Ferrari Nv · MIL:RACE
Ferrari Nv — FY2017 Earnings Presentation
30 slides from Ferrari Nv's earnings presentation, Feb 1, 2018
Slide 1: FY 2017 Results
FY 2017 Results February 1st, 2018 FY 2017 Results February 1st, 2018 11
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2018 Outlook” and the “Mid-term outlook until 2022”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”
Slide 3: 2017 Is Another Record Year
2017 IS ANOTHER RECORD YEAR • Solid revenues of €3.4 billion (+10.0%) driving adj. EBIT(1) to €775 million (+22.7%) • Two successful launches: the 812 Superfast and the Ferrari Portofino, further strengthening waiting lists • “International Engine of the year” and “Red Dot: Best of the Best” design
Slide 4: 2017 Product Launches
2017 PRODUCT LAUNCHES CONTINUOUSLY STRENGTHENING OUR WAITING LIST FY 2017 Results February 1st, 2018 44
Slide 5: FY 2017 Highlights
FY 2017 HIGHLIGHTS Shipments FY '17 8,398 Net revenues FY '17 3,417 (units) (€M) FY '16 8,014 FY '16 3,105 Total shipments increased by 384 units (+4.8% vs. PY) mainly driven by 25.1% increase in V12 Net revenues up 10.0% (11.2% at constant currencies) models while V8 models were in line with prior
Slide 6: FY 2017 – Shipments by Region
FY 2017 – SHIPMENTS BY REGION(3) Americas +4.6% • USA – in Ferrari’s single largest market shipments increased by 2.8% driven by a strong performance of the 488 family and the GTC4Lusso, as well as the limited edition LaFerrari Aperta. This was partially offset by the California T and the F12berline
Slide 7: Net Revenues Bridge FY 2016-2017
NET REVENUES BRIDGE FY 2016-2017 (€M) +12.7% +10.5% +1.1% -5.1% +10.0%, +€312 million 3,417 (+11.2% at constant currencies) 3,105 276 35 6 94 99 (5) 494 488 373 338 2,180 2,456 FY 2016 Cars and spare parts (4) Engines (5) Sponsorship, Other (7 ) FY 2017 commercial and brand(6 ) Cars and spare parts
Slide 8: Adj. EBIT Bridge FY 2016 – 2017
ADJ. EBIT BRIDGE FY 2016 – 2017(1) 80 (€M) 74 67 748 27 775 (23) (27) 706 (48) (7) 632 Margin Margin Margin Margin 22.1%(8) 22.7% 20.4% 22.2%(8) Adj. EBIT FY FX hedges Adj. EBIT FY Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT FY FX hedges Adj. EBIT FY 2016 FY 2016 2016 w/o FX R&D 2017 w/o FX FY 201
Slide 9: Net Industrial Debt Bridge Dec 31, 2016 – Dec 31, 2017
NET INDUSTRIAL DEBT BRIDGE(1) DEC 31, 2016 – DEC 31, 2017 (€M) Industrial FCF €328m 1,036 (653) (27) (473) (45) (121) (387) (215) (61) December 31, EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other December 31, 2016 capital and dividends 2017 Net Industrial paid Net Industrial
Slide 10: FY 2017 – Client Relations Activities
FY 2017 – CLIENT RELATIONS ACTIVITIES PRODUCT LAUNCHES DRIVING EVENTS WORLD TOUR Italy, June 8th – 11th China, August 12th – 17th USA, October 6th – 8th Australia, October 9th – 15th FY 2017 Results February 1st, 2018 10
Slide 11: FY 2017 – Sporting GT Activities
FY 2017 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMS / F1 CLIENTI FIA WEC Average entries per round Average entries per round 2017 Team, Drivers and Manufacturer EUROPE 41 XX: 25 Champions NORTH AMERICA 42 F1: 10 IMSA ASIA PACIFIC 30 2017 Team, Drivers and Manufacturer FXX K
Slide 12: FY 2017 – Other Activities
FY 2017 – OTHER ACTIVITIES Licensing • New License agreements with: • Luxottica for Scuderia Ferrari eyewear collection by Ray-Ban • Cybex for Scuderia Ferrari infant car seats and a collection of strollers • Bianchi for Scuderia Ferrari bikes • License agreement renewal with Movado Group for Scuder
Slide 13: 2018 Outlook
2018 OUTLOOK 2017 Actual 2018 Outlook 2018 Drivers Shipments(10) 8,398 > 9,000 Strong contribution from range models and new model launches Top line growth driven by strong Volume, higher Net Revenues €3.4 billion > €3.4 billion Sponsorship and better F1 ranking revenues, partially offset by lower L
Slide 14: Mid-Term Outlook
MID-TERM OUTLOOK Adj. EBITDA Industrial FCF Net Industrial Debt(*) €2 billion €1.2 billion FREE no later than no later than No later than 2022 2022 2021 Note:(*) Including dividend/capital distributions and excluding share repurchases FY 2017 Results February 1st, 2018 14
Slide 15: Appendix
Appendix
Slide 16: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are provided in 6. Includes the net revenues earned by our Formula 1 racing team the appendix through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues 2. Subject t
Slide 17: 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) Model / Years of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider V8 Califo
Slide 18: Limited Series
LIMITED SERIES In and out from our portfolio Mode l / Ye ars of de l i ve ry 2015 2016 2017 2018 F12tdf LaFerrari LaFerrari Aperta FXX K(13) FXX K EVO(13) F60 America(13) J50(13) FY 2017 Results Note: (13) Models not included in the total shipments’ figure provided February 1st, 2018 18
Slide 19: Group Shipments
GROUP SHIPMENTS(3) >9,000 +4.8% 8,398 8,398 8,014 >1,300 +4.0% 1,233 1,233 2,017 1,098 >700 1,940 617 617 619 280 321 123 164 >3,000 2,687 2,811 2,811 689 733 3,610 3,737 3,737 >4,000 848 799 Q4 2016 Q4 2017 FY 2016 FY 2017 FY 2017 FY 2018E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS Q4 '17 Q4 '16 €M, unless otherwise stated FY '17 FY '16 2,017 1,940 Worldwide shipments (units) 8,398 8,014 840 836 Net revenues 3,417 3,105 ( 1) 258 224 EBITDA 1,036 843 - 27 Adjustments - 37 258 251 Adjusted EBITDA ( 1) 1,036 880 64 68 Amortization and depreciation 261 248
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities Adj. 700 (€M) FY 2017 FY 2016 FY 2015(14) FY 2015 500 306 Euro 435 318 137 22 188 700 US Dollar 88 16 21 1 51 500 4 119 Chinese Yuan 62 58 106 106 255 185 2 117 Japanese Yen 26 37 41 41 2
Slide 22: 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 expenses and various Non-GAAP financial measures that depreciation and amortization. Adjusted EBITDA is defined as EBITDA as ad
Slide 23: Reconciliation of Non-GAAP Measures: Adjusted EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBIT Q4 '17 Q4 '16 €M FY '17 FY '16 194 156 EBIT 775 595 Charges for Takata airbag - 27 - 37 inflator recalls 194 183 Adjusted EBIT 775 632 FY 2017 Results February 1st, 2018 23
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q4 '17 Q4 '16 €M FY '17 FY '16 136 112 Net profit 537 400 54 41 Income tax expenses 209 167 4 3 Net financial expenses 29 28 64 68 Amortization and depreciation 261 248 258 224 EBITDA 1,036 843 FY 2017 Results February 1st, 2018 24
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA Q4 '17 Q4 '16 €M FY '17 FY '16 258 224 EBITDA 1,036 843 Charges for Takata airbag - 27 - 37 inflator recalls 258 251 Adjusted EBITDA 1,036 880 FY 2017 Results February 1st, 2018 25
Slide 26: Reconciliation of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED NET PROFIT Q4 '17 Q4 '16 €M FY '17 FY '16 136 112 Net profit 537 400 Charges for Takata airbag - 18 - 25 inflator recalls (net of tax effect) 136 130 Adjusted net profit 537 425 FY 2017 Results February 1st, 2018 26
Slide 27: Basic and Diluted EPS
BASIC AND DILUTED EPS Q4 '17 Q4 '16 €M (unless otherwise stated) FY '17 FY '16 Net profit attributable to owners 135 111 535 399 of the Company Weighted average number of common 188,954 188,923 188,951 188,923 shares (thousand) 0.72 0.59 Basic EPS (€) 2.83 2.11 Weighted average number of common 189,
Slide 28: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EPS Q4 '17 Q4 '16 € per common share FY '17 FY '16 0.72 0.59 Basic EPS 2.83 2.11 Charges for Takata airbag - 0.10 - 0.14 inflator recalls (net of tax effect) 0.72 0.69 Adjusted EPS 2.83 2.25 0.71 0.59 Diluted EPS 2.82 2.11 Charges for Takata airbag - 0.1
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 Q4 '17 Q4 '16 €M FY '17 FY '16 156 439 Cash flow from operating activities 671 1,005 (140) (88) Cash flows used in investing activitie s ( 16) (387) (320) 16 351 Free Cash Flow 284 685 Change in the sel
Slide 30: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 Net Industrial Debt (473) (485) (627) (578) (653) Funded portion of the self-liquidating 685 694 705 723 737 financial receivables portfolio Net Debt (1,158