Ferrari N.V. Common Shares

day and thank you for standing by welcome to the ferrari 2025 q1 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 one and one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question please press star one and one again please be advised that today's conference is being recorded I would now like to have the conference over to your first 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's first quarter 2025 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's CFO, Mr. Antonio Piccapiccon. 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.

Thank you, Nicoletta. Thank you everyone for joining us today. While the macroeconomic environment remains uncertain, with ongoing geopolitical tensions and market volatility, we at Ferrari have a clear view of our priorities and we are continuing to execute our business plan with discipline, focus and four wheels on the ground. The solidity of our business model, along with the relentless drive of all our partners and employees, and the continuous trust of our clients, enable us to navigate the current context. We look ahead with confidence, being vigilant of the situation that surrounds us as we have always been in the last years. In this spirit, we have kicked off this year with good progress on several fronts. Our product offering continues to evolve. Our new paint shop is proceeding according to plans. We won the much anticipated podiums in the World Endurance Championship in Qatar and in Italy, and we launched our new lifestyle collectibles. Most importantly, we have delivered a strong set of financial results. So let's start from here. Q125 saw double-digit growth on all key metrics. led by product mix and the continued solid trend in personalizations. A few key numbers to highlight. One, total revenues reached approximately €1.8 billion, with very few incremental deliveries year over year. This confirms, once again, our strategy of quality of revenues over quantity. Two, we enjoyed a strong profitability with EBITDA close to €700 million. industry cash flow generation reached more than 600 million euros in the quarter. In Q1, we have also witnessed continuous strong brand momentum. Indeed, the order book on current models has evolved as expected and covers the world 2026 with the Dodici Cilindri Coupe and Spyder guiding the order intake. This leads me On to the very positive reception that we have witnessed for hours recently unveiled the two special versions, the Coupe and the Spyder, of the 296 GTB and 296 GTS. These new Ferrari are based on the current Berlinetta in our range, the 296 GTB and 296 GTS. However, they mark forward progress in both performance managers. With hybrid engine, Delivering a total of 880 horsepower, these cars offer an unprecedented driving experience. But it's not just their sheer power that makes them special. They are also distinguished by meticulous attention to detail, technology and technological innovation and refined design. And as is characteristic of our sports cars, they embody solutions derived from our racing cars. The 4990, the 296 GT3, the 296 Challenge and the Formula One. These two newly born are the latest expression of our hybrid offering, and they have been enthusiastically greeted by our clients. One important client of ours paid the deposit to his dealer right after the presentation of last Tuesday, and another one told me, this is truly a brand new car, not just a special edition. It is beautiful, it is very elegant, and highly performing, and I love the new gear change experience. The new physical comments, moreover, on the steering wheel are incredibly interactive. Now it is much more comfortable to drive. As you can see, we are progressing in our product development plan, enriching our offering with exciting new models that allow us to tap into different client needs and desires. But the launch of 296 Speciale coupe and Spyder represents just the first of many milestones to look forward to these years. Among these, as we have told you in February, there will be the unveiling of the much anticipated Ferrari Elettrica. It will be carried out in a unique, innovative way that befits a unique and innovative Ferrari. What does it mean? It means that this is a masterpiece of technology, design, and unique features. It will be an exciting journey of discovery. It is the first of its kind, yet rich in every aspect that makes a true Ferrari. For these reasons, we want it to be fully appreciated in every single detail. And there is no better way to do this than by revealing it step by step. Three will be the unveiling steps. The first one, starting in October, is our Capital Market Day. We will show you the technological heart of the Ferrari Elettrica. And then in early 2026, we will give you a glimpse into the look and feel of the interior design concept. And a few months later, in spring next year, the journey will culminate with the world premieres, where we will reveal these harmonious brands of technology and design. As planned, deliveries of the Ferrari electrical will commence just months after that, in October 2026. Moving on from road to track, let me congratulate the entire team for the historic 1-2-3 in Qatar at the opening round of the 2025 FIA World Endurance Championship. And the following victory at the six hours of Imola, more than half a century after our latest win in Italy. We couldn't have started the racing year in a better way. I was in Imola and I can guarantee you that sharing those unique emotions with a lot of passionate people in Ferrari is an unforgettable experience. In Formula One, the team is more focused than ever on fighting for victories and podium places. The beginning has not been easy. We all know that. On the other side, we are all fueled by deeply rooted grit and relentless determination to continue to progress. But racing is not the only means we have of channeling the world's passion for Ferrari. Here, I refer to our lifestyle strategy, which has made significant progress in recent years. In early April, during the world-renowned Milan Design Week, we presented our new collection of exclusive Ferrari collectibles. Blending timeless Ferrari design with exquisite craftsmanship, these are not mere objects. In fact, each model allows our community of enthusiasts to own and treasure a symbol of the Prancing Horse's history. Speaking of community, We have maintained our focus on giving back to our local area with the Enzo Ferrari Memorial Half Marathon of Italy on March 3rd. We shared this special moment at our home in Maranello with over 10,000 runners from all over Italy and several countries across the globe, which reinforced our community ties and underlined the importance of sport and health. Through the proceeds from registration and partner contributions, the event will leave a tangible legacy on our region, enabling the creation of a new multi-sport field in the Maranello Sport Park by early 2026. Last but not least, I would like to share another remarkable achievement with you. Our e-building, the one that we inaugurated last year, has been awarded the prestigious LEED LEED Platinum Certificate, a globally recognized sustainability rating system. And now I hand over to Antonio to review the Q1 2025 results in detail.

Grazie Benedetto and good morning or afternoon to everyone joining us today. Starting on page five, we show the highlights of the first quarter, which represents another strong start to the year. Please bear in mind that Q125 results were not impacted in any way by the recent introduction of higher tariffs on EU cars imported in the US. Revenues and profitability grew double-digit, with shipments slightly higher than the previous year, and product mix and personalizations as the main drivers of growth. Percentage margins were particularly strong in the portal thanks to the solid business performance, lower DNA in line with model lifecycle, partially offset by higher rating expenses and brand investment. Net profit reached 412 million euro and corresponded to a diluted EPS of 2.3 euro, up 17.9% versus the prior year. Such an improvement also encompassed increased financial charges and the higher tax rate, now projected at 22% in light of the benefits from new patent box regime only. Industrial ticket slow generation was very strong and above 600 million euro. And I will highlight the main drivers later on. On page six, we did dive into our Q1 deliveries which increased by 33 units. This increase was driven by the Ferrari Roma Spider, the 296 GTS, the SF90 XS family, and the Puro Sangue. In the quarter, the 12-cylinder continued its ramp-up phase, and the first deliveries of the 12-cylinder Spider commenced. in line with model life cycles, deliveries of the 296 GTB decreased, as well as the ones of the Daytona SP3, in line with plans. The A790 Spyder approached the end of its life cycle, while the A12 Competizione A phase out. As customary, the geographic breakdown reflects the different product cycles, as well as the company's deliberate allocation strategy. As a result, EMEA and Americas were up versus the prior year, representing three-quarters of our total shipments. The rest of APAC was almost flat at 18%, and mainland China, Hong Kong, and Taiwan reduced their share to 7%. On Phase 7, the next revenue bridge shows a remarkable double-digit growth, up 12.2% versus the prior year at constant currency. The increase in cars and spare parts was driven by the richer product and country mix, as well as higher personalizations. Personalizations accounted for more than 19% of total revenues from cars and spare parts, just a couple of decimals higher than last year's current exchange rate, mainly supported by Daytona SP3 full carbon and ESF90 XX family. Sponsorship, commercial, and brand increased thanks to new sponsorship, among which the HP title partnership of Scuderia Ferrari, which was signed in May 24, and therefore provides the quarter with an easy comp, and lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula One ranking. Currency, net of edges in place, has a positive net impact in the quarter. Moving to page eight, The change in adjusted EBIT is explained by the following variances. Mix price strongly positive thanks to the enriched product mix sustained by the deliveries of the SF90 excess family, the 12-cylinder and the seven units of the 499P modificata. The increased contribution from personalization and the positive country mix supported by the Americas. Let me remind here that throughout the year, the enrichment of the product mix will be less reliant than the Daytona SP3 and rather sustained by special series and range models, along with few initial deliveries of the F80 in Q4. The remaining variances were due to substantially flat industrial energy expenses, largely driven by higher racing and innovation activities, but lower DNA in line with model life cycles. Higher DNA, reflecting racing expenses and brand investment, as well as our continuing organizational development. And finally, other was positive, mainly thanks to new sponsorship, partially offset by the comparison with the prior year's release of car environmental provision in the US. Lastly, we had a positive net impact from currency. Percentage margins strengthened in the quarter with EBITDA margin at 38.7% and EBIT margin above 30%, also benefiting from the lower DNA. Turning to page 9, our industrial free cash flow generation for the quarter was strong at €620 million and reflected the increase in profitability and the positive change in working capital provision and other, mainly supported by the initial collection of DFAT advances and certain non-recurrent cash proceeds related to the signing of the new Concord Agreement, partially offset by capital expenditures. Net industrial debt was 49 million euros at the end of March, reflecting the short-purchase program executed in the quarter. As a housekeeping note, please bear in mind that in the second quarter we are required to pay our income taxes and the net financial position will reflect the dividend distribution of approximately 530 million euro and the 2025 euro bond repayment for roughly 450 million euro, both filing due during this month of May. Moving to page 10, we confirmed the 2025 guidance with the 50 basis points reduction risk on EBIT and EBITDA margins flagged as of March end when we updated our commercial policy for the U.S. market following the introduction of higher import tariffs on EU cars. Clearly, we remain vigilant on the global business environment and we are mindful of the many changes occurred in the last few weeks. Besides the US status that we have addressed with the update of our commercial policy, I refer to the swift change in the foreign exchange rates, mainly the US dollar, which we continue to tackle through our hedging policy that provides us with a partial support over the rest of the year, the potential effect of the overall macroeconomic uncertainty and financial market volatility that we keep on monitoring thanks to the visibility we enjoy. Looking more closely at the development of the year, we continue to project a positive product mix and support from racing revenues and lifestyle activities along with continuous brand investments and higher racing expenses. Given the above, the first half of 2025 is expected to be stronger than the second in line with the development of the mix and the seasonality of SG&A racing expenses as well as DNA. To conclude, Today's strong results represent further progress in the execution of our business plan and in our growth path. Despite the surge of the uncertainty and volatility, our indistinctive business model provides us with solid confidence and the necessary agility for our future. Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Sharon, we are now ready to open the Q&A session. Thank you.

Thank you. To ask a question, you will need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We will now go to your first question. One moment, please. And your first question comes from the line of Susie Tebaldi from UBS. Please go ahead.

Hi, thanks for taking my question. First one, You mentioned about being vigilant in the situation. Can you talk a bit about the differences in trends you are seeing between new customers to Ferrari, existing customers, and your top collectors? Given the very mixed macro picture, are you seeing differences? Of course, your customer is much more resilient than the average customer, but I'm sure there is also some nuances that maybe you can share. And then secondly, on the 296 Speciale, When you say it's limited in time, is it fair to think maybe two, three years? And in terms of volumes, obviously you don't provide volumes, but should we think similar to the 488 Pista?

Okay, ciao Susi. Thanks for the question. So second one, it will be limited in time, yes. It will be a special version, like all special version is limited in time. is uh you you got it well it's similar to the 488 pista okay so this is a question number two question number one as i said and also uh antonio said that we are very vigilant on the situation because as of end of q1 with all the data that we got from all the dealership we don't see any an impact on our order book and on the cancellation trend so we are Let's say the situation is well under control, but we want to be vigilant because we want to see what's happening. We don't see any difference in trend between new client, collector, and let's say new client and repeaters. We don't see any difference. We have been digging in different specific places in the world to see in search of of this difference, but we did not see. I think that when we talk about Ferrari, we should not talk about clients. We should talk about single clients. Each one has its own specificity, so it's always difficult to find a pattern. We look for that because we have a lot of nice tools now of data analysis, but we don't see any specific pattern.

Thank you. Thank you. Your next question comes from the line of Henry Cosman from Barclays. Please go ahead.

Yes, thank you so much. Good afternoon, everybody. Could I please ask about seasonality between Q1 and Q2 within the H1? Just conscious that over the last couple of years, Q1 had been quite a bit weaker than Q2 and wondering if that could be similar again or if we're expecting more stable that's probably one for Antonio and perhaps one for Benedetto on the U.S. Do you have any elevated industries at all in the U.S. from potentially pre-shipping ahead of the tariffs? And do you envisage any impact on the volume cadence at all going forward in the course of the year into next year? Q1 was obviously pretty strong in the U.S. Do you expect anything at all there in terms of paving? Have you seen anything at all in terms of order cancellations at all in context of the tariffs? And if I can squeeze a third one very quickly, if you could just confirm how many Daytonas you shipped in Q1 and how many you have left for Q2 and Q3. Thank you so much.

Thank you, Henning. I'll take the second one and the first one Antoni will elaborate. So we don't see, we have all the data, we deal it by dealers, obviously, from all over the world, and we have a specific focus on the U.S. We don't see any specific trend, actually. We don't see any impact on the tariff. But despite this, as we said, we remain vigilant because, let's say, we need to be careful to catch if there is any small signal picking up. uh i can tell you also that last week i mean i was in in florida in that specific case okay and the market is very strong it's been always very strong and it continues to be very strong with a strong demand across all our models so i think that as soon as we have some difference for sure will make you aware but we don't see any any impact also because I think that at least from what we hear from several clients, new and repeaters, that they appreciated our two things of our new commercial policy over there. Number one, that we've been clarifying right away what we intend to do. And two, that we contribute. Okay, we contribute. to this price increase. We don't ask them to pay all the bill, but we were very clear telling that some models will have no price increase, some others up to the remaining up to a maximum 10%. So they appreciated a lot. The way we behave, the way we put them at the center of what we do, and those are the timely communication on the new terms. Talking about Q1 and Q2 vacations.

Directionally, please take Q2 vacations uh lighter than q1 and this is also in line with the fact that during q1 we delivered less than 80 daytona so lower than last year but not that far away while in q2 and q3 the daytona will go down and will be zero in q4 thank you

Thank you. We will now go to the next question. And your next question comes from the line of Steven Reitman from Bernstein. Please go ahead.

Yes, good afternoon. You made the comment that the order book is being led by the 32-cylinder. Could you comment on the personalization trends you're seeing right across the board, but also specifically on that vehicle and also the Piero Sangue? particularly with the W2C already having a quite elevated price against the ATOR Superfast that it succeeded. And secondly, looking at the bridge on the EBIT bridge, and you specifically pointed out in the other line that the $18 million reflected the sponsorship, the HP offset by some other factors. Does that give us sort of like a reasonable idea of the run rate of the HP sponsorship deal, which suggests this in the region of about 100 million or so?

Thank you, Stephen. I take the first one and the second, Antonio. So what we see, the personalization of the 12-cylinder, both the 12-cylinder and the Puro Sangue, is in line with what we've seen before. So we see a strong traction. on the three main factors that are driving our personalization. It means some functional components and then on the painting and on the carbon finish. I think these are the three trends we see on these cars as we have seen also in the past. I can tell you that the cars I mean, the client are looking more and more at personalization, and we are preparing ourselves to be able to offer them more and more personalized offers. So this is for the first question. The second one.

Yeah. With respect to the EBIT bridge, the $18 million comes basically from the net of The positive that is related to the sponsorship of Scuderia and on that portion, obviously the fact that we had the HP sponsorship and the IBM sponsorship coming in represent the bulk of it together with the increase in the positive from the commercial revenues related to the F1. Um, and in, as a negative, sorry, and there is another point, which is the easy comp with last year when we had the CO2 penalties released less than 10 million, uh, on the negative side, in terms of comparison, there is a sort of seasonally seasonal effect in comparison with the expenditure of last year on, on whack. So on the racing, not related to formula one. Does it help? Thank you.

Yes, thank you.

I'm sorry. Going forward, I mean, in general, it's difficult to project overall, but I do not expect to be a big contributor. The positive one should be related to sponsorship. Then we had some positive last year that should help in terms of adding Q2 and will fade away during the rest of the course.

Just, Stephen, in the letters, to further clarify, as a reminder, we signed HP last year in April. So clearly, after that time, it started an easy comp. So it's not the right project.

Yeah, you cannot do it. Sorry, I didn't get this question, this part of the question.

Thank you. Your next question comes from the line of Michael Burnetti from Evercall. Please go ahead.

Hey, guys. Congrats on a great quarter. Thank you. Could you just clarify the exact number of Daytonas that you had in the quarter? I know you said it was below 80. But then if I just, I guess, Antonio, if we back out the first quarter results from the year, it looks like as I look at the rest of the year, there's a scenario where EBITDA margins could be anywhere from down 10 or 15 basis points to up 50 basis points. I'm just curious, what are the inputs and scenario that could lead to EBITDA margin being negative in the rest of the year? And then, Benedetto, on the EV launch, as you think about it, you described it as a masterpiece of technology. You know, Ferrari has always been, buying a Ferrari has always been a relationship with a timeless car. And I'm curious if you think about the EV and the focus on technology and how technology ages differently than luxury cars. How do you protect the timelessness element of a Ferrari? And you think about what drives residual values of these cars over time as you move into cars with a bigger technology component.

Thank you. Thank you, Michael. I think the first one, Antonio, will elaborate and take the second one about the . I would like that you agree with what you said, but one thing, that it's not a focus on technology. We focus on the emotion we deliver to our clients. So when we inaugurated the eBuilding one year ago, we said, and when we also, we presented the F80, the supercars, we made it clear, we made it clear that all the strategic components of electrified cars, hybrid, and in the future electric, will be done in-house in a way that we can guarantee what you are telling that is this timeless feature of our cars. I think this is important and that's the reason why also we did this investment because we want to have the flexibility and the ability to maintain and to offer our clients the technologies that are needed for the future when it comes to the inverter, the battery, the axle, all these things that are distinguishing features of of electric cars. And then consider also that our electric car, our Ferrari electric car will not be, it's much more than digital and electric and you will see. So this is the part, the first, the second part, and then Antonio is about the number.

The precise number of Daytona, they were 77. And with respect to the EVDA margin down during the course of the year, we projected on the basis that the mix will be lower. And this goes hand in hand with the reduction of the number of Daytonas and the development of the mix of the rest of the range. And the increase in expenditure particularly as G&A and R&D and partly related to the development of our racing activities.

Okay. Thanks a lot, guys. I appreciate all the detail.

You're welcome. Thank you.

Thank you. Your next question comes from the line of John Murphy from Bank of America. Please go ahead.

This is actually John Beck on the line for John Murphy. Just first of all, I wanted to touch on the tariffs. I know you cited about a 50 basis point EBITDA-EBIT margin risk from that. Could you just provide some clarity? I mean, it seems like you're maintaining guidance, but you're highlighting the risks. So do we think about that as the maximum potential impact here, or do you expect to offset it? Any additional clarity you might be able to provide on that front would be useful.

Hi, John. Maybe I didn't answer this one first. Yeah, it's a risk we see. I mean, there might be opportunities to offset it. That's why we described it as a risk. However, it depends on a number of moving parts as of now. So I think the outcome is the one that we have outlined.

And then just my other question, and this is a quick one. If you could just talk about the consumer reception so far for the Dodici Cylindri, that'd be useful. And then also, are you finding demand is consistent across the geographies for that product?

The reception of this car has been very, very good across all the geographies. Clearly, in some geographies, there is more appeal because of the tax impact is lower. For example, the Dodici Cylindri impact, it's a traction. in countries like China is lower because the tax rate is higher. But so far, I mean, we see a good traction with, let's say, in different countries. It goes from Scandinavia to US to Latin America to Italy, I mean, South of Europe. So it's very good traction. Very good.

Thank you. That's all I have.

Thank you. Your next question comes from the line of Monica Bozzio from Intesa San Paolo. Please go ahead.

Good afternoon, everyone, and thanks for taking my questions. I have, I think, three. The first one is on the initial collection from the FAT. Should we expect further impacts across the year? And if yes, Antonio, can you help us model the impact? Because I'm just wondering what's the weight of the collection on the working capital in the first quarter. The second question is on the residual values. You announced pricing actions in USA. How do you see, if any, this could impact on the residual values in USA? Any comments on this would be useful. And the very last, maybe it's a stupid question, but it's on personalization. So you are implementing pricing actions the final price on the value of the imported car and what about uh personalization maybe i missed something are you going to modify also the pricing for personalization for those cars that uh would be delivered in u.s this will be antonio taking care of all the three questions yeah

Initial collection on S80. I think it has been important in Q1. We do not expect the same impact over the rest of the quarter. Also because there are deposits that have been anticipated the previous year that will fade away. So another positive, but not of the same size is expected around Q4. So the portion of working capital is related to one that's got a big bulk in Q1, and then there will be a lower one in Q4. Residual values, pricing action in U.S. In principle, it could drive residuals up. We'll see. That's the potential expectations. About personalization, well, last year we intervened already on personalizations in terms of price increases. um we haven't taken i mean when we talk about the the overall price increases we refer to the price increases of the car okay all the wrong thank you welcome thank you your next question comes from the line of thomas besson from kepler sofa please go ahead thank you very much

I'd like to come back to somehow Stephen's question on the non-care revenues. Historically, I think you were suggesting they were dilutive to profitability, and it feels like they might become even relative to profitability. Could you comment on that concept for Q1 and for the rest of the year? The first question. The second, I understand what you say about the timeline of deposits Q1, Q4. but you've already generated half of the guide for free cash flow. So should we think that your guide is for the fully conservative or an important part of the 620 was effectively working cap? And lastly, just a housekeeping question. Could you confirm the tax rate for the year and broadly speaking, the direction for CapEx for the year? Thank you very much. Antonio. Yeah.

The third question, the tax rate, as I said before, approximately 22%. And this is because this year we'll enjoy the benefit only on the new patent box regime. Last year, just to remind you, we had the overlap of the new and the previous one that brought the tax rate down. Industrial free cash flow, given the Q1 generation, is the guidance conservative. We are never conservative. So, well, in principle, there might be chances in that direction. But as I said, there are still several moving parts. Non-car revenues impact the activities for Q1 and the rest of the year. In terms of development of the sponsor, I think, all of the agreement that we the relevant agreement is are in place already now so i do not expect this to change in in dimensionally significantly over the course of the year obviously the comparison with last year um maybe a bit more uneven but the run rate is the one that we expect similarly for for lifestyle CAPEX guidance between 900 and 950. That's probably the best guidance I can give you so now.

Thank you very much.

You're welcome.

Thank you. Your next question comes from the line of Tom Narayan from RBC. Please go ahead.

Hi, yeah. Thanks for taking the question, Tom Narayan, RBC. The first one I have is, you know, at the 22 Investor Day, you guys shared a target of a powertrain split of 40-40-20 with 40% being full electric of models by 2030. I know you guys may update this on October 9th, but given the first Ferrari electric is only going to start deliveries in October 2026, is there enough time to get to 40% of models being full electric just three years later, and then the next question, and we've had some time now with pure Sangue sales, just curious if we have data now that suggests residual values are holding up, and also any demographic information, you know, who's buying the pure Sangue, is it more, you know, is it different than the regular Ferrari customer, female versus male, daily users versus collectors, et cetera? Thank you.

Okay, so thank you. Thank you, Tom. First one, 40-40-20. Remember that during the Capital Market Day, when we provide the split of the PU, the powertrain, we always talk about our offers, not the split of sales. You remember? Because when we talk at that time, our roadmap to offer any kind of traction, to the client, we said, we want to leave the freedom of choice in the end of the client. So that split was a split of the model we were offering. In terms of update, if any, I'm afraid that you have to wait, let me say, in October this year, where we will provide you and all the colleagues a full update. The second one is about the residual values and the demographics of Puro Sangue. Well, the demographics of Puro Sangue clients, I think it's not, let's say we have a new client. Yes, we have in the range of 10% of new client. This was what we planned. Posterior, I think we could have been pushing more, 15, 20%. This is a lesson learned for us for the future. But coming also in terms of male and female, what we see is that a lot of times is the you know, you have the name of the repeater buying the cars and the partners, female that is driving the cars. And then also it's true that with this car, usually people do a little bit more kilometers than others. In terms of residual values, I think that there is a lot of traction for this car. We are collecting order also for end of 27, delivery 28. And there are some areas, for example, where these cars are turned within one week the pre-owned, and there is an increase on the sticker price. So I think that today there are, this year is important because we have some models like Puro Sangue entering 27, 28, and some other models, 26, 27, 28, some other models that are ending in 2026. Got it.

Thank you. Thank you.

Thank you. Your next question comes from the line of Martino D'Ambroghi from Equita. Please go ahead.

Thank you. Thank you. Good evening. Good morning, everybody. Changing the subject, my first question is on Greater China because deliveries are decreasing since second quarter 23, quarter after quarter. So what is the right or the ideal size that you see for this region going ahead? and the second is on the warranty program for for hybrid customers how is progressing the choice of customers to get your warranty program and the last one i clearly understand you will probably not provide any answer but am i right in assuming that the increase in prices that you announced in the u.s could worth roughly a hundred million euro on a on a consolidated basis. Thank you.

I think the second one, one second, because the last one, Antonio, will take care of it. I think the first two. The hybrid, we are very precise. It's close to 550 contract for the hybrid warranty programs. Clients start to appreciate it because they see a value. And also, I believe... In the first communication, we were not so clear. Now we are improving the clarity of the communication. So we are around the 550 contract about this hybrid warranty. China. China, on one side, we see the region now is moving. On the other side, we always said that the mainland China plus Taiwan will be in the range of eight to 10%. And let me say today, the curve we are having mostly 12 uh 12 cylinders are having are a little bit too much impacted by a tax and this one of the cars we will launch this year is meant also to fit better the portfolio for that region so that's the pre the picture on on the china for the last one um

It will not provide that level of granularity. We said up to 10% for the model that will be updated, but we reserve the right to intervene, and we're actually moving already on that.

Okay, thank you. Thank you.

Thank you. There are no further questions. I will hand the call back to Benedetto Vigna.

Thank you. Thank you all for the time and for all your questions. The strong Q125 result and the continuing desirability of the Ferrari brand fuel our confidence for our year ahead and also for the future. I wish you good morning or afternoon and thank you again for your attention.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.