Ferrari N.v.: Periodic Report on the Buyback Program

Rhea-AI Summary

Ferrari N.V. has announced the purchase of additional common shares as part of a multi-year share buyback program. The company has invested a total consideration of Euro 79,905,746.64 for 246,565 common shares purchased on the EXM and USD 30,295,782.71 for 83,738 common shares purchased on the NYSE. As of January 19, 2024, the Company held in treasury 13,589,045 common shares equal to 5.29% of the total issued share capital.

Insights

Financial Analyst

The share buyback program initiated by Ferrari N.V. represents a significant financial strategy that can have a multifaceted impact on the company's stock market performance. Share buybacks are often perceived positively by the market as they can indicate that a company believes its stock is undervalued and that it has strong confidence in its future prospects. By reducing the number of shares available in the market, buybacks can lead to an increase in earnings per share (EPS), potentially boosting the stock price. However, the effectiveness of such programs largely depends on the timing and the market conditions.

From a financial standpoint, the allocation of substantial funds for share repurchases must be weighed against other potential uses of capital, such as investment in growth opportunities or debt reduction. The fact that Ferrari is committing a sizeable portion of capital towards repurchasing its own shares suggests a strategic decision to invest in the company itself, possibly reflecting a lack of more attractive investment opportunities or a desire to optimize capital structure.

Investors and analysts should monitor the impact of these buybacks on Ferrari's financial metrics, such as return on equity (ROE), debt levels and liquidity ratios, to assess the long-term sustainability of this strategy. Additionally, the market's reaction to the buyback announcement and execution can provide insights into investor sentiment regarding the company's valuation and future performance.

Market Research Analyst

Ferrari's share buyback announcement should be considered within the broader context of the luxury automotive industry and the company's competitive positioning. The luxury car market is susceptible to economic cycles and consumer spending on high-end vehicles can be a reflection of broader economic health. As a market research analyst, observing consumer trends, particularly in the high-net-worth segment, is crucial to predict the potential impact of such financial maneuvers on the company's performance.

Additionally, Ferrari's brand strength and exclusive market niche provide it with a certain resilience against market fluctuations. The company's strategy to repurchase shares could be interpreted as a move to reinforce brand value and exclusivity by signaling financial robustness and shareholder value maximization. It's important to consider how this buyback program aligns with Ferrari's overall marketing and brand strategy and whether it will further cement its position as a leading luxury automaker.

Economist

From an economic perspective, Ferrari's decision to engage in a multi-year share buyback program could be indicative of broader economic trends. For instance, if the automotive sector is experiencing a period of growth, the buyback could be seen as a move to capitalize on positive market conditions and reinforce investor confidence. Conversely, if the sector is facing economic headwinds, the buyback might be a defensive strategy to prop up the share price in the face of declining sales or profit margins.

Moreover, the timing and scale of the buyback program could reflect the company's assessment of the opportunity cost of capital. In a low-interest-rate environment, for example, the cost of borrowing to finance buybacks could be relatively low, making the strategy more attractive. Conversely, in a high-interest-rate environment, the decision to buy back shares could indicate that the company has a surplus of capital and is not exposed to the risks of increased borrowing costs.

An economist would also consider the impact of such financial activities on shareholder wealth distribution and the potential implications for income inequality, as share buybacks can disproportionately benefit shareholders over other stakeholders, such as employees or the broader community.

ranello (Italy),  January 22, 2024 – Ferrari N.V. (NYSE/EXM: RACE) (“Ferrari” or the “Company”) informs that the Company has purchased, under the Euro 350 million share buyback program announced on November 7, 2023, as the fourth tranche of the multi-year share buyback program of approximately Euro 2 billion expected to be executed by 2026 in line with the disclosure made during the 2022 Capital Markets Day (the “Fourth Tranche”), the additional common shares - reported in aggregate form, on a daily basis - on the Euronext Milan (EXM) as follows:

Trading Date (dd/mm/yyyy)	Stock Exchange	Number of common shares purchased	Average price per share excluding fees (€)	Consideration excluding fees   (€)
11/01/2024	EXM	6,890	321.5618	2,215,560.80
12/01/2024	EXM	6,920	319.5105	2,211,012.66
15/01/2024	EXM	7,026	315.8176	2,218,934.46
16/01/2024	EXM	6,979	315.3023	2,200,494.75
17/01/2024	EXM	6,990	315.1095	2,202,615.41
18/01/2024	EXM	6,931	318.1363	2,205,002.70
19/01/2024	EXM	6,735	318.8129	2,147,204.88
Total	-	48,471	317.7328	15,400,825.65

(*) translated at the European Central Bank EUR/USD exchange reference rate as of the date of each purchase

Since the announcement of such Fourth Tranche till January 19, 2024, the total invested consideration has been:

• Euro 79,905,746.64 for No. 246,565 common shares purchased on the EXM
• USD 30,295,782.71 (Euro 27,798,654.09*) for No. 83,738 common shares purchased on the NYSE.

As of January 19, 2024, the Company held in treasury No. 13,589,045 common shares equal to 5.29% of the total issued share capital including the common shares and the special voting shares, net of shares assigned under the Company’s equity incentive plan.

Since the start of the multi-year share buyback program of approximately Euro 2 billion announced during the 2022 Capital Markets Day, on July 1, 2022, until January 19, 2024, the Company has purchased a total of 2,664,587 own common shares on EXM and NYSE, including transactions for Sell to Cover, for a total consideration of Euro 666,901,161.87.

A comprehensive overview of the transactions carried out under the buyback program, as well as the details of the above transactions, are available on Ferrari’s corporate website under the Buyback Programs section (https://www.ferrari.com/en-EN/corporate/buyback-programs).

Attachment

• FNV BB PR 22 January 2024 ENG

FAQ

How many common shares did Ferrari N.V. purchase on the EXM as part of the share buyback program?

Ferrari N.V. purchased a total of 2,664,587 own common shares on EXM and NYSE, including transactions for Sell to Cover, for a total consideration of Euro 666,901,161.87.

What was the total invested consideration for the common shares purchased on the EXM?

The total invested consideration for the common shares purchased on the EXM was Euro 79,905,746.64 for 246,565 common shares.

How many common shares did Ferrari N.V. hold in treasury as of January 19, 2024?

As of January 19, 2024, the Company held in treasury 13,589,045 common shares equal to 5.29% of the total issued share capital.