Ferrari Capital Markets DAY, 2022-2026 Strategic Plan

Rhea-AI Summary

Ferrari's Strategic Outlook (2023-2026)

Ferrari plans to launch 15 new models, maintaining exclusivity, with Icona and Supercar models comprising under 5% of total volumes. The Purosangue will be unveiled in September 2022, contributing less than 20% to annual shipments. By 2026, the product mix will consist of 40% ICE and 60% hybrid/electric vehicles. Expected EBITDA will reach Euro 2.5-2.7 billion with a margin of 38%-40%. A capital expenditure of Euro ~4.4 billion supports product development, while a dividend payout will rise to 35% of net income.

Positive

• Projected EBITDA of Euro 2.5-2.7 billion by 2026, reflecting strong financial growth.
• Capital expenditures of Euro ~4.4 billion focused on product development and infrastructure.
• Increase in dividend payout ratio from 30% to 35% of adjusted net income from 2022 onward.
• Strong industrial free cash flow projected at Euro 4.6-4.9 billion over 2022-2026.

Negative

• None.

THE COMMITMENT TO UNIQUENESS, FURTHER ENRICHING THE PORTFOLIO

• 15 new launches between 2023 and 2026.
• Over the plan period, on average, Icona and Supercar models will represent less than 5% of total volumes, Special series will be around 10%.
• Purosangue to be unveiled in September 2022. Its yearly average contribution to shipments will remain below 20% over its lifecycle.
• The highly awaited new Supercar will arrive within the plan period.
• The first full electric Ferrari will be unveiled in 2025, as previously announced.

THREE POWERTRAINS WITH DISTINCTIVE DRIVING EMOTIONS

• By 2026, the product offering will be 40% ICE, 60% hybrid and full electric.
• The evolution of ICE, an essential part of the Company’s heritage, will continue.
• Hybrid powertrains will continue to benefit from the technological transfer of Ferrari’s racing experience.
• Electric engines will be designed, handcrafted and assembled in Maranello, to ensure a unique driving experience also derived from racing solutions.

ENHANCING VALUE

• The plan privileges revenue over volume and entails strong mix/price contribution, reaching in 2026 an EBITDA of Euro 2.5-2.7 billion with an EBITDA margin of 38%-40%.
• Cumulated capital expenditures of Euro ~4.4 billion to fuel product development, of which ~75% focused on products and ~25% on infrastructures.
• Consistently generating strong cumulated industrial free cash flow of Euro 4.6-4.9 billion over the 2022-2026 plan period.
• Shareholders will be rewarded through a dividend pay-out increased from 30% to 35% of adjusted net income from 2022 onward and a shares repurchase program of Euro ~2 billion from now to 2026.

TAKING DELIBERATE ACTIONS TO ACHIEVE CARBON NEUTRALITY BY 2030

• For Scope 1 and 2, Ferrari is implementing biomethane for the trigenerator, installing photovoltaic panels and fuel cell based systems.
• For Scope 3, electrification will reduce the vehicle use phase CO_2e emissions (at least -50% on average per car by 2030), additionally Ferrari is exploring solutions to reduce (at least -30% on average per car by 2030) the otherwise growing emissions of raw materials mainly related to the battery module.
• Ferrari is committed to set Science based targets in line with 1.5°C pathway.

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¹ Please refer to public filings for complete notes and definitions of non-GAAP financial measures

²  SBTi OEMs sector policy currently under revision, Scope 3 targets subject to stricter requirements

Attachments

• 2022.06.16_Ferrari_press release Capital Markets Day 2022
• 2022.06.16_Ferrari_press release Capital Markets Day 2022

FAQ

What is Ferrari's EBITDA target for 2026?

Ferrari aims for an EBITDA of Euro 2.5-2.7 billion by 2026.

How much is Ferrari investing in capital expenditures?

Ferrari plans to invest approximately Euro 4.4 billion in capital expenditures.

What is the planned dividend payout ratio for Ferrari?

The dividend payout ratio for Ferrari will increase from 30% to 35% of adjusted net income from 2022 onward.

What percentage of Ferrari's product offering will be hybrid and electric by 2026?

By 2026, Ferrari's product offering will consist of 60% hybrid and electric vehicles.

When is the unveiling of Ferrari's first full electric vehicle?

Ferrari's first full electric vehicle is set to be unveiled in 2025.