Ferrari Nv · MIL:RACE
Ferrari Nv — Q3 2016 Earnings Presentation
30 slides from Ferrari Nv's earnings presentation, Nov 7, 2016
Slide 1: Q3 2016 Results – November 7th, 2016
Q3 2016 Results – November 7th, 2016
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2016 Outlook”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “tar
Slide 3: A Record Third Quarter… On the Way to Another Record Year
A RECORD THIRD QUARTER… Shipments reached 1,978 units, increasing by 29 units vs. previous year New key products launched and recent (+1.5%) events – Solid performance on top of an outstanding Q3 2015 – LaFerrari Aperta and “70 Style Icons” cars recently which grew by 21% vs. Q3 2014 presented at th
Slide 4: Q3 2016 Highlights
Q3 2016 HIGHLIGHTS Q3'16 1,978 Q3'16 783 Shipments Net revenues (units) Q3'15 (€M) Q3'15 1,949 723 Total shipments up 29 units (+1.5% vs. PY) driven by a 15% increase in V12 while V8 models Net revenues up 8.3% (+7.9% at constant currencies). In particular Cars and spare parts was driven were substa
Slide 5: Q3 2016 – Shipments by Region
Q3 2016 – SHIPMENTS BY REGION(4) Americas EMEA (35% vs. 35% PY of total shipments) (44% vs. 42% PY of total shipments) Americas’ shipments increased by approx. 3% EMEA’s shipments increased by more than 5% USA – Ferrari’s largest single market recorded shipments in line with • UK – a few units decre
Slide 6: Net Revenues Bridge Q3 2015-2016
NET REVENUES BRIDGE Q3 2015-2016 (€M) 783 723 46 15 (1) +8.3% (+7.9% at constant currencies) 0 24 25 125 110 97 51 537 537 (5) (8) Q3 2015 Cars and spare parts Engines (6) Sponsorship, Other Q3 2016 commercial and brand (7) Cars and spare parts Engines Sponsorship, commercial and brand Other • Cars
Slide 7: Adjusted EBIT Bridge Q3 2015 - 2016
ADJUSTED EBIT BRIDGE Q3 2015 - 2016 (€M) 15 32 1 9 179 172 172 140 (12) (3) (3) (7) Margin Margin Margin Margin 19.4% 22.8%* 22.7%* 22.0% Adj. EBIT Q3 FX hedges Q3 Adj. EBIT Q3 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q3 FX hedges Q3 Adj. EBIT Q3 2015 2015 2015 w/o FX R&D 2016 w/o FX 2016 2016
Slide 8: Net Industrial Debt Bridge Jun 30, 2016 – Sept 30, 2016
NET INDUSTRIAL DEBT BRIDGE(1) JUN 30, 2016 – SEPT 30, 2016 (€M) Industrial FCF €178m 234 (763) 74 2 (75) (585) (48) (7) (2) June 30, 2016 Adj. EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other September 30, Net industrial capital and dividends 2016 debt paid Net industrial deb
Slide 9: GTC4Lusso T: the first four-seater powered by a V8 turbo
The first four-seater to Powered by the 2016 Equipped with the Hailing a whole new GT be powered by a V8 International Engine of innovative Variable concept: a sporty and turbo, rear-wheel and the Year, developing an Boost Management versatile car, perfect for with four-wheel steering impressive 610
Slide 10: Tailor Made atelier and 70 liveries
350 unique cars created by 70 liveries inspired by the most iconic models the Tailor Made atelier from our history, each created just once for every of the five cars in the current range
Slide 11: Beyond Marketing – LaFerrari Aperta
BEYOND MARKETING – LAFERRARI APERTA Step 1: The Black Box Step 2: The first images Step 3: Dedicated Preview Step 4: The official unveil at the latest Mondial de Q3 2016 Results l’Automobile in Paris November 7th, 2016 11
Slide 12: Q3 2016 – Attività Sportive GT
Q3 2016 – “ATTIVITA’ SPORTIVE GT” FIA WEC XX programmes / F1 Clienti Ferrari Challenge Europe 6 Hours of Nürburgring (GER), Jul 24 FRD Sochi (RUS), Jul 29-31 round 4-5 LMGTE PRO XX: 12 (2 FXX K) F1: 3 FRD Sochi (RUS), Jul 29-31 1st and 2nd Ranked FRD Hockenheim (GER), Sept 9-11 FRD Hockenheim (GER),
Slide 13: Q3 2016 – Ferrari Brand and Store Presence
Q3 2016 – FERRARI BRAND AND STORE PRESENCE Licensing activities • 60 Licensing partners in 21 product categories Ferrari Store • At the end of September 2016 managing 14 directly operated stores and 27 franchised locations (including 7 Ferrari Store Junior) in 16 markets • Rome store opened in July
Slide 14: 2016 Outlook Revised Upward
2016 OUTLOOK REVISED UPWARD Revised outlook(2) Previous outlook(2) Shipments ˜8,000 Same Net Revenues >€3 billion Same Adj. EBITDA ˜€850 million ≥€800 million Net Industrial Debt <700 million(3) ≤€730 million(3) Note: (2) Assuming FX consistent with current market conditions Q3 2016 Results November
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are 5. Includes the net revenues generated from shipments of provided in the appendix our cars, including any personalization revenue generated on these cars and sales of spare parts 2. Assuming FX consistent with current ma
Slide 18: Strong Track-Record in New Models Introduction
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Product Line-Up (at least a new model launched every year) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider V8 California 30 458 Speciale California
Slide 19: Group Shipments
GROUP SHIPMENTS 7,664 ~8,000 6,074 5,643 +7.6% ~1,100 1,949 +1.5% 1,978 818 1,063 238 843 610 ~700 295 496 180 418 157 1,998 2,640 ~2,700 701 1,969 682 2,413 2,762 3,351 ~3,500 815 859 Q3 2015 Q3 2016 9M 2015 9M 2016 FY 2015 FY 2016E EMEA Americas Greater China Rest of APAC Q3 2016 Results Note: Gra
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS Q3 ‘16 Q3 ‘15 €M, except as otherwise stated 9M ‘16 9M ‘15 1,978 1,949 Worldwide shipments (units) 6,074 5,643 783 723 Net revenues 2,269 2,110 234 214 EBITDA ( 1) 619 562 234 213 Adjusted EBITDA ( 1) 629 567 172 141 EBIT 439 359 172 140 Adjusted EBIT ( 1) 449 364 11 (1) Net
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities 505 500 347 Sep. 30, Sep. 30, Jun. 30, Mar. 31, Adj. 139 317 268 (€M) 2016 (11) 2016 ( 10) 2016 ( 10) 2016 FY 2015 ( 9) FY 2015 FY 2014 266 4 4 100 76 47 2 Euro 675 225 343 356 137 22 10
Slide 22: Update on Financing
UPDATE ON FINANCING • On January 19th, 2016 Ferrari Financial Services Inc., indirectly wholly owned subsidiary of Ferrari N.V., performed a revolving securitization program for funding of up to US$250 million by pledging retail financial receivables in the United States of America as collateral. Th
Slide 23: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP financial measures Operations are monitored through the use of EBITDA is defined as net profit before income tax expense, net financial various Non-GAAP financial measures that expenses/(income) and depreciation and amortization. Adjusted EBITDA is defined as may
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q3 ‘16 Q3 ‘15 €M 9M ‘16 9M ‘15 113 94 Net profit 288 235 48 48 Income tax expenses 126 119 11 (1) Net financial expenses / (income) 25 5 62 73 Amortization and depreciation 180 203 234 214 EBITDA 619 562 Q3 2016 Results November 7th, 2016 24
Slide 25: Reconciliation of Non-GAAP Measures: Adj. EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBITDA Q3 ‘16 Q3 ‘15 €M 9M ‘16 9M ‘15 234 214 EBITDA 619 562 (Income) and expenses incurred in - (1) - 5 connection with our IPO and separation Charges for Takata airbag - - 10 - inflator recalls 234 213 Adjusted EBITDA 629 567 Q3 2016 Results November 7th,
Slide 26: Reconciliation of Non-GAAP Measures: Adj. EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT Q3 ‘16 Q3 ‘15 €M 9M ‘16 9M ‘15 172 141 EBIT 439 359 (Income) and expenses incurred in - (1) - 5 connection with our IPO and separation Charges for Takata airbag - - 10 - inflator recalls 172 140 Adjusted EBIT 449 364 Q3 2016 Results November 7th, 2016 2
Slide 27: Reconciliation of Non-GAAP Measures: Adj. Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJ. NET PROFIT Q3 ‘16 Q3 ‘15 €M 9M ‘16 9M ‘15 113 94 Net profit 288 235 (Income) and expenses incurred in connection - - - 4 with our IPO and separation (net of tax effect) Charges for Takata airbag - - 7 - inflator recalls (net of tax effect) 113 94 Adjusted ne
Slide 28: Reconciliation of Non-GAAP Measures: Adj. EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EPS Q3 ‘16 Q3 ‘15 € per common share 9M ‘16 9M ‘15 0.59 0.50 EPS 1.52 1.24 (Income) and expenses incurred in connection - - - 0.02 with our IPO and separation (net of tax effect) Charges for Takata airbag - - 0.04 - inflator recalls (net of tax effect) 0.59
Slide 29: Reconciliation: Free Cash Flow and Free Cash Flow from Industrial Activities
RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q3 ‘16 Q3 ‘15 €M 9M ‘16 9M ‘15 251 118 Cash flow from operating activities 566 534 (75) (44) Cash flows used in investing activities (232) (196) 175 74 Free Cash Flow 334 338 Change in the self-liquidat
Slide 30: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015 Net Industrial Debt (585) (763) (782) (797) Funded portion of the self-liquidating 1,132 1,135 1,097 1,141 financial receivables portfolio Net Debt (1,717) (1,898) (1,879) (1