Q2 2017 Results August 2nd, 2017
1 SAFE HARBOUR STATEMENT
This document, and in particular the section entitled “2017 Outlook”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “successful”, “grow”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, 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; the Group’s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; the challenges and costs of integrating hybrid technology more broadly into Group’s car portfolio over time; the Group’s ability to preserve its relationship with the automobile collector and enthusiast community; the Group’s low volume strategy; the ability of Maserati, the Group’s engine customer, to sell its planned volume of cars; changes in client preferences and automotive trends; changes in the general economic environment and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to its products; 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 ability to service and refinance its debt; competition in the luxury performance automobile industry; 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 Group’s ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; 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; product recalls, liability claims and product warranties; continued compliance with customs regulations of various jurisdictions; 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; ability to ensure that its employees, agents and representatives comply with applicable law and regulations; the adequacy of its insurance coverage to protect the Group against potential losses; potential conflicts of interest due to director and officer overlaps with the Group’s largest shareholders; ability to maintain the functional and efficient operation of its information technology systems and other factors discussed elsewhere in this document. 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. Q2 2017 Results August 2nd, 2017 22 RECORD QUARTERLY EBIT
• Solid revenues of €920 million (+13.5%) driving adj. EBIT(1) to €202 million (+29.3%)
• 812 Superfast just launched, waiting list beyond 2018
• Strong success of Ferrari’s client relations activities
• Scuderia Ferrari fighting at the top
• “International Engine of the year” and “Red Dot: Best of the Best” design awarded for the second and third year running respectively
• 2017 Outlook confirmed
ON TRACK FOR ANOTHER GREAT YEAR
Note:(1) Reconciliations to non-gaap financial measures are provided in the appendix Q2 2017 Results August 2nd, 2017 3 Q2 2017 HIGHLIGHTS
Shipments Q2 '17 2,332 Net revenues Q2 '17 920 (units) +5.3% (€M) +13.5% Q2 '16 2,214 Q2 '16 811
Total shipments up 118 units mainly driven by 36% increase in V12 models. V8 substantially in Net revenues up 13.5% (12.8% at constant currencies) line: • Cars and spare parts leading the way with volume and mix Solid performance of the 488 and the California T in its 4th year of • Solid Engines performance, mainly attributable to strong sales to Maserati GTC4Lusso families commercialization and the F12berlinetta • Partially offset by the deconsolidation of the European Financial Services business (November LaFerrari Aperta slightly offset by LaFerrari phasing-out 2016) 812 Superfast yet to arrive on the market F12tdf finishing its limited series run
Adjusted EBITDA(1) Q2 '17 270 29.4% Adjusted EBIT(1) Q2 '17 202 21.9% (€M and +24.1% (€M and +29.3% margin %) Q2 '16 217 26.9% margin %) Q2 '16 156 19.3%
Adjusted EBITDA(1) grew by 24.1% primarily driven by higher volumes, mix thanks to V12, Adjusted EBIT(1) margin increased by 260 bps driven by strong adjusted EBITDA(1) partially offset positive FX and engines to Maserati. Partially offset by higher R&D expenses for innovation, by higher D&A mainly attributable to the GTC4Lusso family and LaFerrari Aperta components and hybrid technology
Industrial free Q2 '17 92 Net industrial Jun. 30, 2017 (627) cash flow(1) debt(1) -36.6% -3.9% (€M) Q2 '16 145 (€M) Dec. 31, 2016 (653)
Industrial free cash flow(1) driven by strong adjusted EBITDA(1), partially offset by tax payments (FY Net industrial debt(1) reduced to €627 million thanks to positive industrial free cash flow(1) 2016 balance and FY 2017 first advance), capex and lack of contribution from advances of LaFerrari generation partially offset by cash distribution of €120 million Aperta Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix. Q2 2017 Results Certain totals in the tables included in this document may not add due to rounding. August 2nd, 2017 4 Q2 2017 – SHIPMENTS BY REGION(2)
Americas +3.0% • USA – up 2% with a strong performance of the 488 family, the GTC4Lusso and the limited edition LaFerrari Aperta. Partially offset by California T (4th year of commercialization), the F12berlinetta (phasing-out) and FF (phased-out in 2016). F12tdf finishing its limited series run. • The GTC4Lusso T yet to arrive on the market
EMEA EMEA: +5.0% Americas (43% vs. 43% PY) • UK – shipments up almost 4% supported by the 488 and the GTC4Lusso families (the GTC4Lusso T just arrived on the (34% vs. 35% PY) market) and LaFerrari Aperta. Partially offset by the California T and the F12tdf. • Double-digit growth in France (+27%) and Italy (+25%) and mid single-digit in Germany (+6%) thanks to the 488 and the GTC4Lusso families • Other European countries up single-digit, while Middle East recorded a decrease due to reallocation triggered by tough market conditions
China, Hong Kong and Taiwan, on a combined basis: -12.5% • China – single-digit growth driven by the GTC4Lusso family, partially offset by the California T (4th year of commercialization) • Hong Kong – slowdown due to Ferrari’s decision to terminate the distributor in Hong Kong in Q4 2016. New dealership fully operational by Q3 2017. China, Hong • Taiwan – up single-digit due to the GTC4Lusso family and LaFerrari Aperta Kong and Rest of APAC Taiwan, on a (17% vs. 15% PY) Rest of APAC: +20.5% combined basis (6% vs. 7% PY) • Japan – shipments grew by over 3% thanks to the 488 family, the GTC4Lusso and LaFerrari Aperta, partially offset by the California T. The GTC4Lusso T yet to arrive on the market. • Australia – strong increase of 81% primarily thanks to the 488 family and the GTC4Lusso which just arrived on the market • Other APAC – robust growth of 37% primarily due to the 488 and the GTC4Lusso families
. SOLID PERFORMANCE OF THE 488 AND THE GTC4LUSSO FAMILIES AS WELL AS LAFERRARI APERTA
Q2 2017 Results Note: (2) Refer to notes to the presentation in the Appendix August 2nd, 2017 5 NET REVENUES BRIDGE Q2 2016-2017
(€M) +13.7% +41.9% +5.6% -19.9% 920 80 30 7 811 26 +13.5%, +€109 million (8) (+12.8% at constant currencies) 34 124 117 101 71
589 669
Q2 2016 Cars and spare parts(3) Engines(4) Sponsorship, Other(6) Q2 2017 commercial and brand(5)
Cars and spare parts Engines Sponsorship, commercial and brand Other
• Cars and spare parts: higher volumes and positive mix led by the 488 and the GTC4Lusso families as well as LaFerrari Aperta along with a greater contribution from personalization programs, pricing increases and FX. Partially offset by the end of LaFerrari lifecycle in 2016 as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. • Engines: strong sales to Maserati more than offsetting the termination of the rental agreement with a Formula 1 racing team • Sponsorship, commercial and brand: higher sponsorship revenues, partially offset by lower 2016 championship ranking compared to 2015 • Other: decrease mostly due to the deconsolidation of the European Financial Services business since November 2016
Q2 2017 Results Note: Refer to notes to the presentation in the Appendix August 2nd, 2017 6 ADJ. EBIT BRIDGE Q2 2016 – 2017(1)
(€M) 23 6 16 197 5 202 23 179 (17) 156 (3) (7)
Margin Margin Margin Margin 21.5%(7) 21.9% 19.3% 21.5%(7)
Adj. EBIT Q2 FX hedges Adj. EBIT Q2 Vol. Mix Ind. Costs / SG&A FX Other Adj. EBIT Q2 FX hedges Adj. EBIT Q2 2016 Q2 2016 2016 w/o FX R&D 2017 w/o FX Q2 2017 2017 Top high end hedges hedges luxury peers(8) Adj. EBITDA Adj. EBITDA Adj. EBITDA w/o FX hedges (7) w/o FX hedges (7) Adj. EBITDA EBITDA 217 240 265 270 Margin(8) 26.9% 28.8% 29.0% 29.4% 33% - 37% • Volume increase of approx. 100 cars (excluding LaFerrari and LaFerrari Aperta) thanks to the GTC4Lusso and the 488 families together with positive contribution from personalization. Partially offset by the California T in its 4th year of commercialization and the F12berlinetta phasing-out. • Positive mix impacted by LaFerrari Aperta, strong V12 performance as well as pricing increases. This was partially offset by LaFerrari that completed its lifecycle in 2016 as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. • Industrial costs / R&D increased mainly due to higher D&A and R&D expenses to support product range and components innovation for hybrid technology. Partially offset by efficiencies on direct material. • SG&A slightly higher than prior year, impacted by recently approved Long-Term Incentive plan, higher costs related to new directly operated stores and costs related to the 70th anniversary. Partially offset by the deconsolidation of the European Financial Services business since November 2016. • FX, excluding hedges, impacted positively mostly thanks to USD, partially offset by GBP • Other decreased due to lower 2016 championship ranking compared to 2015, the termination of the rental agreement with a Formula 1 racing team and the deconsolidation of the European Financial Services business since November 2016. Partially offset by positive contribution from Engines to Maserati. Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix Q2 2017 Results (7) Margins without FX hedges have been calculated excluding FX hedges impact from net revenues, adjusted EBIT and adjusted EBITDA August 2nd, 2017 7 (8) Ferrari’s elaboration on FY 2016 publicly available data on a panel of high end luxury peers NET INDUSTRIAL DEBT BRIDGE(1) MAR 31, 2017 – JUN 30, 2017
(€M) Industrial FCF €92m
270 (21) (627) (578) 15 (120) (82)
(9) (102)
March 31, 2017 EBITDA Net ∆ working Tax paid Capex Other Cash distribution FX and other June 30, 2017 Net Industrial capital and dividends Net Industrial Debt paid Debt
• Net change in working capital: inventory increase driven by the projected volume growth in line with our 2017 outlook
• Tax paid: including FY 2016 tax balance and first FY 2017 tax advance payments
• Other: positively impacted by accruals and reserves related to deferred compensations as well as provisions partially offset by lack of contribution from advances of LaFerrari Aperta
Q2 2017 Results Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix August 2nd, 2017 8 Q2 2017 – CLIENT RELATIONS ACTIVITIES
WORLD TOUR
Indonesia, April 20th – 23rd Spain, May 18th – 21st China, May 28th – 29th Italy, June 8th – 11th
Forte dei Marmi – Maranello Puglia Italy May 5th – 9th June 21st – 26th May 18th – 21st
Q2 2017 Results August 2nd, 2017 9 Q2 2017 – ATTIVITA’ SPORTIVE GT
COMPETIZIONI GT FERRARI CHALLENGE XX PROGRAMMES / F1 CLIENTI FIA WEC Average entries per round Average entries per round 1st - Spa 6 Hours (GTE-Pro) EU 44 (Round 4) XX: 24 1st - Le Mans 24 Hours (GTE-Am) NA 44 (Round 3) F1: 10 VLN APAC 30 (Round 4) 1st - Nürburgring 24 Hours (GT3-Class)
CONTINUOUSLY ENGAGING WITH OUR CUSTOMERS
Q2 2017 Results August 2nd, 2017 10 Q2 2017 – OTHER ACTIVITIES
Licensing • Launch of new “Scuderia Ferrari by Ray-Ban” collection in Montecarlo on May 26th
• New high-end Ferrari products: • Launch of Ferrari “Cockpit” executive chairs with Poltrona Frau at “Salone del Mobile” in Milan
Retail • At the end of June 2017 managing 17 directly operated stores and 30 franchised locations (including 8 Ferrari Store Junior)
Theme parks • Opening of the Ferrari Land theme park in PortAventura with already more than 160.000 visitors at the end of June
Museums • New exhibitions “Ferrari under the skin” and “Rosso infinito” at the expanded and renovated “Museo Ferrari Maranello”
Q2 2017 Results August 2nd, 2017 11 FORMULA 1: FIGHTING AT THE TOP
1st place at the Australia, Bahrain, Monaco and Hungarian GPs
12 podiums so far
S. Vettel 1st in Driver’s Championship @ 202 points Constructor’s Championship
Driver’s Championship 1. Mercedes 357 2. Ferrari 318 1. Sebastian Vettel - Ferrari 202 3. Red Bull Racing Tag Heuer 184 2. Lewis Hamilton - Mercedes 188 3. Valtteri Bottas - Mercedes 169 4. Force India Mercedes 101 4. Daniel Ricciardo - Red Bull 117 5. Williams Mercedes 41 5. Kimi Räikkönen - Ferrari 116
Q2 2017 Results August 2nd, 2017 12 2017 OUTLOOK CONFIRMED
2017 Outlook 2017 Drivers
Shipments (9) Strong contribution from range models (including ~ 8,400 special liveries) and LaFerrari Aperta
Top line growth driven by Cars and spare parts as well as Engines, partially offset by different F1 Net Revenues > €3.3 billion ranking and deconsolidation of the European Financial Services business
Positive contribution from both Volume and Mix, Adj. EBITDA(1) > €950 million partially offset by R&D and SG&A (F1, new stores and 70th anniversary)
Strong adj. EBITDA, partially offset by capex to support continuous product range renewal and Net Industrial Debt(1) ~ €500 million(10) R&D for hybridization, taxes, lack of advances on limited edition supercars and cash distributions to holders of common shares
Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix (9) Including supercars (10) Including a cash distribution to the holders of common shares and excluding potential share repurchases Q2 2017 Results August 2nd, 2017 13 Q&A Appendix
Strictly confidential NOTES TO THE PRESENTATION
1. Reconciliations to non-gaap financial measures are provided in licensing and royalty income the appendix 6. Primarily includes interest income generated by our financial 2. Shipments geographical breakdown services activities and net revenues from the management of the EMEA includes: Italy, UK, Germany, Switzerland, France, Middle Mugello racetrack East (includes the United Arab Emirates, Saudi Arabia, Bahrain, 7. Margins without FX hedges have been calculated excluding FX Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes hedges impact from net revenues, adjusted EBIT and adjusted Africa and the other European markets not separately identified); EBITDA Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; China, Hong 8. Ferrari’s elaboration on FY 2016 publicly available data on a Kong and Taiwan includes, on a combined basis: China, Hong panel of high end luxury peers Kong and Taiwan; 9. Including supercars Rest of APAC includes: Japan, Australia, Singapore, Indonesia and South Korea 10.Including a cash distribution to the holders of common shares and excluding potential share repurchases 3. Includes the net revenues generated from shipments of our cars,
including any personalization revenue generated on these cars and sales of spare parts 4. Includes the net revenues generated from the sale of engines to Maserati for use in their cars, and the revenues generated from the rental of engines to other Formula 1 racing teams 5. Includes the net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated through the Ferrari brand, including merchandising,
Q2 2017 Results August 2nd, 2017 16 STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Product Line-Up (at least a new model launched every year)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 F430 F430 Spider F430 Scuderia California Scuderia Spider 16M 458 Italia
458 Spider V8 California 30 458 Speciale California T 458 Speciale A 488 GTB 488 Spider GTC4Lusso T 612 Scaglietti Superamerica 599 GTB Fiorano 599 GTO SA APERTA FF
F12berlinetta V12 F12tdf GTC4Lusso 812 Superfast Supercars LaFerrari LaFerrari Aperta nd Q2 2017 Results Special series and one-offs not included August 2 , 2017 17 LIMITED SERIES In and out from our portfolio
2015 2016 2017 2018
F12tdf
LaFerrari
LaFerrari Aperta
FXX K(11)
F60 America(11)
J50(11)
nd Q2 2017 Results Note: (11) Models not included in the total shipments’ figure provided August 2 , 2017 18 GROUP SHIPMENTS(2)
+5.3% 2,332 +5.8% 4,335 ~8,400 2,214 4,096 8,014 ~1,150 394 657 327 580 1,098 ~650 140 301 619 160 316
~2,800 1,342 2,687 1,297 774 797
2,035 3,610 ~3,800 953 1,001 1,903
Q2 2016 Q2 2017 H1 2016 H1 2017 FY 2016 FY 2017E
EMEA Americas China, Hong Kong and Taiwan, Rest of APAC on a combined basis
Note: (2) Refer to notes to the presentation in the Appendix Q2 2017 Results August 2nd, 2017 Graphs not to scale. Shipments including supercars LaFerrari and LaFerrari Aperta 19 KEY PERFORMANCE METRICS
Q2 '17 Q2 '16 €M, unless otherwise stated H1 '17 H1 '16
2,332 2,214 Worldwide shipments (units) 4,335 4,096
920 811 Net revenues 1,741 1,486
270 207 EBITDA(1) 512 385
- 10 Adjustments - 10
270 217 Adjusted EBITDA(1) 512 395
68 61 Amortization and depreciation 133 118
202 146 EBIT 379 267
202 156 Adjusted EBIT(1) 379 277
13 5 Net financial expenses 17 14
189 141 Profit before taxes 362 253
53 44 Income tax expense 102 78
28.0% 30.7% Effective tax rate 28.2% 30.8%
136 97 Net profit 260 175
136 104 Adjusted net profit (1) 260 182
0.72 0.52 Basic and diluted EPS (€) 1.37 0.93
0.72 0.55 Adjusted EPS(1) (€) 1.37 0.96
Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix. Q2 2017 Results August 2nd, 2017 Certain totals in the tables included in this document may not add due to rounding. 20 DEBT AND LIQUIDITY POSITION
Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M) Cash Maturities Jun. 30 Mar. 31 Adj. (€M) 2017 2017 FY 2016 FY 2015(12) FY 2015 FY 2014 470 500 4 305 Euro 280 394 318 137 22 10 254 267 4 230 US Dollar 24 59 16 21 1 14 44 102 28 2 500 110 199 199 199 Chinese Yuan 61 66 58 106 106 74 100 Japanese Yen 28 19 37 41 41 27 2017 2018 2019 2020 2023 Other Currencies 30 31 29 17 13 9 Term Loan Bond US Securitizations Other Financial Liabilities Total (€ equivalent) 423 569 458 322 183 134
Net Cash/Net Industrial Debt (€M) Net Industrial Debt (€M)
At Jun. 30 At Mar. 31 At Dec. 31 (€M) 2017 2017 2016 2015 2014 (627) Gross Debt (1,755) (1,870) (1,848) (2,260) (510) Cash & Cash Equivalents 423 569 458 183 134 Deposits in FCA Cash Management Pools - - - 139 942 (1,332) 705 (Net Debt)/Net Cash (1,332) (1,301) (1,390) (1,938) 566 o/w 72% Funded Self-Liquidating Financial 705 723 737 1,141 1,061 securitized(13) Receivables Portfolio (Net Industrial Debt)/Net Industrial Cash (627) (578) (653) (797) 1,627 Undrawn Committed Credit Lines 500 500 500 500 - Funded Self-liquidating June 30, 2017 June 30, 2017 Financial Net Debt Net Industrial Debt Total Available Liquidity 923 1,069 958 822 1,076 Receivables Portfolio
Note: (12) After settlement of deposits on FCA Group cash management pools and financial liabilities with FCA Q2 2017 Results (13) Portion of the Self-liquidating Financial Receivables Portfolio funded through securitizations August 2nd, 2017 21 NON-GAAP FINANCIAL MEASURES
Non-GAAP financial measures
Operations are monitored through the use of EBITDA is defined as net profit before income tax expense, net financial expenses and various Non-GAAP financial measures that depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for may not be comparable to other similarly income and costs, which are significant in nature, but expected to occur infrequently. titled measures of other companies Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as Accordingly, investors and analysts should adjusted for income and costs, which are significant in nature, but expected to occur exercise appropriate caution in comparing infrequently these supplemental financial measures to Adjusted net profit represents net profit as adjusted for income and costs, which are similarly titled financial measures reported by significant in nature, but expected to occur infrequently other companies Adjusted earnings per share represents earnings per share as adjusted for income and We believe that these supplemental financial costs, which are significant in nature, but expected to occur infrequently measures provide comparable measures of our financial performance which then Net Industrial Debt defined as Net Debt excluding the funded portion of the self- facilitate management’s ability to identify liquidating financial receivables portfolio, is the primary measure to analyze our financial operational trends, as well as make decisions leverage and capital structure, and is one of the key indicators used to measure our regarding future spending, resource financial position allocations and other operational decisions Free Cash Flow and Free Cash Flow from Industrial Activities are two of management’s primary key performance indicators to measure the Group’s performance. Free Cash flow is defined as net cash generated from operations less cash flows used in investing activities. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted for the change in the self-liquidating financial receivables portfolio.
Q2 2017 Results August 2nd, 2017 22 RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBIT
Q2 '17 Q2 '16 €M H1 '17 H1 '16
202 146 EBIT 379 267
Charges for Takata airbag - 10 - 10 inflator recalls
202 156 Adjusted EBIT 379 277
Q2 2017 Results August 2nd, 2017 23 RECONCILIATION OF NON-GAAP MEASURES: EBITDA
Q2 '17 Q2 '16 €M H1 '17 H1 '16
136 97 Net profit 260 175
53 44 Income tax expenses 102 78
13 5 Net financial expenses 17 14
68 61 Amortization and depreciation 133 118
270 207 EBITDA 512 385
Q2 2017 Results August 2nd, 2017 24 RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EBITDA
Q2 '17 Q2 '16 €M H1 '17 H1 '16
270 207 EBITDA 512 385
Charges for Takata airbag - 10 - 10 inflator recalls
270 217 Adjusted EBITDA 512 395
Q2 2017 Results August 2nd, 2017 25 RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED NET PROFIT
Q2 '17 Q2 '16 €M H1 '17 H1 '16
136 97 Net profit 260 175
Charges for Takata airbag - 7 - 7 inflator recalls (net of tax effect)
136 104 Adjusted net profit 260 182
Q2 2017 Results August 2nd, 2017 26 BASIC AND DILUTED EPS
Q2 '17 Q2 '16 €M (unless otherwise stated) H1 '17 H1 '16
Net profit attributable to owners 136 97 260 175 of the Company Weighted average number of common 188,953 188,923 188,949 188,923 shares (thousand)
0.72 0.52 Basic EPS (€) 1.37 0.93
Weighted average number of common 189,759 188,923 shares for diluted earnings per common 189,759 188,923 share (thousand)
0.72 0.52 Diluted EPS (€) 1.37 0.93
Q2 2017 Results August 2nd, 2017 27 RECONCILIATION OF NON-GAAP MEASURES: ADJUSTED EPS
Q2 '17 Q2 '16 € per common share H1 '17 H1 '16
0.72 0.52 EPS 1.37 0.93
Charges for Takata airbag - 0.04 - 0.04 inflator recalls (net of tax effect)
0.72 0.55 Adjusted EPS 1.37 0.96
Q2 2017 Results Certain totals in the tables included in this document may not add due to rounding. August 2nd, 2017 28 RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES
Q2 '17 Q2 '16 €M H1 '17 H1 '16
138 204 Cash flow from operating activities 288 316
(82) (90) Cash flows used in investing activities(14) (154) (157)
56 114 Free Cash Flow 134 159
Change in the self-liquidating financial 36 31 34 14 receivables portfolio
Free Cash Flow from Industrial 92 145 168 173 Activities(15)
Note: (14) Cash flow used in investing activities for the six months ended June 30, 2017 excludes proceeds from exercising the Delta Topco option of Euro 8 million (15) Free cash flow from industrial activities for the three and six months ended June 30, 2017 includes Euro 5 million of quick refund to shareholders at August 31, 2017 due to eligibility for withholding exemption Q2 2017 Results August 2nd, 2017 29
RECONCILIATION OF NON-GAAP MEASURES: NET INDUSTRIAL DEBT
€M June 30, 2017 March 31, 2017 December 31, 2016
Net Industrial Debt (627) (578) (653)
Funded portion of the self-liquidating 705 723 737 financial receivables portfolio
Net Debt (1,332) (1,301) (1,390)
Cash and cash equivalents 423 569 458
Gross Debt (1,755) (1,870) (1,848)
Q2 2017 Results August 2nd, 2017 30