Fy 2020 Results
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FY 2020 RESULTS MARANELLO 2.2.2021 SAFE HARBOR STATEMENT This document, and in particular the section entitled “2021 Guidance”, contain forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “remain”, “on track”, “successful”, “grow”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, “guidance” or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group’s ability to preserve and enhance the value of the Ferrari brand; the success of the Group’s Formula 1 racing team and the expenses the Group incurs for its Formula 1 activities, the impact of the application of the new Formula 1 regulations (both financial and technical) progressively coming into effect from 2021 and 2022, the uncertainty of the sponsorship and commercial revenues the Group generates from its participation in the Formula 1 World Championship, including as a result of the impact of the Covid-19 pandemic, as well as the popularity of Formula 1 more broadly; the Group’s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; Group’s ability to preserve its relationship with the automobile collector and enthusiast community; changes in client preferences and automotive trends; changes in the general economic environment, including changes in some of the markets in which the Group operates, and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; competition in the luxury performance automobile industry; the Group’s ability to successfully carry out its growth strategy and, particularly, the Group’s ability to grow its presence in growth and emerging market countries; the Group’s low volume strategy; reliance upon a number of key members of executive management, employees, and the ability of its current management team to operate and manage effectively; the performance of the Group’s dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components and raw materials; disruptions at the Group’s manufacturing facilities in Maranello and Modena; the effects of the evolution of and response to the Covid-19 pandemic; the effects of Brexit; the performance of the Group’s licensees for Ferrari-branded products; the Group’s ability to protect its intellectual property rights and to avoid infringing on the intellectual property rights of others; the ability of Maserati, the Group’s engine customer, to sell its planned volume of cars; the Group’s continued compliance with customs regulations of various jurisdictions; the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to its products; the challenges and costs of integrating hybrid and electric technology more broadly into Group’s car portfolio over time; product recalls, liability claims and product warranties; the adequacy of its insurance coverage to protect the Group against potential losses; the Group’s ability to ensure that its employees, agents and representatives comply with applicable law and regulations; the Group’s ability to maintain the functional and efficient operation of its information technology systems, including the Group’s ability to defend from the risk of cyberattacks, including on its in-vehicle technology; the Group’s ability to service and refinance its debt; the Group’s ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; labor relations and collective bargaining agreements; exchange rate fluctuations, interest rate changes, credit risk and other market risks; changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which the Group operates, including possible future bans of combustion engine cars in cities and the potential advent of self-driving technology; potential conflicts of interest due to director and officer overlaps with the Group’s largest shareholders and other factors discussed elsewhere in this document. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB. February 2, 2021 2 PROVING RESILIENCE 2020 results exceeded full year guidance on all metrics driven by record fourth quarter results: EBITDA(1) at €1,143M, margin at 33.0% and solid Industrial FCF(1) of €172M despite Covid-19 pandemic 2021 guidance targeting a strong rebound Successful digital unveilings of Portofino M, SF90 Spider and 488 GT Modificata Ferrari ranks A- according to Carbon Disclosure Project Note: (1) Refer to notes to the presentation in the Appendix February 2, 2021 3 COVID-19 IMPACTS ON 2020 CARS AND BRAND SPARE PARTS FORMULA 1 ACTIVITIES ENGINES 7-week production Racing calendar Lower royalties Further reduction in suspension, partially reduced to 17 races engine supply to recovered, leading to Reduced in-store traffic Maserati deliveries down 10% vs. PY Lower commercial and sponsorship revenues Lower museum and Lower rental revenues Delays in the vs. 2019 theme parks visitors from other Formula 1 industrialization phase racing teams of SF90 Stradale New Technical Execution delays Regulations postponed Reprioritizing projects from 2021 to 2022 ensuring long-term success February 2, 2021 4 MODELS PRESENTED IN 2020 February 2, 2021 5 FY 2020 HIGHLIGHTS SHIPMENTS(2) NET REVENUES (UNITS) (€M) FY '20 9,119 FY '20 3,460 -10.0% -8.1% FY '19 10,131 FY '19 3,766 EBITDA(1) EBIT (€M and margin %) (€M and margin %) FY '20 1,143 33.0% FY '20 716 20.7% -10.0% -21.9% FY '19 1,269 33.7% FY '19 917 24.4% ADJ. DILUTED EARNINGS PER SHARE(1)(3) INDUSTRIAL FREE CASH FLOW(1) (€) (€M) FY '20 2.88 FY '20 172 -22.4% -74.6% FY '19 3.71 FY '19 675 Note: (1) (2) (3) Refer to notes to the presentation in the Appendix February 2, 2021 6 NET REVENUES AND EBITDA(1) QUARTERLY EVOLUTION NET REVENUES (€M) 1,069 984 940 932 915 888 927 571 Q1 Q2 Q3 Q4 2019 2020 EBITDA(1) (€M) 372 333 311 317 314 311 330 124 Q1 Q2 Q3 Q4 2019 2020 Note: (1) Refer to notes to the presentation in the Appendix February 2, 2021 7 FY 2020 – SHIPMENTS(2) SHIPMENTS BY REGION(4) SHIPMENTS BREAKDOWN (FY 2020 VS. FY 2019) Total shipments decreased 10.0% vs. PY: (FY 2020) EMEA -1.6% V8 (53% vs. 48% PY) • Covid-19 pandemic impact with gradual 76% production catch-up in H2 2020 AMERICAS -19.8% • Ferrari Monza SP1 and SP2 delivered as (25% vs. 29% PY) originally scheduled • F8 family ramp up offset 488 Pista family approaching end of lifecycle • Global distribution of 812 GTS V12 • Deliveries of SF90 Stradale and Ferrari 24% Roma started in Q4 2020 • Ferrari Portofino phased out SPORT & • Mainland China, Hong Kong and Taiwan SPECIAL REST OF APAC MAINLAND posted lower shipments due to sales SERIES +1.3% CHINA, GT 74% 24% (17% vs. 15% PY) HONG KONG advance in 2019 AND TAIWAN -45.5% • Deliberate geographic allocation driven by (5% vs. 8% PY) phase-in pace of individual models ICONA 2% STRONG ORDER BOOK WELL BEYOND 2021 Note: (2) (4) Refer to notes to the presentation in the Appendix February 2, 2021 8 NET REVENUES BRIDGE FY 2019 – 2020 (€M) Net revenues reported -8.1% Net revenues at constant currency(9) -8.9% 3,766 3,793 27 3,455 3,460 104 104 5 (122) 538 541 (47) 85 84 -4.1% (150) (19) -24.0% -27.8% 391 390 198 198 -18.3% 151 151 2,926 2,950 2,828 2,835 (6) (8) FY 2019 FX hedges FY 2019 FY 2019 w/o FX Cars and spare Engines Sponsorship, Other FY 2020 at constant Change in FX 2019 FY 2020 hedges parts (5) commercial and currency 2019 (9) vs. 2020 & FX (7) brand hedges FY 2020 Cars and spare parts Engines Sponsorship, commercial and brand Other • Cars and spare parts: lower volumes and their personalizations, but more Ferrari Monza • Engines: lower shipments to Maserati and rental revenues from other Formula 1 racing teams • Sponsorship, commercial and brand: shortened Formula 1 calendar and lower in-store traffic and museum visitors • Other: reduced sports-related activities and Moto GP cancellation at the Mugello racetrack • Currency: positive impact, mainly USD Note: (5) (6) (7) (8) (9) Refer to notes to the presentation in the Appendix February 2, 2021 9 EBIT BRIDGE FY 2019 – 2020 (€M) 27 944 130 917 6 (38) (126) 705 11 716 (211) Margin Margin 24.4% 24.9% Margin Margin 20.4% 20.7% EBIT FY 2019 FX hedges EBIT FY 2019 w/o Volume Mix / Price Ind.