Ferrari Nv · MIL:RACE

Ferrari Nv — Q2 2020 Earnings Presentation

26 slides from Ferrari Nv's earnings presentation, Aug 3, 2020

  1. Slide 1: Q2 2020 Results

    Q2 2020 Results August 3, 2020 Q2 2020 Results August 3, 2020 1

  2. Slide 2: Safe Harbour Statement

    SAFE HARBOUR STATEMENT This document, and in particular the section entitled “Narrowed 2020 Guidance” contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “remain”, “on tr

  3. Slide 3: Q2 2020 Affected by Covid-19, But in Line with Expectations

    Q2 2020 AFFECTED BY COVID-19, BUT IN LINE WITH EXPECTATIONS Earnings weak across all metrics but in line with expectations. Sound core business confirming solid profit resilience. Covid-19 pandemic disruption delayed the industrialization phase of the SF90 Stradale. Deliveries to commence in Q4 2020

  4. Slide 4: Q2 2020 Highlights

    Q2 2020 HIGHLIGHTS SHIPMENTS(1) NET REVENUES (UNITS) (€M) Q2 '20 1,389 Q2 '20 571 -48.0% -42.0% Q2 '19 2,671 Q2 '19 984 ADJUSTED EBITDA(2) ADJUSTED EBIT(2) (€M and margin %) (€M and margin %) Q2 '20 124 21.9% Q2 '20 23 4.0% -60.3% -90.3% Q2 '19 314 32.0% Q2 '19 239 24.3% ADJUSTED DILUTED EARNINGS PE

  5. Slide 5: Q2 2020 – Shipments

    Q2 2020 – SHIPMENTS(1) SHIPMENTS BY REGION(3) Total shipments decreased by 1,282 units (-48.0% SHIPMENTS BREAKDOWN (Q2 2020 vs. Q2 2019) vs. PY) impacted by the Covid-19 pandemic: (Q2 2020)  First few deliveries of the F8 Spider and the 812 V12 AMERICAS -52.6% EMEA -40.9% (27% vs. 30% PY) (51% vs.

  6. Slide 6: Net Revenues Bridge Q2 2019 – 2020

    NET REVENUES BRIDGE Q2 2019 – 2020  Cars and spare parts: lower deliveries as -42.0%, -€413 million well as decreased contribution from -42.6%, -€421 million at constant currency(8) personalizations due to the Covid-19 production suspension. Partially offset by deliveries of the Ferrari Monza SP1 a

  7. Slide 7: Adj. EBIT Bridge Q2 2019 – 2020

    ADJ. EBIT BRIDGE Q2 2019 – 2020(2) (€M) 239 5 244 Margin Margin 24.3% 24.7% 9 21 23 (152) Margin Margin (7) (15) 2 (58) 3.7% 4.0% Adj. EBIT Q2 FX hedges Adj. EBIT Q2 Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT Q2 Change in FX Adj. EBIT Q2 2019 Q2 2019 2019 w/o FX R&D 2020 at 2019 vs. 2020 202

  8. Slide 8: Industrial FCF and Net Industrial Debt Bridges

    INDUSTRIAL FCF(2) AND NET INDUSTRIAL DEBT(2) BRIDGES MAR 31, 2020 – JUN 30, 2020 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 117 - (8) (776) (209) (135) (7) (401) (158) (158) (133) (9) Adj. EBITDA ∆ in working Cash interest & Capex Industrial FCF March 31, 2020 Industrial FCF D

  9. Slide 9: Narrowed 2020 Guidance – Assumptions

    NARROWED 2020 GUIDANCE – ASSUMPTIONS  Refinement of production schedule resulting in a recovery of some 500 cars partially offsetting the loss of approximately 2,000 units incurred during the plant shutdown  Delays in the full production ramp up of the SF90 Stradale, implying a softer mix  Delive

  10. Slide 10: Narrowed 2020 Guidance

    NARROWED 2020 GUIDANCE MAY NARROWED 2020 2020 (€B, unless otherwise stated) 2019A GUIDANCE GUIDANCE NET REVENUES 3.8 3.4-3.6 > 3.4 1.27 1.05-1.20 1.075-1.125 ADJ. EBITDA (margin %) 33.7% 31%-33% 31%-32.5% 0.92 0.6-0.8 0.65-0.70 ADJ. EBIT (margin %) 24.4% 18%-22% 18.5%-20% ADJ. DILUTED EPS (€) 3.71 2

  11. Slide 11: Adj. EBITDA H2 Contribution

    NARROWED 2020 GUIDANCE ADJ. EBITDA H2 CONTRIBUTION (€M) 1,269 1,075-1,125 644 311 317 314 124 Q1 Q2 H2 FY Actual 2020 Actual 2019 Narrowed 2020 Guidance H2 2020 IN LINE WITH H2 2019 DESPITE THE UNCERTAIN ENVIRONMENT Q2 2020 Results Graphs not to scale August 3, 2020 11

  12. Slide 12: Appendix

    APPENDIX Q2 2020 Results August 3, 2020 12

  13. Slide 13: Notes to the Presentation

    NOTES TO THE PRESENTATION 1. Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre- 6. Includes net revenues earned by our Formula 1 racing team through owned cars sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as revenues genera

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Group Shipments by Region

    GROUP SHIPMENTS BY REGION(1)(3) -48.0% -21.9% 2,671 5,281 384 737 -25 289 617 -3.4% 4,127 -107 -555 -27.9% 712 -90.0% 62 803 -264 1,523 1,389 -392 -91.3% -25.7% 1,131 -422 277 -52.6% 25 381 -182 1,195 -489 2,404 2,222 -7.6% -40.9% 706 Q2 2019 Q2 2020 H1 2019 H1 2020 EMEA Americas Mainland China, Hon

  17. Slide 17: Debt and Liquidity Position

    DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Jun. 30 At Mar. 31 At Dec. 31 (€M) 2020 2020 2019 2018 2017 (776) Debt (2,757) (2,141) (2,090) (1,927) (1,806) (1,645) Cash & Cash Equivalents (A) 1,112 880 898 794 648 Net Debt (1,645) (1,261) (1,192) (1,133) (1,158) (

  18. Slide 18: Historical Trend

    HISTORICAL TREND Net Debt / Adj. LTM EBITDA 1.6x 1.5x 1.1x 1.0x 0.9x FY 2016 FY 2017 FY 2018 FY 2019 LTM June 2020 Net Industrial Debt / Adj. LTM EBITDA 0.8x 0.7x 0.5x 0.3x 0.3x FY 2016 FY 2017 FY 2018 FY 2019 LTM June 2020 As of June 30, 2020, total available liquidity was €1,812 million (€1,230 mi

  19. Slide 19: Capex and R&D

    CAPEX AND R&D Q2 '20 Q2 '19 €M H1 '20 H1 '19 134 173 Capital expenditures 323 308 77 86 of which capitalized development costs ( 14) (A) 143 151 Research and development 122 140 262 294 costs expensed (B) 199 226 Total research and development (A+B) 405 445 Amortization of capitalized 44 30 85 61 de

  20. 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 changes in f

  21. Slide 21: Key Performance Metrics and Reconciliations of Non-GAAP Measures

    KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES Q2 '20 Q2 '19 €M, unless otherwise stated H1 '20 H1 '19 571 984 Net revenues 1,503 1,924 124 314 EBITDA 441 625 - - Adjustments - - 124 314 Adjusted EBITDA 441 625 117 310 of which Adj. EBITDA (Industrial Activities, only) 430 618 101

  22. Slide 22: Total Net Revenues at Constant Currency

    RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT CURRENCY(8) Q2 '20 H1 '20 Q2 '20 €M H1 '20 at constant currency at constant currency 450 447 Cars and spare parts 1,238 1,226 20 20 Engines 53 53 83 83 Sponsorship, commercial and brand 172 172 18 18 Other 40 39 571 568 Total Net R

  23. Slide 23: Basic and Diluted EPS

    BASIC AND DILUTED EPS Q2 '20 Q2 '19 €M, unless otherwise stated H1 '20 H1 '19 Net profit attributable to owners 9 183 175 361 of the Company Weighted average number of common 184,748 187,409 184,864 187,544 shares (thousand) 0.05 0.97 Basic EPS (€) 0.95 1.92 Weighted average number of common 185,344

  24. Slide 24: Reconciliations of Non-GAAP Measures: Adjusted EPS

    RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q2 '20 Q2 '19 € per common share H1 '20 H1 '19 0.05 0.97 Basic EPS 0.95 1.92 - - Adjustments - - 0.05 0.97 Adjusted EPS 0.95 1.92 0.04 0.96 Diluted EPS 0.94 1.91 - - Adjustments - - 0.04 0.96 Adjusted diluted EPS 0.94 1.91 Certain totals in the tabl

  25. Slide 25: 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 Q2 '20 Q2 '19 €M H1 '20 H1 '19 (53) 299 Cash flow from operating activities 210 683 Investments in property, plant and (133) (173) (307) (308) equipment and intangible assets ( 15) (186) 126 Free Cash

  26. Slide 26: Reconciliations of Non-GAAP Measures: Net Industrial Debt

    RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M June 30, 2020 March 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 Debt (2,757) (2,141) (2,090) (1,927) (1,806) (1,848) of which: Lease liabilities as per IFRS 16 68 72 60 - - - (simplified approach) Cash

Ferrari N.V. Common Shares — Q2 2020 Earnings Presentation on 6ix