Presentazione standard di PowerPointlamborghini urus v8 325 g/km €214,766 rolls royce cullinan v12...

Team Purosangue

Emanuele Fino

Giovanni Nocera

Lorenzo Risetti

Matteo Antoniotti

Pietro Amin Puddu

CFA Institute Research Challenge

Milano, 3th March 2020

0

20

40

60

80

100

120

140

160

180

200

01/2016 01/2017 01/2018 01/2019 01/2020 01/2021

TARGET PRICE: € 185.9UPSIDE: +21.4%

BUY

CLOSING PRICE: € 153.157th February 2020

ListingNYSE (RACE.US)

Borsa Italiana (RACE.MI)

Market Cap€ 28.5 B

Float: 61.2%

BRAND EXCLUSIVITY

STRONG PRICING POWER

NEW MARKET OPPORTUNITIES

CLEVER RISK MANAGEMENT

THE COMPANY INDUSTRY FINANCIAL VALUATION CG & RISKS

BORN TO RACE...

2020

16 Constructor Championship15 Drivers World Titles

1947

1947Enzo Ferrari foundthe Company in MaranelloFirst Ferrari built

1960s-1970sFerrari becomes a Limited Company.Agreement with FIAT with a 50% share participation.

2000s-2010sCelebrating 13° World Title in Formula 1.New branding policy and continuous market expansion

2010-presentFerrari spin-off and IPO with a DNA ticker: RACE

Worldwide recognized asthe strongest brand


78%14%

5%

3%

Cars & Spare Parts Sponsorship, Commercial & Brand Engines Other

€ 3.8 B REVENUES

10131

0

2000

4000

6000

8000

10000

12000

FY15 FY16 FY17 FY18 FY19

CARS SHIPMENTS

SPORT GRAN TURISMO SPECIAL SERIES ICONA

…ON THE ROAD


RESEARCH & DEVELOPMENTFORMULA 1 TRANSFER OF KNOW-HOW

NO-ONE ACCOUNTS >10% OF TOTAL PROCUREMENT COSTS

MAKE-OR-BUY STRATEGY ORIENTED TO

IN-HOUSE PRODUCTION

PRESERVE KNOW-HOW MAJOR FLEXIBILITY

NO STRICT SUPPLIER DEPENDENCE

MARANELLO: HOUSE OF MADE IN ITALY

V8 V12

ENGINES BODY ASSEMBLY PAINTING ASSEMBLY & FINAL CHECK PERSONALIZATION & ROAD TESTFINISHING AND CLEANING


A STRATEGIC MARKET PRESENCE

EMEA AMERICAS MAINLAND CHINA HONG KONG & TAIWAN

REST OF APAC

60 MARKETS 166 AUTHORIZED DEALERS 187 POINT OF SALES

48% 29% 8% 15%

THE BEST SALE AND AFTER SALE CUSTOMER EXPERIENCE

MAINTANANCE & WARRANTY

HIGH AFTERMARKET VALUE

CUSTOMERS DEDICATED EVENTS

REPEATED PURCHAHESCUSTOMER LOYALTY


LUXURY

Top-qualityTechnologicalknow-how

AUTOMOTIVE

A UNIQUE POSITIONING IN THE MARKET

Exclusivity High capital intensity

CLOSER TO A DIAMOND RATHER THAN A CAR

0

1

2

3

4

5

08/01/2016 08/01/2017 08/01/2018 08/01/2019 08/01/2020

RACE PRICE MWI - PLI INDEX MWI - AUTOMOTIVE INDEXOPERATING MARGIN

0 5 10 15 20 25 30

FERRARI

LUXURY

AUTOMOTIVE

2015 2016 2017 2018

0 5 10 15 20 25 30 35

FERRARI

LUXURY

AUTOMOTIVE

2015 2016 2017 2018

ROIC



0

5

10

15

20

25

2015 2016 2017 2018 2019E 2020E 2021E 2022E

Million

HIGH NET WORTH INDIVIDUAL

Wealthy customer target> € 1 mln liquid asset

Bullish trend expectation+6.21% CAGR 19E-22E

> 18 mln HNWI in 2019Market penetration of 0.05%

ʺPRODUCE ONE CAR LESS THAN THE MARKET DEMANDʺ


300

340

380

420

2017 2018 2019 2020 2021

100

150

200

250

300

2016 TARGET 2021 TARGET 2025 TARGET 2030

EU market

CO2 EMISSION STANDARD (g/km)

US marketSF90 STRADALE

1000 HP0-100 Km/h in 2.5 s

60% OF HYBRID/MIX TARGET IN 2022

HYBRIDIZATION OF THE LINE-UP

PROFITABLE PRICE/MIX

First plug-in hybrid model

CO2 LEVELS REDUCTION

Rumored price >€500k

COMPETITOR MODEL CO2 EMISSION PRICE

LAMBORGHINI

URUS V8 325 g/Km €214,766

ROLLS ROYCE

CULLINAN V12 341 g/Km ∼€380,000

BENTLEY

BENTAYGA ONYX W12

MULLINER W12

296 g/Km

296 g/Km

€195,220

€302,100


0%

10%

20%

30%

40%

50%

2014 2015 2016 2017 2018

USA - CAGR 9% China - CAGR 14%

EU - CAGR 15% World- CAGR 12%

SUVs % IN AUTOMOTIVE MARKET

FERRARI UTILITY VEHICLEPUROSANGUE



STRONG REVENUES GROWTH

€ 3.8B

€ 5.2B

€ 6.4B

€ 0

€ 1

€ 2

€ 3

€ 4

€ 5

€ 6

€ 7

€ 8

FY19 FY20 FY21 FY22 FY23 FY24 FY25

B

FY19-FY25 CAGR +9.2%~€ 6.4B OF TOTAL REVENUES IN FY25E

TWO GROWTH PHASES


€ 278.887

€ 391.811

€10.131

13.628

2019 2020 2021 2022 2023 2024 2025

AVERAGE MODEL PRICE SHIPMENT

€ 3.359.588.000

€ 5.529.878.000

2020 2021 2022 2023 2024 2025

CARS AND SPARE PARTS

CAR REVENUES ESTIMATION MODEL


SECOND-ROW REVENUES IMPACT

OTHER REVENUES• FERRARI FINANCIAL SERVICES FFS INC.

• MUGELLO RACETRACK MANAGEMENT

ENGINES• V6 MASERATI SUPPLY

• F1 RENTAL ENGINES

ENDING AGREEMENT IN FY22

HAAS & ALFA ROMEO RACING TEAM

SPONSORSHIP, COMMERCIAL& BRAND

• SPONSORSHIP & COMMERCIAL (F1 ACTIVITIES)

• BRAND DIVERSIFICATION STRATEGY

BRAND EXTENSION

ENTERTAINMENT

CAR ADJACENCIES


€ 700

425 425 425 425

0 €

150 €

300 €

450 €

600 €

750 €

900 €

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

K

R&D costs BUDGET CAP

€ 800

0 €

150 €

300 €

450 €

600 €

750 €

900 €

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

F1 2021 BUDGET CAP FUELING FUTURE GROWTH

CAPEX


-60

-30

0

30

60

90

2020 2021 2022 2023 2024 2025

DAYS INVENTORY OUTSTANDING

STRONG CASH FLOW GENERATION

2.22

4,30

5.355.70

5.98 6.17

2020 2021 2022 2023 2024 2025

FREE CASH FLOW PER SHARE

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0,0 €

0,5 €

1,0 €

1,5 €

2,0 €

2,5 €

3,0 €

3,5 €

2020 2021 2022 2023 2024 2025

B EBITDA EBITDA MARGIN

~ € 2.7B EBITDA FY 2025 ~ 42% MARGIN

CLEVER INVENTORY MANAGEMENT STRONG LIQUIDITY POSITION • BUYBACK PROGRAM• INDUSTRIAL NET DEBT FREE


TARGET PRICE: € 185.9UPSIDE: + 21.4%

BUY

VALUATION METHODOLOGY

DISCOUNTED CASH FLOW

STRONG TOP-LINE ASSUMPTIONSNO LISTED COMPARABLES IN LUXURY CAR

VALUATION

0

20

40

60

80

100

120

140

160

180

200

01/2016 01/2017 01/2018 01/2019 01/2020 01/2021


RELATIVE VALUATION - WHY NOT

EV/EBITDA fwd 15.4x

RR 2020 28.3%

R2 0.06ENTERPRISE VALUE APPROACH

OUTPUT 17.4x

ELEVATED CAPITAL INTENSITY

HIGH MARGINS & RETURNS

AUTOMOTIVE

LUXURY

FERRARIUNIQUE CHARACTERISTICS

TP € 174.20

R2 0.29

EQUITY APPROACH

P/E fwd 38.8x

EPS GROWTH 2020 6.4%OUTPUT 33.2x

TP € 131.15

FY 2020-20221st STAGE

LINE-UP HYBRIDIZATION

FY 2023-20252nd STAGE

REVENUES CONSOLIDATION PHASECAPEX AND R&D DECLINE

TERMINAL VALUE3rd stage

WACC 6.74%GLOBAL LTGR 2.85%


DISCOUNTED CASH FLOW

LONG TERM GROWTH RATE

WA

CC

186 1,85% 2,35% 2,85% 3,35% 3,85%

5,74% + 20% + 36% + 58% + 89% + 136%

6,24% + 8% + 21% + 37% + 59% + 90%

6,74% - 1% + 9% + 21% + 38% + 59%

7,24% - 9% - 1% + 9% + 22% + 38%

7,74% - 16% - 9% - 0% + 10% + 22%

15,42 %

84,58 %

€ 185.9

2.22

4.305.35

2020 2021 2022

FREE CASH FLOW PER SHARE

5.70 5.98 6.17

2023 2024 2025

LONG-TERM GROWTH 2060 GDP PROJECTION WEIGHTED

OECD 71%NON-OECD 29%

PRICE TARGETSENSITIVITY ANALYSIS


AN EXPERTISE BOARD OF DIRECTORS

EXECUTIVE CHAIRMAN

CEOEXECUTIVE DIRECTOR

VICE CHAIRMANNON-EXECUTIVE

JOHN ELKANN LOUIS CAMILLERI PIERO FERRARI

Philipp Morris Int. Chairman

FCA NV ChairmanExor NV Chairman/CEO

HPE-COXA ChairmanFERRETTI GROUP Vice President

NON-EXECUTIVE DIRECTORS

• Sergio Duca – BoD Chairman of Ferrari NV

• Delphine Arnault – BoD member of LVMH

• Giuseppina Capaldo – BoD member of Salini ImpregiroSpA and TIM SpA

• Eddy Cue – Apple Inc. Senior Vice-President

• Maria Patrizia Grieco – BoD Chairman of Enel SpA

• Adam Keswick – Matheson & Co Ltd Chairman, Rothschild & Co Deputy Chairman

• Elena Zambon – President of Zambon SpA, Bod member of Unicredit SpA

WORKING PLACE• FORMULA UOMO• TOP EMPLOYER ITALY 2020


ESG

ENVIRONMENT• NETZEB MARANELLO BUILDINGS• CARBON NEUTRALITY IN CHINA• MUGELLO SUSTAINABILITY PROGRAM

EDUCATION• MUNER PARTNER• MBA EXECUTIVE PROGRAM• FERRARI DRIVER ACADEMY

ENVIRONMENTAL &SOCIAL

GOVERNANCECORPORATE• SUSTAINABILITY REPORT• STANDARD ETHICS INDEX GRADE INCREASED TO «E+»


$ £ ¥

PROBABILITY

IMPA

CT

RISKS

RECOMMENDATION

0

20

40

60

80

100

120

140

160

180

200

01/2016 01/2017 01/2018 01/2019 01/2020 01/2021

TARGET PRICE: € 185.9UPSIDE: +21.4%

BUY

BRAND EXCLUSIVITY

STRONG PRICING POWER


CLEVER RISK MANAGEMENT

LIGHTS OUT…ENJOY THE RACE!

Team Purosangue

Emanuele Fino

Giovanni Nocera

Lorenzo Risetti

Matteo Antoniotti

Pietro Amin Puddu

Q&A

THANK YOU FOR YOUR ATTENTION

APPENDIX

BUSINESS & INDUSTRY

COMPETITORS

PHASE/IN PHASE/OUT

SWOT ANALYSIS

P5F’S ANALYSIS

BRAND DIVERSIFICATION

LUXURY SUVs

SVM STATUS

FINANCIALS

REVENUES ESTIMATION MODEL

KEY COST DRIVERS

DEBT & LIQUIDITY

VALUATION

BETA

WACC

LT GROWTH

ESG

SHAREHOLDER STRUCTURE

APPENDIX - COMPETITORS

COMPETITOR MODEL HP 0-100 MAX SPEED

CO2 EMISSION (combined)

STARTING PRICE (€)

FERRARI

812 SUPERFAST V12 812 GTS V12 F8 SPIDER V8 F8 TRIBUTO V8 SF90 STRADALE V8 – HYBRID PORTOFINO V8 GTC4 LUSSO V12 GTC4 LUSSO T V8 488 PISTA V8 488 PISTA SPIDER V8 ROMA V8

800 800 720 720 780+220 600 689 610 720 720 620

2.9s – 340 Km/h 2.9s – 340 Km/h 2.9s – 340 Km/h 2.9s – 340 Km/h 2.5s – 340 Km/h 3.5s – 320 Km/h 3.4s – 335 Km/h 3.5s – 320 Km/h 2.8s – 340 Km/h 2.8s – 340 Km/h 3.4s – 320 Km/h

366 g/Km 373 g/Km 298 g/Km 292 g/Km N/A 267 g/Km 366 g/Km 294 g/Km 282 g/Km 289 g/Km N/A

303,727 336,000 262,000 236,000 ∼ 550,000 198,061 273,060 236,525 296,000 326,400 ∼ 200,000

LAMBORGHINI

HURACAN EVO V10 HURACAN EVO SPIDER HURACAN EVO RWD AVENTADOR S V12 AVENTADOR SVJ AVENTADOR S ROADSTER AVENTADOR SVJ ROADSTER

640 640 610 740 770 740 770

2.9s – 325 Km/h 3.1s – 325Km/h 3.3s – 325Km/h 2.9s – 350 Km/h 2.8s – 350 Km/h 3.0s – 350 Km/h 2.9s – 351 Km/h

332 g/Km 338 g/Km 330 g/Km 499 g/Km 486 g/Km 499 g/Km 486 g/Km

226,521 248,973 194,520 345,701 432,181 384,510 474,149

MCLAREN

540 C V8 570 S V8 570 S SPIDER V8 570 GT V8 600 LT V8 600 LT SPIDER V8 NEW GT V8

540 570 570 570 600 600 620

3.5s – 320 Km/h 3.2s – 328 Km/h 3.2s – 328 Km/h 3.4s – 328 Km/h 2.9s – 328 Km/h 2.9s – 324 Km/h 3.2s – 326 Km/h

249 g/Km 249 g/Km 249 g/Km 249 g/Km 266 g/Km 266 g/Km 245 g/km

176,000 194,000 214,450 204,500 236,000 256,500 203,000

ASTON MARTIN

VANTAGE DB11 COUPE V8 DB11 VOLANTE V8 DB11 AMR V12 DBS SUPERLEGGERA V12

510 510 510 639 725

3.16 – 314 Km/h 3.9s – 300 Km/h 3.9s – 300 Km/h 3.7s – 322 Km/h 3.6s – 340 Km/h

236 g/Km 230 g/Km 230 g/Km 265 g/Km 285 g/Km

162,582 188,162 203,541 264,639 282,428

ROLLS ROYCE

WRAITH DAWN

632 571

4.6s – 250 Km/h 5.0s – 330 Km/h

327 g/Km 330 g/Km

300,000 355,000

BENTLEY

CONTINENTAL GT W12 CONTINENTAL GT V8 CONVERT CONTINENTAL GT V8 SC CONTINENTAL GT W12 CONVERT

635 507 529 590

3.7s – 333 Km/h 5.0s – 308 Km/h 4.7s – 308 Km/h 4.7s – 315 Km/h

308 g/Km 254 g/Km 258 g/Km 333 g/Km

210,500 247,976 267,740 273,962

COMPETITIVE REQUIREMENTS

• TWO-DOOR

• >500 HP

• > € 150,000 STARTING PRICE (INCL. VAT)

MODEL PRICE ENGINE TYPE 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022SPORT

458 ITALIA 197,000 € V8458 SPIDER 228,750 € V8

F12 BERLINETTA 270,000 € V12488 SPIDER 326,400 € V8

488 GTB 236,000 € V8812 SF 303,727 € V12

F8 TRIBUTO 236,000 € V8 SF90 STRADALE 550,000 € V8 HYBRID

812 GTS 336,000 € V12F8 SPIDER 262,000 € V8

Average price per segment/year 294,588 € 231,917 € 255,538 € 251,630 € 277,467 € 284,032 € 269,864 € 258,576 € 337,545 € 346,000 € 346,000 € GT

CALIFORNIA 30 123,900 € V8FF 264,334 € V12

CALIFORNIA T 189,700 € V8GTC4 LUSSO 273,060 € V12

GTC4 LUSSO T 236,525 € V8PORTOFINO 198,061 € V8

ROMA 200,000 € V8Average price per segment/year 229,448 € 194,117 € 192,645 € 227,017 € 242,365 € 233,095 € 235,882 € 235,882 € 211,529 € 199,031 € 275,000 €

SPECIAL SERIES458 SPECIALE 239,000 € V8

458 SPECIALE A 350,000 € V8F12 TDF 350,000 € V12

488 PISTA 296,000 € V8488 PISTA SPIDER 326,400 € V8

Average price per segment 312,280 € 239,000 € 294,500 € 313,000 € 350,000 € 350,000 € 296,000 € 311,200 € 311,200 € 326,400 € ICONA

Monza SP1 1,200,000 € V12Monza SP2 1,600,000 € V12

Average price per segment/year 1,400,000 € 1,400,000 € 1,400,000 € 1,400,000 €

Phase-in Phase-out Business Plan

APPENDIX - MODELS PHASE IN/PHASE OUT

APPENDIX - SWOT ANALYSIS

STRENGHTS

WEAKNESSES

OPPORTUNITIES

THREATS

• BRAND EXCLUSIVITY• MAKE-OR-BUY STRATEGY

IN-HOUSE ORIENTED• WAITING LIST STRATEGY• CUSTOMER LOYALTY

• AFTERMARKET VALUE• HIGH-TECHNOLOGICAL

PRODUCTS• F1 RACING ACTIVITIES

• CURRENT CO2 EMISSIONS• RACING RESULTS BELOW

EXPECTATION• POTENTIAL REVERSE EFFECT

CONNECTED TO WAITING LISTS (SWITCH CUSTOMER CHOICE)

• HIGH FACILITIES GEOGRAPHICAL CONCENTRATION

• NEW GENERATION ENVIRONMENTAL CONCERNS

• CUSTOMER CHOICE MOVING TOWARDS ELECTRIC VEHICLE

• LOSS OF SVM STATUS• NEW POTENTIAL

COMPETITORS IN F1 FROM 2021

• SUVs MARKET• HYBRID SEGMENT• BRAND DIVERSIFICATION STRATEGY

APPENDIX - PORTER’S FIVE FORCES

BUYER POWER

SUPPLIERPOWER

THREAT OFPOTENTIALENTRANTS

EXTRA-INDUSTRY

SUBSTITUTES

COMPETITINGRIVARLY

BUYER POWER

SUPPLIERPOWER

THREAT OFPOTENTIALENTRANTS

EXTRA-INDUSTRY

SUBSTITUTES

COMPETITINGRIVARLY

APPENDIX - BRAND DIVERSIFICATION STRATEGY

€899 PILOTA EVO

LIMITED EDITION (499)SOURCE: STORE.FERRARI.COM

€ 15,500 SF01 BIANCHI

LIMITED EDITION (12)SOURCE: STORE.FERRARI.COM

BRAND EXTENSION

ENTERTAINMENT

CAR ADJACENCIES

▪ OVERHAUL 50% OF EXISTING LICENSEE

▪ CLEARANCE 30% OF ACTUAL PRODUCT CATEGORIES

▪ ELEVATE STANDARDS & QUALITY OF GOODS

▪ GIORGIO ARMANI LONG-TERM MANUFACTURING AGREEMENT

▪ DRIVER ACADEMY PARTICIPATION IN F1 ESPORTS

▪ MONO-BRAND ESPORTS CHAMPIONSHIP

▪ EXPAND LICENSEE RELATED TO FERRARI THEME PARKS

▪ LUXURY PRODUCTS & ONE-OFFS FOR MOST VALUED CUSTOMERS

▪ STARRED RESTAURANT OPENING IN MARANELLO (2H 2020)

BUSINESS PLAN TARGET FOR BRAND ACTIVITIES

10% OF EBIT WITHIN 7/10 YEARS

APPENDIX - KEY COST DRIVERS

0 2 4 6 8 10 12 14

Aluminium

Platinum

Lithium

Glass

Labour Market Europe

Titanium

Iron

Plastics

Source: Goldman Sachs report Cars - 2025

Source: XGBoost F-SCORE - Team Computation

FEATURE IMPORTANCE IN TERMS OF GENERATING A BETTER ACCURACY AND PREDICTIONS ON UP AND DOWNSIDES OF COGS

TOWARDS HEAVY BATTERIES: LOW-WEIGHT MATERIALS

AVG. PRICECOMBUSTION ENGINE

MODEL

AVG. PRICEHYBRID ENGINE

MODEL

AVG. PRICETOTAL

FERRARI FLEET

CARS AND SPARE PARTS REVENUESESTIMATION MODEL

2016 2017 2018 2019

WEIGHTED PRICE

€ 271,686 €272,709 €260,035 €278,887

% 4.1% 0.4% -4.6% 7.2%

€ 284.629 € 290.489

€ 296.471 € 302.575

€ 308.805 € 315.163

2020 2021 2022 2023 2024 2025

CAGR 2.06%

BEST-IN CLASS 2019 MODEL

ENGINE PRICE

812 GTS COMBUSTION € 336,000

SF90 STRADALE HYBRID € 550,000

AVG. PRICE 2019COMBUSTION ENGINE MODEL

€ 278,886

HYBRID EXTRA-PRICE 38.9%

HYBRID ENGINE MODEL ESTIMATE

€ 387,399

278.887 €

368.573 €

391.811 €

20%

40%

60%

0%

20%

40%

60%

80%

100%

200.000 €

250.000 €

300.000 €

350.000 €

400.000 €

450.000 €

MODEL AVG PRICE HYBRID WEIGHT

AVG. MODEL PRICE 10,33% 9,71% 9,18% 2,06% 2,06% 2,06%

SHIPMENTS 4,07% 5,85% 5,53% 5,24% 4,98% 4,74%

CARS AND SPARE PARTS 14,82% 16,13% 15,22% 7,41% 7,14% 6,90%

2020 2021 2022 2023 2024 2025

APPENDIX – CARS AND SPARE PARTS REVENUES ESTIMATION MODEL

0

1500

3000

4500

6000

7500

9000

2016 2017 2018 annualized 2019

LAMBORGHINI

URUS Units TOTAL Units Lineare (TOTAL Units)

0

1000

2000

3000

4000

5000

6000

2016 2017 2018 annualized 2019

ROLLS-ROYCE

CULLINAN Units TOTAL Units

COMPETITOR * MODEL HP0-100 /

MAX SPEED

CO2 EMISSION

(combined)STARTING PRICE

LAMBORGHINI URUS V8 650 3.6s – 305 Km/h 325 g/Km €214,766

MERCEDES MAYBACH GLS 600 4MATIC V8 ** 550+21 4.8s – 250 Km/h NA ∼€200,000

ASTON MARTIN DBX V8 ** 550 4.5s – 291 Km/h 325 g/Km €224,663

ROLLS ROYCE CULLINAN V12 571 5.2s – 250 Km/h 341 g/Km ∼€380,000

BENTLEY

BENTAYGA ONYX W12

BENTAYGA SPEED W12 **

MULLINER W12

608

635

608

4.1s – 301 Km/h

3.9s – 306 Km/h

4.1s – 301 Km/h

296 g/Km

335 g/Km

296 g/Km

€195,220

€245,220

€302,100

*Models list includes only vehicles with >500hp and a starting price of >150k € (VAT inc) **Sales starting from 2020

APPENDIX – LUXURY SUVs

Market RegulatorProduced/Imported

Total actualshipments

SVM status car limits

Exceeding/(room available)

CHINA CAFC Imported 836 2,000 (1,164)

AMERICA EPA Produced 2,900 5,000 (2,100)

EUROPE EU Produced 4,628 10,000 (5,372)

WORLDWIDE NHTSA Produced 10,131 10,000 -131

SVM status

✓

✓

✓

x

0

4000

8000

12000

16000

20000

2019 2020 E 2021 E 2022 E 2023 E 2024 E 2025 E

FY 2019 FY 2025 E

Total shipments 10,131 13,628

Total units limit* 17,000 17,000

Total room available 8,505 5,008

*Sum of SVM status limit of EPA, EU and CHINAFerrari total shipment Total room available

Starting from the FY 2019, Ferrari has lost the Small Volume Manufacture status for the NHTSA standard, exceeding 10,000 units shipments.

If the average fuel economy of Ferrari's annual fleet of vehicle production falls below the applicable requirement, the manufacturer must either apply sufficient CAFE credits to cover the shortfall or pay a penalty, currently $5.50 per 0.1 mpg under the standard, multiplied by the manufacturer's total production for the U.S. domestic market.

Therefore, the potential NHTSA fine will be of $8,151,909 (0,2% of Total Net Revenue), calculated as the multiplication of the MPG exceeded by Ferrari 2019 Fleet (314 g/km or 20.87 MPG vs 35.5 MPG limit) of 14.73 MPG per the total shipment (10,131).

APPENDIX – SMALL VOLUME MANUFACTURE STATUS

-690

-508

-370 -337

2016 2017 2018 2019

APPENDIX – DEBT COMPOSITION

NET INDUSTRIAL DEBT GROSS DEBT MATURITY PROFILE

€ mln 2020 2021 2022 2023 2029 2031

US Securitizations 338 277 141 32 - -

Bond - 500 - 385 - -

Notes - - - - 150 150

-2.090

60 898 30

-1.192 -855 -337

350

1.248

TOTAL DEBT

of which : Leaseliabilities as per

IFRS 16CASH AND CASH

EQUIVALENTS

of which:FINANCIALSERVICES

ACTIVITIES NET DEBT

NET DEBT OFFINANCIALSERVICES

ACTIVITIESNET INDUSTRIAL

DEBT

UNDRAWNCOMMITTEDCREDIT LINES

TOTAL AVAILABLELIQUIDITY

FY 2019

APPENDIX – SHAREHOLDER STRUCTURE

61,2%10,2%

23,9%

4,7%

Free Float (185.9 M)

Piero Ferrari

Exor NV

Treasury Shares

Investors Amount %

BlackRock 18’128’138 9,75%

Baillie Gifford 13’579’009 7,31%

Vanguard Group 3’799’059 2,04%

Canada PensionPlan Investment

2’645’589 1,42%

AKO Capital 2’558’461 1,38%

D1 Capital 2’511’311 1,35%

Winslow Capital Management

2’175’588 1,17%

INSTITUTIONAL INVESTORSSHAREHOLDER COMPOSITION

Source: FactSet, Bloomberg

€ 1.5B BUYBACK PROGRAM FY18-FY22

BUYBACK PROGRAM FY 2018 FY 2019 FY 2020 E FY 2021 E FY 2022 EShares Outstanding (k) 187,921 185,865 183,659 181,452 179,245

Cumulated Equivalent Buyback Program (€k) 100,093 486,093 824,062 1,162,031 1,500,000

Shares buybacked (k) 1,033 3,971 6,178 8,385 10,591

Buyback Equivalent Yearly (€k) - 386,000 337,969 337,969 337,969

Buyback to be executed at FY19 (€k) 1,013,907 €

Yearly spending up to FY2022 (€k) 337,969 € Source: Team Assumptions & EstimatesBuyback calculated at actual price €153,15

APPENDIX – WACC CALCULATION

Risk free rate10-years Italian Government Bond yield at 07/02/2020

Parameter Value

Risk free rate 0.94%

Beta 0.84

Market Risk Premium 7.37%

Cost of Equity (Ke) 7.20%

Cost of Debt (Kd) 2.01%

D/E 0.07

Tax rate 27.00%

WACC = 6.74%

BetaRACE vs FTSE MIB – last 104 weeks

Market Risk PremiumItalian MRP calculated by Damodaran (January 2020)

Cost of Equity (Ke)CAPM formula: Rf + β * MRP

Cost of Debt (Kd)Net Financial Expenses divided by the Net Debt

D/EDebt (2,088,588) divided by Market Equity (28,465,366)

Tax rateNormalised value, confirmed by the sum of local taxes

y = 0.84x + 0.0044R² = 0.3

-15,00%

-10,00%

-5,00%

0,00%

5,00%

10,00%

15,00%

-6,00% -4,00% -2,00% 0,00% 2,00% 4,00% 6,00%

FTSE

MIB

RACE

APPENDIX – BETA CALCULATION

BETA +

1.14

BETA -

0.53

BETA

0.84

APPENDIX – LT GROWTH RATE

3,0% 3,0% 3,0%

7,0%

5,0%

2,5%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

2010 2020 2060

OECD non-OECD

RESEARCH PAPER «LOOKING TO 2060: LONG-TERM GLOBAL GROWTH PROSPECTS» [2012]

OECD COUNTRIES

71%

NON-OECD COUNTRIES

29%

WEIGHTED LTGR

2.85%

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