Ferrari NV · MIL:RACE
Ferrari NV — FY2019 Earnings Presentation
27 slides from Ferrari NV's earnings presentation, Feb 4, 2020
Slide 1: FY 2019 Results
FY 2019 Results February 4th, 2020 FY 2019 Results February 4th, 2020 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2020 Guidance” contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “remain”, “on track”, “su
Slide 3: 2019 Performance Confirms Strong Momentum
2019 PERFORMANCE CONFIRMS STRONG MOMENTUM 2019 record results met upgraded targets Revenues up 10.1% and operating profitability up 14.0%. Adjusted diluted EPS(1) of €3.71 (+9.1%). Industrial free cash flow generation(1) of €675 million boosted by advances on the Ferrari Monza SP1 and SP2 Rewarding
Slide 4: 2 New Models to Be Launched in 2020
EXPANDING THE FAMILY OF FERRARISTI 2 NEW MODELS TO BE LAUNCHED IN 2020 FY 2019 Results February 4th, 2020 4
Slide 5: FY 2019 Highlights
FY 2019 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) FY '19 10,131 FY '19 3,766 +9.5% +10.1% FY '18 9,251 FY '18 3,420 ADJUSTED EBITDA(1) ADJUSTED EBIT(1) (€M and margin %) (€M and margin %) FY '19 1,269* 33.7% FY '19 917 24.4% +14.0% +11.2% FY '18 1,114 32.6% FY '18 825 24.1% *€17 million due
Slide 6: Controlling Growth Across Geographies
FY 2019 – SHIPMENTS(2) SHIPMENTS BY REGION(3) Total shipments increased by 880 units (+9.5% vs. SHIPMENTS BREAKDOWN (FY 2019 vs. FY 2018) (FY 2019) PY) supported by an 11.2% increase in V8 models and a 4.6% one in V12 models: AMERICAS -3.3% V12 (29% vs. 32% PY) EMEA +15.8% Robust deliveries for th
Slide 7: Net Revenues Bridge FY 2018 – 2019
NET REVENUES BRIDGE FY 2018 – 2019 +10.1%, +€346 million +8.2%, +€282 million at constant currency(8) Cars and spare parts: growth reflecting volume increase of the 488 Pista and 488 Pista Spider, the Ferrari Portofino, (€M) the 812 Superfast and the initial +13.4% -30.3% +4.3% +6.4% 3,705 3,766 d
Slide 8: Adj. EBIT Bridge FY 2018 – 2019
ADJ. EBIT BRIDGE FY 2018 – 2019(1) (€M) 99 78 870 917 825 3 828 47 (94) (20) (21) Margin Margin Margin Margin 24.1% 24.2% 23.5% 24.4% Adj. EBIT FY FX hedges Adj. EBIT FY Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT FY Change in FX Adj. EBIT FY 2018 FY 2018 2018 w/o FX R&D 2019 at 2018 vs. 2019
Slide 9: Industrial FCF and Net Industrial Debt Bridges
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES DEC 31, 2018 – DEC 31, 2019 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 176 675 3 (46) (370) (337) 1,251 (63) (706) 675 (387) (195) Adj. EBITDA ∆ in working Cash interest & Capex Industrial FCF December 31, Industrial FCF Div
Slide 10: 2020 Guidance Upgrading Previous Plan Across All Metrics
2020 GUIDANCE UPGRADING PREVIOUS PLAN ACROSS ALL METRICS 2020 2020 (€B, unless otherwise stated) PLAN GUIDANCE NET REVENUES >3.8 >4.1 >1.3 1.38-1.43 ADJ. EBITDA (margin %) ~34% ≥34% >0.9 0.95-1.0 ADJ. EBIT (margin %) ~24% ~24% ADJ. DILUTED EPS (€) >3.40(10) 3.90-3.95(11) IND. FCF >0.4 ≥0.4 Note: (10
Slide 11: Appendix
APPENDIX FY 2019 Results February 4th, 2020 11
Slide 12: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the 6. Includes the net revenues earned by our Formula 1 racing team through Appendix sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated 2.
Slide 13: Strong Track-Record in New Models Introduction: Range Models
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models introduced or announced Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 SPORT RANGE F430 F430 Spider 599 GTB Fiorano 458 Italia 458 Spider F12berlinetta 488 GTB 488 Spider 812 Superfa
Slide 14: Strong Track-Record in New Models Introduction: Special and Limited Editions
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models introduced or announced Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 SPECIAL SERIES Superamerica F430 Scuderia Scuderia Spider 16M 599 GTO SA APERTA 458 Speci
Slide 15: Group Shipments by Region
GROUP SHIPMENTS BY REGION(2)(3) +9.5% 10,131 -0.9% 9,251 +171 1,500 +12.9% 1,329 836 2,398 2,376 +141 -5 695 +20.3.% 368 -1.4% 363 -100 -113 2,900 173 60 -3.3% -65.3% 3,000 -206 -25.4% 605 811 +668 4,895 4,227 +15.8% +302 1,348 1,046 +28.9% Q4 2018 Q4 2019 FY 2018 FY 2019 EMEA Americas Mainland Chin
Slide 16: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Dec. 31 (€M) 2019 2018 2017 2016 (337) Debt (2,090) (1,927) (1,806) (1,848) Cash & Cash Equivalents (A) 898 794 648 458 (1,192) (855) Net Debt (1,192) (1,133) (1,158) (1,390) Net Debt of Financial Services Activities (8
Slide 17: Capex and R&D
CAPEX AND R&D Q4 '19 Q4 '18 €M FY '19 FY '18 253 236 Capital expenditures 706 639 102 102 of which capitalized development costs ( 13) (A) 330 318 Research and development 136 131 559 528 costs expensed (B) 238 233 Total research and development (A+B) 889 846 Amortization of capitalized 46 30 140 11
Slide 18: Non-GAAP Financial Measures
non-GAAP FINANCIAL MEASURES non-GAAP financial measures Operations are monitored through the use of various non-GAAP Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate financial measures that may not be comparable to other similarly the effects of changes in f
Slide 19: Key Performance Metrics and Reconciliations of Non-GAAP Measures
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES Q4 '19 Q4 '18 €M, unless otherwise stated FY '19 FY '18 927 845 Net revenues 3,766 3,420 333 274 EBITDA 1,269 1,115 - - Adjustments - (1) 333 274 Adjusted EBITDA 1,269 1,114 328 271 of which Adj. EBITDA (Industrial Activities, only) 1,
Slide 20: Total Net Revenues at Constant Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT CURRENCY(9) Q4 '19 FY '19 Q4 '19 €M FY '19 at constant currency at constant currency 717 710 Cars and spare parts 2,926 2,876 41 41 Engines 198 198 144 143 Sponsorship, commercial and brand 538 530 25 25 Other 104 101 927 919 Total
Slide 21: Adjusted EBIT
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT Q4 '19 Q4 '18 €M FY '19 FY '18 219 195 EBIT 917 826 Release of charges for Takata airbag - - - (1) inflator recalls 219 195 Adjusted EBIT 917 825 Certain totals in the tables included in this document may not add due to rounding FY 2019 Results Feb
Slide 22: Adjusted EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA Q4 '19 Q4 '18 €M FY '19 FY '18 333 274 EBITDA 1,269 1,115 Release of charges for Takata airbag - - - (1) inflator recalls 333 274 Adjusted EBITDA 1,269 1,114 Certain totals in the tables included in this document may not add due to rounding FY 20
Slide 23: Adjusted Net Profit
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT Q4 '19 Q4 '18 €M FY '19 FY '18 166 191 Net profit 699 787 Patent Box benefit - - - (141) for the period 2015-2017 Release of charges for Takata airbag - - - (1) inflator recalls (net of tax effect) 166 191 Adjusted net profit 699 645 Certain
Slide 24: Basic and Diluted EPS
BASIC AND DILUTED EPS Q4 '19 Q4 '18 €M, unless otherwise stated FY '19 FY '18 Net profit attributable to owners 167 190 696 785 of the Company Weighted average number of common 185,492 188,294 186,767 188,606 shares (thousand) 0.90 1.01 Basic EPS (€) 3.73 4.16 Weighted average number of common 186,2
Slide 25: Reconciliations of Non-GAAP Measures: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q4 '19 Q4 '18 € per common share FY '19 FY '18 0.90 1.01 Basic EPS 3.73 4.16 Patent Box benefit - - - (0.74) for the period 2015-2017 Release of charges for Takata - - - (0.01) airbag inflator recalls (net of tax effect) 0.90 1.01 Adjusted EPS 3.73
Slide 26: Free Cash Flow and Free Cash Flow from Industrial Activities
RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q4 '19 Q4 '18 €M FY '19 FY '18 357 315 Cash flow from operating activities 1,306 934 Investments in property, plant and (253) (236) (706) (639) equipment and intangible assets 104 79 Free Cash Flow 600
Slide 27: Reconciliations of Non-GAAP Measures: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 Debt 2,090 (1,927) (1,806) (1,848) of which: Lease liabilities as per IFRS 16 60 - - - (simplified approach) Cash and cash equivalents 898 794 648 458 Net Debt (1,192)