Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to the Ferrari 2022 Q3 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nicoletta Russo, Head of Investor Relations.

Please go ahead. Thank you, Sharon, and welcome to everyone who is joining us. Today, we plan to cover the Group Q3 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 the Group CFO, Mr. Antonio Picca Piccon. 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. On behalf of everyone at Ferrari, I would like to begin this call by remembering with gratitude Mauro Forghieri, who has passed away. He had such an important impact on Ferrari's history and on motor racing. We will always remember his passion and determination that drove the evolution of our company over the years. With Mauro, we won no fewer than 11 F1 Drivers and Constructors Championship Titles and 5 Endurance Titles. Our thoughts and our prayers are with this family at this sad time. And now let's go to the third quarter. The third quarter has been very, very strong. We've all kept P&L metrics up double digit versus last year. Revenues increased 19%. with shipment up 16%. EBITDA and EBIT were up 17% and 11% respectively. And industrial free cash flow generation was very sound. The very robust financial results we present today are a far more proof of the strength of our business and that's why we revise upward our 2022 guidance on all metrics. The current microeconomic scenario brings new challenges on a global scale. This is true for us and this is true for our partners. Indeed, to guarantee a smooth production, we are supporting our supply chain with tangible measures. Moreover, as we said in the last call, we have taken action on pricing to adequately react to cost inflation, focusing on the following three areas. 1. Price definition of new models 2. Personalization offering 3. Mid-single-digit price increase on selected models and markets Having said that, we continue to enjoy a very strong momentum with a remarkable order intake in the quarters, considering that our clients could order only a few models. Such a positive trend is visible all over the world. Since last time we spoke, a quarter ago, four important events took place, receiving large enthusiasm from our clients. Firstly, the Puro Sangue World Premieres. Secondly, the Cavalcade Classica. Thirdly, Esperienza Ferrari. And lastly, several lifestyle initiatives. Let's start with the world premiere of the Puro Sangue in Tuscany. We hosted 2,400 of our most loyal clients from all over the world at Teatro del Silencio in Laiatico. We promised our clients something new, unlike any others, a true sport car, able to deliver the same driving trails as our most extreme models. and we delivered exactly on that promise, designing and engineering the Puro Sangue as an authentic four-door, four-seaters Ferrari sports car. There was no better reward for the entire team than to see clients wander in front of the Puro Sangue. Their reception was hugely enthusiastic and they praised its performance, the design and driving trails. On performance first, they welcomed our most iconic and powerful V12 engine with a brand new configuration which delivered 725 horsepower. Moving to design, they were surprised to see the roominess on board, Given the compact size, the driving position typical of a sport car, close to the floor and reclined, the welcome door solution, which enables easy ingress and egress, and the electrochromic glass roof that can be added during personalization of their vehicle. Finally, yet importantly, the promise of impressive driving sales Farver & Hansard by the Active Suspension Technology, which makes its debut on this model. We talked about this technology, the FAST, at the Capital Market Day. With all that said, I know you all are curious about how many orders we already have and how long the order book is, but you also know that we do not provide this kind of detail. Trust me, it is unlike any others. It is way above our most promising expectations. And now, after Puro Sangue, let's talk about the second important event of the quarter, Cavalcade Classiche in the Dolomite, featuring 65 vintage Ferrari and their owners from all over the world. The cars paraded through the towns of Trentino Alto Adige, emboting key moments in Ferrari's 75-year history. This unique event is designed, on one side, to bring owners together to share authentic and memorable experiences, on the other, to create a single community united by its passion for Ferrari. And now, the third event, Esperienza Ferrari. Based at the heart of the Fiorano racetrack, where we created a unique and elegant space for our clients. Over five months, we hosted 1,250 clients, of which more than 40% were new to Ferrari and organized 2,500 test drives to let them feel the driving thrills unleashed by the 296 GTB. As I told some of you during our latest roadshow, this memorable experience is also open to our Ferrari people. And in fact, as of today, more than 500 employees have so far enjoyed it, feeling even more connected to Ferrari. And to conclude on the events held in Q3, after Puro Sangue, after Cavalcade Classiche and Esperienza Ferrari, let's focus on the lifestyle pillars. We launched the first product of our partnership with Richard Miller, an ultra-flat watch Limited 250 units, which embodies the shared values between both brands, combining deep engineering know-how with cutting-edge, state-of-the-art innovation. At the Monza Grand Prix last September, a special Giallo Modena apparel and accessories collection was launched to celebrate our 75th anniversary. and this series of limited edition items in yellow sold out in the online store in a few hours. And lastly, during the last Fashion Week in Milan, our lifestyle team showed on the Teatro Lirico stage the Spring-Summer 23 Fashion Collection, receiving international praise. This new collection centered around the theme of dreams and was inspired by the timeless values that have turned the Ferrari dream into reality. And talking about dreams, let's remember that the Ferrari dream has its roots in racing. And so let's recap together where we stand in the various categories in which we compete, the achievement we have delivered, and the new opportunities ahead of us. Let's start with Formula 1. Last time, when I was talking here, I said we were fighting for the championship. While we have returned to be competitive in these years, we cannot be satisfied with this year's results. Now, we focus on the last races of the season and in preparing ourselves in the best way possible for the next one. In Competizione GT we celebrated the 500th victory of the Ferrari 488 GT3, which makes this model the most successful Ferrari racing car ever. Thank you very much. We hosted our Finale Mondiali at the Imola Racetrack. This was just a few days ago. The feast of high-performance racing celebrated the final event of our Attività Sportive GT together with our clients, fans and employees. 38,000 Motorsport enthusiasts gathered to share their passion which made this moment the perfect stage for the unveiling of the Ferrari Le Mans hypercar. 499P is the name of this fantastic car. This new car marks Ferrari's return to the FIA World Endurance Championships Top class from next season, exactly 50 years after we last fought for outright victory in that championship. And now it's time to update you on our ESG actions that are very important in our plan. In our journey To reach carbon neutrality by 2030, we have already implemented the 1 MW fuel cell installation and the partnership with Climate Seed announced at the Capital Market Day. But in addition to this, the team has been deploying three further initiatives during these months. Firstly, in line with our plans, we are installing additional new photovoltaic panels on the roof of the Maranello buildings, Delivering a total power of approximately 1.5 MW by year-end. This will be operational by the end of next quarter and I will update you in the next call. Secondly, we planted the first trees within our forestation initiative Bosco Ferrari Maranello. The first area of woodland spans 6 hectares. Out of overall 30 hectares to recreate an ecosystem with significant environmental benefits. And we are seeing increasing interest from many Italian municipalities to join this initiative. And this interest makes us very, very proud. Thirdly, in addition to our plan shared at Capital Market Day, we are continuing to streamline our production processes and to identify actions to reduce the energy consumption and CO2 emissions. These efficiencies are possible thanks to the ideas, awareness, and action of the Ferrari people. And here I would like to give you a couple of examples. Thanks to the adoption of new filters in our foundry, we are reducing our scope 3 upstream carbon footprint by 1% and saving more than 250 tons of aluminum per year. No capex required, only brain power. Two, by recovering the heat dispersion in our engine testing process, we reduce the natural gas usage by approximately 2% of our yearly consumption. Finally, let me highlight two important achievements related to our people and the next generation. On one end, we received the confirmation of the Equal Salary Certificate in Italy and North America. This is a testament to our commitment to an inclusive work environment where the importance of merit is guaranteed to attract, retain, and develop the talents that will accelerate Ferrari's innovation in the future. On the other end, we inaugurated the E-Do Learning Center at the Fermo Corners Higher Education Institute in Modena. As you know, promoting education is a core part of Ferrari's ethos and its relationship with the local community. The new laboratory, which aims to help students enter the world of science and technology, is an investment in their futures. And now I will hand over to Antonio to review in detail the Q3 2022 result.