Ferrari Nv · MIL:RACE
Ferrari Nv — FY2018 Earnings Presentation
29 slides from Ferrari Nv's earnings presentation, Jan 31, 2019
Slide 1: FY 2018 Results January 31st, 2019
FY 2018 Results January 31st, 2019 FY 2018 Results January 31st, 2019 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2019 Guidance” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “on track”, “s
Slide 3: Another Year of Sustained Growth, All 2018 Targets Met or Exceeded
ANOTHER YEAR OF SUSTAINED GROWTH, ALL 2018 TARGETS MET OR EXCEEDED Record adj. diluted EPS(1)(2) of €3.40 (+21%) and strong industrial free cash flow generation(1) of €405 million (+23%) Rewarding shareholders: announced a dividend payout ratio increase to 30% and Euro 1.5 billion share repurchases
Slide 4: Product Launches and Presentations
PRODUCT LAUNCHES AND PRESENTATIONS WHAT WE DID IN 2018 TO BE PRESENTED IN 2019… …5 NEW MODELS FY 2018 Results January 31st, 2019 4
Slide 5: FY 2018 Highlights
FY 2018 HIGHLIGHTS SHIPMENTS NET REVENUES (UNITS) (€M) FY '18 9,251 FY '18 3,420 +10.2% +0.1% FY '17 8,398 FY '17 3,417 ADJUSTED EBITDA(1) DILUTED EARNINGS PER SHARE(1) (€M and margin %) (€) FY '18 1,114 32.6% FY '18 3.40 0.75 4.14 +7.5% +46.8% FY '17 1,036 30.3% FY '17 2.82 Adjusted diluted EPS(1)(
Slide 6: FY 2018 – Shipments
FY 2018 – SHIPMENTS SHIPMENTS BY REGION(3) SHIPMENTS BY PILLAR Total shipments increased by 853 units (+10.2% AMERICAS +6.7% EMEA +13.1% vs. PY) supported by a 19.6% increase in V12 0% (32% vs. 33% PY) ICONA (46% vs. 45% PY) models and a 7.3% increase in V8 models: 4% SPECIAL Strong deliveries for
Slide 7: Net Revenues Bridge FY 2017-2018
NET REVENUES BRIDGE FY 2017-2018 +0.1%, +€3 million at current currency +3.2%, +€108 million at constant currency(9) Cars and spare parts: higher volumes led by the 812 Superfast as well as the ramp up of the Ferrari Portofino and (€M) the 488 Pista. Pricing and +6.9% -23.8% +5.3% +3.2% 3,498 pers
Slide 8: Adj. EBIT Bridge FY 2017 – 2018
ADJ. EBIT BRIDGE FY 2017 – 2018(1) (€M) 118 8 36 890 825 775 748 (17) (3) (65) (27) Margin Margin Margin Margin 22.7% 22.1% 25.4% 24.1% Adj. EBIT FY FX hedges Adj. EBIT FY Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT FY Change in FX Adj. EBIT FY 2017 FY 2017 2017 w/o FX R&D 2018 at 2017 vs. 20
Slide 9: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT BRIDGES(1) DEC 31, 2017 – DEC 31, 2018 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 16 405 1,114 (88) (473) (340) (100) (36) (240) (637) 405 (136) Adj. EBITDA FY Net ∆ working Tax paid Capex Industrial FCF December 31, Industrial FCF Div
Slide 10: 2019 Guidance
2019 GUIDANCE (€B, unless otherwise stated) 2018A 2019E ∆% NET REVENUES 3.4 >3.5 >+3% 1.1 1.2-1.25 ~+10% ADJ. EBITDA (margin %) 32.6% ~34% 0.825 0.85-0.9 ~+6% ADJ. EBIT (margin %) 24.1% ~24.5% ADJ. DILUTED EPS(10) (€) 3.40 3.50-3.70 ~+6% IND. FCF 0.4 ~0.45 >+10% DELIVERING SOLID GROWTH Note: (10) Ca
Slide 11: Appendix
—_ APPENDIX +
Slide 12: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the 7. Includes the net revenues earned by our Formula 1 racing team through Appendix sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated 2.
Slide 13: Strong Track-Record in New Models Introduction: Range Models
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models 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 Superfa
Slide 14: Strong Track-Record in New Models Introduction: Special and Limited Editions
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models 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 Speci
Slide 15: Group Shipments
GROUP SHIPMENTS(3) +10.2% 9,251 8,398 1,329 1,233 695 +18.9% 617 2,398 3,000 2,811 2,017 368 321 173 164 811 733 4,227 3,737 1,046 799 Q4 2017 Q4 2018 FY 2017 FY 2018 EMEA Americas China, Hong Kong and Taiwan Rest of APAC Note: (3) Refer to notes to the presentation in the Appendix Graphs not to sca
Slide 16: Key Performance Metrics
KEY PERFORMANCE METRICS Q4 '18 Q4 '17 €M, unless otherwise stated FY '18 FY '17 2,398 2,017 Worldwide shipments (units) 9,251 8,398 845 840 Net revenues 3,420 3,417 274 258 EBITDA ( 1) 1,115 1,036 - - Adjustments (1) - 274 258 Adjusted EBITDA ( 1) 1,114 1,036 79 64 Amortization and depreciation 289
Slide 17: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Adj. 843 ( 12) (€M) FY 2018 FY 2017 FY 2016 FY 2015 FY 2015 143 511 Euro 616 435 318 137 22 11 Chinese Yuan 73 62 58 106 106 344 45 700 158 500 US Dollar 50 88 16 21 1 299 2 73 156 Japanese Yen 24 26 37
Slide 18: 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 19: Total Net Revenues at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY(9) Q4 '18 at current Q4 '18 at constant FY '18 at current FY '18 at constant €M currency currency currency currency 637 633 Cars and spare parts 2,535 2,601 57 57 Engines 284 284 126 125 Sponsorship, commercial
Slide 20: EBIT and Adj. EBIT at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: EBIT AND ADJ. EBIT AT CONSTANT AND CURRENT CURRENCY(9) Q4 '18 €M FY '18 195 EBIT 826 195 Adjusted EBIT 825 (10) Currency (incl. hedges) 65 185 EBIT at constant currency 891 185 Adjusted EBIT at constant currency 890 Certain totals in the tables included in this
Slide 21: EBITDA and Adj. EBITDA at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA AND ADJ. EBITDA AT CONSTANT AND CURRENT CURRENCY(9) Q4 '18 €M FY '18 274 EBITDA 1,115 274 Adjusted EBITDA 1,114 (10) Currency (incl. hedges) 65 264 EBITDA at constant currency 1,180 264 Adjusted EBITDA at constant currency 1,179 Certain totals in the tabl
Slide 22: Reconciliations of Non-GAAP Measures: Adjusted EBIT
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT Q4 '18 Q4 '17 €M FY '18 FY '17 195 194 EBIT 826 775 Release of charges related to Takata - - (1) - airbag inflator recalls 195 194 Adjusted EBIT 825 775 Certain totals in the tables included in this document may not add due to rounding FY 2018 Resu
Slide 23: Reconciliations of Non-GAAP Measures: EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA Q4 '18 Q4 '17 €M FY '18 FY '17 191 136 Net profit 787 537 (4) 54 Income tax expense / (benefit) 16 209 8 4 Net financial expenses 23 29 79 64 Amortization and depreciation 289 261 274 258 EBITDA 1,115 1,036 Certain totals in the tables included in this do
Slide 24: Reconciliations of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA Q4 '18 Q4 '17 €M FY '18 FY '17 274 258 EBITDA 1,115 1,036 Release of charges related to Takata - - (1) - airbag inflator recalls 274 258 Adjusted EBITDA 1,114 1,036 Certain totals in the tables included in this document may not add due to roundin
Slide 25: Reconciliations of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT Q4 '18 Q4 '17 €M FY '18 FY '17 191 136 Net profit 787 537 Release of charges related to Takata - - (1) - airbag inflator recalls (net of tax effect) Patent Box benefit - - (141) - for the period 2015-2017 191 136 Adjusted net profit 645 537 C
Slide 26: Basic and Diluted EPS
BASIC AND DILUTED EPS Q4 '18 Q4 '17 €M (unless otherwise stated) FY '18 FY '17 Net profit attributable to owners 190 135 785 535 of the Company Weighted average number of common 188,294 188,954 188,606 188,951 shares (thousand) 1.01 0.72 Basic EPS (€) 4.16 2.83 Weighted average number of common 189,
Slide 27: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q4 '18 Q4 '17 € per common share FY '18 FY '17 1.01 0.72 Basic EPS 4.16 2.83 Release of charges related to Takata - - (0.01) - airbag inflator recalls (net of tax effect) Patent Box benefit - - (0.74) - for the period 2015-2017 1.01 0.72 Adjusted EP
Slide 28: 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 Q4 '18 Q4 '17 €M FY '18 FY '17 315 156 Cash flow from operating activities 935 671 (234) (140) Cash flows used in investing activitie s ( 14) (637) (387) 81 16 Free Cash Flow 298 284 Change in the self
Slide 29: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Net Industrial Debt (340) (372) (472) (413) (473) Funded portion of the self-liquidating 793 762 731 666 685 financial receivables portfolio Net Debt (1,13