Interim / Quarterly Report • Nov 11, 2022
Interim / Quarterly Report
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Interim Report on Operations as of 30 September 2022
This report is available on the Internet at: www.piaggiogroup.com
Contacts
Head of Investor Relations Raffaele Lupotto Email: [email protected] Tel. +390587 272286 Fax +390587 276093
Piaggio & C. SpA Viale Rinaldo Piaggio 25 56025 Pontedera (PI)
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
| Interim Directors' Report 5 | |
|---|---|
| Introduction 6 | |
| Health emergency - COVID-19 7 | |
| Russia-Ukraine Crisis 7 | |
| Main economic, financial and management data 8 | |
| Group profile 10 | |
| Significant events in the first nine months of 2022 13 | |
| 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 23 Two-wheelers 23 Commercial Vehicles 26 |
|
| Events occurring after the end of the period 28 | |
| Operating outlook 29 | |
| Transactions with related parties 30 | |
| Economic glossary 31 | |
| Condensed Consolidated Interim Financial Statements as of 30 September 2022 33 | |
| Consolidated Income Statement 34 | |
| Consolidated Statement of Comprehensive Income 35 | |
| Consolidated Statement of Financial Position 36 | |
| Consolidated Statement of Cash Flows 38 | |
| Changes in Consolidated Shareholders' Equity 39 | |
| Notes to the Consolidated Financial Statements 40 |
Piaggio Group
Article 154 ter, paragraph 5 of the Consolidated Law on Finance, as amended by Legislative Decree no. 25/2016, no longer requires issuers to publish an interim report on operations for the first and third quarters of the financial year. This law gives CONSOB the possibility of requiring issuers, on the outcome of a specific impact analysis and through its own regulations, to publish interim financial information in addition to the annual report and halfyear financial report.
Considering the above, the Piaggio Group has decided to continue publishing its interim report on operations for the first and third quarters of each financial year on a voluntary basis, to guarantee continual, regular disclosure to the financial community.
At the end of the first nine months of 2022, the public health situation had generally improved, with various governments gradually withdrawing the extraordinary measures adopted in the last few years to counteract the spread of the virus.
With regard to the areas of greatest importance for the Group's activities, India completely lifted lockdown in May 2022.
The only area which is still a cause for concern is China, where, in the face of an increase in cases, government authorities have issued lockdown measures in some regions.
The Group is closely monitoring developments in the situation and will take all possible precautions to guarantee employees' health at its sites and its commitments made with the sales network and with customers.
The pandemic has made the need for safe personal transport increasingly important among the population to the detriment of public transport, which is seen as a potential vector of transmission.
The Group will continue to work to seize the opportunities presented by potential growth in demand, offering products that guarantee safe travel with low or no environmental impact.
The Piaggio Group continues to pay close attention to developments in the Russia – Ukraine conflict, which has begun to trigger rises in the costs of raw materials and energy with significant repercussions for the world economy and the upturn in inflation, to contain which the Western central banks have decided to raise interest rates. The extreme geographical diversification of the Group's sales and procurements means that its exposure in the area of the conflict is substantially non-existent. As regards the indirect effects of the war, the Group has been affected by the price rises in energy, especially in its European factories, and in raw materials, which have been mitigated in part by agreements with its suppliers.
Sales volumes (unit/000) 490.4 430.6 536.0 Investments in property, plant and equipment and intangible assets 101.4 102.2 154.1 Employees at the end of the period (number) 6,608 6,045 5,702
| EMEA and AMERICAS |
INDIA | ASIA PACIFIC 2W |
TOTAL | ||
|---|---|---|---|---|---|
| Sales volumes | First nine months of 2022 | 230.5 | 114.0 | 145.8 | 490.4 |
| (units/000) | First nine months of 2021 | 220.3 | 106.0 | 104.3 | 430.6 |
| Change | 10.2 | 8.0 | 41.5 | 59.8 | |
| Change % | 4.6% | 7.5% | 39.8% | 13.9% | |
| Turnover | First nine months of 2022 | 1,000.5 | 235.2 | 391.1 | 1,626.9 |
| (million Euros) | First nine months of 2021 | 899.1 | 167.9 | 252.2 | 1,319.2 |
| Change | 101.4 | 67.3 | 138.9 | 307.7 | |
| Change % | 11.3% | 40.1% | 55.1% | 23.3% | |
| Average number of staff (no.) |
First nine months of 2022 First nine months of 2021 Change Change % |
3,877.2 3,751.4 125.8 3.4% |
1,507.1 1,528.9 (21.8) -1.4% |
1,111.3 1,009.1 102.2 10.1% |
6,495.7 6,289.4 206.2 3.3% |
| Investment in property | First nine months of 2022 | 62.5 | 13.7 | 25.2 | 101.4 |
| Property, plant and equipment |
First nine months of 2021 | 81.6 | 9.5 | 11.2 | 102.2 |
| and intangible assets | Change | (19.1) | 4.2 | 14.0 | (0.8) |
| (million Euros) | Change % | -23.4% | 44.3% | 125.8% | -0.8% |
The Piaggio Group, based in Pontedera (Pisa, Italy) is Europe's largest manufacturer of twowheeler motor vehicles and an international leader in its field. Today the Piaggio Group has three distinct souls:
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.
| Board of Directors | ||||
|---|---|---|---|---|
| Chairman and Chief Executive Officer | Roberto Colaninno (1), (2) | |||
| Deputy Chairman | Matteo Colaninno | |||
| Directors | Michele Colaninno | |||
| Graziano Gianmichele Visentin (3), (4), (5), (6), (7) | ||||
| Rita Ciccone (4), (5), (6), (7) | ||||
| Patrizia Albano | ||||
| Federica Savasi | ||||
| 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 of financial reporting |
Alessandra Simonotto | |||
| Independent Auditors | Deloitte & Touche S.p.A. | |||
| Board Committees | Appointment Proposal Committee Remuneration Committee Internal Control 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
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.
20 January 2022 - The Piaggio Group presented the results of a new study that explores and analyses the value of the Vespa brand, identifying it as a key asset in its portfolio. The study conducted by Interbrand, a global leader in brand consultancy, indicates Vespa as "a unique and globally recognised brand, thanks to its perfect combination of design, lifestyle and Italian tradition" and attests to the economic value of the Vespa brand of €906 million.
7 February 2022 - The placement with European and Asian banks of a loan on the Schuldschein market for a total of €115 million was completed. The transaction launched in October 2021 for an initial amount of €50 million was increased in relation to the amount of orders collected. This was an important transaction for Piaggio on the Schuldschein market, both for the uptake and the qualifying structure of the 3, 5 and 7 year maturities. The financing will be used to refinance maturing debt by contributing to the diversification of lenders as well as strengthening the solid liquidity profile thanks to a longer average duration of debt.
10 March 2022 - The Piaggio Group and Santander Consumer Finance (Santander) signed a longterm global collaboration agreement, for the development of financial retail services to support the Piaggio Group's sales structure and distribution network on local markets.
18 March 2022 - On the occasion of the first MotoGP race in Indonesia, the Piaggio Group announced the development of a new plant in Jakarta, which will be built on an area of 55,000 square metres, and is expected to be inaugurated by the end of the year. At the same time, the Group presented the new Aprilia SR GT scooter to Asian markets at the Lombok circuit.
25 March 2022 - During celebrations to mark the 30th anniversary party of the National Territorial Emergency Services, the Piaggio MP3 Life Support three-wheeler scooter was presented to the Italian Red Cross (CRI). The Piaggio MP3 Life Support is already used by the national territorial emergency services in several countries, including the United Kingdom, France, Australia, and Israel which, with more than 650 vehicles available, has made this vehicle the leading light of its Emergency Response fleet.
3 April 2022 - Aprilia triumphed in the Argentine Grand Prix, with Aleix Espargarò taking the first victory in the MotoGP class. For the Noale manufacturer, one of the most successful brands in the history of motorcycling, this was the 295th victory in the World Championship, the first in the new four-stroke era of top two-wheeler competition after the countless successes in the 125 and 250cc classes.
20 April 2022 - Pre-booking of the exclusive Vespa Sprint designed by international pop star Justin Bieber was launched. The JUSTIN BIEBER X VESPA is available in 50, 125 and 150cc engine versions.
15 June 2022 - Michele Colaninno, Chief Executive of global strategy, product, marketing and innovation of the Piaggio Group, was appointed President of ACEM (Association des Constructeurs Européens de Motocycles), the European motorcycle industry based in Brussels, whose members today include all the world's leading motorcycle and scooter groups.
20 June 2022 - Piaggio signed an agreement with a syndicate of banks to extend and increase the revolving loan facility of €187.5 million, formalised in 2018. The amount was raised to €200 million and subscribed by Bank of America Merrill Lynch, Banca Nazionale del Lavoro, HSBC, Intesa Sanpaolo, ING Bank and Unicredit. The operation is mainly aimed at extending the revolving loan facility expiring in July 2022 by two and a half years, and will make it possible to improve the qualitative profile of the Piaggio Group's financial debt, increasing its financial flexibility and residual average life.
28 June 2022 - The new Piaggio MP3 models were presented to the international press in Paris. The vehicle, an icon of metropolitan mobility, has a new, lighter and higher performance range, and has been totally redesigned in every technical aspect. The scooters, equipped with the new radar systems developed by Piaggio Fast Forward to offer a safer riding experience, are fitted with the modern 400 and 530 hpe engines.
2 September 2022 - The new RSV4 XTrenta has been unveiled, the most extreme, highperformance and exclusive Aprilia RSV4 ever, born from Aprilia Racing engineering and MotoGP technology. The RSV4 XTrenta features refined aerodynamics and is the first motorbike in the world to be equipped with rear and under wings. It provides unprecedented performance for maximum fun on the track: 230 hp at only 166 kg, racing electronics and suspension, dedicated SC Project exhaust and a real racing bike set-up. Created to celebrate 30 years since Aprilia's first world championship, it is produced in a limited and numbered series of 100.
From 8 to 11 September 2022 – The Moto Guzzi World Days took place, bringing over 60,000 enthusiasts to Mandello del Lario. 'Guzzisti' came from all over the world for four days of parties, events, music and love for the Italian motorbike.
21 September 2022 – The world preview was held of the Moto Guzzi V100 Mandello Aviazione Navale, in the spectacular setting of the flight deck of the Cavour aircraft carrier. The model is a special limited-number edition of the latest motorcycle from Moto Guzzi, celebrating the manufacturer's special ties with the Italian Navy.
| First nine months of | First nine months of | Change | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| In millions of Euros |
Accounting for a % |
In millions of Euros |
Accounting for a % |
In millions of Euros |
% | |
| Consolidated income statement (reclassified) |
||||||
| Net revenues | 1,626.9 | 100.0% | 1,319.2 | 100.0% | 307.7 | 23.3% |
| Cost to sell | 1,197.9 | 73.6% | 953.7 | 72.3% | 244.3 | 25.6% |
| Gross industrial margin | 428.9 | 26.4% | 365.6 | 27.7% | 63.4 | 17.3% |
| Operating expenses | 294.1 | 18.1% | 268.1 | 20.3% | 26.0 | 9.7% |
| Operating income | 134.9 | 8.3% | 97.4 | 7.4% | 37.4 | 38.4% |
| Result of financial items | (20.6) | -1.3% | (14.3) | -1.1% | (6.3) | 44.0% |
| Profit before tax | 114.3 | 7.0% | 83.2 | 6.3% | 31.1 | 37.4% |
| Taxes | 43.4 | 2.7% | 31.6 | 2.4% | 11.8 | 37.4% |
| Net profit | 70.9 | 4.4% | 51.6 | 3.9% | 19.3 | 37.4% |
| Operating income Amortisation/depreciation and impairment |
134.9 | 8.3% | 97.4 | 7.4% | 37.4 | 38.4% |
| costs | 101.8 | 6.3% | 95.4 | 7.2% | 6.4 | 6.7% |
| EBITDA | 236.7 | 14.5% | 192.9 | 14.6% | 43.8 | 22.7% |
| First nine months of |
First nine months of |
||
|---|---|---|---|
| 2022 | 2021 | Change | |
| In millions of Euros | |||
| EMEA and Americas | 1,000.5 | 899.1 | 101.4 |
| India | 235.2 | 167.9 | 67.3 |
| Asia Pacific 2W | 391.1 | 252.2 | 138.9 |
| TOTAL NET REVENUES | 1,626.9 | 1,319.2 | 307.7 |
| Two-wheelers | 1,338.9 | 1,110.2 | 228.7 |
| Commercial Vehicles | 288.0 | 209.1 | 78.9 |
| TOTAL NET REVENUES | 1,626.9 | 1,319.2 | 307.7 |
In terms of consolidated turnover, the Group closed the first nine months of 2022 with higher net revenues compared to the same period of 2021 (+23.3%).
The growth occurred in all markets, EMEA and Americas (11.3%) - Asia Pacific (55.1%; +41.2% at constant exchange rates) - India (+40.1%; +30.1% at constant exchange rates).
As regards the product type, the growth concerned both two-wheeler vehicles (+20.6%) and commercial vehicles (+37.8%). As a result, the percentage of Commercial Vehicles accounting for overall turnover went up from 15.8% in the first nine months of 2021 to the current figure of
17.7%; vice versa, the percentage of two-wheeler vehicles fell from 84.2% in the first nine months of 2021 to the current figure of 82.3%.
The Group's gross industrial margin increased considerably compared to the corresponding period of the previous year (+17.3% in absolute terms), equal to 26.4% of net turnover (27.7% as of 30 September 2021). Amortisation/depreciation included in the gross industrial margin was equal to €29.5 million (€26.4 million in the first nine months of 2021).
Operating expenses incurred in the period went up compared to the same period of the previous financial year (+€26.0 million), amounting to €294.1 million. The increase is closely linked to the increase in turnover and vehicles sold.
The change in the income statement described above resulted in an increase in EBITDA (€236.7 million, €192.9 million in the first nine months of 2021). In relation to turnover, EBITDA was equal to 14.5% (14.6% in the first nine months of 2021).
Operating income (EBIT) amounted to €134.9 million, again a strong increase on the first nine months of 2021; in relation to turnover, EBIT was equal to 8.3% (7.4% in the first nine months of 2021).
Financing activities showed a net expense of €20.6 million (€14.3 million as of 30 September 2021). The deterioration compared to the first nine months of the previous year was essentially due to foreign-exchange losses and the expense from equity investments, partially mitigated by the greater capitalisation of interest linked to long-term investments.
Income taxes for the period are estimated to be €43.4 million, equivalent to 38% of profit before tax.
Net profit stood at €70.9 million (4.4% of turnover), up on the same period of the previous financial year, when it amounted to €51.6 million (3.9% of turnover).
| First nine months of | First nine months of | ||
|---|---|---|---|
| 2022 | 2021 | Change | |
| In thousands of units | |||
| EMEA and Americas | 230.5 | 220.3 | 10.2 |
| India | 114.0 | 106.0 | 8.0 |
| Asia Pacific 2W | 145.8 | 104.3 | 41.5 |
| TOTAL VEHICLES | 490.4 | 430.6 | 59.8 |
| Two-wheelers | 410.0 | 366.0 | 44.0 |
| Commercial Vehicles | 80.3 | 64.6 | 15.8 |
| TOTAL VEHICLES | 490.4 | 430.6 | 59.8 |
In the first nine months of 2022, the Piaggio Group sold 490,400 vehicles worldwide, a rise of 13.9% compared to the first nine months of the previous year, when 430,600 vehicles were sold. Sales increased in all geographic segments.
Regarding product type, sales of Two-Wheeler vehicles grew (+12.0%), as well as sales of Commercial Vehicles (+24.4%).
In the first nine months of 2022, the average headcount was up overall (+206.2 units). Only India recorded a reverse trend.
| Employee/staff numbers | First nine months of 2022 |
First nine months of 2021 |
Change | |||||
|---|---|---|---|---|---|---|---|---|
| EMEA and Americas | 3,877.2 | 3,751.4 | 125.8 | |||||
| of which Italy | 3,602.0 | 3,479.7 | 122.4 | |||||
| India | 1,507.1 | 1,528.9 | (21.8) | |||||
| Asia Pacific 2W | 1,111.3 | 1,009.1 | 102.2 | |||||
| Total | 6,495.7 | 6,289.4 | 206.2 |
As of 30 September 2022, Group employees totalled 6,608, up overall by 906 compared to 31 December 2021.
| As of 30 September | As of 31 December | As of 30 September | |
|---|---|---|---|
| Employee/staff numbers | 2022 | 2021 | 2021 |
| EMEA and Americas | 3,820 | 3,295 | 3,622 |
| of which Italy | 3,543 | 3,026 | 3,350 |
| India | 1,597 | 1,328 | 1,386 |
| Asia Pacific 2W | 1,191 | 1,079 | 1,037 |
| Total | 6,608 | 5,702 | 6,045 |
| As of 30 September | As of 31 December | ||
|---|---|---|---|
| 2022 | 2021 | Change | |
| In millions of Euros | |||
| Statement of financial | |||
| position | |||
| Net working capital | (227.4) | (196.0) | (31.4) |
| Property, plant and equipment | 293.1 | 283.0 | 10.1 |
| Intangible assets | 724.7 | 720.2 | 4.5 |
| Rights of use | 37.4 | 30.7 | 6.7 |
| Financial assets | 11.3 | 11.2 | 0.1 |
| Provisions | (54.7) | (64.8) | 10.1 |
| Net capital employed | 784.5 | 784.4 | 0.1 |
| Net financial debt | 369.9 | 380.3 | (10.4) |
| Shareholders' equity | 414.6 | 404.1 | 10.6 |
| Sources of financing | 784.5 | 784.4 | 0.1 |
| Non-controlling interests | (0.2) | (0.1) | (0.0) |
Net working capital as of 30 September 2022, which was negative by €227.4 million, generated cash for approximately €31.4 million in the first nine months of 2022.
Property, plant and equipment amounted to €293.1 million as of 30 September 2022, registering an increase of approximately €10.1 million compared to 31 December 2021. This increase is mainly due to the strengthening of the Indian rupee and Vietnamese dong against the euro (approximately €7.6 million), investments for the period, which exceeded depreciation by approximately €4.6 million, as well as disposals of €2.1 million.
Intangible assets totalled €724.7 million, up by approximately €4.5 million compared to 31 December 2021. This growth is mainly due to investments for the period, which exceeded amortisation by approximately €2.8 million and the strengthening of the Indian rupee and Vietnamese dong against the euro (approximately €2.2 million), as well as writedowns/disposals of €0.5 million.
Rights of use, equal to €37.4 million, increased by approximately €6.7 million compared to figures as of 31 December 2021.
Financial assets which totalled €11.3 million, increased slightly compared to figures for the previous year (€11.2 million).
Provisions totalled €54.7 million, down compared to 31 December 2021 (€64.8 million).
1 For a definition of individual items, see the "Economic Glossary".
As fully described in the next section on the "Consolidated Statement of Cash Flows", net financial debt as of 30 September 2022 was equal to €369.9 million, compared to €380.3 million as of 31 December 2021, down by approximately €10.4 million.
Net financial debt decreased by approximately €2.9 million compared to 30 September 2021.
Group shareholders' equity as of 30 September 2022 amounted to €414.6 million. The growth of approximately €10.6 million compared to 31 December 2021 was mitigated by €53.4 million from the payment of dividends.
The consolidated statement of cash flows prepared in accordance with the models provided by international financial reporting standards (IFRS) is shown in the "Condensed Consolidated Interim Financial Statements as of 30 September 2022"; the following is a comment relating to the summary statement shown.
| First nine months | First nine | ||
|---|---|---|---|
| of 2022 | months of 2021 | Change | |
| In millions of Euros | |||
| Change in Consolidated Net Debt | |||
| Opening Consolidated Net Debt | (380.3) | (423.6) | 43.3 |
| Cash Flow from Operating Activities | 155.9 | 140.0 | 15.9 |
| (Increase)/Reduction in Net Working Capital | 31.4 | 44.5 | (13.1) |
| Net Investments | (101.4) | (102.2) | 0.8 |
| Other changes | (15.0) | (0.8) | (14.3) |
| Change in Shareholders' Equity | (60.3) | (30.5) | (29.8) |
| Total Change | 10.4 | 50.9 | (40.4) |
| Closing Consolidated Net Debt | (369.9) | (372.7) | 2.9 |
During the first nine months of 2022, the Piaggio Group generated financial resources amounting to €10.4 million.
Cash flow from operating activities, defined as net profit, minus non-monetary costs and income, was equal to €155.9 million.
Net working capital generated cash of approximately €31.4 million; in detail:
Investing activities used financial resources for a total of €101.4 million. This change was generated by investments in capitalised development expenditure and in property, plant and equipment and intangible assets.
As a result of the above financial dynamics, which generated a cash flow of €10.4 million, the net debt of the Piaggio Group amounted to €369.9 million.
2 Net of customer advances.
In accordance with Consob Communication DEM/6064293 of 28 July 2006 as amended (Consob Communication 0092543 of 3 December 2015 that enacts ESMA/2015/1415 guidelines on alternative performance measures), Piaggio, in its Report on Operations, refers to some alternative performance measures, in addition to IFRS financial measures (Non-GAAP Measures).
These are presented in order to measure the trend of the Group's operations to a better extent and should not be considered as an alternative to IFRS measures.
In particular the following alternative performance measures have been used:
The Piaggio Group is comprised of and operates by geographic segments – EMEA and Americas, India and Asia Pacific 2W – to develop, manufacture and distribute two-wheeler and commercial vehicles.
Each Geographic Segment has production sites and a sales network dedicated to customers in that geographic segment. In particular:
For details of final results from each operating segment, reference is made to the Notes to the Consolidated Financial Statements.
The volumes and turnover in the three geographic segments, also by product type, are analysed below.
| First nine months of 2022 |
First nine months of 2021 |
Change % | Change | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Two-wheelers | Volumes Sell-in |
Turnover | Volumes Sell-in |
Turnover | Volumes | Turnover | Volumes | Turnover | ||
| (units/000) | (million Euros) |
(units/000) | (million Euros) |
|||||||
| EMEA and Americas | 220.2 | 897.3 | 206.7 | 807.9 | 6.5% | 11.1% | 13.5 | 89.3 | ||
| of which EMEA | 200.4 | 791.3 | 190.7 | 734.5 | 5.1% | 7.7% | 9.7 | 56.8 | ||
| (of which Italy) | 44.2 | 183.9 | 44.9 | 185.6 | -1.6% | -0.9% | (0.7) | (1.7) | ||
| of which America | 19.8 | 106.0 | 16.0 | 73.4 | 23.7% | 44.4% | 3.8 | 32.6 | ||
| India | 44.0 | 50.5 | 55.1 | 50.0 | -20.1% | 1.0% | (11.1) | 0.5 | ||
| Asia Pacific 2W | 145.8 | 391.1 | 104.3 | 252.2 | 39.8% | 55.1% | 41.5 | 138.9 | ||
| TOTAL | 410.0 | 1,338.9 | 366.0 | 1,110.2 | 12.0% | 20.6% | 44.0 | 228.7 | ||
| Scooters | 366.3 | 902.1 | 331.5 | 767.4 | 10.5% | 17.5% | 34.8 | 134.7 | ||
| Motorcycles | 43.7 | 318.7 | 34.5 | 235.7 | 26.7% | 35.2% | 9.2 | 83.0 | ||
| Spare Parts and Accessories |
117.2 | 105.8 | 10.8% | 11.4 | ||||||
| Other | 0.8 | 1.2 | -31.2% | (0.4) | ||||||
| TOTAL | 410.0 | 1,338.9 | 366.0 | 1,110.2 | 12.0% | 20.6% | 44.0 | 228.7 |
Two-wheeler vehicles can mainly be grouped into two product segments, scooters and motorcycles, in addition to the related spare parts and accessories business, the sale of engines to third parties, involvement in main two-wheeler sports championships and technical service.
The world two-wheeler market comprises two macro areas, which clearly differ in terms of characteristics and scale of demand: economically advanced countries (Europe, United States, Japan) and emerging nations (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.
World markets have generally remained below pre-Covid levels, although some showed growth.
India, the most important two-wheeler market, reported an increase in the first nine months of 2022, closing with sales of nearly 11.75 million vehicles, up by 8.1% compared to the first nine months of 2021.
The People's Republic of China recorded a decrease in the first 9 months of 2022 (-15.1%), closing at almost 4 million vehicles sold.
According to the data available so far for Asia, Indonesia - the main market in this area - shrunk by 3% in the first nine months of 2022, to around 3.65 million vehicles.
On the other hand, registrations in Vietnam increased (over 2.17 million units sold; +25.0% compared to the first nine months of 2021). The other countries in the Asian area (Singapore, Hong Kong, South Korea, Japan, Taiwan, New Zealand and Australia) overall recorded a decrease of approximately 15% compared to the corresponding period of 2021, closing with sales of around 949 thousand units. In the first 9 months of the year, the Japanese market grew slightly (-4.4%), selling around 303 thousand units.
The North American market recorded a decrease compared to the first nine months of 2021 (- 4.5%), selling 493,118 vehicles.
Europe, which is the reference area for the Piaggio Group's operations, reported a decrease in sales on the two-wheeler market (-0.2%) compared to the first nine months of 2021 (-2.4% for the motorcycle segment and +2.1% for the scooter segment). Over 50 cc scooters were up 4.3%, while 50 cc scooters were down 2.0%.
In the motorbike market, the 50cc segment rose by 11.2%, 51-125cc motorbikes rose by 0.2%, and medium-sized motorbikes (126-750cc) rose by 0.4%. Lastly, the over 750cc segment decreased by 7.4%.
In the first nine months of 2022, the Piaggio Group sold a total of 410,000 two-wheeler vehicles worldwide, accounting for a net turnover equal to approximately €1,338.9 million, including spare parts and accessories (€117.2 million, +10.8%).
As shown in the table, all markets showed positive trends except Italy (-1.6% volumes; -0.9% turnover) and India in terms of volumes (-20.1%). Sales in the Indian market were up 1.0% (-5.6% at constant exchange rates).
On the European market, the Piaggio Group held a 13.6% share in the first nine months of 2022, compared to 13.2% in the corresponding period of 2021, confirming its leadership position in the scooter segment (23.5% compared to 23.1% in the first nine months of 2021).
In Italy, the Piaggio Group had a 17.3% share (17.9% in the first nine months of 2021), which was higher for the scooter segment, at 27.1% (27.4% in the first nine months of 2021).
The Group's position on the North American scooter market is growing slightly, where it ended the period with a share of 34.9% (34.5% in the first nine months 2021).
3 Market shares for the first nine months of 2021 might differ from figures published last year, due to final vehicle registration data, which some countries publish with a few months' delay, being updated.
| First nine months of 2022 |
First nine months of 2021 |
Change % | Change | |||||
|---|---|---|---|---|---|---|---|---|
| Commercial Vehicles |
Volumes Sell-in (units/000) |
Turnover (million Euros) |
Volumes Sell-in (units/000) |
Turnover (million Euros) |
Volumes | Turnover | Volumes | Turnover |
| EMEA and Americas of which EMEA (of which Italy) of which America |
10.3 6.7 3.8 3.7 |
103.3 95.8 61.8 7.5 |
13.6 10.2 3.3 3.4 |
91.2 85.5 48.1 5.6 |
-24.1% -34.8% 15.0% 8.1% |
13.3% 12.0% 28.6% 32.3% |
(3.3) (3.6) 0.5 0.3 |
12.1 10.3 13.7 1.8 |
| India | 70.0 | 184.7 | 51.0 | 117.9 | 37.4% | 56.7% | 19.0 | 66.8 |
| TOTAL | 80.3 | 288.0 | 64.6 | 209.1 | 24.4% | 37.8% | 15.8 | 78.9 |
| Ape Porter Spare Parts and Accessories |
75.5 4.9 |
165.6 77.8 44.5 |
60.4 4.1 |
114.9 59.9 34.2 |
24.8% 18.1% |
44.1% 29.9% 30.1% |
15.0 0.7 |
50.7 17.9 10.3 |
| TOTAL | 80.3 | 288.0 | 64.6 | 209.1 | 24.4% | 37.8% | 15.8 | 78.9 |
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.
In the first nine months of 2022, the European light commercial vehicles market (vehicles with a maximum mass less than or equal to 3.5 tons), in which the Piaggio Group operates, recorded sales of 1,158,085 units, a decrease of 21.0% compared to the corresponding period of 2021 (data source ACEA). In detail, the trends of main European reference markets are as follows: France (-22.4%), Great Britain (-20.1%), Germany (-18.9%), Italy (-12.4%) and Spain (-27.7%).
Sales on the Indian three-wheeler market, where Piaggio Vehicles Private Limited, a subsidiary of Piaggio & C. S.p.A. operates, went down from 180,859 units in the first nine months of 2021 to 270,224 in the same period of 2022, registering a 49.4% increase.
On this market, the growth was due particularly to the passenger vehicles segment, which recorded a marked increase in units (+70.3%) from 119,692 in the first nine months of 2021 to 203,889 units in the first nine months of 2022. The cargo segment however reported an increase (+8.4%) from 61,167 units in the first nine months of 2021 to 66,335 units in the same period of 2022.
During the first nine months of 2022, the Commercial Vehicles business generated a turnover of approximately €288.0 million, up by 37.8% compared to the same period of the previous year.
In terms of turnover, all markets showed positive trends. With regard to volumes, on the other hand, the positive performance of the Italian (+15.0%), American (+8.1%) and Indian (+37.4%) markets was partially offset by the decline in EMEA (-34.8%).
With regard to the Indian region, turnover was up by 56.7% (+45.3% at constant exchange rates).
The Indian affiliate Piaggio Vehicles Private Limited (PVPL) sold 52,318 three-wheelers on the Indian market (37,992 in the first nine months of 2021).
The same affiliate also exported 17,687 three-wheeler vehicles (12,964 in the same period of 2021).
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 market share of 19.4% (21.0% in the first nine months of 2021). Detailed analysis of the market shows that Piaggio lost its leadership position in the goods transport segment (cargo segment) with a share of 33.0% (35.7% in the first nine months of 2021). In the Passenger segment, however, it increased its share to 14.9% (13.5% in the first nine months of 2021).
4 Market shares for the first nine months of 2021 might differ from figures published last year, due to final vehicle registration data, which some countries publish with a few months' delay, being updated.
5 October 2022 – The new version of the Vespa GTS is unveiled. The queen of the Vespa family becomes even more elegant and is packed with electronics and technology that enhance its comfort and safety. New brakes and suspension, new instrumentation, keyless systems and a new design that enhances its unique and timeless style. Four versions: GTS, GTS Super, GTS Supersport and GTS Supertech, powered by two state-of-the-art liquid-cooled, electronically injected engines: the 125 i-get and the 300 hpe with over 23 hp, the most powerful in Vespa's history, strictly made in Italy.
The first nine months of 2022 was characterised by complex macroeconomic conditions, stemming essentially from developments in the Covid 19 pandemic and the Russia-Ukraine war. The conflict has created international geopolitical tensions, driving an increase in transportation costs, raw material prices and an exponential rise in energy costs.
Nevertheless, thanks to its unique brand portfolio, in the fourth quarter of 2022 Piaggio will proceed along its growth path with a constant focus on efficient and flexible management of its business and financial structure, confirming its planned investments in new products and new facilities and strengthening its commitment to ESG issues.
Net sales, costs, payables and receivables as of 30 September 2022 involving parent, subsidiary and associate companies relate 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".
It should be noted that the Chairman and Chief Executive Officer Roberto Colaninno holds 250,000 shares of the Parent Company Piaggio & C. S.p.A.
Net working capital: defined as the net sum of: Trade receivables, Other current and noncurrent 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.
Property, plant and equipment: consist of property, plant, machinery and industrial equipment, net of accumulated depreciation, investment property and assets held for sale.
Intangible assets: 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.
Provisions: consist of retirement funds and employee benefits, other long-term provisions and the current portion of other long-term provisions.
Gross industrial margin: defined as the difference between Revenues and the corresponding Cost to sell of the period.
Cost to sell: include the cost for materials (direct and consumables), accessory purchase costs (transport of incoming material, customs, movements and warehousing), employee costs for direct and indirect manpower and related expenses, work carried out by third parties, energy costs, depreciation of property, plant, equipment and industrial equipment, external maintenance and cleaning costs net of sundry cost recovery recharged to suppliers.
Operating expenses: consist of employee costs, costs for services, leases and rentals, and additional operational expenditure net of operating income not included in the gross industrial margin. Operating expenses also include amortisation and depreciation not included in the calculation of the gross industrial margin.
Consolidated 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.
Net capital employed: determined as the algebraic sum of Net fixed assets, Net working capital and Provisions.
Piaggio Group
| First nine months of 2022 |
First nine months of 2021 |
||||
|---|---|---|---|---|---|
| of which | of which | ||||
| related | related | ||||
| Total | parties | Total | parties | ||
| In thousands of Euros | Notes | ||||
| Net revenues | 4 | 1,626,876 | 1,319,224 | 9 | |
| Cost for materials | 5 | 1,056,872 | 34,707 | 834,308 | 24,800 |
| Cost for services and leases and rentals | 6 | 227,319 | 1,008 | 196,676 | 1,142 |
| Employee costs Depreciation and impairment costs of |
7 | 196,911 | 181,981 | ||
| property, plant and equipment Amortisation and impairment costs of |
8 | 37,975 | 33,502 | ||
| intangible assets | 8 | 56,482 | 55,971 | ||
| Depreciation of rights of use | 8 | 7,362 | 5,969 | ||
| Other operating income Net reversals (impairment) of trade and |
9 | 110,625 | 401 | 107,770 | 369 |
| other receivables | 10 | (1,705) | (1,467) | ||
| Other operating costs | 11 | 18,003 | 6 | 19,676 | 18 |
| Operating income | 134,872 | 97,444 | |||
| Income/(loss) from investments | 12 | (162) | (162) | 609 | 630 |
| Financial income | 13 | 930 | 664 | ||
| Borrowing costs | 13 | 18,910 | 60 | 19,283 | 80 |
| Net exchange gains/(losses) | 13 | (2,417) | 3,737 | ||
| Profit before tax | 114,313 | 83,171 | |||
| Taxes for the period | 14 | 43,439 | 31,605 | ||
| Profit from continuing operations | 70,874 | 51,566 | |||
| Assets held for sale: | |||||
| Profits or losses arising from assets held for | |||||
| sale | 15 | ||||
| Net Profit (loss) for the period | 70,874 | 51,566 | |||
| Attributable to: | |||||
| Owners of the Parent | 70,874 | 51,566 | |||
| Non-controlling interests | 0 | 0 | |||
| Earnings per share (figures in €) | 16 | 0.199 | 0.144 | ||
| Diluted earnings per share (figures in €) |
16 | 0.199 | 0.144 |
| First nine months of |
First nine months of |
||
|---|---|---|---|
| In thousands of Euros | Notes | 2022 | 2021 |
| Net Profit (loss) for the period (A) | 70,874 | 51,566 | |
| Items that will not be reclassified in the income statement |
|||
| Remeasurements of defined benefit plans | 40 | 4,321 | (10) |
| Total | 4,321 | (10) | |
| Items that may be reclassified in the income statement | |||
| Profit (loss) deriving from the translation of financial statements | |||
| of foreign companies denominated in foreign currency | 40 | (1,339) | 4,421 |
| Share of Other Comprehensive Income of | |||
| subsidiaries/associates valued with the equity method | 40 | 455 | 787 |
| Total profits (losses) on cash flow hedges | 40 | (4,966) | 3,972 |
| Total | (5,850) | 9,180 | |
| Other comprehensive income (B)* | (1,529) | 9,170 | |
| Total Profit (loss) for the period (A + B) | 69,345 | 60,736 | |
| * Other Profits (and losses) take account of relative tax effects. | |||
| Attributable to: | |||
| Owners of the Parent | 69,374 | 60,739 | |
| Non-controlling interests | (29) | (3) | |
| As of 30 September 2022 |
As of 31 December 2021 |
||||
|---|---|---|---|---|---|
| of which related |
of which related |
||||
| Total | parties | Total | parties | ||
| In thousands of Euros ASSETS |
Notes | ||||
| Non-current assets | |||||
| Intangible assets | 17 | 724,712 | 720,209 | ||
| Property, plant and equipment | 18 | 293,139 | 283,041 | ||
| Rights of use | 19 | 37,383 | 30,727 | ||
| Investment Property | 20 | ||||
| Investments | 35 | 11,340 | 11,047 | ||
| Other financial assets | 36 | 16 | 16 | ||
| Tax receivables | 25 | 11,044 | 8,904 | ||
| Deferred tax assets | 21 | 49,865 | 72,479 | ||
| Trade receivables | 23 | ||||
| Other receivables | 24 | 21,988 | 23,628 | 67 | |
| Total non-current assets | 1,149,487 | 1,150,051 | |||
| Assets held for sale | 27 | ||||
| Current assets | |||||
| Trade receivables | 23 | 107,585 | 477 | 71,225 | 610 |
| Other receivables | 24 | 55,323 | 19,966 | 57,273 | 20,018 |
| Tax receivables | 25 | 44,386 | 17,542 | ||
| Inventories | 22 | 375,141 | 278,538 | ||
| Other financial assets | 36 | 176 | |||
| Cash and cash equivalents | 37 | 292,083 | 260,868 | ||
| Total current assets | 874,518 | 685,622 | |||
| Total assets | 2,024,005 | 1,835,673 |
| As of 30 September 2022 |
As of 31 December 2021 |
||||
|---|---|---|---|---|---|
| of which | |||||
| related | of which | ||||
| Total | parties | Total | related parties | ||
| In thousands of Euros SHAREHOLDERS' EQUITY AND |
Notes | ||||
| LIABILITIES | |||||
| Shareholders' equity | |||||
| Share capital and reserves attributable to | |||||
| the owners of the Parent | 39 | 414,823 | 404,235 | ||
| Share capital and reserves attributable to | |||||
| non-controlling interests | 39 | (178) | (149) | ||
| Total shareholders' equity | 414,645 | 404,086 | |||
| Non-current liabilities | |||||
| Financial liabilities | 38 | 522,202 | 532,213 | ||
| Financial liabilities for rights of use | 38 | 20,364 | 1,262 | 14,536 | 2,220 |
| Trade payables | 28 | ||||
| Other long-term provisions | 29 | 13,736 | 17,364 | ||
| Deferred tax liabilities | 30 | 5,504 | 7,495 | ||
| Retirement funds and employee benefits | 31 | 25,490 | 33,070 | ||
| Tax payables | 32 | 1,387 | |||
| Other payables | 33 | 13,428 | 12,760 | ||
| Total non-current liabilities | 600,724 | 618,825 | |||
| Current liabilities | |||||
| Financial liabilities | 38 | 111,025 | 86,840 | ||
| Financial liabilities for rights of use | 38 | 8,374 | 1,363 | 7,601 | 1,319 |
| Trade payables | 28 | 750,911 | 19,606 | 623,564 | 16,829 |
| Tax payables | 32 | 38,304 | 16,976 | ||
| Other payables | 33 | 84,562 | 14,969 | 63,425 | 15,037 |
| Current portion of other long-term | |||||
| provisions | 29 | 15,460 | 14,356 | ||
| Total current liabilities | 1,008,636 | 812,762 | |||
| Total Shareholders' Equity and | |||||
| Liabilities | 2,024,005 | 1,835,673 |
This statement shows the factors behind changes in cash and cash equivalents, net of short-term bank overdrafts, as required by IAS 7.
| First nine months of 2022 |
First nine months of 2021 |
||||
|---|---|---|---|---|---|
| of which | of which | ||||
| related | related | ||||
| Total | parties | Total | parties | ||
| In thousands of Euros | Notes | ||||
| Operating activities | |||||
| Net Profit (loss) for the period | 70,874 | 51,566 | |||
| Taxes for the period | 14 | 43,439 | 31,605 | ||
| Depreciation of property, plant and equipment | 8 | 37,975 | 33,502 | ||
| Amortisation of intangible assets | 8 | 56,057 | 55,971 | ||
| Depreciation of rights of use | 8 | 7,362 | 5,969 | ||
| Provisions for risks and retirement funds and employee benefits | 15,653 | 18,065 | |||
| Write-downs/(Reinstatements) | 2,124 | 1,469 | |||
| Losses/(Gains) on the disposal of property, plant and equipment | (164) | (116) | |||
| Financial income | 13 | (930) | (664) | ||
| Dividend income | 0 | 0 | |||
| Borrowing costs | 13 | 18,910 | 19,283 | ||
| Income from public grants | (5,400) | (2,333) | |||
| Portion of earnings of associates | 12 | 162 | (630) | ||
| Change in working capital: | |||||
| (Increase)/Decrease in trade receivables | 23 | (36,715) | 133 | (45,156) | (30) |
| (Increase)/Decrease in other receivables | 24 | 2,246 | 119 | (1,562) | (244) |
| (Increase)/Decrease in inventories | 22 | (96,603) | (78,063) | ||
| Increase/(Decrease) in trade payables | 28 | 127,347 | 2,777 | 137,933 | 15,561 |
| Increase/(Decrease) in other payables | 33 | 21,805 | (68) | 16,233 | 380 |
| Increase/(Decrease) in provisions for risks | 29 | (12,404) | (11,821) | ||
| Increase/(Decrease) in retirement funds and employee benefits | 31 | (8,639) | (8,432) | ||
| Other changes | (28,447) | (1,248) | |||
| Cash generated from operating activities | 214,652 | 221,571 | |||
| Interest paid | (13,749) | (15,185) | |||
| Taxes paid | (17,986) | (16,251) | |||
| Cash flow from operating activities (A) | 182,917 | 190,135 | |||
| Investment activities | |||||
| Investment in property, plant and equipment | 18 | (42,606) | (33,235) | ||
| Sale price, or repayment value, of property, plant and equipment | 2,301 | 5,686 | |||
| Investment in intangible assets | 17 | (58,832) | (69,009) | ||
| Sale price, or repayment value, of intangible assets | 24 | 62 | |||
| Public grants collected | 958 | 1,062 | |||
| Increases in rights of use | (12,732) | (4,731) | |||
| Collected interests | 688 | 470 | |||
| Cash flow from investment activities (B) | (110,199) | (99,695) | |||
| Financing activities | |||||
| Purchase of treasury shares | 39 | (5,383) | (53) | ||
| Outflow for dividends paid | 39 | (53,403) | (39,639) | ||
| Loans received | 38 | 86,273 | 90,589 | ||
| Outflow for repayment of loans | 38 | (74,115) | (170,377) | ||
| Lease payments for rights of use | 38 | (7,100) | (7,300) | ||
| Cash flow from financing activities (C) | (53,728) | (126,780) | |||
| Increase/(Decrease) in cash and cash equivalents (A+B+C) | 18,990 | (36,340) | |||
| Opening balance | 260,856 | 228,906 | |||
| Exchange differences | 11,325 | 6,552 | |||
| Closing balance | 291,171 | 199,118 |
The data for the first nine months of 2021 have been restated with respect to what was published last year in order to facilitate comparability with the data for the first nine months of 2022.
| Transactions with shareholders | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| In thousands of Euros | Notes | As of 1 January 2022 |
Earnings for the period |
Other comprehensive income |
Total profit (loss) for the period 40 |
Allocation of profits 39 |
Distribution of dividends 39 |
Purchase of treasury shares 39 |
Interim dividend 39 |
As of 30 September 2022 |
| Share capital | 207,614 | 207,614 | ||||||||
| Share premium reserve | 7,171 | 7,171 | ||||||||
| Legal reserve | 26,052 | 2,902 | 28,954 | |||||||
| Reserve for measurement of financial instruments |
6,083 | (4,966) | (4,966) | 1,117 | ||||||
| IAS transition reserve | (15,525) | (15,525) | ||||||||
| Group translation reserve | (31,026) | (855) | (855) | (31,881) | ||||||
| Treasury shares | (2,019) | (5,383) | (7,402) | |||||||
| Earnings reserve | 176,185 | 4,321 | 4,321 | 8,589 | (4,994) | 184,101 | ||||
| Earnings for the period | 29,700 | 70,874 | 70,874 | (11,491) | (18,209) | (30,200) | 40,674 | |||
| Consolidated Group shareholders' equity Share capital and reserves attributable to |
404,235 | 70,874 | (1,500) | 69,374 | 0 | (23,203) | (5,383) (30,200) | 414,823 | ||
| non-controlling interests TOTAL SHAREHOLDERS' EQUITY |
(149) 404,086 |
70,874 | (29) (1,529) |
(29) 69,345 |
0 | (23,203) | (5,383) (30,200) | (178) 414,645 |
Movements from 1 January 2021 / 30 September 2021
| Transactions with shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| In thousands of Euros | As of 1 January 2021 Notes |
Earnings for the period |
Other comprehensive income |
Total profit (loss) for the period 40 |
Allocation of profits 39 |
Distribution of dividends 39 |
Purchase of treasury shares 39 |
Interim dividend 39 |
As of 30 September 2021 |
| Share capital | 207,614 | 207,614 | |||||||
| Share premium reserve | 7,171 | 7,171 | |||||||
| Legal reserve | 24,215 | 1,837 | 26,052 | ||||||
| Reserve for measurement of financial instruments |
281 | 3,972 | 3,972 | 4,253 | |||||
| IAS transition reserve | (15,525) | (15,525) | |||||||
| Group translation reserve | (38,459) | 5,211 | 5,211 | (33,248) | |||||
| Treasury shares | (1,966) | (53) | (2,019) | ||||||
| Earnings reserve | 170,720 | (10) | (10) | 12,703 | (5,717) | 177,696 | |||
| Earnings for the period | 18,108 | 51,566 | 51,566 | (14,540) | (3,568) | (30,354) | 21,212 | ||
| Consolidated Group shareholders' equity Share capital and reserves attributable to non-controlling interests |
372,159 (147) |
51,566 | 9,173 (3) |
60,739 (3) |
0 | (9,285) | (53) (30,354) | 393,206 (150) |
|
| TOTAL SHAREHOLDERS' EQUITY |
372,012 | 51,566 | 9,170 | 60,736 | 0 | (9,285) | (53) (30,354) | 393,056 |
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.
The scope of consolidation is unchanged from the consolidated financial statements as of 31 December 2021 and 30 September 2021.
These Condensed Interim Financial Statements have been prepared in compliance with international accounting standards (IAS/IFRS), in force, issued by the International Accounting Standards Board and approved by the European Union, and in compliance with provisions established by Consob in Communication no. 6064293 of 28 July 2006. The interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"), previously the Standing Interpretations Committee ("SIC"), were also taken into account.
During the drafting of these Condensed Consolidated Interim Financial statements, prepared in compliance with IAS 34 - Interim Financial Reporting, the same accounting standards adopted in the drafting of the Consolidated Financial Statements as of 31 December 2021 were applied, with the exception of the paragraph "New accounting standards, amendments and interpretations applied as from 1 January 2022".
The information provided in the Interim Report should be read together with the Consolidated Financial Statements as of 31 December 2021, prepared according to IFRS.
The preparation of the interim financial statements requires management to make estimates and assumptions which have an impact on the values of revenues, costs, consolidated balance sheet assets and liabilities and on the information regarding contingent assets and liabilities at the reporting date. If these management estimates and assumptions should, in future, differ from the actual situation, they will be changed 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 Consolidated Financial Statements as of 31 December 2021.
It should finally be noted that some assessment processes, in particular the most complex ones such as establishing any impairment of fixed assets, are generally undertaken in full only when preparing the annual 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.
In May 2020, the IASB published some limited-scope amendments to IFRS 3, IAS 16 and IAS 37 and some annual revisions of IFRS 1, IFRS 9, IAS 41 and IFRS 16.
In March 2021, the IASB published amendments to IFRS 16 that move the final date from 30 June 2021 to 30 June 2022, for a practical expedient for measuring leases where renegotiated lease payments have been made as a result of COVID-19. The lessee may opt to recognise the concession in the accounts as a variable lease payment in the period when a lower payment is recognised.
The application of the new amendments did not have a significant impact on values or on the financial statements.
In May 2017, the IASB issued the new standard IFRS 17 "Insurance Contracts". The new standard replacing the IFRS 4 applies from 1 January 2023 but early application is permitted, only for entities that apply IFRS 9 – Financial Instruments and IFRS 15 – Revenue from Contracts with Customers.
In February 2021, the IASB published narrow-scope amendments to IAS 1, Practice Statement 2 and IAS 8. The amendments aim to improve disclosure of accounting standards and to help users of the financial statements distinguish between changes in accounting estimates and changes in
accounting standards. The amendments will be applicable effective 1 January 2023, but early application is permitted.
At the date of these Financial Statements, competent bodies of the European Union had not completed the approval process necessary for the application of the following accounting standards and amendments:
The Group will adopt these new standards, amendments and interpretations, based on the application date indicated, and will evaluate potential impact, when the standards, amendments and interpretations are endorsed by the European Union.
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 | Average exchange | Spot exchange | Average exchange |
|---|---|---|---|---|
| rate 30 September | rate first nine | rate 31 December | rate first nine | |
| 2022 | months of 2022 | 2021 | months of 2021 | |
| US Dollar | 0.9748 | 1.06384 | 1.1326 | 1.19622 |
| Pounds Sterling | 0.88300 | 0.847159 | 0.84028 | 0.863634 |
| Indian Rupee | 79.4250 | 82.29833 | 84.2292 | 88.04203 |
| Singapore Dollars | 1.4001 | 1.46306 | 1.5279 | 1.60196 |
| Chinese Yuan | 6.9368 | 7.01931 | 7.1947 | 7.73756 |
| Croatian Kuna | 7.5240 | 7.53346 | 7.5156 | 7.53206 |
| Japanese Yen | 141.01 | 135.96793 | 130.38 | 129.83203 |
| Vietnamese Dong | 23,246.00 | 24,570.25389 | 25,137.39 | 26,712.09531 |
| Indonesian Rupiah | 14,863.26 | 15,539.05295 | 16,166.73 | 17,122.72813 |
| Brazilian Real | 5.2584 | 5.46308 | 6.3101 | 6.37645 |
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 Chairman and Chief Executive Officer for business management purposes.
Each Geographic Segment has production sites and a sales network dedicated to customers in that geographic segment. In particular:
Central structures and development activities currently dealt with by EMEA and Americas, are handled by individual segments.
| EMEA and Americas | India | Asia Pacific 2W | Total | ||
|---|---|---|---|---|---|
| Sales volumes (unit/000) | First nine months of 2022 | 230.5 | 114.0 | 145.8 | 490.4 |
| First nine months of 2021 | 220.3 | 106.0 | 104.3 | 430.6 | |
| Change | 10.2 | 8.0 | 41.5 | 59.8 | |
| Change % | 4.6% | 7.5% | 39.8% | 13.9% | |
| Net turnover (millions of | First nine months of 2022 | 1,000.5 | 235.2 | 391.1 | 1,626.9 |
| Euros) | First nine months of 2021 | 899.1 | 167.9 | 252.2 | 1,319.2 |
| Change | 101.4 | 67.3 | 138.9 | 307.7 | |
| Change % | 11.3% | 40.1% | 55.1% | 23.3% | |
| Gross margin (millions of | First nine months of 2022 | 251.8 | 29.8 | 147.3 | 428.9 |
| Euros) | First nine months of 2021 | 251.3 | 27.3 | 87.0 | 365.6 |
| Change | 0.6 | 2.6 | 60.2 | 63.4 | |
| Change % | 0.2% | 9.5% | 69.2% | 17.3% | |
| EBITDA (millions of | First nine months of 2022 | 236.7 | |||
| Euros) | First nine months of 2021 | 192.9 | |||
| Change | 43.8 | ||||
| Change % | 22.7% | ||||
| EBIT (millions of Euros) | First nine months of 2022 | ||||
| First nine months of 2021 | 134.9 | ||||
| Change | 97.4 | ||||
| 37.4 | |||||
| Change % | 38.4% | ||||
| Net profit (millions of | First nine months of 2022 | 70.9 | |||
| Euros) | First nine months of 2021 | 51.6 | |||
| Change | 19.3 | ||||
| Change % | 37.4% |
Revenues are shown net of premiums recognised to customers (dealers).
This item does not include transport costs, which are recharged to customers (€/000 34,817) and invoiced advertising cost recoveries (€/000 4,421), 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.
The breakdown of revenues by geographic segment is shown in the following table:
| First nine months of 2022 First nine months of 2021 | Changes | |||||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % Amount | % | ||
| In thousands of Euros | ||||||
| EMEA and Americas | 1,000,543 | 61.5 | 899,115 | 68.2 | 101,428 | 11.3 |
| India | 235,206 | 14.5 | 167,867 | 12.7 | 67,339 | 40.1 |
| Asia Pacific 2W | 391,127 | 24.0 | 252,242 | 19.1 | 138,885 | 55.1 |
| Total | 1,626,876 | 100.0 | 1,319,224 | 100.0 307,652 | 23.3 |
In the first nine months of 2022 net sales revenues increased by 23.3% 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.
The increase in material costs compared to the first nine months of 2021 (+26.7%) is due to the growth in production volumes and the cost of raw materials. The item includes €/000 34,707 (€/000 24,800 in the same period of 2021) for purchases of scooters from the Chinese affiliate Zongshen Piaggio Foshan Motorcycle Co., that are sold on European and Asian markets.
This item increased by 15.6% compared to the same period last year.
The increase is mainly related to rising energy and transportation costs that have impacted the entire world economy.
Employee costs include €/000 647 relating to costs for redundancy plans mainly for the Pontedera and Noale production sites.
| First nine months of 2022 |
First nine months of 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Salaries and wages | 150,960 | 138,918 | 12,042 |
| Social security contributions | 37,640 | 35,623 | 2,017 |
| Termination benefits | 6,389 | 5,763 | 626 |
| Other costs | 1,922 | 1,677 | 245 |
| Total | 196,911 | 181,981 | 14,930 |
Below is a breakdown of the headcount by actual number and average number:
| Average number | ||||
|---|---|---|---|---|
| First nine months of 2022 | First nine months of 2021 | Change | ||
| Level | ||||
| Senior management | 110.2 | 108.9 | 1.3 | |
| Middle management | 672.7 | 670.1 | 2.6 | |
| White collars | 1,606.9 | 1,621.2 | (14.3) | |
| Blue collars | 4,105.9 | 3,889.2 | 216.7 | |
| Total | 6,495.7 | 6,289.4 | 206.2 |
Average employee numbers were affected by seasonal workers in the summer (on fixed-term employment contracts).
In fact, the Group uses fixed-term employment contracts to handle typical peaks in demand in the summer months.
| Number as of | |||
|---|---|---|---|
| 30 September 2022 | 31 December 2021 | Change | |
| Senior management | 113 | 108 | 5 |
| Middle management | 669 | 673 | (4) |
| White collars | 1,630 | 1,600 | 30 |
| Blue collars | 4,196 | 3,321 | 875 |
| Total | 6,608 | 5,702 | 906 |
| EMEA and Americas | 3,820 | 3,295 | 525 |
| India | 1,597 | 1,328 | 269 |
| Asia Pacific 2W | 1,191 | 1,079 | 112 |
| Total | 6,608 | 5,702 | 906 |
This item consists of:
| First nine months of 2022 |
First nine months of 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Total amortisation of intangible assets | |||
| and impairment costs | 56,482 | 55,971 | 511 |
| Total depreciation of plant, property and | |||
| equipment and impairment costs | 37,975 | 33,502 | 4,473 |
| Depreciation of rights of use | 7,362 | 5,969 | 1,393 |
| Total | 101,819 | 95,442 | 6,377 |
This item, consisting prevalently of increases in fixed assets for internal work and of recoveries of costs re-invoiced to customers, shows an increase of 2.6% compared to the first nine months of 2021.
Revenues include €/000 2,790 in subsidies from the Indian government given to the affiliate Piaggio Vehicles Private Limited for investments made in 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.
This item, mainly comprising the impairment of trade receivables in current assets, was essentially in line with the first nine months of 2021.
The saving of €/000 1,673 was mainly driven by lower provisions for risks.
Net expenses from investments are broken down as follows:
€/000 180 relative to the portion of income attributable to the Group from the Zongshen Piaggio Foshan Motorcycle Co. Ltd. joint venture, valued at equity;
€/000 18 relative to the portion of income attributable to the Group of the associated company Pontech valued at equity.
Financial income (borrowing costs) for the first nine months of 2022 showed costs of €/000 20,397. The deterioration compared to the corresponding period of the previous year was essentially due to foreign-exchange losses, partially mitigated by the greater capitalisation of interest linked to long-term investments.
Income tax for the period, determined based on IAS 34, is estimated by applying a rate of 38% to profit before tax, equivalent to the best estimate of the weighted average rate predicted for the financial year.
At the end of the reporting period, there were no gains or losses from assets held for disposal or sale.
Earnings per share are calculated as follows:
| First nine months of 2022 |
First nine months of 2021 |
||
|---|---|---|---|
| Net profit | €/000 | 70,874 | 51,566 |
| Earnings attributable to ordinary shares | €/000 | 70,874 | 51,566 |
| Average number of ordinary shares in circulation | 356,329,951 | 357,116,306 | |
| Earnings per ordinary share | € | 0.199 | 0.144 |
| Adjusted average number of ordinary shares | 356,329,951 | 357,116,306 | |
| Diluted earnings per ordinary share | € | 0.199 | 0.144 |
Intangible assets went up overall by €/000 4,503 due to investments for the period which were only partially balanced by amortisation and exchange rate differences.
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.
In the first nine months of 2022, borrowing costs for €/000 1,355 were capitalised.
The table below shows the breakdown of intangible assets as of 30 September 2022, as well as changes during the period.
| In thousands | Situation at |
Situation at |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| of Euros | 31.12.2021 | Movements for the period | 30.09.2022 | ||||||
| Net value | Investments | Transitions in the period |
Amortisation | Disposals | Write-downs | Exchange differences Other |
Net value | ||
| Development costs |
103,262 | 29,631 | 0 | (23,039) | 0 | (425) | 2,100 | 0 | 111,529 |
| In service Assets under development |
80,153 | 6,692 | 12,550 | (23,039) | 0 | 0 | 1,635 | 0 | 77,991 |
| and advances | 23,109 | 22,939 | (12,550) | 0 | 0 | (425) | 465 | 0 | 33,538 |
| Patent rights | 140,229 | 28,899 | 0 | (32,875) | (24) | 0 | 42 | 3 | 136,274 |
| In service Assets under development |
103,303 | 7,536 | 13,388 | (32,875) | (24) | 0 | 28 | 0 | 91,356 |
| and advances | 36,926 | 21,363 | (13,388) | 0 | 0 | 0 | 14 | 3 | 44,918 |
| Trademarks In service |
29,478 29,478 |
0 0 |
0 0 |
(50) (50) |
0 0 |
0 0 |
0 0 |
0 0 |
29,428 29,428 |
| 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 | 300 | 302 | 0 | (93) | 0 | 0 | 32 | 0 | 541 |
| In service Assets under development |
247 | 93 | 14 | (93) | 0 | 0 | 17 | 0 | 278 |
| and advances | 53 | 209 | (14) | 0 | 0 | 0 | 15 | 0 | 263 |
| Total | 720,209 | 58,832 | 0 | (56,057) | (24) | (425) | 2,174 | 3 | 724,712 |
| In service Assets under development |
660,121 | 14,321 | 25,952 | (56,057) | (24) | 0 | 1,680 | 0 | 645,993 |
| and advances | 60,088 | 44,511 | (25,952) | 0 | 0 | (425) | 494 | 3 | 78,719 |
Property, plant and equipment mainly refer to Group production facilities in Pontedera (Pisa), Noale (Venice), Mandello del Lario (Lecco), Baramati (India) and Vinh Phuc (Vietnam).
The increases mainly relate to the construction of a new CKD vehicle assembly factory5 in Indonesia and moulds for new vehicles launched during the period.
Borrowing 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. In the first nine months of 2022, borrowing costs for €/000 571 were capitalised.
The table below shows the breakdown of property, plant and equipment as of 30 September 2022, as well as changes during the period.
| In thousands Euros |
Situation at of 31.12.2021 |
Movements for the period | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net value | Investments | Transitions in the period |
Depreciation | Disposals | Write-downs | Exchange differences |
Other | Net value | ||||
| Land | 31,550 | 5,841 | 0 | 0 | 0 | 0 | 605 | 0 | 37,996 | |||
| In service | 31,550 | 5,841 | 0 | 0 | 0 | 0 | 605 | 0 | 37,996 | |||
| Buildings | 85,932 | 7,072 | 0 | (3,805) | 0 | 0 | 1,863 | 0 | 91,062 | |||
| In service Assets under construction |
80,984 and |
157 | 3,595 | (3,805) | 0 | 0 | 1,542 | 0 | 82,473 | |||
| advances Plant |
4,948 and |
6,915 | (3,595) | 0 | 0 | 0 | 321 | 0 | 8,589 | |||
| machinery | 111,891 | 13,377 | 0 | (17,279) | (71) | 0 | 4,766 | (3) | 112,681 | |||
| In service Assets under construction |
103,772 and |
986 | 4,617 | (17,279) | 0 | 0 | 3,986 | 0 | 96,082 | |||
| advances | 8,119 | 12,391 | (4,617) | 0 | (71) | 0 | 780 | (3) | 16,599 | |||
| Equipment | 41,828 | 8,544 | 0 | (10,959) | 0 | 0 | 23 | 0 | 39,436 | |||
| In service Assets under construction |
34,435 and |
5,049 | 5,588 | (10,959) | 0 | 0 | 0 | 0 | 34,113 | |||
| advances | 7,393 | 3,495 | (5,588) | 0 | 0 | 0 | 23 | 0 | 5,323 | |||
| Other assets | 11,840 | 7,772 | 0 | (5,932) | (2,066) | 0 | 350 | 0 | 11,964 | |||
| In service Assets under construction |
9,500 and |
7,475 | 367 | (5,932) | (2) | 0 | 346 | 0 | 11,754 | |||
| advances | 2,340 | 297 | (367) | 0 | (2,064) | 0 | 4 | 0 | 210 | |||
| Total | 283,041 | 42,606 | 0 | (37,975) | (2,137) | 0 | 7,607 | (3) | 293,139 | |||
| In service Assets under construction advances |
260,241 and 22,800 |
19,508 23,098 |
14,167 (14,167) |
(37,975) 0 |
(2) (2,135) |
0 0 |
6,479 1,128 |
0 (3) |
262,418 30,721 |
5 Completely Knocked Down (CKD) is an acronym that means separate components used to assemble a complete vehicle.
This item includes the discounted value of operating leases, finance leases and advance lease payments for the use of real estate.
| Plant and | Other | |||||
|---|---|---|---|---|---|---|
| In thousands of Euros | Land | Buildings | machinery | Equipment | assets | Total |
| Amount as of 01 01 2022 | 7,212 | 13,211 | 8,131 | 2,173 | 30,727 | |
| Increases | 77 | 8,641 | 2,000 | 2,014 | 12,732 | |
| Depreciation | (146) | (4,820) | (642) | (214) | (1,540) | (7,362) |
| Decreases | (240) | (96) | (336) | |||
| Exchange differences | 538 | 1,077 | 7 | 1,622 | ||
| Total movements for the period |
469 | 4,658 | (642) | 1,786 | 385 | 6,656 |
| Amount as of 30 09 2022 | 7,681 | 17,869 | 7,489 | 1,786 | 2,558 | 37,383 |
Future lease rental commitments are detailed in note 38.
As of 30 September 2022 no investment property was held.
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:
In view of these considerations, and with a prudential approach, it was decided to not wholly recognise the tax benefits arising from losses that can be carried over and from temporary differences.
This item comprises:
| As of 30 September 2022 |
As of 31 December 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Raw materials and consumables | 206,924 | 167,349 | 39,575 |
| Provision for write-down | (13,966) | (12,425) | (1,541) |
| Net value | 192,958 | 154,924 | 38,034 |
| Work in progress and semi-finished products | 19,977 | 22,934 | (2,957) |
| Provision for write-down | (852) | (852) | 0 |
| Net value | 19,125 | 22,082 | (2,957) |
| Finished products and goods | 181,639 | 118,555 | 63,084 |
| Provision for write-down | (19,540) | (18,067) | (1,473) |
| Net value | 162,099 | 100,488 | 61,611 |
| Advances | 959 | 1,044 | (85) |
| Total | 375,141 | 278,538 | 96,603 |
Against an international background featuring critical issues in the procurement of some components and in transport logistics, the Group has decided to protect itself by increasing the level of inventories, in order to guarantee production and sales in the coming months.
As of 30 September 2022 and 31 December 2021, no trade receivables were recognised as noncurrent assets. Current trade receivables are broken down as follows:
| As of 30 September 2022 |
As of 31 December 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Trade receivables due from customers | 107,108 | 70,615 | 36,493 |
| Trade receivables due from JV | 456 | 590 | (134) |
| Trade receivables due from parent companies | 12 | 20 | (8) |
| Trade receivables due from associates | 9 | 9 | |
| Total | 107,585 | 71,225 | 36,360 |
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 30,521.
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 30 September 2022, trade receivables still due sold without recourse totalled €/000 213,717. Of these amounts, Piaggio received payment prior to natural expiry of €/000 204,451.
As of 30 September 2022, advance payments received from factoring companies and banks, for trade receivables sold with recourse totalled €/000 19,000 with a counter entry recorded in current liabilities.
They consist of:
| As of 30 September 2022 | As of 31 December 2021 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Current | Non current |
Total | Current | Non current |
Total | Current | Non current |
Total | ||
| In thousands of Euros | ||||||||||
| Receivables due from parent | 19,390 | 19,390 | 19,098 | 19,098 | 292 | 0 | 292 | |||
| companies | ||||||||||
| Receivables due from joint | 552 | 552 | 900 | 900 | (348) | 0 | (348) | |||
| ventures | ||||||||||
| Receivables due from affiliated | 24 | 24 | 20 | 67 | 87 | 4 | (67) | (63) | ||
| companies | ||||||||||
| Accrued income | 1,335 | 1,335 | 2,267 | 2,267 | (932) | 0 | (932) | |||
| Deferred charges | 12,282 | 12,599 | 24,881 | 8,014 | 14,948 | 22,962 | 4,268 | (2,349) | 1,919 | |
| Advance payments to suppliers | 1,212 | 1 | 1,213 | 1,850 | 1 | 1,851 | (638) | 0 | (638) | |
| Advances to employees | 478 | 25 | 503 | 688 | 26 | 714 | (210) | (1) | (211) | |
| Fair value of hedging derivatives | 3,875 | 558 | 4,433 | 8,326 | 8,326 | (4,451) | 558 | (3,893) | ||
| Security deposits | 360 | 1,164 | 1,524 | 278 | 1,122 | 1,400 | 82 | 42 | 124 | |
| Receivables due from others | 15,815 | 7,641 | 23,456 | 15,832 | 7,464 | 23,296 | (17) | 177 | 160 | |
| Total | 55,323 | 21,988 | 77,311 | 57,273 | 23,628 | 80,901 | (1,950) | (1,640) | (3,590) |
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 derivatives refers to the fair value transactions to hedge the exchange risk on forecast transactions accounted for according to the cash flow hedge principle (€/000 3,596 current portion) and to the fair value of an Interest Rate Swap designated as a hedge and accounted for according to the cash flow hedge principle (€/000 279 current portion and €/000 558 non-current portion).
Receivables due from others include €/000 3,095 (€/000 5,419 as of 31 December 2021) 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. During the first nine months of 2022, the Indian company collected receivables related to these subsidies worth €/000 5,382.
Tax receivables consist of:
| As of 30 September 2022 | As of 31 December 2021 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Current | Non current |
Total | Current | Non current |
Total | Current | Non current |
Total | ||
| In thousands of Euros | ||||||||||
| VAT | 29,739 | 819 | 30,558 | 11,619 | 543 | 12,162 | 18,120 | 276 | 18,396 | |
| Income tax | 3,228 | 9,311 | 12,539 | 2,114 | 7,333 | 9,447 | 1,114 | 1,978 | 3,092 | |
| Others | 11,419 | 914 | 12,333 | 3,809 | 1,028 | 4,837 | 7,610 | (114) | 7,496 | |
| Total | 44,386 | 11,044 | 55,430 | 17,542 | 8,904 | 26,446 | 26,844 | 2,140 | 28,984 |
As of 30 September 2022, there were no receivables due after 5 years.
As of 30 September 2022, there were no assets held for sale.
As of 30 September 2022 and as of 31 December 2021 no trade payables were recorded under non-current liabilities. Trade payables recorded as current liabilities are broken down as follows:
As of 30 September
| 2022 | December 2021 | Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Amounts due to suppliers | 731,305 | 606,735 | 124,570 |
| Trade payables to JV | 19,547 | 16,622 | 2,925 |
| Trade payables due to associates | 16 | 117 | (101) |
| Trade payables due to parent companies | 43 | 90 | (47) |
| Total | 750,911 | 623,564 | 127,347 |
| Of which indirect factoring | 292,464 | 258,667 | 33,797 |
To facilitate credit conditions for its suppliers, the Group has always used some indirect factoring agreements, mainly supply chain financing and reverse factoring agreements. These operations
55
As of 31
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 30 September 2022, the value of trade payables covered by reverse factoring or supply chain financing agreements was equal to €/000 292,464 (€/000 258,667 as of 31 December 2021).
The breakdown and changes in provisions for risks during the period were as follows:
| Balance as of 31 December 2021 |
Alloca tions |
Uses | Exchange differences |
Balance as of 30 September 2022 |
|
|---|---|---|---|---|---|
| In thousands of Euros | |||||
| Provision for product warranties | 20,373 | 9,058 | (7,615) | 472 | 22,288 |
| Provision for contractual risks | 8,043 | (4,123) | 143 | 4,063 | |
| Risk provision for legal disputes | 1,971 | 13 | 1,984 | ||
| Other provisions for risks and charges | 1,333 | 169 | (666) | 25 | 861 |
| Total | 31,720 | 9,227 | (12,404) | 653 | 29,196 |
The breakdown between the current and non-current portion of provisions for risks is as follows:
| As of 30 September 2022 | As of 31 December 2021 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non | Non | Non | ||||||||
| Current | current | Total | Current | current | Total | Current | current | Total | ||
| In thousands of Euros | ||||||||||
| Provision for product warranties Provision for contractual |
13,688 | 8,600 | 22,288 | 12,416 | 7,957 | 20,373 | 1,272 | 643 | 1,915 | |
| risks | 1,063 | 3,000 | 4,063 | 920 | 7,123 | 8,043 | 143 | (4,123) | (3,980) | |
| Provision for legal disputes Other provisions for risks |
264 | 1,720 | 1,984 | 250 | 1,721 | 1,971 | 14 | (1) | 13 | |
| and charges | 445 | 416 | 861 | 770 | 563 | 1,333 | (325) | (147) | (472) | |
| Total | 15,460 | 13,736 | 29,196 | 14,356 | 17,364 | 31,720 | 1,104 | (3,628) | (2,524) |
The product warranty provision 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 9,058 and was used for €/000 7,615 in relation to charges incurred during the period.
The provision for contractual risks refers to charges that may arise from supply contracts.
The provision for litigation concerns labour litigation and other legal proceedings.
Other risk provisions include management's best estimate of probable liabilities at the reporting date.
Deferred tax liabilities amount to €/000 5,504 compared to €/000 7,495 as of 31 December 2021.
| As of 30 September 2022 |
As of 31 December 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Retirement funds | 848 | 811 | 37 |
| Termination benefits provision | 24,642 | 32,259 | (7,617) |
| Total | 25,490 | 33,070 | (7,580) |
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 30 September 2022 would have been lower by €/000 1,327.
As of 30 September 2022 As of 31 December 2021 Change
current Total Current Non-
Due for income tax 17,620 17,620 9,011 1,387 10,398 8,609 (1,387) 7,222 Due for non-income tax 115 115 154 154 (39) 0 (39)
Tax payables are broken down as follows:
Current Non-
In thousands of Euros
Tax payables for:
| 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.
current Total
current Total Current Non-
| As of 30 September 2022 | As of 31 December 2021 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non | Non | Non | ||||||||
| Current | current | Total | Current | current | Total | Current | current | Total | ||
| In thousands of Euros | ||||||||||
| To employees | 30,399 | 576 | 30,975 | 19,056 | 543 | 19,599 | 11,343 | 33 | 11,376 | |
| Guarantee deposits | 4,382 | 4,382 | 4,048 | 4,048 | - | 334 | 334 | |||
| Accrued expenses | 8,113 | 8,113 | 4,559 | 4,559 | 3,554 | - | 3,554 | |||
| Deferred income | 6,301 | 8,400 | 14,701 | 3,798 | 8,065 | 11,863 | 2,503 | 335 | 2,838 | |
| Amounts due to social | ||||||||||
| security institutions | 6,123 | 6,123 | 8,718 | 8,718 | (2,595) | - | (2,595) | |||
| Fair value of derivatives | 2,908 | 2,908 | 217 | 34 | 251 | 2,691 | (34) | 2,657 | ||
| To JV | - | - | 0 | - | 0 | |||||
| To associates | 70 | 70 | 118 | 118 | (48) | - | (48) | |||
| To parent companies | 14,899 | 14,899 | 14,919 | 14,919 | (20) | - | (20) | |||
| Others | 15,749 | 70 | 15,819 | 12,040 | 70 | 12,110 | 3,709 | - | 3,709 | |
| Total | 84,562 | 13,428 | 97,990 | 63,425 | 12,760 | 76,185 | 21,137 | 668 | 21,805 |
Amounts due to employees include the amount for holidays accrued but not taken of €/000 12,310 and other payments to be made for €/000 18,665.
Payables to parent companies consist of payables to Immsi referring to expenses related to the consolidated tax convention.
The item Fair Value of hedging derivatives comprises the fair value of hedging transactions on the exchange risk on forecast transactions recognised on a cash flow hedge basis.
The item Accrued liabilities includes €/000 71 for interest on hedging derivatives and associated hedged items measured at fair value.
Deferred income includes €/000 6,388 (€/000 5,993 as of 31 December 2021) 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 24 "Other Receivables".
The Group has loans due after 5 years, which are referred to in detail in Note 38 "Financial Liabilities".
With the exception of the above payables, no other long-term payables due after five years exist.
The investments heading comprises:
| As of 30 September 2022 |
As of 31 December 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Interests in joint ventures | 11,125 | 10,850 | 275 |
| Investments in associates | 215 | 197 | 18 |
| Total | 11,340 | 11,047 | 293 |
The value of investments in joint ventures and associates was adjusted during the period to the corresponding value of shareholders' equity.
This item comprises:
| As of 30 September 2022 | As of 31 December 2021 | Change | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non | Non | Non | ||||||||
| Current | Current | Total | Current | Current | Total | Current | Current | Total | ||
| In thousands of Euros | ||||||||||
| Fair Value of hedging | ||||||||||
| derivatives | 0 | 176 | 176 | (176) | 0 | (176) | ||||
| Investments in other | ||||||||||
| companies | 16 | 16 | 16 | 16 | 0 | 0 | 0 | |||
| Total | 0 | 16 | 16 | 176 | 16 | 192 | (176) | 0 | (176) |
| As of 30 September 2022 |
As of 31 December 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Bank and postal deposits | 292,025 | 260,829 | 31,196 |
| Cash on hand | 58 | 39 | 19 |
| Total | 292,083 | 260,868 | 31,215 |
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 30 September 2022 |
As of 30 September 2021 |
Change | |
|---|---|---|---|
| In thousands of Euros | |||
| Liquidity | 292,083 | 199,118 | 92,965 |
| Current account overdrafts | (912) | (912) | |
| Closing balance | 291,171 | 199,118 | 92,053 |
€/000 661,965
The Group' s total debt increased by €/000 20,775 during the first nine months of 2022. Net of the change in financial liabilities for rights of use and the fair value measurement of financial derivatives to hedge foreign exchange risk and interest rate risk and the adjustment of relative hedged items, as of 30 September 2022 total financial debt of the Group had increased by €/000 14,174.
| Financial liabilities as of 30 September 2022 |
Financial liabilities as of 31 December 2021 |
Change | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Non current |
Total | Current | Non current |
Total | Current | Non current |
Total | |
| In thousands of Euros | |||||||||
| Financial liabilities | 111,025 | 522,202 | 633,227 | 86,840 | 532,213 | 619,053 | 24,185 | (10,011) | 14,174 |
| Gross financial debt | 111,025 | 522,202 | 633,227 | 86,840 | 532,213 | 619,053 | 24,185 | (10,011) | 14,174 |
| Fair value adjustment Financial liabilities for rights of |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| use | 8,374 | 20,364 | 28,738 | 7,601 | 14,536 | 22,137 | 773 | 5,828 | 6,601 |
| Total | 119,399 542,566 661,965 | 94,441 546,749 641,190 | 24,958 | (4,183) | 20,775 |
Net financial debt of the Group amounted to €/000 369,882 as of 30 September 2022 compared to €/000 380,322 as of 31 December 2021.
The composition of Net financial debt as of 30 September 2022, prepared in accordance with paragraph 175 et seq. of ESMA Recommendations 2021/32/382/1138, is set out below.
| As of 30 | As of 31 | |||
|---|---|---|---|---|
| September | December | |||
| 2022 | 2021 | Change | ||
| In thousands of Euros | ||||
| A Cash and cash equivalents | 292,083 | 260,868 | 31,215 | |
| B Cash equivalents | 0 | |||
| C Other current financial assets | 0 | |||
| D Liquidity (A + B + C) | 292,083 | 260,868 | 31,215 | |
| Current financial debt (including debt instruments, | ||||
| but excluding the current portion of non-current | ||||
| E | financial debt) | (50,579) | (37,861) | (12,718) |
| Payables due to banks | (23,134) | (20,376) | (2,758) | |
| Debenture loan | 0 | |||
| Amounts due to factoring companies | (19,000) | (9,813) | (9,187) | |
| Financial liabilities for rights of use | (8,374) | (7,601) | (773) | |
| .of which finance leases | (1,211) | (1,201) | (10) | |
| .of which operating leases | (7,163) | (6,400) | (763) | |
| Current portion of payables due to other lenders | (71) | (71) | 0 | |
| F | Current portion of non-current financial debt | (68,820) | (56,580) | (12,240) |
| G Current financial debt (E + F) | (119,399) | (94,441) | (24,958) | |
| H Net current financial debt (G - D) | 172,684 | 166,427 | 6,257 | |
| Non-current financial debt (excluding current portion | ||||
| I | and debt instruments) | (297,676) | (302,599) | 4,923 |
| Medium-/long-term bank loans | (277,100) | (287,816) | 10,716 | |
| Financial liabilities for rights of use | (20,364) | (14,536) | (5,828) | |
| .of which finance leases | (3,564) | (4,479) | 915 | |
| .of which operating leases | (16,800) | (10,057) | (6,743) | |
| Amounts due to other lenders | (212) | (247) | 35 | |
| J | Debt instruments | (244,890) | (244,150) | (740) |
| K Trade payables and other non-current payables | 0 | |||
| L | Non-current financial debt (I + J + K) | (542,566) | (546,749) | 4,183 |
| M Total financial debt (H + L) | (369,882) | (380,322) | 10,440 |
As regards indirect factoring, please refer to the comment in Note 28 "Trade payables".
6 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 at 30 September 2022, and relative accruals.
The table below presents the changes during the period.
| Cash flows | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance as of |
Movements Repayments | New issues Reclassifications | Exchange delta |
Other changes |
Balance as of |
||||
| In thousands of Euros | 31.12.2021 | 30.09.2022 | |||||||
| A | Cash and cash equivalents | 260,868 | 19,890 | 11,325 | 292,083 | ||||
| B | Cash equivalents | 0 | |||||||
| C | Other current financial assets | 0 | |||||||
| D | Liquidity (A + B + C) | 260,868 | 19,890 | 0 | 0 | 0 | 11,325 | 0 | 292,083 |
| Current financial debt (including debt | |||||||||
| E | instruments, but excluding the current portion of non-current financial debt) |
(37,861) | 0 | 30,483 | (34,685) | (6,742) | (932) | (842) | (50,579) |
| Current account overdrafts | (12) | 12 | (912) | (912) | |||||
| Current account payables | (20,364) | 13,523 | (14,773) | (608) | (22,222) | ||||
| Total current bank loans | (20,376) | 0 | 13,535 | (15,685) | 0 | (608) | 0 | (23,134) | |
| Debenture loan | 0 | ||||||||
| Amounts due to factoring companies | (9,813) | 9,813 | (19,000) | (19,000) | |||||
| Financial liabilities for rights of use | (7,601) | 7,100 | (6,707) | (324) | (842) | (8,374) | |||
| .of which finance leases | (1,201) | 905 | (915) | (1,211) | |||||
| .of which operating leases | (6,400) | 6,195 | (6,707) | (324) | 73 | (7,163) | |||
| Current portion of payables due to other lenders |
(71) | 35 | (35) | (71) | |||||
| F | Current portion of non-current financial debt |
(56,580) | 50,744 | (63,008) | 24 | (68,820) | |||
| G | Current financial debt (E + F) |
(94,441) | 0 | 81,227 | (34,685) | (69,750) | (932) | (818) | (119,399) |
| H | Net current financial debt (G - D) | 166,427 | 19,890 | 81,227 | (34,685) | (69,750) | 10,393 | (818) | 172,684 |
| I | Non-current financial debt (excluding current portion and debt instruments) |
(302,599) | 0 | 0 | (52,500) | 69,750 | (877) | (11,450) | (297,676) |
| Medium-/long-term bank loans | (287,816) | (52,500) | 63,008 | 208 | (277,100) | ||||
| Liabilities for rights of use | (14,536) | 0 | 6,707 | (877) | (11,658) | (20,364) | |||
| .of which finance leases | (4,479) | 915 | (3,564) | ||||||
| .of which operating leases | (10,057) | 6,707 | (877) | (12,573) | (16,800) | ||||
| Amounts due to other lenders | (247) | 35 | (212) | ||||||
| J | Debt instruments | (244,150) | (740) | (244,890) | |||||
| K | Trade payables and other non-current payables |
||||||||
| L | Non-current financial debt (I + J + K) | (546,749) | 0 | 0 | (52,500) | 69,750 | (877) | (12,190) | (542,566) |
| M | Total financial debt (H + L) | (380,322) | 19,890 | 81,227 | (87,185) | 0 | 9,516 | (13,008) | (369,882) |
Medium and long-term bank debt amounts to €/000 345,920 (of which €/000 277,100 non-current and €/000 68,820 current) and consists of the following loans:
a €/000 15,697 medium-term loan (nominal value of €/000 15,715) from the European Investment Bank to finance Research & Development investments planned for the 2016- 2018 period. The loan is divided into two disbursements with a final maturity in February
and December 2023 and a repayment schedule of 7 annual fixed-rate instalments. Contract terms require covenants (described below);
a €/000 14,980 (with a nominal value of €/000 15,000) medium-term loan granted by Oldenburgische Landensbank Aktiengesellschaft maturing on 30 September 2027.
The Parent Company also has the following unused revolving credit lines as at 30 September 2022:
All the above financial liabilities are unsecured.
The item "Bonds" amounted to €/000 244,890 (nominal value of €/000 250,000) related to a highyield debenture loan issued on 30 April 2018 for a nominal amount of €/000 250,000, maturing on 30 April 2025 and with a semi-annual coupon with fixed annual nominal rate of 3.625%. Standard & Poor's and Moody's assigned a BB- rating with a stable 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 30 April 2018 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 19,000.
Medium-/long-term payables to other lenders equal to €/000 283 of which €/000 212 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.
In line with market practices for borrowers with a similar credit rating, main loan contracts require compliance with:
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;
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 April 2018 provide for compliance with covenants which are typical of international practice on the high yield market. In particular, the company must observe the EBITDA/Net 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:
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.
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 30 September 2022 | As of 31 December 2021 | Change | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Non | Non | Non | |||||||
| Current | current | Total | Current | current | Total | Current | current | Total | |
| In thousands of Euros | |||||||||
| Operating leases | 7,163 | 16,800 | 23,963 | 6,400 | 10,057 | 16,457 | 763 | 6,743 | 7,506 |
| Finance leases | 1,211 | 3,564 | 4,775 | 1,201 | 4,479 | 5,680 | 10 | (915) | (905) |
| Total | 8,374 | 20,364 | 28,738 | 7,601 | 14,536 | 22,137 | 773 | 5,828 | 6,601 |
Operating lease liabilities include payables to the parent companies Immsi and Omniaholding for €/000 2,625 (€/000 1,262 non-current portion).
Payables for finance leases amounted to €/000 4,775 (nominal value of €/000 4,781) and break down as follows:
a Sale&Lease back agreement for €/000 4,722 (nominal value of €/000 4,728) 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 3,521);
a finance lease for €/000 53 granted by VFS Servizi Finanziari to the company Aprilia Racing for the use of vehicles (non-current portion equal to €/000 43).
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-rate 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:
As of 30 September 2022, the Group had undertaken the following futures operations (recognised based on the settlement date), related to payables and receivables already recognised to hedge the transaction exchange risk:
| Amount in | Value in local currency (forward exchange |
Average | |||
|---|---|---|---|---|---|
| Company | Operation Currency | currency | rate) | maturity | |
| In thousands | In thousands | ||||
| Piaggio & C. | Purchase | CAD | 750 | 568 | 18/10/2022 |
| Piaggio & C. | Purchase | CNY | 221,000 | 31,640 | 14/11/2022 |
| Piaggio & C. | Purchase | JPY | 455,000 | 3,307 | 05/11/2022 |
| Piaggio & C. | Purchase | SEK | 11,500 | 1,070 | 13/11/2022 |
| Piaggio & C. | Purchase | USD | 38,150 | 37,324 | 07/11/2022 |
| Piaggio & C. | Sale | CAD | 2,800 | 2,133 | 15/11/2022 |
| Piaggio & C. | Sale | CNY | 25,000 | 3,520 | 25/07/2022 |
| Piaggio & C. | Sale | USD | 121,935 | 123,150 | 10/12/2022 |
| Piaggio Vehicles Private Limited | Sale | USD | 3,000 | 243,468 | 20/11/2022 |
| Piaggio Indonesia | Sale | USD | 22,473 | 337,795,266 | 25/11/2022 |
| Piaggio Vespa BV | Sale | USD | 13,844 | 12,937 | 24/04/2023 |
| Piaggio Vietnam | Sale | USD | 59,495 | 1,405,922,685 | 14/11/2022 |
| Piaggio Vietnam | Sale | JPY | 255,689 | 43,977,839 | 10/12/2022 |
| Piaggio Vietnam | Purchase | € | 2,745 | 66,157,031 | 31/01/2023 |
the 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;
the economic exchange 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 30 September 2022, the Group had undertaken the following hedging transactions on the exchange risk:
| Company | Operation | Currency | Amount in currency |
currency (forward exchange rate) |
Average maturity |
|---|---|---|---|---|---|
| In thousands | In thousands | ||||
| Piaggio & C. | Sale | GBP | 2,200 | 2,580 | 17/11/2022 |
| Piaggio & C. | Sale | USD | 60,000 | 58,813 | 09/05/2023 |
| Piaggio & C. | Sale | CNY | 1,000 | 142 | 17/10/2022 |
| Piaggio & C. | Purchase | CNY | 174,000 | 21,599 | 21/11/2022 |
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 30 September 2022 the total fair value of hedging instruments for the economic exchange risk recognised on a hedge accounting basis was positive by €/000 689.
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 30 September 2022, the following hedging derivatives had been taken out:
an Interest Rate Swap to hedge the variable-rate loan for a nominal amount of €/000 30,000 from Banco BPM. The purpose of this 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 profits/losses arising from the fair value measurement allocated to a specific reserve in Shareholders' equity; as of 30 September 2022, the fair value of the instrument was positive by €/000 837.
| FAIR VALUE | |
|---|---|
| In thousands of Euros | |
| Piaggio & C. S.p.A. | |
| Interest Rate Swap | 837 |
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.
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 30 September 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| N° of shares | % compared to the share capital |
Market listing |
Rights and obligations | ||||||
| Ordinary shares | 358,153,644 | 100% | MTA | Right to vote in the Ordinary and Extraordinary Shareholders' Meetings of the Company |
The Share of the Company are without par 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.
During the period, 2,351,692 treasury shares were acquired. Therefore, as of 30 September 2022, Piaggio & C. held 3,397,510 treasury shares, equal to 0.95% of the shares issued.
Furthermore, it should be noted that during the month of October and up to the date of approval of this document, 94,085 ordinary shares were purchased. Therefore, at the time of approval of this Interim Report, the Parent held 3,491,595 treasury shares, equivalent to 0.97% of the share capital.
| 2022 | 2021 | |
|---|---|---|
| no. of shares | ||
| Situation as of 1 January | ||
| Shares issued | 358,153,644 | 358,153,644 |
| Treasury portfolio shares | 1,045,818 | 1,028,818 |
| Shares in circulation | 357,107,826 | 357,124,826 |
| Movements for the period | ||
| Purchase of treasury shares | 2,351,692 | 17,000 |
| Situation as of 30 September 2022 and 31 December 2021 |
||
| Shares issued | 358,153,644 | 358,153,644 |
| Treasury portfolio shares | 3,397,510 | 1,045,818 |
| Shares in circulation | 354,756,134 | 357,107,826 |
The share premium reserve as of 30 September 2022 was unchanged compared to 31 December 2021.
The legal reserve as of 30 September 2022 had increased by €/000 2,902 as a result of the allocation of earnings for the last year.
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.
The Ordinary Shareholders' Meeting of Piaggio & C. S.p.A. held on 11 April 2022 resolved to distribute a final dividend of 6.5 euro cents, including taxes, for each ordinary share entitled (in addition to the interim dividend of 8.5 euro cents paid on 22 September 2021, ex-dividend date 20 September 2021), for a total dividend for the 2021 financial year of 15.0 euro cents, equal to €53,566,173.9 (valid for €5,002,537.15 on the "New earnings" reserve and for €48,563,636.75 on the 2021 profit remaining after the above allocations). Coupon no. 18 was detached on 19 April 2022, with record date on 20 April 2022 and payment date on 21 April 2022.
At its meeting on 28 July 2022, the Board of Directors also resolved to distribute an interim ordinary dividend for the financial year 2022 in the amount of 8.5 euro cents, before tax, for each entitled ordinary share (a similar resolution was made for the interim ordinary dividend for the
financial year 2021). A total of €30,200,086.39 was paid to this end on 21.09.2022 (ex-dividend date 19.09.2022 and record date 20.09.2022).
The end of period figures refer to non-controlling interests in Aprilia Brasil Industria de Motociclos S.A.
| Reserve for measurement of financial instruments |
Group translation reserve |
Earnings reserve |
Group total |
Share capital and reserves attributable to non-controlling interests |
Total other comprehensive income |
|
|---|---|---|---|---|---|---|
| In thousands of Euros | ||||||
| As of 30 September 2022 | ||||||
| Items that will not be reclassified in the income statement Remeasurements of defined benefit plans |
4,321 | 4,321 | 4,321 | |||
| Total | 4,321 | 4,321 | 0 | 4,321 | ||
| Items that may be reclassified in the income statement |
||||||
| Total translation gains (losses) Share of Other Comprehensive Income of subsidiaries/associates valued with |
(1,310) | (1,310) | (29) | (1,339) | ||
| the equity method | 455 | 455 | 455 | |||
| Total profits (losses) on cash flow hedges |
(4,966) | (4,966) | (4,966) | |||
| Total | (4,966) | (855) | 0 | (5,821) | (29) | (5,850) |
| Other comprehensive income | (4,966) | (855) | 4,321 | (1,500) | (29) | (1,529) |
| As of 30 September 2021 Items that will not be reclassified in the income statement |
||||||
| Remeasurements of defined benefit | ||||||
| plans | (10) | (10) | (10) | |||
| Total Items that may be reclassified in the income statement |
0 | 0 | (10) | (10) | 0 | (10) |
| Total translation gains (losses) Share of Other Comprehensive Income of subsidiaries/associates valued with |
4,424 | 4,424 | (3) | 4,421 | ||
| the equity method Total profits (losses) on cash flow |
787 | 787 | 787 | |||
| hedges | 3,972 | 3,972 | 3,972 | |||
| Total | 3,972 | 5,211 | 0 | 9,183 | (3) | 9,180 |
| Other comprehensive income | 3,972 | 5,211 | (10) | 9,173 | (3) | 9,170 |
The tax effect related to other comprehensive income is broken down as follows:
| As of 30 September 2022 | As of 30 September 2021 | ||||||
|---|---|---|---|---|---|---|---|
| Tax (expense) |
Tax (expense) |
||||||
| In thousands of Euros | Gross value | / benefit | Net value | Gross value | / benefit | Net value | |
| Remeasurements of defined benefit plans | 5,686 | (1,365) | 4,321 | (13) | 3 | (10) | |
| Total translation gains (losses) Share of Other Comprehensive Income of |
(1,339) | (1,339) | 4,421 | 4,421 | |||
| subsidiaries/associates valued with the equity method |
455 | 455 | 787 | 787 | |||
| Total profits (losses) on cash flow hedges | (6,534) | 1,568 | (4,966) | 5,226 | (1,254) | 3,972 | |
| Other comprehensive income | (1,732) | 203 | (1,529) | 10,421 | (1,251) | 9,170 |
As of 30 September 2022, there were no incentive plans based on financial instruments.
Net sales, costs, payables and receivables as of 30 September 2022 involving parent, subsidiary and associate companies relate 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.
Piaggio & C. S.p.A. is controlled by the following companies:
| Name | Registered office Type |
% of ownership | |||
|---|---|---|---|---|---|
| As of 30 | As of 31 | ||||
| September 2022 | December 2021 | ||||
| Immsi S.p.A. | Mantova - Italy | Direct parent company | 50.0703 | 50.0703 |
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:
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.
In 2019, for a further three years, the Parent Company7 signed up to the National Consolidated Tax Mechanism 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 Mechanism, 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.
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.
7 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.
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.
The main relations with subsidiaries, eliminated in the consolidation process, refer to the following transactions:
o sells components to:
Piaggio Vespa
o has loan agreements with:
Piaggio Vietnam sells vehicles, spare parts and accessories, which it has manufactured in some cases, for sale on respective markets, to:
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 and Foshan Piaggio Vehicles Technology R&D
o distribute vehicles, spare parts and accessories purchased by Piaggio & C. S.p.A. on their respective markets.
o provide a vehicle, spare part and accessory distribution service to Piaggio Vietnam for their respective markets.
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.
o provides a sales promotion service and after-sales services to Piaggio Vietnam in the Asia Pacific region.
Foshan Piaggio Vehicles Technology R&D provides to:
o provides a vehicle and component research/design/development service to Piaggio & C. S.p.A.
Aprilia Racing provides Piaggio & C. S.p.A:
Piaggio Espana supplies Nacional Motor:
o with 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.
Main intercompany relations between subsidiaries and JV Zongshen Piaggio Foshan Motorcycle Co. Ltd, refer to the following transactions:
grants licences for rights to use the brand and technological know-how to Zongshen Piaggio Foshan Motorcycle Co. Ltd..
provides advisory services to Zongshen Piaggio Foshan Motorcycle Co. Ltd.
The table below summarises relations described above and financial relations with parent companies, subsidiaries and affiliated companies as of 30 September 2022 and relations during the period, as well as their overall impact on financial statement items.
| As of 30 September 2022 | Fondazione Piaggio |
IMMSI IMMSI | Audit Omniaholding | Pontech - Pontedera & Tecnologia |
Zongshen Piaggio Foshan |
Total | % of accounting item |
|
|---|---|---|---|---|---|---|---|---|
| In thousands of Euros | ||||||||
| Income statement | ||||||||
| Net revenues | 9 | (9) | - | 0.00% | ||||
| Cost for materials | 34,707 34,707 | 3.28% | ||||||
| Costs for services and leases and rentals |
5 | 301 | 600 | 31 | 71 | 1,008 | 0.44% | |
| Other operating income | 38 | 18 | 345 | 401 | 0.36% | |||
| Other operating costs | 6 | 6 | 0.03% | |||||
| Income/(loss) from investments |
18 | (180) | (162) | 100.00% | ||||
| Borrowing costs | 46 | 14 | 60 | 0.32% | ||||
| Financial statements | ||||||||
| Current trade receivables | 12 | 9 | 456 | 477 | 0.44% | |||
| Other current receivables | 19,390 | 24 | 552 19,966 | 36.09% | ||||
| Non-current financial liabilities for rights of use |
862 | 400 | 1,262 | 6.20% | ||||
| Current financial liabilities for rights of use |
1,139 | 224 | 1,363 | 16.28% | ||||
| Current trade payables | 16 | 30 | 13 | 19,547 19,606 | 2.61% | |||
| Other current payables | 10 14,899 | 60 | 14,969 | 17.70% |
No significant, non-recurring operations, as defined by Consob Communication DEM/6064293 of 28 July 2006 took place during the first nine months of 2022 and in 2021.
During 2021 and the first nine months of 2022, 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.
To date, no events have occurred after 30 September 2022 that make additional notes or adjustments to these Financial Statements necessary.
In this regard, refer to the Report on Operations for significant events after 30 September 2022.
This document was published on 11 November 2022 authorised by the Chairman and Chief Executive Officer.
* * *
Mantova, 28 October 2022 for the Board of Directors Chairman and Chief Executive Officer Roberto Colaninno
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