Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to the Ferrari 2022 Q1 results conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require assistance during the conference, please press star 0. I would now like to hand over the conference to your first speaker today, Nicoletta Russo. Nicoletta, please go ahead.

Thank you, Stephen, and welcome to everyone who is joining us. Today, we plan to cover the Group Q1 2022 operating results, and the duration of the call is expected to be around 60 minutes. Today's call will be offered by the Group CEO, Mr. Benedetto Vigna, and Group CFO, Mr. Antonio Piccapicconi. 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 two 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.

Grazie Nicoletta. Thank you everyone for joining us today. I would like to start by thanking all the women, all the men in Ferrari for their passion and dedication, which has been essential to navigate the first months of this year. All of them contributed with their tireless effort in achieving the strong result that we are going to present today. Before addressing our start for the first quarter of 2022, I would like to spend a few words on the current international scenario and ongoing conflict in Ukraine. While hoping for a rapid return to dialogue and a peaceful resolution, our votes and support go out to those affected. Ferrari is playing its small part alongside the institution to bring relief to this situation. In relation to this ongoing crisis and its implications, our supply chain has continued to prove its resilience, guaranteeing a smooth production at our facilities. We have no doubt the current microeconomic scenario is causing new challenges. However, our team in Ferrari, also with the support of our partners, have been able to manage this situation properly. That said, While we continue to monitor the current scenario on our supply chain, we have not been immune to inflation. However, this is limited to a portion of our cost base. In fact, we have seen some increase in energy and certain raw material costs, mainly aluminum and precious metals. But in light of this, we immediately took two actions to preserve our profitability. The first, in fall last year, we applied the price increase across our current product range. The second, we just set the price positioning of our new models to adequately reflect our estimates on cost inflation. At the beginning of the year, we announced the new organizational structures achieved through both the promotion of homegrown talent and a number of key strategic external eyes. The new organization is designed to foster innovation, optimize processes, enhance agility, and increase collaboration, being open and more horizontal. And I'm very much delighted to see that we are on the right transformation path. Moving to the first quarter result, I am very pleased to highlight the following four record quarterly data. The first revenues at €1.2 billion, up 17% versus the prior year. EBITDA at €423 million. Industrial free cash flow generation was approximately €300 million. almost twice compared to what we achieved a year ago, sustained by the strong profitability and the advances collected on the Daytona SP3. Our order book continues to be very strong, much stronger than ever, and it covers very well into 2023. I'm proud to state that most of our models are already sold out, and this is not just for the limited series. all of this was made possible thanks to the following three elements number one our product offer is truly astonishing and now includes v8 and v12 thermal engine as well as v8 and v6 hybrid solution further enriched by the recent unveil of the 296 gts number two the strength of our net order intake that continued over the quarter. Number three, the exceptionally strong performance of the pre-owned business sustained by the economic climate. As part of our recent activities, I would also like to underline the following three key facts. Let's start with the signature of the Memorandum of Understanding with the Italian Ministry of Economic Development in Vitalia and the Emilia-Romagna region. This agreement will focus on industrial projects and research and development activities for new technologies aimed at bringing tangible benefits from an environmental perspective, as well as increasing digitalization. Such projects will further foster our competitive advantage since they will ensure the vertical integration of key components to be handcrafted here in Maranello. The plan will lead to the employment of 250 new IREs, further boosting the territory of Maranello and Modena as a hub for excellence and increasingly attractive to new skill sets required by the automotive industry. Secondly, the Daytona SP3 was awarded with the red dot Best of the Best. This international award once again is a testament to the passionate work of all the Ferrari team. And finally, the Annual General Meeting approved a dividend distribution of approximately 250 million euro representing a 57% increase of the dividend paid per share compared to the prior year. This is combined with our ongoing multi-year share repurchase program to reward our shareholders. Now, let's move to the product excellence and customer activities. In the last few months, We have continued our engagement activities with clients and the media with the 296 GTB, a model that is receiving unanimous praise, giving the utmost level of fun to drive experience, coupled with our innovative V6 hybrid engine. Evidence of such success is the robust order collection, a record level in a quarter if compared to any other model, and it paves the way for the recently unveiled 296 GTS, its Spider version. The 296 GTS marks a further step in our electrification journey and enriches our hybrid offering, now made up of four different models and covering differentiated needs of our customer base. This latest product launch is the fifth cornerstone on our electrification path, after the Ferrari SF90 Stradale, SF90 Spyder and 296 GTB. With the launch of the 296 GTS, we are just one step away from completing the 15 models promised at the 2018 Capital Market Day. And this leads me to the last, but not least, launch. The highly coveted and much anticipated Puro Sangue, a unique and uncompromising Ferrari. at its earth beats the most iconic Ferrari engine of all time, our naturally aspirated V12, celebrating the bloodline of performance, innovation and excellence. I can testify to its outstanding driving experience while I was driving it on the hills here close to Maranello. It has the agility and the fun to drive typical of our sport cars. Believe me, What also thrills me is seeing the Formula 1 racing team competing back at the top, thanks to our talented drivers and F175, which has proved itself to be reliable and up for the highest challenge. It is mine and the whole team's greatest satisfaction to see our hard work starting to pay off. In GT racing, we are consolidating the great performance of last year with several victories already achieved. Important to underline that the motorsport season has just begun and we will continue to fight race by race with ambition and humility. Attention to details, focus and continuous learning will be key as the season unfolds. We are also on track for our return in FIA WC Top Class from 2023 that will have its highlight in the Le Mans 24 Hours, a race where so many great chapters in our motor racing history have been played out. It is a competition that represents another opportunity for us to fight at the highest level while pushing the boundaries of technology on the track to then transfer it to the next generation of Ferrari road cars. Moving to the brand diversification activities, in February we hosted the second fashion show during the Milan Fashion Week presented our new Ferrari fall-winter collection, which received international acclaim. Lastly, I look forward to meeting you in person here in Maranello on June 16, when we will open the doors of our company to analysts, investors and journalists to present the industrial plan for the coming years. The Capital Market Day will allow us the opportunity to articulate our constant drive for innovation, for exclusivity, and for excellence. In June, we will share, with all attendance, our future strategy well grounded on a solid plan. I will now hand over to Antonio, who will review the Q1 2022 result. Thank you, Benedetto.