1. Deutsche Börse Student Research Piaggio & C. Spa Università degli Studi di Padova Facoltà di Economia

2. 2 OUR ANALYSIS IN BRIEF Current price: € 2,37 Fair Value: € 2,59 - 2,85 (twelve months) Target Price: € 2,6 Upside: 9% Rating: HOLD Market Cap (EurM)877 Shares Outstanding (M)372 Main ShareholderIMMSI Spa (53,6%) 2nd ShareholderDiego Della Valle (5%) Free float39% 52 weeks price change1,77 - 2,71 Beta vs FTSE MIB0,7

3. 3 COMPANY DESCRIPTION Biggest European motorcycle manufacturer. Two Business Units: 2W and LCV. Seven well-differentiated brands. Strong presence in developed countries. Growing focus on emerging countries (Asia).

4. 4 INDUSTRY OVERVIEW: 2W DEVELOPED COUNTRIES Scooters used for fast urban transportation. Motorcycles as recreational vehicles. Preference for power and design (premium vehicles). Flat registrations. The Japanese manufacturers (Yamaha and Honda) dominate the market in the EU and US. EMERGING COUNTRIES 2W serve family and work transportation purposes. Small size, low cost are paramount. Premium products have10% market share. Growing registrations. New Asian manufacturers are emerging.

5. 5 INDUSTRY OVERVIEW: LCV EUROPE LCV are used for cargo transportation in city centers. Key feature is small-size/high capacity ratio. Piaggio focuses on <2,5 tons. Market is declining, but Piaggio performed better than industry (-18% vs -20%) in 2009.INDIA LCV to overcome lack of infrastructure. Affordable and versatile vehicles. Piaggio is leader for 3W (+14 YoY in ’09). Growth expectations are 15-18% YoY. Piaggio’s share is 41% in 3W and 5% in 4W. Key competitor: Bajaj

6. 6 COMPETITIVE POSITIONING Piaggio focuses on 2W and LCV. In general, the market is dominated by Japanese manufacturers. Piaggio has 7 different brands, some are icons (Vespa). The strategy consists in premiumisation. Piaggio focuses on a well-defined niche, and is therefore relatively small if compared to the Japanese manufacturers

7. 7 FINANCIAL ANALYSIS: Link to European market is still strong

8. 8 FINANCIAL ANALYSIS REGISTRATIONS: Flat 2W and LCV in developed countries  strategy: maintain the market share. Growth is expected in emerging countries, especially thanks to: introduction of 2W in India in mid-2012 launch of new 2W designed for the Asian market development in the LCV (new engines, focus on 4W) PROFITABILITY PROFITABILITY: Improvement thanks to a larger share of units made in the Asian plants.

9. 9 DCF VALUATION PV of Free Cash Flow308 PV of Terminal Value1001 Estimated Enterprise Value1309 Net Financial Position346 Estimated Equity Value963 Nr. of shares (M)372 FAIR VALUE (EUR) 2,59

10. 10 MULTIPLE VALUATION P/EEV/SalesEV/EBITDA 20102011E2012E20102011E2012E20102011E2012E Honda Motor16,912,7511,22,21,31,1512,49,28,1 Mahindra & Mahindra 19,613,3511,750,40,950,84,67,055,65 Yamaha Motor19,213,3511,21,70,90,7510,46,95,85 Bajaj Auto23,612,88,10,4 0,396,85 Harley Davidson21,815,713,23,22,351,8515,510,98,35 Median19,613,3511,21,70,950,810,47,055,85 Piaggio385566149616611770191219238 Median EV740730734254315781416198915471390 NFP-346-338-323-346-338-323 Median Equity740730734219812411092164412091067 Number of shares372 Target Price1,963,343,25 AVERAGE TARGET PRICE2,85

11. 11 RISK ANALYSIS AND RATING WHY SLOW AND STEADY (DOES NOT) WIN THE RACE... Piaggio is still heavy focused on the flat European market. Asian countries are expected to grow, but Piaggio concentrates on a premium niche with little numbers (market share will remain approx. 2,5% in 2W in India and Vietnam). New 2W vehicles in Asia will be introduced only in 2011 (2012 in India). MAIN RISKS TO OUR ANALYSIS Negative impact on operating leverage as revenues slow down (-2% in revenues may impact up to -22% on EPS in 2013). Cyclicality of demand. Performance will be disappointing in the event of an economic setback. Regulations, especially in developed countries, may push the industry players towards eco-sustainable solutions. Exposure to emerging countries: weak enforcement of industrial property regulations may encourage product imitation by competitors. Food inflation in Asia may reduce the income share dedicated to transportation. For all these reasons, considered the fair value range between Eur 2,59 and Eur 2,85, we considered appropriate a 12-months target price of Eur 2,6 and a HOLD recommendation.

12. 12 Thank You For Your Attention!

13. 13 UNITS SOLD FORECAST

14. 14 SWOT ANALYSIS

15. 15 INCOME STATEMENT 2009A2010E2011E2012E2013E2014E2015E Net Sales1452145816231731183318821946 Other Sales37,237,638,038,438,939,439,9 Total Revenues 1487149616611770187219211986 Operating Costs-1284-1305-1442-1532-1614-1654-1707 EBITDA203191219238258267279 D&A-96-97-98-99-100-101-102 EBIT10694121138158166177 Net Fianancial income (Charges) -30-33 -32 Pre-Tax766188106126134145 Tax-27-23-34-40-48-51-55 Net Income49385565788390

16. 16 BALANCE SHEET 2009A2010E2011E2012E2013E2014E2015E Fixed Assets892902912922932962972 NWC172641567186101 Total Risk Funds -134 NET CAPITAL EMPLOYED 776794819844869914939 GROSS CAPITAL EMPLOYED 909920953978100310481073 Shareholder’s Equity 422446479518565615669 Net Financial Debt 352346338323302297268

17. 17 WACC

18. 18 SENSITIVITY ANALYSIS Growth Rate 0,5%1,0%1,5%2,0%2,5% EBITDA margin 15,5%2,712,923,163,453,78 15,0%2,542,742,973,243,55 14,5%2,382,572,783,033,32 14,0%2,222,392,592,823,10 13,5%2,052,212,402,622,87 13,0%1,892,042,212,412,64 12,5%1,721,862,022,202,42 12,0%1,561,681,831,992,19

19. 19 SENSITIVITY ANALYSIS Normalized Growth Rate 0,5%1,0%1,5%2,0%2,5%3,0% Normalized WACC 8,00%2,262,442,622,903,192,10 8,05%2,252,432,632,873,162,09 8,15%2,232,412,612,853,132,08 8,20%2,222,392,592,823,102,06 8,25%2,202,372,572,803,072,05 8,30%2,192,362,552,783,042,04 8,35%2,172,342,532,753,022,02 12,0%2,162,322,512,732,992,01