Piaggio approves 2005 draft financial statements*

Mar 08 2006 10:24
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Approved 2005 draft financial statements*

Milan, 8 March 2006 – At a meeting today in Milan chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the 2005 draft financial statements. These will be presented for the approval of shareholders at the meeting convened for 28 April (first call) and 3 May (second call).
Following the acquisition of the Aprilia Group (Aprilia and Moto Guzzi) at the end of December 2004, 2005 saw Piaggio consolidate its position as a top world player on the two-wheel vehicle market.
During the year the Piaggio Group maintained its leadership position on the European scooter market. In the motorcycle business, the Aprilia brand strengthened its reputation for innovative products at the leading edge of technology, while Moto Guzzi presented a number of models that were warmly received by the market.
With shipments of more than 610,000 vehicles during the year, the Piaggio Group’s 2005 consolidated net sales totalled € 1,451.8 million, an overall increase of € 367.6 million on the 2004 figure of € 1,084.2 million [1]. This reflected the consolidation of Aprilia for € 351 million and growth in the light transport business. 
The industrial gross margin was € 438.2 million, an increase of € 115.3 million from 2004 and an improvement in the return on net sales (from 29.8% to 30.2% in 2005).
EBITDA amounted to € 184.8 million. The return on net sales, 11.3% in 2004, was 12.7%, a gain achieved largely through improved operating efficiency.
After depreciation and amortisation for € 90.5 million, operating income totalled € 94.3 million, up € 32 million from 2004. Group profitability also made further progress, from 5.7% to 6.5%.
Net financial charges in 2005 amounted to € 30.3 million.
2005 closed with a consolidated net profit of € 37.9 million (after minority interests of € 0.2 million).
Net debt stood at € 411.4 million, down by € 110.1 million from € 521.5 million at the end of 2004. The reduction arose from cash flow on operations totalling € 128.6 million and more efficient management of working capital, which decreased by € 70.2 million.
Shareholders’ equity amounted to € 348.5 million, up from € 251.2 million at 31 December 2004 as a result of profit for the year and the effect of fair-value measurement of the warrants issued for banks at the time of the Aprilia acquisition.


The Board of Directors meeting was followed by an ordinary and extraordinary meeting of Piaggio & C. S.p.A. shareholders, who carried a resolution to apply for Piaggio & C. S.p.A. ordinary shares to be listed on the Borsa Italiana automated trading system, and completed the procedures required under Legislative Decree 58/1998.

This announcement is not an offer for sale of securities in the United States.  The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.  Piaggio & C. S.p.A.  does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States.  Copies of this announcement are not being made and may not be distributed or sent into the United States, Canada, Australia or Japan.

This communication is directed only at persons who (i) are outside of the United Kingdom or (ii) have professional experience in matters relating to investments or (iii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such persons together being referred to as “relevant persons”).  This communication must not be acted on or relied on by persons who are not relevant persons.  Any investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons.

* The 2005 figures reflect the current structure of the Piaggio Group, after the Aprilia Group acquisition on 30 December 2004. Consequently, the 2005 income statement is not comparable with the 2004 results, due to the change in the scope of consolidation.
Figures at 31 December 2004 have been restated for compliance with the IAS/IFRS standards.
[1] Engine sales to Aprilia, a component of Piaggio’s 2004 results, are now an intragroup item and therefore no longer reflected in the accounts.

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