Ferrari

(22.91% stake 34.54% of voting rights on issued capital)

Key consolidated data of Ferrari reported in the first half of 2019 are as follows:

Shipments

Shipments totaled 5,281 units in the first half of 2019 with an increase of 690 units (or 15%) compared to the prior period of 2018. This achievement was driven by an increase in sales of the 8-cylinder models (V8), while the 12-cylinder models (V12) decreased by a few units. The performance was mainly led by robust deliveries of the Ferrari Portofino as well as the 812 Superfast.

Net revenues

Net revenues in the first half of 2019 were €1,924 million, an increase of €187 million, or 10.8% (an increase of 8.9% on a constant currency basis) from €1,737 million for the first half of 2018. The increase was attributable to the combination of a €219 million increase in cars and spare parts, a €7 million increase in sponsorship, commercial and brand and a €7 million increase in other, partially offset by a €46 million decrease in engines.

The increase of €219 million in cars and spare parts revenues was primarily attributable to positive volume impact, as well as greater contribution from the personalization programs and deliveries of the FXX K EVO. In particular, total shipments increased by 690 cars compared to the prior year (or 15.0%), primarily attributable to a 20.5% increase in V8 models, while V12 models were substantially in line with the prior year. The increase in shipments was mainly driven by the Ferrari Portofino and the 812 Superfast, as well as the ramp up of the 488 Pista and the first deliveries of the 488 Pista Spider, partially offset by the phase-out of the 488 GTB and 488 Spider, as well as the LaFerrari Aperta, which finished its limited series run in 2018.
Shipments during the period were impacted by a shift in geographical mix in favor of Mainland China as a result of the decision to accelerate client deliveries in advance of the early introduction of new emissions regulations and with lower shipment to U.S. market reflecting the phase out within the 488 family.
Engines revenues were €111 million, a decrease of €46 million (29.3%) from €157 million for the first half of 2018.
The decrease was mainly attributable to a decrease in net revenues generated from the sale of engines to Maserati.

Sponsorship, commercial and brand revenues were €259 million for the first half of 2019, an increase of €7 million, or 2.8%, from €252 million for the first half of 2018. The increase was primarily attributable to positive foreign currency exchange impact, as well as higher revenues from Formula 1 racing activities.

EBIT

EBIT for the first half of 2019 was €471 million, an increase of €43 million (+10%) from €428 million for the first half of 2018. The increase was primarily attributable to a positive volume impact (€87 million), partially offset by a negative product mix and price impact of €17 million, an increase in research and development costs of €16 million, an increase in selling, general and administrative costs of €6 million, a negative contribution from other supporting activities of €31 million. To be noted also the positive foreign currency exchange impact of €26 million, primarily driven by the strengthening of the U.S. Dollar compared to the Euro.

The positive volume impact of €87 million was attributable to an increase in shipments, driven by the Ferrari Portofino and the 812 Superfast, as well as the ramp up of the 488 Pista and the first deliveries of the 488 Pista Spider, partially offset by the phase-out of the 488 GTB and the 488 Spider. The negative range models product mix was partially offset by the combined positive impact from our personalization programs and deliveries of the FXX K EVO.

Net industrial debt

Net industrial debt at 30 June 2019 was €353 million, with a decrease of €17 million from €370 million at 31 December 2018. The decrease reflects the positive free cash flow partially offset by the distribution of the annual dividend, the purchase of Ferrari’s shares under the Company buy-back program and the impact of adoption of IFRS 16 -Leases on 1 January 2019.

2019 Outlook

Confirming Guidance approaching the high end of the range on all metrics and increasing industrial free cash flow target at prevailing exchange rates:

• Net revenues: more than €3.5 billion;
• Adjusted EBITDA: €1.2 billion - €1.25 billion;
• Adjusted EBIT: €0.85 billion - €0.9 billion;
• Adjusted diluted EPS: €3.50 - €3.70 per share;
• Industrial free cash flow: more than €0.55 billion (from approximately €0.45 billion).