Automobili Lamborghini SpA sets new goals - the STORY

After reaching sustainable profitability and solid growth for the first time in the history of the company, the Italian Luxury Car Brand sets new goals.

Automobili Lamborghini Targets to Become Most Profitable Supersportscar Manufacturer

- Deliveries increase by 30.4% and surpass 2087 unit threshold for the first time
- FINANCIAL YEAR 2006: Revenue up 43 % to 346Mio.€
- Result before tax increases by 311% to 18,1 Mio.€
- Continued growth in volumes and sales forecasted for 2007
- 2007 production already sold out

In financial year 2006 (ending Dec 31), the Italian Supersportscar Manufacturer Automobili Lamborghini S.p.A. achieved the third record year in a row after having reached profitability in 2004. All key business figures are up clearly and reach new all-time highs. Deliveries to customers grew by over 30% and reached 2087 cars, thus surpassing the 2000-unit limit for the first time in the history of the company. Total revenues increased by 43% from 243,0 Mio.€ to 346,3 Mio.€.

Having turned profitable in 2004 already, 2006 marks highly over proportional profit growth. Result before tax increased by 311% and reached 18,1 Mio.€.

All major figures are clearly above plan and above the growth of the market segment ...

Major factors driving growth and profitability in the reporting period are threefold: The youngest and most attractive model line-up ever with two new models in 2006 alone, continued focussed expansion of the dealer network, especially in the Asian markets as well as increased brand awareness with customers and the public.

"With our corporate turn-around to sustained profitability and growth into world-wide presence, Automobili Lamborghini is steadily increasing its overall brand value to all stakeholders. We are achieving this not only by once more surpassing all our important budget figures. Moreover, to customers, partners, shareholders and our dedicated staff and also to the interested public, we fulfilled the brand promises of exclusivity, leading-edge design and sympathetic luxury.

However, the only thing that can stop us, is our own self-complacency, and the whole company is decided not to let this happen." stated Stephan Winkelmann, CEO & President of Automobili Lamborghini S.p.A..

The strongest growth showed the European market, with volumes sales increasing by 50% to 746 units. Most important national markets were Germany (up by 41% to 234 units) and the UK (up by 81% to 151 cars delivered). The home market Italy established itself as another European growth market and increased by 38% to 134 units sold. The largest market – with 876 units sold - continued to be the US with a growth rate of plus 34.1%.

The overall growth was driven by strategic expansion of the dealer network on the one hand. By the end of 2006 there were 100 Lamborghini dealerships world-wide. The year marks the new presence in new growth markets by opening up flagship stores in Russia (Moscow) and India (New Delhi). Other partnerships opened up in Houston, Boston, Detroit and Prague.

On the other hand, the year also marks a further expansion of the product portfolio. Based on the two major base models, Lamborghini Gallardo and Lamborghini Murci&élago, there were two new models introduced into the world-wide markets. In the beginning of 2006, the Gallardo Spyder was launched, while the new Murciélago Coupe LP 640 was introduced in summer. The open version, the Murciélago LP 640 Roadster, was presented in November and will come to the markets in these present weeks. Additional growth was contributed by merchandising revenues, that increased from by 85%.

For financial year 2007, the company plans to continue to generate solid and sustainable growth in sales and profits as well as in the product line-up. The production is already sold out for all of 2007. The sales network will be in full delivery mode and ten more partnerships will be opened up, among them Kiew (Ukraine) and Mumbay (India). As for the longer term outlook, Automobili Lamborghini plans to show sustained growth increase above its market segment figures. Thus, Automobili Lamborghini plans to become the most profitable brand in the Supersportscar segment in the world.

Sant'Agata, March 1. 2007

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