Consolidated Cash Flow Statement

The Consolidated Cash Flow Statement, prepared in accordance with international accounting standards, is presented in the “Consolidated Financial Statements and Notes as of 31 December 2011”. The following is a comment relating to the summary statement shown.

Change in consolidated net debt 2011 2010 Change
In millions of Euro
Opening consolidated net debt (349.9) (352.0) 2.0
Cash flow from operating activities (earnings + amortisation/depreciation) 142.0 128.8 13.2
(Increase)/reduction in working capital 48.8 8.4 40.4
(Increase)/reduction in net investments (112.0) (103.7) (8.4)
Net change in retirement funds and other provisions (21.0) (7.8) (13.3)
Change in shareholders' equity (43.7) (23.8) (19.9)
Total change 14.0 2.0 12.0
Closing consolidated net debt (335.9) (349.9) 14.0

During 2011 the Piaggio Group generated financial resources amounting to 14.0 million Euro.

Cash flow from operating activities, defined as net income minus non-monetary costs and income, was equal to 142.0 million Euro.

Working capital generated a cash flow of 48.8 million Euro; in detail:

  • the collection of trade receivables generated financial flows for a total of 24.9 million euro;
  • stock management generated financial flows for a total of approximately 3.1 million Euro;
  • supplier payment trends generated financial flows of approximately 22.8 million Euro;
  • the movement of other non-trade assets and liabilities had a negative impact on financial flows by approximately 2.0 million Euro.

Investment activities involved a total of 112.0 million Euro of financial resources. Investments for the period refer to approximately 38.3 million Euro for capitalised research and development expenditure, and approximately 87.8 million Euro for plant, property and equipment and intangible assets.
In more detail, research and development expenditure amounted to 30.1 million euro for the Two-wheeler segment (scooters, motorcycles and engines) and 8.2 million euro for the Commercial vehicles business.

As regards plant, property and equipment and intangible assets, 25.6 million Euro was dedicated to product development for the Two-wheeler segment, approximately 5.0 million euro to product development for the Commercial Vehicles segment, approximately 44.6 million Euro to industrial activities, approximately 9.7 million Euro to information technology and 2.9 million Euro to other activities.

The impact on cash flow of the distribution of dividends in 2011 was equal to 25.7 million euro.

As a result of the above financial dynamics, which generated a positive cash flow of 14.0 million Euro, the consolidated net debt of the Piaggio Group stood at - 335.9 million Euro.