Ferrari N.V. Common Shares

Good day and thank you for standing by. Welcome to the February 2024 full year results conference call. At this time, all participants are in a 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 press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. 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, Sandra, and welcome to everyone who is joining us. Today we plan to cover the Group's full year 2024 operating results and 2025 guidance, 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 risk 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.

Thank you Nicoletta and good morning and afternoon everyone. 24 has been another remarkable year for Ferrari, full of milestones, unforgettable memories, and the continued growth of our brand across each of its three souls, racing, sports cars, and lifestyle. Over the last years, we successfully continued to execute our business plan. We did significant progress in both the development of our infrastructure and our product offering. On the infrastructures, the E-Building, inaugurated last June, is up and running, and we also accelerated the construction of the new paint shop for additional personalizations. On product offering, we are fully in line with our business plan. We launched the three models in 2024. Our supercar, F80, and the two 12-cylinder coupe and Spyder. Our new supercar perfectly embodies our relentless will to progress, and it showcases the significant technology transfer from our racing experience to our sports cars. Indeed, the F80 is equipped with our most powerful engine, a V6 hybrid powertrain directly derived from the 499P that won in Le Mans for two consecutive years. The F80 will be produced in a limited series of 799 examples already fully allocated to our collectors. And it represents the eighth model launched out of the 15 we promised to all of you at the 2022 Capital Market Day. But F80 is not only the pinnacle of our innovation. it also represents a major advancement in our electrification journey now we can claim that our battery modules our electric axles our inverters and electric engines are developed and and crafted in maranello as we told you a couple of years ago the internalization of this know-how represents a big step forward all of this All of this is done in our new e-building, a state-of-the-art infrastructure that grants us forward production flexibility. And flexibility is more crucial than ever in today's current context, and is made even more achievable thanks to the strong relations we have with our suppliers. 2024 has seen excellent financial results with record full-year figures across all metrics. Revenues. Revenues at approximately 6.7 billion euro with double digit growth versus the previous year. Double digit growth also in profitability supported by an extraordinary demand for personalization and favorable product mix with a net profit reaching 1.5 billion euro. And then industrial free cash flow. industrial leakage flow generation surpassing the 1 billion euro threshold for the first time. Everything I've mentioned so far, including the record financial results, has been made possible thanks to the passion, the dedication of all my colleagues, the loyalty of our clients, and the steadfast support from our partners. Grazie to all. The strength of our business is also confirmed by the order book on current models, which is evolved as expected and covers the entire 26 with the Dodici Cilindri coupé and spiders guiding the order intake. The residual values remain sound with different dynamics throughout the region and models. Clearly, we are closely monitoring their trends, and in this respect, on one side, we continue with a wise allocation strategy, and on the other side, we continue to devise even more exclusive Ferrari experiences to further engage our clients. These experiences span from racing days to test drives, from regional premieres to exclusive driving events. This year, we also brought together our three souls, racing, sport car and lifestyle in a series of unforgettable events in Miami during the Grand Prix. Why all of this? Because owning a Ferrari is much more than just owning a car. It's about being part of an exclusive community united by shared passion. The loyalty of our client is testified once again by few interesting data. In 2024, We sold approximately 81% of our new cars to existing Ferrari clients and 48% to clients who currently own more than one Ferrari. The passion is also shared by our wider community and is testified by museums' visitors, which is a new record in 2024. More than 850,000 visitors coming in Maranello and in Modena in our museums. now let's move forward what to expect for this year for 2025 in racing we compete at the top in both formula one and endurance championship we will reinforce the team in the clear winning in sport cars we will further enrich our product offering with six six new model launches Don't ask me anything about the Electrica, the Ferrari model that we will announce in a unique, innovative way, and this will happen in Q4. And throughout the years, we will continue to enhance our client experiences and accelerate the development of our paint shop. And in lifestyle, 2025 will be a year of progress with an array of activities designed to build scale and expand our visibility. All of this All of this is an investment with the ultimate goal being to continue to nurture and elevate our brand. Among our priorities, we will continue to focus on our carbon neutrality goal by 2030. Farber progress was made in 2024 with the shutdown of our highly efficient three-generation plant several months ahead of our initial projection of last capital market day. Since September 24, we are no longer burning methane gas for electricity production and relying increasingly on renewable sources. Thus, in 2025, we expect to reduce by approximately factor three our scope one and scope two emissions compared to the 2021 base years. This again was made possible thanks to the commitment and dedication of all our colleagues, of all Ferrari people. And to reward their achievement in line with the company's strong performance indicators, I'm pleased to announce the yearly competitive award of up to approximately €14,400 for our employees, as well as the confirmation of the Global Equal Service Certification and the newly achieved Italian Certification on Gender Equality. We remain constantly looking forward and before I leave the stage to Antonio, I would like to underline three things about this year. One, 2025 will be another step forward in the execution of our business plan, allowing us to look to the future with stronger confidence since we are even better positioned compared to our initial trajectory. Two, we look ahead with a united focused and well-grounded team ready to embrace the future with enthusiasm and exciting challenges that lie ahead of us. 2025 will also be a great occasion to come together here in Maranello on October 9 for the launch of the Ferrari full electric and to share with you what we envision for our futures. And now I leave Antonio with the results and the guidance for this year.