Piaggio & C. SpA

Good afternoon. This is the Coral School Conference Operator. Welcome and thank you for joining the Piaggio First Half 2026 Financial Results Conference Call. As a reminder, all participants are in listen-only mode. 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, Head of Investor Relations of Piaggio. Please go ahead, sir.

Hello, everyone, and welcome to the Piaggio Group's first half of 2026 Financial Results Conference Code. The conference code will be hosted by Alessandra Simonotto, Piaggio Group CFO, and myself. 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 conference 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 will cause our core results to be materially different from those expressed or implied. These factors are discussed in the Safe Harbors Statement, on page two of today's presentation. With that, I would like to hand the call over to Alessandra.

Good afternoon to everybody and welcome to our conference for today. I believe that you have already seen our slides and our press release. As you can read there, the results of the first six of this first half of 2026 is Something that generates in every one of us a proudness for what we have done versus last year. The most important result is what we already communicated to the markets at the beginning of July in terms of revenues because we are facing a solid growth of the revenues Both in constant forex but also with the current forex we want to see. The growth margin at 31.6% is the best we've ever reached in the last six years. The EBITDA margin is in the first half the higher we get in our life. In about the next financial position, we got the best-ever results both in terms of the second quarter results and also on the first half results. So what happened in the six months? We faced, as Mr. Colaninno underlined in the press release, a period. in which the group got a growth in vehicle stores and revenues over the world with all the markets that more or less are recovering versus last year in the same period. The sales in the semester grew up about the 8.5% and the revenues of the 3.2%. We are facing There is a heavy period if we want to see what is happening overall in the market. We are waiting for new results about some impacts about inflection probably in the next 3-12 months. We don't know because the market is down. It's after the cost of gas of some precious metals. and so far can be different day by day. As of now, we get the results without any impact. We were able to manage all the situations, getting the better results that you see here. We think that we can work in the same way for the next month. This is our task, this is our goal, this is what we have already done, so this is something that we think we could maintain the same positioning that we got as of today.

Thank you very much, Alessandra, and I think that we can start immediately the Q&A session. Thank you.

Thank you. This is the Corusco 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 touchtone 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. The first question is from Monica Bosio in Teso San Paolo.

Good morning and thanks for taking my questions. Actually, I have four. The first is on the second part of the year. So given the set of results, I was wondering whether do you still view the 2026 consensus which implies a double-digit revenue growth overall aligned with your internal expectations? That's the first question. The second one, if you can share with us what has been the volume trend that you have seen so far in July and if it is in line with your expectations. The third is on the volume trend in Western country in the second alpha. So do you expect what kind of growth in terms of volumes in Western country do you see in the second part of the year? And how do you see the pricing evolution as I've seen that in the second quarter The price per unit in Western countries was, if I'm not wrong, lower year on year. And the very final story is, given the strong free cash flow generation in the second quarter, do you still confirm your previous Euro 500 million net debt target by year-end, or do you see room for improvement? and some better results on this side. Thank you very much.

Hi Monica, good afternoon and I would like to answer to some of the questions and on the other Raffaele will answer to you. So about the second part of the year and the consensus. Yes, in this moment on the basis of the volumes of states and and Florica we have in our hands, we confirm what we see in the consensus for the end of the year. So we think that in the rest of 2026 we will be able to get the results that you can see in the consensus.

Okay. Monica, concerning your second question about volume trend in July, what we are seeing is a similar trend compared to Q2 this year, so with a positive contribution coming from all geographic areas. And concerning your fourth question... The first question was about pricing in Europe. In reality, revenue per unit was pretty much in line, or even higher than here. It's just an exception, given the fact that there is a reduction in volumes for motorbikes, while scooters include significantly in Q2. So it's just an exception.

The last one was about the financial position. Yes, we confirmed the consensus. So we think that the results at the end of the year will be more or less around 500 million euros. Then we will do our best, just like we have done in the first part of the year. And we will wait and see.

Okay, thank you very much. If I may, just a clarification on the Western countries' volumes and pricing. Thank you for the clarification on the mix. In terms of volumes, can we say that the second part of the year could be a little bit better or at least aligned to what we have seen so far in Western countries?

I think that the figures are more or less aligned on what we are seeing on July. So as in July we are seeing that the volumes are going better. We think that also in the next part of the semester the trend will be more or less the same.

Okay, thank you very much both. Thank you. Thank you, bye.

The next question is from Emanuele Gallazzi, Equita.

Good afternoon, everybody. I have three questions. The first one is a follow-up on the cash generation in the second quarter because if I look at the paywalls, they were particularly high and up more than €150 million. Can you just comment on this and what do you expect for the remaining part of the year? The second one is on Europe, specifically on the market share, because I think in the press release you were mentioning a flat trend in terms of market share, but if I look at your number, specifically your volumes, in the first half were down low to mid single digit, while the HM data show an increase of... 15-16% in the first half in Europe. Can you elaborate on this? Just try to understand this gap between your data and the HM data. And the last one is on India. We have seen solid numbers for the second quarter. Can you comment on the Indian market dynamics and what do you expect for the remaining part of the year?

Thank you. Yes, Manuel and Raffaele speaking.

Concerning our data and market share, it can confirm that our sell-out was quite strong, and that's the reason why we kept the market share pretty much in line with what we are in the second. We lost something in motorbikes, that's it, but I can confirm that probably, clearly, I am In H1, the sell-out was outstripping selling. But this is the only explanation we have. But these are what we published, essentially, in terms of market share. So stable market share in scooter and decline in motorbikes. And then, okay, but this is for U.S., as you have seen, we gained significantly market share. Okay. Then...

About the payable, yes, you have seen a slight increase versus June 2026 because the comparable data is clearly not December. Our business, as you well know, in any case, maintains a different contribution quarter by quarter. And so, as you well know, The second quarter and the third quarter are more important than the first and the fourth. This is why if you take a look to the table of June 2025, we were at 625. Now we have that 637, so this is not so a big difference in the same period of the year. In this moment we have more or less closed all the capex for Guttiland that we will inaugurate in September. We have a higher volume than June of last year and so this is the reason of this slight difference. On the other hand, we have to consider that at the end of the year, year by year, the payables are lower than in June.

And about India?

So, for Inga, you mean market trend? Yeah, exactly. So, market trend, as you have seen, has been very supportive in H1. I would like to underscore that we gained market share overall on one percentage point, according to Siam data. Then, if we consider just the internal combustion engine vehicles, we gained market share markedly, I would say, in the region of 3.3%. So far, we haven't seen any sign of a slowdown, so probably July will be another very strong month. Just to give you an idea, in June the market emptied out, we grew 40% and July will be another strong month. This is for light commercial vehicles, the trend is still positive in two-wheelers. On top of that, and this is something that also our competitors have been In H1, according to CM data, our export grew 56% and the trend is very very supportive. We have a strong growth coming from African countries mainly, but we have also a decent growth in Latin America.

Thank you very much.

You're welcome.

As a reminder, if you wish to register for a question, please press star and one on your telephone. For any further questions, please press star and one on your telephone.

Okay, so if there are no other questions, I think that we can stop the call now. And as usual, if you need further information, you can call me later this afternoon. Thank you very much. Bye.