Ferrari N.V. Q2 FY2025 earnings call

• Product development is on track, with the Ferrari Elettrica and new models like the Ferrari Amalfi and 296 Speciale launched. - Strong order book entering 2027, with new launches attracting high demand. - Invested in client centricity, product excellence, and technology, with 341 colleagues awarded for patents in 2024. - Production ramp-up of e-building and new paint shop, and construction of a test track. - Highlights from events: World premiere of Ferrari Amalfi, new 296 GT3 Evo, 24 Hours of Le Mans win, and Ferrari Hypersail project.

Total revenues for Q2 '25 reached approximately EUR 1.8 billion, a 4.4% year-over-year growth with flat deliveries. EBITDA exceeded EUR 700 million, and industrial cash flow was EUR 230 million. Shipments in the quarter were driven by models like the 296 GTS, Purosangue, and Roma Spider, with the SF90 XX family and 12Cilindri family sustaining the product mix. Personalizations accounted for approximately 20% of total revenues from cars and spare parts, supported by models like the Daytona SP3 and SF90 XX family.

• Confirmed 2025 guidance with stronger confidence, removing 50 basis point risk on percentage margins. - Anticipated deliveries to reduce in H2 2025 to prioritize revenue quality. - Lower industrial costs expected in H2 due to easier comp vs last year and lower supply chain inflation. - Higher SG&A linked to corporate and commercial activities. - Greater headwind from FX if USD weakness persists.

• Macro factors: trade tensions, currency fluctuation, financial market volatility. - Uncertainty around U.S. tariff implementation affecting pricing and client experience. - Impact of CO2 regulations on product rollouts, though company focuses on own product development.

Q: Comment on residual value developments in key markets?

A: U.K. was under pressure, actions showing good trends; U.S. models under pressure, commercial actions showing results.

Q: Why industrial costs lower in H2?

A: Easier comp vs last year (lower racing costs), better supply chain costs due to lower inflation.

Q: R&D capitalization vs amortization change?

A: Due to overlap of project development, capitalization depends on internally approved model development.

Q: ASP and COGS in Q2?

A: Cars and spare parts growth 3% due to product mix; COGS strong due to racing costs, efficiency, lower inflation.

Q: U.S. tariffs impact on pricing?

A: Commercial policy unchanged till 15% tariff implemented; invoices separate tariff for clarity.

Q: Elettrica launch?

A: Set for 8th October, on track, no delays, aimed at existing and new community members.

Q: Amalfi's aim?

A: Improve offering in China, attract clients from other brands with sportiness, comfort, and price.

Q: 296 Speciale demand?

A: Strong demand from various regions, including Middle East, Japan, U.S., Europe.

Q: Tariff impact on client orders?

A: No significant cancellations/postponements, order intake depends on available models.

Q: CapEx and CMD?

A: On track with commitments, Capital Markets Day on Oct 9 to disclose strategy; CapEx aligned with plans.