Ferrari Nv · MIL:RACE
Ferrari Nv — Q1 2020 Earnings Presentation
31 slides from Ferrari Nv's earnings presentation, May 4, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results May 4th, 2020 Q1 2020 Results May 4th, 2020 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “Revised Guidance 2020” contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “remain”, “on tra
Slide 3: Iconic brand, technological innovation, design superiority
ICONIC BRAND, TECHNOLOGICAL INNOVATION, DESIGN SUPERIORITY LEAD TO LOYAL CUSTOMERS AND TRUSTED SUPPLIERS AND DEALERS Q1 2020 Results May 4th, 2020 3
Slide 4: Our actions for a strong restart
OUR ACTIONS FOR A STRONG RESTART WELLBEING & WELFARE SUPPLY CHAIN Full priority given to employees Conscious decision to increase inventories of materials and “Back on Track” program to protect the components health of employees upon the restart of production 400 direct suppliers, approx. 2/
Slide 5: The COVID-19 impact on 2020
THE COVID-19 IMPACT ON 2020 CARS AND SPARE PARTS FORMULA 1 Following 7 weeks of suspension, Reduced racing calendar to a production to gradually ramp up from maximum of 18 races May 4 Expected commercial and sponsorship Order intake to resume as dealers open revenues significantly lower than
Slide 6: Sound core business growth in Q1 2020
SOUND CORE BUSINESS GROWTH IN Q1 2020 Revenues almost in line with prior year, with Cars and spare parts up 7.3% and 5.0% on a constant currency basis(1). Offset by lower Formula 1, brand related activities and engines supply. Adj. EBITDA(1) up 1.9%, and 5.7% excluding €10 million from the favorable
Slide 7: Revised Guidance 2020: reflecting weakness in Q2
REVISED GUIDANCE 2020 VS. 2019 VS. PREVIOUS GUIDANCE (€Bn) (€Bn) 1.27 1.38-1.43 (+) 1.05-1.20 (-) 1.05-1.20 (-) (+) (-) (-) Adj. EBITDA ∆ Q1 2020 ∆ Q2 2020E ∆ H2 2020E Adj. EBITDA Adj. EBITDA ∆ Q1 2020 ∆ Q2 2020E ∆ H2 2020E Adj. EBITDA 2019 2020 Revised 2020 Previous 2020 Revised Guidance Guidance G
Slide 8: Supporting our community
SUPPORTING OUR COMMUNITY Ferrari leveraged its additive manufacturing capabilities to produce respirator valves and fittings for protective masks The Company also supported a number of initiatives in the region to help those in need during the Covid-19 emergency, including: the purchase and distri
Slide 9: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) Q1 '20 2,738 Q1 '20 932 +4.9% -0.8% Q1 '19 2,610 Q1 '19 940 ADJUSTED EBITDA(1) ADJUSTED EBIT(1) (€M and margin %) (€M and margin %) Q1 '20 317 34.0% Q1 '20 220 23.6% +1.9% -5.2% Q1 '19 311 33.1% Q1 '19 232 24.7% ADJUSTED DILUTED EARNINGS PER
Slide 10: Q1 2020 – Shipments
Q1 2020 – SHIPMENTS(2) SHIPMENTS BY REGION(3) Total shipments increased by 128 units (+4.9% vs. SHIPMENTS BREAKDOWN (Q1 2020 vs. Q1 2019) PY) supported by a 5.7% increase in V8 models (Q1 2020) and a 2.4% one in V12 models: AMERICAS +4.2% EMEA +25.4% V12 (28% vs. 28% PY) (55% vs. 46% PY) Volumes r
Slide 11: Net Revenues Bridge Q1 2019 – 2020
NET REVENUES BRIDGE Q1 2019 – 2020 Cars and spare parts: growth reflecting -0.8%, -€8 million -2.7%, -€26 million at constant currency(8) sales of the 488 Pista, 488 Pista Spider and the F8 Tributo. Positive contribution also from the Ferrari Monza SP1 and SP2 and (€M) +5.0% -44.2% -30.5% +11.3% p
Slide 12: Adj. EBIT Bridge Q1 2019 – 2020
ADJ. EBIT BRIDGE Q1 2019 – 2020(1) (€M) 37 232 8 240 12 211 220 (15) (11) 9 Margin (52) Margin Margin Margin 24.7% 25.3% 22.9% 23.6% Adj. EBIT Q1 FX hedges Adj. EBIT Q1 Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT Q1 Change in FX Adj. EBIT Q1 2019 Q1 2019 2019 w/o FX R&D 2020 at 2019 vs. 2020
Slide 13: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES DEC 31, 2019 – MAR 31, 2020 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 313 73 (7) (401) (56) (10) (337) (130) (174) 73 Adj. EBITDA ∆ in working Cash interest & Capex (9) Industrial FCF December 31, 2019 Industrial FCF Q1 202
Slide 14: Revised Guidance 2020: Key Assumptions and Actions
REVISED GUIDANCE 2020 KEY ASSUMPTIONS AND ACTIONS The guidance range reflects different and partial recovery rates of production volumes lost during the Covid-19 related suspension in 2020, and alternative scenarios in respect of the evolution of the order book in 2020 A significant reduction in
Slide 15: Revised Guidance 2020
REVISED GUIDANCE 2020 PREVIOUS REVISED GUIDANCE GUIDANCE €B 2019A 2020 2020 NET REVENUES 3.8 >4.1 3.4-3.6 1.27 1.38-1.43 1.05-1.20 ADJ. EBITDA (margin %) 33.7% ≥34% 31%-33% 0.92 0.95-1.0 0.6-0.8 ADJ. EBIT (margin %) 24.4% ~24% 18%-22% ADJ. DILUTED EPS (€) 3.71 3.90-3.95(10) 2.4-3.1(11) IND. FCF 0.7
Slide 16: Adj. EBITDA Q2 and H2 Contribution
REVISED GUIDANCE 2020 ADJ. EBITDA Q2 AND H2 CONTRIBUTION (€M) 1,380-1,430 1,269 1,050-1,200 644 311 314 Q1 Q2 H2 FY Actual 2019 Previous Guidance Revised Guidance TARGETING A REBOUND IN H2 Q1 2020 Results Graphs not to scale May 4th, 2020 16
Slide 17: Appendix
APPENDIX Q1 2020 Results May 4th, 2020 17
Slide 18: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the 6. Includes net revenues earned by our Formula 1 racing team through Appendix sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as revenues generated 2.
Slide 19: Strong track-record in new models introduction: range models
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models introduced Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 SPORT RANGE F430 F430 Spider 599 GTB Fiorano 458 Italia 458 Spider F12berlinetta 488 GTB 488 Spider 812 Superfast F8 Tributo
Slide 20: Strong track-record in new models introduction: special and limited editions
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models introduced Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 SPECIAL SERIES Superamerica F430 Scuderia Scuderia Spider 16M 599 GTO SA APERTA 458 Speciale 458 Speci
Slide 21: Group Shipments by Region
GROUP SHIPMENTS BY REGION(2)(3) +4.9% 2,738 2,610 +82 435 353 +23.2% -291 37 328 -88.7% 750 +30 +4.2% 720 +307 1,516 1,209 +25.4% Q1 2019 Q1 2020 EMEA Americas Mainland China, Hong Kong and Taiwan Rest of APAC Note: (2) (3) Refer to notes to the presentation in the Appendix Q1 2020 Results Graphs no
Slide 22: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Mar. 31 At Dec. 31 (€M) 2020 2019 2018 2017 2016 (401) Debt (2,141) (2,090) (1,927) (1,806) (1,848) Cash & Cash Equivalents (A) 880 898 794 648 458 (1,261) (860) Net Debt (1,261) (1,192) (1,133) (1,158) (1,390) Net Debt
Slide 23: Historical Trend of Leverage
HISTORICAL TREND Net Debt / Adj. LTM EBITDA 1.6x 1.1x 1.0x 1.0x 0.9x FY 2016 FY 2017 FY 2018 FY 2019 LTM March 2020 Net Industrial Debt / Adj. LTM EBITDA 0.8x 0.5x 0.3x 0.3x 0.3x FY 2016 FY 2017 FY 2018 FY 2019 LTM March 2020 Temporarily suspension of multi-year share repurchase program In April
Slide 24: Capex and R&D
CAPEX AND R&D €M Q1 '20 Q1 '19 Capital expenditures 189 135 of which capitalized development costs ( 13) (A) 66 65 Research and development 140 154 costs expensed (B) Total research and development (A+B) 206 219 Amortization of capitalized 41 31 development costs (C) Research and development costs a
Slide 25: 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 changes in f
Slide 26: Key Performance Metrics and Reconciliations of Non-GAAP Measures
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES €M, unless otherwise stated Q1 '20 Q1 '19 Net revenues 932 940 EBITDA 317 311 Adjustments - - Adjusted EBITDA 317 311 of which Adj. EBITDA (Industrial Activities, only) 313 308 Amortization and depreciation 97 79 EBIT 220 232 Adjusted
Slide 27: Total Net Revenues at Constant Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT CURRENCY(8) Q1 '20 €M Q1 '20 at constant currency Cars and spare parts 788 779 Engines 33 33 Sponsorship, commercial and brand 89 89 Other 22 21 Total Net Revenues 932 922 Certain totals in the tables included in this document may
Slide 28: Basic and Diluted EPS
BASIC AND DILUTED EPS €M, unless otherwise stated Q1 '20 Q1 '19 Net profit attributable to owners 166 178 of the Company Weighted average number of common 184,982 187,680 shares (thousand) Basic EPS (€) 0.90 0.95 Weighted average number of common shares for diluted earnings per common 185,578 188,47
Slide 29: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS € per common share Q1 '20 Q1 '19 Basic EPS 0.90 0.95 Adjustments - - Adjusted EPS 0.90 0.95 Diluted EPS 0.90 0.95 Adjustments - - Adjusted diluted EPS 0.90 0.95 Certain totals in the tables included in this document may not add due to rounding Q1 20
Slide 30: Reconciliations: Free Cash Flow and Industrial Free Cash Flow
RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES €M Q1 '20 Q1 '19 Cash flow from operating activities 263 384 Investments in property, plant and (174) (135) equipment and intangible assets ( 14) Free Cash Flow 89 249 Free Cash Flow from Financial Ser
Slide 31: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M March 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 Debt (2,141) (2,090) (1,927) (1,806) (1,848) of which: Lease liabilities as per IFRS 16 72 60 - - - (simplified approach) Cash and cash equivalents 880