Piaggio & C. S.p.a. · MIL:PIA
Piaggio & C — Investor Day (December 2011)
29 slides from Piaggio & C's investor day presentation, Dec 14, 2011
Slide 1: Piaggio Group Analyst and Investor Meeting
PIAGGIO GROUP ANALYST AND INVESTOR MEETING Milan, December 14th 2011
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements regarding future events and future results of Piaggio & C S.p.A (the “Company”). that are based on the current expectations, estimates, forecasts and projections about the industries in which the Company operates, and on the beliefs an
Slide 3: Roberto Colaninno, Chairman and CEO
PIAGGIO GROUP ANALYST AND INVESTOR MEETING Roberto Colaninno Chairman and CEO Piaggio Group
Slide 4: Manufacturing footprint evolution aligned with market dynamics
Manufacturing footprint evolution aligned with market dynamics Europe 4 plants for 2W and CV (vehicles & engines) China 1 plant for 2W India 2 plants for 2W and CV (vehicles & engines) Vietnam • CV with more than 300 kunits/y 1 plants for 2W (vehicles & engines) • 2W starting in Q1 2012 with more th
Slide 5: Accelerating strategic exposure to Asia
Accelerating strategic exposure to Asia Revenues breakdown (€ bn) 2 50% 40% New plan Plan 2010-2013 1.5 38% 25% New plan inception 8% 1 2003 2009 2011 expected 2013 exp. 2014 exp. Asia Rest of the World 5
Slide 6: Focus on India
PIAGGIO GROUP ANALYST AND INVESTOR MEETING Focus on India Ravi Chopra Chairman and Managing Director Piaggio Vehicles Private Ltd
Slide 7: Commercial Vehicles - Maintain Leadership in 3W
Commercial Vehicles - Maintain Leadership in 3W 3W Market trend Thousand units +14% +2.5% 502 519 348 411 2008 2009 2010 2011E 2014E Strategic guidelines Actions Consolidate 3W market • Maintain market share leadership • Introduce Apé City Pax in petrol /gas versions Develop and commercialize by Jul
Slide 8: Commercial Vehicles – Grow in 4W
Commercial Vehicles – Grow in 4W 4W Market trend Thousand units +29% +18% 320 180 236 150 2008 2009 2010 2011E 2014E 4 Wheels** Strategic guidelines Actions Enhance 4 W product portfolio • Push on sub 0.5t cargo segment with Apé Mini • Focus on cost competitiveness and accelerate development and mar
Slide 9: 2 Wheelers – Market trend
2 Wheelers – Market trend 2W Market trend Market Million units Total 2 Wheels • India is the second largest 2W market in the world, expected to +22% continue growing at double digit +6% rate in the next three years 13.1 11.3 7.3 8.6 •Scooters is the fastest growing 2008 2009 2010 2011E 2014E segment
Slide 10: 2 Wheelers – Enter a booming Scooters market
2 Wheelers – Enter a booming Scooters market Strategic guidelines Actions • Develop exclusive dealer network, initially targeting the top 35 cities • Position the Vespa as a lifestyle, iconic, timeless and ageless product. Create an exclusive premium segment • Sustain Vespa brand image through an ap
Slide 11: Focus on Asia Pacific
PIAGGIO GROUP ANALYST AND INVESTOR MEETING Focus on Asia Pacific Costantino Sambuy EVP South East Asia 2 Wheeler
Slide 12: 2 Wheels Asia Pacific: Key Drivers, Roll out, Strategic Plan Focus
2 Wheels Asia Pacific 2012-2014 profitable growth plan • Key Drivers • Roll out • Strategic Plan Focus
Slide 13: 2 Wheels Asia Pacific – Key drivers
2 Wheels Asia Pacific – Key drivers 2W Asia Pacific Market trend Million units Key Growth Drivers +11% +5% 19.0 External 14.4 16.5 12.0 11.8 •Demographic wave 2008 2009 2010 2011E 2014E •GDP per capita •Lack of direct competitors ……of which Vietnam of which Vietnam •Affluent consumer in search for d
Slide 14: 2 Wheels Asia Pacific – Roll out plan
2 Wheels Asia Pacific – Roll out plan 2009 2010 2011 2014 (with subsidiary)) Countries Thailand Indonesia Philippines 1 Vietnam Malaysia Korea Taiwan Cambodia 8 Products 1 Vespa LX Vespa S >6 >7 Liberty Fly New 1 New 2 point of sales Exclusive 88 Vietnam >120 Vietnam 50 Vietnam 80 Vietnam 35 Indones
Slide 15: 2 Wheels Asia Pacific – Strategic Plan Focus
2 Wheels Asia Pacific – Strategic Plan Focus • Speed of execution and backbone building • Deployment of plan in Indonesia, Thailand and Taiwan • Lifestyle marketing leadership • Manufacturing footprint extension • Cost planning and Asean localization • Local talent development
Slide 16: Financials
PIAGGIO GROUP ANALYST AND INVESTOR MEETING Financials Gabriele Galli CFO Piaggio Group
Slide 17: Emerging Countries’ growth will continue to outpace Mature Countries
Emerging Countries’ growth will continue to outpace Mature Countries … GDP ( Trillion USD) Mature Countries Europe USA +1.1% +1.5% +2.0% +1.8% 15.8 14.3 15.1 15.3 2008 2011 2014 2008 2011 2014 Emerging Countries India Asean 5 +9.8% +8.0% +6.5% +6.1% 3.4 4.5 2.9 2.4 2008 2011 2014 2008 2011 2014 Chin
Slide 18: …with the need for mobility amplifying the gap
…with the need for mobility amplifying the gap Volumes 2Wheeler Commercial Vehicles (Million units) 15.0 13.5 13.0 2.2 1.5 1.5 1.0 0.5 0.5 2008 2011E 2014E 2008 2011E 2014E 2008 2011E 2014E Europe China North America 15.8 17.4 13.1 14.5 7.3 11.0 0.8 0.4 0.5 2008 2011E 2014E 2008 2011E 2014E India –
Slide 19: Piaggio development strategy consistent with worldwide economic scenario
Piaggio development strategy consistent with worldwide economic scenario: gain position in Emerging Markets and maintain leadership in Mature … • Grow in Asia Pacific: • Extend vehicles and engines range to address new market segments with premium positioning • Complete Indonesia market penetration
Slide 20: Manufacturing footprint evolution aligned with market dynamics
… with manufacturing footprint evolution aligned with market dynamics Europe 4 plants for 2W and CV (vehicles & engines) China 1 plant for 2W India 2 plants for 2W and CV (vehicles & engines) Vietnam • CV with more than 300 kunits/y 1 plants for 2W (vehicles & engines) • 2W starting in Q1 2012 with
Slide 21: Strong development of presence in Emerging Markets will drive sales volume growth
Strong development of presence in Emerging Markets will drive the significant growth in sales volume… (,000 units) CAGR 11-14 ̴1,035 +16.4% 59 143 285 +8.0% 175 15 +3.5% 628 ̴655 143 n.a. 226 220 280 +38.6% 14 14 60 105 335 310 312 +0.1% 2010 2011E 2W Asia Pacific 2W India CV India 2014E 2W Western
Slide 22: Net Sales growth with positive mix effect in Western Countries
…and in Net Sales, which will also benefit from positive mix effect in Western Countries (€m) CAGR 11-14 ̴2,000 +9.6% 11 106 103 504 +8.2% 64 197 1,485 ̴1,520 +3.6% 110 389 398 103 n.a. 99 382 +27.3% 108 133 185 838 855 902 +2.5% 2010 2011E 2W Western 2W Asia 2W India CV Europe CV India 2014E Countr
Slide 23: Scooters growth driven by Asia Pacific and India
Scooters growth driven by Asia Pacific and India, whilst Bikes will mainly benefit from Moto Guzzi relaunch. India will continue to sustain CV business (€m) CAGR 11-14 ̴2,000 +9.6% 54 112 250 +8.5% 42 ̴1,520 273 1,485 196 566 7.6% 184 454 198 +8.3% 456 136 156 987 +11.4% 711 714 2010 2011E Scooters
Slide 24: Net Sales growth and cost efficiencies lead to EBITDA improvement
Net Sales growth and cost efficiencies will lead to 100 €m EBITDA improvement despite higher OpEx to sustain business expansion (€m) 155 (55) ̴ 00 3 ( ̴15.0%) ̴ 200 ( ̴13.2%) 2011E Change in Cash Gross Margin Change in Cash OpEx 2014E 24
Slide 25: Growth in EBITDA will drive Net Income improvement
Growth in EBITDA will drive Net Income improvement to 80 €m (€m) 100 (37) (12) (16) ̴ 0 8 ( ̴4.0%) ̴ 5 4 ( ̴2.9%) 2011E Change in EBITDA Change in Change in Financial Change in Taxes 2014E Depreciation Expenses Note: Change in Financial Expenses includes about 4 €m one-off income in 2011 related to
Slide 26: Group development will require around 400 €m in CapEx 2012-2014
Group development will require around 400 €m in CapEx in the period 2012 - 2014 , of which around 50% dedicated to Emerging Countries (€m) 45 ̴ 400 115 70 170 New Products 2 Wheels New Products Manufacturing Other Total Commercial Vehicles 26
Slide 27: Operating Cash Flow to finance CapEx, Working Capital and Dividends
Increase in Operating Cash Flow will finance CapEx, Working Capital and Dividends ensuring a stable Net Financial Position and an improvement in Debt/EBITDA ratio (€m) Change in Working NFP YE '11 Operating Cash Flow Capital Capex Dividends and Other NFP YE '14 535 (45) (400) ̴(345) ̴(340) (85) 1.7x
Slide 28: Revenues growth will drive steady increase in EBITDA margin
Revenues growth will drive the steady increase in EBITDA margin (€m) €m (350) ̴ (345) ̴(340) ̴2,000 ̴1,850 ̴1,680 1,485 ̴1,520 ̴15.0% ̴14.5% ̴14.0% 13.3% ̴13.2% 2010 2011E 2012E 2013E 2014E Net Sales EBITDA Margin % Net Financial Position 28
Slide 29: Contacts
Contacts Investor Relations Office E: investorrelations@piaggio.com T: +39 0587 272286 W: www.piaggiogroup.com Raffaele Lupotto Head of Investor Relations E: r.lupotto@piaggio.com T: +39 0587 272596 PIAGGIO