Ferrari Nv · MIL:RACE
Ferrari Nv — Q3 2019 Earnings Presentation
37 slides from Ferrari Nv's earnings presentation, Nov 4, 2019
Slide 1: Q3 2019 Results
November 4th, 2019 Q3 2019 Results November 4th, 2019 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the sections entitled “Brand Diversification Strategy” and “Upgraded 2019 Guidance” contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “
Slide 3: Solid Q3 2019 on all metrics; upgraded guidance
SOLID Q3 2019 ON ALL METRICS Revenues up 9% and operating profitability up 11%. Adjusted diluted EPS(1) of €0.90 (+17%) and industrial free cash flow generation(1) of €138 million. Over 14,000 customers and fans had a chance to experience the many facets of the marque all in one place at Universo Fe
Slide 4: Q3 2019 Results November 4 th , 2019
Q3 2019 Results November 4th, 2019 44
Slide 5: Q3 2019 Results November 4 th , 2019
Q3 2019 Results November 4th, 2019 55
Slide 6: Brand Diversification Strategy
BRAND DIVERSIFICATION STRATEGY Q3 2019 Results November 4th, 2019 6
Slide 7: Ferrari Brand Diversification: Dual Identity but One Unique Brand
FERRARI BRAND DIVERSIFICATION: DUAL IDENTITY BUT ONE UNIQUE BRAND ENHANCE THE VIBRANCY AND VITALITY OF THE FERRARI BRAND WHILST FOCUSING THE CURRENT OFFER Q3 2019 Results November 4th, 2019 7
Slide 8: Brand Diversification Strategic Pillars
BRAND DIVERSIFICATION STRATEGIC PILLARS BRAND EXTENSION ENTERTAINMENT CAR ADJACENCIES FOR BRAND LOVERS FOR THE “TIFOSI” OF THE BRAND FOR FERRARI CAR OWNERS A refined collection of products Ferrari Entertainment Universe Exclusive luxury products and services embodying Ferrari DNA leveraging unique r
Slide 9: Brand Extension: A Refined and Contemporary Offer
BRAND EXTENSION: A REFINED AND CONTEMPORARY OFFER Elevate the standards and quality of our apparel products and accessories Strong focus on Made in Italy Manufacturing agreement with the Giorgio Armani Group Overhaul of our store concept and omnichannel distribution New dedicated team with
Slide 10: Ferrari Entertainment Universe: For New and Younger Fans
FERRARI ENTERTAINMENT UNIVERSE: FOR NEW AND YOUNGER FANS Launch of Ferrari Esports platform: Ferrari Driver Academy team competing in F1 Esports championship Ferrari monobrand Esports championship to start in H1 2020 with live events in Ferrari Theme Parks, museums, races… Expand Ferrari the
Slide 11: Car Adjacencies: A Unique Luxury Offer for Car Owners
CAR ADJACENCIES: A UNIQUE LUXURY OFFER FOR CAR OWNERS MANIFATTURA FERRARI MARANELLO EXPERIENCE Very limited editions and one-off artifacts embodying An example is the opening of a refined restaurant inherent craftsmanship and innovative spirit behind with the Michelin-starred chef Massimo Bottura in
Slide 12: Building Foundations for the Long-Term
BUILDING FOUNDATIONS FOR THE LONG–TERM Retail value of Ferrari branded goods(2) New offer aligned to Ferrari brand equity managed by a new, devoted and experienced team € 800 Opportunity to capture more retail value MILLION Target to contribute ~10% of overall Ferrari profitability within the
Slide 13: Q3 2019 Results
Q3 2019 RESULTS Q3 2019 Results November 4th, 2019 13
Slide 14: Q3 2019 Highlights
Q3 2019 HIGHLIGHTS SHIPMENTS(3) NET REVENUES (UNITS) (€M) Q3 '19 2,474 Q3 '19 915 +9.4% +9.2% Q3 '18 2,262 Q3 '18 838 ADJUSTED EBITDA(1) ADJUSTED DILUTED EARNINGS PER SHARE(1) (€M and margin %) (€) Q3 '19 0.90 Q3 '19 4 311 33.9% +11.5% +16.9% Q3 '18 0.77 Q3 '18 278 33.2% Positive impact from IFRS 16
Slide 15: Q3 2019 Shipments: Controlling Growth Among Geographies
Q3 2019 – SHIPMENTS(3) SHIPMENTS BY REGION(4) Total shipments increased by 212 units (+9.4% vs. SHIPMENTS BY PILLAR (Q3 2019 vs. Q3 2018) (Q3 2019 vs. Q3 2018) PY) supported by a 9.5% increase in V8 models and a 8.9% one in V12 models: AMERICAS +0.3% (31% vs. 34% PY) EMEA +13.7% Robust deliveries
Slide 16: Net Revenues Bridge Q3 2018-2019
NET REVENUES BRIDGE Q3 2018-2019 +9.2%, +€77 million at current currency +7.1%, +€60 million at constant currency(9) Cars and spare parts: growth reflecting volume increase of the Ferrari Portofino, the 812 Superfast, the 488 (€M) +12.5% -34.3% +3.9% +8.3% Pista and the 488 Pista Spider, partially
Slide 17: Adj. EBIT Bridge Q3 2018-2019
ADJ. EBIT BRIDGE Q3 2018 – 2019(1) (€M) 23 214 227 203 2 205 20 14 13 (40) (8) Margin Margin Margin Margin 24.2% 24.4% 23.8% 24.8% Adj. EBIT Q3 FX hedges Adj. EBIT Q3 Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT Q3 Change in FX Adj. EBIT Q3 2018 Q3 2018 2018 w/o FX R&D 2019 at 2018 vs. 2019 20
Slide 18: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES JUNE 30, 2019 - SEPT 30, 2019 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 138 (1) (369) 305 (4) (18) (353) (153) (145) 138 Adj. EBITDA ∆ in working Cash interest & Capex Industrial FCF June 30, 2019 Industrial FCF Q3 2019 Sha
Slide 19: Upgraded 2019 Guidance
UPGRADED 2019 GUIDANCE (€B, unless otherwise stated) Previous Current NET REVENUES >3.5 ~3.7 1.2-1.25 ~1.27 ADJ. EBITDA (margin %) ~34% ~34% 0.85-0.9 ~0.92 ADJ. EBIT (margin %) ~24.5% ~24.5% ADJ. DILUTED EPS (€) 3.50-3.70(11) 3.70-3.75(12) IND. FCF >0.55 >0.6 Note: (11) Calculated using the weighted
Slide 20: Appendix
APPENDIX Q3 2019 Results November 4th, 2019 20
Slide 21: 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 22: 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 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 Superfa
Slide 23: 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 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 Speci
Slide 24: Group Shipments by Region
GROUP SHIPMENTS BY REGION(3)(4) +13.2% 7,755 +9.4% 6,853 +176 1,137 2,474 +18.3% 961 776 2,262 +75 +254 400 522 +48.7% +23.1% 325 (3) 159 +106 2,295 162 (1.9%) 2,189 +4.8% +2 772 770 +0.3% +366 +138 +11.5% 3,547 3,181 +13.7% 1,143 1,005 Q3 2018 Q3 2019 9M 2018 9M 2019 EMEA Americas Mainland China, H
Slide 25: Group Shipments by Pillar
GROUP SHIPMENTS BY PILLAR(3) -% 0% -% 0% 2% 2% 28% 39% 61% 73% 36% 21% 37% 40% 36% 25% Q3 2018 Q3 2019 9M 2018 9M 2019 GT Sport Special Series Icona Note: (3) Refer to notes to the presentation in the Appendix Q3 2019 Results Graphs not to scale. November 4th, 2019 25
Slide 26: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Sep. 30 At Jun. 30 At Mar. 31 At Dec. 31 (369) (€M) 2019 2019 2019 2018 2017 2016 Debt (2,108) (2,048) (2,064) (1,927) (1,806) (1,848) (1,237) Cash & Cash Equivalents (A) 871 881 1,062 794 648 458 (868) Net Debt (1,237)
Slide 27: Capex and R&D
CAPEX AND R&D Q3 '19 Q3 '18 €M 9M '19 9M '18 145 154 Capital expenditures 453 403 77 87 of which capitalized development costs ( 14) (A) 228 216 Research and development 129 113 423 397 costs expensed (B) 206 200 Total research and development (A+B) 651 614 Amortization of capitalized 33 30 94 85 de
Slide 28: 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 29: Key Performance Metrics and Reconciliations of Non-GAAP Measures
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES Q3 '19 Q3 '18 €M, unless otherwise stated 9M '19 9M '18 915 838 Net revenues 2,839 2,575 311 278 EBITDA 936 841 - - Adjustments - (1) 311 278 Adjusted EBITDA 936 840 305 274 of which Adj. EBITDA (Industrial Activities, only) 923 827 84
Slide 30: Total Net Revenues at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY(9) Q3 '19 Q3 '19 9M '19 9M '19 €M at current currency at constant currency at current currency at constant currency 708 695 Cars and spare parts 2,209 2,166 46 46 Engines 157 157 135 133 Sponsorship, commercial
Slide 31: Adjusted EBIT
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT Q3 '19 Q3 '18 €M 9M '19 9M '18 227 203 EBIT 698 631 Release of charges for Takata airbag - - - (1) inflator recalls 227 203 Adjusted EBIT 698 630 Certain totals in the tables included in this document may not add due to rounding Q3 2019 Results Nov
Slide 32: Adjusted EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA Q3 '19 Q3 '18 €M 9M '19 9M '18 311 278 EBITDA 936 841 Release of charges for Takata airbag - - - (1) inflator recalls 311 278 Adjusted EBITDA 936 840 Certain totals in the tables included in this document may not add due to rounding Q3 2019 Resul
Slide 33: Adjusted Net Profit
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT Q3 '19 Q3 '18 €M 9M '19 9M '18 169 287 Net profit 533 596 Patent Box benefit - (141) - (141) for the period 2015-2017 Release of charges for Takata airbag - - - (1) inflator recalls (net of tax effect) 169 146 Adjusted net profit 533 454 Cert
Slide 34: Basic and Diluted EPS
BASIC AND DILUTED EPS Q3 '19 Q3 '18 €M (unless otherwise stated) 9M '19 9M '18 Net profit attributable to owners 168 287 529 595 of the Company Weighted average number of common 186,504 188,646 187,196 188,712 shares (thousand) 0.90 1.52 Basic EPS (€) 2.82 3.15 Weighted average number of common 187,
Slide 35: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q3 '19 Q3 '18 € per common share 9M '19 9M '18 0.90 1.52 Basic EPS 2.82 3.15 Patent Box benefit - (0.74) - (0.74) for the period 2015-2017 Release of charges for Takata - - - (0.01) airbag inflator recalls (net of tax effect) 0.90 0.78 Adjusted EPS
Slide 36: 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 Q3 '19 Q3 '18 €M 9M '19 9M '18 266 233 Cash flow from operating activities 949 619 Investments in property, plant and (145) (154) (453) (403) equipment and intangible assets 121 79 Free Cash Flow 496 2
Slide 37: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Debt (2,108) (2,048) (2,064) (1,927) of which: Lease liabilities as per IFRS 16 63 63 63 - (simplified approach) Cash and cash equivalents 871 881 1,062 794 Net Debt (1,237)