First Half of 2022 Financial Results | July 28th 2. 2022 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 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. This presentation has been prepared solely for the use at the meeting/conference call with investors and analysts at the date shown below. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or sale should follow any registration, qualification, notice, disclosure or application under the securities laws and regulations of any such jurisdiction. First Half of 2022 Financial Results | July 28th 3. 2022 H1 2022 – Highlights Record set of results, notwithstanding the challenging macro environment Net Sales €m 152 145 H1 ’22 H1 ’21 1,053 902 H1 ’22 H1 ’21 EBITDA €m (Margin %) EPS € Net Debt €m Highest First Half to date Highest First Half to date Net Debt dynamic well under control (16.0 %) (14.5 %) +5.3% +16.8% 0.13 0.12 H1 ’22 H1 ’21 +4.3% Highest First Half to date 397 380 402 June ’22 Dec. ’21 June ’21 ~ -4 (15.1% ex. FX ) First Half of 2022 Financial Results | July 28th 4. 2022 H1 2022 – Highlights Strong brands continued to deliver outstanding growth, with Motorbikes shining brightest as they surged to new record high Revenues * Revenues * Revenues * ∆22/21 ∆22/21 ∆22/21 * Based on management estimates 0 – 15% 15 – 30% Over 30% First Half of 2022 Financial Results | July 28th 5. 2022 First Half of 2022 Financial Results | July 28th 6. 2022 First Half of 2022 Financial Results | July 28th 7. 2022 Successfully unveiled the new MP3 First Half of 2022 Financial Results | July 28th 8. 2022 CHINA INDONESIA OTHER VIETNAM Revenues ∆22/21 ∆22/21 ∆22/21 ∆22/21 Revenues Revenues Revenues 0 – 20% 20 – 40% Over 40% 83 233 H1 ’18 H1 ’19 H1 ’20 H1 ’21 H1 ’22 H1 ’18-’22 Revenues CAGR +30% H1 2022 – Highlights APAC: outstanding multi-year growth trajectory despite multiple headwinds First Half of 2022 Financial Results | July 28th 9. 2022 H1 2022 – Key market demand Highlights Asia Pacific Asia Pacific saw patchy demand trends: Asean 5 ended slightly off prior year mostly reflecting Indonesian doubledigit dip in Q2, whilst the positive trend of Vietnam, Thailand and Malaysia cast a positive light on the remaining part of the year China, still grappling with lockdowns, slid well below 2021 levels. India Demand returned to growth, benefiting from a low-year ago base, whilst remaining significantly below pre-pandemic levels both in Two-Wheelers and in Light Commercial Vehicles. Europe & Americas Europe saw robust demand despite a challenging basis for comparison and supply constraints continuing to mar production; Scooters outstripped Motorbikes as the half year progressed. US demand reverted to negative in Q2, dragged down by Motorbikes, whilst Scooter kept on enjoying healthy growth. 447 446 396 411 2021 2022 EUROPE 2-Wheelers (k units) Bikes Scooters 843 857 1.2 1.1 2021 2022 CHINA Scooters (m units) +1.7% -5.8% 299 285 12 16 2021 2022 USA 2-Wheelers (k units) Bikes Scooters 312 301 -3.4% +3.9% -0.3% +30.1% -4.8% *Actual data & management estimates **SIAM sell-in data 5.7 5.6 2021 2022 ASEAN 5 * 2- Wheelers (m units) 73 113 38 45 2021 2022 INDIA** Commercial Vehicles (k units) Pax Cargo 111 158 +42.0% ~ -1% + 54.2% + 18.3% -52% vs. ‘19 2.0 2.3 2021 2022 INDIA** Scooters (m units) +14.1% -22% vs. ‘19 First Half of 2022 Financial Results | July 28th 10. 2022 564.9 609.4 166.5 233.5 29.6 33.0 63.7 70.1 77.0 107.2 2021 2022 Volume evolution by business (k units) Net Sales evolution by business (€m) 2-Wheelers: 139.4 151.4 70.9 90.1 32.6 30.2 9.4 34.8 6.9 42.1 2021 2022 +8.6% 320.6 287.1 -26.0% Of which: EMEA +7.0% +16.8% +7.9% +10.0% +39.2% +40.3% Of which: EMEA +4.0% EMEA & Americas Asia Pacific India Commercial Vehicles: EMEA & Americas India 1,053.1 901.7 H1 2022 – Evolution by business +12.9 % excl. FX +30.4% excl. FX +29.2% excl. FX +4.8% excl. FX +6.5% excl. FX Highlights CV India Quarterly improvement, albeit on a favorable basis for comparison, bodes well for the remaining part of the year. 2W India Subdued performance in a volatile market. 2W Asia Pacific Set a new record high against muted demand trends, benefiting from premium positioning and synchronized growth across all key markets, with Indonesia the outright best performer. 2W EMEA & Americas Healthy performance EMEA, notwithstanding macroeconomic headwinds and tough basis of comparison. USA stood out with revenue surging above 40%, mainly benefiting from the success of motorbikes. CV EMEA & Americas Strong revenue performance driven by the Porter NP6. Growing momentum in volumes coupled with positive pricing drove Net Sales uplift to a new all-time high, with positive contributions from all segments. +9.4% excl. FX +11.7% -7.4% +20.7% +27.0% +11.2% First Half of 2022 Financial Results | July 28th 11. 2022 517.1 563.9 173.4 237.3 119.0 149.7 91.1 101.4 1.0 0.7 2021 2022 217.3 238.9 25.5 32.7 44.2 49.0 2021 2022 +10.0% +10.8% +27.8% +9.1% +36.9% n.m. Scooters Revenues climbed to a new record high mainly drawing strength from the success of the new Aprilia SR GT and the unabated strong performance of Vespa, which posted solid growth across all geographies. Bikes Took the spotlight once again, with revenues reaching a new all-time high driven by the combined strong growth of Aprilia and Moto Guzzi and benefiting from both brands gaining market share. H1 2022 – Evolution by product Light Commercial Vehicles returned to growth; top Brands drove Two-Wheelers revenue upsurge to alltime highs. Volume evolution by product (k units) Highlights Net Sales evolution by product (€m) Scooters, Wi-Bike, kick-scooter Bikes Light Commercial Vehicles Spare parts and accessories Other +25.8% 10.2% 15.3% 74.5% ∆ ± p.p. Vs. 2021 1.3 p.p. -0.1 p.p. -1.2 p.p. 0.1% 9.6% 22.5% 14.2% 53.6% ∆ ± p.p. Vs. 2021 +11.3% -0.5 p.p. 3.3 p.p. n.m. -3.8 p.p. 1.0 p.p. Commercial Vehicles Back to growth, benefiting from the stabilization of quarterly volumes in India and ongoing strong performance of the new Porter NP6 in EMEA. 320.6 287.1 +11.7% +16.8% 1,053.1 901.7 First Half of 2022 Financial Results | July 28th 12. 2022 EBITDA evolution (€m) Highlights H1 2022 – EBITDA Evolution 144.6 * (16.0%) 2021 Net Sales Effect Gross Margin % Effect Cash OpEx Net Change 2022 152.2 * (14.5%) **(15.1%) Remarkable top line growth drove EBITDA uplift to 152€m representing an all-time high in H1. Gross margin grew by ~15 €m, underpinned by the top line increase more than offsetting the % margin dilution driven by the spike in input costs. Cash OpEx weight on sales kept below prior year, reflecting the company’s ability to manage efficiently its cost structure. * % On Net Sales ** Excluding FX Effect First Half of 2022 Financial Results | July 28th 13. 2022 * Figures at constant exchange rates are management estimates calculated using the average exchange rates for the corresponding period in the previous year H1 2022 – To sum up 2021 2022 Change 2022 vs. 2021 Absolute % % excl. FX* Net Sales 901.7 1,053.1 151.4 16.8% 12.9% Gross Margin 261.9 277.1 15.1 5.8% 5.3% % on Net Sales 29.1% 26.3% -2.7 EBITDA 144.6 152.2 7.6 5.3% 6.6% % on Net Sales 16.0% 14.5% -1.6 Depreciation (64.2) (66.4) (2.2) 3.5% EBIT 80.4 85.8 5.4 6.7% % on Net Sales 8.9% 8.1% -0.8 Financial Expenses (10.2) (12.9) (2.7) 26.4% Income before tax 70.2 72.9 2.7 3.9% Tax (26.7) (27.7) (1.0) 3.9% Net Income 43.5 45.2 1.7 3.9% % on Net Sales 4.8% 4.3% -0.5 P&L (€m) Highlights 1 Cost of funding below prior year. Financial expenses affected by negative currency effect. Tax rate kept @ 38.0%, in line with guidance provided in Q1 2022 conference call. 2 1 2 First Half of 2022 Financial Results | July 28th 14. 2022 H12022 – Net Financial Position Evolution & Gross Cash NFP H1 2022 evolution (€m) Highlights YE ´21 Operating H1 ´22 Cash Flow Change Working Capital CapEx Change Equity & Other Gross Cash* (€m) (423.6) YE ‘20 H1 ‘21 101.7 (9.5) (69.1) (1.3) (401.9) NFP H1 2021 evolution (€m) ∆22/21 -2.8 -2.5 +2.4 -36.0 +4.5 * Gross Cash calculated as liquidity plus committed undrawn credit lines 387 400 452 479 H1 2019 H1 2020 H1 2021 H1 2022 Net Debt and Leverage kept under control whilst returning value to shareholders through dividend and buy-backs. Working capital dynamic still affected by significant increase of inventories to secure production. CapEx in line with full year target, whilst keeping the flexibility to adjust the investment profile from Q3 onwards consistent with market dynamics. Liquidity profile strengthened across the years with Gross Cash* reaching ~479€m at end June ‘22, providing comfortable headroom to cover potential headwinds in the coming quarters & medium-term maturities. Of which: Receivables -74 Inventories -100 Payables +131 Other +31 (380.3) (397.4) First Half of 2022 Financial Results | July 28th 15. 2022 Investor Relations Office E: [email protected] T: +39 0587 272286 W: www.piaggiogroup.com Raffaele Lupotto Executive Vice President Head of Investor Relations E: [email protected] T: +39 0587 272596
