Ferrari Nv · MIL:RACE
Ferrari Nv — Q1 2016 Earnings Presentation
28 slides from Ferrari Nv's earnings presentation, May 2, 2016
Slide 1: Q1 2016 Results – May 2nd, 2016
Q1 2016 Results – May 2nd, 2016
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2016 Outlook”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “tar
Slide 3: Strongest ever Q1, on the way to another record year
STRONGEST EVER Q1, ON THE WAY TO ANOTHER RECORD YEAR Shipments at 1,882 units, increased New key product launched and by 15% vs. previous year recent events – All regions up due to strong start of new models – Recently presented GTC4Lusso the 488 GTB, 488 Spider and F12tdf – Scuderia Ferrari achieve
Slide 4: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS Q1'16 1,882 Q1'16 675 Shipments Net revenues (units) Q1'15 (€M) 1,635 Q1'15 621 Total shipments up 15% driven by a 21% increase in V8, which was partially offset by a 6% Net revenues up 8.8% (8.4% at constant FX) mainly driven by “cars and spare parts” as a result of decrease in V
Slide 5: Q1 2016 – Shipments by Region
Q1 2016 – SHIPMENTS BY REGION1 Americas EMEA (28% vs. 31% PY of total shipments) (51% vs. 47% PY of total shipments) Americas’ shipments increased by 2% EMEA’s shipments increased by 24% • USA – Ferrari’s largest single market: growth supported by V8 • UK – Ferrari’s largest market in EU recorded 4%
Slide 6: Net Revenues Bridge Q1 2015-2016
NET REVENUES BRIDGE Q1 2015-2016 €M 675 +8.8% 621 52 0 (+8.4% constant FX) (7) 9 19 19 118 109 57 64 429 481 Q1 2015 Cars and spare parts 2 Engines 3 Sponsorship, Other 5 Q1 2016 commercial and brand 4 Cars and spare parts Engines Sponsorship, commercial and brand Other Notes 2,3,4 and 5, refer to n
Slide 7: Adjusted EBIT Bridge Q1 2015-2016
ADJUSTED EBIT* BRIDGE Q1 2015-2016 €M 25 (8) 121 (1) 2 0 3 100 Margin Margin 18.0% Margi 16.1% Margi n n 15.7% 19.4% Adj. EBIT Q1'15 Vol Mix Ind. Costs / SG&A FX Other Adj. EBIT Q1'16 R&D Adj. EBITDA Adj. EBITDA 160 178 25.7% 26.3% • Increased volume of approx. 260 cars (excluding LaFerrari) thanks
Slide 8: Net Industrial Debt Bridge Dec 31, 2015 – Mar 31, 2016
NET INDUSTRIAL DEBT BRIDGE* DEC 31, 2015 – MAR 31, 2016 €M Industrial FCF €28M (13) (45) (797) (4) (67) 178 (34) (782) Dec. 31, 2015 Adj. EBITDA Net ∆ working Tax paid Net capex Other FX and other Mar. 31, 2016 Net Industrial capital Net Industrial Debt Debt Starting from Q1 2016 introduced net indu
Slide 9: FCA Bank to Acquire a Majority Stake in Ferrari Financial Services AG
FCA BANK TO ACQUIRE A MAJORITY STAKE IN FERRARI FINANCIAL SERVICES AG Ferrari Financial Services S.p.A. (FFS S.p.A.), an Italian indirect subsidiary of Ferrari N.V., and FCA Bank S.p.A. (FCAB) today announced that they have signed a memorandum of understanding for FCAB to acquire a majority stake in
Slide 10: GTC4Lusso: a unique combination of technology, performance, versatility
A unique combination of Mid – front naturally Max speed Distribution will technology, aspirated V12 engine: in excess commence in performance, 690 hp @ 8,000 rpm of 335 km/h Q3 2016 versatility and it will and sport luxury substitute the FF
Slide 11: Q1 2016 – Client Relation Activities
Q1 2016 – CLIENT RELATION ACTIVITIES GTC4Lusso World Premiere Milan, February 15th More than 500 customers invited to the new Ferrari V12GT presentation event A whole new concept for Ferrari Motor Show Geneva, March 1-3 GTC4LUSSO public California T HS presentation and February-March announcement of
Slide 12: Q1 2016 – Corse Clienti
Q1 2016 – “CORSE CLIENTI” Ferrari Racing Days GT Racing Suzuka Debut of the new 488 GT Suzuka Circuit – Japan March, 4-6 24h Daytona 12h Sebring USA, USA, Ferrari Challenge F1 Clienti Jan 29-31 Mar 17-19 APAC, round 1 Entered drivers: 3 Entered drivers: 35 4th 1st Classified Classified XX Programs G
Slide 13: Q1 2016 – Ferrari Brand and Store Presence
Q1 2016 – FERRARI BRAND AND STORE PRESENCE Licensing activities Signed a non-binding memorandum of understanding for the licensing of the design, construction and operation of a new Ferrari theme park to be located in one of the primary cities in Mainland China. New attractions opening at Ferrari Wo
Slide 14: 2016 Upward Revised Guidance
2016 UPWARD REVISED GUIDANCE Revised guidance Previous guidance Shipments >7,900 ˜7,900 Net Revenues ˜€3 billion >€2.9 billion Adj. EBITDA ≥€800 million >€770 million Net Industrial Debt ≤€730 million* <€750 million* * Including an ordinary cash distribution to the holders of common shares Assuming
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Shipments geographical breakdown 3. Includes the net revenues generated from the sale of EMEA includes: Italy, UK, Germany, Switzerland, engines to Maserati for use in their cars, and the France, Middle East (includes the United Arab revenues generated from the rental of
Slide 18: 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 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider V8 California 30 458 Speciale California T 45
Slide 19: Group Shipments
GROUP SHIPMENTS +15% 1,882 7,664 >7,900 1,635 253 1,063 ~1,100 221 156 610 ~700 134 523 2,640 ~2,700 515 950 765 3,351 ~3,400 Q1 2015 Q1 2016 FY 2015 FY 2016E EMEA Americas Greater China Rest of APAC EMEA Americas Greater China Rest of APAC Q1 2016 Results Note: Graphs not to scale. Shipments includ
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS €m, except as otherwise stated Q1 ‘16 Q1 ‘15 Worldwide shipments (units) 1,882 1,635 Net revenues 675 621 EBIT 121 96 Adjustments - 4 Adjusted EBIT1 121 100 Net financial (expenses)/income (9) 2 Profit before taxes 112 98 Income tax expense 34 33 Effective tax rate 30.9% 33.5
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt1 Maturity Profile (€M) Cash and Marketable Securities (€M) 537 March 31st, 2016 2015 2014 500 Chinese Yuan 99 106 74 134 410 384 3 336 Japanese Yen 24 41 27 289 70 74 2 49 1 Euro 356 22 10 122 500 333 333 333 333 US Dollar 41 1 14 167 Other Currencies 43 13 9 T
Slide 22: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Non-GAAP financial measures Operations are monitored through the use Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as of various Non-GAAP financial measures adjusted for income and costs, which are significant in nature, but expected to tha
Slide 23: Reconciliation of Non-GAAP Measures: Adj. EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT €M Q1 ‘16 Q1 ‘15 EBIT 121 96 Expenses incurred in - 4 relation to the IPO Adjusted EBIT 121 100 Q1 2016 Results May 2nd, 2016 23
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT €M Q1 ‘16 Q1 ‘15 Net profit 78 65 Income tax expense 34 33 Net financial expenses/(income) 9 (2) Amortization and depreciation 57 60 EBITDA 178 156 Q1 2016 Results May 2nd, 2016 24
Slide 25: Reconciliation of Non-GAAP Measures: Adj. EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBITDA €M Q1 ‘16 Q1 ‘15 EBITDA 178 156 Expenses incurred in relation to the - 4 IPO Adjusted EBITDA 178 160 Q1 2016 Results May 2nd, 2016 25
Slide 26: Reconciliation of Non-GAAP Measures: Adj. EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EPS €M Q1 ‘16 Q1 ‘15 EPS 0.41 0.34 Expenses incurred in - 0.02 relation to the IPO Adjusted EPS 0.41 0.36 Q1 2016 Results May 2nd, 2016 26
Slide 27: 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 €M Q1 ‘16 Q1 ‘15 Cash flows from operating activities 112 63 Cash flows used in investing activities (67) (77) Free Cash Flow 45 (14) Change in the self-liquidating (17) 49 financial receivables portfol
Slide 28: Reconciliation: Net Debt and Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET DEBT AND NET INDUSTRIAL DEBT €M March 31, 2016 December 31, 2015 Net Industrial Debt (782) (797) Funded portion of the self-liquidating financial receivables portfolio 1,097 1,141 Net Debt (1,879) (1,938) Financial liabilities with FCA Group - (3) Deposits in