Record Quarterly EBIT, On Track For Another Great Year
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By: Ferrari North Europe

Record Quarterly EBIT, On Track For Another Great Year  Total shipments of 2,332 units, up 118 units (+5.3%)

•Net revenues grew to Euro 920 million, up 5% (+12.8% at constant currencies)

•Adjusted EBITDA(1) of Euro 270 million, margin now at 4% (29.0% without FX hedges(2))

•Adjusted EBIT(1) of Euro 202 million, 260 bps margin increase to 21.9% (21.5% without FX hedges(2))

•Adjusted net profit(1) up 30% to Euro 136 million

•Net industrial debt(1) down to Euro 627 million from December 31, 2016

2017 Outlook confirmed

The Group is expecting the following performance in 2017

•Shipments: & 8,400 including supercars

•Net revenues: > Euro 3.3 billion

•Adjusted EBITDA: > Euro 950 million

•Net industrial debt(3): & Euro 500 million

Maranello (Italy), August 2nd, 2017
- Ferrari N.V. (NYSE/MTA: RACE) ('Ferrari' or the 'Company') today announces its consolidated preliminary results(4) for the second quarter and six months ended June 30, 2017.


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    Shipments totaled 2,332 units in Q2 2017, up 118 units or +5.3% vs. prior year. This achievement was driven by a 36% increase in sales of our 12 cylinder models (V12), while the 8 cylinder models (V8) were substantially in line with prior year. The V12 strong performance was led by the GTC4Lusso and LaFerrari Aperta, partially offset by the F12berlinetta (phasing-out) as well as the F12tdf, that is finishing its limited series run. The 812 Superfast is yet to arrive on the market but already has a waiting list beyond 2018. V8 performance was impacted by the California T, in its 4th year of commercialization, partially offset by the 488 family and the GTC4Lusso T.

    EMEA(5) expanded by 5.0%, with France and Italy growing at double-digit pace, while Germany and United Kingdom recorded mid-single-digit growth. Americas(5) increased by 3.0% and Rest of APAC(5) was up 20.5%, with Australia being a strong contributor. China, Hong Kong and Taiwan(5), on a combined basis, posted a 12.5% decrease due to Ferrari's decision to terminate the distributor in Hong Kong during the fourth quarter of 2016. The new dealership will be fully operational in Q3 2017.

    Net revenues for Q2 2017 were Euro 920 million, an increase of Euro 109 million or +13.5% (+12.8% at constant currencies) from Q2 2016. Revenues in Cars and spare parts(6) (Euro 669 million) were up 14% vs. prior year, supported by higher volumes and positive mix led by the 488 and the GTC4Lusso families as well as LaFerrari Aperta, along with a greater contribution from our personalization programs, pricing increases and FX. This was partially offset by the end of LaFerrari lifecycle in 2016, as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. Engines(7) revenues (Euro 101 million, +42%) showed an increase attributable to strong sales to Maserati, more than offsetting the termination of the rental agreement with a Formula 1 racing team. Sponsorship, commercial and brand(8) revenues (Euro 124 million, +6%) were up mostly due to higher sponsorship revenues, partially offset by lower 2016 championship ranking compared to 2015. Other(9) revenues (Euro 26 million, -20%) down mostly due to the deconsolidation of the European Financial Services business since November 2016.

    Q2 2017 adjusted EBIT(1) was Euro 202 million, up Euro 46 million (+29%) vs. prior year, as a result of higher volume (Euro 16 million) thanks to the GTC4Lusso and the 488 families, together with positive contribution from our personalization programs. This was partially offset by the F12berlinetta phasing-out and the California T in its 4th year of commercialization. Mix was positively impacted (Euro 23 million) by LaFerrari Aperta, strong V12 performance as well as pricing increases, partially offset by LaFerrari, that completed its lifecycle in 2016, as well as the non-registered racing car FXX K and the strictly limited edition F60 America, completing their limited series run in 2016. Research and development costs and industrial costs grew Euro 17 million mainly due to higher D&A and R&D expenses to support product range and components innovation for hybrid technology, partially offset by efficiencies on direct material. SG&A was slightly higher than prior year (Euro 3 million), impacted by the recently approved Long-Term Incentive plan, higher costs related to new directly operated stores and costs related to the 70th anniversary celebrations, partially offset by the deconsolidation of the European Financial Services business since November 2016. FX, excluding hedges, had a positive impact (Euro 6 million) mainly due to USD, partially offset by GBP. Other decreased (Euro 7 million) due to lower 2016 championship ranking compared to 2015, the termination of the rental agreement with a Formula 1 racing team and the deconsolidation of the European Financial Services business since November 2016, partially offset by positive contribution from Engines to Maserati.

    Tax rate reduced to 28.0% in Q2 2017 from 30.7% in Q2 2016, mostly due to the combined effect of the Italian Government's decision to reduce the nominal tax rate to 24% from 27.5% in 2017, additional deductions related to eligible research and development costs and depreciations of fixed assets in accordance with the Italian tax legislation.

    As a result of the items described above, adjusted net profit(1) for the Q2 2017 was Euro 136 million, up Euro 32 million (+30%).

    Industrial free cash flow(1) for the three months ended June 30, 2017 was Euro 92 million, driven by strong adjusted EBITDA(1) of Euro 270 million. This was offset by 2016 tax balance and 2017 first tax advance payments, capex of Euro 82 million and Euro 9 million of net change in working capital due to inventory increase driven by the projected volume growth in line with our 2017 outlook. Other was impacted by accruals and reserves related to deferred compensation as well as provisions partially offset by lack of contribution from advances of LaFerrari Aperta.

    Net industrial debt(1) at June 30, 2017 decreased to Euro 627 million from Euro 653 million at December 31, 2016 thanks to strong industrial free cash flow(1) generation, notwithstanding the cash distribution of Euro 120 million.

    2017 Outlook confirmed

    The Group is expecting the following performance in 2017:

    •Shipments: & 8,400 including supercars

    •Net revenues: > Euro 3.3 billion

    •Adjusted EBITDA: > Euro 950 million

    •Net industrial debt: ' Euro 500 million, including a cash distribution to the holders of common shares and excluding potential share repurchases

    Formula 1

    Scuderia Ferrari fights at the top for the 2017 season and the results are: 12 podiums in 11 races, with Sebastian Vettel winning 4 races so far and heading the Drivers' Championship.

    The Ferrari turbo V8 wins 'The International Engine of the Year Award'

    For the second year running, the 3.9-litre twin-turbo V8 that powers the 488 GTB, 488 Spider and, in a slightly smaller displacement, the California T and GTC4Lusso T, has taken the outright 'International Engine of the Year Award'.

    Ferrari takes the 'Red Dot: Best of the Best' design award for the third year running

    For the third year running, Ferrari has taken the 'Red Dot: Best of the Best' award for the maximum expression of design quality and ground-breaking design. The model to receive the top award of the prestigious annual Product Design competition was the Ferrari J50, the strictly limited series of bespoke cars built to commemorate the 50th anniversary of Ferrari in Japan.

    Subsequent Events

    On July 24th, 2017 Ferrari and UPS have renewed the sponsorship agreement, based on which the UPS brand will continue to appear on the Scuderia Ferrari's single-seaters and the official drivers' racing suits. The multi-year agreement continues the collaboration started in 2013.

    On July 28th, 2017 Scuderia Ferrari has reached a multi-year agreement with Sauber F1 Team, by virtue of which the Swiss Team will be fitted with the Power Units built at the Maranello factory.

    About Ferrari

    Ferrari is among the world's leading luxury brands focused on the design, engineering, production and sale of the world's most recognizable luxury performance sports cars. Ferrari brand symbolizes exclusivity, innovation, state-of-the-art sporting performance and Italian design. Its history and the image enjoyed by its cars are closely associated with its Formula 1 racing team, Scuderia Ferrari, the most successful team in Formula 1 history. From the inaugural year of Formula 1 in 1950 through the present, Scuderia Ferrari has won 228 Grand Prix races, 16 Constructor World titles and 15 Drivers' World titles. Ferrari designs, engineers and produces its cars in Maranello, Italy, and sells them in over 60 markets worldwide.

  • Photo credit: Ferrari North Europe
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