2012 Half year financial report

Below is a breakdown of this item:

In thousands of Euros
1st half
2012

1st half
2011
Change
Employee costs 10,831 9,579 1,252
External maintenance and cleaning services 3,694 3,623 71
Energy, telephone and telex 10,797 9,873 924
Postal expenses 313 275 38
Commissions payables 465 438 27
Advertising and promotion 16,152 18,529 (2,377)
Technical, legal and tax consultancy and services 12,824 15,574 (2,750)
Company boards operating costs
1,201 1,189 12
Insurance 1,876 1,898 (22)
Outsourced manufacturing 10,804 13,834 (3,030)
Transport costs and spare parts 20,934 23,608 (2,674)
Sundry commercial expenses 8,086 8,610 (524)
Expenses for public relations
2,043 1,203 840
Product warranty costs 8,281 10,571 (2,290)
Bank costs and factoring charges 2,942 2,853 89
Costs for leases and rentals 9,385 7,363 2,022
Other 8,741 8,612 129
Insurance from Group companies 25 66 (41)
Services from companies of the Group 1,035 1,092 (57)
Costs for leases and rentals from Group companies 883 798 85
Total costs for services 131,312 139,588 (8,276)

Savings were mainly due to the reduction in the volume of activities, as well as the manufacturing of aluminium components for engines produced at Pontedera becoming an in-company process.

Costs for leases and rentals include lease rentals for business properties of €/000 4,610, as well as lease payments for car hire, computers and photocopiers.

Third party work of €/000 10,804 refers to the processing of production parts. The item “Other” includes costs for temporary work of €/000 437.