MARANELLO, Italy, Aug. 2, 2016 /PRNewswire/ --
- Total shipments reached 2,214 units, up 8% (+155
units)
- Net revenues grew 5.9% (+6.2% at constant currencies) to
Euro 811 million
- Adjusted EBIT(1) of Euro
156 million, 310 bps margin increase
- Adjusted net profit(1) up 35% to Euro 104 million
- Net industrial debt(1) at Euro 763 million, better than March 2016
For the six months
ended
|
(In Euro
million
|
For the three months
ended
|
June
30,
|
unless otherwise
stated)
|
June
30,
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
4,096
|
3,694
|
402
|
11%
|
Shipments (in
units)
|
2,214
|
2,059
|
155
|
8%
|
1,486
|
1,387
|
99
|
7%
|
Net
revenues
|
811
|
766
|
45
|
6%
|
385
|
348
|
37
|
11%
|
EBITDA(1)
|
207
|
192
|
15
|
8%
|
395
|
354
|
41
|
12%
|
Adjusted
EBITDA(1)
|
217
|
194
|
23
|
12%
|
267
|
218
|
49
|
23%
|
EBIT
|
146
|
122
|
24
|
20%
|
277
|
224
|
53
|
24%
|
Adjusted
EBIT(1)
|
156
|
124
|
32
|
26%
|
175
|
141
|
34
|
24%
|
Net
profit
|
97
|
76
|
21
|
29%
|
182
|
145
|
37
|
26%
|
Adjusted net
profit(1)
|
104
|
78
|
26
|
35%
|
0.93
|
0.74
|
0.19
|
26%
|
Earnings per share (in Euro
)
|
0.52
|
0.40
|
0.12
|
29%
|
0.96
|
0.76
|
0.20
|
26%
|
Adjusted earnings per
share(1)(in Euro
)
|
0.55
|
0.41
|
0.14
|
34%
|
|
|
|
|
|
|
|
|
|
(Euro
million)
|
Jun.
30,
|
Mar.
31,
|
Change
|
2016
|
2016
|
Net industrial
debt(1)
|
|
|
(763)
|
(782)
|
19
|
|
|
Adjusted
EBIT(1)
|
|
|
Net
profit
|
•
|
Volume increase of approx. 230 cars (excluding
LaFerrari) thanks to the newly launched 488 GTB, 488 Spider, F12tdf
and positive contribution from
personalization
|
|
•
|
Net profit for Q2 was Euro 97 million up Euro
21 million (+29%) due to the combined effect of strong EBIT and
lower tax rate vs. previous year partially offset by charges for
Takata airbag inflator
recalls
|
•
|
Negative mix impacted by LaFerrari, that finished its
limited series run, and V8, slightly higher compared to the
previous year, partially offset by the non-registered car FXX K and
limited edition F60
America
|
|
|
|
|
|
|
|
|
|
Net industrial
debt(1)
|
|
|
Confirming 2016
Outlook(2)
|
•
|
Net industrial debt(1) reduced to Euro 763
million, primarily due to strong industrial free cash
flow(1) generation partially offset by cash distribution
to holders of common shares and dividends paid to
NCI
|
|
|
The Group guidance is confirmed as
follows:
- Shipments: ~8,000 units including
supercars
- Net revenues: > Euro 3
billion
- Adjusted EBITDA: ≥ Euro 800
million
- Net industrial debt(3): ≤ Euro 730
million
|
Ferrari N.V. (NYSE/MTA: RACE) ("Ferrari" or the "Company") today
announces its consolidated preliminary results(4) for
the second quarter and six months ended June
30, 2016.
Shipments
|
|
|
|
|
|
For the six months
ended
|
Shipments(5)
|
For the three months
ended
|
June
30,
|
(units)
|
June
30,
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
1,903
|
1,598
|
305
|
19%
|
EMEA
|
953
|
833
|
120
|
14%
|
1,297
|
1,287
|
10
|
1%
|
Americas
|
774
|
772
|
2
|
0%
|
316
|
261
|
55
|
21%
|
Greater
China
|
160
|
127
|
33
|
26%
|
580
|
548
|
32
|
6%
|
Rest of
APAC
|
327
|
327
|
-
|
0%
|
4,096
|
3,694
|
402
|
11%
|
Total
Shipments
|
2,214
|
2,059
|
155
|
8%
|
Shipments totaled 2,214 units in Q2 2016, up 8% from the
previous year. This performance was driven by a 16% increase in
sales of our 8 cylinder models (V8), led by the success of the two
newly launched models: the 488 GTB and the 488 Spider. Shipments of
the 12 cylinder models (V12) were down 22% due to the phase-out of
the FF, the F12berlinetta now in its 5th year of
commercialization and LaFerrari that finished its limited series
run. This was partially offset by the introduction of the new
F12tdf.
The EMEA(5) and Greater
China(5) regions experienced a sound year-on-year
growth with shipments increasing respectively by +14% and +26%,
Americas(5) recorded a slight improvement whereas
Rest of APAC(5) remained in line with the previous year
due to 488 Spider and F12tdf having just arrived on the market.
Total net
revenues
|
|
|
|
For the six months
ended
|
(Euro
million)
|
For the three months
ended
|
June
30,
|
June
30,
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
1,070
|
1,008
|
62
|
6%
|
Cars and spare
parts(6)
|
589
|
579
|
10
|
2%
|
128
|
121
|
7
|
6%
|
Engines(7)
|
71
|
57
|
14
|
24%
|
235
|
212
|
23
|
11%
|
Sponsorship, commercial and
brand(8)
|
117
|
103
|
14
|
14%
|
53
|
46
|
7
|
15%
|
Other(9)
|
34
|
27
|
7
|
24%
|
1,486
|
1,387
|
99
|
7%
|
Total net
revenues
|
811
|
766
|
45
|
6%
|
Net revenues for Q2 2016 were Euro 811
million, an increase of Euro 45
million or 5.9% (+6.2% at constant currencies) from Q2 2015.
Higher net revenues in Cars and spare parts(6)
(Euro 589 million, +2%) were due to
increased volumes led by new models 488 GTB, 488 Spider,F12tdf, the
non-registered car FXX K and the final deliveries of the F60
America, a strictly limited edition car, along with a higher
contribution from personalization, which was partially offset by
lower sales of LaFerrari. The rebound in Engines(7)
(Euro 71 million, +24%), was mainly
attributable to higher rental revenues from other Formula 1 Teams.
Sponsorship, commercial and brand(8) (Euro 117 million, +14%) was up mostly due to
better championship ranking, higher sponsorship revenues and
positive contribution from brand related activities.
Adjusted
EBITDA(1) and Adjusted
EBIT(1)
|
|
|
|
For the six months
ended
|
(Euro
million)
|
For the three months
ended
|
June
30,
|
June
30,
|
2016
|
2015
|
Change
|
|
2016
|
2015
|
Change
|
395
|
354
|
41
|
12%
|
Adjusted
EBITDA(1)
|
217
|
194
|
23
|
12%
|
26.6%
|
25.6%
|
+100bps
|
|
Adjusted EBITDA
margin
|
26.9%
|
25.4%
|
+150bps
|
|
277
|
224
|
53
|
24%
|
Adjusted
EBIT(1)
|
156
|
124
|
32
|
26%
|
18.7%
|
16.2%
|
+250bps
|
|
Adjusted EBIT
margin
|
19.3%
|
16.2%
|
+310bps
|
|
Adjusted EBIT(1) was Euro 156
million, up Euro 32 million
(+26%) from Q2 2015 as a result of higher volumes, thanks to the
newly launched 488 GTB, 488 Spider and the F12tdf as well as a
positive margin contribution from our personalization programs. Mix
was negatively impacted (Euro 25
million) by higher V8 versus V12 range models with LaFerrari
that finished its limited series run, partially offset by the
non-registered car FXX K and the final deliveries of the F60
America, a strictly limited edition car (only ten units)
manufactured to commemorate the 60th Anniversary of
Ferrari in North America. Research
and development costs and industrial costs showed a decrease of
Euro 11 million mainly due to lower
D&A for the 458 family and LaFerrari phase-out coupled with
efficiencies on production costs partially offset by F1 costs. The
Selling, general and administrative costs(10) were
substantially in line with the previous year as the combined result
of new store openings, new model launches and corporate costs
offset by bad debt in Q2 2015. Other recorded a positive
contribution of Euro 14 million
thanks to Sponsorship, commercial and brand as well as other
supporting activities.
Adjusted EBIT(1) excludes charges of Euro 10 million due to the worldwide Takata
airbag inflator recalls(11).
Tax rate dropped to 30.7% in Q2 2016 vs. 33.5% in Q2 2015 as a
result of the Italian Government's decision to reduce the nominal
tax rate from 27.5% to 24% by 2017.
As a result of the items described above, adjusted net
profit(1) for Q2 2016 was Euro
104 million, up Euro 26
million (+35%).
Industrial free cash flow(1) for the three months
ended June 30, 2016 was Euro 145 million, primarily driven by a strong
increase in cash flow from operating activities, including a
positive change of working capital and timing effect of advances on
the new open-top LaFerrari, partially offset by capex and the first
2016 tax advance. Q2 2015 industrial free cash flow(1)
included a Euro 116 million one-time
cash in-flow related to the final reimbursement by Maserati of its
inventory in China.
Net industrial debt(1) at June
30, 2016 was Euro 763 million,
better than from Euro 782 million at
March 31, 2016, thanks to industrial
free cash flow(1) generation offset by cash distribution
for Euro 87 million paid to the
holders of common shares and Euro 13
million dividends paid to NCI.
The open-top LaFerrari: the new special limited-edition
series
On July 5th,
2016 Ferrari unveiled the first images of the open-top LaFerrari,
the new limited-edition special series. The new model, already
pre-sold, will be presented during the Paris International Motor
Show in October 2016. The open-top
LaFerrari will be provided with a removable carbon-fiber hard top
and a removable soft top aimed at customers and collectors who
refuse to compromise on the joy of plein air driving even
when at the wheel of a supercar.
Subsequent Events
On July
7th, 2016 Ferrari with Luxottica Group announced
the signing of a sponsorship agreement for the Ray-Ban brand to
appear on the SF16-H Formula One cars.
About Ferrari
Ferrari is among the world's leading
luxury brands focused on the design, engineering, production and
sale of the world's most recognizable luxury performance sports
cars. Ferrari brand symbolizes exclusivity, innovation,
state-of-the-art sporting performance and Italian design. Its
history and the image enjoyed by its cars are closely associated
with its Formula 1 racing team, Scuderia Ferrari, the most
successful team in Formula 1 history. From the inaugural year of
Formula 1 in 1950 through the present, Scuderia Ferrari has won 224
Grand Prix races, 16 Constructor World titles and 15 Drivers' World
titles. Ferrari designs, engineers and produces its cars in
Maranello, Italy, and sells them
in over 60 markets worldwide.
Forward Looking Statements
This document, and in
particular the section entitled "2016 Outlook", contains
forward-looking statements. These statements may include terms such
as "may", "will", "expect", "could", "should", "intend",
"estimate", "anticipate", "believe", "remain", "on track",
"design", "target", "objective", "goal", "forecast", "projection",
"outlook", "prospects", "plan", or similar terms. Forward-looking
statements are not guarantees of future performance. Rather, they
are based on the Group's current expectations and projections about
future events and, by their nature, are subject to inherent risks
and uncertainties. They relate to events and depend on
circumstances that may or may not occur or exist in the future and,
as such, undue reliance should not be placed on them. Actual
results may differ materially from those expressed in such
statements as a result of a variety of factors, including: the
Group's ability to preserve and enhance the value of the Ferrari
brand; the success of Ferrari's Formula 1 racing team and the
expenses the Group incurs for Formula 1 activities; the Group's
ability to keep up with advances in high performance car technology
and to make appealing designs for its new models; the Group's low
volume strategy; the ability of Maserati, the Group's engine
customer, to sell its planned volume of cars; changes in client
preferences and automotive trends; changes in the general economic
environment and changes in demand for luxury goods, including high
performance luxury cars, which is highly volatile; the impact of
increasingly stringent fuel economy, emission and safety standards;
the Group's ability to successfully carry out its growth strategy
and, particularly, the Group's ability to grow its presence in
emerging market countries; competition in the luxury performance
automobile industry; reliance upon a number of key members of
executive management and employees; the performance of the Group's
dealer network on which the Group depend for sales and services;
increases in costs, disruptions of supply or shortages of
components and raw materials; disruptions at the Group's
manufacturing facilities in Maranello and Modena; the Group's
ability to provide or arrange for adequate access to financing for
its dealers and clients; the performance of the Group's licensees
for Ferrari-branded products; the Group's ability to protect its
intellectual property rights and to avoid infringing on the
intellectual property rights of others; product recalls, liability
claims and product warranties; exchange rate fluctuations, interest
rate changes, credit risk and other market risks; potential
conflicts of interest due to director and officer overlaps with the
Group's largest shareholders and other factors discussed elsewhere
in this document.
Any forward-looking statements contained in this document speak
only as of the date of this document and the Company does not
undertake any obligation to update or revise publicly
forward-looking statements. Further information concerning the
Group and its businesses, including factors that could materially
affect the Company's financial results, is included in the
Company's reports and filings with the U.S. Securities and Exchange
Commission, the AFM and CONSOB.
www.ferrari.com
Non-GAAP financial measures
Operations are monitored
through the use of various Non-GAAP financial measures that may not
be comparable to other similarly titled measures of other
companies.
Accordingly, investors and analysts should exercise appropriate
caution in comparing these supplemental financial measures to
similarly titled financial measures reported by other
companies.
We believe that these supplemental financial measures provide
comparable measures of financial performance which then facilitate
management's ability to identify operational trends, as well as
make decisions regarding future spending, resource allocations and
other operational decisions.
Certain totals in the tables included in this document may not
add due to rounding.
EBITDA is defined as net profit before income tax
expense, net financial expenses/(income) and depreciation and
amortization.
Adjusted EBITDA is defined as EBITDA as adjusted for income
and costs, which are significant in nature, but expected to occur
infrequently.
For the six months
ended
|
|
(Euro
million)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
Change
|
|
|
|
2016
|
2015
|
Change
|
175
|
141
|
34
|
|
Net
profit
|
|
97
|
76
|
21
|
78
|
71
|
7
|
|
Income tax
expense
|
|
44
|
38
|
6
|
14
|
6
|
8
|
|
Net financial
expense
|
|
5
|
8
|
(3)
|
118
|
130
|
(12)
|
|
Amortization and
depreciation
|
|
61
|
70
|
(9)
|
385
|
348
|
37
|
|
EBITDA
|
|
207
|
192
|
15
|
For the six months
ended
|
|
(Euro
million)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
Change
|
|
|
|
2016
|
2015
|
Change
|
385
|
348
|
37
|
|
EBITDA
|
|
207
|
192
|
15
|
-
|
6
|
(6)
|
|
Expenses incurred in
relation to
IPO
|
|
-
|
2
|
(2)
|
10
|
-
|
10
|
|
Charges for Takata
airbag
inflator
recalls
|
|
10
|
-
|
10
|
395
|
354
|
41
|
|
Adjusted
EBITDA
|
|
217
|
194
|
23
|
Adjusted Earnings Before Interest and Taxes ("Adjusted
EBIT") represents EBIT as adjusted for income and costs, which
are significant in nature, but expected to occur infrequently.
For the six months
ended
|
|
(Euro
million)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
Change
|
|
|
|
2016
|
2015
|
Change
|
267
|
218
|
49
|
|
EBIT
|
|
146
|
122
|
24
|
-
|
6
|
(6)
|
|
Expenses incurred in relation to
IPO
|
|
-
|
2
|
(2)
|
10
|
-
|
10
|
|
Charges for Takata
airbag
inflator
recalls
|
|
10
|
-
|
10
|
277
|
224
|
53
|
|
Adjusted
EBIT
|
|
156
|
124
|
32
|
Adjusted net profit represents net profit as adjusted for
income and costs, which are significant in nature, but expected to
occur infrequently.
For the six months
ended
|
|
(Euro
million)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
Change
|
|
|
|
2016
|
2015
|
Change
|
175
|
141
|
34
|
|
Net
profit
|
|
97
|
76
|
21
|
-
|
4
|
(4)
|
|
Expenses incurred in relation to IPO (net of tax
effect)
|
|
-
|
2
|
(2)
|
7
|
-
|
7
|
|
Charges for Takata
airbag
inflator recalls (net of
tax
effect)
|
|
7
|
-
|
7
|
182
|
145
|
37
|
|
Adjusted net
profit
|
|
104
|
78
|
26
|
Adjusted EPS represents EPS as adjusted for income and
costs, which are significant in nature, but expected to occur
infrequently.
For the six months
ended
|
|
(Euro per common
share)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
Change
|
|
|
|
2016
|
2015
|
Change
|
0.93
|
0.74
|
0.19
|
|
EPS
|
|
0.52
|
0.40
|
0.12
|
-
|
0.02
|
(0.02)
|
|
Expenses incurred in relation to IPO (net of tax
effect)
|
|
-
|
0.01
|
(0.01)
|
0.04
|
-
|
0.04
|
|
Charges for Takata
airbag
inflator recalls (net of
tax
effect)
|
|
0.04
|
-
|
0.04
|
0.96
|
0.76
|
0.20
|
|
Adjusted
EPS
|
|
0.55
|
0.41
|
0.14
|
Net Industrial Debt: defined as total Net Debt excluding
the funded portion of the self-liquidating financial receivables
portfolio, is the primary measure to analyze our financial leverage
and capital structure, and is one of the key indicators used to
measure our financial position.
(Euro
million)
|
|
|
|
|
Jun.
30,
|
Mar.
31,
|
Dec.
31,
|
|
|
|
|
2016
|
2016
|
2015
|
Net industrial
debt
|
|
|
|
(763)
|
(782)
|
(797)
|
Funded portion of the self-liquidating financial
receivables
portfolio
|
1,135
|
1,097
|
1,141
|
Net
debt
|
|
|
|
|
(1,898)
|
(1,879)
|
(1,938)
|
Financial liabilities with FCA
Group
|
|
-
|
-
|
(3)
|
Deposits in FCA Group cash management
pools
|
|
-
|
-
|
139
|
Cash and cash
equivalents
|
|
|
585
|
563
|
183
|
Gross
debt
|
|
|
|
|
(2,483)
|
(2,442)
|
(2,257)
|
Free Cash Flow and Free Cash Flow from Industrial
Activities are two of management's primary key performance
indicators to measure the Group's performance. Free Cash flow is
defined as net cash generated from operations less cash flows used
in investing activities. Free Cash Flow from Industrial Activities
is defined as Free Cash Flow adjusted for the change in the
self-liquidating financial receivables portfolio.
For the six months
ended
|
|
(Euro
million)
|
|
For the three months
ended
|
June
30,
|
|
|
June
30,
|
2016
|
2015
|
|
|
|
|
|
2016
|
2015
|
316
|
416
|
|
|
Cash flow from operating
activities
|
|
|
204
|
353
|
(157)
|
(152)
|
|
|
Cash flows used in investing
activities
|
|
|
(90)
|
(75)
|
159
|
264
|
|
|
Free Cash
Flow
|
|
|
114
|
278
|
14
|
60
|
|
|
Change in the self-liquidating financial receivables
portfolio
|
|
|
31
|
11
|
173
|
324
|
|
|
Free Cash Flow from Industrial
Activities(12)
|
|
|
145
|
289
|
On August 2nd, 2016, at
5p.m. CEST, management will hold a
conference call to present the Q2 2016 and H1 2016 results to
financial analysts and institutional investors. The call can be
followed live and a recording will subsequently be available on the
Group website http://corporate.ferrari.com/en/investors. The
supporting document will be made available on the website prior to
the call.
[1] Refer to specific note on Non-GAAP financial measures
[2] Assuming FX consistent with current market conditions
[3] Including an ordinary cash distribution to the holders of
common shares
[4] These results have been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board and IFRS as endorsed by
the European Union
[5] EMEA includes: Italy, UK,
Germany, Switzerland, France, Middle
East (includes the United Arab
Emirates, Saudi Arabia,
Bahrain, Lebanon, Qatar, Oman
and Kuwait) and Rest of EMEA
(includes Africa and the other
European markets not separately identified); Americas includes:
United States of America,
Canada, Mexico, the Caribbean and Central and South America; Greater China includes: China, Hong
Kong and Taiwan; Rest of
APAC mainly includes: Japan,
Australia, Singapore, Indonesia and South
Korea.
[6] Includes the net revenues generated from shipments of our
cars, including any personalization revenue generated on these cars
and sales of spare parts
[7] Includes the net revenues generated from the sale of engines
to Maserati for use in their cars, and the revenues generated from
the rental of engines to other Formula 1 racing teams
[8] Includes the net revenues earned by our Formula 1 racing
team through sponsorship agreements and our share of the Formula 1
World Championship commercial revenues and net revenues generated
through the Ferrari brand, including merchandising, licensing and
royalty income
[9] Primarily includes interest income generated by the Ferrari
Financial Services group and net revenues from the management of
the Mugello racetrack
[10] Excluding expenses incurred in relation to the IPO
[11] Ferrari is not aware of any confirmed incidents, warranty
claims or consumer complaints relating to such airbag inflators
mounted in its cars or that the airbag inflators are not performing
as designed. Ferrari cars were included within the scope of the
United States National Highway Traffic Safety Administration
("NHTSA") May 4th, 2016
Consent Order Amendment with Takata. As a result, Ferrari has
initiated a global recall relating to certain cars produced between
2008 and 2011.
[12] Industrial free cash flow included one-time cash in-flow in
Q2 2015 of Euro 116 million and in H1
2015 of Euro 160 million related to
the reimbursement by Maserati of its inventory in China.
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SOURCE Ferrari NV