LETTER TO SHAREHOLDERS 3
REPORT ON OPERATIONS5
KEY OPERATING AND FINANCIAL DATA7
HISTORY9
GROUP PROFILE11
PIAGGIO AND THE FINANCIAL MARKETS20
SIGNIFICANT EVENTS DURING THE YEAR 24
FINANCIAL POSITION AND PERFORMANCE OF THE GROUP27
BACKGROUND33
RESULTS BY TYPE OF PRODUCT 42
RISKS AND UNCERTAINTIES50
SUBSEQUENT EVENTS 58
OPERATING OUTLOOK 59
TRANSACTIONS WITH RELATED PARTIES 60
CORPORATE GOVERNANCE 61
OTHER INFORMATION 63
RECONCILIATION OF SHAREHOLDERS' EQUITY AND PROFIT FOR THE PERIOD
OF THE PARENT COMPANY AND CONSOLIDATED COMPANIES 65
CONSOLIDATED NON-FINANCIAL STATEMENT - LEGISLATIVE DECREE 254 OF 30 DECEMBER 2016 66
METHODOLOGICAL NOTE 68
DESCRIPTION OF THE PROCESS TO IDENTIFY MATERIAL TOPICS FOR NON-FINANCIAL STATEMENT PURPOSES69
THE BUSINESS MODEL 78
RESEARCH, DEVELOPMENT AND INNOVATION GUIDELINES84
THE EUROPEAN TAXONOMY 92
RISK MANAGEMENT102
SUSTAINABILITY GOVERNANCE109
THE ENVIRONMENTAL DIMENSION116
THE SOCIAL DIMENSION 131
CORRELATION TABLE LEGISLATIVE DECREE 254/2016 AND MATERIAL TOPICS - GRI STANDARD167
GRI CONTENT INDEX175
AUDITOR'S REPORT ON THE CONSOLIDATED NON-FINANCIAL STATEMENT - LEGISLATIVE DECREE
NO. 254 OF 30 DECEMBER 2016183
CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2023 187
CONSOLIDATED INCOME STATEMENT 189
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME190
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 191
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY 193
CONSOLIDATED STATEMENT OF CASH FLOWS 194
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 196
ATTACHMENTS 280
PIAGGIO GROUP COMPANIES 280
INFORMATION PURSUANT TO ARTICLE 149-DUODECIES OF THE CONSOB REGULATION ON ISSUERS283
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ARTICLE 154-BIS
OF LEGISLATIVE DECREE 58/98285
AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 286

LETTER TO SHAREHOLDERS

Dear Stakeholders,

2023 will be remembered for its geopolitical tensions: from the conflict between Russia and Ukraine to the Middle East, with repercussions on trade in the Red Sea due to frequent attacks on cargo ships. The macroeconomic scenario has also been impacted by persistent inflation, which central banks sought to respond to, with restrictive monetary policies, raising interest rates to their highest levels in decades in many cases.

In spite of this uncertain context, the internationalisation strategy developed in recent years by the Piaggio Group in those areas where economic and demographic scenarios have created prospects for growth, has made it possible to offset the slowdown in some markets, gaining ground in the more responsive ones. Thanks to a portfolio of iconic brands that are increasingly appreciated worldwide, the Group has been able to achieve even higher margins and productivity levels, confirming the

investments envisaged in its strategic plans on electric mobility and ESG issues.

As further confirmation of the Piaggio Group's focus on the environment, the Decarbonisation Plan was presented at the end of 2023, which envisages the implementation of concrete actions to help achieve the climate objectives set by the European Union, with a dual time horizon: 2030 and 2050. Specifically, the Group, in line with the objectives of the Paris Agreement, has committed to reducing emissions associated with production activities by 42% by 2030 compared to 2022. Furthermore, through the increase of electric vehicles sold, the improvement of combustion engines, the evolution of product design and preparation for alternative fuels, Scope 3 emissions from the use of Group vehicles will be further reduced.

A pioneer in the study of electric and hybrid engines, the Piaggio Group now has several models of electric scooters and commercial vehicles in its range, including the Vespa Primavera and Vespa Sprint, the Piaggio 1, and the Ape e-City, designed for the Indian market. In addition, in 2023 it announced the launch of the Porter NP6 electric project, in partnership with Foton Motor Group, which will be produced at the Piaggio Group's Pontedera plant in Italy and marketed in major European countries from early 2025.

Building on the experience gained since 2009 with the Piaggio Mp3 Hybrid, the world's first parallel hybrid scooter, Piaggio has never stopped studying hybrid propulsion, which combines the advantages of electric engines with internal combustion engines (ICE). In addition, the Group is also paying particular attention to alternative energy vectors, such as Hydrogen with Fuel Cells (HEV - Hybrid Electric Vehicle).

Adapting to the constant and rapid changes imposed by the evolution of urban mobility is second nature to the Piaggio Group. To achieve the target set by the international community to reduce emissions by 90% by 2050, the adoption of diversified technologies such as e-fuel, biofuels and widespread use of electric vehicles will also be crucial.

The Piaggio Group's commitment to ESG issues is also underscored by it receiving, for the eighth consecutive year, an "AA" rating from Morgan Stanley Capital International (MSCI) Research - one of the leading ESG rating agencies that assesses the environmental, social and governance (ESG) performance of major companies worldwide - together with a "B" rating (Climate Change and Water Security) from CDP (Carbon Disclosure Project).

We are also continuing to study new solutions to ensure even greater driving safety. After the 2022 debut of the innovative ARAS systems developed by Piaggio Fast Forward in Boston, on the new Piaggio MP3 range, the Moto Guzzi Stelvio was unveiled on the market in 2023, the Group's first motorbike equipped with the "PFF Rider Assistance Solution" system which, thanks to radar technology derived from robotics, makes riding safer in all situations.

We started 2024 by reaching an important milestone: 140 years of our company. A long journey made up of industry, technological innovation, design and passion, unique ingredients that will continue to make the Piaggio Group a leader in mobility, an interpreter and anticipator of the changes taking place, accompanying people on their own travels, whether everyday or something more special.

Matteo Colaninno, Executive Chairman Piaggio Group

REPORT ON OPERATIONS

KEY OPERATING AND FINANCIAL DATA7
HISTORY9
GROUP PROFILE11
PIAGGIO AND THE FINANCIAL MARKETS20
SIGNIFICANT EVENTS DURING THE YEAR 24
FINANCIAL POSITION AND PERFORMANCE OF THE GROUP27
BACKGROUND33
RESULTS BY TYPE OF PRODUCT 42
RISKS AND UNCERTAINTIES50
SUBSEQUENT EVENTS 58
OPERATING OUTLOOK 59
TRANSACTIONS WITH RELATED PARTIES 60
CORPORATE GOVERNANCE 61
OTHER INFORMATION 63
RECONCILIATION OF SHAREHOLDERS' EQUITY AND PROFIT FOR THE PERIOD
OF THE PARENT COMPANY AND CONSOLIDATED COMPANIES 65

KEY OPERATING AND FINANCIAL DATA

	2023	2022
IN MILIONI DI EURO
Operating highlights
Net Revenues	1,994.6	2,087.4
Gross Industrial Margin	574.7	554.9
Operating income	180.7	158.7
Profit before tax	135.3	127.2
Net profit	91.1	84.9
.Non-controlling interests
.Group	91.1	84.9

Financial highlights
Net Capital Employed (NCE)	850.0	786.0
Consolidated net debt1	(434.0)	(368.2)
Shareholders' equity	416.0	417.8
Financial ratios
Gross Margin as a Percentage of Net Revenues (%)	28.8%	26.6%
Net profit as a percentage of net revenues (%)	4.6%	4.1%
ROS (Operating income/net revenues)	9.1%	7.6%
ROE (Net profit/shareholders' equity)	21.9%	20.3%
ROI (Operating income/NCE)	21.3%	20.2%
EBITDA	325.0	298.1
EBITDA/net revenues (%)	16.3%	14.3%

Other information
Sales volumes (unit/000)	559.5	625.5
Investments in property plant and equipment and intangible assets	162.9	151.7
Employees at year-end (number)	5,925	5,838
Social indicators
Carbon Disclosure Project Score Climate Change	B	B
Carbon Disclosure Project Score Water Security	B	B
MSCI ESG Research	AA	AA

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

Risultati per settori operativi

1.241,8 1.240,5

47% 27% 26%

Volumi di vendita (unità/000)

Fatturato (milioni di euro)

Organico medio

Investimenti in immobilizzazioni materiali

e immateriali (milioni di euro)

(n.)

EMEA e AMERICAS

2023 262,1 151,7 145,8 559,5 2022 279,7 148,8 197,0 625,5 Variazione (17,6) 2,9 (51,3) (65,9) Variazione % -6,3% 1,9% -26,0% -10,5%

2023 1.241,8 371,9 381,0 1.994,6 2022 1.240,5 323,6 523,4 2.087,4 Variazione 1,3 48,3 (142,4) (92,9) Variazione % 0,1% 14,9% -27,2% -4,4%

2023 3.615,6 1.391,0 1.225,4 6.232,0 2022 3.752,9 1.501,3 1.133,4 6.387,6 Variazione (137,3) (110,3) 92,0 (155,6) Variazione % -3,7% -7,3% 8,1% -2,4%

2023 112,8 32,1 18,0 162,9 2022 94,1 20,7 36,9 151,7 Variazione 18,7 11,4 (18,8) 11,2 Variazione % 19,8% 54,9% -51,1% 7,4%

523,4

381,0

EMEA e Americas India Asia Pacific 2W

323,6 371,9

INDIA ASIA PA-CIFIC

RICAVI PER AREA GEOGRAFICA (valori in milioni di euro)

2023 2022

VOLUMI DI VENDITA PER AREA GEOGRAFICA – ANNO 2023

Asia Pacific 2W

EMEA e Americas

India

TOTALE

Results by operating segments

		EMEA and AMERICAS	INDIA	ASIA PACIFIC 2W	TOTAL

Sales volumes (unit/000)	2023	262.1	151.7	145.8	559.5
	2022	279.7	148.8	197.0	625.5
	Change	(17.6)	2.9	(51.3)	(65.9)
	Change %	-6.3%	1.9%	-26.0%	-10.5%

Net revenues (millions of Euros)	2023	1,241.8	371.9	381.0	1,994.6
	2022	1,240.5	323.6	523.4	2,087.4
	Change	1.3	48.3	(142.4)	(92.9)
	Change %	0.1%	14.9%	-27.2%	-4.4%

Average number of staff (no.)	2023	3,615.6	1,391.0	1,225.4	6,232.0
	2022	3,752.9	1,501.3	1,133.4	6,387.6
	Change	(137.3)	(110.3)	92.0	(155.6)
	Change %	-3.7%	-7.3%	8.1%	-2.4%

Investments in Property, plant and equipment and intangible assets (millions of Euros)	2023	112.8	32.1	18.0	162.9
	2022	94.1	20.7	36.9	151.7
	Change	18.7	11.4	(18.8)	11.2
	Change %	19.8%	54.9%	-51.1%	7.4%

9 PIAGGIO GROUP HISTORY Acquisition of the Aprilia - Moto Guzzi Group: thus the Italian two-wheeler hub came about. Listing of Piaggio & C. on the Milan Stock Exchange. Presentation of the Piaggio MP3, the first three-wheeler scooter. Inauguration of the new Vietnamese plant in Vinh Phunc and the start sales of the Vespa LX scooters produced there. Unveiling of the Piaggio MP3 Hybrid, the world's first hybrid scooter. Inauguration of the new Piaggio Group plant in Baramati, India dedicated to the production of the Vespa LX 125, specifically developed for the Indian subcontinent market. The first Motoplex is established in Mantova, a new and revolutionary "concept store" that makes the most of the Piaggio Group at a single location. Establishment in Cambridge, Massachusetts, USA of a new company called Piaggio Fast Forward controlled by the Piaggio Group with the aim of developing a new way of doing research, to interpret the signals of change and find solutions for the future. Commercial launch of the Vespa Elettrica. Acquisition of the Pontedera plant dedicated to the production of various vehicles for the transport sector: cable cars, funiculars, trailers, tramways, trucks, trolleybuses. The APE comes into being, Piaggio's first light three-wheeler transport vehicle. I.A.M Rinaldo Piaggio (aeronautical-railway sector) is separated from Piaggio & C. (scooter sector). Rinaldo Piaggio dies. The company passes into the hands of his sons Armando and Enrico. Armando deals with the production units of Genoa-Sestri and Finale Ligure, dedicated above all to aeronautical and railway activity, Enrico instead is dedicated to the sites at Pisa and Pontedera. Aeronautical production activity begins. From the creativity of Corradino d'Ascanio, the brilliant aeronautical designer who was behind the design of the first modern helicopter is due, the Vespa came into being, wanted by Enrico Piaggio as a contribution to the motorization of Italy with a simple, low-cost vehicle, everyone could use. Rinaldo Piaggio establishes Piaggio & C., based in Sestri Ponente, dedicated to naval fittings. 1884 Establishment with Greaves Ltd of the joint venture Piaggio Greaves Vehicles Private Ltd in India for the production and sale of light commercial vehicles. 1998 Acquisition of full ownership of the stake in the Indian company. Acquisition of Derbi Nacional Motor, a historic Spanish motorcycle manufacturer that is a leader in smallcapacity motorcycles. 2001 Acquisition of control of the Piaggio Group by Immsi Spa. Roberto Colaninno becomes Chairman of the Group. Opening of a new production facility in Indonesia Roberto Colaninno dies. His sons Matteo and Michele are nominated President and CEO respectively Commercial launch of the Piaggio1 Giovanni Alberto Agnelli dies prematurely. 1997 Presentation of the new Vespa. 1996 The Porter is created, Piaggio's first 4-wheeler commercial vehicle. 1992 Sfera comes into being, the first scooter with plastic bodywork produced in Pontedera. Giovanni Alberto Agnelli is elected president. 1990 Gilera, the wellknown motorcycle manufacturer of Arcore, is acquired, a source of pride for Italian technology and capacity in the motorcycle sector. 1969 Presentation of the Ciao. 1967 Enrico Piaggio dies and Umberto Agnelli succeeds him as president. 1965 1916 1924 1938 1946 1948 1964 2004 2006 2009 2012 2014 2015 2018 2003 2022 2023 2021

Company Boards Organisational structure Strategy and lines of development

GROUP PROFILE

The Piaggio Group, based in Pontedera (Pisa, Italy) is Europe's largest manufacturer of two-wheeler motor vehicles and an international leader in its field, with currently three distinct core segments:

2-wheelers, scooters and motorbikes from 50cc to 1,100cc;
light commercial vehicles, 3- and 4-wheelers;

– 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 STRUCTURE AT 31 DICEMBER 2023

Company structure Company Boards Organisational structure Strategy and lines of development

COMPANY BOARDS

BOARD OF DIRECTORS
Executive Chairman	Matteo Colaninno (2)
Chief Executive Officer	Michele Colaninno (1), (2)
Directors	Graziano Gianmichele Visentin (3), (4), (5), (6), (7)
	Rita Ciccone (4), (5), (6), (7)
	Patrizia Albano
	Federica Savasi
	Carlo Zanetti
	Micaela Vescia (4), (6)
	Andrea Formica (5), (7)

BOARD OF STATUTORY AUDITORS
Chairman	Piera Vitali
Statutory Auditors	Giovanni Barbara
	Massimo Giaconia
Alternate Auditors	Fabrizio Piercarlo Bonelli
	Gianmarco Losi

SUPERVISORY BODY
	Antonino Parisi
	Giovanni Barbara
	Fabio Grimaldi

Chief Financial Officer and Executive in Charge	Alessandra Simonotto
of financial reporting


Independent Auditors	Deloitte & Touche S.p.A.

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

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

(2) Executive Director

(3) Lead Independent Director

(4) Member of the Appointment Proposal Committee

(5) Member of the Remuneration Committee

(6) Member of the Audit Risk and Sustainability Committee

(7) Member of the Related-Party Transactions Committee

All information on the powers reserved for the Board of Directors, the authority granted to the 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.

Company Boards Organisational structure Strategy and lines of development

Company structure

ORGANISATIONAL STRUCTURE

As of 31 December 2023, Piaggio's organisation was structured through the following first-level functions:

Finance Department: responsible for the administration, finance, planning and control and information technology functions and for the coordination and reporting of sustainability activities.
Legal & Tax: responsible for support activities concerning legal aspects, providing assistance in contractual matters, managing the Group's litigation issues, ensuring the global protection of the Group's brands, ensuring the management of corporate legal obligations, as well as those relating to tax, customs and intercompany matters.
Human Resources Department: responsible for the selection, management and development of human resources, as well as the management of industrial relations.
Marketing and Communication Department: responsible for managing and coordinating commercial communication, digital marketing and customer experience activities on a global level, as well as overseeing brand image and awareness for the Group's brands and the management of the Group's Museums and Historical Brand Archives. It also manages and coordinates communication activities and relations with the media and end consumers, and ensures the global management and coordination of relations with product and racing media.
Product Development and Marketing Division: responsible for identifying market/customer needs, opportunities arising from technological innovation and regulatory developments, in order to support vehicle concept definition activities, within the evolution of the product range and responsible for styling activities on a global level for the Group's brands.
Racing: responsible for racing activities.
2-Wheeler R&D Department: responsible for technological innovation, engineering, reliability and quality activities relating to scooters, motorbikes and 2-Wheeler engines, as well as ensuring the protection of industrial property relating to the Group's technical patents and models.
Product Development Management 3-4 Wheels: responsible for styling, engineering, reliability and quality activities related to commercial vehicles and 3-4 wheeler engines.
Product Manufacturing Management: responsible for ensuring the production and quality of products, managing production technologies, infrastructures and facilities, ensuring after-sales activities, spare parts sales and distribution of spare parts and accessories, guaranteeing the achievement of turnover.
Purchasing: responsible for purchasing activities and supplier management, including in-bound logistics activities.
Materials Management: responsible for managing vehicle distribution logistics activities and optimising commercial and production planning processes.
Italy, EMEA and America 2-Wheelers Department,
Emea and Emerging Markets 3-4 Wheelers Department: each Department, for the area and products within its competence, is responsible for the achievement of sales objectives, defining pricing policies for individual markets and identifying appropriate actions for the development of the sales network, through the co-ordination of sales companies present in Europe, as well as the management of corporate sales to Major Customers and Central Public Administrations at a European level.
Asia Pacific 2-Wheeler: responsible for ensuring the coordination of Piaggio Vietnam, Piaggio Asia Pacific, Piaggio Group Japan and Piaggio Indonesia to guarantee the commercial and industrial profitability, turnover, market share and customer satisfaction of the Group's 2-wheeler vehicles, through the management of production and sales on reference markets.

China: responsible for overseeing operations in the area through the coordination of the Foshan Piaggio Vehicles Technology Research & Development Company.
Piaggio Vehicles Private Limited: responsible for ensuring the commercial and industrial profitability, turnover, market share and customer satisfaction of the Group's commercial vehicles and scooters in India, through the management of production and sales in the relevant markets.
Accessories & Merchandising Division: responsible for organising processes and scheduling activities related to the accessories and merchandising business.
Internal Audit: responsible for developing all activities pertaining to and functional to internal auditing to improve the effectiveness and efficiency of the internal control system and assess its functionality.
Corporate Press Office: responsible for managing and coordinating relations with the media for corporate activities, getting newspapers to participate in institutional events, drafting information messages and disseminating press releases.
Investor Relations: responsible for promoting the Piaggio share and handling relations with the national and international financial community.
Regulatory Affairs: responsible for monitoring regulatory developments worldwide, ensuring consistency at Group level.

STRATEGY AND LINES OF DEVELOPMENT

Company structure Company Boards Organisational structure Strategy and lines of development

Business strategy

The Piaggio Group aims to create value through a strategy of:

strengthening its leadership position in the European two-wheeler and Indian light commercial vehicle markets, also with a view to climate change related to the transition towards the use of renewable energy sources;
growth on international markets, with particular reference to the Asian region;
increased operational efficiency across all business processes, with a focus on industrial productivity.

EMEA and Americas

Europe 2-Wheeler - lever market recovery, consolidating a leadership position in the scooter segment. Focus on the Aprilia and Moto Guzzi brands to improve sales and profitability in the motorcycle segment. Expand the range of electric vehicles, targeting its technological and design leadership, and the distribution network.

America 2-Wheeler - growth through the introduction of premium Aprilia and Moto Guzzi products and the strengthening of the sales network.

Europe Commercial Vehicles - maintenance based on eco-sustainable solutions, with a product range developed for new engines featuring a low or zero-environmental impact and reduced consumption.

India

2-Wheeler - strength the position in the scooter market by expanding the Vespa and Aprilia branded range. Commercial Vehicles - growth in volumes and profitability, consolidating the strong competitive position in the local three-wheeler market and boosting vehicle exports to Africa and Latin America.

Asia Pacific 2W

Development: the aim is to increase scooter sales throughout the region (Vietnam, Indonesia, Thailand, Malaysia, Taiwan), explore opportunities for medium-sized motorcycles, and strengthen penetration in the premium segment of the Chinese market.

Key Assets

The Group will consolidate its business position by levering and investing in the potential of its key assets:

distinctive brands, recognised worldwide;
an extensive sales network in the relevant markets;
research and development expertise, focusing on innovation, safety and the environment;
a strong international presence, with local operations for all core company processes, from marketing to research and development, production and purchasing

Company structure Company Boards Organisational structure Strategy and lines of development

Sustainability strategy

The Group's Corporate Social Responsibility (CSR) strategic objectives – which are largely integrated with and connected to the development of the long-term plan – are based on the following areas:

Economic: timely, correct, in-depth information to stakeholders. Creation of value while respecting business ethics.
Product: technological investments to meet the need for sustainable mobility innovation to develop products that are environmentally friendly, safe and cost-effective.
Environmental: reducing energy consumption, CO2 emissions and other pollutants - conserving of natural resources - waste management and recovery.
Social: developing, training and promoting human resources so that everyone's expectations and aspirations are met. Engaging with customers in order to establish relations based on transparency and trust - developing Company Advocacy in partnership with the dealer network – selling products that are environmentally friendly, reliable, safe and cost-effective. Engaging and cooperating with suppliers through shared development projects - respecting human rights. Fighting against corruption. Engaging and supporting local communities through social, cultural and educational initiatives.

These goals are consistent with the 17 Sustainable Development Goals (SDGs).

Piaggio believes that the SDGs represent an opportunity and a path towards which to direct the Group's future development. Piaggio believes that its activities can contribute to achieving the following SDGs:

1. Good health and well-being
1. Gender equality
1. Decent work and economic growth
1. Industry, innovation and infrastructure
1. Sustainable cities and communities
1. Responsible consumption and production
13.Acting for the climate

The Group's objectives include creating value for all shareholders, while complying with ethical business principles and adopting a number of key social values.

Specifically, the Group's industrial strategy is founded upon technological innovation, which in turn is focused on environmentally friendly mobility. In this context, the Group considers research into cutting-edge solutions as a critical factor for successful investment choices and industrial and commercial initiatives. Innovation is geared to cutting pollutant emissions and consumption, as well as increasing vehicle safety.

Moreover, the Piaggio Group strongly believes that stakeholder involvement is one of the fundamental elements for the development of Piaggio and at the same time of the communities where it operates, in terms of economic and social well-being.

Protecting the environment in all company activities is essential for people, technology and nature to live peacefully side by side. Piaggio's focus on the creation of sustainable products is not limited to minimising the consumption of natural resources, harmful emissions and waste resulting from production activities, but extends to allphases of a vehicle's life cycle, from the choice of raw materials and suppliers to its use by the end customer, and its disposal.

This commitment took concrete form in the definition of a Decarbonisation Plan in which Piaggio has set out a number of intermediate targets to be reached by 2030 with the objective of zero CO2 emissions by 2050. This Plan is described in the Consolidated Non-Financial Statement.

People are a fundamental asset for Piaggio, indispensable for the creation of added value in the long term. The Group has defined objectives for the growth, enhancement and training of human capital, ensuring that everyone's contributions are rightly recognised and expectations and aspirations are met.

In order to achieve the objective of sustainable development, growth must extend beyond the company perimeter and also embrace suppliers and dealers, for whom Piaggio wants to be a reliable partner, with whom to build a common development path, aimed at creating value for the end customer. A company's success over time is closely linked to customer trust and satisfaction: customers must be listened to, informed and respected, establishing relations based on transparency and trust.

PIAGGIO AND THE FINANCIAL MARKETS

INVESTOR RELATIONS

Piaggio believes that financial communication is of crucial importance in building a relationship of trust with the financial market. In particular, the Investor Relations function engages institutional and individual investors as well as financial analysts in an ongoing dialogue, producing transparent, timely and accurate information to promote a correct perception of the Group's value. During 2023 numerous opportunities for engagement with the financial community were promoted, through participation in roadshows and conferences held almost exclusively online, in order to limit the environmental impact of Investor Relations activities. In addition, there are conference calls managed by the IR function and institutional events to announce quarterly results. To ensure adequate reporting and compliance with Borsa Italiana and Consob regulations, the Company's website is promptly and continually updated with all information concerning the Group and key corporate documents, published in both Italian and English. In particular, press releases disclosed to the market, the Company's periodic financial reports, data on business and financial performance, material used in meetings with the financial community, the Piaggio share consensus, as well as corporate governance documents (articles of association, insider trading and material concerning shareholders' meetings) are all published online.

Contact Investor Relations Office

Raffaele Lupotto - Executive Vice President, Head of Investor Relations Email: [email protected] Tel: +39 0587 272286 Fax: +39 0587 276093

OWNERSHIP STRUCTURE

As of 31 December 2023, the share capital was divided among 354,632,049 ordinary shares. As of the same date, the ownership structure, according to the results of the shareholders' register supplemented by communications received pursuant to Article 120 of Legislative Decree no. 58/1998 and other available information, was as follows:

SHARE PERFORMANCE

Piaggio & C. SpA has been listed on the Milan Stock Exchange since 11 July 2006. The Piaggio share, after outperforming the main benchmarks in the first part of the year, reaching an all-time high of Euro 4.1 in April, closed 2023 up 6.21% to Euro 2.978, the highest year-end level since 2006.

MAIN SHARE INDICATORS

	2023	2022
Official share price on the last day of trading (euro)	2.978	2.804
Number of shares (no.)	354,632,049	358,153,644
Treasury shares (no.)	426,161	3,521,595
Earnings per share (euro)
Basic earnings	0.257	0.239
Diluted earnings	0.257	0.239
Shareholders' equity per share (euro)	1.17	1.17
Market capitalisation (millions of Euros)4	1,056.1	1,004.3

GROUP RATING

	31/12/2023	31/12/2022
Standard & Poor's
Corporate	BB-	BB
Outlook	Positive	Stable

Moody's
Corporate	Ba3	Ba3
Outlook	Stable	Stable

MSCI ESG Research	AA	AA

DIVIDENDS

Since 2019, Piaggio has adopted a new policy to distribute dividends with the distribution of an interim dividend during the year (rather than a single distribution), to align with other international companies in the two-wheeler sector, also with the aim of optimising cash flow management, considering the seasonal nature of the business.

SUMMARY OF DIVIDENDS PAID BY PIAGGIO & C. S.P.A.

	DIVIDEND PAID IN THE YEAR
		TOTAL			PER SHARE
	2023	2022	2021	2023	2022	2021
	¤/000	¤/000	¤/000	¤	¤	¤
Of the previous year's result	35,461	23,203	9,285	0.100	0.065	0.026
Interim dividend for current year's result	44,295	30,200	30,354	0.125	0.085	0.085

^4. Source: Borsa Italiana.

SIGNIFICANT EVENTS DURING THE YEAR

18 January 2023 - Vespa 946 celebrated its anniversary with a special edition dedicated to the year of the rabbit. Produced in a limited and numbered series of 1,000 examples, it will be just the first step in a major project that will run over the next 12 years and will see the release of an annual edition inspired by that year's lunar horoscope animal.

10 March 2023 - Aprilia Racing is ready for the MotoGP World Championship 2023. As planned, the project continues its development: for the first time, four RS-GPs and four top riders will be on the track. After an excellent 2022 season, the project is operating at full throttle, aiming to be even more competitive, but above all to give thousands of Aprilia brand fans around the world the chance to enjoy the experience and dream.

27 May 2023 - To mark the Aprilia All Stars event held at the Misano circuit, Aprilia and the Piaggio Group donated ¤200,000 to the civil protection department, for communities in Emilia-Romagna affected by the floods.

8 June 2023 - RINA, a multinational audit, certification and engineering consultancy firm, and Aprilia Racing, signed a two-year sponsorship and technical partnership agreement to develop innovative technologies at the highest level of motorcycle sport.

14 June 2023 - The Group launched the new version of the Piaggio 1 E-Scooter with removable battery. In this new version, the Piaggio 1 combines the winning features of the most modern electric scooters with agility, lightness and practicality, including maintenance, without sacrificing performance comparable to that of scooters with engines. The battery is positioned under the seat, easily removable in seconds and transportable for convenient recharging at home or in the office.

21 June 2023 - Two timeless icons Vespa and Disney joined forces in a special project to celebrate 100 years of Disney, with Vespa paying tribute to this anniversary by launching a global collaboration between two unique brands, with a Vespa dedicated to Disney Mickey Mouse.

6 August 2023 - Aleix Espargarò rode an Aprilia to take victory in the MotoGP Grand Prix at Silverstone.

19 August 2023 - The Company announced the passing of Cavaliere del Lavoro Roberto Colaninno, Chairman and CEO of Piaggio & C. S.p.A..

1 September 2023 - The Board of Directors of Piaggio & C. S.p.A. met following the death of Chairman and Chief Executive Officer Roberto Colaninno, and defined the new corporate governance. Director Matteo Colaninno was appointed Executive Chairman with powers in substantial continuity with those previously attributed to him. Director Michele Colaninno, former chief executive of global strategy, product, marketing and innovation, was appointed Chief Executive Officer. The Board of Directors also co-opted Carlo Zanetti as a new non-executive member.

3 September 2023 - Aleix Espargarò and Maverick Viňales on Aprilia took first and second place in the MotoGP Grand Prix in Barcelona.

26 September 2023 - The rating agency Standard & Poor's Global Ratings announced a revision of its outlook of the Piaggio Group, raising it from 'stable' to 'positive'. The "BB-" rating was confirmed.

27 September 2023 - Piaggio & C S.p.A., successfully placed on the high-yield debenture loan a ¤250 million, 7-year, senior unsecured bond, with a fixed annual interest rate of 6.5% and an issue price of 100%.

5 October 2023 - Piaggio & C. S.p.a. redeemed the entire principal amount of the "¤250,000,000 3.625% Senior Notes due 2025" securities, still outstanding, according to the terms indicated in the Conditional Notice of Redemption.

19 October 2023 - The CEO of Piaggio & C. S.p.A., Michele Colaninno, and the Vice President of Foton Motor Group, Ma Rentao, signed a contract in Beijing for the joint development of a new range of electric-powered Porter.

The new electric Porter range will be produced at the Piaggio Group's production sites in Pontedera, Italy, and distributed in main European countries.

7 November 2023 - During the EICMA show in Milan, the Piaggio Group unveiled the new Aprilia RS 457, which meets the growing demand for easy but fun motorbikes with cutting-edge technology and styling. The Aprilia RS 457 is the result of a completely new design and one of its strong points is its light weight, boasting the best possible power-to-weight ratio for a bike that can be ridden with an A2 licence, its ease of handling and technological equipment.

15 November 2023 - Piaggio & C. S.p.A. signed with a syndicate of banks a four-year, Euro 200 million revolving loan facility, with an option to extend it for a further year at the Company's discretion. The agreement was signed with BNP Paribas-Banca Nazionale del Lavoro, Bank of America, HSBC, ING Bank, Intesa Sanpaolo and Unicredit (all as mandated lead arrangers and bookrunners). The operation is mainly aimed at extending the duration of the revolving loan facility of the same amount granted by the same syndicate of banks expiring in January 2024, and will improve the qualitative profile of the Piaggio Group's financial debt, further increasing its solid liquidity position, financial flexibility and average residual life.

30 November 2023 - Vespa and (RED) consolidated their long-standing partnership with the signing of a new agreement for the twoyear period 2024-2025. The partnership between Vespa and (RED), which began in 2016, has resulted in iconic products wearing red to support the cause; during the course of the partnership with (RED), Vespa customers around the world have played a key role in the fight against AIDS and all pandemics, raising over USD 1.5 million for the Global Fund to fight AIDS, tuberculosis and malaria.

4 December 2023 - The study commissioned by the Piaggio Group to Interbrand, a global leader in brand consultancy, confirmed the economic value of the Vespa brand at over ¤1 billion (1,079 million) and also demonstrated Vespa's global presence in terms of distinctiveness, design, lifestyle and fun. The study also confirmed that Vespa transcends the functional boundaries of two-wheeler mobility and represents, in the eyes of consumers globally, both an opportunity to express themselves within their community and an object of leisure and entertainment.

5 December 2023 - Aprilia Racing signed a three-year agreement with US-based Trackhouse, already a major player in the NASCAR motorsport championship. This partnership will see Aprilia Racing take charge of all technical aspects, from managing the bikes on the track to development during the season, through a dedicated structure that represents an important step forward in the MotoGP project.

15 December 2023- The Piaggio Group presented its Decarbonisation Plan, drawn up with the advice of the European Investment Bank (EIB), in line with the EIB PATH framework and with the support of the consultancy firm EY (contracted by the EIB), with which it undertakes to implement actions to reduce Scope 1, 2 and 3 emissions over two time horizons: 2030 and 2050. Always sensitive to environmental issues, over the years the Piaggio Group has implemented continuous initiatives to improve energy efficiency and reduce emissions in its plants and the vehicles it produces.

FINANCIAL POSITION AND PERFORMANCE OF THE GROUP

CONSOLIDATED INCOME STATEMENT

Consolidated income statement (reclassified)

		2023		2022		CHANGE
	IN MILLIONS OF EUROS	ACCOUNTING FOR A %	IN MILLIONS OF EUROS	ACCOUNTING FOR A %	IN MILLIONS OF EUROS	%
Net Revenues	1,994.6	100.0%	2,087.4	100.0%	(92.9)	-4.4%
Cost to sell5	1,419.9	71.2%	1,532.5	73.4%	(112.6)	-7.3%
Gross industrial margin5	574.7	28.8%	554.9	26.6%	19.7	3.6%
Operating expenses	394.0	19.8%	396.2	19.0%	(2.2)	-0.6%
Operating income	180.7	9.1%	158.7	7.6%	21.9	13.8%
Result of financial items	(45.3)	-2.3%	(31.5)	-1.5%	(13.8)	43.8%
Profit before tax	135.3	6.8%	127.2	6.1%	8.1	6.4%
Income taxes	44.3	2.2%	42.3	2.0%	1.9	4.6%
Net profit (loss) for the period	91.1	4.6%	84.9	4.1%	6.2	7.3%

Operating income	180.7	9.1%	158.7	7.6%	21.9	13.8%
Amortisation/depreciation and impairment costs	144.3	7.2%	139.4	6.7%	4.9	3.5%
EBITDA5	325.0	16.3%	298.1	14.3%	26.9	9.0%

Net revenues

	2023	2022	CHANGE
IN MILLIONS OF EUROS
EMEA and Americas	1,241.8	1,240.5	1.3
India	371.9	323.6	48.3
Asia Pacific 2W	381.0	523.4	(142.4)
Total	1,994.6	2,087.4	(92.9)

Two-wheelers	1,535.9	1,683.8	(147.9)
Commercial Vehicles	458.7	403.7	55.0
Total	1,994.6	2,087.4	(92.9)

In terms of consolidated sales, the Group ended 2023 with net revenues down by 4.4% compared to 2022.

The decrease was due to the Asia Pacific market (-27.2%; -23.8% at constant exchange rates). All other markets performed positively, with particularly strong growth in India (+14.9%; +19.9% at constant exchange rates).

With regard to the type of vehicles sold, the decrease in Two-Wheelers (-8.8%) was only partially offset by the growth in Commercial Vehicles (+13.6%). The share of Two-Wheelers out of total sales fell from 80.7% in 2022 to the present 77.0%; conversely, the share of Commercial Vehicles rose from 19.3% in 2022 to 23.0% today.

The Group's gross industrial margin increased from the previous year (¤+19.7 million) to 28.8% (26.6% in 2022). Amortisation/depreciation included in the gross industrial margin was equal to ¤38.9 million (¤40.0 million in 2022).

Operating expenses incurred in 2023 amounted to ¤394.0 million, slightly down from the previous year (¤396.2 million in 2022).

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

The changes in the income statement described above resulted in a consolidated EBITDA which increased over the previous year and was equal to ¤ 325.0 million (¤298.1 million in 2022). In relation to turnover, EBITDA was equal to 16.3%, (14.3% in 2022).

Operating income (EBIT) amounted to ¤180.7 million, also increasing compared to 2022 (¤+21.9 million); in relation to turnover, EBIT was equal to 9.1% (7.6% in 2022).

The result from financial activities worsened compared to the previous year by ¤13.8 million, recording Net Expenses of ¤45.3 million (¤31.5 million in 2022). This performance compared to the values for the corresponding period of the previous year was essentially due to the rise in interest rates on debt and the refinancing of the debenture loan, amplified by one-off costs related to the pre-redemption of outstanding securities, partially mitigated by the positive impact of currency management and the higher capitalisation of charges on fixed assets.

Taxes for the period amounted to ¤44.3 million, whereas they came to ¤42.3 million in 2022. In 2023, taxes as a percentage of pre-tax income amounted to 32.7% (33.3% in 2022).

Net profit amounted to ¤91.1 million (4.6% of turnover), up from the previous year's result of ¤84.9 million (4.1% of turnover).

Operating data

VEHICLES SOLD

	2023	2022	CHANGE
IN THOUSANDS OF UNITS
EMEA and Americas	262.1	279.7	(17.6)
India	151.7	148.8	2.9
Asia Pacific 2W	145.8	197.0	(51.3)
Total	559.5	625.5	(65.9)

Two-wheelers	436.3	516.2	(79.9)
Commercial Vehicles	123.3	109.3	14.0
Total	559.5	625.5	(65.9)

In 2023, the Piaggio Group sold 559,500 vehicles worldwide, down approximately 10.5% in terms of volume from the previous year, when 625,500 vehicles were sold. Only sales in India recorded a growth.

Sales of Commercial Vehicles increased (+12.8%), while sales of Two-Wheelers fell (-15.5%).

For a more detailed analysis of market trends and results, please refer to the specific sections.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION6

STATEMENT OF FINANCIAL POSITION	AS OF 31 DECEMBER 2023	AS OF 31 DECEMBER 2022	CHANGE
IN MILLIONS OF EUROS
Net working capital	(178.7)	(224.8)	46.1
Property, plant and equipment	287.5	291.4	(3.9)
Intangible assets	754.1	729.5	24.6
Rights of use	36.9	36.9	0.0
Financial assets	8.5	10.0	(1.5)
Provisions	(58.4)	(56.9)	(1.4)
Net capital employed	850.0	786.0	64.0
Net financial debt	434.0	368.2	65.8
Shareholders' equity	416.0	417.8	(1.8)
Sources of financing	850.0	786.0	64.0
Non-controlling interests	(0.2)	(0.2)	(0.0)

Net working capital as of 31 December 2023 was negative and amounted to ¤178.7 million, with approximately ¤46.1 million cash used during 2023.

Property, plant and equipment amounted to ¤287.5 million, a decrease of approximately ¤3.9 million compared to 31 December 2022. The combined effect of the general decrease from depreciation (approximately ¤52.4 million), the devaluation of the Indian rupee and Vietnamese dong against the euro (approximately ¤5.5 million) and disposals and write-downs (approximately ¤0.6 million), exceeded investments for the period (around ¤54.6 million).

Intangible assets amounted to a total of ¤754.1 million, up by approximately ¤24.6 million compared to 31 December 2022. This growth is mainly due to investments for the period, the value of which exceeded amortisation by approximately ¤27.3 million, which also offset the devaluation of the Indian rupee and Vietnamese dong against the euro (approximately ¤1.8 million) and disposals and write-downs totalling approximately ¤0.9 million.

Rights of use, equal to ¤36.9 million, remained stable compared to values at 31 December 2022.

Financial assets totalled ¤8.5 million, decreasing compared to figures for the previous year (¤10.0 million).

Provisions totalled ¤58.4 million, increasing compared to 31 December 2022 (¤56.9 million).

As fully described in the next section on the "Condensed Consolidated Statement of Cash Flows", net financial debt as of 31 December 2023 was equal to ¤434.0 million, compared to ¤368.2 million as of 31 December 2022, a growth of around ¤65.8 million.

Shareholders ' equity as of 31 December 2023 amounted to ¤416.0 million, a decrease of approximately ¤ 1.8 million compared to 31 December 2022.

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

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

The consolidated statement of cash flows prepared in accordance with international financial reporting standards (IFRS) is included in the "Consolidated Financial Statements and Notes as of 31 December 2023"; the following is a comment relating to the condensed statement shown.

CHANGE IN CONSOLIDATED NET DEBT	2023	2022	CHANGE
IN MILLIONS OF EUROS
Opening Consolidated Net Debt	(368.2)	(380.3)	12.1
Cash Flow from Operating Activities	227.5	207.3	20.2
(Increase)/Reduction in Working Capital	(46.1)	28.8	(74.9)
Net Investments	(162.9)	(151.7)	(11.2)
Other changes	8.6	(1.1)	9.7
Change in Shareholders' Equity	(92.9)	(71.2)	(21.7)
Total Change	(65.8)	12.1	(77.9)
Closing Consolidated Net Debt	(434.0)	(368.2)	(65.8)

During the first half of 2023 the Piaggio Group used financial resources amounting to ¤65.8 million.

Cash flow from operating activities, defined as net profit, minus non-monetary costs and income, came to ¤227.5 million.

Working capital absorbed cash of approximately ¤46.1 million; in detail:

the collection of trade receivables7 used financial flows for a total of ¤8.1 million;
stock management generated financial flows for a total of approximately ¤51.7 million;
supplier payments used financial flows of approximately ¤120.6 million;
the movement of other non-trade assets and liabilities had a positive impact on financial flows by approximately ¤14.7 million.

Investing activities absorbed financial resources totalling ¤162.9 million, of which ¤45.2 million in capitalised development costs and ¤117.7 million in property, plant and equipment and intangible assets.

Dividends paid during the year amounted to ¤79.8 million and included the interim dividend paid in September 2023.

Other changes mainly include other movements recorded in fixed assets and rights of use.

As a result of the above financial dynamics, which absorbed cash flow of ¤65.8 million, the consolidated net debt of the Piaggio Group amounted to ¤434.0 million.

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 APM, 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 measures used by the Group, insofar as they are not derived from applicable accounting standards, may not be uniform with those used by other entities; therefore, the values of the APMs calculated by the Group and included 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 the 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 payables and other non-current payables net of cash and cash equivalents and current financial receivables. It 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, it should be noted that net fixed assets are represented by:

Tangible fixed assets: which consist of property, plant, machinery and industrial equipment, net of accumulated depreciation;
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.
Rights of use: refer to the discounted value of lease payments due, as provided for by IFRS 16.
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: the net sum of trade receivables, Other current and non-current receivables, Inventories, Trade payables, Other current and non-current 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 noncurrent provisions.

Background The macroeconomic framework Market scenario The regulatory framework

BACKGROUND

MACROECONOMIC FRAMEWORK

Global economic growth slowed modestly to around 2.6% in 2023. The sharp rise in inflation triggered a rapid and aggressive response of monetary tightening policies, which significantly affected consumption, international trade and corporate and private investment. The global economy proved more resilient than expected at the beginning of the second half of the year. The energy price shock was handled effectively by the economies most affected and companies, by showing flexibility in adjusting production processes, managed to mitigate its effect. Growth was driven more by the recovery in the tertiary sector, while the geopolitical instability caused by the war in Ukraine and the Israeli-Palestinian conflict contributed strongly to increased uncertainty over global growth prospects.

Growth in the Eurozone was 0.5%, with a forecast of +0.6% at the end of 2024; having avoided recession, a period of stagnation is on the horizon. The manufacturing sector slowed down due to falling foreign demand, while restrictive financial conditions increasingly weighed on investment and consumer spending. The services sector has also weakened further. The boost to growth from the reopening following the pandemic is fading, and rising interest rates have adversely affected manufacturing, real estate and energy transition investments.

The Governing Council of the ECB expects interest rates to have reached levels that, if maintained long enough, will bring inflation back to target level; the energy and food components of inflation have fallen rapidly, given the high price level reached last year, while the core inflation components (non-energy industrial goods and services) only declined in the last quarter. The increased uncertainty and economic risks caused by the war in Ukraine and the conflicts in the Middle East have highlighted the vulnerability of energy markets and the risks related to the EU's main trading partners, in particular China. In this European framework, Germany's disappointing figures (-0.3%) and Spain's robust performance (+2.5%) stand out, while France (+0.9%) and Italy (+0.7%) posted moderate growth, just above the European average figure.

The US economy grew by 2.5% in 2023, with an assumed contraction close to +1.2% in 2024. According to the US Department of Commerce, consumer spending, coupled with government spending up 3.7% and private investment up 2.1%, contributed the most to the year-on-year performance above expectations. In addition, the cash reserves accumulated by households during the pandemic are far from depleted and the labour market is resisting the Fed's monetary tightening in terms of both wages and new jobs.

Estimates for Japan forecast a GDP growth of 1.8% for 2023, +1.0% for 2024. The Japanese economy suffered a drop in private consumption in the second half of the year due to a 2.4% year-on-year decline in real wages, although the consumer inflation rate fell to 2.8%. Although the geopolitical problems linked to the war caused an abnormal rise in the price curve, the Central Bank maintained an ultra-expansive monetary policy with the Yen particularly weak against the US Dollar, in order to stimulate growth. This, on the one hand, favoured exports, but at the same time made the import of energy commodities more expensive and reduced the purchasing power of households.

The Chinese economy grew by 5.2% in 2023, a performance that is expected to stabilise in the short term due to the gradual recovery of consumer confidence and government policy stimulus. The rise in the global cost of consumer goods and energy had a modest impact on inflation, thanks to the domestic price control mechanism and self-sufficiency in coal and food supplies; while most other central banks raised rates due to inflation, the Central Bank kept rates low in response to Chinese disinflation. Private investment, mainly in real estate, continued to contract. Foreign demand was not particularly robust and industry still suffered from excess inventories; signs of recovery are emerging from the three 'new economy' sectors such as batteries, electric vehicles and renewable energy.

In India, growth is estimated to reach 7.0% in 2023 from 6.7% in 2022, supported by household consumption, investments and strong activity in services. High-tech sectors are growing rapidly; service exports, historically concentrated in IT, have also included professional services (human resources, auditing, legal, research and development). Growth was also driven by falling energy and commodity prices, which allowed industries to increase margins on production, while the growth of the rupee/dollar was hindered by the US rate hike policy.

Italy's GDP increased by 0.7% compared to 2022, when it had grown by 3.7%. This reflects a decrease in added value in the agriculture, forestry and fishing sectors, and a contrasting increase in both industry and services. On the demand side, there was a negative contribution from the domestic component (before inventories) and a positive contribution from the net foreign component. Private consumption grew despite the rise in inflation to 5.7%, while gross fixed capital formation declined as a result of the restrictive monetary

policy. The issue of high public debt remains crucial. Expenditure pressures are increasing due to an ageing population, rising interest rates and the ecological and digital transition. The use of the National Recovery and Resilience Plan (NRRP) to support the country's growth will be crucial; a potential impact of +0.5% annual growth from investments is estimated from 2024 onwards.

MARKET SCENARIO

Two-wheelers

Available data on the market trend for two-wheelers (scooters and motorcycles) for monitored markets are provided below.

India, the most important two-wheeler market, recorded an increase in 2023, closing at just over 17.0 million vehicles sold, up 9.1% from 2022.

The People's Republic of China posted a significant drop (-5.0%), closing at just over 5 million units sold.

The Asian region, called Asean 5, showed an increase during 2023 (+4.1% compared to 2022), closing at almost 12.8 million units sold. This increase was driven by:

Indonesia, the largest market in this region (+19.4% over 2022 and sales of more than 6.2 million units);
Thailand (+4.8% over 2022 and just under 1.9 million units sold);
Malaysia (-20.4% compared to last year and over 540,000 units sold);
Vietnam (-15.1% compared to 2022 and over 2.5 million units sold);
the Philippines (-0.5% compared to 2022 and about 1.6 million units sold).

The other countries in the Asian area (Singapore, Hong Kong, South Korea, Japan, Taiwan, New Zealand and Australia) as a whole recorded an increase over the previous year, closing at more than 1.4 million units (+7.9%). In particular, the Taiwanese market reversed last year's negative trend, growing to around 820 thousand units sold (+20.4% year-on-year). By contrast, Japan remained stable at around 405 thousand units sold (-0.1% compared to 2022).

The North American market recorded an increase (+2.5%), compared to 2022, selling 618,219 vehicles in 2023.

Europe, the reference area for the Piaggio Group's operations, grew in 2023, recording an overall increase in sales of 3.5% compared to 2022 (+10.2% in the motorcycle segment and -3.3% in the scooter segment), closing at 1,566,203 units sold.

The scooter market

Europe

In Europe, the scooter market stood at 725,031 registered vehicles in 2023, a 3.3% decrease in sales compared to 2022. Of particular note is the drop in the electric scooter segment (-33.6% compared to 2022) to 85,840 units in 2023, which now accounts for 11.8% of the total market.

MARKET	VEHICLE REGISTRATIONS		CHANGE		CHANGE %
	2023	2022		OVERALL	≤ 50 CC	> 50 CC
Italy	186,868	160,369	26,499	16.5%	-18.6%	20.5%
of which electric	10,787	15,670	(4,883)	-31.2%	-28.7%	-32.5%
France	110,845	130,712	(19,867)	-15.2%	-22.6%	-7.1%
Spain	125,455	112,391	13,064	11.6%	-8.6%	14.1%
Holland	36,196	64,481	(28,285)	-43.9%	-45.3%	-10.8%
Germany	69,198	83,764	(14,566)	-17.4%	-40.4%	-5.1%
Greece	56,016	49,084	6,932	14.1%	-5.1%	16.0%
United Kingdom	28,792	32,177	(3,385)	-10.5%	-21.4%	-8.5%

Europe	725,031	749,452	(24,421)	-3.3%	-27.6%	8.7%
of which electric	85,840	129,277	(43,437)	-33.6%	-39.3%	-22.3%

North America

In 2023, the North American market showed a decrease of 7.9% and 28,653 units sold:

MARKET	VEHICLE REGISTRATIONS		CHANGE	CHANGE %
	2023	2022		OVERALL	≤ 50 CC	> 50 CC
USA	25,350	27,768	(2,418)	-8.7%	-9.6%	-8.2%
Canada	3,303	3,329	(26)	-0.8%	1.4%	-9.1%

North America	28,653	31,097	(2,444)	-7.9%	-7.2%	-8.3%

Asia

The largest scooter market in the Asean 5 region is Indonesia, which recorded an increase of 20.3% over 2022 with approximately 5.9 million units. The automatic scooter segment recorded growth in 2023 (+21.9% over 2022), approaching 5.6 million units sold. On the other hand, the gearbox (cub) segment showed a slight decrease in 2023 (-2.3%), closing at almost 317,000 units.