2012 Half year financial report

Significant events during first half of 2012

6 January 2012 the Vespa for the Indian market was unveiled at the Auto Expo show in Delhi. With a new low emission 60 km/litre engine, the scooter has been manufactured at Piaggio's production facilities in Baramati (India) since March 2012. It will go on sale in 35 major Indian cities from April. Initial production capacity will amount to 150,000 vehicles/year.

23 January 2012 the revolving syndicated loan of 130 million Euro undersigned on 29 December 2011 was finalised, as suspension conditions had been met. In particular, the remaining 65 million Euro of a pooled loan, with maturity in August 2012, was paid back in advance, and the early cancellation of a loan of 100 million Euro, undrawn on, with maturity in December 2012, was requested.

24 January 2012 the Group established an organisation based on the geographic areas EMEA and Americas, Asia SEA and India.

3 February 2012 Piaggio & C. S.p.A. was awarded the contract in the tender called by Poste Italiane S.p.A. at an EU level, with electronic bidding, to establish a framework agreement for the supply of 17,783 mopeds for postal deliveries. 

1 March 2012 A new production site for scooter engines was inaugurated at Vinh Phuc in Vietnam. The facility will have an initial production capacity of more than 200,000 engines a year, which will go up to 300,000 as production capacity at the vehicle manufacturing site is stepped up.

14 March 2012 the opening of an Advanced Design Center at Pasadena in California (USA) was announced. The centre will work closely with the Piaggio Group's Style Centre, and R&D Centres based in Italy, China, India and Vietnam.

20 March 2012 a financing agreement was signed with International Finance Corporation for $/000 17,850 to cover the production investments of the Indian subsidiary.

23 March 2012 with reference to the medium-term revolving loan for 130 million Euro undersigned on 29 December 2011 by Piaggio & C. S.p.A., the amount was increased to the maximum value of 200 million Euro, through the participation of Mediobanca and Intesa Sanpaolo.

26 March 2012 production of the new Moto Guzzi V7 range got underway at the Mandello del Lario site.

11 April 2012 - Following award of the competitive tender pursuant to article 105-107 of the Italian Bankruptcy Law, a contract of purchase was signed for the company site “Tecnocontrol” situated in Pontedera, for a total value of 11,323,000 Euro.

13 April 2012 - the Meeting of Shareholders of Piaggio & C. S.p.A. appointed the new Board of Directors that will remain in office for three years until approval of the financial statements as of 31 December 2014.

The Board of Directors will comprise 11 members, based on the one list submitted by the majority shareholder Immsi S.p.A.: Roberto Colaninno, Matteo Colaninno, Michele Colaninno, Andrea Paroli, Livio Corghi, Franco Debenedetti (independent director), Daniele Discepolo (independent director), Mauro Gambaro (independent director), Luca Paravicini Crespi (independent director), Riccardo Varaldo (independent director), Vito Varvaro (independent director).

The Meeting of Shareholders also appointed the Board of Statutory Auditors, comprising: Giovanni Barbara (Chairman), Alessandro Lai and Francesco Arietti as statutory auditors and Mauro Girelli and Elena Fornara as alternate auditors.

The Curricula Vitae of Board Directors and members of the Board of Statutory Auditors are available at www.piaggiogroup.com, under Governance.

13 April 2012- The Meeting of Shareholders resolved to appoint PricewaterhouseCoopers S.p.A. to audit the company's accounts for the 2012-2020 period.

28 April 2012 - Two days after its presentation to the Indian and international press at Bombay, the new Piaggio Group site for manufacturing Vespas for the Indian market at Baramati (State of Maharashtra) was officially inaugurated. The new site will have an initial production capacity of 150,000 vehicles/year, which will be increased to 300,000 vehicles/year in 2013.

7 June 2012 - The fully restyled range of the new VESPA LX and S 3V models made its début. Developed and manufactured at Pontedera, the ultra-technological 4 stroke, 3 valve 125cc and 150cc engines have set new standards with: a mileage of 55 km/litre, and a 30% decrease in fuel consumption and CO2 emissions. Plus performance has been seriously boosted: the maximum power of the Vespa 125cc has improved by 7.1%, and maximum torque by 10.3%. For the Vespa LX and Vespa S 3V 150cc, maximum power and torque have increased by 6.3 and 7.8% respectively.