THE PIAGGIO GROUP: PROFILE

Established in 1884 by Rinaldo Piaggio and based in Pontedera (Pisa, Italy), the Piaggio Group is one of the world’s top manufacturers of two-wheel motor vehicles.

The Group has been listed on the Milan Stock Exchange since 11 July 2006 and is controlled by Immsi S.p.A., an industrial holding listed on the Milan Stock Exchange and headed by Roberto Colaninno, who is Piaggio Group Chairman and Chief Executive Officer. The Group Deputy Chairman is Matteo Colaninno. Daniele Bandiera is Chief Operating Officer Operations, and Michele Pallottini is Chief Operating Officer Finance.

The Piaggio Group, which also includes Aprilia and Moto Guzzi, acquired on 30 December 2004, and Spain’s Derbi, acquired in 2001, ranks as one of the world’s top four players in its core business, with a consolidated leadership position on the European two-wheeler market; 5 R&D centres; more than 7,000 employees.

Group production operations are located in factories in: Pontedera (Pisa), for two-wheel vehicles for the Piaggio, Vespa and Gilera brands, light transport vehicles (LTVs) for the European market, and scooter and motorcycle engines; Scorzè (Venice), for two-wheel vehicles for the Aprilia and Scarabeo brands; Mandello del Lario (Lecco), for Moto Guzzi vehicles and engines; Barcelona (Spain), for the Derbi brand; Baramati (in the Indian state of Maharashtra), for three- and four-wheel LTVs for the local market; Vinh Phuc (Vietnam), for Vespa scooters for the local market and the ASEAN area. The Piaggio Group also has a joint venture in China (in Foshan, in Guangdong province), owned 45% by Piaggio, and therefore not included in the Group’s consolidated results.

The Piaggio Group product range includes scooters, motorcycles and mopeds in the 50cc to 1200cc displacement range for the Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi and Scarabeo brands. The Group also manufactures three- and four-wheel light transport vehicles for the Ape, Porter and Quargo ranges.
In 2008 the Piaggio Group shipped a total of 648,600 vehicles worldwide (scooters, motorcycles and three/four-wheel commercial vehicles), of which 470,500 in the two-wheeler business and 178,100 commercial vehicles. The aggregate figure includes particularly successful results at Piaggio Group Americas, which reported a 28.7% improvement in sales volumes (31,600 vehicles sold in 2008) and a 19.8% increase in turnover (€ 95.0 million in 2008), arising largely from sales of Vespa scooters, whose worldwide volumes in 2008 once again topped the 100,000 mark. In the commercial vehicles business, the Group bucked the downward trend in demand in Europe and India with vehicle sales generating revenue growth of +3.8% and +2.5% respectively.

In 2008 Piaggio Group consolidated net sales totalled € 1,570.1 million. Group consolidated EBITDA was € 189.1 million; operating profit amounted to € 94.5 million; pre-tax profit was € 59.6 million and the Group posted a net profit for 2008 of € 43.3 million.

Piaggio Group capital expenditure in 2008 was € 102.9 million, including € 25.3 million for its new industrial projects in Vietnam and India. During the year, the Group continued its investment programme to strengthen its direct manufacturing and commercial operations in the main world regions. As part of the programme, it finished work on the Vespa production facility in Vietnam, where marketing operations for locally manufactured vehicles are due to commence shortly; in India work is nearing completion on the new engine plant in Baramati, where Piaggio Vehicles Private Limited operates: at the end of 2009, the subsidiary, which produces Ape three-wheel and Ape Truk four-wheel commercial vehicles, with an annual output of more than 150,000 vehicles, will begin production of a new range of 1,000 and 1,200cc diesel and turbodiesel engines for commercial vehicles.
In 2008 the Piaggio Group also invested in the renewal of all its scooter and motorcycle product ranges, with the focus on technological innovation and environmentally sustainable engines that reduce fuel consumption and emissions. The Group also launched a number of new LTV models, whose environment-friendly features won a warm response.

In motor racing, 2008 was an excellent year for the Piaggio Group, with four world speed titles (drivers and constructors) in the 250 and 125cc categories with its three racing brands, Aprilia, Gilera and Derbi, as well as the Supermoto S1 constructors world title. The presentation of the new RSV4 expanded the Aprilia range in the high-performance superbike segment; the new model made its Superbike 2009 world championship debut with Max Biaggi and Shinya Nakano.