Piaggio Group Full Year 2019 Financial Results
Highlights:
EMEA & Americas
2 Wheelers demand posted diverging dynamics:
▪ European 2 Wheelers, despite the backdrop of economic uncertainty, posted
healthy demand trend across all product segments and all countries, suggesting
that the replacement cycle is well underway
▪ North America subdued demand persisted, namely with US Scooter declining
for the seventh consecutive year
Asia Pacific
Asia Pacific posted mixes and overall weakening demand trends:
▪ The Philippines and Malaysia posted sound growth, whilst Indonesia ended just
slightly up versus prior year as demand took a downward turn in H2
▪ Vietnam and Thailand ended down low single digit as demand weakness
persisted across the year
India
Demand negatively affected by multiple external shocks and sharp dealers’
inventory correction ahead of BS VI introduction:
▪ 3 Wheelers showed resilience edging slightly off prior year, mainly reflecting
the reversal of 2018 boost, whilst ending with the second highest total demand
to date
▪ 2 Wheelers ended down double-digits, after 15 years of relentless upward
trend, as price hikes linked to new regulations coupled with higher insurance
costs took their toll
Net Sales grew at the fastest yearly rate to date, with
positive contribution of all regions boosted by
widespread significant positive price/mix effect
2W India
Market share gain, with highest sell-out to date,
coupled with positive price effect unable to offset
demand downward trend
2W Asia Pacific
Outstanding performance, against sequentially softer
demand, driven by Indonesia, Thailand and China and
ongoing widespread product offering premiumization.
Vietnamese revenues on the rise, despite heightened
competitive intensity and market decline
2W EMEA & Americas
Healthy performance across the year of major
European countries all ending with volumes and
revenues on the rise, against dealers’ stock
containment. USA resilient despite market weakness
Revenues on the rise across all segments. Top brands
drove Two Wheelers growth
Commercial Vehicles
Sound performance with synchronized revenue growth
in domestic and export markets
Bikes
Outstanding revenue growth across the year powered
by market share gain coupled with the ongoing mix
shift towards high value segments. Moto Guzzi was the
outright bright star with volumes and revenues
skyrocketing fueled by the V85TT
Scooters
Healthy performance, despite Indian downward trend,
boosted by strong brand reputation enabling premium
prices.
Top products kept shining:
Vespa posted strong results, with revenues
reaching an all-time high benefitting from
significant price/mix uplift
MP3 volume and revenue grew double-digits,
with positive performance spread across all
European countries, mainly behind the successful
launch of the new 300cc version
Net Financial Position
All-time high Free Cash Flow
generation, enabling Net Debt
reduction* whilst returning value to
shareholders through dividends and
buybacks.
Financial profile further strengthened
with leverage reduced to 1.9x vs. 2.1x
Strongest Working Capital cash
generation to date, driven by strong
lower inventories and receivables
coupled with heightened efficiencies on
payables
CapEx step up (~26€m) driven by
heightened focus on new product
launches and new engine development
to fulfill new standards in India and
Europe.
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 and assumptions of the management of the Company. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management, competition, changes in business strategy and the acquisition and disposition of assets are forward-looking in nature. Words such as ‘expects’, ‘anticipates’, ‘scenario’, ‘outlook’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, as well as any variation of such words and similar expressions, are intended to identify such forward-looking statements. Those forward-looking statements are only assumptions and are subject to risks, uncertainties and assumptions that are difficult to predict because they relate to events and depend upon circumstances that will occur in the future. Therefore, actual results of the Company may differ materially and adversely from those expressed or implied in any forward-looking statement and the Company does not assume any liability with respect thereto. Factors that might cause or contribute to such differences include, but are not limited to, global economic conditions, the impact of
competition, or political and economic developments in the countries in which the Company operates. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect any change in its expectations with regard thereto, or any change in events, conditions or circumstances which any such statement is based on. The reader is advised to consult any further disclosure that may be made in documents filed by the Company with Borsa Italiana S.p.A (Italy).
The Manager in Charge of preparing the Company financial reports hereby certifies pursuant to paragraph 2 of art. 154-bis of the Consolidated Law on Finance (Testo Unico della Finanza), that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.
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