Ferrari Nv · MIL:RACE
Ferrari Nv — FY2016 Earnings Presentation
30 slides from Ferrari Nv's earnings presentation, Feb 2, 2017
Slide 1: Full Year 2016 Results – February 2nd, 2017
Full Year 2016 Results – February 2nd, 2017
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: 2016: A Year of Records
2016: A YEAR OF RECORDS… Shipments reached 8,014 units, up by 350 2016, a year full of events units vs. previous year (+5%) – Spin-off from FCA – Solid performance supported by both V8 and V12 – Listing on the Milan Stock Exchange – Strong performance of the 488 GTB, the 488 Spider and – Bond issuan
Slide 4: 2016 Product Launches
2016 PRODUCT LAUNCHES J50, a strictly limited series 350 unique cars created by the Tailor Made atelier with dedicated liveries to celebrate our 70th anniversary 488 Challenge Full Year 2016 Results February 2nd, 2017 4
Slide 5: Full Year 2016 Highlights
FULL YEAR 2016 HIGHLIGHTS FY 2016 8,014 FY 2016 3,105 Shipments +4.6% Net revenues +8.8% (units) FY 2015 (€M) FY 2015 7,664 2,854 Total shipments up 350 units (+5% vs. PY) supported by a 5% increase in V8 and 4% increase Net revenues up 8.8% (+9.4% at constant currencies) with sound performance of C
Slide 6: Full Year 2016 – Shipments by Region
FULL YEAR 2016 – SHIPMENTS BY REGION(7) Americas EMEA (33% vs. 34% PY of total shipments) (45% vs. 44% PY of total shipments) Americas’ shipments increased by 1.8% EMEA’s shipments expanded by 7.7% USA – in Ferrari’s single largest market shipments increased by over • UK – deliveries up 4% with robu
Slide 7: Net Revenues Bridge Full Year 2015-2016
NET REVENUES BRIDGE FULL YEAR 2015-2016 (€M) +4.8% +54.5% +10.7% -13.8% 3,105 2,854 100 119 47 +8.8% (+9.4% at constant currencies) 99 114 (15) 488 441 338 219 2,080 2,180 FY 2015 Cars and spare parts (8) Engines (9) Sponsorship, Other (1 1) FY 2016 commercial and brand(1 0) Cars and spare parts Eng
Slide 8: Adjusted EBIT Bridge Full Year 2015 - 2016
ADJUSTED EBIT BRIDGE FULL YEAR 2015 - 2016 (€M) 69 15 42 706 145 618 632 473 (28) (3) (7) (74) Margin Margin Margin Margin 16.6% 20.6%(2) 22.2%(2) 20.4% Adj. EBIT FY FX hedges FY Adj. EBIT FY Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT FY FX hedges FY Adj. EBIT FY 2015 2015 2015 w/o FX R&D 2016 w/
Slide 9: Net Industrial Debt Bridge Dec 31, 2015 – 2016
NET INDUSTRIAL DEBT BRIDGE(1) DEC 31, 2015 – 2016 (€M) Industrial FCF €280m 880 (797) 8 (32) (653) (104) (340) (16) (252) December 31, Adj. EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other December 31, 2015 capital and dividends 2016 Net Industrial paid Net Industrial Debt De
Slide 10: Limited series commemorating 50th anniversary of Ferrari in Japan
A strictly limited series to 10 examples only, each one will Powered by a specific 690 cv commemorate the 50th be tailored specifically to the version of the 3.9-litre V8 that won anniversary of Ferrari in Japan customer’s requirements the overall International Engine of the Year Award in 2016
Slide 11: Q4 2016 – Attivita' Sportive GT
Q4 2016 – “ATTIVITA’ SPORTIVE GT” XX programs / F1 Clienti FINALI MONDIALI Daytona (USA), Dec 1-4 Ferrari Challenge Round 7 + FINALI MONDIALI XX: 28 (15 FXX K) F1: 17 Daytona (USA), Dec 1-4 XX Seasonal average participants: 22 F1 Seasonal average participants: 8 Ferrari Challenge Europe Round 7 part
Slide 12: Q4 2016 – Ferrari Brand and Store Presence
Q4 2016 – FERRARI BRAND AND STORE PRESENCE Licensing activities • In Q4 2016, Hublot and Ferrari signed a multiyear renewal of their sponsorship and licensing agreements, extending the partnership started in 2011 Ferrari Store • At the end of December 2016 managing 16 directly operated stores and 29
Slide 13: 2017 Outlook
2017 OUTLOOK 2016 Actual 2017 Outlook(4) 2017 Drivers Shipments 8,014 ~ 8,400(13) Strong contribution from range models (including special liveries) and LaFerrari Aperta Top line growth driven by Cars and spare parts as Net Revenues €3.1 billion > €3.3 billion well as Engines, partially offset by di
Slide 14: Q&A
Q&A
Slide 15: Appendix
Appendix
Slide 16: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are provided in the 7. Shipments geographical breakdown appendix EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, 2. Margins witho
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(14) F60 America(14) J50(14) Full Year 2016 Results Note: (14) Models not included in the total shipments’ figure provided February 2nd, 2017 18
Slide 19: Group Shipments
GROUP SHIPMENTS(7) ~8,400 8,014 8,014 7,664 +4.6% 2,021 ~1,150 -4.0% 1,940 1,098 1,098 1,063 ~650 220 280 619 619 192 610 123 ~2,800 2,687 2,687 671 2,640 689 938 3,351 3,610 3,610 ~3,800 848 Q4 2015 Q4 2016 FY 2015 FY 2016 FY 2016 FY 2017E EMEA Americas Greater China Rest of APAC Note: (7) refer to
Slide 20: Key Performance Metrics
KEY PERFORMANCE METRICS Q4 ‘16 Q4 ‘15 €M, except as otherwise stated FY ‘16 FY ‘15 1,940 2,021 Worldwide shipments (units) 8,014 7,664 836 744 Net revenues 3,105 2,854 224 157 EBITDA ( 1) 843 719 27 24 Adjustments 37 29 251 181 Adjusted EBITDA ( 1) 880 748 156 85 EBIT 595 444 183 109 Adjusted EBIT (
Slide 21: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities 500 Dec.31 Sep. 30, Jun. 30, Mar. 31, Adj. 438 400 (€M) 2016 2016 2016 2016 FY 2015(15) FY 2015 FY 2014 3 55 292 234 222 Euro 318 225 343 356 137 22 10 144 3 88 500 US Dollar 16 88 96 41
Slide 22: Update on Financing
UPDATE ON FINANCING • On January 19th, 2016 Ferrari Financial Services Inc., indirectly wholly owned subsidiary of Ferrari N.V., performed a revolving securitization program for funding of up to US$250 million by pledging retail financial receivables in the United States of America as collateral. Th
Slide 23: 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 24: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q4 ‘16 Q4 ‘15 €M FY ‘16 FY ‘15 112 55 Net profit 400 290 41 25 Income tax expenses 167 144 3 5 Net financial expenses / (income) 28 10 68 72 Amortization and depreciation 248 275 224 157 EBITDA 843 719 Full Year 2016 Results February 2nd, 2017 24
Slide 25: Reconciliation of Non-GAAP Measures: Adj. EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBITDA Q4 ‘16 Q4 ‘15 €M FY ‘16 FY ‘15 224 157 EBITDA 843 719 (Income) and expenses incurred in - 24 - 29 connection with our IPO and separation Charges for Takata airbag 27 - 37 - inflator recalls 251 181 Adjusted EBITDA 880 748 Full Year 2016 Results Februa
Slide 26: Reconciliation of Non-GAAP Measures: Adj. EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT Q4 ‘16 Q4 ‘15 €M FY ‘16 FY ‘15 156 85 EBIT 595 444 (Income) and expenses incurred in - 24 - 29 connection with our IPO and separation Charges for Takata airbag 27 - 37 - inflator recalls 183 109 Adjusted EBIT 632 473 Full Year 2016 Results February 2nd,
Slide 27: Reconciliation of Non-GAAP Measures: Adj. Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJ. NET PROFIT Q4 ‘16 Q4 ‘15 €M FY ‘16 FY ‘15 112 55 Net profit 400 290 (Income) and expenses incurred in connection - 16 - 20 with our IPO and separation (net of tax effect) Charges for Takata airbag 18 - 25 - inflator recalls (net of tax effect) 130 71 Adjuste
Slide 28: Reconciliation of Non-GAAP Measures: Adj. EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EPS Q4 ‘16 Q4 ‘15 € per common share FY ‘16 FY ‘15 0.59 0.28 EPS 2.11 1.52 (Income) and expenses incurred in connection - 0.09 - 0.11 with our IPO and separation (net of tax effect) Charges for Takata airbag 0.10 - 0.14 - inflator recalls (net of tax effect)
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 Q4 ‘16 Q4 ‘15 €M FY ‘16 FY ‘15 439 173 Cash flow from operating activities 1,005 707 Cash flows used in investing (88) (121) (320) (317) activities ( 17) 351 52 Free Cash Flow 685 390 Change in the self
Slide 30: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015 Net Industrial Debt (653) (585) (763) (782) (797) Funded portion of the self-liquidating 737 1,132 1,135 1,097 1,141 financial receivables portfolio Net Deb