Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to the Ferrari 2020 Tiki 2 Results Call and Webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to slowly press star 1 and then 1 on your telephone. You will then hear an automated message advising that your hand is raised. Please note that today's conference is being recorded. I would now like to hand over to your speaker, Nicoletta Russo. Please go ahead.

Thank you and welcome to everyone who is joining us. Today we plan to cover the Group Q2 2022 operating results and 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 Picapicon. 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 risk 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. It was a pleasure to meet many of you in person last june during our capital market day here in maranello but before talking about q2 record results let's recap the main points of our strategic plan for 22 26 we talked about our electrification journey the product strategy the industrial strategy financial target and our path to carbon neutrality by 2030. and I will address our commitment to preserve and protect our planet later in this speech. Now, let's start with our electrification journey. We are very well positioned to tackle the technological transition. Electrification represents for us a great opportunity to address customer needs and to continue to realize unique Ferraris. We are continuously advancing in our electrification journey. We started in 2009, 13 years ago, with our experience in Formula One. Then we transferred to our first hybrid model, LaFerrari, a supercar. And more recently, with the launch of four range hybrid models currently in our product portfolio, we extended successfully this technology to higher volume cars. Thanks to this expertise, you can brief really in all our laboratories, and additionally, fueled by our passion, dedication, and willingness to push the boundaries forward, we will unveil our first full electric model in 2025, a true Ferrari that will enrich our product range. It will contain several unique features And it will be a sport car, as every Ferrari, that offers a true Ferrari driving experience. We have also confirmed our product strategy. Based on a different Ferrari for different Ferraristi, a different Ferrari for different moments, it is built to preserve uniqueness while satisfying the different customer profiles. from more adrenaline-seeker pilots to more versatile sports car drivers. We have also committed to unveiling 15 new models from 2023 to 2026 to keep our product range up to the level where Ferrari has always been. This will also include the highly-awaited new supercar, a masterpiece of innovation, design and performance. we reiterated our industrial strategy. In doing so, we will continue to progress staying very focused and disciplined in terms of capital expenditures, adopting a make versus partnership approach. Indeed, we will focus on the key differentiating factors and we will invest on the strategic component that we deem relevant to continue to exceed our customers' expectations in terms of performance and driving trails. On this note, we will invest in our infrastructure, expanding our factory with a new paint shop and an e-building, where the most advanced technologies in the electrification field will be designed, developed and crafted. For what concerns partnership, as it was true in the past, we continue to tailor existing solutions that are available on the market and read them with our own eyes in a way that our cars continue to be unique and authentic. At the Capital Market Day, we also shared with you our financial targets. Built on a solid and comprehensive ground, we target a 9% compounded annual growth rate for our revenues, driven by a strong product pipeline. We have ambitious goals also for our lifestyle activities, where we target to double the 2026 sales compared to pre-pandemic levels, focusing on three things, luxury goods, experiential and collectibles. The business plan also entails an 11% compounded annual growth rate of ABDA and a very strong industrial free cash flow generation. We expect to double it versus what we generated over the past five years. Such solid financial profile allows us to keep investing for our future growth while increasing the shareholders' remuneration with a combination of dividends and share buyback. Dividend payout will be increased to 35% of adjusted net income and a €2 billion share repurchase programme already started. How will we make it? As highlighted at the Capital Market Day, all of this will be made possible thanks to the relentless work of all the women and men in Ferrari, the loyalty of our customers, and the teamwork with our partners, industrial, academic, and commercial. Moving now to today's agenda, let me review the second quarter and another quarter of records. whose strength led us to upgrade our 2022 guidance on all metrics. Number one, record revenues at 1.3 billion euro up 25% versus the prior years. Number two, record EBITDA at approximately 450 million euro. Number three, record EBIT at approximately €325 million. And number four, in Q2, we reached the new record in terms of net order intake, which is astonishing considering that in the quarters, the books were open only on three models of Ferraris. Roma, 296 GTB and 296 GTS, the one we announced last April. This strong trend is visible all over the world. No specific geographical pattern. On top of these four records, we have another three records we'd like to highlight. I'd like to start with our Guinness World Records title for the largest LED illuminated racetrack awarded for the lighting show at Tower Fiorano Racetrack. consisting of more than 1 million LED points and covering more than 110,000 square meters, and all of that was powered with green energy. Secondly, the lighting show concluded the first edition of the cavalcade Icona with the participation of 80 Ferrari Monza, both SP1 and SP2, coming from more than 20 nations. This event celebrated the 75th anniversary of our company. And last but not least, I also had the pleasure to attend the cavalcade Riviera in Monaco, which involved 144 Ferraris from over 30 nationalities, a record in the cavalcade history. Such overwhelming attendance is again testament to the unforgettable experiences that our customers are willing to share along with the pleasure and fun of driving that carry the Prancing Horse name around the globe. On the racing activities, we continue to fight at the top in the Formula One and FIA World Endurance Championship, where the team is working hard for our return in 2023 in the top class with our hypercar. Two fresh news from the last weekend. We unveiled the Ferrari 296 GT3, our latest V6 that represents the future of the Prancing Horse in GT racing. And we just won the 24 hours of Spa-Francorchamps Gold Cup with a team of four women. We also presented our journey towards carbon neutrality by 2030. This was a few weeks ago, and now we are moving from purpose to actions. Here, the four actions we already put in place. One, we have committed to set science-based targets in line with 1.5 Celsius degree pathway. Two, we have installed the new one megawatt solid oxide fuel cell plant at our Maranello facilities. It provides 5% of the energy required for Ferrari's production activities in Maranello, while reducing fuel consumption and emissions. Compared to combined heat and power cogeneration systems, gas requirements are cut by around 20%, with a significant energy saving. 3. We have begun the installation of a new photovoltaic system on the roofs of our Maranello factory buildings, further expanding our independent energy production and reducing our CO2 emissions. Once fully operational, the new solar installation will allow us to self-produce 1.7 GWh per year. We've started a partnership with ClimateSeed, an impact-driven company that is helping us support high-quality, innovative projects focusing on positive climate and social contribution. As a final remark, and looking at what's next, for sure September will be a key month for us with three important events. The Monza Grand Prix, where we will fight again at our home, the world premiere of the Puro Sangue and the third fashion show at the Milan Fashion Week. And now I will hand over to Antonio who will review the Q2 2022 results.