Ferrari Nv · MIL:RACE
Ferrari Nv — Q3 2018 Earnings Presentation
31 slides from Ferrari Nv's earnings presentation, Nov 5, 2018
Slide 1: Q3 2018 Results
Q3 2018 Results November 5th, 2018 Q3 2018 Results November 5th, 2018 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “Confirming 2018 Guidance” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “on
Slide 3: On the Way to Another Strong Year
SUSTAIN DELIVERY OF 2018 TARGETS Solid industrial free cash flow(1) generation of €100 million, with net industrial debt already in line with full year guidance, and adj. EPS(1) of €0.78 Patent Box agreement signed Three-year period 2015-2017 benefit €141 million(2), with positive cash impact which
Slide 4: Q3 2018 Highlights
Q3 2018 HIGHLIGHTS SHIPMENTS NET REVENUES (UNITS) (€M) Q3 '18 2,262 Q3 '18 838 +10.6% +0.3% Q3 '17 2,046 Q3 '17 836 ADJUSTED EBITDA(1) EARNINGS PER SHARE(1) (€M and margin %) (€) Q3 '18 278 33.2% Q3 '18 0.78 0.74 1.52 +4.7% +105.4% Q3 '17 266 31.8% Q3 '17 0.74 Adjusted EPS(1) Adjustments INDUSTRIAL
Slide 5: Q3 2018 – Shipments by Region
Q3 2018 – SHIPMENTS BY REGION(3) Americas +4.6% EMEA +11.3% (34% vs. 36% PY) (45% vs. 44% PY) Total shipments increased by 216 units (+10.6% vs. PY) supported by a 7.9% increase in V12 models and an 11.4% increase in V8 models: The 488 family in line with prior year with first few deliveries of th
Slide 6: Net Revenues Bridge Q3 2017-2018
NET REVENUES BRIDGE Q3 2017-2018 +0.3%, +€2 million at current currency +2.2%, +€18 million at constant currency(8) Cars and spare parts: higher volumes led by the (€M) ramp up of the Ferrari Portofino as well as the 812 +3.8% -19.9% +6.5% +21.0% 836 854 838 Superfast together with pricing and del
Slide 7: Adj. EBIT Bridge Q3 2017 – 2018
ADJ. EBIT BRIDGE Q3 2017 – 2018(1) (€M) 202 23 5 4 0 222 203 Volume increase thanks to the ramp up of the Ferrari Portofino as well as the 812 Superfast (12) (19) Mix / price negatively impacted by strong Margin Margin performance from V8 models and lower sales of 24.2% 24.2% LaFerrari Aperta, t
Slide 8: Net Industrial Debt Bridge Jun 30, 2018 – Sept 30, 2018
NET INDUSTRIAL DEBT BRIDGE(1) JUN 30, 2018 – SEPT 30, 2018 (€M) Industrial FCF €100m 278 (442) (0) (0) (30) (372) (17) (342) (3) (3) (155) June 30, 2018 Adj. EBITDA Net ∆ working Tax paid Capex Other Dividends paid Currency and September 30, Buyback September 30, Net Industrial capital other 2018 20
Slide 9: Confirming 2018 Guidance
CONFIRMING 2018 GUIDANCE As announced at the Capital Markets Day on September 18, 2018 SHIPMENTS(9) > 9,000 NET REVENUES > €3.4 billion ADJ. EBITDA ≥ €1.1 billion NET INDUSTRIAL DEBT(10) < €350 million CAPITAL EXPENDITURES ~ €650 million Note: (9) Including hypercars (10) Including dividends already
Slide 10: F1: Working Diligently for the 2018 Season
F1: WORKING DILIGENTLY FOR THE 2018 SEASON 1st place at the Australia, Bahrain, Canada, Great Britain, Belgium and United States GPs 22 podiums so far S. Vettel currently 2nd in Driver’s Championship with 294 points Driver’s Championship Constructor’s Championship 1. Lewis Hamilton - Mercedes 358 1.
Slide 11: Q3 2018 – Client Relations Activities
Q3 2018 – CLIENT RELATIONS ACTIVITIES 488 PISTA SPIDER ICONA FERRARI CAVALCADE WORLD PREMIERE WORLD PREMIERE CLASSICHE August 22 – 26 September 17 – 18 June 18 – 22 Casa Ferrari, Pebble Beach Italy, Maranello Italy, Sardinia Ferrari Monza SP1 and SP2 unveiling Q3 2018 Results November 5th, 2018 11
Slide 12: Q3 2018 – GT Sporting Activities
Q3 2018 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI XX PROGRAMS / CHALLENGE F1 CLIENTI WEC: 6h Silverstone 1st - LM GTE Class Average 488 Ch. entries per round Average entries per round UPDATED ROUND 6 UPDATED ROUND 9 – Paul Ricard (FRA) PWC: wins GT SprintX Title XX: 18 ELMS: 4h Silverstone 1st
Slide 13: Appendix
APPENDIX
Slide 14: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures 6. Includes the net revenues earned by our Formula 1 racing team through are provided in the Appendix sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated 2.
Slide 15: Strong Track-Record in New Models Introduction
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range model introduced or announced Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SPORT RANGE F430 F430 Spider 599 GTB Fiorano 458 Italia 458 Spider F12berlinetta 488 GTB 488 Spider 812 Superfas
Slide 16: Strong Track-Record in New Models Introduction – Special and Limited Editions
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition introduced or announced Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SPECIAL SERIES Superamerica F430 Scuderia Scuderia Spider 16M 599 GTO SA APERTA 458 Speciale 458
Slide 17: Group Shipments
GROUP SHIPMENTS(3) >9,000 8,398 >1,300 +7.4% 1,233 >700 6,853 617 6,381 961 +10.6% 912 >3,000 522 2,811 453 2,262 2,046 2,078 2,189 325 255 162 152 770 >4,000 736 3,737 2,938 3,181 903 1,005 Q3 2017 Q3 2018 9M 2017 9M 2018 FY 2017 FY 2018E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on a
Slide 18: Key Performance Metrics
KEY PERFORMANCE METRICS Q3 '18 Q3 '17 €M, unless otherwise stated 9M '18 9M '17 2,262 2,046 Worldwide shipments (units) 6,853 6,381 838 836 Net revenues 2,575 2,577 278 266 EBITDA ( 1) 841 778 - - Adjustments (1) - 278 266 Adjusted EBITDA ( 1) 840 778 75 64 Amortization and depreciation 210 197 203
Slide 19: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities Sept. 30 Jun. 30 Mar. 31 Adj. 748 ( 12) 48 (€M) 2018 2018 2018 FY 2017 FY 2016 FY 2015 FY 2015 500 Euro 529 458 565 435 318 137 22 367 US Dollar 87 54 61 88 16 21 1 4 700 180 500 Chinese
Slide 20: Non-GAAP Financial Measures
non-GAAP FINANCIAL MEASURES non-GAAP financial measures Operations are monitored through the use of various non-GAAP Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate financial measures that may not be comparable to other similarly the effects of foreign curr
Slide 21: Total Net Revenues at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY(8) Q3 '18 at current Q3 '18 at constant 9M '18 at current 9M '18 at constant €M currency currency currency currency 616 628 Cars and spare parts 1,898 1,980 70 70 Engines 227 227 128 132 Sponsorship, commercial
Slide 22: EBIT and Adj. EBIT at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: EBIT AND ADJ. EBIT AT CONSTANT AND CURRENT CURRENCY(8) Q3 '18 €M 9M '18 203 EBIT 631 203 Adjusted EBIT 630 19 Currency 89 222 EBIT at constant currency 720 222 Adjusted EBIT at constant currency 719 Note: (8) The constant currency presentation eliminates the eff
Slide 23: EBITDA and Adj. EBITDA at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA AND ADJ. EBITDA AT CONSTANT AND CURRENT CURRENCY(8) Q3 '18 €M 9M '18 278 EBITDA 841 278 Adjusted EBITDA 840 19 Currency 89 297 EBITDA at constant currency 930 297 Adjusted EBITDA at constant currency 929 Note: (8) The constant currency presentation elimin
Slide 24: Reconciliations of Non-GAAP Measures: Adjusted EBIT
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT Q3 '18 Q3 '17 €M 9M '18 9M '17 203 202 EBIT 631 581 Release of charges related to Takata - - (1) - airbag inflator recalls 203 202 Adjusted EBIT 630 581 Q3 2018 Results Certain totals in the tables included in this document may not add due to round
Slide 25: Reconciliations of Non-GAAP Measures: EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA Q3 '18 Q3 '17 €M 9M '18 9M '17 287 141 Net profit 596 401 (90) 53 Income tax expense / (benefit) 20 155 6 8 Net financial expenses 15 25 75 64 Amortization and depreciation 210 197 278 266 EBITDA 841 778 Q3 2018 Results Certain totals in the tables includ
Slide 26: Reconciliations of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA Q3 '18 Q3 '17 €M 9M '18 9M '17 278 266 EBITDA 841 778 Release of charges related to Takata - - (1) - airbag inflator recalls 278 266 Adjusted EBITDA 840 778 Q3 2018 Results Certain totals in the tables included in this document may not add due to
Slide 27: Reconciliations of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT Q3 '18 Q3 '17 €M 9M '18 9M '17 287 141 Net profit 596 401 Release of charges related to Takata - - (1) - airbag inflator recalls (net of tax effect) Patent Box benefit (141) - (141) - for the period 2015-2017 146 141 Adjusted net profit 454 4
Slide 28: Basic and Diluted EPS
BASIC AND DILUTED EPS Q3 '18 Q3 '17 €M (unless otherwise stated) 9M '18 9M '17 Net profit attributable to owners 287 140 595 400 of the Company Weighted average number of common 188,646 188,954 188,712 188,951 shares (thousand) 1.52 0.74 Basic EPS (€) 3.15 2.11 Weighted average number of common 189,
Slide 29: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q3 '18 Q3 '17 € per common share 9M '18 9M '17 1.52 0.74 Basic EPS 3.15 2.11 Release of charges related to Takata - - (0.01) - airbag inflator recalls (net of tax effect) Patent Box benefit (0.74) - (0.74) - for the period 2015-2017 0.78 0.74 Adjust
Slide 30: Reconciliations: Free Cash Flow and Free Cash Flow from Industrial Activities
RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q3 '18 Q3 '17 €M 9M '18 9M '17 234 227 Cash flow from operating activities 620 515 (155) (93) Cash flows used in investing activitie s ( 14) (403) (247) 79 134 Free Cash Flow 217 268 Change in the self
Slide 31: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Net Industrial Debt (372) (472) (413) (473) Funded portion of the self-liquidating 762 731 666 685 financial receivables portfolio Net Debt (1,134) (1,203) (1,079) (1,158) C