Transcript www.indesitcompany.com

Indesit Company
2006
Q3 results
October 26, 2006
1
Q3 ’06 - Highlights
[change vs. same period y-1]
● Sales
: +5.0%
● Operating
income* : +31%
● Operating
margin* : +120 bps
● Net
Working Capital : - € 80M
● Net
Financial Position : - € 119M
* Before restructuring costs
2
9M ’06 - Highlights
[change vs. same period y-1]
● Sales
: +5.1%
● Operating
income* : +22%
● Operating
margin* : +80 bps
* Before restructuring costs
3
Q3 ’06 - Sales
[€M; change vs. same period y-1]
Q3 ‘06
Net sales
- Market Share : + 50 bps
- Price/mix: -0.7%
871
Q3 ‘05
829
% Var.
+5.0%
Appliances breakdown by product line
- Cooking
180
179
+0.5%
- Refrigeration
263
250
+4.9%
- Washing
370
348
+6.0%
4
Q3 ’06 - Operating income
[€M]
Q3 ‘06 Q3 ‘05
•Positive price/mix trend
Operating
income
(before restr. costs)
52
40
6.0%
4.8%
7
11
0.8%
1.3%
45
28
5.2%
3.4%
Δ%
31%
•Good UK performance
•SG&A firmly under
control
Restructuring
costs
Operating
income
(after restr. costs)
(40%)
59%
5
September 30 ’06 - Net Financial Position
[€M]
Tight working capital
control and capex
efficiency
Net Working
Capital
% vs. last 12
months sales
Net Financial
Position
‘06
‘05
Var.
218
298
(80)
6.9%
9.8%
(2.9%)
614
734
(119)
6
Industry Unit Shipments
[% change vs. same period y-1]
Q3 ’06
9M’ ’06
West Europe
+2%
+2.4%
East Europe*
+4%
+6.2%
CIS
+6%
+6.4%
* Excluding Turkey
7
Market Retail Price
[% change vs. same period y-1]
Q3 ‘06
9M ‘06
West Europe
+1%
+1.3%
East Europe*
(4%)
(4.5%)
CIS
n.a.
n.a.
* Excluding Turkey
8
Q3 ’06 - Consolidated Income Statement
[€M]
Q3 ‘06
Q3 ‘05
Net Sales
871
829
EBITDA*
87
76
Margin
10.0%
9.2%
EBIT*
52
40
Margin
6.0%
4.8%
Restructuring costs
(7)
(11)
EBIT
45
28
Margin
5.2%
3.4%
Financial Items**
(8)
(7)
PBT
38
21
4.3%
2.5%
23
10
2.7%
1.2%
Margin
Total Net Income
Margin
% Var
5%
14%
31%
(40%)
59%
3%
79%
127%
* Before restructuring costs
** Including income and expense from associates
9
9M ’06 - Consolidated Income Statement
[€M]
9M ‘06
9M ‘05
% Var
2,335
2,223
5.1%
EBITDA*
231
208
Margin
9.9%
11%
EBIT*
125
Margin
5.4%
Restructuring costs
(27)
(21)
EBIT
98
81
Margin
4.2%
3.7%
Financial Items**
(20)
(20)
78
61
3.3%
2.8%
27%
43
29
1.8%
1.3%
44%
Net Sales
PBT
Margin
Total Net Income
Margin
9.4%
103
4.6%
22%
30%
20%
-
* Before restructuring costs
** Including income and expense from associates
10
September 30 ’06-Consolidated Balance Sheet
[€M]
‘06
‘05
Non-current
operating assets
1,243
1,272
Trade receivables
Inventories
Trade payables
665
370
(817)
703
378
(783)
Net Working Capital
218
298
% on sales
6.9%
9.8%
Short term assets/
liabilities & other
liabilities
(323)
(341)
Net Invested Capital
1,137
1,229
‘06
‘05
Net Financial Position
614
734
Group equity
509
480
Minorities
14
15
Total Shareholders’
equity
523
495
1,137
1,229
Total Sources
11
Consolidated Cash Flow
[€M]
Operating Cash Flow
CapEx
Cash Flow before financial
activities
Financial operations
& others
Free Cash Flow
Q3 ‘06
Q3 ‘05
9M ‘06
9M ‘05
96
32
5
(86)
(23)
(42)
(73)
(103)
73
(10)
(68)
(190)
6
3
(28)
(32)
79
(7)
(97)
(222)
12
September 30 ’06 - Net Financial Position
[€M]
Cash, bank deposits
and marketable
255
securities*
Short-term
indebtedness**
414
Long-term
indebtedness
456
Total Financial
Liabilities
869
Net Financial Position : €614M
* Of which €75M under cash collateral
** Incl L/T debt maturing within 12 months
13
Manufacturing
[Direct manpower hours allocation]
West.
Europe
LCC
66%
60%
34%
40%
2005
9M‘06
60%
40%
2006E
14
Manufacturing
•Two new factories under construction in Poland
(Radomsko)
•Products: washing machines and dishwashers
•Total production capacity: 2 million units
•Production start up: first half '08
15
Q3 ’06 - New Products Launches
NEW
SLIM
Standard Washing Capacity
in 40 cm depth
16
Q3 ’06 - New Products
New Top Loading
Biggest Washing Capacity : 6 Kg
17
Q3 ’06 - New Products
Attitude Dishwasher
Clean & Quiet
18
Q3 ’06 - New Products
New 48 cm Oven
Smaller Size - Same Capacity
19
Q3 ’06 - New Products
New A++ Combi Range
The Lowest Energy Consumption
20
FY 2006 guidance
. Net Sales:
+4-5% vs. 2005
. EBIT margin: >= € 150M
21