likely are charged to the income statement. Deferred taxation is recognised using the tax rates expected to be in force in the countries concerned for the tax periods in which the related temporary differences are forecast to realised/be settled. Deferred tax assets are recognised to the extent it is probable that future taxable income will be available to recover such taxes. Current and deferred tax assets and liabilities are offset when due to the same tax authority, if the periods of reversal are the same and a legal right of offset exists. Deferred taxation is recognised in relation to the distributable profits of subsidiaries if there is an intention to distribute such profits. Non-current assets held for sale and discontinued operations Assets held for sale are measured at the lower of their carrying amount at the time their sale was decided or their fair value less costs to sell. All costs, income and write-downs, if any, are recognised in the income statement and reported separately. Operating activities that represent a separate major line of business or geographical area of operations are classified separately in the income statement and the balance sheet at the time of disposal, or when they meet the conditions for classification as assets held for sale. Earnings per share Basic earnings per share are calculated with reference to the profit for the period of the Group and the weighted average number of shares outstanding during the period. Treasury shares are excluded from this calculation. Diluted earnings per share are determined by adjusting the basic earnings per share to take account of the theoretical conversion of all potential shares, being all financial instruments that are potentially convertible into ordinary shares, with a dilutive effect. 5. Changes in accounting policies, changes in accounting estimates and reclassifications There have not been any changes in accounting policies with respect to the comparative information provided as of 30 June 2006 and 31 December 2006. With regard to change in accounting estimates, Indesit Company has recognised the accounting effects of the curtailment envisaged in para. 109 of IAS 19 totalling 4.2 million euro. This follows the changes made to the related regulations by Law 296 dated 27 December 2006 (2007 Finance Law), and by the subsequent decrees and regulations issued in early 2007 as part of the overall reform of supplementary pensions. Further information is provided in note 8.19. 29

(in millions of ) Western Eastern Other Eliminations Consolidated Europe Europe Countries 949,9 411,5 102,7 1.464,1 73,5 146,3 33,1 (253,0) 1.023,4 557,8 135,8 (253,0) 1.464,1 64,9 67,7 8,9 141,5 (89,2) 52,4 (11,6) (0,9) (20,5) (0,1) 19,3
Analysis by Geographical Area II quarter 2007
Western Eastern Other Eliminations Consolidated Europe Europe Countries 496,7 243,7 63,4 803,7 56,5 51,9 15,7 (124,1) 553,1 295,6 79,1 (124,1) 803,7 37,3 40,1 6,4 83,8 (56,8) 27,0 (6,0) (10,4) 0,2 10,7
Non-group revenue Intersegment revenue Total Sales Segment results Unallocated income and expenses Operating profit Net financial expenses Share of profit (losses) of associates Income tax Profit attributable to minority interests Profit attributable to the group (in millions of )
Analysis by Geographical Area II quarter 2006
Western Eastern Other Eliminations Consolidated Europe Europe Countries 492,6 217,0 58,6 768,3 44,8 74,5 17,6 (136,8) 537,4 291,4 76,3 (136,8) 768,3 30,4 33,5 5,7 69,6 (43,4) 26,1 (9,9) (0,4) (8,8) 0,2 7,3
7.2 Reporting by business segment (secondary segment) The secondary segment comprises the Group's business segments. For the purposes of segment reporting, the Group's products are classified into the following business segments: 1) the Cooking segment comprises cookers, ovens, microwave ovens, extractors and hobs; 2) the Refrigeration segment comprises refrigerators and freezers; 3) the Laundry segment comprises washing machines, washer-dryers, dryers and dishwashers; 4) the Services segment comprises services to customers, the sale of extended warranties and transport. The following tables present the Group's revenue analysed by business sector.
(in millions of ) Cooking Cooling Washing Services Total revenue (in millions of ) Cooking Cooling Washing Services Total revenue IIQ 2007 194,3 246,9 305,2 57,4 803,7 IIQ 2006 182,0 228,1 306,3 51,9 768,Jun. 07 377,6 433,5 634,3 117,0 1.562,Jun. 06 357,3 392,9 607,2 106,7 1.464,1
8. Notes to the interim consolidated income statement, balance sheet and cash flow statement INTERIM CONSOLIDATED INCOME STATEMENT 8.1. Revenue Revenue is analysed as follows:

(0,1) (0,1) 0,1 0,1 (2,2) (2,2) 0,3 0,3 -19,4% -19,4% 0,0% 0,0% 1,2 1,2

0,9% 0,9% 0,1% 0,1%

0,2% 0,2%
0,5 0,5 0,5 0,1 0,6 (0,1) (6,1) (6,2) (1,0) (1,0)
4,3% 4,3% 0,1% 0,0% 0,0% 0,1% 0,0% 0,7% 0,0% 0,8% -0,9% -0,9%
0,2 0,2 0,9 0,2 0,1 1,2 (5,9) (0,7) (0,6) (7,2)
1,3% 1,3% 0,1% 0,0% 0,0% 0,2% 0,8% 0,1% 0,1% 1,0%
Further information on corporate transactions with related parties As part of the rationalisation of the Group structure (including completion in March 2007 of the merger of WRAP S.p.A. into Indesit Company S.p.A.), the residual 9.8% of Aermarche S.p.A. was acquired from the minority shareholder, Fines S.p.A., in January 2007 for 2.2 million euro. This transaction was supported by an independent appraisal, since it was arranged with a related party.
Attachment 1. List of companies consolidated on a line-by-line basis
Name Indesit Company Luxembourg Sa Indesit Electrodomesticos Sa Merloni Domestic Appliances Ltd Indesit Company Portugal Electrodomsticos Sa Indesit Company International Bv Indesit Pts Ltd Indesit Company France Sa Scholtes Nederland Bv Fabrica Portugal Sa Indesit Company Beyaz Esya Sanayi ve Ticaret A.S. Indesit Company Beyaz Esya Pazarlama A.S. Indesit Company Financial Services Luxembourg Sa Indesit Company Deutschland GmbH Indesit Company Ireland Reinsurance Ltd Closed Joint Stock Company Indesit International Indesit Company Polska Sp.z o.o. Argentron Sa Indesit Company Magyarorszg Kft Indesit Company Cesk s.r.o Indesit Company International Business Sa Indesit Company UK Finance Llp Indesit Company Uk Holdings Ltd General Domestic Appliances Holdings Ltd Aermarche SpA AEI Gala Ltd Airdum Ltd Cannon Industries Ltd Creda Appliances Ltd Creda Domestic Appliances Service Ltd Creda Ltd Fixt Ltd General Domestic Appliances International Ltd Hotpoint Sales Ltd Hotpoint UK Ltd Industrial Design Unit Ltd Jackson Appliances Ltd Indesit Company UK Ltd Xpelair Ltd Ariston Group Services Ltd RTC International Ltd Wuxi Indesit Home Appliance Co. Ltd Indesit Company South America SA Indesit Company Belgium SA Location Luxembourg Spain UK Portugal The Netherlands UK France The Netherlands Portugal Turkey Turkey Luxembourg Germany Ireland Russia Poland Argentina Hungary Cech Republic Switzerland UK UK UK Italy UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK UK China Luxembourg Belgium Share capital EUR 100.289.985 EUR 11.500.000,01 GBP 90.175.500 EUR 16.825.000 EUR 272.270 GBP 1.000 EUR 17.000.000 EUR 79.412 EUR 11.250.000 TUL 12.300.000 TUL 69.744 EUR 5.170.000 EUR 550.000 USD 750.000 RBL 1.664.165.000 PLN 540.876.500 ARS 22.000.000 HUF 3.283.660.000 CZK 1.000.000 SFR 250.000 EUR 95.750.000 EUR 163.000.000 GPB 26.000.000 EUR 25.000.000 GPB 1.000 GPB 15.000 GPB 1.500.000 GPB 100 GPB 1.000 GPB 5.850.000 GPB 2 GPB 100.000 GPB 775.000 GPB 50 GPB 100 GPB 750.000 GPB 46.449.390 GPB 825.000 GPB 100 GBP 50.000 USD 13.600.000 EUR 800.000 EUR 150.000 Group interest direct indirect 99,99 78,95 21,05 19,60 80,40 99,44 100,00 100,00 100,00 100,00 96,40 100,00 100,00 99,99 0,01 100,00 100,00 100,00 100,00 100,00 100,00 100,00 100,00 99,00 1,00 100,00 84,00 100,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 84,00 100,00 70,00 100,00 100,00 Note

(1) (1) (1)

(2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)
(1) includes the percentage held subject to a resale clause. (2) Companies consolidated 100% due to the Put and Call Agreement with the minority shareholders, whose residual interest is classified among the financial payables (see notes 20.3 and 20.4).
Attachment 2. List of investments measured using the equity method
List of investments valued using the equity method Name Location China China Share capital Haier Indesit (QingDao) Washing Machines Co., Ltd Haier Indesit (QingDao) Electrical Appliance Co., Ltd Group interest direct indirect USD 24.000.000 30,00 USD 12.000.000 15,00 15,00
Attachment 3. List of other investments in subsidiaries and associates
List of other investments in subsidiary and associated companies Name Location Italy Italy Bulgaria Greece Norway Austria Singapore Italy The Netherlands Share capital EUR 150.000 EUR 69.000 BGL 7.805.000 EUR 18.000 NOK 100.000 EUR 11.250.000 SGD 100.000 EUR 20.000 EUR 30.000 Adria Lab Srl ECODOM Consorzio Italiano per il Recupero e Riciclaggio Elettrodomestici Indesit Company Bulgaria Ltd Indesit Company Domestic Appliances Hellas Mepe Indesit Company Norge Ltd Indesit Company sterreich Ges. m.b.h. Indesit Company Singapore Pte. Ltd. M&B Marchi e Brevetti Srl Tradeplace B.V. Group interest direct indirect 40,00 43,48 100,00 100,00 100,00 100,00 100,00 50,00 20,00 -
Attachment 4. Consolidated income statement for the period ended 30 June 2007, prepared in accordance with Consob Resolution no. 15519 dated 27 July 2006 and Consob Communication no. DEM/6064293 dated 28 July 2006
(in millions of ) Balances 30 Jun. 07 of which of which non with related recurring parties (20,5) (1,0) 0,1 6,Jun. 06 Balances of which of which non with recurring related parties 1.464,1 1,2 (1.107,2) (20,5) (5,6) (242,3) (1,0) (64,1) (0,7) 2,1 (0,3) (0,1) 52,4 (11,6) (0,9) 39,9 (20,5) 19,Jun. 07 Balances of which of which non with related recurring parties 1,8% 0,4% (0,1%) 67,8% 0,0% 1,0% 0,5% 0,6% 30 Jun. 06 Balances of which of which non with recurring related parties 100,0% 0,1% 100,0% 1,9% 0,5% 100,0% 0,4% 100,0% 1,1% 100,0% (14,6%) 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% n.s. 0,9% n.s. (7,8)

Indesit Company S.p.A. Separate income statement for the six-month period ended 30 June 2007 classified by function
(in millions of ) 30 Jun. 07 Revenue Cost of sales Selling and distribution expenses General and administrative expenses Other income Other expenses Operating profit Net financial expenses Share of profit (losses) of associates Profit before tax Income tax expenses Profit for the period 786,8 (674,0) (87,0) (40,3) 26,2 11,8 80,7 92,4 (8,9) 83,Jun. 06 762,2 (663,3) (85,6) (34,1) 25,2 4,3 72,1 76,4 (6,0) 70,4
Notes on the preparation of the separate financial schedules of Indesit Company S.p.A. Pursuant to art. 81 of the Issuers' Regulations issued by CONSOB, the balance sheet and income statement of Indesit Company S.p.A. as of 30 June 2007 are presented as attachments to the Indesit Company Group's interim financial statements as of 30 June 2007. As required by Legislative Decree no. 38 dated 28 February 2005, Indesit Company S.p.A. prepared its first separate financial statements under International Financial Reporting Standards (IAS/IFRS) as of 31 December 2006, with 1 January 2005 as the IFRS transition date. Consistent with the balance sheet presented in the interim consolidated financial statements as of 30 June 2007, the parent company's balance sheet as of 30 June 2007 also includes comparative figures as of 30 June 2006, in addition to those as of 31 December 2006. The accounting policies adopted for the preparation of the separate financial schedules of Indesit Company S.p.A. are the same as those used to prepare the interim consolidated financial statements of the Indesit Company Group, except for the accounting policies that apply solely to the preparation of consolidated financial statements and the criteria adopted for the measurement of investments in subsidiaries and associates. In particular, investments in subsidiaries and associates not classified as held for sale are measured at cost, as translated into euro using the historical exchange rates in the case of investments in foreign companies whose financial statements are prepared in currencies other than the euro. The positive differences between the purchase price of investments and the corresponding portion of equity are retained as part of the carrying amount of the investments concerned. Investments in subsidiaries and associates are tested for impairment. Impairment losses are only recognised in the income statement if there is objective evidence that events have taken place which will affect the estimated future cash flows of the investments concerned. In the presence of a legal or constructive obligation to cover any losses that exceed the carrying amounts of investments, the related liability is recognised by recording a provision for risks and charges. The original value is reinstated in subsequent years if the reasons for such write-downs cease to apply. In application of Consob Communication no. 15519 dated 27 July 2006, Indesit Company S.p.A. has elected to classify the income statement included in the interim consolidated financial statements and the annual consolidated financial statements in a format which differs from that adopted for the preparation of the separate financial statements and financial schedules of the parent company, as discussed further in the "Basis of presentation" paragraph of the interim consolidated financial statements as of 30 June 2007. 25 October 2007 for the Board of Directors The Chairman Vittorio Merloni