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IMMSI GROUP: BOARD APPROVES 2009 DRAFT FINANCIAL STATEMENTSEBITDA € 183.8 mln (+6.4% from 2008)EBITDA margin up from 10% in 2008 to 11.4% in 2009Profit before tax € 50.9 mln (+49.5% from 2008)Net profit € 16.2 mln (+14.1% from 2008)Tax € 20.7 mln (€ 9 mln in 2008)Net sales € 1,614.2 million (-7% from 2008)Parent company Immsi S.p.A.Net profit € 14.5 millionProposed dividend of 0.03 euro (no dividend in 2008) Milan, 19 March 2010 – At a meeting today in Milan chaired by Roberto Colaninno, the Immsi S.p.A. Board of Directors examined and approved the 2009 draft financial statements, to be presented to the shareholders' meeting convened for 27 and 28 April 2010, on first and second call respectively. Overall, the Immsi Group’s results for financial year 2009 were extremely positive in terms of operations and margins, despite the exceptionally complex macroeconomic scenario. Business and financial highlightsImmsi Group consolidated net sales for financial year 2009 totalled € 1,614.2 million (-7% from € 1,736.7 million in 2008). The main contributors were the Piaggio Group with € 1,486.9 million and the Rodriquez Cantieri Navali Group with € 121.6 million. EBITDA in 2009 was € 183.8 million (with the EBITDA margin rising to 11.4% from 10% in 2008), an improvement of 6.4% compared with 2008. EBIT amounted to € 83.4 million (5.2% of net sales, from 4.3% in 2008), an increase of 13% from 2008. Immsi Group profit before tax, including minority interests, amounted to € 50.9 million at 31 December 2009, an increase of 49.5% from € 34 million at 31 December 2008. After tax of € 20.7 million (€ 9 million in 2008, for a tax rate of 40.6% and 26.4% respectively), Immsi Group net profit for 2009 totalled € 16.2 million, an improvement of 14.1% from € 14.2 million in 2008. Net debt at 31 December 2009 totalled € 638 million, an increase of € 29.1 million compared with 31 December 2008, arising mainly from the year’s net investments totalling € 80.6 million, and dividends paid to minorities by Piaggio (€ 9.8 million), counterbalanced in part by cash flows on operations of € 61.7 million. In addition to these cash flows, the year saw share buy-backs on the market by Piaggio & C. S.p.A. for € 1 million. Also, Immsi sold 2.5 million Unicredit shares on the market, for proceeds of € 6.7 million. Immsi Group total shareholders' equity at 31 December 2009 was 620.6 million, including € 203 million of minority interests, compared with € 585.4 million at 31 December 2008. Information on Immsi Group operations and managementThe Immsi Group’s results for financial year 2009 reflected differing trends among the Group core businesses: industrial sector, shipbuilding, real estate. In the industrial sector, the Piaggio Group strengthened its direct operations on key markets in Asia, to report strong growth (an 85.9% rise in turnover in the two-wheeler business in Asia) sufficient to counterbalance slackening demand on traditional markets in Europe and North America. At global level, the Piaggio Group’s brand strength and capacity for technological innovation enabled it to boost market share in its key areas, reaching a 20% share in the EMEA area in the two-wheeler business (+2 p.p. from 2008). In commercial vehicles, the Group improved its market shares in Europe and made positive progress in Italy, while turning in a brilliant performance in India, where turnover rose by 17.5%. Piaggio Group consolidated net sales in 2009 totalled € 1,486.9 million (-5.3% from € 1,570.1 million in 2008). The 2009 industrial gross margin was € 467.1 million, in line with € 468.8 million in 2008, but reflecting a significant increase with respect to turnover (from 29.9% to 31.4%). Consolidated EBITDA was € 200.8 million in 2009, a strong improvement from € 189.1 million in 2008, with the EBITDA margin rising from 12.0% to 13.5%. 2009 EBIT was € 104.4 million, an increase of 10.5% over € 94.5 million in 2008 after depreciation and amortisation charges of € 96.4 million (+1.9% on 2008). Profit before tax in 2009 amounted to € 74.1 million, rising by 24.3% from 2008; net profit for 2009 was 47.4 million, an increase of 9.4% compared with 2008, after income tax expense of € 26.7 million. Piaggio Group consolidated net debt decreased from € 359.7 million at 31 December 2008 to 352.0 million at 31 December 2009. In the shipbuilding sector, the Rodriquez Cantieri Navali S.p.A. Group order book stood at approximately € 352 million at 31 December 2009; of the total, the Military division accounted for the largest amount, with orders for, among others, the refitting of 8 Gaeta Class minehunters for the Italian navy, the construction of 3 mine counter measures vessels for the Finnish navy, the construction of twenty-three 22 m patrol boats for Italy’s Guardia di Finanza police corps. At the Fast Ferries division, work continued on the order for 5 aluminium catamarans for the Sultanate of Oman, while the Yacht division proceeded with construction of three 41 m light alloy megayachts (from a design by Norman Foster for YachtPlus) and a 40 m mega-yacht. Net sales dropped by 24.6% in 2009 compared with 2008, to € 121.6 million. The slowdown arose largely as a result of negative performance in the international fast ferries and yacht sectors, while the Intermarine shipyard in Sarzana, active in the military sector, was forced to report production delays after the Magra river burst its banks on 21 January 2009. Further flooding occurred on 24-25 December 2009, throughout the Intermarine shipyard and offices. This delayed the completion of the company restructuring and relaunch. In the real estate sector, with specific reference to the subsidiary Is Molas S.p.A., which operates a tourism, hotel and sport complex in Pula (Cagliari, Sardinia), 2009 net sales were € 3.3 million, an improvement of approximately 12% on 2008 thanks to the strong growth in the hotel business. Is Molas S.p.A. has been working for some time on a major property and residential development project involving internationally renowned professionals architect Massimiliano Fuksas and golf course designer Gary Player, who have drawn up an articulated plan. In 2009 the Is Molas company focused on moving ahead with the approval procedures. With regard to the project for the restructuring of the Rodriquez shipyard in Pietra Ligure, which, following the purchase of an area of 15,300 m2, will include a tourist port, a yacht building and maintenance yard, residences and a hotel as well as areas and facilities for the local community, the technical and legal staff at Rodriquez Cantieri Navali began procedures with the Liguria Regional Authority and other authorities for project finalisation and approval in order to obtain the requisite licences. Significant events after 31 December 2009In March 2010 the Parent Company sold 10 million Piaggio shares to Banca IMI for a total amount of € 22.1 million, with a capital gain of approximately € 9.6 million. On 22 January 2010 the Piaggio Group signed an agreement with Enel to conduct a study on the mobility and recharging requirements of electric vehicles for corporate fleets and of hybrid scooters, with a series of joint pilot projects in a number of Italian cities. Outlook for 2010 As far as the outlook for the Immsi Group is concerned, in the industrial sector the Piaggio Group will focus on continuous improvement of competitiveness in all sectors. Industrial quality, product costs and productivity will continue to be the drivers for its operations in 2010, which will aim to increase sales of three/four-wheel commercial vehicles in India and in Europe. Particular attention will be paid to the growth of the Group’s motorcycle brands in Europe and the consolidation of its leadership position in the scooter business in Europe and America. Piaggio will also be expanding marketing operations for Vespa scooters in Vietnam, whose official market launch took place at the end of June 2009. During 2010 the Group will be making important new investments, notably on development of its new diesel engines and the production start-up of the new facility in India where the engines will be built. The shipbuilding sector (Rodriquez Cantieri Navali Group) is expected to report 2010 consolidated value of production in line with 2009, and an improvement in EBIT. With reference to the subsidiary Is Molas, the Environmental Impact Assessment administrative procedure should be completed in 2010 and the necessary building licences consequently obtained to enable the investment project to begin. On receipt of the approvals the subsidiary will commence marketing operations on the residential units and – depending on the response from the market– proceed with the construction of the hotel/tourism/residential complex. IMMSI S.p.A. The Parent Company Immsi S.p.A. reported a net profit for the year of € 14.5 million, compared with € 17.2 million for the year to 31 December 2008, largely as a result of the decrease in finance income in 2009. The parent company’s result, after income tax income of approximately € 0.5 million and finance costs of approximately € 4.7 million, consisted largely of dividends collected from the subsidiary Piaggio & C. S.p.A. for € 12.7 million, a gross capital gain of € 3.7 million on the sale of Unicredit shares in October 2009, and capital gains of € 1.2 million on the sale of Piaggio shares in January 2009. Proposed dividend of 0.03 euroThe Board of Directors will ask the Immsi Shareholders' Meeting to approve payment of a dividend of 0.03 euro per share (no dividend was paid for financial year 2008), including the portion attributable to 2,670,000 own shares pursuant to art. 2357-ter of the Italian Civil Code, for an overall amount of max. € 10,215,900. Shares will trade ex dividend from 24/05/2010, and the dividend will be paid on 27/05/2010. * * *The manager in charge of preparing the company accounts and documents Andrea Paroli certifies, in accordance with paragraph 2 Art. 154 bis of Legislative Decree no. 58/1998 (Consolidated Financial Act), that the accounting disclosures in this press release correspond to the documentation, the ledgers and the accounting records. For further information:Immsi Press OfficeRoberto M. ZerbiVia Vivaio, 620145 Milan – Italy+39 02 762126.43/44/45/46press@piaggio.com