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Q1 2016 Results – May 2nd, 2016
This document, and in particular the section entitled “2016 Outlook”, contains forward-looking statements. These statements may include termssuch as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “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 risksand uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue relianceshould 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 topreserve and enhance the value of the Ferrari brand; the success of Ferrari’s Formula 1 racing team and the expenses the Group incurs for Formula1 activities; the Group’s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; theGroup’s low volume strategy; the ability of Maserati, the Group’s engine customer, to sell its planned volume of cars; changes in client preferencesand automotive trends; changes in the general economic environment and changes in demand for luxury goods, including high performance luxurycars, which is highly volatile; the impact of increasingly stringent fuel economy, emission and safety standards; the Group’s ability to successfullycarry out its growth strategy and, particularly, the Group’s ability to grow its presence in emerging market countries; competition in the luxuryperformance automobile industry; reliance upon a number of key members of executive management and employees; the performance of theGroup’s dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components andraw materials; disruptions at the Group’s manufacturing facilities in Maranello and Modena; the Group’s ability to provide or arrange for adequateaccess to financing for its dealers and clients; the performance of the Group’s licensees for Ferrari-branded products; the Group’s ability to protectits intellectual property rights and to avoid infringing on the intellectual property rights of others; product recalls, liability claims and productwarranties; exchange rate fluctuations, interest rate changes, credit risk and other market risks; potential conflicts of interest due to director andofficer overlaps with the Group’s largest shareholders 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 anyobligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factorsthat could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and ExchangeCommission, the AFM and CONSOB.
SAFE HARBOUR STATEMENT
Q1 2016 Results 2May 2nd, 2016 2
Shipments at 1,882 units, increased by 15% vs. previous year– All regions up due to strong start of new models
the 488 GTB, 488 Spider and F12tdf– LaFerrari finishing its limited series run
Financial results – Net revenues at €675 million – Adjusted EBITDA* at €178 million– Net profit of €78 million– Net Industrial Debt* at €782 million– Industrial Free Cash Flow* of €28 million
New key product launched and recent events – Recently presented GTC4Lusso – Scuderia Ferrari achieved 4 podiums so far in 2016,
totaling 700 podiums throughout its racing history– FCA Bank to acquire majority stake in Ferrari
Financial Services AG
2016 upward revised guidance**– Shipments: >7,900 including supercars– Net revenues: ˜€3 billion– Adjusted EBITDA: ≥ €800 million– Net Industrial debt***: ≤ €730 million
* Reconciliation to non-gaap financial measures are provided in the appendix** Assuming FX consistent with current market conditions
*** Including an ordinary cash distribution to the holders of common shares
2016 GUIDANCE REVISED UPWARDS2016 GUIDANCE REVISED UPWARDS
3May 2nd, 2016 3Q1 2016 Results
STRONGEST EVER Q1, ON THE WAY TO ANOTHER RECORD YEAR
(797)
(782)
Shipments (units)
Total shipments up 15% driven by a 21% increase in V8, which was partially offset by a 6% decrease in V12:
621
675
Q1'15
Q1'16
160
178
Q1'15
Q1'16
Net revenues up 8.8% (8.4% at constant FX) mainly driven by “cars and spare parts” as a result of higher volumes partially offset by mix:
35
28
Q1'15
Q1'16
1,635
1,882
Q1'15
Q1'16
Industrial Free Cash Flow*
(€M)
Net revenues (€M)
Adjusted EBITDA*(€M and margin %)
Net Industrial Debt*(€M)
Industrial Free Cash Flow primarily driven by EBITDA, partially offset by Capex and negative change in working capital mainly due to less down-payments received for LaFerrari. Q1 2015 included one-time of €44M
Net Industrial Debt reduced to €782 million primarily due to industrial free cash flow generation
Adj. EBITDA growth primarily driven by higher volume
• Americas: €136M (-11.5%) due to lower sales of LaFerrari
• EMEA: €225M (+27.4%) due to higher shipments of 488 family and F12tdf
• Greater China: €59M (+38.6%) due to volume increase of 488 GTB in China mainland
• Rest of APAC €61M (+8.0%) due to higher shipments of V8 models
18.0%
16.1%
Mar. 31, 2016
Dec. 31, 2015
*Reconciliation to non-gaap financial measures are provided in the appendix
-9
Adjusted EBIT*(€M and margin %) 100
121
Q1'15
Q1'16
Adjusted EBIT increase driven by strong adjusted EBITDA and lower D&A mainly due to 458 family phasing out
26.3%
25.7%
• Strong start for the newly launched 488 GTB and 488 Spider and introduction of the new F12tdf
• Phase out of the FF in line with plans
• LaFerrari finishing its limited series run• GTC4Lusso, distribution will commence in Q3
2016
Q1 2016 HIGHLIGHTS
Q1 2016 Results 4May 2nd, 2016
Americas (28% vs. 31% PY of total shipments)
Americas’ shipments increased by 2%
• USA – Ferrari’s largest single market: growth supported by V8 models (488 GTB and California T) offsetting F12berlinetta at its 5th year of commercialization and LaFerrari completing its life-cycle. The F12tdf just arrived in the market
• First deliveries of F60 America, a strictly limited edition car
Greater China (8% vs. 8% PY of total shipments)
Greater China’s shipments increased by 16%
• China mainland – shipments grew by 67% thanks to the success of 488 GTB
• HK and Taiwan – dropped by few units mainly due to the phase out of 458 family, which was only partially offset by 488 family: shipments are planned to increase in the following quarters also thanks to full contribution of 488 Spider and F12tdf
EMEA (51% vs. 47% PY of total shipments)
EMEA’s shipments increased by 24%
• UK – Ferrari’s largest market in EU recorded 4% growth driven by California T and newly launched 488 family and F12tdf
• Strong performance in Italy (+75% thanks to 488 GTB and the newly launched F12tdf) and in Germany (+74%, as a result of the 488 family and F12tdf). Other Europe and Africa up by 35% thanks to 488 family and F12tdf
Rest of APAC (13% vs. 14% PY of total shipments)
Rest of APAC’s shipments increased by 14%
• Australia – shipments up by 14% driven by 488 GTB which more than compensated phase out of 458 family
• Japan – recorded a slight reduction of 3% mainly due to 488 Spider and F12tdf not yet arrived in the market
• Other APAC – increased double-digit driven by V8 models
Note 1, refer to notes to the presentation in the Appendix
All regions up due to strong start of new models the 488 GTB, 488 Spider and F12tdfdespite 458 family, FF and LaFerrari phasing out
Q1 2016 – SHIPMENTS BY REGION1
Q1 2016 Results 5May 2nd, 2016
429 481
64 57109 11819
52 (7) 9 0 19
Q1 2015 Cars and spare parts Engines Sponsorship, commercial and
brand
Other Q1 2016
Cars and spare parts Engines Sponsorship, commercial and brand Other
• €52M increase in Cars and spare parts due to higher volumes led by new models 488 GTB, 488 Spiderand F12tdf, along with a higher contribution from personalization
• €7M decrease in Engines mainly attributable to lower shipments to Maserati partially offset by higherrental revenues from other Formula 1 Teams
• €9M increase in Sponsorship, commercial and brand mainly due to better championship ranking
Notes 2,3,4 and 5, refer to notes to the presentation in the Appendix
+8.8%(+8.4% constant FX)
2 3
4
5
NET REVENUES BRIDGE Q1 2015-2016
Q1 2016 Results 6May 2nd, 2016
621675€M
• Increased volume of approx. 260 cars (excluding LaFerrari) thanks to the newly launched 488 GTB, 488Spider and F12tdf; positive margin contribution from personalization
• Mix was negatively impacted by higher sales of V8 vs. V12 and lower sales of LaFerrari partially offsetby FXX K and first deliveries of F60 America
• Industrial costs / R&D substantially unchanged. Higher spending for F1 racing activity partially offsetby lower D&A for 458 family and industrial cost savings
• Lower SG&A costs mainly due to timing of the 2016 Formula 1 racing season• Neutral FX impact on transaction exchange rate net of hedging• Other, positive contribution from supporting activities
Margin
15.7%
Margin
19.4%
Adj. EBITDA160
25.7%
Adj. EBITDA178
26.3%
Adj. EBIT Q1'15 Vol Mix Ind. Costs /R&D
SG&A FX Other Adj. EBIT Q1'16
2
100
25 (8) (1) 0 3 121
Margin16.1%
Margin18.0%
*Reconciliation to non-gaap financial measures are provided in the appendix
ADJUSTED EBIT* BRIDGE Q1 2015-2016
7May 2nd, 2016
€M
Q1 2016 Results
(797) 178 (34) (4) (67)(45)
(13)
OtherNet ∆ workingcapital
Tax paid Net capexAdj. EBITDA Mar. 31, 2016 Net Industrial
Debt
Dec. 31, 2015Net Industrial
Debt
Industrial FCF €28M
FX and other
(782)
Starting from Q1 2016 introduced net industrial debt and industrial freecash flow as primary non-gaap measures in order to analyze our financialleverage, capital structure and their change
NET INDUSTRIAL DEBT BRIDGE* DEC 31, 2015 – MAR 31, 2016
€M
Q1 2016 Results 8May 2nd, 2016*Reconciliation to non-gaap financial measures are provided in the appendix
FCA BANK TO ACQUIRE A MAJORITY STAKE INFERRARI FINANCIAL SERVICES AG
Q1 2016 Results 9May 2nd, 2016
Ferrari Financial Services S.p.A. (FFS S.p.A.), an Italian indirect subsidiary of Ferrari N.V., and FCA BankS.p.A. (FCAB) today announced that they have signed a memorandum of understanding for FCAB toacquire a majority stake in Ferrari Financial Services AG (FFS AG), a wholly owned subsidiary of FFSS.p.A.
• FFS S.p.A. and FCAB will continue the operations of FFS AG as joint venture partners, supporting thesales of Ferrari cars in certain European countries by offering innovative vehicle financing solutions toFerrari customers
• The funding of the joint venture will be provided by FCA Bank, which will also be the consolidatingentity
• FFS S.p.A. is Ferrari's own financial services provider based in Maranello, Italy
• The parties agreed not to disclose any financial details about the transaction
• The Memorandum of Understanding will be transformed into a set of definitive agreements later inthe year. The consummation of the transaction is subject to approvals of competition and bankingregulatory authorities
A unique combination of technology,
performance, versatility
and sport luxury
Mid – front naturally aspirated V12 engine:
690 hp @ 8,000 rpm
Max speed in excess
of 335 km/h
Distribution will commence in
Q3 2016 and it will
substitute the FF
California T HSFebruary-MarchHS package launch and intensive test drive program dedicate to customers and HNWIs in Europe and US
Motor ShowGeneva, March 1-3GTC4LUSSO public
presentation and announcement of upcoming
Ferrari’s 70th anniversary More than 3,000
customers and 2,000 prospects attended
GTC4Lusso World PremiereMilan, February 15th
More than 500 customers invited to the new Ferrari V12GT
presentation eventA whole new concept for Ferrari
Q1 2016 – CLIENT RELATION ACTIVITIES
Enriching product offering and experiences for GT customersEnriching product offering and experiences for GT customersQ1 2016 Results 11May 2nd, 2016
Q1 2016 – “CORSE CLIENTI”
Ferrari Challenge APAC, round 1Entered drivers: 35
XX ProgramsEntered drivers: 5 (4 FXX K)
F1 ClientiEntered drivers: 3
Ferrari ChallengeNorth America
Daytona International Speedway
USAJan 28-30
Ferrari Challenge NA, round 1Entered drivers: 36
XX ProgramsEntered drivers: 16 (6 FXXK)
F1 ClientiEntered drivers: 4
24h DaytonaUSA,
Jan 29-31
4th
ClassifiedGTLM Class
12h SebringUSA,
Mar 17-19
1st
ClassifiedGTD Class
GT RacingDebut of the new 488 GT
Ferrari Racing DaysSuzukaSuzuka Circuit – Japan March, 4-6
XX Programs F1 ClientiDe Jerez CircuitSpain March, 17-18
Q1 2016 Results 12May 2nd, 2016
The start of the GT racing seasonThe start of the GT racing season
Licensing activitiesSigned a non-binding memorandum of understanding for the licensing of the design, construction and operation of a new Ferrari theme park to be located in one of the primary cities in Mainland China.New attractions opening at Ferrari World Abu Dhabi
E-commerceSell-out up 14% vs. previous year
Ferrari StoreOpening of the new Riyadh franchised store. Now managing 12 directly operated stores and 26 franchised locations (including 5 Ferrari Store Junior) in 15 markets
MuseumsVisitors up 27% vs. previous year
Q1 2016 – FERRARI BRAND AND STORE PRESENCE
Q1 2016 Results 13May 2nd, 2016
Shipments >7,900
Net Revenues ˜€3 billion
Adj. EBITDA ≥€800 million
Net Industrial Debt ≤€730 million*
Assuming FX consistent with current market conditions
* Including an ordinary cash distribution to the holders of common shares
Q1 2016 Results 14May 2nd, 2016
2016 UPWARD REVISED GUIDANCE
Revised guidance
˜7,900
>€2.9 billion
>€770 million
<€750 million*
Previous guidance
Q&A
Appendix
1. Shipments geographical breakdownEMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United ArabEmirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separatelyidentified); Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Greater China includes: China, Hong Kong and Taiwan; Rest of APAC includes: Japan, Australia, Singapore, Indonesia and South Korea
2. Includes the net revenues generated from shipments of our cars, including any personalization revenue generated on these cars and sales of spare parts
3. 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.
4. 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, licensing and royalty income
5. Primarily includes interest income generated by the Ferrari Financial Services group and net revenues from the management of the Mugello racetrack
Q1 2016 Results
NOTES TO THE PRESENTATION
17May 2nd, 2016
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
V8
F430F430 Spider
F430 ScuderiaCalifornia
Scuderia Spider 16M458 Italia
458 SpiderCalifornia 30458 SpecialeCalifornia T
458 Speciale A488 GTB
488 Spider
V12
612 ScagliettiSuperamerica
599 GTB Fiorano599 GTO
SA APERTAFF
F12berlinettaF12tdf
GTC4LussoSupercars
LaFerrari
Special series and one-offs not included
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTIONProduct Line-Up (at least a new model launched every year)
Q1 2016 Results 18May 2nd, 2016
3,351 ~3,400
2,640 ~2,700
610 ~700 1,063 ~1,100
FY 2015 FY 2016E
EMEA Americas Greater China Rest of APAC
>7,9007,664
Note: Graphs not to scale. Shipments including supercar LaFerrari
765950
515
523134
156221
253
Q1 2015 Q1 2016
EMEA Americas Greater China Rest of APAC
1,635
1,882+15%
GROUP SHIPMENTS
Q1 2016 Results 19May 2nd, 2016
€m, except as otherwise stated Q1 ‘16 Q1 ‘15
Worldwide shipments (units) 1,882 1,635
Net revenues 675 621
EBIT 121 96
Adjustments - 4
Adjusted EBIT1 121 100
Net financial (expenses)/income (9) 2
Profit before taxes 112 98
Income tax expense 34 33
Effective tax rate 30.9% 33.5%
Net profit 78 65
EPS 0.41 0.34
Adjusted EPS1 0.41 0.36
EBITDA1 178 156
Adjusted EBITDA1 178 160
1 Reconciliation to non-gaap financial measures are provided in the appendix
KEY PERFORMANCE METRICS
Q1 2016 Results 20May 2nd, 2016
March 31st, 2016 2015 2014
Chinese Yuan 99 106 74
Japanese Yen 24 41 27
Euro 356 22 10
US Dollar 41 1 14
Other Currencies 43 13 9
Total (€m equivalent) 563 183 134
Gross Debt1 Maturity Profile (€M) Cash and Marketable Securities (€M)
Net Cash/Net Industrial Debt (€M)Maintaining a Conservative Industrial Leverage
(1,879)
1,097
March 31, 2016Net Industrial Debt
Funded Self-liquidatingFinancial
Receivables Portfolio
March 31, 2016Net Debt
Net Industrial Debt (€M)Net Industrial Debt in line with EBITDA
(782)
At March 31st At December 31st
2,016 2,015 2,014Gross Debt -2,442 -2,260 -510Cash & Cash Equivalents 563 183 134Deposits in FCA Cash Management Pools 139 942(Net Debt)/Net Cash -1,879 -1,938 566Funded Self-Liquidating Financial 1,097 1,141 1,061Receivables Portfolio
(Net Industrial Debt)/Net Industrial Cash -782 -797 1,627
Undrawn Committed Credit Lines 500 500
Total Available Liquidity 1,063 822 1,076
DEBT AND LIQUIDITY POSITION
21
167333 333 333 333
500
70 74 49
122
1343 2
1
2016 2017 2018 2019 2020 2023Term Loan Bond US Securitization Other Financial Liabilities
May 2nd, 2016
289
537
410 384500
336
Operations are monitored through the useof various Non-GAAP financial measuresthat may not be comparable to othersimilarly titled measures of othercompanies
Accordingly, investors and analysts shouldexercise appropriate caution in comparingthese supplemental financial measures tosimilarly titled financial measures reportedby other companies
We believe that these supplementalfinancial measures provide comparablemeasures of its financial performancewhich then facilitate management’s abilityto identify operational trends, as well asmake decisions regarding future spending,resource allocations and other operationaldecisions
Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT asadjusted for income and costs, which are significant in nature, but expected tooccur infrequently
EBITDA is defined as net profit before income tax expense, net financialexpenses/(income) and depreciation and amortization. Adjusted EBITDA isdefined as EBITDA as adjusted for income and costs, which are significant innature, but expected to occur infrequently
Net Industrial Debt defined as Net Debt excluding the funded portion of theself-liquidating financial receivables portfolio, is the primary measure to analyzeour financial leverage and capital structure, and is one of the key indicatorsused to measure our financial position
Free Cash Flow and Free Cash Flow from Industrial Activities are two ofmanagement’s primary key performance indicators to measure the Group’sperformance. Free Cash flow is defined as net cash generated from operationsless cash flows used in investing activities. Free Cash Flow from IndustrialActivities is defined as Free Cash Flow adjusted for the change in the in the self-liquidating financial receivables portfolio.
Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES
Q1 2016 Results 22May 2nd, 2016
Adjusted earning per share represents earning per share as adjusted for incomeand costs, which are significant in nature, but expected to occur infrequently
€M Q1 ‘16 Q1 ‘15
EBIT 121 96
Expenses incurred in relation to the IPO - 4
Adjusted EBIT 121 100
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT
Q1 2016 Results 23May 2nd, 2016
€M Q1 ‘16 Q1 ‘15
Net profit 78 65
Income tax expense 34 33
Net financialexpenses/(income) 9 (2)
Amortization and depreciation 57 60
EBITDA 178 156
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBIT
Q1 2016 Results 24May 2nd, 2016
€M Q1 ‘16 Q1 ‘15
EBITDA 178 156
Expenses incurred in relation to the
IPO- 4
Adjusted EBITDA 178 160
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EBITDA
Q1 2016 Results 25May 2nd, 2016
€M Q1 ‘16 Q1 ‘15
EPS 0.41 0.34
Expenses incurred in relation to the IPO - 0.02
Adjusted EPS 0.41 0.36
RECONCILIATION OF NON-GAAP MEASURES: ADJ. EPS
Q1 2016 Results 26May 2nd, 2016
* Q1 2015 industrial free cash flow1 included a Euro 44 million one-time cash in-flow related to a partial reimbursement by Maserati of its inventory in China
€M Q1 ‘16 Q1 ‘15
Cash flows from operating activities 112 63
Cash flows used in investing activities (67) (77)
Free Cash Flow 45 (14)
Change in the self-liquidating financial receivables portfolio
(17) 49
Free Cash Flow from Industrial Activities 28 35*
RECONCILIATION OF NON-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES
Q1 2016 Results 27May 2nd, 2016
€M March 31, 2016 December 31, 2015
Net Industrial Debt (782) (797)
Funded portion of the self-liquidating financial receivables portfolio 1,097 1,141
Net Debt (1,879) (1,938)
Financial liabilities with FCA Group - (3)
Deposits in FCA Group cash management pools - 139
Cash and cash equivalents 563 183
Debt (2,442) (2,257)
RECONCILIATION OF NON-GAAP MEASURES: NET DEBT AND NET INDUSTRIAL DEBT
Q1 2016 Results 28May 2nd, 2016