Q4 2024 Ferrari NV Earnings Call
Okay.
Speaker Change: Good day and thank you for standing by welcome to the February 'twenty 'twenty four full he ever sold conference call. At this time, all participants are in a listen only mode.
Speaker Change: 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 one one on your telephone you will then hear an automated message Atlassian you hardly faced till we start your question. Please press star one while again please be advised that today's conference is being recorded.
Speaker Change: I would now like to hand, the conference over to your speaker today Nicoletta Russo head of Investor Relations. Please go ahead.
Nicoletta Russo: Thank you Sandra and welcome to why would one who is joining US today, we plan to cover the group's full year 'twenty 'twenty four operating results and 2025 guidance and the duration of the call is expected to be around 60 minutes up todays call would be hosted by the group CEO, Mr. Benedict Davina and groups CFO Miss.
Speaker Change: I'm, telling you picked up it gone already live onto my theaters are available in the investors section of the fit of our corporate website and at the end of the presentation, we will be available to answer your questions.
Speaker Change: Before we begin let me remind you that any forward looking statements we might make during today's call are subject to the risks.
Speaker Change: Cynthia mentioned in the Safe Harbor statement included on page two of today's presentation and the call will be governed by this language with that said I'd like to turn the call and all that's been at XL.
Speaker Change: Okay.
Speaker Change: Oh.
Speaker Change: Thank you Nicole and good morning, and afternoon, everyone 24 has been another remarkable year for Ferrari.
Speaker Change: Paulo milestone and forget about the memories and to continue to grow all of our brands across each of these three source racing sports and.
Speaker Change: And lifestyle.
Speaker Change: Over the last year, we successfully continue to execute our business plan with significant progress in both development of our infrastructure and our product offering.
Speaker Change: On the infrastructure. The E building related last June is up and running and we also accelerated the construction of the new paint shop for additional personalization.
Speaker Change: On product offering we are fully in line with our business plan.
Speaker Change: We launched the three models in 2024.
Speaker Change: Our superb safety ended to the OTT, Chilean very cool and spices.
Speaker Change: Our new Supercars perfectly embodies our relentless will progress and it showcases the significant technology transfer from our racing experience to our sports clubs in.
Speaker Change: The FAA is keeping with our most powerful engine and we six hybrid power train that equity derives from the 499, Pete that's one in lemon for two consecutive years.
Speaker Change: The <unk> will be produced in a limited series of 799 Exane.
Speaker Change: Already fully allocated to our collectors and.
Speaker Change: And each represents the eight modern launch out of the 15, we promise it to all of you at the 2022 capital market day.
Speaker Change: But the safety is not only the pinnacle of our innovation. It also represents a major advancement in our electrification journey.
Speaker Change: Now we can claim that our battery modules, our electric axles, our investors and electric engine.
Speaker Change: Develop and antitrust in November.
Speaker Change: As we told you a couple of years ago. The internalization of these knowhow represents a big step forward.
Speaker Change: All of this all of this is done in our new in building a seat on that infrastructure that grants us power production flexibility and flexibility is more crucial than ever in today's current context, and these may be even more achievable. Thanks to the strong relations.
Speaker Change: We have our suppliers.
Speaker Change: 2024.
<unk> seen excellent financial results with record full year figures across all metrics.
Speaker Change: Revenues revenues with approximately $6 7 billion with double digit growth versus the previous year.
Speaker Change: Double digit growth in profitability supported by an extraordinary demand for personalization and the favorable product mix with a net profit reaching $1 5 billion euro.
Speaker Change: And then industrial free cash flow industrial free cash flow generation, surpassing the 1 billion Euro III for the first time.
Speaker Change: Everything I've mentioned, so far including the record financial result has been made possible. Thanks to the passion and dedication of all my colleague the loyalty of our clients and steadfast support for all of our partners gravitate towards.
Speaker Change: The strength of our business is also confirmed by the order book on current models, which is evolving as expected and covers the entire 26 with the knowledge sharing and recoup based fibers guiding the order intake.
Speaker Change: They see the values remain sound with different dynamics throughout the region and models.
Speaker Change: Clearly we are closely monitoring the trends and in this respect on one side. We continue we were wise allocation strategy and on the other side, we continue to device even more exclusive variety experiences to further engage our clients.
Speaker Change: These experiences spun from racing days to test drives from regional premiers the exclusive driving demands. This year. We also brought together our three source racing.
Speaker Change: <unk> got a lifestyle in a serious alone forget about events in Miami during the Grand Prix.
Speaker Change: Why all of these because owning it for that is much more than just only because it's about being part of an exclusive community United by a shared passion.
Speaker Change: The loyalty of our clients is 55 once again by few interesting data in 2024th we sold approximately 81% of our new caps, the existing parady clients and 48% to clients, who currently own more than one product.
Speaker Change: The passion is also shared by our wider community and diversified by new seals visitors, which is a new record in 2020 for more than 850000 visitors Tammy imatinib remodel in our museums.
Speaker Change: And now let's move forward.
Speaker Change: With respect for this year for 2025.
Speaker Change: Racing.
Speaker Change: Compete at the top in Formula One and endurance championship, we are reinforcing the team and the clear.
Speaker Change: And you spoke to US we will further enrich our product offering with six six new model launches don't ask me anything about the electric Ferrari module that we announced in a unique innovative ways and this will happen in Q4.
Speaker Change: And throughout the year, we will continue to enhance our client experiences and accelerate the development of our patients.
Speaker Change: And in lifestyle 2025 will be a year of progress we have an array of activities decided to build scale and expand our visibility at.
Speaker Change: All of this all of this is an investment with the ultimate goal being to continue to nurture and elevate our brand.
Speaker Change: Among our priorities, we will continue to focus on our carbon neutrality goal by 2030.
Speaker Change: Fiber progress were made in 2024 with the shutdown of our highly efficient regeneration planned. Several months ahead of our initial projections of last capital market day.
Since September 34, we are no longer a barring methane gas for electricity production and relying increasingly increasingly on renewable sources.
Speaker Change: Thus in 2025, we expect to reduce by approximately a factor three our scope one scope two emissions compared to the 2021 bases.
Speaker Change: As a game was made possible thanks to the commitment and dedication of all of our colleagues all variety of people and to reward their achievement in line with the company's strong performance indicates us I'm pleased to announce the yearly competitive award.
Speaker Change: Approximately 14400, Europe for our employees as well as the confirmation of the global equal salary certification and the newly achieved the Italian certification on gender equality.
Speaker Change: We remain constantly looking forward and beyond and before I leave the stage to Antonio I would like to underline three things about this years, one and two.
Antonio: 2025 will be another step forward in the execution of our business plan, allowing us to look to the future with strongest confidence since we are even better positioned compared with two hour in Asia or is that too. We look ahead with a united focus it and well rounded team related to EMS.
Antonio: Grace's future with enthusiasm and exciting challenge that lie ahead of US 2025, we will also be a great location to come together here in Milan envelope on October nine for the launch all of this variety full electric and two shapes, we view, what we envision for that.
Antonio: Our futures and now I leave Antonio will.
Speaker Change: Our results and the guidance for this year. Thank you.
Speaker Change: Good afternoon, Victor and good morning, or afternoon to everyone joining us today.
Speaker Change: I start on page eight with a quick overview of the highlights of the full year.
Speaker Change: 294 has been a very strong year with all metrics exceeding our expectations and reaching remarkable results.
Andrew: Hi, It's Andrew had been a debtor in congratulating the team on their outstanding performance and exceptional work.
Andrew: Revenues and profitability grew double digits and this with shipments only slightly higher than last year.
Andrew: Perfect mix in personalization continued to strengthen.
Andrew: This was combined with a favorable country mix and resulted in an EBITDA margin of 38, 3%. Despite continued inflationary pressure higher rising expenses and brand investments.
Andrew: Further leverage on the DNA in line with the phase out of southern model enabled us to expand the EBIT margin to 28 break 3%.
Andrew: Let me also highlight the net profit reached $1 5 billion Euro and corresponded to a diluted EPS of <unk> 46, fewer up 22, 6% versus the prior year.
Andrew: Such an improvement in campus near financial charges and a tax rate of 19, 2% supported by the temporary coexistence of two patent box regimes.
Andrew: The industrial free cash flow generation was very strong and above 1 billion euro for the first time.
Andrew: This achievement is even more remarkable if we can see that in 2020 for our capital expenditure peaked at around 990 million Euro.
Andrew: On page nine we analyze our shipments for 2024, which increased by 89 unit.
Andrew: We had the significant changes in our portfolio throughout the year.
Andrew: The shipments of the poorer sandwich aroma Spider and 296, GTS grew compared to the prior year as well as those of the data on SB three.
Andrew: We commenced deliveries of DSO of 90, <unk> and the Dod instituting right in line with our plans.
Andrew: On the other side by models phaseout portofino, an excess of 98.
Andrew: <unk> GTS towards competitive enrollment there.
Andrew: I bet its share reached 51% in line with plans and was mainly driven by the 296 GTS.
Andrew: As customary the geographic break down reflects the different product cycles as well as the company allocation strategy.
Andrew: Opted to Brazil and exclusivity.
Andrew: As a result, EMEA and Americas were up versus the prior year, representing close to 75% of our total shipments.
Andrew: The rest of Africa was almost flat at 17% and mainland China, Hong Kong, and Taiwan reduced their share to 9% in line with our long term ambition for this region.
Andrew: On page 10, you can see the net revenues bridge with shows that $13, 4% growth versus the prior year at constant currency.
Andrew: The increase in car and spare part was driven by the research product and country mix as well as higher personalization.
Andrew: Personalization continue to strengthen and exceeded once again, our expectation, reaching approximately 20% of total revenues from cars and spare parts, mainly supported by the port of Sandwich and debate on SB three.
Andrew: Sponsorship commercial and brand increase thanks to the new sponsorship for our racing activities, among which HP has a new title sponsor of scenario severity.
Andrew: Well as higher contribution from lifestyle activities.
Andrew: Currencies net of hedges in place at a negative net impact in the year.
Andrew: Moving to page 11, the change in adjusted EBIT is explained by the following <unk> mix and price strongly positive. Thanks to the end of its product mix sustained by the delivery of the Daytona and the 13 units or before 2019, and if you got them.
Andrew: The increased contribution from personalization and a positive country mix supported by the Americas.
Andrew: Higher industrial and R&D expenses, largely driven by raising and innovation activities.
Andrew: And then SG&A increased reflecting the continuous initiatives in software and digital infrastructure organizational development as well as brand investments.
Andrew: Other was strongly positive thanks to new sponsorship and lifestyle activities, partially offset by higher costs due to the better linking went before formula one season ranking.
Andrew: Lastly, even in this case, we had a negative net impact from currency.
Andrew: The EBITDA margin was 38, 3%, while EBIT margin reached 28, 3% and benefited from the already mentioned flattish DNA.
Andrew: Turning to page 12, our industrial free cash flow generation for the year was $1 billion in 2000 7 million Europe.
Andrew: Irwin from the strong increase in profitability was partially offset by a negative contribution from networking capital provisions and the others I'll buy it improved versus 2023, primarily driven by an increase in inventory value, mainly due to a richer mix.
Andrew: Mix and higher trade receivables.
Andrew: Higher tax payments and capital expenditures of 989 million Euro or peak within the current business plan in line with the advancements in product development and the accelerated spending on the new paint shop.
Andrew: I'd like to highlight that the amount of more than 1 billion very close to the industrial free cash flow generation was also returned to our shareholders through a combination of dividends and share repurchases throughout the year.
Andrew: Yeah.
Andrew: Finally, the net industrial debt was 190 million euro at the end of December 2024.
Andrew: Let's move to page 13, where we present our targets as well as the drivers for 2025. Please note that this target set the floor, we aim to achieve.
Andrew: On the sports car product and country mix will continue to be positive improving from an already reached 2024 baseline.
Andrew: Why is the contribution of the Daytona is expected to gradually decrease over the year. The mix will be supported by a special series in range models, along with few initial deliveries of the <unk>.
Andrew: Towards its end.
Andrew: Capitalizations are expected to grow in absolute terms.
Those stable around 20% of cars and spare parts revenues.
Andrew: Rising revenues from sponsors and the commercial rights holder.
Andrew: Tactic to grow thanks to the new sponsorship already signed the full contribution of title partner HP and the better ranking achieving in formula one in 2024 compared to 2023.
Andrew: The lifestyle activities will continue to increase the support to the top line accelerating their growth rate, while investing a larger share of resources to speed up the pace of development and the expansion of the retail network.
Andrew: Continuous brand investment higher racing and digital transformation expenses as well as higher cost implied by the ongoing supply chain challenges and allow us to develop our activities, resulting in a gradual progression of our percentage margins.
Andrew: Given the above the first half of 2025 is expected to be stronger than the second half in line with the development of the product mix.
Andrew: After the bottom line, we estimate the effective tax rate to be higher at around 22, 5% as we keep on benefiting from the new patent box regime, while the previous one has come to an end.
Andrew: The industrial free cash flow generation will be sustained by our profitability, partially offset by negative change in working capital with new deposits from clients.
Andrew: Offset by the river, that's all of previous years advances.
Andrew: Tax payments proportionate to the development of our income.
Andrew: And capex of approximately 900 million euro substantially lower than last year.
Andrew: The underlying assumption on the Euro dollar exchange rate is that it will fluctuate around 105 that would be rather neutral compared with <unk> 24, including edges.
Andrew: And please note that what I've just mentioned relies on the assumption that applicable custom duties stay unchanged.
Andrew: To sum up today's very strong set of results Mark another significant step in our growth trajectory.
Andrew: We aim at continuing 2025.
Andrew: Despite the ongoing uncertainty.
Andrew: <unk>.
Andrew: The unique business model.
Andrew: Strong visibility flexibility and confidence in our future.
Andrew: And we look forward to sharing our long term vision and strategy at our capital markets day.
Andrew: Nine.
Andrew: Okay.
Andrew: I'll now turn the call ultimate right.
Andrew: Thanks, Tom.
Andrew: Yeah.
Andrew: At this time.
Andrew: Thanks.
Andrew: Thank you.
Andrew: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced two weeks or your question. Please press star one on one again.
Andrew: We will now take the first question.
Speaker Change: From the line of <unk> from UBS. Please go ahead.
Speaker Change: Hi, good afternoon, thanks for taking my questions.
Speaker Change: I have two the first one regarding your model rollout six new models in 2025.
Speaker Change: I was.
Speaker Change: I'm wondering so you are anticipating your guidance by one year is that purely on the financial side, but also operationally and because if you're at six models you've got two <unk> and you are going to launch 15 by 2026. So it would imply only one in 2006 so.
Speaker Change: So I'll kind of indication on that and linked to that.
Speaker Change: Do you have any concern that maybe you're launching too many.
Speaker Change: In a sense one yet because he is in a confusing maybe kind of customized to suddenly get.
Speaker Change: So many new models in terms of positioning.
Yeah.
Speaker Change: Is it is your focus than in 2026 on reaching new customers again or still to focus on existing customers.
Speaker Change: So that will be the first question and then the second question.
Speaker Change: How can you explain how exactly your mix.
Speaker Change: Through to your P&L and the reason I'm asking is that in 2023, we saw obviously a big jump in your EBITDA margin helped by the very strong mix, but arguably in 2020 for your mix was also equally almost equally as good.
Speaker Change: And by the profitability improvement.
Speaker Change: Significantly smaller.
Speaker Change: So can you give us some clarity on what are really the key drivers of your margin expansion that we should focus on going forward. Thanks.
Speaker Change: Okay. Susie. Thank you I think the first one and then Anthony will go through the mix.
Speaker Change: So number one we own and we are always pushing for new client. Okay and this is through either for the let's say thermal cash IC or for hybrid cost you may notice that in.
Speaker Change: In 2024.
Speaker Change: Firstly, if you want to wear.
Speaker Change: We added 51% of our cattle with hybrid so.
Speaker Change: We are taking care of the collectors, whether it be this but those are the new clients.
Speaker Change: Second the doubt that you added about two meinie models and confusion well, we are talking about different kinds of cash.
Speaker Change: Net out a kind of a special version that limited that archives you may.
Speaker Change: Remember that we are going to kind of cat one more for pilots, okay and one for sports car drivers. So they are clearly positioned according to different kinds of clients we have.
Speaker Change: Considers that.
Speaker Change: Since the beginning we said we said we want we are pushing a strategic and horizontal strategy in terms of our debt.
Speaker Change: Let me say a model we propose we don't want to do a few model with a lot of volumes because we believe this is a little bit against the desirability and.
Speaker Change: Could the knot is not compliant if you want with our strategy to become and to be always to become more and more of a luxury brand.
Speaker Change: So we said 15, you did well the math.
Speaker Change: We reached 14.
Speaker Change: There is something else left for next year next year, we'll let the data what we're planning to do for the end of the decade in October. So we are talking about the new clients existing clients. So this is the picture for the for the mix.
Speaker Change: Hi, Susie.
Speaker Change: When we speak about the mix, we are referring to product mixes include.
Speaker Change: Including the special series and the strictly limited.
Cars and volume, meaning the a call on that for the time being and next the DFA data Super car there.
Speaker Change: The country mix.
Speaker Change: And finally, the contribution of personalization and pricing overall.
Speaker Change: So what we have been going through in the last couple of years has been an increasing.
Speaker Change: Contribution by all of these categories.
Speaker Change: As far as product mix is concerned clearly we reached a new baseline this year with the full deployment of the deliveries of the Daytona throughout the entire year.
Speaker Change: Which in 25 is not as strong as in 2020, sorry, if I was not as strong as in 2024 because of Daytona will come to its end by the end of the third quarter.
Speaker Change: Then the country mix.
Speaker Change: It's also relevant since we flagged a number of times and I haven't gone all of the countries are.
Speaker Change: Adding the same in terms of contribution margin and to this there is in this respect the fact that we're moving.
Speaker Change: But the majority of our deliveries to North America, and Europe as compared to the previous situations, where China was Miranda.
Speaker Change: The third one is pricing.
Speaker Change: Pricing has been particularly visible in 2023.
Speaker Change: In 2024 to a lesser extent since it has been mostly offset by the increasing cost that we have been just stirring and in 2025 would be very very limited and mostly related to some models in some specific countries or some components of our.
Speaker Change: Revenues.
Speaker Change: Related to the cars, but not entirely affecting the market price.
Speaker Change: Finally, personalization optimization has been the real.
Speaker Change: Big New contributor to our P&L it has been going through a progressive.
Speaker Change: Increase in weight.
Speaker Change: <unk>, 18% of before 2022% to 19% 19 five.
Speaker Change: 'twenty three 'twenty four and now 20%.
Speaker Change: So that's the real element of news that has been surprising positively throughout this year.
Speaker Change: And we expect this to continue in 2025 as I mentioned before.
Speaker Change: Does it out.
Speaker Change: Yes, it does I guess.
Speaker Change: All of these factors that you mentioned on the positive side as tailwind.
Speaker Change: Well I mean, there were there in 2024 right.
Speaker Change: In 2023, just the magnitude of that profitability improvement in 2018 versus 24 was very different but I suppose that yes, you are.
Speaker Change: I said that by mentioning the cost inflation, the underlying inflation, which was not offset by pricing product and extend in 'twenty corridor.
Speaker Change: Yes, correct.
Speaker Change: Okay.
Speaker Change: Thank you.
We'll now take the next question.
Speaker Change: From the line of Stephen Reitman from Bernstein. Please go ahead.
Stephen Reitman: Yes. Good afternoon. Thank you.
Speaker Change: On pricing first.
Speaker Change: I took note of your comments that pricing will not have a significant impact in 2025, but it was a focal point for most specific models and one little water focus one is the purest ongoing understand that is actually having some quite significant price increases from the beginning of 2025 could you confirm that.
Speaker Change: And secondly could you talk about also about the 12 cylinder.
Speaker Change: In terms of.
Speaker Change: How youre seeing the customer profile of that vehicle.
Speaker Change: Is it attracting new customers or is it actually going a lot again.
Speaker Change: Sure.
Speaker Change: Collectors and people who have multiple floor, we already thank you very much.
Speaker Change: Thank you Stephen in for this question, one the pricing things because.
Speaker Change: You are right.
Speaker Change: Generally first the theater there isn't it.
Speaker Change: Recent PURA sanguine.
Speaker Change: This was really planted it was already communicated to you. So there is a win that we said that no price increase we said no new price increase but the price increase will put us and waste planet and these there. Okay. So I appreciate it when it comes to the Chilean rate when we are having good traction on.
Speaker Change: Coop and spiders I would say today that the order intake do so yes normally it takes us more or less 50 50 on the two models.
Speaker Change: The there is also a stronger.
Speaker Change: The trend from new client prospecting mono buyers.
Speaker Change: Say that 40, 45% 40, 45%.
Speaker Change: Let me say I'm.
Speaker Change: Sorry, 40, 45 years is the average age of the new client.
Speaker Change: In Armenia, the new client the percentage wise, we are poking around something in the range of 20%.
Speaker Change: Okay.
Speaker Change: So that's very interesting also I want to share with you the age that is pretty interesting because we see it.
Speaker Change: Keep in mind several of them young people as well as new clients.
Speaker Change: Particularly interested on the double digit increase.
Speaker Change: Thank you if I could also ask you just have you heard any updates on the warranty program you've been offering on the battery.
Speaker Change: You told us about last year.
Speaker Change: Particularly in terms of improving guarantee longevity, all the usefulness of the battery in the plug in hybrids and obviously youll do something similar on the BV.
Stephen Reitman: Another interesting question Stephen Yes, we launched these warranty in that.
Stephen Reitman: Basic and in September so in the last four months, we see around the 350.
Stephen Reitman: People that are buying.
Stephen Reitman: Additional insurance for a peace of mind, we have a different kind of a.
Speaker Change: You can see this for everyone that this is a warranty that is touching only the average cash as we're talking about high voltage battery. So we're talking about that as I said, the 350 contract signed in the middle of less than four months and the reason why they like it is because this is providing them a peace of mind because.
Stephen Reitman: There is no problem, let me say in the exploration date.
All of the chemistry of the sale of the batteries.
Got.
Stephen Reitman: It is a it is having a good collection and we will keep monitoring it.
Stephen Reitman: Thank you very much.
Stephen Reitman: Thank you.
Stephen Reitman: Thank you we will now take the next question.
Speaker Change: From the line of Michael Binetti from Evercore ISI. Please go ahead.
Michael Binetti: Hey, guys congrats on a great end to the year.
Michael Binetti: I'll add my congrats there just a quick one would you mind, telling us how many daytona shift in fourth quarter, and then I wanted to kind of ask you about the shape of that a little bit.
Michael Binetti: Hi Antonio.
Michael Binetti: Just a second.
Michael Binetti: Well in the meantime, if I may ask something else I'm gonna retrieve information.
Michael Binetti: Okay.
Michael Binetti: We assume the Daytona.
Michael Binetti: So sorry.
Michael Binetti: The number of Daytona is $40 46.
Michael Binetti: Good morning.
Michael Binetti: Phase one.
Michael Binetti: Yes, thank you very much.
Michael Binetti: Thank you Mike.
Michael Binetti: Mind yet.
No.
Michael Binetti: So at 46, I think if we exclude the Daytona is probably the rest of the fleet.
Michael Binetti: ASP or the car revenues per unit were probably up low double digits, maybe 10% is that.
Speaker Change: Was interested in your comment Antonio that the first half will be stronger than the second half I think that's a little bit counterintuitive, how we're thinking about it it seems like the asps on the rest of the fleet. Besides Daytona is were up pretty strongly is that something we should continue we should expect to continue in the first half and that's what's driving your comment that first half will be.
Speaker Change: And I guess separately is there any way you could contextualize, how many F. Eighteens youll ship in the fourth quarter year I know, it's the first quarter and it'll be ramping up but it seems like when you say the first half stronger second half it will be very few.
Speaker Change: In the fourth quarter or is that is that the right way to think about it.
Speaker Change: Listen I would model. It this way you should assume that the Daytona slightly lower every single quarter from Q1 to two three.
Speaker Change: We're gonna be downs needling for in Q4.
Speaker Change: And then the swap between.
Speaker Change: The <unk> 90, <unk> coupon speiser with VA 12, a competitor on a.
Speaker Change: Is going to grow in the second he is going to be positive.
Speaker Change: That accretion from Q3 onwards.
But not offsetting the negative from losing the Daytona and the FAA is kicking in in the last quarter, but yes.
Speaker Change: <unk> units that explain widely.
Speaker Change: The strength of out of the first half compared to the second.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: And then if I could just follow up on <unk>.
Speaker Change: <unk>.
Speaker Change: As you see concerns about residual values of hybrid.
Speaker Change: Around the world across brands dropping a little bit as you guys are on the eve of launching your first EV does that does that change your view of what the Ferrari.
Speaker Change: Full electric customer will value the most.
Speaker Change: As youre seeing different differences in how consumers more broadly think about those cars going forward.
Speaker Change: Thank you for the question, Mike I think of that.
Speaker Change: I'd like to say it this way there are electric power and electrical.
Speaker Change: I think.
Speaker Change: That we since the beginning let's say when we announced our strategy in June.
Speaker Change: 2022.
Speaker Change: Had a clear reminder, that when you do something when you're using new technology to make it a unique way and Thats. What we are we are.
Speaker Change: Inc. And we are looking at all the dimension as we said at that time.
Speaker Change: I don't want to comment on the reason why.
Speaker Change: Electric out or may be accepted or not but what I can tell you that that's our.
Speaker Change: To recap as we said.
Speaker Change: Will be unique in the sense that we are looking at the different dimension the style the.
Speaker Change: Performance and the driving players and we are looking at all the dimensions that are below that are sustaining the driving trails.
Speaker Change: So.
Speaker Change: If you want to know more retailer you have to commit to it the total lean in to see the electric.
Speaker Change: In October.
Speaker Change: Alright, I'll be there congrats on a great fourth quarter guys.
Speaker Change: Thank you.
Speaker Change: Thank you we will now take the next question.
Speaker Change: From the line of Monika nausea from Intesa Sanpaolo. Please go ahead.
Monika Nausea: Good afternoon, everyone I Hope you can hear me.
Monika Nausea: I have three questions.
Monika Nausea: One is for Brent is that it's on the order book in China.
Monika Nausea: That that occasion of the third quarter, you say that the order book in China was at around five quarters.
Monika Nausea: I'm just wondering how is the situation now and a few are more willing to change a little bit the strategy also on the back of that.
Monika Nausea: Todd it's environmental.
Monika Nausea: In this context I'm also wondering if we can expect some acceleration in deliveries set to what's in there because in the very first part of the year.
Monika Nausea: Then the second question is on that if it was value so that's something to.
Monika Nausea: But that has to do also with them.
Monika Nausea:
Monika Nausea: And then yes warranty on the batteries can you give us just an update on there it seems like that trend on the hybrid model.
Monika Nausea: And they vary.
<unk> is on the island for the current Ti if you can share with us some indication Antonio Thank you very much.
Thank you Monica So one order book in China, you remember when we said the five quarters and we stage today five quarters.
Monika Nausea: And we do not intend to do any acceleration of sales.
Monika Nausea: You asked or whatever because of our youth you sort of walk. So we go ahead with our plans without no acceleration.
Monika Nausea: To residual values the values there is.
Monika Nausea: The trend or if you are honest it is different the different from the different regions and different models.
Monika Nausea: What we are doing is that weather.
Monika Nausea: There are some countries like UK for example, where we are limiting the shipment of the cash and where do we see that the warranty that Steven was asking you about the is being is being used.
Speaker Change: So this is the first new question Randy on the R&D money Guy is going to be around 8% of revenues.
Speaker Change: Pretty much in line with 2024, so another big change there.
Speaker Change: Oh, Hey, Thank you very much if I may just a follow up is just a housekeeping question.
Speaker Change: The first would be stronger than the second outside the price mix change between the first and the second part of the day, Yeah, I can't imagine that volume if we can keep low double digit.
Speaker Change: Can I imagine they're different.
Speaker Change: A different trend in volumes between the first and the second part of the year should be more or lesser.
Speaker Change: As previously.
Speaker Change: Pretty much.
Speaker Change: Thank you Monica pretty much equally distributed in terms of the volume.
Speaker Change: And in terms of the main drivers for each one being strongly too.
Speaker Change: Just mentioned so I don't think there is any.
Speaker Change: <unk> has significant some flags.
Speaker Change: Okay. Thank you very much thank you.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: We will now take the next question.
Speaker Change: From the line of Anthony <unk> from <unk> BHF. Please go ahead.
Speaker Change: Yes. Good afternoon. Thanks for taking the question a couple on my side. The first is on the DNA.
Speaker Change: Your guidance seems to suggest that DNA will be lower in 2020 phones versus 2024, So could you maybe confirm this or not.
Speaker Change: Explain kind of the reasons behind I think you mentioned from model phase out is having an impact on DNA. So just wondering if that was also expected this year.
Speaker Change: And then my second question is on the S E T.
So you mentioned in the press.
Speaker Change: <unk> been fully allocated.
Speaker Change: Those have been various reports.
Speaker Change: Saying that theres been some cancellations from clients on the costs and maybe cooking.
Speaker Change: <unk> addressed that question confirm whether or not there have been some cancellations and just you know.
Speaker Change: Whether you've just been able to replace these cancellations.
Speaker Change: And maybe where the order book stands for the society.
Speaker Change: Thank you very much.
Speaker Change: Thank you Anthony I think it's one of the DNA Antonio will guide you.
Speaker Change: Thanks, So much for this question and then another interesting one because.
Speaker Change: Is there something with an internet you married to whatever they want.
Speaker Change: We rely on the contract that our clients are signing and also.
Speaker Change: If you won't allow me to say that there are more.
Speaker Change: People then.
Speaker Change: Let's say a 199 cash debt.
We are aiming to do.
Speaker Change: So.
Speaker Change: Unfortunately, we cannot assure you the contract, but I think <unk> seen also after Reblogged was popped up I think was when was it mid January.
Speaker Change: I remember it wasn't before new even you're gonna have said there has been a correction in the Bronx itself has been correcting.
Speaker Change:
Speaker Change: The news you know what.
Speaker Change: What I can tell you, we typically disclose let's say something that we cannot I would like to tell you that the order intake on the Super cash has been faster than those that can take on the <unk>.
Speaker Change: Two previous Iconix so.
Speaker Change: I would not.
Speaker Change: Is not relevant news whats your read on Internet.
Speaker Change: The second one.
Speaker Change: The DNA I mentioned that back in 2020 for the overall level of the DNA was substantially flat.
Speaker Change: Quite a few millions when we look at 2025.
Speaker Change: This is driven by the modality phase in phase out we started having DNA from the type of production of the new models. So what is implicit in our guidance. Following the fact that some of the markets. We currently are but we're gonna be phased out and nuance will kick in.
Speaker Change: There is a little else to comment very honest in this.
Speaker Change: In addition, we have the impact of the new building that is has started its production and at the end of 2024.
Speaker Change: And this is it.
Speaker Change: Okay. Thank you. So could you maybe just clarify what are your expectations for DNA in 2024.
Speaker Change: The difference between the two.
Speaker Change: 600, then when 50 750.
Speaker Change: Okay. Thank you very much.
Speaker Change: Thank you.
Speaker Change: We will now take the next question.
Henning Cosman: From the line of Henning Cosman from Barclays. Please go ahead.
Henning Cosman: Hi, good afternoon, everyone and thanks for taking the question.
Henning Cosman: First one is really on.
Henning Cosman: Pricing power ultimately.
Henning Cosman: We have this very stubborn residual value of the bank.
Henning Cosman: So I was just thinking could you may be reassuring to know that.
Henning Cosman: You are having these six launches.
Henning Cosman: In 2025 could.
Henning Cosman: Could you just reassure us a bit about.
Henning Cosman: You expected the ability to take these mock ups.
Henning Cosman: Versus predecessor noted your Chilean deal was obviously quite successful in terms of your crush the Dennis.
Henning Cosman: And so dissipated the demand and.
Henning Cosman: I think it would be helpful. If you could maybe reassure us that you think you'll still be able to.
Henning Cosman: Execute good pricing power as you are looking at the six launches in 2025.
Henning Cosman: Just looking for a bit of color.
Henning Cosman: The second question would be.
Henning Cosman: Again in the direction of the hybrids.
Henning Cosman: You've obviously indicated.
Henning Cosman: The second the pending the secondaries in direction of hybrids, what you said.
Henning Cosman: That's right and the direction of the plug in hybrid so you've obviously given us in the industrial patented indication of the number of models. So we're going to do in terms of hybrids.
Henning Cosman: So I'm just wondering if there's anything at all that would make you revisit.
Henning Cosman: The plan is to own benefit to your model would be plug in hybrids in the context of perhaps a little bit more future reception on part of your customers more and save almost combustion engines.
Henning Cosman: Thank you very much.
Henning Cosman: Thank you sorry. The line was there it'll be disturbed about I start from the second one and we confirm our the plan that we had in mind that two years ago, We said that.
Henning Cosman: Let's say, we were going out three years ago, starting 'twenty two we said that we were having.
Henning Cosman: Let's say the average of the thermal and electric so we are executing our plan. According to our initial.
Speaker Change: Uh huh.
Speaker Change: Product plan there is no change over there.
Speaker Change: Considering the story of a pricing power I would like to say in this way we have a lot of launches. This year. Because this is what we were planning to do since then zero because in light of our.
Speaker Change: Respecting the client different clients that are client.
Speaker Change: Our aim is to have a pilot costs.
Speaker Change: The decline in the spot cap cost so.
Speaker Change: So we want to offer all of them are new selection of products. So that we stay coherent with our strategy towards different Ferrari for different for Arista and different Ferrari for this moment, so we confirm our product strategy and our marketing strategy.
Speaker Change: Sure.
Speaker Change: Two years and a half ago.
Speaker Change: And we can expect.
Speaker Change: Typical pattern of mock ups versus predecessor, right, we shouldnt think that theres going to be any deviation from the recent trend where you're able to take good mock ups versus its predecessor price increase but I don't want to I don't want to I wouldn't like to comment about the features of the new cash either a technical.
Speaker Change: From a technical point of view or a pricing point of view, let's make them.
Speaker Change: You will see we will start to roll out I mean, you can make up your model, we will start pretty soon.
Speaker Change: And then you will see what we have in the pipe. So you have to be at a little bit a little bit the patients are ending.
Sorry, if I can just squeeze one final one on the topic of pricing.
Speaker Change: So you said youre not accelerating your plants and forwarding frontloading deliveries into the U S. So can I assume that you think is the word tariffs.
Speaker Change: You are quite confident that fully passed them on as you typically do.
Speaker Change: What I can tell you in this direction one as I said, we don't accelerate too in this game and they're out of three players. There is variety that are the leaders there is the client.
Speaker Change: When.
Speaker Change: The details will be disclosed in terms of timing in terms of the amount we will see how to manage appropriately.
Speaker Change: Today. Thank you heard there is a lot of things.
Speaker Change: So in Internet.
Speaker Change: Search and social App whatever about.
Speaker Change: There is not yet.
Speaker Change: <unk>.
Speaker Change: Jack.
Speaker Change: So.
Speaker Change: We like to do two things one we like to do to.
Speaker Change: To keep our promise in two we like to work on fact.
Speaker Change: When the fact, we'll get out we'll see how to manage.
Brenda: Thank you Brenda.
Speaker Change: Thank you Anand.
Brenda: Thank you.
Brenda: We will now take the next question.
Brenda: From the line of Thomas <unk> from Kepler Please.
Speaker Change: Please go ahead.
Speaker Change: Thank you very much three questions. Please.
Speaker Change: Lastly, I'd like to come back to the improved average selling prices in Q4 versus Q3.
Speaker Change: <unk>.
Speaker Change: I'd like you to give us a bit more detail beyond the.
Speaker Change: Increased personalization, but <unk> has been the driver could you explain.
Speaker Change: Why are you effectively we saw a clear increase as explained to you.
Higher share of hybrid in Q4.
Speaker Change: Right.
Speaker Change: The second question.
Speaker Change: About what you anticipate for the hybrid.
Speaker Change: We're doing this in 2025, although it's difficult.
Speaker Change: It's difficult to answer.
Speaker Change: Totals too much about six new rules, but you think it will.
<unk> or do you think we're going to see a continuation of a hybrid job.
Speaker Change: And then.
Speaker Change: Sorry, sorry, sorry.
Speaker Change: Sorry, the second question you think it will increase.
Speaker Change: I'm asking you if youre going to see a plateau in hybrid share in 2020 for example, it.
Speaker Change: It would increase product.
Speaker Change: Then I'll have robust long term question.
Speaker Change: Youre going to be launching the most expensive spot.
Speaker Change: <unk> four units at the end of it.
Speaker Change: Yes, we can assume therefore, youre going to have bebe sport and for six months.
Speaker Change: Average selling prices.
Speaker Change: Can you tell us just one world the goods.
Speaker Change: <unk> plan to be able to offset.
Speaker Change: The departure of that guidance, which equaled twinsburg pizza.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: To see what will happen in 2029, you will.
Speaker Change: Yes.
Speaker Change: All right.
Speaker Change: That would be great.
Speaker Change: You have to come you will see and we will of course, we can.
Speaker Change: If we tell you everything that we don't have any more here.
Speaker Change: So for sure I mean, we have we have a plan as we will discuss with you in the colleague in the call.
Speaker Change: I mean, there is a plan that is supporting our ambition we shared with you what we were ever going to do in this assignment.
Speaker Change: We did we execute it.
Speaker Change: What we committed to execute.
Speaker Change: In terms of our in terms of yes, yes, sorry, and the second was on the average share for 2025, we expect to be slightly lower compared to 2024.
Speaker Change: Having the good news.
Speaker Change: Liberty exit exactly.
Speaker Change: This is ingrid and in terms of the mix impact in Q4 compared to Q3, I think is mostly related to the development of <unk>.
Speaker Change: And those are some personalization.
Speaker Change: Anywhere you're seeing of the <unk>.
Speaker Change: Or is it.
Speaker Change: And increase the percentage or Caribbean finished parts I mean, the category finish.
Speaker Change: As we said those in other conference call is becoming more and more appealing.
Speaker Change: And as a matter of fact, the you may remember that we.
Speaker Change: We increased also our capability our supply chain capability to provide this kind of personalization.
Speaker Change: And the last element is probably a bit of a country mix, which is also positive in Q4 more than Q3.
Speaker Change: Yeah.
Speaker Change: Thank you very much.
Speaker Change: Thank you Donna.
Speaker Change: Thank you we will now take the next question.
Speaker Change: From the line of George <unk> from Goldman Sachs. Please go ahead.
George: Yes, good afternoon, and thank you for taking my questions.
George: The first question I had was just a bit of a housekeeping question with respect to the number that shows shipped in the fourth quarter I think if we just do the.
George: Basic math based off what you showed for Q1, two and three and then what you showed for the full year it would imply the specials.
George: Somewhere in the region of 7% to 8% of deliveries in Q4 I was wondering if you might be able to confirm that the.
Speaker Change: The second question I had was just on the depreciation and amortization obviously at around 650 million for this year. There was quite a large delta to where the Capex has been in recent years.
George: Over time is it.
George: That and logical to expect DNA to get close to that 900 plus million level of Capex that we have been seeing or does the lifetime assumptions for the DNA.
George: DNA number will always be materially lower than the Capex has been at these elevated levels.
George: And then just finally with respect to the order book, obviously sold out for the next two years, which is.
George: Nominally strong and that would equate to something in the region of around 28000 cars.
George: Do we think about those orders what is the average number of orders per customer can you give any insights into that thank you.
George: So the first one I wouldn't apply is at 6% you said the number of especially in Q4, 6%.
George: The last one.
George: Yes, we have covenants in 2026, and you said the orders.
George: Okay.
George: Just for the client.
George: <unk> exactly.
George: We don't have it is Matt.
George: I think it.
George: Let me put it this way at the distribution of all of it for sure is not Goshen is British Kathryn.
George: This I can tell you.
George: There are no.
George: I can't tell you that our client what I can tell you is that there are clients that want to only one kind of cash.
George: The pilots some clients that want only the.
George: One, Florida spoke at a sports car drivers and other people that updating both depends a little bit.
George: <unk>.
George: This kind of average is a little bit meaningless because it depends on the country and also consider that there are also.
George: The top and VIP client it up taking our cava or in different places.
George: So we don't see at this bottom either because he is not representative the second one the DNA already and it is capex and DNA I think we discussed it already when we add the capital market day in 2002, and I think we said by the end of 2016 with respected to be around one two so it's not one to one.
George: For the next five years. It please wait until the next capital market day, and we'll be more specific.
George: Clearly what we are witnessing within this year is a wave of investment which is made of a significant addition, dielectric or that we were talking before and.
George: The infrastructural investment that it also reshaping.
George: I'll, let him add another plant.
George: Going forward.
George: Subject to the development the definition of the new product plan changes.
George: Changes for your reduction.
George: And equalization.
George: Trend towards the equalization.
George: Okay.
George: Understood. Thank you.
George: Thank you we will now take the next question.
Speaker Change: From the line of Adam Jonas from Morgan Stanley. Please go ahead.
Speaker Change: Alright, thanks, everybody I'm looking forward to the data cleaning as well.
Speaker Change: It's divine.
Speaker Change: You mentioned, 81% of last year's sales were to existing.
Speaker Change: Customers It was 74% the prior year, that's a big job I'm curious what drove that what your long term natural level is and just to clarify within that question.
Speaker Change: I think you said that.
Speaker Change: Sales did you say, 40% four zero percent of sales were to customers that owned one Ferrari are already in the garage or was it 14 I Couldnt tell if it was 40% or 14, and then I have a follow up.
Four zero sorry format that makes more sense now lets me, it's my American Harris.
Speaker Change: No no. It's okay. It's always good to learn no problem yeah. Thanks, Alright.
Speaker Change: And yes on the 81% just curious a little color around that so big jump in I don't know if that was if that could go higher than like your all of your to your order book based on what you see would that remain around 81 or rise or is that a high watermark.
Speaker Change: But I think Adam but there are just consider the case of a Dolby vision in Reno, Nevada Zimbra is a cost that is IC that is easy to integrate and we are 40%. So do you have a 20% of the clients that are new okay.
Speaker Change: Oh.
Speaker Change: And also considering that average age average age is also around 45 years.
Speaker Change: The graph, if you take that knowledge Landry Cooper's bite us.
Speaker Change: Yeah, the Cooper will be precise average ages $45 two years and despite that as $44 40 years. So it's easy to remember three or four.
Speaker Change: So yes.
Speaker Change: Allow me to say.
Speaker Change: If I go to compare these also with the average age of it are the I believe the cash more or less is the same for the new clients.
Speaker Change: For the new client.
Speaker Change: And in terms of another to that point can be interesting if I go to see the new client percentage wise.
Speaker Change: From new client in the same ballpark.
Speaker Change: Right.
Speaker Change: Alright that would suggest.
Speaker Change: Stability there thanks Brendan.
Speaker Change: A follow up on the personalization just another angle you had acknowledged again some of the residual weakness.
Speaker Change: In recent periods was maybe a little bit.
Speaker Change: Overall personalization or different combinations that may not have achieved the same.
Speaker Change: Residual value retention in the secondhand market and I'm wondering even though you've guided clearly on personalization.
Speaker Change: Level remaining around 20%.
Speaker Change: More or less flat year on year.
Speaker Change: Has your team made any changes to the character.
Speaker Change: Or the type of personalization, you mentioned carbon fiber, but in addition to that that you would make available to your clients are somehow.
Speaker Change: Incentivize so that you don't have.
Speaker Change: You know the Rainbow colored paint with the Brown interior and.
Speaker Change: Yeah control, making sure that it's.
Speaker Change: More than.
Speaker Change: Ferrari client Tau.
Speaker Change: Pedigree does that makes sense I don't know if there are things you could do to encourage or discourage the type banks.
Speaker Change: Yes, I think I understand what you mean first of all a few data points to give you more color because I think this is the last question. So I would like to share a little bit more color. We will review so we chartered the personalization that that most compounding our cash for sure we have the Caribbean Caribbean finish okay different kind of.
Speaker Change: Let's say accessories, so two things.
Speaker Change: And then there is also the painting.
Speaker Change: And then there is when it comes to painting there are different levers.
Speaker Change: Now.
Speaker Change: The question is you have a client.
Speaker Change: And they have several in mind that they come here with their idea.
Speaker Change: The personalization and the data.
Speaker Change: Let them guided by our expertise. So for example, some people up fairly well.
Speaker Change: I'm, a tumor and even though I went to New York, We have an idea and then your colleague suggested me not to go saw extreme or to do something so strange. So therefore, some other client understand that they come here.
Speaker Change: And.
Speaker Change: They take what they want we cannot device by the end of the story, we cannot force them. So clearly.
Speaker Change: If there is allow me to say if there are some combination they may not be pleased or like the overlap with baidu.
Speaker Change: By the second potential buyers.
Speaker Change: We have been thinking internally about the just to tell.
Speaker Change: We have been thinking internally maybe to make some predefined in the combination.
Speaker Change: Well and just fresh last week the last two weeks there are some places in the world.
Speaker Change: Okay West.
Speaker Change: They like to have a quote unquote set minimum.
Speaker Change: There are other places where they want telecasts.
Speaker Change: I know you don't like setting a new and they want to be free to select what they want is some people are saying look I understand I'm, a loser residual value, but we're not driving.
Speaker Change: I want to enjoy the way I want.
Speaker Change: So it's a choice you ever maybe on your shirt AJ.
Speaker Change: Not not.
Speaker Change: I appreciate it was at the BV.
Speaker Change: Right.
[laughter].
Speaker Change: So I mean.
Speaker Change: We have to pay attention because we.
Speaker Change: We cannot put a limit we have to defend the value of some of the brand identity with the brand, but no doubt we will not make it is trained to Cara for sure. But these are the people like the combination.
Speaker Change: And we cannot say no because.
Speaker Change: We cannot device alright, if I understand it.
Speaker Change: Sure.
Speaker Change: Hi, guys.
Speaker Change: I'm with you.
Speaker Change: Adam, but the best way UBM, how a client you can leave these experiences interest space.
Speaker Change: Well look if I can.
Speaker Change: If I can get seconds on the topic of leaning because it's so billowy it's below it so delicious I'll get you in a J sure. Thanks very much.
Speaker Change: Jeff.
Speaker Change: No.
Speaker Change: Thank you.
Speaker Change: I'll take the last question.
Speaker Change: From the line of Tom Narayan from RBC. Please go ahead.
Speaker Change: Alright, Thanks for taking the question looking forward to October praying for good weather.
Speaker Change:
Speaker Change: So my questions are first just on the this whole residual value chain with that block, which is I guess fake news.
Speaker Change: One thing that I think can help people.
Speaker Change: Understand this better is I don't know if we practice, but.
Speaker Change: What is the percentage of your owners that might be looking at.
Speaker Change: They're Ferrari as potentially of an asset maybe as an investor.
Speaker Change: Asking because.
Speaker Change: Demand of these customers theoretically would be at most risk if residual values.
Speaker Change: Come down.
Speaker Change: That's the first one then I noticed on the slides on the 2025.
Speaker Change: Guidance, you mentioned supply chain issues and challenges.
Speaker Change: Just curious if there's any details there if thats anything for us to really.
Speaker Change: Be worried about or anything.
Speaker Change: Then lastly on the E building since we were there last last year was a big empty room.
Speaker Change: Just curious if we looked at it today, what would we see that's different.
Speaker Change: What specific things are you utilizing it for now maybe.
Speaker Change: It's different than what we saw before thank you.
Speaker Change: Okay Sandstorm last one if you can hear US you will see that out of this building there as Bhutto sanguine and.
Speaker Change: Yes, I believe kind of getting out okay.
Speaker Change: Better than getting out of the doors of that building. If you come here and do you go to the we say in Italy, first, Florida, Usu say second floor.
Speaker Change: You ever keep them in that that are managing let's say batteries.
Speaker Change: Engine in vascular access.
So this is about the building second congratulations for having slipping out to this point that Antonio was clear what does it mean to supply chain challenge, it's really simple.
Speaker Change: Their <expletive>.
Speaker Change: Some suppliers in the automotive industry, that's because of the lower demand of the big Oems are having some troubles.
Speaker Change: This is a meeting.
Speaker Change: So how do we cope with them number one we asked dispatching our people this to make sure that we have not stopped our.
Speaker Change: Our production <unk>.
Speaker Change: Do we answer.
Speaker Change: Leveraging the second sourcing option that we have in place.
Speaker Change: So that's the meeting it is funny because.
Speaker Change: In the past.
Speaker Change: We felt that the supplier depending.
Speaker Change: <unk>, if you want at the more differentiated business they could be more of a strongest as a matter of fact today U S. Seven of supply in the Western World.
Speaker Change: It's happening because all over to the man of Western World OEM.
Speaker Change: And then you said the first one.
Speaker Change: Tracy.
Speaker Change: How many clients maybe you can comment.
Speaker Change: Where they can make a reference to what you already mentioned a couple of times.
Speaker Change: <unk> been going through a statistical analysis, just look at the receivables side.
Speaker Change: And the fact that the range of cars.
Speaker Change: In one year.
Speaker Change: Okay.
Speaker Change: Patrick.
Speaker Change: No.
Speaker Change: Thank you.
Speaker Change: And with globalization.
Speaker Change: That's all I got.
Speaker Change: Hello.
Speaker Change: Got it.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Earlier this.
Speaker Change: Yes.
Speaker Change: Thanks.
Speaker Change: The corner in the Supercuts those are usually appreciating over that time.
Speaker Change: I think they're very difficult.
Sorry, just to finish on having said that is very difficult to.
Speaker Change: Tell you what is the number of people who look at the car as an asset I would be tempted to consider debt collectors are also have an investor's view, but not necessarily all.
Speaker Change: Most of them are simply passionate about that.
Speaker Change: And so we're going to leave.
Speaker Change: Clients, who decided to buy one car only arrange guy.
Speaker Change: You should consider that.
Speaker Change: Athens simply normally there is a reduction in value for the car.
Speaker Change: So that's part of the equation.
Speaker Change: Got it understood. Thank you so much.
Speaker Change: Thank you. Thank you Tom.
Speaker Change: I would like refer upon the conclusion of this call I would like to thanks. All of you for the time today, but also for the attention you would indicate that to us.
Speaker Change: Thanks for your questions.
Speaker Change: I helped us me and I'm going to clarify better thanks a lot.
Speaker Change: Thanks all.
Speaker Change: The stakeholders, because what we said what we did last year and what we're going to do next year. This year sorry, its only because.
Speaker Change: We have a lot of people really greater elimination fashion. So the 2020 for the SaaS is a strong 2020 for the south and to the continuing desirability of our brands is that that is fueling our confidence for the year ahead and also for the futures. So I think you said that thanks again.
Speaker Change: And I wish all of you and good morning. Good afternoon. Good evening wherever you asked on the globe and meet you in person nine October of years. It will take care of also the way it is.
Speaker Change: It should be better.
Speaker Change: Ken.
Speaker Change: In June.
Speaker Change: Thank you.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
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Speaker Change: Yeah.
Okay.
Speaker Change: Yes.
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