Consolidated statement of financial position

Statement of financial position As of 31 December 2012 As of 31 December 20114 Change
In millions of euro
Statement of financial position
Net working capital (81.1) (72.7) (8.4)
Net tangible assets 321.0 274.9 46.1
Net intangible assets 661.0 649.4 11.5
Financial assets 6.7 2.6 4.0
Provisions (75.9) (72.1) (3.8)
Net capital employed 831.7 782.1 49.6
Net Financial Debt 391.8 335.9 55.9
Shareholders’ equity 439.9 446.2 (6.3)
Sources of funds 831.7 782.1 49.6
Minority interest capital 1.2 1.2 0.1
4_ For a better understanding of the trend of other receivables/payables, deferred tax liabilities (previously recognised under “Provisions”) have been reclassified under “Net working capital”, where they can be offset.
 

Net working capital as of 31 December 2012 was equal to – 81.1 million euro, generating a positive cash flow of approximately 8.4 million euro in 2012. Specifically, net working capital is defined as the sum of trade receivables, inventories, trade payables and other non-trade assets and liabilities. During 2012, in a particularly challenging market context, the Piaggio Group was able to maintain a balance in net working capital, thanks above all to a careful management in the collection of trade receivables, and to a major focus on inventory management and optimisation and the implementation of new sales and supply chain financing agreements, for trade payables. Under this item, deferred tax liabilities (previously recognised under the item "Provisions") were reclassified, for a better understanding of the trend of other receivables/payables. The statement of financial position as of 31 December 2011 was consequently reclassified for a uniform comparison.

Plant, property and equipment comprising plant, property, machinery and industrial equipment, net of accumulated depreciation and assets held for sale, amounted to 321.0 million euro as of 31 December 2012, with an increase equal to 46.1 million euro compared to 31 December 2011. This increase is due to the considerable volume of investments (equal to approximately 88.2 million euro compared to 61.8 million euro in the previous year) mainly targeting plant and machinery, buildings and industrial equipment, and principally concerning the new spare parts warehouse, completion of the Vespa plant in India and development of the engine plant in Vietnam, while depreciation was equal to approximately 37.0 million euro. The value adjustment of the balance sheet item to the exchange rate in effect at the end of the reporting period generated a decrease in the carrying amount of approximately 4.8 million euro.  

Intangible assets, comprising capitalised development costs, costs for patents and know-how and goodwill arising from acquisition/merger operations carried out within the Group in recent years, amounted to 661.0 million euro, with an increase of approximately 11.5 million euro compared to 31 December 2011. This increase is mainly due to the positive difference between significant investments of the year equal to approximately 59.6 million euro, mainly concerning product development (40.5 million euro) and patent/know how rights (18.1 million euro) and amortisation amounting to approximately 42.6 million euro.

Financial assets, defined as the sum of “investments” and “other non-current financial assets" totalled 6.7 million euro. The increase refers to the equity valuation of the Zongshen Piaggio Foshan joint venture (3.5 million euro).  

Provisions, comprising retirement funds and employee benefits, other long term provisions and the current portion of other long term provisions, totalled 75.9 million euro, registering an increase compared to 31 December 2011 (72.1 million euro).

As fully described in the next section on the “Consolidated Statement of Cash Flows”, net financial debt as of 31 December 2012 was equal to 391.8 million euro, compared to 335.9 million euro as of 31 December 2011. This difference of approximately 55.9 million euro is due mainly to the major investment programme of 2012, the distribution of dividends and policy to purchase treasury shares.

Shareholders' equity as of 31 December 2012 amounted to 439.9 million euro, down 6.3 million euro compared to 31 December 2011.