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

Rhea-AI Summary

Ferrari N.V. has announced the purchase of additional common shares under the Euro 350 million share buyback program, with a total invested consideration of Euro 99,454,117.70. The company has purchased a total of 2,726,485 own common shares on EXM and NYSE, including transactions for Sell to Cover, for a total consideration of Euro 686,449,532.94.

Insights

Financial Analyst

Ferrari's announcement of their ongoing share buyback under the Euro 350 million program is a strategic financial decision that can have several implications. From a financial perspective, share buybacks are often perceived as a signal that the company believes its shares are undervalued. By reducing the number of shares outstanding, Ferrari could be aiming to increase earnings per share (EPS), which might make the stock more attractive to investors.

However, the use of cash for buybacks can also be viewed critically, as it suggests that the company may not have more profitable investment opportunities. It's important to evaluate Ferrari's balance sheet to ensure that the buyback doesn't negatively impact its financial health, especially in terms of liquidity and leverage ratios. Additionally, while buybacks can provide short-term price support, they do not guarantee long-term value creation if not accompanied by fundamental business growth.

Market Research Analyst

From a market perspective, the timing and scale of Ferrari's share buyback program might reflect broader market conditions and investor sentiment. The automotive sector, particularly the luxury segment, faces unique challenges and opportunities, such as shifting consumer preferences and the adoption of electric vehicles. Analyzing the impact of these factors on Ferrari's market position and future growth prospects is essential.

Moreover, the communication of the buyback program during the Capital Markets Day and the detailed disclosure on their website demonstrates transparency, which is a key factor in maintaining investor confidence. It's crucial to monitor market reaction to these buybacks, as they can sometimes lead to short-term volatility in the stock price.

Corporate Governance Expert

Share buyback programs are also a reflection of corporate governance practices. In Ferrari's case, the buyback aligns with the strategy announced during their Capital Markets Day, indicating a consistent and planned approach to capital allocation. The decision to return value to shareholders through buybacks must be balanced against other stakeholder interests, such as long-term growth and investment in innovation.

Furthermore, the share buyback affects the distribution of voting power among shareholders, as treasury shares typically do not carry voting rights. This could potentially consolidate control among existing major shareholders or management, which is an important aspect for investors to consider, particularly in terms of corporate control and decision-making.

Maranello (Italy),  February 5, 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   (€)
29/01/2024	EXM	7,008	313.7703	2,198,902.26
30/01/2024	EXM	6,375	320.0324	2,040,206.55
31/01/2024	EXM	5,725	324.4248	1,857,331.98
01/02/2024	EXM	2,798	321.3272	899,073.51
02/02/2024	EXM	4,343	349.7410	1,518,925.16
Total	-	26,249	324.3720	8,514,439.46

(*) 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 February 2, 2024, the total invested consideration has been:

• Euro 99,454,117.70 for No. 308,463 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 February 2, 2024, the Company held in treasury No. 13,650,943 common shares equal to 5.31% 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 February 2, 2024, the Company has purchased a total of 2,726,485 own common shares on EXM and NYSE, including transactions for Sell to Cover, for a total consideration of Euro 686,449,532.94.

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).

For further information:
Media Relations
tel.: +39 0536 949337
Email: media@ferrari.com

Attachment

• FNV BB PR 5 February 2024 ENG

FAQ

What is the total invested consideration for the additional common shares purchased under the share buyback program?

The total invested consideration has been Euro 99,454,117.70 for the additional common shares purchased on the EXM.

How many own common shares has the company purchased on EXM and NYSE under the buyback program?

The company has purchased a total of 2,726,485 own common shares on EXM and NYSE under the buyback program.

Where can I find more details about the buyback program transactions?

Comprehensive details of the transactions carried out under the buyback program are available on Ferrari’s corporate website under the Buyback Programs section.