Q1 2022 Ferrari NV Earnings Call
Okay.
Okay.
Okay, and thank you for standing by.
Come to the for Awhile, We 2022 Q1 results conference call.
At this time all participants are in a listen only mode. After the speaker presentation. There will be a question answer session to ask a question. During the session you will need to press star one on your telephone. Please be advised that today's conference is being recorded if you require assistance during the conference. Please press Star zero.
I would now like to hand over the conference to your first speaker today, Nick collateral. So I think we'll have to please go ahead.
Thank you Steven and welcome to everyone who is joining us.
Today, we plan to cover the group's Q1, 2022, and operating results and the duration of the call is expected to be around 60 minutes today's call. It will be offset by the group CEO , Mr. Benedict Divina and group CFO , Mr. Antonio Picotee Con all relevant to my T that elevated level in the investors section of the.
I declare the website and at the end of the presentation will be available to answer your questions.
Before we begin let me remind you that any forward looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation and the call will be governed by this language with that said I'd like to turn it.
All of that to be any data.
You are absolutely correct.
Thank you everyone for joining us today.
I would like to start by thanking all the women or demand in Ferrari for their passion and dedication, which has been essential to navigate through the first months of Dcs.
All of them contributed with their tireless effort in achieving the strong result that we are going to present today.
Before addressing our starts for the first quarters of 2002, I would like to spend a few words on the current international scenario and ongoing conflict in Ukraine.
While opening for a rapid return to dialogue and the peaceful resolution our thoughts and support go out to those affected.
So Ravi is playing its a small part alongside the institution to bring relief to this situation.
In relation to this ongoing crisis and its implication.
Our supply chain has continued to prove its resilience.
Guaranteeing as move production at our facilities.
We have no doubt.
Current macroeconomic scenario is causing a new challenge however, our team in Ferrari also with the support of our partners have been able to manage this situation properly.
That said, while we continue to monitor the current scenario on our supply chain, we have not been immune to inflation.
However, this is limited to a portion of our cost base.
In fact, we have seen some increase in energy and certain raw material cost, mainly aluminum and precious metals.
But in light of this we immediately took two actions to preserve our profitability.
The first in fall of last year's we apply the price increase across our current product range.
The second we just set the price positioning.
Our new models to adequately reflect our estimates on cost inflation.
At the beginning of the year, we announced the new organizational structures achieved through both the promotion of our homegrown talent and a number of key strategic externalize.
The new organization is designed to further foster innovation Optima.
Optimize the processes and as agility and increase collaborations being open and more horizontal.
And then very much delighted to see that we are on the right transformation path.
Moving to the first quarter result.
I am very pleased to highlight the following four quarters.
The quarterly data.
The first revenues at $1 2 billion euro up 17% versus the prior year.
EBITDA at 423 million Euro industrial free cash flow generation was approximately 300 million euro almost twice compare that to what we achieved a year ago sustained by the strong profitability in the advances collected on the Daytona SB three.
Our order book continues to be very strong then it much stronger than ever and it covers very well into 2023.
I am a proud to state that most of our models are already sold out and this is not just for the limited the Sirius.
All of this was made possible thanks to the following three elements.
Number one.
Our product offer is truly astonishing and now includes v8, NV 12 thermal engine as well as V eight and V-six hybrid solution further and reached by the recent avail of the 296 GTS.
Number two the strength of our net order intake that's continued over the quarters.
Number three the exceptionally strong performance of the pre owned business sustained by the economic climate.
As part of our recent activities.
We would also like to underline the following three key fact.
Let's start with the senior shows of the memorandum of understanding with Italian Ministry of economic development in the Italian and the media Romagna region. These.
This agreement will focus on industrial project and research and development activities for new technologies aimed at bringing tangible benefit from an environmental perspective, as well as increasing digitalization.
Such projects will further foster our competitive advantage since they will ensure the vertical integration of a key component to be and the crafted here in maranello.
The plan will lead to the employment of 250 new lives.
Further boosting the territory of Maranello and Martina is a hub for excellence and increasingly attractive to new skill sets required by the automotive industry.
Secondly, so they don't SB three was awarded with the Red Dot best of the best.
These International award once again is a testament to the passionate work all the Ferrari theme.
And finally, the annual general meeting approve the dividend distribution of approximately 250 million euro representing a 57% increase of the dividend paid per share compared to the prior year.
This is combined with our ongoing multi year share repurchase program to reward our shareholders.
Now.
Let's move to the product excellence and customers' activities.
In the last few months.
We have continued our engagement activities with clients and media with the 286 <unk>.
A model.
Is receiving unanimous praise, giving that the most level of fun to drive experience.
Coupled with our innovative V six hybrid engine.
Evidence of <unk> success is the robust order collection, a record level in a quarter, if compared to any other model and it paves the way for the recently unveiled 296 GTS.
Spider version.
The 296% GTS marks a further step in our electrification journey and reached our hybrid offering now made up over four different models and covering differentiated the needs of our customer base.
These latest product launch is the fifth cornerstone on our electrification pass after la variety.
90, <unk> nine despite us and 296 GDP.
Moreover, with the launch of the $2 96 in GTS. We are just one step away from completing the 15 modest promise it at the 2018 capital market day.
And this <unk>.
The leads me to the last but not least launch.
The highly coveted and much anticipated put us and with a unique and uncompromising Ferrari.
It did.
Meets the most iconic Ferrari engine of all time.
Our naturally aspirated veto.
Celebrating the bloodline of performance innovation and excellence.
I can testify to its outstanding driving experience, while it was driving it on the heels here close to Marinate law. It is the agility and the fans to drive typical of our spot cash believe me.
What also thrills me is seeing the Formula one racing team competing back at the top thanks to our talented the drivers and therefore, 70, fiver, which has proven itself to be reliable and that for the August challenge.
It is mine and the whole team greater satisfaction to see our out of the work starting to pay off.
In GT racing, we're consolidating the great performance of last year, we have several victories already achieved there.
Important to underline.
That the motorsport season, just began.
And we will continue to fight race by race, we ambition and humility.
Attention to details focus and continuous learning will be key as the season unfolds.
We are also on track for our return in FIA WC top class from 'twenty to 'twenty three that we'll ever each highlight in the lemons 24 hours.
Where so many great chapters in our motor racing history have been played out.
It is a competition that represents another opportunity for us to fight a diverse level, while pushing the boundaries of technology on the track to then transfer it to the next generation of Ferrari broadcast.
Moving to the brand diversification activities in February we also said that the second fashion show during the Milan fashion week presented our new Ferrari fall Winter collection, which received the international acclaim.
Lastly, I look forward to meeting you in person in Maranello on June 16.
We will open the doors of our company to analyst investors and journalists to present, the industrial plan for the coming years.
The capital market day will allow us the opportunity to articulate our constant drive for innovation for exclusivity for excellence.
In June we will chase, we've all attendance, our future strategy well grounded on a solid plan.
I will now hand over to <unk>, who will receive review the Q1 'twenty two result.
Thank you Ben and good morning, or afternoon to everyone joining us today.
Let's start on page seven.
With the highlights of this first quarter.
Strong start actually.
For the year with two or even three digit growth for all our kpis.
Shipments were 3251 units.
More than 17% versus prior year.
Group net revenues were 1 billion in 186 million Euro up the same versus prior year.
EBITDA reached 423 million up 12, 5% year over year with an EBITDA margin of 35, 6%.
This was lower compared to the extraordinary highs of last year since the exceptionally strong product mix of Q1 'twenty. One in terms of gross margin recovery from 2020 was further emphasized by still restrained cost.
EBIT was 307 million up 15, 4% year over year.
Net profit came in at $239 million up 16, 4% versus prior year, resulting in a diluted EPS of one euro 2009.
Compared to one euro and 11 in Q1 'twenty one.
The industrial free cash flow generation for the quarter was stronger at 299 million supported by the collection of the advances for the Daytona SB three and the <unk>.
Competitor on a.
Turning to page eight.
You can see the details of the Q1 shipments.
From now on we'll show the breakdown of our shipments into eyes and hybrid.
As we already noted the previous fleet based on the number of cylinders has become less and less meaningful.
The product portfolio in the quarter included eight thermal engine models and two hybrid representing 80, 317% of total shipments respectively.
As per our programs our hybrid offer will be further enriched by the start of deliveries of the 296 <unk> in the second quarter. While we continue to serve the impressive order book recorded for all our current range, including certain models with lifecycle.
Its been extended.
Deliveries in the quarter were driven by the Ferrari Roma USF 90 family as well as the portofino.
In the quarter. We also commenced the first delivery of the 12 competitor.
While those of the Ferrari Monza SB, one and SB two were lower than the prior year and reached the end of the limited series run.
Quarterly shipments reflected deliberate geographic allocation in response to port congestion experienced in the first months of the year, which explains the decrease of our deliveries to America.
Okay.
On page nine you can see the walk of our group revenues.
At constant currency grew by 16, 6%.
Revenues from cars and spare parts were up 18% net of the different exchange rates drift.
Driven by volumes positive product mix and pricing together with the contribution from personalization.
Revenues from personalization, we're higher than the prior year in absolute terms sustained by volumes.
Substantially in line around 17% in proportion to revenues from cars and spare parts.
Engine revenues were down 19% given the lower shipments to Maserati was contract is approaching the exploration in 2023.
The increase in sponsorship commercial and brand up more than 17% at constant currency.
Was essentially attributable to the better prior year Formula one ranking and the contribution from brand related activities.
This was partially offset by lower sponsorship.
Other revenues were mainly related to other supporting activities.
Currency, including translation and transaction impact as well as foreign currency hedges at a total positive contribution of 8 million, mostly related to the U S dollar and the Chinese Yuan.
As we move to page 10, let me review the change in our EBIT Bridge explained by the following variances.
Volume was positive for 59 million, reflecting the shipments increase.
Mixed price variance was also positive in absolute terms for 13 million driven by the product mix supported by the <unk> of 90 family and personalization.
This was just partly offset by the increased weight of the portofino them in the Ferrari Roma as well as the lower contribution of the Ferrari Monza.
Please remind that we expect the product mix variance to become negative as the year unfolds, given the phase out of demand versus in Q1, and the phasing of debate on ISP three in 2023.
Industrial and R&D expenses grew 18 million euro in the quarter due to energy and some material cost increases as anticipated by Benedetto as well as higher depreciation and amortization.
SG&A were negative <unk> 14 million, mainly reflecting definitely more lively communication and marketing activities and our lifestyle events as well as the company organizational development.
Other was substantially flat in essence these reflect the better our priority our formula one ranking and higher contribution from brand related and other supporting activities offset by lower sponsorship reduced the engine shipments to Maserati and various other expenses also accrued on the basis of current year ranking.
The net impact of currency was positive four 2 million.
As a result of what I just mentioned EBIT reached 307 million up 15, 4% versus the prior year with an EBIT margin of 25, 9%.
Turning to page 11, the remarkable industrial free cash flow generation of this quarter determined by the strong profitability and you already mentioned advances on the Daytona SB three NDA 12 competitive IAA.
Within our wider definition of working capital was offset only in part by the inventory increase related to the project volume growth for the year as well as by capital expenditure of 132 million Europe .
The pace of spending is in line with our plans to contain capex at around 800 million euros in 2022.
In the quarter the capitalization ratio of our deferred development expenses was approximately 38% in line with the prior year.
Net industrial debt as of the end of March 22 was 136 million euro compared with one $297 million at December 2021, barely reflecting the significant free cash flow net of 135 million Europe aid in the context of our share repurchase program.
And as anticipated by Benedetto the annual General meeting approves the dividend distribution of approximately 250 million Europe to be paid in a couple of days on may six.
On page 12, we confirm the guidance for 2022, which firmly targets solid growth on a metric and robust cash generation.
The challenges that this dramatic start of the year is posing in several respects.
I think this completes our review for the quarter.
As usual thank you for listening and very much look forward to seeing you soon in Maranello at our capital markets day.
I'll now turn the call over to Nicoletta.
Yes.
Thank you and Danielle we're now ready to start the Q&A session Stephen I'll turn the call over to you. Thank you.
Thank you.
As a reminder, we mined the traffic question you will need to press Star zero on your telephone to withdraw your question. Please press the pound sign.
Please stand by while we compile the Q&A.
The first question comes from Giulio Pescatore from BNP. Please go ahead Sir.
Hi, Thanks for taking my question. The first one on the guidance one very simple question. Your target range implies an EBIT margin of about 23% even at the higher end in the next nine months isn't that slightly too conservative despite the higher R&D and we can mix.
And then the second question on the months I, just want to make sure I understood. It correctly can you confirm that there are no more months due for delivery in Q2, it was completely phased out in Q1.
And then the last one on the <unk>. Thanks for the extra color on the on the engine. The diesel engine, but can you maybe give us the reasoning behind the decision to launch the first time, we're without a hybrid system also given that this is the model that we had hoped that would improve your position in China.
Yes. Thank you.
Okay. Thank you Julia I start with the second question and then.
Anthony will comment on the first one.
So the photo frankly will be a naturally aspirated 12, our iconic model we have been testing different option.
But then I think it was clear that.
To celebrate the blood line of the performance innovation and experience.
The 12.
The experience and the product performance. It is able to if he is able to delivers.
Has been the right solution to push through the market.
So there has been a clear.
The result of our testing and also our discussion with the market.
The demand as I can.
Reaffirm what.
And when you said that that we stopped the production and the sales of the Monza in Q1.
For the other part of the question Antonio You May help in this direction, Yes, hi, Julia the guidance that we provided on EBITDA is based on the fact that DNA will accrue over the course over the course of the year not linearly, but based on the start of production of our new model so busy.
Growing during the course of the year.
Okay. Okay follow up on the guidance. We also saw U S dollar appreciating quite significantly.
Already reflected in the guidance you have.
Yes.
Reason why we have we're not basically making significant changes as it because as you know we are following at foreign exchange hedging policy. So there might be opportunities around that depending on our March remains fee for imaging, but we prefer to stay cautious on that because it's unpredictable.
Athens the currencies.
Understood. Thank you and see you soon.
Okay.
And the next question comes from.
The <unk> <unk>. Thank you very much. Please go ahead sir.
Thank you.
Good morning, good afternoon, everybody.
The first is on the.
The guidance if I take your volumes in Q1 and multiply by four which is.
Like usual, let's say normal years in the past.
Got something in the region of 13000 units.
So first question is it reasonable these figures at the underlying.
Williams.
And your full year guidance.
Athena maybe I'll take this one.
As you know, we do not comment on comment on shipments I think our revenues.
Is really what is driving our results. So we are focusing on that one.
We may add that obviously due to the significant order book.
Shipments will remain high over the course of the year, yes.
Okay. The second part of the question, even if it's not a 15 times with in any case it is a significant growth.
Just one year.
And if I remember correctly your output capacity is.
15000 16000.
So if you maintain the same pace also knowing that the <unk> would be.
All additional we.
We don't know what the amount of volumes, but would be additional so probably you have another two or three years' time before needing to either.
<unk>.
Sure.
Capacity.
Just to know what youre thinking about it.
That's a good question Athena. Thank you I think.
You will you will have a clear answer to all your deduction, let's limit. The 16 of June what I can tell you is that also for all the cars. We make we will keep clear in mind. The exclusivity you remember well the capacity that we have is in that ballpark.
I can't tell you that we are not planning investment.
Take care.
To increase the numbers.
Okay and the last question is a more specific question on prices.
During your introductory remarks, you mentioned that.
You already.
Our revised upward prices last year in order to offset.
Raw material and other cost inflation.
And you are.
Also revising prices this year could you provide.
Provide us just a rough indication of the amount of price revision.
The price increase that has been already applied is in the range of 2%.
This is already I mean.
Okay.
Deliver it to the market.
It's on the process.
Some of this out already in Q1 some of that is coming.
Okay. So I was wrong. It understanding there was one last year and another one coming.
No no youre right I mean, there are two things that are out there.
The model that have been already the older model, Let me say in the new model. The old model is the price increase.
Ballpark I gave you for the new model there is a different price increase.
That is let me say different from the two 2%.
So you understood well is we are talking about two different things.
Okay. Thank you very much.
Thank you.
And the next question comes from <unk> <unk> from UBS. Please go ahead ma'am.
Thank you for taking my question. So my first one would be on the demand, which you already indicated continues to be extremely stronger Oregon books are at record high.
Can you just give us some more comment qualitatively.
We did not see any impact from all the macro pressures that we're seeing so.
And maybe by geography is there anything at all that.
Maybe worth flagging or.
Is this high end consumer.
Pending the same as before or even more.
And then my second question would be on then on China. We saw a strong increase in volumes in China, which is set to be in line with the demand there I was.
Wondering which models are seeing the most success in China and.
And when it comes to the Chinese market as it is.
Demand concentrated in few key areas.
How do you see that it will be very interesting to get some color. Thank you.
Okay. So up from the second Susie so in China, we see we have very good traction on these cylinders ice and hybrid.
So I think this is really the a good summary of what we see in China. When it comes to instead to the trend of the demand.
Clearly we are watching carefully we expect a different pattern also because we.
We basically most of several model are sold out and we're talking about their fate and talking about the portofino about eight to 12.
So we expect a different pattern also because we deliberately selected to sold out and to terminate some models.
Okay.
The next question comes from George <unk> from Goldman Sachs. Please go ahead Sir.
Yes. Thank you for taking my questions. The first question is on the pure thank Greg.
We're excited to see this and thank you for the incremental details when you think about the pricing of the PURA sanguine and its exclusivity.
If we look at some of the other high end utility vehicles in the market, we're seeing huge waitlist and cars being sold on very quickly in the secondhand market very large premiums. So when you think about the pricing of the <unk> do you plan to price it at a level, where Ferrari is the main beneficiary.
So the strong demand rather than sellers in the used car market and are you also taking any additional measures to control, which customers are prioritized on the product set.
Second question I had was just on the deposits.
If you could confirm what percent of deposits on the competency and the Daytona have been taken during the quarter. Thank you.
So I'll start.
George I think the question on the put a sanguine and Tony will take the first one so on the put a sandwich.
I would say that clearly we price in mind.
We cannot change unfortunately, but.
We want to preserve always.
Also for this cat, we keep in mind the specifically the exclusivity is one strategic guideline we portion we keep pushing and we want to make sure that that is it.
<unk> well grounded in.
The DNA of all the product we.
We develop.
No.
Put us adequate we will also be consider this dimension of exclusivity in.
In terms of.
As I said price.
Customer base, we have clear ideas and let's say, we will address appropriately at the right time.
Instead, the further advanced payment that other question Anthony you may have.
Hi, George.
The net impact.
The contribution of the Daytona and the API competitive <unk> in the region of 80 million. Obviously this is a net impact meaning the cash influence being higher than that.
Also visit due to Daytona and then we have a negative which is the amount not collected on the Monza because already collected in the previous year.
So it's basically an add between 120 million euro caching and $30 million less.
Less collections on on demand.
Details.
Great. Thank you.
Yeah.
And the next question comes from.
That's unlike month from Societe Generale. Thank you very much go ahead Stephen.
Thank you very much good afternoon gentlemen.
A couple of questions first of all.
Could you give us the number of months <unk> sold its final quarter for this year.
Secondly, could you comment a bit about what you said about the order book you had mentioned very strong orders for the Feight.
Which obviously isn't it's lost.
Lastly, when will this be finished relative to the being replaced by the 2006 GCB obviously the GTS.
And finally on sponsorship for the Formula one team.
Obviously, you lost mission.
<unk>.
It has become like a co sponsor with me a little bit the main headline sponsor could you comment on what's happening on negotiations for replacing it I suspect that given the strong performance of the Formula One team. We can be negotiations are getting easier in terms of finding I mean sponsor. Thank you.
Okay. So I'll start from the sponsors the other way around so from the sponsor as we said.
In the in the call we see that.
We we have a wider set of partners.
Willing to I mean to work together with us.
And.
These.
Basket of partners.
So from a technology to banks to also new.
New players of the new economy, So I.
I will just say that we see a positive trend over there.
And.
We become a more and more appealing.
As we win more if you can easily understand more and more Grand Prix.
So if you want to the summary is that it's true that we.
Lost a big a big sponsor, but is also true I mean, the contribution of the big sponsor is not so big like in the past, but is also to know that we access to a more diversified set of sponsors.
And then a comment about the second part.
The order book the order book for the eight cylinders.
The sport a surrender their fate goes till end of next year, but we start to see a read an overlap with the 296 GTP.
As I said before.
As the Argus divers traction in terms of interest in terms of order book for from the from many customers.
Just to complete before ending over too.
To Antonio basically we have.
So a strong attraction and we are sold out on the on the 12 cylinder on these 12 basically for additional two years.
The key point I would like to leave here.
Is that in Q2.
We already start to ship the 296 GCB.
Antonio to comment and there is information was.
Number of Monza sold in Q1, and the number is 40.
Right.
Thank you let me just sorry, if I can just put it in one final one so on the <unk> do you envisage that the vehicle will only be powered by <unk> 12, or do you think that in the future also it might take alternative different powertrains as well with a low number of some of those non casino.
We do not we do not comment on this sorry.
Thank you we cannot comment.
Sorry about this Steven.
Thank you.
And the next question comes from Omar <unk> from Kepler.
Please go ahead Sir.
Thank you very much it's.
Possible.
A couple of questions. Please.
Firstly.
I would like to confirm that.
Your.
First quarter was probably the strongest in terms of profitability and free cash flow for the year.
Yes, yes. This has been a record quarter on all key metrics, yes, youre right absolute terms.
But it's fair to assume that the next three quarters are probably going to be a bit softer because youre still going to be the hit from the.
Volumes with less strong.
<unk> you.
Great.
This is a fair assumption. This is based on product mix on one hand, the fact that we stopped selling the monza.
End of the first quarter would not have yet the data analysis is coming in 2023.
And also in terms of the cash flow and this is due to the to the pace of collection of the deposit during the course of the year.
Great.
In oncology.
Capital expenditure is growing and not linearly during the course of the year.
Yes.
Thank you very much.
I wanted to go back to Formula one.
If we assume that your current strike continues in that window shorten ship, which shows.
Right.
Could you just remind us what would be the impact on your 2023 vehicles. So broadly speaking because it would be.
Social improvement.
It will be a policy does I can't quantify that one.
Because it is also based on the EBITDA.
The overall some circles.
Okay.
Would you say that.
Would be a substantial double digit million figure for your.
Reputation, we managed to win the championship or it's too much.
I prefer not to quantify let's assume it's an improvement anyway, which is okay.
Mkay, perhaps are not material on an anonymous but still significant work.
Thank you last quick one.
You mentioned in your prepared comments, but the pre owned business.
<unk>.
Could you remind us where we can see that.
In Europe .
Well actually you don't see this in our numbers or you would see it marginally in our financial services business, but really marginally.
I think what we witness what the reason why we monitor it though is because it is very relevant to support.
Order intake in the interest of a number of customers.
Thank you very much thank you.
Thank you.
The next question comes from copper.
Outlook from Citi. Please go ahead Sir.
Hi, good afternoon.
Two questions left from my side I'm, just coming back to free cash flow clearly running ahead of the run rate implied by the guidance above $600 million could you provide some more color. Please on your expectations for working capital and Capex through the year and the ramp.
I expect to see that.
And then secondly on volumes I appreciate when you specifically tied on this but I think previously you've commented that the first half should be stronger than the second could you confirm whether that's still your expectation for the year. Thank you.
Yes.
Sure Gabriel I think the first question in terms of the cash flow in terms of capital expenditure that is basically the main negative starting from EBITDA, we expect it to annually grow up to approximately 800 million Europe overall figure.
The pace of development, though is not linear during the course of the year is more exponential.
Of course in terms of working capital around year end. So we expect also.
Working capital, including the acquisition to be a positive in the year.
And the guidance. The overall guidance is for not licensing 600 million euro overall in that.
Free cash flow.
The second question forgive me is on volumes, whether it's one is better than H, two I would say not necessarily it's more in terms of quality because of.
Q1 that includes the sales of the Monza.
Okay understood. Thank you very much.
Welcome.
And the next question comes from John Loop copper too so intermodal.
Please go ahead Sir.
Hi, everyone and thank you for taking my question I have two question on the Protos language, if I may.
First one.
If we look at.
Some of your peer in the luxury industry.
Industry.
Is the cannibalization of the <unk> orders after the launch of their SUV.
Do you think.
This is a risk for <unk>.
<unk> GT model represents almost one third of.
Of your shipments in the second one.
Do you have a certain threshold beyond which.
You will not go.
For the SUV in terms of volume compared to your total shipments. Thank you.
So that's one the second one.
Gianluca.
We will as I said that we will seek to exclusive or exclusive with you also for the <unk>.
Clearly we are we have our numbers clearly minds in terms of our ratio to total sales to total numbers that we want to make is put a sanguine.
Then coming to the second question I think that different Ferrari for.
Different for a riskier different therapy for different moments is.
Is the strategy, where you can read the answers.
The first question so.
We have been.
We are in the market different models.
This has been proving a successful strategy.
We don't see this risk of cannibalization.
Thank you Ben.
Thank you.
[laughter].
And last question for the moment comes from Evan <unk> Morgan Stanley . Please go ahead Sir.
Hi, It's Adam Jonas from Morgan Stanley can you hear me.
Tom.
Yes, we can Hello, John Okay great.
Thanks, everybody, so remind us of the technical production capacity.
For the entire company body shop paint shop.
<unk> put us on way you referred to it earlier, but I didn't hear the exact number or range of units.
Yes.
10000, Adam 15 8000, yeah.
Thank you and just as a follow up.
The 250, new hires in Maranello in my model.
Were you referring to vertical integration of handcrafted component.
A lot of employment at five 5% of your company not insignificant can.
Can you tell us what kind of components and technologies that these.
Talented and very lucky individuals will be working on.
I know you have Korea.
We have an answer.
I think that we will have the pleasure to meet in person in a few weeks.
We will tell you exactly what we want to do.
Which are the strategic component, we want to do so.
So bear with me if I ask you a little bit more patient.
Right.
I read all your revolt.
Yes.
The.
Allow us to wait until a few weeks when we meet them will explain it will show you.
We have a clear presentation I think the.
The strategic path that we want to make here.
Got it.
All of them, but of electric cello.
Thank you very much I'm showing no further questions at this time I would now like to turn the conference back to.
Ben.
So thank you very much. Please go ahead.
Okay.
So I think.
I want to thank all of them.
All of you for your time and for your attention. This afternoon.
On your question and also.
Believe me this will be the last time I ask you to be patient to have a lot of answers because the next time, we will be in person and they will do.
With the team we.
Will reply all the question. So the first quarter really of this we just closed represent another strong start.
The metric is used.
See as you have seen.
Very good in all respect.
And.
Next in the capital market day, we really want to outline our strategy for the year to come.
We will take all your questions.
And I really am very much looking forward to seeing you here in June in Maranello.
So thank you again good afternoon.
And hope to see you soon bye bye.
Yeah.
Thank you very much Mr vignettes.
This now concludes the conference call. Thank you for participating you may now disconnect.
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