Ferrari

(22.91% stake and 32.75% of voting rights on issued capital)

Key consolidated data of Ferrari reported in the year 2018 are as follows:

Shipments

Shipments totaled 9,251 units in the year 2018 with an increase of 853 units (+10.2%) compared to the prior year. This achievement was driven by a 19.6% increase in sales of the 12-cylinder models (V12), while the 8-cylinder models (V8) grew by 7.3%. The V12 performance was mainly led by the 812 Superfast, partially offset by lower sales of La Ferrari Aperta that finished its limited series run. V8 performance was led by the ramp up of the Ferrari Portofino as well as the newly launched special series 488 Pista.

Net revenues

Net revenues for 2018 increased by a few million to €3,420 million (+0.1% at current currency and +3.2% at constant currency compared to the prior year.

Revenues in Cars and spare parts were €2.535 million (+3.2% at current currency or +6.9% at constant currency compared to prior year), supported by higher volumes led by the 812 Superfast, as well as the ramp up of the Ferrari Portofino and the 488 Pista. Additionally, pricing and personalization programs positively contributed along with deliveries of the Ferrari J50 and first deliveries of the FXX K EVO, which was partially offset by lower sales of LaFerrari Aperta.

The erosion in Engines revenues (€284 million, -23.8% at current currency and constant currency) reflected lower shipments to Maserati.

Sponsorship, commercial and brand revenues (€506 million, +2.4% at current currency or 5.3% at constant currency) were up thanks to stronger revenues from sponsorship as well as a higher 2017 championship ranking compared to 2016, partially offset by lower sales generated by other brand related activities.

EBIT

EBIT for 2018 was €826 million, an increase of €51 million, (+6.6%), from €775 million for 2017; the increase in EBIT was primarily attributable to the combined effects of positive volume impact (€118 million): a positive contribution from other supporting activities of €26 million, a decrease in research and development costs of €14 million and in selling, general and administrative costs of €2 million, partially offset by a negative product mix of €17 million and negative foreign currency exchange impact of €92 million (including foreign currency hedging instruments) primarily driven by fluctuations in the U.S. Dollar, the Pound Sterling and the Japanese Yen compared to the Euro).

The positive volume impact of €118 million was attributable to an increase in total shipments, driven by the 812 Superfast, the Ferrari Portofino and the 488 Pista. The negative product mix of €17 million was primarily attributable to the combined impact of lower sales of LaFerrari Aperta and the strong performance of the Ferrari Portofino, partially offset by the 812 Superfast, as well as pricing increases and deliveries of the strictly limited-edition Ferrari J50 and the FXX K EVO. The positive contribution from other supporting activities of €26 million was primarily attributable to sponsorship activities, a higher 2017 championship ranking compared to 2016 and a favorable ruling on a prior year’s legal dispute, partially offset by a lower contribution from other brand related activities and engines supplied to Maserati.

Net industrial debt

Net industrial debt at 31 December 2018, after €100 million of share buybacks, was €340 million (-28.0%) compared to €473 million at 31 December 2017.

2019 Outlook

Ferrari Group is expecting the following performance in 2019:

• Net revenues: more than €3.5 billion, over 3% growth compared to 2018
• Adjusted EBITDA: €1.2 billion – €1.25 billion, approximately 10% growth compared to 2018
• Adjusted EBIT: €0.85 billion – €0.9 billion, approximately 6% growth compared to 2018
• Adjusted diluted EPS: €3.50 – €3.70 per share, approximately 6% growth compared to 2018
• Industrial free cash flow: approximately €0.45 billion, over 10% growth compared to 2018