1. 0 Andrea Guerra September 26th, 2003

2. 1 Merloni Elettrodomestici at a glance HeadquartersHeadquarters Fabriano - Ancona (Italy) Production facilities 16 plants in 7 countries Annual sales 12 m appliances Major Brands 2 global: Ariston, Indesit 3 regional: Scholtès, Stinol, Hotpoint Commercial presence Subsidiaries in 21 countries Product lines Cookers, refrigerators, washing machines, dishwashers dryers (free standing and built-in) TurnoverTurnover  3.0 bl € expected in 2003

3. 2 Market overview Demand breakdown by region North America Latin America Big Europe Asia and Pacific Africa Population:6.2 Bn people Major appliances sold300 Million Worldwide 55 96 113 9 28 Fabriano headquarters

4. 3 Quality: CAGR (00-02, Rev) = 20% CAGR (00-02, EBIT) = 42% Basis: Acquisition choice and integration capabilities Good mix of organic and acquisition growth Growth = focused organic growth +good acquisitions + fast integrations+new projects Organic Growth Organic Revenues’ Growth, M EUR 19992000 1,419 20012002 182 138 240 CAGR 11.7% Maintaining momentum Optimizing scale effects Exploiting synergies 12 acquisitions in 25 years 1/3 international Experience in acquiring and integrating Acquisitions History Acquisitions Total Growth 2000 - 2002 53% 47% Organic Acquired The “One Single Company” concept (1 organization, 1 structure, 1 manufacturing network, …) enables Merloni to realize synergies from acquisitions fast and efficiently

5. 4 38,3% 4,6% 9,6% 15,1% 16,0% 16,4% Bosch Electrolux Merloni Whirlpool Candy Others 1st Half 2003 (Volumes)  vs 2002 +0,2 -0,6 +0,2 -0,1 0,0 Merloni Whirlpool Candy Others +0,3 Merloni: the third European player Source: GfK, AMAR, Internal Estimation Bosch Electrolux

6. 5 The East/West gap represents a significant opportunity for Merloni Volumes (mil.) ‘98‘03‘05 55.058.060.0 GDP (index)100.0110.5116.0 Per Capita GDP (€)21,80024,00025,100 House Holds (mil.)154156157 Urbanization78%79%80% MODERATE GROWTH IN A MATURE MARKET ‘98‘03‘05 12.417.520.0 100.0114.8136.0 3,3003,7004,500 111112114 67%69%71% FAST GROWTH IN AN EXPANDING MARKET Source: Company estimates on IMF & Freedonia Group data West Europe: 385 mil people East Europe: 415 mil people Volumes (mil.) GDP (index) Per Capita GDP (€) House Holds (mil.) Urbanization reduced volatility for the 10 East European countries scheduled to join the EEU 2003 2003 upside +

7. 6 2000-2001: two years of flat demand European market and Merloni’s KSFs Mln units Western Europe Central and Eastern Europe European market -------- 320 Million pop., 24,000 $ avg. GDP per capita Progressive segmentation between “commodity” and “value” driven markets “Substitution market” driven by fashion and innovation Around 1/3 of built-in appliances on total appliances sold 199819992000 2001 -------- 430 Million pop., 3,100 $ avg. GDP per capita Forecast of high market growth Market demand driven mainly by the upgrading of installed appliances base Market penetration of washing machine around 55% in Eastern Europe WE EE Merloni’s KSFs Reliability & cost leader Style and fashion Innovation & cost leader Design After sales services ------ 55.0 57.5 59.459.6 12.4 11.9 13.9 13.6 67.4 69.4 73.2 ----

8. 7 A truly European Group Plant Office Affiliate company Merloni operationsDomestic vs. international sales 71.5 79.8 28.5 20.2 200020012002* 100% Italy Other Countries Total sales Western Europe Eastern Europe & Overseas Merloni Operations are distributed all over Europe More than 80% sales come from international markets Total sales are well distributed between East Europe (29%) and West Europe (71%) % of units sold % of Units sold, 2002* 17.7% 82.3% *: Including GDA, 9 months at 50% 36%64%