Ferrari Nv · MIL:RACE
Ferrari Nv — Q1 2019 Earnings Presentation
24 slides from Ferrari Nv's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Results
Q1 2019 Results May 7th, 2019 Q1 2019 Results May 7th, 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: Ferrari Portofino Drives Solid Q1 2019 Results
FERRARI PORTOFINO DRIVES SOLID Q1 2019 RESULTS Significant revenue growth with reported operating margins consistent with our 2019 guidance Diluted EPS(1) of €0.95 (+21.8%) and strong industrial free cash flow generation(1) of €282 million Successfully presented the Ferrari F8 Tributo at the Geneva
Slide 4: Ferrari F8 Tributo
Homage to both the model’s uncompromising layout and to the most powerful V8 engine in the Prancing Horse history for a non-special series car Q1 2019 Results May 7th, 2019 44
Slide 5: Q1 2019 Highlights
Q1 2019 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) Q1 '19 2,610 Q1 '19 940 +22.7% +13.1% Q1 '18 2,128 Q1 '18 831 ADJUSTED EBITDA(1) DILUTED EARNINGS PER SHARE(1) (€M and margin %) (€) Q1 '19 0.95 Q1 '19 4 311 33.1% +14.1% +21.8% Q1 '18 0.78 Q1 '18 272 32.8% Positive impact from IFRS 16 first
Slide 6: Attracting New Ferraristi Thanks to the Ferrari Portofino
Q1 2019 – SHIPMENTS(2) SHIPMENTS BY REGION(3) SHIPMENTS BY PILLAR Total shipments increased by 482 units (+22.7% AMERICAS vs. PY) supported by a 30.6% increase in V8 +26.5% EMEA +9.6% models and a 4.1% increase in V12 models: -% (28% vs. 27% PY) (46% vs. 52% PY) ICONA Robust deliveries for the Fer
Slide 7: Net Revenues Bridge Q1 2018-2019
NET REVENUES BRIDGE Q1 2018-2019 +13.1%, +€109 million at current currency +11.1%, +€92 million at constant currency(8) Cars and spare parts: growth reflecting volume increase of the Ferrari Portofino, the 812 Superfast as well as (€M) +18.3% -23.4% -1.2% +3.9% ramp up of the 488 Pista, partially
Slide 8: Adj. EBIT Bridge Q1 2018-2019
ADJ. EBIT BRIDGE Q1 2018 – 2019(1) (€M) 60 17 232 210 205 (22) 215 (11) (4) (13) (5) Margin Margin Margin Margin 25.3% 24.8% 23.4% 24.7% Adj. EBIT Q1 FX hedges Adj. EBIT Q1 Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT Q1 Change in FX Adj. EBIT FY 2018 Q1 2018 2018 w/o FX R&D 2019 at 2018 vs. 2
Slide 9: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT BRIDGES(1) DEC 31, 2018 – MAR 31, 2019 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 282 122 (13) (370) 308 (135) 282 10 (192) (63) (0) (51) Adj. EBITDA ∆ in working Cash interest & Capex Industrial FCF December 31, Industrial FCF Dividen
Slide 10: Delivering Solid Growth: 2019 Guidance Confirmed
2019 GUIDANCE CONFIRMED (€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 Q1
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 and royalty income Appendix 7. Primarily includes the interest income generated by our financial 2. Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre- services activities and the net r
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(2)(3) +22.7% 2,610 353 2,128 +80 +29.3% 328 273 +145 +79.2% 183 +151 720 569 +26.5% +106 +9.6% 1,209 1,103 Q1 2018 Q1 2019 EMEA Americas Mainland China, Hong Kong and Taiwan Rest of APAC Note: (2) (3) Refer to notes to the presentation in the Appendix Q1 2019 Results Graphs not to sc
Slide 16: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Mar. 31 At Dec. 31 (192) (€M) 2019 2018 2017 2016 Debt (2,064) (1,927) (1,806) (1,848) (1,002) Cash & Cash Equivalents (A) 1,062 794 648 458 (810) Net Debt (1,002) (1,133) (1,158) (1,390) Net Debt of Financial Services
Slide 17: Capex and R&D
CAPEX AND R&D €M Q1 '19 Q1 '18 Capital expenditures 135 121 of which capitalized development costs ( 12) (A) 65 57 Research and development 154 149 costs expensed (B) Total research and development (A+B) 219 206 Amortization of capitalized 31 24 development costs (C) Research and development costs a
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: Key Performance Metrics and Reconciliations of Non-GAAP Measures
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES €M, unless otherwise stated Q1 '19 Q1 '18 Net revenues 940 831 EBITDA 311 272 Adjustments - - Adjusted EBITDA 311 272 of which Adj. EBITDA (Industrial Activities, only) 308 268 Amortization and depreciation 79 62 EBIT 232 210 Adjusted
Slide 20: Total Net Revenues at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY(8) Q1 '19 Q1 '19 €M at current currency at constant currency Cars and spare parts 735 718 Engines 58 58 Sponsorship, commercial and brand 128 124 Other 19 18 Total Net Revenues 940 918 Certain totals in the tab
Slide 21: Basic and Diluted EPS
BASIC AND DILUTED EPS €M (unless otherwise stated) Q1 '19 Q1 '18 Net profit attributable to owners 178 148 of the Company Weighted average number of common 187,680 188,846 shares (thousand) Basic EPS (€) 0.95 0.78 Weighted average number of common shares for diluted earnings per common 188,478 189,6
Slide 22: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS € per common share Q1 '19 Q1 '18 Basic EPS 0.95 0.78 Adjustments - - Adjusted EPS 0.95 0.78 Diluted EPS 0.95 0.78 Adjustments - - Adjusted diluted EPS 0.95 0.78 Certain totals in the tables included in this document may not add due to rounding Q1 20
Slide 23: Reconciliations: 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 €M Q1 '19 Q1 '18 Cash flow from operating activities 384 210 Investments in property, plant and (135) (121) equipment and intangible assets Free Cash Flow 249 89 Free Cash Flow from Financial Services
Slide 24: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M March 31, 2019 December 31, 2018 Debt (2,064) (1,927) of which: Lease liabilities as per IFRS 16 63 - first time adoption (simplified approach) Cash and cash equivalents 1,062 794 Net Debt (1,002) (1,133) Net Debt of Financial Services Act