Piaggio Group: 2014 draft financial statements

Feb 27 2015 13:42
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Consolidated net sales 1,213.3 million euro from 1,212.5 mln in 2013

(2014 net sales 1,228.6 million euro at constant exchange rates)


Ebitda 159.3 million euro (146.8 mln in 2013)

Ebitda margin 13.1% (12.1% in 2013)


Industrial gross margin 364.7 million euro (357.5 in 2013)

Net sales margin 30.1% (29.5% in 2013)


Ebit 69.7 million euro (62.6 mln in 2013)


Net profit 16.1 million euro, after net loss of 6.5 mln in 2013


Net financial position -492.8 million euro

(-475.6 million euro at 31 December 2013)


Proposed dividend of 0.072 euro (no dividend for financial year 2013)


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The Piaggio Group maintains leadership of European two-wheeler market,

with an overall share of 16.1% and a 24.8% share of the scooter segment.


Group share of US scooter market at 21%


Success of the new Vespa models (1.3% increase in worldwide Vespa brand revenues)

and the Piaggio Mp3 three-wheel scooter (29.3% increase in revenues)


In India, the Piaggio market share in light commercial vehicles up to 26.7%.


Growth of 50.1% in commercial vehicle exports from the Indian production hub



27 February 2015 – At a meeting today in Mantua chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the 2014 draft financial statements.


The Piaggio Group reported a positive performance for the year with improvements in all profitability indicators, on consolidated net sales in line with the 2013 figure (and reflecting growth net of the exchange-rate effect).


Piaggio Group performance was particularly strong in the fourth quarter of 2014 with significant growth in results compared with the fourth quarter of 2013, in absolute terms and as a percentage of revenues. In the fourth quarter of 2014, the Piaggio Group reported consolidated net sales of 282.5 million euro (+9.7% on the fourth quarter of 2013) with revenue improvements in all regions where it operates, EBITDA of 24.0 million euro (+84% on the fourth quarter of 2013) and an industrial gross margin of 77.2 million euro (+15% on the fourth quarter of 2013).


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Group 2014 full-year consolidated net sales totalled 1,213.3 million euro, in line (+0.1%) with 1,212.5 million euro in 2013. Net of the exchange-rate effect, Group consolidated net sales amounted to 1,228.6 million euro, an increase of 1.3% compared with the year ended 31 December 2013.


The industrial gross margin for 2014 was 364.7 million euro, an increase in absolute terms from 357.5 million euro in 2013, and in terms of the net sales margin, which rose to 30.1% from 29.5% in 2013.


Operating expense in 2014 amounted to 295.0 million euro, in line with 2013 (294.9 million euro), confirming the Group’s constant focus on cutting costs and maintaining high profitability and productivity.


The progress in the income statement described above generated an increase in consolidated EBITDA from 2013, to 159.3 million euro (146.8 million euro in 2013). The EBITDA margin rose by 1 percentage point from the previous year to 13.1%, the best annual performance since 2011.


2014 EBIT was 69.7 million euro, an improvement in absolute terms from 62.6 million euro in 2013, and with respect to revenues (the EBIT margin was 5.7% against 5.2% in 2013).


The Piaggio Group closed 2014 with a profit before tax of 26.5 million euro, compared with 30.3 million euro in 2013. Compared with the previous year, the Group recognised non-recurring finance expense relating largely to the early redemption of the bond originally maturing in December 2016.


2014 closed with a net profit of 16.1 million euro, compared with a net loss of 6.5 million euro in 2013. Adjusted net profit, net of the non-recurring expense mentioned above, was 18.6 million euro.


Net financial debt at 31 December 2014 was 492.8 million euro, compared with 475.6 million euro at 31 December 2013. The increase of approximately 17.2 million euro arose largely from the investment program and the negative effect of working capital chiefly due to the delayed reimbursement of value-added tax and custom duties in the fourth quarter of 2014.


Shareholders' equity at 31 December 2014 was 413.1 million euro, an increase of approximately 21.0 million euro from the figure at 31 December 2013.


Piaggio Group capital expenditure in 2014 amounted to 94.9 million euro (+8.3% on 2013), while R&D expenditure was 46.3 million euro, substantially in line with 2013.


The Piaggio Group workforce at 31.12.2014 consisted of more than 7,500 employees, substantially in line with 2013.


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In 2014, the Piaggio Group shipped a total of 546,500 vehicles worldwide, compared with 555,600 in 2013. The shift in the product mix towards higher-cost vehicles, together with the Piaggio Group branding and premium price policies, generated an increase in consolidated net sales.


In 2014, the Piaggio Group maintained its leadership of the European two-wheeler market, with an overall share of 16.1% and a 24.8% share of the scooter segment, where it had a 12 percentage point lead over the second competitor.


The Group also maintained its position as reference constructor on the US scooter market, with a share of approximately 21%.


There was an important increase in 2014 in sales for the Vespa brand and the Piaggio Mp3 three-wheel scooter, assisted by the launch of the new Primavera and Sprint models and the completely renewed versions of the Mp3 in various displacements and the Vespa GTS.


During the year, the Piaggio Group shipped 17,200 three-wheel scooters, an improvement of 17.5% from 14,600 shipments in 2013 and of approximately 29.3% in revenues.


Significant growth was also reported for Vespa sales on Western markets, with revenues rising by 5% on 2013. Worldwide Vespa brand revenues in 2014 reached 324 million euro, up 1.3% from 320 million euro in 2013.


In light transport, on the Indian market for three- and four-wheel light commercial vehicles (payload up to 1 ton), in 2014 Piaggio boosted its market share from 25.8% to 26.7%. In the three-wheel vehicle segment, it confirmed its position as reference player with a 32.5% market share.


Growth in exports of Piaggio commercial vehicles from the Indian production hub was particularly significant in 2014, rising to 23,000 shipments, an improvement of 50.1% on 2013.


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Piaggio & C. S.p.A.


In 2014, the parent company reported net sales of 716.4 million euro and net profit of 14.8 million euro, net of non-recurring expense relating substantially to the early redemption of the bond maturing in December 2016 and to the refinancing of the revolving credit facility originally maturing in December 2015.


The Board of Directors will ask the shareholders to approve distribution of a gross dividend of 0.072 euro per entitled ordinary share (no dividend was paid for financial year 2013); the board will also propose that the ex dividend date (coupon no. 8) be fixed for 20 April 2015, the record date for 21 April 2015 and the payment date for 22 April 2015.


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In a general economic context likely to see a strengthening of the global economic upturn, where uncertainty will nonetheless remain due to the speed of European growth and the risk of a slowdown in some emerging countries, Group commercial and industrial operations will focus on:


  • confirming the Group leadership position on the European two-wheeler market, taking full advantage of the expected recovery through:

-      a further strengthening of the product range and growing motorcycle sales and margins with the renewed Moto Guzzi and Aprilia lines;

-      entry on to the e-bike market (electric bicycles), leveraging the Group’s leadership in technology and design;

-      maintaining current positions on the European commercial vehicle market;

  • continued growth in the Asia Pacific region by exploring new opportunities in mid-range/large motorcycles and replicating the premium strategy in Vietnam throughout the region. In 2015 the Group will also consolidate direct sales operations in China, with the aim of penetrating the premium segment of the two-wheeler market;
  • strengthening sales on the Indian scooter market by extending the offer of new Vespa models and versions and introducing new models in the premium scooter and motorcycle segments;
  • growing commercial vehicle sales in India and the emerging countries, aiming for further growth in exports to Africa and South America.


From a technology viewpoint, the Piaggio Group will continue development of technologies and platforms that focus on the functional and emotional aspects of its vehicles, through continuous development in power trains, wider use of digital platforms connecting user and vehicle, and trials of new product and service configurations.


At a more general level, the Group maintains its constant commitment – a characteristic of recent years and continuing in 2015 – to generate higher productivity through close attention to cost and investment efficiency, in line with its ethical principles.


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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 28 April 2014, which is due to expire on 28 October 2015. The proposal aims to provide the company with a useful strategic investment opportunity for the purposes allowed under law, including the purposes contemplated in the market practices allowed by the Consob pursuant to art. 180, paragraph 1, lett c) of the Consolidated Finance Act with resolution no. 16839 of 19 March 2009 and Regulation CE no. 22/2003 of 22 December 2003, 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 number of own shares in portfolio stands at 2,466,500, representing 0.6782% of share capital.


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.


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Proposal for cancellation of own shares


The Piaggio & C. S.p.A. Board of Directors carried a resolution to propose to shareholders the cancellation of 2,466,500 own shares in portfolio (representing 0.6782% of share capital), without variation to current share capital.


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The presentation of the financial results for the year ended 31 December 2014, which will be illustrated during the conference call with financial analysts, is available on the company corporate website at www.piaggiogroup.com/it/investor and at the “1Info” authorised storage mechanism on the www.1info.it website.


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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 (Consolidated Law on Financial Intermediation), that the accounting disclosures in this statement correspond to the accounting documents, ledgers and entries.

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.

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 2013 Annual Report and 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. Specifically, the following alternative performance indicators are used:

EBITDA: earnings before amortisation and depreciation. As from 31 December 2013, the definition of EBITDA has been amended and is now equivalent to earnings (EBIT) before amortisation and depreciation and impairment losses on property, plant and equipment and intangible assets, as reflected in the income statement;

Net financial debt: this reflects financial liabilities (current and non-current), less cash and cash equivalents, and other financial receivables (current and non-current). Determination of net financial debt does not include other financial assets and liabilities arising from measurement at fair value of derivatives designated as hedges and fair value adjustments of the related hedged items. The schedules in the Piaggio Group quarterly report at 30 September 2014 include a table illustrating the composition of net financial debt. In this regard, in compliance with CESR recommendation of 10 February 2005 “Recommendation for uniform enactment of the European Commission regulation on disclosures”, attention is drawn to the fact that the indicator determined as described represents the amount as monitored by Group management and differs with respect to Consob Communication no. 6064293 of 28 July 2006, since it also includes non-current financial receivables.

The Piaggio Group consolidated income statement, consolidated statement of financial position and consolidated statement of cash flows are set out below. In compliance with Consob Communication no. 9081707 of 16 September 2009, it should be noted that at the time of publication of this release, the audit of the Piaggio Group consolidated financial statements and the separate financial statements of Piaggio S.p.A. for the year ended 31 December 2014 was still underway.



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