Energy efficient comfort

Company Profile 2012

Established over 80 years ago Present in more than 150 countries Key player in renewable technologies

The worlds partner in energy efficient comfort

One of the worlds leading companies in thermic comfort, Ariston Thermo offers a complete range of heating and hot water products, systems, services and solutions designed to provide maximum comfort with minimum use of energy.

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Highlights
Key figures in 2011 The Group in figures

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Vision
To our stakeholders Paolo Merloni Executive Chairman

Global scale, local knowledge The industrial presence The commercial presence

22 Energy efficiency The challenge of sustainable growth Solutions and innovations to maximize energy savings Our contribution to the planet 28 Continuous improvement Valuing talent

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The Groups history 80 years of growth driven by innovation

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Values
Corporate commitment and social responsibility Francesco Merloni Honorary Chairman

Opportunities for growth

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The Community Our social commitment in the world Our commitment in Italy

Index
31

Performance
Aldo Bisio Chief Executive Officer

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Brands and products

Ariston Elco Chaffoteaux Racold

33 Global objectives

42 Thermic comfort

34 Customer service An eco-friendly approach from pre-sale service to after-sale assistance 36 Sustainability Sites performance The environmental impact of our plants 38 Industrial excellence The 360 Quality project The WCM project

52 Burners 54 Components

Highlights
Key figures in 2011 Global scale, local knowledge The Groups history

Highlights

Key figures in 2011

The Group in figures
Ariston Thermo, one of the worlds leading companies in home heating and water heating solutions, is working to design cutting-edge, high quality and energy efficient products aimed to provide maximum comfort with minimum environmental impact.

$ 1.3 billion
euros of total sales
Our turnover grew by 6% between 2010 and 2011, 87% of our total sales were generated outside of Italy.

6,700
employees
A growing figure 5% higher than in 2010. 91 % of our staff is on permanent contracts.

6.4 million
products per year (+ 36 million components)
Manufactured in 19 production sites in 10 countries.

55 million
in investments and R&D
Over 250 people employed in R&D in 14 research centres in 8 countries.

Business Areas: Thermic comfort

Burners Components

Sales by business area

Thermic comfort 89%

Sales by region
Italy 13% Western Europe 48% Others 4%

Burners 6% Components 5%

Eastern Europe 18% Asia 17%

Headcount by business area

Thermic comfort 86%

Headcount by region
Italy 24% Western Europe 39%

Burners 5% Components 9%

Eastern Europe 7% Asia 30%

Highlights

Global dimension, local knowledge

The industrial presence
19 production sites in 10 countries

14 research centres in 8 countries

Production sites
Our understanding of local needs has made us the worlds partner in energy efficient comfort. As well as being leaders in Europe, we have a strong and long established presence in many emerging countries. Belgium Namur China Wuxi France Annemasse Chartres Valence Germany Pirna India Pune Italy Arcevia Cerreto Genga Osimo Resana Rovereto Serra de Conti Russia St Petersburg Switzerland Biasca Puidoux The Netherlands Kerkrade Vietnam Hanoi

Commercial presence
47 companies in 30 countries

1,200 service experts

Distribution in over 150 countries

1,300 people in sales

and marketing Companies
Argentina Austria Belarus Belgium China Croatia Egypt France Buenos Aires Vienna Minsk Brussels Zellik Shanghai Zagreb Cairo Annemasse Paris Germany Frankfurt Hechingen Munich Pirna Hungary Budapest India Pune Indonesia Jakarta Ireland Dublin Italy Arcevia Fabriano Milan Resana Kazakhstan Morocco Poland Portugal Czech Rep. Romania Russia Singapore Spain Switzerland Almaty Casablanca Krakow Sintra Prague Bucharest Moscow Singapore Barcelona Aarburg Biasca Puidoux Vilters The Netherlands Kerkrade Naarden Turkey Istanbul UK Basildon High Wycombe Pershore Ukraine Kiev United Arab Emirates Dubai Vietnam Hanoi

Highlights

The Groups history

Founded in Italy in 1930

1930
Aristide Merloni founds Industrie Merloni in the Marches, Italy, and starts the production of weighing machines.

1970
The company becomes Italian leader in water heating systems under the name of MTS.

1990
Subsidiaries are set up in Eastern Europe and Asia. MTS consolidates its position and becomes one of the world leader in home heating. MTS acquires Racold, the largest water heating company in India. First wholly-owned factory opened in China.

1960
The production of electric water heaters begins. The Ariston brand is launched.

1980
After establishing itself as the European market leader in water heating systems, MTS expands its activity to the heating sector. The production of boilers begins.

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80 years of growth driven by innovation

Today
The Group consolidates its presence worldwide and renews its commitment to generate 80% of its business from high efficiency and renewable energies by 2020.

2001
Acquisition of historic companies and brands in heating and burners sectors: Chaffoteaux, Elco, Cuenod e Rendamax.

2008
After the acquisition of Termogamma, heat pumps specialist, the Company opens the European Excellence Centre for solar thermal in Italy.

2011
Ariston Thermo continues to grow both in emerging and mature markets. With the acquisition of Cipag and Domotec SA, the Company becomes the leader in Switzerland in the production, distribution and maintenance of water heating systems.

2005
Opening of a new plant in St Petersburg, and acquisition of Ecoflam, an Italian leader in heating systems.

2009
The Company changes its name to AristonThermo Group. The Group is one of the world leader in the heating industry, offering a complete range of products, systems and services.

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Values
Corporate commitment and social responsibility The community

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Values

There is no value in the economic success of any industrial initiative unless it is accompanied by a commitment to social progress.
Aristide Merloni, 1967

In line with the values of the Groups founder, in 1963 the Merloni family set up the Aristide Merloni Foundation aiming to support the creation and development of new businesses through the supply of loans, capital investments, and technical and organizational advisory services. After making a key contribution towards the development of the local economy through its activities, the Foundation has now become an Institute for the study and dissemination of entrepreneurial culture, through research, conferences and publications in collaboration with Public Institutions and Universities.

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Corporate commitment and social responsibility

values to embody the ethical Our company continues d our business ral part of our identity an that have been an integ on. vision since its foundati pursuing a community of people We see our business as tual cooperation spirit of solidarity and mu a shared project in the ry resource. and who are its key prima vironment s the territory and the en any responsible toward A Comp motion tes, committed to the pro where it lives and opera pportive and civil growth and su of its economic, social ver possible. of specific needs where ce operating both form and substan A model of rectitude in s its customers, d transparency toward with utmost honesty an ess relation with. shares a working or busin suppliers and anyone it operate in countries nstant reference as we These values are our co o practice we strive to put them int with different cultures; t traditions ting them to the differen as much as we can, adap nciples , while adhering to the pri and needs we encounter f that they are Merloni, in our firm belie of our founder Aristide ment and success. the root of our develop

Francesco Merloni Honorar y Chairman

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Values

The community
The Group is involved in initiatives for the promotion of education, culture, solidarity and the improvement of local peoples living conditions, in partnership with public and private institutions and individuals in the countries where it operates. In 2011 Ariston Thermo has invested for the community almost one million euros, doubling its efforts in social initiatives compared to 2010.

Our social commitment in the world

International partnerships The Italy-China Foundation, a non-profit organization aimed at developing economic and cultural relations between Italy and China by promoting the excellence of Italian products. Cooperation agreement with the China Green Foundation: in 2011, on the occasion of the launch of the heat pump water heater eRee, 20,000 trees were planted in the forest of Jinshan Li, in the Province of Beijing, which has become an environmental emergency area due to the sudden desertification. Solidarity in natural disasters Turkey In the wake of the devastating earthquake that hit the country in 2011, Ariston Thermo provided accommodation to the companys employees who were affected. Philanthropy

Romania
Ariston Thermo donated and installed its products at the Focsani orphanage.

China
The Company donated water heating solutions to the Sunset Welfare House, an old peoples home, and to the New District Comprehensive Service Centre, a care centre for disabled people, in Wuxi.

Ukraine
The Company donated heating and water heating systems to the Centre of social and psychological rehabilitationDREAM hosting 30 young orphans, in Tsybli.

Ethiopia
Ariston Thermo helped building a well on behalf of Intermon Oxfam. Support to education

Vietnam
Ariston Thermo supported the victims of the floods by providing economic aid and basic commodities to the local communities.

India
The Company purchased a school furniture supply for a kindergarten in Pune.

Cina
Following the earthquake in Sichuan, the Group donated products and organized a fund raising campaign amongst Chinese employees, to which it contributed with an additional fund. The proceeds were donated to the China Charity Foundation.
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Russia
The Company funded a technical college for installers, to promote vocational training and facilitate access to the labour market.

Our commitment in Italy

The Groups social responsibility is reflected in its activities and partnerships in Italy, in particular in the Marches region, where the companys history is deeply rooted. Ariston Thermo group has been supporting the Foundation Aristide Merloni since it was set up in 1963 to promote social and economic development in the region. The Group has been equally supporting the Poiesis Festival since its first edition in 2008. Every year, for three days, the festival hosts a whole series of cultural events (poetry, art, music, cinema and theatre) in Fabriano. At Christmas time, the Group donated an ambulance and a high-tech optical surgical microscope to the local health unit of Fabriano. The Group organized activities in support of the people of Abruzzo hit by the earthquake. The Group helped funding a major exhibition on Gentile da Fabriano, the first of its kind to be held in the painters hometown. In 2011, it joined the Elco-Legambiente partnership to improve public awareness of new energy efficient technologies, by taking part in the Trenoverde, monitoring campaign on acoustic pollution, and in Legambientes European Solar Day campaign on solar technologies. In the last two years, the company has also contributed to founding the Higher Technical Institute for Energy (Istituto Tecnico Superiore per lEnergia), one of the first of its kind in Italy.

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Vision
To our stakeholders Energy efficiency Continuous improvement

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Vision

Ariston Thermos goals and strategic pillars for leading the future:

Global growth both in emerging and more mature markets Energy efficiency and renewable solutions Continuous improvement and the pursuit of excellence A top management team

By 2020 the Group aims to have 80% of its business coming from high efficiency and renewable solutions. Ariston Thermos ability to combine energy efficiency with innovation and design is shaping the future of the thermic comfort industry.

In 2011, we reached the 30% target

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To our stakeholders
Ariston Thermo is constantly looking ahead. What are its goals? In order to identify future goals, we need to know where we are coming from. Over the last decade, the companys turnover has tripled and our presence has spread worldwide. We have developed a highly skilled team, reinforcing our managerial culture, improving our industrial footprint, achieving major economic and financial targets and incorporating larger businesses. Today Ariston Thermo is a global leader with 87% of its turnover coming from outside of Italy. We view this solid position as a leverage to achieve worldwide growth. We will grow by focusing on energy efficiency and renewable solutions with cutting-edge products. In emerging markets, we will grow by consolidating our industrial and commercial presence and promoting our business model, our brand and products. What are the opportunities ahead in the current complex economic scenario? In relation to the competition, Ariston Termo enjoys an excellent, well-balanced position both geographically and in the various business areas. We will aim at creating added value in some areas and upsizing in others, since in our sectors size is key. From a geographical point of view, we see opportunities both in Europe, where we have more ambitious energy saving goals in line with the current evolution of our industry, and in emerging markets such as China, India, Russia and many others. With regards to products, we will focus on technological synergies. Is energy efficiency still one of your strategic pillars? Our industry is one of the largest energy consumers, therefore it is our major responsibility as a company to ensure the same level of comfort with lower energy use. Energy efficiency and renewable-based energy are still at the core of our research and strategy with a view to providing increasingly green and eco-friendly solutions. In this way we will also meet the needs of our most demanding clients and we will ensure compliance with increasingly rigorous environmental regulations. Is there a formula to beat the competition? There are no magic formulas. Our task is to pursue excellence and strive for continuous improvement in all areas, starting from our people. Today we have a highly skilled management team in our company and a rewarding multinational working environment. Our corporate governance has been recently reinforced with the appointment of a new CEO, no longer a family member. Our clear business leadership and our familys strong commitment ensure our long-term vision and provide the basis for further growth and development. Interview to Paolo Merloni, Executive Chairman

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Vision

Energy efficiency
The challenge of sustainable growth
There is increasing pressure worldwide for a major shift in energy and environmental trends in favour of energy saving measures.
From 1990 to 2010, the global energy production has increased by approximately 40%, with an annual average CO2 emissions growing from 21 Gt to 29 Gt. Energy is the engine of the worlds economic and social development; by 2035, primary energy consumption, both residential and commercial, is expected to increase by 30%. This upturn is mainly driven by consumption in emerging countries. With CO2 emissions also expected to rise by 20%, the planets sustainability is at risk.

Global energy consumption by region*

18,000 mtoe 12,000 6,000 0 1990 China United States India European Union 2010 2035 Other non-OECD Other OECD

* Source: World Economic Outlook 2011, IEA

Alongside the measures being discussed within institutions and administrations, a growing role is assigned to the strategic choices of the industry, which in some cases act to promote green industrial policies for sustainable growth. In Europe the transport sector accounts for 31% of the total energy consumption and the industry for 28%. Thermic comfort accounts for 30% (21% for residential use and 9% for the service sector). In this light, the contribution of thermic comfort products to the reduction of energy consumption and the containment of CO2 emissions is of paramount importance.

Energy consumption in Europe - 2010

Transport 31% Other 11%

Thermic comfort 30%

Industry 28%

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We need to act to deliver advanced energy saving solutions.

Considering that an average energy saving of 35%* is easily achievable with our products, the potential impact on the environment of introducing high efficiency and renewable technologies into the European dwelling park is the following.
Potential impact on total energy consumption: Yearly energy saving per product

EU Park

Water heating Heating

230 million products 180 million products

+ 500 kWh + 5,000 kWh

>1.000 TWh a saving equal to:

Yearly energy production of 260 thermoelectric power plants, or (800MWp operating 5.000 hours per year) Yearly energy consumption of 85 million cars, or (Segment B car travelling 15,000 km per year) CO2 yearly absorbed by 30 million hectares of forest (1ha=500 trees, 1 tree absorbing 12 kg of CO2 per year)

* Based on primary energy consumption data, considering an average EU park mainly made of electric and gas products.

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Vision

Energy efficiency
Solutions and innovations to achieve maximum energy savings
We are working to design high efficiency and renewable products aimed at optimizing electricity and fossil fuel consumption. Since 2011 the Company offers the most complete range of heat pump water heaters and innovative hybrid systems for heating and water heating on the market.

Sun Solar thermal technology is the simplest and most effective way of converting solar energy into hot water.

Water heating product range

Air / Ground / Water Heat pump technology uses original heat sources, such as air, ground and water, to heat water and houses.

% Energy consumption*

EU average installations

Energy Recovery Renewable energies are integrated with technologies that allow for maximum efficiency and minimum consumption. Condensing and micro co-generation technologies capture the energy stored in fossil fuels, recovering energy waste and generating additional heat and electricity.

100 90 80 70 60 50 40 30 20 10 0

% Energy consumption*

Up to -20 EU average installations

High efficiency water heaters

Up to -70 Solar thermal

Up to -75 Heat pump water heaters

Heating product range

100 90 80 70 60 50 40 30 20 10 0

Up to -20 Up to -35 High efficiency conventional boilers Up to -55 Condensing boilers Electric heat pumps Up to -55 Up to -60

Micro CHP

Energy savings

Energy consumption

* Based on primary energy consumption data, assuming EU installations made up mostly by electric and gas products. 24

Gas heat pumps

Water heaters Thanks to technical innovations and advanced functions, our cutting edge electric and gas water heaters can deliver up to 20% energy savings through increased energy efficiency. Shape Premium is an innovative water heater equipped with high thermal insulation and intelligent ECO control to adjust energy consumption based on users needs. Heat pump water heaters The new air-to-water Nuos heat pump is the ecological evolution of traditional water heaters. The integration of heat pump technology to our water heaters allows for energy efficient solutions that extract the heat directly from the air and use it as a renewable source to produce hot water, thus achieving energy savings up to 70%. Solar thermal Solar thermal systems capture renewable energy from the sun and deliver up to 70% of hot water needs and up to 20% of heating needs. Our wide range of solar thermal solutions is designed to meet the world market demand. The innovative Auron DF vacuum tube collector allows for highly efficient harnessing of solar energy, even with low solar radiation and mild outside temperatures.

Heat pumps Electric heat pumps and new gas heat pumps convert energy from the environment in heating at zero cost and with zero emissions, with a saving up to 55% on energy and CO2 emissions. Aerotop G is the air-to-water heat pump for heating and water heating, designed to maximize performance with reduced noise. Boilers The range of conventional condensing boilers for retrofit installations and new homes delivers up to 35% energy savings. Talia Green Hybrid is a system combining a condensing boiler with an electric heat pump, that automatically selects the most efficient generator according to the systems heat requirements and working conditions. Micro co-generation systems (CHP) At the forefront of our R&D activities, the new micro co-generation system use solid oxide fuel cells or Stirling engines. They produce electric power and heat exactly where they are needed and allow for a 55% saving on average European installations.

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Vision

Energy efficiency
Our contribution to the planet
Energy efficiency is at the core of the Groups sustainable growth vision. For several years, Ariston Thermos has been committed to developing new renewable energy solutions, improving efficiency in conventional products and investing in new projects and research.
Technology at the service of home comfort, energy saving and environmental protection Solutions We offer solutions that incorporate systems and services, capable of meeting customers varied requirements: energy savings, reduced environmental impact, excellent comfort, quality and safety of operation. Integrated or combined systems capable of efficiently bringing together different energy sources (such as a boiler and a solar panel) taking into consideration variables such as the different types of buildings, whether installing new or as replacement, climate factors and users specific requirements. Constant, widespread support, ensuring the perfect operation of all installed equipment, eliminating inefficiencies for the best heat comfort.

Systems

Service

International recognition

Our products and systems (including Nuos Evo Split Ariston, an air source water heater, and Aerotop G Elco, air-water heat pump for outdoors) will be taking part in the Path to Efficiency & Innovation (Percorso Efficienza & Innovazione). The purpose of the award, created by MCE in 2010 and revived in 2012 as part of NEXT ENERGY initiatives, is to select the solutions that meet rational use of energy goals, following evaluation by the Scientific Committee chaired by Milan Polytechnic.

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Ensuring access to the best technologies anywhere in the world Ariston Thermo manufactures and markets energy efficient products worldwide, designed and manufactured according to the best available technologies. The Group brings essential technology solutions to thousands of peoples lives, to the farthest reaches of the world. Access to the best technology helps reduce global energy consumption, which benefits the planet. About 40% of Ariston Thermo sales are concentrated in rapidly developing countries.

Outlook for growth in emerging markets In 2011, most Emerging Countries underwent stable or growing economic conditions in strong contrast with the downturn in mature markets. By strengthening its presence through investment in Russia, China and India, Ariston Thermo is pursuing development projects which confirm these areas as strategic for the Groups expansion. The other rapidly developing markets also represent a significant phenomenon for the Groups brands. Thanks to Ariston Thermo, more and more people have access to essential goods, such as water heaters.

Vietnam Focus
Ariston Thermo has been operating in Vietnam since 1988. In 2004, with the opening of the factory in Hanoi, it strengthened its industrial presence to become a leader in water heating in South East Asia. In keeping with its values, Ariston Thermo places personal safety and respect for the locations in which it operates at the core of its activities. For years, Ariston Thermo has been cooperating with the Vietnamese Ministry of Industry and Trade (VNEEP-MOIT) through activities that involve the local population in energy efficiency issues. Over the years, many initiatives have been organised, including training courses in schools and participation in national television programmes to raise awareness of energy conservation and safety issues.

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Vision

Continuous improvement
Valuing talent
With the conviction that personal qualities and management skills are crucial factors in any companys success, Ariston Thermo has built a quality management team by valuing the talents of the best people in the company and bringing in highly skilled external staff.

6,700 1,550

employees

International vocation and entrepreneurial approach Ariston Thermo encourages and promotes entrepreneurship, flexibility, and the ability to reconcile the different cultures within the company on a daily basis. Unwavering commitment and determination to achieve are a trademark of all the Groups employees.

For Italian companies, the purpose of the Code is also to introduce and enforce the relevant principles and rules of conduct for the prevention of offences set out in Italian Legislative Decree. N. 231 of 8 June 2001. In its quest to improve the internal control process, the Group has also set up an Internal Auditing function and an Internal Audit Committee to constantly monitor compliance with legislation and business practices in Italy and abroad.

in Italy

in other European countries

3,100

in Asia and the rest of the world

2,050

An ethical company focused on the long term In 2008, the Group adopted a Code of Conduct that summarises the rules of conduct and behaviour that company employees, directors, consultants and other Ariston Thermo contractual counterparties must comply with. Fairness, transparency, diligence, honesty, mutual respect and loyalty are the principles that guide the Groups activities.

100,000

hours of training per year

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Opportunities for growth

Ariston Thermo strives to attract the best professionals on the market and to grow its talents internally. Its international dimension and constantly evolving nature offer many opportunities for professional growth within the Group. A clear strategic vision, combined with a flexible organisation based on increasingly integrated processes, allows every individual to express their own excellence. Ariston Thermo recognises the key role of human resources and believes that, when it comes to achieving business objectives, people are the most valuable resource. Respect, protection, equal opportunities, fairness, mutual trust and safety are the foundation of every professional relationship and opportunity for growth. Through its contacts with the most prestigious universities, the company seeks and recruits young graduates to be trained according to the professional profiles the company offers. Approximately 100,000 hours of training are provided to our employees each year.

Contract types - 2011

Permanent employees 91% Temporary employees 9%

Employment Sectors - 2011

Industrial 41% Staff 15% Product development 4% Marketing, sales and services 40%

Employees by qualification - 2011

Executives and employees 47%

Workers 53%

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30

Performance
Global objectives Customer service Sustainability Industrial excellence

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Performance

To deal with the ambitious goals the Group has set for the future, specific priorities have been defined to steer our action in the coming years:

Improve our ability to tailor our customer service, through more in-depth knowledge of our clients needs, along the lifecycle of our systems. Strengthen our brands equity by building on conventional media and new digital communication technologies. Increase our efforts and investments to develop high energy efficiency systems and solutions, to achieve Groups sustainability targets. Improve the quality of our products, systems and services, by investing in technology, and above all sustaining our people continuos professional growth.

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Global objectives

d exceeded Thermo has achieved an For the third year Ariston fitability. ious, of growth and pro its objectives, yet ambit management team it of a high performing These results are the fru up to become over the last few years has been consolidating that oup. a major asset to the Gr the ability idly changing scenarios light of the current rap In the our plans sharp in implementing to be adaptive, fast and erm success. to ensure mid-to long-t a key competitive factor will be ns and consolidated s grown in many directio ent years the Group ha In rec r industrial erall productivity of ou ative capabilities. The ov several innov en redesigned ved, processes have be has significantly impro system been made. ative technologies have re investments in innov and much mo while improving le to gain market share on Thermo has been ab Arist its ability to innovate e Group has revamped the quality of its mix. Th d increasing reducing emissions an s and solutions aimed at system t only organically th has been achieved no energy efficiency. Grow that have quisitions and mergers also through targeted ac but ll ability to compete. strengthened our overa , however, we need future growth objectives Looking to the Groups already achieved, olidating what we have ep building on and cons to ke and decisively. apply new skills quickly but also to acquire and done over w challenges as we have If we can meet these ne r and will continue oup will become stronge last three years, the Gr the for all its people. for professional growth to provide opportunities

Aldo Bisio Chief Executive Officer

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Performance

Customer service
An eco-friendly approach from pre-sale service to after-sale assistance
For highly energy efficient comfort, we offer our clients an extensive, skilled customer service coupled with high quality products and innovation. To our Authorized Partners we provide professional technical support, training, intelligent software and logistics systems, marketing and financial solutions. We also offer a full technical maintenance service, and our integrated logistics system means spare parts are delivered promptly. Technical support: quality, efficiency and safety The Group employs highly qualified staff. In addition to legally required scheduled maintenance, Elco engineers ensure continuous product support and regular monitoring to streamline performance. In 2011, a project was launched to rationalise technical support staff travel, improving customer service quality while reducing miles travelled. The project also includes road safety training and awareness, which the Group additionally contributes to via the modernisation of its company car fleet. From 2011, the web site professionalteam.net has also been live, providing designers and installers with technical information on the full range of products and real time tracking on customer order progress.

Customer Relationship Management Project

In 2011, Ariston Thermo launched a CRM (Customer Relationship Management) project, to determine its customers needs and manage relations more effectively. Two pilot markets are involved to date: Elco Switzerland and Ariston Italia. The project involves 4,000 installers, 2,000 designers and nearly 200,000 end users.
Pre Sale Sales

New Replacements Add-ons Support

Know-how and support for customer needs to better manage the installed products line.

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Our products are purchased and used in over 150 countries

Ariston Thermo has improved the quality of heating comfort by offering high technology, quality and efficiency products with a limited environmental impact, features that over time have helped achieve and consolidate consumer recognition and loyalty towards the Groups products.

Over 6 million
households choose us every year

More than 200 million

people experience the comfort of Ariston Thermo products

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Performance

Sustainability
Sites performance
ISO 9001 Quality Management Certification

ISO 14001 Environmental Management Certification

Social responsibility and industrial development: an objective reached with the publication of the Environmental, safety and quality policy signed by the director of each plant, a document reaffirming the importance of workplace safety, product quality and environmental protection, as major factors for achieving sustainable development. Today we are completing the certification plan for the Groups plants according to the ISO 14001 standard, which ensures compliance

with current legislation, promotes pollutionprevention and promotes continuous improvement in environmental performance. These plants also apply OHSAS 18001 standards: the Group guarantees health, safety and hygiene in the workplace, both through constantly updated and perfected management systems, and by spreading a health and safety culture with a view to preventing and effectively managing occupational hazards.

BS OHSAS 18001 Occupational Health and Safety Management System Certification

Reducing packaging
In 2011 a project was launched to reduce and change the packaging process for various products. By totally eliminating Styrofoam (replaced by a 100% cardboard, biodegradable coating pasted to the product with water-based paint), both packaging waste and the bulk of the product were reduced, achieving greater efficiency in transport.

Reducing our product packaging by 15% and rationalising the use of space meant delivering 25% more boxes in each container shipped.

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Environmental impacts of plants

The environmental impact of plants is usually associated with component assembly and is mainly related to energy consumption, water consumption and waste production in the Groups major plants. The performance of 4 of the Groups major Italian plants is shown by way of example.

Genga (production of electric water heaters) Energy consumption Water consumption Waste production Osimo (production of boilers) Energy consumption Water consumption Waste production 22,397 GJ 74,936 m3 437 t 43,040 GJ 725,946 m3 3,643 t

Serra de Conti (production of solar thermal panels) Energy consumption Water consumption Waste production 2,489 GJ 651 m3 67 t

Arcevia (production of components) Energy consumption Water consumption Waste production 42,450 GJ 19,695 m3 530 t

Installation of photovoltaic systems at Osimo, Genga and Borgo Tufico plants For several years, Ariston Thermo has been providing its plants with photovoltaic systems, particularly in Italy, with the installation of panels at

the Osimo, Genga and Borgotufico plants, and an ongoing feasibility study at Resana. Installed capacity currently amounts to 1,483 kWp for an area of 10,000 square metres, meaning a saving of around 900 tonnes per year in terms of avoided CO2 emissions.

Environmental impact of our products

Every Italian citizen generates about 16kg of WEEE (Waste Electrical and Electronic Equipment) per year, a continually growing amount, with a major impact on the environment. Ariston Thermo is a founding member of Ecodom, Europes largest national consortium for transportation management and treatment of end of life appliances. Thanks to Ecodom, 86,000 tons of WEEE are handled for a saving of over 600,000 MWh in electrical energy with a consequent reduction in emissions of about 1,600,000 tons of CO2*
*Equivalent effect to that produced by a forest the size of the entire province of Milan in one year.

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Performance

Industrial excellence
The Quality 360 project
Launched in 2011, the project aims to improve product quality, technical support and sales processes through a review of all procedures and stages of product development (development process control, design for quality, lab tests), vendor management (strict selection criteria, certification, evaluation index) and after-sales service (training of selected Technical Support Centre teams, standardization of process management procedures, traceability of finished products ). The goal is to reduce non-quality costs by approximately 27% by 2014 through new organisational and development processes.

Quality Grand Prix

Annual internal competition among all Ariston Thermo Group plants, that evaluates performance based on indicators relating to environmental and quality factors. In 2011 the prize was awarded to the Wuxi plant, in China.

Welcome and transparency

Over 2,000 guests expected for 2012 of which around 50% non-Italian
With Paths of Comfort, Ariston Thermo opens its plants doors Guided tours inside the plants are an important opportunity to establish direct contact with partners and showcase the Groups industrial capacity. In 2011, a guided theme trail was conducted in three different languages to accompany guests during the visit to the establishments areas of excellence and an innovative educational tour, aimed at technicians, engineers and planners: an heating plant and solar system, built with Ariston Thermo products, for heating the office building and for providing domestic hot water to the plant.

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The WCM project

Developed in 2011, World Class Manufacturing (WCM) is a revolutionary manufacturing system covering all the Groups plants. The goal of WCM is lean, flexible and dynamic manufacturing, in a perspective of continuous improvement in manufacturing performance and full customer satisfaction. The key principle is identifying and eliminating all types of wastage. Evaluating performance indicators, the audit system and involvement and motivation from the people are the keys to successfully improving performance.

The W.C.M. programme: eliminating waste

1
Principles Method Focus

Working place organization

Quality Control

Maintenance

Logistics

Eliminating losses in the production process Overall industrial engineering Productivity

Reducing scrap and rework Overall quality control Quality improvement

Reducing unplanned downtime Total productive maintenance Technical efficiency

Integrated supply chain from customer to supplier Real-time Approval of the service

Goals

Zero losses

Zero errors

Zero faults

Zero stock

World Class Manufacturing project

2011 - three pilot sites: Osimo, Genga and Arcevia 2012 - plants involved: Kerkrade, Chartres, St. Petersburg, Wuxi WCM Training: 379, 000 invested, over 16,000 hours training in pilot plants, over 40 hours training per employee.

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Brands and products

Thermic comfort Burners Components

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Brands and products

Thermic comfort
Energy efficiency and integrated systems
The evolution of our offer is driven by the ongoing research into high efficiency technology, products and solutions designed as parts of an integrated system, where each component interacts to achieve the highest level of energy saving, maximum comfort and respect for the environment.

A complete range of products, systems and services for heating and water heating

Water heaters
Storage and instantaneous Electric and gas

Solar thermal
Collectors: vacuum, tube and flat glass Integrated solar cylinders Systems: residential and commercial

Boilers
Residential and commercial Wall-hang and floor-standing Conventional and condensing Gas and oil

Heat pumps
Heating and water heating Air-to-water and water-to-water

Air conditioners
Residential and light commercial Commercial and industrial

System components
Controls: on/off room regulation, thermoregulation and remote control Cylinders: storage, single and double coil, interstice Hydraulic accessories

Burners
Residential Commercial Industrial

Services
For professionals For consumers

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Solar thermal

Controls Boiler Heat pump

Hydraulic components Cylinder

Advanced research and innovation

Heating systems, air conditioners and networked home appliances, sensor controlled lighting: the smart home. A dwelling designed for zero environmental impact and low operational costs, capable of using renewable energy (solar, wind) and self-generated energy, via micro co-generation processes, with rational electricity and heat consumption. The proportion of excess self-generated energy is given to the networks, through the smart grid, an intelligent network enabling interaction between producers and consumers and adjusting electric energy production and consumption.

Ariston Thermo is meeting the challenge of the future with two pilot projects:
EFESO project
Production of micro-CHP type next-generation boilers for residential use to produce electricity and heat (micro co-generation) using solid oxide fuel cell technology to achieve high efficiency, reduced environmental impact, noise reduction and reliability.

The HOME LAB project . The future has found home

Ariston Thermo is one of the promoters of Home Lab, the new Italian research consortium on home automation launched in Fabriano on the initiative of eight founding members, including Marche Polytechnic University.

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Brands and products

Efficient innovations in heating and water heating, for everyday comfort

Ariston products are designed to meet the demands of modern life. In addition to a wide range of intelligent boilers, water heaters and air conditioners, we offer a range of integrated solar systems and heat pump water heaters, allowing users to benefit from the latest renewable energy sources. In addition to saving energy and optimising comfort, the elegance of Ariston design ensures these products suit any environment.

Ariston combines quality and energy efficient technologies. Its products stand out for their Italian design and easy, intuitive operation. The Ariston brand has been consistently greeted with trust by millions of families around the world, for over 50 years.

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responsible design
The distinctive features of Ariston design are the quality and taste typical of an Italian home. Ariston has worked with renowned Italian designers for years, giving shape to their ideas and creativity in functional and practical ways: Ariston attention to design makes everyday life easier and more comfortable.

A global leader in water heaters, Ariston stands for innovation, design, performance and energy efficiency. VELIS enables reduced waiting-time combined with significant energy saving.

The Ariston NUOS EVO SPLIT air source water heater extracts heat directly from the air to convert it into hot water, saving energy without compromising comfort.

The Ariston GENUS PREMIUM EVO boiler stands out for its innovative features that combine maximum energy savings and comfort and ease of use.

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Brands and products

Advanced heating solutions, with a first-class level of service

Whether they are installers, specifiers, planners, architects, operators or manufacturers of prefabricated houses, every Elco customer enjoys individual advice on the most appropriate and energy efficient solution. Customers can choose from a wide range of condensing units, burners, solar systems, heat pumps and solid fuel boilers for domestic and commercial use. All the elements are simple to install and designed to work together as an integrated system. Elco is supported by the best of after-sales service in the sector. From the initial consultation, through maintenance, to online monitoring, we provide our customers with 24 hour a day, 365 day a year technical support, to ensure that our customers heating systems function reliably and efficiently.

Elco combines high quality consulting, products, systems and services in a comprehensive offer that precisely meets customers needs.

Marien Ludwigshafen Hospital.

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over 1.7 million

heating systems installed in Europe

2 gas condensing boilers R3410 in cascade.

Ossendorf public swimming pool, Cologne.

2 condensing boiler R607 in cascade integrated with two co-generators.

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Brands and products

The reference for professionals

Chaffoteaux has been working alongside professionals to simplify their work and support their growth with a complete range of multienergy, accessible and eco-performance solutions for heating and domestic hot water production. Integrating renewable energy sources, ease of installation and maintenance drive product development at Chaffoteaux, which supports its trade customers with a dedicated training programme and excellent pre and post-sales service.

For 100 years Chaffoteaux has been synonymous with innovative heating, associated with ease of installation and maintenance.

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GAS

up to 75%
energy saving
We develop multi-energy solutions to support the use of renewable energy and reduce the environmental impact of our products.

SUN

AIR

ELECTRICITY

AQUANEXT heat pump produces hot water using external air as a heat source, even under unfavourable atmospheric conditions, ensuring maximum comfort with minimum energy consumption.

PHAROS ZELIOS combines condensing and solar technology to achieve energy savings and reduced CO2 emissions. This is the best solution for new buildings and to replace old free standing boilers.

Designed to reduce energy consumption and CO2 emissions, the innovative TALIA GREEN HYBRID Combines the technology of a gas condensing boiler with that of an air-water DC inverter heat pump. Energy Manager, the intelligent heating management system, allows excellent eco-performance.

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Brands and products

Racold: the hot water specialist

Racold is the Ariston Thermo Group leading brand name on the Indian water heating market. Racold now boasts a full range of electric, gas and solar thermal water heaters, making the company the No. 1 in manufacturing and marketing water heating products and solutions for the domestic, industrial and commercial sectors in India. The first to introduce a polypropylene product, energy labeling and a digital timer onto the local market.

Racold products were the first to obtain quality and operational certification in India according to the following standards: IEC (International), EC (European), PSB (Singapore), SIRIM (Malaysia), and ROSTEST (Russia).

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national energy

conservation award
In 2011, for the second consecutive year, Racold Thermo Ltd won the prestigious institutional award in the electric water heaters category, confirming Racold as most efficient in energy consumption among local manufacturers in the industry.

The benefit of SPHP technology: maximum resistance to corrosion and to high pressure; high thermal insulation; longer-lasting magnesium anode.

Racold, a synonym of quality in water heater manufacturing in India, presents ETERNO DG, a summary of performance and energy efficiency in electric water heaters with a unique design.

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Brands and products

Burners
Advanced combustion in the heart of your system
Our brands Elco, Cuenod and Ecoflam offer quality and precision where they are most needed, during the combustion process. Together they provide a complete range of burners suitable even under the most demanding conditions throughout the world. The solid design and construction ensure complete operational reliability. The advanced power control systems, variable geometry flame, versatility in the use of liquid or gaseous fuels derived from biomass make the burners easily adaptable to any application. Our burners are constantly renewed to reduce energy consumption, NOx emissions and noise levels. We keep our sales and customer service network up to date, to provide a fast and efficient pre and post-sales service to users and installers. We offer initial consultation services, servicing, planned maintenance and supply spare parts worldwide.

Our burners offer a wide range of solutions for industrial applications and for residential and commercial heating

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low NOX emissions

The NEXTRON range extended up to 10 MW. Advanced burners for high power commercial heating and industrial applications. Our new models fully maintain the main product features and continue to provide high energy savings, high performance, low NOx, a high acoustic comfort level and clean and efficient combustion thanks to the most advanced Elco technologies.

VECTRON is a range of high quality burners for residential and commercial heating. The upgrade was completed with the introduction of the VECTRON 5 and 6 (gas and diesel) and VECTRON 2, 3 and 4 in electronic version (modules). These burners are all equipped with advanced technologies that ensure ease of use and easy maintenance.

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Brands and products

Components
A leading manufacturer of electric heating elements and thermostats
For decades, Thermowatt heating elements and thermostats have been widely used in household appliances worldwide. The popularity of the Thermowatt brand and of our products come as recognition for high quality materials and cutting edge technology. Our undisputed world leadership is a tribute to choices made, firm commitment to product reliability and the technical expertise of our staff. We work alongside technicians in manufacturing companies throughout the design phase to ensure the final product meets the requirements of both manufacturer and user: performance, safety, efficiency and costawareness.

The quality of our products and reliability of the services we offer have made us t he partner of choice of over 250 manufacturers of household appliances in over 100 countries.

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at the heart

of energy saving

Our washing machine heating element with double thermic protection.

TBS-B is a combined capillary thermostat with a unipolar temperature-control function and bipolar thermostatic safety device.

Among Thermowatts innovations is the T-MEC, a patented mechatronic thermostat with electronic temperature setting and mechanical safety.

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Where we are
Headquarters Ariston Thermo Group Viale Aristide Merloni, 45 60044 Fabriano (AN) Italy T. +39 0732 6011 F. +39 0732 602331 E. public.relations@aristonthermo.com www.aristonthermo.com

Heating Comfort Division Ariston brand Ariston Thermo spa Viale Aristide Merloni, 45 60044 Fabriano (AN) Italy T. +39 0732 6011 F. +39 0732 602331 E. info@aristonthermo.com www.ariston.com

Elco brand Elco Shared Services GmbH Hohenzollernstrasse, 31 72379 Hechingen Germany T. +49 7471 187-0 F. +49 7471 187 -111 E. info@de.elco.net www.elco.net

Chaffoteaux brand Chaffoteaux sas 5, rue Pleyel Le Carr Pleyel 93521 Saint Denis Cedex (Paris) France T. +33 1 55 84 94 94 F. +33 1 55 84 96 10 E. info@chaffoteaux.com www.chaffoteaux.com

Components Division Thermowatt spa Via S. Giovanni Battista, 21 60011 Arcevia (AN) Italy T. +39 0731 9881 F. +39 0731 97593 E. info@thermowatt.it www.thermowatt.com

Burners Division Ecoflam Bruciatori spa Via Roma, 64 31023 Resana (TV) Italy T. +39 0423 719500 F. +39 0423 719580 E. export@ecoflam-burners.com www.elco-burners.com www.cuenod.com www.ecoflam-burners.com
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aristonthermo.com

Published by: Ariston Thermo Group Corporate marketing services March 2012

Design: Opera Print: Tecnoprint

Printed on ecological paper Fedrigoni

Ariston Thermo Group Viale Aristide Merloni, 45 60044 Fabriano (AN) Italy T. +39 0732 6011 F. +39 0732 602331 E. public.relations@aristonthermo.com aristonthermo.com

English edition