Piaggio Group

1Half 08 Operating Results

Conference Call
Milan, July 31st 2008

Disclaimer

THESE SLIDES HAVE BEEN PREPARED BY THE COMPANY SOLELY FOR THE USE AT THE ANALYST CONFERENCE CALL ON PIAGGIOS FIRST HALF 2008 CONSOLIDATED RESULTS.

THE INFORMATION CONTAINED HEREIN HAS NOT BEEN INDEPENDENTLY VERIFIED. NONE OF THE COMPANY OR REPRESENTATIVES SHALL HAVE ANY LIABILITY WHATSOEVER IN NEGLIGENCE OR OTHERWISE FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THESE SLIDES OR THEIR CONTENTS OR OTHERWISE ARISING IN CONNECTION WITH THESE SLIDES ORANY MATERIAL DISCUSSED DURING THE ANALYST CONFERENCE CALL.

THIS DOCUMENT IS BEING FURNISHED TO YOU SOLELY FOR YOUR INFORMATION AND MAY NOT BE REPRODUCED OR REDISTRIBUTED TO ANY OTHER PERSON.

THE INFORMATION CONTAINED HEREIN AND OTHER MATERIAL DISCUSSED DURING THE ANALYST CONFERENCE CALL MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT THE COMPANYS BELIEFS AND EXPECTATIONS. THESE STATEMENTS ARE BASED ON CURRENT PLANS, ESTIMATES, PROJECTIONS AND PROJECTS,AND THEREFORE YOU SHOULD NOT PLACE UNDUE RELIANCE ON THEM.

FORWARD-LOOKING STATEMENTS INVOLVE INHERENT RISKS AND UNCERTAINTIES. WE CAUTION YOU THAT A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL RESULTS TODIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT.

SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO: TRENDS IN PIAGGIOS CORE BUSINESS, ITS ABILITY TO IMPLEMENT COST-CUTTING PLANS, FUTURE CAPITAL EXPENDITURES.

Financial Statement (IFRS-IAS)

1 Half 08 Vs 1 Half 07 (mln )

Piaggio Group operating results (IFRS-IAS)

1 Half 08 Vs 1 Half 07 Net Sales
(mln ) 968,6 900,3 (mln ) 145,9
-7,0% % margin 15,1% -12,2% 14,2%

EBITDA

128,2

1H 07

1H 08

1H 07

1H 08

EBIT
(mln ) 106,4 81,8
% margin 11,0% -23,1% 9,1% % margin

Net Income
(mln ) 51,5
5,3% -8,2%

47,3
5,3%

1H 07

1H 08

1H 07

1H 08

NFP
(mln ) (277,1) 1H 07
+9,6%

(326,9) 1H 08
4

Total Sales trend (by Geographic Area)

1 Half 08 Vs 1 Half 07 (mln ) 968,6
RoW Asia Pacific India
46,2 8,9 23,4 11 1 ,3
-7.0%

900,3
+23.4% +15.8% +10.2% -2.0%

1 0,9 27,1 1 22,6 45,3

Americas

RoE

434,8
-10.5%

389,3

Italy

343,8

-11.3%

305,0

1H 07

1H 08
5

Net Sales trend (by Business, by Brand)

1 Half 08 Vs 1 Half 07 (mln )

-7.0%

-7.0%

968,6
31, 8 Others Spare Parts 99, 8

900,3
n.s. -1.8% +10.1% 0.8% -11.5%

968,6
Guzzi Aprilia Derbi
50,4 21 3,1 37,3

900,3
-30.3% -16.1% +7.4%

13, 4 98, 0 115, 4 66, 1 138, 7

35,2 1 78,9 40,1

Ltv India Ltv Eu Moto

104, 8 65, 6 156, 7

Scooter

-8.1%

Piaggio
468, 8

667,7

-3.8%

646,2

509, 9

1H 07

1H 08

1H 07

1H 08

Total Volumes trend (by Business, by Brand)

1 Half 08 Vs Half 07 (000 units, sell in)

-5.8%

-5.8%

395,8
Altro LTV Eu LTV India Moto
6,8 10,7 73,6 42,8
n.s. -1.6% +10.4% -6.9%

372,7
1,8 10,5 81,3 39,8

395,8
Guzzi Aprilia Derbi
6,2 73,6 21,0

372,7
-31.5% -14.0% +2.0%

4,2 63,3 21,5

Piaggio Scooter
261,9
-8,6%

294,9

-3.8%

283,7

239,3

1H 07

1H 08

1H 07

1H 08

EBITDA Evolution (IFRS-IAS)

1 Half 08 Vs 1 Half 07 (mln )

145,9
6,8

128,2

(20,4)

(4,1)

EBITDA Margin

15,1%

14,2%

1H 07

Gross Margin

Opex

Amortiz.

1H 08

Net Result Evolution (IFRS-IAS)

1 Half 08 Vs 1 Half 07 (mln )

51,5

20,7

47,3

(24,6)

(0,3)

1H 07

Ebit

Financial Expenses

Tax

1H08

Group Balance Sheet (IFRS-IAS)

1 Half 08 Vs 1 Half 07 (mln )

10

PFN Evolution (IFRS-IAS)

1 Half 08 Vs YE 07 (mln )
Receivable: Inventories: Payables: Others : (170,9) (56,9) 177,1 31,6

- Warrant: - Buy Back: - Dividends:

(64,2) (2,9) (23,3)

(269,8)

86,7

(19,1)

(37,6)

3,9 (91,0) (326,9)

YE 07

Operating Cash Flow

Working Capital

Capex

Disinvest. and others

Equity

1H 08

11