Ferrari N.V. (NYSE:RACE) Q2 2023 Earnings Call Transcript

Operator: Thank you for your question. We are now taking the next question. And the next question from Monica Bosio from Intesa Sanpaolo. Please go ahead. Your line is open.

Monica Bosio: Thank you and good afternoon. I have two questions. The first one is on Purosangue. You opened the order book for 2026. I was wondering if you can give us some flavor on how it’s going and how long does the order book for Puritan stands now? The second question, I have three actually, the second is on China, I perfectly understand that the distribution of the shipments for the quarter do not reflect the trend of the demand. But I remember that in the first quarter you told us that by year end shipments in China will not be in excess of 10%, is it right? Can you confirm also in this occasion? And the third one is on the new special series, I was wondering if you can give us a flavor on the breakdown of the customers by regions, if there is a specific concentration in one region or in another. And if you think that the new special series will carry a higher weight of personalization or not specifically as for the carbon component? Thank you very much.

Benedetto Vigna: Thank you, Monica. So let’s start from the first one, the story of the Purosangue. As we told you last time in May, we reopened the orders for 2026 and I can tell you that it’s going very well. We are collecting, let’s say, orders for the final phase, okay. So here it’s the car continues to have a very, very strong traction. The second one was about China shipment. You remember very well we said that we deliberately fixed let’s say the sales, the shapes of our shipment, let me say to 10%, 10%-11%. And I think this is, I mean we are on track with this plan. And then about the customer, if I understand well, I will repeat what is if you see any change in the customer base pattern, that’s what I understood, the customer penetration.

Let’s say the special series, let me say that we are the SF90XX, both Stradale and Spiders. Let’s say we are reflecting if you want the same pattern of the top VIP clients. So there are some regions clearly that do not have yet too many clients, that do not have a big allocation, because remember that the special series is reserved to the top part of our client pyramid. So the traction of this car has been very strong. The people, I mean, I attended the couple of session of the presentation of our colleague from engineers and marketers and I can tell you that when the car was unveiled, even without stepping in the car, several people I was with European, I was with Asian, I was with American and Japanese, they all laughed let me say the cars.

So when it comes to the story of personalization, it’s what Antonio, what I said during this our introduction, we see this trend that is better than expected. The people are let’s say more and more happy to add personalization to the car. The carbon look, it’s something that we are discovering as an interesting trend definitely.

Monica Bosio: Okay, thank you Benedetto, thank you Antonio.

Antonio Picca Piccon: Gracias Monica.

Operator: Thank you for your question. We are now taking the next question. And the next question is from Henning Cosman from Barclays. Please go ahead. Your line is open.

Henning Cosman: Hi. Thank you very much for taking the question. The first one is on the order book. I just want to make sure I’m not missing something or reading too much or too little into the attributes you’re using for your order book and order intake. So when you say solid order book or robust order intake, is that in any way less than you have previously indicated, I thought we had previously talked about record as an attribute or even sold out when discussing individual models. So I just want to make sure we’re not missing anything there. If there’s anything further you want us to read into the attributes, if you could please let us know? And perhaps another way about asking about the margin trajectory in H2 as a second question, when we talk about personalizations, I appreciate it was a positive surprise and H1 both Q1 and Q2 and Antonio you said it’s reflected in the full year guidance increase already, I understand that.

But could you please perhaps help us understand if we are now expecting a continuously higher personalization rate, so are we basically now at the new run rate and we are extrapolating that or are your expectations for the second half that it’s as low as you had originally expected and you think H1 was more of a one off and we’re now dropping back to your original expectations both perhaps for the full year 2023 and beyond if you could? Thank you very much.

Benedetto Vigna: Thank you, Henning. I think that, I’ll take the first one and Antonio will take the second on the personalization trend and the margin. I like your question, when you say solid or robust. Well for us solid or robust means that the order book of this quarter is higher than the previous quarter. It’s a good point. We’ll make sure that in the next call we’ll have only one name, one adjective. But this means, for us means that today is bigger than it was. So trust us next year, next quarter, we’ll use only one word. The personalization and margin H2, may be before coming to that, I think you asked also about the order intake. Be mindful that this depends also on the number of models that are available for order.

So they may change from month-to-month. So there are periods of time when we are open for taking order for a number, a larger number of models and some other periods such as today for example where we just have two. So today we have two hybrids and two thermal, we have 296 GTB.