Pininfarina : Quarterly Report

PRESS RELEASE

Cambiano (TO), 13 May 2014 - The Board of Directors of Pininfarina S.p.A., chaired by Paolo
Pininfarina, met today and approved the Group's interim financial report for the first quarter of
2014.
The Q1 2014 and Q1 2013 key financial figures of the Pininfarina Group are as follows:

* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2013.

EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.

Pursuant to article 154-bis.2 of the Consolidated finance act, the manager in charge of financial reporting, Gianfranco Albertini, states that the financial disclosures provided in this press release are consistent with the relevant documentation, ledgers and accounting records.

The most significant issues that arise from a comparison of the Q1 2014 and Q1 2013 consolidated financial figures are as follows:
- the value of production (revenue) increased by 9%, mainly due to engineering activities carried out in Italy and the significant contribution provided by the German operations and industrial design activities;
- EBITDA is now positive compared to the gross operating loss recognised in the first quarter of
2013. Although it is still negative, EBIT improved by 74% compared to the corresponding period of the previous year;
- the loss for the period more than halved compared to that for the three months ended 31 March
2013, including as a result of the contraction in net financial expense;
- net financial debt worsened compared to 31 December 2013, mainly as a result of the advances due for a number of tax disputes, in addition to net working capital trends. Equity reduced compared to the previous year end, due to the loss for the period.
The headcount decreased from 783 at 31 March 2013 (excluding the 32 employees of Pininfarina
Maroc, which was sold in December 2013) to 760 (-2.9%).

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PRESS RELEASE

Operations segment
In addition to the sale of spare parts for cars manufactured in previous years and business lease income, this segment includes the costs of the support functions of the parent, Pininfarina S.p.A.. It recognised value of production of €1.6 million, compared to €2.4 million in the first quarter of 2013. The decrease is mainly attributable to the smaller business lease income (the related three-year agreement has been renewed for 2014-2016) and the reduced turnover of spare parts. The decrease in value of production has affected segment EBIT, which worsened by €0.9 million to a negative €2.7 million, compared to an operating loss of €1.8 million for the first quarter of 2013.
Services segment
This segment, comprising the design and engineering businesses, recognised value of production of €19.5 million, up by €14.7% compared to the first quarter of 2013 (€17 million). Segment EBIT amounted to a positive €2.2 million, a sharp increase from the €72 thousand operating loss for the three months ended 31 March 2013. All group companies contributed to the increase, especially Pininfarina S.p.A..

1) The tables showing the net financial debt of the Pininfarina Group and Pininfarina S.p.A., with separate classification of current and non-current items, are attached hereto.
2) The Group has no past-due liabilities (of a commercial, financial, tax or social security nature). No actions against the Group have been filed by creditors.
3) The tables showing the parent's and Group's related party transactions are attached hereto.
4) Compliance with the financial covenants in force for the current reporting year will be checked when the annual consolidated financial statements at 31 December 2014 are approved. At present, the Group is expected to comply with such covenants.
5) The parent's debt restructuring plan is proceeding in accordance with the current agreements.
6) The business plan's implementation progress is unchanged with respect to that described in the directors' report on the 2013 annual financial statements.
The key financial figures of the parent, Pininfarina S.p.A., are summarised below.:

* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2013.

EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.

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PRESS RELEASE

As already disclosed by the directors to the shareholders on 29 April 2014, as a result of its failure to comply with the 2013 consolidated EBITDA covenant (which could have triggered the termination clause of the Rescheduling Agreement in force with the lending institutions), Pininfarina S.p.A. requested that the lending institutions waived their rights arising from the contractual breach. On 2 April 2014, the agent bank officially informed the parent of the formal consent of all lending institutions to its request.
There are no other significant events that occurred after the reporting date.

Contacts: Pininfarina:

Gianfranco Albertini, CFO and Investor Relators, tel. +39.011.9438367

Francesco Fiordelisi, Corporate and Product Communication Manager, tel. +39.011.9438105/335.7262530

Carolina Mailander, tel. +39.011.5527311/335.6555651

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PRESS RELEASE

The reclassified financial statements group the figures presented in the legally-required statements to improve their understanding, without however changing their presentation logic.
The terms "EBITDA" and "EBIT" as used in the reclassified financial statements are the "operating profit or loss", gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions and "operating profit or loss" presented in the IFRS financial statements.

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PRESS RELEASE

(€'000)

Q1 2014 % Q1 2013 % Variation 2013

Revenue from sales and services 17,399 82.57 15,687 80.95 1,712 69,064

Change in inventories and contract work in progress 2,450 11.63 1,992 10.28 458 3,325

Other revenue and income 1,222 5.80 1,699 8.77 (477) 7,369

Value of production 21,071 100.00 19,378 100.00 1,693 79,758

Net gains on the sale of non-current assets 7 0.03 - - 7 1

Materials and services (*) (8,008) (38.00) (7,988) (41.22) (20) (35,295) Change in raw materials (550) (2.61) (52) (0.27) (498) 494

Value added 12,520 59.42 11,338 58.51 1,182 44,958

Labour cost (**) (12,262) (58.19) (12,272) (63.33) 10 (47,535)

EBITDA 258 1.23 (934) (4.82) 1,192 (2,577)

Amortisation and depreciation (833) (3.95) (847) (4.37) 14 (3,392) (Additions to)/utilisation of provisions and impairment losses 27 0.13 (86) (0.44) 113 2,634

EBIT (548) (2.60) (1,867) (9.64) 1,319 (3,335)

Net financial expense (890) (4.22) (1,442) (7.44) 552 (5,776) Share of profit (loss) of equity-accounted investees 1 0.01 (3) (0.0161) 4 (3)

Loss before taxes (1,437) (6.82) (3,312) (17.09) 1,875 (9,114) Income taxes (84) (0.40) (162) (0.84) 78 (112) Loss from continuing operations (1,521) (7.22) (3,474) (17.93) 1,953 (9,226) Profit from discontinued operations - - 25 0.13 (25) (1,161)

Loss for the period (1,521) (7.22) (3,449) (17.80) 1,928 (10,387)

(*) Materials and services are net of utilisations of the provisions for product warranty and risks (€234 thousand and €17 thousand for the first quarters of 2013 and 2014, respectively).

(**) Labour cost is net of utilisations of the restructuring and other provisions (€292 thousand and €90 thousand for the first quarters of

2013 and 2014, respectively).

As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the interim consolidated financial statements with those in the reclassified schedules is provided below:

- Materials and services include raw materials and components, other variable production costs, external variable engineering services, exchange rate gains and losses and other expenses.

- Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and equipment and investment property.

- (Additions to)/utilisation of provisions and impairment losses include additions to/utilisation of provisions, impairment losses and inventory write-downs.

- Net financial expense comprises net financial expense and dividends.

Following the sale of the investment in the subsidiary Pininfarina Maroc SAS, effective as from 1 December 2013, the Q1 2013 figures have been restated in accordance with IFRS 5 to separate the results of discontinued operations as from 1 January 2012.

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PRESS RELEASE

(€'000)

Net non-current assets (A)

31.03.2014 31.12.2013 Variation 31.03.2013

Net intangible assets 2,658 2,772 (114) 3,082

Net property, plant and equipment and investment property 62,537 63,008 (471) 64,452

Equity investments 304 303 1 353

Total A 65,499 66,083 (584)67,887

Working capital (B)

Inventories 8,487 6,587 1,900 4,713

Net trade receivables and other assets 30,802 23,175 7,627 28,657

Assets held for sale - - - -

Deferred tax assets 1,001 947 54 929

Trade payables (14,128) (15,211) 1,083 (11,638) Provisions for risks and charges (2,561) (2,698) 137 (6,374)

Other liabilities (*) (6,136) (5,911) (225)(6,799)

Total B 17,465 6,889 10,5769,489

Net invested capital (C=A+B) 82,964 72,972 9,99277,376

Post-employment benefits (D) 7,074 7,146 (72) 7,151

Net capital requirements (E=C-D) 75,890 65,826 10,064 70,225

Equity (F) 27,896 29,419 (1,523) 36,344

Net financial debt (G)

Non-current loans and borrowings 6,220 7,442 (1,222) 91,867

Net current financial (position) debt 41,774 28,965 12,809(57,986)

Total G 47,994 36,407 11,58733,881

Total as in E (H=F+G) 75,890 65,826 10,064 70,225

(*) Other liabilities include the following items: deferred tax liabilities, other financial liabilities, current tax liabilities and other liabilities.

(€'000)

31.03.2014 31.12.2013 Variation 31.03.2013

Non-current held-to-maturity investments - - - -

Non-current finance lease liabilities - - - (48,960)

Non-current bank loans and borrowings (7,322) (7,522) 200 (42,958)

Non-current loans and borrowings (6,220) (7,442) 1,222 (91,867)

NET FINANCIAL DEBT (47,994) (36,407) (11,587) (33,881)

Cash and cash equivalents include a restricted account of €5,000,000.

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PRESS RELEASE

(€'000)

Q1 2014 % Q1 2013 % Variation 2013

Revenue from sales and services 10,430 82.57 9,002 77.44 1,428 38,155

Change in inventories and contract work in progress 1,276 10.11 1,277 10.98 (1) 3,469

Other revenue and income 925 7.32 1,346 11.58 (421) 6,423

Internal work capitalised - - - - - -

Value of production 12,631 100.00 11,625 100.00 1,006 48,047

Net gains on the sale of non-current assets 7 0.05 - - 7 ( 769) Materials and services (*) (6,621) (52.42) (6,370) (54.79) (251) (29,153) Change in raw materials (550) (4.35) (52) (0.45) (498) 494

Value added 5,467 43.28 5,203 44.76 264 18,619

Labour cost (**) (6,386) (50.56) (6,619) (56.94) 233 (24,592)

EBITDA (919) (7.28) (1,416) (12.18) 497 (5,973)

Amortisation and depreciation (632) (5.00) (643) (5.53) 11 (2,562) (Additions to)/utilisation of provisions and impairment losses 29 0.23 22 0.19 7 1,257

EBIT (1,522) (12.05) (2,037) (17.52) 515 (7,278) Net financial expense (898) (7.11) (1,425) (12.26) 527 (5,109) Loss before taxes (2,420) (19.16) (3,462) (29.78) 1,042 (12,387) Income taxes 50 0.40 - - 50 463

Loss for the period (2,370) (18.76) (3,462) (29.78) 1,092 (11,924)

(*) Materials and services are net of utilisations of the provisions for product warranty and risks (€234 thousand and €17 thousand for the first quarters of 2013 and 2014, respectively).

(**) Labour cost is net of utilisations of the restructuring and other provisions (€292 thousand and €90 thousand for the first quarters of

2013 and 2014, respectively).

As required by Consob resolution no. DEM/6064293 of 28 July 2006, a reconciliation of the data in the interim separate financial statements with those in the reclassified schedules is provided below:

- Materials and services include raw materials and components, other variable production costs, external variable engineering services, exchange rate gains and losses

and other expenses.

- Amortisation and depreciation comprise amortisation of intangible assets and depreciation of property, plant and equipment and investment property.

- (Additions to)/utilisation of provisions and impairment losses include additions to/utilisation of provisions, impairment losses and inventory write-downs.

- Net financial expense comprises net financial expense and dividends.

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PRESS RELEASE

(€'000)

31.03.2014 31.12.2013 Variation 31.03.2013

Total G 50,641 39,227 11,41434,668

Total as in E (H=F+G) 80,392 71,348 9,044 75,234

(€'000)

31.03.2014 31.12.2013 Variation 31.03.2013

Loans and borrowings - associates and joint ventures (264) (264) - (248)

Current portion of bank loans and borrowings (37,802) (37,319) (484)(15,529)

Net current financial position (debt) (47,747) (35,224) (12,523)52,066

Non-current loans and receivables - third parties - - - - Non-current loans and receivables - associates and joint ventures 4,128 3,019 1,109 4,684

Non-current held-to-maturity investments - - - - Non-current finance lease liabilities - - - (48,960)

Non-current bank loans and borrowings (7,022) (7,022) - (42,458)

Non-current loans and borrowings (2,894) (4,003) 1,109(86,734)

NET FINANCIAL DEBT (50,641) (39,227) (11,414) (34,668)

Cash and cash equivalents include a restricted account of €5,000,000.

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PRESS RELEASE

The table below, which is presented pursuant to Consob communication no. DEM/6064293 of 28 July 2006, summarises related party transactions, including intragroup transactions. These transactions were carried out at market conditions, consistent with the nature of the goods exchanged or services provided. They were neither atypical nor unusual for the purposes of the above-mentioned communication.

Commercial Financial Operating Financial

Assets Liabilities Assets Liabilities Revenue Expense Income Expense

Pincar S.r.l. 971,484 - - - 7,484

Goodmind S.r.l. - - 130,845 - 6,000 - 845 -

Total - - 1,102,329 - 6,000 - 8,329 -

Commercial Financial Operating Financial

Assets Liabilities Assets Liabilities Revenue Expense Income Expense

Pincar S.r.l. - - 971,484 - - - 7,484 - Pininfarina Extra S.r.l. 32,952 5,985 603,543 263,560 78,038 3,131 - - Goodmind S.r.l. - - - - 6,000 - - - Pininfarina Deutschland GmbH - - 303,222 - - - 1,046 - mpx Entwicklung GmbH Monaco - 908,967 2,250,000 - - 908,967 8,066 - Pininfarina Automotive Engineering (Shanghai) Co Ltd 426,944 49,357 - - 28,557 47,580 - -

Total 459,897 964,309 4,128,249 263,560 112,595 959,678 9,112 -

The financial assets and liabilities with Pininfarina Extra S.r.l. relate to the domestic tax consolidation agreement.

In addition to the above figures, Studio Professionale Pavesio e Associati, related to the director Carlo Pavesio, provided legal assistance to the parent for total fees of €205,608 and Pantheon Italia S.r.l., related to the director Roberto Testore, provided commercial assistance for total fees of €17,945.

Fees to the parent's directors and statutory auditors for their respective duties are as follows:

(€'000)

Q1 2014 Q1 2013

Directors 154 154

Statutory auditors 26 26

Total 180 180

The total fees to Pininfarina S.p.A.'s key management personnel approximate €0.2 million for the first quarter of 2014.

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