Consolidated statement of financial position

Statement of financial position As of 30 June 2013 As of 31 December 2012 Change
In millions of euros
Net working capital (20.7) (81.1) 60.4
Net tangible assets 317.1 321.0 (3.9)
Net intangible assets 657.0 661.0 (3.9)
Financial assets 7.8 6.7 1.2
Provisions (73.9) (75.9) 2.0
Net capital employed 887.3 831.7 55.6
Net Financial Debt 458.2 391.8 66.3
Shareholders’ equity 429.2 439.9 (10.7)
Sources of funds 887.3 831.7 55.6
Minority interest capital 0.9 1.2 (0.3)

Net working capital as of 30 June 2013 was negative for € 20.7 million, using cash flows of approximately € 60.4 million during the period. In particular, net working capital is defined as the sum of trade receivables, inventories, trade payables and other non-trade assets and liabilities. During 2013, in a particularly challenging market context, the Piaggio Group was able to maintain a balance in net working capital, thanks above all to a careful management in the collection of trade receivables, and to a major focus on inventory management and optimisation and the implementation of new sales and supply chain financing agreements, for trade payables.

Property, plant and equipment, comprising plant, property, machinery and industrial equipment, net of accumulated depreciation and assets held for sale, amounted to € 317.1 million as of 30 June 2013, with a decrease of approximately € 3.9 million compared to 31 December 2012. Depreciation was equal to approximately € 19.9 million and offset investments for the period (€ 18.3 million). The value adjustment of the balance sheet item to the exchange rate in effect at the end of the reporting period generated a decrease in the carrying amount of approximately € 5.4 million. Reclassifications of intangible assets to property, plant, and equipment generated an increase of approximately € 3.2 million.

Intangible assets, comprising capitalised development costs, costs for patents and know-how, as well as goodwill arising from acquisitions/mergers taking place within the Group over the last few years, totalled € 657.0 million, with a decrease of approximately € 3.9 million compared to 31 December 2012. The decrease is mainly due to the value adjustment of the balance sheet item to the exchange rate in effect at the end of the reporting period, which generated a decrease in the carrying amount of approximately € 3.2 million. Investments for the period (€ 25.0 million) were offset by amortisation (€ 23.1 million) and the above mentioned reclassification.

Financial assets, defined as the sum of “investments” and “other non-current financial assets" totalled € 7.8 million. The increase essentially refers to the equity valuation of the Zongshen Piaggio Foshan joint venture (€ 1.0 million).

Provisions, comprising retirement funds and employee benefits, other long term provisions and the current portion of other long term provisions, totalled € 73.9 million, registering a decrease compared to 31 December 2012 (€ 75.9 million).

As fully described in the next section on the “Consolidated Statement of Cash Flows”, net financial debt as of 30 June 2013 was equal to € 458.2 million, compared to € 391.8 million as of 31 December 2012. The increase in debt of € 66.3 million is due to the investments programme, distribution of dividends and increase in working capital.

Shareholders' equity as of 30 June 2013 amounted to € 429.2 million, down € 10.7 million compared to 31 December 2012.