Slide 1: Piaggio Group Full Year 2016 Financial Results
COVER TITLE Piaggio Group Full Year 2016 Financial Results Full Year 2016Conference Call ||February February 27 2017 th Financial Results 27th 2017 1.
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: Highlights (1/3) Full year results: Market demand
Highlights (1/3) Full year results Market demand Positive demand trend in most of Piaggio’s key reference markets although affected by diverging trends throughout the year Western Countries overall positive demand strengthened across the year on the back of European replacement cycle: European 2
Slide 4: Highlights (2/3) Business Highlights
Highlights (2/3) Full year results Business Highlights Western Countries: revenues (€m) Western Countries: outstanding performance in Europe and improving trend in North America +5.7% 788 European leadership in 2 wheelers further strengthened driven by strong market share gain in Scooters 745 (25.
Slide 5: Highlights (3/3) Financial Highlights
Highlights (3/3) Full year results Financial Highlights Positive momentum confirmed, with improvement in all metrics despite severe impact of Indian banknote ban in Q4 Net Sales up by ~18€m (+1.4%; +2.8% at constant FX) EBITDA up by ~9€m (+5.6%; +7.0% at constant FX), with a significant uplift o
Slide 6: Healthy growth of all key metrics
Healthy growth of all key metrics Net Debt below December 2015 even after dividend payment and buy-back P&L (€m) Change 2016 vs. 2015 2015 2016 Absolute % % excl. FX (*) Net Sales 1,295.3 1,313.1 17.8 +1.4% ~ +2.8% Gross Margin 374.4 389.2 14.8 +3.9% ~ +4.9% % on Net Sales 28.9% 29.6% +0.7% EBITDA 1
Slide 7: Volume grew above 2015 mainly driven by Western Countries
Volume grew above 2015 mainly driven by outstanding performance in Western Countries … Volume evolution by Business (kunits) +2.4% 532.0 519.7 184.3 -6.0% 173.3 India CV Of which: Domestic -1.6% 14.7 +14.7% Western Countries CV 12.8 39.6 India 2W 28.3 +39.7% 81.6 Asia Pacific 2W 88.1 -7.3% +8.1% 222
Slide 8: Net Sales slightly up despite negative FX and dilutive mix
…leading Net Sales slightly up, despite negative FX and dilutive mix effect of scooters recently launched in Europe and in India Net Sales evolution by Business (€m) 1,295.3 +1.4% 1,313.1 +2.8% excl. FX 330.6 -7.0% 307.3 India CV -3.2% excl. FX 89.3 Western Countries CV +11.9% 79.8 +37.6% 31.9 India
Slide 9: Net Sales evolution by Product
Scooters revenue growth acceleration in Western Countries and India partially offset by negative performance in Vietnam Bikes positive performance in Europe overshadowed by N.A. market weakness Net Sales evolution by Product (€m) 1,295.3 +1.4% 1,313.1 Other 3.2 2.9 n.m. Spares Parts and 169.0 Access
Slide 10: Product profitability and top line growth drove EBITDA uplift
Heightened product profitability coupled with top line growth drove EBITDA uplift coupled with a significant rise of the ratio on Net Sales, … 8.0 5.7 (4.7) 170.7 161.8 * (13.0%) * (12.5%) EBITDA FY 2015 Gross Margin Gross Margin OpEx effect EBITDA FY 2016 Net Sales effect COGS effect * % on Net Sal
Slide 11: Net Result well above prior year
…and led Net Result well above prior year, despite higher D&A and tax rate Net Income evolution (€m) 9.0 1.2 (4.8) (3.2) 14.0 *(1.1%) 11.9 *(0.9%) FY 2015 Change in Change in D&A Change in Change in Taxes FY 2016 EBITDA Financial Expenses * % on Net Sales Full Year 2016 Financial Results | February
Slide 12: Healthy Free Cash Flow generation led NFP below December 2015 (1/2)
Healthy Free Cash Flow generation led NFP below December 2015, even after dividend and buy-back (1/2) Net Financial Position evolution (€m) Operating Cash Change in Change in Equity NFP YE '15 Flow Working Capital CapEx and Other NFP YE '16 Free Cash Flow +32 €m; + 8€m vs. PY 123.4 5.4 (491.0) (498.
Slide 13: Balance Sheet evolution (2/2)
Healthy Free Cash Flow generation led NFP below December 2015, even after dividend and buy-back (2/2) Balance Sheet evolution (€m) Chg. Chg. ’15 vs YE 2014 2015 2016 ’16 vs YE ‘14 ‘15 Trade Receivable (*) 71.6 78.9 7.3 72.6 -6.3 Inventories 232.4 212.8 -19.6 208.5 -4.4 Commercial Payable -383.6 -378