Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows, prepared in accordance with international accounting standards, is presented in the “Consolidated Financial Statements and Notes as of 31 December 2012”; the following is a comment relating to the summary statement shown.

Change in consolidated net debt 2012 2011 Change
In millions of euro
Opening consolidated net debt (335.9) (349.9) 14.0
Cash flow from operating activities 125.5 119.9 5.6
(Increase)/reduction in working capital 8.4 49.2 (40.8)
(Increase)/reduction in net investments (141.4) (111.3) (30.1)
Change in shareholders' equity (48.4) (43.7) (4.7)
Total change (55.9) 14.0 (69.9)
Closing consolidated net debt (391.8) (335.9) (55.9)
 

During 2012 the Piaggio Group used financial resources amounting to 55.9 million euro.

Cash flow from operating activities, defined as net profit, minus costs and non-monetary income, was equal to 125.5 million euro.  

Working capital generated a cash flow of 8.4 million euro; in detail:

  • the collection of trade receivables used financial flows for a total of 2.5 million euro;
  • stock management generated financial flows for a total of approximately 15.9 million euro;
  • supplier payment trends generated financial flows of approximately 17.7 million euro;
  • the movement of other non-trade assets and liabilities had a negative impact on financial flows by approximately 22.7 million euro.

Investment activities involved a total of 141.4 million euro of financial resources. Investments refer to approximately 40.5 million euro for capitalised research and development costs and approximately 97.5 million euro of plant, property and equipment and intangible assets, mainly relative to the new spare parts warehouse, the completion of the Vespa plant in India and the development of the engine plant in Vietnam, in addition to 11.3 million euro relative to the acquisition of Tecnocontrol.

The impact of the distribution of dividends in 2012 on cash flow was equal to 29.9 million euro.

As a result of the above financial dynamics, which involved a cash flow of 55.9 million euro, the net debt of the Piaggio Group amounted to -391.8 million euro.