Ferrari N.V. (NYSE:RACE) Q2 2023 Earnings Call Transcript - Page 4 of 6 - InvestingChannel

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

Antonio Picca Piccon: And we do respect your question which is a very important one. Personalization I think I mentioned already on a number of times. On personalization we give the flexibility of our clients to define what they want to have on their car between four and three months before delivery, which gives us visibility which is partial during the course of the year. Based on what we know today, I think we are confident that for the rest of 2023 we will remain in line with the flow that we have seen in during the first half. Okay? But obviously it becomes difficult to project any further and this is one of the reasons why we said this is at the root of the improvement of the guidance that we’ve just delivered today. Hope this helps.

Henning Cosman: Yes, that’s great. Thank you very much and looking forward to tomorrow as well. Thank you.

Benedetto Vigna: Thank you.

Operator: Thank you for your question. We are now taking the next question. And the next question is from Stephen Reitman from Societe Generale. Please go ahead. Your line is open.

Stephen Reitman: Thank you. Good afternoon. Question first of all on the personalization, as you reopen the order book for 2026 build slots having closed it earlier this year, when you said that the demand was four to five times higher than you’d be necessitating when you first launched the vehicle. I think the question was asked before, but I didn’t quite maybe get the answer for how long is it likely this the order window is going to be open on the 26th build slots, or are you already looking at 2027 build slots as well? You also mentioned on the personalization that it was spread across the models. It would seem to me that it was one of the reasons why the personalization was also going up was because in order to secure even a build slot for Purosangue, it probably makes sense for your customers to order as heavily and personalized as possible in order to increase the attractiveness and to make them a more desirable customer than a vehicle that is maybe less heavily specked?

Thank you.

Benedetto Vigna: Hi Stephen. So you’re right at the beginning we had to stop the order taking order of Purosangue because the speed of order intake was four or five times higher than we planned. Then we settled, we organized it also we’ve always supply chain. So we are planning to take order Purosangue for all 2026. Okay? This is the answer to your first question. Clearly when you have a car with four seats instead of two, you have more option on the personalization to offer to the client. But I can tell you that if I go to see the trend of the personalization across all, let me see the model, all the cars, I mean there is a trend that is touching all our models and this is true across all geographies. I think that the people are considering that we said clearly we do not want to increase a lot device.

They are more tailoring the cars like their personal dress. So they’re putting a lot of features. Carbon look is one of these deliveries. The Scudetto, I think it is there are a lot of features that in the past the client we’re not looking at so much. This is what we see. This is what we see. It can be also reflected in really we see it in Europe, we see in Asia, we see in U.S. So this is where we are, Stephen.

Stephen Reitman: Are there limitations in that you have internally in terms of having enough craftsman to fulfill all the desires of the customers? And how important will your new paint shop be when you open that?

Benedetto Vigna: No we don’t have this limitation. I can tell you that for sure when you talk about the carbon look, the process to make carbon look component is very much let’s say hand crafted. But we have a solid supply chain over there with different suppliers with whom we have really strategic relations. So we feel that we are confident that we can address the personalization in the right way. If you want the stress test we did ourselves last year. Overall on the volume increase, it has been very helpful and upholsteries it has been a wise decision.

Stephen Reitman: Thank you very much.

Benedetto Vigna: Thank you, Steven.

Operator: Thank you for your question. We are now taking the next question. Please stand by. And the next question is from Anthony Dick from ODDO BHF. Please go ahead. Your line is open.

Anthony Dick: Yes, hi. Thank you for taking my question. My first question was on the EBIT bridge and you have the others bucket at 54 million impact in Q2. So you mentioned some of the drivers and thank you for giving us the F1 provision amounts. But could you possibly provide some further granularity into the other components of that item? And also you know is that 54 million just a non-repeatable impact as you mentioned or is there some that carried through to H2? And also in terms of the F1 provision in particular, I think I heard that you are now basing your assumptions on a second place in the constructors ranking. You are currently 4th place today. So I mean hypothetically, if you were to maintain that 4th place position, should we expect the similar magnitude of provision reversal at a later point in the year?

And then I had a quick second question on the FX impact, which turned negative in the quarter. So I was just wondering if you could provide some further information on how you expect that to evolve considering your hedging policy? And then a very small third one, also I was wondering if you could provide the amounts as Daytona SP3s that you delivered in Q2? Thank you.

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