Ferrari N.V. Common Shares

Welcome to everyone who is joining us. Today we plan to cover the Group's full year 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 Group CFO, Mr. Antonio Piccapicon. All relevant materials are available in the investment 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, and good morning and afternoon to all of you. We just came back from San Francisco. why why is this opening chart showing the transamerica building of san francisco with the red tip and the bright light on the dome well it was exactly this the building where we have been showing to journalists from all over the world the interiors of the ferrari lucha this is this is the name of our visionary new full electric sports cars It testifies to Ferrari's determination to go beyond expectations, to imagine the future in two days, because leading means illuminating the path ahead, and Luce embodies that mindset. We picked this place for three reasons. The first one is because of the tight link between San Francisco and Italy. It was that building, this building, It was the headquarter of Transamerica, a company founded by the Italian Amedeo Peter Giannini, that was also founder of Bank of America. And this building is located in Little Italy in San Francisco. Second, because of the closeness to our partner La From, whose headquarters is just a few steps away from the Transamerica building. And the last one, the connection with the name of our Ferrari Luce. Indeed, the crown jewel that you see at the top of the building is a strong 6,000 watt light that turns on only on special occasion. And this was definitely a special occasion. Everyone, everyone over there appreciated a lot of the specific focus on this second step of the Ferrari Luce reveal. So that all, all the innovation could be properly valued and understood. 2025 has been a remarkable year for our company. It has been a year of consistent execution and a year of new beginnings, a year of new commitments and a year of strong innovation during which we launched the six new sports cars, a clear testament to our horizontal product diversification and technology neutrality strategy. This included the long-awaited Ferrari Luce, which marks a new chapter in our history and allows us to look confidently toward the future. So let's go in order. 2025 marks the conclusion of our previous business plan. We were a financial target, including share-by-back plan, achieved one year ahead of schedule. And it marks also the outline of our new strategic plan. On October 9, at our Capital Market Day here in Maranello, we shared with you our plans for the future, underlining once more the uniqueness of our brand. And we presented all the initiatives designed to drive our brand's success till the end of this decade and beyond. In sports cars, in 2025, on top of the Ferrari Luce, We have further enriched our product lineup with five new models, encompassing internal combustion engine and hybrid powertrain. Just think about the eight-cylinder Ferrari Amarci, a blend of elegance and power, the hybrid high-performing 849 Testarossa Coupe and Spiders, and the hybrid 296 Speciale and Speciale Aperta, a new benchmark for driving trails. Clients are at the center of what we do, and they represent the most important asset of our business model. Indeed, client-centricity starts with the craftsmanship and quality of our products. Continuous through the high level of tailoring we are able to offer, it comes to life in the unique experience we design and deliver for our clients all over the world. Our client-centricity approach also resulted in the reintroduction of a more physical interface, a steering wheel with mechanical buttons, which leads to an enhanced driver experience. Indeed, we believe that humanism of technology is key for all our sports cars to deliver an enhanced experience for our clients. And this is also evidenced by the interiors of our Ferrari Luce. In racing, the 499P hypercar secured us the 2025 FIA World Endurance Championship. Ferrari won both the World Manufacturers' and Drivers' titles, 53 years after our last world title and after only three years since our return to the top class of endurance racing. I was in Bahrain with the team and I will always remember the emotion of winning such championship. This is a demonstration that when we in Ferrari work united and cohesive, we can achieve extraordinary results. In lifestyle, 2025 has been a year of solid progress and commitment to provide our clients with an exceptionally luxury experience. Client activations. continued to be successful and a critical driver for engagement and acquisition. And also the growing desire for experiences is confirmed by new attendance records at our museum. In 2025, the museum that we have in Maranello and Modena welcomed almost 900,000 visitors. What we achieved together with all our stakeholders is also translated into our strong financial results, reaching new records across all metrics. One, revenues over 7.1 billion euro. Two, double-digit growth in EBIT, which reached over 2.1 billion euro. And three, an industrial cash flow generation surpassing 1.5 billion euro. everything everything i've mentioned so far has been made possible thanks to the passion and dedication of all the colleagues in maranello in modena and all over the world and to reward their achievements and as a direct reflection of the company's performance a strong alignment with its people i'm pleased to announce the yearly competitive award of up to 14 900 euro for all for our employees in italy The solidity of our business is underpinned by demand dynamics and the visibility we have. The momentum for our brand remains strong with a solid order book, which extends toward the end of 2027 and the net order intake supporting far more visibility, notwithstanding the persistent uncertainty in the global environment. In addition, residual values are stable and solid as evidenced by the recent auctions which achieved strong valuations they keep on being for us a structural foundation of value and brand discipline and now now let's look ahead to 2026 and let me outline our priorities for this year in sports cars a key focus will be the complete introduction of the ferrari lucha in our product range in san francisco we made far more progress with the reveal of interior concepts that offer a tangible insight into the design philosophy behind the model, where innovation meets craftsmanship and cutting-edge design. You can read many positive comments of journalists from all over the world who were with us, but there is one in particular I will always remember. He said, you have blown all of us away and you couldn't have selected a better name for this car and a better place for it. In May, the journey will culminate with the third step, the world premiere of Ferrari Luce. We selected Rome, May 25, as the day for the final reveal of Ferrari Luce, as on the same day in 1947, the Ferrari 125S, The first Ferrari of our founder secured its first victory with driver Franco Cortese, who, by the way, said, if you were used to four and six cylinders, these 12 cylinders felt like an electric motor. It revs very easily. And beyond the completion of an unveil of Ferrari Luce, in 2026, we will continue to enrich our product offering with a fourth four exciting model launches on the industrial side the construction of new paint shop will continue as planned and all our sports cars will be tested on the vortex in racing here we confirm our commitment and effort in the world endurance championship with our 499p hypercars in formula one Building on the lessons learned from a tough past season, we face the challenge posed by the new regulation with unity and confidence in the team. We step into this new phase with a very clear mindset to be realistic, to be disciplined, and to improve continuously. In 2026, we will also continue to progress in our sailing adventures. With Hypersail, we are preparing a revolutionary boat for an unprecedented new sporting arena. Our boat will touch water before year-end. In Lifestyle, in 2026, we will continue to execute our strategy with consistency and sophistication. Here, the team will be focused on the opening of two new flagship stores in iconic locations. in London in the first part of the year, in New York in the second part of the year, conceived as immersive backdrops for client activation and designed to further enrich the Ferrari offering of products and experiences. On the financial side, Antonio will be very clear about our target for 2026. Let me emphasize that 2026 represents a further milestone in our journey toward 2030, another year of growth, which will mark continued progress in line with the ambition presented at our capital market day. We look ahead with discipline that is required in the current context and with confidence in the long-term opportunities that lie ahead of us. And now I hand over to Antonio to review the fiscal year 2025 year result. Thank you.

Grazie Benedetto and good morning or afternoon to everyone joining us today. In 2025, we posted solid growth, expanded our margins, and kept on investing in our future while navigating the complexities of today's world. All our business dimensions positively contributed to growth. Within sports cars, the overall mix continued to improve compared to the prior year, despite the gradual phase out of the Daytona SP3 and allow us to manage the US status evolution, limiting its dilutive impact. We grew our revenues from racing thanks to new partnership and leveraging the extensive work on both the composition and contribution of our sponsors. For lifestyle, the growth space was the right one as we continue to invest on its development. In Q4, a cost base lower than anticipated and a better product mix drove us to exceed our 2025 guidance. The cost base was further improved by an R&D government grant received before year-end and reduced racing expenses related to the fourth position in the Formula One 2025 championship ranking. Finally, it's worth reiterating that we reached the 2026 financial targets outline at the Capital Markets Day of 2022, one year in advance, along with the conclusion of the 2 billion euro share buyback program. In 2027, we gave an overview of our shipments in 2025, which were deliberately kept flat year over year, and our product portfolio evolution as we entered 2026. To be noted that in the year just ended, the 12-cylinder family ran DAP and reached a global distribution. The SF90XX family reached its peak, and the Daytona SP3 concluded its limited series run in Q3, while the first few units of the F80 were delivered in Q4. We anticipated in the last earnings call that in the second half of 2025, we started a significant changeover of models, which will be evident over the next quarter. Indeed, this year, we have seven new models, a record number, which enter the production and distribution phases and will shape the pace of our deliveries and their geographic allocation throughout 2026. Namely, the families of the 296 Speciale and the A49 Testarossa will take the place of the 296 and the SF90 families, while the Amalfi will succeed the Roma. In addition to that, the F80 has started its ramp-up phase and the Ferrari Luce will begin its deliveries in Q4. On page 8, the net revenues bridge shows an 8% growth versus the prior year at cost and currency. This translates into a 7% growth, including the headwind from currency, mainly related to the US dollar and the Japanese yen. The increase in cars and spare parts was driven by the richer product and country mix, as well as higher personalizations partially offset by lower deliveries of the Daytona SP3. Personalizations accounted for approximately 20% of total revenues from cars and spare parts and were particularly relevant for the SF90 XX family and the Puro Sangue, driven by the adoption of carbon and special paint. Sponsorship, commercial and brand also had a relevant increase thanks to higher sponsorship and the improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula One ranking. Other revenues were positive and driven by sport related activities and financial services. Moving to page nine, the change in EBIT is explained by the following variances. Volume contribution was substantially flat with the slightly positive change being due to spare parts. Mix and price was visibly positive thanks to product and country mix supported by Americas, increased personalizations and higher sales of the 499P Modificata. In detail, regardless of the task comparison base and the phase out of the Daytona SP3, the product mix was strong and sustained by the higher end of our product offering with the SF90XX and the 12-cylinder families. Industrial costs and DNA were both lower, partially upset by higher racing and sport car innovation expenses. SG&A increased as a result of higher racing expenses and brand investment, as well as of our organizational and digital infrastructure development. Other was also positive, mainly thanks to racing and lifestyle activities. Percentage margins strengthening the year, despite dilutive impact of the increased US import duties and the headwind from the US dollar and the Japanese yen devaluation, with EBITDA margin of 38.8% and EBIT margin at 29.5%. Turning to page 10, our industrial pre-cash flow for the year surpassed 1.5 billion euro, an increase of roughly 50% versus last year. This was supported by the increase in profitability and a positive change in working capital, thanks to the collection of FAT advances. A partial offset came from capital expenditure, focused on product and infrastructural development, with the latter being mainly represented by the ongoing construction of the new paint shop and the completion of the new e-vort extract. And net cash interest and tax payments, reflecting the evolution of the patent box regimes. The remarkable industrial free cash flow generation for the year allowed us to increase the shareholder remuneration by roughly 30% to over 1.3 billion euro between dividends and share purchases. Moving to page 11, we outline our 2026 target. We expect 2026 to be another year of consistent growth based on the following assumptions. On sports car, we will execute our planned model changeover through the year, which will lead to a further positive product mix supported by the F80 and new models ramp up, regardless of the lower deliveries of the SM90 SX family and the 499P Modificata. On a comparison basis with 2025, we anticipate a stronger product mix variance in the second half of the year. Personalizations are currently expected to stay around 20% of cars and spare parts revenues. The evolution of sponsorships and lifestyle activities will further support the top-line growth. The increased investment in developing the brand and the lifestyle retail network, as well as racing and digital transformation expenses, will drive higher SG&A. And finally, depreciation and amortization will also be higher in line with the start of production of new models. As to the bottom line, we expect the effective tax rate to be around 23%, as we keep on benefiting from the current patent box regime only. The underlying assumption for the US dollar exchange rate is of about 120 against the euro, resulting in a headwind compared to 2025, including edges. The industrial pre-cash flow generation will be sustained by our profitability, partially obsessed by capex slightly higher than in 2025. Today's strong results testify the uniqueness of our business model and the flexibility inherent in it, which continue to provide us with strong visibility and confidence in our future, despite the ongoing challenges posed by the global scenario. Thanks for your attention, and I turn the call over to Nicoletta.