indesit sustainability report 2012

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Sus

tainabilityRepo

rt2012


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Sustainability Report 2012 Contents

1

2 About this document3 To our stakeholders4 2012: Indesit Company sustainability highlights

5 Indesit Company

and sustainable

development 6 Who is Indesit Company?10 Sustainability governance12 Stakeholders13 Material issues

14 Economic

performance 14 Economic background14 Creation and distribution of wealth

16 Social

performance 17 Human resources19 People24 Training26 Assessment and professional development28 Internal Communication29 Remuneration30 Health & Safety34 Industrial relations37 Customers

38 Quality and innovation for customers needs43 Guaranteeing product quality44 Relationships with dealers and customers45 Suppliers47 Quality and transparency in procurement processes51 Community and territory52 Supporting young people52 Promoting equal opportunities53 Training young people53 Safeguarding the environment53 Volunteers for a day

54 Environmental

performance 55 Safeguarding the environment

57 Indesit Company innovation for the home of the future and safeguarding the environment60 Eco-efficiency in production64 Logistics65 Sustainable distribution and warehouse management65 Recovery of products and materials66 Active role in Europe for environmental protection

68 GRI content index

74 Global

Compact-GRI

correspondence

table

75 Report of the

independent

auditors

Contents


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Sustaiability Report 2012 Abut this cumet

Abut this cumet

Idesit Compays Sustaiability Report, which has bee published yearly sice 2001, is iteded as a

statemet o the Compays approach to sustaiability ad provides stakeholders with a exhaustive

ad balaced accout o values, strategies ad perormace i three areas: ecoomic, evirometal

ad social.

The 2012 Sustaiability Report was draw up as recommeded i the Sustaiability Reportig

Guidelies (GRI-G3) deied by the Global Reportig Iitiative i 2006. The GRI-G3 guidelies

cotemplate three levels o reportig relectig breadth o cotet covered, levels which may be

qualiied by a + sig i the report is audited by a idepedet 3rd party orgaizatio. 2012 was thesecod year ruig i which Idesit Compay attaied the maximum applicatio level (A+).

I additio to iormig stakeholders o all relevat aspects o the impact geerated by their activities,

the Report uderwet a limited audit o the part o auditors KPMG S.p.A. Their idepedet auditig

shows that the sustaiability report is ot a merely sel-reeretial istrumet but a represetatio o

the Groups ecoomic, social ad evirometal perormace that is as objective as possible.

To help readers id the iormatio they eed the Report icludes, at the ed, the GRI Cotet Idex,

with cross reereces to pages i the Report itsel ad to exteral sources.

The data ad iormatio i the Report reer to the year edig o 31 December 2012 ad, where

speciied, to sigiicat projects implemeted i the irst ew moths o 2013. They reer to the paret

compay Idesit Compay S.p.A. ad the compaies it cotrols (hereater also Idesit Group or

Idesit Compay). Further details may be oud i Idesit Groups cosolidated iacial statemets.

Ay limitatios to the reportig boudary are duly speciied i the text.

To achieve the highest possible level o reportig reliability, directly measurable values were preerred

to estimates, which were used as little as possible. Where ecessary, estimates are based o the best

methods available or o samplig ad their use is speciied i the text.

To eable readers to appreciate treds i the Groups sustaiability perormace, quatitative

iormatio is give or the last two or three years, except or certai data oly available or 2012.

Fially, sigiicat evets or chages i measuremet methods which could sigiicatly aect the

comparability o the iormatio i this documet with that i the 2011 Sustaiability Report are

dealt with i oototes. Perormace i 2012 (especially evirometal perormace) was aected by

the exit rom the reportig boudary o the two acilities (Brembate ad Rerotolo) that shut dow

productio i 2011.


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Sustaiability Report 2012 T ur stakehlers

T ur stakehlers

2012 was aother diicult year or the ecoomy ad the home appliace idustry. Despite this, Idesit

worked well ad successully deeded its positios.

I April 2012, the Iteratioal Moetary Fud predicted that the world ecoomy would grow 3.5%

while GDP i the Eurozoe would be dow 0.3%. But as the moths passed, the situatio cotiued

to worse, the recovery started backslidig agai ad prospects or the uture were darkeed by

ucertaity.

I the course o the year, the home appliace market saw a 3% cotractio i Wester Europe ad3.3% growth i Easter Europe, with a overall drop i demad i so-called Greater Europe o early

oe percetage poit.

Yet agai the crisis orced us to rethik our plas. But we maaged to perorm well, achievig positive

sales results ad margis i the ace o a egative market. Successul sales o ew products ad the

Compays competitiveess eabled us to gai market share, with particularly ecouragig results i

the UK ad Easter Europe.

Idesit Compays 2012 was marked by other thigs however: we ivested 90 millio euros i ew

products, over 13 millio appliaces were sold ad quality was improved by a urther 7%; we iled

over 90 patet applicatios, cotiued to improve workplace saety - with a 28% drop i the accidet

requecy idex i idustrial sites (100% o our idustrial acilities are OHSAS 18001 certiied) - ad

reduced our CO2 emissios per uit produced by a urther 2%. Total hours o employee traiig rose

40%.

We pressed o with our domotics research ad iovatio activities i the HomeLab cosortium,

which was joied by ew parters. A project was lauched to deie a ew Iteroperable stadard, so

that a commuicatio code ca be created to eable uctioal iteractio betwee devices made by

the various HomeLab mauacturers, the domotics system ad the Web. Home automatio will yield

big beeits i terms o cosumptio levels, usability, smart grids, diagostics, etc.

It was a importat year or the Joatha Project, whose missio is to help youg people with social

ad judicial problems regai a place i the commuity ad which Idesit has bee supportiguiterruptedly or 14 years ow. The Project, which employs iovative methods, was urther

cosolidated over the year i Italy ad Polad.

2013 is provig to be aother diicult year, ot much better tha 2012. But we will cotiue to do

what is eeded to cosolidate the Groups competitive positio.

Andrea Merloni

Chairman, Indesit Company


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Sustaiability Report 2012 2012: Iesit Cmpa sustaiabilit highlights

2012: Iesit Cmpa sustaiabilit highlights

Cmmuit& Territr

Quali

ty

&Envir

onment

Ivati

People

Health

&Safe

ty

Sustain

able

supply

ch

ain

Directly geerated ecoomic value:

2,948.7 millio euros

16,331employees

Employees o ideite

term cotracts: 85%

28%Reductio i accidet

requecy idex i

idustrial sites

Over 600 peopleworkig i R&D

R&D ivestmets:

26 millio eurosOver 90 patet

applicatios led

Eurcucia 2012Idesit iovatio showcase

ad Hotpoit Iovatio Area

2% reductioi CO2 emissios

O-lie

survey o suppliers

sustaiability

14th earo Joatha Project

7% reductio i the deectrate i 1st year o guaratee


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Sustaiability Report 2012 Iesit Cmpa a sustaiaible evelpmet

5

Indesit Company and sustainaible

development

THERE IS nO VALUE InInDUSTRIAL InITIAVEUnLESS

THERE IS ALSO COMMITMEnTTO SOCIAL PROGRESS

Aristide Merloi (1967)


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Wh is Iesit Cmpa?

Fouded i 1975 ad listed o Brsa Italiaa i 1987.

Oe oEurpes leaig mauacturers ad distributors o large home appliac-es (washig machies, washer-dryers, dishwashers, ridges, reezers, cookers, hoods, oves ad hobs).

Leaer i importat markets like Ital, the UK ad Russia.

Etr to the small mestic appliaces market.

Reveues o2.9 billio euros i 2012

8 pructi acilities

i Italy, Polad, the UK, Russia ad Turkey

Over 16,000 emplees

3 mai bras

Indesit Company Italia has been ranked

Top Employer Italia, a prestigious accolade

endorsing companies that excel in human

resources management. This certification

is carried out every year by CRF Institute,

which has been operating since 1991

and is now in 45 countries across five

continents.


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Indesit Company sees enterprise as a responsibility towards people and the territory they live in, both of which

requiring safety and guarantees.

Such responsibility entails investment in human resources, product quality, energy saving and safeguarding

of the environment, meaning both the natural environment and the social context in which business is done,

and reflects the Groups continuous commitment to improving products, processes and environmental and

energy performance as priorities in terms of economic competitiveness and customer satisfaction.

Innovative, Respectful, Ambitious, Genuine and In touch with others are the five values that inspire

Indesit Company, the guiding principles that direct its choices along with its mission and strategic approach.

Adherence to these principles is the means whereby the criteria of improvement, also stated in the Quality,

Energy and Environment Policy, are actually implemented.

Sustainability

milestones2012 At the 19th Eurocucia, Idesit Compay was oce agai oe o the protagoists, presetig iovatios i the

ield o eergy savig ad smart homes. For the secod year ruig, Idesit Compays Sustaiability Report

attaied the maximum applicatio level o the GRI Guidelies (A+).

2011 Indesit Company obtained multi-site Quality (ISO 9001) and Environment (ISO 14001) certifcation.

2010 Health and Saety Award and Green Award set up to raise awareness in Group plants and acclaimoutstanding health & saety and environmental perormance. Indesit Company receives the 2010

Enterprises or Innovation award in the Large Enterprises category.

2009 Indesit signs the Charter or Equal Opportunities and equality at work and obtains international OHSAS18001certifcation or its workplace health & saety management system.

2008 The Group introduces a stringent Code o Conduct ensuring ull respect or all its stakeholders.

2007 Indesit Company is admitted to the Etica Sgr ranking o European companies actively committed tocorporate social responsibility and wins an Intellectual Capital Value award or its commitment to

developing human capital.

2006 The international ramework agreement guaranteeing non-discrimination in terms o gender, race, religionand opinions wins the frst Etica&Impresa Award. The Group wins the Oscar di bilancio or corporate

governance.

2005 Launch o the Aqualtis, a washing machine incorporating all the most advanced and environmentallyrespectul technologies and unctions.

2004 Indesit Company makes re-cyclettes with materials recycled rom old ridges.

2003The Code o Conduct stipulated with the trade unions in deence o employees rights wins the frst

Sodalitas Social Award.

2002 Oscar or on-line fnancial communication.

2001 Indesit Company publishes the frst sustainability report in the sector and wins an Oscar di bilancio or itsfnancial communication.

2000 Launch o the Quality System, designed to engage the entire Company in improving quality procedures inall business processes.

1998 Launch o the Jonathan-Indesit Company project to help disadvantaged young people with criminalrecords to make a return to society through work.


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Missi

T be the leaig Eurpea mauacturer techlgical slutis that are cmpatiblewith the evirmet a eliver qualit time t peple a ater a.

Values

Innovative

Because every activity Idesit Compay udertakes shows the creativity ad iitiative o people whoaim at ad apply iovatio i everythig they do.

Respectful

Because Idesit Compay acts thoughtully ad resposibly towards its cosumers, dealers, employees,

suppliers, shareholders, the commuities where it works ad the eviromet i its broadest sese.

Ambitious

Because the ability to improve everyday stimulates ethusiasm ad passio or excellece ad

leadership.

I tuch with ther... with others, because costat relatios with all stakeholders eable the Group to liste to their eeds

ad oer the aswers ad solutios required to obtai the best results.

Genuine

Because Idesit Compay works i a ope, trasparet ad authetic maer, doig busiess simply,

dyamically ad lexibly.

Busiess priciples

Developmet o huma resources ad proessioal kow-how, respect or the physical, moral adcultural itegrity o every idividual, promotio o equal opportuities ad diversities.

Respect or the udametal rights o workers the world over i lie with the priciples set orth i

the Covetios o the Iteratioal Labour Orgaisatio (ILO) o the abolitio o child labour, the

priciples o trade uio reedom, worker orgaisatio, collective egotiatio ad the developmet o

equal opportuities.

Servig as a tool or commuicatio, egagemet ad co-operatio o shared objectives.

People at the centre

Respect for workers

rights

Adoption of a

participatory model

in industrial relations


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Success i productio ad market competitio through the creatio ad equitable distributio o

value to stakeholders.

Sustaiable developmet based o a proactive approach towards evirometal issues ad costat

commitmet to objectives that privilege the eeds o uture geeratios.

Focus o research ad developmet or cotiuous iovatio i all busiess processes.

A permaet traiig system to oster the developmet o skills ad proessioal trades.

Satisyig stakeholders expectatios through trasparet commuicatio o strategies, activities,

results ad decisios.

Ethical behaviour i every activity, avoidace o all orms o corruptio ad violatio o laws ad ethical

priciples.

Qualit a evirmet plic: ke pits

Increase the satisfaction of all parties concerned by:

maximizig the quality o the etire lie cycle o the product rage through a ocus o excellece,

which ca be achieved ad measured by exceedig customer expectatios;

prevetio o pollutio ad reductio o the evirometal ad eergy impact o both products

ad idustrial sites through the use o eco-compatible techologies ad techiques, reewable

eergy sources ad recyclig o materials ad products.

Improve process efficiency by:

optimizig the eiciecy o resources;

reiig processes through ogoig developmet o techologies that help improve the quality o

lie o all cocered (cosumers, cliets, employees, suppliers, shareholders, local commuities);

traiig persoel ad osterig a culture o cotiuous improvemet o perormace.

Foster a culture of quality and respect for the environment by:

maitaiig ad improvig the quality maagemet system (based o ISO 9001:2008);

implemetig ad upgradig evirometal maagemet systems i all Idesit Compay sites, i

compliace with ISO 14001:2004;

periodical iteral ad exteral commuicatio to iorm all stakeholders o the mai iitiatives,

iovatios ad results ad cotribute to the cultivatio o a quality ad eviromet culture.

Promote and broaden communication tools:

providig iormatio ecouragig people to co-operate ad itegrate;

providig iormatio o quality, evirometal ad eergy issues both iterally ad exterally.

Creation and distribution

of value added

Respect for and

protection of the

environment

Innovation and quality

Permanent training

Fairness and

transparency

Integrity


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Sustaiabilit gverace

Idesit Compay adopts measures aimig to prevet, as ar as is possible, the occurrece o

evets which may jeopardise the rights o stakeholders, be they employees, customers, suppliers,

shareholders, ivestors, commuities or uture geeratios. The prudetial approach adopted by

the Group i its maagemet o ecoomic, social ad evirometal issues is ouded o strict

compliace with the applicable laws i the coutries where it works ad o volutary iitiatives

desiged to guaratee stakeholders iterests.

Firstly, the Compay has a corporate goverace system coormig to the priciples cotaied i

the listed compaies goverace code issued by Borsa Italiaa. The Group has also adopted its ow

Orgaisatioal Model pursuat to Legislative Decree 231/2001 (admiistrative liability o corporatepersos) ad has adjusted its iacial reportig system to the requiremets o law 262/2005 (Ivestor

Protectio) i order to guaratee adherece to iteratioal best practices.

The Code o Coduct, a itegral part o the Orgaisatioal Model, applies to the etire Group, i lie

with the provisios o local legislatio ad, i ay case, i such a way as to guaratee a suitable level o

risk coverage cocerig the oeces provided or i Legislative Decree 231/2001 i all geographical

areas.

Work was doe i 2012 to redeie processes ad activities at risk or the purposes o Legislative

Decree 231/2001 i light o chages i the law ad i Idesit Compay S.p.A., ad with special

reerece to the ollowig: evirometal oeces, use o oreig labour without residece

permitad corruptio betwee private idividuals. The board o directors approved the modiicatio

o the Code o Coduct ad o the Orgaisatioal Model regardig the irst two oeces, while the

ecessary aalysis is cotiuig i the case o the third, partly i light o the experiece o comig ito

lie with the Bribery Act i the UK. Regardig evirometal oeces i particular, the Supervisory

Body ascertaied that the Group obtaied ISO 14001 multi-site certiicatio i 2011 (it had previously

bee or sigle sites). This certiicatio i itsel provides strog assurace o eective cotrol o

evirometal risks ad waste disposal issues.

I 2012, a traiig course o the ew Code o Coduct was held. Traiig o the Code is obligatory or

all ew etries ad icludes a ial assessmet. Uder the 2012 audit pla, deied o the basis o a risk

assessmet process, certai audits (Busiess Ethics Compliace ad Iteral Cotrol over Fiacial

Reportig - ICFR) were also carried out o certai Group braches abroad (Germay, The netherlads,

Polad ad Switzerlad). Desiged to assess the Iteral Cotrol System, these audits also look at the

corruptio risks idicated i legislative decree 231/2001.


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IndESIT AdHERES To THE MAIn InTERnATIonAL SUSTAInABILITy STAndARdS

Glbal Cmpact (2006): the iitiative supported by the Un to promote ad ecourage respect or certai uiversalpriciples regardig huma rights, labour, the eviromet ad the ght agaist corruptio.

Charter r Equal opprtuities a equalit at wrk (2009): a iitiative promoted by Fodazioe Sodalitas adother associatios , obligig sigatories to respect a series o priciples o equal opportuities.

CECEd Ce Cuct: obliges all members to promote correct ad sustaiable workig coditios, socialresposibility ad quality o the eviromet.

Iteratial Labur orgaisati Cvetis: the Group udertakes to promote resposible labour maagemetpractices, also through its suppliers.

Idesit Compay is also aware that its busiess, ad thereore its ecoomic ad iacial perormace,

are correlated to the risks ad opportuities created by sustaiability issues.

Idesit Compay takes ito cosideratio the impact that climate chage may have o its busiess

ad i particular the possible cosequeces o stricter legislatio i the uture.

I particular, the growig ocus o climate chage ad the eed to reduce eergy cosumptio ad

evirometal impact are costatly stimulatig the Group to ivest i research ad developmet

or the productio o icreasigly eco-riedly household appliaces ad the adoptio o productio

systems respectig the ecosystem.

I order to resposibly ad systematically maage its impact, the Group has created a social

resposibility uit, uder the Exteral Commuicatios & Press Oice departmet, to maage

sustaiability activities ad the reportig o perormace levels.

Furthermore, the maagemet ad the Mauacturig ad Quality & Eviromet departmets

i particular, assess objectives ad results o a mothly basis ad moitor the Key Evirometal

Perormace Idicators maagemet system at Busiess Review Meetigs (BRM).

A importat step was take i this coectio i 2011. A device (Blik) or automatic meterig o

cosumptio levels (with hourly data) was developed to improve the reliability ad precisio o eergy

ad water cosumptio measuremets i productio acilities.

This system will be reied i 2013 (eg. by implemetig additioal activities ad reliability moitorig

systems) to achieve ully eective cosumptio data aalysis ad plaig o eiciecy boostig

actio, ad to move ito lie with the requiremets o the ew Europea Directive o eergy

eiciecy.


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EXTERnAL CoMMUnICATIon

Sice its stock market listig i 1987, Idesit Compay has had a corporate commuicatio departmet to provide

costat, timely ad trasparet iormatio or the market, ad its ow stakeholders, i compliace with goverace

regulatios or listed compaies. I lie with the Compays objectives, the Departmet helps ispire codece ad

credibility i stakeholders ad provide idispesable protectio ad cosolidatio o the Compays reputatio.

Scial respsibilit maagemet i Iesit Cmpa

Stakehlers

Idesit Compay is committed to ope ad trasparet dialogue with its

stakeholders. Such commuicatio provides opportuities to liste to their

expectatios, geerate beeits i terms o improvig risk maagemet,

stregthe trust i the Group ad idetiy ew strategic opportuities.

Relevat stakeholders were idetiied usig the AA 1000 SES methodology

(AccoutAbility 1000 Stakeholder Egagemet Stadard) ad dialogue

cotiued i 2012 i lie with this approach. Activities icluded the supplier

covetios withi the ramework o the aual Supplier Awards, customer

satisactio surveys ad ogoig dialogue with trade uios o idustrial

issues.

CEO

Business

development

HR

Chairman

Finance

Legal

Brand &ConsumerMarketing

Quality &Environment

Home CareFood

TreatmentService & Cons.

Care

Manuacturing

Supply Chain

& IT

Reporting & Auditing Accounting

Planning & Policy

Internal AuditInstitutional

Relations

ExternalCommunications

& CSR

Sales

Stakeholder engagement

Customersand retailers

Suppliers

Shareholders

Lenders

Publicadministration

Personnel

The Communityand uture

generations


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Material issues

Idesit Compay deied the key themes to treat i its Sustaiability Report by aalyzig social

resposibility parameters relevat to the Group ad its particular idustry i relatio to the

expectatios o its stakeholders. This process ivolved the use o a matrix o variables represetig the

Groups ecoomic, evirometal ad social impacts ad their iluece o stakeholders judgemets

ad decisios. Themes idetiied as importat were classiied as risks or opportuities to acilitate

plaig o moitorig ad mitigatio (or the risks) ad improvemet ad developmet (or the

opportuities).

Material issues matrix

High

Medium

Low Medium HighInfuencesonstakeholder

judgementsanddecisions

Sigicat ecoomic, social ad evirometal

impacts o Idesit Compay

Issues ccer t stakehlers

PerselHealth and saetyTrainingEqual opportunitiesCommunication and dialogueIndustrial relations

SuppliersSupply chain monitoringPartnership and air trade

CsumersProduct innovationTransparent communicationCustomer satisaction

EvirmetClimate changeMonitoring o directand indirect impactsEco-sustainable productsdevelopment

CmmuitRespect or human rightsSupport or communityCompliance with legislation

SharehlersBusiness integrityEconomic perormance

Opportunities Risks


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Sustaiability Report 2012 Ecmic perrmace

14

Economic performance

Ecmic backgru

The white goods market i 2012 saw a 3% cotractio i Wester Europe ad a 3.3% improvemet i

Easter Europe with respect to 2011.

The Groups ecoomic ad iacial perormace was aected by these market treds. I the Wester

Europea Area there was a geeral reductio i sales compared to 2011 (-1.8%). The exceptios

here were the UK ad norther Europe, where market treds were positive. I the UK, reveues rom

services were also up, mostly due to extra-guaratee sales. Sales i the Easter Europea Area were up

9.4% o 2011. Reveues rom iished products grew as a result o higher sales volumes ad the tred

i the rouble. I the o-Europea coutries (Iteratioal Area), reveues rom iished products were

dow o 2011 due to lower sales volumes.Further details ca be oud i the Aual Fiacial Report to 31 December 2012.

Creati a istributi wealth

Directly geerated ecoomic value represets the Groups capacity to create wealth ad distribute it to

its stakeholders.

The tables ad charts below detail results i terms o value creatio ad distributio amog the

Groups stakeholders ad are based o reclassiied cosolidated icome data.

0

500

1,000

1,500

2,000

2,.500

3,000

Economic value held by the Group

Donations and sponsorships

Remuneration of public administration

Remuneration of lenders and shareholders

Remuneration of personnel

Operating costs

Economic value generated

(million euro)

Distribution of 2012

economic value generated

2,870.02,948.7

2011

1.84%1.66%

75.90%

6.29%

2012


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Sustaiability Report 2012 Ecmic perrmace

15

Ecmic value (milli eur) 2012 2011 2010

Ecmic value geerate b the Grup 2,948.7 2,870.0 2,948.3

Total reveues * 2,945.4 2,867.2 2,946.5

Fiacial icome 3.3 2.8 1.8

Ecmic value istribute b the Grup 2,763.1 2,705.0 2,706.8

Operatig costs 2,238.0 2,153.7 2,119.9

Remueratio o persoel 421.3 426.5 449.1

Remueratio o leders ad shareholders 54.3 63.7 67.2

Remueratio o public admiistratio 48.9 60.5 69.7

- direct and indirect taxes 53.1 67.1 77.1

- grants (subsidies) -4.2 -6.6 -7.4

Doatios ad sposorships 0.5 0.6 0.9

Ecmic value hel b the Grup 185.6 165.0 241.5

Amortisatio ad depreciatio 109.9 112.4 126.0

Provisios 34.1 17.4 56.7

Reserves 41.6 35.2 58.8

* For the sake o compariso with data i the Aual Fiacial Report to 31 December 2012, the cosolidated icome

statemet was reclassiied by ature so that Total Reveues icludes the Other reveues ad Chage i iished

products ivetories items ad is stated et o subsidies rom public admiistratios.


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Bilacio di Sosteibilit 2012 Scial perrmace

Social performance


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Sustaiability Report 2012 Scial perrmace

17

Huma resurces

I2011we said that we would I2012we

Grow human capital

> Cotiue illig key positios with iteral resources. Egaged 361 employees i the 2012 job rotatio process.

> Develop a cetralized maagemet system or key peopledevelopmet.

Reewed the People Developmet process by structurigit i three phases: Perormace eedback, Leadershipreview ad Commuity.

> Implemet a atioal ad iteratioal commuicatiocampaig o Employer Bradig. Lauched the Shape your career iteratioal employerbradig campaig, which wo various awards admetios.

> Cotiue traiig o Legislative Decree 231/01. Provided traiig o the ew Code o Coduct ollowigthe updatig o the Code itsel ad the OrgaizatioalModel pursuat to Legislative Decree 231/01.

> Complete implemetatio o the ew web tool or global

maagemet o remueratio processes.

Used the ew automated tool or persoel remueratiomaagemet.

Saeguard peoples health and saety

> Cotiue health ad saety traiig. Provided over 110,000 hours o traiig o health adsaety.

> Redeie the health ad saety traiig process by basigit o assessmet o competecies ad developig aspeciic platorm.

Reviewed the traiig process o the basis o skillsassessmet ad developed a SAP applicatio eabligsites to pla, maage ad record traiig iormatio.

> Promote activities to reduce ire risk ad carry out aew risk assessmet o the mai processes, icludigpackagig.

Made sigiicat improvemets to electrical ad gassystems ad ire hydrat supply i Caserta, Fabriao adLipetsk ad itroduced stretch ilm packagig equipmetthat doest use gas or heatig elemets i Lipetsk.

> Develop programmes to improve saety i the use oequipmet.

Deied structured actio plas or Maisa ad Lipetskivolvig improvemets (started i 2012 ad cotiuig i2013) ad audit procedures or checkig compliace withistructios, especially o maiteace.

> Promote ad support projects to improve work statioergoomic ad orgaizatioal actors.

Lauched projects to improve work statios i the LipetskCoolig plats (eg. reductio o oise ad temperature)

ad at Yate (aligmet o assembly lies with thestadards o the Idesit Mauacturig Excellece project).

> Complete asbestos decotamiatio ad promote actioto reduce health risk actors.

Prepared or the removal o asbestos at the oly sitewhere it exists (Peterborough) by traserrig the spareswarehouse ad products reprocessig activities to reducerisk o exposure.

Goal reached Goal partially reached Goal ailed


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orgaisati,maagemet wrk &

sstems

Iustrialrelatis

Emplerbraig,recruitmet& equalpprtuities

Cmpesati& Beeft

Health& saet

Persalevelpmet& traiig

Iteralcmmuicati

HumaValue Chai

Fr the uture, we wat to...

Grow human capital

Develop ad urther improve Idesit Perormace Feedback, Leadership Review ad Commuities

processes.

Reie the job rotatio maagemet process.

Cotiue to develop itegratio o remueratio processes ad systems at global level.

Saeguard peoples health and saety

Lauch ew commuicatio activities to raise persoel awareess o health ad saety.

Iitiate a project to assess earthquake risks at 14 sites i Italy ad Turkey. Remove at least 70% o the asbestos at the Peterborough site.

Stregthe co-ordiatio o health ispectios, also i relatio to maagemet o work stress.

Idesit Compays approach to the maagemet o its huma resources is based o

the deiitio ad maiteace o the Huma Value Chai, rom talet attractio

through creatio o value to exit rom the Group. Idesit Compays mai objective is

to become more competitive i its idustry both by developig proessioal expertise

i-house ad by takig i high level specialists rom outside. I this cotext, Idesit

Compay will cotiue to ocus o attractig the best exteral cadidates (maily

rom uiversities ad other compaies) through the ew Value Propositio lauched

i 2012 ad a major commuicatio campaig. Idesit Compay is equally coviced

that the proessioal developmet o all its people, ad especially those promisig

excellece, must be icreasigly based o the ew strategic cotext ad the ew

leadership model.

Human Value Chain


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I its relatioships with huma resources, the Group preers

stable, log-term cotracts: at the ed o 2012, 85% o the

workorce were uder ideiite term cotracts ad 15%

were o ixed-term cotracts. Over 600 temporary workers

were employed i 2012 ad 36 youg people were give

iterships.

The overall turover was 8.5% o the total workorce.

Emplees b 2012 2011 2010

title (.)

Maagemet 141 136 125

White collar 4,336 4,401 5,128

Blue collar 11,854 11,575 10,807

Ttal 16,331 16,112 16,060

Temporary 618 290 565

Iterships 36 44 56

geer (%)

Wome 34% 34% 34%

Me 66% 66% 66%

Turver (leaves) b 2012Ttal 8.5%

gegraphical area

Italy 4.9%

Turkey 17.4%

Polad 11.1%

Frace 10.6%

UK 8.5%

Russia 7.9%

Other coutries 10.6%

geer

Me 9.4%

Wome 6.8%

age

< 30 years 14.7%

betwee 30 ad 50 years 6.2%

> 50 years 10.3%

title

Maagemet 8.5%

White collar 6.3%

Blue collar 9.3%

People 16,331In 2012, Indesit Company employed

over 16,000 people across eight

industrial centres (in Italy, Poland,

the UK , Russia and Turkey) and

24 commercial branches.


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Avergage seirit emplees (ears) 2012 2011 2010

Maagemet 11.0 11.5 11.3

White collar 10.4 10.9 10.6

Blue collar 10.5 10.4 10.1

Ttal 10.5 10.6 10.3

Average age emplees (ears) 2012 2011 2010

Maagemet 45.9 45.6 46.0

White collar 39.1 39.7 39.5

Blue collar 39.9 39.2 38.9Ttal 39.8 39.4 39.1

note:

Sice 1 Jauary 2012, 722 customer service employees i UK have bee cosidered blue collar istead o white collar. For the

sake o compariso, the data or 2011 were reclassiied accordigly.

Pressial areas i 2012 Tpes ctract i 2012

Marketing & sales

Support functions

Industrial area

Innovation & development4%

4%

Fixed-term

Indefinite

Hirigs a leavesb title, 2012

Hirigs a leavesb tpe ctract, 2012

Discontinuations

Recruitments

1,500

1,000

500

0

Blue co llar Wh ite collar M anagemen t

note:

I additio to the 3 maagers take o i 2012, there were 14 promotios rom white collar to maager. The diereces

betwee the data or hirigs ad leaves ad chages i workorce umbers are due to promotios/demotios.

Leaves

Hirings

1,500

1,000

500

0

I nd efi ni te F ix ed -t er m


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Emplees b gegraphical area

I lie with the priciples o equal opportuity,

o-discrimiatio ad protectio o diversity, the

iteratioal selectio strategy or 2012 ivolved

more extesive use o ew talet attractio

chaels, such as digital chaels ad web 2.0,

thaks to the Shape your career iteratioal

employer bradig campaig ad its o-lie

orgaizatio.

Alogside the ocus o studets ad ew

graduates to attract ad trai uder career

programmes, the Group is costatly searchig

or specialists, proessioals, maagers

with experiece ad seiority. At seior level, 2012 saw the itroductio o 12 ew key roles i

the commercial, marketig ad mauacturig ad operatios areas created to stregthe the

orgaizatioal structure ad respod with icreasig success to ew busiess challeges.

2012 was also characterized by the lauchig o a iteratioal employer bradig campaig -Shape your career - desiged to boost the Compays otoriety ad appeal as a iteratioal

employer by steppig up talet attractio activities ad creatig etworks o proessioals.

Employer branding: digital communication

The commuicatio strategy or the employer bradig campaig was based o a itegrated pla o

o-lie ad o-lie actios. The ocal poit o all activities is the Idesit & I - Iteratioal Careers site,

accessed via careers.indesitcompany.com. I seve laguages (Italia, Eglish, Frech, Germa, Russia,

Polish, Turkish), the site is the mai chael o cotact ad eables visitors to:

see job or itership opportuities at iteratioal level ad apply or them, or sed cold

applicatios;

be updated o employer bradig evets the Compay is takig part i;

get iormatio o recruitmet, traiig ad developmet procedures;

hear 24 Idesit employee testimoials talkig about their experiece i the Compay;

2011

2010

2012

(%)

30

25

20

15

10

5

0

Other UEExtra UEFranceTurkeyPolandUnitedKingdom

RussiaItaly

Recruitment

Shape your career

Iteratial.Ivative

IrmalI a jb that I like

These are the key words characterizing

Indesit Companys value proposition as an

employer that emerged from dialogue with

Indesit employees from different departments

and countries and university students and

new graduates.


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22

lear about the characteristics o the various proessioal amilies i the Compay;

play the Shape your uture o-lie game to id out about the dieret sorts o career

developmet available.

The site also works through two iteratioally importat social media:

(www.likedi.com/compay/idesit-compay/careers), where the Group has a

corporate page or sharig cotet o proessioal iterest (vacacies, video testimoies, ews o

employer bradig evets) to cultivate ad exted its proessioal etwork;

(www.youtube.com/user/IdesitAdICareers), where there is a Idesit ad Irepository with all the employer bradig videos (such as testimoy videos, uiversity evet

videos).

Campus Program

Itegrated ad i syergy with the digital commuicatio, the Shape your career campaig also

icluded over 100 corporate evets at iteratioal level: career days, busiess cases, presetatios

ad project work i collaboratio with uiversities ad busiess schools accordig to the cosolidated

model o the Campus Program, which is characterized by iteractio ad reciprocal developmet

with uiversities i all markets where the Group operates (startig i the coutry where it origiated).

The Campus Program, i act, is uder a 3-year agreemet with Uiversit Politecica delle Marche

providig or a iovative teachig acility i which a Idesit Faculty o Group maagers itegrate

the traditioal syllabus with lectures o subjects relatig to some o the mai busiess processes: rom

product developmet to sales via mauacturig, marketig ad much else besides.

THE SUCCESS oF SHAPE yoUR CAREER

The employer bradig campaig ad o-lie ad digital commuicatio strategy received umerous awards ad

metios i 2012.

desm AwarAt the Pleary Sessio o the Forum Borsa Iterazioale del Placemet, 300 delegates rom uiversities ad busiesses

gave Idesit Compay the Best Employer Bradig award or its ew iteratioal Shape your career campaig.

Luquist Scial Meia Awars

Ludquist raked Idesit Compay i the six most virtuous Italia compaies i terms o usig proessioal etworkigplatorms, i recogitio o its etworkig activities ad o-lie media visibility, esp. Likedi.

Luquist Empler Braig olie Awars 2012Idesit Compay raked i the top te i Italy or Employer Bradig O-lie activities o the basis o a survey by

Ludquist o 100 compaies. The Group was praised or the origiality o its audio-visual commuicatio ad or

avigatio ad usability.


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Idesit Compays huma resources maagemet works towards the itegratio ad saeguardig

o diversity ad subscribes to ILO priciples. I 2009, Idesit Compay siged the Charter o equal

opportuities ad equality at work, a iitiative promoted by Fodazioe Sodalitas, AIDAF, AIDDA,

Improta Etica, UCID ad Uicio nazioale Cosigliera di Parit ad supported by the Miistry or

Labour, Health ad Social Policies ad the Miistry or Equal Opportuities.

2012

Emplees b age, geer a title (.) < 30 ears 3050 ears > 50 ears

Maagemet 0 109 32

- of which women 0 17 2

White collar 806 2,900 630

- of which women 422 1,148 195

Blue collar 2,213 7,476 2,165

- of which women 636 2,583 534

Ttal 3,019 10,485 2,827

- of which women 1,058 3,748 731

Over ad above ormal applicatio o the law, the Group seeks to saeguard womes jobs by

acilitatig part-time work or mothers. 88% o employees o part-time cotracts i 2012 were wome.

Parttime emplees (%) 2012

Full-time Total 96%

Part-time Total 4%

- part-time men 12%

- part-time women 88%

note:

Percetages reer to employees i Italy, Frace, Spai, Switzerlad ad Portugal.

Regulatios o the employmet o protected categories vary rom coutry to coutry. I some

cotexts it is ot possible to provide speciic reportig because such categories are ot legally

recogized or because o local privacy law.The Group ecourages the employmet o protected categories i compliace with local legislatio or

adopts alterative measures to such ed speciically provided or by law. I Italy, Idesit Compay has

etered agreemets with the relevat authorities to avour the employmet o people with disabilities

i accordace with the provisios o law 68/99. To comply with protected category recruitmet quotas

i Russia, the Group also operates preeretial selectio o local suppliers who employ protected

categories, thus deedig ad developig the value chai o local idustry.

Equal opportunities


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Idesit Compay egages everyday with the

eects o globalizatio ad the growig iluece

o techology o work methods, the workig

eviromet ad employees eeds. Kowledge,

ideas, itellectual property, the supply o excellet

products ad services: these are the idispesables

that dictate Idesit Compays priority ocus o

traiig, to eable everyoe (ad uture maagers i

particular) to create, iovate, lear, commuicate,

lead ad co-operate with others, uderstad ad

rapidly adapt to chage. The key evolutio herewas rom the problem to solve approach (Problem

Solvig) to oe based o opportuities to take

(Appreciative Equiry).

This is the visio uderlyig the traiig oerig,

which starts o a persos irst day at Idesit

Compay. A virtuous circle i which learers

gradually become teachers, or the beeit o

their ow ad their colleagues careers, ad which

ivolves all employees ad chaels their eergies

ito shared objectives.

Plaig ad implemetatio o traiig at Idesit Compay is drive by a top-dow strategy that

starts by deiig medium ad log-term busiess priorities. This approach also ivolves listeig to

the requests o people who are plottig out their learig paths towards certai expectatios (their

ow ad the Groups) ad take part i choosig the types o traiig to use. I the last our years, i

act, Idesit Compay has also ivested heavily i ew techologies ad istrumets to meet peoples

traiig eeds by providig ew methods o learig ad iteractio, to be carried orward above all

by the youger employees. The architecture o the Groups traiig orgaizatio esures that people

are accompaied rom Day 1 to whe they take up positios o wide-ragig resposibility.

In Indesit

This is the itegrated e-learig platorm o the Group Itraet, available i real-time or aroud 5,000

employees worldwide. new etries ca do a virtual tour o processes, busiesses, people ad places.In Indesitprepares ew etries or iductio ad is curretly i Eglish, Italia, Russia ad Polish.

There are curretly two modules o the Code o Ethics ad Saety desiged to periodically back up

awareess raisig campaigs addressig the etire workorce.

Induction

A 1-day traiig course or people whove bee i the Compay or 2 to 4 moths. It cotextualizes the

virtual tour provided i I Idesit by itroducig them to key Idesit Compay people. They ca also

liste to other youg people talkig about their experiece o the I Tue course (cascadig traser

o kow-how).

TrainingIndESIT FACULTy

Idesit Faculty is a etwork o maagers (about

70 people o various atioalities) ad specialists

selected rom dieret busiess uctios o

the basis o their kowledge to desig ad

provide classroom traiig o other employees

ad chael peoples eergies toward shared

goals. Compared to other compaies, this is a

alterative approach to developmet processes

ad i-house traiig. Chagig market scearios

(techological chage, competitiveess, volatility,

etc.), the way society is chagig (ew methods

o iteractio, o which youg people i particular

are carriers) ad ew eeds or ast ad direct

learig have led to a revisio o the maagers

role. I additio to doig busiess, maagers must

ow provide or traser o kowledge to others,

with mutual erichmet. Teachig & Learig are

two sides o the same coi, both rooted i Idesit

Compays values.


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In Tune

This is a Made i Idesit iteratioal traiig course or youg graduates rom all coutries ad it

takes place i three dieret geographical areas. In Tune is a exclusive ad best practice traiig

module i that it eables people to lear about the Groups basic processes ad relative key actors i a

mere six days. In Tune is coducted by maagers rom Indesit Faculty.

In Spire

This is a ew-geeratio iteratioal traiig course or the proessioal developmet o youg

employees with growth potetial ad betwee 3 ad 6 years experiece i the Compay. The

objective o this 4-moth course is to develop maagerial attitudes withi a ramework o busiess

acume skills ad patters o coduct i lie with Idesit Compays leadership model, o particularimportace i this stage o developmet o uture maagers.

In Vision

Desiged i collaboratio with Idesit Faculty, this iteratioal traiig course addresses the

key maager commuity o the advatages o strategic thikig (oe o the mai aptitudes i

the Groups leadership model) as a istrumet o developmet. The course cotet icludes

key actors ad the approaches ad istrumets o strategic thikig to use or cotiuous

improvemet o busiess i the medium ad log-term. The secod part o the course is project

work that puts the learigs o the irst part ito practice; its results are preseted to the top

maagemet.

In Catalogue

Desiged i co-ordiatio with all the traiig maagers throughout Idesit Compay, I Catalogue

addresses the eed to improve certai sot ad hard skills relatig to perormace. Most users o this

traiig package are white collars across all o Idesits sites i Europe. The courses are assembled i

a sigle o-lie catalogue accessible via the Itraet. Every year there is a Bleded Eglish course

or those eedig to perect their Eglish. 2012 saw the lauchig o a major traiig developmet,

the Iteratioal Bleded Catalogue, a sigle o-lie product or all Idesit compaies which also ties

i with classroom traiig i idividual sites. I this way, a sigle compay culture, startig with its

uderlyig values ad ethos, ca be dissemiated without sacriicig the diversity o idividual sites

ad local cultures.

Managerial trainingA importat step orward was made i 2012 with the desig o traiig or the Seior

Maager commuity. This will ot oly develop strategic maagerial skills or this category

but will also broade kowledge i certai areas to cope with the wideig o resposibil ities.

There are al so various masters courses, some i partership with atioal ad iteratioal

busiess schools.


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Traiig (classrm a elearig) 2012 2011

Traiig hours 368,000 256,060

Per capita traiig hurs b title (classrm a elearig) 2012 2011

Maagemet 10 3

White collar 17 25

Blue collar 25 13

Ttal 23 16

note:

Per capita traiig hours i 2011 have bee adjusted ollowig ie-tuig o the relevat moitorig system.

I 2012, there was a icrease i the total hours o traiig provided, which was maily o techical

subjects. I additio to traditioal traiig ad e-learig, there was a cospicuous amout o o-the-job

traiig (a estimated 240,000 hours), which is udametally importat i proessioal developmet.

Some o the traiig activities were subsidized: udig received by the Group or traiig purposes

amouted to aroud euro 419,000.

Traiig hurs b title 2012 Traiig hurs b theme 2012

Management

White collar

Blue collar0.4%

20.4%79.2%

Foreign language training

Technical training

Health and safety training

Managerial development

and performance improvement

Occupational integration programs4%

1%

note: Traiig data do ot iclude o-the-job traiig.

I 2012, regardig traiig o avoidace o corruptio oeces, 1,859 Group employees each received

a hour o o-lie traiig o the ew Code o Coduct. The Code o Coduct traiig course is

obligatory or all ew etries ad ivolves a ial assessmet.

I 2012, Idesit Compay ocused o reviewig, implemetatio ad revitalizig its People

Developmet Process to brig it urther i lie with market prospects ad the eeds o maagers ad

white collars. The Compay is cosolidatig a high perormace culture based o eedback to give

people opportuities to develop their capacities ad orge a career.

The People Developmet process is i act three macro-processes perectly itegrated ad rooted i

the Compays philosophy.

Personnel

assessment

and professional

development

PERFoRMAnCE ASSESSMEnT

Aroud 3,000 white collars were ivolved i perormace assessmet i 2012.


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Indesit Performance Feedback

This has replaced the ormer Perormace Maagemet System ad ivolves aroud 3,000 oice

sta ad maagers worldwide. The ame chage rom Perormace Maagemet System to

Perormace Feedback relects the importace the Compay attributes to eedback, which is

cosidered a key tool i huma resources developmet. Durig this process, which starts at the

begiig o the year, people deie their idividual objectives or the year ad reach agreemet over

them with their superiors o the basis o team objectives to esure compatibility. The system provides

or a Mid-Year Check i which the team leader may decide to chage objectives to adjust to ew

eeds or busiess strategies. At the ed o the year, the process closes with a sel-assessmet o the

part o the employee ad a assessmet by the maager (hierarchical or uctioal, i ay). The process

may the go through a phase i which perormace assessmet is weighted by a calibratio system(the ew Lumesse tool) ad meetigs at departmet level (sprig 2013 owards). This system will

make it possible to discuss assessmets ad obtai a ial ratig thats airer ad more accurate.

Leadership Review

This replaces the ormer Huma Resources Review ad is perectly itegrated with the Perormace

Feedback. Aroud 1,200 people i maagerial positios aroud the world are assessed ot oly

i terms o perormace but also o leadership characteristics as deied i the Idesit Compay

Leadership Model. This assessmet too is calibrated i meetigs (Leadership Reviews), also o a cross-

uctioal basis to esure greater sharig, coherece ad objectivity.

Communities

Commuities are homogeous groups or which traiig ad career developmet paths have bee

deied o the basis o the particular characteristics o idividual clusters: Juior (youg people at the

start o their careers), Proessioal (people with ot oly high perormace ad leadership qualities but

also high level techical kow-how) ad Maagerial (people with maagerial characteristics). From

those ivolved i the ormer processes, Idesit Compay idetiied aroud 6% o the white collar

populatio or iclusio i the Commuities. Idesit Compay Commuities are also represetative

o the Compays diversity: Commuity members are Italia (69%), Russia (10%), Polish (9%), Turkish

(4%), British (3%) ad other atioalities (Austria, Chia, Portugal, Ukraie, Czech Republic).

All these processes make it possible to develop people coheretly through job rotatio, promotio

ad speciic traiig to esure they are ully egaged i ad aliged with the busiess. Every year, the

ocus is o the improvemet, iovatio ad evolutio o the processes i lie with the eeds o thebusiess ad its people. It is a very dyamic process ad is reviewed every year o the basis o busiess

requiremets ad strategy.

The results o these processes are preseted to the Huma Resources Committee every year.


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IndESIT LUMESSE

Lumesse is a iovative ew IT-based persoel maagemet tool. It itegrates perormace ad leadership assessmet

modules with others such as remueratio, career preereces, proessioal prole. The system works i various laguages

(Italia, Eglish, Polish, Spaish, Russia ad Turkish) ad eables maagers to obtai iormatio o employees at ay

time ad other employees to create their ow prole ad carry out a simple ad complete sel-assessmet. It also eables

HR Busiess Parters to aalyze perormace ad leadership ad give specic advice o people developmet.

The Group adopts a iteratioal job rotatio policy as a tool or proessioal developmet ad to

ecourage exchage o kow-how amog the various iteratioal uits i the orgaizatio. Thisapproach o oe had oers persoel a opportuity to gai sigiicat iteratioal experiece o

use i their proessioal developmet ad, o the other, it osters the dissemiatio o kow-how ad

the developmet o local skills. Job rotatio may be i a persos ow departmet or a dieret oe

ad ivolves both maagemet grades ad juior proiles.

I 2012, 2.5% o the Groups white collar ad maagerial populatio worked abroad, either o

secodmet (remaiig a employee o the home compay) or localized (becomig a employee

o the oreig compay). Secodmet/expatriatio geerally lasts a average o two years. I a ewly

acquired or ew start-up site, resources are usually brought i rom other coutries or a iitial period.

As the site itegrates ito the Group, the percetage o such resources is gradually scaled dow to

avour the developmet o local maagers ad specialists.

Lcal seir maagemet 2012

Italy 99%

Greater Europe * 47%

Other coutries ** 71%

note:

Seior maagemet meas employees o executive grade or equivalet. Local meas seior maagers operatig i their

coutry o origi or i which they are residet.

* Austria, Bulgaria, Germay, Spai, Frace, UK, Hugary, The netherlads, Polad, Portugal, Russia, Swede, Turkey ad

Ukraie.

** Switzerlad, Argetia, Chia.

Idesit Compays Iteral Commuicatio works costatly to:

build kowledge o the busiess by helpig to uderstad the evolutio o its products ad

services through ogoig ad wide-reachig iormatio lows;

heighte iteral awareess o the Compays reputatio;

dissemiate the Employer Brad value propositio;

sharpe employees perceptio o the Compays huma resources maagemet, developmet

ad iormatio activities;

cotribute to the commuicatio ad uderstadig o busiess strategies;

support the Compays ambassador culture;

acilitate the spread o ew digital media as a meas employees ca use to promote the

busiess.

Global skills

development

Internal

Communication


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Intranet

The Itraet portal Isight is a udametally importat iteral commuicatio tool reachig

5,000 employees worldwide i either ixed or mobile mode. It provides various istrumets oerig

iormatio, guidace, active participatio i compay strategies, traiig, utilities or rapid exchage

o iormatio, ad live ad o demad video cotet, all o which with a bottom-up approach. Isight

is also the mai media or the house orga Flashews, WebTV ad commuicatio campaigs. Its

updated everyday by a cetral editorial team that validates cotributios rom local teams o the basis

o a iteral commuicatio pla ocusig o the Groups mai strategies. Isights mai objective is

to develop a commo corporate idetity ad help dissemiate the Groups values.

Indesit Web TVWebTV is oe o the most recetly developed istrumets or egagig ad iormig people i

the various coutries where the Group operates. It is a itegral part o the commuicatio process

supportig the departmets with trasmissio o evets i live streamig ad o demad. The

creatio o Idesit Web TV required a high umber o skills i terms o techologies, commuicatio

ad traiig. The project has proved very importat or costs optimizatio, capillary dissemiatio o

kow-how ad proactivity ad team workig. Over 100 hours o video cotet were made available to

all employees i 2012, with a ocus o documetig the mai busiess evets, such as the Eurocucia

expo ad the iauguratio o the ew hood productio lies i Polad.

Flashnews

Available to all employees o-lie ad o paper, the house orga is the mai chael o

commuicatio betwee Corporate maagemet ad employees i the various idustrial cetres.

Flashews is published every our moths, i ive laguages ad with a circulatio o 10,000.

Idesit Compay has always ivested i the ecoomic ad persoal wellbeig o its employees,

oerig competitive wages ad salaries ad all possible coditios esurig equal opportuities

i the Compay. The udametal priciples uderlyig the remueratio policy are trasparecy,

compliace with regulatios ad the Code o Coduct, rewardig o achieved objectives o a pay-or-

perormace basis, ad retetio ad motivatio o a highly traied workorce capable o geeratig

competitive edge or the Group ad relectig its values.

Basic pay does ot vary betwee me ad wome but depeds o a idividuals role ad

resposibilities. It relects peoples experiece ad skills, levels o excellece show ad the geeralcotributio made to the busiess. There is o discrimiatio i terms o race, age, religio or persoal

or social circumstaces.

I may coutries, a miimum wage is deied by atioal or local regulatios. I coutries where

there is o legal miimum wage, pay may be egotiated by employer associatios ad trade uios.

A mappig o 97% o the workorce (icludig all the Groups mai compaies) revealed that the etry

wage o blue ad white collar employees is higher tha the local legal miimum.

Remuneration


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The Group has a aual Maagemet by Objectives icetive system or aroud 4% o persoel.

The scheme varies with the importace o employees roles ad their impact o the busiess. The

parameters o the pla are geerally quatitative perormace idicators, which or some roles may

iclude ot oly ecoomic (eg. sales ad margis) but also social ad evirometal idicators.

For people i the Quality & Eviromet departmet, assessmet is also based o evirometal

idicators or mauacturig (reductio o eergy ad water cosumptio ad waste productio i

mauacturig), while objectives or those i the mauacturig area also relate to workplace health &

saety (eg. accidet requecy ad seriousess).

Idesit Compays remueratio policy provides or a series o o-cash beeits itegratig

employees remueratio (ixed ad variable). Such beeits are desiged to provide additioalsupport or employees ad, where possible, their amilies withi the cotext o local labour markets,

legislatio ad social security policies.

Certai elemets, such as catee service, trasport or extra-proessioal accidet isurace are

provided uder iteral guidelies applyig to all employees, icludig part-time ad temporary

persoel, ad subject to local practices. I some coutries childcare ad other services meetig amily

eeds are made available.

Status beeits, o the other had, are liked to the importace o employees roles ad may iclude

a car ad certai types o isurace. Regardig the latter, the Group egaged a broker i 2012 to

guaratee a higher degree o cetralized goverace ad to support idividual markets i their

operatios i this area. A web platorm was also implemeted or the purpose.

Workplace health ad saety coditios are vital to the achievemet o excellece i corporate activities.

For this reaso the Group deies policies, procedures ad resposibilities i compliace with local

legislatio. I 2012, the saety policy uderwritte by the CEO i 2009 was reviewed ad approved or

2013 as well.

The Health & Saety departmet works to achieve the objectives o:

promotio o a strog sese o persoal resposibility i

respect o the Compays health & saety policies;

Group-wide goverace o legal ad regulatory

developmets;

developmet o a system to maage health ad saetyissues;

esurig uctioal co-ordiatio o all Group oices

operatig i this ield;

implemetatio o evirometal policies i close co-

operatio with the various uctios cocered.

Benefit

Health and safety

OHSAS 18001Extension of OHSAS 18001

certification has been extended to34 Group sites, including all of the

production sites and covering 94% of

total employees.


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Followig the completio i 2011 o the 3-year audit pla moitorig scheduled improvemets to

health ad saety levels, i 2012 a audit pla was implemeted or reewal o the OHSAS 18001

multi-site certiicatio obtaied at the ed o 2009. The results o this were positive ad the exteral

certiicatio orgaizatio issued ew certiicatio valid up to December 2015.

To reduce accidet risk to a miimum, Idesit Compay adopts solutios based o moitorig o

perormace over the year but also takes prevetive actio by idetiyig potetial accidet risks ad

where they might occur. All the iitiatives take i 2012 were o this sort.

Prevention of fire risk

Use o purely mechaical equipmet or packagig products istead o systems ivolvig heat; a

ew system was itroduced or all products at the Lipetsk ridge plat ad partially i the washigmachie acility, while its still i the approval stage or the other plats.

Irastructural work was doe to improve electricity, gas ad ire-ightig systems.

Safe use of equipment and machinery

Use o impact sesors o orklits to detect icorrect maoeuvres ad a saety system that prevets

the vehicles beig used by people ot authorized because ot suitably traied. The system is i

service i iished product warehouse at Rauds i the UK ad is uder developmet or use i the

Italia ad Polish sites.

Istallatio o additioal protectio barriers aroud machiery at the Maisa plat.

Improvements to work stations and prevention

Optimizatio o work statio coditios, eg. oise reductio, ergoomics ad temperature cotrol;

the ergoomic comort idex o 97 operators was improved uder the project.

Adoptio o smaller packs or trasportig productio compoets so that hadlig persoel

have lighter loads to shit ad thereby ru less risk o muscular damage.

For employees with impaired hearig, special alarm systems or emergecy situatios ad

reductio o exteral oises.


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Idesit Compay produces a

aual Health ad Saety Report

illustratig perormace i terms

o persoel health ad saety. The

cotets o the Report are deied

o the basis o OHSAS 18001

requiremets ad draw data rom

the health ad saety maagemet

system (HSMS), local ad corporate

maagemet reviews, idividual

site KPI reports ad process audits.All idustrial ad o-idustrial sites moitored the tred i accidets ad their causes ad deied

objectives o the basis o Compay health & saety policy, local regulatios ad the results o aual

checks ad activities carried out. 106 objectives were deied i 2012, with a success rate o 74%.

The mai results at the ed o the year were as ollows:

i the idustrial sector, the requecy idex was dow

28%, while the seriousess idex rose 25%, relectig

a icrease i log-term hospitalisatios;

i logistics ad service (o-idustrial sector), the

requecy idex improved by aroud 26%, while the

seriousess idex was dow 30%.

Acciet iex b gegraphical area iustrial sectr 2012 2011 2010

Frequec iex

Italy 4.2 5.0 8.0

Polad 0.7 1.0 3.7

Russia ad UK 0.8 1.2 1.2

Ttal 1.8 2.5 4.4

Severit iex

Italy 0.19 0.12 0.29Polad 0.08 0.04 0.15

Russia ad UK 0.04 0.06 0.09

Ttal 0.10 0.08 0.18

note 1: The idustrial sector i Italy icludes the Maisa plat (Turkey) or orgaisatioal reasos.

note 2: The idexes are based exclusively o accidets that caused more tha 3 days lost work.

note 3: Data take rom the 2012 Aual Corporate Health ad Saety Report, which icludes data rom the Compays

moitorig system (OHSAS 18001 certiied).

note 4: Frequecy idex: # accidets per year / # hours worked per year x 1,000,000.

note 5: Seriousess idex: # days absece through accidet per year / # days worked per year x 1,000.

Performance in 2012HEALTH & SAFETy AWARd

The Health & Saety Award is a aual award assiged to the productio

plats with the best scores or accidet requecy ad severity idexes

ad other perormace idicators. The 2012 Award was give by Idesit

Compays chairma to the washig machie plats i Radomsko (Polad)

ad Comuaza (Ascoli Piceo) ad the hob plat i Fabriao (Acoa).

A special award was give to the sales structure i the UK or havig

achieved improvemets i aroud 40% o the saety idicators or the

secod year ruig.

0 accidentsHaving no accidents at all has always

been one of Indesits main goals. 14 sites

achieved this objective in 2012.

Note: accident here means one that causes over

three days absence from work.


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I 2012, the Groups proessioal disease rate (total cases o proessioal disease/total umber o hours

worked x 200,000) was 0.08, substatially the same as the previous year.

Abseces b tpe, 2012

note: percetages relative to 97% o the populatio.

Idesit Compay makes sure that all operators, saety sta ad maagers receive adequate workplace

health ad saety traiig ad are ully aware o the issues ivolved.

I 2012, the health & saety traiig process was reviewed o the

basis o a assessmet o the ecessary skills. The traiig pla was

the developed or the ollowig objectives:

dissemiate the culture o saety as the basis or all busiess

operatios;

raise awareess o risks i the workplace ad stregthe the

capacity to idetiy ad report them;

make operators act as agets o prevetio ad active players i the maagemet system;

acilitate sae behaviour through uctioal itegratio o health ad saety cocepts with actual

work tasks.

The duratio, cotet ad procedures o all saety traiig or employees (operators, saety sta ad

maagers) were discussed i advace with compay ad local trade uios represetatives.

H&S CoACHInG PRoGRAM

I Italy, the H&S Coachig Program ivolved over 2,600 employees across all the idustrial sites. Over 20,000 hours otraiig were provided usig highly iteractive methods based o real cases ad with a strog ocus o risk assessmet,

reportig ad prevetio. The project led to over 2,000 improvemet actios reported directly by employees which were

the aalyzed by the relevat maagemets ad ed ito the compay pla or the purpose o ogoig improvemet

ad sharig o results with the workorce. The H&S Coachig Program project also received a special award rom Regioe

Marche or outstadig commitmet to workplace health ad saety ad the proessioal developmet o the resources

ivolved. All o which goig to show that egagemet ad participatio are key to the achievemet o workplace health

ad saety objectives.

no TECHnICAL SKILLS

Idesit also collaborated with Societ Italiaa di Ergoomia to produce a course, no Techical Skills, held o 17 April

2012 at ASUR i Acoa. Addressig saety experts, the course explored the huma actor ad the cogitive, social ad

persoal abilities (complemetary to techical skills) that help esure sae ad eective work perormace.

Meetings and paid permits

Strike

Unpaid permits

Accident

Illness

42%

1%

2%

Health & Safety

training

for employees

and the Community110,000

In 2012, 110,000 hours of training

on H&S have been provided with an

average time of 6 hours per-capita


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Idesit Compay believes that osterig a culture o health ad saety outside work is also importat

ad orgaizes iitiatives to raise awareess amog employees amilies ad the commuities close

to the Compays plats. I Italy, a importat agreemet was reached betwee Associazioe

Joatha Olus, Idesit Compay, the Juveile Justice Departmet ad InAIL Campaia to lauch a

project uded by InAIL - Saety ad Legality - that aims to educate youg people with a crimial

backgroud o the importace o compliace with saety regulatios as applied i the workplace.

I Polad, uder a lea productio project i collaboratio with d Polytechic, 44 studets

were give a saety course o aspects commo to both productio techiques desiged to improve

eiciecy ad those that ocus o workplace saety.

Health & Saety committees are set up at local level as required by Idesit Compays corporateWorkplace Health & Saety Maagemet System (WHSMS).

They have decisio-makig powers at idividual site level ad work to promote programmes to

improve health ad saety coditios ad approve the results o the local WHSMS. These committees

represet the etirety o employees who work at the site, beig ormed by the sites legal Health &

Saety represetative, executives, employee represetatives, Huma Resource maagers ad the heads

o operatig departmets, oices ad laboratories, as well as the head o the Prevetio ad Protectio

Service. Committees tasks are deied i a WHSMS procedure that also sets the miimum requecy

o meetigs. Such meetigs are quarterly, though some orgaisatios preer their committees to meet

mothly.

Idesit Compay has a idustrial relatios system structured to maitai correct ad trasparet

relatioships with employees (all covered by collective Group or compay agreemets) ad

trade uios, with which it eters agreemets based o the priciples o co-operatio ad social

resposibility.

I the case o busiess relocatios, the Compay starts talks with the uios (ad the Iteratioal

Works Coucil where provided or) well i advace i order to idetiy the best solutio possible, i

additio to givig the miimum otice required by Italia law i writig, to trade uio represetatives

at least 25 days beorehad ad with reasos or the relocatio ad the legal, ecoomic ad social

cosequeces or employees.

O 15 november 2012, the Iteratioal Works Coucil (IWC) was istituted with a protocol siged

by the trade uios o all the coutries where Idesit operates ad by the Idustriall Europea Trade

Uio ad the Idustrial Global Uio. The IWC replaces the Europea Works Coucil to exted itsgeographical reach ad ivolves the active participatio o worker represetatives rom coutries

outside the Europea Uio (Russia ad Turkey). The ew Coucil is thus ormed by represetatives o

six coutries (Italy, the UK, Polad, Russia, Turkey ad Frace).

Idesits agreemet goes beyod Europea ad Italia legislatio ad is the irst o its kid i

Italy.

The IWCs rules, like those o the EWC beore it, provide that trade uios must also be iormed o

ad cosulted o the itroductio o ew workig methods or productio processes that sigiicatly

aect the Group as a whole, as well as ay chages to orgaizatioal ad productio structures that

have trasatioal repercussios.

The Groups istrumets or maagig orgaizatioal chage are completed by the Redudacy

Health & Safetycommittees

Industrial relations


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Maagemet model, which evisages a series o iitiatives i avour o employees i cases o

plat closure, ragig rom job traiig (traiig ad cosultig or outplacemet) to direct

icetives ad subsidies to compaies that hire Group employees. The complex itegratio

o productio acilities i Italy iitiated at the ed o 2010 is a good example o this idustrial

relatios philosophy.

SoCIALLy RESPonSIBLE RE-oRGAnIZATIon

Orgaizatioal chages i recet years have ivolved employees i acilities i both I taly ad other Europea

coutries. I maagig scheduled acilit y closures, Idesit Compays objective was to guaratee maximum

saeguardig o occupatio, meaig the outplacemet o workers. Followig the decisio to close the Brembate

ad Rerotolo plats i Italy, Idesit reached a agreemet i December 2010 with the Ecoomic Developmet

Miistry, local authorities, employer associatios ad trade uios markig the start o the irst large scale relocatio

policy i Italy. I additio to providig or ivestmets o euro 120m i iovatio ad developmet projects i

Italy, the agreemet cetres o the creatio o regioal techical committees or re-idustrializatio ad persoel

outplacemet to protect occupatio ad the proessioal kow-how o the employees rom the productio sites

closed dow. The coditios agreed with the trade uios icluded, amog others thigs, that ew jobs oered

must be i the same district ad also i lie with employees proessioal traiig. As o December 2012, 370 o the

510 employees occupied i the Brembate ad Rerotolo plats as o 31 December 2010 had bee dismissed. O

those, 73 were outplaced to other compaies, 224 were dismissed with icetives, 62 wet ito retiremet ad 11

were traserred to other Group sites.

The same priciples were applied i the shut dow o productio at noe i December 2012 due to the usustaiability

o productio uder the egative coditios i the dishwasher market. The agreemet reached i October 2012

cormed cotiuatio o the Product Research ad Developmet acility at noe ad idetied measures to maage

redudat persoel (site re-idustrializatio, redudacy schemes, outplacemet with exteral compaies ad withi

Idesit Group). As o 31 December 2012, 55 people out o a workorce o 357 with the Compay as o 31 October 2012

had bee dismissed: 49 agreed to dismissal with icetives, ve wet ito retiremet ad oe was outplaced to aother

compay.

Discussio, egagemet ad participatio i corporate choices o the part o employees prove

eective ways to maitai a healthy climate ad avoid colict. I 2012, however, there was a icrease

i the hours o idustrial actio or reasos relatig both to issues o atiowide importace ad to

matters cocerig Idesit ad i particular the closure o the noe plat.

Hurs strike 2012 2011 2010

natioal strikes 37,621 19,620 13,761

Compay strikes 9,121 3,782 19,959

Ttal hurs strike 46,742 23,402 33,720

note: igures reer to Italy oly. There were o strikes i oreig sites.

Strikes

and litigation


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For the same reasos, 40 legal actios regardig employmet relatioships ad damages were

brought agaist the Compay by employees i Italy i 2012.

disputes with emplees b subject 2012 2011 2010

Proessioal level/tasks/cotributios 17 17 19

Biological ad moral damage, proessioal illess, accidet 12 8 16

Discipliary procedures, redudacy, damage rom redudacy,

reitegratio at work 4 4 7

Work relatios 7 4 30

Ttal 40 33 72

note: igures reer to Italy oly.

Regardig the oreig compaies, (Russia, Polad ad Turkey) there are eight disputes pedig over

proessioal gradig, job resposibilities, social security ad bargaiig with trade uios, ie over

biological ad moral damage, proessioal illess, occupatioal disease ad accidets ad three over

discipliary matters.

Idesit Compays etire iteratioalisatio ad globalizatio process is drive by resposible awareess

o its eect o the wellbeig o the commuities i which it operates. Such resposibility is also see i its

commitmet to the Iteratioal Labour Orgaizatios udametal stadards ad o protectio o the

atural eviromet. I 2001, Idesit Compay was the irst to sig a agreemet with the trade uio

orgaisatios FIM/CISL, FIOM/CGIL ad UIL/UILM ad with the Iteratioal Federatio o Metalworkers

Uios esurig respect or udametal huma rights ad the priciples set orth i certai ILO

covetios i all its plats.

Uder this iteratioal ramework agreemet, the Group also udertakes to require its direct suppliers

to adopt the same priciples. Every year, the trade uios who siged the agreemet are provided with

a list o Idesit Compays top 300 suppliers, while Idesit Compay seds all ew suppliers its Code o

Coduct (which edorses the aoremetioed priciples) ad requires them to sig it.

I coectio with the elimiatio o child labour

ad orced labour, the Group agreed with thesigatory trade uios to:

promptly itervee to remove ay situatios

o o-coormity, through moitorig ad

cotrol systems implemeted by the natioal

Joit Commissio provided or i the compay

agreemets;

impose sactios o suppliers who ail to

comply with the priciples i the child ad

orced labour covetios ad also, i the worst

cases, termiate cotracts;

moitor compliace o such priciples i the

Groups productio uits.

Respect for human

rights

HUMAn RIGHTS In AGREEMEnTS WITH TRAdE UnIonS

Idesit Compay etered a agreemet with the trade uios i 2001 to observe ad

eorce the ollowig ILO covetios:

no. 29 - o use o orced labour or workig i coditios o slavery;

no. 87 - reedom o associatio i trade uios;

no. 98 - reedom o employees ad employers to egotiate xed ad ideite term

agreemets;

no. 100 - o salary discrimiatio betwee me ad wome i the same grades;

no. 111 - o discrimiatio o the basis o race, religio, political opiios or social origis;

no. 135 - o discrimiatio or itimidatio agaist employees represetatives;

no. 138 - o employmet o childre uder 15 or i ay case youger tha the

compulsory school age uder local legislatio; no. 182 - prevetio ad suppressio o child labour.


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Custmers

I2011we said that we would I2012we

Customer relationships

> Cotiue with the proessioal call ceter pla ad extedcoverage i Russia, Swede ad Turkey.

Opeed a call ceter or Swede to cover 100%o customer assistace itervetios. Call cetercoverage i Russia did ot chage i 2012 (a pla wasdraw up to exted it rom 70% to 95% i 1 st quarter2013). The opeig o call ceter i Turkey was movedto 2013.

> Cotiue developmet ad implemetatio oCustomer Relatioship Maagemet (CRM) or eectivemaagemet o the cosumers experiece o IdesitCompay.

Developed CRM i Italy (ollowig implemetatio i2011) ad implemeted it i the UK (Republic o Irelad iApril, norther Irelad i July, Scotlad i October).

Fr the uture, we wat to...

Customer relationships

Exted call ceter coverage i Russia to 95% o total assistace itervetios.

Ope a call ceter i Turkey to cover 80% o total assistace itervetios.

Ope a call ceter or norther Europe to cover 100% o total itervetios i Germay ad

Demark.

Implemet the CRM system i Eglad ad Turkey.

Quality

Reduce the deect rate o products i the 1st year o guaratee to aroud 8%.

Goal reached Goal partially reached Goal ailed


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Idesit Compay sees iovatio as the key to sustaiable

creatio o value over time: iovatio is a process that

ecompasses the etire lie cycle o products, rom desig

to disposal, ad is drive by priorities such as care or the

eviromet, ease o use, ergoomics ad lexibility.

Idesit Compay is workig o a umber o projects

relatig to smart techologies employed to develop ew uctios i the ield o Ambiet Assisted

Livig. Itelliget ad itercoected appliaces play a cetral role i the domestic eviromet,

esurig comort, eiciecy, usability, saety ad iteroperability with the outside world.

How innovation is generated in Indesit

Quality and

innovation for

customers needs

ISO 9001ISO 9001 certification has been

extended to 34 Group sites, including

all the production facilities.

Pruct evelpmet

26 milli eursivested i R&D activities

ver 90patet applicatios iled

(over 60 oreig extesios o

Italia applicatios iled i 2011)

ver 600people egaged i R&D

A idea stems rom isights

by Idesit teams ad

cotamiatio rom outside

ope ivati

The idea, classiied by degree

o maturity, techical-

ecoomic risk ad iluece

o the product ad target, is

moitored over time

Techlgical ramaps

The viewpoits o the various

uctios are harmoized;

ideas are eriched with ew

cotet; costs/opportuities

o each idea are assessed,

priorities are deied ad

a iter-uctioal team is

created to accompay the

idea o its course

operatig wrkshp

A prototype is made o the

basis o the idetiied eeds

o the targeted cosumer ad

coherece with the brad ad

cosumer relevace

Prttpe

The teams preset ideas

to a vast audiece, usig

prototypes, busiess cases ad

cost/ivestmet estimates

Iea a

The Screeig team decides

what will proceed to the

Exploratio stage

Screeig

Techological easibility is

reied ad a busiess model

or a alterative way to meet

the same eed is deied

Explrati


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The mai projects lauched by the Compay are as ollows:

Wi Fridge

To reduce wastig ood ad the social ad evirometal impacts it etails, this project aims to

produce a moitorig system or ridges i which smart phoes will commuicate oods best-by dates

ad items etry ad exits will be logged.

VID

The VID (vacuum isulated door) project seeks to icrease the eergy eiciecy o ridges by

idig other techologies to replace the isulatio properties curretly provided by expaded

polyurethae. This iovatio will deliver cosiderable eergy savigs, also rom the idustrialprocess poit o view.

FOOD

The FOOD project aims to preserve ad icrease the idepedece o people who still have a

suiciet level o autoomy. The solutio is based o the itegratio o sesors ad itelliget

home appliaces ad web-based services ad applicatios or iormatio ad commuicatio

i various social ields. Data supplied by sesors placed o people ad i the eviromet ad

cooperatio betwee artiicial ad huma itelligece o the etwork will help to develop

a service supportig the idepedece o people with diiculties. Peoples quality o lie will

also improve thaks to the itesiicatio o iteractio with the outside world aorded by the

iteret.

I 2012, Idesits Cookig busiess uit worked o the project to guaratee itegratio o the

commuicatio systems developed or the ew Luce electroic ove. The system will trasorm the

ove ito a smart appliace capable, together with other sesors, o beig more useul i the home,

with web-based services ad applicatios givig access to commuicatio ad iormatio i various

social eviromets. For oves, or example, it will be possible to dowload recipes ad cookig

cycles, share iormatio with other users o the same system, ad get iormatio o usig the ove

ad cotrollig its cosumptio. Trials will be ru to gather iormatio o use o the system ad its

perormace to assess its actual eicacy.

JADE

Idesit Compay is also participatig i a Europea research project JADE promoted ad co-

ordiated by Regioe Marche to develop a techological district i support o active autoomyor the elderly. As lie expectacy rises, the populatio gets older ad social costs rise. This meas it

is ecessary to saeguard health ad quality o lie, above all through active prevetio o chroic

illesses. This is doe by developig web based domotic techologies that eable the elderly to live i

their ow homes i saety thaks to tele-assistace ad tele-medicie which ot oly saeguard health

but reduce the eed or hospitalisatio ad relative costs. I collaboratio with the dist

indesit sustainability report 2012

Documents