Q3 2017 Results lts Novem ember er 2 nd nd , , 2017 2017 Q3 2017 Results November 2 nd , 2017 1 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. Q3 2017 Results November 2 nd , 2017 2 2
A RECORD THIRD QUARTER • Solid revenues of € 836 million (+7%) driving adj. EBIT (1) to € 202 million (+17%) • Ferrari Portofino presented in September, already with a robust waiting list • Strong success of Ferrari’s client relations activities • 2017 Outlook revised upward ON THE WAY TO 1 BILLION EURO ADJ. EBITDA Note:(1) Reconciliations to non-gaap financial measures are provided in the appendix Q3 2017 Results November 2 nd , 2017 3
Q3 2017 HIGHLIGHTS Shipments s Net revenues enues Q3 '17 Q3 '17 Q3 '17 2,046 838 836 (units) ( € M) +3.4% +6.7% Q3 '16 1,978 Q3 '16 Q3 '16 783 783 Net revenues up 6.7% (9.3% at constant currencies, mainly due to USD weakening vs. Euro) Total shipments up 68 units mainly driven by 27% increase in V12 models. Few units decrease of • Cars and spare parts leading the way with volume, mix and pricing V8 mostly due to the California T phase-out: • Partially offset by Engines due to the termination of the rental agreement with a Formula 1 racing The GTC4Lusso and the 488 families The California T and the F12berlinetta continue to perform strongly phasing-out, as well as F12tdf finishing its team and slightly lower sales to Maserati due to a different production schedule as well as the limited series run deconsolidation of the European Financial Services business (November 2016) LaFerrari Aperta fully contributing Deliveries of the Ferrari Portofino will The 812 Superfast just arrived in EMEA commence in 2018 Adjust sted d EBIT ITDA (1) Adjust sted d EBIT IT (1) Q3 '17 Q3 '17 266 31.8% 202 24.2% ( € M and ( € M and +13.2% +17.3% margin %) margin %) Q3 '16 Q3 '16 234 30.0% 172 22.0% Adjusted EBIT (1) margin increased by 220 bps driven by strong adjusted EBITDA (1) Adjusted EBITDA (1) grew by 13.2%, primarily driven by higher volumes, mix thanks to LaFerrari Aperta and pricing. Partially offset by higher R&D expenses for innovation, components and hybrid technology. Sept. 30, 2017 Indust strial free ee Q3 '17 Net industrial al (485) 147 cash flow (1) debt bt (1) (1) (1) -17.4% -25.7% ( € M) ( € M) Dec. 31, 2016 Q3 '16 (653) 178 Industrial free cash flow (1) driven by strong adjusted EBITDA (1) , partially offset by net change in Net industrial debt (1) reduced to € 485 million thanks to positive industrial free cash flow (1) working capital, capex and lack of contribution from advances of LaFerrari Aperta. generation Second 2017 tax advance payment will impact next quarter. Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix. Q3 2017 Results November 2 nd , 2017 4 Certain totals in the tables included in this document may not add due to rounding.
Q3 2017 – SHIPMENTS BY REGION (2) Americas +5.0% • USA – increased by 1% with a strong performance of the 488 family, the GTC4Lusso and the limited edition LaFerrari Aperta. Partially offset by California T and the F12berlinetta phasing-out. The F12tdf is finishing its limited series run. • The GTC4Lusso T and the 812 Superfast yet to arrive on the market EMEA EMEA: +5.1% Americas (44% vs. 44% PY) • UK – up almost 3% thanks to the 488 and the GTC4Lusso families while the 812 Superfast is yet to arrive on the market. UK (36% vs. 35% PY) The California T and the F12berlinetta phasing-out, while the F12tdf is finishing its limited series run. • Double-digit growth in Italy (+24%) and France (+23%) thanks to the 488 and the GTC4Lusso families as well as the 812 Superfast just arrived on the market. Germany flat due to the California T and the F12berlinetta phasing-out. • Other European countries up double-digit, while Middle East recorded a decrease due to reallocation triggered by tough market conditions China, Hong Kong and Taiwan, on a combined basis: -15.6% • China – mid single-digit growth supported by the GTC4Lusso family. 812 Superfast is yet to arrive on the market. • Hong g Kong ng – slowdown as the new dealership became fully operational in Q3 2017 • Taiwan – few units decrease due to the California T and the F12berlinetta phasing-out China, Hong Rest of APAC: +7.1% Rest of APAC Kong and (13% vs. 12% PY) • Taiwan, on a Japan – shipments up 16% thanks to V8 models, the GTC4Lusso and LaFerrari Aperta. Partially offset by the combined basis F12berlinetta phasing-out and the F12tdf finishing its limited series run. • Austral alia – substantially in line with prior year (7% vs. 9% PY) • Other er APAC AC – shipments in line with prior year SOLID PERFORMANCE OF THE 488 AND THE GTC4LUSSO FAMILIES AS WELL AS LAFERRARI APERTA. 812 SUPERFAST JUST ARRIVED IN EMEA Note: (2) Refer to notes to the presentation in the Appendix Q3 2017 Results November 2 nd , 2017 5
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