Q2 2024 Ferrari NV Earnings Call

Operator: This time, all participants are in a listen-only mode. Please be advised that today's conference. Thank you, Evan, and welcome to everyone who is joining us. Grazie and thank you everyone for joining us today. First revenues were at 1.7 billion euros, up 16% versus the previous year, sustained by the continuing strength of the product mix and the growing demand for personalization. The enthusiastic reception of our latest new sports cars, the 12-cylinder and the 12-cylinder Spiders, drove the order collection in the quarter, adding to an already solid order book on current models, which covers well into 2026.

Operator: This time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press Star 11 on your telephone. You will then hear an automated message advising your hand is raised.

Operator: Please be advised that today's conference is being recorded.

Michael Binetti: I would now like to hand the conference over to your speaker today, although Binetti Investor Relations Manager, please go ahead. Thank you, Evan, and welcome to everyone who is joining us. Today, we plan to cover the group's operating results of the second quarter of 2024, and the duration of the course is expected to be around 60 minutes.

Operator: Such visibility relies on the loyalty of our existing customers all over the world, as well as the brand's appeal to new ones. We continue to allocate our products strategically across the different regions to enhance our brand strength and exclusivity. And now we go to the third point of today's call. Innovation is sustainability, and sustainability is innovation. This is our profound belief.

Today, we plan to call the group here, if anything without the second quarter of 2024, and the duration of Nicole is expected to be around 60 minutes.

Michael Binetti: Today's call will be hosted by the group CEO, Mr. Benedetto Vigna, and the group's CFO, Mr. Antonio Piccon. All relevant materials are available in the Investor section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions.

Michael Binetti: Before we begin, let me remind you that any forward-looking statement 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.

Benedetto Vigna: And the call will be gone right at this language. With that said, I'd like to turn the call over to Benedetto.

Benedetto Vigna: Sustainable innovation has been the focus of a series of events that we hosted in Maranello this June, involving all Ferrari stakeholders. We held a workshop with around 30 of our suppliers aimed at sharing experiences and practices to reduce environmental impact. And during that intense week, we also inaugurated the new E-Building, where E stands for Energy, Evolution, and Environment. In the E-building, we will also engineer and handcraft the strategic electrical components that are highly relevant to differentiating Ferrari's technology and performance. High-voltage batteries, electric motors, and axles.

Benedetto Vigna: Thank you, everyone, for joining us today.

Benedetto Vigna: I'd like to open today's call. We have 12. Thank you. Firstly, to our clients for their continuous trust in our brand. Secondly, to all our partners, suppliers, dear sponsors, we human. We are continuing to strengthen our relationship. And last, but not least, to all our theoretical leads for their outstanding work in passion, supported by a strong sense of belonging.

Benedetto Vigna: Many important milestone and positive achievement took place in these second quarters, the man which our victory is the 24-hour of the man for the second year in a row.

Benedetto Vigna: During today's call, I will touch upon the following four key achievements. One very strong Q2 financial result, and the continuous smooth execution of the years, through a solid order book, which has evolved as expected, with the new dodgy teaching in the inspiring group guiding the ordering takes. Three, a full week of activities in June dedicated to sustainable innovation. These involved all our stakeholders and culminated in the inauguration of the e-building exactly three years from its announcement at the Capital Market Day. We really made it. For due to progress in raising our lifestyles, we've enhanced the cohesion across our company's resource.

Very strong Q2 financial results and the continued smooth execution of the yes.

A solid order book, which is evolving as expected with the new Dolby to Chile, despite that and coupe guiding with order intake.

Speaker Change: A full week of activities in June dedicated for sustainable innovation. These involved with all our stakeholders and culminated in the nomination of the evening exactly three years from its announcement at the capital market day, we really made it.

Speaker Change: Due to the progress in raising your lifestyle, we've announced that the cohesion across our companies resource.

Benedetto Vigna: So let's start with the financial result of the second quarters, which demonstrate again strong execution and continued growth. First readiness, they were at 1.7 billion euro, up 16% versus the previous year, sustained by the continuing strength of the product mix and the growing demand for personalization. Second profitability, which improved, we've adjusted the BDA at about 670 million euro and the remarkable 39% margin. In turn, the next topic, which reaches 413 million euros. On the back of stronger personalizations and increased visibility for the remaining part of the year, we upgraded our 2024 guidance, and then, Antonio, will show you the details later in the call.

Speaker Change: So let's start with the financial results of the second part that we can demonstrate again strong execution and continue to grow.

Benedetto Vigna: Indeed, the full electric Ferrari requires new technologies, new components, and processes, and e-building will enable us to keep our critical know-how and maintain our competitive advantage in the years to come. For this achievement, a special thanks goes to all the colleagues who have been able to maintain the e-building schedule despite all the difficulties that we have experienced during this time. It has not been easy, but they made it happen by acting nimbly, with focus and determination.

Speaker Change: First the revenues they were at one point sending video apps.

Benedetto Vigna: This year, at the beginning of May, we took a further step forward. We organized a series of engaging and unique experiences in my gaming for our community. This encapsulated the elegance of our sports cars, the allure of the Ferrari lifestyle, and the excitement of racing. It was more than just hosting events. It created a coherent, coordinated, and inclusive narrative across each of our three souls. We are aware that Ferrari is an incredible, powerful, and unique brand, being extremely exclusive on the one hand when you think of our sports cars, but at the same time, being very inclusive.

Benedetto Vigna: The solidity of these quarter results was accompanied by a continued strong brand momentum, which brings me to my second key point for today. Intuciastic reception of our latest new sports cars, the Dodge Echelindri and the Dodge Echelindri spiders, drove the order collection into quarter, adding to an already solid order book on current models, which covers well into 2026. Such visibility relies on the loyalty of our existing customers as all over the world as well as the brand appeal to the new ones. On that and keeping an eye on current macro development market by market, we continue to allocate our products strategically across the different regions to enhance our brand strength and exclusivity.

Benedetto Vigna: After the world premiere in Miami, we hosted several regional launches of our newly two-borns, naturally aspirated 12 cylinder sports cars in all major markets, and they will continue in the second half of the years. I attended the summer of these beautiful events and I met clients from different European countries. They all praise the Dodge Echelindri's perfect synthesis between the past and the future. The front of the Dodge Echelindri that records the 1968-35 GP-4s with the world's styling interpreted in a very futuristic way.

Benedetto Vigna: And now we go to the third point of today's call. Innovation is sustainability, and sustainability is innovation. This is our profound belief. Sustainable innovation has been the focus of a series of events that we hosted in Maranello this June involving all Ferrari stakeholders. We have the workshop with around the 30 of our Ferrari partners aimed at the sharing experiences and practices to reduce environmental impact. A full day was devoted to suppliers. They play a key role in our company's drive for innovation. These annual events brought together about 500 people from a few hundred suppliers from all over the world for a discussion on their contribution to sustainable innovation, which is increasingly central to our supply chain.

Speaker Change: Well that was ratified agonist aimed at the shading experiences and practices to reduce environmental impact.

Speaker Change: Full name was devoted to suppliers.

Speaker Change: Play a key role in our company's drive for innovation with.

Speaker Change: This annual event brought together about 500 people from a few hundred suppliers promoting over the warm for a discussion on their contribution to sustainable innovation, which is increasingly central to our supply chain.

Benedetto Vigna: And then a weekend was dedicated to Ferrari employees, their families, and friends. A record presence of more than 30,000 people visiting our factory. Such a great emotion. I spent there the full Saturday, and it was for me the first time, and I will never forget this beautiful, unique experience. And during that intense week, we also inaugurated the new e-building where it stands for energy, evolution, and environment. Envig on the concept of technological neutrality and flexibility, this new facility will house the development and production of ICE hybrid and full electric models. Here, let me remark once again our belief.

Speaker Change: And then a weekend was dedicated to soliris employees their families and friends.

Speaker Change: Record sales of more than 30000 people visiting our factory such a great emotion I felt that the full set of data and it was for me. The first time and I will never forget this beautiful unique experience.

Benedetto Vigna: We believe that there is no single solution to future automotive power trains, and this is particularly true during the current technology transition. The technology of neutrality is a key principle for us and consistent with our strategy, and we continue to invest in the three power trains. In telecom, machine engine hybrid and full electric to provide our client with maximum freedom of choice. In the beginning, we will also engineer and handcraft the strategic electrical component that are highly relevant to differentiating the lattice technology and performance. High voltage batteries, electric motors, and axles. Indeed, the full electric Ferrari requires new technologies, new components and processes, and e-building will enable us to keep our critical know-how in house and maintain our competitive advantage in the years to come.

Benedetto Vigna: The advantages of a new building do not end years; it will also enable us to decouple people wise the production of limited edition cast, such as the corner, from the development of new models, and this will allow us to place the research and development team closer to manufacturing, shortening the product development phase and time to market.

Speaker Change: So I think they corner, hoping to develop into a new model and this will allow us to place the researching that would've been the theme of closer to the manufacturing shortening the product they may face in time to market.

Benedetto Vigna: And here I would like to be very clear on one point. We did not realize the building with the aim of growing our volumes. Our ethos remains the same: quality, quality of revenues over quantity. On June 21, we completed the skeleton of the building and installed the equipment. Now we are fortunate on testing the processes and the backing of the lines to start production of hybrid and IC models from the beginning of 2025. For this achievement, a special thanks goes to all the colleagues who have been able to maintain the e-building schedule despite all the difficulties that we experienced during these times.

Speaker Change: And here I would like to be very clear on one point, we did not realize the building with the aim of growing our volumes. Our ethos remains the same quality quality of revenues over quantity.

Speaker Change: On June 21, we completed the skeleton rebuilding and install it that they keep minutes now we are focusing on testing the processes and the backing the lines, who started production of I believe and I see modest from the beginning of 2025.

Speaker Change: Or these achievements are special thanks goes to all the colleague with being able to maintain the building scheduled despite all the difficulties that we experienced it during these times.

Benedetto Vigna: It has been not easy, but they may have happened by acting nimble with focus and determination.

Speaker Change: It is really not easy, but back to the immediate happen by acting nimbly with focus and determination.

Benedetto Vigna: During the process, we made further progress both in racing and lifestyle, creating stronger conditions across our company's three souls. Let's start with the racing world. In our second season, in the top class of the World Endurance Championship, we achieved an extraordinary success with our four main NNP at the 24 Hours of Le Mans. And this is the second Le Mans victory for our Uppercase. This outstanding result deserves huge praise and is a testament to the exceptional teamwork of all colleagues and their perseverance. The same spirit and will to progress is vivid among our Formula One team.

Benedetto Vigna: Scuderia Ferrari HP approached the 2024 Formula One season with the aim of always fighting at the front. We entered the summer break with encouraging signs. We scored two wins versus zero last years and 50% more points per race compared to last years. The team remains focused and united and is pushing harder to continue to improve the performance of the cars.

Benedetto Vigna: Our recent racing and sports car event have also been the perfect stage to gather our most loyal client and showcase our lifestyle dimension.

Benedetto Vigna: And this brings me on to my last point for today. We have recently been much more deliberate about including our lifestyle collections, our exclusive events, sharing our latest creations with our community. The successful activation in Table Beach and Las Vegas, last years, were a first step. This year, at the beginning of May, we took a further step forward. We organized a series of engaging and unique experiences in Miami for our community. These encapsulated the elegance of our sports cars, the lures of Ferrari lifestyle, and excitement of racing. This was more than just hosting events. It created a coherent, coordinated, and inclusive narrative across each of our three shows.

Speaker Change: We see it at the beginning of May we took as part of our step forward, we organized a serious of engaging and unique experiences in Miami.

Speaker Change: For our community. These encapsulated the elegance of our sportscast Duluth of Ferrari lifestyle, and excite them into racing. This was more than just hosting events, it's created a coherent coordinated and inclusive and novelty across each of our three source.

Benedetto Vigna: The similar approach was also taken during the most iconic endurance race at the Le Mans, with the creation of a pop-up store, a tower casso Ferrari, which received a very positive feedback from clients, resulting in improved sales and the goraging signs for the future. We are aware that Ferrari is an incredible power for the unique brand, being extremely exclusive on one side when you think of our sports cars; at the same time, being very inclusive. If you think of our racing DNA and the millions of defaults, a brand enthusiast that we inspire all over the world.

Speaker Change: A similar approach was also taken during the most iconic endurance race, Italy months with the creation of a pop up stores at our cast a variety which received a very positive feedback from clients, resulting in improved sales and encouraging signs for the future.

Speaker Change: We outerwear.

Speaker Change: <unk> is an incredible powerful and unique brands being extremely exclusive on one side. When you think of our spot gas at the same time of being very inconsiderate. If you think of our racing DNA in the millions of before a brand enthusiasm that we inspire all over the world.

Benedetto Vigna: If you think of our racing DNA and the millions of di Fossi and brand enthusiasts that we inspire all over the world. Among them, during the Formula One Grand Prix at Imola, two Ferrari enthusiasts had a once-in-a-lifetime opportunity to spend the night inside our iconic museum in Maranello, which was the setting for a unique Airbnb stay, an experience not usually available to the public.

Benedetto Vigna: And as then, during the Formula One Grand Prix, a team of two Ferrari enthusiasts had a once-in-a-lifetime opportunity to spend the night inside our iconic museum in Maranello, which was the setting for a unique Airbnb stay and experience not usually available to the public. We were able to create this activation by leveraging our existing assets. Our museums in Maranello in Modena, and here, for the first time, we passed the threshold of 100,000 visitors in May alone. The Fiorano Ristrat and our historic Cavalino Restaurant.

Speaker Change: And none of them knew in the Formula One Grand Prix at the moment.

Benedetto Vigna: To conclude, this second quarter of 2024 has been full of significant milestones, and I believe this achievement marked the continuation of our journey as we are driven on by our will to progress in the drive-up for excellence in everything we do, always, always keeping four wheels on the ground.

Antonio Piccon: And I believe this achievement marks the continuation of our journey, as we are driven on by our will to progress and the drive for excellence in everything we do. Always, always keeping four wheels on the ground. And on this note, I hand over to Antonio to review the Q2 2024 financial results. I start on page 6, where we present the highlights of the second quarter. Moving to page 7, we review our achievements for the second quarter, which increased by 92 units.

Antonio Piccon: And on this note, I end over to Antonio to review the Q2 2024 financial results.

Antonio Piccon: Please, Antonio. Thank you, Manager. And good morning or afternoon to everyone joining us today. I start on page 6, where we present the highlights of the second quarter. Continuing the trends from the first quarter, the growth rate of revenue and profitability outpaced that of our deliveries, mainly thanks to the enriched product mix and increased personalizations. Therefore, while shipments grew by less than 3%, revenues were up 16%, adjusted it up 17%, with a 29.9% margin, adjusted the BDA increased 14%, with a 39.1% margin, and such economic results led to a remarkable industrial shrinkage, low generation despite higher capital expenditure and tax pay.

Antonio Piccon: 17. Moving to page 7, we review our shipments for the second quarter, which increased by 92 units. As I mentioned by Benedetto, we leverage our order of visibility and production flexibility to design our product allocation across the different regions, consistently with the development of serve in each respective market. As a result, the lever is increased in India, America's and the rest of Iraq, while decreased by roughly 60 units in mainland China on Kong and Taiwan. The increase in the lever was driven by the Puro Sangue, the Roma Spider, and the 296GTS. Additionally, we commence the first deliveries of ESF 90XX Stradale, the special series hybrid with a limited production run of 799 units.

Antonio Piccon: As a result, deliveries increased in EMEA, the Americas, and the rest of APAC, while decreased by roughly 60 units in Mainland China, Hong Kong, and Taiwan. The shipments of the Roma and the Special Series A12 Competizione decreased, approaching the end of their life cycles, while the SF90 Stradale and the A12 GTS phased out.

Antonio Piccon: The allocation of the Arizona SB3 grew in the quarter compared to the prior year, but were lower than in Q1 in line with our plans. The shipments of the Roma and the special series A2L competition decreased approaching the end of their life cycle, while the ESF 90X Stradale and the A2L GTS stays out. In the quarter, the hybrid share reached 48% in line with product caden and made it driven by the 296GTS. On page 8, you can see the net revenues bridge, which shows a 19% growth versus prior year at constant currency. The increasing cars and spare parts was the most relevant contributor, driven by the richer product mix and country mix, as well as higher personalizations.

Antonio Piccon: On page 8, you can see the next Revenues Bridge, which shows a 19% growth versus the prior year at constant currency. In the quarter, personalization is further strengthened, and almost 20% of total revenues come from cars and spare parts, mainly supported by the Puro Sangue and Daytona FP3. Currency, net of ages in place, has a negative net impact, mainly due to the adverse dynamics of the US dollar, the Japanese yen, and the Chinese yuan versus the euro.

Antonio Piccon: In the quarter, personalization fathers strengthened an almost 20% of total revenues from cars and spare parts. Mainly supported by the Puro Sangue and data on SB3. Sponsorship commercial and brand increase thanks to new sponsorships related to our rating activities and improvement in lifestyles. The increasing sponsorships reflect the latest sponsor additions, including HP, as the new title sponsor of Scuderia Ferrari in F1. Other revenues were almost flat, with improved contribution from financial service activities substantially offset by the Maserati contract expiration. Currently, net of edges in place, as a negative net impact, mainly due to the adverse dynamics of the US dollar, the Japanese yen, and the Chinese yuan versus the euro.

Speaker Change: Commercial and brand increased chance to noon sponsorships that are related to our rating activities and improvements in lifestyle named.

Speaker Change: The increase in sponsorships that reflects the latest sponsors additions, including HP as the new title sponsor of split any of her body in our plan.

Speaker Change: Other revenues were almost flat with improved contribution from financial service activities substantially offset by the Maserati contract expiration.

Speaker Change: Currency net of hedges in place as a negative net impact mainly due to the adverse dynamics of the U S dollar the Japanese yen and Chinese Yuan versus the euro.

Antonio Piccon: Moving to page 9, the change in adjusted EBIT is explained by the following variances. Volume, positive, and reflecting the unity increase versus prior year. Mix and price, strongly positive thanks to the robust product mix sustained by the data on SB3, and a few 499p modificata saves. D'increase contribution from personalizations, and a positive country means mainly supported by the increased weight of the Americas. Industrial energy expenses were almost flat in the quarter, as DNA increased and reflected marketing and brand investment and the ongoing development of our digital infrastructure and organization. The events we held in Miami and Le Mans exemplify our brand investment, perfectly integrating the sports cars, lifestyle, and racing souls.

Antonio Piccon: Moving to page 9, the change in adjusted EBIT is explained by the following variances, Volume positive and reflecting the units increase versus the prior year. LG&A increased and reflected marketing and brand investment and the ongoing development of our digital infrastructure and organization. The events we held in Miami and Le Mans exemplify our brand investments, perfectly integrating the sports car lifestyle and racing soul. Lastly, the total net impact of currency was negative for 35 million euros.

Speaker Change: Moving to page nine the change in adjusted EBIT is explained by the following <unk> variances.

Speaker Change: Volume positive and reflecting the units increased versus the prior year.

Speaker Change: Mix and price strongly positive thanks to the robust product mix sustained by data on SB, three and a few for 90 90 more difficult assays.

Speaker Change: The increased contribution from personalization.

Speaker Change: And a positive country mix, mainly supported by the increased weight of the Americas.

Antonio Piccon: Other were almost flat in the quarter. The increased contribution from new sponsorships and a new release of current environmental provisions worth approximately 10 million euros were mostly upset by higher costs for racing, also due to better Formula 1 in season ranking. Lastly, the total net impact of currency was negative for 35 million euros. As a result, the EBDA imagines 2.39.1%. As a reminder, the exceptional EBDA imagines 40% in Q2 2023 was supported by certain timing and other positive effects, which in part took place also this quarter. The EBDA imagines 29.9% and benefited from flat depreciation and amortization compared to the prior year as a result of the production cadence of current models.

Antonio Piccon: And as a result, the EBITDA margins stood at 39.1%. As a reminder, the exceptional ABDA margin of 40% in Q2 2023 was supported by certain timing and other positive effects, which in part took place also this quarter. The EBIT margin reached 29.9% and benefited from flattish depreciation and amortization compared to the prior year as a result of the production cadence of current models, tax payments, and an increase in networking capital provisions and others, primarily driven by higher inventory, which reflects both our production plans and the enriched product.

Antonio Piccon: Turning to page 10. In the second quarter, our industrial free cash flow generation was 121 million euros, reflecting the increase in profitability, partially set by capital expenditure that are higher than last year and in line with the pace of development of our products as well as of the new infrastructure in Maranello. As previously mentioned, capital expenditure this year are progressing more linearly compared to our usual cadence due to advanced development of the product pipeline and the ongoing spending for the new paying shop. Tax payments and an increase in networking capital provisions and other primarily driven by a higher inventory, which reflects both our production plans and the average product mix.

Speaker Change: Turning to page 10.

Speaker Change: In the second quarter, our industrial free cash flow generation was 121 million, reflecting the increase in profitability, partially offset by capital expenditure that are higher than last year and in line in line with the pace of development of our product as well all of the new infrastructure in Maranello.

Speaker Change: As previously mentioned capital expenditures this year are progressing more linearly compared to our usual cadence due to advanced development of the product pipeline and the ongoing spending for the new paint shop.

Speaker Change: Tax payments and an increase in networking capital provisions and other primarily driven by higher inventory, which reflects both our production plans and product mix.

Antonio Piccon: And the out of June, the company was in a net industrial debt position for 141.1 million euros since the dividend payment and the share purchase occurred in the quarter more than offset the positive industrial free cash flow.

Antonio Piccon: And at the end of June, the company was in a net industrial debt position of 441.1 million euros since the dividend payment and the share purchases that occurred in the quarter more than offset the positive industrial pre-cash flow.

Speaker Change: And we are in June the company was in a net industrial debt position 441 to 1 million euro since the dividend payments and share repurchases occurred in the quarter more than offset the positive industrial free cash flow.

Antonio Piccon: Moving to page 11, we revised upward the 2024 guidance mainly to reflect the improved visibility on stronger personalization following the very solid result of the first six months. We are also projecting higher and the experiences for racing and other innovation activities, as well as for marketing and brand initiatives for the rest of the year. This leads us to confirm the everyday margin target for the year while upgrading the Edith margin to reflect the operating level of John Dianne. May. The improved EPS also reflects the new estimate on the tax rate for 2024, now in the region of 19.5%, which benefits from the temporary coexistence of the two different patent box regimes.

Antonio Piccon: Moving to page 11, we revise upward the 2024 guidance, mainly to reflect the improved visibility on stronger personalization, following the very solid results of the first six months. We are also projecting higher R&D expenses for racing and other innovation activities, as well as for marketing and brand initiatives for the rest of the year. The improved EPS also reflects the new estimate on the tax rate for 2024, now in the region of 19.5%, which benefits from the temporary coexistence of the two different patent box regimes.

Speaker Change: Yes.

Speaker Change: Moving to page 11, we revised upward the 'twenty to 'twenty four guidance, mainly to reflect the improved visibility on stronger personalization.

Speaker Change: Following the very shortly as a result of the first six months.

Antonio Piccon: The strong profitability also turns into higher industrial free cash flow, notwithstanding the increased pace of our capital expenditure about the initial 950 million euro target, also reflecting the update online for the new paint shop, which has been accelerated compared to our plan as per the last Capital Market Day. To sum up and focus on the second out of the year, we therefore expect a positive product mix, even though to a lesser extent compared to the first half. Even the lower Daytona delivery is in line with our plans, the mention increase in R&D Office and SGA, and IRDNA in line with the start of production of new models and digital infrastructure.

Antonio Piccon: The strong profitability also translates into higher industrial free cash flow, notwithstanding the increased pace of our capital expenditure above the initial €950m target, also reflecting the updated timeline for the new paint shop, which has been accelerated compared to our plans as per the last capital market day. To sum up and focus on the second half of the year, we therefore expect a positive product mix, even though to a lesser extent compared to the first half, given that the lower Daytona delivery is in line with our plans.

Antonio Piccon: With respect to the quarterly pace, we concern the already flag softer Q3, intentionally designed in terms of volumes, model and company mix allocation, to ease the whole company in its transition to the new ERP, the enterprise resource planning software for over collection, production and sales management, that we've alive at the end of August.

Antonio Piccon: With respect to the quarterly pace, we confirm the already flagged software Q3, intentionally designed in terms of volumes, model, and country mix allocation to ease the whole company in its transition to the new ERP, the enterprise resource planning software for order collection, production, and sales management that will go live at the end of August. To conclude, the financial results that we present today underscore the solid fundamentals of our business and flawless execution. I thank you for your attention, and I now turn the call over to Aldo. Thank you, Antonio.

Antonio Piccon: To conclude, the financial results that we present today underscored the solid fundamentals of our business and a flawless execution. Such results and the visibility that we enjoy give us renewed confidence to sustain this positive momentum and keep on delivering on our commitment.

Michael Binetti: I thank you for your attention and an alternative all over to us. Thank you, Antonio. Even we are now ready to start the Q&A session. Thank you. As a reminder to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. Please stand by while we compile a Q&A roster.

Operator: Ivan, we are now ready to start the Q&A session. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name. Please stand by while we compile. Good afternoon, everybody.

John Murphy: Our first question comes from the line of John Murphy of B of A's. Please go ahead. Your line is open.

Michael Binetti: I do want to ask two relatively simple but important questions. Benedetto, when you talk about the order book being full through 2026, that's sort of an indication that you know what your units are going to be or plan on what your units are going to be through the next two and a half years. I'm just curious, as you know that and you plan for that, is there just a much greater focus on price and mix? I think let's start with the first one, personalization. Michael, thanks for your question, and the compliments go to all the team.

John Murphy: Good afternoon, everybody. I do want to ask two maybe kind of relatively simple, simple but important questions. When you talk about the order book being full through 2026, that's sort of an indication that you know what your units are going to be or planning on what your units are going to be through the next two and a half years. I'm just curious; as you know that and you plan for that, is there just a much greater focus on price and mix with very slow growth in units, or could we see maybe a little bit of an acceleration in unit growth and a slightly less emphasis on price and mix.

John Murphy: I mean, how do you think about balancing those, and you know, to really the volume growth of the next two and a half years.

John Murphy: In the second question. And the second question is, the margins are bumping up against the high end of the range of the 2026 outlook.

John Murphy: Is there a way to maybe potentially think about recasting margin potential in the company really in light of the first question?

Speaker Change: Way to maybe potentially think about recasting margin potential in the company really in light of the first question.

Benedetto Vigna: Okay, so I think the first one, the second that Antonio will have, John. Thanks for your question. Coming to the first one is, they say what we see is an advantage in terms of mix and price, and the slow will grow. Okay, coming back to your first question. The second, Johnny, if I got your question right in terms of the guidance and margin, this is very much driven by the development of our mix going forward. And obviously the incidence of expenses, so if you look at Q2, I think the rationale for that is clear, but if we look forward to the second half of the year, I think there are additional costs that are partly seasonal, that are denting into the continuation of the similar level of profitability.

Jonathan: Okay. So I think the first time in the cycle that will I'm done you will enter Jonathan. Thanks for your question coming to the first one is would give let's say what we see is that an advantage in terms of mix and price.

Speaker Change: In this lower growth, okay coming back to your first question. The second Johnny If I got your question right in terms of the guidance on margin. This is very much driven by the development of our mix going forward and obviously the incidents of expenses. So if you look at Q2.

Speaker Change: <unk>.

Speaker Change: I think of the rationale for that is clear, but if we look forward to the second half of the year I think there is.

Speaker Change: Additional costs that are partly seasonal that are denting in to the continuation of the similar level of profitability.

Antonio Piccon: So 2025 and 2026. 26 is out there in terms of the items and remains there, and 26 will speak later on beginning of next year.

Duane: So trying to identify and Duane if I can just take slenderness is out there in terms of guidance and that means there and then six months later on beginning of next year.

Speaker Change: Okay.

Michael Bonetti: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Michael Bonetti of Evercore ISI. Please go ahead; your line is open. Hey guys, I have my congratulations on a great execution quarter. A couple, if you questions from me one on personalization, can you help us understand the increase in personalization?

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next question comes from the line of Michael Binetti of Evercore ISI. Please go ahead. Your line is open.

Michael Binetti: Hey, guys, who come and my congratulations on a great execution quarter.

Michael Binetti: A couple just two questions from me one on personalization can you help us understand.

Michael Bonetti: I think you said almost 20%; maybe breakdown what's helping move that higher, any headwinds, and I'm curious how much that mix of cars is influencing that and if the early shipments of the SF 90 XX special models are suggesting that personalization will be in line with averages or above as we move past to Q. And then the second question is, as we sink ahead to the EV next year, it's interesting to look back and see how the company has rolled out new technologies in the past. The law Ferrari introduced the curves hybrid system, and you guys chose to bring that out at a very high price, 1 million euro plus supercar price point.

Michael Binetti: The increase in personalization I think you said almost 20% maybe breakdown whats, helping move at higher any headwind and I'm curious how much that mix of cars that are influencing that and if the early shipments of the S. F 90 X X special models.

Michael Bonetti: Conversely, the person you brought that out as a premium price road car with a higher unit count than the strictly limited law Ferrari.

Benedetto Vigna: If you think about those two examples, what are the most important elements of the strategy that you think about in launching the EV? I think that started the first one, the personalization, Michael. Thanks for your question and the compliment to go to all the team. The story of the personalization, we have these questions several times. What we see and we are focusing in supporting the demand of increased personalization from our client. I would like you all to remember a couple of things: one, the personalization level does not depend too much on the model; it's about 20%.

Benedetto Vigna: The story of personalization. We have had this question several times. What we see, and we are focusing on supporting the demand for increased personalization from our clients. I would like you all to remember a couple of things. One, the personalization level does not depend too much on the model. It's about 20%.

Benedetto Vigna: Clearly, in absolute term, when you sell something that is more expensive in absolute term, it is bigger, but in any case, it is around 20%. The second thing that I thought I would like to share with you is that the dimension of the personalization that is that our client likes a lot is the carbon finish. We keep analyzing what is the take rate of the different optional that we offer, and we see a clear, clear dominance of everything that is carbon finish, and we have been looking at this both inside in the car and outside the cars.

Speaker Change: Although the personalization that is.

Michael Binetti: With our client like a lot is the Caribbean finish.

Speaker Change: We keep analyzing what is the take rate of the different options that we offer and we see a clear dominance of everything that is Caribbean.

Michael Binetti: Finished and we have been looking at this both inside in the in the car and outside the cash. So we are putting our supply we are strengthening support strengthening they say the supply chain in a way that we can accommodate the different client needs. So this is about the personalization.

Operator: So we are strengthening the supply chain in a way that we can accommodate different client needs. This is about personalization. These are the two facts that are supported by data analysis or what we see in terms of the behavior of our clients. One message that I said when I made the introduction is that we continue to believe in technology neutrality, we are acting in that direction, and our plan for EV introduction is as it was.

Benedetto Vigna: So we are putting our supply; we are strengthening support, strengthening the supply chain in a way that we can accommodate the different client needs. So this is about the personalization. These are the two facts that are supported by data analysis of what we see in terms of behaviors of our client.

Michael Binetti: They are the two factors that are supported by data analysis or what we see in terms of behaviors of our clients.

Benedetto Vigna: The second instead is about the strategy. Here I would like to remind that it was May 2022 before the CMD when we had several discussions in the company. It was clear at that time that it wouldn't make sense to push only one kind of propulsion. The technological neutrality is a key when you have say the market is not does not know where to go. So for us, making the EV is a way to show our client that whatever is the technology, we can harness in a unique way to deliver them unique driving trails. So one message that I said when I made an introduction is that we continue to believe in technology neutrality.

Speaker Change: And the second instead is about the strategy here I would like to remind you that.

Speaker Change: It was may 2022, before the C. M D. When we had the seven largest casualty in the company it.

Michael Binetti: It was clear at the time that.

Michael Binetti: It wouldn't make sense to push only one kind of propulsion.

Michael Binetti: Technology carbon neutrality is a key when you have let's say the market is not.

Speaker Change: <unk> does not have nowhere to go so far as of making the EV is a way to show our clients that whatever is the technology weekend anonymous in a unique way to deliver them unique driving trips so.

Speaker Change: One message that I said were naive maybe the introduction is that we continue to believe in technology neutrality, we are acting in that direction and our plan.

Benedetto Vigna: We are acting in the direction and our plan our product let's say our plan of the introduction is as it was we unveiled the car in Q4 2025 and we believe we are able we will be able to deliver unique driving experience to our customers with any kind of cars that we are going to make in the building. Thank you very much. Thank you.

Michael Binetti: Our let's say our plan of EV in production is.

Operator: We unveiled the car in Q4 2025, and we believe... We are able, we will be able to deliver a unique driving experience to our customers with any kind of car that we are going to make in the e-Building. Thank you very much. Our next question comes from the line of George Galliers from Goldman Sachs. Please go ahead. Your line is open.

Michael Binetti: Is it towards we unveiled occurred in Q4 2025, and we believe.

Speaker Change: We are able we will be able to deliver a unique driving experience to our customers with any kind of cars that we're going to make in the building.

Speaker Change: Thank you very much guys.

Antonio Piccon: We will now take our next question. Please stand by.

Speaker Change: Thank you we will now take our next question. Please standby.

George Galliers: Our next question comes from the line of George Galliars from Goldman Sachs. Please go ahead. Your line is open. Thank you very much for taking my question. Obviously, it sounds like you are seeing very strong demand still for all of your products, and obviously you have a very healthy order book. Obviously, just the mindful of what we are hearing other luxury companies talk about as you have built up the order book of the Doe de Chicholindray. Have you seen any areas where perhaps the market has not been as strong as you might have expected, and potentially any areas where that has been more than compensated for by very high demand.

Speaker Change: Our next question comes from the line of George <unk> from Goldman Sachs. Please go ahead. Your line is open.

George Galliers: Yes, thank you very much for taking my call for a healthy Audible. Phil Topp, The Order, back to the very strong price mix during the quarter. Please give us any insights into how much of that was from the contribution from Daytona SP3. 499. Together with the technological neutrality, we said another important thing, because of the product pipeline we were developing, we said that China would always be lower than 10% greater China. So, I would say no surprise in this respect. And the second is for you, Antonio. Hi George.

George <unk>: Yes. Thank you very much for taking my questions.

Speaker Change: It sounds like.

George <unk>: You are seeing very strong demand for all of your products and obviously you have a very healthy order book.

George Galliers: Is there any sort of geographic development that has caused you to raise an eyebrow, and then the second question I had was just with respect to the very strong price mix during the quarter. Can you give us any insights into how much of that was from the contribution from Daytona SB3 and the 499, and with respect to the 499, if you're able to provide any insight around the volume in the quarter, the volume we should expect over the remainder of the year, I think that would be very helpful. Thank you.

Benedetto Vigna: Thank you, George. I think the first one; the second Antonio will, will reply. So, the first one, maybe the question is about the dodici cilindri or the book, right? That's what you said, Dodici cilindri. So, I can tell you that the traction of these, of both models, is very strong across all of the countries. There is only one counter, but we knew already by the sign, one country where the order book is not so strong like in other countries because it's dodici cilindri, because there is the additional tax burden that is China. But remember that when we show you, when we share with you the capital market during the market day, the plan for the four years, together with the technological neutrality, we said another important thing: because of the product pipeline we were developing, we said that China would have been always lower than 10% greater China.

Speaker Change: Net.

Speaker Change: When we show you the.

Speaker Change: When we shared with you the capital market by market data plan and our forecast for the four years.

Speaker Change: Together with the technological neutrality, we had another important thing because of the product pipeline. We were developing we said that China would have been always lower than 10% greater China. So I would see no surprise in this respect.

Benedetto Vigna: So, I would say no surprise in this respect; I would say instead one thing that the traction of the dodici cilindri has been stronger, I would say even much stronger than the two predecessors in the same category, talking about the 812 GTS and the 812 Superfast. So, we are happy about the traction of this model with the different clients that have seen.

Speaker Change: I wouldn't say instead, one thing back to the traction of the Dod digitally injury has been stronger.

Speaker Change: I would say even much stronger than the two predecessors in the same met in the same category and talk to you about a 12.

Speaker Change: GTS is.

Speaker Change: Super fast so.

Speaker Change: We haven't we are upbeat about the traction of this model with a different client that I've seen in.

Antonio Piccon: In the second is for you, Antonia. Hi George, during the quarter we ship 74 Daytona. That's why I said less than in Q1 and of the higher than last year. And going forward, you remember we said that the crime over the course of the second half, in order to have a sort of average for the year, which is likely about 60 per quarter. And the 499P, sorry, we ship five in the quarter, that is not to be expected and even pace of the leave very going forward, but moral life that could be the region or need four to five depending on the quarter, the clients.

Speaker Change: And the second is for you I'm going to have high charges during the quarter, we shipped 74 Daytona.

Antonio Piccon: During the quarter, we shipped 74 Daytonas in order to have a sort of average for the year which is slightly above 60 per quarter. Fantastic, thank you very much. Thank you. Our next question comes from the line of Thomas Besson of Kepler Chevro.

Speaker Change: That's why I said less than in Q1, and obviously higher than last year and going forward. You remember, we said that the decline over the course of the second half.

Speaker Change: In order to have a sort of average for the year, which is slightly above 16.

Speaker Change: Per quarter.

Speaker Change: And the 499 fees sorry, we shipped five in the quarter.

Glenn Moro: There is not to be expected uneven pace of delivery going forward, Glenn Moro lines that could be the region four to five depend.

Speaker Change: Depending on the quarter.

George Galliers: Fantastic, thank you very much.

Speaker Change: The clients.

Speaker Change: Fantastic. Thank you very much.

Thomas Besson: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Thomas Besson of Kepler Chevro. Please go ahead; your line is open.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next.

Speaker Change: <unk> comes from the line of Thomas Besson of Kepler Cheuvreux. Please go ahead. Your line is open.

Thomas Besson: Please go ahead. Your line is open. With what you said, we should expect a substantially lower number of SP3, but a much higher level of Daytona and XX, I guess. Could you help us assess whether the average selling price in the second half could be higher than the first half or not? And also mention the impact of the declining Chinese share on that calculation?

Thomas Besson: Thank you very much for thinking my questions and conversations on numbers. I'd like to discuss with you the possibility of seeing your averaging prices moving even higher or not in the second half. I mean, I was impressed by the step up in Q2 versus Q1. With what you said, we should expect a substantially lower number of SP free, but a much higher level of data nine XX, I guess. Could you help us assess whether the average thing price in the second half could be higher than the first half or not. And also mention the impact of the declining China share on that calculation, but the first question.

Thomas Besson: Thank you very much for taking my questions.

Thomas Besson: Congratulations on the numbers.

Speaker Change: I think too.

Speaker Change: Just because the reserve.

Speaker Change: The possibility of seeing.

Speaker Change: <unk>.

Speaker Change: <unk> prices.

Speaker Change: Moving even higher.

Speaker Change: In the second half I was impressed by the <unk>.

Speaker Change: In Q2 versus Q1.

Speaker Change: With what you've said we should expect.

Speaker Change: A substantially lower number but.

Speaker Change: A much higher level of data nine Xx I guess.

Speaker Change: Could you help us, especially well.

Speaker Change: Average selling price in the second half could be higher than that.

Speaker Change: First half or not.

Speaker Change: And also mentioned the <unk>.

Speaker Change: Parts of the declining China Asia.

Speaker Change: That calculation, but the first question.

Antonio Piccon: And the second, the SF Solidarity is finished now. Could you talk about the expected evolution of the high breacher in the coming quarters? It has reached a high level driven by now the 296 TTS. What should we expect in the coming quarters, and when should we expect you to release a new hybrid car?

Benedetto Vigna: That's the first question. And the second, the SF is finished now. Could you talk about the expected evolution of the hybrid car in the coming quarters? It has reached a high level driven by now the 296 GTS. What should we expect in the coming quarters? And when should we expect you to release a new hybrid car? I take the second. Antonio will take the first.

Speaker Change: And the second.

Speaker Change:

Speaker Change: S F.

Speaker Change: Alrighty.

Speaker Change: Could you talk about the expected evolution of the hybrid show.

Speaker Change: In the coming quarters. It has reached a high level driven by another 2006 GTS.

Speaker Change: What should we what should we expect in the coming quarters and when should we expect you to release.

Brito: Hi, Brito.

Benedetto Vigna: I take the second; Antonio will take the first. Here maybe I would like to share with you one important point. Then when we see the number of the share of the cars, hybrid cars, I see more or less we are around 50-15. Well, I think that there is a, it continues to be a strong traction for our hybrid model. And just yesterday was with a few clients that were extremely happy about the 296 GTB compared with the 458; it was thermal. And so what I want to say is that we expect the traction of the hybrid going forward in the same level as it has been so fast.

Speaker Change: So I think in the second.

Antonio Piccon: Here, maybe I would like to share with you one important point. Today, when you see the number of shares of the cars, hybrids, as I see it, more or less, we are around 50-50. Well, I think that there continues to be strong demand for our hybrid model. And just yesterday, I was with a few clients who were extremely happy about the 296 GTB compared with the 458. It was thermal.

Brito: Anthony will take the first debt yet maybe I would like to proceed we view one important point.

Speaker Change: <unk>.

Speaker Change: The when we you will see the number of the share of the cash I believe SAIC motor unless we are around 50 50.

Speaker Change: Well I think of that.

Speaker Change: There is.

Speaker Change: This will be a strong traction for our hybrid model and just yesterday was we have a few clients that they were extremely happy about that the 296 GTD compared with 45 eight pixel steadman.

Speaker Change: <unk>.

Speaker Change: So what I want to say is that we expect.

Speaker Change: The traction of the hybrid debt going forward in the same level. It is as it has been so fast.

Benedetto Vigna: And we start to see also some positive comment about the initiative we launched at the beginning of this month, sorry, the past month in July when we extend also the warranty to the high voltage battery of the hybrid car. So we don't see any strange sign on hybrid; on the contrary. We see a strong positive interest and attention in driving trails that our clients are experiencing when they drive this hybrid car.

Speaker Change: And we start to see also some.

Speaker Change: A positive comment about the initiatives, we launched at the beginning of this month.

Speaker Change: The past month in July when we extend that also the warranty.

Speaker Change: I voltage battery of the hybrid hybrid cash so we don't see any any.

Speaker Change: Strange sign on on hybrid on the contrary, we see a strong positive.

Speaker Change: Interest and attention and driving trails that our clients are experiencing when they arrive at these hybrid cash.

Antonio Piccon: So that's, I think it's the second, and then I'm going to go to the previous numbers. Anyway, the second in terms of ASP for the second after the year, I would expect it not to be not very different, maybe slightly lower compared to the first step. And while with respect to the, and this is mainly due to the fact that I don't is going down in terms of number of shipments. Through there will be some more as 90 execs that this will be growing. We will deliver until now a few tens of this car; there will be in the region of 100 or slightly more of this in the second half.

Benedetto Vigna: So that's, I think, the second one, and then Antonio. Yeah, I'll go to the trivial numbers. Anyway, in terms of ASP for the second half of the year, I would expect it to be not very different, maybe slightly lower compared to the first half. While with respect to the, and this is mainly due to the fact that Daytona is going down in terms of the number of shipments, though there will be some more S90 XX that this will be growing.

Speaker Change: So that's.

Speaker Change: That's I think the second amendment.

Speaker Change: But the previous numbers.

Speaker Change: Anyway, and then secondly in terms of ASP for the second half of the year.

Speaker Change: I would expect it to be not where it is and maybe slightly lower compared to the first half.

Speaker Change: While our with respect to the and this is mainly due to the fact that <unk> is going down in terms of number of shipments.

Speaker Change: Through there will be some more.

Speaker Change: S. S 90 X X, there's going to be growing.

Benedetto Vigna: We have delivered until now a few tenths of this car. There will be in the region of 100 or slightly more of these in the second half. But overall, the net impact should be the one that I know, Henning. So the first one, personalization. I mean, forecasting, the behavior of the client, you know very well, is not easy. What we can, what the only thing, allow me to say, the best antidote or the best way to manage this is to become, to be agile, to accommodate the needs, to have some flexibility.

Speaker Change: We are delivering now few tens of the sky there would be in the region of 100 or slightly more of these in the second half, but overall the net impact should it be the winder that niche.

Antonio Piccon: But overall, the net impact should be the one that I mentioned. Thank you a lot.

Speaker Change: Thank you very much.

Henning Cosman: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of heading Cosmon of Barclays. Please go ahead. Your line is open. Yeah, thanks so much for taking my question. I have one question of personalization, please. I believe at Q1 stage, we talked about a level of slightly higher than 19%. And at the time, you said it was above average what you were expecting going forward. We're now talking, I believe, more like 20%, and you are not talking about above average anymore. So is it fair to say that at this point the expectations for personalization have shifted up, and you're now expecting more sustainably a level of 20%.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next question comes from the line of Henning Cosman of Barclays. Please go ahead. Your line is open.

Speaker Change: Okay.

Henning Cosman: Yes. Thanks, so much for taking my question I have.

Speaker Change: One part of your question on personalization. Please.

Henning Cosman: I believe Q1 stage, we talked about a level of slightly higher than 19% and at the time you said it was above average.

Speaker Change: What you were expecting going forward, we're now talking I believe more like 20% and you are not talking about above average anymore. So is it fair to say that at this point.

Speaker Change: <unk> for personalization have shifted up and Youre now expecting more sustainably a level of 20%.

Henning Cosman: And the second question perhaps on residuals. I know we've been talking about residual normalization. If you could just share your latest observations and thoughts. I know you think that residual value should start to normalize to a greater degree than that. Perhaps during the COVID and semiconductor period. Do you think at all that could affect your ability going forward to try success models at a as large a markup as you have currently done once your bias start to consider perhaps a more normalized development in residual values. But also, more broadly, any considerations you would share around residuals will be greatly appreciated.

Speaker Change: And the second question, perhaps on residuals.

Speaker Change: I know we've been we've been talking about residual normalization.

Speaker Change: If you could just share your latest observations and thoughts I know you think that.

Speaker Change: Residual values should start to normalize to a greater degree than that perhaps during the COVID-19 in semiconductor period.

Speaker Change: Do you think at all that could affect your ability going forward to rise successor moderates at as large a mark up as you have currently done once your bias.

Speaker Change: Start to consider perhaps a more normalized development and residual values.

Speaker Change: But also more broadly any any considerations you would show around residuals will be greatly appreciate it. Thank you very much.

Henning Cosman: Thank you very much.

Benedetto Vigna: Henning, so the first one, personalization, I mean forecasting the behavior of the client, you know very well is not easy. What we can, what the only thing, allow me to say the best antidote or the best way to manage this is to become, to be agile, to accommodate. There needs to have some flexibility, that's why we are so much proud about our rebuilding because of the flexibility that allows us. So for the rest of the year we expect in any case something that is in the range of 19, it can go up a little bit 19.5%, but that 19% is what you can, what you can consider also for the rest of the year, that's what we are planning for.

Speaker Change: And so the first one personalization.

Speaker Change: I mean, the forecasting the behavior of the clients you know very well is not see what we can what the only thing allow me to say the best antidote.

Speaker Change: Best.

Speaker Change: Way to manage these is to become to be agile to accommodate their needs to have some flexibility. That's reason why we are so much proud about our E building because of the flexibility that allows us so for the rest of the year. We expect in any case something that is in the range of 19. It can go up a little bit the 19, 5% but that.

Antonio Piccon: That is why we are so proud about our e-building, because of the flexibility that it allows us. So for the rest of the year, we expect, in any case, something that is in the range of 19. It can go up a little bit, 19.5%, but that 19% is what you can consider also for the rest of the year.

Speaker Change: 19% is what you can.

Speaker Change: What you can consider also for the rest of the year, that's what we're planning for.

Antonio Piccon: That's what we are planning for. The second question, instead, is a good occasion to clarify a couple of points. The first one is that the residual value remains strong. There are some geographies, OK? I can mention, for example, the UK.

Antonio Piccon: The second question instead is a good occasion to clarify capital points. The first one, the residual value remains strong. There are some geographies, okay, I can mention, for example, UK. Well, they say they are a little bit weaker, but I can tell you that we have been analyzing 20,000 transactions, 20,000 transactions that have been happening in the last years and we have seen that there are the functional personalization that are keeping their value. Then there are some personalizations, like the painting, some special painting, something that is not, they say, may be not so appreciated by the second client, that are a little bit impacted. But I can tell you that, they say the trend remains strong and maybe it's a good occasion to clarify everyone. Sometimes you keep reading that the people are afraid about the residual value of the hybrid cars. Well, we have been investigated, we have been working, listening to our client, we have been working in the last seven, eight months and we announced this warranty program that starts in July this year for all our hybrid cars, in a way that we gave the peace of mind to all the clients that have the hybrid. So basically the battery is like mini-adders, let's say object in the cars and it's protected by warranty. So thanks for your question.

Speaker Change: The second question is that.

Speaker Change: It's a good accretion to clarify a couple of points. So first one the residual value remains strong there is some there are some <unk>.

Speaker Change: Geographic Okay I can mention in for example, U K well, let's say they are a little bit weaker.

Antonio Piccon: Well, let's say they're a little bit weaker, but I can tell you that we have been analyzing 20,000 transactions. 20,000 transactions that have been happening in the last years, and we have seen that there are functional personalization that are keeping their value. Then there are some personalizations, like the painting, some spatial painting, something that is not, let's say, maybe not so appreciated by the second client, that are a little bit impacted.

Speaker Change: But I can tell you that we have been analyzing 20000 transactions 20000 transaction that have been happening in the last years and we haven't seen that to date.

Speaker Change: The functional personalization with keeping their value and then there are some personalization like the painting some special pain being something that is not let's say may be not so appreciated by the stake on the client.

Antonio Piccon: But I can tell you that, let's say, the trend remains strong. End. Let me see... Objects? in the cars and is protected by a warrant.

Speaker Change: It'll get impacted but I can tell you that the let's say the trend remains strong and.

Speaker Change: Maybe this is a good location to clarify everyone, sometimes you'll keep reading into that people are afraid about the residual value of the hybrid test well we have been investigated we've been working at listening to our clients. We have been working in the last seven to eight months, we announced these warranty program that starts in July.

Speaker Change: This year for all of our hybrid cars in a way that we gave the peace of mind to all the clients that they have the hybrid so basically the battery.

Speaker Change: Like many others.

Speaker Change: Let's me see objects.

Speaker Change: In the cash and is protected by warranty. So thanks for your question.

Operator: So thanks for your questions. Thank you so much. You're welcome.

Speaker Change: Okay.

Henning Cosman: May I squeeze a follow-up question?

Speaker Change: May I squeeze a follow up question.

Antonio Piccon: Sure. To Antonio please, sorry, Antonio, you said some of the positive one-off effects in the bridge in the other bucket at the time of Q2 2023, I think it was when you were talking about EBTA. You said some of these were also present this quarter, could you be a little bit more concrete on that please? Absolutely, sorry, I thought you remember. Anyway, last year in the second quarter, we had a release of current environmental provisions, and also we adjusted our expectations for the ranking of the year to the second place.

Speaker Change: Sure.

Speaker Change: So Antonio please sorry, Antonio you said some of the positive one off effect.

Speaker Change: In the bridge.

Speaker Change: Other bucket at the time of Q2.

Speaker Change: 2023, I think it was when you were talking about EBITDA. You said some of these were also present this quarter. Okay could you be a little bit more concrete on that piece, absolutely sorry, I thought you remembered anyway last year in the second quarter, we are going to resolve current environmental provisions and also we adjusted out.

Speaker Change: Our expectations for the ranking of the year to the second place.

Antonio Piccon: Why this year, we had a similar release of environmental provisions and we maintained for a time being our assumption in terms of being first in Formula One. Thank you so much.

Speaker Change: Why this year, we had a similar release of environmental provisions.

Speaker Change: And we maintained for the time being our assumption in terms of being first in Formula one.

Stephen Reitman: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Steven Readman of Bernstein. Please go ahead. Your line is open. Yes. Thank you. And also, congratulations on your results. I had a question again on personalization. I think you've said in the past that Pure Songway surprised you in the sense that the mind was much stronger than you'd anticipated, and you closed the order book minute to reopen it again, and it stretches out very far. You said that I think in the first quarter the personalization rate was very heavily influenced by collectors who were personally in a very high level, and maybe I had the impression that you were thinking maybe this rate of personalization would not continue once these collectors have been satisfied.

Speaker Change: Yes. Thank.

Operator: Thank you. Thank you. We will now take our next question. Please stand by.

Speaker Change: Thank you.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next question comes from the line of Stephen Reitman of Bernstein. Please go ahead. Your line is open.

Stephen Reitman: Yes. Thank you and also congratulations on the results.

Speaker Change: Another question on personalization I think.

Stephen Reitman: You've said in the past the purest long way surprised you in the sense that demand was much stronger than you'd anticipated and you close the order book now that you are opening again and it stretches out very far.

Speaker Change: You said that I think in the first quarter. The personalization rate was very heavily influenced by <unk>.

Speaker Change: Collapses, who warehouse funding at a very high level and maybe I'd impression that you were thinking maybe this rates plus foundation will not continue once these collections are being satisfied maybe you could comment on the personalization rate is looking like ultra sound like I have to go through and going into the second quarter and the rest of the year.

Stephen Reitman: Maybe you could comment on what the personalization rate is looking like on the personalization rate as we go through a second quarter in the rest of the year. And secondly, again, congratulations. I think it's a very good idea with the warranty program for the hybrid components addressing that concern. What is actually the feedback you've actually been getting from that already? There's obviously not many cars yet at the end of their warranty on the vehicle yet. But have you already seen some of the take-up of the plan? Thank you. Thank you, Steven.

Operator: And secondly, again, congratulations. I think it was a very good idea with the extended warranty program for the hybrid components, addressing that concern. What is the feedback you've actually been getting from that already? It's obviously not many cars yet at the end of their warranty on the vehicle yet, but have you already seen some take-up of the plan? Thank you. While we can say with certainty that the carbon finish is definitely something, together with the painting, it's a personalization that shows a clear trend, a clear appeal for the client, we are also starting to see that the new client in Q2, we start to see the new client is appreciating and want to personalize the cars more and more, but we don't feel confident yet to say that this is a trend like it is for collectors.

Speaker Change: And secondly, again congrats.

Speaker Change: Congratulations on I think is a pretty good idea with the warranty extended warranty program for the hybrid components.

Speaker Change: <unk> not a concern.

Speaker Change: What is actually the feedback you've actually been guessing from months already it's obviously not many calls at the end of the warranty on the vehicle yet but have you already seen some take up off of the plan. Thank you.

Benedetto Vigna: As I said, also the compliments go to all the team here. So let's start with the personalization. You are right. In Q1, we see the collectors pushing out the personalization. What I can tell you, I don't know if it is a sign also for the future or not. We'll see. But we see also that the new clients are particularly keen on personalization. So the good point is that we're collecting a lot of data. We are analyzing them. While we can say with certainty that the carbon finish is definitely something, together with the painting. It's a personalization that shows a clear trend, a clear appeal for all the clients.

Speaker Change: Thank you Steven as I said also that complements go to all the team here.

Speaker Change: So let's set the personalization you are right in Q1, and we see the collectors.

Speaker Change: <unk> got the personalization what I can tell you I don't know if it is it a.

Speaker Change: Assign also for the future or not well see but we see also that the new clients are particularly keen in personalization.

Speaker Change: So.

Speaker Change: The good point is that we're collecting a lot of data we are analyzing them.

Speaker Change: While we can say with that.

Speaker Change: Certainty.

Speaker Change: The counterpoint finish is definitely is definitely something that together with the painting. It. It's a personalization that shows a clear trend they clear appeal for all of the collateral.

Benedetto Vigna: We start to see also that the new client in Q2. We start to see the new client are appreciating and want to do personalize more and more the cars. But we don't feel confident yet to say that this is a trend like it is for collectors. We need to collect more data. That is why I told you before that we expect personalization to be always in the range of 19%. We will update you as soon as we understand that we pick up a signal.

Speaker Change: From the client we start to see also that the new client in Q2, we start to see the new client and appreciating it wont to do personally I want to personalize it more and more of the cash.

Speaker Change: We don't feel confident yet to say that this is a trend like it easier for our collectors, we need to collect more data this is Hawaii.

Operator: We need to collect more data. This is why I told you before that we expect personalization to always be in the range of 19%. We'll see.

Speaker Change: I told you before that we expect personalization to be always in the range of 19, 19% will see we will update you as soon as we understand it we pick up is seeking out the second instead.

Benedetto Vigna: The second, instead, you know, we've been working around seven months to set up this idea of a high voltage battery warranty. And, as you can understand, I mean this is online since 27 days. I can't tell you that the feedback of the client, some feedback of the client were very positive because they understand that in the car, there is something that is a limited life. And we Ferrari realize it, and we apply this warranty. So the first feedback is positive. We'll see what is the take rate in the quarters to come also because the first cars that are approaching the end of the five years.

Speaker Change: We have been working around seven months to set up with this.

Speaker Change: Idea of a high voltage battery warranty.

Speaker Change: And.

Speaker Change: As you can understand I mean, this is a online since two.

Speaker Change: 27 days.

Speaker Change: And.

Speaker Change: I can tell you that the feedback called that the client.

Speaker Change: Some feedback from the client we had a very positive because they understand the depth in the cash there is something that has a limited life and we felt that it realize it and we apply these warranty. So the first feedback a positive we'll see what is the take rate in the quarters to come also because the first cash.

Speaker Change: Approaching the end of the five years, NSF 1919, plus 5% before so.

Benedetto Vigna: 19 plus five is 24. So it will keep you updated, the Steven. The first feedback is very, very positive because the people understand that we understand and we care about the peace of mind of our clients.

Speaker Change: We'll keep you updated as Steven.

Speaker Change: The first feedback are very very positive because if people understand that they can't we understand and we care about the peace of mind of our clients.

Benedetto Vigna: Can I just ask one more question, please, as well? And that is obviously there've been concerns about the general luxury market, but we saw last week very strong results in from Hermès in the iconic leather and sandalry business, which you really define as the brand. What are you seeing? We'll feedback your claim from your dealers in terms of footfall, people visiting the showroom and the series of interest. How would you say that compares to in any period you prefer to compare against? Look, we don't see any sign of weakness; that we see there is not rent in at all in reduction of visit.

Speaker Change: But I'll just ask one more question please as well.

Speaker Change: Is.

Speaker Change: Obviously, there have been concerns about the German luxury market, but we saw last week very strong results in a moment is in the electronics leather and subtle re business, which already defined the brand.

Speaker Change: What are you seeing what feedback you're getting from your dealers in terms of footfall people visiting the showroom and degrees of interest how would you say that compares to any period do you prefer to compare against.

Speaker Change: Look we don't see any sign of weakness.

Speaker Change: We see there is no trend in our at all our introduction of visit I can tell you that after the <unk> announcement in Miami, we had a lot of events all over Europe.

Benedetto Vigna: I can't tell you that after the dodgy cylinder announcement in Miami, we had a lot of events all over Europe. I've been attending personally several of them because we organized them close to the risk tracking Furano, and they were full of client. The client we were inviting were in the range of 100 per night, and we were offering also dinners. Most of the time, they were spending close to the cars. They did not care about what we were offering for dinners. And so there is no weakness sign that is perceived either by us directly or by our dealers.

Speaker Change: I've been attending personally several of them, but because we organize them close to the restocking Serrano and there were a full full of client the client that we were inviting where in the range of 100 per night.

Speaker Change: And.

Speaker Change: We were offering also most of the time that we're spending most of the cuts they did not care about what we were offering for them.

Speaker Change: <unk>.

Speaker Change: So there is no no we can assign that is perceived the either by us directly or by our theaters.

Benedetto Vigna: I can tell you that there are also some clients that they want that pushing us to have two, both, both, dodgy cylinder. So let's say we keep monitoring, obviously, but we don't see any sign of weakness in this respect. Very clear. Thank you very much. Thank you.

Speaker Change: I can tell you that there are also some client that they want that pushing us to have to move both.

Operator: We will update you as soon as we understand and we pick up a signal. I can tell you that there are also some clients that want, that are pushing us to have two. Both. Both. Todi ci cilindri.

Speaker Change: So.

Speaker Change: Let's say, we keep on monitoring obviously, but we don't see any sign of weakness in this respect.

Operator: Very clear. Thank you very much. Our next question comes from the line of Martino D'Ambrogi. If you're having a cup, please go ahead; your line is open.

Speaker Change: Very clear thank you very much.

Martino Ambroggi: We will now take our next question. Please stand by. Our next question comes from the line of Martino de Ambrosio. Borgia, please go ahead. Your line is open. Thank you. Good afternoon, everybody. Martino de Ambrosio from Miquita. Again, on MIX.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next question comes from the line of Martino de <unk>.

Speaker Change: Please go ahead your line is open.

Speaker Change: Thank you.

Speaker Change: Afternoon, everybody I'm not familiar I'm Roger from Ecuador.

Speaker Change: Again on mix.

Martino Ambroggi: Ambrosio is estimating that probably one third is not more of the MIX effect in the first out this year, came from the growing personalization. This is my first question. I'm not able to give you confirmation. I think is I probably is not far away from reality, but I'm not able to confirm it of now. We'll follow up on this. Okay.

Speaker Change: <unk> brightness estimating that.

Speaker Change: Probably one third if not more of the mix effect in the first half this year came from their growing personalization.

Martino d'Ambrogi: This is my first. I understand you do not provide future guidance for the weight of personalization, but I was wondering if you suffered any kind of constraint and you were not able to satisfy all the customer's demand in the past because you are increasing the flexibility with the new building. Look, I understand you are trying to understand what the future is. What I can tell you is that... If someone added the right recipe to the world, it would be much richer.

Speaker Change: This is my first question.

Speaker Change: Well I'm not able to give you a confirmation that I think is I, probably if not flat out away from from reality by being not able to.

Speaker Change: Confirm as of now we'll follow up on this.

Benedetto Vigna: And I understand that you do not provide future guidance for the weight of personalization, but I was wondering if you had suffered any kind of constraint and you were not able to satisfy all the customers' demand in the past because you are increasing the flexibility with the new building. So presumably, you are ready, or you expect, I don't know, maybe both, to catch more than 20 percent. Look and understand; you're trying to understand what is the future. What I can tell you is that if someone had the right recipe in the world, it would be much richer.

Speaker Change: Okay.

Speaker Change: I understand you do not provide a future.

Speaker Change: Our guidance for the weight of personalization.

Speaker Change: I was wondering if you had a you suffered.

Speaker Change: Any kind of a constrained.

Speaker Change: You were not able to satisfy all the customers' demand in the past.

Speaker Change: Because you are increasing the flexibility with the newly building so presumably.

Speaker Change: You already or you expect some I don't know maybe both.

Speaker Change: To catch up more than 20%.

Speaker Change: Look I understand your clients understand what is the futures.

Speaker Change: What I can tell you is that the <unk>.

Speaker Change: Someone AD to the right recipe in the war would be much richer.

Benedetto Vigna: Today we are planning based on the data we have. What I can assure you, Martino, is that we have been working with our suppliers, like the. In the meantime, I just checked the number and it is actually not far away from reality, assuming one third of the price mix effect in H1 comes from personalization. Our next question comes from the line of Anthony Dick of Odo BHF. Please go ahead. Your line is open. Yes, hello, and again, congratulations for the amazing results. My first question is about the Dodici Cylindri.

Benedetto Vigna: Today we are planning based on the data we have. What I can assure you, Martino, is that we have been working with our suppliers for the personalizations that are more, let's say, appreciated by our client. And we put them in place to be agile. Okay, because I mean, just yesterday, for example, we were analyzing in detail with the commercial team, and those are the production team, what is the take rate. And the carbon, the carbon is clearly an area that the carbon finish is an area of interest. We are sometimes, you know, in the past, the carbon, the client, the suppliers, sorry, we're not ready as agile like the client wants.

Speaker Change: So they were planning and based on the data we have.

Speaker Change: What I can assure you Martina is that we have been working with our suppliers for the personalization that automotive.

Speaker Change: Let's say appreciated by our clients and we put them in place to be agile, okay because I.

Speaker Change: I mean, just yesterday for example, we were analyzing in detail that we have the commercial team and also the production team what is the take rate and the carillon Carillon is clearly an area that.

Speaker Change: The cargo finishes an area of interest.

Speaker Change: We are sometimes.

Speaker Change: In the past that the cat bond.

Speaker Change: The client the supplier, Saudi we're not a D S.

Speaker Change: And agile.

Speaker Change: Like in there.

Benedetto Vigna: Now we are, you know, improving and strengthening their capability of delivering us what we need, what the client needs. This is what we can tell you that for the future is what I said before. That's what we, we are planning for. In the meantime, I just checked the number and actually are not far away from reality, assuming one third of the price mix effect in each one comes from personalization. Okay, thank you very much.

Speaker Change: Like the client wants now.

Speaker Change: Improving and strengthening their rig capability.

Speaker Change: Delivering asset what we need what the client needs.

Speaker Change: Is that what we can tell you that for the future is what I said before that's what we were planning for.

Speaker Change: In the meantime, I check the number and actually are not far away from reality, assuming one third of the price mix effect in H one come from personalization.

Anthony Dick: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Anthony Dick of Odo B.H.F. Please go ahead. Your line is over. Yes, hello, and again, congratulations; amazing results. My first question is on the Bodici cylinder. Great to hear your comments on the order momentum versus previous generations.

Speaker Change: Okay. Thank you very much.

Speaker Change: Thank you we will now take our next question. Please standby.

Speaker Change: Our next question comes from the line of Anthony <unk> of <unk> BHF. Please go ahead. Your line is open.

Anthony: Yes, Hello, and again congrats for the amazing results.

Anthony: My first question is on the boutique Chief Lindsay great.

Anthony Dick: Great to hear your comments on the auto momentum versus previous generations. I was just wondering if you might share the length of the order book for that car. You haven't said it's sold out, so I assume it's less than two years, but if you can confirm that, that would be very useful.

Anthony: Great to hear your comments on the order momentum versus previous generations.

Anthony Dick: I was just wondering if you might share the length of the audiobook of that car. You haven't said it sold outside to you miss less than two years, but if you can confirm that, that would be very useful. And then, related to this question, during Q1 results, you mentioned audiobook normalization because most of your cars were sold out. So now, with this new car, is the audiobook higher than Q1, broadly the same, or lower.

Speaker Change: Just wondering if you might share the length of the order book of that call. You Havent said, its so downsides humans less than two years that she can confirm that that would be very useful.

Anthony Dick: And then related to this question, in Q1 results, you mentioned order book normalization because most of your cars were sold out. So now, with this new car, is the order book higher than Q1? Broadly the same or lower?

Speaker Change: Then related to this question. During Q1 results you mentioned order book normalization, because most of your costs were sold down.

Anthony Dick: And then, if I have time, I could squeeze in a second question on ASP. I'm also very impressed by the sequential ASP increase and even, despite lower Daytonas and even stripping out the 499P. So to put this in the context of your previous comments, you expected a 10% ASB increase for the full year. Is this still your expectation, or should we expect something higher? Thank you. Okay, the first question is, the order book depends a little bit if it's dodgy gilindri, the coop, or dodgy gilindri, the spider, because we started with the production of dodgy gilindri coop, and it's been more than two years since the cilindri spider.

Speaker Change: So now with this new car is the order book higher than Q1 broadly the same or lower.

Antonio Piccon: And then, if I have time, I could squeeze a second question on ASB. Also very impressed by the sequential ASB increase. Even despite lower data owners and even stripping out the 490. So to put this in the context of your previous comments, you expected a 10% ASB increase for the full year. Is this bill your expectation, or should we expect something higher? Thank you.

Speaker Change: And then if I have time I could squeeze a second question on ASP.

Speaker Change: I'm also very impressed by the sequential ASP increase.

Speaker Change: Even despite lower determinants and even stripping out the $4 90.

Speaker Change: So to put this in the context of your previous comments that you expected a 10% increase for the full year is it still your expectation or should we expect something higher thank you.

Benedetto Vigna: Okay, the first question is the order book depends a little bit if it is Dodici cylinder, the coupe or the Dodici cylinder, the spider because we started already production Dodici cylinder. And this one is more than the say 20 months. Consider also one point that for Dodici cylinder, it's more than two years. Consider that usually we did that you may remember we said that with this launch of the cars, we did an experiment because we wanted we launched it together for the first time in our history. We launched today together the spider in the coupe and we see that the ratio between coupe spiders, the spider is winning more around 60 65% for the order.

Speaker Change: The first question is.

Speaker Change: The order book it depends a little bit if it is not easily integrate the coupe orbital is jelena despite us because we sat around the production that you're doing right.

Speaker Change: Cool.

Speaker Change: And this one is more than let's say 20 months.

Speaker Change: <unk> seen that also one point.

Speaker Change: For those who.

Anthony: Despite that.

Speaker Change: More than two years.

Speaker Change: You can see them.

Benedetto Vigna: We did the, you may remember we said that with this launch of the cars, we did an experiment because we wanted, we launched it together for the first time in our history, we launched the Spyder and the Coupe together, and we see that the ratio between the Coupe and the Spyder is higher, around 60-65% for the order. So this is the first question. The second question is:

Speaker Change: Usually we.

Speaker Change: We did the you may remember, we said that.

Speaker Change: With this launch of the cash we need that and experiment because we wanted we launched together for the first time in our history. We don't do they have to get out of the Spider and the Coupe and we think that the ratio between the two.

Speaker Change: <unk> decided is winning more around 60%, 65% for the ordinary.

Benedetto Vigna: The order that we have in the books already. So this is the first question. The second question is we see, let me say, is for sure that the orders are coming from the model that are not sold out. So the models that are not sold out are these two. So these two will continue to grow the order book, the order book portfolio.

Speaker Change: The order that we have in the books already.

Speaker Change: So this is the first question. The second question is.

Speaker Change: We see.

Speaker Change: Let me say, yes for sure the orders are coming from within mobile that are not sold out.

Benedetto Vigna: So the models that are not sold out are these two. So these two will continue to grow, the order book and order book portfolio. And then you said the ASP, what is it? Yeah, what are the ASPs?

Speaker Change: So the models that are not sold out that these two so these two will continue to grow the order book at all.

Antonio Piccon: And then you said the ASP, what is it? Yeah, whether the ASP, the first one on the order book, I think it's fair to say that it remains flat because basically we have the expected decline of the orders on the previous portfolios. We are delivering the new, we are delivering the cars and at the same time we are growing in terms of the industry. I mean, please consider that depending on the model that we launch, the order book may go up or down if it is a limited volume car of the, that not add too many too many volumes to a portfolio where we keep on delivering at the same, at the same base. To the opposite, if we add a volume car, it is going to be different, different direction.

Speaker Change: Folio and then you said that ASP what is it.

Antonio Piccon: The first one on the order book, I think it's fair to say that it remains flat because basically, we had the expected decline in orders on the previous portfolio since we are delivering the new ones, we are delivering the cars, and at the same time, we are growing in terms of the OTC cylinder. I mean, please consider that depending on the model that we launch, the order book may go up or down.

Speaker Change: The first one on the order book I think it's fair to say that it remained flat because basically you add the <unk>.

Speaker Change: Our expected decline of the orders on the on the previous portfolio since we are delivering the new.

Speaker Change: We are delivering the Kaiser and at the same time, we ought to grow in terms of entering.

Speaker Change: Please consider that depending on the model that we launch your order book May go up or down if it is a limited volume car, obviously not that too many too many volumes to our portfolio, where we keep on delivering at the same at the same pace to the I'll put it if we add that volume card is going to be the trend.

Antonio Piccon: If it is a limited volume car, obviously, it does not add too many volumes to a portfolio where we keep on delivering at the same pace. On the contrary, if we add a volume car, it's going to be a different direction. In terms of the ASP, the last 10% versus H2, I think we keep on confirming what the expectation for the full year is. It is adding an average ASP in the region of 10% over last year.

Antonio Piccon: In terms of the ASP plus 10% versus in H2, I think the we keep on confirming what was the expectation for the four years to be having an average ASP about in the rhythm of 10% over last year. Okay, thank you very much.

Speaker Change: So a direction in terms of ASP, plus 1% versus <unk> two I think we keep on confirming what is it what the expectation for the 40 years deserving.

Speaker Change: And average ESP.

Speaker Change: In the region of 10% over last year.

Speaker Change: Okay.

Speaker Change: Okay. Thank you very much.

Monica Bosio: Thank you. We will now take our next question. Please stand by. Our next question comes from the line of Monica Bosia of Intesa, San Paulo. Please go ahead. Your line is open. Good afternoon, everyone. Most of my questions have been already answered, but I have two left. One is a general curiosity in the previous conference call. All of the better, you say that 74% of the new cars were sold to existing clients. That's fine. I'm curious about the new Ferraristi. Any color on the pattern of the new Ferraristic could be helpful. How is the distribution by country age, powertrain.

Antonio Piccon: Okay, thank you very much. Thank you. We will now take our next question. Please stand by.

Speaker Change: Thank you.

Speaker Change: We will now take our next question please standby.

Speaker Change: Our next question comes from the line of Monika Boschi of Intesa Sanpaolo. Please go ahead. Your line is open.

Operator: Good afternoon, everyone. Most of my questions have already been answered, but I have two left. One is a general curiosity.

Monika Boschi: And good afternoon, everyone. Most of my questions have been already answered.

Speaker Change: Two last.

Speaker Change: One is the general curiosity in.

Monika Boschi: The previous conference call that within that though you'd say that 74% of a new cost lessor. That's like do you see clients. That's fine I'm curious about the new Ferrari theme.

Operator: In the previous conference call, Benedetto, you said that 74% of the new cars were sold to existing clients. That's fine. I'm curious about the new Ferraristi. Any color on the pattern of the new Ferraristi could be helpful. How is the distribution by country, age, and powertrain? You already told us that the personalization appeal is quite high, so any color would be helpful. And the second question is about housekeeping. In the second quarter, there was no impact from financial charges.

Speaker Change: Any color on that part there now.

Speaker Change: One of the new theoretically it could be as to how is the distribution by country age powertrain that you've already told us that the personalization appeal.

Monica Bosio: You already told us that personalization appeal is quite high. So any colors would be helpful.

Speaker Change: He is a quite high so any color would be helpful and the second question first the housekeeping named the second quarter.

Benedetto Vigna: And the second question is for the housekeeping in the second quarter. There were no impacts from the financial charges. I was wondering if Antonio can give us a rough indication by year, and thank you very much. Monica, thank you. So I can tell you this. I think that the share among, you know, new client and repeat this. Let me say does not change so much, especially when you talk quarter over quarters. If we want, I mean, we keep analyzing what is the demographic. I was changing the client profile that are approaching. One thing that we see is that also the new client like to personalize a bit more the cash, but also here Monica depends on the geography.

Speaker Change: And there was no impact from the financial charges I was wondering if Antonio can you give us an.

Operator: I was wondering if Antonio can give us a rough indication by year-end. And repeaters, let me say, does not change so much, especially when you talk quarter over quarters. So also the ratio of a repeater and new client depends a little bit on the model, requirement across no sign, no sign, no sign, no sign in terms of country, no sign in terms of age also, no sign in terms of age, you know, because one thought was the following, maybe we have been analyzing the correlation between the preference of the model, the powertrain and the age. 0, because we thought that maybe the people that are 55, they prefer the ICE instead of hybrid. Not at all true. I mean, there is no correlation.

Antonio: The indication of by year end.

Speaker Change: Very much.

Antonio: Good morning. Thank you. So I can tell you. This I think that the shape of a manga new client and ER and ER.

Speaker Change: And the repeat this let me say does not change so much, especially when you talk quarter over quarter.

Speaker Change: If we want to.

Speaker Change: I mean, we keep analyzing what is the demographic always changing yet.

Speaker Change: The client profile that are approaching one thing that we see is that also the new client delight to personalize a little bit more of the cash but also year Monica it depends on the geography of.

Benedetto Vigna: It depends a bit on the geography. There are some places where the personalization level is, I guess some others were instead it's, it's lower. So I also the ratio of the Peter and new client depends a little bit on the model. May be just as a college, I can tell you that there are some cars that are in either a percentage of women; they go to five, even to seven percent. Some other car that is a bit lower, but there is not a clear sign. No sign, no sign, no sign in terms of counter, no sign in terms of agency, no sign in terms of age, no, because one thing, one thought was the following: maybe we have been analyzing the correlation between the preference of the model, the powertrain and age zero, because we thought that maybe the people that are 55, they prefer.

Monica: It depends a little bit on the geography, there are some places where the personalization level is.

Speaker Change: Yes.

Isa: And that's where instead the Isa.

Speaker Change: Its lowest.

Speaker Change: So and also the ratio of the repeat and new client depends a little bit on the on the model.

Speaker Change: And maybe just as a callers I can tell you that.

Speaker Change: There are some cash.

Speaker Change: The Tyra and I here.

Speaker Change: The percentage of Oh.

Speaker Change: Women.

Speaker Change: Okay. They go to find them, even to 7% semi they'll carry with it a bit lower.

Speaker Change: But there is not a clear sign that okay and in term of our accounts when you disagree with Sean and powertrain.

Speaker Change: Required.

Speaker Change: Well, that's an outside no answer no.

Speaker Change: No no sign no sign in terms of show count in Denmark.

Speaker Change: No no sorry in terms of age because one one think of one full towards the following maybe we have been analyzing the correlation between the preference over the model the powertrain and the age zero.

Speaker Change: Because we thought that maybe the people at that 55, they prefer the the IC instead of hybrids.

Benedetto Vigna: The IC instead of hybrid, not at all true. I mean, there is no correlation, so.

Speaker Change: All through I mean, there is no correlation.

Antonio Piccon: Very clear, thank you. On the second one, Monica, you may assume a number not far away from that of last year. Okay, thank you. Welcome.

Speaker Change: So.

Speaker Change: That's very clear thank you.

Monica: On the <unk> on the line Monica you may assume a number not far away from that of last year.

Speaker Change: Okay.

Speaker Change: It's been.

Speaker Change: A very small impact.

Benedetto Vigna: Welcome. Thank you. There are no further questions. I will now hand over to Benedetto Vigna for closing remarks. And I wish you a good afternoon and also a relaxing summer break for those who are going to have one.

Daniel: Thank you Daniel.

Michael Binetti: Thank you. There are no further questions.

Speaker Change: Okay. Thank you there are no further questions I will now hand over to <unk> for closing remarks.

Michael Binetti: I will now hand over to Benedetto Vigna for closing remarks. Thanks all, thanks for your time today and also for your, for your questions. This is a strong Q2 result and also the continuing disability of our brand all over the world, to allow our confidence for the development of the year and for the year to come. And I wish you a good afternoon and also a relaxing summer break for the ones who are going to have it. Thanks again. Thanks for your attention. Thank you.

Speaker Change: Thanks, all and thanks for your time today and also for the Euro.

Speaker Change: What are your questions. These are strong Q2 results and also the continuing with this variability of our brands all over the world.

Speaker Change: Well our confidence further develop end of the year and that for the year to come.

Speaker Change: And I wish you a good afternoon and those are relaxing summer break for the ones, we're going to have it.

Speaker Change: Thanks again, thanks for your attention Gotcha.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Thank you.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

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