Q3 2016 Results – November 7 th , 2016
SAFE HARBOUR STATEMENT This document, and in particular the section entitled “ 2016 Outlook”, contains forward-looking statements. These statements may include terms such 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 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. Q3 2016 Results November 7 th , 2016 2 2 2
A RECORD THIRD QUARTER… Shipments reached 1,978 units, New key products launched and recent increasing by 29 units vs. previous year events (+1.5%) – LaFerrari Aperta and “70 Style Icons” cars recently – Solid performance on top of an outstanding Q3 2015 presented at the Mondial de l’Automobile in Paris which grew by 21% vs. Q3 2014 – GTC4Lusso T recently unveiled, shipments will – Strong performance of the 488 GTB, the 488 Spider and commence in 2017 the F12tdf; first deliveries of the newly launched GTC4Lusso and LaFerrari Aperta – Ferrari and FCA Bank finalized agreement to provide financial services in Europe – LaFerrari finished its limited series run Financial results Outlook (2) 2) Revised Upward – Net revenues grew 8% to € 783 million – Shipments: ~8,000 including supercars – Adjusted EBITDA (1) of € 234 million, margin now at 30% – Net revenues: > € 3 billion – Adjusted EBIT (1) of € 172 million, 260 bps margin increase – Adjusted EBITDA: ~ € 850 million (up from ≥€ 800 million) to 22% – Net industrial debt (3) : < € 700 million (down from ≤€ 730 – Net profit up 20% to € 113 million million) – Net industrial debt (1) reduced to € 585 million …ON THE WAY TO ANOTHER RECORD YEAR Note: (1) Reconciliations to non-gaap financial measures are provided in the appendix (2) Assuming FX consistent with current market conditions Q3 2016 Results November 7 th , 2016 3 (3) Including an ordinary cash distribution to the holders of common shares
Q3 2016 HIGHLIGHTS Q3'16 Q3'16 1,978 783 Shipme ments s Net revenu enues es (units) ( € M) Q3'15 1,949 Q3'15 723 Net revenues up 8.3% (+7.9% at constant currencies). In particular Cars and spare parts was driven Total shipments up 29 units (+1.5% vs. PY) driven by a 15% increase in V12 while V8 models by positive volumes offset by mix and logistic delays caused by one of our shipment carriers in Rest were substantially in line with prior year: of APAC: 488 GTB and 488 Spider with growing F12berlinetta, at its 5 th year of Americas: € 200 million (-14.7%) due to Greater China: € 59 million (+2.1%) mainly due waiting lists commercialization, continues to perform LaFerrari that finished its limited series run to 488 family volume increase better than expected Strong performance of the F12tdf EMEA: € 212 million (+18.4%) due to higher Rest of APAC: € 65 million (-1.6%) due to LaFerrari finished its limited series run shipments, better mix as well as volume performance affected by logistic GTC4Lusso and LaFerrari Aperta shipments personalization delays caused by one of our shipment carriers started in September partially offset by FX and personalization Adjust sted d EBIT IT (1) Q3'16 30.0% Q3'16 Adjust sted d EBIT ITDA (1) 1) 234 172 22.0% ( € M and ( € M and margin %) Q3'15 29.5% Q3'15 19.4% margin %) 213 140 Adjusted EBITDA (1) grew by 10% primarily driven by higher volume and positive FX partially Adjusted EBIT (1) margin increased by 260 bps driven by strong adjusted EBITDA (1) and lower D&A offset by mix mainly due to LaFerrari that finished its limited series run Sept. 30, 2016 Indust strial free ee Q3'16 Net industrial al (585) 178 cash ash flow (1) (1) debt bt (1) (1) Dec. 31, 2015 ( € M) ( € M) (797) Q3'15 55 92 Industrial free cash flow (1) primarily driven by strong adjusted EBITDA (1) , positive change in Other Net industrial debt (1) reduced to € 585 million primarily due to industrial free cash flow (1) driven by advances on the newly launched LaFerrari Aperta and increased tax liabilities, partially generation offset by capex and negative working capital due to seasonality. Q3 2015 included € 37 million one-time cash inflow from the sale of investment properties to Maserati. Q4 2016 will bear the second 2016 tax advance and full year 2015 tax balance payments for a total of approx. € 200 million. Note: (1) reconciliations to non-gaap financial measures are provided in the appendix. Q3 2016 Results November 7 th , 2016 4 4 Certain totals in the tables included in this document may not add due to rounding.
Q3 2016 – SHIPMENTS BY REGION (4) Americas EMEA (35% vs. 35% PY of total shipments) (44% vs. 42% PY of total shipments) Americas’ shipments increased by approx. 3% EMEA’s shipments increased by more than 5% USA – Ferrari’s largest single market recorded shipments in line with • UK UK – a few units decrease, notwithstanding a tough comparison with prior year notwithstanding timing of the newly launched GTC4Lusso previous year which posted a 51% increase, due to timing of the and LaFerrari Aperta yet to arrive on the market. GTC4Lusso yet to arrive on the market, partially offset by strong The 488 family and the F12tdf continued to perform strongly, deliveries of the 488 GTB, the 488 Spider and the F12tdf. First offsetting the 458 family and the FF phase-out and LaFerrari, that deliveries of LaFerrari Aperta. finished its limited series run. • Strong performance recorded in Italy and Germany mainly due to the 488 Spider, the F12tdf and first deliveries of the newly launched GTC4Lusso and LaFerrari Aperta. Other European countries, Africa and Middle East expanded with a double-digit growth rate. Greater China Rest of APAC (9% vs. 8% PY of total shipments) (12% vs. 15% PY of total shipments) Greater China’s shipments grew by approx. 15% Rest of APAC’s shipments decreased by 57 units China mainlan and d – double-digit growth thanks to the 488 family. The Japan – shipments negatively affected by logistic delays caused by newly launched GTC4Lusso and LaFerrari Aperta yet to arrive on the one of our shipment carriers market. Austral alia – strong double-digit growth thanks to the 488 family and HK and Taiwan – double-digit increase in shipments supported by the F12tdf the 488 family, the F12tdf and first deliveries of the GTC4Lusso. Other er APAC AC – shipments negatively affected by logistic delays LaFerrari Aperta yet to arrive on the market. caused by one of our shipment carriers Sound performance due to the 488 GTB, the 488 Spider, the F12tdf and the newly launched GTC4Lusso and LaFerrari Aperta Note: (4) refer to notes to the presentation in the Appendix Q3 2016 Results November 7 th , 2016 5 5
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