Thank you very much. Hello, everyone, and welcome to Piaggio Group First Quarter of 2026 Financial Results Conference Call.

The conference call today will be hosted by Alessandra Simonotto, Piaggio Group CFO, and myself. The slide supporting today's presentation are available on Piaggio Group website.

Before we begin, I would like to remind you that during today's conference call, we may use forward-looking statements based on Piaggio's current expectations and projections about future events. By their nature, these statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.

These factors are discussed in the safe harbor statements on page 2 of today's presentation. With that, I would like to turn the call over to Alessandra.

Good afternoon to everybody, and welcome to our conference call. After what you have already read in our presentation and in our press release, I should like to point only four things about our results on this first quarter.

The first one, volume and net sales. As you have already read, the volumes of this three months of 2026 are growing up versus the first quarter of 2025.

It is only 2,000 vehicles, yes, but it is the beginning of a different moving of the market and the consumer confidence on on our product. The Indian market has had a very good results in this period.

The APAC market is in line on our expectation. On EMEA market, we have done a different choice because we have preferred not to push up too much on our dealers, waiting the new product that are arriving in the market in April, May, and June, on top of that, the SR GT 400 and the new Vespa.

About the net sales, as you already read, we lost the 7.8%, but the effect is mostly connected to the forex. As our our region, India, APAC, US, are all connected to the to the forex of the USD.

Having in mind what the US dollar has done in this period, we have this negative effect on forex. This is not something connected on the sales or on promotion and bonus.

It's a healthy net sales result. The second one is the cash flow.

As you seen in the first quarter of 2026, we have absorbed only €19 million against the 58 of last year in the same period. As because a lot of you is in charge of analysis of Piaggio for a long time, the first quarter of the year is normally the the period in which we absorb the maximum part of the cash flow because we are buying component for the for the second and third quarter, and we are not such a lot of quantity of sales, and so, of revenue and credit and cashing.

In this period, having this result in for us is a very good is a very good result because we put in place from the beginning of September a lot of activities to contain inventory, first of all, and to get a better results on trade receivable. If you take a look of the result on trade receivable and and and inventory, you can see that we have done a good job, in my view, on on this part, very important, of our financial statement.

The third things is that in the EBIT result of the first quarter, we have two things that are one-off versus what happened in the first quarter of 2025. The first one are tariffs.

In the first quarter 2025, we do not have tariffs in US, while in the first quarter 2026, in this EBIT that you see in our closure, we have €1.5 million of impact for the new tariff in on the US market. The second one is that we have depreciate a a land in India after the closing of of an agree- on the basis of the agreement we had in in this period.

These two different things that more or less are €3 million have a negative impact on our EBIT. Without this, more or less, the EBIT of the end of period is equal in terms of percentage, but also in terms of absolute result to the one we had in 2025.

The fourth things is the April results. We have closed two weeks ago the month the month of April in all our market.

We have the first release of volume and revenues, and we have seen in April for all the market a a good results in terms of volume and revenues versus what happened in 2025, and it is in line also with a with our forecast and our budget. We seen the beginning of the second quarter in line on on with our expectation and and have with a better results on what happened last year.

On top of this, I think that it is helpful for for everyone of you to open the Q&A session and answer to your question. Thank you.

Thank you, Alessandra. Yes, we are ready to start the Q&A session.

April [unclear] the company's

Monica, sorry, Raffaele speaking. We missed the first part of your question.

Probably you were in mute, but can you ask again the question, please?

Yes. Thank you for anticipating the trend of April.

What I would like to say is if amid the model changeover, the company expects sell-in to materially outpace sell-out in the quarter, a material outpace, and if so, if you could provide a rough indication of the expected sell-in growth in units for the second quarter. My second question is on the Philippines.

Can you confirm whether sales from the new subsidiary will start contributing from the second quarter? The third question is on India.

India had a strong growth in the first quarter and the momentum keeps going. What are the group's expectations for light commercial vehicles and for the first half?

Thank you very much.

Monica, concerning your question on April sales, yes, I can confirm that we started Q2 in April on the right foot, and at group level, volumes grew double digit. Close to 20%.

Close to, sorry, can you repeat?

Close to 20%,

and

with a positive contribution from all geographic areas. This give us the confidence for the reminder part of the quarter, and also because we see demand trends to remain supportive as we have seen in Europe.

Concerning the second question, yes, we can confirm that the new company that we based in the Philippines are selling the first vehicle in April,

and

we have pretty good results in April. Then there was the third question concerning India, if we see a positive trend.

Yes, we see, yes.

Yes, we see the super positive trend, and you have seen also the market share in this days. We believe that this positive trend will be the same in the next months.

Sustainable.

Meaning that the second quarter in India is not the better for the seasonality of the weather, as you well know.

Yes. If I can squeeze another one is about the tax rate, which was quite high in the first quarter.

What is the group's expectation for the full year? Thank you.

Okay. As you well known, we use for the tax rate in all the quarter closure what we have defined for the budget of the year, and in this year, we have more or less considered an amount equal to 38 30 38.

In this first quarter, we have began with the same that we have put in our budget just like the accounting principle ask for anyone of us. We will work in the next months to reduce it.

Yes, this is one of our task, just like the financial position, the cash flow, and so far. In this moment, the safest view that we have is the 38.

Okay. Thank you.

everyone. Thank you for taking my question.

The first one, do you still see the 2026 company collected consensus aligned with your internal targets? The second one, if you can give us a little bit of color on pricing and cost inflation, how you see them entering into 2Q and for the remaining part of 2026.

Thank you.

About the consensus, we we believe and we think that the actual consensus is in line on our expectation. More or less, if you take in account the the two one-off that we have in the closing of the first quarter, the consensus and the results are more or less the same.

It's clear that no one of you have thought to the impact of the tariff in the first quarter of 2026 against the first quarter of 2025, and no one of you knows the the depreciation that we had in India. If we put in place if if we take in consideration the total amount of €3 million on EBIT of the first quarter 2026, we are in line with the consensus.

I think that in this moment, the consensus we have for the rest part of the year is in line on with our expectation, yes. On the second point, pricing and cost inflation, as Mr.

Colaninno has said in a different occasions, and he has confirmed this also today during our during our board of director, in this moment, we do not consider any growth from on our on the price of our products. We have to work, as we have already done till now in the last two or three years, to contain the cost of inflation in our products and to maintain our margin.

Is it clear that a gross margin of 31.6% is a very tough result, but as you have seen, more or less, we were able in the last quarter in the last year to maintain a 30%. We believe that the 30 35% is a safe results for us, and we we will work in the next period for maintain this this target, even if the cost of inflation is something that we have in mind and we have to approach.

Thanks.

Hello, everybody, and thank you for taking my question. The first one is on the price environment and competition in Europe.

Compared to few months ago, is something changed, and what are the drivers that led you to a stable market share year-over-year in a growing market? Second question is about the mix.

Do you expect a positive impact from new launches? Third one is on the international growth.

I read the press release, and you said to continue to pursue international growth. Do you have something more to share, maybe relating to South America or other international growth projects?

Thank you.

Raffaele speaking. Concerning your last question about Latin America, yes, we can confirm that South America remains a key strategic focus for the group, and we continue to see strong untapped potential and opportunities across those growing markets.

We are actively evaluating several initiatives, and we hope to provide a more detailed update in the near future. This for the last question.

About the prices environment, we do not change anything till now in our view. As I already said before, we do not have in our view to change something.

We have to maintain this level of pricing. We do not want to run in a cart where the only thing in mind is the reduction of pricing, just like the Chinese products and the Chinese competitors are working in.

This is not our product. This is not our market.

We are working on a different level, as you well understand, on the basis of our brand and our product. With Vespa, with Moto Guzzi, with Aprilia, we do not want to work in a different way, just what we have done until today.

Thank you. On mix, do you expect a positive impact from new launches?

Yes.

Yes, because as I have already said, the new launches are made with the Vespa and with the new SR GT 400 that is a product that we do not have until now, and it will cover a new part of the market that is a very interested segment. We believe and we see in our forecast that this launches will have a good results in our net sales and margin.

Okay. Thank you.

At this point, I think that the call is over, and as usual, if you have other questions, you can contact me later. Thank you very much for attending the call.