2012 Half year financial report

Consolidated statement of financial position

In millions of EuroAs of 30 June
As of 30 June
Statement of financial position      
Net working capital (24.3) (39.9) 15.6
Net tangible assets 302.0 274.9 27.2
Net intangible assets 652.3 649.4 2.9
Financial assets 5.8 2.6 3.2
Provisions (107.5) (104.9) (2.6)
Net capital employed 828.4 782.1 46.2
Consolidated net debt 384.0 335.9 48.1
Shareholders’ equity 444.4 446.2 (1.9)
Sources of funds 828.4 782.1 46.2
Minority interest capital 1.2 1.2 0.1

Net working capital as of 30 June 2012, negative for 24.3 million Euro, used cash flows of 15.6 million Euro in the first half of 2012. Specifically, net working capital is defined as the sum of trade receivables, inventories, trade payables and other non-trade assets and liabilities During the period, in a particularly challenging market context, the Piaggio Group was able to maintain a balance in net working capital, thanks above all to a careful management in the collection of trade receivables, and to a major focus on inventory management and optimisation.

Plant property and equipment, comprising plant, property, machinery and industrial equipment, net of accumulated depreciation and assets held for sale, amounted to 302.0 million Euro as of 30 June 2012, up by approximately 27.2 million Euro compared to 31 December 2011. This increase is mainly due to the volume of acquisitions in the period, which greatly exceeded the value of depreciation.

Intangible assets, comprising capitalised development costs, costs for patents and know-how, as well as goodwill arising from acquisitions/mergers taking place within the Group over the last few years, totalled 652.3 million Euro, with an increase of approximately 2.9 million Euro compared to 31 December 2011. As above, the value of investments was higher than amortisation. 

Financial assets, defined as the sum of “investments” and “other non-current financial assets" totalled 5.8 million Euro. The increase is mainly due to the equity valuation of the Zongshen Piaggio Foshan joint venture.

Provisions, comprising retirement funds and employee benefits, other long term provisions, the current portion of other long term provisions, as well as deferred tax liabilities, totalled 107.5 million Euro, registering an increase compared to 31 December 2011 (2.6 million Euro).

As fully described in the next section on the “Consolidated Statement of Cash Flow”, net financial debt as of 30 June 2012 was equal to 384.0 million Euro, compared to 335.9 million Euro as of 31 December 2011. The decrease of 48.1 million Euro in net debt is mainly due to the major investment programme and distribution of dividends, only partially offset by the positive trend of cash flow from operating activities.

Shareholders' equity as of 30 June 2012 amounted to 444.4 million Euro, down 1.9 million Euro compared to 31 December 2011.