Template Ferrari CMD 2018
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Company Presentation Investor Meetings May 22-23, 2019 Company Presentation May 22-23, 2019 1 SAFE HARBOUR STATEMENT This document, and in particular the section entitled “Financial Overview” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “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 Ferrari’s Formula 1 racing team and the expenses the Group incurs for Formula 1 activities, 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 we operate, 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 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 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; 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 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; ability to ensure that its employees, agents and representatives comply with applicable law and regulations; ability to maintain the functional and efficient operation of its information technology systems, including our ability to defend from the risk of cyberattacks on our 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. Company Presentation May 22-23, 2019 2 COMPANY OVERVIEW Company Presentation May 22-23, 2019 3 FERRARI… PASSIONE ART, CRAFTSMANSHIP, PERFORMANCE AND DRIVING PLEASURE: PURE WONDER Company Presentation May 22-23, 2019 4 A WORLD RENOWNED BRAND . UNPARALLELED HERITAGE . THE EPITOME OF . NET REVENUES OF €3.42 BN FOR ONE OF THE MOST EXCLUSIVITY, SPORTING AND ADJ. EBITDA MARGIN OF VALUABLE AND POWERFUL PERFORMANCE, 32.6% BRANDS(1) TECHNOLOGICAL INNOVATION, ITALIAN STYLE, . STRONG INDUSTRIAL FREE . THE WORLD’S MOST DESIGN AND ENGINEERING CASH FLOW GENERATION RECOGNIZABLE LUXURY EXCELLENCE COUPLED WITH BOTH A PERFORMANCE SPORTS CARS CONSERVATIVE FINANCIAL . SERVING A LOYAL AND POLICY AND SOLID BALANCE . LONGEST RUNNING AND GROWING CUSTOMER BASE SHEET MOST SUCCESSFUL TEAM IN FORMULA 1 HISTORY CONSTANTLY PRESERVING EXCLUSIVITY Note: Company Presentation (1) Source: www.brandfinance.com. According to "Brand Finance Global 500", last release in 2018 May 22-23, 2019 5 FERRARI'S HISTORICAL MILESTONES Starting Icona Project Spin-off and 2018 Launch Milan listing of LaFerrari Ferrari named 2017 as the world’s most powerful brand by Brand Finance 2016 Celebrating Launch of 70 years of Enzo Ferrari 2015 history supercar Launch of F40, the first 2013 supercar by Debut of Ferrari NYSE listing GT cars V8 engine 2008 become production relevant part Scuderia of Ferrari Ferrari begins 2002 business competing in Formula 1 2000s Renewing Debut of in 1950 the GT space Ferrari 166 Inter – Jose Froilan 1987 Ferrari's first Gonzalez 7 Constructors First racing road car wins the first 1970s and 6 Drivers’ car produced race in 1951 1980s world titles by Ferrari over the 1960s decade 1950/ 51 1947 1948 Company Presentation May 22-23, 2019 6 FERRARI’S SHAREHOLDING STRUCTURE Exor is the largest shareholder of EXOR N.V. Mr. Piero Ferrari Free Float Ferrari through its 23.7%. Exor’s voting power is approximately 33.6% ~10 % Mr. Piero Ferrari holds approx. 10.1% of ~24 % ~66 % Ferrari common shares and, as a result of the loyalty voting mechanism, his voting power is approximately 15.5% Ferrari N.V. Exor and Mr. Piero Ferrari have entered 100% into a shareholder agreement which includes, inter alia, a pre-emption right in favor of Exor and right of first offer Ferrari S.p.A. of Mr. Piero Ferrari in the event of transfer of common shares Dual listed company: NYSE (RACE US) and MTA (RACE IM) SHAPED FOR LONG-TERM STABILITY Updated as of February 15, 2019 Company Presentation May 22-23, 2019 7 A NEW MANAGEMENT TEAM READY TO RACE Chairman J. P. Elkann Vice Chairman Chief Executive Officer P. Ferrari L. C. Camilleri Chief Financial Managing Director Gestione Chief Communication Chief Human Sportiva and Team Principal General Counsel Officer Resources Officer Scuderia Ferrari Mission Winnow Officer A. Picca Piccon M. Antoniazzi M. Binotto C. Daneo J. Reeve Chief Technology Chief Manufacturing Chief Marketing and Chief Brand Head Officer Officer Commercial Officer Diversification Officer of Design M. Leiters V. Regazzoni E. Galliera N. Boari F. Manzoni Company Presentation May 22-23, 2019 8 EXCEEDING CUSTOMERS' EXPECTATIONS Company Presentation May 22-23, 2019 9 BUILDING OUR FUTURE PRODUCT RANGE SPORT GT SPECIAL ICONA SERIES Company Presentation May 22-23, 2019 10 THE MOST COMPLETE PRODUCT RANGE EVER FERRARI CARS STAND OUT FOR THEIR EXTREME PERFORMANCE, DISTINCTIVE DESIGN AND STATE-OF-THE-ART TECHNOLOGY ROAD CARS RANGE MODELS SPORTS GRAN TURISMO V8 V8 V12 V8 V8 V12 F8 Tributo 488 Spider 812 Superfast Portofino GTC4Lusso T GTC4Lusso SPECIAL SERIES MODELS ICONA FUORISERIE AND ONE-OFF V8 V8 V12 V12 V8 V8 488 Pista 488 Pista Spider Monza SP1 Monza SP2 Ferrari J50 P80C TRACK CARS FERRARI CHALLENGE THE XX PROGRAMME RACING CARS V8 V12 V8 488 Challenge FXX K EVO 488 GTE/GT3 Company Presentation May 22-23, 2019 11 PRODUCT PORTFOLIO BROADENING SHIPMENTS BREAKDOWN 2018 -2022E 2018 SHIPMENTS BY PILLAR 2022E SHIPMENTS BY PILLAR (Units) (Units) -% ICONA < 5% ICONA 4% > 5% 32% SPECIAL GT (1) SPECIAL SERIES SERIES < 40% GT 64% SPORT > 50% SPORT GT EXPANSION OFFERING UNTAPPED OPPORTUNITIES Company Presentation Note: (1) Special Series figure includes also LaFerrari Aperta hypercar May 22-23, 2019 12 ENRICHING THE FERRARI DNA PERFORMANCE DRIVING EMOTIONS VERSATILITY & COMFORT PICTURE: GTC4Lusso sulla neve PUSHING OUR OWN TECHNOLOGICAL BOUNDARIES Company Presentation May 22-23, 2019 13 FERRARI ARCHITECTURE Product Specification Architecture Engine V12 vs. V8 vs. V6 Hybridization Yes vs. No Powerunit Gearbox Traction 2WD vs. 4WD NEW Rear Mid Engine FERRARI Seating 2 vs. 2+ vs. 2+2 vs. 4 PRODUCT RANGE Body style Coupè vs. Spider vs. ”Purosangue” Powerunit Gearbox Clearance Low vs. High Front Mid Engine HIGH FLEXIBILITY BASED ON 2 ARCHITECTURES Company Presentation May 22-23, 2019 14 TECHNICAL FOOTPRINT: THE NEW FERRARI RANGE SPORTS GRAN TURISMO DRIVING EMOTIONS PERFORMANCE VERSATILITY & COMFORT ENLARGED FOOTPRINT IN ALL DIMENSIONS Company Presentation May 22-23, 2019 15 TECHNOLOGICAL AND PERFORMANCE LEADERSHIP High-revs engine KERS(1) Carbon fiber chassis Aerodynamics, DRS Traction control systems Turbo engine RACING KNOW-HOW CONSTANTLY TRANSFERRED TO ROAD CARS Note: (1) Kinetic Energy Recovery System Company Presentation May 22-23, 2019 16 UPCOMING FERRARI PRODUCT LINE UP .