Q3 2025 Ferrari NV Earnings Call

November 4, 2025

Operator: Good day, thank you for standing by. Welcome to the Ferrari Q3 2025 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Good day and thank you for spending by. Welcome to the Ferrari. Q3 2025 results conference, call and webcast.

At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session

Operator: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Nicoletta Russo, Head of Investor Relations. Please go ahead.

to ask a question during the session. Please press star 1 and 1 on your telephone,

You will then hear an automated message. Advising your hand is raised to withdraw your question. Please press star 1 and 1 again.

Nicoletta Russo: Thank you, Raja. Welcome to everyone who's joining us. Today we plan to cover the group's Q3 2025 operating results. The duration of the call is expected to be around 45 minutes. Today's call will be hosted by the Group CEO, Mr. Benedetto Vigna, and Group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the investor section of the Ferrari corporate website. At the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on page 2 of today's presentation. The call will be covered by this language. With that said, I'd like to turn the call over to Benedetto.

Please note that today's conference is being recorded, I would now like to the conference over to your speaker, Nico Tussaud head of investor relations. Please go ahead.

Thank you, Raja and welcome to everyone who's joining us today. We would like to call the group first quarter, 2025 of taking a results and the duration of the call is expected to be around 45 minutes to this call will be offered by the group CEO. Mr. V and we'll see you for with 7, materials are available in the inbox. Transaction of the Barrack conference, the website.

Nicoletta Russo: Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on page 2 of today's presentation. The call will be covered by this language. With that said, I'd like to turn the call over to Benedetto.

And at the end of the presentation, we will be available to answer your questions.

Benedetto Vigna: Thank you, everyone, for joining us today. The past few months have been rich of important milestones for our company, among which the launch of the Ferrari Multe, the 849 Testarossa family, the first step of the reveal of the Ferrari Elettrica, and the Capital Markets Day. Let's start from the Capital Markets Day. On 09 October, in Maranello, we gathered together, we shared our ambitions and plans for the future with investors, journalists, and the entire world. In this current uncertain world, we shared an ambitious financial floor for the end of this decade. EUR 9 billion of revenues, 40% EBITDA margin, and 30% EBIT margin. What did we say? What did we say at Capital Markets Day exactly? Two things. We highlighted that Ferrari is a unique company, which combines three dimensions, heritage, technology, and racing.

Before we begin, let me remind you that any phone we're looking statement, we might make during today's call are subject to the risk and uncertainties mentioned in the safe. Powerful statement included on page 2 of today's presentation. And the call will be covered by this language. With that said, I'd like to turn the call over to Benedict. So thank you everyone for joining us today.

the past few months have been Rich of important, milestones for our company,

The language, the loans of the car.

The 849 that are also family. The first step of the reveal of the Ferrari electric and the Capital Market space.

Let's start from the capitol MS.

On October 9th, in Murano. We Gather it together and we shape our Ambitions and plans for the future with investors journalists. And in that world,

Benedetto Vigna: EUR 9 billion of revenues, 40% EBITDA margin, and 30% EBIT margin. What did we say? What did we say at Capital Markets Day exactly? Two things. We highlighted that Ferrari is a unique company, which combines three dimensions, heritage, technology, and racing.It has a dual identity, both inclusive and exclusive, capable to engage with tifosi, Ferraristi, and brand lovers across generations and geographies. We have set ambitions for each soul with an unwavering goal to keep our brand strong for the longer term, well beyond 2030.

In this current and certain world, we share an ambitious Financial flow. For the end of this decade like with your Euro or revenues 40% of the Year margin and 30% every Market.

What did we say? What did we say at the Capital Market? They exactly 2 things.

Benedetto Vigna: It has a dual identity, both inclusive and exclusive, capable to engage with tifosi, Ferraristi, and brand lovers across generations and geographies. We have set ambitions for each soul with an unwavering goal to keep our brand strong for the longer term, well beyond 2030. In racing, we aim to win. We want to continue to be successful in endurance and come back to victory in Formula 1. We owe this to our tifosi, to fuel their passion in the inclusive side of our brand. In sports cars, we continue to focus on managing and crafting the exclusivity of our product through an horizontal product diversification strategy, which ensures scarcity for each single model. We confirm our innovation pace.

We highlighted that Ferrari is a unique company, which combines three dimensions—everything from technology to racing. It has a dual identity, being both inclusive and exclusive, capable of engaging with devotees across generations and geographies.

We accept ambitious, ambitious for each. So with the wavering goal to keep our brand strong for the longer term.

Benedetto Vigna: In racing, we aim to win. We want to continue to be successful in endurance and come back to victory in Formula 1. We owe this to our tifosi, to fuel their passion in the inclusive side of our brand. In sports cars, we continue to focus on managing and crafting the exclusivity of our product through an horizontal product diversification strategy, which ensures scarcity for each single model. We confirm our innovation pace.

Well, beyond 2030.

In racing, we aim to win, we want to continue to be successful.

In endurance and comeback to victory in Formula 1, we owe this to our deposit to fuel their passion in the inclusive side of our brand.

In sports cars. We continue to focus on managing and crafting this facility of our product.

Which ensures scarcity per each single model?

Benedetto Vigna: We will continue to offer our clients an average of 4 new models per year between 2026 and 2030 across the three different powertrains, ICE, hybrid, and electric, to address different clients and different clients' needs. In 2022, we told you that the 2030 breakdown of powertrain offerings would have been 20% ICE, 40% hybrid, and 40% electric. Our plans were based on the environment in 2022 and our expectation about its evolution. Today, in 2025, we have deliberately recalibrated our powertrain offer to be 40% ICE, 40% hybrid, and 20% electric. Why did we decide this? Two are the main reasons. One, market dynamics. We have always believed in electrification as an addition, not as a transition. Overall market adoption of electric technology has been more gradual than anticipated in 2022.

We confirm our Innovation Pace, we will continue to offer our clients, an average of 4, new models per year between 26 and 230.

Across the 3. Different Power Trains. I see Iris and director.

To address different clients and different clients needs.

In 2022, we told you that the 2013 breakdown of farmer train offering would have been 20%. I see 40% drivers and 40% directly.

Our plans were based on the environment in 2022 and our expectation about its evolution.

Benedetto Vigna: Why did we decide this? Two are the main reasons. One, market dynamics. We have always believed in electrification as an addition, not as a transition. Overall market adoption of electric technology has been more gradual than anticipated in 2022. At the same time, demand for thermal and hybrid models has been more sustained. 2, client centricity. We put our clients always at the center of what we do. We are very flexible and agile to adapt our product plans to the evolving environment, developing and offering models that best address our client needs and meet their preferences.

Today. The 2025, we have deliberately recalibrated our power trade offer to be 40%. I see 40% drivers and 20% Electric.

Why did we decide this?

Benedetto Vigna: At the same time, demand for thermal and hybrid models has been more sustained. 2, client centricity. We put our clients always at the center of what we do. We are very flexible and agile to adapt our product plans to the evolving environment, developing and offering models that best address our client needs and meet their preferences. Regardless of the powertrain, we will keep on harnessing each technology in a unique and distinctive way, enhancing the driving emotions and staying true to our belief that we have to be innovative, adapting to the changing times. That is what our founder did since 1947, when he dared to develop our first twelve-cylinder engine, although nobody believed in it. It's our responsibility to keep alive this will to progress.

To add the main reasons, 1 market dynamics. We have always believed in representation. That in addition, not as a transition overall market adoption, for electric technology has been more gas than anticipated in 2022.

At the same time, the man for them, and I believe models, has been more sustained.

Benedetto Vigna: Regardless of the powertrain, we will keep on harnessing each technology in a unique and distinctive way, enhancing the driving emotions and staying true to our belief that we have to be innovative, adapting to the changing times. That is what our founder did since 1947, when he dared to develop our first twelve-cylinder engine, although nobody believed in it. It's our responsibility to keep alive this will to progress. This technology-neutral approach is something we have chosen, we have planned for and invested in, also from infrastructure point of view.

2 crimes and 33. We put our clients always at the center of what we do. We are very flexible in agile to adapt. Our product plans to evolving environment, developing and offering models that best address our client needs and meet their preferences.

Regardless of the powertrain, we will keep on harvesting each technology in a unique and distinctive way. Another thing that driving emotions and staying true to our belief, that we have to be Innovative adapting to The Changing Times.

Benedetto Vigna: This technology-neutral approach is something we have chosen, we have planned for and invested in, also from infrastructure point of view. The e-building, our new facility in Maranello, capable to manufacture the three powertrains, is the perfect example of this flexible approach. Our research and development efforts will not only focus on powertrain performance, but also on vehicle dynamics, experience on board, and the new materials, all of which make our product unique. Moving to clients, we will continue to grow our Ferrari family, which today counts 90,000 active clients, and to foster their sense of belonging and community through an ecosystem of unique experiences from track to road to brand. Lastly, lifestyle. This is the soul that is instrumental to enrich the client experience and to widen our audience beyond our Tifosi and Ferraristi. I personally believe the team did a great job in bringing brand consistency.

That is what our founder did since 1947. We need the order to develop our first 12 cylinder engine, although nobody believes in it. It's our responsibility. It's our responsibility to keep alive. This will to progress

Benedetto Vigna: The e-building, our new facility in Maranello, capable to manufacture the three powertrains, is the perfect example of this flexible approach. Our research and development efforts will not only focus on powertrain performance, but also on vehicle dynamics, experience on board, and the new materials, all of which make our product unique. Moving to clients, we will continue to grow our Ferrari family, which today counts 90,000 active clients, and to foster their sense of belonging and community through an ecosystem of unique experiences from track to road to brand.

This technology neutrality approach is something we have chosen. We have planned for and invested in also from this structure point of view.

The e-building, our new facility Maranello capable to manufacture. The 3 power frames is the perfect examples of this flexible approach.

Our reserves and development efforts will not only focus on power in performance, but also label Dynamics experience on board in the new materials, all of which make our product unique.

Benedetto Vigna: Lastly, lifestyle. This is the soul that is instrumental to enrich the client experience and to widen our audience beyond our Tifosi and Ferraristi. I personally believe the team did a great job in bringing brand consistency. We then translated everything I just said with the help of Antonio, let me underline a couple of elements. One, we continue to grow our business to new heights in an organic and consistent way. We look at the 2030 target as a floor of our ambitions, always acting in the long-term interest of our brand, safeguarding exclusivity above all.

Moving to clients, we will continue to grow our solar panels, which today counts 90,000 active clients and to Foster their sense of belonging in community through an ecosystem of unique experiences from track to road to brand,

Benedetto Vigna: We then translated everything I just said with the help of Antonio, let me underline a couple of elements. One, we continue to grow our business to new heights in an organic and consistent way. We look at the 2030 target as a floor of our ambitions, always acting in the long-term interest of our brand, safeguarding exclusivity above all. The macroeconomic environment remains uncertain and extremely volatile. However, the visibility and solidity of our business model allowed us to commit to an ambitious plan of six years of growth, which we will execute with focus and discipline, as we did for the previous one. We will continue to deliver on our promises. We concluded the Capital Markets Day with our renewed decarbonization commitment.

lastly lifestyle. This is the soul that is instrumental to enrich the client experience and to widen the role of you our audience beyond our deposit. And federalism, I personally believe the team did a great job in bringing brand consistency.

we then translated everything, I just

Said.

with the help of that Antonio, and let me underline and

Benedetto Vigna: The macroeconomic environment remains uncertain and extremely volatile. However, the visibility and solidity of our business model allowed us to commit to an ambitious plan of six years of growth, which we will execute with focus and discipline, as we did for the previous one. We will continue to deliver on our promises. We concluded the Capital Markets Day with our renewed decarbonization commitment. We have already achieved approximately 30% reduction in our Scope 1 and Scope 2 emissions, and approximately 10% reduction per car in Scope 3 emission in 2024 versus 2021.

A couple of enemies 1, we continue to grow our business to new heights in an organic. And consistent way, we look at the 2030 Target as a floor of our Ambitions, always acting in the long-term interests of our brand safeguarding exclusivity about, or

The microeconomic environment remains uncertain and extremely volatile.

However, the visibility in solidity of our business model allowed us to commit to an ambitious plan 6 years ago, which we will execute. We focused on disciplines, and we did for the previous 1; we will continue to deliver on our promises.

Benedetto Vigna: We have already achieved approximately 30% reduction in our Scope 1 and Scope 2 emissions, and approximately 10% reduction per car in Scope 3 emission in 2024 versus 2021. We will capitalize on this achievement with the clear target to reduce our Scope 1 and Scope 2 emission by 10 times in 2030 versus 2021, and to decrease by 25% the absolute Scope 3 emission in 2030 versus the past year, 2024. Moreover, the day before the Capital Markets Day, we unveiled the technology heart of our Ferrari electric car. This represents the first step of the reveal, which will be followed by the look and feel of interior design concept in Q1 2026, and the complete car in Q2 2026. Ferrari, as a leader, takes its innovation responsibility very seriously.

And then we concluded the capital market today with our renewed, the organization commitment.

Benedetto Vigna: We will capitalize on this achievement with the clear target to reduce our Scope 1 and Scope 2 emission by 10 times in 2030 versus 2021, and to decrease by 25% the absolute Scope 3 emission in 2030 versus the past year, 2024. Moreover, the day before the Capital Markets Day, we unveiled the technology heart of our Ferrari electric car. This represents the first step of the reveal, which will be followed by the look and feel of interior design concept in Q1 2026, and the complete car in Q2 2026. Ferrari, as a leader, takes its innovation responsibility very seriously.

We have already achieved approximately 30% of reduction in our stock 1 and scope 2 emissions and approximately 10% reduction per cap is called 3. The initial in 2024 versus 2021.

We the clear Target.

To reduce our scope 1 and scope 2 emissions, by 10 times, in 2030 versus 21, and to decrease by 25%, that was a scope. 3 emission in 2030 versus the past year 2024,

Moreover, the day before the Capital Market day, we unveiled the technology half of our Ferrari electric. This represents the first step of the reveal, which will be forwarded by the look and feel of the Interior Design concept into 126 and the complete cast in YouTube 2026.

As a leaders.

Benedetto Vigna: The Ferrari electric car is a new opportunity to reaffirm our will to progress. As it has happened many times in the past with the introduction of innovative concepts such as with turbo engines, hybrid powertrains, and most recently with the Purosangue, there is great anticipation to experience the driving emotion of the electric car. After the Capital Market Day, I met several clients in USA, in Korea, in China, and in Italy. All of them appreciated the way we present the model. This is what they told me. Electric cars are generally heavy as elephants and not fun to drive. You did well to invest in active electronic system to transform the elephant in a horse and to engage the drivers with paddle shift like in all Ferrari. We are looking forward to driving it.

Ferrari, as a leader takes its Innovation responsibility.

The Ferrari electric is a new opportunity to reaffirm our will to progress.

As it is evident many times in the past with interaction and Innovative Concepts,

such as turbo engines, IB power trains. And most recently with the world of Sunway, there is great anticipation to experience the driving emotion of the electrical.

After the capital market days, I met several clients in the USA, in Korea, in China, and in Italy. They all appreciated the way we presented the model. This is what they told me.

Benedetto Vigna: You did well to invest in active electronic system to transform the elephant in a horse and to engage the drivers with paddle shift like in all Ferrari. We are looking forward to driving it. We can continue to be innovative if we keep the pace of change, having the three powertrains in our portfolio is a clear advantage, especially in front of younger generations. With the first step of the reveal of the Ferrari electric car and unveiling in September of the 849 Testarossa coupe and spiders, we have concluded the six launches we had announced one year ago for the entire 2025.

Benedetto Vigna: We can continue to be innovative if we keep the pace of change, having the three powertrains in our portfolio is a clear advantage, especially in front of younger generations. With the first step of the reveal of the Ferrari electric car and unveiling in September of the 849 Testarossa coupe and spiders, we have concluded the six launches we had announced one year ago for the entire 2025. I met many clients in Europe, in USA, and in China, who are in love with Testarossa. Last week in China, I met a young female client, younger than 40 years old, and she told me the Testarossa is the perfect harmonious blend of design and engineering, elegance and craftsmanship. I'm eager to own one and drive it. In the past few months, almost all range models in production were substantially sold out.

Electric cars are generally heavy as elephants and not fun to drive. You did well to invest in active electronic systems to transform the elephant in a horse and bring it to the divers with pedal shift. Like in all terrain, we are looking for to drive in it.

We can continue.

To be Innovative. If we keep the pace of change and living in the 3, power trains in our portfolio is a clear Advantage, especially especially in front of the generations.

Benedetto Vigna: I met many clients in Europe, in USA, and in China, who are in love with Testarossa. Last week in China, I met a young female client, younger than 40 years old, and she told me the Testarossa is the perfect harmonious blend of design and engineering, elegance and craftsmanship. I'm eager to own one and drive it. In the past few months, almost all range models in production were substantially sold out. The launches of the Testarossa family and the Amalfi and their great traction among clients are initially contributing to the order intake. Indeed, the order book extends well into 2027.

With the first step of the revision of the F and are living in September of days, 49 pesos 2, and spiders, we have concluded the 6 launches we had announced 1 year ago for the entire 25.

I met many clients in Europe in in USA and in China who are in love with the

Last week in China, I met a young female client younger than 40 years old, and she told me it is the perfect blend of design and engineering.

Elegance and craftsmanship. I'm eager to own one and drive it.

In the past few months.

Benedetto Vigna: The launches of the Testarossa family and the Amalfi and their great traction among clients are initially contributing to the order intake. Indeed, the order book extends well into 2027. Over the next few quarters, we will have a significant changeovers of models. Indeed, in January 2025, only 15% of our lineup was in ramp-up phase of production, while we will close the years with 35% of the lineup in ramp-up phase. This is the result of all the activities of development that we did in the past years. Moving to the quarters, Q3 2025 saw continued growth. Just a few key numbers to highlight. One, total revenues reached approximately EUR 1.8 billion at 7.4% growth year-over-year with flat deliveries. Two, strong profitability with EBIT of over EUR 500 million.

Almost all range models in production were substantially sold out.

Benedetto Vigna: Over the next few quarters, we will have a significant changeovers of models. Indeed, in January 2025, only 15% of our lineup was in ramp-up phase of production, while we will close the years with 35% of the lineup in ramp-up phase. This is the result of all the activities of development that we did in the past years. Moving to the quarters, Q3 2025 saw continued growth. Just a few key numbers to highlight. One, total revenues reached approximately EUR 1.8 billion at 7.4% growth year-over-year with flat deliveries. Two, strong profitability with EBIT of over EUR 500 million.

The launches of the esta Center and the market in their great structure. In my clients are initially contributing to the ordering date, indeed, the order book extends well into 2027.

Over the next few quarters. We will have a significant change over or models, indeed in January 25th. Only 15% of our lineup.

Was in Atlanta face of production while we will close the year with 35% of the lineup, events are safe and this is the result of all the activities of development that we did in the past years.

Moving to the quarters he originally filed, so continued to grow. Just a few key numbers to highlight 1.

Benedetto Vigna: Last but not least, industrial free cash flow at EUR 365 million. These are solid business performance. These solid business performance allowed us to revise upward the 2025 guidance during the Capital Markets Day in October. Our revised guidance exceeds the profitability target we had originally set for 2026 in the previous business plan one year in advance. Moreover, the decision to complete the current share repurchase program within this years, once again one year earlier than planned, also reflects such progress and strong confidence that we have in the future. Now, I will leave the stage to Antonio to explain the quarter in more depth.

so that my name is reaching approximately 1.8 billion Euro, a 7.4% growth year-over-year with a flat delivers 2, strong profitability with EIT, for over 500 million euro,

And last, but not the least, industrial application flow at 365 million euro.

These are solid business performance.

Benedetto Vigna: Moreover, the decision to complete the current share repurchase program within this years, once again one year earlier than planned, also reflects such progress and strong confidence that we have in the future. Now, I will leave the stage to Antonio to explain the quarter in more depth.

This this solid business performance allowed us to revise upward the 25 guidelines during the capitol material in October. Our devices guidance exceeds the profitability target. We had originally set for 26 in the previous business plan 1 year in advance.

Moreover.

Decision to complete the current share of the postures.

Program Within These Years. Once again, once again, 1 year earlier than planned, also the plan such as progress and strong confidence.

That we have in the future. And the now I will leave the stage to Antonio to explain the port in more depth.

Antonio Picca Piccon: Good morning or afternoon to everyone joining us today. Starting on page 4, we provide the highlights of the Q3, which once again delivers consistent growth and demonstrates solid progress. Product mix and personalization, along with racing revenues, were the main drivers of revenue and profitability growth, with shipments in line with the previous year. This resulted in a strong industrial free cash flow generation in the period. Let me underline that such results were accomplished notwithstanding the impact of the incremental US import tariff, which became visible in Q3, a greater foreign exchange rate headwind, and lower deliveries of the Daytona SP3, which was phased out in the quarter. On page 5, we deep dive into our shipments. They were driven by the 296 GTS, the Purosangue, the twelve-cylinder family, which continued its ramp-up phase, and the Roma Spider.

Starting on page 4. We provide the highlights of the third quarter which once again, delivers consistent growth and demonstrate solid progress,

Product mix and personalization along with directing revenues where the main drivers of Revenue and profitability growth with shipments in line with the preference here.

Antonio Picca Piccon: Let me underline that such results were accomplished notwithstanding the impact of the incremental US import tariff, which became visible in Q3, a greater foreign exchange rate headwind, and lower deliveries of the Daytona SP3, which was phased out in the quarter. On page 5, we deep dive into our shipments. They were driven by the 296 GTS, the Purosangue, the twelve-cylinder family, which continued its ramp-up phase, and the Roma Spider.

This resulted in a strong industrial pre-flow generation in the period.

Let me underline the results. Where accomplished, notwithstanding the impact of the incrementally U.S. input status, which became visible in Q3.

A greater foreign exchange rate has winds and lower deliveries of the Daytona sp3 which was phased out in the quarter.

On page 5, we did dive into our shipment.

Antonio Picca Piccon: The SF90 XX family increased its contribution. The 296 GTB decreased, approaching the end of its life cycle, and the SF90 Spider phased out. Deliveries of the Daytona SP3 were lower than the prior year and concluded their limited series run. As anticipated by Benedetto, in the quarter we started a significant changeover of models, which will be also visible in the next quarter. The SF90 family and the Roma were already phased out, and the 296 family is approaching the end of its life cycle. Indeed, those models will be progressively replaced starting from next year by the 849 Testarossa family, the Amalfi, and the 296 Special Series respectively. A record number of new models introduced at the same time.

They were driven by the 2996 GTS, the borough language, the do screen, the family, which continued this ramp up phase and they're on a Friday.

Yes, yes, yes of 90 except family increases contributions, the 296 GTB decreased approaching the end of this life cycle and the sf90 spider pays out.

Deliveries of the Daytona sp3 were lower than the prior year and concluded their limited series run.

As anticipated by the NATO. In the quarter, we started the significant change over of models which will be also visible in the next quarter.

Antonio Picca Piccon: Indeed, those models will be progressively replaced starting from next year by the 849 Testarossa family, the Amalfi, and the 296 Special Series respectively. A record number of new models introduced at the same time. On page 6, the net revenues bridge shows a 9.3% growth versus the prior year at constant currency. This translating to a 7.4% growth, including the headwind from currency, mainly related to the US dollar dynamics.

Just a 90 family and the Roma were already paid out, and the 296 family is approaching the end of its life cycle. In this, those models will be progressively, replaced starting from next year by the 8490, the Amalfi and the 296 special series respectively. A record number of new models introduced at the same time,

Antonio Picca Piccon: On page 6, the net revenues bridge shows a 9.3% growth versus the prior year at constant currency. This translating to a 7.4% growth, including the headwind from currency, mainly related to the US dollar dynamics. The increase in cars and spare parts was driven by the richer product mix, as well as higher customizations, despite the lower deliveries of the Daytona SP3, which followed our plan. Personalizations accounted for approximately 20% of total revenues from cars and spare parts, and were particularly relevant for the SF90 XX family and the Purosangue, also supported by the adoption of carbon and special paint. Sponsorship, commercial, and brand also increased, thanks to higher sponsorships and the improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula 1 ranking.

Antonio Picca Piccon: The increase in cars and spare parts was driven by the richer product mix, as well as higher customizations, despite the lower deliveries of the Daytona SP3, which followed our plan. Personalizations accounted for approximately 20% of total revenues from cars and spare parts, and were particularly relevant for the SF90 XX family and the Purosangue, also supported by the adoption of carbon and special paint.

On Page 6. The next revenue is 3 shows a 9.3% growth versus the prior year, constant currency this translates into a 7.4% growth, including the headwind from currency, mainly related to the US dollar Dynamics.

the increase in cars and spare parts was driven by the Richer product, mix as well as higher customizations, despite the lower deliveries of the iconic 33, which followed our plan,

Antonio Picca Piccon: Sponsorship, commercial, and brand also increased, thanks to higher sponsorships and the improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula 1 ranking. Moving to page seven, the change in EBIT is explained by the following variances. Mix and price was positive, thanks to the enriched product mix. Indeed, despite the phase out of the Daytona SP3, the product mix was sustained by the higher end of our product offering, namely the SF90 XX and the twelve-cylinder Pentas.

Personalizations account is for approximately 20% of total, revenues from cars and spare parts, and were particularly relevant for the United XX family. And the Puro sandwich also, supported by the adoption of carbon and special paints.

Sponsorship commercial and brand also, increased thanks to higher sponsorships and the improved performance of the lifestyle activities, as well as higher commercial revenues linked to the best priority Formula 1 banking.

Antonio Picca Piccon: Moving to page seven, the change in EBIT is explained by the following variances. Mix and price was positive, thanks to the enriched product mix. Indeed, despite the phase out of the Daytona SP3, the product mix was sustained by the higher end of our product offering, namely the SF90 XX and the twelve-cylinder Pentas. The mix was also supported by the increased contribution from personalization. Please note that the impact from incremental US import tariffs, as well as from the update of our commercial policy in response, are included in the mix and price volume. This resulted in a margin dilution at constant currency, particularly visible in Q3, as the majority of our shipments in the United States was represented by models whose price were protected under the updated policy.

Moving to page 7, The Changing inhibits is explained by the following variances.

Mix and price was positive. Thanks to the enriched product mix.

Antonio Picca Piccon: The mix was also supported by the increased contribution from personalization. Please note that the impact from incremental US import tariffs, as well as from the update of our commercial policy in response, are included in the mix and price volume. This resulted in a margin dilution at constant currency, particularly visible in Q3, as the majority of our shipments in the United States was represented by models whose price were protected under the updated policy.

Indeed, the spite of the phase outfit that they told us sp3 the product mix was sustained by the higher hands of our product offering namely, yes of 90, FX and the w.

The mix was also supported by the increased contribution of from personalization.

Please note that the impact from incremental us importer is as well as from the update of our commercial policy in response. I included in the mix and write variance.

This resulted in a margin dilution of cost and currency particularly visible in the circular is the majority of our shipments in the United States. Was represented by models. Good price were protected under the updated policy.

Antonio Picca Piccon: Industrial costs and G&A were lower year-over-year, in line with model life cycles, partially offset by higher development costs for racing, as G&A were of higher reflecting racing expenses and brand investment. Other was positive mainly thanks to racing and lifestyle activities. Percentage margins continued to be strong in the quarter despite the dilution from increased import duties, with EBITDA margin at 37.9% and EBIT margin at 28.4%. Turning to page 8. Our industrial free cash flow generation for the quarter was strong at EUR 365 million and reflected the increase in profitability, partially offset by capital expenditures, which were mainly focused on product development and the progress in the new bench of construction and the negative change in working capital provisions and other, mainly due to the reversal of the advances collected in previous quarters.

In Africa and DNA were lower year-over-year in line with model life cycles, partially obsessed by higher development cost for raising.

A were of higher reflecting rating expenses and planning investment.

Other was positive, many times to raising and lifestyle activities.

Antonio Picca Piccon: Turning to page 8. Our industrial free cash flow generation for the quarter was strong at EUR 365 million and reflected the increase in profitability, partially offset by capital expenditures, which were mainly focused on product development and the progress in the new bench of construction and the negative change in working capital provisions and other, mainly due to the reversal of the advances collected in previous quarters.

Walker. Despite his resolution from increasing import duties with FDA margin at 37.9% and a bit margin at 28.4%.

Starting to page 8, our industrial 3 cash flow generation for the quarter was strong at 365 million euro and reflected the increase in profitability. Partially observed by Capital expenditures which were mainly focused on private development and the progress in the new Financial Construction.

And the negative changing working capitals, provisions, and others may be due to the reversal of the advances collected in previous quarters.

Antonio Picca Piccon: Net industrial debt was EUR 116 million at the end of September, also reflecting the share repurchase program executed in the quarter, which is approaching its completion by year-end, as reminded by Benedetto, one year in advance compared to our plan, as announced in June 2022. Moving to page 9. We confirm our 2025 guidance, which was revised upwards during the Capital Markets Day on 9 October, on the back of the solid business performance and reflecting improved sports car revenues, including personalization, a lighter than expected cost base despite a greater headwind from foreign exchange rates and increased US tariffs. With this in mind, for Q4, we project lower deliveries year-over-year, as we already told you in the Q2 call, and this is in connection with the changeover of models that I mentioned earlier on.

Was 116 million euro at the end of September, also reflecting the share purchase program is executed in the quarter, which is approaching its completion by year end as we reminded by benedicto 1 year in advance compared to our plans as announced in June 2022.

Antonio Picca Piccon: We confirm our 2025 guidance, which was revised upwards during the Capital Markets Day on 9 October, on the back of the solid business performance and reflecting improved sports car revenues, including personalization, a lighter than expected cost base despite a greater headwind from foreign exchange rates and increased US tariffs. With this in mind, for Q4, we project lower deliveries year-over-year, as we already told you in the Q2 call, and this is in connection with the changeover of models that I mentioned earlier on.

Moving to page 9, we confirm our 2025 guidance, which was revised upwards during the Capital Market Day on October. The 9th, on the back of the soil business performance and reflecting improved sport card revenues, including personalizations.

I like that I didn't expect it because, despite the greater handling from foreigners and race and increased usage.

Antonio Picca Piccon: A positive product mix, although sequentially higher, in line with the phase out of the Daytona and the first units of the F80, higher G&A and a seasonal step up in racing R&D expenses, as well as higher G&A dictated by the start of productions of new models. Looking at 2026 and beyond, let me remind you that the introduction of the F80 will be gradual. As usual, it will take a couple of quarters to ramp up the production, and the life cycle is expected to be around 3 years. The guidance of the F80 and the model changeover will imply a more back-end loaded 2026 and will shape the product and country mix throughout the year. Such developments are consistent with our plans to deliver in the year to come a smooth and as linear as possible expansion of our profitability in absolute terms.

And with this in mind for Q4 we project lower delivery year over year as we already told you in the second quarter code and this is in connection with the change over of models that I mentioned earlier on.

a positive product mixes, although sequentially der in line with the phase out in the Daytona and the first unit of the, a

Higher DNA in a seasonal. Step Up in racing R&D expenses as well as higher DNA dictated by the status of Productions of the models.

Looking at 2026 and Beyond. Let me remind you that the introduction of the safety will be gradual,

Antonio Picca Piccon: The guidance of the F80 and the model changeover will imply a more back-end loaded 2026 and will shape the product and country mix throughout the year. Such developments are consistent with our plans to deliver in the year to come a smooth and as linear as possible expansion of our profitability in absolute terms.Be assured that we continue to execute on this plan with discipline and focus. Today's strong results provide once again the evidence of our continued commitment. Thanks for your attention. I turn the call over to Nicoletta.

As usual, it will take a couple of quarters to run past the production and the life cycle is expected to be around 3 years.

The Guardians of the fed and the model change over. We imply a more back-end loaded 2026 and we will shape the product and how they mix throughout the year.

Antonio Picca Piccon: Be assured that we continue to execute on this plan with discipline and focus. Today's strong results provide once again the evidence of our continued commitment. Thanks for your attention. I turn the call over to Nicoletta.

Such developments are consistent with our plans to deliver in the year to come as smooth and as linear as possible expansion of our profitability in absolute terms,

The Absurd that we continue to execute on this plan with discipline and focus, and today is a strong result to provide. Once again, the evidence of our continued commitment

Thanks for your attention and I turn the call over to nuclear.

Nicoletta Russo: Thank you, Antonio and Andrea. We are now ready to take the questions. Please go ahead.

The questions.

Operator: Thank you. As a reminder to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by while we compile the Q&A roster. This will take a few moments. Thank you. Once again, please press star one and one on your telephone and wait for your name to be announced. Thank you. We are now going to proceed with our first question. The questions come from the line of Michael Binetti from Evercore ISI. Please ask your question.

Please go ahead.

Operator: This will take a few moments. Thank you. Once again, please press star one and one on your telephone and wait for your name to be announced. Thank you. We are now going to proceed with our first question. The questions come from the line of Michael Binetti from Evercore ISI. Please ask your question.

Thank you as a reminder to ask a question. Please press star 1 and 1 on your telephone and wait, for your name, to be announced to withdraw your question. Please press star 1 and 1. Again once again, please press star 1 and 1 in your telephone and wait for your name to be announced to withdraw your question. Please press star 1 and 1. Again, please stand by while we compare the Q&A roster, this will take a few moments. Thank you.

Once again, please press star 1 and 1 on your telephone and wait for your need to be in now. Thank you. We are now going to proceed with our first question.

Michael Binetti: Hey, guys. Thanks for taking a question here. Just a couple for me. Antonio, I think you're saying that the mix impact in the second half will be a little bit better than what you anticipated. I saw that, you know, mix added about EUR 25 million in the quarter. I think last call you said mix would be neutral for the second half. Can you just help us think, you know, what's driving a little bit of that upside and maybe how much we can think about in Q4 from mix relative to Q3? Then I guess just as we think about the personalization comments you made about 20% now, you got into it, personalization being closer to 19% longer term. That's right.

And the questions come from the line of Michael binetti from evoko. Isi, please ask your question.

Michael Binetti: Then I guess just as we think about the personalization comments you made about 20% now, you got into it, personalization being closer to 19% longer term. That's right. It's a little counterintuitive to us with the new Tailor Made studios and the paint shop coming online next year. Can you just walk us through, you know, what drives the moderation there?

Hey guys, thanks for um taking our question here. Um, just a couple for me. Um Antonio, I think you're saying that the the mix impact in second half will be a little bit better than what you anticipated. Um, I saw that, you know, mix added about 25 million in the quarter. I think last call you said, mix would be neutral for the second half. Um, so can you just help us think it? Uh, you know, what's driving a little bit of that upside and maybe how much we can think about in fourth quarter from mix, relative to the third quarter. Um, and then I guess just as we think about the uh,

Michael Binetti: It's a little counterintuitive to us with the new Tailor Made studios and the paint shop coming online next year. Can you just walk us through, you know, what drives the moderation there?

Made studios in the Paint Shop coming online next year. Maybe just walk us through you know what drives the, the moderation there.

Antonio Picca Piccon: Yeah. No doubt. Thank you, Michael. On the first question, yes, the mix in the-. Can you hear well, Michael?

Antonio Picca Piccon: Yeah. No doubt. Thank you, Michael. On the first question, yes, the mix in the-.

Yep. Okay, thank you. Michael.

Benedetto Vigna: Can you hear well, Michael?

Michael Binetti: I'm sorry, what was that, Benedetto?

Um, on the first question. Yes, the mixing. The can you hear? Where Michael?

Antonio Picca Piccon: I was saying, can you hear well?

Benedetto Vigna: I was saying, can you hear well?

I'm sorry, what was that?

Michael Binetti: Not very well, no.

I was saying, can you hear well?

Antonio Picca Piccon: This is why I asked you, because we understood that someone was not able to listen to hear well. I don't know. This is. Right. Okay, I'll try to answer. I hope you can hear me. Yes, the mix impact in the second half of the year has been slightly better than anticipated. I remember I answered you in the Q2 call that we would have expected the mix more neutral in the second half. Now, this is slightly improved, at least based on the Q3 results. This is mainly due to personalization that remains very strong. With respect to your second question, we said we have prepared the plan on the basis of a 19% longer term penetration of personalization.

Benedetto Vigna: This is why I asked you, because we understood that someone was not able to listen to hear well. I don't know. This is. Right.

Not not very well now.

Let's see, the way I asked you because we understood that someone was not able to listen to you. Well, I don't know. This is a

Antonio Picca Piccon: Okay, I'll try to answer. I hope you can hear me. Yes, the mix impact in the second half of the year has been slightly better than anticipated. I remember I answered you in the Q2 call that we would have expected the mix more neutral in the second half. Now, this is slightly improved, at least based on the Q3 results. This is mainly due to personalization that remains very strong. With respect to your second question, we said we have prepared the plan on the basis of a 19% longer term penetration of personalization.

Right. Yeah. Okay. I'll try and answer. I hope I hope you can hear me. Yes. The mix impacting. The second half of the year has been slightly better than anticipated.

So I remember I answered you in the second quarter calls that we would expected the mix more neutrals in the second half. Now this is a slightly improved at least based on the on the third quarter results. And this is mainly due to personalization that remains very, very strong.

Antonio Picca Piccon: In this respect, the contribution of Tailor Made, and particularly the Tailor Made center, bear in mind that have been taken into consideration mostly to come closer to our clients. The overall consideration on the penetration of personalization takes that into account with a view to be close to our clients, also in countries where such Tailor Made, personalization are particularly relevant, such as Japan and the western coast of US.

With respect to your second quarter there, it's the second question. Uh, we said we have to prepare the plan on the basis of a 19% longer term penetration of personalization. In this respect the contribution of tailor made and in particular, is the tailor made Center bear in mind that I've been taking into consideration, mostly to come closer to our

Client.

Michael Binetti: Okay. Can I just ask you one clarifying comment? You said the ADAS will roll out over 3 years. Am I wrong, or is that a little longer than the normal cadence for one of the strictly limited or supercar models like this? Is there a strategy behind stretching that out a little longer? I would think normally you'd see the bulk of those shipments in maybe 8 or 10 quarters.

so um, the overall consideration on the penetration of personalization takes that into account with a view to be close to our clients also in countries where such tailor made, uh, personalization a particularly relevant such as Japan and the uh western coast of of of USA

Antonio Picca Piccon: This is more in line with what we've been doing on the Icona recently, considering the overall number of cars involved and the startup phase that is in order to get to run rate of production.

Michael Binetti: Okay. Thanks, guys. I appreciate it.

Okay. And is can I just ask you 1 clarifying? Comment. You said the S80 will roll out over 3 years. Is that am am I wrong? Or is that a little longer than the normal Cadence, for 1 of the strictly limited or Supercar models? Like this is that and is there is there a strategy behind stretching that out a little longer? I would think normally it would you'd see the bulk of those shipments in maybe 8 or 10 line with what I've been doing on the icon as a recently considering the overall, um, number of cars involved and the startup phase that is in stage by in order to get to um run rates of production.

Okay, thanks guys. I appreciate it.

Operator: Thank you. We are now going to proceed with our next question. The next question come from the line of Stephen Reitman from Bernstein. Please ask your question. Hello, Stephen, your line is open. You may ask your question. Hello, Stephen Reitman, can you hear us? Your phone might be on mute. Your line is open if you may ask a question. Okay, it looks like the person has just disconnected. We are now going to proceed with our next question. The next question come from the line of Flavio Cereda from GAM. Please ask your question.

Thank you. We are not going to proceed with our next question.

And the next question is come from the line of Stephen rittmann from Bernstein. Please ask your question.

You may ask a question.

Hello, Stephen rittmann. Can you hear us on your phone? Might be on mute. Your line is open if you may ask a question,

Okay, it looks like we've the person. I just disconnected. We are now going to proceed with our next question.

And the next question is come from the line of Flavia from GM. Please ask a question.

Flavio Cereda: Yeah, hi, Benedetto, good afternoon. My question is, I'm taking you back to the Capital Markets Day and your projection, the top line growth to 2030. A very simple question, volume price mix. Volume, you guys control it, mix to a point. I was just wondering on price, your pricing power, given all that's been done and the great results that we've seen in recent years. Benedetto, where do you think you stand on this? Do you think you're coming to an end here, or do you think there's more to come?

Yeah, hi uh, good afternoon. So my my question is I'm taking you back to um the capital markets day and and your um, your projections, the Top Line growth to 2030. So a very simple question, volume price makes volume. You guys control it makes to a point and I was just wondering on price.

Antonio Picca Piccon: Thank you, Flavio, for the question. It's not at all at an end. Actually, we feel confident that with all the innovation that we have to delight our clients, we do not see any weakening in our pricing powers. We will continue to offer, Flavio, car with different positioning. All of them will benefit of the pricing power because this pricing power, just to be clear, is not coming because we will just increase the price for the same, let me say, product as it is. No, we will make richer and richer, innovative, more and more innovative with the product, so that by delighting the client, we are confident that we will keep our pricing power.

Benedetto Vigna: Thank you, Flavio, for the question. It's not at all at an end. Actually, we feel confident that with all the innovation that we have to delight our clients, we do not see any weakening in our pricing powers. We will continue to offer, Flavio, car with different positioning. All of them will benefit of the pricing power because this pricing power, just to be clear, is not coming because we will just increase the price for the same, let me say, product as it is.

Um, your pricing power given, uh, all that's been done, uh, at a great results that we've seen in recent years. But at that, the where do you think you stand on? This are are, do you think you're coming to a to an end here or do you think there's more to come?

Thank you for calling. For the question, is not at all at an end, actually. We feel confident that we've all Innovation that we have to the last to the light. Our clients, we do not see any weakening in our, uh, in our pricing power. We will continue to offer clario.

Benedetto Vigna: No, we will make richer and richer, innovative, more and more innovative with the product, so that by delighting the client, we are confident that we will keep our pricing power. This is what we are working on, and this is the goal of all the money that we invest in R&D, in innovation with all the teams.

Antonio Picca Piccon: This is what we are working on, and this is the goal of all the money that we invest in R&D, in innovation with all the teams.

And this is what we are working on and this is the goal of all the money that we invest in R&D in Innovation with all the team years.

Flavio Cereda: Aligned to more models, fewer volumes?

Antonio Picca Piccon: Yeah.

Benedetto Vigna: Yeah.

So, aligned to more models if you were fewer volumes.

Flavio Cereda: Okay. Perfect. Thank you. Ciao.

Yeah.

Antonio Picca Piccon: Thank you, Flavio.

Benedetto Vigna: Thank you, Flavio.

Perfect. Thank you, ciao. Thank you.

Operator: Thank you. We are now going to proceed with our next question. The question come from the line of Thomas Besson from Kepler Cheuvreux. Please ask your question.

Thank you. We are now going to proceed with our next question.

Thomas Besson: Thank you very much. I'll have two questions, please. First, on hybrids, I think the share was lowest in a couple of years. Is it linked with the changeover of product, or is it driven by a willingness to reduce overall the hybrid share to eventually address excess deliveries in certain markets and residual values? For the first question and the second, could you give us the delivery figures, please, for the Q3 date on us, and how many F80 you are already gonna launch in Q4, please?

And the questions come from the line of tammuz. Bessel from Kepler, please ask your question.

Thank you a lot. Um, I have two questions, please. First, on hybrids, I think the share was lost in a couple of years. Is it linked with the changeover of product, or is it driven by a willingness to reduce overall the hybrid to eventually address excess deliveries in certain markets and really values?

Benedetto Vigna: The first one, Thomas, is just, is the, depends on the offers that we have on the line-up we are offering to our clients. The number of hybrid cars that we are offering is reducing because there is a change in the model. There is no. If you want, there is no surprise over there. It's a consequence of the way we launched the cars. That's it. Don't extrapolate any trend over there, okay? And it's not related to the propulsion. The second is how many F80-

Uh, but for the first question and and the second uh, could you give us the uh delivery figures, please for the Q3 data on us and what how many f80 you already going to launch in in Q4 please?

Okay, so the first 1 comma is just, uh, is the depends on the offer that we have on the line up. We are offering the 2-hour client. The number of hybrid cars that we are offering is, is reducing because there is a change in the model, so there is no.

If you want, there is no surprise over. There is a consequence of the way, we launched the the car.

No, that's it. There is a don't take. Don't take extrapolate any Trend over there, okay. And it's not related to to the proportion.

Thomas Besson: Yeah.

Benedetto Vigna: we're planning to launch, to sell in Q4.

Thomas Besson: Just the initial few units, Thomas. Not this number. I thought I am 40 in the Q3.

Antonio Picca Piccon: Just the initial few units, Thomas. Not this number. I thought I am 40 in the Q3.

Uh, the second is how many f8 planning to launch to sell. That's just the initial key. You need to notice number.

Benedetto Vigna: Thank you very much.

Thomas Besson: Thank you very much.

And I thought, I 140 in the in the top Court.

Thomas Besson: Thank you.

Benedetto Vigna: Thank you.

Thank you very much.

Thank you.

Operator: Thank you. We are now going to proceed with our next question. The next question comes from the line of Stephen Reitman from Bernstein. Please ask your question. Your line is opened.

Thank you. We are now going to proceed with our next question.

Stephen Reitman: Yes. Good afternoon. Apologies. Had a problem with connection. I apologize also if the question's been asked before because I was cut off, so I had to redial in again. Thank you for your comments about the contribution of the 849 extending the coverage of your order book into 2027. I'd like to know if demand is similar for both the coupe and for the spider. I know you don't comment on the order intake on a model by model basis, could you talk about the level of interest you're seeing in the Amalfi? Is demand as strong for the entry products as it is for your higher end products? My second question is regarding also one of the hybrids.

And the next question is come from the line of Steven rman from Bernstein, please ask a question. Your line is open.

Stephen Reitman: My second question is regarding also one of the hybrids. You've given us some detail in the past about the penetration rates you're seeing for your extended warranty program, for the battery program and the like. I think the last figure we had was running at about 15% to 20%. Obviously, that's a very good way of improving the residual values of these vehicles and making these a Ferrari's cars last forever. As is your intention. Could you update us on where you are with that program? How well has it been understood? Thank you.

Yes, good afternoon, apologies. I had a problem with connection, um, and I apologize. Also, the question's been asked before because I was cut off, so I had to redid it again. But thank you for your comments about the contribution. We 849, extending the coverage of your order. Book into 2027. I'd like to next demand is similar for both the coupe and for the spider, um, and I know you don't comment on the order intake on a Model by model basis. But could you talk about the level of Interest you're seeing in the amount fee, um, is demand strong for the entry products. It is for your higher-end products.

Stephen Reitman: You've given us some detail in the past about the penetration rates you're seeing for your extended warranty program, for the battery program and the like. I think the last figure we had was running at about 15% to 20%. Obviously, that's a very good way of improving the residual values of these vehicles and making these a Ferrari's cars last forever. As is your intention. Could you update us on where you are with that program? How well has it been understood? Thank you.

Benedetto Vigna: Thank you, Stephen. I understand that electronics is not always working well with cars. That is why we manage carefully electronics in our cars. Having said that, how it's going, the Amalfi? I think Amalfi is proceeding better than the previous model. This is very encouraging. The second point I can tell you is that I was in China the 21 October, I saw the first two Amalfi sold over there to a new client, younger than 40 years old. I can also share with you that in order book, more than 60%... Sorry, 40% of the people that want to buy the Amalfi are coming are new to the brand.

And my second question is regarding also on the hybrids, um, you've given us some detail in the past, about the penetration rates, you're seeing for your extended warranty program for the battery program. The like, and I think the last figure we had was around running at about 15 to 20%. Obviously, that's a very good way of improving the residual values of these vehicles and making these a Ferraris last being last forever as your as your intentions. So could you update us on where you are with that program? How well is it understood? Thank you.

Thank you, Stephen. And, uh, I understand that the electronics is not always working well, before that is. All right, we managed to schedule an installation in our workout.

And he said that I was going the amount. I think I must be is costing you better than the previous model. Uh,

so this is very is very encouraging. The second point. I can tell you is that I I saw I was in China, the 21st of October and I saw the first 2 Amalfi sold over there.

To the new client, the youngest then 40 years old. I can also share with you that in order book more than 60% of the new clients of the sorry 40% of the

Benedetto Vigna: This is, let's say we are pleased because one of the objective of this car was to bring on board the new to the brand. That's the comment on Amalfi. The story of hybrid. The hybrid warranty, I think that, I mean, it's picking up, continues to pick up. It's more than 20%. We see one simple things. We have dealers that are able to explain it well, while we still see some dealers that have not yet explained it properly. We are in the process to retrain some of our dealers, because some of them are not able to explain properly the advantage of this warranty scheme. We see improvements, but I think there is more if the, all the dealers are able to explain properly. That's.

Benedetto Vigna: We are in the process to retrain some of our dealers, because some of them are not able to explain properly the advantage of this warranty scheme. We see improvements, but I think there is more if the, all the dealers are able to explain properly. That's.

Of the the the the the people that you want to buy them at the brand and this is let's say we are placed because 1 of the objectives of this car was to bring on board new new to the brand. So that's the comment on the market. The story of of vibrate, they have hybrid warranty. I think that I mean it's picking up continues to pick up is more than 20% but we see we see 1 simple things. We have dealers that are able to explain it. Well why we still see some zeros that have not yet explained the properly so we are in the process.

Train some of our dealers because some of them are not able to explain properly the uh the advantage of this warranty scheme. So we see improvements but I think there is more, if the all the dealers are able to explain properly.

Stephen Reitman: Thank you.

Benedetto Vigna: Thank you, Steven.

Benedetto Vigna: Thank you, Stephen.

Stephen Reitman: Thank you.

So that's why. Thank you, Stephen.

Thank you.

Operator: Thank you. We are now going to proceed with our next question. The question's come from the line of Thomas Besson from Kepler Cheuvreux. Please ask your question.

Thank you. We are now going to proceed with our next question.

And the question comes from the line of tammuz Peso from Kepler. Chevy, please ask your question.

Thomas Besson: Thank you. I think I've already asked my question. I think you can pass on to the next speaker.

Benedetto Vigna: In fact, I was surprised.

Thank you. I think I've already asked my question, so I think you can pass on to the next speaker.

Thomas Besson: Yeah, me too, but thank you.

Operator: We are now going to proceed with our next question. The next question's come from the line of Robert Zonowski from UBS. Please ask your question.

Operator: We are now going to proceed with our next question. The next question's come from the line of Robert Krankowski from UBS. Please ask your question.

Exactly. I was surprised. Yeah, me too but thank you.

We are now going to proceed with our next question.

Robert Zonowski: Hello. Just two questions for me, please. Just maybe starting with Q3. Like, I think we're expecting that it's going to be the weakest quarter in the year. Obviously something went better, and maybe we heard that it was personalization, but maybe if you could talk specifically about the US. Back in Q2, you mentioned that there is some change in consumer behavior because of the tariffs. Have you seen it normalizing right now after we have more clarity on tariffs? Maybe the second one also related to the US. Obviously, there is a lot of conversation about residuals, and there is some kind of concern about potential increase in order cancellations. Have you seen any unusual or any pickup in orders cancellation in the US, as consumers are a bit worried about potential change in residual values in the market? Thank you.

Robert Krankowski: Hello. Just two questions for me, please. Just maybe starting with Q3. Like, I think we're expecting that it's going to be the weakest quarter in the year. Obviously something went better, and maybe we heard that it was personalization, but maybe if you could talk specifically about the US. Back in Q2, you mentioned that there is some change in consumer behavior because of the tariffs. Have you seen it normalizing right now after we have more clarity on tariffs?

And the next question is from the line of Robert Kowski from UBS. Robert, please ask your question.

Robert Krankowski: Maybe the second one also related to the US. Obviously, there is a lot of conversation about residuals, and there is some kind of concern about potential increase in order cancellations. Have you seen any unusual or any pickup in orders cancellation in the US, as consumers are a bit worried about potential change in residual values in the market? Thank you.

Hello just 2 questions for me, please. And just maybe starting with the Q3 like, I think we are expecting that. It's going to be the weakest quarter in the year. So obviously it's something went better and maybe we heard that it was personalization, but maybe if you could talk specifically about the US backing you too, you mentioned that there is some change in consumer Behavior because of the tires. Have you seen it? Normalizing right now? After we have more clarity on tires and maybe the second 1 also related to the us. Obviously, there's a lot of conversation.

Benedetto Vigna: I'll take this question, Robert. 1, in US, the business is proceeds as usual, 1. 2, the only difference we see in US, that if you compare today versus the previous call, at that time, the tariffs were still at 25%. Now they are at 15%. Now it's carved out in the stone. It's 15%. That's the only difference we see. We have been, you remember last time, we told you when it will become, how can I say, blessed by papers, then we will update the commercial policy. That's what we did. That's what we did. Before, we said the price increase up to 10% when the tariffs were 25%, and now we say price increase up to 5%. That's the only difference in US.

About residuals. And there is some kind of concern about potential increasing order cancellations. Have you seen any unusual or any pick up in orders cancellation? In the US? As consumers are a bit worried about potential change in residual values in the market. Thanks.

Benedetto Vigna: We have been, you remember last time, we told you when it will become, how can I say, blessed by papers, then we will update the commercial policy. That's what we did. That's what we did. Before, we said the price increase up to 10% when the tariffs were 25%, and now we say price increase up to 5%. That's the only difference in US.The business is proceeded as usual.

I think this question, Robert. So 1 in us the business is proceeds as usual number 1, number 2. The only difference we see in us that, if you compare today, versus the previous call at that time, the tariffs were still a 25%. Now, they are at 15%. Now it's a carbon out in the stone, it's 15%. So that's the only difference we see and we have been. Uh, you remember last time we told you, when when it will become uh,

How can I say, blessed by papers? Then we will update the commercial uh policy and that's what we did.

That's what we did before.

We said the price increase up to 10% when the tariffs were 25% and then now we say price, increase up to 5%.

Benedetto Vigna: The business is proceeded as usual.

Antonio Picca Piccon: With respect to Q3 being originally thought as the weakest quarter in the year, I think the reason is simple. The level of personalization was higher than we were expecting, that helped on the top line. In terms of the cost base, it's a point that I highlighted when we revised the guidance upward. The cost base actually ended up being lower compared to our initial expectations.

That's the only difference in in us, then the business is is usual.

And with respect to to 3 being originally thought as the weakest quarter in the year, I think the reason is that this simple uh we were in level of personalization was a higher than we were. We were expecting.

So that has on the top line and in terms of the cost, there is a point that I like it. When we revised the guidance upward, the cost base is actually ended up being lower compared to our initial expectations.

Operator: Thank you. We are now going to proceed with our next question. The question's come from the line of Tom Narayan from RBC. Please ask your question.

Thank you. We are now going to proceed with our next question.

Tom Narayan: Hey, thanks for taking the questions. Antonio, I think I didn't hear it and you said it, but could you please review the bridge again from Q3 to Q4? I know the Daytonas are zeroed out, but then maybe review the R&D and SG&A. I have a follow-up.

And the questions come from the line of Tom Narayan from RBC. Please ask a question.

Hey, thanks for taking the questions. Um, uh, my first 1, uh, Antonio, I think, um,

Benedetto Vigna: Yeah. With respect to Q4, Tom, I said that there will be lower deliveries year-over-year. That's a point that we already anticipated in the Q2 call. This is to be read in connection with the changeover of models that we discussed. I said there will be a positive product mix, although we expect it sequentially lighter, in line with the phase out of the Daytona and the first unit of the F80. The last point is that we expect higher G&A and a seasonal step up in racing expenses for development of the applications for the car, as well as higher G&A that are dictated by the start of production of the new models.

Antonio Picca Piccon: Yeah. With respect to Q4, Tom, I said that there will be lower deliveries year-over-year. That's a point that we already anticipated in the Q2 call. This is to be read in connection with the changeover of models that we discussed. I said there will be a positive product mix, although we expect it sequentially lighter, in line with the phase out of the Daytona and the first unit of the F80. The last point is that we expect higher G&A and a seasonal step up in racing expenses for development of the applications for the car, as well as higher G&A that are dictated by the start of production of the new models.

I think I didn't hear it, man, and you said it, but could you, please review the bridge again from, uh, Q3 to Q4? I know the, the Daytona are zeroed out, but then maybe review the um, maybe the R&D and, uh, and and sgna, and then I have a follow-up.

Yeah, with respect to Q4 from, I said the there will be lower deliveries here over here. That's a point that we already entered everything.

Is it to be right in connection with the change over of models that we discussed?

in line, with the phase out of the Dona and the first unit of the SAT,

And the last point is that, we expect higher GNA.

Tom Narayan: Got it. Okay, that's very helpful. I have a kind of high level question. I think in the past you've said that, when there's a new, kind of form factor, like Purosangue was a very different vehicle than you had ever made in the past, that initially, obviously, there is a, I don't know, like a margin headwind, relative to, you know, if it was a standard product that you've done before at the same, you know, at the same price point. How do we think about the Elettrica from this standpoint, given that it's a completely different form factor?

And a seasonal Step Up in racing expenses for uh, development of the applications for the, for the car, as well as higher DNA that are dictated by the size of production of the new models.

I have a kind of high level question. Um, I think in the past you've said that

um, when there's a new, uh, kind of form factor like pure sangui was a very different vehicle than you would ever made in the past that initially, obviously, there is a, um,

Tom Narayan: Is it safe to say that there's a similar kind of margin headwind, relative to, you know, models that you make at a much larger volume, requiring less incremental new spend? Is that a safe assumption to make? Thanks.

Benedetto Vigna: I think, Tom, you have good memory. That's what we said about Purosangue, but we said it when everything was announced, that everything was certified. I don't want to look like I'm polite, but if you are patient a little bit, we will be more precise on that.

I don't know, like a margin headwind, uh, relative to, you know, if you if it was a standard product that you've done before at the same, you know, at at, at the same price point, how do we think about the electrica from this standpoint given that it's a completely different? Um, form factor? Is it, is it safe to say that there's a similar kind of margin headwind, uh, relative to, you know, models that, that you that you make at at at a much larger volume. Um, requiring less incremental, uh, new spend is that, is that is that a safe assumption to make thanks? I think Tom.

You have a good memory. That's what we said about to assign with it, but we said it when everything was announced and everything was satisfied.

Tom Narayan: Got it. Okay.

Benedetto Vigna: The Purosangue, you remember, we told you everything when the shape was visible. Not only the shape, also the performance. Thank you.

So I don't want to look like I'm polite, but if you are patient a little bit then uh we will be more precise on that.

Tom Narayan: Understood. Thank you.

Operator: Thank you. We are now going to proceed with our next question. The question's come from the line of James Kluznik from Jefferies International. Please ask your question.

Thank you, understood. Thank you.

Thank you. We are now going to proceed with our next question.

James Kluznik: Yes. Buon giorno, Benedetto, Antonio, and team. I guess I've really a philosophical question for Benedetto, just to follow up on Flavio's. I think Benedetto, you've made it very clear that you expect a higher rate of innovation to continue to really support your pricing power for the brand. When I consider your 2030 plan, you seem to assume that that lever, that price mix lever is going to be much less important than in the past. Should we be thinking that the rate of innovation in the next 5 years reduces to go hand in hand with that price mix lever being less important than in the past 4 years? Thank you.

And the questions come from the line of James. Nick, from Jeffrey International. Please ask your question.

Yes, we've already drawn team, I guess. I've, um, really a philosophical question for Benedict or just to follow up on Flavio. I think, uh, Benedict. You've made it very clear that you expect a higher rate of innovation to continue to really support your pricing power, for the brand. But when I consider your 2030 plan, you seem to assume uh that that lever that price makes lever is going to be much less important than in the past, is that

Benedetto Vigna: No, I think that innovation rate does not slow down, honestly. I think we have several innovation in the pocket that we plan to apply to the different cars, each one for its own positioning. I mean, if we would sit on innovation, I don't think we would be called Ferrari. The reason why I was very clear with to the in the answer to the question of Flavio Cereda is because we have several levers of innovation that go beyond the traction. There is the vehicle dynamics, there is user interface, there is architecture, there is the driving trails, that we feel confident that once we apply this to the different models, we will be able to delight the client and thus to use properly the pricing powers. Because we are not...

Should we be thinking that the rates of innovation in the next 5 years? Reduces to go hand in hand. With that price, makes lever being less important than than in the past 4 years. Thank you.

No, I think that Innovation rate doesn't not, uh, slow down, honestly. I think we have several innovation in the pocket that we plan to apply to the different cars. Each 1 on its own positioning and, uh,

I mean, if we were to sit on innovation, I don't think we would be calling for that.

Benedetto Vigna: There is the vehicle dynamics, there is user interface, there is architecture, there is the driving trails, that we feel confident that once we apply this to the different models, we will be able to delight the client and thus to use properly the pricing powers. Because we are not... I would like to maybe underline one point. We are not a company that is increasing the price of the same object just because times goes on. No, we increase the price of what we do because we put something more innovative in it, and because this innovation is gonna delight our clients.

So, the reason why I was very clear with the, the question and answer to the question of is because we have several leaders of innovation that go beyond the traction, that is the vehicle dynamics, that is user interface that is architecture. That is the driving trails that we feel confident that once we apply this to the different model, we will be able to Delight the client and that's to

Benedetto Vigna: I would like to maybe underline one point. We are not a company that is increasing the price of the same object just because times goes on. No, we increase the price of what we do because we put something more innovative in it, and because this innovation is gonna delight our clients. I think this is important. If you see also the way we increase the price in the past years, Well, Ferrari has been unique in the sense that we have not increased the price of the same object, but we have put the innovation in the product, and thus, because of high degree of innovation, high degree of delightment of the client, we exert properly the pricing power. That has been, and that's gonna be in this way. James?

To use properly, the pricing power because we are not, I would like to maybe underline 1 point. We are not the company that is increasing the price of the same object.

Benedetto Vigna: I think this is important. If you see also the way we increase the price in the past years, Well, Ferrari has been unique in the sense that we have not increased the price of the same object, but we have put the innovation in the product, and thus, because of high degree of innovation, high degree of delightment of the client, we exert properly the pricing power. That has been, and that's gonna be in this way. James?

Just because time goes on know, we increase the price of what we do because we brought something more Innovative in it and because this Innovation is going to Delight our clients. I think this is important. If you see, also the way we increase the price in the past years. Well, her value has been unique. In the sense that we are not increase the price of the same object, but we have

Antonio Picca Piccon: That's very clear. Grazie.

James Kluznik: That's very clear. Grazie.

Both Innovation is the product and that's because of iot degree Innovation. I degree of the Enlightenment of the client. We exerted properly, the pricing power that is being and that's going to be in this way, James.

Benedetto Vigna: Grazie, James. Thank you.

That's very clear, that's it.

Thank you.

Operator: Thank you. We are now going to proceed with our next question. The question's come from the line of Jose Asumendi from JPMorgan. Please ask your question.

Operator: Thank you. We are now going to proceed with our next question. The question's come from the line of José Asumendi from JPMorgan. Please ask your question.

Thank you. We are now going to proceed with our next question.

Jose Asumendi: Thank you very much. Thank you, Benedetto. Just one question, please. I guess, frequently asked the question after the Capital Markets Day with regards to, I think, very exciting, future, I think, bright products that you're launching to the market, but they also require some investments, such as the launch of Elettrica, I think some lesser investments like the paint shop. I know, I think all the great facilities we saw during the Capital Markets Day. The question is, to create that stability of margins in the business model, how can we think about the offsetting elements, the positive contributions you're gonna have in the medium term to create that margin stability? There might be some doubts in the market about the margin stability of the business model.

José Asumendi: Thank you very much. Thank you, Benedetto. Just one question, please. I guess, frequently asked the question after the Capital Markets Day with regards to, I think, very exciting, future, I think, bright products that you're launching to the market, but they also require some investments, such as the launch of Elettrica, I think some lesser investments like the paint shop. I know, I think all the great facilities we saw during the Capital Markets Day.

And the question is come from the line of Jose AI from JP Morgan. Please ask a question.

José Asumendi: The question is, to create that stability of margins in the business model, how can we think about the offsetting elements, the positive contributions you're gonna have in the medium term to create that margin stability? There might be some doubts in the market about the margin stability of the business model. How can we think about that balance between investments and then the opportunities you have to maintain and create that margin stability that you've shown, I think, in the past years? Thank you.

Jose Asumendi: How can we think about that balance between investments and then the opportunities you have to maintain and create that margin stability that you've shown, I think, in the past years? Thank you.

Benedetto Vigna: Let me see, because there was some noise, just to make sure that I understood properly, Jose. I think that, if you want this question for me, the answer is related to the previous one. First of all, we are living in a certain time. Yes. There is no difference also, if you want, to many other cases in the history. Now, the only things we can do is to make sure that we keep innovating, to offer something that is unique to our clients, unique in the performance, in engineering, unique in the design, unique in the way we do it. You know, why are we doing the paint shop? Why did we do the e-building?

Contributions. You're going to have, in the medium term, to create that margin stability. And there might be some doubts in the market about the margin stability of the business model. Um, how can we think about that balance between investments and then the opportunities you have to maintain and create that margin stability that you have shown in the past years? Thank you.

let me see because there was some noise, just to make sure that they understood properly because I think that

Uh, if you want this, this question for me, the answer is a way to the previous 1 the only way. First of all, we are living in a certain time. Yes, there is no difference. Also if you want many other places in the history. Now the only things we can do is to make sure that we keep innovating. So to offer something that is unique to our client unique in the performance in engineering. You need in the design unique in the way we do it.

Benedetto Vigna: Because we want to be unique in the way we manufacture our cars, whatever they are, ICE, hybrid, and green, electric. Why we are showing in a multi-step way the innovation of Elettrica? Because we want to make sure that all the work done by the engineers, well, it's not gonna be lost. Because there are so many new things in these cars, as well as in the other cars, that we will make sure that innovation is properly, let's say, explained to our clients. We noticed, let's put it this way, we noticed that for some cars in the past, there was a lot of innovation content, or there were several innovation content that were not properly explained. This is an area of improvement we have.

Because you know why we why are we doing the paint shop? Why are we doing? Why are we, did we do the detailing? Because we want to be unique in the way we manufacture our cars. Whatever they are. I see I in green electric why we have

Showing in a multi-step way the innovation of electrical, because we want to make sure that all the work done by the engineers is not going to be lost.

Because there are so many new things in this car.

Benedetto Vigna: We noticed, let's put it this way, we noticed that for some cars in the past, there was a lot of innovation content, or there were several innovation content that were not properly explained. This is an area of improvement we have. When we do something new, either on technology, on design, on engineering, we have the responsibility to explain well to the world, because behind that, beyond that, there is the work of many people, blue collars and white collars. This is, you know, the philosophical question or the goal of this question, of this company, is to make sure that on the innovation side, whatever we do is unique.

Benedetto Vigna: When we do something new, either on technology, on design, on engineering, we have the responsibility to explain well to the world, because behind that, beyond that, there is the work of many people, blue collars and white collars. This is, you know, the philosophical question or the goal of this question, of this company, is to make sure that on the innovation side, whatever we do is unique. This is, if you want, the best guarantee of the long-term sustainability of what we do. That's it. I mean, only if you are unique, you know, we can do something that guarantees the long-term sustainability. That's the reason why we gave you a floor for the end of this decade, and we feel confident for that because of the uniqueness of what we do.

As well as in the other cars that we will. Make sure that Innovation is properly is properly that explained to our client. We notice it that put it this way. We notice that for some car in the past, there was a lot of innovation content or there were several Innovation content that were not properly explained. And this is another Improvement. We have

When we do something new, either on technology on the sign on engineering, we have the responsibility to explain well to the world because behind that beyond that, there is the work of many people, blue color, and white colors. So this is

Benedetto Vigna: This is, if you want, the best guarantee of the long-term sustainability of what we do. That's it. I mean, only if you are unique, you know, we can do something that guarantees the long-term sustainability. That's the reason why we gave you a floor for the end of this decade, and we feel confident for that because of the uniqueness of what we do.

You know the the philosophical question or the the goal of this question of of this company is to make sure that the Innovation side whatever we do is unique and this is if you want the best guarantee of the long term sustainability of what we do.

That's it.

Maybe only, if you are unique, you know, we can do something that guarantees the long-term sustainability. That's the reason why we gave you a floor. For the end of this decade, and we feel confident for that because of unintelligible.

Operator: Thank you. We are now to proceed with our next question. The question's come from the line of Michael Tyndall from HSBC. Please ask your question.

Thank you. We are not to proceed with our next question.

Michael Tyndall: Yes, good afternoon. Thank you very much. Two questions if I can. One for Antonio. Can we talk about the F1 budget for next year? Headline number, if I'm not wrong, is $215 from a current $135. From where you're sitting, is that just an incremental $80 million of cost, or does the scope change mean that actually the impact on your P&L is considerably lower than that headline number? The second one is just around, can you talk a bit about FX on the order backlog? What scope do you have, and how much do you really wanna push in terms of trying to offset what's going on with currencies on a backlog that now runs into 2027? Thanks.

And the questions come from the line of Michael Tindle from HSBC, please ask a question.

Yes, good afternoon. Thank you very much. Uh, 2 questions if I can 1 for, for Antonio. Can we talk about the F1 budget for next year? So headline number, if I'm not wrong, is

215 US dollars.

From current 135 from where you're sitting is that just an incremental 18 million of cost.

or does the scope change mean that actually,

Michael Tyndall: The second one is just around, can you talk a bit about FX on the order backlog? What scope do you have, and how much do you really wanna push in terms of trying to offset what's going on with currencies on a backlog that now runs into 2027? Thanks.

The impact on your p&l is considerably lower than than that headline number. And then the second 1 is just around

Benedetto Vigna: Thanks, Michael. The first one, we read it a pure cost increase. That's an element we need to take into account. If the F1 budget grows, this goes into our costs, and this is to be taken as a cost increase. On FX on the order backlog, based on the agreement that we have with dealers, in principle, we could change pricing, within 90 days, anticipation, I guess. That's something that in principle is possible. We decide on a country-by-country basis and depending also on the movement in terms of the exchange rate, on the size of the move.

Antonio Picca Piccon: Thanks, Michael. The first one, we read it a pure cost increase. That's an element we need to take into account. If the F1 budget grows, this goes into our costs, and this is to be taken as a cost increase. On FX on the order backlog, based on the agreement that we have with dealers, in principle, we could change pricing, within 90 days, anticipation, I guess. That's something that in principle is possible. We decide on a country-by-country basis and depending also on the movement in terms of the exchange rate, on the size of the move.

Can you talk a bit about FX on the order backlog? What scope do you have, and how much do you really want to push in terms of trying to offset what's going on with currencies on a backlog that now runs into 2027? Thanks.

Like Michael the first 1, we read it still costing 3.

That's an element we need to take into account. So if you have 1 budget grows, this is closing to our cost and this is to be taken as a cost increase on effects on the order. Backlog. And based on the agreement that we have, with dealers in principle, we could change pricing. Um,

With a 90 days, uh, um, anticipation, uh, I guess. Um, so the something that you principally is possible, we decide on our country by country basis and depending also on the movement and it will give change rate.

On the side.

Michael Tyndall: Got it. Got it. Thank you.

Benedetto Vigna: Welcome.

Antonio Picca Piccon: Welcome.

Got it. Got it. Thank you.

Welcome.

Operator: Thank you. Given the time constraint, this concludes the question and answer session. I will now hand back to Benedetto Vigna, CEO, for closing remarks.

Benedetto Vigna: Thanks for your time today, also for all your interesting questions. Thanks a lot. We remain focused on executing our plans throughout the rest of these years, and also with confidence, we begin to build the next phase of our new business plan. It's a business plan, it is ambitious, and we are highly confident that this is gonna happen. We'll deliver on our promises, as we already did so far. This, after this, I wish you a good morning or afternoon, and I thank you again for your attention and your questions. Grazie.

Thank you given the time constraint this concludes the question and answer session. I will now hand back to Benin to Via see you for closing remarks.

And also with confidence, we begin to build the next phase of our new business plan. It's a business plan. It is ambitious. And we are highly confident that this is going to happen will deliver on our promises, as we already did so far. And this after this, I wish you a good morning or afternoon.

And I thank you again for your attention and your question.

Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.

Q3 2025 Ferrari NV Earnings Call

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