Piaggio & C. SpA (PIA) Earnings Call Transcript & Summary

Good day, and welcome to the Piaggio's First 9 Months of 2021 Financial Results Conference Call. [Operator Instructions] Mr. Raffaele Lupotto, Head of Investor Relations, is going to chair the meeting. Please go ahead.

Hello, everybody. Thank you very much for taking your time to follow this conference call. Joining me today are Roberto Colaninno, Chairman and Chief Executive Officer; Michele Colaninno, Chief of Strategy and Product; Alessandra Simonotto, Chief Financial Officer; and myself. [indiscernible] this call at piaggiogroup.com website. Before starting the presentation, I need 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, forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to be materially different. Also, I remind you that the press has been invited to participate in this conference call in a listen-only mode. Now I would like to turn the conference over to Roberto Colaninno.

Yes. Good afternoon to everybody. I want to summarize the situation as after 9 months, where the results that has achieved for me is considers very good in relation with the international situation and what is going during this month -- during this period of time. During this period time, as you know, all the works was obliged to manage difficulty in different situations, especially materials, chips, transportation cost and so on. Also, Piaggio was obliged to go crossed the situation, but we have increased the sales in a very good way, in some area unexpected as China and Indonesia, where we have achieved results out of our forecast. EMEA was going very good. The results of all Europe -- in all country in Europe was in line and sometime more than in line of our budget. And the surprise to me is that even America or United States, generally speaking, the big result that we achieved is the growing of bikes. Even Aprilia and Moto Guzzi have increased their sales in all the range of products. And what I can say, especially Guzzi have achieved results outside to the market. This situation of big increase of bikes as a change on the mix price and then the margin also very much in the 9 months' time. India, India has had the problems. India is -- was in a dramatic situation from the virus, now beginning the way to go out from this situation. The information that we get from India -- the last information we get from India, they are beginning to reopen the visit of the touristic. People living in India, they want to come to Europe, is not obliged to make a quarantine anymore. They are -- the shop beginning to be reopened. It seems to say that the situation will improve in a positive way. So if I consider this 9 months and the results that we get, I want to say that this is a good basis to have a good last 3 months. Last three months that for the situation, as I mentioned, we have taken this decision. We have stopped all the airline transportation. We have stopped. We have reduced dramatically the airline utilization to be ready to receive small components in time. And this has saved us already some millions. We are in discussion with 3 supplier, the question of problems with the supplier because the supplier don't deliver quality as we agreed. This will be in our intention to close down an agreement before the end of the year. And this would be means that we can have some extra positive -- extra profit to put in our EBITDA. We consider the possibility to have a closing deal between EUR 8 million to EUR 12 million. This would be -- it's not included in the 9 months results. So if we are able to find a solution for that and also this part of into the results of the last quarter of the year. In term of sales, we see we are extremely positive for the -- due to the new products that we launched during this period. We have in a way to present Tuareg in the next 2 weeks. Tuareg is a premium bike. And I want to say, very attractive bikes, very attractive design. The results -- the first results [indiscernible] the market is very, very positive. And we expect a good presales campaign in that area. We are in line with the new products that remain to present, and we -- that this will be very positive for the sales in, generally speaking, in America, where we are very surprised about the bikes successful story during this year. But what surprise to me is the new Indonesia plant. As you know, when we're talking -- when we meet the first time this year, I announced the plan to open an Indonesia plant. This is a completely on time, and the results on these investments is that we have improved the sales on Indonesia market that is million and millions of people in an unpredictable rate. And this give a very improvement on Asia market, where the Thailand, Vietnam, Indonesia, Philippines and all the other areas that is in line. and the export to China is over the budget and is over the budget also the margin of these sales. So the area of Asia, the investments that we've done in Vietnam generated the explosion of sales in all the area round. Never forget that now we have a big plant in India, in Vietnam, in Indonesia and in China. China, as you know, we produced Piaggio One very beginning after the first problems of there. Normally, we have to manage when we launch new products. Now the production is regularly, and we are working this new electrical small vehicle that is after the Vespa, is the second scooter full that we are presented in the market on this last weeks. The reason of the market for this type of product is very good. And we expect it to be able to deliver a good number of Vespas from now to the end of the year last. So for sales, very positive in term of quantity, in term of mix price and in term of margin. Now we see particular personal decision is to follow the flow of the, what we call, marginal of the production. So the production margin that is for me in index fundamental to understand if the EBITDA can go better or not. I believe that in this area, we have a lot of things to do. One of the way to do already some decisions that I took in the last month. I'm expected to improve around 2 points this margin. Two point means to the point of sales, can give -- to make easy the calculation of that. Naturally, this is a target, my personal target that I want to achieve from now to the end of the year. We will take some severe decision respectively to the people. I want to increase productivity. I want to create the labor. I want to delever in other people the works this. And I want to reduce all their non-productivity time area. Naturally, I know that the time is short. I know that is not underway. But I believe that to have the good reason to think that it's possible to achieve that. Naturally, after that, the staff people that are working in the financial area is ready to control the reduction of all the other expenses, especially the general expenses, where I've had to these people that I am in position to receive a reduction for this line of expenses, some percental. It is not -- I am not ready to consider some decision people by people. I have no worries about debt. I believe that the bank debt will be reduced again by the end of the year. And as the cash flow, I consider cash flow now very, very, very important because my personal opinion is that next year and the following year will be an interest rate increase, will be some difficulty to find the money in the market, some decision of the Central Bank will take some severe solution on that. And so I look particularly the cash flow, and they say that I give the target to everybody to reduce the debt more than what we have done until now. This is reflected to the investments. And also I want to revise some investment for next year to reduce investments only what is necessary in line with the market evolution. So we confirm the investment that we have done until now. We confirm the electrical -- all the electrical investments to delivery on time, the big change on the electrical side. We have done tremendous work this year in Piaggio on electrical investments. And I want to say that I was very positive to revise that people, investments and all new technology on electrical side is more of what I expected there. The people understand what is -- what means change from thermic area to electrical area. I want to say that the top people, that is totally responsible for this area, responded dramatically well to all the problems that we have to manage. So I want to say that Piaggio is online with the request of the European Commission and what is -- and what -- all the target that I fixed to achieve by 2025. So I want to say from the electrical sided point of view, either financial investments, either people or know-how and all the organization, we are in perfect in budget. And for quality, we are over the budget on this year. So I'm expected to close down a very good year. We are working for the budget into next year. I want to say the budget of next year, as you know, better than me, is problems everywhere, especially for the debt of the -- of public debt that all the countries obliged to do from the pandemic. I don't want to say that India will be paralyzed next year. But anyway, I believe that the worst is back. And what we're looking at this is something positive, naturally more difficult, naturally requirement, human resource capable to understand the new situation. I want to increase the international relation, keep relation, good relation with everybody, with India, with Asia, with China, with America, with Europe because to say that based on this experience, the results will be only more good than this year or better than this year.

Okay. Thank you very much. And now I think that we can go with Alessandra Simonotto.

Okay. Good afternoon, everybody. We can start with the comment about the plans that we have already found on our Internet slide. So we can start with the slide of Page 3 with a short comment on our highlights. So as you can see despite the new way of lockdowns, back, as you know, we have to face the due from May to October in Asia, specifically in Vietnam, in Indonesia and in India. And despite of raw materials and freight costs, as already Mr. Colaninno said for over and over about that, we achieved all-time high cash generation in all key metrics at the peak level. So as you can see, net sales increased by 32.7% from EUR 994 million of 9 months 2020 to EUR 1,319 million in 2021. The EBITDA increased by 28% -- and 28.5% from EUR 150 million of 9 months 2020 to EUR 193 million at the end of September 2021. In terms of net debt, we -- as you can see in the slides and that you have already had this morning, we achieved a significant improvement with respect to the EUR 445 million of September 2020, recovering around EUR 72 million and closing 9 months 2021 at EUR 373 million. Comparing to the 9 months 2019, the net debt were of EUR 405 million. And so we have improved the results of more than EUR 32 million. On the following page 3 -- 4 slide, we have decided to highlight the very, very wonderful -- I can say in other way, the wonderful results at Moto Guzzi and Aprilia. As you can see, the volume and revenues of Moto Guzzi were in the first 9 months above our previous full year results. And about Aprilia, we can say that the 9 months results for volumes highest one since 2008 and the revenues at the highest to date. Page 5, all our brands in any case, grow very strong during this 9 -- in this 9 months for all products. So you can see that we can say that Vespa's growth more or less of more than 41% versus both 2020 and 2019. Piaggio has growth more than 23% versus 2020 and 16% versus 2019. Aprilia, as we can say -- as I have said before, growth of more 96% versus 2020 and 58% versus 2019. Last, Moto Guzzi, the revenues are higher than more of 63% versus 2020 and 39% versus 2019. Going to Page 6. Here, we have summarized our industry key demand trends. About EMEA and Americas, we can say that the transit momentum confirmed with demand were above the pre-pandemic levels from a combination of aversion towards public transport, the replacement cycle of vehicles and the macro recovery. So the market has grown from 2020 of more than 8.1%. Asia Pacific. Asia Pacific is growing more than 14%. And we can say that lingering impact of the pandemic drove more choppiness in demand trends so we can say that the ASEAN 5 market has an improving demand trend to get downward in Q2 -- in Q3, mostly hit by the effects of Vietnamese [indiscernible] lockdown measures, I already said before, which overshadowed Indonesia encouraging sequential improvement of 2020. About China. China ended up with demand well above 2020 and 2019 levels, although the positive trend slowed down as the year progressed. About India. India coming out of the shadow of COVID-19 in September -- at the end of September, more or less, with scooters firmly above 2020 and light commercial vehicles rebounded in Q3. Going to Page 7, we have -- we can find here an in-depth analysis of volumes by business. We can say that the net sales rallied to peak levels with all segments positively contributing, apart from India in LCV. Significant positive mix price effect retained across the year. With our 2 wheelers, EMEA and America has already Mr. Colaninno said before, we have had a strong sales momentum continued across the year also in the third quarter. And so the results that you can see intergrowth of more than [ 15.2% ]. Dealers’ stock kept below September 2019 level. And this is a very important formate for us and for our dealers. About 2 wheelers Asia Pacific. We can say that, as we already told before, there was [indiscernible] demand volatility, magnified by a positive price effect, driving revenues already in the full year 2020. And so as we can see in this slide volume grew more than [indiscernible] revenues grew more than 41.7%. About the India. India reached in this 9 months for the 2 years all-time high revenue with both Aprilia and Vespa brands significantly outstripping market trends. Going to commercial vehicles, we can say that about the CV, EMEA and Americas are reaching September 2021 the highest revenue since 2009, mainly driven by the successful launch of the NP6 vehicles. About the CV India, as already Mr. Colaninno said, here subdued performance mainly reflecting domestic market weakness. So this is the only segment in which we have a negative performance with volume going down for more or less 14.3% as you can see in the chart. Going to Page 8, the evolution by product. [indiscernible] information. This is the first time that we put in the slide another information so -- which is the composition of the volumes and [indiscernible]. Having the total volumes and having the total revenues of Piaggio, which is the composition of any single segment and the contribution of any single segment to reach our results. So we can say that light commercial vehicles ticking over, but 2-wheelers synchronized outstanding volume performance across segments, coupled with significant average price uplift. About scooters, where you can see a growth in volume of more than 29%, again, more than 34% if we look at the next page. Scotters Outstanding results driven by combined upsurge in all geographic areas and positive price effect. Notably, Vespa volumes and revenues surging also versus 2019 and I already said before. And Beverly posting sound growth also versus 2019, on the back of the successful launch of the new version in the latter part of Q1. Looking at motorbikes, eye-popping performance boosted by the success of the new product launches, the ongoing mix shift towards high-value segments along with market share gain by both Aprilia and Moto Guzzi, as we see in the fourth page of this information. Regarding commercial vehicles, revenues underpinned by the positive performance of the new Porter NP6. Okay. And now the EBITDA evolution, which is an information very important in the results for any one of us, which is a bridge from September '19-2020. In September 2020, we reached an EBITDA of more than EUR 160 (sic) [ 150 ] million. And as you have seen, the results of September 2021 is EUR 192.9 million, so more or less EUR 193 million. What that contributed to these results, the net sales effect have a positive contribution for more than EUR 101 million. There is another effect on the gross margin that you have seen is lower than last year for about EUR 18.6 million. In the -- this effect is mostly driven followed by one-off effects among which, as Mr. Colaninno already said before, EUR 4 million are connected to some recall campaigns started in July 2021 due to supplier mistakes and about which the supplier has already accepted the responsibility. So this containment cost will be restored in the next period. On the other side, we have had some temporary inefficient supply chain cost due to lockdown Covid-19 related situation in India and in Asia in the [indiscernible]. About cash OpEx. The cash OpEx has a negative contribution for more or less EUR 40 million, but this is only an effect connected to the highest volume and the -- against revenue year end so the weight of this cash OpEx lower if compared to the same period of 2020 and 2019. At Page 10, you can find an overall view of our P&L, but I think that we don't need any other explanation about this. And the other things that we have not commented [indiscernible] the one that we commented at the end of June. So we can go directly to the slide 11 in which we commented the net financial position evolution. So what we can say about our financial position. First of all, that I'm very excited of its results that the group has achieved at the end of September 2021, because we reached an amount of EUR 372 million. That is the best our expectation and our market for this year in the business. What contributed to these results? Strong free cash flow generation, first of all. And in this strong free cash flow generation, we can say the 2 most important things are the one that has to do is -- the first one is working capital cash generation, driven by containment of inventories and receivables, coupled with heightened efficiencies on payments -- on payables. About inventories, I can say that the inventory is higher than last year, but [indiscernible] of this period and the volume that we are expecting for the fourth quarter of the year. Our CapEx. CapEx setup of about EUR 14 million, consistent with the full year target driven by heightened focus on new product development that Mr. Colaninno already explained to you. Thank you.

Okay. Thank you, Alessandra. So now we are ready to answer the question you may have.

[Operator Instructions] The first question is from Monica Bosio with Intesa Sanpaolo.

I hope you can hear me. Thanks for the initial statements that make us more clear the picture by the end. The first question is market consensus is pointing to an EBITDA by year-end in the range of EUR 40 million to EUR 50 million. On the back of the rise of raw material cost and supply chain issues and considering that we are expecting some recovery of these costs, do you feel comfortable with this guidance range? Or do you believe that maybe it's more prudent to position at the bottom end of this range? And I did not catch very well, but are you going to recover the EUR 4 million one-off related to the payment by year-end or during the next year? And my second question is on APAC. The company is growing double digits. I was wondering if you can give us a flavor also for the next year? Do you expect to maintain this growth rate also for 2022? And the very last is on the electrification on the mobility. Are you going to launch a new electric scooter in over 2022 and if you can elaborate on the size of the market?

Monica, [indiscernible]. So as the CFO said before, we are reaching -- we are working to reach the low end part of the target that you gave us in the range so the ones you're mentioning.

On the recall campaign, we are working to recover that the same way in the end of the year or in any case, to find the solution with the supplier so that not to be a cause at the end of 2021.

It will not be caused? Okay.

Yes, we are working on this, then we are not alone in this direction. So about the APAC market was the second -- we are working on the budget and the 3-year plan as usually in this period. So we can say that we are putting in place a new investment in the new -- in the Indonesian market. And we see China that is growing year by year. And we are seeing that Vietnam is reopening this month more or less everywhere. So our expectation for APAC are clearly better than 2021.

And the very last question was on the...

I remember the last question was in mobility. We have launched, as Mr. Colaninno said before, the Piaggio One in May, but for some problems with the new product that is something that happened every time the product has arrived in Italy in September and it will be in our shops more or less between this month and the next one. We are working for new products, electrical products. We are working with -- in India on swappable battery Ape. And we are working on other scooters to explain to anybody what will be the limits of it. I can say...

I No problem. Just a quick follow-up housekeeping question. Mr. Colaninno say that he will focus on the selection of the investments over the next year. Can you give us a rough guidance of the expected CapEx for the next year? Or due to the budget phase, it's not possible?

Monica, it's too early to give you very precise guidance on CapEx for next year. .

The next question is from Manuel [indiscernible]

I have 3 questions. Well, the first one is on the supply chain disruption. Just if you can comment a little bit more on it and on your strategy going forward. And do you see some shift of, let's say, shipment from the fourth quarter to 2022? Then on Europe, looking at your volumes, you overperformed the market. So can you just comment on the current level of dealer's stock across the Europe and on your restocking strategy? And my final one is still on Europe. If you can just comment about pricing outlook going forward in the sense that in 2021, average selling price is up by roughly 20%, even thanks to the product mix. So any comment on your expectation for 2022 will be useful.

Manuel, can repeat the first question, please.

Yes, it's about the supply chain disruption and your strategy going forward. And I was also wondering if you see some shift of demand from the third quarter to the year 2022.

I believe that Mr. Colaninno, in his speech, has already explained, which will be our way of working in the next -- in the fourth quarter. So we have driven the difficulties of the third quarter more or less using airfreight to manage any delay or any bottlenecks of our supply chain. In the new wave, we are working with our suppliers. So as of now, we can say that more or less probably, if something doesn't change in a disruption way, we will be able to achieve our results without any other disruptive cost -- other disruption. So I don't know if this answer to your question. And I don't see that we need to shift shipments to the first quarter of 2022.

Concerning the dealer's stock, if I understood well your question, I can confirm that if we compare the dealer's stock at the end of September, still below September 2019, that is a key reference here. We can't compare with 2020. So yes, we're still below in terms of the dealer's stock. That's the answer. And the last question after...

About the pricing outlook?

Yes. But the pricing in terms of revenue per unit, you mean?

Yes.

In Europe, mainly?

Yes, in Europe.

In Q4, there will be some positive uptake compared to Q3 given the launch of some motorbikes. And then you can consider the strategy will be, in any case, a positive strategy also next year. But don't expect the same change in...

Related to adjust price in 2021. Unless we have had this year, we have had 11 new products. And when you launch 11 new products or all the new modernization engine effect to plan the adoption of Euro 5, the price is normally something that to work going with the cost of new product -- cost of the products at the same level and so forth. So in 2022, that we -- the new engine Euro 5 is already something that is on all our products for more than 18 months. I believe that will be not something similar. But as any other outlook, we will be -- we could be more clear in the next conference call or Raffaele could have all of you probably within 1 month.

The next question is from François Robillard from Intermonte.

First question is on India. So we finally see some market recovery for the 3 wheelers or commercial vehicle part. What are your expectations for market recovery in the fourth quarter and in 2022? And with that, recently, there was a news about an upcoming request for proposal from the Indian government for about 100,000 new electric commercial vehicles. Can you give us more color on your potential participation in that and how it can affect your expected volumes for next year? Next question is on -- so if I understood well from Mr. Colaninno's opening remarks, you are aiming to improve the gross margin by 2 percentage points in the fourth quarter, if you compare to the third quarter level or to the 9 -- first 9 month levels and if you can just come back on the -- on this cost saving targets. You also mentioned, I guess, EUR 8 million to EUR 12 million savings on sourcing from suppliers. Will that be in the fourth quarter? Or is it something we're more looking for 2022?

So in India, the Indian market, okay, is slowly recovering, as we have seen, so in terms of demand. And so there is a low improvement in what we see. And our volumes will reflect the low volume recovery. Clearly, 2 wheelers better position in terms of demand than commercial vehicle, as you have seen in the first 9 months results. Concerning the tender, clearly, we have [indiscernible] the tender, but we don't have the result. So the 1,000 3-wheeler, I think, 2-wheeler. This is maybe your question. There was another thing that emerged last week in new dailies that we released more than 4,000 licenses for electric vehicles, and there's already demand for more. So demand is very strong. And as you know, in the electric 3 wheeler market, we have a market share with around 40%, 50%. So that we can achieve a big boost in terms of 3-wheeler in very high. This is something that I can confirm. So demand for this kind of vehicles has been very high in deal, okay? And then for the third question, Alessandra?

Well, [indiscernible] in any case, we are working to improve the results, as we already confirmed -- as Mr. Colaninno already confirmed. And this is something that we never thought. We didn't know if this is in 2020 after the lockdown and the COVID-19 pre-pandemic. And this is something that we are [indiscernible] 2021 with a different picture. We are working to achieve the results in the consensus based, already Raffaele answered with Monica your before. So in fact, it will be a better result on the margin -- better result on cash OpEx. In this moment, I have [indiscernible] and that will work on the results so that with [indiscernible].

The next question is from Gabriele Gambarova with Banca Akros.

Yes. Just again on the guidance, let's say, EUR 240 million. If I understood well, this guidance factors in, let's say, roughly EUR 10 million of improved contribution margin in Q4 and roughly EUR 4 million or something more, if I understood where on the recall campaign cost recovery. Am I right?

We are working to have the recovery of EUR 4 million at the end of the year, yes. I can say today that I'm sure at 100%...

Okay. So we discount it. And can I ask you, any possible, let's say, detailed information on this issue that affected your products in the one that triggered recall. Is it something specific...

Yes. That we can find as any record campaign is something that we have -- we are obliged to declare to any transport administration. So if you go on the side of the ministry -- transportation ministry in Italy, but also in the other countries in Europe or in the U.S., we find that we have ordered recall campaign on the -- for the engine of 660cc for a program that one of our suppliers has -- it was because the component doesn't work.

Okay. Okay. Very clear. One last question I didn't get. You had, let's say, EUR 4 million for the recall campaign in Q3. Is this, I would say, covering all the costs of the campaign or there will be further costs related to this campaign? I asked -- I'm asking you this because, if I'm not wrong, Mr. Colaninno mentioned, let's say, a number something that you should recover from these 3 suppliers, which is higher than EUR 4 million, if I'm not wrong, you said EUR 8 million or something million. So I was wondering how these two numbers match the cost on one side and the possibility to cover on the other.

So as the recall camping had began -- has begun more or less in this quarter. It was too earlier to find the agreement with the supplier. And so from an accounting point of view, I can say and I can do anything else than -- book the cost in our P&L -- in our cost margin. So this is why for the first time, we have put your attention on these costs because in the other case, from one side the recall campaign is so high from recall point of view and so impact on our P&L or in so -- in a short time. On the other side, basically has had a short time to discuss with the suppliers because there was almost in the mid of -- it was very difficult to find anyone in Italy because the suppliers are Italians and Europeans. We need in this moment to put the cost in the P&L. We are working to avoid anything in the end of the year, and this is one of my most important task with also for [indiscernible] colleagues. And this is why Mr. Colaninno [indiscernible] economic structure of this line. I believe that at the end of the year, I will not find anything it on this. I don't know if I answered your question.

Yes, yes. And if I may, just a flavor on how October [indiscernible]

We can give you just some demand data that in Europe according to our [indiscernible] the positive trend in the scooter segment mainly, but also Moto Guzzi Italy is remaining there. So the trend is positive and supportive. And we don't have the market data for other countries so far. And that is what we can tell you.

The next question is from Niccolò Storer with Kepler.

I have 2 questions, the first one on your performance in EMEA. You report that scooter volumes were up some 6% year-on-year in the 9 months and bikes are up 10% in the 9 months. Can you give us a flavor of which is your performance in EMEA split by scooters and motor bikes? And the second question is still on EMEA performance in Q3 specifically? Are figures already including some sales of your brand new one scooter?

Yes. So in EMEA, yes, we grew significantly both in scooter mainly over 50cc. And motorbikes, sorry, I will say, in the first 9 months, we say more than 20%, clearly. And clearly, more than that in motorbikes, essentially, you know that the vast majority of our motorbikes are sold in EMEA and Americas. Clearly, we grew more than -- in over 50cc more than 70%. So this is the trend that we had in EMEA. So very positive. Trending 50cc has been less positive, but it is also into our particular strategy. And as you can recall in prior quarter [indiscernible].

I'm sorry, in your slide #7, you indicate that EMEA volume went up 13% in the 9 months. So is it possible to have motorbikes up over 20%, scooters over 20%.

Yes, yes. yes, I understood. Understand. So yes, I was explaining -- I gave you the speak between [ 50cc and 60cc ]. Okay.

No, no, no. Total scooter and total motorbike.

Okay. So motorbikes essentially are, as I was telling you, the vast majority are concentrated in Europe. So this is the trend that you have in Europe, is more or less one that you see in the slide. In terms of scooter, we grew, but as you know, we don't give the [indiscernible] by geographic area. Okay. You can get around 30% growing in any case in -- or 20% grow in Europe, too. But can confirm more or less with 500cc in the slide. Can you hear us?

Yes, yes. But I don't understand how you -- if the all 3 wheelers in EMEA has grown 12.6% and motorbikes have grown more than 25%, how is possible that scooters have grown by a similar...

One thing. On one slide, you have scooter and motorbikes and you don't have the split by geographic area. In another slide, you have 2-wheelers, scooter and motorbikes -- 2 wheelers that are the combination of scooter and motorbikes, right? Okay. So when you are asking you have a scooter plus 25%, we have a very good performance in Europe too just considering the scooter. Okay. I gave you the over 50cc. You can imagine [ 50-50% ] growth in Europe, scooter, yes, this is the right number. We outgrew in over 50cc and less in [ 60cc ]. And for motorbikes, on contrary, the performance is pretty much aligned because we grew very well in North America. As Mr. Colaninno said before, but we grew significantly also in Europe. So you can imagine, again, plus 20% in Europe and something more in the U.S. in term of volumes, okay?

Yes.

Before I give you the spec between [indiscernible] question about the average selling price, that's the only thing. I give you too many details, let's put in a way. .

Okay. And what about Piaggio One, is it in Q3...

No. We start selling in September. And so there are some 100 vehicles already in 9 months results, but yet to wait Q4 to have the larger amount of volumes sold. As Mr. Colaninno said before, the reason is very well welcomed by the market, and we are sure that we can sell a great amount of those vehicles already in the coming months. There are no more questions?

No more questions.

Ok. No more questions, so we can conclude now the conference call. Thank you very much. And then as usual, if you have more -- you need more info, you can call me this evening or in the coming days, okay? Thank you. Bye.

Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.