Q2 2023 Ferrari NV Earnings Call
Good day, and thank you for standing by and welcome to February 'twenty 'twenty to Q2 results conference call.
At this time all participants are in a listen only mode.
After the Speakers' presentation, there will be a question and answer session.
I'll ask a question you will need to press star one on your smartphone.
I will now like turn the conference over your speaker today Nicoletta Russo head of Investor Relations. Please go ahead.
Thank you to basketball and welcome to everyone Who's joining us today, we plan to call that the group here to try to go to the operating results and the duration of the call is expected to be around 60 minutes.
This call will be offset by the group CEO , Mr. Benedict Davina and group CFO , Mr. Anthony pick up in Ghana, or Lucky that's out available in the investors section of the February corporate website and at the end of the presentation.
They both 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 statements included on page two of today's presentation and nickel will be governed by this language with that said I'd like to turn the call or that's too bad at it though.
Okay.
Got it great. Thank you everyone for joining us today.
I would like to start by thanking all of the women and men knits karate for their passion dedication and sense of belonging.
Without them without their agility and nimbleness with the exception of the south of the past quarter would not have been possible.
Gotcha.
Definitely Q2 was a quarter of dense well many positive milestone on all fronts.
Four.
What are the key messages of this call that Antonio di intend to pass to you.
One <unk>.
A record by exceptional results driven by product mix and personalization.
Stronger than expected personalization lead us to increase the full year guidance on all fronts.
Two.
Our order book remain sanguine stunningly high across all geographies and the full product range. Thanks to robust order intake.
Great.
The geographical pattern of our shipments in the last quarter.
In all of them.
Other quarters reflect.
Deliberate allocation plans along with the controlling the growth trajectory in that not at all correlated with the respective market crack.
In the first semester, our shipments grew by 4% year over yes, we've all regions.
A remarkable 14% up.
Our mainland China, Hong Kong, and Taiwan at 7% up all the Americas.
Fourth we are on track with our product strategy and carbon neutrality journey.
So now let's start from our exceptional second quarter earnings.
And I'm very pleased to highlight the following three key data.
Revenues at nearly $1 5 billion euro up 14% versus the prior years.
Even more remarkable in light of the shipments substantially flat year over year.
Adjusted EBITDA is about 590 million euro with a 40% margin.
Industrial free cash flow generation is approximately 140 million euro.
Interesting to note that it took us only six months.
We surpassed the 1 billion EBITDA ratio, while it took the entire 2017 two paths to that same level.
South to everyone at Ferrari contributed to reach.
Beyond that these are strong financial result in the quarter literally at other important milestone, which deserve to take in the spotlight.
Tracy Ward first.
Sunday afternoon June 11, 2023 was enough forgettable, Dave for Ferrari.
58 years after our last participation we return to victory in the top class.
WC, we are at the podium ethylene man on the centenary of the worlds most famous endurance race.
A few days later, we reported through the streets of the city here in Maranello and in our factory. We celebrated the victory we have the 49 nine Pete team all for radical leaks, our partners and our enlarging the community.
Why.
It's important for all of us to celebrate this victory.
Because once again it testifies to the effort and the willingness to always push the boundaries of technology and innovation.
Racing is our heritage and more than ever it is a stimulus to further innovate it's the Wheeler to progress that we always need to keep alive.
It's the net in terms of our founders that we need to not just constantly we've confidence humility.
We read the same spirit, we started a few months ago. The F. One championship, but we've a competitiveness level below our expectations.
In some recent releases such.
The last one over last weekend in Spa Francorchamps, we saw some signs of improvement clearly we want to keep improving and we are working day and night to make our cost more competitive.
Now, let's talk about sports gas and in particular about our newly born special Limited series S. S 90 X X extra Dallas and spiders.
Derived from assets 90, they ever more than 1000 horsepower are amazingly beautiful embed. The recently patented extra boost vehicle dynamic features directly derived from formula one and they use a radical new aerodynamic solution, including a fix at the rehab spoilers.
The last time, we saw it in a variety was in the mid nineties with F 50 supercuts.
Apart from this unique technical features I also like to underline the stronger client interaction and in fact, both of them both of them were already sold out to our most loyal clients prior to the official unveil.
The extremely positive reaction to these two launches is the most recent signal to the strong desirability of our brands.
Further indicators to us Firstly then.
And then to assess the reception to our exceptional product offering led by dramas spiders tempura Sandwich, which commenced said deliveries in June .
Planet.
Secondly, the very robust order book in all geographies further consolidating the visibility that we continue to enjoy well into 2025.
Italy, the overall persisting dynamism of the Ferrari pre owned market, which translates into sounds residual values.
And last monopolies the impressive attendance level to the waterfall that experiences where as we said during last capital market day, we want to focus our attention more and more in the future.
Indeed in.
In the quarter, we organized into three highly engaging activities with our community to further strengthen the bonds.
The tribute to the man.
<unk>.
When you've asked a Ferrari in South Korea, and the Cavalcade in Italy the.
With regulatory man took place with 40 crews together with Casa Berardi, a dedicated and desk receiver vitality, which still over 500 clients dealers and partners enjoy debates over the long weekend.
It was also the stage for the launch of the hyper cloud, but what is it is a three year program limited to 100 membership already sold out.
Gives privileged access to the 24 hour Suleiman Easter.
It's on track facilities, and the 499 a P <unk>.
This is the first time.
We launched <unk> in this successful reception is a confirmation of newbuild vessels, our strategy to enrich the experience we are offering to our clients.
And not only vessel Ferrari reversal for that is it an immersive exhibition showcasing the Waldo Ferrari in June beginning of June we brought in Maranello to say, whether it was the first time it opened its doors in Korea, posting more than 3000 people spanning from clients to France I attended it.
And they could experience personally the desirability of our brands in a country, where we increased our deliveries three times in the last five years and where the average age of our client is well below 40 years.
For the Cavalcade instead, approximately 120 Ferraris camera from all over the world to Rhonda <unk>.
And ended with a charity auction for initiatives to educate young people one of the pillars of Ferraris ESG activities. All the proceeds from the auction will go to save the children to support educational projects in a locker scholar is.
Very important for us to think the local communities that our events.
We also continue tirelessly to improve the efficiency of all our processes in Q2, we wanted to play our part in inspiring your wider change we've had three additional steps aiming to reach carbon neutrality by 2030 as we committed during our last capital market day.
Yeah.
The first one.
Since may we have the first engine built from under percent recycled aluminum in our foundry.
Prototype that we are currently testing.
Second we are on track with the construction of the building we are completing the walls and we are ready to start the pre install that equipment in September to be up and running in June 24th is committed during the capital market day of June 2022.
In two years, the entire building will run on renewable energy.
Last but not least we also had over 60 sponsoring partners. It's our first sustainability workshop, a chance to discuss carbon reduction projects acting as a catalyst for change.
And now switching gears to the lifestyle.
Like to underline that we continue to execute against our strategy. We are a nimble approach and we saw encouraging signs so.
Award our vision.
Demand was the perfect stage for a Ferrari shop in the fan zone.
We have an enthusiastic response from clients.
And in the manner. We also recorded an increase in average ticket our coronary boutique in Casa Berardi as we've grown we've our cavalcade clients Lastly, our museum performed extremely well with a plus 34% year over year traffic presence increased in the first.
Six months and now I will leave at this stage, it's Antonio to enter into the earnings details.
Thank you Vanessa and good morning, or afternoon to everyone joining us today.
Starting on page four we present the highlights of the second quarter results, which show a robust progress of the year.
In fact, as we guided last time, we spoke the second quarter of 2023 was very strong sustained by a continuing remarkable business performance with the right product mix at highly personalized products.
There were also positive timing effects in other currencies, which contain our net operating expenses in the quarter and brought to the exceptionally high percentage margins that we report.
Therefore, with shipments basically flat versus the prior year revenues were up more than 14% and adjusted EBITDA increased roughly 32%.
Adjusted EBITDA and EBIT margin reached 40, 40% and 29, 7%, respectively, leading to an adjusted net profit margin of 22, 7%.
On this basis, we have decided to upgrade our guidance for the year on all metrics as we've discussed in a few minutes.
On page five you can see the details of the Q2 2023 shipments.
As mentioned by <unk> in the quarter, we continued to serve a very high order book with deliveries, which rebalance the first semester and in line with our volume geographic and product mix strategy for the year.
Thus, we draw EMEA up double digits versus the prior year, while deliveries in America mainland, China, Hong Kong, and Taiwan, and the rest of the Capex ended up being lower compared to Q2 of 2022.
Shipments in the quarter were mainly driven by the 260 <unk> TB in their online the portofino and why the 206 GTS NBA to a competitor on AI.
In ramp up phase.
The allocations of the later on ASP three continued as planned and we can manage that.
There is of the port of Vancouver.
As we continue to execute on our electrification journey the hybrid weight on total deliveries as further improved reaching 43% more than doubled compared to last year.
Yeah.
On page six you can see the walk of our group net revenues growing 12, 8% at constant currency.
The growth in cars and spare part was driven by a richer product mix are sustained by the Daytona SB three NDA to a competitor UNFI Muni.
That is a continuing very strong contribution from personalization and pricing.
Consolidations, mainly sustained by carbon look and lever is offering were widely spread among the portfolio and stood at 18% in proportion to revenues from cars and spare parts.
Sponsorship commercial and brand reflected a better priority year formula one ranking newest sponsorships and the contribution from lifestyle activities, mainly led by entertainment and retail.
Okay.
Engines revenues declined in line with the reduction of supplies, the Maserati and the agreements get closer to its maturity.
Currency had a positive impact mainly following the U S dollar dynamics.
Moving to page seven the change in adjusted EBIT is explained by the following variances.
Volume flat and reflecting the quarterly allocation plan.
Mix and price strongly positive for 94 million euro driven by the richer product mix sustained by Raytheon SPT April competency on MBS of 90 families.
The increased contribution from personalization and pricing.
Industrial and R&D expenses grew 36 million, mainly due to higher depreciation and amortization.
And once again I want to flag it continuing cost inflation, partially offset by quarter is specific lower formula one expenses net of technology related government incentives.
SG&A were negative 415 million euro, mainly reflecting the company's digital infrastructure and organizational development as well as marketing activities.
Other was positive for 54 million Europe , mainly reflecting the combined effect of higher commercial revenues from the prior year Formula one ranking and the lower cost due to the revised formula one in season, the ranking of Samson.
As far as purchase higher contribution from lifestyle activities and a positive adjustment to car environmental provisions due to more of a power market conditions.
The total net impact of currency was positive for 20 million euros.
Based on the adjusted list items, we return excess on our EBITDA margin of 40% exclude.
Excluding the mentioned timing and other positive effect the EBITDA margin in the quarter would have been anyhow, the highest of the year and slightly above our full year guidance.
Turning to page eight our industrial free cash flow generation for the quarter was solid at 138 million in Europe , reflecting the increased profitability, partially offset by a negative change in working capital and provisions and other mainly linked to the increase.
The inventory value bump in relation to the yearly production planning and to reach our product mix.
As flagged in the previous quarter, our inventories will remain high throughout the year to preserve our agility to manage the steel complex dynamics of our supply chain.
Capital expenditure for $198 million Euro in line with our product and infrastructure development and consistent with our full year target of approximately 850 50 million Europe .
Net industrial debt at the end of June was 331 million higher compared to March 23, reflecting our capital allocation strategy we.
We paid 328 million urine dividend in line with our increased dividend policy and 83 million euro of share repurchases in the quarter.
359 million Euro since the 2022 capital markets day.
To conclude on page nine we upgrade the 'twenty regulatory guidance as thereby described.
This is essentially driven by the end of personalization that we're confident we'll continue stronger than originally anticipated and higher operating revenues from sponsorship and commercial albite relatively lesser extent.
We consider all of this net of the inflationary pressure that I mentioned for the quarter, and which leads us to confirm our percentage margins for the full year.
The very robust results, we presented today together with the continued strong momentum we are enjoying truly give us further confidence in the execution of our business plan.
With that said I'll turn the call over 'twenty correct. Thank you.
Thank you Daniel Hello Battle, we are now ready to start the Q&A session.
And ladies and gentlemen, as a reminder, if you wish to ask a question. Please press star one on your telephone.
We are now taking the first question.
Please standby.
The first question Kieren <unk> from UBS. Please go ahead your line is open.
Hi, good afternoon, thanks for taking my questions.
My first one would be on the impact of inflation that you have.
I've mentioned a few times.
Would you be able to give us a quantitative indication of.
How much this is weighing on your Opex for profitability and also are you planning to make any price adjustments to offset this.
Secondly.
In the first few months of the yeah have you observed any so far any change in the way youre consumers and.
Prospective consumers behave it sounds like there hasn't been really any any change in.
In the demand patterns that you're seeing.
So I just wanted to confirm that and then and.
Whether you expect for the rest of the year any change at all and then lastly on your E building, which will open in mid 2004, and given the expectation of the first <unk> in 2025, how should we think about the ramp up of Disney E building. Thank you.
Thank you Susan so let's start from the third one.
Building.
Would it be let me say up and running we've already keeps remember in.
Mid of next year in June exactly two years. After we added the capital market day here and this is will be in a building that will.
David of strategic component for that extra cash.
But also will guarantee us the flexibility to assemble cost that are not only electric in fact, we will start also to assemble over that but I'm not an expert.
When it comes to.
Another important dimension of rebuilding let's consider that this will be a building that will use a modern state of the app that <unk> put up but let's say we have all the renewable energy and we lever the flexibility that we need in a company such as such as <unk> that is.
Always pushing for uniqueness in decitabine event.
Another important point to Florida.
For the part of your question is that.
We are on track because we will unveil.
Electric Ferrari in Q4, the end of 2025 and some component as we've said as we've said to you.
Last year's will be assembled over there so.
The team I seem to be the great job of it because we.
We are completely on track in the last year for some components like in the cement and concrete or whatever it was not easy so yes.
If you pass it by our company you can see the mushroom are getting taller and told us.
Innovation the.
The second point was about the.
The customer or the client behaviors.
I can tell you that we do not have any change we don't see any change on the consumer behaviors.
If I go to <unk>.
Or the complaint that as I told you very very high and that goes well into 2025.
Well I see that.
The split among the different regions of the order book is very good but they're all they're all growing so we don't see any change the only thing I can add is that there are some.
Region like what I mentioned before in Korea for example.
Our growing at a good a good base, but all of the.
Clients in all the regions.
Let me say, yes.
I'm not showing any change in there I wouldn't say that pattern to order.
Our our cash.
For the inflation and the price yes.
Question I think what we are assuming here is to be in line with the general economy. So between four and 5% is an overall impact of the year.
And with respect to price increases, obviously, we're mindful and willing to protect our margins and that's why we keep on doing obviously at the same time, we have a strong order book, So we need to manage it very carefully.
Basically preserve it while maintaining a clear and our relationship with our clients.
Thanks, and just a quick follow up on the <unk> building is Youre planning also to assemble Samos non electric car.
We still think about this 15000 units during the current plan.
Cap or does the new building gives you more flexibility.
I understand there is a lot of curiosity than these numbers what I can tell you is that.
We will.
Always sell one catalysts in the market demands.
And today, what the building will do for US is two things number one to guarantee us more flexibility. So we can accommodate.
More of the let me say, yes freedom into personalization, we offer to our clients. So this is the flexibility. The second is about having a process that is more sustainable and manufacturing process. It is more sustainable because we are using state of the I think he brings the debt.
Let's say El Paso to go into the direction of the carbon neutrality by 2000, Tobey So flexibility is key for us and use.
Use of the.
Can you say state of the apogee plants.
Perfect. Thank you.
Thank you.
Thank you for your question.
We're now taking.
The next question.
Please standby.
The next question from Giulio Pescatore from Dnb about it Bob. Please go ahead. Your line is open.
Hi, Thanks for taking my question. The first one for Antonio on the guidance why should we expect a decline in margin sequentially in H two of about 350 bps compared to the first off, especially if we consider the model momentum that you have in the second half with I guess higher.
Shipments of the first Sunday, how your shipments of the company's issued.
Issued some shipments of the GTS. So your mother momentum seems to be improving in the second half and youre guiding for a very steep decline in margin.
Second one on the pro forma deliveries it feels like delivers deliveries in the second quarter Werent.
Very elevated can you maybe confirm will give us some indication of where you stand in terms of the ramp up.
If you could also give us an indication of what percentage of the full year shipments roughly will be made up.
Sam would you CFO .
On the EBIT level, I mean, thats the upper end of your 236 targets and while I know that it's just one quarter and we shouldn't extrapolate thats, what youre going to tell me, but I was wondering if youre planning to maybe invite us back tomorrow and that law potentially for the unveil of the of the new planned next year for an update on the business plan. Thank you.
So the last one you are invited to come in to see the plant, but we will not have the capital markets day in June of next year.
Okay.
I'll comment about the percentage okay they'll.
We put a sandwich started we started to delivers for us and we in Q2 as planned.
So we will have a ramp up basically in the second.
In the second.
In the second half of the year I can tell you that the volume of the put us hang with this year will be low will be below 10% in terms of the annual production volume.
And with respect to your first question Judah Thanks for that I try and explain to the review of this lies.
See the rest of the year.
Q2.
Interface before I think that we had in Q2 was designed to be the stronger quarter of the year I think we mentioned a couple of times in previous calls and this happened actually in the margin for the quarter was already higher than the guidance for the full year, but it wasn't asked by a couple of elements one some timing effects, meaning positive.
That were already in our numbers aspect it for Q3 and that did happen to come earlier, some other delaware adjustments unexpected adjustments to our assumption that we will not be repeated.
And the third element is of course the stronger.
Flow of personalization that was also a surprise.
At the same time, if we if I take out the timing impact.
So let me call it more repeatable adamant.
And then take into consideration also the inflation that is continuing stronger than we would've expected honestly.
It is difficult for us to guide you to a level of margins that is strongly above the levels that we guided at the very beginning of the year, that's why we confirm 38%.
Because obviously the cost base is higher because of the inflation.
And that's basically taking a part of the positive impact from the additional revenues from personalization sponsors.
Okay. Thank you and just following up on that is it fair to say that the reversal of the bonuses from Formula one.
Which normally happens in Q3, and we signed up in Q2 is it fair to say that you should be around 10, 15, maybe $20 million can you give us maybe an order of magnitude on development.
Yes.
In the in the third quarter are not any way that we recognize in the second quarter. The fact that we cannot win this year mathematically impossible. So we basically adjusted our estimates of D. A shampoo get assumptions, we've got <unk> and the impact is approximately $10 million in the quarter.
Perfect. Thank you very much and good luck.
Thank you.
Thank you for your question.
We are now taking the next question.
And the next question from Monika <unk> from Intesa Sanpaolo. Please go ahead. Your line is open.
Thank you and good luck.
Hi, two questions.
<unk> put a sandwich.
You open it.
Post 2026.
I was wondering if you can give us some flavor on how it's going and how long that will go.
For the time.
Now.
The second question.
I have three actually the second is on China.
Definitely understand that the distribution of the shipments for the quarter do not reflect the trend of taking named.
I remember that in the first quarter, you told us that by year end shipments in China will not be in excess of 10% is it can you confirm also in this occasion.
And the third one that is on the annual spatial UBS hi.
I was wondering if you can give us a flavor on the break down.
Oh damn customers by region.
Oh, yes, there is.
Strategic concentration in one region or even add that.
Utilization or not.
Strategically.
The capital component. Thank you very much.
Thank you Monica so let's start from the first one the story of they put us on where as we told you last time in May we reopened the orders for 2026 and I can tell you that is going very well.
Letting let's say orders for the final Taylor, Okay. So here it is.
<unk>.
So the cat continues to have a very very strong traction.
The second one was about China shipment you remember very well, we said that we deliberately fix.
<unk> said I'd say the saves.
<unk> of our.
Our shipment of let me say to 10% 10, 11%.
And.
Then about the customer, Illinois, if I understand well I will repeat what is.
If you see any change in the customer base pattern, that's what they understood.
Because the customer sooner.
Okay.
Yes, let's say the.
This space had a serious so let me say that we have.
That's S 90 Xx at both.
In spite of this let's say.
To reflect Zynga, if you want the same path.
Of the top in VIP client. So there are some regions.
Clearly that do not have yet to meinie client.
Not a.
A big allocation because remember there's a special Sirius is there a server to the top of our of our client pyramid, let's say.
So.
The traction of the scatter has been very strong with people.
The couple of <unk>.
Session of the presentation of our colleague from engineers to the market and I can tell you that when the car was unveiled.
Even without stepping into Canada.
Several people I was with European I was with the Asian American and Japanese.
Al.
Laughter.
Let me say the cash.
So when it comes to tune.
The story of personalization.
It's what.
I'm, telling you what I said during our.
Our introduction, we see this trend of the visa.
Better than expected the people are.
Let's say more and more happy to add the personalization to the cash the cabin look it's something that we are discovering and interest as an interesting trend definitely.
Okay. Thank you.
Okay great.
Congrats Hey, Monika.
Thank you for your question.
And the next question from Henning Cosman from Barclays. Please go ahead. Your line is open.
Hi, Thank you very much for taking the question. The first one is on the order book.
I just wanted to make sure.
Missing something or reading too much or too little into the attributes you're using for your order book and order intake. So when you say solid order book of robust order intake is that in any way less than you have previously indicated I thought we had previously talked about rate cuts.
As an attribute or even sold out when discussing.
Individual models, so I just want to make sure.
We are not missing anything there.
Anything further you want us to read into the attributes if you could please let us know.
And perhaps another way about asking about the margin trajectory in <unk> as a second question.
When we talk about personalization. So I appreciate it it was a positive surprise.
An H one both Q1 and Q2 and I am showing you said.
It's reflected in the full year guidance increase already I understand that but could you. Please.
Perhaps help us understand.
We are now expecting a continuously higher person utilization rates. So are we basically now at the new run rate and we are extrapolating that or are your expectations for the second half that it's as low as you had originally expected and you think H one was more of a one off and we are now dropping back to your original.
<unk>.
Both perhaps for the full year 'twenty three and beyond if you could thank you very much.
Thank you and I think of it.
I think the first one and Tony will take the second on the personalization trend in the margin.
I like your question when you say solid robust well for a solid robust means that the order book of this quarter is I get to the end of the previous quarters is a good point, we'll make sure that in the next call. We'll have only one name one objective, but this means for us means that today is bigger than it was.
So trust asset next year next quarter.
When he was only one word the personalization imagination, but maybe it can before come into that I think you asked us about the the order intake.
Be mindful that this depends also on the number of models that are available for order. So they may change from month to month.
There are periods of time, when we have we are open for taking order.
For a number a larger number of model and some other peer that citizens today for example, where we just have to.
Yes, exactly so today, we have two hybrid into that amount that we are forced to analgesic GTS at ECB.
And with respect to your question, which is a very important one personalization I think I mentioned already our number.
On personalization, we give the flexibility of our clients to define what they want to have on their car between.
Between four and three months before delivery, which again visibility which is fires during the course of the year.
Based on what we know today I think we are confident that for the rest of 2023 will remain in line with the flow that we have seen anything in during the first half okay.
But obviously it becomes difficult to project any any partner and one of the reasons why we said this is at the root of the improvement of the guidance that we've just delivered today.
Okay.
Yes, that's great. Thank you very much and looking forward to tomorrow as well. Thank you.
Thank you.
Thank you for your question.
We're now taking the next question.
Yes.
And the next question from Steven.
Associated.
Please go ahead your line is open.
Thank you good afternoon.
Question first of all on the personal loan growth.
As you reopen the order book for 2026 build slots.
Having closed that early this year when you said that the demand was four to five times higher than you'd be spacing. When you first launched the vehicle I think the question was asked before but I didn't quite maybe the answer of how long is it likely this.
The order window is going to be open on the 26th builds closer where you're already looking at 2020, some build slots as well.
Also mentioned on the personalization that it was spread across the models.
It would seem to me that was one of the reasons why the personalization tools are going up was because in order to secure even builds look for pure song with it probably makes sense for your customers to order is heavily personalize as possible in order to.
Increase the attractiveness and to make them a more desirable customer.
Vehicle that is maybe less of respect thank you.
Hi, Stephen so.
You are right at the beginning we added to stop the order taking order of what I'm, saying because the speed of order intake was four to five times higher than we planted then we settled we had to reorganize it. It's also where all the supply chain. So we are planning to take order and put a sign were for all of 2026.
This is the answer to your first question.
Clearly.
When you have a cat we were four seats.
Ted over to you.
More option on the personalization.
The offer to the client, but I can tell you that if I go to see the trend of the personalization across all.
Let me see the model all the cash.
I mean, there is a trend that is touching all our model.
This is true across all geographies.
I think that the people are.
Considering that we said clearly we do not want to increase a lot the volume they are more of a.
Taylor, Inc.
Likelihood of personnel to address so they weren't they are putting a lot of features.
Caribbean.
<unk> is one of these deliveries.
The Scudetto I think it is there are a lot of feature within the past to the client we are not looking at so much. This is what we see is what receipts can be also.
Reflected in.
Really we see it in Europe , we see in Asia, we've seen in U S.
So this way we are.
Steven.
While there are limitations in that.
You have internally in terms of having enough craftsman two to fulfill all of the desires of our customers.
Importantly, you're pretty choppy.
Good luck.
No we don't ever this limitation.
I can tell you that for sure.
When you're talking about.
The carbon Luca the process to make cariballo component is very much.
Let's say the prospect about we have a solid.
Supply chain over this with different suppliers with whom we have a really strategic relation. So we feel that we have confidence that we can address the personalization in the right way.
If you want to.
The stress test and we need our <unk> overall on the volume increase it has been a very.
Paul.
A posteriori theres been a wise decision.
Thank you very much.
Thank you Steven.
Thank you for your question.
Yes.
We are now taking the next question.
Please standby and the next question from Anthony <unk> from <unk> BHF. Please go ahead. Your line is open.
Yes, hi, Thank you for taking my question. My first question was on the EBIT Bridge.
The other bucket at $54 million impact in Q2.
So you mentioned some of the drivers and thank you for giving us the provision amounts but.
But could you, possibly provide some further granularity into the other components of that item.
And also is that $54 million, just a non repeatable impact as you mentioned or is there some that.
Carried through to H two.
And also in terms of the F. One provision in particular I think I heard that you will now based on your assumptions on.
Placing the construct this ranking.
Currently fourth place today, so I mean hypothetically if you were to maintain that for workplace position should we expect the similar magnitude a provision reversal.
At a later point in the year.
And then I had a quick second question on the FX impacts, which turned negative in the quarter. So I was just wondering if you could provide.
Further information on how you expect that typo, considering your hedging policy.
Then a very small code one also.
Was wondering if you could provide the amounts of Daytona SB threes now that you delivered in Q2.
<unk>.
Okay.
A question on all of our questions are for me, Okay. Let's start from the last one I think in terms of the Daytona where about around 30 units in the quarter. The FX is going to be mistaken, it's actually positive overall impact.
Is the startup of the impact of the <unk> of last year and the negatives in terms of the exchange rates or is the second and the second before last column in the EBIT chart.
In terms of the reconciliation between.
What we have in either and what we have in terms of the revenues from from.
Let me say.
Items is that different from cause a pause.
<unk> and engines I think it's important that.
Explain in either we have all the positives that come from the rising revenues.
We have obviously the D portion, which is related to ranking our positioning in the in the F. One championship.
And then we have the let me call it non repeatable items in this quarter operating non repeatable I think we have D.
The downward adjustment of the provisions for the carbon emissions.
Which is about $10 million in the quarter.
So these are basically allows you a fluid reconciliation between what you would expect from our revenues in what you have in the EBIT.
In other EBIT column.
And then you asked about the impact from.
Possibly becoming.
Hopefully unlikely port rather than second and the impact is the ease of.
A lower is lower compared to what we have from the first and second.
Okay perfect. Thank you very much.
Welcome.
Thank you for your question.
We are now taking the next question.
Okay.
And the next question from Philip Futures from Jefferies. Please go ahead. Your line is open.
Yes, Thank you and good afternoon, and thanks <unk>. Thank you very much for your explanation about when you say every quarter youre surprised by personalization I understand that people.
What they wanted that cars in the first few months before the delivery so that was very helpful.
Most of my questions asked and I was wondering about racing you did very well in the limo 24 races. This year and I was just wondering.
Do you think there's scope for another big.
Racing event or no.
Got it.
John's crisis could be repeated like four times a year instead of an annual event something that would create a business similar or same spirit is what we've seen.
The next one because there's been an amazing revival with this one and there's no reason why theres no scope for other races, and where there may be even take the lead and trying to organize.
On Sunday.
Bigger part of your business model.
Thank you.
Yes, I'll take this question so when it comes to raising it today.
We have.
C. III area of focus one is F. One the second is what is the endurance.
And.
Well the amount of belongs to and the third one is more on the customer and customer relationship management, the lack of the cost typically empty.
The challenge in the finale Mondiale well these out of that is where we ought to focus it today and what we intend to be folks had also for the future.
So today, we want to be when we say that one of the values of our company is <unk> and innovation.
So that has been staffing a lot we are of the endurance championship since the beginning so we are pressing the very best and we are presently formula one and we want to offer this kind of unique experience on the track closer to our clients, that's where we are.
Yes.
Thank you for it.
Thank you for your question.
Yes.
We're now taking the next question.
And the next question from Thomas <unk> from RBC. Please go ahead. Your line is open.
Alright, Thanks for taking my question a quick clarification on the.
<unk> E building, so that'll be ready in 2024, but I guess, the first full electric Ferrari won't be introduced until the end of 2025 just curious.
Why that gap I understand it will also be used for for Ice's cars as well, but just curious if I could just understand that better.
And then on pure song way would be helpful to just understand some of the customer demographics. The take rate there is it.
Is there a percentage of buyers, perhaps that are new to Ferrari, presumably this is a very different customer subset just curious now that you've seen.
Some of the deliveries who was who really is taking these.
And then.
Lastly, the <unk> stirred already uses our custom.
So motor I believe we learned recently from a luxury carmaker recently announcing would be using powertrain electric components from a pure play EV maker, just curious as to what went into your selection.
Outside of that if you consider other providers here does this necessarily indicate how you think about your future EV aspirations.
Listen Thank you Tom So I'll start from the first one there is total rebuilding and I understand that.
I want some clarification so.
Let's remembers June 22, we said we are going to be ready for the building in June 24th and that will happen in June 'twenty four it will start.
To produce something in this line of it is different from an extra cash.
Then end of 'twenty five we will lever in the building.
Announce that extra cash and clear I mean do they after the year after that we will ever electric are getting out of that the buildings. So this is the category and that's the reason why I insisted a lot on any building that is on one side the flexible because it allow us to build a different kind of cost on that.
Other side by using renewable energy fully renewable energy it allows to develop strategic component for our electric cost the.
Secondly, about the photo sandwich demographics well.
The demographics of the voters anyway, it's not so much different from the overall demographics. What I can tell you is that very often we will see behind the name of the.
The salaries that we will have a name.
Of.
Salaries and men, but.
Most of the time of the user would it be the partners.
The women because.
All those in the previous call when we attended that.
Length of loan to put a sanguine september's very often the people who are asking if they could get too because for sure one and only one would have been used.
By the by the partners. The third one is about <unk> 90, <unk> well when you're talking about in a record cash for sure. There are three important blocks one is the battery.
One is the engine and then there is another block that is very important is the power electronics in the middle.
It is not one alone it is making the difference is to the interplay of these three elements.
With the way they work together.
That to me.
A difference.
In the future as we said in capital market day, we will ever also our own electric engine F. One driver that will be used together with a new kind of electronics.
Okay got it thanks.
Thank you.
Thank you for your question.
And now taking the next question.
And the next question from George <unk> from Jess. Please go ahead. Your line is open.
Great. Thank you and thank you for taking my questions I had two questions really the first one was just on special series given the very strong demand you always see the special series.
Would you consider having more than one special series in production at the same time at the moment it feels like you've introduced them sequentially.
But presumably they would be equally special if you had a special series variants BSF 90.
On the $2 96 in production at the same time, given they are two different models.
So that was the first question. The second one was whether you could just clarify.
Where you are in terms of Daytona shipments.
The total units that you plan to deliver.
Roughly 30% through 50% through or any color that would be much appreciated. Thank you.
Okay. So.
With respect to a serious we do not we limit the all of the Super precision between a special series. There is some special series superposition, sometimes between the tail of production of the previous one and the ramp up of the following one senior about 812 competency on NSF 96 extra data, but the discipline.
Superposition is very is very minimal okay. They are pretty much.
I'd say evenly distributed.
And then there is the other question wasn't the data on the number of units for the quarter compared to the year I think we can accumulate even evenly distributed for the quarter.
Thank you for your question.
<unk>.
Thank you Josh.
And now taking the next question.
And the next question from Martino de <unk> from equity.
Please go ahead your line is.
Okay. Thank you.
Thank you good afternoon, and good morning, everybody.
My first question is a general question on the hybrid because you are now in the region of 40% of volumes in hybrid.
I know a lot depends on the mix of specific models and so on but the.
Is there any big differential between IC and hybrid profitability trying to explain a trend today.
Today, and maybe also going forward.
The second question is on the price mix this year for sure very stronger.
What's the speed of you.
You will see and we should imagine for it for next year.
Okay.
Martina.
I think it's important that we explain that you should not consider different different margin for different power unit.
The way, we look at the at our product range and its profitability is very much based on the positioning of each single car irrespective of the power units that it carries.
And with respect to the development of the mix I think we said at the capital market day, we are aiming at having a very balanced product mix over the next four years that this is always our our goal for a number of reasons first because it allows us to serve our clients the best profit.
Secondly, because it allow us to manage the product development and manufacturing activities in a balanced way.
And ultimately because also the profitability.
Would move gradually up.
Along with the development of the product range.
Yes.
Okay. Thank you.
Thank you for your question.
We are now running out of time, so we won't take any further questions and I would like to turn the conference to benefit for.
For closing remarks. Please go ahead.
Thank you all and thank you for your time and also for you all.
Your questions the second quarter of 'twenty three really represents another important milestone for our company, we have a <unk> metal demand.
The reception of both for the SFA 90 X axis or that is by the <unk>.
And the incredible level of attendance to our client events.
And this is also.
Fueling our confidence for the development of <unk>.
Of these yes.
And now I would like to wish you a good afternoon. Good morning, and thank you also for your attention. Thank you.
Yes.
That does conclude the conference for today. Thank you for participating you may hold disconnect.
Okay.
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Okay.
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