DUCATI Motor Holding S.p.A. has revealed some details concerning the company's business plan for the two-year period through 2010. The company released the information following a Jan. 15 board of directors meeting in Milan.
Ducati's strategic objectives include:
- strengthening its position in the premium sportbike segment;
- focusing on the development and management of a product's life cycle;
- focusing on pricing, margins and internal efficiencies to improve financial results;
- further developing the distribution network and expanding the customer base;
- exploiting the brand's potential to increase its accessories and apparel businesses and licensing revenues
Ducati's financial targets include:
- increasing sales 10% CAGR (Compound Annual Growth Rate) from 40,761 bikes in 2007 to 54,000 in 2010;
- increasing revenues about 10% CAGR through 2010, compared with 398 million euro in 2007;
- increasing EBITDA up to 20% of revenues in 2010, compared with 13% of 2007;
- altering ratio debts/equity from 5% in 2007 to positive cash in 2010;
- achieving return on equity of about 15% in 2010.