Ferrari Nv · MIL:RACE
Ferrari Nv — Q2 2016 Earnings Presentation
28 slides from Ferrari Nv's earnings presentation, Aug 2, 2016
Slide 1: Q2 2016 Results – August 2nd, 2016
Q2 2016 Results – August 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: A Record Second Quarter, On the Way to Another Record Year
A RECORD SECOND QUARTER… Shipments at 2,214 units, increased New key product launched and by 8% vs. previous year (+155 units) recent events – Solid performance of new models: the 488 GTB, – Recently unveiled open-top LaFerrari, details to be 488 Spider and F12tdf provided at the Paris International
Slide 4: Q2 2016 Highlights
Q2 2016 HIGHLIGHTS Q2'16 2,214 Q2'16 811 Shipments Net revenues (units) Q2'15 (€M) Q2'15 2,059 766 Total shipments up 8% driven by a 16% increase in V8, which was partially offset by a 22% Net revenues up 5.9% (+6.2% at constant currencies), all revenue lines positively contributing, in decrease in
Slide 5: Q2 2016 – Shipments by Region
Q2 2016 – SHIPMENTS BY REGION(4) Americas EMEA (35% vs. 38% PY of total shipments) (43% vs. 40% PY of total shipments) Americas’ shipments increased by approx. 0.5% EMEA’s shipments increased by approx. 14% USA – Ferrari’s largest single market: growth supported by V8 • UK – flat shipments affected
Slide 6: Net Revenues Bridge Q2 2015-2016
NET REVENUES BRIDGE Q2 2015-2016 (€M) 811 14 7 766 10 14 34 +5.9% (+6.2% at constant currencies) 27 117 103 57 71 579 589 (5) (8) Q2 2015 Cars and spare parts Engines (6) Sponsorship, Other Q2 2016 commercial and (7) brand Cars and spare parts Engines Sponsorship, commercial and brand Other • €10 mi
Slide 7: Adjusted EBIT Bridge Q2 2015-2016
ADJUSTED EBIT(1) BRIDGE Q2 2015-2016 (€M) 14 156 24 8 124 11 0 (25) Margin Margin 19.3% 16.2% Margin w/o 20.5% 21.5% F X hedges (41) (23) Adj. EBIT Q2 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q2 2015 R&D 2016 Adj. EBITDA Adj. EBITDA 194 217 25.4% 26.9% • Volume increase of approx. 230 cars (exc
Slide 8: Net Industrial Debt Bridge Mar 31, 2016 – Jun 30, 2016
NET INDUSTRIAL DEBT BRIDGE(1) MAR 31, 2016 – JUN 30, 2016 (€M) Industrial FCF €145m 217 62 (782) (763) (26) 7 (90) (100) (51) March 31, 2016 Adj. EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other June 30, 2016 Net industrial capital and dividends Net industrial debt paid debt
Slide 9: The new limited-edition special series already pre-sold
The new limited-edition Sporting a 800 hp V12 The name and technical characteristics of special series coupled with a 120 kW the new limited-edition special series to already pre-sold electric motor, unleashing be unveiled at the 963 hp in total Paris International Motor Show
Slide 10: Q2 2016 – Client Relation Activities
Q2 2016 – CLIENT RELATION ACTIVITIES Ferrari Tribute to 1,000 Miglia, California T HS, USA test drive program May 19th-22nd More than 2,500 test drives in 20 different locations Ferrari tributes Mille Miglia to let prospects experience Ferrari and convert into vintage cars race, giving 70 customers
Slide 11: Q2 2016 – Corse Clienti
Q2 2016 – “CORSE CLIENTI” FIA WEC XX programmes / F1 Clienti Ferrari Challenge Europe 6 Hours of Silverstone (UK), Apr 17 Mugello (ITA), Apr 26-27 round 1-3 LMGTE PRO XX: 31 (18 FXX K) F1: 17 Monza (ITA), Apr 1-3 1st and 2nd Ranked Vallelunga (ITA), May 17-18 Mugello (ITA), Apr 29-May 1 6 Hours of S
Slide 12: Q2 2016 – Ferrari Brand and Store Presence
Q2 2016 – FERRARI BRAND AND STORE PRESENCE Licensing activities • 60 Licensing partners in 21 product categories • Ferrari Land PortAventura: opening announced for April 7th, 2017 Ferrari Store • At the end of June 2016 managing 13 directly operated stores and 25 franchised locations (including 6 Fe
Slide 13: Confirming 2016 Guidance
CONFIRMING 2016 GUIDANCE Guidance(2) Shipments ˜ 8,000 Net revenues >€3 billion Adj. EBITDA ≥€800 million Net industrial debt ≤€730 million(3) Note: (2) Assuming FX consistent with current market conditions Q2 2016 Results August 2nd, 2016 13 (3) Including an ordinary cash distribution to the holder
Slide 14: Q&A
Q&A
Slide 15: Appendix
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Slide 16: Notes to the Presentation
NOTES TO THE PRESENTATION 1. reconciliations to non-gaap financial measures are 5. Includes the net revenues generated from shipments of provided in the appendix our cars, including any personalization revenue generated on these cars and sales of spare parts 2. Assuming FX consistent with current ma
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 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider V8 California 30 458 Speciale California T 45
Slide 18: Group Shipments
GROUP SHIPMENTS 4,096 7,664 ~8,000 +8% 2,214 +11% 2,059 3,694 ~1,100 580 1,063 327 327 548 316 610 ~700 160 127 261 1,297 2,640 ~2,700 774 772 1,287 953 1,903 3,351 ~3,500 833 1,598 Q2 2015 Q2 2016 H1 2015 H1 2016 FY 2015 FY 2016E EMEA Americas Greater China Rest of APAC Q2 2016 Results Note: Graphs
Slide 19: Key Performance Metrics
KEY PERFORMANCE METRICS Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 2,214 2,059 Worldwide shipments (units) 4,096 3,694 811 766 Net revenues 1,486 1,387 207 192 EBITDA ( 1) 385 348 217 194 Adjusted EBITDA ( 1) 395 354 146 122 EBIT 267 218 156 124 Adjusted EBIT ( 1) 277 224 5 8 Net fin
Slide 20: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities 574 Jun. 30, Mar. 31, Adj. 139 500 (€M) 2016 2016 FY 2015 ( 9) FY 2015 FY 2014 414 384 4 4 335 Euro 343 356 137 22 10 102 76 47 2 285 US Dollar 96 41 21 1 14 118 500 333 333 333 333 Chine
Slide 21: 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 various Non-GAAP financial measures that expenses/(income) and depreciation and amortization. Adjusted EBITDA is defined as may
Slide 22: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 97 76 Net profit 175 141 44 38 Income tax expenses 78 71 5 8 Net financial expenses 14 6 61 70 Amortization and depreciation 118 130 207 192 EBITDA 385 348 Q2 2016 Results August 2nd, 2016 22
Slide 23: Reconciliation of Non-GAAP Measures: Adj. EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBITDA Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 207 192 EBITDA 385 348 - 2 Expenses incurred in relation to IPO - 6 Charges for Takata airbag 10 - 10 - inflator recalls 217 194 Adjusted EBITDA 395 354 Q2 2016 Results August 2nd, 2016 23
Slide 24: Reconciliation of Non-GAAP Measures: Adj. EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 146 122 EBIT 267 218 - 2 Expenses incurred in relation to IPO - 6 Charges for Takata airbag 10 - 10 - inflator recalls 156 124 Adjusted EBIT 277 224 Q2 2016 Results August 2nd, 2016 24
Slide 25: Reconciliation of Non-GAAP Measures: Adj. Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJ. NET PROFIT Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 97 76 Net profit 175 141 Expenses incurred in relation to IPO - 2 - 4 (net of tax effect) Charges for Takata airbag 7 - 7 - inflator recalls (net of tax effect) 104 78 Adjusted net profit
Slide 26: Reconciliation of Non-GAAP Measures: Adj. EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EPS Q2 ‘16 Q2 ‘15 € per common share H1 ‘16 H1 ‘15 0.52 0.40 EPS 0.93 0.74 Expenses incurred in relation to IPO - 0.01 - 0.02 (net of tax effect) Charges for Takata airbag 0.04 - 0.04 - inflator recalls (net of tax effect) 0.55 0.41 Adjusted EPS 0.96 0.76 Q2
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 Q2 ‘16 Q2 ‘15 €M, except as otherwise stated H1 ‘16 H1 ‘15 204 353 Cash flow from operating activities 316 416 (90) (75) Cash flows used in investing activities (157) (152) 114 278 Free Cash Flow 159 26
Slide 28: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M, except as otherwise stated June 30, 2016 March 31, 2016 December 31, 2015 Net Industrial Debt (763) (782) (797) Funded portion of the self-liquidating 1,135 1,097 1,141 financial receivables portfolio Net Debt (1,898) (1,879) (1,938) Finan