Ferrari NV Q4 FY2024 earnings call

• 2024 was a remarkable year with milestones, including the launch of three models: F80, 12Cilindri Coupe, and Spider. The F80 is equipped with a V6 hybrid powertrain from racing experience. - Infrastructure developments: E-building inaugurated and new paint shop construction accelerated. - Financial results: Revenues, profitability, and industrial free cash flow all saw double-digit growth. - Client loyalty: 81% of 2024 new cars sold to existing clients, 48% to clients with multiple Ferraris; museum visits reached a new record of over 850,000. - Carbon neutrality: Scope 1 and 2 emissions expected to reduce by factor 3 vs 2021 base year by 2025.

In 2024, Ferrari achieved record financial results. Revenues were approximately €6.7 billion with double-digit growth. Net profit reached €1.5 billion, and industrial free cash flow surpassed €1 billion. The company's three segments - racing, sports cars, and lifestyle - contributed to the overall growth. Product launches included the F80 supercar, 12Cilindri Coupe and Spider. The hybrid share reached 51%, mainly driven by the 296 GTS. Personalizations accounted for approximately 20% of total revenues from cars and spare parts.

• 2025 plans: 6 new model launches in sports cars, continue enhancing client experiences and paint shop development. - Hybrid share expected to be slightly lower than 2024. - EBIT margin affected by higher tax rate (~22.5%) due to end of previous Patent Box regime. - Industrial free cash flow sustained by profitability but offset by working capital changes; CapEx ~€900M, lower than 2024. - Exchange rate assumption: U.S. dollar to fluctuate around 105, neutral vs 2024.

• Residual value trends vary by region and model; closely monitored. - Supply chain challenges noted, with efforts to cope via dispatching people and second sourcing. - Global uncertainty impacting the business environment.

Q: Regarding model rollout in 2025, with 6 new models, clarification on launch pace and customer positioning.

A: Focus on new and existing customers; models positioned for different client types, no confusion as they cater to different needs.

Q: How mix flows through P&L?

A: Mix includes product mix, personalization, country mix; personalization has been a key contributor, increasing from 18% pre-2022 to 20% in 2024.

Q: Pricing impact in 2025?

A: No significant new price increases, but Purosangue had a price increase in Jan 2025.

Q: Residual values of hybrids and impact on EV launch?

A: Residual values vary; Ferrari's EV will be unique, considering style, performance, and driving dynamics.

Q: D&A guidance for 2025?

A: D&A lower in 2025 due to model phase in/out; 2024 D&A flat, 2025 driven by new model production.

Q: F80 order book status?

A: Order intake faster than previous ICONAs, with more interest than 799 units planned; no major cancellations of concern as per contracts.