Consolidated net sales € 1,516.5 million (+2.1% from 2010)
EBITDA € 200.6 million (+1.7% from 2010)
Net profit € 47 million (+9.8% from 2010)
Net debt down to € 335.9 million
(from 349.9 million at 31 December 2010)
Capex € 126.1 million
(+31.1% from 2010)
***
653,300 vehicles shipped (+4% from 2010)
Strong growth on Asian markets
Leadership
strengthened on the European two-wheeler market
and the US scooter market
More than 150,000 Vespa scooters sold in one year
***
Parent company Piaggio & C. S.p.A.: net profit € 47.0 million
Proposed dividend € 0.082 per share (€ 0.07 in 2010)
Rome, 23 February 2012 – At a meeting today in Rome chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the 2011 draft financial statements.
The Piaggio Group’s results for 2011 confirm the success of the strategic decisions taken by the Group to globalise its industrial and commercial operations by investing in the regions with the highest growth rates. The main indicators for FY 2011 reflect significant improvements from 2010, despite the two-wheeler market crisis in Europe (in Italy in particular), the impact of non-recurring restructuring charges and the exchange-rate effect, which was particularly significant in 2011.
Group consolidated net sales in 2011 amounted to 1,516.5 million euro – up 2.1% from 1,485.4 million euro in 2010 – including 1,025.3 million euro in the two-wheeler business and 491.1 million euro in commercial vehicles. Net of the exchange-rate effect described above, consolidated net sales growth was 5.2%.
In 2011 the Piaggio Group shipped a total of 653,300 vehicles worldwide (up 4.0% from 628,400 in 2010), including 415,000 vehicles in the two-wheeler business (scooters and motorcycles) and 238,300 three- and four-wheel commercial vehicles.
Looking at performance in the different geographical and business areas, in 2011 the Piaggio Group confirmed its position as European leader in the two-wheeler sector, raising its market share to approximately 20.1%; its market share in scooters improved to approximately 27.6%.
Although the two-wheeler market in the EMEA area showed an overall decline of 9.5% (-11% in scooters and -7% in motorcycles), the Group’s commercial operations in Europe were particularly incisive, so that, with shipments of approximately 300,000 vehicles, the sales slowdown was smaller than the market downturn – leading to an improvement in market share in almost every country – and the revenue decline was contained at 3.5% (2011 turnover 802.5 million euro); this was also thanks to the positive effect on the mix of higher sales of top-end motorbikes, as a result of the success of the latest Moto Guzzi and Aprilia models.
On the American scooter market, which showed signs of an upturn in 2011 (with a 6% increase in overall vehicle registrations from 2010), Piaggio Group penetration made significant progress (market share rising from 27.1% to almost 30%), with shipments of 10,300 vehicles (+63.8% from 2010) and revenues of 35.4 million euro (+53.0%).
Particularly worthy of note is the extraordinary progress in worldwide sales of Vespa branded vehicles to more than 150,000 scooters shipped in 2011. As a comparison, worldwide Vespa scooter sales in 2003 were approximately 50,000.
On the Asian market, 2011 was an extraordinarily positive year for the Group, which reported strong growth compared with 2010, with 104,800 vehicles shipped (+75.9% from 2010) and revenues of 187.5 million euro (+40.8% from 2010). Excluding the exchange-rate effect, revenue growth in this area was 55.1%.
The result reflected the growing success of operations in Vietnam (where marketing began of the Liberty scooter produced in the Vinh Phuc factory, and the milestone of 100,000 Vespas produced since production began in Vietnam in June 2009 was reached in the second half of 2011) and entry on to important new markets in South East Asia: Indonesia, Thailand, Taiwan and Malaysia.
In the commercial vehicles business, the Piaggio Group closed 2011 with a total of 238,300 shipments (+2.1% from 2010) and revenues of 491.1 million euro. This result was substantially in line with the 2010 figure (a reduction of approximately 1%), but would have shown growth of 4.3% at constant exchange rates.
On the Indian three-wheeler market, Piaggio Vehicles Private Limited confirmed its position as the subcontinent’s main player, with a market share of 37.1%. Shipments in India (3- and 4-wheel commercial vehicles) rose by 2.4%, from 219,600 vehicles in 2010 to 225,000 in 2011.
* * *
Consolidated EBITDA was 200.6 million euro in
2011, an increase of 1.7% from 197.1 million in 2010. Although an improvement
was reported, the result was affected by non-recurring restructuring charges
for approximately 17 million euro, and by the exchange-rate effect, net of
which EBITDA growth would have been 8.4%.
The EBITDA margin was 13.2%,
in line with 2010.
Consolidated EBIT for 2011 was 105.5 million euro, compared with 111.1 million euro in 2010. The EBIT margin was 7.0% (7.5% in 2010).
Profit before tax in 2011 was 79.3 million euro (83.8 million in 2010).
Consolidated net profit in 2011 was 47.0 million euro, an improvement of 9.8% from 42.8 million in 2010.
2011 financial operations showed net financial charges of 28.7 million euro (32.5 million euro in 2010).
In 2011, the Piaggio Group reported a significant increase in capital expenditure – in particular for the expansion of Group industrial operations in the emerging countries – for a total of 126.1 million euro, up by 31.1% from 96.2 million euro in 2010. Of the total, 38.3 million euro were in the R&D area, which also reported expenditure of 30.2 million euro.
Consequently, R&D expenditure and investments in 2011 increased by 8.9% from 2010. Work concentrated in particular on the development and industrialisation of new engines featuring some of the lowest emission and fuel consumption levels anywhere in the world.
Consolidated net debt at 31 December 2011 was down to 335.9 million euro, a reduction of 14 million from 349.9 million euro at 31 December 2010. The improvement in the net financial position was largely due to the positive trend in operating cash flow and positive management of working capital, enabling the Group to self-fund a larger investment program and also distribute dividends for an amount of 25.7 million euro and buy back shares for approximately 9.1 million euro.
Shareholders' equity at 31 December 2011 totalled 446.2 million euro, from 442.9 million euro at 31 December 2010.
* * *
Events after 31 December 2011
On 6 January 2012 the Vespa scooter developed for the Indian market was presented at the Auto Expo show in Delhi, Asia’s main motor show. Powered by a new low-emission fuel-efficient Piaggio engine with a capacity of up to 60 km/litre, the scooter will be produced in the Piaggio plant in Baramati (India) and begin shipping in April in India’s 35 largest cities. Initial production capacity is 150,000 vehicles/year.
On 23 January 2012 the 130 million euro syndicated revolving line of credit arranged on 29 December 2011 was finalised. Specifically, early repayment was made of the syndicated loan for a residual amount of 65 million euro with final maturity in August 2012, and early cancellation was requested for the 100 million euro credit maturing in December 2012, on which no drawings have been made.
* * *
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, 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; Vespa production will begin during the first quarter of 2012 in the new Baramati facility with an initial production capacity of more than 150,000 vehicles/year;
- 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.
* * *
Piaggio & C. S.p.A.
The parent company reported 2011 net sales of 948.1 million euro and a net profit of 47.0 million euro.
Proposed dividend of 0.082 euro
The Board of Directors will ask the shareholders' meeting to approve distribution of a dividend of 0.082 euro per ordinary share (compared with a dividend of 0.07 euro for 2011), not including the quota for remaining own shares pursuant to art. 2357-ter Italian Civil Code, for a total amount of € 29,892,998.24. The ex dividend date will be 14/05/2012, with payment on 17/05/2012.
* * *
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 Milan
+39 02 02.319612.15/16/17/18
Consolidated Income Statement
2011 | 2010 | |||||
---|---|---|---|---|---|---|
Total | of which related parties (Chapter F) | Total | of which related parties (Chapter F) | |||
In thousands of euro | Note | |||||
Net sales | 4 | 1,516,463 | 1,674 | 1,485,351 | 711 | |
Cost of materials | 5 | 904,060 | 38,786 | 881,075 | 40,584 | |
Cost of services and use of third-party assets | 6 | 266,484 | 3,817 | 258,358 | 6,057 | |
Employee expenses | 7 | 247,600 | 240,115 | |||
Depreciation property, plant and equipment | 8 | 35,219 | 35,879 | |||
Amortisation intangible assets | 8 | 59,794 | 50,127 | |||
Other operating income | 9 | 122,562 | 502 | 121,128 | 3,279 | |
Other operating expense | 10 | 20,323 | 14 | 29,821 | 43 | |
EBIT | 105,545 | 111,104 | ||||
Share of result of associates | 11 | 2,481 | 5,252 | |||
Finance income | 12 | 4,087 | 2,891 | 3 | ||
Finance expense | 12 | 31,853 | 305 | 33,905 | 347 | |
Net exchange-rate gains/(losses) | 12 | (932) | (1,518) | |||
Profit before tax | 79,328 | 83,824 | ||||
Income tax | 13 | 32,305 | 40,983 | 0 | ||
Result from on-going operations | 47,023 | 42,841 | ||||
Discontinued operations: | ||||||
Profit or loss from discontinued operations | 14 | |||||
Net profit (loss) for the period | 47,023 | 42,841 | ||||
Attributable to: | ||||||
Equity holders of the parent | 47,053 | 42,811 | ||||
Minority interests | (30) | 30 | ||||
Earnings per share (in €) * | 15 | 0.126 | 0.113 | |||
Diluted earnings per share (in €) * | 15 | 0.126 | 0.112 |
Consolidated Balance Sheet
At 31 December 2011 | At 31 December 2010 | |||||
---|---|---|---|---|---|---|
Total | of which related parties (Chapter F) | Total | of which related parties (Chapter F) | |||
In thousands of euro | Note | |||||
ASSETS | ||||||
Non-current assets | ||||||
Intangible assets | 16 | 649,420 | 652,622 | |||
Property, plant and equipment | 17 | 274,871 | 256,759 | |||
Investment property | 18 | |||||
Equity investments | 19 | 2,482 | 194 | |||
Other financial assets | 20 | 11,836 | 334 | |||
Non-current tax receivables | 21 | 976 | 967 | |||
Deferred tax assets | 22 | 55,726 | 46,294 | |||
Trade receivables | 23 | |||||
Other receivables | 24 | 15,165 | 405 | 12,655 | 443 | |
Total non-current assets | 1,010,476 | 969,825 | ||||
Assets held for sale | 28 | |||||
Current assets | ||||||
Trade receivables | 23 | 65,560 | 2,453 | 90,421 | 2,210 | |
Other receivables | 24 | 28,028 | 6,456 | 23,300 | 5,983 | |
Current tax receivables | 21 | 27,245 | 44,200 | |||
Inventories | 25 | 236,988 | 240,066 | |||
Other financial assets | 26 | 0 | 23,051 | |||
Cash and cash equivalents | 27 | 151,887 | 154,859 | |||
Total current assets | 509,708 | 575,897 | ||||
TOTAL ASSETS | 1,520,184 | 1,545,722 |
At 31 December 2011 | At 31 December 2010 | |||||
---|---|---|---|---|---|---|
Total | of which related parties (Chapter F) | Total | of which related parties (Chapter F) | |||
In thousands of euro | Note | |||||
SHAREHOLDERS’ EQUITY AND LIABILITIES | ||||||
Shareholders' equity | ||||||
Share capital and reserves attributable to equity holders of parent | 31 | 445,036 | 441,277 | |||
Share capital and reserves attributable to minority interests | 31 | 1,182 | 1,613 | |||
Total shareholders' equity | 446,218 | 442,890 | ||||
Non-current liabilities | ||||||
Borrowings due after one year | 32 | 329,200 | 2,900 | 371,048 | 2,900 | |
Trade payables | 33 | 235 | 88 | |||
Other non-current provisions | 34 | 12,429 | 16,993 | |||
Deferred tax liabilities | 35 | 32,735 | 32,338 | |||
Pension funds and employee benefits | 36 | 46,603 | 58,636 | |||
Non-current tax payables | 37 | 2,539 | 3,361 | |||
Other non-current payables | 38 | 5,948 | 4,202 | |||
Total non-current liabilities | 429,689 | 486,666 | ||||
Current liabilities | ||||||
Borrowings due within one year | 32 | 170,261 | 156,800 | |||
Trade payables | 33 | 375,263 | 18,903 | 352,627 | 12,857 | |
Tax liabilities | 37 | 20,920 | 19,290 | |||
Other current liabilities | 38 | 64,718 | 75 | 69,503 | 342 | |
Current portion of other non-current provisions | 34 | 13,115 | 17,946 | |||
Total current liabilities | 644,277 | 616,166 | ||||
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 1,520,184 | 1,545,722 |