Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to Ferrari 2021 full year results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you will need to press star and 1 on your telephone keypad. Please be advised that today's conference is being recorded. If you require any further assistance over the phone, please press star 0. I would now like to hand the conference over to our first speaker today, Nicoletta Rousseau.

Please go ahead. Thank you, Nadia, and welcome to everyone who is joining us. Today we plan to cover the Group's full year 2021 operating results and 2022 guidance. In light of this, the duration of the call is expected to be around 60 minutes. Today's call will be hosted by the Group CEO, Mr. Benedetto Vigna, and Group CFO, Mr. Antonio Piccapicon. All relevant materials are available in the investor section of the Ferrari corporate website, and at the end of the presentation, we will be available to answer your questions. 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 and the call will be governed by this language. With that said, I'd like to turn the call over to Benedetto.

Thank you Nicoletta, thank you everyone for joining us today. Three months have passed since the last time we met digitally all together and many things have happened in our company. today i will be delighted to take you through the 2021 result and i will provide a little taste about what's happening in our company our performance in 2021 was very robust from both a quantitative and qualitative point of view numbers first we close the years setting a new record in terms of result across all metrics posting double digit growth and above pre-pandemic level. The results were higher than the targets we had already upgraded when we shared our third quarter results. Five excellent results to remember. First, €4.3 billion revenues, materially exceeding, for the first time in our history, the threshold level of €4 billion. Over 11,000 cars shipped with significant growth in all regions. In China, our deliveries doubled year over year. 35.9% exceptionally strong ABDA margin reached at a record level. Impressive €640 million industrial free cash flow generation, mainly thanks to the advances collected on the special series and thanks to the discipline and timing of CAPEX spend. And all this with no impact on our product plan. The last point is we have the strongest ever order book in our history. up double digit versus the prior years and covering well into 2023, with all regions showing significant growth. How did we achieve these five excellent results? Firstly, we have to thank our incredible customers, both existing and new, and all the women and all the men of Ferrari for their outstanding work. Secondly, it was possible thanks to the strong margin contribution of the Monza SP1 and SP2. Thirdly, this was further boosted by our decision to seize commercial opportunities on certain models in line with our order intake evolution. We also benefited from deliveries of the SF90 Stradale being moved to 21 from previous year 2020. And last but not least, we have capitalized on a strong economic climate, as evidenced also by the solid performance of our pre-owned business, and on the enthusiasm of our customers whose delight in sharing their Ferrari passion with us has been so evident at our event. After these five excellent results, the five key priorities we focused on, on all the year 2021. Product excellence, customer experience, motor racing, brand diversification, and carbon neutrality. Let's start with product. Last year, we unveiled four new models demonstrating our leadership in technology, in design and driving experience. They all received an enthusiastic response from the market and worldwide acclaim. In May, we unveiled the 8-12 Competizione and the 8-12 Competizione Aperta, our latest special series with its revolutionary aerodynamics, and they were all sold out prior to the official launch, as a testament to the vigorous demand for our V12 models. Just a month later, in June, we launched the accelerating 296 GTB, featuring our latest hybrid powertrain, combining a V6 turbo and electric motor. It exceeded previous models' order intake over the same relative period, and now a solid pipeline of experiences for our customers is already planned for the current year, further fueling our ambition for this model. I drove this car several times, and the go-kart feeling and the fun-to-drive experience you can have are really unique, believe me. A few weeks ago, in November, the new Icona, the most powerful V12 ever made, whose unveiling I had the pleasure of attending in Florence, surprised our most loyal Ferraristi. I'm talking about the Ferrari Daytona SP3. a masterpiece of craftsmanship, performance and design, already awarded internationally and limited to 599 units, which have all been allocated in advance of its premieres and with untapped demand, way exceeding the limited series run. So we enter this year, 22, with considerable momentum thanks to two factors. One, the strongest ever order book, and two, a broad portfolio of models. The order book first. It has never been so strong. The positive trend. characterized the whole year and continued in Q4 when we experienced impressive order intake despite our decision to close the order collection on certain models. Second, the new product portfolio. Not only do we have the broadest, most innovative and most beautiful range of cars ever offered to our customers, But we also plan to further enrich this with two server launches this year, completing the 15 launches promised at the Capital Market Day in 2018. In these years, in 2022, we will unveil the much-anticipated Puro Sangue, which I am confident will exceed our customer expectations. I drove it several times in the hills around Maranello, day and night, for the test, and I can testify that the driving experience is really astonishing, but I do not want to say more to avoid to spoil such a surprise. Now, after-product customer experience. In the course of 2021, it has been really liberating to be able to start arranging events with them again. To mention a few of them, we marked Cavalcade's 10th anniversary with a very special event in Sicily for classic and modern drivers, and we restarted our Tributi and Corse Cliente activities, culminating in the Finali Mondiali at Mugello, where I met so many of our customers and fans, all passionate about Ferrari. Now, our motor racing activities. 2021 was our best ever season in GT racing, with Ferrari winning the Drivers' and Manufacturers' World Titles in FIA World Endurance Championship and with victory at the 24 Hours of Le Mans with our 488 GTE EVO. the formula one 2021 season also showed encouraging sign toward its end with third place in the constructor championship 2022 is the first year with a complete new set of technical rules and our new car will be presented in a few days on february 17th we are also redefining our strategic partner along three directions one We welcome back Banco Santander. Two, we tap current segments with new partners such as SIVA Logistics in the transportation space. Three, we strengthen our relationship with leading-edge technological partners such as Amazon Web Services and Velas to be at the forefront of digital technologies and Web 3.0. Such stronger partner portfolio confirms once again the continued allure of the most successful team in F1 history, Scuderia Ferrari. And what about brand diversification? Well, last year we made excellent progress in extending our brand into exciting new territories. In June, we launched the first-ever Ferrari fashion collection. In July, we reopened the iconic Cavallino restaurant in the heart of Maranello. And in the second half of last year, we renovated our stores in Italy and USA. In 2022, we plan to move forward, and the first important milestone will be the upcoming fashion show in Milan later this month. Last but not least, carbon neutrality by 2030. In a further step towards our goal, in Q4, we received ISO 14064 certification for our calculation of the group's carbon footprint. This certification has been really an important step forward. In addition to our electrification journey, we are also committed to addressing both direct, indirect emission with a focus on energy and material across all our entire value chain. As always, our focus was not only on external stakeholders. We continued to invest in our employees. True to our founders' belief that Ferrari is made above all by people. We invested in training for our employees, caring for their well-being and nurturing the diversity of talent in our company. Our efforts were rewarded in 2021 by equal salary certification for the second consecutive year in Italy and for the first time in the United States. The year has been really outstanding thanks to the passion, the dedication of Ferrari people and to reward their achievement in line with the company's strong performance indicators. I'm really pleased to announce the company the yearly competitive award up to slightly over €12,000 for our employees. And now, After the 2021 highlight, let's have a look at the future, at our future, a small taste before providing the full picture on June 16 when we meet here. We are targeting 2022 to be a solid year on the trajectory to reach the 2023 ABDA target of €1.82 billion as announced in 2018. How do we want to do this? How do we want to achieve this goal? Well, there are three clear directions we identified. Number one, we will carefully manage a vibrant order intake in line with our strategy to pursue controlled growth to preserve our brand exclusivity. We will manage the Monza's phase-out whilst the Daytona's deliveries will start in 2023. Three, as I already explained in the last call, innovation requires partners. And it is what we start to do. Lafrome, Amazon, and Velas, just to mention a few of them. And some others, some other important technology partnership will follow up in the near future. 2022 is a very important year for us. It's not only the 75th anniversary of our company. It also sets the foundation for a new business plan, which will be presented at our Capital Market Day on June 16 here in Maranello. This will also be the occasion to meet in person some members of our new organization. recently announced and achieved through both the promotion of home-grown talents and a number of key strategic external lives. The new organization is designed to further foster innovation, optimize processes, enhance agility and increase collaboration. People are the soul of our company. And I'm confident we will seize the opportunities ahead of us in this fast-evolving environment. I will now hand over to Antonio, who will review the 2021 result and 2022 guidance.