Ferrari Nv · MIL:RACE
Ferrari Nv — Q2 2017 Earnings Presentation
30 slides from Ferrari Nv's earnings presentation, Aug 2, 2017
Slide 1: Q2 2017 Results
Q2 2017 Results August 2nd, 2017 1
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: Record Quarterly EBIT, On Track for Another Great Year
RECORD QUARTERLY EBIT • Solid revenues of €920 million (+13.5%) driving adj. EBIT(1) to €202 million (+29.3%) • 812 Superfast just launched, waiting list beyond 2018 • Strong success of Ferrari’s client relations activities • Scuderia Ferrari fighting at the top • “International Engine of the year ”
Slide 4: Q2 2017 Highlights
Q2 2017 HIGHLIGHTS Shipments Q2 '17 2,332 Net revenues Q2 '17 920 (units) +5.3% (€M) +13.5% Q2 '16 2,214 Q2 '16 811 Total shipments up 118 units mainly driven by 36% increase in V12 models. V8 substantially in Net revenues up 13.5% (12.8% at constant currencies) line: • Cars and spare parts leading
Slide 5: Q2 2017 – Shipments by Region
Q2 2017 – SHIPMENTS BY REGION(2) Americas +3.0% • USA – up 2% with a strong performance of the 488 family, the GTC4Lusso and the limited edition LaFerrari Aperta. Partially offset by California T (4th year of commercialization), the F12berlinetta (phasing-out) and FF (phased-out in 2016). F12tdf fin
Slide 6: Net Revenues Bridge Q2 2016-2017
NET REVENUES BRIDGE Q2 2016-2017 (€M) +13.7% +41.9% +5.6% -19.9% 920 30 7 811 80 26 +13.5%, +€109 million (8) 124 (+12.8% at constant currencies) 34 117 101 71 589 669 Q2 2016 Cars and spare parts (3) Engines (4) Sponsorship, Other (6 ) Q2 2017 commercial and brand(5 ) Cars and spare parts Engines S
Slide 7: Adj. EBIT Bridge Q2 2016 – 2017
ADJ. EBIT BRIDGE Q2 2016 – 2017(1) (€M) 23 6 5 202 16 197 23 179 (17) (3) (7) 156 Margin Margin Margin Margin 21.5%(7) 21.9% 19.3% 21.5%(7) Adj. EBIT Q2 FX hedges Adj. EBIT Q2 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q2 FX hedges Adj. EBIT Q2 2016 Q2 2016 2016 w/o FX R&D 2017 w/o FX Q2 2017 201
Slide 8: Net Industrial Debt Bridge Mar 31, 2017 – Jun 30, 2017
NET INDUSTRIAL DEBT BRIDGE(1) MAR 31, 2017 – JUN 30, 2017 (€M) Industrial FCF €92m 270 (21) (627) (578) 15 (120) (82) (9) (102) March 31, 2017 EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other June 30, 2017 Net Industrial capital and dividends Net Industrial Debt paid Debt • N
Slide 9: Q2 2017 – Client Relations Activities
Q2 2017 – CLIENT RELATIONS ACTIVITIES WORLD TOUR Indonesia, April 20th – 23rd Spain, May 18th – 21st China, May 28th – 29th Italy, June 8th – 11th Forte dei Marmi – Maranello Puglia Italy May 5th – 9th June 21st – 26th May 18th – 21st Q2 2017 Results August 2nd, 2017 9
Slide 10: Q2 2017 – Attività Sportive GT
Q2 2017 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMMES / F1 CLIENTI FIA WEC Average entries per round Average entries per round 1st - Spa 6 Hours (GTE-Pro) EU 44 (Round 4) XX: 24 1st - Le Mans 24 Hours (GTE-Am) NA 44 (Round 3) F1: 10 VLN APAC 30 (Round 4) 1st - Nürburgring 2
Slide 11: Q2 2017 – Other Activities
Q2 2017 – OTHER ACTIVITIES Licensing • Launch of new “Scuderia Ferrari by Ray-Ban” collection in Montecarlo on May 26th • New high-end Ferrari products: • Launch of Ferrari “Cockpit” executive chairs with Poltrona Frau at “Salone del Mobile” in Milan Retail • At the end of June 2017 managing 17 dire
Slide 12: Formula 1: Fighting at the Top
FORMULA 1: FIGHTING AT THE TOP 1st place at the Australia, Bahrain, Monaco and Hungarian GPs 12 podiums so far S. Vettel 1st in Driver’s Championship @ 202 points Constructor’s Championship Driver’s Championship 1. Mercedes 357 2. Ferrari 318 1. Sebastian Vettel - Ferrari 202 3. Red Bull Racing Tag
Slide 13: 2017 Outlook Confirmed
2017 OUTLOOK CONFIRMED 2017 Outlook 2017 Drivers Shipments ~ 8,400(9) Strong contribution from range models (including special liveries) and LaFerrari Aperta Top line growth driven by Cars and spare parts as Net Revenues > €3.3 billion well as Engines, partially offset by different F1 ranking and de
Slide 14: Q&A
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Slide 15: Appendix
Appendix Strictly confidential
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 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider V8 California 30 458 Speciale California
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) Q2 2017 Results Note: (11) Models not included in the total shipments’ figure provided August 2nd, 2017 18
Slide 19: Group Shipments
GROUP SHIPMENTS(2) +5.3% 2,332 +5.8% 4,335 ~8,400 2,214 4,096 8,014 657 ~1,150 394 580 1,098 327 301 ~650 140 316 619 160 1,342 ~2,800 2,687 797 1,297 774 1,903 2,035 3,610 ~3,800 953 1,001 Q2 2016 Q2 2017 H1 2016 H1 2017 FY 2016 FY 2017E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on a
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS Q2 '17 Q2 '16 €M, unless otherwise stated H1 '17 H1 '16 2,332 2,214 Worldwide shipments (units) 4,335 4,096 920 811 Net revenues 1,741 1,486 270 207 EBITDA ( 1) 512 385 - 10 Adjustments - 10 270 217 Adjusted EBITDA ( 1) 512 395 68 61 Amortization and depreciation 133 118 202
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities Jun. 30 Mar. 31 Adj. (€M) 2017 2017 FY 2016 FY 2015(12) FY 2015 FY 2014 470 500 4 305 Euro 280 394 318 137 22 10 254 267 4 230 102 500 US Dollar 24 59 16 21 1 14 44 28 2 110 Chinese Yuan
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 Q2 '17 Q2 '16 €M H1 '17 H1 '16 202 146 EBIT 379 267 Charges for Takata airbag - 10 - 10 inflator recalls 202 156 Adjusted EBIT 379 277 Q2 2017 Results August 2nd, 2017 23
Slide 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q2 '17 Q2 '16 €M H1 '17 H1 '16 136 97 Net profit 260 175 53 44 Income tax expenses 102 78 13 5 Net financial expenses 17 14 68 61 Amortization and depreciation 133 118 270 207 EBITDA 512 385 Q2 2017 Results August 2nd, 2017 24
Slide 25: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA Q2 '17 Q2 '16 €M H1 '17 H1 '16 270 207 EBITDA 512 385 Charges for Takata airbag - 10 - 10 inflator recalls 270 217 Adjusted EBITDA 512 395 Q2 2017 Results August 2nd, 2017 25
Slide 26: Reconciliation of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED NET PROFIT Q2 '17 Q2 '16 €M H1 '17 H1 '16 136 97 Net profit 260 175 Charges for Takata airbag - 7 - 7 inflator recalls (net of tax effect) 136 104 Adjusted net profit 260 182 Q2 2017 Results August 2nd, 2017 26
Slide 27: Basic and Diluted EPS
BASIC AND DILUTED EPS Q2 '17 Q2 '16 €M (unless otherwise stated) H1 '17 H1 '16 Net profit attributable to owners 136 97 260 175 of the Company Weighted average number of common 188,953 188,923 188,949 188,923 shares (thousand) 0.72 0.52 Basic EPS (€) 1.37 0.93 Weighted average number of common 189,7
Slide 28: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EPS Q2 '17 Q2 '16 € per common share H1 '17 H1 '16 0.72 0.52 EPS 1.37 0.93 Charges for Takata airbag - 0.04 - 0.04 inflator recalls (net of tax effect) 0.72 0.55 Adjusted EPS 1.37 0.96 Q2 2017 Results Certain totals in the tables included in this documen
Slide 29: Reconciliation: Free Cash Flow and FCF from Industrial Activities
RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q2 '17 Q2 '16 €M H1 '17 H1 '16 138 204 Cash flow from operating activities 288 316 (82) (90) Cash flows used in investing activitie s ( 14) (154) (157) 56 114 Free Cash Flow 134 159 Change in the self-l
Slide 30: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M June 30, 2017 March 31, 2017 December 31, 2016 Net Industrial Debt (627) (578) (653) Funded portion of the self-liquidating 705 723 737 financial receivables portfolio Net Debt (1,332) (1,301) (1,390) Cash and cash equivalents 423 569 458 G