Piaggio & C

Quarterly Report • May 15, 2024

Interim report on operations as of 31 March 2024

This report is available on the Internet at: www.piaggiogroup.com

Contacts

Head of Investor Relations Raffaele Lupotto Email: investorrelations@piaggio.com Tel. +390587 272286 Fax +390587 276093

Piaggio & C. SpA Viale Rinaldo Piaggio 25 56025 Pontedera (PI)

Disclaimer

This Interim Report on Operations as of 31 March 2024 has been translated into English solely for the convenience of the international reader. In the event of conflict or inconsistency between the terms used in the Italian version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the sole official document.

Management and Coordination IMMSI S.p.A. Share capital €207,613,944.37 fully paid up Registered office: Viale R. Piaggio 25, Pontedera (Pisa) Pisa Register of Companies and Tax Code 04773200011 Pisa Economic and Administrative Index no. 134077

Report on Operations 5
Introduction 6
Key operating and financial data 7
Group profile 9
Significant events during the first quarter of 2024 13
Decarbonisation and sustainability 14
Financial position and performance of the Group 15 Consolidated income statement 15 Operating data 17
Consolidated statement of financial position 19 Consolidated Statement of Cash Flows 21 Alternative non-GAAP performance measures 22
Results by type of product 24 Two-wheelers 24 Commercial Vehicles 27
Subsequent events 30
Operating outlook 32
Transactions with related parties 33
Condensed Consolidated Interim Financial Statements as of 31 March 2024 35
Consolidated income statement 36
Consolidated Statement of Comprehensive Income 37
Consolidated Statement of Financial Position 38
Changes in Consolidated Shareholders' Equity 40
Consolidated Statement of Cash Flows 41

Piaggio Group

Report on Operations

Introduction

Article 154 ter (5) of the Consolidated Law on Finance, as amended by Legislative Decree 25/2016, no longer requires issuers to publish an interim report on operations for the end of the first and third quarter of the financial year. This provision gives CONSOB the power to require issuers, following a specific impact analysis and through its own regulation, to publish periodic financial information in addition to the annual and half-yearly financial reports.

In view of this, the Piaggio Group has decided to continue to publish the interim report on operations for the end of the first and third quarters of each financial year on a voluntary basis, to ensure the continuity and regularity of disclosure to the financial community.

Key operating and financial data

			2023
			Financial
	1st quarter		Statements1
	2024	20231
In millions of Euros
Operating highlights
Net revenues	428.0	543.9	1,985.1
Gross Industrial Margin	130.1	145.4	565.2
Operating income	41.3	44.9	180.7
Profit before tax	28.3	36.5	135.3
Net profit	18.7	24.1	91.1
.Non-controlling interests
.Group	18.7	24.1	91.1
Financial highlights
Net Capital Employed (NCE)	934.4	867.4	850.0
Consolidated net debt2	(498.0)	(428.0)	(434.0)
Shareholders' equity	436.4	439.4	416.0
Financial ratios
Gross Margin as a Percentage of Net Revenues (%)	30.4%	26.7%	28.5%
Net profit as a percentage of net revenues (%)	4.4%	4.4%	4.6%
ROS (Operating income/net revenues)	9.7%	8.2%	9.1%
ROE (Net profit/shareholders' equity)	4.3%	5.5%	21.9%
ROI (Operating income/NCE)	4.4%	5.2%	21.3%
EBITDA2	75.3	81.0	325.0
EBITDA/net revenues (%)	17.6%	14.9%	16.4%
Other information
Sales volumes (unit/000)	120.3	154.9	559.5
Investments in property plant and equipment and
intangible assets	38.9	32.4	162.9
Employees at the end of the period (number)	6,441	6,429	5,925

¹ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €2.9 mln was reclassified from cost of services to lower revenue in Q1 2023 (€9.5 mln over the 12 months of 2023) in order to allow for a better comparability with 2024 figures.

² Please refer to the section on "Alternative Non-Gaap Performance Indicators" for the definition of the parameter.

Results by operating segments

		EMEA and AMERICAS	INDIA	ASIA PACIFIC 2W	TOTAL
Sales volumes	1-1/31-3-2024	57.5	35.7	27.1	120.3
(unit/000)	1-1/31-3-2023	70.2	37.6	47.1	154.9
	Change	(12.7)	(1.9)	(20.0)	(34.5)
	Change %	-18.1%	-4.9%	-42.4%	-22.3%
Net revenues3	1-1/31-3-2024	281.9	79.4	66.7	428.0
(millions of Euros)	1-1/31-3-2023	339.6	85.1	119.3	543.9
	Change	(57.7)	(5.7)	(52.5)	(115.9)
	Change %	-17.0%	-6.7%	-44.0%	-21.3%
Average number of staff	1-1/31-3-2024	3,674.4	1,407.3	1,178.3	6,260.0
(no.)	1-1/31-3-2023	3,735.7	1,361.3	1,220.3	6,317.3
	Change Change %	(61.3) -1.6%	46.0 3.4%	(42.0) -3.4%	(57.3) -0.9%
Investments in	1-1/31-3-2024	30.2	5.9	2.8	38.9
Property, plant and equipment	1-1/31-3-2023	22.0	7.3	3.1	32.4
and intangible assets	Change	8.1	(1.4)	(0.3)	6.5
(millions of Euros)	Change %	36.9%	-18.7%	-8.8%	20.0%

³ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €2.9 mln was reclassified from cost of services to lower revenue in Q1 2023, in order to allow for a better comparability with 2024 figures.

Group profile

The Piaggio Group, headquartered in Pontedera (Pisa, Italy), is one of the world's leading manufacturers of powered two-wheelers and is also an international player in the commercial vehicle sector. Today the Piaggio Group has three distinct core segments:

• two-wheelers, scooters and motorcycles from 50cc to 1,100cc, with 436,300 vehicles sold in 2023. The Group's brands include: Piaggio (scooters include the Liberty, Beverly, Medley and MP3 models), Vespa, Aprilia (with Aprilia Racing in the MotoGP championship) and Moto Guzzi;
• light commercial vehicles, three-wheelers (Ape) and four-wheelers (Porter NP6) with 123,300 vehicles sold in 2023;
• the robotics division with Piaggio Fast Forward, the Group's research centre on the mobility of the future based in Boston.

Mission

We are dedicated to the mobility of people and things through high-value products and services that redesign and improve our lifestyles.

We are committed to broadening the horizons of our brands and products by constantly promoting technological innovation, uniqueness of design, attention to quality and safety, respecting communities and the environment.

We are customer-driven. The customer's satisfaction, safety, pleasure and emotions come first. We develop products to customer requirements, accompanying the changes in the ecosystem within which customers move.

We believe in people as our fundamental heritage, in their skills and genius, and we do so consistently with our deepest values, such as integrity, transparency, equal opportunities, respect for individual dignity and diversity.

For these reasons, we are not just vehicle manufacturers.

Through technological and social progress, we champion global mobility, in a responsible and sustainable way. Our aim is to make the quality of our life and that of future generations better.

Company Boards (at the date of approval)

Matteo Colaninno (1)
Michele Colaninno (1), (2)

Directors

Alessandro Lai (3), (4), (5)

Graziano Gianmichele Visentin (4), (5) Carlo Zanetti Andrea Formica (6) Ugo Ottaviano Zanello Micaela Vescia (6) Paola Mignani (5)

Patrizia Albano

Rita Ciccone (4), (6)

Raffaella Annamaria Pagani

Alessandro Lai Paola Mignani

Chair Raffaella Annamaria Pagani

Management Control Committee

Supervisory Body Antonino Parisi

Chief Financial Officer and Executive in Charge of financial reporting

Giovanni Barbara Fabio Grimaldi

Alessandra Simonotto

Independent Auditors Deloitte & Touche S.p.A.

Board Committees Nomination and Remuneration Committee Audit Risk and Sustainability Committee Related-Party Transactions Committee

(1) Executive Director

(2) Director responsible for the internal control system and risk management

(3) Lead Independent Director

(4) Member of the Nomination and Remuneration Committee

(5) Member of the Audit Risk and Sustainability Committee

(6) Member of the Related-Party Transactions Committee

All information on the powers reserved for the Board of Directors, the authority granted to the Executive Chairman and CEO, as well as the functions of the various Committees of the Board of Directors, can be found in the Governance section of the Issuer's website www.piaggiogroup.com.

The Shareholders' Meeting of Piaggio & C. S.p.A. of 17 April 2024, approved:

• proposals for amendments to the articles of association concerning the adoption of the administration and control model, (so-called one-tier control model), in which there is a Board of Directors, responsible for the management function, and a Management Control Committee, set up within the Board itself, with control functions;
• further amendments to the Articles of Association, also in line with the latest practices and guidelines, to which reference is made in the relevant explanatory report (see https://www.piaggiogroup.com/it/governance/shareholders' meeting).

The adoption of the one-tier system is functional to an even more profitable and timely synergy between management and control functions, to the benefit of the Company and all its stakeholders, confirming, once again, Piaggio's constant focus on observing international best practices on governance, as this model is the most commonly adopted among issuers listed on European and international stock markets.

Significant events during the first quarter of 2024

15 January 2024 - Jacopo Cerutti with an Aprilia Tuareg, triumphed on his debut in the Africa Eco Race 2024. Always in the lead from the first to the last, over 6,000 kilometres, the Italian offroader has proven to be a winning project.

19 January 2024 - The Vespa expressed all its lifestyle vocation with the new Fashion & Apparel project, conceived to create a Vespa collective that unites art, fashion, music and all other cultural experiences for a mythical journey around the world.

The official debut took place in Hong Kong, with the presentation of a Varsity Jacket inspired by the new Vespa 946 Dragon. The Vespa 946 Dragon has been produced in a limited edition of 1,888 units, and is intended to celebrate the year of the dragon in the lunar calendar.

12 March 2024 - Piaggio Fast Forward (PFF) unveiled kilo™, the revolutionary robot with smart following technology. Making its world premiere at Modex, the leading US trade fair for the supply chain industry, kilo™ is a hands-free robot platform with a load capacity of up to 130kg. In the redevelopment and modernisation project that will involve the Mandello del Lario production plant, the Piaggio Group has planned to integrate the kilo™ robot on its production lines; kilo™ will then be used at the Group's other production hubs in Italy, India, Vietnam and Indonesia.

27 March 2024 - The President of the Republic, Sergio Mattarella, received the Executive Chairman of the Piaggio Group, Matteo Colaninno, and the Chief Executive Officer, Michele Colaninno, at the Quirinale Palace on the occasion of the 140th anniversary of the Company's foundation.

Decarbonisation and sustainability

The Group is implementing measures to ensure the achievement of the targets set out in the Decarbonisation Plan presented at the end of 2023. In this regard:

• studies are continuing on the electric version of the Porter NP6, which is planned to go on sale in the first quarter of 2025;
• with the Vespa Primavera and Moto Guzzi Stelvio, the company has begun to adopt Euro 5+ engines, well ahead of the legal requirements;
• on 15 April 2024, the Ministry of Enterprise and Made in Italy authorised a Development Contract proposed by the Piaggio Group, which envisages an investment plan of approximately €112 million to expand production at the Pontedera plant, in the province of Pisa. The industrial development programme, called "E-Mobility", includes the introduction and development of a new line of electric motors dedicated to next-generation zeroemission vehicles and five industrial research and experimental development projects, aimed at the development of components and systems for electric-powered vehicles, as well as the development of solutions in the digital area, covering safety and vehicle status monitoring, advanced driver assistance systems and complete cybersecurity systems.

Financial position and performance of the Group

Consolidated income statement

	1st Quarter 2024		1st Quarter 20234		Change
	In millions	Accounting	In millions	Accounting	In millions
	of Euros	for a %	of Euros	for a %	of Euros	%
Consolidated income statement (reclassified)
Net revenues	428.0	100.0%	543.9	100.0%	(115.9)	-21.3%
Cost to sell5	298.0	69.6%	398.5	73.3%	(100.6)	-25.2%
Gross industrial margin5	130.1	30.4%	145.4	26.7%	(15.3)	-10.5%
Operating expenses	88.7	20.7%	100.5	18.5%	(11.8)	-11.7%
Operating income	41.3	9.7%	44.9	8.2%	(3.5)	-7.8%
Result of financial items	(13.0)	-3.0%	(8.4)	-1.5%	(4.7)	56.0%
Profit before tax	28.3	6.6%	36.5	6.7%	(8.2)	-22.5%
Income taxes	9.6	2.2%	12.4	2.3%	(2.8)	-22.5%
Net profit (loss) for the period	18.7	4.4%	24.1	4.4%	(5.4)	-22.5%
Operating income	41.3	9.7%	44.9	8.2%	(3.5)	-7.8%
Amortisation/depreciation and impairment costs	34.0	7.9%	36.2	6.7%	(2.2)	-6.1%
EBITDA5	75.3	17.6%	81.0	14.9%	(5.7)	-7.1%

Net revenues

	1st Quarter 2024	1st Quarter 2023	Change
In millions of Euros
EMEA and Americas	281.9	339.6	(57.7)
India	79.4	85.1	(5.7)
Asia Pacific 2W	66.7	119.3	(52.5)
TOTAL NET REVENUES	428.0	543.9	(115.9)
Two-wheelers	331.7	437.2	(105.5)
Commercial Vehicles	96.4	106.7	(10.4)
TOTAL NET REVENUES	428.0	543.9	(115.9)

The Group ended the first three months of 2024 with net revenues down on the same period of 2023.

The decline affected all geographic segments (EMEA and Americas -17.0%, India -6.7%; -4.7% at constant exchange rates, Asia Pacific -44.0%; -42.0% at constant exchange rates).

⁴ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €2.9 mln was reclassified from cost of services to lower revenue in Q1 2023, in order to allow for a better comparability with 2024 figures.

⁵ Please refer to the section on "Alternative Non-Gaap Performance Indicators" for the definition of the parameter.

This decrease was more pronounced for Two-Wheelers (-24.1%) than Commercial Vehicles (-9.7%). Consequently, the Commercial Vehicles' share of net revenues rose from 19.6% in the first three months of 2023 to the current figure of 22.5%; conversely, the share of Two-wheelers fell from 80.4% in the first three months of 2023 to the current figure of 77.5%.

The Group's gross industrial margin decreased compared to the corresponding period of the previous year (-10.5%), equal to 30.4% of net revenues (26.7% at 31 March 2023). Amortisation/depreciation included in the gross industrial margin was equal to €9.8 million (€10.1 million in the first three months of 2023).

Operating expenses incurred in the period were down compared to the same period of the previous financial year (-€11.8 million), amounting to €88.7 million.

The change in the aforementioned income statement resulted in a decrease in consolidated EBITDA which was equal to €75.3 million (€81.0 million in the first three months of 2023). In relation to net revenues, EBITDA was 17.6% (14.9% in the first three months of 2023).

Operating income (EBIT), at €41.3 million, also decreased compared to the first three months of 2023; in relation to net revenues, EBIT was 9.7% (8.2% in the first three months of 2023).

Financing activities showed a net expense of €13.0 million (€8.4 million as of 31 March 2023). The deterioration was mainly due to the rise in interest rates on debt, chiefly related to the issue of the new bond in October 2023, exacerbated by the negative impact of currency management.

Income taxes for the period are estimated to be €9.6 million, equivalent to 34% of profit before tax.

Net profit stood at €18.7 million (4.4% of net revenues), down on the figure for the same period of the previous financial year, of €24.1 million (4.4% of net revenues).

Operating data

Vehicles sold

	1st Quarter 2024	1st Quarter 2023	Change
In thousands of units
EMEA and Americas	57.5	70.2	(12.7)
India	35.7	37.6	(1.9)
Asia Pacific 2W	27.1	47.1	(20.0)
TOTAL VEHICLES	120.3	154.9	(34.5)
Two-wheelers	91.4	124.7	(33.4)
Commercial Vehicles	29.0	30.2	(1.2)
TOTAL VEHICLES	120.3	154.9	(34.5)

In the first three months of 2024, the Piaggio Group sold 120,300 vehicles worldwide, down 22.3% from the first three months of the previous year, when 154,900 vehicles were sold. Sales were down in all geographic segments.

The drop in sales of Commercial Vehicles was very slight (-3.9%), while the decrease in sales of Two-Wheelers was more considerable (-26.7%).

Staff

During the first three months of 2024, the average workforce was down overall, in all regions except India.

no. of people	1st Quarter 2024	1st Quarter 2023	Change
EMEA and Americas	3,674.4	3,735.7	(61.3)
of which Italy	3,403.0	3,462.3	(59.3)
India	1,407.3	1,361.3	46.0
Asia Pacific 2W	1,178.3	1,220.3	(42.0)
Total	6,260.0	6,317.3	(57.3)

Average number of company employees by geographic segment

At 31 March 2024, the Group had 6,441 employees, a total increase of 516 compared to 31 December 2023.

no. of people	As of 31 March 2024	As of 31 December 2023	As of 31 March 2023
EMEA and Americas	3,886	3,278	3,873
of which Italy	3,617	3,007	3,600
India	1,402	1,442	1,331
Asia Pacific 2W	1,153	1,205	1,225
Total	6,441	5,925	6,429

Breakdown of company employees by geographic segment

	As of 31 March	As of 31 December
	2024	2023	Change
In millions of Euros Statement of financial position
Net working capital	(103.9)	(178.7)	74.8
Property, plant and equipment	290.0	287.5	2.5
Intangible assets	760.5	754.1	6.3
Rights of use	37.3	36.9	0.4
Financial assets	8.3	8.5	(0.2)
Provisions	(57.9)	(58.4)	0.5
Net capital employed	934.4	850.0	84.4
Net financial debt	498.0	434.0	64.0
Shareholders' equity	436.4	416.0	20.4
Sources of financing	934.4	850.0	84.4
Non-controlling interests	(0.2)	(0.2)	0.0

Consolidated statement of financial position⁶

Net working capital as of 31 March 2024, which was negative by €103.9 million, used cash for approximately €74.8 million in the first three months of 2024.

Property, plant and equipment amounted to €290.0 million as of 31 March 2024, registering an increase of approximately €2.5 million compared to 31 December 2023. This was mainly due to investments, with a value exceeding depreciation by approximately €1.5 million, the effect of the revaluation in the Indian rupee and the Vietnamese dong on the euro by approximately €1.1 million, as well as disposals of €0.1 million.

Intangible assets totalled €760.5 million, up by approximately €6.3 million compared to 31 December 2023. This growth is mainly due to investments for the period, with a value exceeding amortisation by approximately €5.8 million, the effect related to the revaluation of the Indian rupee and Vietnamese dong on the euro (approximately €0.5 million).

Rights of use, equal to €37.3 million, increased by approximately €0.4 million compared to figures as of 31 December 2023.

Financial assets which totalled €8.3 million, decreased slightly compared to figures for the previous year (€8.5 million).

Provisions totalled €57.9 million, down on 31 December 2023 (€58.4 million).

⁶ For the definition of the individual items in the table, please refer to the section on "Non-GAAP Alternative Performance Indicators".

As fully described in the next section on the "Consolidated Statement of Cash Flows", net financial debt as of 31 March 2024 was equal to €498.0 million, compared to €434.0 million as of 31 December 2023, a growth of around €64.0 million.

Compared to 31 March 2023, net financial debt increased by approximately €70.0 million.

Group shareholders' equity as of 31 March 2024 amounted to €436.4 million, an increase of approximately €20.4 million compared to 31 December 2023.

Consolidated Statement of Cash Flows

The consolidated statement of cash flows prepared in accordance with the IFRS format is included in the 'Consolidated Financial Statements of the Condensed Consolidated Interim Financial Statements as of 31 March 2024'. The following is a commentary, with reference to the condensed form presented below.

	1st Quarter	1st Quarter
	2024	2023	Change
In millions of Euros
Change in Consolidated Net Debt
Opening Consolidated Net Debt	(434.0)	(368.2)	(65.8)
Cash Flow from Operating Activities	50.0	58.3	(8.4)
(Increase)/Reduction in Working Capital	(74.8)	(85.3)	10.5
Net Investments	(38.9)	(32.4)	(6.5)
Other changes	(2.0)	2.1	(4.1)
Change in Shareholders' Equity	1.7	(2.5)	4.3
Total Change	(64.0)	(59.8)	(4.2)
Closing Consolidated Net Debt	(498.0)	(428.0)	(70.0)

During the first three months of 2024, the Piaggio Group used financial resources amounting to €64.0 million.

Cash flow from operating activities, defined as Net Profit (loss) for the period, minus nonmonetary costs and income, came to €50.0 million.

Net working capital absorbed cash of approximately €74.8 million; in detail:

• the collection of trade receivables⁷ used financial flows for a total of €59.3 million;
• stock management absorbed financial flows for a total of approximately €75.1 million;
• supplier payments generated cash flows of approximately €44.3 million;
• the movement of other non-trade assets and liabilities had a positive impact on financial flows by approximately €15.3 million.

Investment activities used financial resources totalling €38.9 million. This change was generated by investments in capitalised development costs and in property, plant and equipment and intangible assets.

As a result of the above financial dynamics, which absorbed cash flow of €64.0 million, the consolidated net debt of the Piaggio Group amounted to €-498.0 million.

⁷ Net of customer advances.

Alternative non-GAAP performance measures

To facilitate the understanding of the Group's financial position and performance, Piaggio - in accordance with Consob Communication DEM/6064293 of 28 July 2006 as amended (Consob Communication 0092543 of 3 December 2015 enacting ESMA/2015/1415 guidelines on alternative performance measures), refers to some alternative performance measures (APM) in its Report on Operations, in addition to IFRS financial measures (Non-GAAP Measures) from which the APM are derived.

These measures also facilitate directors in identifying operational trends and in taking decisions about investments, resource allocation and making other operational choices. For a correct interpretation of these APMs, the following should be noted:

• the APMs are not required by International Financial Reporting Standards (IFRS) and, although they are derived from the Group's consolidated financial statements, they are not audited;
• the APMs should not be regarded as a substitute for the measures required by relevant accounting standards (IFRS);
• for their correct interpretation, these APMs must be read in conjunction with the Group's financial information taken from the consolidated financial statements;
• the definitions of the indicators used by the Group, as they are not derived from relevant accounting standards, may not be uniform with those used by other entities; therefore, the APM values calculated by the Group and presented in this document may not be comparable with those published by other groups/companies;
• the APMs used by the Group were prepared with a continuity and uniform definition and representation for all accounting periods presented in these Financial Statements.

In particular the following alternative performance measures were used:

• EBITDA: defined as "Operating income" before the amortisation/depreciation and impairment costs of intangible assets, property, plant and equipment and rights of use, as resulting from the consolidated income statement;
• Gross industrial margin: defined as the difference between net revenues and cost to sell;
• Cost to sell: this includes costs for materials (direct and consumables), accessory purchase costs (transport of incoming material, customs, warehousing), employee costs for direct and indirect manpower and related expenses, work carried out by third parties, energy costs, depreciation of property, plant, machinery and industrial equipment, maintenance and cleaning costs net of sundry cost recovery recharged to suppliers;
• Consolidated net debt: represented by the algebraic sum of financial payables, any significant financial component of trade and other non-current payables net of cash and

cash equivalents and current financial receivables. Consolidated net debt does not include other financial assets and liabilities arising from the fair value measurement of financial derivatives used as hedging and otherwise, and the fair value adjustment of related hedged items and associated deferrals. The Notes to the Consolidated Financial Statements include a table indicating the statement of financial position items used to determine the measure;

• Net capital employed: determined as the algebraic sum of Net fixed assets, Net working capital and Provisions.

In this regard:

• Net fixed assets are represented by:
  • o Tangible fixed assets: which consist of property, plant, machinery and industrial equipment, net of accumulated depreciation;
  • o Intangible assets: which consist of capitalised development costs, costs for patents and know-how and goodwill arising from acquisition/merger operations carried out by the Group;
  • o Rights of use: refer to the discounted value of lease payments due, as provided for by IFRS 16;
  • o Financial assets: defined by the Directors as the sum of investments, other non-current financial assets and the fair value of financial liabilities.
• Net working capital: defined as the net sum of: Trade receivables, Other current and non-current receivables, Inventories, Trade payables, Other current and noncurrent payables, Current and non-current tax receivables, Deferred tax assets, Current and non-current tax payables and Deferred tax liabilities.
• Provisions: consist of retirement funds and employee benefits, other non-current provisions and the current portion of other non-current provisions.

Results by type of product

The Piaggio Group is structured and operates by geographic segments. There are 3 operating segments - EMEA and Americas, India, and Asia Pacific 2W, dealing with the production and sale of vehicles, related spare parts and service in the specific regions.

For details of final results from each operating segment, reference is made to the Notes to the Condensed Consolidated Interim Financial Statements.

The volumes and net revenues in the three geographic segments, also by product type, are analysed below.

	1st Quarter 2024			1st Quarter 2023		Change %		Change
	Volumes	Net	Volumes	Net
Two-wheelers	Sell-in	revenues	Sell-in	revenues8	Volumes	Net	Volumes	Net
		(millions		(millions	Sell-in	revenues	Sell-in	revenues
	(units/000)	of Euros)	(units/000)	of Euros)
EMEA and Americas	54.2	254.0	67.0	306.5	-19.0%	-17.2%	(12.8)	(52.6)
of which EMEA	50.0	226.4	60.1	268.3	-16.8%	-15.6%	(10.1)	(41.8)
(of which Italy)	14.6	65.8	15.1	66.9	-3.4%	-1.7%	(0.5)	(1.1)
of which Americas	4.2	27.5	6.9	38.3	-38.9%	-28.1%	(2.7)	(10.7)
India	10.0	11.0	10.6	11.4	-6.0%	-3.4%	(0.6)	(0.4)
Asia Pacific 2W	27.1	66.7	47.1	119.3	-42.4%	-44.0%	(20.0)	(52.5)
TOTAL	91.4	331.7	124.7	437.2	-26.7%	-24.1%	(33.4)	(105.5)
Scooters	80.5	212.3	110.2	283.8	-27.0%	-25.2%	(29.8)	(71.4)
Combustion engine	79.6	209.6	108.5	277.6	-26.7%	-24.5%	(28.9)	(68.0)
Electric engine	0.9	2.7	1.7	6.2	-47.7%	-55.5%	(0.8)	(3.4)
Motorcycles	10.8	82.8	14.5	113.0	-25.0%	-26.7%	(3.6)	(30.2)
Other vehicles	0.024	0.046	0.008	0.004	200.0%	977.1%	0.016	0.041
Kick scooters Aprilia eSR	(0.001)	(0.0004)	0.007	0.003	-114.3%	-114.0%	(0.008)	(0.003)
Wi Bike	0.025	0.046	0.001	0.001			0.024	0.045
Spare Parts and Accessories		34.9		38.6		-9.5%		(3.7)
Other		1.6		1.8		-13.1%		(0.2)
Gita		0.01		0.03		-64.4%		(0.02)
Other		1.6		1.8		-12.4%		(0.2)
TOTAL	91.4	331.7	124.7	437.2	-26.7%	-24.1%	(33.4)	(105.5)

Two-wheelers

Two-wheelers can be grouped mainly into two product segments: scooters and motorcycles. Alongside these is the related spare parts and accessories business, the sale of engines to third parties, participation in major two-wheeler sports competitions, and after-sales services.

⁸ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €2.9 mln was reclassified from cost of services to lower revenue in the first quarter of 2023 (of which €0.8 mln relative to the Two-wheeler segment), in order to allow for a better comparability with 2024 figures.

In the global two-wheeler market, two macro-areas can be identified, distinctly different in terms of characteristics and scale of demand: the area of economically advanced countries (Europe, United States, Japan) and of developing countries (Asia Pacific, China, India, Latin America).

In the first macro area, which is a minority segment in terms of volumes, the Piaggio Group has a historical presence, with scooters meeting the need for mobility in urban areas and motorcycles for recreational purposes.

In the second macro area, which in terms of sales, accounts for most of the world market and is the Group's target for expanding operations, two-wheeler vehicles are the primary mode of transport.

Background

India, the most important two-wheeler market, reported an increase in the first three months of 2024, closing with sales of over 4.5 million vehicles, up by 24.9% compared to the first three months of 2023.

The People's Republic of China recorded a significant decrease in the first three months of 2024 (-20.6%), closing at just over 1 million units sold.

The Asian region called Asean 5 reported a decline in the first quarter of 2024 (-7.2% compared to the first quarter of 2023), closing at just over 3.3 million units sold. This decrease was caused by:

• Indonesia, the largest market in this region, (-4.9%, with over 1.7 million vehicles);
• Thailand (-11.6% with just under 448,000 units);
• Malaysia (-20.1% with just under 136,000 units);
• Vietnam (-4.9% with just under 604,000 units);
• Philippines (-9.7% with almost 404,000 units).

The other countries in the Asian area (Singapore, Hong Kong, South Korea, Japan, Taiwan, New Zealand and Australia) overall recorded a decrease of approximately 3.8% compared to the first three months of 2023, closing with sales of approximately 310,000 units. In the first three months of the year, the Japanese market declined by 8.4% to around 93,000 units sold.

The North American market recorded a decrease compared to the first three months of 2023 (-4.6%), selling 131,858 vehicles.

Europe, which is the reference area for the Piaggio Group's operations, reported a slight decrease overall in sales on the two-wheeler market (-0.2%) compared to the first three months of 2023 (+2.6% for the motorcycle segment and -3.8% for the scooter segment).

Over 50cc scooters reported an increase of 0.4%, while the 50cc segment recorded a decrease of 16.5%.

In the motorcycles market, the 50cc segment decreased by 3.8% and the 51-125cc segment by 3.0%, while medium-sized motorcycles (126-750cc) increased by 7.1%. Finally, the over 750cc segment recorded an increase of 1.5%.

The electric scooter segment continued its downward trend in 2023 (-29.3% compared to the same period in 2023), and with 14,276 units accounts for 9.5% of the total scooter market (down from 12.9% in the first three months of 2023).

Main results

In the first three months of 2024, the Piaggio Group sold a total of 91,400 two-wheeler vehicles worldwide, accounting for net revenues equal to approximately €331.7 million, including spare parts and accessories (€34.9 million, -9.5%).

Overall, volumes decreased by 26.7% and net revenues by 24.1%.

As the above table shows, all markets were down: EMEA and Americas (-19.0% volumes, -17.2% net revenues), India (-6.0% volumes; -3.4% net revenues; -1.3% at constant exchange rates), as well as Asia Pacific (-42.4% volumes; -44.0% net revenues; -42.0% at constant exchange rates).

Market positioning⁹

In the European market¹⁰, the Piaggio Group achieved a 19.6% share of the scooter business in the first three months of 2024 (compared to 21.7% in the same period of 2023), ranking second in this segment, and a 3.2% share in the motorcycle segment (compared to 3.7% in the first three months of 2023). The Group's overall share stood at 10.1% (compared to 11.5% in the corresponding period of 2023), due mainly to the mix of the aforementioned segments.

In Italy, the Piaggio Group had a 13.1% share of the entire Two-Wheeler market (a 14.8% share in the first three months of 2023), equal to 20.8% in the scooter segment (23.5% in the first three months of 2023).

The Group's position on the North American scooter market was positive, ending the period with a share of 27.3% (26.4% in the first three months of 2023).

⁹ Market shares for the first three months of 2023 might differ from figures published last year, due to final vehicle registration data, which some countries publish with a few months' delay, being updated.

¹⁰ Italy, France, Spain, Germany, United Kingdom, Belgium, Holland, Greece, Croatia, Portugal, Switzerland, Austria, Finland, Sweden, Norway, Denmark, Czech Republic, Hungary and Slovenia.

Commercial Vehicles

	1st Quarter 2024		1st Quarter 2023		Change %		Change
Commercial Vehicles	Volumes	Net	Volumes	Net			Volumes Sell-in
	Sell-in	revenues	Sell-in	revenues11	Volumes Sell-in	Net revenues		Net revenues
	(unit/000)	(millions of Euros)	(unit/000)	(millions of Euros)
EMEA and Americas	3.2	27.9	3.2	33.0	0.8%	-15.5%	0.0	(5.1)
of which EMEA	1.4	24.4	2.0	30.6	-31.3%	-20.0%	(0.6)	(6.1)
(of which Italy)	0.9	17.5	1.1	20.0	-13.9%	-12.6%	(0.1)	(2.5)
of which Americas	1.9	3.5	1.2	2.5	52.7%	40.3%	0.6	1.0
India	25.7	68.4	27.0	73.7	-4.5%	-7.2%	(1.2)	(5.3)
TOTAL	29.0	96.4	30.2	106.7	-3.9%	-9.7%	(1.2)	(10.4)
Ape	27.9	62.0	28.8	68.1	-3.1%	-9.0%	(0.9)	(6.1)
Combustion engine	25.0	50.3	23.2	46.3	8.0%	8.7%	1.8	4.0
Electric engine	2.9	11.7	5.6	21.8	-48.9%	-46.4%	(2.7)	(10.1)
Porter	1.1	18.4	1.4	23.7	-21.9%	-22.4%	(0.3)	(5.3)
Combustion engine	1.1	18.4	1.4	23.7	-21.8%	-22.4%	(0.3)	(5.3)
Electric engine	0.000	0.000	0.001	0.008	-100.0%	-100.0%	(0.001)	(0.008)
Spare Parts and Accessories		16.0		14.9		7.1%		1.1
TOTAL	29.0	96.4	30.2	106.7	-3.9%	-9.7%	(1.2)	(10.4)

The Commercial Vehicles category includes three- and four-wheelers with a maximum mass below 3.5 tons (category N1 in Europe) designed for commercial and private use, and related spare parts and accessories.

Background

Europe

In the first three months of 2024, the European light commercial vehicles market (vehicles with a maximum mass less than or equal to 3.5 tons), excluding the UK, recorded sales of approximately 400,000 units, a 12.6% increase over 2023 (data source ACEA).

Specifically, the chassis cab segment in which Piaggio Commercial operates recorded sales of around 51,100 units. In detail, vehicle registrations on core European markets (Spain, France,

¹¹ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €2.9 mln was reclassified from cost of services to lower revenue in the first quarter of 2023 (of which €2.1 mln relative to the Commercial Vehicles segment), in order to allow for a better comparability with 2024 figures.

Italy and Germany - served market) came to around 26,600 units, down 2% compared to the same period of the previous year.

India

Sales on the Indian three-wheeler market¹² , where Piaggio Vehicles Private Limited, a subsidiary of Piaggio & C. S.p.A. operates, went up from 143,887 units in the first three months of 2023, to 159,000 in the same period of 2024 registering a 10.5% increase.

The passenger vehicle segment showed growth (+9.8%) from 115,969 units in the first three months of 2023 to 127,332 units in the first three months of 2024. The cargo segment also increased (+13.4%), from 27,918 units in the first three months of 2023 to 31,668 units in the same period of 2024.

Electric 3-wheelers reported significant growth (+68.9%) from 12,115 units in the first three months of 2023 to 20,458 units in the same period of 2024.

Main results

During the first three months of 2024, the Commercial Vehicles business generated net revenues of approximately €96.4 million, down by 9.7% compared to the same period of the previous year.

The downturn affected all geographic segments, with the exception of the Americas where, thanks to volume growth (+52.7%), net revenues increased by 40.3%. On the other hand, Emea areas reported a decrease (-31.3% in volumes; -20.0% net revenues).

For the India CGU, both volumes (-4.5%) and revenues (-7.2%; -5.2% at constant exchange rates) decreased.

The Indian affiliate Piaggio Vehicles Private Limited (PVPL) sold 22,890 three-wheelers on the Indian market (25,759 in the first three months of 2023). A decline in three-wheeler vehicles with electric engines was reported, with a decrease from 5,595 units in the first three months of 2023 to 2,861 units in the current period.

The Indian affiliate also exported 2,856 three-wheeler vehicles (1,200 in the same period of 2023).

Market positioning¹³

The Piaggio Group operates in Europe and India on the light commercial vehicles market, with products designed for short-range mobility in urban areas (European urban centres) and suburban areas (the product range for India).

On the Indian three-wheeler market, Piaggio has a 14.4% share (16.3% in the first three months of 2023). Analysing the market in detail, Piaggio increased its volumes in the cargo segment by

¹² The figures are for the L5 category of the 3-wheeler segment registered by SIAM (the Society of Indian Automobile Manufacturers). They exclude "electric carts" and "electric rickshaws".

¹³ Market shares for the first three months of 2023 might differ from figures published the previous year, due to final vehicle registration data, which some countries publish with a few months' delay, being updated.

22.9%, holding a market share of 28.4% (26.2% in the first three months of 2023), while in the Passenger segment its share decreased to 10.9% (13.9% in the first three months of 2023). In the electric 3-wheeler segment, Piaggio's share fell to 13.7% (40.7% in the same period of 2023).

Subsequent events

15 April 2024 - The Ministry of Enterprise and Made in Italy authorised a Development Contract proposed by the Piaggio Group, which envisages an investment plan of approximately €112 million to expand production at Pontedera plant, in the province of Pisa. The industrial development programme, called "E-Mobility", includes the introduction and development of a new line of electric motors dedicated to next-generation zero-emission vehicles and five industrial research and experimental development projects, aimed at the development of components and systems for electric-powered vehicles, as well as the development of solutions in the digital area, covering safety and vehicle status monitoring, advanced driver assistance systems and complete cybersecurity systems.

15 April 2024 - Maverick Viñales and Aprilia triumphed in the Grand Prix of the Americas, giving the Noale-based manufacturer victory number 298 in its World Championship history.

17 April 2024 - The Shareholders' Meeting of Piaggio & C. S.p.A., approved the adoption of the new wording of the Company's Articles of Association, and therefore the adoption of the "one-tier" administration and control model. It also appointed the Board of Directors by approving the proposal submitted by the shareholder Immsi S.p.A. to set the number of its members at 12, the majority of whom, i.e. 9 members, declared that they meet the independence requirements of applicable regulations. The term of office of the Board of Directors was set at three financial years, until the Shareholders' Meeting called to approve the Financial Statements as of 31 December 2026. The following Directors were appointed: Matteo Colaninno, Michele Colaninno, Alessandro Lai (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee, also enrolled in the Register of Statutory Auditors), Graziano Gianmichele Visentin (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee, also enrolled in the Register of Statutory Auditors), Carlo Zanetti, Andrea Formica (independent director), Ugo Ottaviano Zanello (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee, also enrolled in the Register of Statutory Auditors), Micaela Vescia (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee), Paola Mignani (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee, also enrolled in the Register of Statutory Auditors), Patrizia Albano (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee), Rita Ciccone (independent director), all taken from the majority list presented by

IMMSI S.p.A. (which obtained 64.508% of the votes), as well as Raffaella Annamaria Pagani (independent director, who meets the requirements set forth in Article 25 of the Articles of Association for appointment as a member of the Management and Control Committee, also enrolled in the Register of Statutory Auditors), taken from the minority list presented by a group of investors (which obtained 27.690% of the votes), not connected even indirectly with the shareholders who hold a majority stake in the Company.

18 - 21 April 2024 - To mark Piaggio's 140th anniversary, the town of Pontedera, where the Vespa came into being and has been manufactured ever since 1946, hosted the annual gathering of Vespa Clubs from all over the world for the first time ever. It was a record edition: more than thirty thousand Vespa riders attended, with a total of twenty thousand Vespas and 55 national Vespa Clubs officially represented.

Operating outlook

In the absence of further critical factors in the global macroeconomic scenario, Piaggio, thanks to a portfolio of iconic brands, appreciated worldwide as Italian symbols of elegance, sporting style and high technology, can confirm the margins achieved in the last few months for 2024, regardless of the possible temporary slowdown in some markets.

The current difficulties in international transport related to the Israeli-Palestinian conflict and the related increase in costs and delivery times will continue to be dealt with through careful management and planning of stock levels and purchasing flows, while maintaining a constant focus on achieving greater efficiency through the continual monitoring of costs and productivity.

In light of this, Piaggio confirms the investments planned in new products in the two-wheeler sector and in commercial vehicles, and the consolidation of its commitment to ESG issues. In Italy, major investment plans have been outlined for the next few years, so as to be ready also for the ongoing energy transition. The decision to verticalize the development and production of strategic assets will be key to dealing efficiently with new technologies.

Transactions with related parties

Revenues, costs, payables and receivables as of 31 March 2024 involving parent, subsidiary and associate companies, refer to the sale of goods or services which are a part of normal operations of the Group.

Transactions are carried out at normal market values, depending on the characteristics of the goods and services provided.

Information on related-party transactions, including the information required by Consob communication no. DEM/6064293 of 28 July 2006 is presented in the Notes to the Consolidated Financial Statements.

Investments of members of the board of directors and members of the control committee

At the date of this report, the Executive Chairman and the Chief Executive Officer held 125,000 shares of the Parent Company Piaggio & C. S.p.A. respectively.

Piaggio Group

Condensed Consolidated Interim Financial Statements as of 31 March 2024

Consolidated income statement

		First Quarter 2024		First Quarter 2023
			of which		of which
			related		related
		Total	parties	Total	parties
In thousands of Euros	Notes
Net revenues14	4	428,037		543,927	6
Costs for materials Costs for services and use of third-party	5	259,374	5,960	352,364	7,579
assets14	6	61,775	361	70,870	496
Employee costs	7	66,680		67,133
Depreciation and impairment costs of property, plant and equipment	8	12,839		13,409
Amortisation and impairment costs of intangible
assets Depreciation of rights of use	8 8	18,704 2,420		20,204 2,568
Other operating income	9	40,644	71	34,859	109
Impairment of trade and other receivables, net	10	(664)		(1,165)
Other operating costs	11	4,878	1	6,205	8
Operating income		41,347		44,868
Results of associates - Income/(losses)	12	(200)	(200)	5	5
Financial income	13	399		757
Financial costs	13	12,042	68	9,362	14
Net exchange-rate gains/(losses)	13	(1,204)		234
Profit before tax		28,300		36,502
Income taxes	14	9,622		12,411
Net Profit		18,678		24,091
Attributable to:
Owners of the Parent Company		18,678		24,091
Non-controlling interests		0		0
Earnings per share (figures in €)	15	0.053		0.068
Diluted earnings per share (figures in €)	15	0.053		0.068

¹⁴ As a result of the contractual changes made from 2024 onwards to sell-out promotions for the Indian market, the costs of these promotions, which were previously allocated to services, are now recognised as a deduction of revenues. Although the value is to be considered negligible, €/000 2,857 was reclassified from cost of services to lower revenue in Q1 2023, in order to allow for a better comparability with 2024 figures.

Consolidated Statement of Comprehensive Income

In thousands of Euros	Notes	1st Quarter 2024	1st Quarter 2023
Net Profit (loss) for the period (A)		18,678	24,091
Items that will not be reclassified in the income statement
Remeasurements of defined benefit plans	37	303	(281)
Total		303	(281)
Items that may be reclassified in the income statement
Exchange gain (losses) arising on translation of foreign operations	37	1,659	(1,568)
Share of Other Comprehensive Income/(loss) of associates valued with the equity method	37	43	(171)
Total profits (losses) on cash flow hedges	37	(273)	(446)
Total		1,429	(2,185)
Other comprehensive income/(loss) (B)*		1,732	(2,466)
Total comprehensive income/(loss) for the period (A + B)		20,410	21,625
* Other Profits (and losses) take account of relative tax effects.
Attributable to:
Owners of the Parent Company Non-controlling interests		20,409 1	21,629 (4)

Consolidated Statement of Financial Position

		As of 31 March 2024		As of 31 December 2023
			of which		of which
			related		related
		Total	parties	Total	parties
In thousands of Euros	Notes
ASSETS
Non-current assets
Intangible assets	16	760,457		754,142
Property, plant and equipment	17	290,034		287,510
Rights of use	18	37,312		36,866
Investments	32	8,327		8,484
Other financial assets	33	16		16
Tax receivables	23	7,907		9,678
Deferred tax assets	19	68,134		70,439
Trade receivables	21
Other receivables	22	19,589		18,259
Total non-current assets		1,191,776		1,185,394
Current assets
Trade receivables	21	120,343	411	58,878	394
Other receivables	22	78,929	33,871	86,879	33,859
Tax receivables	23	23,302		18,855
Inventories	20	403,128		328,017
Other financial assets	33	1,957		6,205
Cash and cash equivalents	34	229,193		181,692
Total current assets		856,852		680,526
Total assets		2,048,628		1,865,920

		As of 31 March 2024		As of 31 December 2023
		of which		of which
			related		related
		Total	parties	Total	parties
In thousands of Euros SHAREHOLDERS' EQUITY AND LIABILITIES	Notes
Shareholders' equity
Share capital and reserves attributable to the owners of the Parent Company	36	436,555		416,146
Share capital and reserves attributable to non-controlling interests	36	(174)		(175)
Total shareholders' equity		436,381		415,971
Non-current liabilities
Financial liabilities	35	529,552		467,053
Financial liabilities for rights of use	35	20,787	3,919	19,665	4,362
Trade payables	25
Other non-current provisions	26	17,810		17,691
Deferred tax liabilities	27	7,166		7,087
Retirement funds and employee benefits	28	24,793		25,222
Tax payables	29
Other payables	30	12,488		12,392
Total non-current liabilities		612,596		549,110
Current liabilities
Financial liabilities	35	169,203		124,876
Financial liabilities for rights of use	35	9,612	1,343	10,336	1,247
Trade payables	25	665,462	7,971	619,003	6,371
Tax payables	29	17,690		13,912
Other payables Current portion of other non-current	30	122,398	43,799	117,267	43,786
provisions	26	15,286		15,445
Total current liabilities		999,651		900,839
Total Shareholders' Equity and
Liabilities		2,048,628		1,865,920

Changes in Consolidated Shareholders' Equity

Movements from 1 January 2024 / 31 March 2024

					Transactions with shareholders
In thousands of Euros	As of 1 January 2024 Notes	Net Profit	Other comprehensive income/(loss)	Total comprehensive income (loss) for the period 37	Allocation of profits 36	Distribution of dividends 36	Purchase of treasury shares 36	As of 31 March 2024
Share capital	207,614							207,614
Share premium reserve	7,171							7,171
Legal reserve	32,707							32,707
Reserve for measurement of financial instruments	(941)		(273)	(273)				(1,214)
IAS transition reserve	(21,314)							(21,314)
Group translation reserve	(49,945)		1,701	1,701				(48,244)
Treasury shares	(1,411)							(1,411)
Earnings reserve	195,508		303	303	46,757			242,568
Earnings for the period	46,757	18,678		18,678	(46,757)			18,678
Consolidated Group shareholders' equity Share capital and reserves attributable to non-controlling interests	416,146 (175)	18,678	1,731 1	20,409 1	0	0	0	436,555 (174)
Total shareholders' equity	415,971	18,678	1,732	20,410	0	0	0	436,381

Movements from 1 January 2023 / 31 March 2023

					Transactions with shareholders
	As of 1 January 2023	Net Profit	Other comprehensive income/(loss)	Total comprehensive income (loss) for the period	Allocation of profits	Distribution of dividends	Purchase of treasury shares	As of 31 March 2023
In thousands of Euros	Notes			37	36	36	36
Share capital	207,614							207,614
Share premium reserve	7,171							7,171
Legal reserve	28,954							28,954
Reserve for measurement of financial instruments	2,545		(446)	(446)				2,099
IAS transition reserve	(15,525)							(15,525)
Group translation reserve	(43,488)		(1,735)	(1,735)				(45,223)
Treasury shares	(7,688)						(78)	(7,766)
Earnings reserve	183,705		(281)	(281)	54,689			238,113
Earnings for the period	54,689	24,091		24,091	(54,689)			24,091
Consolidated Group shareholders' equity Share capital and reserves attributable to non-controlling interests	417,977 (166)	24,091	(2,462) (4)	21,629 (4)	0	0	(78)	439,528 (170)
Total shareholders' equity	417,811	24,091	(2,466)	21,625	0	0	(78)	439,358

Consolidated Statement of Cash Flows

This statement shows the factors behind changes in cash and cash equivalents, net of short-term bank overdrafts, as required by IAS 7.

		1st Quarter 2024		1st Quarter 2023
			of which		of which
			related		related
		Total	parties	Total	parties
In thousands of Euros	Notes
Operating activities
Net Profit (loss) for the period		18,678		24,091
Income taxes	14	9,622		12,411
Depreciation of property, plant and equipment	8	12,839		13,409
Amortisation of intangible assets	8	18,704		20,204
Depreciation of rights of use	8	2,420		2,568
Provisions for risks and retirement funds and employee benefits		4,774		5,589
Impairments/(Reinstatements)		664		1,147
Losses/(Gains) on the disposal of property, plant and equipment		(304)		(3)
Financial income	13	(399)		(757)
Financial costs	13	12,042		9,362
Income from public grants		(1,131)		(1,321)
Share of results of associates		200		(5)
Change in working capital:
(Increase)/Decrease in trade receivables	21	(61,683)	(17)	(44,368)	(76)
(Increase)/Decrease in other receivables	22	6,174	(12)	(4,848)	132
(Increase)/Decrease in inventories	20	(75,111)		(21,714)
Increase/(Decrease) in trade payables	25	46,459	1,600	(34,376)	1,152
Increase/(Decrease) in other payables	30	5,227	13	7,078	(26)
Increase/(Decrease) in provisions for risks	26	(2,743)		(2,789)
Increase/(Decrease) in retirement funds and employee benefits	28	(2,452)		(2,782)
Other changes		(11,354)		5,257
Cash generated from operating activities		(17,374)		(11,847)
Interest paid		(1,525)		(4,850)
Taxes paid		(5,065)		(7,353)
Cash flow from operating activities (A)		(23,964)		(24,050)
Investment activities
Investment in property, plant and equipment	17	(14,332)		(9,970)
Proceeds from sales of property, plant and equipment		389		60
Investment in intangible assets	16	(24,555)		(22,424)
Proceeds from sales of intangible assets		7		0
Public grants collected		337		184
Interest received		228		570
Cash flow from investment activities (B)		(37,926)		(31,580)
Financing activities
Purchase of treasury shares	36	0		(78)
Loans received	35	139,869		89,242
Outflow for repayment of loans	35	(31,010)		(37,452)
Change in other financial assets	33	4,248		0
Repayment of lease liabilities	35	(2,904)		(2,679)
Cash flow from financing activities (C)		110,203		49,033
Increase/(Decrease) in cash and cash equivalents (A+B+C)		48,313		(6,597)
Opening balance		179,148		242,552
Exchange (losses)/gains on cash and cash equivalents		1,001		(2,425)
Closing balance		228,462		233,530

Notes to the Consolidated Financial Statements

A) GENERAL ASPECTS

Piaggio & C. S.p.A. (the Company) is a joint-stock company established in Italy at the Register of Companies of Pisa. The address of the registered office is Viale Rinaldo Piaggio 25 - Pontedera (Pisa). The main activities of the company and its subsidiaries are set out in the Report on Operations.

These Financial Statements are expressed in Euros (€) since this is the currency in which most of the Group's transactions take place. Transactions in foreign currency are recorded at the exchange rate in effect on the date of the transaction. Monetary assets and liabilities in foreign currency are translated at the exchange rate in effect at the reporting date.

1. Scope of consolidation

The scope of consolidation is unchanged from the consolidated financial statements as of 31 December 2023 and 31 March 2023.

2. Compliance with international accounting standards

These Interim Financial Statements have been prepared in compliance with IAS 34 — Interim Financial Reporting.

The Condensed Consolidated Interim Financial Statements should be read in conjunction with the Group's consolidated financial statements as of 31 December 2023 (the "Annual Consolidated Financial Statements"), which have been prepared in compliance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and adopted by the European Union, and in compliance with provisions established by Consob in Communication no. 6064293 of 28 July 2006.

The accounting policies adopted are consistent with those applied in the Annual Consolidated Financial Statements of the Group, with the exception of the section "New accounting standards, amendments and interpretations adopted from 1 January 2024".

The preparation of the Condensed Consolidated Interim Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as well as the disclosure of contingent liabilities. If in the future such estimates and assumptions, which are based on management's best judgment at the date of these Condensed Consolidated Interim Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. For a more detailed description of the most significant measurement methods of the Group, reference is made to the section "Use of estimates" of the Annual Consolidated Financial Statements as of 31 December 2023.

It should finally be noted that some assessment processes, in particular the most complex ones such as establishing any impairment of non-current assets, are generally undertaken in full only when preparing the annual consolidated financial statements, when all the potentially necessary information is available, except in cases where there are indications of impairment which require an immediate assessment of any impairment loss.

The Group's activities, especially those regarding two-wheeler products, are subject to significant seasonal changes in sales during the year.

Income tax is recognised on the basis of the best estimate of the average weighted tax rate for the entire financial period.

New accounting standards, amendments and interpretations adopted from 1 January 2024

• On 23 January 2020, the IASB published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Noncurrent" and on 31 October 2022 published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". These amendments aim to clarify how to classify payables and other short- or long-term liabilities. In addition, the amendments also improve the information that an entity must provide when its right to defer settlement of a liability for at least twelve months is subject to compliance with certain parameters (i.e. covenants). The amendments came into force on 1 January 2024, but early application was permitted.
• On 22 September 2022, the IASB published an amendment called "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to measure the lease liability arising from a sale and leaseback transaction so as not to recognise an income or loss that relates to the retained right of use. The amendments have applied since 1 January 2024, but early application was permitted.
• On 25 May 2023, the IASB published an amendment entitled "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional disclosures about reverse factoring arrangements that enable users of financial statements to evaluate how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of those arrangements on the entity's exposure to liquidity risk. The amendments have applied since 1 January 2024, but early application was permitted.

IFRS accounting standards, amendments and interpretations endorsed by the European Union as of 31 March 2024, not yet mandatorily applicable and not adopted in advance of 31 March 2024

• On 15 August 2023, the IASB published an amendment entitled "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". The amendments require applying a consistent approach in assessing whether one currency is exchangeable for another and, when it is not, in determining the exchange rate to be used and the disclosure to be made. The amendments will apply from 1 January 2025, but early application is permitted.

The application of the new amendments did not have a significant impact on values or on the financial statements.

Other information

A specific paragraph in this Report provides information on any significant events occurring after the end of the period and on the expected operating outlook.

The exchange rates used to translate the financial statements of companies included in the scope of consolidation into Euros are shown in the table below.

Currency	Spot exchange rate	Average	Spot exchange rate	Average
	28 March	exchange rate	31 December	exchange rate
	2024	1st Quarter	2023	1st Quarter
		2024		2023
US Dollar	1.0811	1.08579	1.1050	1.07301
Pounds Sterling	0.85510	0.856266	0.86905	0.883090
Indian Rupee	90.1365	90.15512	91.9045	88.24376
Singapore Dollar	1.4587	1.45516	1.4591	1.43018
Chinese Yuan	7.8144	7.80481	7.8509	7.34192
Japanese Yen	163.45	161.15000	156.33	141.98062
Vietnamese Dong	26,804.00	26,662.53968	26,808.00	25,289.38462
Indonesian Rupiah	17,157.87	17,003.66746	17,079.71	16,345.24815
Brazilian Real	5.4032	5.37523	5.3618	5.57505

B) SEGMENT REPORTING

3. Operating segment reporting

The organisational structure of the Group is based on 3 Geographic Segments, involved in the production and sale of vehicles, spare parts and assistance in areas under their responsibility: EMEA and Americas, India and Asia Pacific 2W. Operating segments are identified by management, in line with the management and control model used.

In particular, the structure of disclosure corresponds to the structure of periodic reporting analysed by the Chief Executive Officer, considered to be the Chief Operating Decision Maker ("CODM") as defined under IFRS 8 — Operating Segments, for business management purposes, for the purposes of allocating resources and assessing the performance of the Group.

Each Geographic Segment has production sites and a sales network dedicated to customers in that geographic segment. In particular:

• EMEA and Americas have production sites and deal with the distribution and sale of twowheeler and commercial vehicles;
• India has production sites and deals with the distribution and sale of two-wheeler and commercial vehicles;
• Asia Pacific 2W has production sites and deals with the distribution and sale of two-wheeler vehicles.

Central structures and development activities currently dealt with by EMEA and Americas, are handled by individual segments.

The Gross Industrial Margin is the key profit measure used by the CODM to assess performance and allocate resources to the Group's operating segments, as well as to analyse operating trends, perform analytical comparisons and benchmark performance between periods and among the segments. The Gross Industrial Margin is defined as the difference between Net Revenues and the corresponding Cost to sell of the period.

INCOME STATEMENT BY OPERATING SEGMENT

		EMEA and Americas	India	Asia Pacific 2W	Total
	1st Quarter 2024	57.5	35.7	27.1	120.3
Sales volumes	1st Quarter 2023	70.2	37.6	47.1	154.9
(unit/000)	Change	(12.7)	(1.9)	(20.0)	(34.5)
	Change %	-18.1%	-4.9%	-42.4%	-22.3%
	1st Quarter 2024	281.9	79.4	66.7	428.0
Net revenues	1st Quarter 2023	339.6	85.1	119.3	543.9
(million euro)	Change	(57.7)	(5.7)	(52.5)	(115.9)
	Change %	-17.0%	-6.7%	-44.0%	-21.3%
	1st Quarter 2024	195.9	62.3	39.8	298.0
Cost to sell	1st Quarter 2023	248.3	72.2	78.1	398.5
(million euro)	Change	(52.4)	(9.9)	(38.3)	(100.6)
	Change %	-21.1%	-13.7%	-49.1%	-25.2%
	1st Quarter 2024	85.9	17.2	27.0	130.1
Gross industrial margin	1st Quarter 2023	91.3	12.9	41.2	145.4
(million euro)	Change	(5.3)	4.2	(14.2)	(15.3)
	Change %	-5.8%	32.7%	-34.5%	-10.5%
Gross industrial	1st Quarter 2024	30.5%	21.6%	40.4%	30.4%
margin on net revenues (%)	1st Quarter 2023	26.9%	15.2%	34.5%	26.7%

C) INFORMATION ON THE CONSOLIDATED INCOME STATEMENT

4. Net revenues €/000 428,037

Revenues are shown net of rebates recognised to customers (dealers).

This item does not include transport costs, which are recharged to customers (€/000 11,013) and invoiced advertising cost recoveries (€/000 1,437), which are posted under other operating income.

The revenues for disposals of Group core business assets essentially refer to the marketing of vehicles and spare parts on European and non-European markets.

Revenues by geographic segment

	1st Quarter 2024		1st Quarter 2023		Changes
	Amount	%	Amount	%	Amount	%
In thousands of Euros
EMEA and Americas	281,875	65.9	339,565	62.4	(57,690)	-17.0
India	79,433	18.5	85,100	15.7	(5,667)	-6.7
Asia Pacific 2W	66,729	15.6	119,262	21.9	(52,533)	-44.0
Total	428,037	100.0	543,927	100.0	(115,890)	-21.3

Revenues by vehicle type

	1st Quarter 2024		1st Quarter 2023		Changes
	Amount	%	Amount	%	Amount	%
In thousands of Euros
Two-wheelers	331,680	77.5	437,185	80.4	(105,505)	-24.1
Commercial Vehicles	96,357	22.5	106,742	19.6	(10,385)	-9.7
Total	428,037	100.0	543,927		100.0 (115,890)	-21.3

In the first three months of 2024, net sales revenues decreased by 21.3% compared to the same period of the previous year. For a more detailed analysis of trends in individual geographic segments, see comments in the Report on Operations.

5. Costs for materials €/000 259,374

The reduction in costs for materials compared to the first three months of 2023 (-26.4%) was due to the decrease in sales volumes. The item includes €/000 5,960 (€/000 7,579 in the same period of 2023) for purchases of scooters from the Chinese affiliate Zongshen Piaggio Foshan Motorcycle Co., that are sold on various markets.

6. Costs for services and use of third-party assets €/000 61,775

This item showed a decrease of 12.8% compared to the same period of the previous year, due to the decline in sales volumes.

7. Employee costs €/000 66,680

Employee costs include €/000 356 relating to costs for redundancy plans mainly for the Pontedera and Noale production sites.

	1st Quarter 2024	1st Quarter 2023	Change
In thousands of Euros
Salaries and wages	51,169	51,985	(816)
Social security contributions	12,854	12,658	196
Termination benefits	2,114	2,066	48
Other costs	543	424	119
Total	66,680	67,133	(453)

Below is a breakdown of the headcount by actual number and average number:

	Average number
	1st Quarter 2024	1st Quarter 2023	Change
Level
Senior management	117.7	116.6	1.1
Middle management	689.3	682.0	7.3
White collars	1,627.3	1,626.7	0.6
Blue collars	3,825.7	3,892.0	(66.3)
Total	6,260.0	6,317.3	(57.3)

Number as of
	31 March 2024	31 December 2023	Change
Senior management	118	112	6
Middle management	687	692	(5)
White collars	1,617	1,627	(10)
Blue collars	4,019	3,494	525
Total	6,441	5,925	516
EMEA and Americas	3,886	3,278	608
India	1,402	1,442	(40)
Asia Pacific 2W	1,153	1,205	(52)
Total	6,441	5,925	516

8. Amortisation/Depreciation and impairment costs

This item consists of:

	1st Quarter 2024	1st Quarter 2023	Change
In thousands of Euros
Amortisation of intangible assets and
impairment costs	18,704	20,204	(1,500)
Depreciation of property, plant and
equipment and impairment costs	12,839	13,409	(570)
Depreciation of rights of use	2,420	2,568	(148)
Total	33,963	36,181	(2,218)

9. Other operating income €/000 40,644

This item, consisting mainly of increases in own work capitalised and cost recoveries re-invoiced to customers, increased by 16.6% compared to the first three months of 2023.

Other income includes €/000 256 in subsidies from the Indian government given to the subsidiary Piaggio Vehicles Private Limited for investments made during previous years and recognised in the income statement in proportion to the depreciation and amortisation of assets for which the grant was given. The recognition of these amounts is supported by appropriate documentation received from the Government of India, certifying that the entitlement has been recognised and therefore that collection is reasonably certain.

10. Impairment of trade and other receivables, net

This item consists mainly of write-downs of receivables in current assets.

11. Other Operating Costs €/000 4,878

This item posted a decrease of €/000 1,327 compared to the same period of the previous year.

12. Results of associates - Income/(losses) €/000 (200)

Net expenses from investment refer to the Group's share of the result of the joint venture Zongshen Piaggio Foshan Motorcycle Co. Ltd accounted for using the equity method.

13. Net financial income (financial costs) €/000 (12,847)

The balance of financial income (expenses) for the first three months of 2024 was negative for €/000 12,847, (€/000 -8,371 in the same period of the previous year). The deterioration was

€/000 33,963

€/000 (664)

mainly due to the rise in interest rates on debt, chiefly related to the issue of the new bond in October 2023, exacerbated by the negative impact of currency management.

14. Income taxes €/000 9,622

Income taxes for the period, determined based on IAS 34, are estimated by applying a rate of 34% to profit before tax, equivalent to the best estimate of the weighted average rate predicted for the financial year.

15. Earnings per share

Earnings per share are calculated as follows:

		1st Quarter 2024	1st Quarter 2023
Net profit (loss) for the period	€/000	18,678	24,091
Earnings attributable to ordinary shares	€/000	18,678	24,091
Average number of ordinary shares in circulation		354,205,888	354,625,812
Earnings per ordinary share	€	0.053	0.068
Adjusted average number of ordinary shares		354,205,888	354,625,812
Diluted earnings per ordinary share	€	0.053	0.068

51

D) INFORMATION ON FINANCIAL ASSETS AND LIABILITIES

16. Intangible assets €/000 760,457

Intangible assets went up overall by €/000 6,315, mainly due to investments for the period which were only partially balanced by amortisation for the period.

Increases mainly refer to the capitalisation of development costs and know-how for new products and new engines, as well as the purchase of software.

Financial costs of €/000 1,271 were capitalised in the first three months of 2024.

The table below shows the breakdown of intangible assets as of 31 March 2024, as well as changes during the period.

In thousands	Situation as of								Situation as of
of Euros	31.12.2023				Movements for the period				31.03.2024
	Net value	Investments	Transitions in the period	Amortisation	Disposals	Impairment	Exchange differences	Other	Net value
Development costs	117,578	10,384	0	(7,632)	(1)	0	451	0	120,780
In service Assets under development	57,912	2,311	19,354	(7,632)	0	0	249	0	72,194
and advances Patent rights/KH	59,666 158,686	8,073 14,116	(19,354) 0	0 (11,000)	(1) (6)	0 0	202 15	0 735	48,586 162,546
In service Assets under development	72,915	3,599	26,265	(11,000)	(6)	0	3	12	91,788
and advances	85,771	10,517	(26,265)	0	0	0	12	723	70,758
Trademarks In service	29,346 29,346	0 0	0 0	(17) (17)	0 0	0 0	0 0	0 0	29,329 29,329
Goodwill	446,940	0	0	0	0	0	0	0	446,940
In service	446,940	0	0	0	0	0	0	0	446,940
Other	1,592	55	0	(55)	0	0	5	(735)	862
In service Assets under development	493	47	372	(55)	0	0	(1)	(12)	844
and advances	1,099	8	(372)	0	0	0	6	(723)	18
Total	754,142	24,555	0	(18,704)	(7)	0	471	0	760,457
In service Assets under development	607,606	5,957	45,991	(18,704)	(6)	0	251	0	641,095
and advances	146,536	18,598	(45,991)	0	(1)	0	220	0	119,362

17. Property, plant and equipment €/000 290,034

Property, plant and equipment mainly refer to Group production facilities in Pontedera (Pisa), Noale (Venice), Mandello del Lario (Lecco), Baramati (India), Vinh Phuc (Vietnam) and Jakarta (Indonesia).

Property, plant and equipment increased by a total of €/000 2,524, mainly due to investments for the period, which were only partially offset by depreciation for the period, and the impact of the revaluation of the Indian rupee and Vietnamese dong against the euro.

The increases mainly relate to the construction of moulds for new vehicles launched during the period.

Financial costs attributable to the construction of assets which require a considerable period of time to be ready for use are capitalised as a part of the cost of the actual assets. Financial costs of €/000 148 were capitalised in the first three months of 2024.

The table below shows the breakdown of tangible assets as of 31 March 2024, as well as changes during the period.

In thousands of	Situation as of	Movements for the period
Euros	31.12.2023 Net value	Investments	Transitions in the period	Depreciation	Disposals	Impairment	Exchange differences	Other	31.03.2024 Net value
Land	36,899	0	0	0	0	0	(42)	0	36,857
In service	36,899	0	0	0	0	0	(42)	0	36,857
Buildings	87,251	2,966	0	(1,352)	(17)	0	224	0	89,072
In service Assets under construction and	83,781	1	1,458	(1,352)	(17)	0	200	0	84,071
advances Plant and	3,470	2,965	(1,458)	0	0	0	24	0	5,001
machinery	113,770	4,598	0	(5,338)	(64)	0	894	0	113,860
In service Assets under construction and	89,295	190	10,154	(5,338)	(3)	0	608	0	94,906
advances	24,475	4,408	(10,154)	0	(61)	0	286	0	18,954
Equipment	34,743	2,776	0	(3,879)	0	0	(4)	0	33,636
In service Assets under construction and	28,259	1,301	4,212	(3,879)	0	0	(4)	0	29,889
advances	6,484	1,475	(4,212)	0	0	0	0	0	3,747
Other assets	14,847	3,992	0	(2,270)	(4)	0	44	0	16,609
In service Assets under construction and	12,049	3,755	1,056	(2,270)	(4)	0	44	0	14,630
advances	2,798	237	(1,056)	0	0	0	0	0	1,979
Total	287,510	14,332	0	(12,839)	(85)	0	1,116	0	290,034
In service Assets under construction and	250,283	5,247	16,880	(12,839)	(24)	0	806	0	260,353
advances	37,227	9,085	(16,880)	0	(61)	0	310	0	29,681

18. Rights of Use €/000 37,312

This financial statement item includes the discounted value of operating leases, finance leases and prepaid lease payments for the use of real estate.

In thousands of Euros	Land	Buildings	Plant and machinery	Equipment	Other assets	Total
Situation as of 31.12.2023	6,476	19,015	6,419	1,205	3,751	36,866
Increases		2,261			400	2,661
Depreciation	(46)	(1,623)	(214)	(103)	(434)	(2,420)
Decreases					(38)	(38)
Exchange differences	39	201			3	243
Movements for the period	(7)	839	(214)	(103)	(69)	446
Situation as of 31.03.2024	6,469	19,854	6,205	1,102	3,682	37,312

Commitments for lease instalments falling due are detailed in Note 35 "Financial liabilities and financial liabilities for rights of use".

19. Deferred tax assets €/000 68,134

Deferred tax assets and liabilities are recognised at their net value when they may be offset in the same tax jurisdiction.

As part of measurements to define deferred tax assets, the Group mainly considered the following:

• tax regulations of countries where it operates, the impact of regulations in terms of temporary differences and any tax benefits arising from the use of previous tax losses;
• the tax rate in effect in the year when temporary differences occur.

Deferred tax assets arising from the carry-forward of tax losses have been recognised on the basis of the foreseeable recovery of the benefit from the availability of sufficient future taxable income, resulting from the most recent forecasts, against which such may be used; in some cases, it was decided not to recognise in full the tax benefits arising from losses that may be carried forward. As regards the Italian companies of the Piaggio Group, it should be noted that they adhere to the national tax consolidation system governed by Articles 117 and following of the Consolidated Income Tax Act, in a capacity as consolidated companies.

20. Inventories €/000 403,128

This item comprises:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Raw materials and consumables	232,840	180,033	52,807
Provision for write-down	(16,852)	(16,592)	(260)
Net value	215,988	163,441	52,547
Work in progress and semi-finished products	16,919	26,693	(9,774)
Provision for write-down	(1,928)	(1,933)	5
Net value	14,991	24,760	(9,769)
Finished products and goods	192,499	160,180	32,319
Provision for write-down	(20,511)	(20,506)	(5)
Net value	171,988	139,674	32,314
Advances	161	142	19
Total	403,128	328,017	75,111

In order to cope with possible component shortages, should the situation in the Red Sea worsen, the Group has decided to increase its stock levels.

21. Trade receivables (current and non-current) €/000 120,343

As of 31 March 2024 and 31 December 2023, there were no trade receivables in non-current assets. Current trade receivables are broken down as follows:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Trade receivables due from customers	119,932	58,484	61,448
Trade receivables due from JV	409	385	24
Trade receivables due from parent companies		9	(9)
Trade receivables due from associates	2		2
Total	120,343	58,878	61,465

Receivables due from joint ventures refer to amounts due from Zongshen Piaggio Foshan Motorcycles Co. Ltd.

Receivables due from associates regard amounts due from Immsi Audit.

The item Trade receivables comprises receivables referring to normal sale transactions, recorded net of a provision for bad debts of €/000 34,508.

The Group sells, on a rotating basis, a large part of its trade receivables with and without recourse. Piaggio has signed contracts with some of the most important Italian and foreign factoring companies as a move to optimise the monitoring and the management of its trade receivables,

besides offering its customers an instrument for funding their own inventories, for factoring classified as without the substantial transfer of risks and benefits. On the contrary, for factoring without recourse, contracts have been formalised for the substantial transfer of risks and benefits.

As of 31 March 2024, trade receivables still due sold without recourse totalled €/000 198,698.

Of these amounts, Piaggio received payment prior to natural expiry of €/000 167,787.

As of 31 March 2024, advance payments received from factoring companies and banks, for trade receivables sold with recourse totalled €/000 11,809 with a counter entry recorded in current liabilities.

22. Other receivables (current and noncurrent)

€/000 98,518

These consist of:

	As of 31 March 2024				As of 31 December 2023		Change
	Current	Non current	Total	Current	Non current	Total	Current	Non current	Total
In thousands of Euros
Receivables due from parent companies	33,262		33,262	33,255		33,255	7	0	7
Receivables due from JV	596		596	586		586	10	0	10
Receivables due from affiliated companies	13		13	18		18	(5)	0	(5)
Accrued income	1,805		1,805	596		596	1,209	0	1,209
Deferred charges	13,979	8,771	22,750	10,799	9,424	20,223	3,180	(653)	2,527
Advance payments to suppliers	1,132	1	1,133	1,067	1	1,068	65	0	65
Advances to employees	474	24	498	1,809	24	1,833	(1,335)	0	(1,335)
Fair value of hedging derivatives	2,389	247	2,636	4,573	168	4,741	(2,184)	79	(2,105)
Security deposits	178	1,158	1,336	285	1,151	1,436	(107)	7	(100)
Receivables due from others	25,101	9,388	34,489	33,891	7,491	41,382	(8,790)	1,897	(6,893)
Total	78,929	19,589	98,518	86,879	18,259	105,138	(7,950)	1,330	(6,620)

Receivables due from associates regard amounts due from Immsi Audit.

Receivables due from Parent Companies refer to receivables due from Immsi and arise from the recognition of accounting effects relating to the transfer of taxable bases pursuant to the Group Consolidated Tax Convention.

Receivables due from joint ventures refer to amounts due from Zongshen Piaggio Foshan Motorcycle Co. Ltd.

The item Fair Value of hedging derivatives refers to the fair value of hedges on exchange risk on forecast transactions recognised on a cash flow hedge basis (€/000 2,109 current portion), to the fair value of an Interest Rate Swap designated as a hedge and recognised on a cash flow hedge basis (€/000 273 current portion and €/000 247 non-current portion), and to the fair value of derivatives hedging commodity risk recognised on a cash flow hedge basis (€/000 7 current portion).

The item Receivables due from others includes:

• €/000 3,400 (€/000 5,254 as of 31 December 2023) relating to the recognition by the Indian affiliate of a receivable for the subsidy received from the Indian Government on

investments made in previous years. This receivable is recognised in the income statement in proportion to the depreciation of the assets on which the grant was made. The recognition of these amounts is supported by appropriate documentation received from the Government of India, certifying that the entitlement has been recognised and therefore that collection is reasonably certain;

• €/000 14,814 (€/000 17,838 as of 31 December 2023) for the receivable accrued by the Indian subsidiary for the reimbursement of the eco-incentive on electric vehicles recognised directly by the manufacturer to the end customer, the settlement of which has not yet been authorised by the competent authorities. Under the e-mobility incentive scheme currently in place in India, the end customer benefits from the subsidy at the time of purchase and the subsidy is then recovered by the manufacturer upon presentation of the necessary documentation to the Ministry.

23. Tax receivables (current and non-current) €/000 31,209

		As of 31 March 2024		As of 31 December 2023			Change
	Non			Non			Non
	Current	current	Total	Current	current	Total	Current	current	Total
In thousands of Euros
VAT	11,217	288	11,505	8,543	283	8,826	2,674	5	2,679
Income tax	6,234	6,382	12,616	6,207	6,073	12,280	27	309	336
Others	5,851	1,237	7,088	4,105	3,322	7,427	1,746	(2,085)	(339)
Total	23,302	7,907	31,209	18,855	9,678	28,533	4,447	(1,771)	2,676

Tax receivables consist of:

24. Receivables due after 5 years €/000 0

As of 31 March 2024, there were no receivables due after 5 years.

25. Trade payables (current and non-current) €/000 665,462

As of 31 March 2024 and as of 31 December 2023 no trade payables were recorded under noncurrent liabilities. Trade payables recorded as current liabilities are broken down as follows:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Amounts due to suppliers	657,491	612,632	44,859
Trade payables due to JV	7,801	5,982	1,819
Trade payables due to associates	78	50	28
Trade payables due to parent companies	92	339	(247)
Total	665,462	619,003	46,459
Of which indirect factoring	244,398	256,318	(11,920)

To facilitate credit conditions for its suppliers, the Group has always used some indirect factoring

57

agreements, mainly supply chain financing and reverse factoring agreements. These operations have not changed the primary obligation or substantially changed payment terms, so their nature is the same and they are still classified as trade liabilities.

As of 31 March 2024, the value of trade payables covered by reverse factoring or supply chain financing agreements was equal to €/000 244,398 (€/000 256,318 as of 31 December 2023).

26. Provisions (current and non-current portion) €/000 33,096

The breakdown and changes in provisions for risks during the period were as follows:

	Balance as of 31 December 2023	Provisions	Uses	Exchange differences	Balance as of 31 March 2024
In thousands of Euros
Provision for product warranties	20,542	2,625	(2,223)	48	20,992
Provision for contractual risks	8,941			21	8,962
Risk provision for legal disputes	2,382		(520)	2	1,864
Provision for ETS certificates	486				486
Other provisions for risks	785			7	792
Total	33,136		2,625 (2,743)	78	33,096

The breakdown between the current and non-current portion of provisions is as follows:

	As of 31 March 2024			As of 31 December 2023			Change
	Non			Non			Non
	Current	current	Total	Current	current	Total	Current	current	Total
In thousands of Euros
Provision for product warranties	13,321	7,671	20,992	12,990	7,552	20,542	331	119	450
Provision for contractual risks	962	8,000	8,962	941	8,000	8,941	21	0	21
Risk provision for legal disputes	143	1,721	1,864	661	1,721	2,382	(518)	0	(518)
Provision for ETS certificates	486	-	486	486	-	486	0	0	0
Other provisions for risks	374	418	792	367	418	785	7	0	7
Total	15,286	17,810	33,096	15,445	17,691	33,136	(159)	119	(40)

The provision for product warranties relates to allocations for technical assistance on products covered by customer service which are estimated to be provided over the contractually envisaged warranty period. This period varies according to the type of goods sold and the sales market, and is also determined by customer take-up to commit to a scheduled maintenance plan.

The provision increased during the period by €/000 2,625 and was used for €/000 2,223 in relation to charges incurred during the period.

The provision for contractual risks refers to charges that may arise from supply contracts.

The risk provision for legal disputes concerns labour litigation and other legal proceedings.

Other risk provisions include management's best estimate of probable liabilities at the reporting date.

27. Deferred tax liabilities €/000 7,166

Deferred tax liabilities amount to €/000 7,166 compared to €/000 7,087 as of 31 December 2023.

28. Retirement funds and employee benefits €/000 24,793

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Retirement funds	950	915	35
Termination benefits provision	23,843	24,307	(464)
Total	24,793	25,222	(429)

Retirement funds comprise provisions for employees allocated by foreign companies and additional customer indemnity provisions, which represent the compensation due to agents in the case of the agency contract being terminated for reasons beyond their control.

The item "Termination benefits provision", comprising severance pay of employees of Italian companies, includes termination benefits indicated in defined benefit plans.

As regards the discount rate, the Group has decided to use the iBoxx Corporates AA rating with a 7-10 duration as the valuation reference.

If the iBoxx Corporates A rating with a 7-10 duration had been used, the value of actuarial losses and the provision as of 31 March 2024 would have been lower by €/000 503.

29. Tax payables (current and non-current) €/000 17,690

As of 31 March 2024 and as of 31 December 2023 no tax payables were recorded under noncurrent liabilities. Tax payables recorded as current liabilities are broken down as follows:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Due for income tax	8,503	6,880	1,623
Due for non-income tax	41	122	(81)
Tax payables for:
. VAT	3,505	951	2,554
. Tax withheld at source	4,284	5,214	(930)
. Others	1,357	745	612
Total	9,146	6,910	2,236
TOTAL	17,690	13,912	3,778

The item includes tax payables recorded in the financial statements of individual consolidated

companies, set aside in relation to tax charges for the individual companies on the basis of applicable national laws.

Payables for tax withholdings made refer mainly to withholdings on employees' earnings, on employment termination payments and on self-employed earnings.

30. Other payables (current and non-current) €/000 134,886

This item comprises:

	As of 31 March 2024			As of 31 December 2023			Change
		Non			Non			Non
	Current	current	Total	Current	current	Total	Current	current	Total
In thousands of Euros
To employees	32,297	482	32,779	25,244	473	25,717	7,053	9	7,062
Guarantee deposits		4,565	4,565		4,414	4,414	-	151	151
Accrued expenses	14,170		14,170	7,831		7,831	6,339	-	6,339
Deferred income	11,818	7,367	19,185	9,707	7,377	17,084	2,111	(10)	2,101
Amounts due to social	5,949		5,949	8,401		8,401	(2,452)	-	(2,452)
security institutions
Fair value of derivatives	4,218		4,218	5,927	52	5,979	(1,709)	(52)	(1,761)
To associates	104		104	111		111	(7)	-	(7)
To parent companies	43,695		43,695	43,675		43,675	20	-	20
Others	10,147	74	10,221	16,371	76	16,447	(6,224)	(2)	(6,226)
Total	122,398	12,488	134,886	117,267	12,392	129,659	5,131	96	5,227

Amounts due to employees include the amount for holidays accrued but not taken of €/000 14,221 and other payments to be made for €/000 18,558.

Payables to parent companies consist of payables to Immsi referring to expenses related to the consolidated tax convention.

The item Fair value of derivatives refers to the fair value of exchange rate hedging for forecast transactions recognised on a cash flow hedge basis (€/000 3,743 current portion) and the fair value of commodity hedging derivatives recognised on a cash flow hedge basis (€/000 475 current portion).

The item Accrued expenses includes €/000 186 for interest on hedging derivatives and associated hedged items measured at fair value.

Deferred income includes €/000 5,096 (€/000 5,248 as of 31 December 2023) for the recognition by the Indian affiliate related to a deferred subsidy from the local Government for investments made in previous years, for the part not yet amortised. For more details, see Note 22 "Other receivables".

31. Payables due after 5 years

The Group has loans due in more than five years, details of which are provided in Note 35 "Financial liabilities and financial liabilities for rights of use".

With the exception of the above payables, no other long-term payables due after five years exist.

E) INFORMATION ON FINANCIAL ASSETS AND LIABILITIES

32. Investments €/000 8,327

The item investments comprises:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Interests in joint ventures	8,105	8,262	(157)
Investments in associates	222	222	0
Total	8,327	8,484	(157)

During the period, the value of investments in joint ventures and in associates was adjusted to the corresponding value of shareholders' equity.

33. Other financial assets (current and non-current) €/000 1,973

This item comprises:

	As of 31 March 2024		As of 31 December 2023			Change
	Current	Non Current	Total	Current	Non Current	Total	Current	Non Current	Total
In thousands of Euros
Financial assets	1,957		1,957	6,205		6,205	(4,248)	-	(4,248)
Investments in other
companies		16	16		16	16	-	-	-
Total	1,957	16	1,973	6,205	16	6,221	(4,248)	0	(4,248)

Financial assets refer to an asset resulting from the share of government grants recognised and receipted by the Indian Government.

34. Cash and cash equivalents €/000 229,193

The item, which mainly includes short-term and on demand bank deposits, is broken down as follows:

	As of 31 March 2024	As of 31 December 2023	Change
In thousands of Euros
Bank and postal deposits	229,129	181,645	47,484
Cash on hand	64	47	17
Total	229,193	181,692	47,501

€/000 729,154

Reconciliation of cash and cash equivalents recognised in the statement of financial position as assets with cash and cash equivalents recognised in the Statement of Cash Flows

The table below reconciles the amount of cash and cash equivalents above with cash and cash equivalents recognised in the Statement of Cash Flows.

	As of 31 March 2024	As of 31 March 2023	Change
In thousands of Euros
Liquidity	229,193	235,595	(6,402)
Current account overdrafts	(731)	(2,065)	1,334
Closing balance	228,462	233,530	(5,068)

35. Financial liabilities and financial liabilities for rights of use (current and non-current)

During the first three months of 2024, the Group's total debt went up by €/000 107,224. Net of the change in financial liabilities for rights of use, the Group's total financial debt increased by €/000 106,826 as of 31 March 2024.

	Financial liabilities as of 31 March 2024		Financial liabilities as of 31 December 2023		Change
	Current	Non current	Total	Current	Non current	Total	Current	Non current	Total
In thousands of Euros
Financial liabilities	169,203	529,552	698,755	124,876	467,053	591,929	44,327	62,499	106,826
Financial liabilities for rights of use	9,612	20,787	30,399	10,336	19,665	30,001	(724)	1,122	398
Total	178,815	550,339	729,154	135,212	486,718	621,930	43,603	63,621	107,224

Net financial debt of the Group amounted to €/000 498,004 as of 31 March 2024 compared to €/000 434,033 as of 31 December 2023.

The composition of "Net financial debt" as of 31 March 2024, prepared in accordance with paragraph 175 and following of ESMA Recommendations 2021/32/382/1138, is set out below.

Consolidated net debt/(Net financial debt)¹⁵

		As of 31 March 2024	As of 31 December 2023	Change
	In thousands of Euros
A	Cash	229,193	181,692	47,501
B	Cash equivalents			0
C	Other current financial assets	1,957	6,205	(4,248)
D	Liquidity (A + B + C)	231,150	187,897	43,253
E	Current financial debt (including debt instruments, but excluding current portion of non-current financial debt)	(112,214)	(68,634)	(43,580)
	Payables due to banks	(90,722)	(50,275)	(40,447)
	Debenture loan			0
	Amounts due to factoring companies	(11,809)	(7,952)	(3,857)
	Financial liabilities for rights of use	(9,612)	(10,336)	724
	.of which finance leases	(1,255)	(1,240)	(15)
	.of which operating leases	(8,357)	(9,096)	739
	Current portion of payables due to other lenders	(71)	(71)	0
F	Current portion of non-current financial debt	(66,601)	(66,578)	(23)
G	Current financial indebtedness (E + F)	(178,815)	(135,212)	(43,603)
H	Net current financial indebtedness (G - D)	52,335	52,685	(350)
I	Non-current financial debt (excluding current portion and debt instruments)	(304,457)	(240,818)	(63,639)
	Non current bank loans	(283,564)	(221,047)	(62,517)
	Financial liabilities for rights of use	(20,787)	(19,665)	(1,122)
	.of which finance leases	(1,754)	(2,066)	312
	.of which operating leases	(19,033)	(17,599)	(1,434)
	Amounts due to other lenders	(106)	(106)	0
J	Debt instruments	(245,882)	(245,900)	18
K	Non-current trade and other payables			0
L	Non-current financial indebtedness (I + J + K)	(550,339)	(486,718)	(63,621)
M	Total financial indebtedness (H + L)	(498,004)	(434,033)	(63,971)

As regards indirect factoring, please refer to the comment in Note 25 "Trade payables".

¹⁵ The indicator does not include financial assets and liabilities arising from the fair value measurement of financial derivatives for hedging and otherwise, the fair value adjustment of relative hedged items equal in any case to €/000 0 in the two periods compared and relative accruals.

The following table summarises the movements during the period.

			Cash flows
		Balance as of	Movements	Repayments	New issues	Reclassifications	Exchange delta	Other changes	Balance as of
	In thousands of Euros	31.12.2023							31.03.2024
A	Cash	181,692	46,500				1,001		229,193
B	Cash equivalents	0							0
C	Other current financial assets	6,205	(4,248)						1,957
D E	Liquidity (A + B + C) Current financial debt (including debt instruments, but excluding current portion of non-current financial debt)	187,897 (68,634)	42,252 0	0 15,410	0 (57,100)	0 (2,093)	1,001 210	0 (7)	231,150 (112,214)
	Current account overdrafts	(2,544)		2,544	(731)				(731)
	Current account payables	(47,731)		2,010	(44,560)		290		(89,991)
	Total current bank loans	(50,275)	0	4,554	(45,291)	0	290	0	(90,722)
	Debenture loan	0							0
	Amounts due to factoring companies	(7,952)		7,952	(11,809)				(11,809)
	Financial liabilities for rights of use	(10,336)		2,904		(2,093)	(80)	(7)	(9,612)
	.of which finance leases	(1,240)		294		(312)		3	(1,255)
	.of which operating leases	(9,096)		2,610		(1,781)	(80)	(10)	(8,357)
	Current portion of payables due to other lenders	(71)							(71)
F	Current portion of non-current financial debt	(66,578)		21,048		(21,052)		(19)	(66,601)
G	Current financial indebtedness (E + F)	(135,212)	0	36,458	(57,100)	(23,145)	210	(26)	(178,815)
H	Net current financial indebtedness (G - D)	52,685	42,252	36,458	(57,100)	(23,145)	1,211	(26)	52,335
I	Non-current financial debt (excluding current portion and debt instruments)	(240,818)	0	0	(83,500)	23,145	(157)	(3,127)	(304,457)
	Non current bank loans	(221,047)			(83,500)	21,052		(69)	(283,564)
	Liabilities for rights of use	(19,665)			0	2,093	(157)	(3,058)	(20,787)
	.of which finance leases	(2,066)				312			(1,754)
	.of which operating leases	(17,599)				1,781	(157)	(3,058)	(19,033)
	Amounts due to other lenders	(106)							(106)
J K	Debt instruments Non-current trade and other payables	(245,900)						18	(245,882)
L	Non-current financial indebtedness (I+J+K)	(486,718)	0	0	(83,500)	23,145	(157)	(3,109)	(550,339)
M	Total financial indebtedness (H + L)	(434,033)	42,252	36,458	(140,600)	0	1,054	(3,135)	(498,004)

Medium and long-term bank debt amounts to €/000 350,165 (of which €/000 283,564 non-current and €/000 66,601 current) and consists of the following loans:

• a €/000 34,959 (nominal value €/000 35,000) medium-term loan granted by the European Investment Bank to support Research and Development projects of investment plans, scheduled for the Piaggio Group's Italian sites in the 2019-2021 period. The loan will mature in February 2027 and has a repayment schedule of 6 fixed-rate annual instalments. Contract terms require covenants (described below);
• a €/000 20,000 medium-term loan granted by the European Investment Bank to support Research and Development projects of investment plans, scheduled for the Piaggio Group's Italian sites in the 2019-2021 period. The loan will mature in March 2028 and has a repayment schedule of 6 fixed-rate annual instalments. Contract terms require covenants (described below);
• a €/000 59,901 medium-term loan (nominal value €/000 60,000) granted by the European Investment Bank to support Research and Development activities in applied technologies for electric vehicles for the period 2022-2025. The loan will expire in January 2033 and provides for an amortisation plan in seven annual fixed-rate instalments with a two-year grace period;
• €/000 1,395 (with a nominal value of €/000 3,000) for use of the syndicated revolving loan facility for a total of €/000 200,000 maturing on 15 November 2027 (with a one-year extension at the discretion of the borrower). Contract terms require covenants (described below);
• a €/000 114,527 (nominal value of €/000 115,000) "Schuldschein" loan issued between October 2021 and February 2022 and subscribed by leading market participants. It consists of 7 tranches with maturities of 3, 5 and 7 years at fixed and variable rates;
• a €/000 17,954 medium-term loan (nominal value of €/000 18,000) granted by Banca Popolare Emilia Romagna. The loan will fall due on 31 December 2027 and has a repayment schedule of six-monthly instalments. Contract terms require covenants (described below);
• a €/000 9,968 loan (nominal value of €/000 10,000) granted by Banco BPM with a repayment schedule of six-monthly instalments and last payment in July 2025. An Interest Rate Swap has been taken out on this loan to hedge the interest rate risk. Contract terms require covenants (described below);
• a €/000 20,000 medium-term loan granted by Cassa Depositi e Prestiti to support international growth in India and Indonesia. The loan has a duration of 5 years expiring on 30 August 2026. It entails a repayment plan with six-monthly instalments and a 12-month grace period. Contract terms require covenants (described below);
• a €/000 2,241 medium-term loan (nominal value of €/000 2,250) granted by Banca Popolare di Sondrio, maturing on 1 June 2026 and with a quarterly repayment schedule;
• a €/000 4,493 medium-term loan (nominal value of €/000 4,500) granted by Cassa di Risparmio di Bolzano, maturing on 30 June 2026 and with a quarterly repayment schedule. Contract terms require covenants (described below);
• a €/000 3,343 medium-term loan (nominal value of €/000 3,346) granted by Banca Carige, maturing on 31 December 2026 and with a quarterly repayment schedule;

• a €/000 14,983 (with a nominal value of €/000 15,000) medium-term loan granted by Oldenburgische Landensbank Aktiengesellschaft maturing on 30 September 2027. Contract terms require covenants (described below);
• a €/000 23,923 medium-term loan (with a nominal value of €/000 24,000) granted by Banca Nazionale del Lavoro maturing on 5 January 2027. Contract terms require covenants (described below). An Interest Rate Swap has been taken out on this loan to hedge the interest rate risk;
• a €/000 12,478 revolving loan facility (with a nominal value of €/000 12,500) granted by Banca Popolare dell'Emilia Romagna maturing on 2 August 2026;
• a €/000 10,000 revolving loan facility granted by Banca del Mezzogiorno maturing on 1 July 2026.

All the above financial liabilities are unsecured.

The item "Bonds" amounted to €/000 245,882 (nominal value of €/000 250,000) related to a highyield debenture loan issued on 5 October 2023 for €/000 250,000, maturing on 5 October 2030 and with a semi-annual coupon with fixed annual nominal rate of 6.50%.

Standard & Poor's and Moody's assigned a BB- rating with a positive outlook and a Ba3 rating with a stable outlook respectively.

It should be noted that the Company may repay in advance all or part of the High Yield bond issued on 5 October 2023 on the terms specified in the indenture. The value of prepayment options was not deducted from the original contract, as these are considered as being closely related to the host instrument, as provided for by IFRS 9 b4.3.5.

Financial advances received from factoring companies and banks, on the sale of trade receivables with recourse, totalled €/000 11,809.

Medium-/long-term amounts due to other lender equal to €/000 177 of which €/000 106 maturing after the year and €/000 71 as the current portion refer to a loan from the Region of Tuscany, pursuant to regulations on incentives for investments in research and development.

Covenants

In line with market practices for borrowers with a similar credit rating, main loan contracts require compliance with:

1) financial covenants, on the basis of which the company undertakes to comply with certain levels of contractually defined financial indices, with the most significant comprising the ratio of net financial debt/gross operating margin (EBITDA), measured on the consolidated perimeter of the Group, according to definitions agreed on with lenders;

• 2) negative pledges according to which the company may not establish collaterals or other constraints on company assets;
• 3) "pari passu" clauses, on the basis of which the loans will have the same repayment priority as other financial liabilities, and change of control clauses, which are effective if the majority shareholder loses control of the company;
• 4) limitations on the extraordinary operations the company may carry out.

The measurement of financial covenants and other contract commitments is monitored by the Group on an ongoing basis.

The high yield debenture loan issued by the company in October 2023 provides for compliance with covenants which are typical of international practice on the high yield market. In particular, the company must observe the EBITDA/Net financial borrowing costs index, based on the threshold established in the Prospectus, to increase financial debt defined during issue. In addition, the Prospectus includes some obligations for the issuer, which limit, inter alia, the capacity to:

• 1) pay dividends or distribute capital;
• 2) make some payments;
• 3) grant collaterals for loans;
• 4) merge with or establish some companies;
• 5) sell or transfer own assets.

Failure to comply with the covenants and other contract commitments of the loan and debenture loan, if not remedied in agreed times, may give rise to an obligation for the early repayment of the outstanding amount of the loan.

Financial liabilities for rights of use €/000 30,399

As required by IFRS 16, financial liabilities for rights of use include financial lease liabilities as well as payments due on operating lease agreements.

	As of 31 March 2024			As of 31 December 2023		Change
	Current	Non current	Total	Current	Non current	Total	Current	Non current	Total
In thousands of Euros
Operating leases	8,357	19,033	27,390	9,096	17,599	26,695	(739)	1,434	695
Finance leases	1,255	1,754	3,009	1,240	2,066	3,306	15	(312)	(297)
Total	9,612	20,787	30,399	10,336	19,665	30,001	(724)	1,122	398

Operating lease liabilities include payables to the parent companies Immsi and Omniaholding for €/000 5,262 (€/000 3,919 non-current portion).

Payables for finance leases amounted to €/000 3,009 (nominal value of €/000 3,013) and break down as follows:

• a Sale&Lease back agreement for €/000 2,972 (nominal value of €/000 2,976) granted by Albaleasing on a production plant of the Parent Company. The agreement is for ten years, with quarterly repayments (non-current portion equal to €/000 1,754);
• a finance lease for €/000 37 granted by VFS Servizi Finanziari to the Aprilia Racing company for the use of vehicles.

Financial Instruments

Exchange Risk

The Group operates in an international context where transactions are conducted in currencies different from the Euro. This exposes the Group to risks arising from exchange rates fluctuations. For this purpose, the Group has an exchange rate risk management policy which aims to neutralise the possible negative effects of the changes in exchange rates on company cash flows.

This policy analyses:

• transaction exchange risk: the policy wholly covers this risk which arises from differences between the recognition exchange rate of receivables or payables in foreign currency in the financial statements and the recognition exchange rate of actual collection or payment. To cover this type of exchange risk, the exposure is naturally offset in the first place (netting between sales and purchases in the same currency) and if necessary, by signing currency future derivatives, as well as advances of receivables denominated in currency.

As of 31 March 2024, the Group had undertaken the following futures operations (recognised based on the settlement date), relative to payables and receivables already recognised to hedge the transaction exchange risk:

Company	Operation	Currency	Amount in currency	Countervalue in local currency (forward exchange rate)	Average maturity
Piaggio & C.	Purchase	CNY	In thousands 259,000	In thousands 33,170	26/04/2024
Piaggio & C.	Purchase	JPY	475,000	2,968	10/05/2024
Piaggio & C.	Purchase	SEK	6,000	533	20/04/2024
Piaggio & C.	Purchase	USD	67,900	62,330	06/05/2024
Piaggio & C.	Sale	CAD	4,000	2,724	06/06/2024
Piaggio & C.	Sale	CNY	102,000	12,992	24/06/2024
Piaggio & C.	Sale	GBP	600	699	27/06/2024
Piaggio & C.	Sale	JPY	230,000	1,418	06/05/2024
Piaggio & C.	Sale	USD	41,679	38,303	27/05/2024
Piaggio & C.	Sale	VND	979,600,000	36,464	22/04/2024
Piaggio Vietnam	Sale	USD	57,863	1,420,199,863	11/05/2024
Piaggio Vehicles Private Limited	Purchase	EUR	2,000	180,660	24/05/2024
Piaggio Vehicles Private Limited	Sale	USD	4,700	391,912	23/05/2024
PT Piaggio Indonesia	Purchase	USD	20,459	286,413,332	02/05/2024
Piaggio Vespa BV	Sale	VND	553,967,658	20,494	21/04/2024

• translation exchange risk: arises from the translation into Euro of the financial statements of subsidiaries prepared in currencies other than the Euro during consolidation. The policy adopted by the Group does not require this type of exposure to be covered;

• economic exchange rate risk: arises from changes in company profitability in relation to annual figures planned in the economic budget on the basis of a reference change (the "budget change") and is covered by derivatives. The items of these hedging operations are therefore represented by foreign costs and revenues forecast by the sales and purchases budget. The total of forecast costs and revenues is processed monthly and associated hedging is positioned exactly on the average weighted date of the economic event, recalculated based on historical criteria. The economic occurrence of future receivables and payables will occur during the budget year.

As of 31 March 2024, the Group had undertaken the following hedging transactions on the exchange risk:

Company	Operation	Currency	Amount in currency	Countervalue in local currency (forward exchange rate)	Average maturity
			In thousands	In thousands
Piaggio & C.	Purchase	CNY	710,000	94,525	16/09/24
Piaggio & C.	Purchase	INR	4,201,024	44,000	05/04/25
Piaggio & C.	Sale	GBP	10,800	12,392	29/07/24
Piaggio & C.	Sale	USD	56,000	52,752	06/07/24

To hedge the economic exchange risk alone, cash flow hedging is adopted with the effective portion of profits and losses recognised in a specific shareholders' equity reserve. Fair value is determined based on market quotations provided by main traders.

As of 31 March 2024 the total fair value of hedging instruments for the economic exchange risk recognised on a hedge accounting basis was negative by €/000 1,634.

Interest rate risk

This risk arises from fluctuating interest rates and the impact this may have on future cash flows arising from variable rate financial assets and liabilities. The Group regularly measures and controls its exposure to the risk of interest rate changes, as established by its management policies, in order to reduce fluctuating borrowing costs, and limit the risk of a potential increase in interest rates. This objective is achieved through an adequate mix of fixed and variable rate exposure, and the use of derivatives, mainly interest rate swaps and cross currency swaps.

As of 31 March 2024, the following hedging derivatives were taken out:

Cash flow hedging

• an Interest Rate Swap to hedge the variable-rate loan for a nominal amount of €/000 10,000 from Banco BPM. The purpose of the instrument is to manage and mitigate exposure to interest rate risk; in accounting terms, the instrument is recognised on a cash flow hedge basis with the allocation of gains/losses arising from the fair value measurement to a specific Shareholders' equity reserve; as of 31 March 2024, the fair value of the instrument was positive for €/000 299;
• an Interest Rate Swap to hedge the variable-rate loan for a nominal amount of €/000 24,000 from Banca Nazionale del Lavoro. The purpose of the instrument is to manage and mitigate exposure to interest rate risk; in accounting terms, the instrument is recognised on a cash flow hedge basis with the allocation of gains/losses arising from the fair value measurement to a specific Shareholders' equity reserve; as of 31 March 2024, the fair value of the instrument was positive for €/000 222.

Commodity Price Risk

This risk arises from the possibility of changes in company profitability due to fluctuations in commodity prices (specifically platinum and palladium). The Group's objective is therefore to neutralise such possible adverse changes deriving from highly probable future transactions by compensating them with opposite variations related to the hedging instrument.

Cash flow hedging is adopted with this type of hedging, with the effective portion of profits and losses recognised in a specific shareholders' equity reserve. Fair value is determined based on market quotations provided by main traders.

As of 31 March 2024, the total fair value of hedging instruments for commodity price risk recognised on a hedge accounting basis was negative by €/000 467.

	FAIR VALUE
In thousands of Euros
Piaggio & C. S.p.A.
Interest Rate Swap	521
Commodity hedges	(467)

F) INFORMATION ON SHAREHOLDERS' EQUITY

36. Share capital and reserves €/000 436,381

For the composition of Shareholders' Equity, please refer to the Statement of Changes in Consolidated Shareholders' Equity. The following describes some of the most significant items.

Share capital €/000 207,614

During the period, the nominal share capital of Piaggio & C. did not change.

The structure of Piaggio & C's share capital, equal to €207,613,944.37, fully subscribed and paid up, is indicated in the next table:

	Structure of share capital as of 31 March 2024
	No. of shares	% compared to the share capital	Market listing	Rights and obligations
Ordinary shares	354,632,049	100%	MTA	Right to vote in the Ordinary and Extraordinary Shareholders' Meetings of
				the Company

The shares of the Company are without nominal value, are indivisible, registered and issued on a dematerialisation basis, in the centralised management system of Monte Titoli S.p.A..

At the date of these financial statements, no other financial instruments with the right to subscribe to new issue shares had been issued, nor were there share-based incentive plans in place involving increases, also without a consideration, in share capital.

Treasury shares €/000 (1,411)

Therefore, as of 31 March 2024, Piaggio & C. held 426,161 treasury shares, equal to 0.1202% of the shares issued.

Shares in circulation and treasury shares

	2024	2023
no. of shares
Situation as of 1 January
Number of shares	354,632,049	358,153,644
Of which treasury portfolio shares	426,161	3,521,595
Of which shares in circulation	354,205,888	354,632,049
Movements for the period
Cancellation of treasury shares	0	(3,521,595)
Purchase of treasury shares	0	426,161
Situation as of 31 March 2024 and 31 December 2023
Number of shares	354,632,049	354,632,049
Of which treasury portfolio shares	426,161	426,161
Of which shares in circulation	354,205,888	354,205,888

Share premium reserve €/000 7,171

€/000 (1,214)

The share premium reserve as of 31 March 2024 was unchanged compared to 31 December 2023.

Legal reserve €/000 32,707

The legal reserve as of 31 March 2024 was unchanged compared to 31 December 2023.

Reserve for measurement of financial

instruments

The financial instruments' fair value reserve relates to the effects of cash flow hedge accounting implemented on foreign currencies, interest and specific commercial transactions. These transactions are described in full in the note on financial instruments.

Dividends

The Ordinary Shareholders' Meeting of Piaggio & C. S.p.A. held on 17 April 2024 resolved to distribute a final dividend of 8 eurocents, before tax, for each ordinary share entitled (ex-dividend date no. 22 on 22 April 2024, record date 23 April 2024 and payment date 24 April 2024), in addition to the interim dividend of 12.5 eurocents paid on 20 September 2023 (ex-dividend date 18 September 2023), for a total dividend for the 2023 financial year of 20.5 eurocents. The total dividend from the remaining 2023 financial year profit after allocations to reserves amounted to a total of €72,630,957.04.

Earnings reserve €/000 242,568

Share capital and reserves attributable to non-controlling

interests

The end of period figures refer to non-controlling interests in Aprilia Brasil Industria de Motociclos S.A.

37. Other comprehensive income/(loss) €/000 1,732

€/000 (174)

The figure is broken down as follows:

					Share capital and
					reserves
	Reserve for				attributable
	measurement of financial	Group translation	Earnings	Group	to non controlling	Total other comprehensive
	instruments	reserve	reserve	total	interests	income/(loss)
In thousands of Euros
As of 31 March 2024
Items that will not be reclassified in the income statement
Remeasurements of defined benefit plans			303	303		303
Total	0	0	303	303	0	303
Items that may be reclassified in the income statement Exchange gain/(losses) arising on
translation of foreign operations Share of Other Comprehensive Income/(loss) of associates valued with		1,658		1,658	1	1,659
the equity method		43		43		43
Total profits (losses) on cash flow hedges	(273)			(273)		(273)
Total	(273)	1,701	0	1,428	1	1,429
Other comprehensive income/(loss)	(273)	1,701	303	1,731	1	1,732
As of 31 March 2023
Items that will not be reclassified in the income statement
Remeasurements of defined benefit plans			(281)	(281)		(281)
Total	0	0	(281)	(281)	0	(281)
Items that may be reclassified in the income statement Exchange gain/(losses) arising on
translation of foreign operations Share of Other Comprehensive		(1,564)		(1,564)	(4)	(1,568)
Income/(loss) of associates valued with the equity method		(171)		(171)		(171)
Total profits (losses) on cash flow hedges	(446)			(446)		(446)
Total	(446)	(1,735)	0	(2,181)	(4)	(2,185)
Other comprehensive income/(loss)	(446)	(1,735)	(281)	(2,462)	(4)	(2,466)

		As of 31 March 2024		As of 31 March 2023
	Gross value	Tax (expense)/ benefit	Net value	Gross value	Tax (expense)/ benefit	Net value
In thousands of Euros
Remeasurements of defined benefit plans Exchange gain/(losses) arising on translation	304	(1)	303	(290)	9	(281)
of foreign operations Share of Other Comprehensive Income/(loss) of associates valued with the	1,659		1,659	(1,568)		(1,568)
equity method	43		43	(171)		(171)
Total profits (losses) on cash flow hedges	(343)	70	(273)	(611)	165	(446)
Other comprehensive income/(loss)	1,663	69	1,732	(2,640)	174	(2,466)

The tax effect related to other comprehensive income is broken down as follows:

G) OTHER INFORMATION

38. Share-based incentive plans

As of 31 March 2024, there were no incentive plans based on financial instruments.

39. Information on related parties

Revenues, costs, payables and receivables as of 31 March 2024 involving parent, subsidiary and associate companies, refer to the sale of goods or services which are a part of normal operations of the Group.

Transactions are carried out at normal market values, depending on the characteristics of the goods and services provided.

Information on transactions with related parties, including information required by Consob in its communication of 28 July 2006 no. DEM/6064293, is reported in the notes of the Consolidated Financial Statements.

The procedure for transactions with related parties, pursuant to Article 4 of Consob Regulation no. 17221 of 12 March 2010 as amended, approved by the Board on 30 September 2010, is published on the institutional site of the Issuer www.piaggiogroup.com, under Governance.

Relations with Parent Companies

Piaggio & C. S.p.A. is controlled by the following companies:

Name	Registered office	Type	% of ownership
			As of 31 March	As of 31
			2024	December 2023
		Direct parent
Immsi S.p.A.	Mantova - Italy	company	50.5680	50.5680

Piaggio & C. S.p.A. is subject to the management and coordination of IMMSI S.p.A. pursuant to Article 2497 and subsequent of the Italian Civil Code. During the period, management and coordination comprised the following activities:

• as regards mandatory financial disclosure, and in particular the financial statements and reports on operations relating to Group companies, IMMSI has produced a group manual containing the accounting standards adopted and options chosen for implementation, in order to give a consistent and fair view of the consolidated financial statements.

• IMMSI has defined procedures and times for preparing the budget and in general the business plan of Group companies, as well as final management analysis to support management control activities.
• IMMSI has also provided services for the development and management of assets, with a view to optimising resources within the Group, and provided property consultancy services and other administrative services.
• IMMSI has provided consultancy services and assistance concerning extraordinary financing operations, organisation, strategy and coordination, as well as services intended to optimise the financial structure of the Group.

In 2023, for a further three years, the Parent Company16 signed up to the National Consolidated Tax Scheme pursuant to Articles 117 to 129 of the Consolidated Income Tax Act (T.U.I.R.) of which IMMSI S.p.A. is the consolidating company, and to whom other IMMSI Group companies report to. The consolidating company determines a single global income equal to the algebraic sum of taxable amounts (income or loss) realised by individual companies that opt for this type of group taxation.

The consolidating company recognises a receivable from the consolidated company which is equal to the corporate tax to be paid on the taxable income transferred by the latter. Whereas, in the case of companies reporting tax losses, the consolidating company recognises a payable related to corporate tax on the portion of loss actually used to determine global overall income or calculated as a decrease of overall income for subsequent tax periods, according to the procedures in Article 84, based on the criterion established by the consolidation agreement.

Under the National Consolidated Tax Scheme, companies may, pursuant to article 96 of Presidential Decree no. 917/86, allocate the excess of interest payable which is not deductible to one of the companies so that, up to the excess of Gross Operating Income produced in the same tax period by other subjects party to the consolidation, the amount may be used to reduce the total income of the Group.

Piaggio & C. S.p.A. has two office lease agreements with IMMSI, one for property in Via Broletto 13 in Milan, and the other for property in Via Abruzzi 25 in Rome. A part of the property in Via Broletto 13 in Milan is sub-leased by Piaggio & C. S.p.A. to Piaggio Concept Store Mantova Srl.

Piaggio & C. S.p.A. has undertaken a rental agreement for offices owned by Omniaholding S.p.A.. This agreement, signed in normal market conditions, was previously approved by the Related Parties Transactions Committee, as provided for by the procedure for transactions with related parties adopted by the Company.

¹⁶ Aprilia Racing and Piaggio Concept Store Mantova were also party to the national consolidated tax convention, of which IMMSI S.p.A. is the consolidating company.

Piaggio Concept Store Mantova Srl has a lease contract for its sales premises and workshop with Omniaholding S.p.A.. This agreement was signed in normal market conditions.

Pursuant to Article 2.6.2, section 13 of the Regulation of Stock Markets organised and managed by Borsa Italiana S.p.A., the conditions as of Article 37 of Consob regulation 16191/2007 exist.

Transactions among Piaggio Group companies

The main relations among subsidiaries, eliminated in the consolidation process, refer to the following transactions:

Piaggio & C. S.p.A.

• o sells vehicles, spare parts and accessories to sell on respective markets, to:
• Piaggio Hrvatska
• Piaggio Hellas
• Piaggio Group Americas
• Piaggio Vehicles Private Limited
• Piaggio Vietnam
• Piaggio Concept Store Mantova
• Foshan Piaggio Vehicles Technology R&D
• Piaggio Asia Pacific
• Piaggio Group Japan
• PT Piaggio Indonesia
  • o sells components to:
• Piaggio Vehicles Private Limited
• Piaggio Vietnam
• Aprilia Racing
  • o It provides promotional material to:
• Piaggio France
• PT Piaggio Indonesia
• Piaggio España
• Piaggio Limited
• Piaggio Deutschland
  • o grants licences for rights to use the brand and technological know-how to:
• Piaggio Vehicles Private Limited
• Piaggio Vietnam
• Aprilia Racing
• PT Piaggio Indonesia
  • o provides support services for scooter and engine industrialisation to:
• Piaggio Vehicles Private Limited
• Piaggio Vietnam
  • o leases a part of the owned property to:
• Aprilia Racing

• o subleases a part of the rented property to:
• Piaggio Concept Store Mantova
  • o has cash pooling agreements with:
• Piaggio France
• Piaggio Deutschland
• Piaggio España
• Piaggio Vespa
• Aprilia Racing
• Piaggio Concept Store Mantova
  • o has loan agreements with:
• Piaggio Fast Forward
• Aprilia Racing
• Nacional Motor
  • o provides support services for staff functions to other Group companies;
  • o issues guarantees for the Group's subsidiaries, for medium-term loans.

Piaggio Vietnam sells vehicles, spare parts and accessories, which it has manufactured in some cases, for sale on respective markets, to:

• o PT Piaggio Indonesia
• o Piaggio Group Japan
• o Piaggio & C. S.p.A.
• o Foshan Piaggio Vehicles Technology R&D
• o Piaggio Asia Pacific.

It also sells CKD vehicles to PT Piaggio Indonesia, which assembles them in its own factory and distributes them on the local market.

Piaggio Vehicles Private Limited sells vehicles, spare parts and accessories, for sale on respective markets, and components and engines to use in manufacturing, to Piaggio & C. S.p.A..

Piaggio Vehicles Private Limited and Piaggio Vietnam reciprocally exchange materials and components to use in their manufacturing activities.

Piaggio Hrvatska, Piaggio Hellas, Piaggio Group Americas, Piaggio Vietnam

o distribute vehicles, spare parts and accessories purchased by Piaggio & C. S.p.A. on their respective markets.

Piaggio Asia Pacific, PT Piaggio Indonesia, Piaggio Group Japan

o distribute vehicles, spare parts and accessories purchased from Piaggio & C. S.p.A. and Piaggio Vietnam on markets in Asia where the Group is not present with its own companies.

Foshan Piaggio Vehicles Technology R&D supplies:

• Piaggio & C. S.p.A. with:
• o a component and vehicle design/development service;

• o a local supplier scouting services;
• o a distribution service for vehicles, spare parts and accessories on its own market.
• Piaggio Vehicles Private Limited with:
• o a local supplier scouting services;
• Piaggio Vietnam with:
• o a local supplier scouting services;
• o a distribution service for vehicles, spare parts and accessories on its own market.

Piaggio France, Piaggio Deutschland, Piaggio Limited, Piaggio España and Piaggio Vespa

o provide a sales promotion service and after-sales services to Piaggio & C. S.p.A. for their respective markets.

Piaggio Advanced Design Center supplies Piaggio & C. S.p.A. with:

o a vehicle and component research/design/development service.

Piaggio Fast Forward supplies Piaggio & C. S.p.A. with:

• o a research/design/development service;
• o some components to be used in the manufacturing activities.

Aprilia Racing supplies Piaggio & C. S.p.A. with:

o a service for the management and organisation of the racing team and the promotion of commercial brands (owned by Piaggio & C. S.p.A.).

Piaggio España supplies Nacional Motor with:

o an administrative/accounting service.

In accordance with the Group's policy on the international mobility of employees, the companies in charge of employees transferred to other subsidiaries re-invoice the costs of these employees to the companies benefiting from their work.

Relations between Piaggio Group companies and JV Zongshen Piaggio Foshan Motorcycle Co. Ltd.

Main intercompany relations between subsidiaries and JV Zongshen Piaggio Foshan Motorcycle Co. Ltd, refer to the following transactions:

Piaggio & C. S.p.A.

• grants licences for rights to use the brand and technological know-how to Zongshen Piaggio Foshan Motorcycle Co. Ltd..

Foshan Piaggio Vehicles Technology R&D

• provides advisory services to Zongshen Piaggio Foshan Motorcycle Co. Ltd.

Zongshen Piaggio Foshan Motorcycle Co. Ltd

• sells vehicles, spare parts and accessories, which it has manufactured in some cases, to the following companies for sale on their respective markets:
  • o Piaggio Vietnam
  • o Piaggio & C. S.p.A.
  • o Piaggio Group Japan.

The table below summarises relations described above and financial relations with parent companies and affiliated companies as of 31 March 2024 and relations during the period, as well as their overall impact on financial statement items.

As of 31 March 2024	Fondazione Piaggio	IMMSI	IMMSI Audit	Omniaholding	Zongshen Piaggio Foshan	Total	% of accounting item
In thousands of Euros
Income statement Costs for materials Costs for services and					5,960	5,960	2.30%
use of third-party	1	114	200	13	33	361	0.58%
assets Other operating income		12	6		53	71	0.17%
Other operating costs		1				1	0.02%
Results of associates - Income/(losses)					(200)	(200)	100.00%
Financial costs		62		6		68	0.56%
Financial statements
Current trade receivables			2		409	411	0.34%
Other current receivables		33,262	13		596	33,871	42.91%
Financial liabilities for rights of use > 12 months		3,658		261		3,919	18.85%
Financial liabilities for rights of use < 12 months		983		360		1,343	13.97%
Current trade payables	28	86	50	6	7,801	7,971	1.20%
Other current payables	104	43,695				43,799	35.78%

40. Significant non-recurring events and operations

No significant, non-recurring operations, as defined by Consob Communication DEM/6064293 of 28 July 2006 took place during the first three months of 2024 and in 2023.

41. Transactions arising from atypical and/or unusual transactions

During 2023 and the first three months of 2024, the Group did not record any significant atypical and/or unusual operations, as defined by Consob Communication DEM/6037577 of 28 April 2006 and DEM/6064293 of 28 July 2006.

42. Subsequent events

To date, no events have occurred after 31 March 2024 that make additional notes or adjustments to these Financial Statements necessary.

In this regard, reference is made to the Report on Operations for significant events after 31 March 2024.

43. Authorisation for publication

This document was published on 15 May 2024 on the authorisation of the Chief Executive Officer.

* * *

In accordance with paragraph 2 of article 154-bis of the Consolidated Finance Act, the Executive in Charge of Financial Reporting, Alessandra Simonotto, states that the accounting information in this document is consistent with the accounts.

Mantova, 9 May 2024 for the Board of Directors Chief Executive Officer Michele Colaninno