Ferrari Nv · MIL:RACE
Ferrari Nv — Q3 2017 Earnings Presentation
30 slides from Ferrari Nv's earnings presentation, Nov 2, 2017
Slide 1: Q3 2017 Results
Q3 2017 Results November 2nd, 2017 Q3 2017 Results November 2nd, 2017 11
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2017 Outlook”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “successful”,
Slide 3: A Record Third Quarter
A RECORD THIRD QUARTER • Solid revenues of €836 million (+7%) driving adj. EBIT(1) to €202 million (+17%) • Ferrari Portofino presented in September, already with a robust waiting list • Strong success of Ferrari’s client relations activities • 2017 Outlook revised upward ON THE WAY TO 1 BILLION EUR
Slide 4: Q3 2017 Highlights
Q3 2017 HIGHLIGHTS Shipments Q3 '17 2,046 Net revenues Q3 '17 838 836 (units) +3.4% (€M) +6.7% Q3 '16 1,978 Q3 '16 783 783 Total shipments up 68 units mainly driven by 27% increase in V12 models. Few units decrease of Net revenues up 6.7% (9.3% at constant currencies, mainly due to USD weakening vs.
Slide 5: Q3 2017 – Shipments by Region
Q3 2017 – SHIPMENTS BY REGION(2) Americas +5.0% • USA – increased by 1% with a strong performance of the 488 family, the GTC4Lusso and the limited edition LaFerrari Aperta. Partially offset by California T and the F12berlinetta phasing-out. The F12tdf is finishing its limited series run. • The GTC4L
Slide 6: Net Revenues Bridge Q3 2016-2017
NET REVENUES BRIDGE Q3 2016-2017 (€M) +12.7% -9.8% -1.3% -18.8% +6.7%, +€53 million 836 (+9.3% at constant currencies, mainly due to USD weakening vs. Euro) 68 783 19 24 (9) (1) (5) 124 125 88 97 537 605 Q3 2016 Cars and spare parts (3) Engines (4) Sponsorship, Other (6 ) Q3 2017 commercial and bran
Slide 7: Adj. EBIT Bridge Q3 2016 – 2017
ADJ. EBIT BRIDGE Q3 2016 – 2017(1) (€M) 23 202 14 0 17 7 179 185 172 (8) (2) (21) Margin Margin Margin Margin 22.6%(7) 24.2% 22.0% 22.7%(7) Adj. EBIT Q3 FX hedges Adj. EBIT Q3 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q3 FX hedges Adj. EBIT Q3 2016 Q3 2016 2016 w/o FX R&D 2017 w/o FX Q3 2017 201
Slide 8: Net Industrial Debt Bridge Jun 30, 2017 – Sept 30, 2017
NET INDUSTRIAL DEBT BRIDGE(1) JUN 30, 2017 – SEPT 30, 2017 (€M) Industrial FCF €147m 266 (627) 9 (1) (4) (485) (1) (93) (34) June 30, 2017 EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other September 30, Net Industrial capital and dividends 2017 Debt paid Net Industrial Debt •
Slide 9: Ferrari Portofino
A GT that represents a unique The renowned Ferrari V8 turbo, part of Capable of unleashing a massive 600 cv, combination of sportiness, elegance the engine family that was nominated the Ferrari Portofino is the most and on board comfort International Engine of the Year in powerful convertible to com
Slide 10: Q3 2017 – Client Relations Activities
Q3 2017 – CLIENT RELATIONS ACTIVITIES WORLD TOUR China, August 12th – 17th USA, August 18th – 20th Italy, September 2nd – 3rd Italy, September 8th – 10th Maranello Weekend September 8th – 10th Portofino World Premiere RM Auction September 7th - 8th Concours d’Elegance Frankfurt Motorshow September 1
Slide 11: Q3 2017 – Attività Sportive GT
Q3 2017 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMS / F1 CLIENTI FIA WEC 1st - 6 Hours of Circuit of the Americas Average entries per round Average entries per round (GTE-Pro) EUROPE 41 (round 5) XX: 23 IMSA NORTH AMERICA 45 (round 6) F1: 8 2017 Team, Drivers and Manufactur
Slide 12: Q3 2017 – Other Activities
Q3 2017 – OTHER ACTIVITIES Licensing • Launch of “Bianchi for Scuderia Ferrari” project with “SF01” world premiere at Eurobike show • New license agreement with Cybex for Scuderia Ferrari infant car seats and a collection of strollers Retail • At the end of September 2017, managing 18 directly opera
Slide 13: 2017 Outlook Revised Upward
2017 OUTLOOK REVISED UPWARD Revised Outlook Previous Outlook 2017 Drivers Shipments ~ 8,400(9) Same Strong contribution from range models (including special liveries) and LaFerrari Aperta Top line growth driven by Cars and spare parts as Net Revenues ~ €3.4 billion >€3.3 billion well as Engines, par
Slide 14: Q&A
Q&A Q3 2017 Results November 2nd, 2017 14
Slide 15: Appendix
Y Appendix
Slide 16: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are provided in licensing and royalty income the appendix 6. Primarily includes interest income generated by our financial 2. Shipments geographical breakdown services activities and net revenues from the management of the E
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) 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 California 30 458 Speciale Calif
Slide 18: Limited Series
LIMITED SERIES In and out from our portfolio 2015 2016 2017 2018 F12tdf LaFerrari LaFerrari Aperta FXX K(11) F60 America(11) J50(11) Q3 2017 Results Note: (11) Models not included in the total shipments’ figure provided November 2nd, 2017 18
Slide 19: Group Shipments
GROUP SHIPMENTS(2) +5.1% 6,381 ~8,400 6,074 8,014 +3.4% 2,046 912 ~1,150 1,978 818 1,098 255 453 ~650 238 496 619 152 180 2,078 ~2,800 1,998 2,687 736 701 2,762 2,938 3,610 ~3,800 859 903 Q3 2016 Q3 2017 9M 2016 9M 2017 FY 2016 FY 2017E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on a co
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS Q3 '17 Q3 '16 €M, unless otherwise stated 9M '17 9M '16 2,046 1,978 Worldwide shipments (units) 6,381 6,074 836 783 Net revenues 2,577 2,269 266 234 EBITDA ( 1) 778 619 - - Adjustments - 10 266 234 Adjusted EBITDA ( 1) 778 629 64 62 Amortization and depreciation 197 180 202 1
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities 500 Sep. 30 Jun. 30 Mar. 31 Adj. 442 383 (€M) 2017 2017 2017 FY 2016 FY 2015(12) FY 2015 4 4 302 240 181 2 Euro 443 280 394 318 137 22 169 101 500 41 US Dollar 60 24 59 16 21 1 29 199 199
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 Q3 '17 Q3 '16 €M 9M '17 9M '16 202 172 EBIT 581 439 Charges for Takata airbag - - - 10 inflator recalls 202 172 Adjusted EBIT 581 449 Q3 2017 Results November 2nd, 2017 23
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q3 '17 Q3 '16 €M 9M '17 9M '16 141 113 Net profit 401 288 53 48 Income tax expenses 155 126 8 11 Net financial expenses 25 25 64 62 Amortization and depreciation 197 180 266 234 EBITDA 778 619 Q3 2017 Results November 2nd, 2017 24
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA Q3 '17 Q3 '16 €M 9M '17 9M '16 266 234 EBITDA 778 619 Charges for Takata airbag - - - 10 inflator recalls 266 234 Adjusted EBITDA 778 629 Q3 2017 Results November 2nd, 2017 25
Slide 26: Reconciliation of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED NET PROFIT Q3 '17 Q3 '16 €M 9M '17 9M '16 141 113 Net profit 401 288 Charges for Takata airbag - - - 7 inflator recalls (net of tax effect) 141 113 Adjusted net profit 401 295 Q3 2017 Results November 2nd, 2017 26
Slide 27: Basic and Diluted EPS
BASIC AND DILUTED EPS Q3 '17 Q3 '16 €M (unless otherwise stated) 9M '17 9M '16 Net profit attributable to owners 140 113 400 288 of the Company Weighted average number of common 188,954 188,923 188,951 188,923 shares (thousand) 0.74 0.59 Basic EPS (€) 2.11 1.52 Weighted average number of common 189,
Slide 28: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EPS Q3 '17 Q3 '16 € per common share 9M '17 9M '16 0.74 0.59 EPS 2.11 1.52 Charges for Takata airbag - - - 0.04 inflator recalls (net of tax effect) 0.74 0.59 Adjusted EPS 2.11 1.56 Q3 2017 Results November 2nd, 2017 28
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 Q3 '17 Q3 '16 €M 9M '17 9M '16 227 250 Cash flow from operating activities 515 566 (93) (75) Cash flows used in investing activitie s ( 14) (247) (232) 134 175 Free Cash Flow 268 334 Change in the self-
Slide 30: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 Net Industrial Debt (485) (627) (578) (653) Funded portion of the self-liquidating 694 705 723 737 financial receivables portfolio Net Debt (1,179) (1,332) (1,301) (1,390) Ca