Header Relazione

Consolidated income statement

Vehicles
In thousands of units 1st half of 2011 1st half of 2010 Change
Two-wheeler 227.7 232.8 (5.1)
Commercial Vehicles 118.8 108.0 10.7
TOTAL VEHICLES 346.5 340.8 5.7
Net revenues
In millions of Euro 1st half of 2011 1st half of 2010 Change
Two-wheeler 578.7 582.0 (3.3)
Commercial Vehicles 251.3 238.8 12.5
TOTAL REVENUES 830.0 820.8 9.2
EBITDA
In millions of Euro 1st half of 2011 1st half of 2010 Change
EBITDA 120.3117.52.8
EBIT
In millions of Euro 1st half of 2011 1st half of 2010 Change
EBIT 75.0 74.6 0.4
Net income
In millions of Euro 1st half of 2011 11st half of 2010 Change
Net income 33.3 33.1 0.2

During the first half of 2011, the Piaggio Group sold 346,500 vehicles worldwide, registering a growth of approximately 1.7% in volume over the same period of the previous year when 340,800 vehicles were sold. This increase is the result of different business trends in the Two-wheeler and Commercial vehicles segments. The Two-wheeler segment was affected by a downturn compared to the first half of 2010, with the total number of vehicles sold equal to 227,700 (-2.2%), while the Commercial vehicles segment performed extremely well compared to the first half of the previous year (118,800 units, +9.9%).

The performance of the Two-wheeler segment took place in a particularly complex market context and competitive scenario, at least as concerns the European and American markets. In particular, the EMEA two-wheeler market declined by approximately 7% (-8% for scooters and - 6% for motorcycles), while the US market registered an increase of approximately 1% (+28% for scooters). Within the EMEA area, the Piaggio Group's share was 27.3%, in line with the previous year, while in the US its share registered a growth on the scooter market (from 24.4% to 24.6%). In Asia, the Group's performance was positive (37,200 units sold, +25.7% compared to the first half of 2010), based in particular on the success of the Vietnamese subsidiary.

The Commercial Vehicles business performed particularly well on the Indian market, where the subsidiary Piaggio Vehicles Private Limited sold more than 111,400 units and increased its excellent sales figure of the previous half year by 11%.

In terms of consolidated turnover, the Group ended the first half of 2011 with increased net revenues compared to the first half of 2010, equal to 830.0 million euro (+1.1%). In particular, the Two-wheeler segment was affected by a downturn compared to the first six months of 2010 with a total turnover of 578.7 million euro (-0.6%), while the Commercial vehicles business performed excellently, with a turnover of approximately 251.3 million euro (+12.5 million euro, +5.2%). Consequently, the turnover composition changed considerably compared to 2010; in particular, sales in the Two-wheeler segment fell from 70.9% of total turnover in the first half of 2010 to 69.7% of total turnover in the first half of 2011; whereas, the same parameter in the Commercial Vehicles segment rose from 29.1% in the first half of 2010 to 30.3% in the first half of 2011.

Turnover from the Two-wheeler segment basically reflects the trend for volumes: the EMEA market registered a drop in turnover due to the aforesaid market downturn. The increase in turnover in the North American and Asian markets was less than the corresponding growth in sales due to a different mix of sold products.

In terms of the trend on Commercial Vehicles business turnover, the excellent performance achieved by the subsidiary Piaggio Vehicles Private Limited in terms of units sold (+11% compared to the first half of 2010) generated a corresponding increase in turnover.

The drop in turnover registered on the European market was greater than the decline in sales due to the greater weight of three wheelers on total sales.

The Group's gross industrial margin defined as the difference between “net revenues” and “cost to sell” decreased compared to the first half of the previous year. In absolute terms, the margin was equal to 253.2 million euro (-11.8 million euro down compared to the first half of 2010), while in relation to net turnover, it was equal to 30.5% (32.3% in the first half of 2010). The decrease in percentage terms, due mainly to the different business mix between the Two-wheeler and Commercial vehicles businesses, described previously, remained within 1.8 percentage points, thanks to important actions taken to curb product costs.

For example, the "cost to sell" includes costs for materials (direct and consumables), accessory purchase costs (transport of incoming material, customs, warehousing), employee costs for direct and indirect manpower and relative expenses, work carried out by third parties, energy costs, depreciation of property, plant, equipment and industrial equipment, maintenance and cleaning costs net of sundry cost recovery recharged to suppliers. Amortisation/depreciation included in the gross industrial margin was equal to 16.4 million euro (16.4 million euro in the first half of 2010).

Operating expenses incurred during 2011 totalled 178.2 million euro, 12.3 million euro less compared to the same period of the previous year (190.5 million euro), and highlight the Group's constant focus on keeping costs down and maintaining high profitability levels.

For example, operating expenses include employee costs, costs for services and lease and rental costs, as well as operating costs net of operating income not included in the gross industrial margin. Operating expenses also include amortisation/depreciation not included in the gross industrial margin, amounting to 29.0 million euro (26.5 million euro in the first half of 2010).

These trends in the income statement resulted in a consolidated EBITDA, defined as operating income gross of amortisation/depreciation, which was higher compared to the first half of 2010, totalling 120.3 million euro (117.5 million euro in the first half of 2010). In relation to turnover, EBITDA totalled 14.5%, for an improvement compared to the budget forecasts and slightly higher than the 14.3% registered in the first half of last year. In terms of Operating Income (EBIT), the performance of the half year in progress also improved compared to the first six months of 2010, with a consolidated EBIT totalling 75.0 million euro for an increase of 0.4 million euro over the same period in 2010; in relation to turnover, EBIT was equal to 9.0%, compared to 9.1% for the first half of 2010.

The result of financial assets worsened compared to the first half of last year, with Net Charges amounting to 13.1 million euro (11.8 million euro in the first half of 2010). This growth is related to an increase in costs of Euribor index-linked loans and a negative effect from currency management.

Consolidated net profit stood at 33.3 million euro (4.0% of turnover), slightly up on the figure for the first half of 2010, of 33.1 million euro (4.0% of turnover). Income tax for the period is estimated at 28.5 million euro, equivalent to 46.1% of earnings before tax.