Ferrari Nv · MIL:RACE
Ferrari Nv — Q2 2019 Earnings Presentation
28 slides from Ferrari Nv's earnings presentation, Aug 2, 2019
Slide 1: Q2 2019 Results
Q2 2019 Results August 2nd, 2019 Q2 2019 Results August 2nd, 2019 1
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “2019 Guidance” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “on track”, “s
Slide 3: H1 2019 Results Confirm 2019 Guidance with Improved Cash Flow
H1 2019 RESULTS CONFIRM 2019 GUIDANCE WITH IMPROVED CASH FLOW Revenues and operating profitability up 8+%. Adjusted diluted EPS(1) of €0.96 (+13.9%) and industrial free cash flow generation(1) of €139 million. Confirming Guidance approaching the high end of the range on all metrics at currently prev
Slide 4: Q2 2019 Results August 2 nd , 2019
Q2 2019 Results August 2nd, 2019 44
Slide 5: Q2 2019 Highlights
Q2 2019 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) Q2 '19 2,671 Q2 '19 984 +8.4% +8.6% Q2 '18 2,463 Q2 '18 906 ADJUSTED EBITDA(1) ADJUSTED DILUTED EARNINGS PER SHARE(1) (€M and margin %) (€) Q2 '19 0.96 Q2 '19 5 314 32.0% +8.7% +13.9% Q2 '18 0.84 Q2 '18 290 31.9% Positive impact from IFRS 16
Slide 6: Controlling Growth Among Geographies
Q2 2019 – SHIPMENTS(2) SHIPMENTS BY REGION(3) Total shipments increased by 208 units (+8.4% vs. SHIPMENTS BY PILLAR (Q2 2019 vs. Q2 2018) (Q2 2019 vs. Q2 2018) PY) supported by a 12.3% increase in V8 models while V12 models decreased by a few units: AMERICAS -5.5% EMEA +11.4% -% vs. -% (30% vs. 34%
Slide 7: Net Revenues Bridge Q2 2018-2019
NET REVENUES BRIDGE Q2 2018-2019 +8.6%, +€78 million at current currency +6.8%, +€61 million at constant currency(8) Cars and spare parts: growth reflecting volume increase of the 488 Pista and the 488 Pista Spider, the Ferrari (€M) +12.4% -34.8% +2.1% +12.0% Portofino, the 812 Superfast, partiall
Slide 8: Adj. EBIT Bridge Q2 2018 – 2019
ADJ. EBIT BRIDGE Q2 2018 – 2019(1) (€M) 27 1 5 226 13 239 217 218 (16) (6) (2) Margin Margin Margin Margin 23.9% 24.0% 23.3% 24.3% Adj. EBIT Q2 FX hedges Adj. EBIT Q2 Vol. Mix / Price Ind. Costs / SG&A Other Adj. EBIT Q2 Change in FX Adj. EBIT Q1 2018 Q2 2018 2018 w/o FX R&D 2019 at 2018 vs. 2019 20
Slide 9: Industrial FCF and Net Industrial Debt Bridges Mar 31, 2019 – Jun 30, 2019
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES MAR 31, 2019 – JUN 30, 2019 Industrial Free Cash Flow Change in Net Industrial Debt (€M) (€M) 10 310 (8) (6) (353) 139 (99) (173) 139 (192) (195) Adj. EBITDA ∆ in working Cash interest & Capex Industrial FCF (10) (Industrial capital, Taxes Q2 2019
Slide 10: Confirming Guidance Approaching the High End of the Range
CONFIRMING GUIDANCE APPROACHING THE HIGH END OF THE RANGE ON ALL METRICS AT CURRENTLY PREVAILING EXCHANGE RATES. INCREASING INDUSTRIAL FCF TARGET (€B, unless otherwise stated) 2018A 2019E NET REVENUES 3.4 >3.5 1.1 1.2-1.25 ADJ. EBITDA (margin %) 32.6% ~34% 0.825 0.85-0.9 ADJ. EBIT (margin %) 24.1% ~
Slide 11: Appendix
APPENDIX Q2 2019 Results August 2nd, 2019 11
Slide 12: Notes to the Presentation
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the and royalty income Appendix 7. Primarily includes the interest income generated by our financial 2. Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre- services activities and the net r
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) +15.0% +8.4% 5,281 2,671 4,591 +101 737 2,463 +21 384 +15.9% +5.8% 636 617 363 +257 +112 289 360 +71.4% 177 +63.3% +104 1,523 1,419 +7.3% (47) 803 850 (5.5%) +228 +122 +10.5% 2,404 2,176 +11.4% 1,195 1,073 Q2 2018 Q2 2019 H1 2018 H1 2019 EMEA Americas Mainland China,
Slide 16: Group Shipments by Pillar
GROUP SHIPMENTS BY PILLAR(2) -% -% -% -% 1% 0% 24% 29% 76% 79% 42% 40% 31% 34% 24% 20% Q2 2018 Q2 2019 H1 2018 H1 2019 GT Sport Special Series Icona Note: (2) Refer to notes to the presentation in the Appendix Q2 2019 Results Graphs not to scale. August 2nd, 2019 16
Slide 17: Debt and Liquidity Position
DEBT AND LIQUIDITY POSITION Net Industrial Debt (€M) Net Industrial Debt (€M) At Jun. 30 At Mar. 31 At Dec. 31 (353) (€M) 2019 2019 2018 2017 2016 Debt (2,048) (2,064) (1,927) (1,806) (1,848) (1,167) Cash & Cash Equivalents (A) 881 1,062 794 648 458 (814) Net Debt (1,167) (1,002) (1,133) (1,158) (1,
Slide 18: Capex and R&D
CAPEX AND R&D Q2 '19 Q2 '18 €M H1 '19 H1 '18 173 128 Capital expenditures 308 249 86 72 of which capitalized development costs ( 13) (A) 151 129 Research and development 140 136 294 285 costs expensed (B) 226 208 Total research and development (A+B) 445 414 Amortization of capitalized 30 30 61 54 de
Slide 19: 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 20: Key Performance Metrics and Reconciliations of Non-GAAP Measures
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES Q2 '19 Q2 '18 €M, unless otherwise stated H1 '19 H1 '18 984 906 Net revenues 1,924 1,737 314 291 EBITDA 625 563 - (1) Adjustments - (1) 314 290 Adjusted EBITDA 625 562 310 285 of which Adj. EBITDA (Industrial Activities, only) 618 553
Slide 21: Total Net Revenues at Constant and Current Currency
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY(8) Q2 '19 Q2 '19 H1 '19 H1 '19 €M at current currency at constant currency at current currency at constant currency 766 753 Cars and spare parts 1,501 1,471 53 53 Engines 111 111 131 130 Sponsorship, commercial
Slide 22: Adjusted EBIT
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT Q2 '19 Q2 '18 €M H1 '19 H1 '18 239 218 EBIT 471 428 Release of charges related to Takata - (1) - (1) airbag inflator recalls 239 217 Adjusted EBIT 471 427 Certain totals in the tables included in this document may not add due to rounding Q2 2019 Re
Slide 23: Adjusted EBITDA
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA Q2 '19 Q2 '18 €M H1 '19 H1 '18 314 291 EBITDA 625 563 Release of charges related to Takata - (1) - (1) airbag inflator recalls 314 290 Adjusted EBITDA 625 562 Certain totals in the tables included in this document may not add due to rounding Q2 2
Slide 24: Adjusted Net Profit
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT Q2 '19 Q2 '18 €M H1 '19 H1 '18 184 160 Net profit 364 309 Release of charges related to Takata - (1) - (1) airbag inflator recalls (net of tax effect) 184 159 Adjusted net profit 364 308 Certain totals in the tables included in this document
Slide 25: Basic and Diluted EPS
BASIC AND DILUTED EPS Q2 '19 Q2 '18 €M (unless otherwise stated) H1 '19 H1 '18 Net profit attributable to owners 183 160 361 308 of the Company Weighted average number of common 187,409 188,646 187,544 188,745 shares (thousand) 0.97 0.85 Basic EPS (€) 1.92 1.63 Weighted average number of common 188,
Slide 26: Adjusted EPS
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS Q2 '19 Q2 '18 € per common share H1 '19 H1 '18 0.97 0.85 Basic EPS 1.92 1.63 Release of charges related to Takata - (0.01) - (0.01) airbag inflator recalls (net of tax effect) 0.97 0.84 Adjusted EPS 1.92 1.63 0.96 0.85 Diluted EPS 1.91 1.62 Release
Slide 27: 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 Q2 '19 Q2 '18 €M H1 '19 H1 '18 299 176 Cash flow from operating activities 683 386 Investments in property, plant and (173) (128) (308) (249) equipment and intangible assets 126 48 Free Cash Flow 375 1
Slide 28: Net Industrial Debt
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT €M June 30, 2019 March 31, 2019 December 31, 2018 Debt (2,048) (2,064) (1,927) of which: Lease liabilities as per IFRS 16 63 63 - (simplified approach) Cash and cash equivalents 881 1,062 794 Net Debt (1,167) (1,002) (1,133) Net Debt of Finan