Ferrari Nv · MIL:RACE
Ferrari Nv — Q2 2018 Earnings Presentation
28 slides from Ferrari Nv's earnings presentation, Aug 1, 2018
Slide 1: Q2 2018 Results
Q2 2018 Results August August 1 1st,, 2018 st 2018 Q2 2018 Results August 1st, 2018 11
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2018 Outlook” and the “Mid-term outlook until 2022”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”
Slide 3: Record Quarter EBIT
RECORD QUARTER EBIT • Solid adj. EBIT(1) of €217 million reaching adj. EBIT margin(1) of 23.9%, up 200 bps • 2018 outlook confirmed • Capital Markets Day on September 17 and 18, 2018 dedicated to plans in place to meet the 2022 Mid-Term targets • First deliveries of the newly launched Ferrari Portof
Slide 4: Q2 2018 Highlights
Q2 2018 HIGHLIGHTS Shipments Q2 '18 2,463 Net revenues Q2 '18 906 (units) (€M) Q2 '17 2,332 Q2 '17 920 Total shipments increased by 131 units (+5.6% vs. PY) supported by 22.6% increase in V12 Net revenues decreased by a few million, but was up 1.4% at constant currencies models while V8 models grew
Slide 5: Q2 2018 – Shipments by Region
Q2 2018 – SHIPMENTS BY REGION(2) Americas +6.6% • USA – in Ferrari’s single largest market shipments increased by almost 8%, driven by strong performance of the 812 Superfast as well as the 488 and the GTC4Lusso families. LaFerrari Aperta is finishing its limited series run. This was partially offse
Slide 6: Net Revenues Bridge Q2 2017-2018
NET REVENUES BRIDGE Q2 2017-2018 (€M) +0.2% -20.2% +2.1% +6.1% -1.6%, -€14 million (+1.4% at constant currencies) 920 1 3 3 906 26 29 124 (21) 127 101 80 669 670 Q2 2017 Cars and spare parts (3) Engines (4) Sponsorship, Other (6 ) Q2 2018 commercial and brand(5 ) Cars and spare parts Engines Sponsor
Slide 7: Adj. EBIT Bridge Q2 2017 – 2018
ADJ. EBIT BRIDGE Q2 2017 – 2018(1) (€M) 8 2 12 26 217 202 (1) (32) Margin Margin 21.9% 23.9% Top high end Adj. EBIT Q2 Vol. Mix / Price Ind. Costs / SG&A FX Other Adj. EBIT Q2 luxury 2017 R&D 2018 peers(7) Adj. EBITDA Adj. EBITDA EBITDA 270 290 Margin(7) 29.4% 31.9% 33% - 38% • Volume increase thank
Slide 8: Net Industrial Debt Bridge Mar 31 – Jun 30, 2018
NET INDUSTRIAL DEBT BRIDGE(1) MAR 31, 2018 – JUN 30, 2018 (€M) Industrial FCF €93m (472) 290 (442) (30) (16) (383) 5 (136) (127) 8 (83) March 31, Adj. EBITDA Net ∆ working Tax paid Capex Other Dividends FX and other June 30, 2018 Buyback June 30, 2018 2018 capital paid Net Industrial Net Industrial
Slide 9: F1: Fighting at the Top
F1: FIGHTING AT THE TOP 1st place at the Australia, Bahrain, Canada and Great Britain GPs 15 podiums so far S. Vettel currently 2nd in Driver’s Championship with 189 points Driver’s Championship Constructor’s Championship 1. Lewis Hamilton – Mercedes 213 1. Mercedes 345 2. Sebastian Vettel - Ferrari
Slide 10: Q2 2018 – Client Relations Activities
Q2 2018 – CLIENT RELATIONS ACTIVITIES Ferrari Tribute to Mille Miglia Product Launches Cavalcade Monte Bianco May 16th – 19th Italy, Brescia – Rome June 20th – 25th, Monte Bianco June 15th France, Le Mans 488 Pista ”Piloti Ferrari” unveiling Q2 2018 Results August 1st, 2018 10
Slide 11: Q2 2018 – Attività Sportive GT
Q2 2018 – ATTIVITA’ SPORTIVE GT COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMS / F1 CLIENTI Average 488 Ch. entries per round Average entries per round ELMS: R1, Monza 1st – LMGTE Class UPDATED ROUND 4 UPDATED ROUND 6 – FUJI (JPN) PWC: R4, VIR 1st – GT Class PWC: R6, Lime XX: 16 Rock 1st – GT Class E
Slide 12: Q2 2018 Results August 1st, 2018
Q2 2018 Results August 1st, 2018 12
Slide 13: Appendix
Appendix
Slide 14: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are provided in 5. Includes the net revenues earned by our Formula 1 racing team the appendix through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues 2. Shipments
Slide 15: 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) Model / Years of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia 458 Spider Californi
Slide 16: Limited Series
LIMITED SERIES In and out from our portfolio 2015 2016 2017 2018 F12tdf LaFerrari LaFerrari Aperta FXX K(8) FXX K EVO(8) F60 America(8) J50(8) 488 Pista Q2 2018 Results Note: (8) Models not included in the total shipments’ figure provided August 1st, 2018 16
Slide 17: Group Shipments
GROUP SHIPMENTS(2) >9,000 8,398 +5.9% 4,591 >1,300 +5.6% 4,335 1,233 2,463 636 >700 2,332 657 617 363 360 394 301 177 >3,000 140 2,811 1,419 1,342 850 797 3,737 >4,000 2,035 2,176 1,001 1,073 Q2 2017 Q2 2018 H1 2017 H1 2018 FY 2017 FY 2018E EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on
Slide 18: Key Performance Metrics
KEY PERFORMANCE METRICS Q2 '18 Q2 '17 €M, unless otherwise stated H1 '18 H1 '17 2,463 2,332 Worldwide shipments (units) 4,591 4,335 906 920 Net revenues 1,737 1,741 ( 1) 291 270 EBITDA 563 512 (1) - Adjustments (1) - 290 270 Adjusted EBITDA ( 1) 562 512 73 68 Amortization and depreciation 135 133 21
Slide 19: 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. 700 (€M) 2018 2018 FY 2017 FY 2016 FY 2015(9) FY 2015 500 343 Euro 458 565 435 318 137 22 4 181 700 Chinese Yuan 75 78 62 58 106 106 500 136 340 2 US Dollar 54 61 88
Slide 20: 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 21: Reconciliation of Non-GAAP Measures: Adjusted EBIT
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBIT Q2 '18 Q2 '17 €M H1 '18 H1 '17 218 202 EBIT 428 379 Release of charges related to Takata (1) - (1) - airbag inflator recalls 217 202 Adjusted EBIT 427 379 Q2 2018 Results August 1st, 2018 21
Slide 22: Reconciliation of Non-GAAP Measures: EBITDA
RECONCILIATION OF NON-GAAP MEASURES: EBITDA Q2 '18 Q2 '17 €M H1 '18 H1 '17 160 136 Net profit 309 260 53 53 Income tax expenses 110 102 5 13 Net financial expenses 9 17 73 68 Amortization and depreciation 135 133 291 270 EBITDA 563 512 Q2 2018 Results August 1st, 2018 22
Slide 23: Reconciliation of Non-GAAP Measures: Adjusted EBITDA
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA Q2 '18 Q2 '17 €M H1 '18 H1 '17 291 270 EBITDA 563 512 Release of charges related to Takata (1) - (1) - airbag inflator recalls 290 270 Adjusted EBITDA 562 512 Q2 2018 Results August 1st, 2018 23
Slide 24: Reconciliation of Non-GAAP Measures: Adjusted Net Profit
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED NET PROFIT Q2 '18 Q2 '17 €M H1 '18 H1 '17 160 136 Net profit 309 260 Release of charges related to Takata (1) - (1) - airbag inflator recalls (net of tax effect) 159 136 Adjusted net profit 308 260 Certain totals in the tables included in this document m
Slide 25: Basic and Diluted EPS
BASIC AND DILUTED EPS Q2 '18 Q2 '17 €M (unless otherwise stated) H1 '18 H1 '17 Net profit attributable to owners 160 136 308 260 of the Company Weighted average number of common 188,646 188,953 188,745 188,949 shares (thousand) 0.85 0.72 Basic EPS (€) 1.63 1.37 Weighted average number of common 189,
Slide 26: Reconciliation of Non-GAAP Measures: Adjusted EPS
RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EPS Q2 '18 Q2 '17 € per common share H1 '18 H1 '17 0.85 0.72 Basic EPS 1.63 1.37 Release of charges related to Takata (0.01) - (0.01) - airbag inflator recalls (net of tax effect) 0.84 0.72 Adjusted EPS 1.63 1.37 0.85 0.72 Diluted EPS 1.62 1.37 Release o
Slide 27: Reconciliation: Free Cash Flow and Industrial Free Cash Flow
RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q2 '18 Q2 '17 €M H1 '18 H1 '17 176 138 Cash flow from operating activities 386 288 (127) (82) Cash flows used in investing activitie s ( 11) (248) (154) 49 56 Free Cash Flow 138 134 Change in the self-l
Slide 28: Reconciliation of Non-GAAP Measures: Net Industrial Debt
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT €M June 30, 2018 March 31, 2018 December 31, 2017 Net Industrial Debt (472) (413) (473) Funded portion of the self-liquidating 731 666 685 financial receivables portfolio Net Debt (1,203) (1,079) (1,158) Cash and cash equivalents 650 743 648 G