Piaggio & C. SpA

Good afternoon, this is the Coruscall conference operator. Welcome and thank you for joining the Piaggio full-year 2025 financial results conference call. As a reminder, all participants are in listen-only mode. And after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Raffaele Lupotto, Investor Relations of Piaggio. Please go ahead, sir.

Hello, everyone, and welcome to Piaggio Group's full year 2025 financial results conference call. Joining us today are Matteo Colanino, Chairman of Board of Directors of Piaggio Group, and Alessandra Simonotto, Group Chief Financial Officer. The slides supporting today's presentation are available on the Piaggio Group website. Before we begin, I would like to remind you that during today's call, we may make forward-looking statements based on Piaggio's current expectations and projections about future events. By their nature, these statements are subject to risks, uncertainties, and other factors that could cause after-results to differ materially from those expressed or implied. These factors are discussed in the safe harbor statement on page two of today's presentation. With that, I would like to end the poll over to our chairman, Matteo Colagnino, for his opening remarks.

Thank you. Good evening to everybody. Welcome. Just a few words because I would like to underline that we are in the middle of a historical phase of constant uncertainty. where the world order based on shared and multilateral use is now in crisis, as we know. As far as the Piaggio Group is concerned, internationalization and diversification of our market, the power and the strength of our brands are key elements of Piaggio's resilience. In this context, despite the reduction in revenues, in terms of ratio, once again, Piaggio Group achieved healthy margins and profitability over the last few years thanks to efficient management of its operation. If you can see, we came as far as ground margin is concerned in terms of ratio, We came from 28.3% of 2020 years to 27.7%, 26.6% in 2022, 28.5% in 2023, 29.2% in 2024, and the best ever is this year, actual year, with 30.5% of gross margin. As far as EBDA's margin is concerned, we came from 40.2% of 2020 through 14.4, 14.3, 16.4 year 2023, 16.9 in 2024, and actual 2025, 16.7 is the second best ever EBDA margin. So today we can confirm investment in new models, technologies, while maintaining focus on process and product profitability. The past year, 2025, saw the introduction of new models across all the group's brands. Let me say we have fantastic brands, as you know. Vesta, I can say it's the best scooter of the world, continue to evolve. We have a new power engine, 310 single cylinder engine. Aprilia, we see a triumphant opening of the 2026 MotoGP season. And as you know, last time we have won the Grand Prix with Marco Berzechi in Thailand. And four Aprilia in the first five positions. That means that we had continuously on air by sport television throughout the world focused on the brands Aprilia. Motoguzzi, Piaggio, Piaggio Commercial. So we have fantastic brands. So before to give the floor to our CFO, I would like to So stress again, innovation, investments, competitiveness, sustainability remain the strategic compass of the Piaggio Group's development.

Okay, thank you very much. So we can start now the Q&A session. Okay, thank you.

Thank you. This is the Chorus Call Conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. We will pause for a moment as participants are joining the queue. First question is from Intesa San Paolo, Monica Bosio.

Yes, good afternoon. Can you hear me?

Yes, perfectly.

Thank you. Thank you for taking my questions. I have four. Do you prefer I ask all at once or one at a time?

All together. We try to remember one at a time.

Thank you. So my first question is on demand trends in Europe. The registration data show encouraging signs in Italy and Spain. and also strong growth in Germany so can you comment on the overall market conditions in February and more importantly do you see this rebound as mostly due to a favorable comparison base or do you see this rebound as an effective growth of the market so this is the first question The second is on India. According to the FIAM data, both industry volumes and yield performance were strong in January. Is this positive momentum continued in February? And the third question is on the cash flow. The net debt increased materially for the third consecutive year. Should we expect a material improvement in free cash flow generation in 2026? And if yes, if you can elaborate more on this. Thank you.

Okay, Monica. So I take the first two questions. So concerning Europe, your eye, several countries have posted very positive demand trends. So overall, according to our data, the market grew around 9% in January, and even more in the main countries in February, probably in the region of 13%, with positive results spread across, I would say, almost all countries. Clearly, there is a favorable base effect, but I would like to highlight that some of those countries are not that above 2025 level, but have demand already at 2024 level. So there is an easy comparison there, but the trend is positive. Be careful because, again, January and February are not super relevant in terms of market trend and in terms of total volume sold. With that said, going to India, In this case, yes, I can confirm that market trend and Piaggio volumes that are public are very positive. We end up in, according to CM data in January, with a strong growth in light commercial vehicles, where we gain also market share. And this morning, FADA, F-A-D-A, released the data for the month of February, and Piaggio in light commercial vehicles grew in the region of 33%. So outstripping market trends and gain again around 2.5 percentage point of market share. At the same time, also volumes in two-wheeler are very, very positive. We're positive in January where we grew around 15% and also positive in February according to FADA because we grew around 20 to 23%. So overall the situation in India is very, very positive. And then I leave the floor to .

About the cash flow, Monica, good evening. We can say this. The first thing is that in 2025, we have another option for 40 million euros, but it is lower than the 100 that we had in 2024. In this 30 million euros, you have to consider that We have paid them more or less 18 million euros for the new investment in Mandalo del Lario, so for the museum and for all the new investments that we did there. And this is so a peak with a specific investment that we will not have during the next year, during 2026 and 2027. So this will not affect again our cash flow in the next future. On top of that, if you have seen our balance sheet and the analysis we have put in our slide for the net financial position, you can see there that both the inventories and the trade supplier are lowering than last year. The inventories go down for 50 million euros and the trade payables are lowering of 95 million euros. So in any case, these... This lowering of these figures is something that has affected the net financial position in 2025, but that helps us to get a better result in 2026.

Okay, thank you very much. And if I can, can you share with us an indication of the net debt the company is targeting for 2026?

You know that we have already published the consensus for 2026. I can say that the consensus is more or less the target we have.

Perfect. Thank you very much. Very clear. Thank you.

You are welcome.

Next question is from Emanuele Gallazzi, Equita.

Yes, good afternoon, everybody. I will say three questions from my side. The first one, starting from, let's say, the guidance or the indication on 2026, you are confirming the indication or the consensus for net financial position. But basically, if we look at the revenues and the EBITDA, the consensus is pointing to revenues up mid-single digit and EBITDA up high single digit. I don't know if you can provide a comment on this and how should we think about the first quarter. In other words, do you expect a strong start of the year, so a strong first quarter? The second one is on Europe. Thank you for the indication about January and February. I would like, by the way, to know which kind of, let's say, strategic initiatives are you implementing to recover market share specifically on the scooter if it is a matter of new product, or a change in strategy on the pricing side. And the last one is if you can provide an indication or an idea about the factoring level in 2025.

Thank you.

So about 2026, we believe that the margin that we are indicating that the consensus is the ones that we will work with for all this year and also for the first quarter. So there is no differences between what we have published and what we are expecting now in this momentum. About the factoring, if I remember well, the amount is more or less 116 million Euro. At December 2024, we were at 126 million Euro. And there was another question about the marketing initiative and so forth, if I remember well. Well, I believe that you are seeing our newspaper, TV, all the social media we have, what we are doing both for VESPA, for Aprilia, and so forth. The initiatives in Europe are going on the market and on the field in this week or in the next week, and so you will see what we are doing about it in the next days. About the price, I can confirm that the policy of the group, just like Mr. Michele Colanino, our CEO, as confirmed in all the other conference calls we had during 2025, we will be not a price war. So we will not change our philosophy about price.

Very clear. Thank you.

Mr. Lupato, there are no more questions registered at this time.

So if there are no more questions, we can close the call now.

Apologies, there is one more person. Davide Zappa from DZ.

Hi, one question from my side. Can you elaborate or give us a little bit of color on the dividend?

Okay.

Excuse me, I do not know if I have already... But as you can see with the sign together, the board of directors has defined together to propose to the shareholders meeting not to distribute another quarter of the dividends. So we will distribute only the account that we have already paid in September, nothing more.

Thank you.

Mr. Lupotto, there are no more questions registered at this time.

Okay. So, if there are no more questions, we can close the call now. So, the call is over. If you need more info, as usual, you can call me later. Okay? Thank you.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.