|PIAGGIO 2005 DRAFT FINANCIAL STATEMENTS
March 17 2006
• NET SALES € 1,451.8 MLN
• EBITDA € 184.8 MLN, A 12.7% RETURN ON NET SALES
• OPERATING INCOME € 94.3 MLN
• NET PROFIT € 37.9 MLN
• NET DEBT DOWN TO € 411.4 MLN
The Board of Directors of Piaggio & C. S.p.A. examined and approved the 2005 draft financial statements at a meeting on March 8th 2006. These will be presented for the approval of shareholders at the meeting convened for 28 April (first call) and 3 May (second call).
Following the acquisition of the Aprilia Group (Aprilia and Moto Guzzi) at the end of December 2004, 2005 saw Piaggio consolidate its position as a top world player on the two-wheel vehicle market.
During the year the Piaggio Group maintained its leadership position on the European scooter market. In the motorcycle business, the Aprilia brand strengthened its reputation for innovative products at the leading edge of technology, while Moto Guzzi presented a number of models that were warmly received by the market.
With shipments of more than 610,000 vehicles during the year, the Piaggio Group's 2005 consolidated net sales totalled € 1,451.8 million, an overall increase of € 367.6 million on the 2004 figure of € 1,084.2 million1. This reflected the consolidation of Aprilia for € 351 million and growth in the light transport business.
The industrial gross margin was € 438.2 million, an increase of € 115.3 million from 2004 and an improvement in the return on net sales (from 29.8% to 30.2% in 2005).
EBITDA amounted to € 184.8 million. The return on net sales, 11.3% in 2004, was 12.7%, a gain achieved largely through improved operating efficiency.
After depreciation and amortisation for € 90.5 million, operating income totalled € 94.3 million, up € 32 million from 2004. Group profitability also made further progress, from 5.7% to 6.5%.
Net financial charges in 2005 amounted to € 30.3 million. 2005 closed with a consolidated net profit of € 37.9 million (after minority interests of € 0.2 million).
Net debt stood at € 411.4 million, down by € 110.1 million from € 521.5 million at the end of 2004. The reduction arose from cash flow on operations totalling € 128.6 million and more efficient management of working capital,which decreased by € 70.2 million.
Shareholders' equity amounted to € 348.5 million, up from € 251.2 million at 31 December 2004 as a result of profit for the year and the effect of fair-value measurement of the warrants issued for banks at the time of the Aprilia acquisition.