Piaggio Group: 2017 Draft Financial Statements

Feb 28 2018 12:17
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Consolidated net sales 1,342.4 million euro, up 2.2% (+2.6% at constant exchange rates) (1,313.1 €/mln in 2016)


Ebitda 192.3 million euro, up 12.6% (170.7 €/mln in 2016)
Ebitda margin 14.3% (13% in 2016)

Industrial gross margin 411.3 million euro, up 5.7% (389.2 €/mln in 2016)
30.6% return on net sales (29.6% in 2016)

Ebit 72.3 million euro, up 18.8% (60.9 €/mln in 2016)
Ebit margin 5.4% (4.6% in 2016)

Profit before tax 40.1 million euro, up 57.1%
(25.5 €/mln in 2016) 

Net profit 20 million euro, up 42.3% (14 €/mln in 2016) 

Cash flows of 44.3 million euro (7.2 million euro in 2016) 

Net financial position -446.7 million euro,
an improvement of 44.3 €/mln from -491 €/mln at 31 December 2016 

552,800 vehicles shipped worldwide (532,000 in 2016) 

Proposed dividend of 0.055 euro per share (equivalent to 19,698,450 euro)


Two-wheelers: the Piaggio Group confirms its leadership of the European market with an overall share of 15.1%, rising to 24.2% in scooters. Increase in worldwide sales for the Vespa (+10.2%), in the high-wheel segment (+7.7%), strong improvement in two-wheelers in India, +71.1% 

Commercial vehicles: confirmation of leadership in cargo segment in India with a market share of 48.8%

Piaggio Fast Forward: development of Gita and Kilo continues and the Advisory Board is strengthened with the entry of Daniela Rus, one of the world’s leading researchers in robotics and AI 


Authorisation for the purchase and sale of own shares


Milan, 28 February 2018 – At a meeting today chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. (PIA.MI) examined and approved the 2017 draft financial statements.


Piaggio Group business and financial performance at 31 December 2017(1)


In 2017 the Piaggio Group reported positive performance, with significant improvements in all the main indicators and a reduction in debt compared with 2016.

Group consolidated net sales totalled 1,342.4 million euro, an improvement of 2.2% (+2.6% at constant exchange rates) from 1,313.1 million euro in 2016. 

The industrial gross margin at 31 December 2017 was 411.3 million euro, up by 5.7% from 389.2 million euro at 31 December 2016. The return on net sales was 30.6%, the best result since 2010 (29.6% at 31 December 2016).

Operating expense sustained by the Group in 2017 amounted to 339 million euro, an increase of 3.3% from 2016 generated by the rise in amortisation and depreciation. Net of amortisation and depreciation, operating expense in 2017 was down from 2016. 

The income-statement figures described above produced consolidated Ebitda of 192.3 million euro, the best figure since 2012, with an increase of 12.6% from 170.7 million euro at 31 December 2016. The Ebitda margin was 14.3%, the best result ever recorded (13% at 31 December 2016).

Ebit in 2017 amounted to 72.3 million euro, up 18.8% from 60.9 million euro in 2016. The Ebit margin was 5.4% (4.6% at 31 December 2016).

At 31 December 2017, the Piaggio Group posted profit before tax of 40.1 million euro, up 57.1% compared with 25.5 million euro in 2016. Income tax for the period was 20.1 million euro, with an impact on pre-tax profit of 50.1%. 

The Piaggio Group closed 2017 with net profit of 20 million euro, an increase of 42.3% compared with 14 million euro in 2016.

Cash flows in the year to 31 December 2017 totalled 44.3 million euro (7.2 million euro at 31 December 2016).

Net financial debt at 31 December 2017 stood at 446.7 million euro, an improvement of 44.3 million euro from 31 December 2016 (491 million euro). The leverage ratio (net debt/Ebitda) was therefore 2.3 compared with 2.9 in 2016. 

Group shareholders' equity at 31 December 2017 was 385.1 million euro (393.7 million euro at 31 December 2016).

Piaggio Group capital expenditure in 2017 amounted to 86.7 million euro (96.7 million euro in 2016.

The total workforce of the Piaggio Group at 31 December 2017 numbered 6,620 employees.
The Group’s Italian employees numbered 3,444, substantially unchanged from the year-earlier period.


Business performance in 2017 

During 2017 the Piaggio Group sold 552,800 vehicles worldwide, an increase of 3.9% (532,000 shipments in 2016), and reported consolidated net sales of 1,342.4 million euro, up 2.2%. 

In geographical terms, the Group reported a rise in sales volumes in the Emea and Americas areas (+3.5%) and in India (+7.4%), where growth in sales of two-wheelers (+71.1%) counterbalanced the fall in sales of commercial vehicles (-7.1%). The improvements more than offset the downturn reported in Asia Pacific (-4.2%).


In 2017, the Group sold 376,000 two-wheelers worldwide (up 9.3% from 344,000 in 2016), generating net sales of 950.6 million euro, an improvement of 3.7% from 916.5 million euro in 2016.

The figure includes spares and accessories, on which turnover totalled 129 million euro, an increase of 3.6% from 2016.

In Europe the Piaggio Group maintained its leadership position with an overall market share of 15.1%, rising to 24.2% in the scooter segment, and reported a 3.4% rise in sales volumes. The Group retained a particularly strong presence on the North American scooter market, where its share reached 22.1%, and is already taking action to strengthen its position in motorcycles in the region. On the Indian two-wheeler market the Group boosted sales volumes by 71.1% thanks to the success of the new Aprilia SR 150 scooter and the excellent performance of the Vespa. In Asia Pacific, scooter sales volumes fell, but the slowdown was more than counterbalanced by the positive results in the other regions. In Thailand, the sales offer was expanded as a result of the recent entry on to the motorcycle market with the introduction of the Aprilia and Moto Guzzi brands, flanking the already consolidated offer in the scooter sector with the Vespa and Piaggio brands, while Hong Kong's first Motoplex store was opened a few weeks ago.

In the scooter sector the main highlight was the excellent performance of the Vespa brand, which boosted worldwide sales by more than 10% from 2016, with growth reported in all regions.

Performance was also positive in high-wheel scooters (7.7% increase in sales volumes), where the Group reported revenue growth at global level, largely thanks to the new Liberty and to the Beverly.

The Group also reported important results in motorcycles. The Aprilia brand achieved sales increases across the entire range: the supersports models in the RSV4 family, the naked bikes in the Tuono family, the new Aprilia Shiver 900 and Dorsoduro 900 (which began shipping in June 2017) and the new 125cc bikes launched last April.

Moto Guzzi net sales received a particularly important boost from the successful sales performance of the V7 bikes, whose 50th anniversary in 2017 was celebrated with the introduction of an ad hoc model.


Commercial vehicles: 

In the commercial vehicles sector, the Group sold 176,800 vehicles (188,000 in 2016) for net sales of 391.9 million euro (396.6 million euro in 2016).

The figure includes spares and accessories, where sales totalled 46.6 million euro, up 4.8% from 44.5 million euro in 2016.

Although demand on the Indian market for three-wheel commercial vehicles continued to fall compared with the previous year, the trend improved and the PVPL subsidiary had an overall market share of 26.5% and confirmed its leadership in the cargo segment with a share of 48.8%.

The slowdown in sales in India reported by the PVPL production hub was offset in part by the rise in worldwide exports, which totalled 21,800 commercial vehicles in 2017. These sales arose in part in the EMEA and Americas areas and in part in the India area, in connection with responsibility for management of the individual markets.


Piaggio Fast Forward:

Piaggio Fast Forward (PFF), the Boston-based Piaggio Group subsidiary responsible for Group research in mobility of the future, recently enhanced its Advisory Board with the entry of Daniela Rus, one of the world's leading researchers in artificial intelligence and robotics. Daniela Rus is Director of the Computer Science and Artificial Intelligence Laboratory (MIT CSAIL) and the Andrew (1956) and Erna Viterbi Professor of Electrical Engineering and Computer Science (EECS), also at the MIT in Boston.

PFF continued development work on its first innovative projects, Gita and Kilo, which were presented in Boston in February 2017. These are two smart autonomous vehicles designed to improve mobility productivity in today’s increasingly complex urban environments, with a payload of up to 100 kg and a range of 20 km in an urban setting. The vehicles accompany the user, map their surroundings and monitor other moving objects.


Significant events in and after 2017

This section supplements the information published here and at the time of approval of the 2017 third-quarter results (directors’ meeting of 27 October 2017).

On 7 November 2017, at the EICMA international tradeshow in Milan, the Piaggio Group held the world preview of the Vespa Elettrica project, confirming its commitment to development of alternative zero-emission mobility solutions. The Vespa Elettrica, a complete response to the growing demand for clean mobility, was also presented in the X version, where the addition of a generator to the electric engine doubles the scooter’s range. Production and marketing of the Vespa Elettrica are scheduled for the second half of 2018.

Also at the international two-wheeler tradeshow, the Group presented a number of new entries, including the Vespa Primavera and Vespa Sprint in the S version, which offer a number of updates to boost technical capabilities, comfort and safety, and enhance the scooters’ look; the Vespa Primavera 50th Anniversary model in I-Get 50 and 125 displacements; a completely new Moto Guzzi V85, featuring an 850cc air-cooled 90° transverse V-twin engine, whose new design delivers a top power of 80 hp; three new versions of the best-selling Moto Guzzi V7; the new Piaggio MP3 350 Sport and Piaggio MP3 500; the new range of scooters fitted with I-Get 50cc Euro 4 engines; the new Aprilia RX 125 and SX 125, two bikes with different personalities that share the same superstructure, frame, engine and suspension. 

On 18 December 2017, Piaggio Fast Forward (PFF), the Piaggio Group subsidiary at the cutting edge of research into mobility of the future, received an award at the GOOD DESIGN® AWARDS 2017, one of the first and most prestigious international design awards.

On 30 January 2018, the Piaggio Group announced the strengthening of its distribution network after reaching the important threshold of 300 Motoplex stores around the world. Recent openings include the multibrand stores in Hong Kong and in Bangalore in the Indian State of Karnataka. The Motoplex store concept introduced just three years ago flanks the traditional distribution network.

Following the significant success of the Aprilia SR 150 sports scooter, on 8 February 2018 at the Auto Expo tradeshow, the Piaggio Group presented the new Aprilia SR 125 and Aprilia Storm 125 for the Indian market. The new models will enable the Group to address a broad target in a rapidly growing market segment, which is expanding even faster than the Indian scooter market as a whole. The new 125cc Aprilia scooters flank the premium Vespa offer.


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Piaggio & C. S.p.A. 

In 2017, the parent reported net sales of 817.8 million euro and net profit of 20.6 million euro.

The Board of Directors will ask the shareholders to approve distribution of a gross dividend of 0.055 euro per entitled ordinary share (0.055 for financial year 2016), equivalent to approximately 19,698,450 million euro. The ex dividend date (coupon no.11) is 23 April 2018, the record date is 24 April 2018 and the payment date is 25 April 2018. 

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In a general economic context showing a strengthening of the global economic upturn, where uncertainty will nonetheless remain with regard to the speed of European growth and the risk of a slowdown in some Asian countries in the Far East, Piaggio Group commercial and industrial operations will focus on: 

  • confirming the leadership position on the European two-wheeler market, taking full advantage of the expected recovery through:
    • further strengthening of its product range;
    • maintenance of current positions on the European commercial vehicle market;
  • consolidating its presence in Asia Pacific, in part through the opening of new Motoplex stores, the exploration of new opportunities in countries in the region, with a particular focus on the premium segment of the market;
  • increasing sales on the Indian scooter market thanks to the Vespa offer and the success of the new Aprilia SR 150;
  • growing the penetration of commercial vehicles in India, in part through the introduction of new engine displacements, and related sales in the emerging countries, aiming for further growth in exports to Africa and South America.

From the technological viewpoint, the Piaggio Group will continue research on new solutions to current and future mobility problems, through the work of Piaggio Fast Forward (Boston) and new advances in design at PADc (Piaggio Advanced Design center) in Pasadena.

At a more general level, the Group maintains its commitment – a characteristic of recent years and continuing in 2018 – to generate higher productivity through close attention to cost and investment efficiency, in compliance with its ethical principles.

* * *


Authorisation for the purchase and sale of own shares 

At today’s meeting, the Board of Directors agreed to present to the shareholders’ meeting a proposal for the renewal of the authorisation for the purchase and sale of own shares granted by the Annual General Meeting of 12 April 2017, which is due to expire on 12 October 2018. The proposal aims to provide the company with a useful strategic investment opportunity for the purposes allowed under law, including the purposes contemplated in art. 5 of EU Regulation 596/2014 (Market Abuse Regulation, hereinafter “MAR”) and in the practices allowed under art. 13 MAR, and also for purchases of own shares for subsequent cancellation.

Authorisation to purchase own sales will be requested for a period of 18 months, as from the shareholder resolution date; authorisation to sell own shares will be requested for an unlimited period. As of today, the company does not hold any own shares.

All information concerning the terms and procedures of the authorisation will be set out in the Illustrative Report on Own Share Purchases, to be made available to shareholders within the terms envisaged by current laws.


* * *

 Conference call with analysts 

The presentation of the financial results as at and for the year ended 31 December 2017, which will be illustrated during a conference call with financial analysts, is available on the corporate website at www.piaggiogroup.com/it/investor.


* * * 

The Piaggio Group consolidated income statement, consolidated statement of financial position and consolidated statement of cash flows as at and for the year ended 31 December 2017 are set out below.

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

* * * 

In line with the recommendations of CESR Communication 05-178b, attention is drawn to the fact that this press release contains a number of indicators that, though not yet contemplated by the IFRS (“Non-GAAP Measures”), are based on financial measures envisaged by the IFRS. These indicators – presented in order to assist assessment of the Group’s business performance – should not be considered as alternatives to those envisaged by the IFRS and are consistent with those in the Piaggio Group 2016 Annual Report and in the quarterly and half-year reports. Furthermore, since determination of such indicators is not specifically regulated by the IFRS, the methods used may not coincide with those adopted by other companies/groups, and consequently the indicators in question may not be comparable. In compliance with Consob Communication no. 9081707 of 16 September 2009, it should be noted that the alternative performance indicators (“Non-GAAP Measures”) have not been audited by the independent auditors.

This press release may contain forward-looking statements relating to future events and Piaggio Group business and financial results. By their nature, these statements are subject to inherent risks and uncertainties, since they relate to events and depend on circumstances that may or may not occur or exist in the future. Actual results may differ materially from those expressed in such statements as a result of a variety of factors.

(1)The main alternative performance indicators used by the Piaggio Group, representing the data monitored by management, are as follows:

  • EBITDA: earnings (EBIT) before amortisation and depreciation and impairment losses on property, plant and equipment and intangible assets, as reflected in the consolidated income statement;
  • Industrial gross margin: net sales less costs to sell;
  • Net financial position: gross financial debt less cash and cash equivalents, and other current financial receivables. Determination of the net financial position does not include other financial assets and liabilities arising from measurement at fair value, derivatives designated or not as hedges, fair value adjustments of the related hedged items and related accruals.
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