WHO WE ARE?

The worlds most attractive motorcycles are the result of a deep commitment to racing competitions; they are the purest expression of refined skill, unmistakable design and above all, a great passion for bikes. Ducati is proud to represent the Italian industry Superbike, Monster, Street fighter, Hypermotard, Multistrada and Sport Classic- in over 60 nations through the world these models dominate the dreams of the most ardent motorcycle enthusiasts. The Desmodromic valve control system, the steel tubular Trellis frame, the L-twin engine and the unmistakable sound of the power unit these are the distinguishing features that underline the uniqueness of a Ducati. Victories is the proof of the value of our working philosophy. Ducati has won 15 out if 18 Riders titles and 16 Manufacturers titles, while in the 2007 Moto GP champion ship less than 4yrs after Ducatis debut in the series Desmosedici GP7 topped the world Riders and Manufacturers ranking

Ducastisti meet up at race tracks and events, at the World Ducati week and also on Ducati.com, which is visited by over 12 million fans each year. The story of the Ducati dream, which began in Bologna in1926, is recorded at the Ducati Museum.

HERITAGE
THE TWENTIES: BIRTH OF LEGEND
In 1926 the Ducati family and other Bolognese investors founded the Societa Raadio Brevetti Ducati in Bologana. Their aim was the production of industrial components for the growing field of radio transmissions, based on Adriano Ducatis patents. The product invented in this segment was radiocommunications.

THE

THIRTIES: EXPANSION

CREATION

AND

On June 1,1935 , the cornerstone of the factory in Borgo Panigale was laid.

THE FORTIES: FROM THE ASHES , A

PUPPY IS BORN
The Second World War was extremely hard on Ducati: the Borgo Panigale factories razed to the ground in 1944 In 1946, the Cucciolo appeared: the small auxiliary motor for bicycles destined to become the most famous in the world. Thank to the Cucciolos success and that of its descendants, Ducati became an affirmed trademark in the mechanical sector. The Ducati Brothers: Bruno, Marcello and Adriano

1946: The Puppy was the first four-stroke engine made by DUCATI

THE FIFTIES: THE ARRIVAL OF DOCTOR T

1952 saw the birth of the futuristic Cruiser 175cc, with an electric starter and automatic transmission. During 1958, Ducati also produced the 200cc Elite.1958 also marked the triumph of the desmodromic system, which engineer Taglioni had been developing since 1955.

THE SIXTIES: THE START OF THE DESMO

AGE
In 1964, the 250cc model was added to the prestigious roster of commercial single cylinder, in the Diana, Monza, Aurea, and later, GP types, capable of approximately 150 km/h really exceptional performance for the time. Ducati special segment of this year was APOLLO was created for Joe Beliner, the American Ducati dealer.

THE SEVENTIES: TRIUMPHS ON THE TRACKS

In 1972, after the succes attained in America in the beginning of the sixties with the Scramblers, Ducati proposed utilizing the same formula on the Italian market, with which it had incredible success, specially with the desmodromic 450. The end of the 1960s coincided with the boom of the maxibikes. 1980: TT2 was the first racing motorbike by Ducati.

THE EIGHTIES:CHANGES AND DEVELOPMENTS

In 1983, Ducati was purchased by Claudio and Gianfranco Castiglioni and became part of the Cagiva Group. The adventure began in 1988 with Marco Lucchinelli on his superb 851. Ducati expanded its share of the motorcycle market, introducing new models, intensifying the companys commitment to racing. The four valves engine was the last step of development on desmodronic engines by Ducati. MASSIMO BRODI

THE NINTIES:

THE TURNAROUND YEARS

In 1993 the Argentine Miguel Galluzzi convienced the idea of the Monster. The bike was stripped of all in essentials. It represented a unique interpretation of the fun bike category, and it rapidly became a legend. The birth of the Ducati 916 in 1994. it was another Ducati- inspired revolution, this time in the high- performance sports motorcycle category. From the worlds most prestigious bike magazines, the 916 received the title Motorcycle of the Year In 1996 Ducati was taken over by Texas Pacific Group, an American investment firm that brought much needed cash and a new group of international managers. The new management team , together with the old group of engineers responsible for product development, turned the company around posting quarter after quarter of records sales and profits.

DUCATI STARTED CHANGING

It changed from a purely manufacturing company to an entertainment. It now provides a full motorcycling experience, centered on the technical excellence of its motorcycles but also extending to racing, heritage, accessories and apparel. The first Ducati weekend underlined the newly found sense of the Ducati Community, bringing together in Misano 10,000 Ducatisti from all over the world. In 1993 Supermono,, the return of Ducati in single cylinder world

THE PRESENT: THE DREAM GOES ON

2000 Was the year that Ducati organized the first riders school for women and brought the production of 100,000 Monsters since 1993. In 2001, Troy Bayliss won the World Superbike Championship on the 75th anniversary of the companys founding. Ducati Corse announced its intention to take part in the GP World Championship from 2003 onwards with their new Desmosedici engine. 2001 will also remembered for the death of Bruno Cavalieri Ducati, the last of the three brothers who founded the company, and of Fabio Dr.T Taglioni, father of the 90* twine cylinder engine, still the hallmark engine of Ducati motorcycles.

Finally, after three year of intense development efforts, in 2003 the Multistarda was on the road. This was also a special year for Ducati Corse with the return to the Grand Pix with riders Troy Bayliss and Loris Capirossi, along with the Desmosedici V4 engine. Ducati won the Riders Title again with Neil Hodgson, along with the Manufacturers Title. 2007 has been an evenful year for Ducati, beinning with Gabriele Del Torchio becoming the new CEO in May , taking over Federico Minolis former position. This is also year that three new bikes were released with amazing success: the 1098, the Hypermotard and Desmosedici RR. However, 2007 will be forever remembered as the year that Ducati took its first MotoGP World Title.

DUCATI SWOT ANALYSIS

This SWOT analysis of Ducati will provide a closer look into the strengths and weaknesses as well as the opportunities and threats that this motorcycle manufacturer faces. Technology superiority has long been a part of Ducati. Desmodronic valve distribution system and the L-twin engine technological brilliance along with the top of the line engineers differentiated this Italian bike from its competitors. The case shows that between 1995 and 2000 the repeat purchase intentions had increased from approximately 55% to a little over 60%. This percentage brings it to one of the highest ranked in the European market. The target customers of Ducati are between the age of 18 and 35. this age range is quite narrow compared to the other industry leaders. Previous poor management limited the amount of potential growth before Federico Minoli took control. Ducati advertises throught specialized volumes, Ducati has low economies of scale.

RISK FACTORS
Investing in our shares or Ads involves certain risks. You should carefully consider each of the following risk and all of the information included in this annual report.

THE WORLD MOTORCYCLE MARKET IS HIGHLY COMPETATIVE: Our principal competitors are four Japanese
manufacturers (Honda, Suzuki, Yamaha, Kawasaki) two European manufacturers(Triump and BMW) and to a more extent Harley-Davidson of the United States. Like other competitors in the motorcycle industry, our competitiveness is also influenced by our performance on international professional racing circuits. We cannot assure you that the racing success of Ducati motorcycle in the World Superbike Championship will continue or will be replicated in the Moto GP Championships, which we re-entered in 2003.

DEMAND FOR MOTORCYCLE IS CYCLICAL: In the past,

the motorcycle industry has been subject to significant changes in demand due to changing social and economic conditions affecting discretionary consumer income, such as employment levels, business conditions, taxation rates fuels costs interest rates and other factors. The factors underlying this demand are beyond our control, and demand for our products nay again decline in the future, which could have a future negative impact on our business, prospects, results of operations or financial condition.

OUR BUSINESS IS SEASONAL TO PREDICT LEVELS OF DEMAND IN ADVANCE AND PROVIDE CURRENT MOTORCYCLE MODELS TO THE MARKET ON A TIMELY BASIS: Like other competitors in the motorcycle industry, our
operations are characterized by the seasonal fluctuation in demand and a stable production level (although we shut down production each year during the month of August and the last two weeks of December) Annual retail demand for motorcycle is highest during April, May, and June, resulting in peak factory sales during March, April and May and a built up of inventory from September to February

DIFFERENT SEGMENTAL BIKES LUANCHED BY DUCATI

DUCATI 848 SUPERBIKE

SPECIFICATION
Engine: Engine Type :Longitudinal Twin Cylinders :2 Engine Stroke :4-Stroke Cooling :Liquid Valves :8 Valves Per Cylinder: 4 Valve Configuration: DOHC Compression Ratio: 12:1 Starter : Electric Fuel Requirements: Premium Fuel Type : Gas Transmission: Transmission Type :Manual Number Of Speeds :6 Primary Drive (Rear Wheel) :hain

DUCATI 1098

SPECIFICATION
Type: L-Twin cylinder, 4 valve per cylinder Desmodromic, liquid cooled Displacement: 1099cc Bore x Stroke: 104x64.7mm Compression Ratio: 12.5:1 Power: 160hp - 119.3kw @ 9750rpm Torque: 12.5kgm - 90.4lb-ft @ 8000rpm Fuel injection: Marelli electronic fuel injection, elliptical throttle bodies. Exhaust: Lightweight 2-1-2 system with catalytic converter and lambda probe. Twin stainless steel mufflers Emissions: Euro 3

DUCATI 1198

SPECIFICATION
Make Model Ducati 1198 Testastretta Evoluzione Year 2009 Engine Liquid cooled, four stroke, 90Ltwin cylinder, DOHC, desmodromic 4 valve per cylinder. Capacity 1198 Bore x Stroke 106 x 67.9 mm Compression Ratio 12.7:1 Induction Marelli electronic fuel injection, elliptical throttle bodies. Exhaust Lightweight 2-1-2 system with catalytic converter and 2 lambda probes. Twin stainless steel mufflers Ignition / Starting- / electric Clutch Dry multiplate with hydraulic control Max Power 170hp 125 KW @ 9750 rpm Max Torque 97 lb-ft 131.4 Nm @ 8000 rpm Transmission / Drive 6 Speed / chain

DUCATI MONSTER 696

SPECIFICATION
Make Model Ducati 1198 Testastretta Evoluzione Year 2009 Engine Liquid cooled, four stroke, 90Ltwin cylinder, DOHC, desmodromic 4 valve per cylinder. Capacity 1198 Bore x Stroke 106 x 67.9 mm Compression Ratio 12.7:1 Induction Marelli electronic fuel injection, elliptical throttle bodies. Exhaust Lightweight 2-1-2 system with catalytic converter and 2 lambda probes. Twin stainless steel mufflers Ignition / Starting - / electric Clutch Dry multiplate with hydraulic control Max Power 170hp 125 KW @ 9750 rpm Max Torque 97 lb-ft 131.4 Nm @ 8000 rpm Transmission / Drive 6 Speed / chain

SOCIAL RESPONSIBILITY OF THE COMPANY We care about helping people to achieve better quality of life by offering tangible opportunities. Our commitments towards environmental, social and corporate governance issue and is strong and hands on. We have made a dedicate efforts to increase research and development , spending to invest in education and training for our employees and to develop plans that take environmental and social issue into consideration. After having subscribed to the United Nation Global compact principal, for investment initiative. The company sells motorcycle through out the world and operates the network of distributor and shops in Italy, Germany, UK, Japan countries. Ducati producess and sells approximately 40,000 motorcycle per year and has 6% market share in the sports motorcycle segment.

DUCATI LUANCHES ITS MACHANICAL ANIMALS IN INDIA The motorcycle luanched for INDIAN market are the 848cc Ducati superbike(Rs21.77lakh), 998cc Ducati S4RS(Rs22.63lakhs), 1098cc ducati superbike(25.61lakhs), 1078cc Ducati Hyper motarded1100S(Rs20.72lakhs) and1198cc Ducati superbike(Rs48.03lakhs) Italian company DUCATI has a joint venture in INDIA with Kinetic Motors to manufacture auto components. Repot added that BAJAJ AUTO was also struggling for its joint venture with DUCATI in INDAI

DUCATI 999

DUCATI STILL

TO COME
WITH NEW BIKE

KEEP WAITING