Consolidated net sales € 343.1 million (351.7 million in Q1 2011)

 EBITDA € 33.0 million (33.7 million in Q1 2011)

 EBIT € 13.0 million (12.2 million in Q1 2011)

 Profit before tax € 5.8 million (5.6 million in Q1 2011)

 Net profit € 3.2 million (3.0 million in Q1 2011)

 Net debt € 422.4 million

 

Mantua, 8 May 2012 – At a meeting today in Mantua chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the quarterly report at 31 March 2012.

In the first quarter of 2012 the Piaggio Group had to face both weak demand in the European two-wheeler market and a contraction in the light commercial vehicle sector throughout the Group’s main markets.

Despite the above difficulties, the Piaggio Group’s financial results are very satisfactory overall and in line with the first quarter of 2011. This performance stemmed not only from the Group’s strong position in EMEA countries – through the constant consolidation of its leadership in Europe and its increased market share in the main scooter and motorcycle segments – but also (and above all) as a result of the globalization strategy regarding investments, production and sales the Group has been pursuing with determination.

Group consolidated net sales in the first quarter of 2012 amounted to 343.1 million euro, compared to 351.7 million euro in the first quarter of 2011.

In the first three months of 2012 the Piaggio Group shipped a total of 142,300 vehicles worldwide, compared to the 149,000 vehicles shipped in the first quarter of 2011.

In the two-wheeler sector, with 88,600 vehicles shipped and 233.5 million euro of net sales, in the first three months of 2012 Piaggio Group reported improvements of 5.9% and 8.5% respectively, compared to the first quarter of 2011. The decrease in sales in the EMEA area – where as a whole the market recorded decreases of 8.3% in the scooter segment and 7.7% in the motorcycle segment, compared to the first three months of 2011 – was offset by strong Group growth in Asia, where Group shipments and net sales increased by 58.0% and 54.8%, respectively, and in America, where shipments and net sales increased by 69.8% and 156.5%, respectively.

In commercial vehicles, Group sales were affected by the simultaneous downturn in all the main markets (with overall decreases of -38.7% in Italy, -18.7% in Europe and -8.8% in India). In this segment, Piaggio Group shipped 53,700 vehicles in the first quarter of 2012 (-17.8%, compared to the first three months of 2011) with net sales for the period of 109.6 million euro (-19.7%). Piaggio Vehicles Private Ltd. (PVPL) confirmed its position of main player on the Indian domestic three-wheeler market, with an overall share of 33.6%. PVPL’s export performance was notable, increasing by 33% from about 1,500 units in the first three months of 2011 to around 2,000 units in the first three months of 2012.

The industrial gross margin for the period was 101.0 million euro, down 1.6 million, compared to the first quarter of 2011, while the net sales margin rose to 29.4% (29.2% in the first three months of 2011).

Capital expenditure in 2012 amounted to 87.9 million euro, some 2.5 million euro less than the corresponding period of the previous year, confirming the Group’s constant focus on reducing costs and maintaining high earnings and productivity levels.

Consolidated EBITDA in the first quarter of 2012 amounted to 33.0 million euro, slightly down (about 0.7 million euro) on the figure of the first quarter of 2011. The EBITDA margin was 9.6%, in line with the figure recorded in the first three months of the previous year. Net of the exchange rate effect, in the first quarter of 2012 Ebitda grew by 3.3% compared to the first quarter of 2011.

Piaggio Group EBIT in the first three months of 2012 was an improvement on the first quarter of 2011, with consolidated EBIT amounting to 13.0 million euro, up by 0.8 million euro on the corresponding period in 2011. The EBIT margin was 3.8%, an increase on the 3.5% of the first quarter of 2011.

In the first quarter of 2012 Piaggio Group recorded a profit before tax of 5.8 million euro, slightly up on the 5.6 million euro of the same period in 2011. Taxes for the period are 2.6 million euro, or 45% of the profit before tax.

The first quarter of 2012 ended with a net profit of 3.2 million euro, up on the 3 million euro of the first quarter of 2011.

Net debt at 31 March 2012 amounted to 422.4 million euro, compared to 335.9 million euro at 31 December 2011. Compared to the first quarter of 2011, net debt increased by some 16 million euro, primarily as a result of the increase in investments (+38%) by the Group to develop its industrial and commercial operations on an international scale. When compared to 31 December 2011, the increase of some 86.5 million euro is in line with previous years and is due to the seasonal nature typical of the two-wheeler business, which is known to absorb financial resources in the first part of the year and generate them in the second.

Shareholders’ equity at 31 March 2012 amounted to 448.6 million euro, against 446.2 million euro at 31 December 2011.

 

* * *

 

Events after 31 March 2012

11 April 2012 – After winning the tender pursuant to article 105-107 L.F., the purchase agreement relating to the “Tecnocontrol” company in Pontedera was signed for an overall value of 11,323,000 euro.

13 April 2012 – The Piaggio & C. S.p.A. annual general meeting appointed the new Board of Directors, which shall remain in office for three years, until the approval of the financial statements at 31/12/2014.

The Board of Directors has 11 members, chosen from the list submitted by the majority shareholder Immsi S.p.A.: Roberto Colannino, Matteo Colaninno, Michele Colaninno, Andrea Paroli, Livio Corghi, Franco Debenedetti (independent director), Daniele Discepolo (independent director), Mauro Gambaro (independent director), Luca Paravicini Crespi (independent director), Riccaro Varaldo (independent director), Vito Varvaro (independent director).

The shareholders also appointed the Board of Statutory Auditors, who are Giovanni Barbara (Chairman), Alessandro Lai and Francesco Arietti as statutory auditors; Mauro Girelli and Elena Fornara as alternate auditors. At the same date, the shareholders appointed PricewaterhouseCoopers S.p.A. as external auditors for the financial periods 2012-2020.

28 April 2012 – Two days after its presentation to the Indian and international press in Bombay, Piaggio Group’s new Vespa production facility for the Indian market was officially inaugurated in Baramati (Maharashtra State). The initial production capacity of 150,000 vehicles/year will be increased to 300,000 vehicles/year in 2013.

Outlook 

The Piaggio Group 2011-2014 Business Plan envisages strong growth in productivity to generate value for customers, employees and shareholders by leveraging the Group’s growing international presence, and boost product cost competitiveness on key processes like procurements, manufacturing and design.

In terms of the business and geographical areas, the Plan sets out a growth strategy consistent with the world economic scenario, targeting decisive expansion on the emerging high-growth markets, accompanied by the maintenance and consolidation of the Group’s leadership positions on the mature markets.

Specifically the Plan envisages:

• in the Asia SEA area, the expansion of the engine and two-wheeler ranges, as well as completion of entry on to the Indonesian market and new Asian markets, assisted by an increase in production capacity at Piaggio Vietnam (300,000 vehicles/year compared with today’s 140,000 vehicles/year);
• entry on to the Indian scooter market, where annual growth rates are high, with the Vespa premium brand and the presentation (on 26 April 2012) of the model for the Indian domestic market, production of which began in the first quarter of 2012 at the new Baramati facility, which was officially inaugurated on 28 April 2012;
• on the mature Western markets, further consolidation of the Group’s European leadership on the two-wheeler market as a whole and in the scooter sector, and growth in sales and margins for motorcycles thanks to the Aprilia and Moto Guzzi ranges;
• in commercial vehicles, higher sales and market share in India (in part through the introduction of new 3- and 4-wheel vehicles in the fastest growing market segments) and in the emerging countries, maintenance of current market positions in Europe, and further growth in exports to African, Asian and South American markets.

 

As far as technology is concerned, the Piaggio Group is focusing strongly on the development – for two-wheelers and for commercial vehicles – of new highly innovative combustion engines, with sharply reduced fuel consumption and emissions. Supported by cooperation among the Group R&D centres in Europe and Asia and the world’s leading universities, Piaggio will also continue development work on vehicles equipped with new-generation electric motors, as well as hybrid engines, a field where the Group is already one of the world’s most advanced manufacturers.

Consistently with the Group’s increasingly global industrial and commercial organisation, strong emphasis will also be given to development of an international system of expertise and research in product marketing and style, with Group centres in Europe, Asia and the USA bringing together the top designers and marketing specialists from all Piaggio Group locations around the world.

* * *

 

The manager in charge of preparing the company accounts and documents, Alessandra Simonotto, certifies, pursuant to paragraph 2, art. 154 bis of Legislative Decree no. 58/1998 (Consolidated Law on Financial Intermediation), that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

 

For more information:

Piaggio Group Press Office

Via Broletto, 13

20121 Milano

+39 02 02.319612.15/16/17/18

press@piaggio.com

www.piaggiogroup.com

 

Consolidated income statement

 

		1° Quarter 2012		1° Quarter 2011
In thousands of euro	Note	Total	of which related parties (Chapter E)	Total	of which related parties (Chapter E)
Net sales	4	343,122	248	351,679	191
Cost of materials	5	201,475	6,737	211,901	7,674
Cost of services and use of third-party assets	6	65,789	1,103	64,873	999
Employee expenses	7	61,854		64,205
Depreciation property, plant and equipment	8	8,654		9,093
Amortisation intangible assets	8	11,329		12,478
Other operating income	9	23,656	43	26,279	182
Other operating expense	10	4,638		3,255
EBIT		13,039		12,153
Share of result of associates	11	1,056
Finance income	12	776		1,126
Finance expense	12	9,464	58	7,209	79
Net exchange-rate gains/(losses)	12	422		(465)
Profit before tax		5,829		5,605
Income tax	13	2,623		2,635
Result from on-going operations		3,206		2,970
Discontinued operations:
Profit or loss from discontinued operations	14
Net profit (loss) for the period		3,206		2,970
Attributable to:
Equity holders of the parent		3,210		2,995
Minority interests		(4)		(25)
Earnings per share (in €) *	15	0.009		0.008
Diluted earnings per share (in €) *	15	0.009		0.008

Consolidated Balance Sheet

		At 31 march 2012		At 31 march 2011
In thousands of euro	Note	Total	of which related parties (Chapter E)	Total	of which related parties (Chapter E)
ASSETS
Non-current assets
Intangible assets	16	652,779		649,420
Property, plant and equipment	17	280,997		274,871
Investment property	18
Equity investments	19	3,532		2,482
Other financial assets	20	9,156		11,836
Non-current tax receivables	21	1,118		976
Deferred tax assets	22	57,557		55,726
Trade receivables	23
Other receivables	24	17,270	405	15,165	405
Total non-current assets		1,022,409		1,010,476
Assets held for sale	28
Current assets
Trade receivables	23	124,990	1,826	65,560	2,453
Other receivables	24	27,958	6,496	28,028	6,456
Current tax receivables	21	31,041		27,245
Inventories	25	267,986		236,988
Other financial assets	26	7,216		0
Cash and cash equivalents	27	107,499		151,887
Total current assets		566,690		509,708
TOTAL ASSETS		1,589,099		1,520,184

 

		At 31 march 2012		At 31 march 2011
In thousands of euro	Note	Total	of which related parties (Chapter E)	Total	of which related parties (Chapter E)
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders' equity
Share capital and reserves attributable to equity holders of parent	29	447,376		445,036
Share capital and reserves attributable to minority interests	29	1,181		1,182
Total shareholders' equity		448,557		446,218
Non-current liabilities
Borrowings due after one year	30	412,184	2,900	329,200	2,900
Trade payables	31	234		235
Other non-current provisions	32	12,536		12,429
Deferred tax liabilities	33	32,359		32,735
Pension funds and employee benefits	34	46,813		46,603
Non-current tax payables	35	1,931		2,539
Other non-current payables	36	5,429		5,948
Total non-current liabilities		511,486		429,689
Current liabilities
Borrowings due within one year	30	133,407		170,261
Trade payables	31	393,054	15,066	375,263	18,903
Tax liabilities	35	18,968		20,920
Other current liabilities	36	70,602	93	64,718	75
Current portion of other non-current provisions	32	13,025		13,115
Total current liabilities		629,056		644,277
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		1,589,099		1,520,184

• As of April 2012, the Group’s Italian market share was 25.0%, stable when compared to April 2011

• The Piaggio Group’s market share in the scooter sector rose to 32.8%, (a growth of +0.2 percentile points)

• In the category of scooters over 50cc, the market share was 29.7% (+1.7 points) thanks to the new Piaggio Beverly and Aprilia SRV 850. 

• The high cylinder segment (over 700cc) grew to 7.8% (+0.5 points) thanks to the success of the new Moto Guzzi V7

Pontedera, May 3^rd 2012- In April the Piaggio Group registered a growth in its market share of the most important segments of the Italian motorcycle market, confirming its leadership thanks to a total market share of 25.0%, stable when compared to April 2011.

Based on data released today by Confindustria Ancma, the Piaggio Group has enjoyed a particularly positive performance in the scooter sector: in April, the Group’s total market share grew to 32.8% (+0.2% when compared to April 2011).  

Even more significant is the growth in the segment of scooters over 50cc, where the Piaggio Group enjoys 29.7% of the market share (+1.7%): the performance in this segment was positively influenced by the success of the new scooters recently launched by the Group, specifically the Piaggio Beverly and the maxi Aprilia SRV 850. In the 50cc scooter segment, Scarabeo was the absolute best seller of the month, along with the Vespa LX and Piaggio Liberty 50, which occupy the second and third positions respectively.

In April, the motorcycle segment where the Piaggio Group enjoys a stable 6% of the Italian market share, the Group’s share of high cylinder motorcycles (over 700cc) reached 7.8%, equivalent to an increase of +0.5 percentage points when compared to April 2011, thanks above all the excellent performance of the brand new Moto Guzzi V7 range.

 

For further information:

Gruppo Piaggio Press Office
Via Broletto, 13
20121 Milano
02.31961215/16/17/18/19
press@piaggio.com
www.piaggiogroup.com

Milan, 3 May 2012 - Piaggio & C. S.p.A. announces the purchase, on 23^rd April 2012 and 24^th April 2012 of no. 188.000 treasury shares at an average price of 1,9001 Euro per share, for a total of 357.227,40 Euro, pursuant to the resolution passed at the Shareholders’ Meeting held on 13 April 2012 (previously communicated as per article 144 bis of Consob Regulation no. 11971/1999).

 Details of the transactions on a daily basis are indicated below:

Date	No. of purchased shares	Average price (euro)	Total (euro)
23/04/2012	150,000	1.8996	284,940.00
24/04/2012	38,000	1.9023	72,287.40

Following these transactions, taking into account the treasury shares already in portfolio, Piaggio & C. S.p.A. holds a total of no. 7.433.142 treasury shares, equal to 1,993% of the share capital.

Two days after the press launch in Mumbai, the official opening of the new Piaggio Group factory in Baramati (State of Maharashtra) to produce Vespa scooters for the Indian market.

Roberto Colaninno: “an event of enormous importance for our Group and for the two-wheeler sector: today the Vespa becomes a truly global vehicle.”

Powered by a new eco-friendly 60 km/litre engine, the Vespa developed specifically for the Indian market is based on the Vespa LX, the outright best-seller on the European two-wheeler market and the best-selling European two-wheeler in the USA. Marketing of the scooter is beginning in India’s 35 largest cities, through a distribution network already comprising 50 exclusive Vespa dealers.

The initial production capacity of the new plant in Baramati is 150,000 vehicles/year; capacity will double to 300,000 scooters/year by the end of 2013.

Mumbai (India), 28 April 2012 – The Vespa, the world’s most famous and best-selling scooter, is making its official debut on the Indian market, sealing the Piaggio Group’s move into a new phase of its globalisation strategy.

Two days after the press launch in Mumbai, the official opening was held today of the new Piaggio Group plant in Baramati (State of Maharashtra), which is to produce Vespa scooters for the Indian market.

The opening ceremony was attended by Sharad Pawar, the Indian Minister for Agriculture & Cooperation, Praful Patel, the Indian Minister for Heavy Industry & Public-sector Companies, Ajit Pawar, the Deputy Prime Minister of the State of Maharashtra, and the Italian Ambassador to India, Giacomo Sanfelice di Monteforte. Piaggio Group Chairman and CEO Roberto Colaninno headed a delegation of Piaggio senior management, including Piaggio Group Deputy Chairman Matteo Colaninno and Ravi Chopra, Chairman and Managing Director of the Indian subsidiary Piaggio Vehicles Private Ltd.

Roberto Colaninno said: “Today is an event of enormous importance for the Piaggio Group and for the entire two-wheeler sector. With its entry on to the Indian market, the Vespa becomes a truly global vehicle, targeting a new class of young, highly educated Indian consumers, who follow events around the world very carefully and keep a close watch on changing international lifestyles and consumer patterns. This is one of the reasons why the launch of the Vespa in India, a country with extraordinary potential, coincides with a completely new phase in our Group’s globalisation strategy: focus on the end customer on every major market where the Piaggio Group operates, attention to the specific needs and requirements of the various geographical areas, product marketing and technical development geared to delivering state-of-the-art products in every market. Only thanks to this approach can we maximise the success of our best-known brands and develop innovative new product ranges.”

The Vespa production plant opened today is the third factory set up by the Piaggio Group in Baramati, a city in the Pune district of the State of Maharashtra. The area is home to the manufacturing complex of Piaggio Vehicles Private Ltd., a wholly owned Piaggio Group subsidiary which already produces three-wheel goods and passenger vehicles (and is the market leader in India, with annul sales of more than 220,000 vehicles) and, in an adjoining facility, scooter engines for the Vespa and diesel and turbodiesel engines for the commercial vehicle ranges produced by Piaggio in India and in Italy, in Pontedera. With the opening of the Vespa production plant, the Piaggio Group industrial complex in Baramati now provides jobs for approximately 3,000 workers.

The new Vespa factory is located on an area of more than 150,000 square metres, including a covered surface area of 32,000 square metres. It handles the full Vespa machining cycle, from welding of the monocoques to varnishing and final assembly. The initial production capacity of the plant, which was built in just 14 months, is 150,000 scooters/year; capacity will be raised to 300,000 during 2013 as part of the Piaggio group industrial and commercial program.

The Indian two-wheeler market is the world’s second-largest in terms of shipments, with approximately 13 million vehicles sold in 2011. The scooter segment – with more than 2.5 million vehicles sold last year – is the most dynamic segment of the market, with strong annual growth rates of more than 20%.

The Vespa developed for the Indian market is based on the Vespa LX, in 2011 the outright best-seller on the European two-wheeler market and the top-selling European two-wheeler in the USA. Compared with the version produced in Italy and marketed in Europe and the USA, and the model produced by Piaggio Vietnam, the Indian Vespa features a number of specific ergonomic adaptations, offers easier access to the engine and tyres, and, above all, is equipped with a brand new 125 cc 4-stroke, 3-valve engine. This completely new motor was developed by the Piaggio Group specifically for its debut on the Indian two-wheeler market: a state-of-the-art, no-noise, eco-friendly unit with significantly low exhaust and noise emissions, and exceptional fuel efficiency, with one of the lowest fuel consumption levels in the world and a range of more than 60 km on a litre of fuel.

Marketing of the Vespa, at 66,600 Indian rupees (equivalent to approximately 1,000 euro/1,260 USD at the current exchange rates), is currently beginning in India’s 35 largest cities, through a distribution network already comprising 50 exclusive dealers, on the basis of a coordinated image system dedicated entirely to the Vespa brand.

The Piaggio Group’s entry into the two-wheeler business in India opens up a completely new premium product segment, for customers looking for two-wheelers with a unique style and personality combined with cutting-edge technology. The global positioning developed by the Piaggio Group for the Vespa brand underpins the extraordinary sales success of the scooter, which sold more than 150,000 units in 2011. As a comparison, worldwide Vespa scooter sales in 2003 were around 50,000.

Entry on to the Indian two-wheeler market is a fundamental step in the Piaggio Group strategy targeting strong growth on the emerging markets. The Group is projecting global sales of more than one million vehicles in 2014 and significant growth in revenue, with a consolidated net sales target of approximately 2 billion euro for financial year 2014. In terms of revenue breakdown, in 2014 the Piaggio Group expects Asia to account for 50% of revenues, compared with 8% in 2003 and 25% in 2009.

In 2011 the Piaggio Group shipped a total of 653,300 vehicles worldwide (a 4.0% increase on 628,400 vehicles sold in 2010), of which 415,000 two-wheelers (scooters and motorcycles) and 238,300 three and four-wheel commercial vehicles.
In 2011, the Group reported consolidated net sales of 1,516.5 million euro (+2.1% from 2010), EBITDA of 200.6 million euro (+1.7% on 2010), net profit of 47 million euro (+9.8% from 2010). Net debt at 31.12.2011 was down to € 335.9 million euro (349.9 million euro at 31 December 2010). During 2011, the Piaggio Group increased capital expenditure significantly – especially for the development of industrial operations in the emerging countries – to a total of 126.1 million euro, a rise of 31.1% from 96.2 million euro in 2010. Of total investments, 38.3 million euro were in R&D, which also reported expense of 30.2 million euro. As a result, 2011 spending and investment in R&D rose by 8.9% from the 2010 figure.

“Piaggio Prime” Parts original spares at the same price from all authorised centres in Europe.

 

Milan, 17 April 2012 – Beginning today, the Piaggio Group offers customers the opportunity to purchase original spare parts, for all its brands, from the same price list in all European countries. The initiative aims to ensure pricing policy uniformity and give all Piaggio customers transparent access to its range of original spares, “Piaggio Prime” Parts, a guarantee of quality and reliability, and the only parts that ensure the on-going efficiency of the vehicle and all its functions.

Thanks to the efficiency of the new distribution model and the competitiveness of the “Piaggio Prime” Parts offer, the benefits for the customer also include greater cost-effectiveness thanks to a new and transparently priced offer.

The new single European price list is part of “Piaggio Prime” Service, a major Piaggio Group after-sales services network initiative: the network, active in Italy from 1 January 2012 and subsequently in all other countries, will encompass all the authorised Assistance Centres equipped with state-of-the-art diagnostics systems and run by specially trained technical personnel. Using only original “Piaggio Prime” Parts and “Piaggio Prime” Accessories, the centres guarantee maximum functionality and safety for motorcycles and scooters after repairs and maintenance.

 

 

For more information:

Piaggio Group Press Office

Via Broletto, 13

20121 Milan – Italy

+39 02 02.319612.15/16/17/18

press@piaggio.com

www.piaggiogroup.com