Ferrari N.V. (RACE) Earnings Call Transcript & Summary

[Foreign Language] Good morning. We're very happy to have all of you here in Maranello for our 2022 Capital Markets Day. It's really wonderful to see many of you who have made it, and it's nice to be physically together. But also to who is joining us remotely -- we hope it won't be long before you are also able to be here with us in Maranello, our home for 75 years. And if we are here today, it is precisely because of those 75 years. In these 75 years, we have become the makers and creators not only of the most beautiful, the most competitive and the most provocative cars in the world. But also the source of endless stories and memories that have moved and inspired -- following from one generation to the next of passionate collectors, clients and supporters, and all because of the vision, the passion and the extraordinary determination of one man, our founder, Enzo Ferrari. From the day I became Chairman of our company, I was able to add to my lifelong passion for Ferrari, a much deeper appreciation of the uniqueness of our company. And this was taken to a new level when at the end of 2020, fate led me to also take on the role of Chief Executive. The months I spent as CEO were an immense privilege and also an intense learning experience. There were an opportunity for me to spend precious time close to the exceptional men and women who make up the entire Ferrari team across all aspects of our business. It reconfirmed everything that I knew and felt about our company, and it also gave me a far better understanding of the huge opportunities that lie ahead. First and foremost, those months reinforced my conviction that Ferrari is at its core, a luxury company. The creator of the world's highest value, highest performance, highest quality products with real opportunity of developing further in the lifestyle space. The strength of our spirit of racing, which is part of the [Foreign Language] Maranello. And I feel you can breathe it gives us competitiveness urgency, appetite for innovation and its demand for total teamwork. That's why Ferrari's story is and will always be inextricably linked to the world of motorsport. Finally, everything we do will always focus on being distinctively Ferrari. We believe the opportunity set by electrification and electronics will allow us to make even more unique cars. That is why we were convinced that we needed a CEO with a deep understanding of the technologies that are changing, not just the automotive industry, but also the wider world. Benedetto Vigna with whom we share the same values, has the profound technological knowledge required but even more importantly, he is an entrepreneur and innovator who created a multibillion euro business from scratch in a hypercompetitive industry. As an Italian he instinctively understands the emotion and the passion that sets Ferrari apart. Today, as I mentioned during my last analyst call last August, we set out the path we will take during this decade but it will be much more than this. It will provide the foundations on which we will build the continuing long-term success of Ferrari as the world's most distinctive and most innovative luxury brand, moving swiftly to create continuing growth opportunities from the changes of a fast transforming world, but never compromising on our commitment to be the unmatched expression of Italian excellence. I would like to end with the importance of passion, which is the thread that connects us with the world, cutting across cultural and language barriers, bringing together our colleagues, customers and tifosi as one family. It comes directly from a founder when his final speech, to his fellow workers, entrusted them, "With you, Ferrari will become an irrepressible reality. With Piero and our Ferrari colleagues, we strongly feel this responsibility and are committed to it as you will learn today." So without any further delay, I'd like to invite Benedetto to begin today's presentation. [Foreign Language]

Good morning, everyone. [Foreign Language] John, [Foreign Language] thank you for your kind words. And [Foreign Language]. It's a pleasure for me to have all of you here in person. It's always much better than the flat screen we are getting too much used to. [Foreign Language] in a place that I have the privilege to live every day to brief that atmosphere John was talking about is the place where 75 years ago, the first Ferrari was getting out of the door here in Maranello. It's a place where -- it's 9 months. I'm breathing this kind of passion, deep sense of belonging. This continuous strive for excellence that are the base for the teamwork -- and this is this teamwork, you will see today also in our presentation that is at the base of our willingness and commitment to push the boundaries further than ever. I joined Ferrari 9 months ago. It was fifth of September, I have to say that I have been an Italian. Like many Italian, they say they are always in love with Ferrari. I remember when I was a child, playing with the model Ferrari in the [ built ] road track in the middle of the stone from the place where I am. I remember also my first Grand Prix when I get out at 14 years old to go to see this Grand Prix in Emilia and my parents didn't know -- We didn't know exactly where I was. They knew that I was with someone, some friends, but they did not know I was there. And I also -- I studied physics at University. And one of the reason was that because I had to fix the problem of antenna because during the Sundays, the rest days, I was not able to see correctly the race. At that time, there were not so many Ferrari on the roads. And so it is today because the global appetite of luxury product in the world has grown but we want always Ferrari to provide unique cars. And this is our commitment, unique product. We have seen also in the video before, what our colleagues were saying, Ferrari will always deliver one car less than the market demand. This is well summarized what Enzo Ferrari, our founder said, and I can assure you that this will never change. This is a key point for our company. Since my first day here in Maranello, I invested a lot of time to talk with many stakeholders in particular, with all the women and the men here in the company. And our founders capture very well these important sentence that you see on the screen. Factories are made of machines, are made of walls and people, Ferrari is made most of all by people. Our people relentless dedication that you have seen in the video a few minutes ago, together with agility and flexibility, where these are the key to transform the challenge into opportunities. This is very important. The challenge for us has been and will always be opportunities. Our brand is powered by passion and the will to win. Our racing heritage is -- tell us every day that is the constant pursuit of excellence grows, paying attention to every small detail. We have always to pay attention to the details because that's the way you reach the excellence. We are using in this company, a lot of technologies, leading-edge technologies and we do this because we want to provide distinctive Ferrari car. We want to make a difference with the technologies. This is very important. I also spend in these 9 months, a lot of time, with all engineering community. We have many technical people in this company because we have a strong technical background. And then in particular, I was spending also lot of time with electronic engineers and software engineers. And I can tell you, I mean, I know pretty well this world that this has been passing well above my expectation. The competence that is in this company in that world is really unique. I cannot join you. I cannot invite you to join me in the laboratories. It's a privilege I have. For the time being, you will see later when we'll deliver our electric car. Well, but this is something that is really unique. There are many technologies. There is a lot of competence. And today, together with the colleague Enrico, Gianmaria, Ernesto, and Antonio, we'll outline the priorities for the future. This is a company that before to go to the agenda, I would like to highlight the 6 key ingredients of our DNA. We are a company that is looking a lot at uniqueness. We are committed to create unique car. The second is the people. They are who they make this unique product. There is the racing, the racing is embedded, deeply embedded in our DNA. And then there is the technological leadership that goes hand in hand with the craftmanship. And these are unlike any others. I have seen many technologies in my life, but I can tell you these here are unlike any other. And then there is the continuous learning approach. The continuous learning approach through a scientific -- in a scientific way. You need to understand to make a difference. And then last but not least, this is very important, especially for most of the guests here, our financial strength and predictability. We've weaved the team, empowered by this DNA, we entered this new and challenging exciting chapter in the Ferrari story ready to push the boundaries further. How we want to do it? It's 5 ways, and that's what you will see together with the colleague; first, by elevating the customer experience; second, by enriching the driving emotion; third, by always staying through to the racing spirit; fourth, by enhancing value and by taking the necessary action to reduce our climate impact because the planet is very important. In our company, the people and the planet are very, very important. Let's start from what has been done in the last 4 years since the previous Capital Market Day, September 18. Today, I mean, we have the team, the company has been delivering basically on all the promises. And there are 3 things that are highlighted in this chart. The first one -- the first one you see there -- what is the industrial -- accumulated industrial free cash flow that we are confident to reach by year-end. It's about EUR 2.5 billion after accumulated EBITDA of more than EUR 5 billion. And this has been done despite the global pandemic that we have been living all over the world. The second, the team said that 15 new models were going to be launched. We did it. We launched 15 new models. Now in our portfolio, we have the most innovative, the broadest portfolio. And this is really a unique asset. I was talking with some of one of you before, and this is something that many of you have been noticing. Now 4 years ago, we said we will also have our Hybrid Ferrari. We have 4 Hybrid Ferrari in our portfolio. We have 2 coming from the V8 SF90 Stradale, SF90 Spider and we have 2 coming from V6. We're talking about 296 GTB and the one that we announced in April 296 GTS. And then another important delivery is we expanded our customer base by 25%. So I think this is a good summary of what we have been able to deliver in the last -- in the last 4 years. But what is ahead of us. With our customer base today, we just touched very small part of high net worth individuals. We touch 0.3%. They engage with the enlargement of this base. The rejuvenation of this customer base is also one of our many opportunities while always staying through to the scarcity that is core to our philosophy. Now this is, I think, one of the most important charts on my introduction. Here, I put 2 important things, the trend of Ferrari of the luxury world and the trend of automotive. I mean we, as Ferrari, we are the guardian of an incredible brand that is really uniquely positioned to provide unique product -- luxury products, accelerating experiences and also memorable emotion. All the luxury trend that you see on the left of this chart are really ingrained in our DNA. I'm talking about personnel. I'm talking about sustainable, experiential and culturally relevant. Personal because we always put the customers at the center of everything we do because we leverage the state-of-the-art technologies combined with a human touch. We humanize technologies so that they can deliver the best emotion. And we have reached constantly the touch point so that our customer can feel part of the family. It's sustainable -- because it's the quality and the durability of all the material we select that make our car last for the life forever. Sustainability is a priority for us. And you will see in the last part of this presentation, what is our plan to become carbon neutral by end of this decade, by end of 2030. It's also experiential because at Ferrari on one side, we craft timeless icons that are nice to behold. But on the other side, these cars, you've seen some here, are able to deliver unique experiences. Let's remember the Finali Mondiali, the Cavalcade event -- these are, if you are unexperienced, just to mention a few of them. And then there is the last dimension that is very important is the culture relevance. Why? I'm referring also to the cultural roots of our brand that is committed to constantly enhance nurture and make the brand even stronger in a world that is changing so fast. Think about what we do in our -- with our exhibition in the museum. We are -- in this way, we highlight the value of our Italian excellence, Italian artfulness and the deep sense of limitless achievement. Now let's see a little bit on the right side of this chart, which are the trend of automotive. And I think you can see in many pages nowadays. So -- there is -- the company -- the cars in the future are going to be more shared, more autonomous, more connected and more electric. And there is a reason why some letter are full black or full red or partially red and black. So First of all, let's start with the Shared. We are not a mobility company. We want to provide -- continue to provide unique experience. This is key. And in future, more -- when more and more cars will be shared, owning a Ferrari will be even more unique. This is very important. Let's see the second trend, autonomous. It's clear for us, we will stop L2/L2+ level. We will not go L4, L5. We will have Ferrari with a lot of new technologies. I'm talking about sensors, I'm talking about the processors. But this will be always used to enhance the driving experience. We don't want a car to be alone. We want to put always the humans at the center of experience. Then there is connectivity. Connectivity is more interesting. Clearly, we will -- I mean we will use some of the connectivity enabled function also because we want to get closer and enhance the relation with the customer. You see always the customer at the center. Now what is really important is electrification. You have been asking me in the quarterly call many questions about this. and we will start to unveil what we plan to do on electrification. This is very important for us. It's important because on one side, we have to cope with the emission regulation. But most importantly, it's because we see electrification as a way, as a technology that can enhance the performance of what we do. And think about the hybrid cars, hybrid car has been done also with the goal to enhance performances. Gianmaria later will go -- will show you more in detail what we intend to do. I would say that we, Ferrari as a specialist and crafted maker company, we have -- we have all the skills. We have all the capital, human and financial, to make, to harness this technology, this electric technology like we are doing with other technologies like we did. And all this will be done with a disciplined use of our CapEx. And Antonio will show you later how this will happen. What did -- why am I saying that the electric technologies being used, it's a way to enhance the performances. Well, this is something that I let you guess if you wanted during the quarterly call. And I also really want to thank for all the patience you had to wait till today. But if you see this chart, it's clear that our electrification journey started in 2009. So we are not entering this transition. We entered it, we decided to enter and like all the transition, like all the transition I managed in my previous professional life, it's important that transition are sound and well paced. It's important in the period like this, it is important to build on what the company has, to look at what is happening outside and to use and to read with different eyes. The journey, as I said, started with Formula 1 experience in 2009, and then it found a way in the -- in our Supercar in 2013, LaFerrari. And then let's say, it takes a big step forward with the 4 Hybrid cars because we moved these technologies from, let's say, Supercar to the range car, 4 cars that are using this technology that is racing derived. The performance of this technology is really unique, and you will see in the presentation later. It's important that this combination in this -- let's say, link and the possibility to access a set of technologies that are coming from racing team. We -- based on this, based on this journey and our experience, the 2025, like it has been said already 1 year ago, we will unveil our first electric Ferrari. We will access the technology reservoir in our company. We will access the technology reservoir that I am bringing from outside together with partners, I'm so glad to see here in the audience. And today, to get together, we will have really a car that is unique, that is leveraging at the best, all this experience from the racing world. I would like to give you more detail -- specific detail about this electric Ferrari, but I will -- I have to resist this temptation. And what I can tell you is that it will be unique. And when developing this car -- we are developing, obviously, since a while this cars, we are looking at all the dimension without any bias in a scientific way, but with the Ferrari lens. This is important. So just some highlight. First, we are looking at energy efficiency, looking at both the traction and also the losses because of aerodynamic. Here, we will use -- we will use the highest power density electric engine that is derived from our racing world. And we will also look how to reduce the losses coming from the aerodynamic world. And aerodynamic and traction are just 2 examples of the transfer of technologies that is [indiscernible] fluent between the racing world and the range, the road car. Second, the emotional side, we will always use leading-edge technologies. -- because we want to embed exciting driving emotion in every model. Electric engines are not silent. -- Electric engine are not silent, each one of them has its own signature and Ernesto will tell you a little bit more later. Third, our environmental focus. The planet is very important. We have to pay close attention to the impact of what we do. And we are looking at all the sustainable material because we are committed for carbon neutrality by 2030. Another kind of question I get during all the speech is what will you do on the manufacturing side. I think here, we would follow exactly what we are doing on the ICE world. Our approach is the same. The engine remains make -- the engine will speak the language of Maranello. Together, with other core components that we believe are critical in differentiating our product and guarantee the competitive advantage. The existing solution instead that are available on the market will be tailored, read -- we read with different eyes with our own eyes in a way that our car continue to be unique and authentic. So the full Ferrari -- the full electric Ferrari will be [ e-Ferrari ]. This is something that we are working on. We also heard about what we are doing on the investment side. Clearly, we to deliver what I -- I described to you, the engine, [indiscernible] We have to be a little bit more patient for the presentation later. We will -- we are building the e-building, okay? This is important. What we will do in this e-building? We will lend the craft. We will continue to make unique electric engines and batteries that are key for our car. In this plant development will assure us a technical capacity in excess of our needs for the years to come. And on top of the capacity, all the capability that we need for some years in front of us. So this is very important. We will also add to easy e-building to this factory, also new pain shop because we want to provide always more and more unique cars and the personalization, we have seen how much is important in the luxury space. So e-building and paint shop. We are clearly makers. Do we want to do everything in-house? No. No, we started the 1947, our founder started 1947 working with partners. SKF was one of them. We have to -- we are in a world where open innovation is important. I have also in my professional life, I have been always looking at working together with partners on noncore features and then working with the partners that have state-of-the-art technologies, how to tailor, how to adapt, how to read these technologies in a way that we, Ferrari remain focused on our value-added solution. So we will have the right blend between what we make and what instead we do partnering with other friends outside, let's say, Ferrari world. Finally, we unveil what is the split of our offering in the years to come. In 2021, you see in this chart, -- we have a split between ICE and hybrid 80/20. Our product portfolio will evolve like this chart is showing, and we will keep the 3 distinct powertrains alive because we want to fulfill our clients' dream in line with the strategy that was already laid a few years ago, different Ferrari for different Ferraristi and different Ferrari for different moments. And Enrico will tell you more about the product strategy. In addition, you see here to ICE and Hybrid engine, well, we will have also the full electric in 2025. Today, 80/20 in 2026, the 80 will become 40% in terms of offering and the remaining 60% will be split between Hybrid and full electric. I believe that ICE has a lot to give. And I believe that we can take a technology that is very efficient, and we can work with some partners on e-fuels so that we can continue to develop unique solutions, distinctive solution so that we can contribute to the reduction of CO2 emission. Innovation flows in our blood. I mean it's part of our DNA. You have seen it. So the challenge to build Ferrari for a low emission future is one we are embracing with all enthusiasm that you can see that I can breathe every day. And by 2030, -- by 2030, the ICE contribution in terms of offering will go down to 20%, and you will have 40% full electric and 40% Hybrid. This is the plan that we have for this decade. Now after clarifying the electrification strategy, I would like to explain this chart about the racing spirit because this is a part of our DNA and having working in a company like Ferrari that has this racing heritage has 3 major advantage. The first one, it allows us to develop leading-edge technologies that can be applied also exclusively to road cars. The second, it provides a unique platform where we can enlarge our partnership portfolio, not only on the technical side but also on the commercial side. And finally, and this is very important. This is something that you need -- you breathe it. It reminds us of the importance of speed, agility and perfection. The need to pay attention to all the single detail. And this is what keeps alive the continuous striving spirit for victory. Our Formula 1 racing team has returned to the front of the grid and also to the top of the podium. Thanks to the team, thanks to the F1-75, and thanks to the talented drivers we have. It is also a great satisfaction of all of us, and we are very delighted when we see the hard work starting to pay off. But we also we know that we have to continue to fight race by race, always with passion, always with the ambition and the humility that comes from continuous learning. This is very, very important. And also after the -- some success here in Formula 1, there is also a very important work that the team is doing in FIA WEC. And here, I think we are well on track for our return to the Le Mans next year, in 2023, with our Hybrid car. It's really thrilling to think that in the less -- a little bit under 1 year, we will compete for the outright victory at Le Mans. It's a place where many chapters, many important chapters of our company have been written. And this is also a way to continue to push ahead our technology boundaries so that we can be really continue to have some unique distinctive emotions. I think that there is also another important pillar that is -- well, I will spend some time. I will touch it. The colleague will not talk about that later. I think it's very important. This -- it's been a little bit touched also by our Chairman before. Ferrari is racing, Ferrari is car, but is also lifestyle. Since 1947, 75 years ago, we also stand -- we stand for Italian artfulness for iconicity, limitless achievement and imagination. These are all elements that resonate very well with the business of Luxury in which Ferrari is playing where we have a strong legitimacy. That's why soon after I arrived here, I took interim responsibility for these activities. I want really to understand properly where we are and where it makes sense to go. And my conclusion is simple. We touch only the surface. There is -- this lifestyle pillar is a way that we can use to delight customers also in different moments in different ways. And we can enhance the way people live Ferrari in terms of product, in terms of experience, but always remaining in a consistent way. We will entice more women, more men, we will entice, also we will engage a new generation, new kind of clients because we want -- it's a unique opportunity to make this brand relevant for a wider audience. So the Ferrari brand halo consists of what I showed you before, but is expressed itself in imagination, limitless achievement, Italian artfulness, iconicity. And these are the things that are important in a world like the luxury one that is in search of authentic emotion and shared values. Through our cars, we are currently serving only a fraction of our target audience. You have seen before, you have seen before how small it is, but we have also an opportunity in front of us around $300 billion with a compound annual growth rate between 6% and 8%. These are the estimation that we are seeing and in which luxury goods play an important -- personal luxury goods play an important role. And through this market, we have a unique chance to enhance, to enrich the conversation we have with a wider -- with the millennials. And also, as we can tap, we can pull all the emotion that our brand exercise around the world, not the least in Asia. At our last Capital Market Day, you heard the word brand diversification. From now on 16 June 2022, we were talking about lifestyle pillars. Our soul is inclusive, but there is a common core, a distinctive why, how and what that we will leverage to drive the growth of this pillar. What did we do since last Capital Market Day? Here, you see, we did 5 things. We reduced them by 40% license agreement because we want to protect our brand equity. We also rationalized the retail network in Europe, and we opened 2 new stores in U.S.A. We launched our first 2 fashion collection, reaching a new target audience for the company. We continue to fuel our enthusiast passion through our Ferrari theme park and our museum here in Maranello and Modena -- We opened the new Cavallino restaurant, not far away from where we are. And finally, we hired also talented people, both on the business side and on the technical side, on the creative side, and on design side. And I'm really happy and delighted to have both Rocco and Carla. Carla newly joined us. We did an announcement a few days ago. Carla will be the Head of Lifestyle pillars and also the Chief Brand Officer of all Ferrari. Now are we satisfied with what we did? We are never satisfied. We are always pushing for the limitless achievement. We have always to challenge ourselves. We have to be paranoid someone in the tech industry's sake. We would -- we have an ambitious and realistic plan. By 2026, we aim to double our revenue in this pillar by a [ factor of 2 ] by focusing on 3 areas. We will focus on luxury goods. And this we already started to do. We focus on the experiential side with theme park and museum. And also we work on the collectibles. Collectible is a way where the enthusiasm and passion of the people that conceive, design a craft or the career will express itself in something that is different from a car. So this is very, very important. I think that now to talk about the car and to transition to Enrico, it deserves some attention on this next chart. It is about the Purosangue. It is an important achievement for all the team. And this is also, I would say, something that I had the pleasure like several other colleagues I see in the room to drive in the hills around the year. It's a really sport cars. Yesterday, also have seen some feedback of customers. It's really sport car. It's unlike any other. Now if you want to see all the details, you have to wait for September, but this is 100% Ferrari that is bringing all unique features and also here, we decided to go with our iconic V12 natural aspirated engine because this is for the most passionate customers and for the members of the family. I am confident it will meet and exceed the expectation of the customer in terms of performance, innovation and design. And finally, really, we will make sure that we will maintain the highest possible level of exclusivity. Antonio and Enrico, will be very clear about this. Purosangue will not be our most relevant product. It is a very interesting add-on to our product lineup. And on this note, I really would like to have Enrico joining here and go and bring you more on the detail of our product strategy.

Thank you, Benedetto. And good morning, and welcome to this very important day for the company. My presentation will be focused on describing the way we interact with the members of the Ferrari family as clients like to consider themselves. This represents one of the key characteristics of our company, which is not only delivering unique and performing car, but also the opportunity of being part of something special, something that we like to call the Ferrari family. Now my presentation will be divided into 3 chapters. First, we aim to give you a full perspective of what our efforts and achievements have been with regard to our last plan. A second chapter will focus on our future product strategy and how we plan to achieve our targets following a specific product development strategy. Last but not least, we will dive into the activities that will surround our cars and that will enable us to strengthen our community. This will give me a chance to talk about our omni-touchpoint strategy and the way we plan to engage with our clients or our member of the family. Now let's start with the outcomes of our strategy with a focus on the execution of our plan. I think it is quite interesting to mention a few points. The first one is the number of launches. In the previous Capital Market Day, we have been quite aggressive in communicating 15 new products that we plan to introduce in the market by 2022. Now I'm happy to say that we were able to actually confirm this number. Despite all the effects, among other the pandemic that have affected our all the previous years. We have been able to maintain our commitment and to deliver what we have promised in terms of new products. The second important message I'd like to deliver to you is that we have been able to design the most iconic, most beautiful and widest product line up so far. It's interesting to mention this specific point since when we presented our plan, we were asked whether this range wasn't too wide -- whether we were creating too many products. Since then, we have been repeating that every single product is designed to create a unique positioning and to target a specific customer base. And so far, this strategy proved to be quite effective. I'm happy to show you some of the main achievement of our previous plan that we are very proud of. The first number show that we have been able to achieve one of the main objectives of our previous plan, increase the number of the Ferrari family. We have engaged with more than 15,000 new clients that were added to our customer base with a plus 25%. The second number is again quite impressive. We were aiming at decreasing the average age, essentially rejuvenating our customer base. Once again, as you can see, we have been able to decrease the average age by 8 years during the plan. And last but not least, we have been able to focus on our top collectors, which are now 60% new, younger than before. And most of all, with a much higher number of models in their garage, up almost 25%. Everything was done and achieved while delivering the widest ever portfolio in our history. This is to say that our strategy was quite new, innovative and has been delivering even more than what we had expected. And now we are sitting on a portfolio of orders and the number of family members that allow us to plan for the future. Now let's talk about the future. And let's focus on the product strategy. From this slide, you can immediately see that we are confirming our product strategy, which is based on 2 very simple pillars. On one hand, we have what we call different Ferrari for different Ferraristi, which was the base of our strategy. Every single product we introduced in the market is designed to satisfy the different customer profile from a more aggressive sport car to a more versatile sport car. But I will come back to this later in the presentation. And then having such a wide product portfolio and product range, we can act on the second part of our product strategy that is named different Ferrari for different moments. It simply means that even if I enter the Ferrari family by a Portofino M or SF90 Stradale, there is no reason why I shouldn't have more than one Ferrari in my garage or become a collector to enjoy in different situation our Ferrari and above all, to have a great lineup in my garage. Now building on this strategy, we have been able to increasingly focus on how to segment clients and how to satisfy them with different products, always keeping in mind something that is even stronger than in the past. The main reason to be for every single Ferrari are performance and driving thrills. We are selling sports car, whatever the [ declination ]of the product, the starting point is that they are true sports car. In that perspective, we have been trying to polarize our clients. trying to find 2 extremes. We can say that on one extreme, we can find the sports car driver, trying looking for an elegance, sporty and the state design, trying to love to drive the car everywhere in every condition, both by themselves and with friends. These clients use their Ferrari for long journeys or frequently. On the other extreme, you can find the pilot. Again, clients looking for a high-performing sports car. But here, they are more extreme and very sporty. They love to drive their car on track or on challenging roads. Adrenaline is what they are chasing after. And essentially, they want to maximize their performance. Now this simple client segmentation allow us to easily position every single Ferrari model on a map, where at the 2 extremes, we have the 2 types of Ferraristi, the pilot and the sports car driver. All our models are designed to satisfy a different need. So on one extreme, you find the SF90 Stradale and Spider, our supercar in the range to satisfy the most demanding Ferraristi, and on the other side, the Portofino M designed for clients looking for the Ferrari performance but with additional features. And in between, then we can position the Roma, the [Foreign Language] Superfast and GTS. I like to mention them in Italian and the [Foreign Language] GTB and GTS. Each of them with a completely different positioning. And now we have a big news, the Purosangue. What about the Purosangue? The Purosangue will be another model further enlarging the sport car offer in the Ferrari range, and I repeat it, the sport car offer in the Ferrari range. As Benedetto already mentioned, it will be another sport car because it will only open a new segment designed to attract different Ferraristi in the sports car arena. But it will also let our existing Ferraristi enjoy another model to be used in different moments and further enriching their collection. The Purosangue is, of course, the big news in our product lineup. At this moment, we are not disclosing any technical details about performance and the rest. So you will have again to wait until September when everything will be unveiled. However, there are some key elements that we want to underline, which lie behind the choice of this iconic name Purosangue Thoroughbred. It's because it's a 100% Ferrari -- and this is one of the reasons why we decided to have it with the most iconic engine in the Ferrari history, our V12 engine, normally aspirated which is designed and targeted to our most passionate clients and members of the family. The key drivers are always the same when we develop a sports car: design, performance and driving thrills. We also made sure, as Benedetto said, but I want to re-underline it, to maintain the highest possible level of exclusivity. By this, we mean that the Purosangue won't be our most relevant model from a volume standpoint. The Purosangue will be an additional product that will provide an additional benefit to our client base [Foreign Language]. Now the next chart is designed to describe the concept of different Ferrari for different moments and the implication for the collectors. As I was mentioning before, there's no reason why if someone decides to join the family by buying Ferrari, they shouldn't grow the number of Ferrari in their garage and ultimately become collectors. The parameters we are showing here illustrate our current situation. We have been nurturing our prospects, the number of people that are considering buying Ferrari. We have been expanding a lot. You have seen the number before, the number of people that currently owns a Ferrari, they have a Ferrari in their garage, and we have been inviting our clients to become collectors. The whole range of products of our products is designed for this reason, different Ferrari for different moment. You buy an SF90 to have fun on track and you buy a Purosangue in the future to have fun with your family, hence allowing clients to grow in the pyramid. Then in order to further reward the commitments of our clients, we have been designing other product lineups. Together with the range, we have what we call the collectors' reward. On one side, the special series whose objective is to award the top level of the pyramid, and more exclusively with the other 2 pillars, Icona or which we introduced recently the second chapter, the Daytona SP3 and the next Supercar. These are going to be our 4 strategic product pillars in the future. First, we have the full lineup of our range product with all of them being sports car focused on performance and driving thrill but with the level of versatility and design that vary between one model and the other. Then we have the special series but again, focused on extreme performance, driving thrills and design, which are [indiscernible] Collectors. The third refers to the Icona projects. one of the most exclusive project designed to identify iconic concept, not iconic car, iconic concept of our history, of our past but are interpreted with a modern twist and modern materials. Last but not least, the highly awaited new Supercar which will further enrich an already stunning line up of models, which started many years ago with the 288 GTO and up to the most recent LaFerrari. Well, 4 years ago, in the same meeting, we announced that we were starting to develop this segment. And now we are happy to confirm that it will arrive soon. Now another important point. As anticipated by Benedetto, we also made another important announcement together with the Purosangue, another exciting project, and together with the Supercar, we are already working on another important milestone for the company, the first full electric Ferrari. Of course, it's early to talk about it, but my colleagues will share a few insights about our electrification strategy. But I just want to underline that, number one, it will further enrich our product range. Number two, it will have several unique features, and number three, it will leverage on the experience developed by our racing team. So in other words, as every Ferrari, it will be a sports car. And it will be another model which will leverage on different powertrain to offer a true Ferrari driving experience. All of this will drive us to our next commitment. And I'm happy to say that over the next plan, we are committed to unveiling 15 new products in order to keep our product range up to the level where Ferrari has always been. Let's now move to the third chapter. This chapter is about how we communicate and engage with our clients. We are talking about our omni-touchpoint strategy as we try to identify a clear way to maximize the effectiveness of all the main contact points during the customer journey. Let's review our main activities divided in 3 core touchpoints: number one, the physical touch point, number two, the digital one; and number three, the experiential touch point. As far as the physical touch points are concerned, we have been investing with our partner to create a luxe environment where to meet our clients with a consistent execution throughout the world, which brought us to the current footprint, present in 60 markets with 191 point of sales and 240 workshops. We completed the implementation of the new corporate identity, adding a further component to the hospitality of our showroom in order to offer the possibility to use them as a community center -- not just to sell car but to engage and invite clients, all the one they share the same passion for the Prancing horse. And last but not least, our people. Since the very beginning, as Benedetto said our founder has always said that Ferrari is run by people, mainly by people. And this is going to be one of the core assets for us and for the market. Because they have to properly represent our company, its history, its present, and also its future. That's why we are further enriching our proprietary courses developed by our Ferrari Academy which are delivered not only to our people but more to more than 3,500 dealer staff that represent Ferrari all over the world. Now let's move to another important chapter of our commercial strategy. We want our clients to be happy, to smile, but through the whole lifecycle of the car -- when they buy the car and throughout the other experience. It means that the aftersales support, whether for spare part availability or workshop capability is extremely important. There are 3 pillars that are key. First of all, when a Ferrari is delivered, it enters the market forever. We are talking about the car that will last into history and we are committed to keeping it alive for the next 20, 50, 100 and more years. Second, we want our clients to enjoy the journey. They have to know that they are driving a very reliable car that can bring you wherever you want. And for this reason, we are able to offer a warranty coverage up to 15 years, something unique in this market that prove how we test our product. Last but not least, we are working to make our relationship with clients even stronger, faster, thanks to digitalization which is aimed at improving customer service as well as ultimately increasing the level of satisfaction of our clients by delivering the best-in-class service. This is a core objective for our entire team because we want our car to be driven. We strongly believe also now talking about the digital touch point. Still, we strongly believe that our clients want to keep a direct and physical connection with Ferrari. But at the same time, in order to make our relation even more connected and modern, we have been investing on our digital strategy, which is going to be another major focus for the future. Together with creating a direct communication channel with our clients, we also aim at reinforcing the bond with them. Our system will allow us to reach them in order to offer tailored proposal, an opportunity designed to maximize their engagement with Ferrari, also offering them the opportunity to stay connected with us wherever they are and whenever they want. And last but not least, our experience touch point. I often mention the desire of our clients to become part of the community, the famous Ferrari family. Offering them the opportunity to participate to moments where they can share with other [ Ferrari's ], the passion for Ferrari and drive the Ferrari. Now there is many ways to explain what I mean. But I think that the best way is to show you some example, watching together this short video. [Presentation]

Well, adding more to this video would only dilute the concept, but we just ended the first caveat [indiscernible] Dedicated to the owner of the Monza SP1, SP2, and the smile that you've seen in the face of some of the people in the video were exactly the best and most important word for our job, because we want to make sure that whoever buy a Ferrari and keep a Ferrari in his garage is having the possibility to become part of something special, what we call the famous Ferrari family. Now I'm approaching the end of my presentation, and I would like to come back to the very beginning because I started my speech again, talking about the Ferrari family. And I just concluded talking again about the Ferrari family. So I think it is a key for me to mention, again, the founder of the Ferrari family, in Ferrari, and one of his famous statement that still represent the foundation of our current and future strategy. Ferrari [Foreign Language]. Thank you for your attention. And now I hand over to [ Jean Maria Gas ].

Okay. [Foreign Language] Good morning to everyone also from my side. I am happy to be here for the first time and to contribute to the product development, leveraging on my long experience in Ferrari, both in racing and in road car development. Enrico left some important inputs for me for my presentation, but above all, for my work. This -- the first was the request to have different Ferrari for different [ Ferrarist ] and different Ferrari for different moments. The second was to constantly increase the car's performance and the driving [ trials ]. All these inputs have direct impacts on the product and technological developments. And today, I would like to explain how we are approaching these developments and what we are doing. I'll share with you the unique Ferrari way to develop a car. Obviously, I cannot go too much in detail, but I will do my best to explain to you the concept, the framework in which we are developing cars and what we mean when we say the unique Ferrari way. You can see on the slide the key elements representing the product D&A. First, we continuously share expertise, technologies, material and processes with the racing departments. Then we always push forward innovation on core vehicle areas, including both hardware and software, as well as tailoring existing technologies in Ferrari way, and conceiving distinctive and iconic components, some of which will be explained by Ernesto in a few minutes. But the most important one is our people that with passion and competencies, develop and then craft all of our cars. All these key elements link it constantly together at the core of the Ferrari way. Having said that, as you can see on the slide, the Ferrari lays -- the Ferrari way lays up on 3 main pillars: the design, the performance and the driving trials. We carefully balance these 3 pillars in our cars to a different degree to achieve the ultimate goal of offering a different Ferrari for different [ Ferrarist ] on different moments. I would like to drive you to this pillar in a little bit more detail. Firstly, I will focus on design because since sight is the first sense to enjoy the Ferrari. All the Ferraris have to be beautiful. For us, the design of a car is a structural part of our innovation process. And everything we do to develop the lines of our car is functional to increase the performance and the driving trials. As this video will explain it to you. Please enjoy the video. [Presentation]

Well, it's amazing. It's incredible what we are able to do. Let me switch now on the second pillar of the car development, the performance. Performance is the easier to explain, and it can summarize in the [ life ] time of the Ferrari track, but also to have a car that is so comfortable to drive. Let's take, for example, the plug-in hybrid, SF90, a production supercar with more than 1,000 horsepower via turbocharged with 3 electric motors. It is possible to use the car as most of our power by pushing and accelerating dramatically, but it's also possible to drive the car comfortably, silently and in total safety in an 8-gear at 50 kilometers per hour when talking to the passenger. Furthermore, being a plug-in, it's possible to use a car in electric mode to enter city centers in total silence. Our car product range is capable of satisfying all the different Ferrarist but also satisfying the same Ferrarist in a different moment. So I would like to share with you our approach and our path to defining the perfect balance of the key elements that shape our product range. Of course, power, power specific power is one of our excellences. It's always been, and so Ferrari said that the engine is the soul of the car. We are pushing forward this concept, always maintaining a strong connection with our roots. We are becoming closer to the engine by developing a profound knowledge in aerodynamics, control, weight, as well as the gearbox. All these elements are needed to achieve the Ferrari DNA. Aerodynamics is essential to achieve the load to have the correct grip in turns and reduce the drag on the [ straight ]. Mechatronics, the control integration of mechanics, electronics and software is key to pushing the car when on the edge, not only to achieve the performance but also to push forward the driving motion. Weight is fundamental to design different Ferrari because lower weight means performance. And last but not least, the driveline is fundamental to gain acceleration needed for the latter targets, but also for the [ versatility ] that I just described. Now I would like to drive you through our journey into performance. Only 10 years ago, we had deviate in V12 oil engine, where the V12 was the highest performing one. Already back then, we knew that the hybrid engine was the right technology to increase even more performance, and we developed LaFerrari V12 hybrid with that purpose. To build the hybrid range, we first started to develop the new V8 family using the turbo charge technology, the foundation on which to build hybridization. And we created one of the most acclaimed engine in the world, the one that on the two -- on the [ 488 GTB ]. Based on this achievement, we pushed the V8 towards hybridization. And we developed the SF90. As I said, the first range supercar via turbocharge with 3 electric engine becoming our most performing car. We weren't satisfied, and we continue to push for electrification, developing the new V6 engine on the 296 GTB, the apex of the driving trial. In our product range, the V8 and V6 are the internal combustion engine that perfectly match with electric ones to create unique power units to increase performance and the driving [ trials ]. But the V12 is an essential part of our heritage, and we'll keep on pushing its evolution for work to create unique cars with a very special soul. The 812 competition, the Daytona, the Purosangue are simply our electric [ expression ] and many more will come in Ferrari's future. Do you think we are happy to rest with what we have achieved so far? The answer is no, not at all. We strongly believe the hybrid to be the current technology that can further increase performance. Also, Formula 1 is adopting V6 hybrid engine and looking at the future. We plan to extend this technology to other racing activities. This technological progress will continue to be transferred to our road cars with the many cars we have in our pipeline for the years and years to come. Now after design and performance, I will focus on the driving trials. What does it mean? We also call it the visual driving emotion that drivers feel at the wheel. It's the adrenaline and then [indiscernible] that starts from the brain, next to the stomach and exploding the heart. It's a physical and mental experience that created a big smile on the driver's face and pushes the driver to experience it more and more. How can it happen? Why is Ferrari unique in deriving the motion? The answer is simple in 1 way and challenging in another. Simple because you can easily experience it when you drive in a Ferrari. Challenging because we must bring together all our expertise and competencies to reach this goal. This occurs every time and with all the Ferrari that leave on our [indiscernible] gates. Let me introduce now a short but very impressive video to show you what Ferrari means in terms of driving trials. Enjoy the video. [Presentation]

That's the correct one. Okay. Now we are able to integrate the 5 main attributes of the car into 1 total immersive dynamic experience. What the main elements that conveyed this experience. As you can see on the slide, the longitudinal and lateral acceleration, the braking, the gear change and, of course, the sound. Let's start with the longitudinal acceleration. The feeling of [ big bash ] pushing back into the seat. For this experience, of course, power density is needed, and we always has been the best-in-class, but also the [ throttle ] response is key. And our engineers have shaped it. The perfect cure to achieve this, ensuring that the pressure you put on the pedal is precisely translating the corresponds that you receive. I wouldn't suggest you to pull all your strength on the pedal unless we have the stomach able to manage the exciting acceleration you get from a Ferrari. Second, the latter acceleration, which means going to the terms and increasing constantly the speed from in to out, thanks to the perfect balance, grip, control integration, stiffness, power delivery and weight reduction. Having the perfect safety feeling depending on the driver's competencies with the [indiscernible] position, which means that from a maximum control set up on to having the total control of, every driver can have the same enjoyment and happiness when driving into the turns. The response of the steering wheel is the key. Turn the steering wheel to put the car in a precise position. And magically, the car will do exactly what the drivers want. Third, the brake response. Like the throttle and the steering wheel, the braking response is the key for driving trials. The car has to break with a huge deceleration thanks to the [ carbon ceramic ] brake components and their perfect integration with the car. It's a unique feeling to brake very, very close to the turn and experience the tight deceleration load. Fourth, the gear and the response of the gear shift. For every upshift and down shift the gear will give you extra acceleration or deceleration to increase the shift feeling. And fifth, the sound, the engine sound. It is the part of the experience that link together everything that I just described. During the longitudinal and lateral acceleration, the engine sound increases with the [indiscernible] as well in the upshift and the downshift to increase visual driving emotion. The unique Ferrari way is the ability to seamlessly conceive and achieve all these elements while perfectly shaping and balancing them to reach unique visual driving emotion and brings out a big smile on the drivers and passenger faces. As mentioned at multiple times, we never rest, and we are moving forward exploring new technology. The next for sure, will be the electric powertrain. What does it mean to make an electric Ferrari? It means that the electric Ferrari will be a Ferrari taking up the product development pillar seen previously, driving thrill performance and design. It must be capable to generating visual driving emotion, and it must have unique performance and, of course, a unique design. How we will do with the following elements? We derive the electric technology for the racing department. I mean design, material and production capabilities. We use all our manufacturing and assembling expertise to create unique electric components, optimizing the specific power to enhance the performance and to guarantee the driving trials. We deploy all our skill scenario dynamics and mechatronics to increase the range of the car without sacrificing the design of a car. Finally, we integrate the latter technologies with our vehicle dynamics capabilities to achieve the Ferrari driving emotion and as Benedetto as anticipated, creating a unique sound. Everything is being designed to respond to our different Ferrari for different Ferrarist and different moment strategy, and to guarantee this tailored car differentiation, we have developed different architecture. We have so far our widest architecture differentiation ever, as you can see on the slide. Internal combustion engine V6, V8 and V12, hybrid engines, V6 and v8, and full electric engines. The driveline can be 2-wheel drive or 4-wheel drive, and we can offer, of course, from 2 to 4 seats and even more in the future. To conclude, I would like to underline that we are managing all the technologies to continue to exceed customer expectations. But as I [indiscernible] many times, we will never rest, and we will stay true to our founder's belief that [Foreign Language]. I'm now happy to leave the stage to Ernesto, who will explain the component, the development path to achieve the technologies that I just mentioned. Thank you.

Thank you, [ Jean-Maria ]. Together with an amazing engineering team, I'm happy to contribute to the technology transition, whether on my past experience in analog, power and sensor chips. [ Jean-Maria ] has explained where our vehicles will be positioned in respect to design, performance and driving trials. Now I would like to share some insights on how we will do all of this. The engines for performance, focusing on power density, then the Ferrari dynamics. Here they are the mechanics component, sensor and our performance software development of a decade of experience are key. I will then provide a glimpse of our relentless innovation, where innovative materials, alternative fuel, lubricants and coolants are fundamental. Let's start from the engines. Ferrari engines were, are and will always be the best-in-class for what is its key parameter, specific power. In the engine manufacturing team, we have been working on Ferrari engines for 3 generation. This is what we mean when we say that the engine is in our DNA. For Ferrari, the internal combustion engine continues to be a priority in our development road map. All engines are not consisting [ Maranello ]. They are also designed and crafted and assembled in [ Maranello ]. The powertrain offering will become wider in the future, including photovoltaic, hydrogen and other technologies. The world of electric and combustion engine has many similarities. They both require a multiple set of expertise that intersect with significant commonalities. We have identified 4 of them. The first commonality is the racing world. This has been the case in the past. However, it is even stronger with the electrification transition. The architecture of our electric engine is raising the ride but the challenge has been to industrialize this engine to move from unitary production to 1,000 of units. A challenge that we have met also thanks to the precision mechanism how already existing in Maranello. A third similarity between these 2 were is the cooling system. And on this, we can average on our [ pro ] dynamics now. Another factor that makes our engines unique for a performance point of view is the software. And once again, we are applying everything we have learned over the years in the combustion world to the new challenge of electrification era. We can now do a path between this [ word ]. The combustion chamber corresponds to the inverter. And Ferrari [indiscernible] is to have the best-in-class inverter based on silicon carbide technology. This technology will allow us to manage, at the same time, high voltage, high power and to work at high frequencies, leading to higher power density for our electric engine. The piston corresponds to the magnet, which will be racing derived with some modification to enable the industrialization, and the fuel is the battery. For Ferrari, the battery is a strategic component. And for this reason, as in the case of the electric engine, it will be made here in Maranello. Today, all electric car upgraded longitudinal acceleration. However, the same cannot be said for the driving trials. The full electric Ferrari will combine performance with driving trials. This is our goal, and this is what we differentiate the full electric Ferrari from all others. The main approach will also apply to our electric engine, which will be designed and crafted and assembled in Maranello. They will be unique. They will be Ferrari engines. We have been working on batteries for years, witnessed by our patent portfolio that has been growing in this regard. Sale obviously commodity. And by purchasing them, we can constantly have assets to the highest quality possible and the latest technology. Our differentiating factor is how the cell will be assembled to and crafted these batteries. This gives us a differentiating factor because we can effectively integrate our battery into the chassis of our cars, reducing the weight of the vehicles, increasing the performance and creating a unique driving experience that is possible only with the Ferrari. What is our electric engine road map. At Ferrari, we believe that it is possible to define a law for the electric engine development. This will guide our future development to further improve the power density and as a consequence, to transform it into performance and drive trials. We will work on the coming strategy on materials and in the future on superconductors. All the elements we are working on now and in the years to come, we allow us to increase our power density by 10% every 2 years. Sound is one of the essential that characterized the Ferrari, 1 of the distinctive signature that conveys a motion as described by [ Jean-Maria ]. This is because the sound is not artificial, but originate from the engine. Each one is unique and therefore, is changing as its own sound, its own signature. And for this reason, it convey great emotion to those driving a Ferrari. Our electric car will have also their signature. Internal combustion and electric engine will have a different signature. However, that we both see the feelings and emotion of those driving the car. Let's now move on the Ferrari dynamics. As of today, on Ferrari, you have multiple sensor: accelerometer, gyroscope, microphone and much more. All of this improves [ vibro ] dynamics, as well as performance and drive trials. Sensors will play a fundamental role on the battery management, increasing the life of the battery as well as the safety. The first sensor was adopted in 1980 on the Ferrari 308 GTB. It was a position sensor. Now on our Ferraris, we can count tens and tens, almost 100 of different sensors. In the near future, our car will be [ equipped ] with a new sensor that will allow us to further improve the existing feature and enable new functions. Longer term new sensor technology will come up in the market, allowing for new application and step up in performance. An example, just think about Quantum sensors. The performance software found in a car is becoming a fundamental element to improve performance and introduce new function. The future will bring more of this and in a new ways. This is really a great news for Ferrari. Ferrari has been a pioneer. Just to recall a couple of examples, the [ better shift ] on F335 Formula 1 in 1995 and the manettino introduced on the F430, 2 iconic elements that are still present in every model of our range. Once again, racing has allowed us and will allow us again to be at the edge of innovation. In the following slide, you will see some examples of how combining sensor and software, it will be possible to further improve the performance and the driving trials of our cars. Driving trials is not just a acceleration. It is also the braking experience, stopping distance and much more. Before the ABS introduction, it was the driver's ability to reach the limiting braking. The ABS has made the experience easier, but we managed to improve on it. Thanks to the information we have from the main accelerometer, gyroscope and the deep control vehicle software now existing in Ferrari, we have reduced our braking distance by approximately 10%. When you compare the Ferrari with [ F60 ] sensor or without it. In addition to the reduction of the stopping distance, braking will become much more repeatable and precise, further increasing the driving experience, the safety feeling and above all, the driving trials. Now we can see a video to explain what Ferrari active suspension technology is about. [Presentation]

As we have just seen in the video, this will enable our car to apply the best suspension for every driving condition by keeping the vehicle body at the best ride [indiscernible]. An example is what our car we do work [ cornering ]. They will not only be a rotational movement, but the real lowering of the car's center of gravity. This will allow to generate higher [indiscernible] acceleration. That means to [indiscernible] driving speed. And once again, we result in increasing in performance and driving trials. Now I would like to share with you a first glimpse of the Ferrari dynamics control. And as usually done in Ferrari, this innovative feature will further enhance the driving trials. On [ straight ], you will have maximum speed stability, while [indiscernible] you will experience the optimum balance between stability and agility, reaching maximum acceleration while cornering. And you will have a maximum traction and stability exiting from the bend. This is yet another reason why Ferrari's electric car will be a Ferrari, not only because it will have the best-in-class engine with all that for -- from a performance point of view. Our car will convey unique emotion to the driver. When it comes to innovation, our goal is to enhance the performance and the driving trials. As you can see on the chart, this is the result of a special combination of [indiscernible] segment, I have briefly touched on today. And this is just a glimpse of what we are working on, performance and driving trials will improve. However, what we improve more than anything is the motion that our customer will experience when driving a Ferrari. Being a part of change is part of our DNA, and for this reason, climate change is a further stimulus to do what we have been doing for years, innovate. We have been concentrating on new materials, and an example of this is the recycled aluminum for which CO2 emissions could be reduced by up to 90%. We are also working with partners on alternative fuel such as [ effluents ], coolants and lubricants which will allow us to reduce emission also with our IC engines, building on our heritage. The further stream to innovation are the regulation that more than ever in this year are rapid evolving and that are not always aligned between different countries. The goal is to find solutions that will allow us to be compliant with every regulation without penalizing the performance and the driving trials. To conclude, I want to underline that for us, the technology transition is a unique opportunity to enhance our car performance even further. We start to develop our performance electric engine well before the world that was regulating this transition. And thus, I would like to end with this quarter from our founder, which in Ferrari will always be true. [Foreign Language]. I will now hand over to Antonio.

[Foreign Language] I'm really glad to welcome you here in person. As you may expect, I will explain how all what we have said so far translates into financial performance and outline our targets for the next 4 years. Before looking at our future, let's take a step back and review our track record since listing. Ferrari key financial strength, have historically been growth, margin expansion and solid industrial free cash flow generation. In the last 6 full years, we were able to grow our top line by almost 7% annually compared to 2015, while preserving exclusivity through a strict control on shipments by model and by geography. We doubled our EBITDA and expanded our EBITDA margin by almost 10 percentage points to close to 36% in 2021. We generated approximately EUR 2.45 billion of industrial free cash flow with a sound cash generation ratio of 34% on average. Over the same period, we prioritized the capital allocation towards capital expenditure to fuel the future development of the company while rewarding our shareholders through EUR 930 million in dividends, and share repurchases worth approximately EUR 800 million, EUR 850 million. The COVID-19 pandemic implied for us an 8% decrease in revenues, however, our EBITDA margin softened by only 70 basis points, which compares very favorably even in the luxury brands arena and was more than offset by a positive jump of almost 3 percentage points in 2021. As already recalled by Benedetto, despite COVID, we confirm our confidence to meet in 2022, our accumulated industrial free cash flow target as disclosed in the context of our Capital Markets Day of September 2018. And I may also add that this year, we'll end up just a touch below the cumulated EBITDA target. As described by Enrico, we have a very exciting product pipeline ahead of us. We will be able to play all levers offered by our widened range of powertrain, whether ICE, hybrid or full electric, but we'll keep on applying very carefully our scarcity model and maintain the offer of Icona and Supercars far below 5% of total volumes, special series at around 10%. And we'll be very disciplined and apply such philosophy also to our Purosangue, for which we currently plan to maintain yearly average contribution to our shipments below 20% over its life cycle. That perfectly fits with our vision to go for value and not for volume. Finally, the financial ambition outline in a minute are predicated upon the assumption that the extremely buoyant demand we have been witnessing in the last 12 months will gradually normalize. Over the plan period, therefore, volume growth is expected to be front-loaded and within our current production capacity. But let's now review the evolution of our revenues. Car-related activities will generate the bulk of our growth in the next 4 years. In this representation, they also include the sales of engines to Maserati whose contribution will seize in 2023 and the financial service activities. We target to grow such revenues at a yearly pace of roughly 10% compounded. This implies an increase of more than EUR 2 billion over the planned period, with the rich product portfolio being the main driver, along with the contribution of personalization, whose weight is assumed to remain within our historical experience in relation to revenues from cars and spare parts. Other revenue streams are also projected to positively contribute to our group's performance, both from our racing and lifestyle activities, which include the ambition to double lifestyle sales by 2026 versus pre-pandemic levels. All in all, we target to achieve total group net revenues up to EUR 6.7 billion in 2026, with a compounded annual growth rate of 9%. Based on such top line growth, we aim to reach an EBIT of approximately EUR 1.8 billion to EUR 2 billion by 2026. The 2 end drivers will be price mix that will be the main contributor and evolved according to the product guidance. In addition, personalization will also further enrich the mix with percentage margins in line with last year's. And then volume, albeit to a lesser extent. Our targets and this analysis assume only limited changes in the allocation of our sales by geographies with the overall weight of China, Hong Kong and Taiwan on our total yearly shipments, expected to grow and remain above 10%. It is worth noting that sales in China are the most profitable in absolute terms, while the least in percentage terms, since duties and indirect taxes inflate average selling prices. Opportunities to grow our customer base in China, therefore, implied an upside in terms of EBIT and EBITDA at the expense of their margins. Industrial costs and R&D will grow mainly due to D&A or full CapEx required to develop the product range as well as to expenses incurred to further enhance Ferrari's technological edge. In these numbers, we are factoring the expected cost cap from the F1 financial regulations related to the chassis and the development of the power unit. As a reminder, the current F1 regulatory framework is subject to renewal in 2026. SG&A will grow close to 9% annually and will not exceed 8% of our yearly revenues, reflecting mainly communication and marketing activities to support product range, lifestyle, network and organizational development. Our assumptions with respect to foreign exchange rates beyond 2022 is that the U.S. dollar will float against the euro around [ 1:15 ], which is not significantly different from what we had on average in 2021. We acknowledge that this is weaker than today's rate, but much closer to medium-term consensus. As a result of the above, we aim to strengthen our profitability metrics over the planned period at a pace of 11% annually. That is faster than revenues, and we target to achieve a remarkable EBITDA margin in 2026 of approximately 38% to 40%. Cumulative CapEx spending over the planned period will amount to a total of EUR 4.4 billion with approximately 75% of our investments focused on broadening and innovating the product range, aiming at the just announced 15 new launches over the next 4 years, and 25% will be devoted to infrastructure in order to foster our competitive advantage and increase the vertical integration of key components, such as the battery, the inverters, and the engines, which will be designed and crafted and assembled here in Maranello. As a result of our plans by 2026, the allocation of CapEx by powertrain will be approximately 25% ICE, 40% hybrid and 35% full electric with CapEx devoted to full electrics, leveraging also previous year investments on the hybrid components. After 2022, we project the incidence of capital expenditure of the revenues not to exceed 15% on a yearly basis and the ratio of CapEx to D&A to stabilize at around 1.2. Between 2021 and 2026, CapEx therefore growing by 5% annually. We target accumulated industrial free cash flow of approximately EUR 4.6 billion to EUR 4.9 billion over the planned period. That is to double what we generated in the 2016, 2021 time frame. Also, the accumulated cash conversion ratio has improved by almost 10 percentage points to 44%. The industrial free cash flow generation will be mostly sustained by the growing profitability net of capital expenditures. All other cash components are a net drag, and the advances on our limited series models will significantly benefit certain years at the expense of the following ones, but are seeing almost neutral on a cumulative basis over the planned period. Our tax rate is a seem to keep on benefiting of the patent box regime and remain slightly above 20% even under the new rules that we will start applying from 2025 onwards. On this slide, you can find the summary of the financial targets we have set for 2026. Net revenues up to EUR 6.7 billion. Adjusted EBITDA between EUR 2.5 billion and EUR 2.7 billion, with the EBITDA margin to further improve to 38% to 40% at the end of the plan. Adjusted EBIT between EUR 1.8 billion and EUR 2 billion with an EBIT margin between 27% and 30%. Adjusted EPS, diluted in the range of EUR 7.2 to EUR 8, growing annually by a compounded rate of more than 11%. And finally, industrial free cash flow, reaching accumulated amount of EUR 4.6 billion to EUR 4.9 billion, including the 2022 base year. This compares with our guidance for 2022, which we are confident to meet at the high end of its ranges. And we also confirm the 2023 targets of EUR 1.8 billion to EUR 2 billion of EBITDA and its margin above 38% as previously disclosed. With this target in mind, an appropriate consideration of the self-financing capabilities of Ferrari over the planned period, the company decided to proceed with the proposal of a dividend payout for the following years, raised to a steady 35% of adjusted net income from fiscal year 2022 onward and a roughly EUR 2 billion share repurchase program to be executed from now to the end of the planned period, in line with the progress of our free cash flow generation. Under these assumptions and with the cash generation that we target, we expect to achieve a net cash position before the end of the plan. And this clearly represents an opportunity for further favorable adjustment to our policy to reward our shareholders going forward. With that said, let me recap. First, our plan rests on a solid and comprehensive ground underpinned by the visibility granted by our unique business model. It privileges revenue over volume, and therefore, entails stronger price mix contribution made possible by an exciting model pipeline. Second, the plan also includes a significant degree of innovation and appropriate investment to fuel our growth trajectory even beyond this planned period. Third and final, we are determined to enhance shareholders' value through the judicious return of our free cash flow to you, our shareholders. Here at Ferrari, we are committed to flawlessly execute this plan and to grasp all the opportunities that lie ahead for our company and further grow its value. On this ambition, let me conclude by quoting our founder, Enzo Ferrari and recall our own responsibilities. [Foreign Language], I will now leave the floor to Benedetto.

The [ last effort ] and then we'll have the Q&A. Okay. So now we're talking about something that is very important for our company. Before I spoke about uniqueness, the people, the profitability but also underlined the seriousness of our commitment to ESG. We will see a brief video now. And in this video, you will see all the deliberate action that we do in ESG space but then later, I will make a specific focus on the environment. So let's see this video, and then we talk about the environment. [Presentation]

Last week, I was with -- we were -- the management of Ferrari was with more or less 100 son and daughters of our employees. They got an award for being excellent in the study they do. I can tell you that it is a truly unique experience. I mean, you can fill the trails. Let's focus now on some -- on this chart that will appear. On this chart that is talking about the environment. And here, as I told you at the beginning, in our DNA, there is this continuous learning approach through a scientific way. Antonio helped me to get used with numbers. Here, we don't talk about dollars. We talk about kiloton of CO2. And we choose to put some numbers, some chart numbers because we want also to be unique in this sense. We want to show you clearly which is our carbon footprint and which are the actions that we are taking and we plan to take. So 2 numbers in this chart. The unit is always kiloton. The world -- in the world, we have 58 million-kiloton per year. This is a CO2 equivalent footprint we are doing. The human kind is doing every year. Ferrari is doing 58 -- 622 kiloton. So the Ferrari impact is very small. We are talking about 0.001% of the global manmade emission. Well, this does not mean that since we are small, we don't care. This is exactly the opposite. We want to be a catalyst for change. We feel this responsibility. We feel the responsibility, and we want to show that things can be done because of limitless achievement of human kind. The emission we have, we are doing every year are falling in different categories. You see different color in this chart. So there are emissions that are coming from the tailpipe of the cars, but there are also emissions that are coming from other parts of the industry and the energy. So -- and this is true for all automotive companies. So we here in Ferrari, we want to follow a holistic and scientific way. We don't want to limit only from -- on the emission from a tank to wheel. That is very, very important. And that's what I will show you now today one by one, what we want to do. So we -- first of all, we have mapped our carbon footprint through all the scope 1, 2 and 3 that we are doing. So basically, all these numbers I'm showing you have been certified by ISO 14064 through a scientific way. our CO2 emission cover [ 3 stream ], #1 indirect upstream. This accounts more or less for 45% of the total emission and relates to our supply chain and procurement process. And the majority of this stream comes from raw material extraction and component -- basic component production. The second, the direct one is what we are doing in the operation here in Maranello and this accounts for 15% of the total emission. The third one is the one that most of the people limit to is the tailpipe is the downstream and it is related to vehicle use phase. In our calculation, we do not take in account, the CO2 footprint related to the end of life because as we said, Ferrari is forever. Now if you look at these figures, this commitment is really to go beyond the decarbonization of the use phase. We want to look overall, and we want to focus on the green energy. We want to focus also on the recycled materials and the development of innovative technologies capable of disrupting the present while designing the future. This is very important. Technologies is going to be used for the car as well as for what is needed to make the car. Now let's see the correction that we are planning to do. Let's see scope 1 and scope 2, okay? So what are we doing in our -- a few hundred meters far from here. Number one, we installed a 1 megawatt power of hydrogen -- hydrogen-ready full cell. Number two, we are building, will be completed by end of next year, and we are installing 37 megawatts of photovoltaic system. Number three, we will generate 77 megawatts from newly introduced biomethane for our 3 generators. This will be enough to absorb all the peak that we have on our plant. This is Scope 1 and Scope 2. And this action and the fact that since 2014, 100% of electricity we use comes from renewable sources means we will decarbonize all our facilities by 2030 will be zero; but we don't want to wait until end of this decade. We want to be -- to want to act now. And this is why we are starting to purchase certified carbon avoidance and sequestration credit, that will help us to be compliant since time zero. Over the time, you see the black car will go down, will go up with the Scope 1 and Scope 2 activities action that I described before, with clear carbon reduction, neutrality operation. Now let's look at what is happening is that on Scope 3 and, again, sorry if I bothered you with these numbers, but I think it's important in a company like us to be scientific and also to be specific, okay, not only percentage. So let's look at what is the upstream. We will reduce clearly the vehicle use phase because we will go electric. So we will, if you have seen before, we will increase the percentage of car that will use electrification. And by 2030, at least an average of 50% of the CO2 emission per car will be reduced. This, however, will increase the raw material emission because to produce 1 kilo aluminum steel, it's producing less kilogram of CO2 than 1 kilo of lithium or cobalt–manganese. So we have to look upstream. And we are looking already recycling the use of recycled aluminum, the using of recycled steel, and this to reduce by 2030 at least by 30%, the CO2 footprint of each car. Our -- we will keep a constant dialogue with our partners in the supply chain. If you see here on the supply chain, we take some margin. You see that it's flat. We believe there is something to do. We don't see yet -- we don't have yet a clear plan over there. We will work with the partners to see how we can reduce them. So we will look carefully on all technologies to reduce that. And while we are looking for all these new ideas for decarbonization, well, we will also, as I said, engage ourselves for the production for the use of -- for the purchase of certified carbon credit. But here in Ferrari, what does it mean climate contribution? Well, there are 2 distinct and transparent pillars. The first one is the purchase of this carbon avoidance sequestration credits. And here, we have started a partnership with ClimateSeed, that is an impact-driven company that is pushing for innovative project also with a positive impact on the climate and social contribution. The second one is to create Bosco Ferrari. This is an Italian reforestation project with the aim to act locally. These are the 2 ways we refer to when we talk about global climate contribution in our company. So Ferrari is committed to go carbon neutral by 2030. Our contribution to achieving the target set in 2015 by the Paris agreement is threefold: number one, the carbon neutrality in all our operations; number two, we reduced at least by 40% our Scope 3 emission per car, focusing mainly on material and vehicle use phase; and three, engaging in high-quality project with climate, social contribution. And I'm really proud to say that we will do all this being committed to set science-based target. Galileo was not far from here, was from Pisa. And we want to do in a scientific way. So I wanted to recap this before -- before your question. We started with our employees. You said, you saw, you heard many times how employ are important, and they are the most precious asset of our company. And I want to thank them, all of them for their invaluable and tireless contribution to the results that you've seen and also most importantly to what we will all do together. Ferrari is a maker. Ferrari is here, it's the people that make what we have seen. And one of my most important job is to empower them to make sure that from all my colleague, we can get the best as we build day by day, the future that we have been laying a few -- in all our presentations. This is a company that is dedicated to uniqueness in all what we produce, in how we produce and also to the unique emotion, the unique experience that I think you can brief in the video, but also in the presentation of the colleague and to fulfilling that dreams of our growing customer base. And this extends well beyond the track and road to our Ferrari lifestyle, values and heritage in the wider world of luxury. We also addressed extensively in detail all the electrification journey that we started and we intend to do to the end of this decade. This technology transition is an opportunity for us. This is an opportunity for us. And we are addressing in a way to enhance the performance of the car in the driving race. Our electric engine is racing the driver. Our timing is deliberate, and we have all the financial and human capital and skill to do to what we are seeing. We are all fully committed to go along this plan. How? We will look at also the emission. This is important. We will look at the planet, environment. We will look emission, Scope 1, Scope 2, Scope 3. We will do it in a holistic scientific way. And of course, as a company we are and we will be always committed to the owners of our shares as well as to the owners of our product, our beloved customers. The target we have unveiled today are ambitious. We are fully aware of that. But then also achievable. We have a plan. We do what we say. You have seen at the beginning of my presentation and also in the chart, of Antonio. We maintain our commitment. As in all other aspects of the company, what we have also shared openly with you. Our earnings speak to the quality of the finance to creating value into our commitment to sharing with you the information you need to do your job. And of course, our earnings speak to our determination always to push the boundaries forward of what we do day by day in every single moment. Our founder said in an interview in 1980, [Foreign Language] And we are very proud. Very, very proud to be the narrators of this challenge. Every day we wake up, we feel this privilege and this responsibility. I will now leave you with a brief video before we move to the Q&A with all the team. Thanks a lot for your attention. [Presentation]

[Operator Instructions]

[Operator Instructions] We can now move to the first question to Thomas Besson.

It's Thomas Besson of Kepler Cheuvreux. I have 2 questions, please. The first one is on the midterm volume edition. The first EVs 25 for the unveiling. So we're only going to see a little bit of that. Could you help us understand whether the new EV building means that Ferrari's midterm volume ambitions might be more like 20,000, 25,000 units, on the 14,000, 15,000, we could think with ICE only. So is it incremental to the existing ICE and hybrid business? And the second question is, I think there has been a year before this event about CapEx at Ferrari. Can you confirm that there is no step up of CapEx after 2025. I mean we're going to stay at or below 15% of revenues with depreciation to CapEx ratio being around 1.2?

Thank you. So I start from the building. As I said in the presentation, the electric car is an integral part of our strategy. We will unveil it in 2025. And by that time, we will be ready with the building. And everything that is being shown up here in the presentation is consistent. So top line, the split of the offering as well as the production capacity, they are all consistent. The second important point is the CapEx. And here, I would like to refer to the chart that I was telling you is one important chart in my presentation. The trend on in automotive sector. You may remember that I said that we have all the human and financial skills to make it happen. And the reason why I'm saying that is that there are some trends that are typical of large automotive suppliers that are not touching gas, but for which a lot of CapEx is needed. So the CapEx figure that you have seen in the presentation of Antonio, again, are consistent with what we need to do in a unique way, also because this electric, let me say, electrification of the thermal engine started a few years back, 12 years ago. So we believe that the numbers that you have seen over there are what is needed to make happen what has been shown to all of you in the presentation.

We can now move to the next question, Giulio Pescatore.

Giulio Pescatore from BNP Exane. The first one on the Purosangue. Thank you very much for the sneak peek yesterday for the teaser. It was very, very, very interesting. Can you maybe share your thoughts on the -- have you opened the order intake first of all? And can you maybe share what you've seen in terms of reaction from customers for this model? And then the second question, the previous assembly line allowed you to produce around 15,000 units, and you are now building a new one. Where is -- where does the ceiling go? I'm not saying that you want to get there in the next 10 years, but what does the new ceiling move? And then maybe last one, I found the decision to do your own assembly of battery modules quite interesting. Can you maybe share your thoughts on why you need to do that? And why do you think that differentiates you, given all the investments that the industry is putting in place for that type of technology?

I'm tempted to ask you how was the Purosangue, but I will first answer your question. So I will take the third one, and I would like Enrico to manage the Purosangue because you can comment about the feedback you get from the client. So the battery. The battery is an important part of our -- I mean of electric car. And we want to make sure that the battery is done in a way that is using, if you want a commodity, the cell in a unique way. You have heard before in the presentation of Ernesto, the battery management, the weight for the dynamics. I mean, these are all things that you can do in the right way if and only if you know how to use it. We don't make aluminum by ourselves. We use aluminum. We don't make -- we will not make cell by ourselves. We will pack them in a way that driving emotion and the performance of the car and the design of the car can be fit in the right way. So this is the reason why we said in the building, we make also the battery for this reason. We need to master something to exploit at the best the technology and to extract the biggest part of the value that, that technology can bring to the customer experience. While on the Purosangue, I would like Enrico, if you can comment about the 2 questions.

I think there's a simple word to answer your question, which is it's going to be a big problem for the company, a positive problem. Why I'm saying that? Because as we mentioned, we are trying to deliver something unique. And as always, when we deliver something unique, there is a high expectation from our clients. Already today, before the official presentation which will happen in September, we have been contacting at first, our important client, the one at the top of the pyramid that we -- pyramid that we showed before. And most of all of them are willing to buy which means that it's going to create 2 problems: number one, the expectation for delivery because we won't be able to deliver all of them immediately. And the second additional opportunity that we want to fully explore, which is to bring new members of the family. So in a nutshell, the car is already -- the reaction we are receiving are overwhelming. And most of our client base are willing to have the car. So yes, we already have a big order bank, which we are not disclosing. But maybe in September, we'll give you a glimpse of what is the coverage we already have in front of us, which is not going to be a few months. Are you talking about -- yes?

No, the second part of the question, if I understand well, Giulio was, I mean this is going to be like all the car we make exclusive. We do not want to double the production volume. We want always to preserve the uniqueness of this car and we set clear target in terms of -- this is, as I said, as we said, is an add-on to our product lineup. It's not a multiplier by 2. This is important.

We can now move to the next question. George, please go ahead.

George Galliers from Goldman Sachs. Thank you for your very detailed and insightful presentations. I just wanted to start with the battery cell, which you referred to as a commodity. Can you give us any insight into what chemistry you're looking at potentially what suppliers with respect to the cell? The second question I had was for Ernesto. In your presentation, you did mention hydrogen as a powertrain of the future. Was that a sort of generic term with regards to the industry? Or is hydrogen something Ferrari is actively looking at? And then thirdly, with respect to weight, do you see weight as an area where Ferrari can really differentiate itself in the battery electric vehicle world, given your expertise in motorsports?

Thank you for your question. Three interesting questions. I will take 1 and 3 that are related. So when I said that the cell is a commodity. I mean that there are several companies working start-ups, a lot of start-ups working on that. And if you want, it's funny to see that a lot of IP for the sale is coming from companies that are making display because at the end of the story, you are talking about processes that are going by square kilometers, I'm not saying square meters. Now what are we looking at? I would claim maybe this is not a scientific term. But the cell that today we are using are liquid polymer cell. And this is a fact. Clearly, we are looking. We are working with some partners also in the next generation, that is SSB, solid-state battery. But here, if you -- there is an advantage maybe sometimes coming from the high-tech world that you have a lot of previous coworkers that are working for these companies on a lot of previous customers that are working for this company. I think this is -- this kind of network is also important apart from obviously the attractiveness of the brand of Ferrari to have also some access to unique technologies that we offer them the technology to bring first on the market. The last question was the weight. You were saying the story of the weight because as I said before, to Giulio, we want to develop the battery pack by ourselves because this helps a lot in the dynamics of the car. And there is another important thing. Actually 2 other important things that helps the dynamics. And you can reduce the weight, it's the sensor and the software. I think that these are all the play. There is a nice interplay among all these factors that is fundamental for one of the key factors of the driving dynamics that at the end of the story is giving the driving thrills Gianmaria was telling you before. So this is question 1 and 3. H2, hydrogen. I would say the following. We do not see clearly car getting out with hydrogen in this decade. We would have been showing you, but it's also true that we are in a situation where there is a technology transition, there are a lot of people all over the world looking at different [ donation ]. We, as a leader, we as, I mean, is a company that is always pushing on leading-edge technology have the responsibility to look also what can happen in the following decade. So yes, we are looking. We are working with partners. And when I say partner, I talk about industrial and academic partners. But we believe that hydrogen is an important path to explore for the second decade in front of us.

Very clear.

We can now move to the next question. Please, Michael, the floor is yours.

Michael Binetti with Crédit Suisse. A lot of great topics to touch on here. But maybe one for Antonio for the boring finance people like myself in the room. I think the prior plan you laid out in 2018 was 7% to 8% revenue growth, 12% to 14% EBITDA growth. This algo looks like 9% revenue growth, 10% to 12% EBITDA growth. And the plan looks like it's driven by licensing and sponsorship growing faster than the total company, which should be a very high-margin part of the business, driven by pricing and mix again. It seems like there's some underlying assumption of profitability in the cars business that's a little bit lower to result in a slower EBITDA margin guidance? Or would you characterize it as conservatism? Or maybe just walk us through some of the breakpoints on EBITDA that might be different from the prior plan?

Yes. Well, I think the main difference compared to previous plan is that this one is front-loaded in terms of volume. So we are not betting and extrapolating on the current demand. While the development of margins is mainly driven by mix and price that has been shown in the chart in the EBIT walk. Actually, the contribution of revenues from racing and lifestyle is positive. But as you may see, it's not -- it does not represent the bulk of the areas of improvement of the company. So when you look at the overall profitability, I think the sound development of the mix is the one that really matters. And on top of that, we believe we can be cost efficient, meaning we keep having overall cost, both at the SG&A and at the R&D level, which will now grow at the same pace overall as the revenues. So overall, they are improving margins.

We can now move to the next question, please, Susy.

Susy Tibaldi from UBS. Just to follow up on the question on the EBITDA guide. I think given the state of the world and the fears about the macro and everything. I was wondering if there is a certain degree of cautiousness already baked into it. And if you are seeing any sign at all of any change in the demand pattern so far. And my second question is a little bit more qualitative. We're talking a lot about the technical aspects. And as a luxury analyst, I struggle a little bit to fully comprehend. But I wanted to ask, when it comes to your customer base, you gave some very interesting starts, you enlarge the customer base, it is becoming younger. When it comes to these new product launches that you're planning, how are you working to attract the new customer? And also, when you're thinking about the EV, are you thinking about a completely new customer category or are you thinking of a product that you're going to first offer to the loyal Ferrari customers? So it would be very interesting if you can explain a little bit more on the brand and customer side.

Maybe I take the first one, Susy. Do we have contingencies backing the plan? The answer is obviously yes. then it all depends on what happens. I mean we are living through uncertain times, but it's also true that on one end, we work on ranges. And to some extent, this provide for cautiousness. And the other end, I mean, if something unpredictable happens, I think the history of Ferrari can give you a sense of what the level of resilience of this company may be.

I go for -- I start for the -- on the customer side, Susy, then Enrico will complete. So I was having a dinner with some several customers in this [indiscernible] covered event that Enrico was referring to. I was the oldest one. And they had in differently, hybrid and ICE car and then it's clear that if we do the analysis of our -- by age of our customer base, we do not see a clear pattern towards the powertrain they select. Instead, the common trait is the passion and the driving emotion that they want to experience. It was funny to see also their interesting to see their comment. So this is I think the best way to reply your answers. And I think also in terms of -- you were making another question about the change in demand, we do not see any change. Basically, we do not see any change. You want to add something, Enrico?