Ariston Holding N.V. ANNUAL

Business / Consolidation

iii. Basis of consolidation The consolidated financial statements include the financial statements of the Parent Company and of the Italian and foreign subsidiaries. For the purposes of preparing IFRS‐compliant consolidated financial statements, all consolidated companies have prepared a specific reporting package, at the same reporting date, based on the IFRS Accounting Standards that the Group has adopted and which are described below, entailing the reclassification and/or adjustment of their accounting data prepared for disclosure purposes on a local level. The consolidated financial statements reflect the financial position and performance of the Parent Company and of its direct and indirect subsidiaries. In particular, consolidated entities are those under the direct or indirect control of Ariston Holding N.V., with the majority of voting rights at the general meeting, or through the exercise of a significant influence over the financial and operating policies of the companies/entities, thus obtaining the related benefits, even without regard to equity ownership.