Ferrari Nv · MIL:RACE
Ferrari Nv — Q1 2018 Earnings Presentation
28 slides from Ferrari Nv's earnings presentation, May 3, 2018
Slide 1: Q1 2018 Results
Q1 2018 Results Q1 2018 Results May 3 rd, 2018 May 3rd, 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: Kicking off 2018 with another record quarter
KICKING OFF 2018 WITH ANOTHER RECORD QUARTER • Solid revenues of €831 million and adj. EBIT(1) of €210 million reaching adj. EBIT margin(1) of 25.3%, up 370bps • Unveiled the 488 Pista, an extreme evolution of the most powerful V8 in Ferrari’s history • Strong waiting lists thanks to the recently la
Slide 4: 488 Pista unveiled
Developed directly from the company’s An extreme evolution of the most involvement in the FIA World Endurance powerful V8 in Ferrari history. Lighter and Championship and in the Ferrari more powerful than the 488 GTB with a Q1 2018 Results Challenge one-make series unique and unmistakableMay Ferrari
Slide 5: Q1 2018 Highlights
Q1 2018 HIGHLIGHTS Shipments Q1 '18 2,128 Net revenues Q1 '18 831 (units) +6.2% (€M) +1.3% Q1 '17 2,003 Q1 '17 821 Total shipments increased by 125 units (+6.2% vs. PY) supported by 23.5% increase in V12 Net revenues up 1.3% (6.3% at constant currencies) models while V8 models were in line with prio
Slide 6: Q1 2018 – Shipments by Region
Q1 2018 – SHIPMENTS BY REGION(2) Americas +4.4% • USA – in Ferrari’s single largest market shipments increased by over 2% driven by strong performance of the 812 Superfast as well as the 488 and the GTC4Lusso families. The limited edition LaFerrari Aperta is finishing its limited series run. This wa
Slide 7: Net Revenues Bridge Q1 2017-2018
NET REVENUES BRIDGE Q1 2017-2018 (€M) +5.2% -26.5% +2.3% +34.9% +1.3%, +€10 million 831 (+6.3% at constant currencies) 821 31 2 4 13 17 123 (27) 125 104 77 581 612 Q1 2017 Cars and spare parts (3) Engines (4) Sponsorship, Other (6 ) Q1 2018 commercial and brand(5 ) Cars and spare parts Engines Spons
Slide 8: Adj. EBIT Bridge Q1 2017 – 2018
ADJ. EBIT BRIDGE Q1 2017 – 2018(1) (€M) 15 1 7 24 210 24 177 (38) Margin Margin 21.6% 25.3% Top high end Adj. EBIT Q1 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q1 luxury 2017 R&D 2018 peers(7) Adj. E BITDA Adj. E BITDA EBITDA 242 272 Margin(7) 29.5% 32.8% 33% - 38% • Volume increase of approx. 1
Slide 9: Net Industrial Debt Bridge Dec 31, 2017 – Mar 31, 2018
NET INDUSTRIAL DEBT BRIDGE(1) DEC 31, 2017 – MAR 31, 2018 (€M) Industrial FCF €95m 272 (473) (413) (0) (5) (383) (30) (23) (3) (121) (30) December 31, EBITDA Net ∆ working Tax paid Capex Other Dividends FX and other March 31, Buyback March 31, 2017 capital paid 2018 2018 Net Industrial Net Industria
Slide 10: F1: Fighting at the Top
F1: FIGHTING AT THE TOP 1st place at the Australia and Bahrain GPs 5 podiums so far S. Vettel 2nd in Driver’s Championship @ 66 points Constructor’s Championship Driver’s Championship 1. Ferrari 114 1. Lewis Hamilton – Mercedes 70 2. Mercedes 110 2. Sebastian Vettel - Ferrari 66 3. Red Bull Racing T
Slide 11: Q1 2018 – Client Relations Activities
Q1 2018 – CLIENT RELATIONS ACTIVITIES PRODUCT LAUNCHES GENEVA MOTORSHOW Q1 2018 Results May 3rd, 2018 11
Slide 12: Q1 2018 – Sporting GT Activities
Q1 2018 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMS / F1 CLIENTI 2017 GT Racing Season Awards, more than 150 participants to the Night of Average entries per round Average entries per round Champions on Feb. 17, 2018 UPDATED ROUND 2 UPDATED ROUND 2 – ROAD ATLANTA (USA) EURO
Slide 13: Q1 2018 – Other Activities
Q1 2018 – OTHER ACTIVITIES Licensing • New License agreements with: • Artsana Group (Chicco) for Scuderia Ferrari 0-3 years toys • A.T. Cross for Scuderia Ferrari fine writing instruments Retail and e-commerce • Launch of new online flagship store powered by Yoox Net-A-Porter • At the end of March,
Slide 14: Waiting for our Capital Market Day: First Half of September 2018
WAITING FOR OUR CAPITAL MARKET DAY: FIRST HALF OF SEPTEMBER 2018 Q1 2018 Results May 3rd, 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 5. 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. Shipments
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 Californi
Slide 18: Limited Series
LIMITED SERIES In and out from our portfolio 2015 2016 2017 2018 F12tdf LaFerrari LaFerrari Aperta FXX K(8) FXX K EVO(8) F60 America(8) J50(8) 488 Pista Q1 2018 Results Note: (8) Models not included in the total shipments’ figure provided May 3rd, 2018 18
Slide 19: Group Shipments
GROUP SHIPMENTS(2) >9,000 8,398 >1,300 +6.2% 1,233 2,128 >700 2,003 617 273 263 183 >3,000 161 2,811 569 545 3,737 >4,000 1,034 1,103 Q1 2017 Q1 2018 FY 2017 FY 2018E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on a combined basis Note: (2) Refer to notes to the presentation in the Appen
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS €M, unless otherwise stated Q1 '18 Q1' 17 Worldwide shipments (units) 2,128 2,003 Net revenues 831 821 EBITDA ( 1) 272 242 Adjustments - - Adjusted EBITDA ( 1) 272 242 Amortization and depreciation 62 65 EBIT 210 177 Adjusted EBIT ( 1) 210 177 Net financial expenses 4 4 Profi
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities Mar. 31 Adj. 700 (€M) 2018 FY 2017 FY 2016 FY 2015(9) FY 2015 500 Euro 565 435 318 137 22 278 208 700 Chinese Yuan 78 62 58 106 106 55 147 500 4 US Dollar 61 88 16 21 1 223 2 205 145 Japa
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 €M Q1 '18 Q1' 17 EBIT 210 177 Adjustments - - Adjusted EBIT 210 177 Q1 2018 Results May 3rd, 2018 23
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA €M Q1 '18 Q1' 17 Net profit 149 124 Income tax expenses 57 49 Net financial expenses 4 4 Amortization and depreciation 62 65 EBITDA 272 242 Q1 2018 Results May 3rd, 2018 24
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA €M Q1 '18 Q1' 17 EBITDA 272 242 Adjustments - - Adjusted EBITDA 272 242 Q1 2018 Results May 3rd, 2018 25
Slide 26: Basic and Diluted EPS
BASIC AND DILUTED EPS €M (unless otherwise stated) Q1 '18 Q1' 17 Net profit attributable to owners 148 124 of the Company Weighted average number of common 188,846 188,948 shares (thousand) Basic EPS (€) 0.78 0.65 Weighted average number of common shares for diluted earnings per common 189,651 189,7
Slide 27: Reconciliation: Free Cash Flow and FCF from Industrial Activities
RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES €M Q1 '18 Q1' 17 Cash flow from operating activities 210 150 Cash flows used in investing activities ( 1 1 ) (121) (72) Free Cash Flow 89 78 Change in the self-liquidating financial 6 (2) receivables po
Slide 28: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M March 31, 2018 December 31, 2017 Net Industrial Debt (413) (473) Funded portion of the self-liquidating 666 685 financial receivables portfolio Net Debt (1,079) (1,158) Cash and cash equivalents 743 648 Gross Debt (1,822) (1,806) Q1 2018 Re