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Consolidated statement of financial position

Statement of financial position As of 30 June 2011 As of 31 December 2010 Change
 In millions of Euro
Net working capital (13.0) 8.8 (21.8)
Net tangible assets 251.8 256.8 (5.0)
Net intangible assets 650.0 652.6 (2.6)
Financial assets 0.5 0.5 0.0
Provisions (115.0) (125.9) 10.9
Net capital employed 774.3 792.8 (18.5)
Consolidated net debt 332.1 349.9 (17.8)
Shareholders’ equity 442.2 442.9 (0.7)
Sources of funds 774.3 792.8 (18.5)
Minority interest capital 1.6 1.6 0.0

Net working capital as of 30 June 2011 was negative for 13.0 million euro, generating a positive cash flow of approximately 21.8 million euro in 2011. Specifically, net working capital is defined as the sum of trade receivables, inventories, trade payables and other non-trade assets and liabilities During 2011, in a particularly challenging market context, the Piaggio Group was able to maintain a balance in net working capital, thanks above all to a careful management in the collection of trade receivables, and to a major focus on inventory management and optimisation.

Plant property and equipment, comprising plant, property, machinery and industrial equipment, net of amortisation quota and assets held for sale, amounted to 251.8 million euro as of 30 June 2011, with a decrease of approximately 5.0 million euro compared to 31 December 2010. This decrease is basically due to the value adjustment of balance sheet items to the exchange rate in effect at the end of the period in a context of a substantial equilibrium between depreciation and new capitalisation.

Intangible assets, comprising capitalised development costs, costs for patents and know-how, as well as goodwill arising from acquisitions/mergers taking place within the Group over the last few years, totalled 650.0 million euro, with a decrease of approximately 2.6 million euro compared to 31 December 2010. As in the previous case, intangible assets decreased, due to the value adjustment of balance sheet items to the exchange rate in effect at the end of the period.

Financial assets, defined as the sum of “equity investments” and “other non-current financial assets” totalled 0.5 million euro, without any significant changes compared to 31 December 2010.

Provisions, comprising retirement funds and employee benefits, other long term provisions, from the current portion of other long term provisions, as well as deferred tax liabilities, totalled 115.0 million euro, registering a decrease compared to 31 December 2010 (- 10.9 million euro).

As fully described in the next section on the “Consolidated Cash Flow Statement”, net financial debt as of 30 June 2011 was equal to 332.1 million euro, compared to 349.9 million euro as of 31 December 2010. The improvement of approximately 17.8 million euro in consolidated net debt is mainly due to the positive operating cash flow trend, as well as the good management of net working capital, which allow for the self-financing of investments, as well as the distribution of dividends amounting to a sum of 25.7 million euro.

Shareholders' equity as of 30 June 2011 amounted to 442.2 million euro, down 0.7 million euro compared to 31 December 2010.