Q1 2025 Ferrari NV Earnings Call
Good day and thank you for sending by. Welcome to the Ferrari 2025 Q1 Result Conference call.
At this time, all participants are in a listen-only mode. After the speakers presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised.
to draw your question, please press star one and one again.
Speaker Change: Please be advised that safe conference is being recorded. I would now like to hand the conference over to your first speaker today. Nicoletta Russo, Head of Investor Relations, please go ahead.
Nicoletta Russo: Thank you Sharon, and welcome to everyone who is joining us. Today we plan to cover the group's first quarter 2025 operating results and the duration of the call is expected to be around 60 minutes.
Speaker Change: Today's call will be hosted by the Group CEO , Mr. Benedetto Vigna and the Group CFO , Mr. Antonio Picca Piccon. All relevant materials are available in the investor's section of the Ferrari 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 risk and uncertainties mentioned in the safe harbor statements included on page 2 of today's presentation.
Speaker Change: and the call will be governed by this language. With that said, I'd like to turn the call over to Benedetto. Thank you.
Benedetto Vigna: Grant Nicoletta, thank you everyone for joining us today. While the macroeconomic environment remains uncertain, we've ongoing due political tensions and market volatility, we accelerate a clear view of our priorities.
Benedetto Vigna: and we are continuing to execute our business plan with discipline, focus and four words on the ground.
Benedetto Vigna: Solidity of our business model, along with the relentless drive of all our partners and employees, and the continuous trust of our clients, enable us to navigate the current context.
Benedetto Vigna: We look ahead with confidence being vigilant of the situation that surrounds us as we have always been in the last years.
Benedetto Vigna: In this period, we are kicked off this year with good progress on several phones.
Benedetto Vigna: Our product offering continues to evolve. Our new paint shop is proceeding according to plans. We won the match anticipated the podiums in the world and during the championship in Qatar and in Italy and we launched our new lifestyle collectibles.
Benedetto Vigna: Most importantly, we have delivered a strong set of financial results.
Benedetto Vigna: So let's start from here. Q125, so double digit grow on all key metrics led by product mix and the continued solid trend in personalizations.
15 numbers do I like.
Benedetto Vigna: One, total revenues reached approximately 1.8 billion euro, with very few incremental deliveries year over years. This confirms, once again, our strategy of quality of revenues over quantity.
Benedetto Vigna: 2. We enjoyed some profitability with MBDA close to 700 million euro, 3. In that Africa's pro-generation
Benedetto Vigna: In Q1, we have also witnessed a continuing strong brand momentum, indeed the order book on current models has evolved as expected and covers the world 2026 with the dodgy chili and recoup and spiders guiding the ordering tape.
Benedetto Vigna: Lee Grisny, on to the very positive reflection that we have witnessed it for our recently unveiled a two-spatial version, the coupe and the spider of the 296 GTB, a 296 GDS.
Benedetto Vigna: These new Ferrari are based on the current Berlinet in our range, the 26GTB and 26GTS. However, they mark the follow-up progress in both the 4GTB.
Benedetto Vigna: with hybrid engine, delivering a total of 880 horsepower, this car offers an unprecedented driving experience.
Benedetto Vigna: But it's not just their sheer power that makes them special. They are also distinguished by meticulous attention to detail, technology, and technological innovation and refined design.
Benedetto Vigna: and this is characteristic of our sport cars, they embody solutions derived from our racing cars. The 490, the 296 GT3, the 296 Challenge and the Formula One.
Benedetto Vigna: These two newly born are the latest expressions of our hybrid offering and they have been enthusiastically greeted by our clients.
Speaker Change: One important client of ours takes the position to introduce, right after the presentation of the last few days, and another one told me, this is truly a brand new car, not just a special edition. It is beautiful, it is very elegant, and highly performing, and I love the new gear change experience.
Speaker Change: The new physical command, moreover, on the steering wheel, are incredibly interactive. Now, it is much more comfortable to drive.
Speaker Change: As you can see, we are progressing in our product development plan, enriching our offering with exciting new models that allow us to tap into different clients needs and the size.
Speaker Change: But the launch of 296 Speciales, Cooper Spiders represents just the first mini-minus to look forward to these years. Among these, as we've told you in February , there will be an unveiling of the match anticipated Ferrari Electrica.
Speaker Change: It will be carried out in a unique innovative way that will fit a unique and innovative Ferrari. [inaudible]
Udacimi
Speaker Change: It means that this is a massive piece of technology, the sign in unique features.
Speaker Change: It will be an exciting journey of discovery. It is the first of its kind yet rich in every aspect that makes it true Ferrari.
Speaker Change: For these reasons, we want it to be fully appreciated in every single detail and there is no better way to do this than by revealing it step by step.
3 will be the unveiling steps.
Speaker Change: The first one, starting in October , it's our capital market day, we will show you the technological heart of the Ferrari Electrical. And then in November , 2026.
Speaker Change: We will give you a glimpse into the look and feel of the interior design concept.
Speaker Change: And a few months later, in spring and next year, the journey will culminate with the world premiere where we will reveal these harmonious, harmonious brand of technology and design.
Speaker Change: S-Planet, the river of the Ferrari electrical will commence just months after that in October 2026.
Moving on from a road to track. [inaudible]
Speaker Change: Let me congratulate the entire team for the historic ones to drink at us at the opening round of the 2025 FIA World Endurance Championship.
Speaker Change: and the following victory is the six hour sovimola, more than half a century after our latest win in Italy.
Speaker Change: We couldn't have started racing here in a better way. I was in England that can guarantee you that sharing those unique emotions with a lot of passion as opposed to Ferrari is an unforgettable experience.
Speaker Change: In Formula One, the team is more focused than ever on fighting for victories and podium places. The beginning is not anything, we all know that. On the other side, we are all fuelled by deeply rooted grip and relentless determination to continue to progress.
Speaker Change: But racing is not the only means we have of chandeling the world's passion for Ferrari. Here I refer to our lifestyle strategy, which has made the significant progress in recent years.
Speaker Change: In early April , June the world, renowned Milan design week, we presented our new collection of exclusive Ferrari collectibles.
Speaker Change: Blending timeless Ferrari design. We've actually seen craftsmanship. These are not mere objects. In fact, each model allows our community of enthusiasts to own and treasure a symbol of the prancing horses history.
Speaker Change: Speaking of community, we have maintained our focus on giving back to our local area with the Enzo Ferrari Memorial of Marathon of Italy on Thursday on March.
Speaker Change: Through the proceeds from registration and partner contributions, the event will leave a tangible legacy on our region enabling the creation of a new multi-spot field in the Maranello Sports Park by early 2026.
Speaker Change: Last but not least, I would like to share another remarkable achievement with you.
Speaker Change: Our e-building, the one that we inaugurated, the Placias, has been awarded the Precision Lead and EED Platino Certificate.
Speaker Change: a globally recognized sustainability rating system. And now, I end over to Antonio to review the QR 2025 result in detail.
Antonio: Dr. Benedetto, and good morning or afternoon to everyone joining us today.
Antonio: Starting on page 5, we show the highlights of the first quarter, which represents another strong start of the year.
Antonio: Please bear in mind that Q125 results were not impacted in any way by the recent introduction of higher tariffs on EU cars imported in the US.
Antonio: Prevenous and Proputability, Greudable Digit, with shipments slightly higher than the previous year, and pros of mix and personalization as the main drivers of growth.
Antonio: Presented margins were particularly strong in the porter, thanks to the solid business performance, lower DNA in line with model life cycle, partially upset by higher racing expenses and brand investment.
Antonio: Net profit reached 412 million euros and corresponded to a diluted EPS of 2.3 euros, up 17.9% versus the prior year.
Antonio: Such an improvement also encompass increased financial charges and the higher tax rate. Now projected at 22% in light of the benefits from new patent box regime only.
Antonio: The industrial ecosystem generation was very strong and about 300 million euros and I will highlight the main drivers later on.
Antonio: on page 6 we did dive into our Q1 delivery which increased by 33 units.
Antonio: This increase was driven by the Ferrari Ramospider, the two-name 6GTS, Yessir 90XX Panely, and the Puro Sangue. In the quarter, the Dodici Chilindri continued a Trump-up phase, and the first deliveries of the Dodici Chilindri Spider commenced.
Antonio: In line with modern life cycles, deliveries of the tuning 6GTB decreased as well as the ones of the Daytona Speedree, in line with plans.
Antonio: Disappointing spider approached the end of its life cycle, while the A12 competition A pays out.
Antonio: At Customary, the geographic breakdown reflects the different product cycles as well as the company's Deliberate allocation strategy.
Antonio: As a result, India and the Americas were up versus the prior year representing three quarter of our total shipments.
Antonio: Rest of Apex was almost flat at 18% and Maelan China on Kong intake 1 reduced their share to 7%.
Antonio: On page 7, the net revenue's breads shows a remarkable double digit growth up 12.2% versus the prior year at Constant Calency.
Antonio: The increasing cars and spare parts were driven by the richer product and country mix, as well as higher personalization.
Antonio: Personalizations accounted for more than 19% of total revenues from cars and spare parts. Just a couple of decimals higher than last year for an exchange rate. Many supported by the rate on SP3 full-carbon and yet of 90x touch-family.
Antonio: Sponsorship, commercial and brand, increased thanks to new sponsorship among which the H.P. title partnership of Scuderia Ferrari, which was signed in May 24, and therefore provides the quarter with an easy come.
Antonio: and lifestyle activities, as well as higher commercial venues linked to the better prior year formal one ranking.
Antonio: currency, net of electricity in place, as a positive net impacting the water.
Antonio: Movistopay Jade, the change in adjusted EBITZ, is explained by the following variants [inaudible]
Antonio: Mixed bright, strongly positive, thanks to the rich product mix, sustained by the deliveries of these of 90 hectares family, the OG Schylindry, and the seven units of the 49P Modificata.
Antonio: The increased contribution of some personalization, and a positive company is supported by the Americas.
Speaker Change: Let me remind you that throughout the year, the enrichment of the product mix will be less reliant the Daitones P3 and rather sustained by special series and range models along with few initial deliveries of the FAT in Q4.
Speaker Change: The remaining variants were due to substantially flat, industrial and energy expenses largely even by higher rating and innovation activities, but lower DNA in line with modern life cycles.
Speaker Change: Hyers, GNAs, Reflecting Rating Expansions and Brand Investment, as well as our continuing organization and development, and finally other was positive, many thanks to new sponsorship, positive set by the comparison with the prior year's release of car environmental provision in the U.S.
Speaker Change: Lastly, we had a positive nadine part from currency. Thank you.
Speaker Change: percent margin strengthening the water with FDA margin at 38.7% and even margin above 32% also benefiting from the lower DNA.
Speaker Change: Turning to page 9, our industrial free cash flow generation for the water was strong at 620 million Europe and reflected the increasing profitability.
Speaker Change: and the positive change in working capital provision another mainly supported by the initial collection of the FAT advances and certain no recurrent cash proceeds related to the signing of the new Concord Agreement, partially obsessed by capital expenditures.
Speaker Change: Nadil Raffredette was 49 million euro at the end of March, reflecting the shared purchase program to make the footage in the quarter.
Speaker Change: As a housekeeping note, please bear in mind, that in the second quarter, we are required to pay our income taxes and the net financial position, we are a flag of division distribution of approximately 530 million euro and the 2025 euro boundary payment for roughly 450 million euro, both following you during this month of May.
Thank you.
Speaker Change: Moving to page 10, we confirmed the 2025 Guider with the 50-digit points reduction rates on EVG and EVG imagines flagged as of March and when we updated our commercial policy for the U.S. market, following the introduction of higher import tariffs on EU cars.
Speaker Change: Clearly we remain vigilant on the global business environment and we are mindful of the many changes occurred in the last few weeks.
Speaker Change: Besides the U.S. studies that we have addressed with the update of our commercial authority, I refer to the sweep change in the foreign exchange race, mainly the U.S. dollar, which we continue to take through our regime policy that provides us with a partial support over the rest of the year.
Speaker Change: The potential effect of the overall macroeconomic uncertainty and financial market volatility that we keep on monitoring thanks to the visibility we enjoy.
Speaker Change: Looking more closely at the development of the year, we continue to project a positive product of mixing and support from racing revenues and lifestyle activities, along with continuous branding investments and higher racing expenses.
Speaker Change: Given the above, the first half of 2025 is expected to be stronger than the second in line with the development of the mix and the seasonality of S.G.N.A., resting expenses as well as the N.A.
Speaker Change: To conclude, today's strong results represent further progress in the execution of our business plan and in our growth path.
Speaker Change: Despite the surge of the uncertainty and volatility, our indistinctive business model provides us with solid confidence and the necessary zero agility for our future.
Nicoletta Russo: Thanks for your attention, and I turn recall over to Nicoletta. Thank you, Antonio. We are now ready to open the Q&A session. Thank you.
Sharon: Thank you. To ask a question, you will need to press 121 on your telephone and wait for your names to be announced. To draw your question, please press 121 and 1 again. We will now go to your first question.
One minute, please. Please.
Speaker Change: And your first question comes from the line of Susy Tibaldi from UBS. Please go ahead.
Speaker Change: Hi, thanks for taking my questions. First one, you mentioned about being vigilant in the situation. Can you talk a bit about the differences in trends you are seeing between new customers to Ferrari, existing customers and your top collectors?
Speaker Change: Given the very mixed macro picture, are you seeing differences? Of course, your customer is much more resilient than the average customer, but I'm sure there is also some nuances than maybe you can share.
Speaker Change: and then, secondly, on the 296 Speciale, when you say it's limited in time, it'd be 30 things, maybe two, three years, and in terms of volumes, obviously you don't provide volumes, but we think similar to the 408 Pistons.
Speaker Change: Thanks for the question. Second one, it will be limited in time, yes, it will be a special version like all special version is limited in time, you got it well, it's similar to the 480th Pista, okay.
So this is question number two, question number one, as I said, and also, Antonio said that...
Speaker Change: We are very vigilant on the situation because, as of end of Q1, we hold the data that we got from all the dealership
Speaker Change: We don't see any impact on our order book and on the cancellation trend. So we are, let's say, the situation is well under control, but we want to be vigilant because we want to see what's happening.
Speaker Change: We don't see any difference in trends between a new client, collectors, and let me say a new client and repeaters.
Speaker Change: We don't see any difference. We have been digging in different specific places in the world to see in search.
Speaker Change: of this difference, but we did not see. I think that…
Speaker Change: We should, when we talk about Ferrari, we should do not talk about clients.
Speaker Change: We should talk about single client, each one has its own specificity so it's always difficult to find a pattern. We look for that because we have a lot of a nice tool now of a data analysis but we don't see any specific pattern. [inaudible]
Thank you.
Thank you.
Speaker Change: Your next question comes from the line of the Henning Cosman from Bargays. Please go ahead.
Yes, thank you so much, good afternoon everybody.
Speaker Change: Could I please ask about a seasonality between Q1 and Q2?
between the H1.
Speaker Change: Just conscious that over the last couple of years, Q1 happened quite a bit weaker than Q1.
Speaker Change: G2 and Wondering if that could be similar again, or if we're expecting more stable, that's probably one, one, Antonio. And the first one for Benedetto on the US. Do you have any elevated energy set all in the US?
Speaker Change: from a potentially pre-shipping head of the tariffs and DMV and impact on the volume cadence.
Speaker Change: and all going forward in the course of the year to make the Q1 was obviously pretty strong in the US.
Speaker Change: Do you expect anything at all there in terms of paving? Have you seen anything at all in terms of all the consolations at all in context of the times? And if I can squeeze a third one very quickly, if you could just confirm how many Daytona you shipped in Q1 and how many you have left for Q2 and Q3. Thank you so much.
Thank you for watching!
Speaker Change: Thank you, Henning. I'll pick you the second one and the first one, Antonio will elaborate. So, we don't see, we have all the data, we deal by dealers, obviously, from all over the world, and we have specific focus on the US.
Speaker Change: We don't see any specific trend, actually, we don't see any impact on the tariff, but despite this, as we said, we remain vigilant because we need to be careful to catch if there is any more signal picking up.
Speaker Change: I can tell you also that last week, I was in Florida, in that specific case, okay, and the market is very strong, it's been always very strong and it continues to be very strong, we've strong demand across all our models.
Speaker Change: So I think that as soon as we have some difference for sure will make you aware but we don't see any impact also because
Speaker Change: I think that at least from what we hear from several clients, new and repeaters.
Speaker Change: that they appreciated our two things of our new commercial policy over there. Number one that we've been clarifying right away what we intend to do and two that we contribute. Thank you very much.
Speaker Change: Okay, we contribute to this price increase, we don't ask them to pay old bill, but we were very clear telling that some mothers will have no price increase, some others.
Speaker Change: up to the remaining up to a maximum 10%. So they appreciate it a lot. The way we behave, the way we put them at the center of what we do, and also the timely communication on the new terms. [inaudible]
Speaker Change: Talk about Q1 in Q2 vacations, and directly please take Q2 lighter than Q1.
Speaker Change: and this is also in line with the fact that during Q1 we delivered less than 80 Daytona so lower than last year but not that far away, while in Q2 and Q3 Daytona will go down and will be zeroing Q4.
Thank you.
Thank you.
We will now go to the next question.
Speaker Change: And your next question, the line of Stephen Reitman from Bernstein. Please go ahead.
Speaker Change: Yes, good afternoon. You made a comment that the order book you think led by the Todicie Cylindry. Could you comment on the personalization trend that you're seeing? A word across the board, whether it's also specifically on Nile Vehicle and also the
Speaker Change: particularly with the additional injury already having a quite elevated price against the A2 super fast that it succeeded.
and secondly, looking at the bridge.
Speaker Change: on the EBIT bridge, and you specifically pointed out on the other line.
18, the 18 million.
reflected the sponsorship, the HP offset by some other factors. [inaudible]
Speaker Change: Does that give us sort of like a reasonable idea of the run rate of the HP sponsorship deal which suggests this in the region of about a hundred million also?
Thank you for watching!
Speaker Change: Thank you, Steve, and I take you the first one in the second, Antonio. So, what do we see the personization of the 12 cylinder, both the Dodi-Chi-Chi-Chi-Chi-Lindry and the Puro's
Speaker Change: He's in line with what we've seen before so we see a strong traction on the three main factors that are driving our personalization. It means some functional components. [inaudible]
Speaker Change: and then on the painting and on the carbon finish. I think these are the three trends we see on this cast as we have seen also in the past. I can tell you that...
Speaker Change: The cars and the client are looking more and more at personalization and we are preparing ourselves to be able to offer them more and more personalized offers.
Speaker Change: So this is for the first question, the second one? Yeah, with respect to the average, the 18 million comes basically from the net all.
Speaker Change: The positive that is related to the sponsor issues of Cularia and on that portion obviously the fact that we have the HP sponsorship and the IBM sponsorship coming in, represent the bulk of it together with the increase in the, in the positive from the commercial revenues related to the F1.
Speaker Change: and as a negative, sorry, and there is another point which is the easy-composed last year when we had the CO2 penalties released less than 10 million.
Speaker Change: On the negative side, in terms of comparison, there is a sort of seasonal effect in comparison with the expenditure of last year on WECC, so on the racing, not related to Formula One.
Daadir Alves, thank you.
Speaker Change: Yes, thank you. Sorry, I'm going forward. I mean, in general, it's difficult to project overall, but I do not expect to be a big contributor. The positive one should be related to sponsorship. Then we had some positive last year that should help in terms of adding Q2 and would fade away during the rest of the course. [inaudible]
Speaker Change: The Stephen in the like us to put a clarify as a reminder we signed H.P. last year in April so clearly after that time it started an easy comp so it's not the right project. Yeah, you cannot do it. Sorry, I didn't get this question. This part of the question.
So...
Thank you.
Speaker Change: Your next question comes from the line of Michael Binetti from Everkall. Please go ahead.
Hey guys, congrats on a great quarter. [inaudible]
Speaker Change: Could you just clarify the exact number of Daytona's that you had on the corner and then you said it was below 80 but then if I just...
Speaker Change: I guess Antonio put back out the first quarter results from the year. It looks like as I look at the rest of the year there's a scenario where EBITDA margin could be anywhere from down 10 or 15 basis points to up 50 basis points.
Speaker Change: I'm just curious, what are the inputs in the scenario that could lead to EBITDA margin being negative in the rest of the year? And then...
Speaker Change: Benedetto, I'm the easy launch. If you think about it, you described it as a mass for peace of technology.
Speaker Change: Ferrari has always been a relationship with a timeless car, and I'm curious if you think about the easy and the focus on technology and how technology ages.
Speaker Change: differently than luxury cars. How do you protect the timelessness element of the Ferrari and you think about what drives your digital values of these cars over time as you move into cars with a bigger technology component. [inaudible]
Speaker Change: So when we inaugurated the e-building one year ago, we said and when we also we presented.
Speaker Change: The FAT, the supercars, we made it clear, we made it clear that all the strategic components of electrified cars, Iberids.
Speaker Change: and in the future electric would be done in-house in a way that we can guarantee what you are telling that is this timeless features of our cars. I think this is important and that's
Speaker Change: Also, we did this investment because we want to have the flexibility. [inaudible]
Speaker Change: and the ability to maintain and to offer our clients the technology that are needed for the future. When it comes to the inverter, the battery, the axle, all these things that are distinguishing features of
Speaker Change: or electric cars. And then consider also that our electric, our Ferrari electric, it's much more than digital in the electric. And you will see the star flows.
Speaker Change: So this is the first part of the second part and then Antonio is about the number of Daytona, the website number of Daytona, they were 77.
Speaker Change: and with respect to the image down during the course of the year, we projected on the basis that the mix will be lower and this is going to end with reduction of the number of Daytona and the development of the mix of the rest of the range. [inaudible]
Speaker Change: and the increasing expenditure, particularly as GNA and NR&D and factory related to the development of our racing activities.
Thank you for watching!
Okay, thanks for all guys appreciate all the details [inaudible]
You're welcome. Thank you.
Speaker Change: Thank you. Your next question comes from the line of John Murphy from Bank of America. Please go ahead.
Speaker Change: This is actually a jump-out puck on the line for John Murphy. Just first of all, I wanted to touch on the terrace. I know you cited about a 50 basis point, even Dodge, even margin risk from that.
Speaker Change: Do we think about that as the maximum potential impact here or do you expect to offset it? Any additional clarity you might be able to provide on that front will be useful.
Thank you for watching!
I don't, maybe I didn't answer this one first.
Speaker Change: Yeah, it's a risk. We see in there might be opportunities to upset it, that's why we described it as a risk. However, it depends on a number of moving parts as of now. So I think the outcome is the one that we have outlined. Thank you.
Speaker Change: And then just my other question, and this is a quick one. If you could just talk about the consumer reception so far for the Didi-Cheese laundry, W useful, and then also, are you finding demand is consistent across the geography as for that product?
Okay.
Speaker Change: Father reception of this car has been very, very good across all the geographies.
Speaker Change: Clear in some geographies, there is more appeal because of the tax impact is lower. For example, the double-digit injury impact, it's a traction in countries like China is lower because the tax rate is higher. But so far, I mean, we see a good traction with...
Speaker Change: In different countries, it goes from Scandinavia to US, to Latin America, to Italy, I mean, it's all for Europe , so it's very good traction.
Great, thank you, that's all I have.
Thank you for watching!
Thank you [inaudible]
Speaker Change: Your next question comes from the line of Monica Bosio from Intessa, St. Paulo. Please go ahead.
Monica Bozzio: Good afternoon, everyone, and thanks for taking my questions here. I think three. The first one is on the initial collection from the F80. Should we expect following impacts across the year and if yes, Antonio, can you help us model the impact because I'm just wondering what the weight.
Monica Bozzio: of the collection on the Working Capital in the First Quarter. [inaudible]
Monica Bozzio: The second question is on the residual values. You announce the pricing actions in USA.
Monica Bozzio: How do you see if any of these could impact on the residual values in USA? Any comments on this would be useful. And very last, maybe it's a stupid question about some personalization. So you are implementing price in actions on the final price on there.
Monica Bozzio: Value of the imported car. And what about personalization? Maybe I missed something. Are we going to...
Modify also the pricing for personalization for those cars.
that would believe it.
Morning, guys.
Monica Bozzio: So this will be Antonio taking care of all the three questions? Yeah, initial collection of the F80, I think it has been important in Q1, we do not expect the same impact over the rest of the quarter there.
Monica Bozzio: also because there are deposits that have been anticipated the previous year that will fade away. So, another positive but not the same size is exactly around 2.4.
Monica Bozzio: So the portion of working capital is related to one that got a big bulk in Q1 and then there will be a lower one in Q4.
with T-Power, that's the...
Monica Bozzio: potential expectations about personalization. Well last year we intervened already on personalization terms of price increase. We haven't taken, when we talk about the overall price increases we refer to the price increases of the car.
Okay, all the road. [inaudible]
Thank you.
Welcome.
Thank you.
Monica Bozzio: Your next question comes from the line of Thomas Besson from Kepler Chevrolet, please go ahead.
Monica Bozzio: Thank you very much, it's the last episode. I'd like to come back to somehow Stephen's question on the non-care revenues.
Speaker Change: He's strictly, I think you were suggesting there were dilutives to profitability and it feels like they might become even goalitives to profitability. Could you comment on that concept for Q1 and for the rest of the year?
Speaker Change: The first question, the second, I understand what you say about the timeline of the deposits Q1, Q4, but you will regenerate half of the guide for free casual.
Speaker Change: And lastly, just a housekeeping question. Could you confirm the tax rate for the year? And will be speaking the direction for CupEx for the year. Thank you, George.
Antonio, yeah.
Speaker Change: The third question, the tax rate, as I said before, approximately 22%, and this is because this year we'll enjoy the benefit only on the new patent box regime. Last year, just to remind you, we had the overlap of the new and the previous one that brought the tax rate down.
Speaker Change: In Russell Free Cash Flow, given the Q1 generation is the guidance conservative, we are never conservative so well in principle there could there might be chances in the direction but as I said there are still several moving parts.
Speaker Change: Nunca va even use the impact of this appeal, it is for Q1 and the rest of the year, in terms of development of this concept, I think.
Speaker Change: All of the agreements that we, the relevant agreements are in place already now so I do not expect this to change in dimensionally significantly over the course of the year obviously the comparison with last year maybe a bit more uneven.
Speaker Change: But the run rate is the one that we expect, similarly for lifestyle. Capac guidance between 900 and 150, that's probably the best guide I'm sure can give you as well now.
Baker, thank you very much.
You're welcome.
Thank you.
Speaker Change: Your next question comes from the line of Tom Narayan from RBC. Please go ahead.
Tom Narayan: Hi, yeah, thanks for taking the question, Tom and Ryan RBC. The first one I have is...
Speaker Change: You know, at the 22 investor day, you guys shared a target of a power train split.
Speaker Change: 40-40-20, with 40% being full electric of models by 2030. I know you guys may update this on October 9th, but...
Speaker Change: Given the first Ferrari electric is only going to start deliveries in October , 2026,
Speaker Change: Is there enough time to get to 40% of models being full electric? It's just...
Speaker Change: three years later. And then the next question, and we've had some time now with Pearson Way Sales.
Speaker Change: Just curious, if we have data now that suggests residual values are holding up, and also any demographic information, you know, who's buying the pure songways and more.
Speaker Change: You know, is it different than the regular Ferrari customer or female versus male, daily users versus collectors, etc? Thank you.
Speaker Change: OK, so thank you Tom, first line of 40, 40, 20. Remember that viewing the capital market day when we provide the split of the PU, the powertrain, we always talk about our offers, not the split of sales.
You remember? Because...
when we talk at that time.
Howard Ruderman, two offers. [inaudible]
Any kind of traction? [inaudible]
Speaker Change: To the client we said, we want to leave the freedom of choice in the end of the client. So that split was the split of the model we were offering.
Speaker Change: In terms of update, if any, I am afraid that you have to wait, let me say in October this year where we will provide you and all the colleagues a full update.
Speaker Change: The second one is about the residual values and the demographics of porosangue, well the demographics of porosangue clients, I think it's...
Speaker Change: We have a new client, yes, we have in the range of 10% of a new client, this was what we planted.
Speaker Change: I'm posterior, I think we could have been pushing more 15-20% this is a lesson learned for us for the future.
Speaker Change: But coming goes in terms of male and female, what we see is that a lot of times is the, you know, you have the name of the repeaters, Bind the cast, and the populace.
Fimey that is driving the cars.
Speaker Change: And then also it's true that with this car usually people do a little bit more kilometers than others.
Speaker Change: In terms of residual values, I think that there is a lot of traction for this cast. We are collecting order also for end of twenty-seven, delivery twenty-eight.
Speaker Change: and there are some areas, for example, where these cars are turned within one week, the pre-owned, and there is an increase.
Speaker Change: on the sticker price. So I think that today there are, this year is important because we have some model like Puro Sangue entering 27-28, some other models that are ending in 2026.
Got it. Thank you.
Thank you
Thank you.
Speaker Change: Your next question comes from the line of Martino de Ambroggi from Equator, please go ahead.
Speaker Change: Thank you, thank you, good evening, good morning everybody. Changing this subject, my first question is on Greater China.
Speaker Change: because the river is are decreasing since 2nd quarter, 23 quarter after quarter so what is the right or the ideal size that you see for this region going ahead?
Speaker Change: and the second is on the warranty program for hybrid customers. How is progressing the choice of customers to get your warranty program?
Speaker Change: And the last one, I clearly understand you will probably not provide any answer, but...
Speaker Change: Am I right in assuming that the increasing prices that you announced in the US could worth roughly €100 million on a consolidated basis. Thank you.
and Nicoletta Russo.
Speaker Change: So I take the second one, one second, because the last one, Antonio will take care of it. I think that, I think the first two. The hybrid, we are very precise, it's close to 550 contract.
Speaker Change: for the average warranty problems, client starts to appreciate it because they see a value and also I believe...
Speaker Change: In the first communication, we were not so clear, now we are improving the clarity of the communication, so we are down the 550 contract about this hybrid warranty.
Speaker Change: China, China, on one side we see the regional is moving, on the other side we always said that the mainland China plus Taiwan will be in the range of 8 to 10%, and let me say today...
The cars we are having.
Speaker Change: Mostly 12 Lodicicirinder, 12 cylinders, arriving at a little bit too much impacted by a tax and this one of the cars we will launch this year is meant also to fit better the portfolio for that region. [inaudible]
Speaker Change: So that's the picture on the China, for the last one.
Speaker Change: We have provided that level of granularity. We said up to 10% for the models that we will be updated, but we reserve the right to intervene and we are actually moving on to the agenda.
Thank you. Thank you.
Thank you.
Okay, thank you.
Thank you.
Speaker Change: Thank you. So I'll know further questions. I will hand the call back to Benedetto Vigna.
Benedetto Vigna: Thank you. Thank you all for the time and for all your questions. The strong Q1, 25 result and the continuing the serability of the Ferrari brand full of our confidence.
Speaker Change: for our earhead and also for the future. I wish you good morning or afternoon and thank you again for your attention. Thank you very much, John .
Speaker Change: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.