Ferrari Nv · MIL:RACE
Ferrari Nv — Q3 2020 Earnings Presentation
23 slides from Ferrari Nv's earnings presentation, Nov 3, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results November 3, 2020 Q3 2020 Results November 3, 2020 1
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document, and in particular the section entitled “2020 Guidance” contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “remain”, “on track”, “suc
Slide 3: On track to reach the top end of the full year guidance on all metrics
ON TRACK TO REACH THE TOP END OF THE FULL YEAR GUIDANCE ON ALL METRICS Revenues at €888 million, -3% vs. prior year, with Cars and spare parts up 2.6% driven by the Ferrari Monza SP1 and SP2. EBITDA(1) at €330 million, up 6.4% vs. prior year. Positive Industrial free cash flow(1) generation of €77 m
Slide 4: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) Q3 '20 2,313 Q3 '20 888 -6.5% -3.0% Q3 '19 2,474 Q3 '19 915 EBITDA(1) EBIT (€M and margin %) (€M and margin %) Q3 '20 330 37.2% Q3 '20 222 25.0% +6.4% -2.1% Q3 '19 311 33.9% Q3 '19 227 24.8% DILUTED EARNINGS PER SHARE(1) INDUSTRIAL FREE CASH
Slide 5: Diligent production planning to recover 500 units in 2020
Q3 2020 – SHIPMENTS(2) SHIPMENTS BY REGION(3) Total shipments decreased by 161 units (-6.5% vs. PY) SHIPMENTS BREAKDOWN (Q3 2020 vs. Q3 2019) driven by the cadence of the full year production plan, (Q3 2020) which projects a recovery of 500 units out of the 2,000 EMEA +12.7% lost following the seven
Slide 6: Net Revenues Bridge Q3 2019 – 2020
NET REVENUES BRIDGE Q3 2019 – 2020 -3.0%, -€27 million -3.2%, -€29 million at constant currency(8) Cars and spare parts: growth reflecting positive mix, thanks to the Ferrari Monza SP1 and SP2. Partially offset by lower (€M) +2.4% -4.4% -31.8% -4.2% volume mostly due to the phase-out of the 488 Pi
Slide 7: EBIT Bridge Q3 2019 – 2020
EBIT BRIDGE Q3 2019 – 2020 (€M) 5 18 46 227 7 234 224 222 (60) (19) (2) Margin Margin Margin Margin 24.8% 25.4% 25.1% 25.0% EBIT Q3 2019 FX hedges EBIT Q3 2019 Vol. Mix / Price Ind. Costs / SG&A Other EBIT Q3 2020 Change in FX EBIT Q3 2020 Q3 2019 w/o FX hedges R&D at constant 2019 vs. 2020 (8) curr
Slide 8: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES JUN 30, 2020 – SEPT 30, 2020 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 77 322 (776) (68) (3) - (13) (715) (19) (158) 77 (9) EBITDA ∆ in working Cash interest & Capex Industrial FCF June 30, 2020 Industrial FCF Dividends Q3
Slide 9: 2020 Guidance revised to the top end of the August 3rd guidance
2020 GUIDANCE(10) REVISED TO THE TOP END OF THE AUGUST 3rd GUIDANCE AUGUST 3rd 2020 2020 (€B, unless otherwise stated) 2019A GUIDANCE GUIDANCE NET REVENUES 3.8 > 3.4 > 3.4 1.27 1.075-1.125 ~1.125 ADJ. EBITDA (margin %) 33.7% 31%-32.5% ~32.5% 0.92 0.65-0.70 ~0.70 ADJ. EBIT (margin %) 24.4% 18.5%-20%
Slide 10: Appendix
APPENDIX Q2 2020 Results August 3, 2020 10
Slide 11: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the 6. Includes net revenues earned by our Formula 1 racing team through Appendix sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as revenues generated 2.
Slide 12: Strong Track-Record in New Models Introduction: Range models
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models introduced 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 Superfast F8 Tributo
Slide 13: Strong Track-Record in New Models Introduction: Special and Limited edition
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models introduced 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 Speciale 458 Speci
Slide 14: Group Shipments by Region
GROUP SHIPMENTS BY REGION(2)(3) -6.5% -17.0% 7,755 2,474 1,137 2,313 -23 6,440 2 -2.0% 400 776 +0.5% 1,114 402 -595 159 -40 -76.7% -25.2% 181 119 2,295 -660 -268 504 -28.8% 1,635 772 -34.7% 145 -37 +12.7% 1,288 3,547 -1.0% 3,510 1,143 Q3 2019 Q3 2020 9M 2019 9M 2020 EMEA Americas Mainland China, Hon
Slide 15: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Sept. 30 At Jun. 30 At Mar. 31 At Dec. 31 (€M) 2020 2020 2020 2019 2018 2017 (715) Debt (2,741) (2,757) (2,141) (2,090) (1,927) (1,806) (1,562) Cash & Cash Equivalents (A) 1,179 1,112 880 898 794 648 (847) Net Debt (1,5
Slide 16: Historical Trend
HISTORICAL TREND Net Debt / Adj. LTM EBITDA 1.6x 1.4x 1.1x 1.0x 0.9x FY 2016 FY 2017 FY 2018 FY 2019 LTM September 2020 Net Industrial Debt / Adj. LTM EBITDA 0.8x 0.6x 0.5x 0.3x 0.3x FY 2016 FY 2017 FY 2018 FY 2019 LTM September 2020 As of September 30, 2020, total available liquidity was €1,879 mil
Slide 17: Capex and R&D
CAPEX AND R&D Q3 '20 Q3 '19 €M 9M '20 9M '19 167 145 Capital expenditures 490 453 79 77 of which capitalized development costs ( 1 2) (A) 222 228 Research and development 111 129 373 423 costs expensed (B) 190 206 Total research and development (A+B) 595 651 Amortization of capitalized 47 33 132 94
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 Q3 '20 Q3 '19 €M, unless otherwise stated 9M '20 9M '19 888 915 Net revenues 2,391 2,839 330 311 EBITDA / Adjusted EBITDA 771 936 322 305 of which EBITDA (Industrial Activities, only) 752 923 108 84 Amortization and depreciation 306 23
Slide 20: Total Net Revenues at Constant Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT CURRENCY(8) Q3 '20 9M '20 Q3 '20 €M 9M '20 at constant currency at constant currency 727 731 Cars and spare parts 1,965 1,957 44 44 Engines 97 97 93 93 Sponsorship, commercial and brand 265 265 24 25 Other 64 64 888 893 Total Net R
Slide 21: Basic and Diluted EPS
BASIC AND DILUTED EPS Q3 '20 Q3 '19 €M, unless otherwise stated 9M '20 9M '19 Net profit attributable to owners 171 168 346 529 of the Company Weighted average number of common 184,748 186,504 184,825 187,196 shares (thousand) 0.92 0.90 Basic EPS (€) 1.87 2.82 Weighted average number of common 185,3
Slide 22: 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 '20 Q3 '19 €M 9M '20 9M '19 218 266 Cash flow from operating activities 428 949 Investments in property, plant and (158) (145) (465) (453) equipment and intangible assets ( 1 3) 60 121 Free Cash Flo
Slide 23: Reconciliations of non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 Debt (2,741) (2,757) (2,141) (2,090) (1,927) (1,806) of which: Lease liabilities as per IFRS 16 68 68 72 60 - - (simplified approach) Cas