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spk02: 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.
spk00: 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.
spk07: 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.
spk08: And good morning or afternoon to everyone joining us today. Let's start on page seven with the highlights of this first quarter. A very strong start actually to the year with two or even three digit growth for all our KPIs. Shipments were 3,251 units, up more than 17% versus prior year. Group net revenues were €1.186 billion, up the same versus prior year. EBITDA reached €423 million, up 12.5% year-over-year, with an EBITDA margin of 35.6%. This was lower compared to the extraordinary highs of last year. since the exceptionally strong product mix of Q1 2021 in terms of gross margin, recovering from 2020, was further emphasized by still restrained costs. EBIT was €307 million, up 15.4% year-over-year. Net profit came in at €239 million, up 16.4% versus prior year, resulting in a diluted EPS of €1.29 compared to €1.11 in Q1 2021. The industrial free cash flow generation for the quarter was strong at €299 million, supported by the collection of the advances for the Daytona SP3 and the A12 Competizione A. Turning to page 8, you can see the details of the Q1 shipments. From now on, we'll show the breakdown of our shipments into ice and hybrids, as we already noted that the previous split, based on the number of cylinders, has become less and less meaningful. The product portfolio in the quarter included eight thermal engine models and two hybrids, representing 83 and 17% of total shipments respectively. As per our programs, Our hybrid offer will be further enriched by the start of deliveries of the 296 GTB in the second quarter, while we continue to serve the impressive order book recorded for all our current range, including certain ICE models whose lifecycle has been extended. Deliveries in the quarter were driven by the Ferrari Roma, the SF90 family, as well as the Portofino M. In the quarter, we also commenced the first delivery of the A12 Competizione, while those of the Ferrari Monza SP1 and SP2 were lower than the prior year and reached the end of the limited series run. Quarterly shipments reflected the deliberate geographical location in response to port conjecture experienced in the first months of the year, which explains the decrease of our deliveries to America. On page 9, you can see the walk of our group revenues. At constant currency, they grew by 16.6%. Revenues from cars and spare parts were up 18% net of the different exchange rates, driven by volumes, positive product mix, and pricing, together with the contribution from personalizations. Revenues from personalizations were higher than the prior year in absolute terms, sustained by volumes, while substantial in line, around 17%, in proportion to revenues from cars and spare parts. Engine revenues were down 19%, given the lower shipments to Maserati, whose contract is approaching the expiration in 2023. The increase in sponsorship, commercial, and brand, up more than 17% at cost and currency, was essentially attributable to the better prior year Formula One ranking and the contribution from brand-related activities. This was partially offset by lower sponsorship. Other revenues were mainly related to other supporting activities. Currency, including translation and transaction impacts, as well as foreign currency edges, had a total positive contribution of €8 million. mostly related to the US dollar and the Chinese yuan. As we move to page 10, let me review the change in our EBIT bridge, explained by the following variances. Volume was positive for 59 million euro, reflecting the shipment increase. Mixed price variance was also positive in absolute terms for 13 million euro, driven by the product mix, supported by the SF90 family and personalizations. This was just partly offset by the increased weight of the Portofino M and the Ferrari Roma, as well as the lower contribution of the Ferrari Monza. Please remind that we expect the product mix variance to become negative as the year unfolds, given the phase-out of the Monzas in Q1 and the phase-in of the Daytona SP3 in 2023. Industrial and R&D expenses grew €18 million in the quarter due to energy and some material cost increases, as anticipated by Benedetto, as well as higher depreciation and amortization. as E&A were negative by 14 million euro, mainly reflecting definitely more lively communication and marketing activities and our lifestyle events, as well as the company organizational development. Other was substantially flat. In essence, these reflect the better prior year Formula One ranking and higher contribution from vendor related and other supporting activities, offset by lower sponsorship, reduced engine shipments to Maserati, and various other expenses also accrued on the basis of current year ranking. The total net impact of currency was positive for 2 million euro. As a result of what I just mentioned, EBIT reached 307 million euro, up 15.4% versus the prior year, with an EBIT margin of 25.9%. Turning to page 11, the remarkable industrial free cash flow generation of this quarter, determined by the strong profitability and the already mentioned advances on the Daytona SP3 and the A12 Competizione A, within our wider definition of working capital, was offset only in part by the inventory increase related to the project volume growth for the year, as well as by capital expenditure of €132 million. the pace of spending is in line with our plans to contain capex at around 800 million euro in 2022. in the quarter the capitalization ratio of our development expenses was approximately 38 percent in line with the prior year net industrial debt as of the end of march 22 was 136 million euro compared to 297 million euro at december 2021 barely reflecting the significant free cash flow net of €135 million paid in the context of our share purchase program. As anticipated by Benedetto, the Annual General Meeting approved the dividend distribution of approximately €250 million to be paid in a couple of days, on May 6. On page 12, we confirm the guidance for 2022, which firmly targets solid growth on all metrics, and robust cash generation amidst all the challenges that this dramatic start of the year is posing in several respects. I think this completes our review for the quarter. As usual, I thank you for listening and very much look forward to seeing you soon in Maranello at our Capital Market Day. I now turn the call over to Nicoletta.
spk00: Thank you, Antonio. We are now ready to start the Q&A session. Stephen, I'll turn the call over to you. Thank you.
spk02: Thank you, Nicoletta. As a reminder, to ask a question, you will need to press star zero on your telephone. To withdraw your question, please press the pound or hash key. Please stand by while I recompile the Q&A roster. The first question comes from . Please go ahead, sir.
spk13: Hi. Thanks for taking my question. The first one on the guidance, one very simple question. Your target range implies an EBIT margin of about 23% even at the higher end in the next nine months. Isn't that slightly too conservative despite the higher R&D and weakening mix? And the second question on the , I just want to make sure I understood it correctly. Can you confirm that there are no more months due for deliveries in Q2? It was completely phased out in Q1. And then the last one on the Puro Sangue. Thanks for the extra color on the engine, the V12 engine. But can you maybe give us your reasoning behind the decision to launch the Puro Sangue without a hybrid system? Also, given that this is a model that we had hoped that would improve your position in China. Yeah, thank you.
spk07: Okay, thank you Giulio. I start with the second question and then Antonio will comment on the first one. So, the PuroSanQui will be a naturally aspirated V12, our iconic model. We have been testing different options, but then I think it was clear that to celebrate the bloodline of the performance, innovation, experience, the V12, and the experience and the product performance it is able to deliver has been the right solution to push to the market. So there has been a clear result of our testing and also our discussion with the market. For the Monza, I can reaffirm what Antonio said, that we stopped the production and the sales of Monza in Q1. For the other part of the question, Antonio, you may help on this direction.
spk06: Yeah.
spk08: Hi, Giulio. The guidance that we provided on EBIT is based on the fact that DNA will accrue over the course of the year, not linearly, but based on the start of production of our new model. So it's basically growing during the course of the year.
spk13: Okay. And so to follow up on the guidance, we also saw the US dollar appreciating quite significantly. Is that already reflected in the guidance you have?
spk08: Yeah. The reason why we are not basically making significant changes is because, as you know, we are following a foreign exchange hedging policy. So there might be opportunities around that, depending on how much remains free from hedging. But we prefer to stay cautious on that because it's unpredictable what happens to the currencies.
spk13: Understood. Thank you. And see you soon.
spk02: Thank you. And the next question comes from . Thank you very much. Please go ahead, sir.
spk03: Thank you. Good morning, good afternoon, everybody. The first is always on the guidance. If I take your volumes in Q1 and then multiply by 4, which is quite usual in normal years in the past, I get something in the region of 13,000 units. So, first question, is it reasonable, this figure, as the underlying volumes in your full year guidance?
spk08: Hi, Martino. Maybe I take this one. As you know, we do not comment on shipment. I think our revenues is really what is driving our results, so we are focusing on that one. We may add that, obviously, due to the significant order book
spk03: um shipment will remain high over the course of the year yes okay the second part of the question even if it's not 13 000 in any case it is a significant growth for just one year and if i remember correctly your output capacity is uh 15 16 000 so if you maintain the same pace also knowing that the puro sangue will will be all additional We don't know the amount of volumes, but it would be additional. So probably you have another two, three years' time before needing to either add a shift or add capacity, just to know what you're thinking about it.
spk07: That's a good question, Martino. Thank you. I think you will have a clear answer to all your deductions, let's say the 16th of June. What I can tell you is that also for all the cars we make, we will keep clear in mind the exclusivity. You remember well the capacity that we have is in that ballpark. I can tell you that we are not planning investment to increase that numbers.
spk03: Okay, and the last question is a more specific question on prices. During your introduction remarks, you mentioned that you already revised upward prices last year in order to set raw material and other cost inflation, and you are also revising prices this year. Could you provide us just a rough indication of the amount of price revision?
spk07: The price increase that has been already applied is in the range of 2%. This is already, I mean, delivered to the market. It's on the process. Some results are already in Q1, some others are coming.
spk03: Okay, so I was wrong in understanding there was one last year and another one coming this year.
spk07: No, no, you are right. I mean, there are two things. There are the model that have been already, the old model, let me say, and the new model. The old model is the price increase ballpark I gave you. For the new model, there is a different price increase that is, let me say, different from the 2%. So you understood well. We are talking about two different things.
spk03: Yeah, okay. Thank you very much.
spk07: Thank you.
spk02: And the next question comes from Susie from UBS. Please go ahead, ma'am.
spk01: Thank you for taking my question. So my first one would be on the demand, which you already indicated continues to be extremely strong. Your order books are at record highs. But can you just give us some more comments qualitatively? I mean, are you really not seeing any impact from all the macro pressures that we are seeing? Maybe by geography, is there anything at all that's maybe worth flagging, or is this high-end consumer really spending the same as before or even more? And then my second question would be on China. We saw a strong increase in volumes in China, which is said to be in line with the demand there. I was wondering which models are seeing the most success in China. When it comes to the Chinese market, is this demand concentrated in few key areas or how do you see that? It will be very interesting to get some color. Thank you.
spk07: Okay, I start from the second, Susi. So in China, we see we have very good traction on the eight cylinders, ice and hybrid. So I think this is really a good summary of what we see in China. When it comes instead to the trend of the demand, I mean, clearly we are watching carefully. We expect a different pattern also because we basically, several models are sold out. I'm talking about the F8, I'm talking about the Portofino, about H12. So we expect a different pattern also because we deliberately selected to sold out and to terminate some models.
spk01: Okay, thank you.
spk02: And the next question comes from George from Goldman Sachs. Please go ahead, sir.
spk12: Yeah, thank you for taking my questions. The first question is on the Pura Sangue again. So very excited to see this and thank you for the incremental details. When you think about the pricing of the Pura Sangue and its exclusivity, Obviously, if we look at some of the other high-end utility vehicles in the market, we're seeing huge wait lists and cars being sold on very quickly in the second-hand market at very large premiums. So when you think about the pricing of the Pura Sangue, do you plan to price it at a level where Ferrari is the main beneficiary for the strong demand rather than sellers in the used car market? And are you also taking any additional measures control which customers are prioritized on the product. The second question I had was just on the deposits. I don't know if you could confirm what percent of deposits on the Competizione A and the Daytona have been taken during the quarter. Thank you.
spk07: So I start, George, I take the question on the Puro Sangue. Antonio will take the first one. So on the Puro Sangue, I would say that clearly we have a price in mind. We cannot shave, unfortunately. But we want to preserve always also for this car. We keep in mind the exclusivity. The exclusivity is one strategic guideline. We push, we keep pushing. And we want to make sure that this stays well grounded in the DNA of all the products we produce. we we develop so prosanque will also be consider this dimension of exclusivity in terms of as i said price and and customer base we have clear ideas and let's say we will address properly at the right time i instead for the advanced payment another question antonio you may help yeah hi george um the net impact of
spk08: Contribution of the Daytona and the April competizione is in the region of 80 million. Obviously, this is a net impact, meaning the cash inflow has been higher than that, and half of it is due to the Daytona. And then we have a negative, which is the amount not collected on the Monza because already collected in the previous year. So it's basically a net between 120 million euro cash in and 30 million less collections on demand. Hope it helps. Great. Thank you.
spk02: And the next question comes from Stefan Whiteman from Societe Generale. Thank you very much. Go ahead, Stefan.
spk11: Thank you very much. Good afternoon, gentlemen. I have a couple of questions. First of all, could you give us the number of Monza SP1, SP2s that were sold in its final quarter for this year? Secondly, could you comment a bit about what you said about the order book? You've mentioned very strong orders for the F8, which obviously is in its last selling period. When will this be finished relative to being replaced by the 296 GTB and obviously the GTS? And finally, on sponsorship for the Formula One team, I understand obviously you lost or Mission Winnow has become like a co-sponsor but is no longer the main headline sponsor. Can you comment on what's happening on negotiations for replacing it? And I suspect that given the strong performance of the Formula One team, the negotiations are getting easier in terms of finding a main sponsor. Thank you.
spk07: Okay, so I start from the sponsors, the other way around. So from the sponsor, as we said in the call, we see that we have a wider set of partners that are willing to work together with us. And this basket of partners goes from technology to banks to also new players of a new economy. So I would say that we see a positive trend over there. And we become more and more appealing as we win more, if you can easily understand, more and more Grand Prix. If you want, the summary is that it's true that we lost a big sponsor, but it's also true, I mean, the contribution of the big sponsor is not so big like in the past, but it's also true now that we access to a more diversified set of sponsors. Then I commented about the second part, was the order book. The order book for the eight cylinders, the sport eight cylinder, the F8, goes till end of next year's. But we start to see already an overlap with the 296 GTB that, as I said before, is the highest ever traction in terms of interest, in terms of order book from many customers. Just to complete before ending over to... to Antonio basically we have also a strong traction and we are sold out on the on the 12 cylinder on the H12 basically for additional two years the key point I would like to leave here is that in Q2 we already start to ship the 296 GTB
spk08: Antonio, you want to comment? The last information was the number of Monza sold in Q1, and the number is 40.
spk11: All right. Thank you. And just, sorry, if I could just put in one final one. Also in the Piero Sangue, do you envisage that the vehicle will only be powered by V12s, or do you think that in the future also it might take alternative, different powertrains as well with a lower number of centimeters?
spk07: I don't understand. We do not comment on this, sorry.
spk11: Thank you. We cannot comment.
spk07: Sorry about this, Steven. Thank you.
spk02: And the next question comes from . Please go ahead, sir.
spk04: Thank you very much. I also have a couple of questions, please. Firstly, I would like to confirm that your first quarter was probably the strongest in terms of profitability and free cash flow for the year?
spk08: Yes, Thomas. This has been record quarter on all key metrics. Yes, you're right. Absolute terms.
spk04: But it's fair to assume that the next three quarters are probably going to be a bit softer because you're still going to benefit from volumes, but less from the mix you had in Q1, right?
spk08: Yeah, this is a fair assumption. This is based on product mix on one end, the fact that we stopped selling the Monza at the end of the first quarter with not yet the Daytona that is coming in 2023. And also in terms of the cash flow, this is due to the pace of collection of the deposit during the course of the year. The capital expenditure is growing and not linearly during the course of the year.
spk04: Thank you very much. I wanted to get back to Formula One. If we assume that your current strike continues and that you win the championship, which I think would be great, Could you just remind us what would be the impact on your 2023 accounts, broadly speaking, because this would be a substantial improvement?
spk08: It will be a positive. I can't quantify that one because it's also based on the EVDA of the overall circus.
spk04: Okay. Would you say that this would be a substantial double-digit median figure for your 23 bid day if you manage to win the championship, or it's too much?
spk08: As I said, I prefer not to quantify. Let's assume it's an improvement anyway, which is perhaps not material in our numbers, but still a significant one.
spk04: Thank you. Last quick one, please. You mentioned in your prepared comment that the pre-owned business was very strong. Could you remind us where we can see that in your accounts, please?
spk08: Well, actually, you don't see this in our numbers, or you would see it marginally in our financial services business, but really marginally. I think the reason why we monitor it, though, is because it's very relevant to support the order intake, obviously, in the interest of a number of customers.
spk04: Thank you very much. Thank you.
spk02: And the next question comes from Gabrielle Adler from Citi. Please go ahead, sir.
spk09: Hi, good afternoon. Thanks. There are two questions left on my side. Just coming back to free cash flow, you're very clearly running ahead of the run rate implied by the guidance of about $600 million. So could you provide some more color, please, on your expectations of working capital and capex through the year and the ramp that you expect to see there. And then secondly, on volumes, I appreciate that you don't specifically guide on this, but I think previously you've commented that the first half should be stronger than the second. Could you confirm whether that's still your expectation for the year? Thank you.
spk08: Yeah, sure, Gabriele. I think the first question in terms of the cash flow, In terms of capital expenditure that is basically the main negative starting from the ABDA, we expect it to annually grow up to approximately 800 million euro overall figure. The pace of development though is not linear during the course of the year, it's more exponential. That adds of course in terms of working capital around the year end. So we expect also working capital, including deposits, to be a positive in the year. And the guidance, the overall guidance is for not less than 600 million euro overall industrial free cash flow. The second question, forgive me, is on volumes. whether H1 is better than H2. I would say not necessarily. It's more in terms of quality because of Q1 that includes the sales of the Monza.
spk09: Okay, understood. Thank you very much.
spk08: You're welcome.
spk02: And the next question comes from .
spk06: Hi, everyone, and thank you for taking my question. I have two questions on the Puro Sangre, if I may. First one, if we look at some of your peers in the luxury industry, they faced cannibalization of their GT models after the launch of their SUV. Do you think this is a risk also for Ferrari, as GT models represent almost one-third of your shipments? And the second one, do you have a certain threshold beyond which you will not go for the SUV in terms of volume compared to your total shipments? Thank you.
spk07: I'll start from the second one, Gianluca. we will, as I said, we will stick to exclusivity also for the Puro Sangue. Yes, clearly, we have numbers clear in mind in terms of ratio to total numbers that we want to make as Puro Sangue. Then coming to the second question, I think that different Ferrari for different Ferraristi or different Ferrari for different moments is... is a strategy where you can read the answers to the first question. So we have on the market different models. This has been proving a successful strategy, and we don't see this risk of cannibalization.
spk06: Thank you, Benedetto.
spk07: Thank you.
spk02: And the last question for the moment comes from Evan Silverberg from Morgan Stanley. Please go ahead, sir.
spk10: Hi, it's Adam Jonas from Morgan Stanley. Can you hear me? Yes, we can. Hello. Okay, great. Thank you. Thanks, everybody. So remind us of the technical production capacity for the entire company, body shop, paint shop. You referred to it earlier, but I didn't hear the exact number or range of units.
spk07: Adam, 15,000.
spk10: Thank you. And just as a follow-up, the 250 new hires in Maranello and Modena, where you referred to vertical integration of handcrafted components, That's a lot of employment. That's 5% of your company, not insignificant. Can you tell us what kind of components and technologies that these talented and very lucky individuals will be working on?
spk07: I know you are curious and you would like to have an answer. I think that we will have the pleasure to meet in person in a few weeks, and we will tell you exactly what we want to do, which are the strategic components we want to do in-house. beer with me if i ask you a little bit more patient but sorry adam i know i read all your reports i see but allow us to wait still a few weeks then we meet and we'll explain and we'll show you with a clear presentation i think the the the strategic part that we want to make here
spk02: Thank you very much. I'm showing no further questions at this time. I would now like to turn the conference back to Benedetto. Thank you very much. Please go ahead.
spk07: So I think I want to thank all of you for your time, for your attention this afternoon, and for all your questions. Believe me, this will be the last time I ask you to be patient, to have a lot of answers, because next time we'll be in person, and I will, together with the team, we will reply all the questions. So the first quarter, really, of this, we just closed, represents another strong start. The metrics, as you see, as you have seen, are very good in all respects. And the next, in the Capital Market Day, we really want to outline our strategy for the year to come. And we will take all your questions. And I really am very much looking forward to seeing you here in June in Maranello. So thank you again. Good afternoon. And hope to see you soon. Bye-bye.
spk02: Thank you very much, Mr. Vigna. This now concludes the conference call. Thank you for participating. You may now disconnect.
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