Full Year 2016 Results – February 2 nd , 2017
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 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; 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; competition in the luxury performance automobile industry; reliance upon a number of key members of executive management and employees; 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; 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; exchange rate fluctuations, interest rate changes, credit risk and other market risks; potential conflicts of interest due to director and officer 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 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. Full Year 2016 Results February 2 nd , 2017 2 2
2016: A YEAR OF RECORDS… Shipments reached 8,014 units, up by 350 2016, a year full of events units vs. previous year (+5%) – Spin-off from FCA – Listing on the Milan Stock Exchange – Solid performance supported by both V8 and V12 – Bond issuance – Strong performance of the 488 GTB, the 488 Spider and the F12tdf; the newly launched GTC4Lusso and LaFerrari – Deconsolidation of the European Financial Services Aperta ramping up business – LaFerrari finished its limited series run Financial results 2017 Outlook (4) 4) – Net revenues grew 9% to € 3,105 million – Shipments: ~ 8,400 including supercars – Adjusted EBITDA (1) of € 880 million, margin at 28.3% (30% – Net revenues: > € 3.3 billion without FX hedges (2) ) – Adjusted EBITDA: > € 950 million – Adjusted EBIT (1) of € 632 million, 380 bps margin increase – Net industrial debt (5) : ~ € 500 million to 20.4% (22.2% without FX hedges (2) ) – Adjusted net profit up 37% to € 425 million – Net industrial debt (1) reduced to € 653 million – Cash distribution proposal of € 120 million or 0.635 per common share (3) …ON THE WAY TO ITS 70 TH ANNIVERSARY IN 2017 Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix (2) Margins without FX hedges have been calculated excluding FX hedges impact from net revenues, adjusted EBIT and adjusted EBITDA (3) Subject to approval by the Board of Directors and to the adoption of the Company’s 2016 Annual Accounts by the Shareholders ’ Annual General Meeting (4) Assuming FX consistent with current market conditions Full Year 2016 Results February 2 nd , 2017 3 (5) Including a cash distribution to the holders of common shares and excluding potential share repurchases
2016 PRODUCT LAUNCHES J50, a strictly limited series 350 unique cars created by the Tailor Made atelier with dedicated liveries to celebrate our 70 th anniversary 488 Challenge Full Year 2016 Results February 2 nd , 2017 4
FULL YEAR 2016 HIGHLIGHTS FY 2016 FY 2016 8,014 3,105 Shipme ments s Net revenu enues es +4.6% +8.8% (units) ( € M) FY 2015 7,664 FY 2015 2,854 Net revenues up 8.8% (+9.4% at constant currencies) with sound performance of Cars and spare Total shipments up 350 units (+5% vs. PY) supported by a 5% increase in V8 and 4% increase parts as well as Engines. In detail, Cars and spare parts growth was driven by higher volumes, in V12 models vs. prior year: personalization and pricing increase from Q4 2016 partially offset by mix: The 488 GTB and the 488 Spider with The GTC4Lusso and LaFerrari Aperta Americas: € 756 million (-5.7%) due to Greater China: € 254 million (+6.3%) due to robust waiting lists ramping up LaFerrari that finished its limited series run volumes despite Ferrari’s decision to and LaFerrari Aperta yet to arrive terminate the current distributor in Hong Strong performance of the F12tdf LaFerrari finished its limited series run Kong EMEA: € 880 million (+12.9%) due to higher volumes, mix and personalization Rest of APAC: € 290 million (+11.4%) due to volumes, personalization partially offset by mix Adjust sted d EBIT IT (1) FY 2016 28.3% FY 2016 20.4% Adjust sted d EBIT ITDA (1) 880 632 ( € M and ( € M and margin %) +17.7% +33.6% FY 2015 26.2% FY 2015 16.6% margin %) 748 473 Adjusted EBITDA (1) grew by 17.7%, primarily driven by higher volume, positive FX, Sponsorship, Adjusted EBIT (1) margin increased by 380 bps driven by strong adjusted EBITDA (1) and lower D&A commercial and brand as well as Engines and other supporting activities, partially offset by mix. mainly due to the 458 family phase-out and LaFerrari that finished its limited series run Adjusted EBITDA (1) excludes charges for Takata (6) airbag inflator recalls. Dec. 31, 2016 Indust strial free ee FY 2016 Net industrial al (653) 280 cash ash flow (1) (1) debt bt (1) (1) +20.7% -18.1% Dec. 31, 2015 ( € M) ( € M) (797) FY 2015 232 429 Industrial free cash flow (1) driven by strong adjusted EBITDA (1) of € 880 million offset by capex of Net industrial debt (1) reduced to € 653 million primarily due to the industrial free cash flow (1) € 340 million and taxes, which included FY 2015 tax balance and FY 2016 tax advance payments. generation, partially offset by cash distribution to the holders of common shares and Other included a positive contribution from advances of LaFerrari Aperta, offset by a decrease in dividends paid to non-controlling interest. tax liabilities due to tax payments in Q4 2016, as previously communicated. FY 2015 included one-time of € 160 million related to the reimbursement by Maserati of its inventory in China and € 37 million one-time cash inflow from the sale of investment properties to Maserati. Note: (1) reconciliations to non-gaap financial measures are provided in the appendix. (6) Note on Takata airbag inflator recalls is provided in the appendix Full Year 2016 Results February 2 nd , 2017 5 Certain totals in the tables included in this document may not add due to rounding.
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