Ferrari N.V. (NYSE:RACE) Q2 2023 Earnings Call Transcript - Page 5 of 6 - InvestingChannel

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

Benedetto Vigna: The question, other questions are for me. Okay let’s start from the last one. I think in terms of the Daytona, we are about around 30 units in the quarter. The effects don’t be mistaken, it’s actually positive, the overall impact, which is the sum up of the impact of the edges of last year and the negatives in terms of the exchange rate. So it’s the second and the second before last column in the chart. In terms of the reconciliation between what we have in other and what we have in terms of the revenues from let me say items that are different from cars, parts and engines. I think it’s important that I explain in other we have all the positives that come from the raising revenues. We have obviously the part of the portion which is related to ranking our positioning in the F1 Championship, and then we have the let me call no repeatable items in this quarter of really no repeatable.

I think we have the downward adjustment of the provisions for the carbon emissions which is about 10 million in the quarter. So this should basically allow you a full reconciliation between what you would expect from our revenues and what you have in the EBIT, in other EBIT column. And then you asked about the impact from possibly becoming hopefully unlikely for rather than second and the impact is lower compared to what we have from the first to the second.

Anthony Dick: Okay, perfect, thank you very much.

Benedetto Vigna: Welcome.

Operator: Thank you for your questions. We are now taking the next question. And the next question is from Philippe Houchois from Jefferies. Please go ahead. Your line is open.

Philippe Houchois: Yes, thank you and good afternoon and thanks. Thank you very much for your explanation about when you say every quarter you’re surprised by personalization, I understand that people know just what they want in their cars in the first few months of before the delivery, so that is helpful. Now most of my questions were asked and I was wondering though about racing. You did very well in the Le Mans 24-hour races this year. And I’m just wondering, do you think there’s scope for another big racing event or whether endurance races could be repeated like four times a year instead of an annual event, something that would create a business similar or kind of same spirit as what we’ve seen in F1, because there’s been an amazing revival of F1 and there’s no reason why there’s no scope for other races and whether maybe you’d even take the lead and try to organize bigger events and that would be a bigger part of your business model? Thank you.

Benedetto Vigna: Yes, I’ll take this question. So when it comes to racing today, let’s say we have, I would say three areas of focus, one is F1, the second is what is the endurance, and where Le Mans belongs to and the third one is more on the customer relationship management like the [indiscernible], the challenge, the Finale Mondiali, well these are the areas where we are focused today where we intend to be focused also for the future. So today we want to be, when we say that one of the values of our company is heritage and innovation, when you know that Ferrari has been starting a lot with the Endurance Championship in the beginning so we are present over there and we are present in Formula 1 and we want to offer this kind of unique experience on the track also to our client. That’s where we are.

Philip: Yes.

Benedetto Vigna: Thank you, Philip.

Operator: Thank you for your question. We’re now taking the next question. And the next question is from Tommy Narayan from RBC CM. Please go ahead. Your line is open.

Tom Narayan: Hi, thanks for taking the question. A quick clarification on the e-building. So that will be ready in 2024, but I guess the first full electric Ferrari won’t be introduced until the end of 2025. Just curious maybe why that gap? I understand it will be also be used for ICE cars as well, but just curious if I could just understand that better? And then on Purosangue, it would be helpful to just understand some of the customer demographics, the take rate there, is it a percentage of buyers perhaps that are new to Ferrari? Presumably this is like a very different customer subset. Just curious now that you’ve seen some of the deliveries who really is taking these? And then lastly, the SF90 Stradale uses a custom YASA motor, I believe.

We learned recently from a luxury car maker, recently announcing to be using powertrain electric components from a pure play EV maker. Just curious as to what went into your selection of YASA and if you consider other providers here and does this necessarily indicate how you think about your future EV aspirations? Thanks.

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