NYSE:RACE Ferrari Q1 2025 Earnings Report $498.59 +0.96 (+0.19%) As of 05/20/2025 03:59 PM Eastern Earnings HistoryForecast Ferrari EPS ResultsActual EPS$2.42Consensus EPS $2.36Beat/MissBeat by +$0.06One Year Ago EPS$1.95Ferrari Revenue ResultsActual Revenue$1.94 billionExpected Revenue$1.82 billionBeat/MissBeat by +$112.70 millionYoY Revenue Growth+13.00%Ferrari Announcement DetailsQuarterQ1 2025Date5/6/2025TimeBefore Market OpensConference Call DateTuesday, May 6, 2025Conference Call Time9:00AM ETUpcoming EarningsFerrari's Q2 2025 earnings is scheduled for Thursday, August 7, 2025, with a conference call scheduled on Thursday, July 31, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress ReleaseEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Ferrari Q1 2025 Earnings Call TranscriptProvided by QuartrMay 6, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Good day and thank you for standing by. Welcome to the Ferrari twenty twenty five Q1 Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Operator00:00:29I would now like to hand the conference over to your first speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead. Nicoletta RussoHead of IR at Ferrari00:00:37Thank you, Sharon, and welcome to everyone who is joining us. Today, we plan to cover the group's first quarter twenty twenty five operating results, and the duration of the call is expected to be around sixty minutes. Today's call will be hosted by the group CEO, Mr. Benedetto Vigna and the group's CFO, Mr. Antonio Picapicon. Nicoletta RussoHead of IR at Ferrari00:00:58All relevant materials are available in the Investors section of the Ferrari corporate website and at the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation, and the call will be governed by this language. With that said, I'd like to turn the call over to Benedetto. Benedetto VignaCEO & Executive Director at Ferrari00:01:30Thank you everyone for joining us today. While the macroeconomic environment remains uncertain, with ongoing geopolitical tensions and market volatility, we at Ferrari have a clear view of our priorities and we are continuing to execute our business plan with discipline, focus and four wheels on the ground. Solidity of our business model, along with the relentless drive of all our partners and employees and the continuous trust of our clients, enable us to navigate the current context. We look ahead with confidence, being vigilant of the situation that surrounds us as we have always been in the last years. In this spirit, we have kicked off this year with good progress on several fronts. Benedetto VignaCEO & Executive Director at Ferrari00:02:21Our product offering continues to evolve. Our new paint shop is proceeding according to plans. We won the much anticipated podiums in the World Endurance Championship in Qatar and in Italy, and we launched our new lifestyle collectibles. Most importantly, we have delivered a strong set of financial results. So let's start from here. Benedetto VignaCEO & Executive Director at Ferrari00:02:45Q1 twenty twenty five saw double digit growth on all key metrics, led by product mix and the continued solid trend in personalizations. A few key numbers to highlight. One, total revenues reached approximately EUR 1,800,000,000.0 with very few incremental deliveries year over year. This confirms once again our strategy on quality of revenues over quantity. Two, we enjoyed a strong profitability with EBITDA close to EUR 700,000,000. Benedetto VignaCEO & Executive Director at Ferrari00:03:213, industrial free cash flow generation reached more than EUR 600,000,000 in the quarters. In Q1, we have also witnessed continued strong brand momentum. Indeed, the order book on current models has evolved as expected and covers the World twenty twenty six with the Dodi Chilindre Cup and Spiders guiding the order intake. This leads me on to the very positive reception that we have witnessed for our recently unveiled two special version, the Coupe and the Spider of the February GTB and February GTS. These new Ferraris are based on the current Berlinetta in our range, the two ninety six GTB and two ninety six GTS. Benedetto VignaCEO & Executive Director at Ferrari00:04:04However, they mark forward progress in both performance managers. With hybrid engine delivering a total of eight eighty horsepower, these cars offer an unprecedented driving experience. But it's not just their sheer power that makes them special. They are also distinguished by meticulous attention to detail, technology in technological innovation and refined design. And as is characteristic of our sports cars, they embody solutions derived from our racing cars, the four ninety nine P, the two 90 six GT3, the two ninety six Challenge and the Formula one. Benedetto VignaCEO & Executive Director at Ferrari00:04:42These two newly born are the latest expressions of our hybrid offering and they have been enthusiastically greeted by our clients. One important client of ours paid deposits to each dealer right after the presentation of last Tuesday, and another one told me, this is truly a brand new car, not just a special edition. It is beautiful, it is very elegant and highly performing, and I love the new gear change experience. The new physical comments, moreover, on the steering wheel are incredibly interactive. Now it is much more comfortable to drive. Benedetto VignaCEO & Executive Director at Ferrari00:05:20As you can see, we are progressing in our product development plan, enriching our offering with exciting new models that allow us to tap into different client needs and the size. But the launch of February Specale, Coupe Spiders, represents just the first of many milestones to look forward to these years. Among these, as we have told you in February, there will be the unveiling of the much anticipated Ferrari Electrica. It will be carried out in a unique innovative way that befits a unique and innovative Ferrari. What does it mean? Benedetto VignaCEO & Executive Director at Ferrari00:05:56It means that this is a masterpiece of technology, designed and unique features. It will be an exciting journey of discovery. It is the first of its kind, rich in every aspect that makes a true Ferrari. For these reasons, we want it to be fully appreciated in every single detail and there is no better way to do this than by revealing it step by step. Three will be the unveiling steps. Benedetto VignaCEO & Executive Director at Ferrari00:06:27The first one, starting in October, at our Capital Market Day, we will show you the technological hub of the Ferrari electric guy. And then in early twenty twenty six, we will give you a glimpse into the look and feel of the interior design concept. And a few months later, in spring next year, the journey will culminate with world premieres, where we will reveal this harmonious brand of technology and design. As planned, deliveries of the Ferrari electrical will commence just months after that in October 2026. Moving on from road to track, let me congratulate the entire team for the historic one, three in Qatar at the opening round of the twenty twenty five FIA World and Euros Championship. Benedetto VignaCEO & Executive Director at Ferrari00:07:19And the following victory at the six hours of IMHOLA, more than half a century after our latest win in Italy, we couldn't have started the racing year in a better way. I was in IMHOLA and I can guarantee you that sharing those unique emotions with a lot of passionate force in Ferrari is an unforgettable experience. In Formula One, the team is more focused than ever on fighting for victories and podium places. The beginning has not been easy. We all know that. Benedetto VignaCEO & Executive Director at Ferrari00:07:47On the other side, we are all fueled by deeply rooted grit and relentless determination to continue to progress. But racing is not the only means we have of channeling the world's passion for Ferrari. Here, I refer to our Life Science strategy, which has made significant progress in recent years. In early April, during the World Renowned Milan Design Week, we presented our new collection of exclusive Ferrari collectibles, Blending timeless Ferrari design with exquisite craftsmanship, these are not mere objects. In fact, each model allows our community of enthusiasts to own and treasure a symbol of the prancing horse's history. Benedetto VignaCEO & Executive Director at Ferrari00:08:36Speaking of community, we have maintained our focus on giving back to our local area with Enzo Ferrari Memorial Half Marathon of Italy on March 30. We shaved this special moment at our home in Maranello, with over 10,000 runners from all over Italy and several countries across the globe, which reinforced our community ties and underlined the importance of sports and health. Through the proceeds from registration and partner contributions, the event will leave a tangible legacy on our region, enabling the creation of a new multi sport field in the Maranello Sport Park by early twenty twenty six. Last but not least, at I would like to share another remarkable achievement with you. Our E Building, the one that we inaugurated last year, has been awarded the prestigious LEED LEED Platinum Certificate, a globally recognized sustainability rating system. Benedetto VignaCEO & Executive Director at Ferrari00:09:40And now, I hand over to Antonio to review the Q1 twenty twenty five results in detail. Antonio PicconChief Financial Officer at Ferrari00:09:47And good morning or afternoon to everyone joining us today. Starting on Page five, we show the highlights of the first quarter, which represents another strong start to the year. Please bear in mind that q one twenty five results were not impacted in any way by the recent introduction of higher tariffs on EU cars imported in The US. Revenues and profitability grew double digits with shipments slightly higher than the previous year and product mix and personalization as the main drivers of growth. Percentage margins were particularly strong in the quarter, thanks to the solid business performance, lower DNA in line with model life cycle, partially offset by higher rating expenses and brand investments. Antonio PicconChief Financial Officer at Ferrari00:10:43Net profit reached €412,000,000 and corresponded to a diluted EPS of €2.3, up 17.9% versus the prior year. Such an improvement also encompass increased financial charges and the higher tax rate, now projected at 22% in light of the benefits from new patent box regime only. Industrial free cash flow generation was very strong and above €600,000,000, and I will highlight the main drivers later on. On page six, we deep dive into our Q1 deliveries, which increased by 33 units. This increase was driven by the Ferrari Roma Spider, the two ninety six GTS, GSF90 XX family, and the Purosangue. Antonio PicconChief Financial Officer at Ferrari00:11:39In the quarter, the Dodichy chilindri continued its ramp up phase, and the first deliveries of the Dodichy chilindri spider commenced. In line with model life cycles, deliveries of the '2 '90 '6 GTB decreased, as well as the ones of the Daytona SP3 in line with plans. Gesophreninitis spider approached the end of its life cycle, while the a 12 Competition A phase out. As customary, the geographic breakdown reflect the different product cycles as well as the company's deliberate allocation strategy. As a result, EMEA and Americas were up versus the prior year, representing three quarters of our total shipments. Antonio PicconChief Financial Officer at Ferrari00:12:25Rest of APAC was almost flat at 18%, and Mainland China, Hong Kong, and Taiwan reduced their share to seven percent. On page seven, the net revenues bridge shows a remarkable double digit growth, up 12.2% versus the prior year at constant currency. The increase in cars and spare parts was driven by the richer product and country mix as well as higher personalizations. Personalizations accounted for more than 19% of total revenues from cars and surplus, just a couple of decimals higher than last year exchange rates, mainly supported by the Daytona SP three full carbon and ESF90 XX family. Sponsorship, commercial, and brand increased thanks to new sponsorship among which the HP title partnership of Studeria Ferrari, which was signed in May 24 and therefore provides the quarter with an easy comp and lifestyle activities, as well as higher commercial revenues linked to the better prior year for MORO-one ranking. Antonio PicconChief Financial Officer at Ferrari00:13:35Currency, net of hedges in place, had a positive net impact in the quarter. Moving to Page eight. The change in adjusted EBIT is explained by the following variances. Mix price strongly positive, thanks to the enriched product mix sustained by the deliveries of the FF90 excess family, the dodgy chilindri, and the seven units of the four ninety nine P Modificata, the increased contribution from personalization, and a positive country mix supported by The Americas. Let me remind here that throughout the year, the enrichment of the product mix will be less reliant than a Dyson SP three and rather sustained by special series and range models, along with few initial deliveries of the FAT in Q4. Antonio PicconChief Financial Officer at Ferrari00:14:25The remaining variances were due to substantially flat industrial and energy expenses, largely driven by higher racing and innovation activities, but lower G and A in line with model life cycles. Higher SG and A reflecting racing expenses and brand investments, as well as our continuing organizational development. And finally, other was positive, mainly thanks to new sponsorship, partially offset by the comparison with the prior year's release of CAR's environmental provision in The US. Lastly, we had a positive net impact from currency. Percentage margins strengthened in the quarter with EBITDA margin at 38.7 and EBIT margin above 30%, also benefiting from the lower D and A. Antonio PicconChief Financial Officer at Ferrari00:15:16Turning to page nine, our industrial free cash flow generation for the quarter was strong at €620,000,000 and reflected the increase in profitability and the positive change in working capital provision and other, mainly supported by the initial collection of the FAT advances and certain nonrecurrent cash proceeds related to the signing of the new Concorde Agreement, partially offset by capital expenditures. Net industrial debt was €49,000,000 at the March, reflecting the share repurchase program executed in the quarter. As a housekeeping note, please bear in mind that in the second quarter, we are required to pay our income taxes, and the net financial position will reflect the dividend distribution of approximately €530,000,000 and the $20.25 euro bond repayment for roughly €450,000,000 both filing due during this month of May. Moving to Page 10. We confirm the 2025 guidance with a 50 basis points reduction risk on EBIT and EBITDA margins flagged as of March when we updated our commercial policy for The U. Antonio PicconChief Financial Officer at Ferrari00:16:31S. Market following the introduction of higher import tariffs on EU cars. Clearly, we remain vigilant on the global business environment, and we are mindful of the many changes occurred in the last few weeks. Besides The US tariffs that we have addressed with the update of our commercial policy, I refer to the swift change in the foreign exchange rates, mainly the US dollar, which we continue to take out through our hedging policy that provides us with a partial support over the rest of the year. The potential effect of the overall macroeconomic uncertainty and financial market volatility that we keep on monitoring, thanks to the visibility we enjoy. Antonio PicconChief Financial Officer at Ferrari00:17:11Looking more closely at the development of the year, we continue to project a positive product mix and support from raising revenues and lifestyle activities, along with continuous brand investments and higher racing expenses. Given the above, the first half of twenty twenty five is expected to be stronger than the second, in line with the development of the mix and the seasonality of SG and A, lessening expenses, as well as D and A. To conclude, today's strong results represent further progress in the execution of our business plan and in our growth path. Despite the surge of the uncertainty and volatility, our indistinctive business model provides us with solid confidence and the necessary agility for our future. Thanks for your attention, and I turn the call over to Nicoletta. Nicoletta RussoHead of IR at Ferrari00:18:05Thank you, Antonio. Cheryl, we are now ready to open the q and a session. Thank you. Operator00:18:12Thank you. To ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We will now go to your first question. One moment please. Operator00:18:30And your first question comes from the line of Suzy Thibaldi from UBS. Please go ahead. Susy TibaldiExecutive Director at UBS Group00:18:37Hi, thanks for taking my questions. First one, you mentioned about being vigilant on the situation. Can you talk a bit about the differences in trends you are seeing between new customers to Ferrari, existing customers, and your top collectors? Given the very mixed macro picture, are you seeing differences? Of course, your customer is much more resilient than the average customer, but I'm sure there is also some nuances that maybe you can share. Susy TibaldiExecutive Director at UBS Group00:19:06And then secondly, on the '2 '9 '6 Spezale, when you say it's limited in time, is it fair to think maybe two, three years? And in terms of volumes, without obviously, you don't provide volumes, but should we think similar to the '4 '80 '8 Pista? Benedetto VignaCEO & Executive Director at Ferrari00:19:25Okay. It's Ansuzi. Thanks for the question. So second one, it will be limited in time. Yes. Benedetto VignaCEO & Executive Director at Ferrari00:19:31It will be a special version. Like, all special version is is limited in time. It's you you got it well. It's similar to the '4 '80 '8 Pista. Okay? Benedetto VignaCEO & Executive Director at Ferrari00:19:41So this is question number two. Question number one, as I said and also Antonio said that we are very vigilant on the situation because as of end of Q1, with all the data that we got from all the dealership, we don't see any impact on our order book and on the cancellation trend. So we are, let's say, the situation is well under control, but we want to be vigilant because we want to see what's, what's happening. We don't see any difference in trend between new client, collector, and, let's just say, new client and repeaters, we don't see we don't see any any any difference. We have been digging in different, specific places in the world to see in search of this difference, but we did not see. Benedetto VignaCEO & Executive Director at Ferrari00:20:34I think that we should, when we talk about Ferrari, we should do not talk about clients. We should talk about single clients. Each one has its own specificity. So it's always difficult to find a pattern. We look for that because we have a lot of nice tool now of an update analysis, but we don't see any specific pattern. Susy TibaldiExecutive Director at UBS Group00:20:59Thank you. Operator00:21:01Thank you. Your next question comes from the line of Henrik Cosman from Barclays. Please go ahead. Henning CosmanHead of Automotive Research at Barclays00:21:11Yes. Thank you so much. Good afternoon, everybody. Could I please ask about seasonality between Q1 and Q2 within the H1? Just conscious that over the last couple of years, Q1 had been quite a bit weaker than Q2 and wondering if that could be similar again or if we're expecting more stable. Henning CosmanHead of Automotive Research at Barclays00:21:31That's probably one for Antonio. And perhaps one for Benedetto on The U. S. Do you have any elevated inventories at all in The U. S. Henning CosmanHead of Automotive Research at Barclays00:21:42From potentially pre shipping ahead of the tariffs? And do you envisage any impact on the volume cadence at all going forward in the course of the year into next year? Q1 was obviously pretty strong in The U. S. Do you expect anything at all there in terms of phasing? Henning CosmanHead of Automotive Research at Barclays00:21:57Have you seen anything at all in terms of order cancellations at all in context of the tariffs? And if I can squeeze the third one very quickly, if you could just confirm how many Daytonas you shipped in Q1 and how many you have left for Q2 and Q3? Thank you so much. Benedetto VignaCEO & Executive Director at Ferrari00:22:15Thank you, Einig. I'll take the second one and the first one, Antonio will elaborate. So we don't see we have all the data, and we're dealer by dealers, obviously, from all over the world, and we have a specific focus on The U. S. We don't see any specific trend. Benedetto VignaCEO & Executive Director at Ferrari00:22:32Actually, we don't see any impact on tariff. But despite this, as we said, we remain vigilant because, let's say, we need to be careful to catch if there is any small signal picking up. I can tell you also that the last week, I mean, I was in Florida in that specific case. Okay? And the market is very strong. Benedetto VignaCEO & Executive Director at Ferrari00:22:54It's been always very strong and is continues to be very strong with a strong demand across all our models. So I think that, as soon as we have some difference, for sure, we'll make you aware, but we don't see any any impact also because I think that, at least from what we hear from several clients, new and repeaters, that they appreciated our two things of our new commercial policy over there. Number one, that we've been clarifying right away what we intend to do. And two, that we contribute. Okay? Benedetto VignaCEO & Executive Director at Ferrari00:23:29We contribute to this, price increase. We don't we don't ask them to pay all the bill, but we were very clear telling that some models will have no price increase, some others up to the remaining up to a maximum 10%. So they appreciated a lot. The way we behave, the way we put them at the center of what we do, and those are the timely communication on the new terms. Talking about Q1 and Antonio PicconChief Financial Officer at Ferrari00:23:56Q2 cadence and Directionally, please take Q2, lighter than Q1. And this is also in line with the fact that during Q1, we delivered less than 80 Daytona, so lower than last year, but not that far away. While in Q2 and Q3, Daytona will go down and will be zero in Q4. Operator00:24:27Thank you. Operator00:24:28Thank Operator00:24:31you. We will now go to the next question. And your next question comes from the line of Steven Reitman from Bernstein. Please go ahead. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:24:41Yes. Good afternoon. You made a comment that the order book is being led by the Dodichy Cylindery. Could you comment on the personalization trends you're seeing right across the board, whether this is also specifically on that vehicle and also the Purosangue, particularly with Dodichy Cylindri already having a quite elevated price against the ATOL Superfast that it succeeded. And secondly, looking at the bridge on the EBIT bridge and you specifically pointed out in the other line that there was the $18,000,000 reflected the sponsorship, the HP offset by some other factors. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:25:25Does that give us sort of like a reasonable idea of the run rate of the HP sponsorship deal, which suggests this in the region of about $100,000,000 or so? Benedetto VignaCEO & Executive Director at Ferrari00:25:34Thank you, Steven. I take the first one and the second, Antonio. So what we see the personalization of the 12 cylinder, both the Dodichi Chilindre and the Purosangue is in line with, what we have seen before. So we see a strong traction on the three main factors that are driving our, personalization. It means some functional components and then, on the painting and on the carbon, on the carbon finish. Benedetto VignaCEO & Executive Director at Ferrari00:26:04I think these are the three trends we see on this cars as we have seen also in the past. I can tell you that the cars, I mean, the client are looking more and more at personalization and we are preparing ourselves to be able to offer them more and more personalized offer. So this is for the person the second the the first question. The second one Antonio PicconChief Financial Officer at Ferrari00:26:30Yeah. With respect hi, Steven. With respect to the EBIT bridge, the 18,000,000 comes basically from the net of the positive that is related to the sponsorship of Kuderia. And on on that portion, obviously, the fact that we had the the HP sponsorship and the IBM sponsorship coming in represent the bulk of it together with the increase in the in the positive from the commercial revenues related to the F1. And in as a negative sorry. Antonio PicconChief Financial Officer at Ferrari00:27:03And there is another point, which is the easy comp with last year when we had the CO two penalties released less than 10,000,000. On the negative side, in terms of comparison, there is a sort of seasonal effect in comparison with the expenditure of last year on WACC. So on the racing, not related to Formula One. Does it help? Stephen ReitmanAutomotive Equity Analyst at Bernstein00:27:26Thank you. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:27:27Yes. Thank you. Antonio PicconChief Financial Officer at Ferrari00:27:28I'm sorry. And going forward, I mean, in general, it's difficult to project overall, but I do not expect to be a big contributor. The positive one should be related to sponsorship. Then we had some positive last year that should help in terms of adding Q2 and will further fade away during the rest of the quarter. Nicoletta RussoHead of IR at Ferrari00:27:49Just, Stephen, in the light of the to further clarify, as a reminder, we signed HP last year in in April. So clearly after that time, it started an easy comp. So it's not the Nicoletta RussoHead of IR at Ferrari00:28:01rugged project. Antonio PicconChief Financial Officer at Ferrari00:28:02Yeah. You cannot do it. Sorry. I didn't get this question. That's part of the question. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:28:07Cool. Operator00:28:08Thank Operator00:28:09you. Your next question comes from the line of Michael Burnetti from Evercore. Please go ahead. Michael BinettiSenior Managing Director at Evercore ISI00:28:19Hey, guys. Congrats on a great quarter. Thank you just clarify the exact number of Daytonas that you had in the quarter? I know you said it was below 80. But then if I just I guess, if we back out the first quarter results from the year, it looks like as I look at the rest of the year, there's a scenario where EBITDA margin could be anywhere from down 10 or 15 basis points to up 50 basis points. Michael BinettiSenior Managing Director at Evercore ISI00:28:47I'm just curious what are the inputs and scenario that could lead to EBITDA margin being negative in the rest of the year? And then, Benedetto, EV launch, as you think about it and you described it as a masterpiece of technology, Ferrari has always been buying a Ferrari has always been a relationship with a timeless car. And I'm curious as you think about the EV and the focus on technology and how technology ages differently than luxury cars. How do you protect the timelessness element of a Ferrari? And you think about what drives residual values of these cars over time as you move into cars with a bigger technology component? Benedetto VignaCEO & Executive Director at Ferrari00:29:33Thank you. Thank you, Michael. I think the first one will, Antonio will elaborate to take the second one about the electric. I would like that, I agree with what you said, but one thing that, it's not a focus on technology. We focus on the emotion we deliver to our clients. Benedetto VignaCEO & Executive Director at Ferrari00:29:49So, when we inaugurated the the E Building 1 Year ago, we said and when we also we presented the FAT, the supercars, we made it clear we made it clear that all the strategic components of, electrified cars, hybrids, and in the future electric will be done in house in a way that we can guarantee what you are telling that is this timeless feature of our cars. I think this is important and that's the reason why also we did this investment because we want to to have the flexibility and the ability to maintain and to offer our clients the technology that are needed for the future when it comes to the inverter, the battery, the axle, all these things that are distinguishing features of electric cars. And then consider also that our electrica, our Ferrari Electrica will not be it's much more than digital and electric, and you will see start close. So this is the part the first part the second part, and then Antonio is about the the number of Antonio PicconChief Financial Officer at Ferrari00:31:06precise number of Daytona, they were 77. And with respect to the EBITDA margin down during the course of the year, we projected on the basis that the the mix will be lower, and this is goes end in end with reduction of the number of Daytona's and the development of the mix of the rest of the range. And the increase in expenditure, particularly SG and A and R and D and partly related to the development of our racing activities. Michael BinettiSenior Managing Director at Evercore ISI00:31:47Okay. Thanks a lot, guys. I appreciate all the detail. Benedetto VignaCEO & Executive Director at Ferrari00:31:50You're welcome. Antonio PicconChief Financial Officer at Ferrari00:31:50Thank you. Operator00:31:52Thank you. Your next question comes from the line of John Murphy from Bank of America. Please go ahead. Analyst00:32:01Hi. This is actually John Bach on the line for John Murphy. Just first of all, wanted to touch on the tariffs. I know you cited about a 50 basis point EBITDA EBIT margin risk from that. Could you just provide some clarity? Analyst00:32:13Mean, it seems like you're maintaining guidance, but you're highlighting the risks. So should we think about that as the maximum potential impact here? Or do you expect to offset it? Any additional clarity you might be able to provide on that front would be useful. Antonio PicconChief Financial Officer at Ferrari00:32:27Hi, John. Maybe I didn't really answer this one first. Yeah, it's a risk we see, mean, there might be opportunities to upset it, that's why we described it as a risk. However, it depends on a number of moving parts, as of now. So I think the outcome is the one that we have outlined. Analyst00:32:51And then Analyst00:32:53just my other question, Analyst00:32:54and this is a quick one. If you could just talk about the consumer reception so far for the D'Addichi cylindri, be useful. And then also, are you finding demand as consistent across the geographies for that product? Benedetto VignaCEO & Executive Director at Ferrari00:33:08The reception of this car has been very, very good across all the geographies. Clearly, some geographies, there is more appeal because of the tax impact is lower. For example, the DODG ZGL injury impact let's say traction in countries like China is lower because the tax rate is higher. But, so far, I mean, we see a good traction with, let's say, in in different countries, say, use from Scandinavia to US to Latin America to Italy, South Of I mean, South Of Europe. So it's very it's very good traction. Analyst00:33:45Okay. Great. Thank you. That's all I have. Operator00:33:49Thank you. Your next question comes from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:33:58Good afternoon, everyone, and thanks for taking my questions. I have, I think, three. The first one is on the initial collection from the F80. Should we expect further impacts across the year? And if yes, Antonio, can you help us model the impact? Monica BosioEquity Research Analyst at Intesa Sanpaolo00:34:18Because I'm just wondering what's the weight of the collection on the working capital in the first quarter? The second question is on the residual values. You announced the pricing actions in USA. How do you see if any this could impact on the residual values in USA? Any comments on this would be useful. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:34:43And the very last, maybe it's a stupid question, but it's on personalization. So you are implementing pricing actions on the final price on the value of the imported car. And what about personalization? Maybe I missed something. Are we going to modify also the pricing for personalization for those cars that would be delivered in US Morning. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:35:10US. Benedetto VignaCEO & Executive Director at Ferrari00:35:10So this Yeah. This will Benedetto VignaCEO & Executive Director at Ferrari00:35:12be Antonio taking care of all the Antonio PicconChief Financial Officer at Ferrari00:35:13three questions. Yeah. Initial of collection on FAT. I think it has been important in q one. We do not expect the same impact over the rest of the quarter. Antonio PicconChief Financial Officer at Ferrari00:35:25Also because there are deposits that have been anticipated the previous year that will fade away. So another positive, but not the same size is expected around Q4. So the portion of working capital is related to one that's got a big bulk in in q one, and then there will be a lower one in q four. The residual values pricing action in US, in principle, it could drive residuals up. We'll see, aware. Antonio PicconChief Financial Officer at Ferrari00:35:54That's the potential expectations. About personalization, well, last year we intervened already on personalization in terms of price increase. We haven't taken, I mean, when we talk about the overall price increases, we we refer to the price increases of the cars. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:14Okay. Antonio PicconChief Financial Officer at Ferrari00:36:15Overall. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:15Thank Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:18you. Benedetto VignaCEO & Executive Director at Ferrari00:36:19Welcome. Operator00:36:21Thank you. Your next question comes from the line of Thomas Besson from Kepler Cheuvreux. Please go ahead. Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:36:32Thank you very much. It's Thomas at Kepler Cheuvreux. I'd like to come back to somehow Stephen's question on the non care revenues. Historically, I think you were suggesting they were dilutive to profitability, and it feels like they might become even relative to profitability. Could you comment on that concept for Q1 and for the rest of the year? Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:36:54The first question. The second, I understand what you say about the time line of deposits Q1, Q4, but you've already generated half of the guidance for free cash flow. So should we think that your guidance for the full year conservative or an important part of $620,000,000 was effectively working cap? And lastly, just a housekeeping question. Could you confirm the tax rate for the year? Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:37:25And broadly speaking, the direction for CapEx for the year? Thank you very much. Benedetto VignaCEO & Executive Director at Ferrari00:37:30Antonio? Antonio PicconChief Financial Officer at Ferrari00:37:31Yes. The third question, the tax rate, as I said before, approximately 22%. And this is because this year, we enjoy the benefit only on the new patent box regime. Last year, just to remind you, we had the overlap of the new and the previous one that brought the tax rate down. Antonio PicconChief Financial Officer at Ferrari00:37:53Industrial Antonio PicconChief Financial Officer at Ferrari00:37:53free Antonio PicconChief Financial Officer at Ferrari00:37:53cash flow, given the Q one generation, is the guidance conservative, we are never conservative. So well, in principle, there could there might be, chances in that direction. But as I said, there are still several moving parts. Non car revenues impacted the activities for q one and the rest of the year. In terms of, development of the sponsorship, I think all of the agreement that we the relevant agreement is are in place already now. Antonio PicconChief Financial Officer at Ferrari00:38:23So I do not expect this to change in in dimensionally significantly over the course of the year. Obviously, the comparison with last year, maybe bit more uneven. But the run rate is the one that we expect, similarly for for lifestyle. CapEx guidance between 900,000,000 and $950 That's probably the best guidance I can give you as of now. Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:38:53Very clear. Thank you very much. Antonio PicconChief Financial Officer at Ferrari00:38:55You're welcome. Operator00:38:57Thank you. Your next question comes from the line of Tom Narayan from RBC. Please go ahead. Tom NarayanLead Equity Analyst at RBC Capital Markets00:39:06Hi, yeah. Thanks for taking the question. Tom Narayan, RBC. The first one I have is, you know, at the twenty two Investor Day, you guys shared a target of powertrain split of forty-forty-twenty with 40% being full electric of models by 02/1930. I know you guys may update this on October 9, but given the first Ferrari electric is only going to start deliveries in October 2026, is there enough time to get to 40% of models being full electric just three years later? Tom NarayanLead Equity Analyst at RBC Capital Markets00:39:44And then the next question, we've had some time now with Pure Song Way sales, just curious if we have data now that suggests residual values are holding up And also any demographic information, know, who's buying the PureSong Way? Is it more, you know, is it different than the regular Ferrari customer, female versus male, daily users versus collectors, etcetera? Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:40:11Okay. So thank you. Thank you, Tom. First one, forty, forty, twenty. Remember that, during the Capital Market Day, when we provide the split of the PU, the powertrain, we always talk about our offers, not the split of sales. Benedetto VignaCEO & Executive Director at Ferrari00:40:27You remember, because when we talked at that time, our roadmap to offers any kind of traction to the client, we said we want to leave the freedom of choice in the end of the client. So that split was a split of the model we were offering. In terms of update, if any, I'm afraid that you have to wait, let me say in October, when we will provide you and all the colleague a fully a full update. The second one is about the residual values and the demographics of Porosangue. Well, the demographics of Porosangue clients, I think it's not, let's say we have a new client. Benedetto VignaCEO & Executive Director at Ferrari00:41:11Yes. We have in the range of 10%. Ten % of new client. This is what this was what we planned. I posteriorizing we could have been pushing more 20%. Benedetto VignaCEO & Executive Director at Ferrari00:41:24This is a lesson learned for us for the future. But coming also in terms of male and female, what we see is that a lot of times is the, you know, you have the name of the repeaters buying the cars and the partners female that is driving the cars. And then also it's true that, with this car, usually people do a little bit more, kilometers than others. In terms of residual values, I think that, there is a lot of traction for this car. We are collecting order also for end of twenty seven, delivery '28. Benedetto VignaCEO & Executive Director at Ferrari00:42:00And there are some areas, for example, where, these cars are turned within one week, the pre owned, and there is increase on the sticker price. So I think that, today, there are this year is important because we have some model like Purosangue entering 2728. There's some other mod '26, '20 '7, '20 '8, some other models that are ending in 2026. Tom NarayanLead Equity Analyst at RBC Capital Markets00:42:30Got it. Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:42:32Thank you. Operator00:42:35Thank you. Your next question comes from the line of Martino De Ambroggi from Equita. Please go ahead. Martino De AmbroggiSenior Financial Analyst at Equita00:42:44Thank you. Thank you. Good evening, good morning, everybody. Changing the subject, my first question is on Greater China because deliveries are decreasing since second quarter twenty twenty three quarter after quarter. So what is the right or the ideal size that you see for this region going ahead? Martino De AmbroggiSenior Financial Analyst at Equita00:43:06And the second is on the warranty program for hybrid customers. How is progressing the choice of customers to get your warranty program? And the last one, I clearly understand you will probably not provide any answer, but am I right in assuming that the increase in prices that you announced in The U. S. Could worth roughly EUR 100,000,000 on a consolidated basis? Martino De AmbroggiSenior Financial Analyst at Equita00:43:37Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:43:39Well, I think the second one was second because the second the last one, Antonio will take care of it. I think that I I think the first two. The hybrid, we are very precise. It's more it's close to 550 contract for the hybrid warranty programs. Client start to appreciate it because they see a value. Benedetto VignaCEO & Executive Director at Ferrari00:44:00And also, I believe in the first communication, we were not so clear. Now we are improving the clarity of the communication. So we are around the $5.50 contract about this hybrid warranty. China. China, on one side we see the region now is moving. Benedetto VignaCEO & Executive Director at Ferrari00:44:21On the other side, we always said that the Mainland China plus Taiwan will be in the range of 8% to 10%. And let me say today, the cars we are having, mostly 12, Dodi Cilindo, 12 cylinders, are having a little bit too much impacted by tax. And, this one of the car we will launch this year is meant also to fit better the portfolio for that region. So that's the pre the picture on, on the China. For the last one, it Antonio PicconChief Financial Officer at Ferrari00:44:57I will not provide that level of granularity. We said up to 10% for the model that we will be updated, but we reserve the right to intervene, and we're actually moving already. Martino De AmbroggiSenior Financial Analyst at Equita00:45:13Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:45:14Thank you. Operator00:45:16Thank you. There are no further questions. I will hand the call back to Benedetto Vigna. Benedetto VignaCEO & Executive Director at Ferrari00:45:25Thank you. Thank you all for the time and for all your questions. The strong Q1 twenty twenty five result and the continuing desirability of the Ferrari brand full our confidence for our year ahead and also for the future. I wish you good morning or afternoon, and thank you again for your attention. Operator00:45:47Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.Read moreParticipantsExecutivesNicoletta RussoHead of IRBenedetto VignaCEO & Executive DirectorAntonio PicconChief Financial OfficerAnalystsSusy TibaldiExecutive Director at UBS GroupHenning CosmanHead of Automotive Research at BarclaysStephen ReitmanAutomotive Equity Analyst at BernsteinMichael BinettiSenior Managing Director at Evercore ISIAnalystMonica BosioEquity Research Analyst at Intesa SanpaoloThomas BessonHead of Automotive Research at Kepler CheuvreuxTom NarayanLead Equity Analyst at RBC Capital MarketsMartino De AmbroggiSenior Financial Analyst at EquitaPowered by Key Takeaways Ferrari delivered a strong Q1 with revenues of about €1.8 billion (+12.2% at constant currency), EBITDA of €700 million (38.7% margin) and industrial free cash flow exceeding €600 million, driving net profit to €412 million (+17.9%). Double-digit growth was led by an enriched product mix and personalization, with shipments up slightly year-over-year and the order book now well covered through 2026. New 296 GTB and GTS Speciale coupes launched with 880 hp hybrid engines and F1-derived technology, earning rave reviews as “brand-new” models rather than mere special editions. Ferrari Electrica will be revealed in three stages—tech hub in October 2025, interior concept in early 2026 and full debut in spring 2026—with deliveries slated for October 2026. 2025 guidance is maintained despite a 50 bps margin risk from US tariffs and FX volatility, with hedges in place and ongoing vigilance over the macro environment. A.I. generated. May contain errors.Conference Call Audio Live Call not available Earnings Conference CallFerrari Q1 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsSlide DeckPress Release Ferrari Earnings HeadlinesFerrari In Imola: Horrors Of Qualifying And A Race ComebackMay 21 at 5:05 AM | msn.comA Q&A with the fan who made Oscar Piastri out of pizza. Plus: Can Ferrari rebound?May 21 at 12:04 AM | nytimes.comURGENT: Someone's Moving Gold Out of London...People who don’t understand the gold market are about to lose a lot of money. Unfortunately, most so-called “gold analysts” have it all wrong… They tell you to invest in gold ETFs - because the popular mining ETFs will someday catch fire and close the price gap with spot gold. May 21, 2025 | Golden Portfolio (Ad)F1 News Today: Hamilton issues Riccardo Adami update as Ferrari star admits 'playing with the rules'May 20 at 7:04 PM | msn.comF1 2025 Imola Grand Prix weather forecast - Latest from Emilia-Romagna as conditions threaten race day chaosMay 20 at 9:01 AM | msn.comFerrari and a scarlet ray of hope: Hamilton’s Imola charge ignites renewed optimismMay 19 at 4:29 PM | sports.yahoo.comSee More Ferrari Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Ferrari? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Ferrari and other key companies, straight to your email. Email Address About FerrariFerrari (NYSE:RACE) N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. The company offers range, special series, Icona, and supercars; limited edition supercars and one-off cars; and track cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, the company operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks; develops and sells a range of apparel and accessories; and operates franchised and owned Ferrari stores. The company also sells its products through a network of authorized dealers operating points of sale, as well as through its website. The company was founded in 1947 and is headquartered in Maranello, Italy.View Ferrari ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Alibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout?Can Shopify Stock Make a Comeback After an Earnings Sell-Off?Rocket Lab: Earnings Miss But Neutron Momentum Holds Upcoming Earnings Copart (5/22/2025)Ross Stores (5/22/2025)Analog Devices (5/22/2025)Workday (5/22/2025)Autodesk (5/22/2025)Intuit (5/22/2025)Toronto-Dominion Bank (5/22/2025)Bank of Nova Scotia (5/27/2025)AutoZone (5/27/2025)PDD (5/28/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Good day and thank you for standing by. Welcome to the Ferrari twenty twenty five Q1 Results Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. Operator00:00:29I would now like to hand the conference over to your first speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead. Nicoletta RussoHead of IR at Ferrari00:00:37Thank you, Sharon, and welcome to everyone who is joining us. Today, we plan to cover the group's first quarter twenty twenty five operating results, and the duration of the call is expected to be around sixty minutes. Today's call will be hosted by the group CEO, Mr. Benedetto Vigna and the group's CFO, Mr. Antonio Picapicon. Nicoletta RussoHead of IR at Ferrari00:00:58All relevant materials are available in the Investors section of the Ferrari corporate website and at the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on page two of today's presentation, and the call will be governed by this language. With that said, I'd like to turn the call over to Benedetto. Benedetto VignaCEO & Executive Director at Ferrari00:01:30Thank you everyone for joining us today. While the macroeconomic environment remains uncertain, with ongoing geopolitical tensions and market volatility, we at Ferrari have a clear view of our priorities and we are continuing to execute our business plan with discipline, focus and four wheels on the ground. Solidity of our business model, along with the relentless drive of all our partners and employees and the continuous trust of our clients, enable us to navigate the current context. We look ahead with confidence, being vigilant of the situation that surrounds us as we have always been in the last years. In this spirit, we have kicked off this year with good progress on several fronts. Benedetto VignaCEO & Executive Director at Ferrari00:02:21Our product offering continues to evolve. Our new paint shop is proceeding according to plans. We won the much anticipated podiums in the World Endurance Championship in Qatar and in Italy, and we launched our new lifestyle collectibles. Most importantly, we have delivered a strong set of financial results. So let's start from here. Benedetto VignaCEO & Executive Director at Ferrari00:02:45Q1 twenty twenty five saw double digit growth on all key metrics, led by product mix and the continued solid trend in personalizations. A few key numbers to highlight. One, total revenues reached approximately EUR 1,800,000,000.0 with very few incremental deliveries year over year. This confirms once again our strategy on quality of revenues over quantity. Two, we enjoyed a strong profitability with EBITDA close to EUR 700,000,000. Benedetto VignaCEO & Executive Director at Ferrari00:03:213, industrial free cash flow generation reached more than EUR 600,000,000 in the quarters. In Q1, we have also witnessed continued strong brand momentum. Indeed, the order book on current models has evolved as expected and covers the World twenty twenty six with the Dodi Chilindre Cup and Spiders guiding the order intake. This leads me on to the very positive reception that we have witnessed for our recently unveiled two special version, the Coupe and the Spider of the February GTB and February GTS. These new Ferraris are based on the current Berlinetta in our range, the two ninety six GTB and two ninety six GTS. Benedetto VignaCEO & Executive Director at Ferrari00:04:04However, they mark forward progress in both performance managers. With hybrid engine delivering a total of eight eighty horsepower, these cars offer an unprecedented driving experience. But it's not just their sheer power that makes them special. They are also distinguished by meticulous attention to detail, technology in technological innovation and refined design. And as is characteristic of our sports cars, they embody solutions derived from our racing cars, the four ninety nine P, the two 90 six GT3, the two ninety six Challenge and the Formula one. Benedetto VignaCEO & Executive Director at Ferrari00:04:42These two newly born are the latest expressions of our hybrid offering and they have been enthusiastically greeted by our clients. One important client of ours paid deposits to each dealer right after the presentation of last Tuesday, and another one told me, this is truly a brand new car, not just a special edition. It is beautiful, it is very elegant and highly performing, and I love the new gear change experience. The new physical comments, moreover, on the steering wheel are incredibly interactive. Now it is much more comfortable to drive. Benedetto VignaCEO & Executive Director at Ferrari00:05:20As you can see, we are progressing in our product development plan, enriching our offering with exciting new models that allow us to tap into different client needs and the size. But the launch of February Specale, Coupe Spiders, represents just the first of many milestones to look forward to these years. Among these, as we have told you in February, there will be the unveiling of the much anticipated Ferrari Electrica. It will be carried out in a unique innovative way that befits a unique and innovative Ferrari. What does it mean? Benedetto VignaCEO & Executive Director at Ferrari00:05:56It means that this is a masterpiece of technology, designed and unique features. It will be an exciting journey of discovery. It is the first of its kind, rich in every aspect that makes a true Ferrari. For these reasons, we want it to be fully appreciated in every single detail and there is no better way to do this than by revealing it step by step. Three will be the unveiling steps. Benedetto VignaCEO & Executive Director at Ferrari00:06:27The first one, starting in October, at our Capital Market Day, we will show you the technological hub of the Ferrari electric guy. And then in early twenty twenty six, we will give you a glimpse into the look and feel of the interior design concept. And a few months later, in spring next year, the journey will culminate with world premieres, where we will reveal this harmonious brand of technology and design. As planned, deliveries of the Ferrari electrical will commence just months after that in October 2026. Moving on from road to track, let me congratulate the entire team for the historic one, three in Qatar at the opening round of the twenty twenty five FIA World and Euros Championship. Benedetto VignaCEO & Executive Director at Ferrari00:07:19And the following victory at the six hours of IMHOLA, more than half a century after our latest win in Italy, we couldn't have started the racing year in a better way. I was in IMHOLA and I can guarantee you that sharing those unique emotions with a lot of passionate force in Ferrari is an unforgettable experience. In Formula One, the team is more focused than ever on fighting for victories and podium places. The beginning has not been easy. We all know that. Benedetto VignaCEO & Executive Director at Ferrari00:07:47On the other side, we are all fueled by deeply rooted grit and relentless determination to continue to progress. But racing is not the only means we have of channeling the world's passion for Ferrari. Here, I refer to our Life Science strategy, which has made significant progress in recent years. In early April, during the World Renowned Milan Design Week, we presented our new collection of exclusive Ferrari collectibles, Blending timeless Ferrari design with exquisite craftsmanship, these are not mere objects. In fact, each model allows our community of enthusiasts to own and treasure a symbol of the prancing horse's history. Benedetto VignaCEO & Executive Director at Ferrari00:08:36Speaking of community, we have maintained our focus on giving back to our local area with Enzo Ferrari Memorial Half Marathon of Italy on March 30. We shaved this special moment at our home in Maranello, with over 10,000 runners from all over Italy and several countries across the globe, which reinforced our community ties and underlined the importance of sports and health. Through the proceeds from registration and partner contributions, the event will leave a tangible legacy on our region, enabling the creation of a new multi sport field in the Maranello Sport Park by early twenty twenty six. Last but not least, at I would like to share another remarkable achievement with you. Our E Building, the one that we inaugurated last year, has been awarded the prestigious LEED LEED Platinum Certificate, a globally recognized sustainability rating system. Benedetto VignaCEO & Executive Director at Ferrari00:09:40And now, I hand over to Antonio to review the Q1 twenty twenty five results in detail. Antonio PicconChief Financial Officer at Ferrari00:09:47And good morning or afternoon to everyone joining us today. Starting on Page five, we show the highlights of the first quarter, which represents another strong start to the year. Please bear in mind that q one twenty five results were not impacted in any way by the recent introduction of higher tariffs on EU cars imported in The US. Revenues and profitability grew double digits with shipments slightly higher than the previous year and product mix and personalization as the main drivers of growth. Percentage margins were particularly strong in the quarter, thanks to the solid business performance, lower DNA in line with model life cycle, partially offset by higher rating expenses and brand investments. Antonio PicconChief Financial Officer at Ferrari00:10:43Net profit reached €412,000,000 and corresponded to a diluted EPS of €2.3, up 17.9% versus the prior year. Such an improvement also encompass increased financial charges and the higher tax rate, now projected at 22% in light of the benefits from new patent box regime only. Industrial free cash flow generation was very strong and above €600,000,000, and I will highlight the main drivers later on. On page six, we deep dive into our Q1 deliveries, which increased by 33 units. This increase was driven by the Ferrari Roma Spider, the two ninety six GTS, GSF90 XX family, and the Purosangue. Antonio PicconChief Financial Officer at Ferrari00:11:39In the quarter, the Dodichy chilindri continued its ramp up phase, and the first deliveries of the Dodichy chilindri spider commenced. In line with model life cycles, deliveries of the '2 '90 '6 GTB decreased, as well as the ones of the Daytona SP3 in line with plans. Gesophreninitis spider approached the end of its life cycle, while the a 12 Competition A phase out. As customary, the geographic breakdown reflect the different product cycles as well as the company's deliberate allocation strategy. As a result, EMEA and Americas were up versus the prior year, representing three quarters of our total shipments. Antonio PicconChief Financial Officer at Ferrari00:12:25Rest of APAC was almost flat at 18%, and Mainland China, Hong Kong, and Taiwan reduced their share to seven percent. On page seven, the net revenues bridge shows a remarkable double digit growth, up 12.2% versus the prior year at constant currency. The increase in cars and spare parts was driven by the richer product and country mix as well as higher personalizations. Personalizations accounted for more than 19% of total revenues from cars and surplus, just a couple of decimals higher than last year exchange rates, mainly supported by the Daytona SP three full carbon and ESF90 XX family. Sponsorship, commercial, and brand increased thanks to new sponsorship among which the HP title partnership of Studeria Ferrari, which was signed in May 24 and therefore provides the quarter with an easy comp and lifestyle activities, as well as higher commercial revenues linked to the better prior year for MORO-one ranking. Antonio PicconChief Financial Officer at Ferrari00:13:35Currency, net of hedges in place, had a positive net impact in the quarter. Moving to Page eight. The change in adjusted EBIT is explained by the following variances. Mix price strongly positive, thanks to the enriched product mix sustained by the deliveries of the FF90 excess family, the dodgy chilindri, and the seven units of the four ninety nine P Modificata, the increased contribution from personalization, and a positive country mix supported by The Americas. Let me remind here that throughout the year, the enrichment of the product mix will be less reliant than a Dyson SP three and rather sustained by special series and range models, along with few initial deliveries of the FAT in Q4. Antonio PicconChief Financial Officer at Ferrari00:14:25The remaining variances were due to substantially flat industrial and energy expenses, largely driven by higher racing and innovation activities, but lower G and A in line with model life cycles. Higher SG and A reflecting racing expenses and brand investments, as well as our continuing organizational development. And finally, other was positive, mainly thanks to new sponsorship, partially offset by the comparison with the prior year's release of CAR's environmental provision in The US. Lastly, we had a positive net impact from currency. Percentage margins strengthened in the quarter with EBITDA margin at 38.7 and EBIT margin above 30%, also benefiting from the lower D and A. Antonio PicconChief Financial Officer at Ferrari00:15:16Turning to page nine, our industrial free cash flow generation for the quarter was strong at €620,000,000 and reflected the increase in profitability and the positive change in working capital provision and other, mainly supported by the initial collection of the FAT advances and certain nonrecurrent cash proceeds related to the signing of the new Concorde Agreement, partially offset by capital expenditures. Net industrial debt was €49,000,000 at the March, reflecting the share repurchase program executed in the quarter. As a housekeeping note, please bear in mind that in the second quarter, we are required to pay our income taxes, and the net financial position will reflect the dividend distribution of approximately €530,000,000 and the $20.25 euro bond repayment for roughly €450,000,000 both filing due during this month of May. Moving to Page 10. We confirm the 2025 guidance with a 50 basis points reduction risk on EBIT and EBITDA margins flagged as of March when we updated our commercial policy for The U. Antonio PicconChief Financial Officer at Ferrari00:16:31S. Market following the introduction of higher import tariffs on EU cars. Clearly, we remain vigilant on the global business environment, and we are mindful of the many changes occurred in the last few weeks. Besides The US tariffs that we have addressed with the update of our commercial policy, I refer to the swift change in the foreign exchange rates, mainly the US dollar, which we continue to take out through our hedging policy that provides us with a partial support over the rest of the year. The potential effect of the overall macroeconomic uncertainty and financial market volatility that we keep on monitoring, thanks to the visibility we enjoy. Antonio PicconChief Financial Officer at Ferrari00:17:11Looking more closely at the development of the year, we continue to project a positive product mix and support from raising revenues and lifestyle activities, along with continuous brand investments and higher racing expenses. Given the above, the first half of twenty twenty five is expected to be stronger than the second, in line with the development of the mix and the seasonality of SG and A, lessening expenses, as well as D and A. To conclude, today's strong results represent further progress in the execution of our business plan and in our growth path. Despite the surge of the uncertainty and volatility, our indistinctive business model provides us with solid confidence and the necessary agility for our future. Thanks for your attention, and I turn the call over to Nicoletta. Nicoletta RussoHead of IR at Ferrari00:18:05Thank you, Antonio. Cheryl, we are now ready to open the q and a session. Thank you. Operator00:18:12Thank you. To ask a question, you will need to press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. We will now go to your first question. One moment please. Operator00:18:30And your first question comes from the line of Suzy Thibaldi from UBS. Please go ahead. Susy TibaldiExecutive Director at UBS Group00:18:37Hi, thanks for taking my questions. First one, you mentioned about being vigilant on the situation. Can you talk a bit about the differences in trends you are seeing between new customers to Ferrari, existing customers, and your top collectors? Given the very mixed macro picture, are you seeing differences? Of course, your customer is much more resilient than the average customer, but I'm sure there is also some nuances that maybe you can share. Susy TibaldiExecutive Director at UBS Group00:19:06And then secondly, on the '2 '9 '6 Spezale, when you say it's limited in time, is it fair to think maybe two, three years? And in terms of volumes, without obviously, you don't provide volumes, but should we think similar to the '4 '80 '8 Pista? Benedetto VignaCEO & Executive Director at Ferrari00:19:25Okay. It's Ansuzi. Thanks for the question. So second one, it will be limited in time. Yes. Benedetto VignaCEO & Executive Director at Ferrari00:19:31It will be a special version. Like, all special version is is limited in time. It's you you got it well. It's similar to the '4 '80 '8 Pista. Okay? Benedetto VignaCEO & Executive Director at Ferrari00:19:41So this is question number two. Question number one, as I said and also Antonio said that we are very vigilant on the situation because as of end of Q1, with all the data that we got from all the dealership, we don't see any impact on our order book and on the cancellation trend. So we are, let's say, the situation is well under control, but we want to be vigilant because we want to see what's, what's happening. We don't see any difference in trend between new client, collector, and, let's just say, new client and repeaters, we don't see we don't see any any any difference. We have been digging in different, specific places in the world to see in search of this difference, but we did not see. Benedetto VignaCEO & Executive Director at Ferrari00:20:34I think that we should, when we talk about Ferrari, we should do not talk about clients. We should talk about single clients. Each one has its own specificity. So it's always difficult to find a pattern. We look for that because we have a lot of nice tool now of an update analysis, but we don't see any specific pattern. Susy TibaldiExecutive Director at UBS Group00:20:59Thank you. Operator00:21:01Thank you. Your next question comes from the line of Henrik Cosman from Barclays. Please go ahead. Henning CosmanHead of Automotive Research at Barclays00:21:11Yes. Thank you so much. Good afternoon, everybody. Could I please ask about seasonality between Q1 and Q2 within the H1? Just conscious that over the last couple of years, Q1 had been quite a bit weaker than Q2 and wondering if that could be similar again or if we're expecting more stable. Henning CosmanHead of Automotive Research at Barclays00:21:31That's probably one for Antonio. And perhaps one for Benedetto on The U. S. Do you have any elevated inventories at all in The U. S. Henning CosmanHead of Automotive Research at Barclays00:21:42From potentially pre shipping ahead of the tariffs? And do you envisage any impact on the volume cadence at all going forward in the course of the year into next year? Q1 was obviously pretty strong in The U. S. Do you expect anything at all there in terms of phasing? Henning CosmanHead of Automotive Research at Barclays00:21:57Have you seen anything at all in terms of order cancellations at all in context of the tariffs? And if I can squeeze the third one very quickly, if you could just confirm how many Daytonas you shipped in Q1 and how many you have left for Q2 and Q3? Thank you so much. Benedetto VignaCEO & Executive Director at Ferrari00:22:15Thank you, Einig. I'll take the second one and the first one, Antonio will elaborate. So we don't see we have all the data, and we're dealer by dealers, obviously, from all over the world, and we have a specific focus on The U. S. We don't see any specific trend. Benedetto VignaCEO & Executive Director at Ferrari00:22:32Actually, we don't see any impact on tariff. But despite this, as we said, we remain vigilant because, let's say, we need to be careful to catch if there is any small signal picking up. I can tell you also that the last week, I mean, I was in Florida in that specific case. Okay? And the market is very strong. Benedetto VignaCEO & Executive Director at Ferrari00:22:54It's been always very strong and is continues to be very strong with a strong demand across all our models. So I think that, as soon as we have some difference, for sure, we'll make you aware, but we don't see any any impact also because I think that, at least from what we hear from several clients, new and repeaters, that they appreciated our two things of our new commercial policy over there. Number one, that we've been clarifying right away what we intend to do. And two, that we contribute. Okay? Benedetto VignaCEO & Executive Director at Ferrari00:23:29We contribute to this, price increase. We don't we don't ask them to pay all the bill, but we were very clear telling that some models will have no price increase, some others up to the remaining up to a maximum 10%. So they appreciated a lot. The way we behave, the way we put them at the center of what we do, and those are the timely communication on the new terms. Talking about Q1 and Antonio PicconChief Financial Officer at Ferrari00:23:56Q2 cadence and Directionally, please take Q2, lighter than Q1. And this is also in line with the fact that during Q1, we delivered less than 80 Daytona, so lower than last year, but not that far away. While in Q2 and Q3, Daytona will go down and will be zero in Q4. Operator00:24:27Thank you. Operator00:24:28Thank Operator00:24:31you. We will now go to the next question. And your next question comes from the line of Steven Reitman from Bernstein. Please go ahead. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:24:41Yes. Good afternoon. You made a comment that the order book is being led by the Dodichy Cylindery. Could you comment on the personalization trends you're seeing right across the board, whether this is also specifically on that vehicle and also the Purosangue, particularly with Dodichy Cylindri already having a quite elevated price against the ATOL Superfast that it succeeded. And secondly, looking at the bridge on the EBIT bridge and you specifically pointed out in the other line that there was the $18,000,000 reflected the sponsorship, the HP offset by some other factors. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:25:25Does that give us sort of like a reasonable idea of the run rate of the HP sponsorship deal, which suggests this in the region of about $100,000,000 or so? Benedetto VignaCEO & Executive Director at Ferrari00:25:34Thank you, Steven. I take the first one and the second, Antonio. So what we see the personalization of the 12 cylinder, both the Dodichi Chilindre and the Purosangue is in line with, what we have seen before. So we see a strong traction on the three main factors that are driving our, personalization. It means some functional components and then, on the painting and on the carbon, on the carbon finish. Benedetto VignaCEO & Executive Director at Ferrari00:26:04I think these are the three trends we see on this cars as we have seen also in the past. I can tell you that the cars, I mean, the client are looking more and more at personalization and we are preparing ourselves to be able to offer them more and more personalized offer. So this is for the person the second the the first question. The second one Antonio PicconChief Financial Officer at Ferrari00:26:30Yeah. With respect hi, Steven. With respect to the EBIT bridge, the 18,000,000 comes basically from the net of the positive that is related to the sponsorship of Kuderia. And on on that portion, obviously, the fact that we had the the HP sponsorship and the IBM sponsorship coming in represent the bulk of it together with the increase in the in the positive from the commercial revenues related to the F1. And in as a negative sorry. Antonio PicconChief Financial Officer at Ferrari00:27:03And there is another point, which is the easy comp with last year when we had the CO two penalties released less than 10,000,000. On the negative side, in terms of comparison, there is a sort of seasonal effect in comparison with the expenditure of last year on WACC. So on the racing, not related to Formula One. Does it help? Stephen ReitmanAutomotive Equity Analyst at Bernstein00:27:26Thank you. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:27:27Yes. Thank you. Antonio PicconChief Financial Officer at Ferrari00:27:28I'm sorry. And going forward, I mean, in general, it's difficult to project overall, but I do not expect to be a big contributor. The positive one should be related to sponsorship. Then we had some positive last year that should help in terms of adding Q2 and will further fade away during the rest of the quarter. Nicoletta RussoHead of IR at Ferrari00:27:49Just, Stephen, in the light of the to further clarify, as a reminder, we signed HP last year in in April. So clearly after that time, it started an easy comp. So it's not the Nicoletta RussoHead of IR at Ferrari00:28:01rugged project. Antonio PicconChief Financial Officer at Ferrari00:28:02Yeah. You cannot do it. Sorry. I didn't get this question. That's part of the question. Stephen ReitmanAutomotive Equity Analyst at Bernstein00:28:07Cool. Operator00:28:08Thank Operator00:28:09you. Your next question comes from the line of Michael Burnetti from Evercore. Please go ahead. Michael BinettiSenior Managing Director at Evercore ISI00:28:19Hey, guys. Congrats on a great quarter. Thank you just clarify the exact number of Daytonas that you had in the quarter? I know you said it was below 80. But then if I just I guess, if we back out the first quarter results from the year, it looks like as I look at the rest of the year, there's a scenario where EBITDA margin could be anywhere from down 10 or 15 basis points to up 50 basis points. Michael BinettiSenior Managing Director at Evercore ISI00:28:47I'm just curious what are the inputs and scenario that could lead to EBITDA margin being negative in the rest of the year? And then, Benedetto, EV launch, as you think about it and you described it as a masterpiece of technology, Ferrari has always been buying a Ferrari has always been a relationship with a timeless car. And I'm curious as you think about the EV and the focus on technology and how technology ages differently than luxury cars. How do you protect the timelessness element of a Ferrari? And you think about what drives residual values of these cars over time as you move into cars with a bigger technology component? Benedetto VignaCEO & Executive Director at Ferrari00:29:33Thank you. Thank you, Michael. I think the first one will, Antonio will elaborate to take the second one about the electric. I would like that, I agree with what you said, but one thing that, it's not a focus on technology. We focus on the emotion we deliver to our clients. Benedetto VignaCEO & Executive Director at Ferrari00:29:49So, when we inaugurated the the E Building 1 Year ago, we said and when we also we presented the FAT, the supercars, we made it clear we made it clear that all the strategic components of, electrified cars, hybrids, and in the future electric will be done in house in a way that we can guarantee what you are telling that is this timeless feature of our cars. I think this is important and that's the reason why also we did this investment because we want to to have the flexibility and the ability to maintain and to offer our clients the technology that are needed for the future when it comes to the inverter, the battery, the axle, all these things that are distinguishing features of electric cars. And then consider also that our electrica, our Ferrari Electrica will not be it's much more than digital and electric, and you will see start close. So this is the part the first part the second part, and then Antonio is about the the number of Antonio PicconChief Financial Officer at Ferrari00:31:06precise number of Daytona, they were 77. And with respect to the EBITDA margin down during the course of the year, we projected on the basis that the the mix will be lower, and this is goes end in end with reduction of the number of Daytona's and the development of the mix of the rest of the range. And the increase in expenditure, particularly SG and A and R and D and partly related to the development of our racing activities. Michael BinettiSenior Managing Director at Evercore ISI00:31:47Okay. Thanks a lot, guys. I appreciate all the detail. Benedetto VignaCEO & Executive Director at Ferrari00:31:50You're welcome. Antonio PicconChief Financial Officer at Ferrari00:31:50Thank you. Operator00:31:52Thank you. Your next question comes from the line of John Murphy from Bank of America. Please go ahead. Analyst00:32:01Hi. This is actually John Bach on the line for John Murphy. Just first of all, wanted to touch on the tariffs. I know you cited about a 50 basis point EBITDA EBIT margin risk from that. Could you just provide some clarity? Analyst00:32:13Mean, it seems like you're maintaining guidance, but you're highlighting the risks. So should we think about that as the maximum potential impact here? Or do you expect to offset it? Any additional clarity you might be able to provide on that front would be useful. Antonio PicconChief Financial Officer at Ferrari00:32:27Hi, John. Maybe I didn't really answer this one first. Yeah, it's a risk we see, mean, there might be opportunities to upset it, that's why we described it as a risk. However, it depends on a number of moving parts, as of now. So I think the outcome is the one that we have outlined. Analyst00:32:51And then Analyst00:32:53just my other question, Analyst00:32:54and this is a quick one. If you could just talk about the consumer reception so far for the D'Addichi cylindri, be useful. And then also, are you finding demand as consistent across the geographies for that product? Benedetto VignaCEO & Executive Director at Ferrari00:33:08The reception of this car has been very, very good across all the geographies. Clearly, some geographies, there is more appeal because of the tax impact is lower. For example, the DODG ZGL injury impact let's say traction in countries like China is lower because the tax rate is higher. But, so far, I mean, we see a good traction with, let's say, in in different countries, say, use from Scandinavia to US to Latin America to Italy, South Of I mean, South Of Europe. So it's very it's very good traction. Analyst00:33:45Okay. Great. Thank you. That's all I have. Operator00:33:49Thank you. Your next question comes from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:33:58Good afternoon, everyone, and thanks for taking my questions. I have, I think, three. The first one is on the initial collection from the F80. Should we expect further impacts across the year? And if yes, Antonio, can you help us model the impact? Monica BosioEquity Research Analyst at Intesa Sanpaolo00:34:18Because I'm just wondering what's the weight of the collection on the working capital in the first quarter? The second question is on the residual values. You announced the pricing actions in USA. How do you see if any this could impact on the residual values in USA? Any comments on this would be useful. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:34:43And the very last, maybe it's a stupid question, but it's on personalization. So you are implementing pricing actions on the final price on the value of the imported car. And what about personalization? Maybe I missed something. Are we going to modify also the pricing for personalization for those cars that would be delivered in US Morning. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:35:10US. Benedetto VignaCEO & Executive Director at Ferrari00:35:10So this Yeah. This will Benedetto VignaCEO & Executive Director at Ferrari00:35:12be Antonio taking care of all the Antonio PicconChief Financial Officer at Ferrari00:35:13three questions. Yeah. Initial of collection on FAT. I think it has been important in q one. We do not expect the same impact over the rest of the quarter. Antonio PicconChief Financial Officer at Ferrari00:35:25Also because there are deposits that have been anticipated the previous year that will fade away. So another positive, but not the same size is expected around Q4. So the portion of working capital is related to one that's got a big bulk in in q one, and then there will be a lower one in q four. The residual values pricing action in US, in principle, it could drive residuals up. We'll see, aware. Antonio PicconChief Financial Officer at Ferrari00:35:54That's the potential expectations. About personalization, well, last year we intervened already on personalization in terms of price increase. We haven't taken, I mean, when we talk about the overall price increases, we we refer to the price increases of the cars. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:14Okay. Antonio PicconChief Financial Officer at Ferrari00:36:15Overall. Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:15Thank Monica BosioEquity Research Analyst at Intesa Sanpaolo00:36:18you. Benedetto VignaCEO & Executive Director at Ferrari00:36:19Welcome. Operator00:36:21Thank you. Your next question comes from the line of Thomas Besson from Kepler Cheuvreux. Please go ahead. Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:36:32Thank you very much. It's Thomas at Kepler Cheuvreux. I'd like to come back to somehow Stephen's question on the non care revenues. Historically, I think you were suggesting they were dilutive to profitability, and it feels like they might become even relative to profitability. Could you comment on that concept for Q1 and for the rest of the year? Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:36:54The first question. The second, I understand what you say about the time line of deposits Q1, Q4, but you've already generated half of the guidance for free cash flow. So should we think that your guidance for the full year conservative or an important part of $620,000,000 was effectively working cap? And lastly, just a housekeeping question. Could you confirm the tax rate for the year? Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:37:25And broadly speaking, the direction for CapEx for the year? Thank you very much. Benedetto VignaCEO & Executive Director at Ferrari00:37:30Antonio? Antonio PicconChief Financial Officer at Ferrari00:37:31Yes. The third question, the tax rate, as I said before, approximately 22%. And this is because this year, we enjoy the benefit only on the new patent box regime. Last year, just to remind you, we had the overlap of the new and the previous one that brought the tax rate down. Antonio PicconChief Financial Officer at Ferrari00:37:53Industrial Antonio PicconChief Financial Officer at Ferrari00:37:53free Antonio PicconChief Financial Officer at Ferrari00:37:53cash flow, given the Q one generation, is the guidance conservative, we are never conservative. So well, in principle, there could there might be, chances in that direction. But as I said, there are still several moving parts. Non car revenues impacted the activities for q one and the rest of the year. In terms of, development of the sponsorship, I think all of the agreement that we the relevant agreement is are in place already now. Antonio PicconChief Financial Officer at Ferrari00:38:23So I do not expect this to change in in dimensionally significantly over the course of the year. Obviously, the comparison with last year, maybe bit more uneven. But the run rate is the one that we expect, similarly for for lifestyle. CapEx guidance between 900,000,000 and $950 That's probably the best guidance I can give you as of now. Thomas BessonHead of Automotive Research at Kepler Cheuvreux00:38:53Very clear. Thank you very much. Antonio PicconChief Financial Officer at Ferrari00:38:55You're welcome. Operator00:38:57Thank you. Your next question comes from the line of Tom Narayan from RBC. Please go ahead. Tom NarayanLead Equity Analyst at RBC Capital Markets00:39:06Hi, yeah. Thanks for taking the question. Tom Narayan, RBC. The first one I have is, you know, at the twenty two Investor Day, you guys shared a target of powertrain split of forty-forty-twenty with 40% being full electric of models by 02/1930. I know you guys may update this on October 9, but given the first Ferrari electric is only going to start deliveries in October 2026, is there enough time to get to 40% of models being full electric just three years later? Tom NarayanLead Equity Analyst at RBC Capital Markets00:39:44And then the next question, we've had some time now with Pure Song Way sales, just curious if we have data now that suggests residual values are holding up And also any demographic information, know, who's buying the PureSong Way? Is it more, you know, is it different than the regular Ferrari customer, female versus male, daily users versus collectors, etcetera? Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:40:11Okay. So thank you. Thank you, Tom. First one, forty, forty, twenty. Remember that, during the Capital Market Day, when we provide the split of the PU, the powertrain, we always talk about our offers, not the split of sales. Benedetto VignaCEO & Executive Director at Ferrari00:40:27You remember, because when we talked at that time, our roadmap to offers any kind of traction to the client, we said we want to leave the freedom of choice in the end of the client. So that split was a split of the model we were offering. In terms of update, if any, I'm afraid that you have to wait, let me say in October, when we will provide you and all the colleague a fully a full update. The second one is about the residual values and the demographics of Porosangue. Well, the demographics of Porosangue clients, I think it's not, let's say we have a new client. Benedetto VignaCEO & Executive Director at Ferrari00:41:11Yes. We have in the range of 10%. Ten % of new client. This is what this was what we planned. I posteriorizing we could have been pushing more 20%. Benedetto VignaCEO & Executive Director at Ferrari00:41:24This is a lesson learned for us for the future. But coming also in terms of male and female, what we see is that a lot of times is the, you know, you have the name of the repeaters buying the cars and the partners female that is driving the cars. And then also it's true that, with this car, usually people do a little bit more, kilometers than others. In terms of residual values, I think that, there is a lot of traction for this car. We are collecting order also for end of twenty seven, delivery '28. Benedetto VignaCEO & Executive Director at Ferrari00:42:00And there are some areas, for example, where, these cars are turned within one week, the pre owned, and there is increase on the sticker price. So I think that, today, there are this year is important because we have some model like Purosangue entering 2728. There's some other mod '26, '20 '7, '20 '8, some other models that are ending in 2026. Tom NarayanLead Equity Analyst at RBC Capital Markets00:42:30Got it. Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:42:32Thank you. Operator00:42:35Thank you. Your next question comes from the line of Martino De Ambroggi from Equita. Please go ahead. Martino De AmbroggiSenior Financial Analyst at Equita00:42:44Thank you. Thank you. Good evening, good morning, everybody. Changing the subject, my first question is on Greater China because deliveries are decreasing since second quarter twenty twenty three quarter after quarter. So what is the right or the ideal size that you see for this region going ahead? Martino De AmbroggiSenior Financial Analyst at Equita00:43:06And the second is on the warranty program for hybrid customers. How is progressing the choice of customers to get your warranty program? And the last one, I clearly understand you will probably not provide any answer, but am I right in assuming that the increase in prices that you announced in The U. S. Could worth roughly EUR 100,000,000 on a consolidated basis? Martino De AmbroggiSenior Financial Analyst at Equita00:43:37Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:43:39Well, I think the second one was second because the second the last one, Antonio will take care of it. I think that I I think the first two. The hybrid, we are very precise. It's more it's close to 550 contract for the hybrid warranty programs. Client start to appreciate it because they see a value. Benedetto VignaCEO & Executive Director at Ferrari00:44:00And also, I believe in the first communication, we were not so clear. Now we are improving the clarity of the communication. So we are around the $5.50 contract about this hybrid warranty. China. China, on one side we see the region now is moving. Benedetto VignaCEO & Executive Director at Ferrari00:44:21On the other side, we always said that the Mainland China plus Taiwan will be in the range of 8% to 10%. And let me say today, the cars we are having, mostly 12, Dodi Cilindo, 12 cylinders, are having a little bit too much impacted by tax. And, this one of the car we will launch this year is meant also to fit better the portfolio for that region. So that's the pre the picture on, on the China. For the last one, it Antonio PicconChief Financial Officer at Ferrari00:44:57I will not provide that level of granularity. We said up to 10% for the model that we will be updated, but we reserve the right to intervene, and we're actually moving already. Martino De AmbroggiSenior Financial Analyst at Equita00:45:13Thank you. Benedetto VignaCEO & Executive Director at Ferrari00:45:14Thank you. Operator00:45:16Thank you. There are no further questions. I will hand the call back to Benedetto Vigna. Benedetto VignaCEO & Executive Director at Ferrari00:45:25Thank you. Thank you all for the time and for all your questions. The strong Q1 twenty twenty five result and the continuing desirability of the Ferrari brand full our confidence for our year ahead and also for the future. I wish you good morning or afternoon, and thank you again for your attention. Operator00:45:47Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.Read moreParticipantsExecutivesNicoletta RussoHead of IRBenedetto VignaCEO & Executive DirectorAntonio PicconChief Financial OfficerAnalystsSusy TibaldiExecutive Director at UBS GroupHenning CosmanHead of Automotive Research at BarclaysStephen ReitmanAutomotive Equity Analyst at BernsteinMichael BinettiSenior Managing Director at Evercore ISIAnalystMonica BosioEquity Research Analyst at Intesa SanpaoloThomas BessonHead of Automotive Research at Kepler CheuvreuxTom NarayanLead Equity Analyst at RBC Capital MarketsMartino De AmbroggiSenior Financial Analyst at EquitaPowered by