Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to the Ferrari third quarter 2023 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 need to press star 11 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to your first speaker today, Nicolette Rousseau, Head of Investor Relations. Please go ahead.

Thank you, Nadia, and welcome to everyone who is joining us. Today, we plan to cover the Group Q3 2023 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 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 two of today's presentation. And the call will be covered by this language. With that said, I'd like to turn the call over to Benedetto.

Grazie Nicoletta and thank you everyone for joining us today. Before we begin, I would like to thank all the women and men of Ferrari for their outstanding work, all our clients for their continuous trust in our brand, and all our partners, suppliers, dealers and sponsors with whom we have continued to strengthen our relations. In the current macroeconomic context, we are continuing to execute our business plan in line with the trajectory outlined last year during our capital market day and Q3 was once again a quarter full of achievements. Three are the key messages we want you to focus on. 1. Record Q3 financial results sustaining our greater confidence towards year-end guidance. Product and infrastructure development are well on track, in particular on the electrification side with the full electric Ferrari in prototype phase and the e-building proceeding as planned. Continued strong bred momentum, further fueled by two new model launches the 296 Challenge and the 409P Modificata and outstanding event attendance in Italy and in the United States. So let's start with financial results and the business performance of our company. Q3 was a record quarter with all key metrics showing a double digit growth versus the previous year. For the first time, the revenues were above 1.5 billion euro. 24% up versus the prior years. With the shipment, 9% up. All geographic regions grew in the first nine months. EBITDA, about 600 million euros, and EBIT, over 420 million euros, were both up about 40%, driven by product mix and personalization. And last but not least, the industrial tickish flow generation was more than €300 million. These results are further proof of the strength of our business and the increased visibility towards the end of the year led us to revise upward the full year outlook. The vitality of our business is also confirmed by the current order book, which remains at highest levels across all geographies and models, covering the entire 2025. And before you ask, I can already tell you that in the next few months, we do not expect the order book to continue to grow since all models are substantially sold out, but one, the Roma Spider. Last week at the dealer annual meeting, I spent one full day with dealers from all over the world, and I received a very positive comment on the market sentiment. And by this, I mean throughout, from products to client interest and to brand experiences. And again, anticipating one of your questions, I would like to underline that during the dealer annual meeting of last week, I specifically spent time with our dealers in mainland China, which confirmed that the traction of the brand continues to be very strong. We are also making progress on the future product pipeline. All projects, our own truck, S-Planet. And in particular, I'm excited about the full electric Ferrari, now a prototype in testing mode. I had the pleasure to see and try it, and unfortunately, I cannot tell you more. You have to be patient, and as you know, this is part of the desirability of our brand. I am also very proud of how the e-building is progressing towards the inauguration expected in June next year. exactly two years later after our capital market day. After finishing the walls, we started already to install the equipment to produce the selected strategic component, and by Q1 2024, we will finalize the assembly line of the electric engine and e-axles. Talking about our product offering, last week, we unveiled two new standing models, both inspired by our racing DNA. In fact, the recent Finali Mondiali at our Mugello racetrack provided the ideal stage for the unveiling of the latest two additions to our portfolio. The first one is the 296 Challenge. It is an ICE car that makes full use of the experience and expertise gained by the company in the field of international GT racing. The result? is a car in several respects very close to the 296 GT3, which debuted in January 2023. And the second is the 499P Modificata. It is a strictly limited series truck car and the most high-performance closed-wheel car ever offered for gentlemen driver use and already fully allocated. We are the only brand offering its clients the possibility to drive the newest racing car only six months after the debut on the race track in Sebring, inaugurating the new Sport Prototipi Clienti program, which joins the F1 Client program. Once again, the Finale Mondiale, the unique reunion of the Ferrari community to celebrate the final events of our client experience on track, So, the participation of almost 30,000 motorsport enthusiasts among clients, tifosi and employees. And talking about our community, I'm also proud to mention that the Ferrari Gala, which took place in New York in mid-October, this event was an opportunity to highlight our brand's influence on sport cars, on racing, lifestyle and beyond, celebrating also the unique bond and share the values between Ferrari and the US, which goes back to the earliest days of our histories, in the 50s and those strong today. This event was an opportunity to share a series of unique experiences with such a passionate community. During this three-day exhibition, We got opportunity to get 130,000 visitors at New York City's Hudson Yards complex, the one that you are seeing now in your chart, and an exclusive charity auction during the Ferrari Gala dinners, which raised more than 7 million US dollars. And the funds will be devoted to projects supporting education in the community because we believe that giving back is a moral obligation. This quarter, we also had many client experiences on road, among which the Ferrari Cavalcade Classica and the first Ferrari Legacy Tour dedicated to the beautiful F40, which saw the participation of 40 owners of F40 from all over the world. Moving to the racing world, in the World Endurance Championship, After the victory at the 24 Hours of Le Mans, the Ferrari 499P confirmed to be competitive with a podium in Italy, a fourth and fifth place in Japan, and we are looking forward to our return to action for the grand finale of the season with the 8 Hours of Bahrain this coming weekend. In Formula 1, the recent podiums and improvements provide us the boost to prepare ourselves for the next season. Clearly, we need to keep improving and recover our technical gap. And thus, on one side, we are strengthening the team under Fred, and on the other side, we are enlarging our racing manufacturing infrastructure, which will grant us highest development speed and quality. I saw this facility this morning. We are also pleased with the renewal of the multi-year partnership with Puma, who becomes our Formula 1 premium partners, starting from next year. We also strengthened the licensing agreement with Puma for Ferrari branded products, and they became the suppliers of our racing teams and all other racing activities. Continuing on lifestyle, on top of this partnership I just mentioned with Puma, Ferrari showcased its latest spring-summer 2024 looks during the Milan Fashion Week, a powerful collection perceived from many editors as their absolute favorite so far. We also continue to strengthen our presence with successful activation in Pebble Beach and the New York brand event by creating our own pop-up for our clients to increase collection awareness and visibility. we registered a record level of visitors in our museum, reaching over 650,000 visitors since the beginning of January, confirming the strength of the brand and the passion of our community. For your reference, in the whole 2022, we had about 620,000 visitors. So we still have a couple of months to go till the year end. And before leaving the stage, to Antonio, one comment on our important sustainability journey. While many activities continue to run at factory level to address scope one and scope two emission, and we are looking carefully at energy efficiency and recycled material use, we are engaging our suppliers, our dealers, to address scope three emission. Indeed, last week, During our dealer annual meeting, for the first time, we also awarded the most active dealers in reducing their CO2 emissions with the Green Award. And we will keep this Green Award also for the years to come to keep our attention on this topic that is so important for our company. And then now I leave the stage to Antonio to enter into the earnings details.