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 the Euro 350 million share buyback program, with a total invested consideration of Euro 90,939,678.24 for 282,214 common shares purchased on the EXM and USD 30,295,782.71 for 83,738 common shares purchased on the NYSE. The Company now holds 13,624,694 common shares equal to 5.30% of the total issued share capital. Since the start of the multi-year share buyback program in 2022, Ferrari has purchased a total of 2,700,236 own common shares on EXM and NYSE for a total consideration of Euro 677,935,093.48.

Insights

Financial Analyst

Ferrari's recent announcement regarding the continuation of its share buyback program underlines a strategic approach to capital allocation and shareholder value enhancement. The buyback, part of a larger multi-year initiative, indicates the company's confidence in its financial stability and long-term prospects. By reducing the number of shares outstanding, the buyback can potentially increase earnings per share (EPS), a key metric for investors. However, it is important to assess the opportunity cost of this capital deployment, considering whether these funds could have been used for growth investments or debt reduction.

The average purchase price per share provides insight into the company's valuation strategy and the total consideration gives a sense of scale. The treasury shares held as a percentage of the total issued share capital offers a glimpse into the potential for future buybacks or use in equity incentive plans. Investors should monitor the impact on the company's liquidity and leverage ratios, as excessive buybacks can strain financial resources.

Market Research Analyst

The share buyback announcement from Ferrari may signal to the market a bullish stance from the company's management regarding its stock value. It's a form of indirect communication to investors that the company perceives its stock to be undervalued. Such activity can also be a response to external market conditions where a company might aim to stabilize its stock price during volatile periods.

Investors often view share buybacks as a positive sign, leading to a potential uptick in stock price due to the reduced supply of shares and the psychological impact of the company 'investing in itself.' However, it is crucial to contextualize this buyback within the automotive industry's current trends, including the shift towards electric vehicles and the economic factors affecting luxury goods markets.

Economist

From an economic perspective, Ferrari's share buyback program must be evaluated in the context of the broader macroeconomic environment. Current exchange rates, particularly the EUR/USD rate, affect the cost of buybacks on different exchanges and the reported value in company financials. Inflation, interest rates and economic growth projections are also pertinent, as they influence consumer spending power and, consequently, the demand for luxury vehicles.

Furthermore, the timing and scale of such financial maneuvers can reflect the company's expectations for economic conditions. A large-scale, multi-year buyback program may suggest that the company expects to generate sufficient cash flow to support the buyback without compromising its operational needs or growth potential, even in the face of potential economic headwinds.

Maranello (Italy), January 29, 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 (€)
22/01/2024	EXM	7,056	314.1363	2,216,545.73
23/01/2024	EXM	7,186	307.1949	2,207,502.55
24/01/2024	EXM	7,179	307.8384	2,209,971.87
25/01/2024	EXM	7,208	306.3189	2,207,946.63
26/01/2024	EXM	7,020	312.2457	2,191,964.81
Total	-	35,649	309.5159	11,033,931.60

(*) 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 26, 2024, the total invested consideration has been:

• Euro 90,939,678.24 for No. 282,214 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 26, 2024, the Company held in treasury No. 13,624,694 common shares equal to 5.30% 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 26, 2024, the Company has purchased a total of 2,700,236 own common shares on EXM and NYSE, including transactions for Sell to Cover, for a total consideration of Euro 677,935,093.48.

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 29 January 2024 ENG

FAQ

How many common shares has Ferrari purchased as part of the share buyback program?

Ferrari has purchased a total of 2,700,236 own common shares on EXM and NYSE as part of the share buyback program.

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

The total invested consideration for the common shares purchased on the EXM is Euro 90,939,678.24.

How many common shares does Ferrari currently hold in treasury?

As of January 26, 2024, Ferrari holds 13,624,694 common shares in treasury, equal to 5.30% of the total issued share capital.

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

More details about the buyback program transactions are available on Ferrari's corporate website under the Buyback Programs section.