CASE STUDY: The 1199 Panigale marks

Ducati another milestone in Ducati’s

rich R&D history
globalisation
of a great brand “The combination of a great brand such as
Ducati and a reliable industrial and financial
partner such as Investindustrial, has allowed
the company to become an undisputed
leader in the motorbike industry. It is a
great honor for me to manage a company
that since 2007 has increased its margins
by more than 40%, more than doubled its
market share and developed 17 new models.
Ducati today is ready to capture global
growth opportunities with a particular focus
on the emerging markets”.

Ducati 2011 Ebitda Margin Developments since entry:

19.7%
Gabriele Del Torchio,
CEO
Ducati Sales growth 57%
Ebitda growth 249%
Ebitda Margin growth 123%

Investindustrial has implemented a successful

operational turnaround in Ducati and has
significantly improved the company’s profitability
Ducati was identified as a company in need of refocusing and an
and strengthened its international footprint. ideal opportunity to further develop a strong, well known brand.

Ducati (www.ducati.com) is a leading manufacturer of sports Together with an expericenced management team, Investindustrial
and performance motorcycles. The company sells motorcycles has been able to significantly increase profitability by investing in
throughout the world and operates a global network of distributors research and development, improving working capital, streamlining
and direct shops in Italy, the US, France, Germany, the UK, Japan, production, implementing cost cutting actions and developing a
China, India and the Benelux countries. Ducati produces and sells more suitable sales mix.
approximately 42,000 motorcycles per year and has approximately
a 11% market share in the sports motorcycle segment. These actions enabled Ducati to weather the economic downturn
well and to more than double its market share over the last five
In March 2006, Investindustrial led the acquisition of 29.9% of years. Ducati reinforced its distribution network and further
Ducati. In December 2008, as a result of the tender offer launched The new 1199 Panigale S Tricolore
enlarged its international footprint: new exclusive stores and multi-
was presented in November 2011
in April 2008, Investindustrial and its co-investors increased their franchise dealers were opened and the company also reinforced its at the EICMA International Motorcycle
shareholding to 100% and the company was subsequently delisted. presence in selected emerging markets. Show in Milan
 Strenghtening of profitability Focus on capturing global value
and market leadership creation opportunities
Ebitda (€ m) and Ebitda Margin (%) Ducati Global Market Share (%) (Sport performance motorcycles) In the current market environment Ducati has shown both additional volumes of approximately 8,000 bikes by 2015.
its resilience and the ability to expand its market share. Furthermore Ducati has reached an agreement with Dafra
By Year
The company is focused on capturing further growth to assemble motorbikes in Brazil in order to capture cost
opportunities through a number of global actions that production benefits and sales potential in the Latin America
the management is currently implementing: markets. The agreement is expected to generate additional
94.3 10.6% volumes of approximately 5,000 bikes by 2015.
78.5
Continuous expansion of product offering
70.0 71.2 8.5% Since 2007 Ducati introduced 17 new models. After the Expansion of commercial presence with particular focus
55.0 19.7%
19.4% successful launch of the Multistrada in April 2010, Ducati on emerging markets (China, India, Thailand, Vietnam and
18.2% 7.2%
16.7%
27.0 13.8%
6.4% launched the Diavel in November 2010 to enter the high Brazil). These markets represent a unique opportunity for the
8.9% performance sport cruiser segment. The Diavel has been a company. Ducati’s relevant market in Asia is expected to grow
4.8%
4.1% great success to date with a 34% market share in the sport from approximately 8,000 units to 120,000 units by 2015.
cruiser segment at the end of 2011. In November 2011 Ducati In 2011 Ducati in Asia (excluding Japan) showed a growth of
2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 launched the 1199 Panigale which was presented at the latest 73% versus 2010. Ducati’s current relevant market in Brazil is
EICA International Motorcycle Show in Milan and was awarded approximately 40,000 units and is expected to grow to 60,000
“Most Beautiful Bike of Show”. units by 2015.

Opening of new production facilities Strengthening of co-branding initiatives

The success of the development strategy can be read in the 2011 results: despite a market decrease of 10%, Ducati registered A factory in Thailand was recently opened in order to capture During 2011 Ducati continued to develop significant brand
an increase in the number of motorbikes sold of 13% resulting in a 25% increase in market share during 2011. cost production benefits and sales potential in the Asian alliances with leading players in their respective fields such as
Ducati is also continuing to consolidate its profitability, reaching an Ebitda Margin of 20% in 2011 compared to 9% at entry markets. The new manufacturing plant is expected to generate Xerox, Tudor and Tumi.

40.8% 40.8%
38.3% 38.3%
34.1% 34.1%

An internationally recognised 25.9%

29.4%

leadership in product innovation

Readers of the prestigious German magazine “Motorrad”, one Ducati was the most successful manufacturer at the award
of the highest selling magazines in Europe, awarded Ducati ceremony, winning three of the eight main categories: Best
“Best Motorcycle of 2012” in three different categories. Over Sport Motorcycle (1199 Panigale), Best Naked Motorcycle (Diavel
39,000 readers voted in Motorrad’s 14th edition of “Motorcycle cromo) and Best All-Rounder (Multistrada 1200 S Touring).
of the Year”, an increase of 11,000 over 2011 and further
The new manufacturing plant of Ducati Motor (Thailand)
indication of the international interest generated by Ducati.

From left: the Multistrada 1200 S Touring (Best All-Rounder), the 1199 Panigale Examples of Ducati brand alliances (Tudor, Tumi, Xerox)
(Best Sport Motorcycle) and the Diavel Cromo (Best Naked Motorcycle)