2012 Half year financial report

Two-wheeler

Sales on the world two-wheeler market in the first half of 2012 fell to below 24 million vehicles, registering a drop of 2.5% compared to the same period in 2011.

Whereas growth on the Indian market continued. With an increase of 10.8% compared to the previous year, nearly 7 million vehicles were sold in India, exceeding China in terms of volumes.

Sales fell by approximately 11% in China, which became the second world market with approximately 6.3 million vehicles sold.

After years of growth, the Asian area known as Asean 5 registered a decline of approximately 6% (approximately 6.9 million units). The growth rate of Indonesia, the most important country in this area, also declined by 5.6%, with sales volumes falling to 3.8 million units, while still accounting for 55% of sales in South East Asia; Vietnam was still the second market in the area, with volumes just below 1.4 million units (-4.5%); Thailand instead recorded the best performance on world markets (+13.2%), with over 1 million vehicles sold. The last two countries in the Asean 5 area, the Philippines and Malaysia, reported contrasting trends: sales decreased in the Philippines (-12.4%, with sales amounting to approximately 330 thousand units) while they increased in Malaysia (+9.7% with sales accounting for 279 thousand units).

Among other countries in the Asian area, the Taiwanese market continued to grow in the first half of 2012 (+1.2%), with total volumes at nearly 290 thousand units.

In the first half of 2012, the North American market reversed the trend of recent years, selling 299 thousand vehicles and posting a 3% increase.

In the first half of 2012, the Latin American market slowed down (-7%) mainly due to the decrease on the Brazilian market (the reference country for the area), which sold approximately 900 thousand units, accounting for a 13% drop in sales compared to the first half of 2011.

Europe, which is the reference area for the Piaggio Group's operations, continued to struggle, with sales on the two-wheeler market down 14% compared to the first half of 2011 (-13% for the motorcycle segment, and -16% for the scooter segment). In the scooter segment, the decrease refers to both the over 50cc market (-12%), and 50cc market (-19%). In the motorcycle segment, sales of over 50cc models were down 12%, while the trend for 50cc models was more marked, with a 23% decline.

The scooter market

Italy

The Italian scooter market ended the first half of 2012 with 115 thousand vehicles sold, a performance down by 20% compared to the figure of 144 thousand recorded in the same period in 2011.

The 50cc segment was affected above all (-30% with 25 thousand units sold), while the decrease in the over 50cc segment was less marked (also because of the first-time registration of vehicles used by the Italian postal service), with approximately 90 thousand units sold, equal to -17% compared to the first half of the previous year.

Europe

Sales on the European scooter market fell by 16% in the first half of 2012, from 525 thousand units in the first half of 2011 to 444 thousand units in the first half of 2012.

The 50cc scooter segment recorded a negative trend of 19%, with sales falling from 255 thousand units in the first half of 2011 to 207 thousand in 2012.

The over 50cc scooter segment was also affected, with sales down by 12%, accounting for 237 thousand units overall against 270 thousand in the same period of 2011.

Italy is still the most important market in Europe, with 115 thousand units sold, followed by France with 89 thousand units and Germany with 49 thousand units. Spain ranks fourth with 40 thousand vehicles sold, while the United Kingdom closed the first half of the year with sales of 17 thousand units.

Sales in France decreased by 11% compared to the previous year, falling from 99 thousand to 89 thousand units. This decrease was mainly due to the 50cc scooter segment, where sales fell by 14%, while this negative trend was less significant in the over 50cc segment (- 6%).

The trend on the German market was also negative (-14%) mainly due to the 50cc scooter segment, where sales fell by 19%, while the decline in the over 50cc segment was not as significant (-5%).

Sales on the Spanish market fell by 16% with volumes amounting to 40 thousand vehicles. This negative trend was equally distributed between the 50cc and over 50cc segments.

The British market grew by 8% compared to the same period in 2011, with approximately 17 thousand vehicles sold and this was the only main European nation to report a positive trend. In particular, the increase in volumes was driven by the over 50cc scooter segment, which increased sales by 18%, while sales of the 50cc segment fell by 7%.

North America

In the first half of 2012, the North American scooter market remained stable compared to the previous year, with 21 thousand vehicles sold. In the United States (which accounts for more than 90% of the reference area), sales increased by 6%, accounting for 19 thousand units, while Canada was affected by a considerable downturn (-31%). In particular, the trend of the 50cc scooter segment was excellent in the United States, with sales up 25%.

South America

Brazil remained the most important area in South America for the scooter market, with sales accounting for 236,000 units in the first six months of 2012, up 1% compared to the first half of 2011.

Scooter sales are broken down as follows: 206,000 Cub scooters (scooters with gears) (up +2.7% compared to the first half of 2011) and 30,000 automatic scooters (-9.3% compared to the same period of the previous year).

In the automatic scooter segment, 125cc engine scooters were the main category, with approximately 23,000 items sold (-8.7% compared to the first six months of 2011), while sales in the over 125 segment were down slightly, with 4,200 units sold.

Vietnam

The Vietnamese market mainly concerns scooters, while sales in the motorcycle segment are not particularly significant. The two main product segments are Cub scooters (862 thousand units in the first half of 2012, -6.7% over 2011) and automatic scooters (scooters+autocubs, 534 thousand units, remaining steady over 2011).

The 50cc scooter segment is not operative on this market.

In the Cub segment, 51cc to 115cc models were the best performers, with approximately 758 thousand units sold (down 8.7 percentage points compared to 2011) accounting for 90% of the entire segment.

In the automatic segment, the 115cc-125cc range sold 85 thousand items in the first half of 2012. Sales increased by 3.4% in the 51cc-115cc segment (344 thousand units sold in the first six months of 2012), while in the over 125 segment sales went up from 57 thousand units to approximately 105 thousand (+82% compared to the same period in the previous year).

The motorcycle market

Italy

In the first half of 2012, sales of motorcycles (including 50cc motorcycles) fell by 30% in Italy, from 59 thousand units in the first half of 2011 to 42 thousand units. This downturn affected all subsegments. Unlike previous years, the large engine segment was impacted the most: sales of over 750cc motorcycles fell by 32% to stand at 22 thousand units, while in the 126-750cc segment they fell by 27% to stand at 15 thousand units. Sales of small engine models also decreased considerably: the 50cc and 51-125cc segments both reported a 26% fall in sales.

Europe

The motorcycle market (including 50cc motorcycles) also performed badly at a European level, with volumes down in the first half of 2012, from 339 thousand units in the first half of 2011 to 297 thousand units in the same period of 2012 (-13%). The most significant decline was registered in the 50cc segment, with sales falling from 25 thousand units in 2011 to 19 thousand units in 2012 (-23%). Other segments also decreased: the 51-125cc motorcycle segment fell by 14%, selling 38 thousand units; the 126-750cc segment sold 93 thousand vehicles, down 11%, while the over 750cc segment sold 146 thousand vehicles, equal to a drop of 11%.

France continued to be the main European market (68 thousand units). Germany ranked second, with 65 thousand units, ahead of Italy with 42 thousand units; Great Britain came fourth (34 thousand units) followed by Spain (19 thousand units).

North America

Growth on the North American motorcycle market, affected by major downturns following the global crisis, picked up by 3% in the first half of 2012, due to the performance of both the US (+3%) and Canadian (+5%) markets.

The United States account for nearly 90% of sales on the North American market. Sales of large engine motorcycles (over 750cc), which have a 65% market share, went up by 8%; the 50cc motorcycle segment also reported a positive growth trend (+45%), while the medium engine segments declined: 51-125cc motorcycle segment (-8%) and 126-750cc motorcycle segment (-8%).

South America

The South American reference market for motorcycles is also Brazil.

Sales of motorcycles in Brazil in the first six months of 2012 decreased by 17.3%, falling to 661 thousand units.

The 126cc to 300cc segment was the main category, with 423 thousand units sold in the first six months of 2012, registering a 12.6% decrease compared to the previous year.