Alternative non-GAAP performance measures

In accordance with CESR/05-178b recommendation on alternative performance measures, in addition to IFRS financial measures, Piaggio has included other non-IFRS measures in its Report on Operations.
These are presented in order to measure more accurately the trend of the Group's operations and should not be considered as an alternative to IFRS measures.
In particular the following alternative performance measures have been used:

  • EBITDA: defined as operating income gross of amortisation/depreciation;
  • Gross industrial margin defined as the difference between net revenues and the cost to sell;
  • Cost to sell: this includes costs for materials (direct and consumables), accessory purchase costs (transport of incoming material, customs, warehousing), employee costs for direct and indirect manpower and related expenses, work carried out by third parties, energy costs, depreciation of property, plant, machinery and industrial equipment, maintenance and cleaning costs net of sundry cost recovery recharged to suppliers.
  • Consolidated net debt: gross financial debt, minus cash on hand and other cash and cash equivalents, as well as other current financial receivables. Consolidated net debt does not include other financial assets and liabilities arising from the fair value measurement of financial derivatives used as hedging and the fair value adjustment of related hedged items. The notes to the Consolidated Financial Statements include a table indicating the statement of financial position items used to determine the measure. 

For a comparison of 2013 results with previous years, Net Profit and Earnings Per Share for 2013 were recalculated, excluding the effect of non-recurring events (which are presented in full in section 46 "Significant non-recurring events and operations" of the Notes). Further profitability measures are defined as Adjusted Net Profit and Adjusted Earnings Per Share.