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

Ladies and gentlemen, please welcome on stage Ferrari Executive Chairman, John Elkann.

[Foreign Language] good morning. Welcome once again to Maranello, our home and the heart of Ferrari. Every time we have gathered here for our Capital Markets Day, it is an occasion both to reflect and to commit. In 2018, when I stood here with you, I spoke about the spirit of Ferrari, a spirit born from Enzo Ferrari and kept alive by all of us in the company. In 2022, as we marked Ferrari's 75th anniversary, I underlined how we would face the transformations of the decade with ambition and humility. Today, I stand before you to say that what we declared then remains true. When Ferrari went public on October 21, 2015, the world took a closer look at us. Many wondered whether a company built on passion, innovation and craftsmanship could also thrive under the discipline of the capital markets. Ten years later, the answer is clear. Ferrari is a stronger company. Since the IPO, we have invested EUR 6.5 billion in capital expenditures, building the foundations for our growth and our future. The e-building is a proof of it. We have launched 41 new sports cars in this decade, each one of them being a unique expression of Ferrari's DNA. We have doubled our workforce from just under 3,000 people in 2015 to around 6,000 people today. And we have innovated. We have accelerated at a breathtaking pace, 883 patents filed since the IPO and already 144 this year. These achievements are not just numbers. They are proof of commitment. They are the result of the passion and dedication of the people of Ferrari. Metrics tell part of the story, but they do not define Ferrari. Ferrari is unique. It is unique because of 3 dimensions: Heritage, technology and racing. It is exactly the perfect blend of these 3 dimensions that define the 3 souls of Ferrari. Racing, a story started on the track almost 100 years ago, which defines who we are; sports cars, which embody performance, design and emotions; lifestyle, where Ferrari transcends the car, inspiring a community and a culture that reaches across the world. And I would encourage all of you to go visit our museums this afternoon and shop. And I was very pleased last night at my table that I had a very nice surprise of seeing one of our investors who had a nice burgundy bag, and I want to thank her for her for that. These 3 souls are the essence of Ferrari. To remain unique, Ferrari must keep nurturing and growing its people. As Enzo Ferrari once said, every factory should have a training center to prepare its technicians for their future work. This is what he did by starting the Squalo Perfezionamento Professionale Alfredo Ferrari in 1945, which then became the Istituto Tecnico Alfredo Ferrari in 1963. Today, we are proud to announce the creation of a pioneering educational hub here in Maranello, which will provide technical knowledge for a new era, training and inspiring generations of engineers, technicians and innovators. The M-TECH Alfredo Ferrari. M for Maranello, TECH for Technology and Alfredo Ferrari, the names of the father, the brother and the eldest son of our founder, Enzo Ferrari, will come alive in 2029 when we celebrate the 100th anniversary of the foundation of Scuderia Ferrari. The M-TECH Alfredo Ferrari will pave the way for future innovation in the interest of the entire Moto Valley. It will welcome people from all corners of the world here in Maranello. This is very much at the core of what we believe in. Our founder entrusted us to keep alive the will to progress that inspires the M-TECH Alfredo Ferrari and finds its boldest expression in the Ferrari Elettrica. With the new Ferrari Elettrica, we once again affirm our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing. As you were able to see yesterday, its architecture is revolutionary, 4 independent electric engines delivering full active corners and agility that are consistent with Ferrari's DNA, a unique experience behind the wheel, born of our unmatched vehicle integration know-how, will create new driving thrills. The technology and innovation workshop of yesterday gave you a glimpse of what is inside, and you will be surprised as the unveil continues. In 2018, I told you that what was behind Ferrari was fundamental that our founder story was the decisive factor in everything we do. That is still true today. In 2022, I told you that passion is the thread that connects us with the world, uniting colleagues and tifosi as one family. That is still true today. And today, I tell you this, commitment is the force that carries Ferrari forward. Commitment to our people, commitment to Italy and commitment to being unique. And I want to be clear, this is personal. I am committed as Chairman, as the largest shareholder and above all, as someone who has lived Ferrari as a passion my entire life. I am committed to ensuring that every decision we take strengthens Ferrari's uniqueness. I am committed to our people whose talent and dedication are the greatest guarantee of our future. I am committed to our beloved ferraristi, who entrust us with their dreams. And I am committed to our loyal tifosi who are eager to see us winning in Formula 1 as we are winning in Endurance. And it's with pride that we brought the trophy after 3 consecutive wins in Le Mans this year. And I hope you had time to see the trophies before coming in. And if you haven't, please do so walking out. And I am committed to you, our partners and our Ferrari community, who share with us the belief that Ferrari is not just a company, but a living, irrepressible force. Ferrari has never chosen the easy path. We chose the meaningful path. We will keep investing, innovating and building. We will keep attracting and training extraordinary people, and we will keep proving year after year that Ferrari is unique. We carry this forward together, all of us working for Ferrari. It is a responsibility we embrace with pride. And with that pride, we continue writing our uniquely Ferrari story. Reminded by the Medici family motto Festina lente, which means make haste slowly. We know that everything that grows must do so steadily to last. I now invite Benedetto to begin the presentation and want to take the opportunity to thank him and all our Ferrari colleagues on behalf of our Vice Chairman, Piero Ferrari, who is here with us and all our Board members who are here for what they have done and what they will continue to do. [Foreign Language]. Thank you.

Good morning, everyone. [Foreign Language] to people that were not with us yesterday and to all the people that have had the opportunity to enjoy a nice dinner in a place that was not displaced by a storm like it happened a few years ago. So the main reason why we did this e-building was to make sure that when you were coming here, you could have a safe place. Having said that, it's really a pleasure to have all of you here because if there is a way to define this place, I would say this is a place where great determination, curiosity, passion with an Italian sense of elegance and craft of manufacturing help us to make something unique. It is helping us to follow the purpose of our company, audaciously redefine the limits of possible. I would like to start from 2 sentences that I shared with you. You may not remember, but I remember well because what we say and we commit to you for us, it's something that we keep repeating every day. The last Capital Market Day at the end of the meeting, I said the plan is ambitious, it's challenging, but we commit to do that. And we did it. We did it. Yesterday, when I concluded the introduction of the presentation of Ferrari Elettrica, I told you this is a place where we do what we say, either infrastructure, e-building, or on product, and I add today on financial, but this is Antonio that will show you what we did. So these are 2 sentences that if you want, is a kind of summary of what we did in these years. And we do this keeping in mind 3 important things: Consistency, agility and respect. Consistency is important. It's important extremely in a world where things keep changing, where uncertainty level keeps very, let's say, changing day by day. But the consistency with the values, the DNA of our company is key, together with what, the agility. Because one thing is clear, 3 years ago, when we met, we had nobody -- I'm sure nobody else was envisioning what is the reality today. And I think the company has been able to manage, thanks to agility. Always keeping clear the value of respect and attention for all the people around us because Ferrari is not only the people coming in this place, another Ferrari site, Ferrari is all the community around us. It's 4 years I'm in this company. Time goes too fast. And I think with the team and 6,000 people that every day cross the threshold of the main gate, we have been working to reach, to make possible what we are going to show you today. And I have to say that without the tireless effort of all the colleagues, without their straight feedback, without open dialogue, what we did wouldn't have been possible. And this is something that is very important for this foundation. Cultural foundation is very important for our company because it helps us do things: One, focus; two, to keep the wheel on the ground. So let's start to see what is this company, how this company is -- what is the essence of this company, the source of this company. John has said clearly that we have 3 souls. We have the racing, we have the sports car and we have the lifestyle. It's the interplay, the coexistence, the overlapping of these 3 souls that define uniquely our essence. And our essence is unique because we have a dual nature. We are inclusive and exclusive. We are inclusive because we talk to many people. We nurture the dream of a lot of people. The tifosi, the brand lovers, but we are also exclusive because we fulfill the dream of a few. And I think that being inclusive and exclusive, especially in the world of today, makes us more and more unique. But uniqueness does not only means to be inclusive and exclusive. It means also that we, as a company, we have 3 dimensions that make us unique. We have the racing, the heritage. We have the technology and we have the racing. When we talk about heritage, imagine 1947, the second world war was just ended. The asphalt was still missing. A person said, "I want to do a 12-cylinder engine." And he did it. Many people were telling you will not make it. He was a visionary. He believed with grit, determination, passion, optimism. He made something that today is still on the road, the 12 cylinder. It's this sense of -- this will to progress, this grit, this determination that is with us. That is what we call today heritage in the past was innovation. And the heritage and innovation go hand in hand. And this brings to the technology dimension because technology is fundamental in our company to continue to do innovation because in our company, we don't like technology push. We don't like market pull. We anticipate the market, the client needs, the ferraristi needs. We want to delight them. We like to say that time to market is important. In our company, we follow emotion-driven innovation. You will see this later in the presentation of Ernesto. And then there is also another important point. I have been spending more than 25 years in technology space, in high tech. And I can assure you that the level of innovation, the way -- the deep passion, the way the people read the technology here is really unique. And then there is a third dimension. Well, this company started with racing. Racing, what does it mean? To compete every day to show that you can improve every day. You can learn every day. You can try, learn and adapt quickly. It was in this way Scuderia was born in 1929. It is the first car that left the main gate, the 125S that was a sport car. These are the 3 dimensions that make our company unique. Today, I will share the presentation. We'll show you where we are heading to. We show you also what we did. And I will share the presentation with other colleague. So I will have the pleasure to have Enrico and Ernesto that will explain more in detail the sport car world. In this sports car world, what we are unique, unique proposition for unique clients. Ernesto will drive you to the innovation that we are doing that go beyond the surface that you can see on public news or on the web. There is much more this. So wait for his presentation. And then is Carla. Carla will show you what we are doing in the lifestyle world, very important for us with remarkable progresses and Carla will show you. And then there is Antonio who will convert, will translate everything in numbers. And I will close with the decarbonization. So I'm sorry if someone of you will be upset because I was outside and some people were telling me, I hope you don't spend time to talk about ESG. I think this is not a matter of spending time. We are a company. We are a leader. We don't have to do only great product. We don't have to deliver only unique experience. We have also to take care of all the ecosystem around us. And you will see that what we are doing there is also on track. So let's start. One chart, what we did. One, I would say 1 year in advance. We've been able, thanks to client, thanks to what we did in the company, thanks to also what all the people around us, the supplier, the dealer, the sponsor; we have been able to achieve our goal 1 year in advance. You will see the detail in the presentation of Antonio. Two, 14. What is 14? It's the number of car model we've been unveiling in these 3 years. John told you that the number of models we announced that we unveiled in the last 10 years was 41, 14 has been done in the last 3 years, in line with our commitment of 15. E-building, this place is a demonstration that this company does what it commits to do. Three years ago, this was not existing. The team led by David and other colleagues did it in 2 years, 6 months ahead of time because we believe that agility today is very important, and this building gives us the agility that we need on the manufacturing side to follow our product strategy. And then last but not least, we committed last time to win in racing. We did it with the 499P in Endurance, and to win Formula 1, we have to improve. Also there, we have to win because we owe it to our loyal tifosi all over the world. So we have 3 souls, which are the ambition for each one of this. In the field of racing, we want to win. It's important this dimension because being unique, as I told you, we have to be inclusive and exclusive, the racing world helps to nurture, to feed the inclusiveness dimension. Then we have the second part that is sports car and lifestyle, where in sports car and in lifestyle, we want to continue to grow. We want to continue to grow, having in mind that we need to be unique. And to be unique, we have to master scarcity in everything we do because it's only the blend of scarcity, the proper management of scarcity and of all this dimension that makes us more and more unique. In the sports car, in particular, we want to continue to be exclusive. Our business, you will see later, is not a story of volume, also because we want to fulfill the dream of you. And also there, you will see in the presentation of Enrico, you will see all what we are doing to nurture the community. What we are doing for our ferraristi, the people that own our beautiful cars. In the field of lifestyle, the ambition is very simple. We want to enrich the client experience and to enlarge the audience. We want to entice more men, more women to be part of our family. These are the ambition, and I would like to drive you through each one of this ambition. So in the racing, we want to continue to redefine the limit of possible. That's where we are born. Racing for us means we have to do constantly daily review what we think and challenge ourselves because that's the only way you can really do something unique. We did it in '29. Enzo Ferrari did it in 1929, nobody of us was there. And he started with Endurance with Formula 1, 1949, 1950. I think this is important because what we develop over there is migrating, is going to the sports car. You will see later that our electrification journey is not something that pop up from nothing. It's something that started in 2009. When I got here, I was surprised at how much the company was advanced in electrification journey. And since we don't want to stop to what our founder started means racing, competing on the road and on the track. It was 2 years ago, '22, end of '22, when we decided to also compete on a new field on the ocean. So we started this Hypersail project. Some of you have been attending yesterday the presentation of Matteo and Marco. Basically, we show you what we want to do over there. And we want to do this because we believe in the value performance, innovation, sustainability, and we want to compete enough shore races, enough in oceanic regattas. You will hear something interesting from Ernesto because when you look at the reality with different eyes, when you have the cross-pollination of different world, well, innovation can really pop up. And this is something that we have already a practical demonstration in that respect. Open innovation can come only when you see the reality with different eyes. In the sports car, we have been a strong believer since the last time we met of the importance of technology neutrality. We told you clearly that our product strategy was different Ferrari for different clients, different Ferrari for different moments. We are working. We are selling our car in more than 60 countries. On one side, we have to comply with all the regulatory, okay, in all the countries. On the other side, we want to make sure that we harness any available technology that is now present to make sure that we deliver unique emotion to our client. So basically, we wanted to make sure that either on the culture of the company or in the infrastructure, we have the agility that is needed to have that fast response, okay, to what the clients are asking for. So at that time, the e-building was not existing. I'm sure you noticed yesterday evening, during dinner, that the cars around us were ICE or hybrid. You could not see Elettrica because it's very secret in some place, but you see different kind of car, and there were not 2 equal cars one after another. Because I think agility is important. And this e-building gives us the opportunity to have a lot of new technology to become more agile, to become more compliant with the environment and to master well our technology neutrality road map. In '22, we told you, by 2030, we expect 20% of our offer to be ICE, 40% hybrid, 40% electric. Well, it's today, October '25, where we say that the 3 numbers changed. The 20% ICE became 40%. That's what we see for 2030. And the 40% of electric becomes 20%. On one side, we realized, thanks to the strong need of personalization of the car, that for us, for our company, for our client, it's important to pursue a horizontal diversification, product diversification strategy. It's better to have more model with limited volume than a few model with higher volume. That's our strategy. So it means that in this period, we understood that it's important to increase more the number of ICE and to limit a little bit the number of electric. This is '25. We are an agile company. We'll see in a few years how the world is changing. It's important for us, the client at the center of what we do, and we have to follow what on one side, we believe, on the other side, what the client are thinking. I can tell you that during these years, we talked with several clients, and it's clear there are some of our clients that will not take Elettrica, other clients that will take the Elettrica and there are clients that are telling us, I will become a ferrarista if and only if you have an Elettrica. This is a chart talking about the evolution of the powertrain, but it's not only about this. It's also about other dimension that people today tend to disregard because everyone is just talking about electrification and software. Where in the car, there are many other things. There are the materials. There is aerodynamic that are giving emotion. So you will see in the presentation also more information, presentation of Ernesto -- more information about what we are doing on the traditional innovation direction of car. So one side, the product; the other side, infrastructure. I told you last time that we were doing 2 big investments, one is the building completed. The second one was the paint shop. This is a picture we took recently. You see something over there that we announced, the paint shop is the one that you see on top of this chart. The paint shop is something -- is a bigger building than this. Maybe the next Capital Market Day will be over there, we'll see. But in that paint shop, we will have the opportunity to do in-house a lot of personalization on the painting. Because among the personalization, the painting is one of the most important. And it's easy to understand because one of the way you interact with the car is through the eyes. Then there is something else. That is if you want the demonstration of the agility of the company, there is something on the left part of this chart. What is it? It's another track. We call it E-Vortex. We announced it this Monday, October 6. The decision was taken in April with Antonio and all the community. And what is that track? It's a 2-kilometer long track that will allow us to enhance, to test all the production cars in a controlled environment, so we can enhance more and more quality because when you talk about a unique car, quality is mandatory. So this is a demonstration, if you want a formal demonstration, what does it mean for us to be unique, 4 [indiscernible]. I got a phone call yesterday from the CEO and donor of a company, close to the track, he said, "I cannot believe you are even planting the trees already." I said that's Ferrari. We are agile. And then we are -- the last chart about the lifestyle. The lifestyle, we told you why we do lifestyle? Well, we want to enrich the client experience. We want to widen the audience, also because not all the people that love our brand are in a race track or in a sports car. You can also -- you want to be close to Ferrari also when you are not there. We want to entice more men, more women, the new generation. We want to continue to be relevant. And we want to do it in 3 specific fields, personal luxury good, collectible and experience. We did what we said. We did a lot of progresses. And today, we decided to give more space to this activity, and Carla will guide us through this. And before to leave the stage to Enrico for unique proposition, product and experience, well, there is one point. The audience is the most important part because this company is made by people. A lot of companies may claim that the people is the most important thing. But I can tell you that this company is really made by people, the people that are coming in this place in Maranello or in other facilities of Ferrari, but also all the people around us. I'm talking about the client, 180,000, 0.2% of the ultra high net worth individuals in the world. I'm talking about the tifosi, 400 million. I'm talking about all the people that shares this sense of attachment, belonging, love for our brand. And this is also a way to say without them, what we did would not have been possible. Without them, what we did would not have been possible. And this is why I'd like to say thanks to all the colleagues that are with us now and that were with us before because this company now is the result of what has been done so far. Thanks to our clients, thanks to the trust of our clients. Thanks to the supplier, the dealer, the sponsor, thanks to you for your trust in us in what we do and also thanks to the local community, to Maranello community that -- to whom we owe a lot. And on this note, I would like to leave the stage to Enrico that will guide us through the unique proposition of what we do for our unique client with unique product, unique experience. [Foreign Language] Enrico?

[Foreign Language] and welcome also from my side. Benedetto in his speech has been using the word consistency. And I'm happy to underline in my presentation how consistency has been driving our commercial activities, confirming and developing many of the commitment that we took during our last Capital Market Day back in 2022. My objective is to take you through the main projects and opportunities from the commercial side. And the best way is to start from this sentence, which will represent the core of the commercial activities. Our community is united by a shared passion, the Prancing Horse, an unforgettable experience. Now you will hear me repeat several times the word unique. And uniqueness is one of the main elements that connects the dots of all the commercial activities. In fact, we always like to underline the fact that we have a unique proposition, well represented by the concept of Ferrari Forever. I will come back on this subject, which is very important. We have unique clients and a unique way to manage our clients through unforgettable experiences. Now let's start from the first uniqueness, which is well represented by the concept of Ferrari Forever. You will hear me repeating this concept, Ferrari Forever. We'll deep dive on 4 main areas: Our product range, our design approach, our engineering and manufacturing approach and last but not least, our people. This slide is probably showing one of the most important elements of uniqueness of the Ferrari business model because we are probably one of the few companies in the world that is still having in the market most of its production. Since the start of our activities back in 1947, we have been introducing 330,000 cars in the market. And we know that much more than 90% are still alive in the market and require our constant attention. Another element of uniqueness is connected to our design approach. Every single new model is a piece of art and remains very unique and contemporary, never getting old from a design standpoint. This is a choice the company made since the very beginning to make sure that every single model, every single car that is introduced in the market has a specific soul and remain modern always, today and tomorrow. Images that you see on the screen represent some of the most iconic models that clearly show how much we were able to blend tradition and innovation to keep every single model alive until today. The same approach has been applied on the technology and manufacturing side. Since ever and even now and in the future, we have been very careful to identify what are the core components of the car that we need to develop and produce internally. This is extremely important because it gives us the possibility to develop a competitive advantage, but at the same time, to be able to grant the availability of the main components in the future. This is becoming extremely important, even more than in the past because we are entering a new era of technology. And as already mentioned in the previous Capital Market Day, we work to identify the new components that we consider relevant for our future. Electric engine, e-axle and high-voltage batteries are some of the key components we decided to develop and manufacture internally in order to make sure to create a strategic advantage for our product, but most of all, to ensure our clients that every single component will be available in the future. Every single component will be available in the future. This is extremely important to reassure our clients. Despite the introduction of a new technology, we'll be able to grant them the pleasure to drive their Ferrari also in the years to come without any concern, knowing that every single component inside their car will be replaced by a new one manufactured by us. To underline this commitment, in addition to the normal warranty, we have developed a strong set of additional warranty programs, the extended hybrid warranty, the power warranty that basically are ensuring the availability of every single component in the future, giving our clients the possibility to achieve what we call peace of mind when you purchase, own and drive a Ferrari. Last but not least, it is important to talk about people and how we make sure this uniqueness is well managed and maintained in the future. To nurture our Ferrari culture and people quality, we put in place a strict process of assessment in the recruitment. We are probably one of the few players that make sure that every single person working with us directly or through our network are directly assessed in terms of competence and capabilities to ensure the right messages and service for our clients. Then a strong training commitment is requested. We have been mentioning that since the very beginning, our founder was considering training a key factor. Our Chairman mentioned it. Now we made sure that this is going to be deployed also to our employees. And we created a long list of courses in aftersales, sales, marketing, communication that are developed and delivered through an internal academy that continuously developed tailored courses for our people. About 50 tailored courses are offered on different topics, which translate in an average of 9,000 people trained in classroom and 40,000 online courses delivered, quite impressive for a small company like Ferrari. Finally, we make sure that we have strict rules to assess the performance of our team through activities that allow us to measure how much we are achieving our overall objective to be unique. Yes, training, but checking point. Now let's move to the second chapter, and let's talk about our clients. You know how important our clients. And again, here, we have some specificity. The uniqueness is the keyword as every single person when buying a Ferrari, we believe it becomes member of the Ferrari family, which trigger the need of a personalized and tailored offer. Client segmentation and specificity, product strategy, product offer, emotion delivered and personalization offer are all key components of this strategy. In the last year, we have been able to further expand the family of ferraristi. You always ask us what happened in terms of recruiting new Ferrari clients. Today, we have around 90,000 active clients, which means clients that bought a car in the last 5 years, meaning plus 20% versus 2022, which is a relevant number. And new-to-the-brand clients acquired since 2022 were over 32,000. But we are not just expanding the family, which is very important. We are also expanding the garage of our collectors. The number of cars in the garage in only a few years increased by more or less 20%. And out of our top collectors, 45% are new, which means that we have been able to rejuvenate and bring on board new people that like to collect our car. All these new clients allowed us to enlarge the Ferrari family, but also gave us the possibility to maintain the average age of our clients stable. The uniqueness of the Ferrari business model is even more evident when we look at the age distribution of our clients. This is what this chart is showing, which is extremely important in our commercial strategy. Why? Because we are not targeting only a specific client target in terms of age. Each client is unique, and we like to talk to clients across all generations. On one extreme, the ferraristi of the future, the future Ferrari collectors. And on the other extreme, people with time and resources to enjoy the pleasure to drive a Ferrari and join the Ferrari family. All this has been achieved, thanks to the success of our product strategy. Here again, I'd like to mention the word consistency and also Benedetto mentioned this before. Our product strategy hasn't changed in the last years. You may remember, we used a similar chart back in 2022, which represents our aim to create different Ferrari for different ferraristi and different Ferrari for different moment. What does it mean? It's simple. It means that on one side, we develop products that are targeting new-to-Ferrari potential clients. Different Ferrari for different ferraristi. On the other hand, once they get on board and once they own and drive a Ferrari, there is no reason why they shouldn't own more than one in order to have the possibility to use the car that is perfectly fitting with the specific need of the specific moment, have become collectors. This approach is creating a product range, allowing us to attract a different client profile. That's very important if we want to be successful. And the chart is clearly presenting this concept. On the left side, there is what we call the sports car driver. Every single Ferrari is a true sports car, but the offer on the left is targeting clients looking for performance, Ferrari, but also comfort on board, Amalfi. On the extreme right, we have the so-called pilot models, which means that our aimed for clients that are not compromising on performance and that are looking for the most extreme technology. Well, we just launched the Testarossa. Now we are happy to say that very soon, we will also have a new model enriching our product offering, the new Ferrari Elettrica. We believe that an electric vehicle will be the ideal addition for the specification we have in mind in terms of driving sales, experience on board and usability. And it will allow us to attract and satisfy a different client profile. Benedetto was clear in saying that. We have people willing to enter the Ferrari family, thanks to the electrification journey. But you will know more in the future. And after the presentation of yesterday, also Ernesto will deep dive in this incredible technology we developed for the new Elettrica Ferrari. The end result of this incredible journey is that our team has created probably the most incredible and complete product lineup ever of the company. Look at this. All these models and the constant add-on to our portfolio are allowing us to attract and satisfy new and different client segments while maintaining the exclusivity per model. All these new products are designed with a clear objective in mind, which is to create unique emotion for our clients. This chart is very important because it shows you how we develop a new model. Because when we start developing a new model, we always start looking at the 5 technology foundation. Powertrain, aerodynamic, vehicle dynamics, architecture and human interface. Later on, you will hear more about that. All these elements allow us to define the main characteristics of the car that are then design, performance and driving thrills, which represent the 3 pillars of our competitive advantage. But our job when developing a new car is not finished yet as we need to find the perfect combination, delivering what we call the Ferrari emotion. You keep talking about Ferrari emotion. Now the Ferrari emotions are something that our engineers are able to measure with clear KPIs. When we sit and we discuss, they come with clear demonstration of the level of driving thrills delivered by a car. But I prefer to say that the Ferrari emotions are something that we can simply measure looking at the smile of our clients when they sit and drive one of our models. It's very simple. You see the pleasure in their face. The uniqueness comes also through the opportunities we offer our clients to personalize their car. It's a very important piece of our commercial strategy. We like to say that there is no one single client car equal to another in the market, 100% are different. Every single model delivered goes through a structured and complete program of personalization that goes up to the tailor-made or even to the one-off in order to make sure that every single car entering the market is designed by the client who creates a unique piece of collectible for its garage. Now let's come to the third chapter, which are the experiences. And this, again, is a very important piece of our commercial strategy. Because when you own a Ferrari, it's very important to make sure you have the opportunity to enjoy it and enjoy the fact that you are part of a community, the community of ferraristi, which means to be part of a passionate group of people and even more important, to have the possibility to enjoy your car with people with your passion. That's why when we talk about experiences, we have been very focused in creating a long list of opportunities that goes from activities on track to satisfy clients that want to have the thrill of driving and reaching the peak of performance in a safe environment like the track. Brand activities, which are opportunities for our clients to stay together to share the passion, either through a lifestyle presentation or through a race or through a presentation of a new product. And then, of course, all the activities in order to give them the possibility to drive their car on road and to share the passion with other ferraristi. Now it's difficult to explain all this. Maybe the best way is to show together a short video. [Presentation]

Well, I have to say we are privileged to have the possibility to work on this incredible event and most of all, to have the possibility to share this incredible moment with our client. Now making another step in the experience side. Any family requires a home. And that's why we have been very careful in working together with our partners on our network coverage. And here, we took a few but very important actions. Number one, we don't want to be everywhere. We want to make sure that if you decide to enter the Ferrari family, you can have the best possible experience. And that's why we have been very selective in identifying where to open a sales showroom. Indeed, in the past 4 years, we opened only 13 showrooms despite our growth. On the other side, when you own a Ferrari, you want to have the best possible service. You don't want to drive 3 hours to get to the closest service. So we have been working with our partner to increase the service coverage and proximity. Every single activity which is happening in our network is highly personalized And, coming back to the point of Benedetto, something we have been putting a lot of attention to also following the desire of our clients that are still asking for, is to work on the decarbonization of our network. It's still true. We established a green dealer award that is awarding the dealer that has been achieving the best results in terms of decarbonization journey, which is still something we are working a lot. A critical point then is to offer an outstanding welcome when you enter a Ferrari facility. We don't want our clients to enter a normal sales showroom. So here, we have been working extensively on a new corporate identity, whose first execution was already presented in [indiscernible]. As you can see from the picture, the main objective was to put the client at the center, which means that our showroom is not only a place where you go and purchase a car, of course, it's also a place for that. But it's mainly a place where you can feel at home, sharing the passion together with other ferraristi, getting the possibility to reach exclusive destination and where the digital experience enriches the physical one, doesn't substitute. The physical touch and the physical presence remain extremely important for us. To tell you more about, again, let's see another video. [Presentation]

A new home for uniqueness, needless to say that the first reaction from our clients has been extremely positive. We already talked about personalization, but we also plan to leverage on the constantly growing request of our clients so that our focus will go also in creating places directly managed by Ferrari that allow our clients to live the experience of designing the car of their desire. That's why together with Maranello, New York and Shanghai, which will be completely renovated, we are already working to expand our tailor-made centers to get closer to our clients, working on the opening of Tokyo and Los Angeles in order to better serve the clients living far away from the already existing one. So far, I tried to summarize some of the key activities of focus for us. But what's next in terms of product launches? Well, as you see from the chart, in the next business plan, we will have the confirmation of the speed of innovation that we've been following so far with around 4 launches per year to capture the opportunity to target new segments and/or new clients' need. We believe, as Benedetto said, in a horizontal product diversification strategy, and this is going to be also in the future, our direction. As you heard already us repeating several times, among our future lineup, a special place is taken by our new Ferrari Elettrica, which is going to be the main add-on to our product range, allowing us again, I repeat it, to reach and target new clients particularly interested in this technology. Yesterday, we presented the main technical elements of this new model. Here, you can read the product manifesto. I would just highlight a few words, which are underlining the core elements of the new Ferrari. Reframe, reimagine, reinvent. The Ferrari Elettrica is a completely new breed. Thank you very much for your attention. And now I leave the floor to Ernesto.

Thank you, Enrico, and good morning to everyone. Let me start with a sentence that I believe perfectly capture our approach in Ferrari. As part of the research and development team, it is our duty to dream about the future, to envision new technologies that could enhance performance and drive increase of our car. At the same time, we must remember to keep all 4 wheels on the ground, ensuring that what we see and imagine for the future become our present through a continuous and scientific learning process. As Enrico already said, we start from our diversified client base and their needs. All our models are designed, engineered to satisfy different client needs in a unique way. For this reason, we believe that agility and technology neutrality are 2 fundamental factors. We offer and we will continue to offer our client car with different powertrain and unique positioning with the addition of the Ferrari Elettrica. Here in this slide, you can see where we are positioning the Ferrari Elettrica, which is the result of a deep research about a new sports car concept. The Ferrari Elettrica enlarged our range model in terms of driving thrills, experience on board and usability to create a unique driving experience. Then 3 different powertrains; ICE, hybrid and eletric, each one able to provide unique emotion to our clients. And how do we achieve this? As you can see on this slide, focusing on 3 different pillars. The agility and the technology neutrality give us the opportunity to mix different feature as we like and in such a different way to deliver specific inventories and unique cars. 3 of the most crucial features are powertrain, body style and body frame. Regarding the powertrain, clients will find thermal, hybrid and electric in our offering. On the thermal side, we continue to develop our V6, V8 and V12 engines with the goal to continuously improve their performance and efficiency and at the same time, being compliant with the new worldwide regulations. On the electric side, we have a clear electrification road map for the engine, for the inverter and the battery. And from the merge of the best thermal and electric technologies, we have our future generation of hybrids. The key components of thermal, electric and hybrid powertrain are handcrafted in-house. Moving now to the second feature, the body style. We started from the Coupe and the Spider and we expanded our offering. We introduced Purosangue to provide our client more room and some comfort on board, and we plan to keep these 3 body styles in our product portfolio also in our future. Last but not least, the body frame, where research of new materials such as aluminum and carbon fiber is instrumental to increase the performance and reduce the weight. Okay. After our unique product development strategy, I will address the 2 most important pillars. As a first step, I will show you why the racing activity are so important to us as what kind of technologies we can derive from them. I will then move to how we innovate. And in conclusion, I will tell you what we plan for the future. So let's start from the technology transfer from the racing activities. Racing is part of our DNA. As you can see, for racing means Formula 1, World Endurance Championship and Hypersail, our new sailing adventure. Formula 1 and WEC are our advanced laboratories, from which we can derive new technical solution and innovative material. And we go a step further because we transfer this technology on sports car, maintaining the extreme racing performance. From Formula 1, we derive solution to develop the best thermal engine as V6, the electric engine and the high-voltage battery used in the F80 and the main components of the power electronics. From Endurance, we derive technology such as the aerodynamics of the F80, the braking system and the carbon fiber chassis, which is the lightest in the world. To these 2 worlds, we have recently added the Hypersail, our new adventure in racing over the seas. Here, the know-how goes both ways as it is not restricted by racing regulation. This gives us the opportunity to read the technical solution in a different way, leveraging on the creativity of our engineers. And soon -- very, very soon, you will see in our sport car innovation coming from Hypersail. The internal combustion engine has always been part of our DNA. We will continue to offer thermal engines in our product portfolio and bring innovation on V6, V8, V12 engines by keeping on increasing the specific power. And as I said, racing plays a crucial role in our innovation activities. We will also invest to make our thermal engines compliant with future regulation. In addition to that, we will make sure our engine perform with alternative fuel such as e-fuel, being ready if or when this technology should spread on global scale. Let's move to electrification and tell you in detail the progress made so far and the key feature of our technology. Our electrification path started in 2009 in Formula 1, while our first hybrid sports car was LaFerrari launched in 2013. At the beginning, we codesigned with our industrial partner, the electric engine, the electric components and the battery with the goal to study the technology and to acquire know-how as much as possible. The F80 represents an important milestone, a key milestone for us. The electric engine, the power electronic and high voltage battery are designed, engineered and crafted for the first time internally in Ferrari here in the building where we are today. As we do for the ICE, also for the electric technology, we remain consistent with the strategy of designing, developing and crafting our core and strategic components internally. Cell are the only component not crafted internally. However, even if we purchase them externally, we have developed a deep expertise to select the best technology available. For this reason, in April 2024, we created a research center in collaboration with the Bologna University and NXP with the aim of gaining more expertise on the cell technology. But let me be clear on this point, very, very clear. We do not plan to start manufacturing cells ourselves. However, we believe it is important to get enough know-how to talk the same language as our industrial partner to develop together the best technology possible. Let me now better explain our distinctive technology of the Ferrari Elettrica. I will focus on 5 elements: The chassis, the e-axle, the inverter, the high voltage battery and the active suspension. First, the chassis. The battery system is fully integrated into the chassis. Two, reduce the weight and moment of inertia, keep the battery as low as possible while adding structural rigidity. Second, the electric axle, which are composed of the electric engine plus the mechanical transmission. Those are designed to maximize power density and efficiency. The design of the electric engine was inspired by MotoSport to maximize torque and reduce weight. We then industrialize it without compromising on performance. Third, the inverter are designed in-house and integrated into the e-axle with the goal to be compact and light. We use the most advanced semiconductor technology existing today on the market, such as the silicon carbide for better performance. Fourth, the high-voltage battery pack that was designed to have the best energy density and the minimum weight. The integrated cooling system keeps the cell temperature uniform and ensure consistent performance. It is also designed with clients in mind, so it can be updated and replaced to ensure, as Enrico already said, that Ferrari will be forever. And lastly, the third generation of active suspension, which controls the vertical force on each wheel in a real time, improving ride, comfort, stability and cornering performance. The next chapter is about innovation. Innovation is key to redefine the limit of possible, always keeping in mind our client needs. Today, to conceive and to develop a sports car, a multidisciplinary know-how is needed. For this reason, innovation is focusing not only on mechanical, but also on software, electronics, chemistry and much, much more. Due to that, over the past few years, we have reinforced our open innovation approach, both through internal activities and external cooperation. As a result of this, internally, we have filed 5 more patents. While externally, we have doubled the number of active projects with university and expanded the collaboration with suppliers, start-ups and research centers working more and more on global scale. Let's dive into how we created added value for our clients with controlled investments in 2 words, in 2 simple words, technology epiphany. We don't always have to start from scratch to develop new technologies. We could use available technology, also not related to car in a different way, looking for further application beyond the first natural use. In fact, it is possible to bring technology born from not automatic application into a car, as I explained before, with Hypersail. Another possible way is to work on the software to make the hardware operate differently compared to the reason why it was initially designed. An example, let's have a look at the Ferrari active suspension we discussed back in 2022. We used the active suspension technology on the Purosangue with the aim to make the vehicle agile in every conditioning, lowering the center of gravity and improving the driving thrills. Later, the same technology was used in our supercar, the F80, and by modifying the software, we made the second generation of active suspension part of the aerodynamic. Instead of lowering the center of gravity, the suspension system moderated distance from the ground and improves the downforce when needed. And what about the next application? Well, as I said before, we have already created the third generation of active suspension technology used in the Ferrari Elettrica. In the car, there are 4 types of software, but for us, not all of them are equally strategic. The 3 software at the bottom of the slide are not a focus for us. We could either decide not to develop the future as in the case of autonomous driving or we could codevelop them with our industrial partner as in the case of infotainment software. This approach will allow us to focus our investment. For the vehicle dynamic software, which plays a crucial role in the driving thrills. We will continue to develop it internally as it brings added value to clients. We leverage here over 75 years of expertise, and it is really a unique asset of Ferrari. We combine the deep technical know-how of our engineers with the experience of our test driver. But what are the innovation in vehicle dynamics we are bringing with the Ferrari Elettrica? First of all, we have developed a new electronic vehicle dynamics control called the Full Active Corner where every wheel is independent, is driven, steers and has an active suspension. With all these systems integrated and connected in real-time, the result is a unique car, agile on turn, stable exiting on the corner and giving an unbelievable sensation of guidance and precision. We are introducing 2 Manettinos on the steering wheel to create a [indiscernible] driving experience for our clients. An e-Manettino offers 3 electric driving modes; range, tour and performance, which sets the maximum power available. Another Manettino controls the vehicle dynamics. The result is you can choose from driving silent and comfortable Ferrari or an extreme one. The sound of Ferrari Elettrica is real, it's very, very real. It is pick up from the mechanical and eletromechanical components of the powertrain by a precision sensor. This authentic signal is transmitted for 2 different reasons. When it is functional to provide feedback to the driver or to increase the sense of dynamic performance. The Ferrari Elettrica, we have also pedals that will not change gears, but will control the level of torque and power, which gives a thrilling sensation of progressive acceleration and the familiar feeling of engine braking with the down sheet function. I tried it several times and trust me, is real, real unbelievable. We are also working on the next generation of human interface, as Enrico said before, together with our industrial partners. And when it comes to innovation, the goal is to provide our clients the best experience on board. For this reason, we are adopting a digital approach for the user interface. This blend of digital and physical will combine functionality and beauty. In the past, we have introduced touch sensor on our steering wheel. However, based on the feedback of our clients, we understood that this technology did not provide them a real added value, and then we decided to come back to physical one. All our new cars in production have a physical button steering wheel, an option we also make available to clients of past models. We have already said that we do not plan to develop the human interface software in-house. So this will mainly be provided externally, but we are defining feature and architecture internally. A simple, modern and intuitive human interface requires a powerful hardware, and we make sure to source the latest and most performing technology available in the market. Before I tell you what we plan for our future, I want to talk about decarbonization project we have been working on. Reducing CO2 emission is a priority for Ferrari. And when it comes to scope 3, one of our most relevant project is to use recycled aluminum for certain parts of the engine and chassis. The first Ferrari sports car with chassis fully in aluminum was in 1999, the 360 Modena. Since then, we upgraded to alloy, and today, we are making another step forward by using it more and more recycled. This will allow us to reduce the CO2 emission of at least 75% compared by using virgin aluminum, and it will contribute to reduce by around 6% the overall scope 3 emission in 2030 compared to 2024. So what about the future? When it comes to the future, we are working on the next generation of sports car on 5 fronts. On thermal propulsion, with F80, we reached a new peak of specific power, but this is not the end. We want to improve more and more using recent technology, new material and innovative engine architecture. On electrification, our ambition is to constantly improve all performance related to electric powertrain, leveraging on Formula 1, exploring new architecture, looking for new technology. On vehicle dynamics, the introduction of [indiscernible] technology in combination with digital twin will allow us to conceive innovative function. On the experience on board, our focus is on digital approach and the beauty of the interior to make the human interface even more intuitive for our clients. Lastly on materials, which are important for 3 different reasons: Sustainability, weight and performance. For example, cooling that will benefit a lot from metamaterials. Looking beyond the plan of the next decade, there are some disruptive and very exciting project. I give you just a couple of examples. The use of superconductors such as in the electric engine. And on the aerodynamic side, we anticipate an evolution from 3D to 4D with [indiscernible] that can transform themselves in real-time to optimize the aerodynamic performance under different conditions. It is an innovation stream starting in 1961 when Ferrari was the first to use a tail spoiler in a racing car. All this function will be developed and used to maximize the Ferrari emotion. Thank you very much for the attention. I will now leave the stage to Carla, who will show you how we have innovated the Ferrari product under a different light.

Good morning, everyone. It's a real pleasure to meet you all. So we are now going to talk about lifestyle. And specifically, we're going to see what are the choices we've made, what is the ambition for the future and most importantly, the journey, the evolution of the journey. The choice of the lifestyle is not casual. As you can see on the back of my screen, this is actually encapsulated what the brand is all about. And in fact, this is what the Ferrari universe, it's all about. From the very beginning, in fact, it was absolutely necessary to start from the brand, powerful, unique with its unique duality. On one side, as Benedetto was saying, inspiring the dream of many with its racing DNA, that is fulfilling the passion of many tifosi. And on the other side, fueling the dream of very few with its sports car business. Sports car at the end of the day give us unmatched driving thrill combined with a unique design, and these make our sports car an undisputable object of desire, a desire that provoke emotion, evoke emotion, the emotion that Enrico was talking before, an emotion that are intrinsically linked to the values of the brand. And in fact, at Ferrari, we sell so much more than cars. We sell a way of life. Arguably, no other brands have built such a strong legacy and the personality or icons, the few one we pick, you see on my back, are genuine ambassador of the brand, making -- they made and they continue to make Ferrari a brand that is about culture. This has always translated into a widespread desire of ferrariness, which we only marginally fuel over the years, offering something which was more suited for our tifosi. And this is where lifestyle role comes into play. So let's start. We honed over the past few years into our lifestyle mission, and we've actually been very deliberate in what we wanted to accomplish. Three choice. Number one, brand enrichment. We exist to fuel the [indiscernible] power of the brand, enhancing its cultural relevance and its creative excellence. Number two, it's about experience enrichment. We obviously aim to leave memories to our clients, reinforcing that sense of belonging to the Ferrari community, sense of belonging, which is so important for any brand these days. And last, we are about growing our community, acquiring new customers while pampering existing one by simply giving access to different facets of the brand. With this in mind, lifestyle strategy can be summarized as follows. The why is actually quite straightforward. Linked to the mission, we have untapped opportunity to expand the brand while preserving our DNA. And more importantly, we can leverage our unique assets, our community and the multiple touch points where we meet them. Think about Grand Prix, think about Cavalcade. These are unique occasions for us to actually fulfill the desire of ferrariness I was mentioning before and reinforce sense of belonging. The what is simply a differentiated expression of our brand. I'll get into this more detail in a second. The who is an incredibly captive audience. These are real Ferrari lovers. These are our ferraristi and our tifosi. And last but not least, the how. The how we are into deliberate journey to brand, product and experience elevation and uniqueness. No matter what is the price point and no matter what is the category we are talking about, this is a mindset. So all of this, it is not an opportunistic exercise. This is rather a long-term choice that the company has taken. So let's go a bit more into detail on the what. We have 3 pillars: Personal luxury goods, which encompasses our own collection, apparel and accessory and also some strategic partnership with selected licensor, watches, glasses, game. We also have the collectible pillar, bringing to life our racing legacy and our sports car craftsmanship, where iconic engine, one-off artifact or component gets a meaning, become exclusive object to collect. And last, we have our experience. Our museum in Maranello and in Modena as well as our theme park in Abu Dhabi and Barcelona are attracting millions of visitors over the years. 2024 was a record year. In 2025, we are on track to beat it. We are competing with Uffizi and Colossal, being one of the top 10 most visited museums in the world. This is what the power of brand is about and its duality. Let's go now into the who and the how. And this is actually probably important -- one message important to get. We have a customized approach for our audience, customized approach for our audience unified by one creative curation. The who, as I was mentioning before, is actually made of real brand lovers. This is clearly a big competitive advantage we have, and we go from 180,000 ferraristi to over 400 million tifosi. Both segments are important and both segments are unified by one thing, the incredible passion and affinity they have for the brand. Naturally, ferraristi will gravitate towards exclusiveness, while tifosi obviously are more inclusive. With such a broad and diverse audience, it was critically important to understand what we were going to offer them, how our architecture would be structured. So we put quite some time to get clear on that. And the approach is actually what we call a tiered approach. What we are doing, we are designing -- consciously designing against their needs to nourish brand elevation on one side and uniqueness on the other, moving from an exclusive world of high quality and manufacturer excellence that Ferrari has always represented with our tailor-made atelier to a more inclusive approach with our fan offer. Obviously, this is not a static picture. In fact, our customer will move up and down, exclusive or inclusive depending on what is the need, what is the occasion and ultimately, what is their purchasing power, obviously. So if we go a bit more into the detail on what tailor-made is, this is the pinnacle of our offer. This is for our most discerning Ferrari customer. This is where you find one of a kind, made-to-order, limited edition. This is where our craftsmanship is glorified. In here, you have our Maranello clutch, our Nello The Toolbox, our handmade patterns, all requiring superior quality and special care. Then we'll go into style collection. Style collection is where Ferrari aesthetics and codes merge with artisan values. This is where you find the sensual shape of our car. This is where you find sculptural volume. This is where you find a choice of strong chromatic colors and incredible material development. This is where you find our iconic leather bomber, our reinvented jumper, our bags, small and large leather goods, all for a lifestyle emotion. And here, there is a data point, which actually I want to share with you. In 2023, when I arrived, the #1 category we would sell was caps. The #2 category was T-shirt. The #3 category was jumper. Here today, our #1 category is bag. Our #2 and #3 category are outerwear and jumper. And I say this with no arrogance whatsoever because I know exactly that it will take time and effort. It just means that we are on the right track to progress towards that brand elevation I was mentioning before. But brand elevation, as I said before, is not just about price point. So we also look with very important care, our creative director looked at it very, very carefully. We look at our fan offer. Our fan offer is obviously for our racing community. This is the most accessible assortment. Still, there is some insight that I want to share with you. Number one, every single fan wants to go back at home with memories. So the more distinctive we are, the more unique we are in our offer for that specific occasion, the happier we will be. So we started creating some limited edition. And whether this is a different colors, different graphic or simply different fit. These are incredibly sought after items. This is an environment very interesting for us because today, there is an incredible contamination between fashion and sport, and this is definitely something we're going to develop further in the future as we move forward. If we look at the tier approach, the tier approach is also relevant for all categories we talked about. Here, you can see our collectible. From the last, we have the most iconic piece, the engine to the most accessible reproduction and scale of our cars. Same approach. This is just to give us some coherency and some consistency versus what we are trying to do. So after having gone through, let's say, key strategic choices on the who, what and how, we wanted to share with you the journey. How did we get here? What choices did we make? The first one is about focus. We drastically reduced our licensing agreement, terminating approximately half of them versus 2019 when the product offer distribution were not in line with the position of the brand. Similar exercise was done with our network, closing all concepts and locations that were not appropriate. The second choice was about driving made in Ferrari culture. This is actually pretty important where you don't produce yourself. Driving a Made in Ferrari culture where Made in Ferrari means excellence was absolutely critical. And of course, we did it, first and foremost, by creating an in-house team, very lean, very talented, an in-house team that made this all possible and by giving ourselves some criteria, push creativity, ensure coherence and most importantly, governance. Governance from A to Z from the time there is a drawing to the time these things arrive on shelf. That was critically important for us. And obviously, without the right people, all I'm saying will just remain words on paper. The last piece was brand elevation, brand elevation at all costs. No compromise, no matter what we're talking about, product offer, channel. So with all of this, I'm now going to share with you a very simplistic -- in a very simplistic way, forgive me because we have the time -- we have a few pictures to show where we were and where we are. If we look at the product offer, we look at material, we look at design, we look at look and feel, we look at distribution, we look at everything, and we move from here to here. And I'm sure there is much more we can do. Same was done with our stores where, obviously, it was important to gather the right client in the right environment, sending the right message. And our collectible, we gave them back some dignity. These are piece of history. These are piece of legacy, and they need to be glorified. And last but not least, our most ambitious endeavors from our first store in Maranello only 4 years ago in June 2021 to the latest one. And here, I have to say, and again, with humility, the recognition that we are getting from external, it's quite positive. It means that we are making progress, collection after collection, year after year. With all of this, I just want to say that I hope you see a relentless effort towards 3 things across all access, effort towards elevation, effort towards coherence and obviously, uniquely Ferrari. We also made some effort -- put some effort to drive quality and innovation, drive quality and innovation in our material. Here, you have just a few examples. Our Q-cycle certified fabric. This is directly tied to the automotive world. This revolutionary recycling technology basically transforms end-of-life tires into fiber, applicable to different category of textile. Leather, our leather, our material. We are experimenting in [indiscernible] with patent leather body work, rubberized assets, et cetera, et cetera, et cetera. And last, our iconic Maranello clutch, probably the most representative example in how we can drive Made in Ferrari synergy, inspired by the red Daytona SP3, each single piece is entirely made in Maranello. I'm going to show you a video that explains this so much better. [Presentation]

We're almost at the end of it, I promise. Before concluding, I wanted to give you a sense of why we are encouraged by the results and the consistency of the progress we observed. Our offer actually resonates quite well with our ferraristi. Over 50% of our sales are made by our ferraristi. We are attracting new to the Ferrari world. Over 80% of our clients are new, implying that there is some interested to see and buy some different facets of the brand. Last, which is the most interesting piece as well is over 35% of our clients are women aged 30, 40, and they tend to buy more than one piece, women, the whole look. Lastly, I think it's important to recognize that we are getting clearer and clearer on how to segment our tifosi because when we talk about 400 million people, as you can imagine, there is a universe. And what is evident that there is tifosi, which are incredibly interested to what the piloti wear. Great. We are going to do what we are going to do, and we'll get it better and more unique and better quality. There is also another part of our tifosi, which are more interested into most refined item with racing DNA. We launched Charles Leclerc capsule in May 2025 in Monte Carlo, and it was a proof that actually both for men and women, there is interest in that market, in that refinement for very sporty items, just a little bit less literal. We are going to obviously look into this and next time, we'll give you an update. So before I conclude, I'm going to summarize what's next. What are we going to do next? Our #1 priority is to continue to nourish our customers, which means focus first on our ferraristi through top-of-the-line pyramid offer and immersive experience, memory experience, leaving the memory, reinforcing that sense of belonging that Enrico was talking before. Our #2 priority is to fuel the passion of our tifosi. Obviously, here are 2 words, uniqueness and coolness. Our #3 priority is build scale at the right pace. And this is actually quite an important point because we are going to have -- in the next few years, we are going to have a right mix between temporary activation [indiscernible] and so on and permanent expansion. 2026 is going to be an important year for us because we're going to open 2 beautiful stores, one in London, Bond Street and another one in New York. But this is not a number game. We are going to expand only when it's ripe for Ferrari, both from an image point of view as well as from a financial point of view. The third thing is we're going to manage our portfolio. Our portfolio is actually one of the key differentiating factor. We're going to manage it strategically by nourishing and strengthening strategic partnership where we don't have capability or better say to complement our capability. I'm talking watches, I'm talking glasses, I'm talking games. Well, lastly, we're going to nourish brand narrative with immersive and memorable experience in any interaction really, whether it's a fashion show or a tour in our museum. In conclusion, I hope you got a sense of the uniqueness of our journey towards brand elevation and customization and also the consistency of the progress we made with the customer at the center of everything we do. This is a long-term journey, obviously. We have the ambition to grow at the right pace and to deliver operating margin in line with the rest of the company. [Foreign Language] Thank you very much. And I'll now leave the floor to Antonio.

[Foreign Language] My role is to translate into numbers the ambitions outlined so far by my colleagues. Let me start with this sentence. No matter how many finish lines we cross, Ferrari is never finished. We have found it appropriate because for us, the finish lines are not just the chequered flags on a race track, but also the track record of our financial results that we have the ambition to keep on improving year after year. Because at Ferrari, each achievement is not an endpoint, but a new starting line in everything we do. So before looking at our future, let's take a step back and review our achievement of the past 10 years, 10 years since our IPO of 2015. Here, you see a few key numbers that well illustrate the uniqueness of our business model also from a financial standpoint. Strict control of production and deliveries to our clients, revenues growing faster than deliveries and profitability growing faster than revenues with a solid cash conversion continuously improving our free cash flow. Such performance allowed us to reinvest in our future with appropriate capital expenditure, as recalled by John, and concurrently to increase overtime, shareholders' reward up to a total of EUR 4.7 billion, almost equally split between dividends and share repurchases. The strength of this track record and the solidity of our current demand with an order book which enters 2027, represent very strong foundations for our future and a much higher starting point for this new business plan compared to the past. Let me start from the near term with this chart. We revised upward the 2025 guidance on the back of the solid business performance and reflecting the improved contribution of sports car revenues, including personalizations and a lighter-than-expected cost base despite a greater headwind from foreign exchange rates and increased U.S. tariffs. In this respect, the official confirmation that U.S. import duties on European cars and parts are set at 15% from the 1st of August removes an important element of uncertainty. Our new 2025 guidance actually surpasses 1 year in advance the profitability targets we had originally set for 2026 in the previous business plan and speaks well for the speed of achievement of the industrial free cash flow objective too. The decision to complete the current share repurchase program within the end of this year, once again 1 year earlier, also reflects such progress. As already introduced by Benedetto, from 2026 onwards, our business plan has been deliberately designed consistent with our scarcity model by encompassing exclusivity in both deliveries and client experiences, protecting and possibly expanding our gross margin through a wise management of both product mix and pricing as a function of the emotional and technological content of our products, focusing investments on product development and manufacturing agility to adapt to the evolving macro context. Clearly, we also continue to carefully look at experiential and geographical opportunities whose benefits will be more visible beyond this plan period. So let's go. As described by Enrico, we have an exciting product pipeline ahead of us. This allows us to cover different client needs and profile while also nurturing our existing collectors. To preserve exclusivity per model through our 4 product pillars, volume growth has been designed to remain very limited throughout the plan period. On a cumulative basis, we expect to maintain Icona and Supercar well below 5%, special series at around 10% and range models above 85%. Being range models that we have learned from Enrico and Ernesto, deliveries of the Ferrari Elettrica in the next 5 years will represent a limited portion of this 85% that we have deliberately planned in line with its positioning. In addition, we target a well-balanced development of our offering over time. This means that every year, we aim to offer our clients the widest choice with the most suitable powertrain for the different model mission and positioning. As usual, the real challenge is to design a product portfolio evolution for a smooth and linear development of our profitability despite the natural cadence of model launches and phaseout. Across the business plan, we also assume substantially unchanged allocations by geography with EMEA and Americas over 70%, rest of APAC close to 20% and the overall weight of Mainland China, Hong Kong and Taiwan below 10%. As already anticipated, we also continue to work on emerging opportunities for the longer term in geographies where today, we are less present. Moving to our net revenue bridge. You see that once again, the bulk of our growth in the next 5 years is driven by sports car revenues, also sustained by the visibility granted by our order book. More precisely, we target sports car, including cars, spare parts and car-related activities to generate approximately EUR 2 billion revenues over the plan period, driven by the enrichment of the product mix, along with the contribution of personalizations. In this business plan, revenues from personalizations are expected to grow in absolute terms and are projected to represent approximately 19% of total revenues from cars and spare parts. This percentage also reflects the richer product mix, which increases total revenues and therefore, dilutes the personalization share in percentage term compared to the current 20%. Racing and lifestyle revenues are also projected to positively contribute to our group's performance. In Racing, the assumption is always to win, which supports both commercial and sponsorship revenues. In Lifestyle, we expect to elevate the offering while continuing to expand it, as explained by Carla. All in all, we target to achieve total group net revenues of approximately EUR 9 billion in 2030 with a compounded annual growth rate in the region of 5%. Such objective is based on the current regulatory framework, including import duties and the assumption of an exchange rate of the U.S. dollar floating around the current levels against the euro, which implies an increasing headwind over time as the hedges currently in place will gradually fade away. Based on this, we aim to reach an EBIT of at least EUR 2.75 billion in 2030 with the key drivers being the strong product mix, including limited edition models, the enrichment of product range as well as personalizations. Such increase in profitability is related to the positioning of our products regardless of their powertrain. Volume, as mentioned before, is intentionally designed to have a very limited contribution. Industrial costs and R&D will grow mainly reflecting the increase in D&A linked to product and infrastructure developed, racing activities and other industrial costs. In this number, we have factored in the expected increase in Formula 1 racing expenses dictated by the F1 financial regulations. As a result, we project expense R&D to trend downward to 7% of revenues over the plan period. SG&A will also grow, reflecting our communication and marketing plans for sports car, lifestyle and racing, including model launches and a wide range of client and partner engagement initiatives as well as the overall organizational development of our company. SG&A will, therefore, remain in the region of 9% of our yearly revenues. The contribution from other, mainly Racing and Lifestyle, is expected to be positive throughout the plan. However, this benefit is assumed to be largely offset by our foreign exchange rate assumptions. As a result of the above, we aim to strengthen our profitability metrics over the plan with EBIT and EBITDA in 2030 growing approximately 1.5x compared to our baseline of 2024, and we target to consolidate our percentage margins in 2030 of at least 30% for the EBIT margin and 40% for the EBITDA margin. Innovation is and will always be our priority. Cumulated capital expenditures over the plan period will amount to a total of EUR 4.7 billion, covering everything that makes us unique. Approximately 80% of our investments will be focused on broadening and innovating the product range and the remaining 20% will be devoted to the infrastructural development of Ferrari in its wider meaning with the main projects being the completion of the new paint shop as well as the renovation and upgrade of key strategic facilities. Let me remind you once again that in Ferrari, capital expenditures are not aimed at pursuing economies of scale nor standardized solution. We invest in product differentiation through advanced technology and design in very limited volume to continuously enhance the distinctive Ferrari emotions. Our product CapEx will be allocated to the continuous development of ICE, hybrid and electric models in alignment with our technology neutrality strategy. But we are not investing only in the product pipeline that we will see the light during the current business plan. As always, more is yet to come. And as you can see, about 40% of the product CapEx that we are deploying today is devoted to the next generation of sports car and will generate revenues after 2030. During the current plan, we project the incidence of total capital expenditure over revenues to decrease and stay below 12% on a yearly basis, hence, lowering the capital intensity of our business. The ratio of CapEx to D&A is set to stabilize slightly above 1:1 on average through the business plan. We target cumulated industrial free cash flow of approximately EUR 8 billion over the plan period. That is what we have generated in 10 years since our IPO. Also, the cumulated cash conversion ratio from EBITDA is set to improve by 10 percentage points to more than 50%. The industrial free cash flow generation will be mostly sustained by the growing profitability, net of capital expenditure. Working capital, including advances on selected model is rather neutral over the plan period, while taxes are a net drag since our tax rate is assumed to increase from 22% to 24% as a consequence of the expected lower benefit from the current patent box regime. Such level of industrial free cash flow generation allow us not only to reinvest in our future, but also to increase shareholders' remuneration, and I'll come back to this in a minute. Our unique business model and the visibility it grants allow us to present today a consistent growth over the longer term that starts from a stronger and higher baseline, along with the commitment to execution that has always characterized us. In summary, moving to our 2030 guidance, we target net revenues of approximately EUR 9 billion, adjusted EBITDA of at least EUR 3.6 billion with an EBITDA margin of 40% plus, adjusted EBIT of at least EUR 2.75 billion with an EBIT margin of 30% plus, adjusted EPS diluted of at least EUR 11.5 and lastly, industrial free cash flow reaching a cumulated amount of approximately EUR 8 billion. As mentioned before, we aim at a consistent increase in profitability throughout the plan, sustained by the balanced timing of model introduction and phaseouts. With all of this in mind, we target to return to our shareholders approximately 85% of the industrial cash flow generated throughout the plan. We will, therefore, propose an increase of our dividend payout to a steady 40% of adjusted net profit, starting from the 2025 annual results. This increase implies accumulated dividend distribution of approximately EUR 3.5 billion from 2027 to 2031. The dividend distribution will be accompanied by a EUR 3.5 billion share repurchase program to be executed from 2026 till the end of the plan, in line with the progress of our free cash flow generation. Under these assumptions and with the cash generation that we aim at, we expect to achieve a net cash position well before the end of the plan, and this clearly represents an opportunity for further shareholders reward. To conclude, let me recap the main takeaways of our business plan. It rests on solid foundation and unique visibility underpinned by the consistency and the agility ensured by our business model. It includes a significant degree of product innovation and appropriate investments to fuel our growth trajectory even beyond this plan. It targets another phase of consistent growth to new highs over the longer term with strong profitability and increasing free cash flow generation. And lastly, it enhances shareholders' return. With that said, we thank you all for your continued trust and support in our long-term exciting journey. So I now hand over to Benedetto for our decarbonization targets and closing remarks. Thank you.

I'll be quick because I'm sure you have a lot of questions. So let's go with the decarbonization because we believe that a company is a leader, not because it does only great products. But because it shows respect and respect and attention for all the people around us. When we met last time, we told you we take seriously decarbonization because I think we, as a leader, we have to show that working together with the people around us, with the supplier, we can achieve things that people believe are not feasible. So today, how much is the carbon footprint of this company, 1,000 kilotons. How much of this is coming from the wall of Maranello, 6%. How much is coming from outside? We have almost 60%, 57% upstream and 37% downstream. You see there is a cross on a small tower over there. This is the cross coming from what Enrico said that most of the 90% -- more than 90% of our car is still alive because Ferrari is forever. What we did so far, we cut '24 over '21, we cut -- we reduced the Scope 1 and Scope 2, the emission in our factory by 30%. Consider that in Q4 last year, we have been shutting down the 3 generator. So if I see the target for end of this decade, we are going to be -- we are going to shrink the carbon footprint of our operation by 10x. So it means that we will go to less than kiloton. And I think this is a remarkable progress that has been done. One, installing solar panel. If you see we have drone, now the drones are pretty much common to be used. But if you see we have drone, you see a lot of things here. Number two, we bought green electricity. And number three, we've been working a lot on the process efficiency. You have seen before by Ernesto, 75% of aluminum is going to be recycled. This means that we will reduce a lot this impact. On Scope 3, we need 2 important things. Scope 3 is something that requires people that understand how to develop a product how to reduce it. I still remember 2 years ago, yes, I asked a colleague that has been doing product development for many years. And I asked them, we need you to drive this decarbonization. I remember that at the beginning, the reaction was, okay, you are giving me this job because you believe I'm not good in developing the product. No, I'm making this job because you are good in developing the product. And I want you to help this company, everyone to understand not only the time, not only the quality, not only the cost, but also the carbon footprint. If you go around in the company here and you ask engineers, when we have innovation meeting, there is a carbon footprint of everything we develop. And I think this is a big achievement. So today, where are we? Today, we did some progress because if you see in this chart, we have been able to offset the carbon footprint increase because of the volume. But we wanted to give a more challenging target. The last time we told you we are going to reduce the carbon footprint per car. That was the parameter. Today, based on what we see with the effort we do in our company and the collaboration, precious collaboration of all our partners and suppliers, we commit to reduce absolute carbon footprint of Ferrari by 25%. So if you -- when you leave this company, this room, there are 2 numbers I would like you to remember. On Scope 1 and Scope 2, we will reduce by 10x the carbon footprint that is emitted by the Maranello facility. The absolute value of carbon footprint emitted by all our partners for everything we do outside is going to have a cut of 25% on what we do. These are the 2 numbers. We raised our own bar because we saw in these years that we can do better than what we thought and because we see a strong collaboration from all our suppliers. And before to leave the session to the Q&A, I would like to share one important consideration for you. What is key in this company is written here, is the relentless drive for new things. Innovation is in our DNA. You have seen in different ways in all the presentation, there is a key word that is innovation, internal innovation, open innovation, external innovation, you heard many times. I think that the world as it is today, nobody 3 years ago, even 1 year ago, maybe would have been able to master it. I told you clearly that there is one important asset in this company that is agility. I made you also the examples of e-Vortex. We started the e-Vortex in April, in May, actually. We finished it in September. We gave a challenging target to show you completed the e-Vortex before this event. So this is an agile company. We have our target. We have our own white line to follow on the highway. We can reassure you we are committed. As John said, this is a time of commitment that, one, we will continue to be consistent with our DNA. Two, we will continue to be agile because nevertheless today, the nimbleness is key. Three, we will continue to be innovative. Four, we will continue to be well grounded. You said -- you heard 4 wheels on the ground. It's important we understand that the past success does not imply the future one. And we need to make -- we have always to have that kind of level of will to progress that is in the DNA of this company. And last but not least, we are committed to have always respect and attention for all our stakeholders because all in this way, we can continue to be the unique company we are. We can only -- in the future, we need to continue to be unique. And I'm also glad because I got some messages while I was sitting there from some of you that the message of uniqueness get out pretty well because this is the key message we want to pass in this Capital Market Day. Thank you. And now the session is for Q&A. [Presentation]

We are ready for the Q&A session. So I can lean back on the stage, Carla, Ernesto, Enrico, Antonio, Benedetto. As customary, I would like for you to state your name and your firm name before we begin. We can now start and we can take the first question on this side, please? Stephen, you are the first.

Stephen Reitman from Bernstein in London. Regarding the targets and particularly the landing date of 2030, you made it very clear that the growth is being driven primarily by price and by mix with volume having a very little part of that. When we look at the products that we know about that are coming out in 2026, '27, and we can speculate about beyond that, we know it is quite heavily influenced by the new F80, which has obviously set new record levels in terms of pricing for the supercars. Could you comment a bit more again about how why -- what are the factors really that are still keeping the margin at over 30% EBIT compared to maybe because pretty similar to where the landing point was put for the current plan?

This one -- thank you, Stephen, for the question. I think it's all about the evolution of the product mix and therefore, its product positioning. I try and explain in my speech that when we think about the new product and we think about their positioning and the price it commands and every single product is basically approved as an investment case, whenever it commands a level of margin that is satisfactory to us in terms of the comparison with the previous model. So the difficulty is really to look at what happens in 5-year time and now the product lineup would evolve considering all the constraints that we have in terms of time to develop new cars. The other constraint is to be able to offer our clients in a single moment in time the widest possible choice and basically build the economics on top of that. So when we look at a level of margins that are growing from now to then from 2024 to 2030, it clearly assumes that we have a complete lineup with a similar level of strictly limited cars available in 2030. With a product -- with a price that reflects the improvement that we are committed to bring to the market. And ultimately, of course, there is an idea about the cost of reducing these cars. It's all depending on this product evolution. And in addition to that, there is also an element of assumption in respect of the level of product enrichment. I explicitly mentioned personalization because this has been one of the core elements that drove the development of our margins in the last few years even more and faster than we had expected. We've been very clear and public on that. And on that, we have taken an assumption that you could consider prudent, if you wish, not to maintain the same level of penetration of personalization, but to bring it back to a slightly lower element, which takes into account the fact that the product mix will be reached in 2030. And therefore, it inevitably dilutes the overall penetration of the revenues from personalization.

We can now move to the next question. I can see Michael. Thank you very much.

Michael Binetti with Evercore. I guess I'll ask a similar question, Antonio. So the revenue CAGR at 5% is -- obviously, you're a much bigger company today than last time we got a long-term plan, but it's a little lower than the 9% in 2022. The investors in this room have become accustomed to quickly starting to think about upside scenarios as we see your plans after you've beaten every single one since the IPO. So as we think about this, you have the F-80 next year, very expensive price point. You targeted electric. You said additional as a new segment, new clients several times last night and today. You've targeted personalization lower at 19% than we've seen it in a few quarters. It's been around 20%. We've got the paint shop coming online, a couple of new tailor-made shops in Los Angeles and Tokyo. Can you help us understand some of the important takes or headwinds that this group should understand or think about a little bit more and perhaps where you think there's opportunity to outperform the plan that you gave us today like you have the other 3 plants since the IPO?

If you had asked me the same question in 2022, I would have told you, look, the objectives are the one that are on the table and then reality surprised us for the positive. So in terms of the opportunity that might be not be considered here, and I think it's prudent not to do that, is that in terms of demand, we see more. I mean, we are actually planning on the basis of our experience in terms of our models. I already commented in terms of personalization. And pricing also reflect our view of today. In 2022, we did not expect what actually happened, meaning the impact of inflation. And therefore, even our pricing reflected what happened in between. So this is a plan. This is something that takes in consideration duly the responsibility that we have towards this company in terms of its ability to develop and be able to offer clients every time distinctive emotions. So there is a lot in terms of technology behind these products. And there is a lot of thought in terms of client experience that we want to satisfy. Then you could argue for the positive and the opportunity or you could even argue for the negative. I think this is the balanced approach that we have tried to put in these numbers.

I think, Mike and all, I think 2 things. Number one, balanced approach. Number two is the agility that is important to have because last time we gave you visibility up to 3 years, basically 3, 4 years. Now we are giving you a long-term visibility, and we want to make sure that we keep delivering on our promises. If you notice over there, you see 2 numbers with at least -- there are 2 numbers in the guidance of Antonio shared with you that he was saying at least 30% and 40%. I think we need to be always transparent, clear with all our community. And we need also to factor in and that the agility is key in the navigation of the next years. I think there are opportunities on different fronts, but we need to make sure that we deliver on our promises always.

Thank you. We can go on the next question to Henning over there, please, and then we'll go back to central stage to Martino.

Henning from Barclays. Perhaps I can ask about the sequence of the growth as you envisage it over the period because another element that we've become accustomed to is like a smooth upward trajectory, margin expansion, mix accretion, a little bit of volume growth, perhaps less so. But I would have also believed that we're looking at a year of quite strong mix accretion from the F80 next year. And I would just like to understand how you think about potentially getting to a relatively high level as the F80 ramps up. and then perhaps not so much left for the years beyond the large step-up after '26 itself, right? And how that fits with what we've become accustomed to in terms of the smooth upward trajectory?

Thanks. I think it's important because once again, when we look at these numbers compared to where we start from, it is clearly evident that we are moving from a very high mix standpoint in terms of product. And this is different compared to what we had back in 2022, where we were moving from 2021 that was made mostly of range models and therefore, I said, I remember in the same occasion, 16th of June 2022, that the plan was more front-loaded because there was a lot to go. Now we move high. And what you mentioned in terms of target, it is also our challenge on a daily basis is to be able to provide a smooth development of our growth. And that is really something that I try and explain when saying we are targeting consistent growth year after year. Then we are not geometric in terms of what we are able to do. But clearly, that's one of the element. Providing consistent growth is clearly something which is at the core of our plan from a financial standpoint.

Thank you, Henning. We can go back to central stage to Martino, and then we go to Thomas.

Martino De Ambroggi, Equita. On the Elettrica, always referring to the long-term guidance, should we assume -- we don't know -- we still don't know the price. It's not official, but should we assume is it detrimental or accretive on margin? And particularly because you are in-sourcing components, but you are also reducing the expected volumes. So this is a mix of 2 things that are probably one against the other. And just to summarize, Benedetto, you remember that you considered ambitious the previous plan. How do you define compared to '22 today's plan? Because I consider there are conservative assumptions that you already explicit talk about it.

I'll take it. So I'll start from the second one. How do I consider it, equally ambitious. How we are approaching it with the same will to progress and a strong effort to make it happen. The first one, Elettrica. First of all, I want to clarify one thing. The price is not yet fixed. The price will be discussed with Antonio, with Enrico before the final third phase. And also, we said something important last time as this time. We never share the split of sales by motorization, by traction. We can only control what is the offer, our offer. So no, we are not saying we are going to sell 20% or 40% of electric car. We're telling we are offering this kind of model, the number of model percentage-wise. I think that if you were asking us when we discuss, we went to review the hypothesis on '25 when we did it in '22. Well, we were not thinking that the differentiation strategy would have been needed. What I mean is that we can -- we have 2 options in general or we do more volumes, more models, lower volume or alternatively, you can do lower volumes, lower models, higher volume. We are a believer of higher number of models with a lower volume because this is what we understood in this year with the takeoff of personalization. So the plan is ambitious like it was last time. As Mike said before, the starting point is different because the starting point at the time was EUR 5 billion. Now the starting point is EUR 7 billion. So this is the -- if you want the difference. And for the Elettrica, you have to wait still a few months when we disclose the full picture of where this car is aiming to.

Thank you. We can move to the question of Thomas.

Two questions, please, for me. Thomas Besson, Kepler Cheuvreux. The first one, the number of potential customers for Ferrari is growing a lot faster than the volumes you're offering them. Could you talk about potential for midterm volumes eventually being higher? Or do you stick with that view effectively of having a larger number of horizontal products only sold at small numbers? I think there's some frustration among some people who would like to become customers and who have to wait a very long period of time to be able to do so. And the second, I'm going to try again on questions that have been asked before. Could you be a bit more explicit on the number of quarters that you're going to use to deliver the F80 and the plan to effectively after that bump, address the consequence of the end of that product?

So the first one, I'll take the second one, the number of quarters you manage, Antonio. I think that the -- it's key for our business model, the scarcity. I mean there are clients, there are Ferraristi in this room, okay? So I think that it's important that we manage properly the scarcity of what we do. This is not -- there was 1 chart of Antonio. It's very nice. I mean, story of mix. We need to make sure that there are not too many cars of the same type on the road. This is what we said 3 years ago. This is what we are saying today. We want to be unique. If we do too many cars, we will not be unique. And to be unique, you have to be agile. And that's the reason why we are in this building because this is the building that will give us the manufacturing agility to accommodate the different client preferences. For the first one?

Yes. We are not that specific -- we cannot be that specific to in terms of numbers of quarters. I mean we just said publicly, we'll start selling the F80 delivering the F80 to our clients in the last quarter of this year in a few units. And then you have the benchmark of what we've been doing in the past with strictly limited products. So that could be a reference, if you wish. But don't be so much, I mean, strict to the flexibility that Benedetto is mentioning, but even the complexity of the car is actually commending the times of introduction and the speed of deliveries of the car.

We can now move to Anthony over there and then go back to Tom.

Anthony Dick from ODDO BHF. I had a first question around flexibility. So it's nice to see that you lowered your BEV penetration target in light of developments in the environment. And Benedetto, you also said that you would serve or sell the cars that the client asked for. But when I look at your residuals, it seems that what the client is asking for is more V8 ICE cars. So I was just wondering if you have the flexibility, both from an emissions regulation standpoint or an industrial standpoint to maybe consider bringing back that form of powertrain. And the second question I had is on residuals. There's been quite a bit of debate recently around the residual values across your hybrid range, notably. So on our end, we obviously have limited data, public data. You obviously have much more data. So I was wondering if you would consider sharing the depreciation rates that you're seeing on your hybrid range in key markets like the U.S., for example.

I will reply. Number one, flexibility. And I think that the manufacturing infrastructure we have in place is highly flexible. The chart at Ernesto was showing the different motorization, the different body type. I mean, it's not a chart to please you, it's the reality. If you go downstairs, you have people that are able to accommodate the swing of the demand that people may have, though, as he said, we have the big advantage to have long-term visibility well in '27. So I think this is very important, but we can accommodate. Now I think we have to pay attention to extrapolate a general pattern from a few cases. The message of Enrico when he showed a chart unique client, that's one important thing. If you want to apply typical demographic segmentation to our client to the ferraristi, it does not work well because we are working and we are analyzing all the data of the residual values, for example. And we see some pattern, but they are very specific on, let me say, on -- they are not so specific on a model, but depends on the kind of personalization or the kind of features the car has. There are functional, for example, functional personalization, like titanium screw fastener that have -- that are appreciated in some part of the world, while in other parts are not appreciated. As well as the residual for some model, the residual value, get confounded also with the -- and the real understanding of that technology by the people. Sometimes we associate this with the hybrid. Maybe the hybrid has been associated also with some other things like touch, the use of the touch. And this is why as Ernesto was saying, on the tax side, we are modifying it. So there is not a general pattern. What I can tell you is that, yes, there was one county that was a little bit under pressure. That was the case of U.K. also because a lot of people are going outside U.K. for the reason you know better than me. And we have been able to stabilize the situation because we reduce the number of cars we are getting over there. It's always coming to the management of scarcity that is key for us. The management of scarcity is key for us. What is important is to be agile in manufacturing, in listening our client and anticipating because I can tell you that -- I think we were here for -- when we added the dealer meeting and we had also some client with F80, and when we said we were switching to mechanical button, there was a big, big applause because finally, we got rid of some features that in the past were nicer and the people understand and we understood that it's better to be phygital than full digital. So this is the place where we are and we keep working. But we don't see any specific concern over there. We don't have any specific concern over there.

We can now move to the next question to Tom and after to Monica. Thank you. On the central stage.

Tom Narayan, RBC. These have kind of already been asked, but maybe I can get more color. On the volume point, the bridge from 2024 to 2030, you have this e-building, which can produce probably a lot of volume. I totally appreciate what you're saying about scarcity, more models rather than more volume, but you also have to manage the wait list. Just curious as to how fixed you are. Should this -- the wait list get much longer, would you decide to change that strategy? How flexible are you? And then on residual values on the Elettrica, we've seen questions about the Purosangue residual values and how you can control it perhaps with volume. As it relates to Elettrica, we don't know what -- we know it's a range model, but we don't know what it is exactly. To what extent can you control the residual value with volumes?

So when it comes to the right length of waiting list from all our analysis believe -- we believe that the right length for waiting list must be between 20 and 23, 24 months. Because if it is too long, especially new clients can get a little bit annoyed. But 20, 24 months is the right time length. This building here can accommodate, let me say, what we see the clients are wanting. I mean, you may remember when we launched the Purosangue, there was -- or also the case of personalization. The case of the personalization was such that we were not expecting a strong demand of carbon look, let's say, personal items. We have been able to ramp up. I think that the way this building is structured, maybe you also entered other similar factories, but I don't think you have seen such kind of flexibility and agility, allows us that if something happens on electric cars more than maybe we will foresee, we will love the agility. But we have always to keep in mind scarcity. I think scarcity is important. This is -- I mean, I was discussing before, we've done when there was the number of 330,000 cars produced since the beginning of the history. I mean, there are some guys that are making those cars in 1 year or we're making those number of cars in 1 year. So I think scarcity is important. The second -- so one was the flexibility, one that -- right wait time, I think I replied is between 20 and 24 months.

We can now move to Monica, central stage, please, and then we're going to be on the right stage and left side after.

Yes. I have 2, let's say, 1 is on the shorter term. I remind that during the last call, Benedetto, you said that some U.S. clients, but overall, there was a wait-and-see moved approach. Is it something changed there since our last call on this wait-and-see mode approach? And the second question is more on the strategic side. Across the plan and within this strategy of, let's say, higher number of models and lower volumes, are you seeing some white spaces across the plan that Ferrari can occupy as Ferrari did with Purosangue. So if we can expect something in the middle of the plan that can change a bit the family. And last, I know that the geographical allocation will not change, you said, Antonio. But within the model launches and there will be a lot, is -- can we see something that can change the perception of the Chinese customers towards Ferrari?

So I take the one in U.S., we don't see any difference. The only thing that changed is that finally, we understand what is the tariff level, that's it. Because last time we had a conference call, I remember, you were pushing us for this famous 15% and Antonio rightly said, we don't see yet. We saw it, well, 2 weeks ago, when it was officialization. So this is the story of U.S. We don't see -- I mean, actually, there are some people in this room that yesterday were rightly pushing me to get the car. They're waiting for since -- in U.S. since several years. So I think there is a strong -- the demand is there. We don't see any particular weakening signal over there. The second one is the strategy. I think, yes, last time we added the Purosangue. This time, allow me to say that we are talking about Elettrica. We said -- you said, well, we may have a client that are not yet in the family. They can be part of our family because of electric. I think we have also to be -- how can I say, to manage the entry of a new model with scarcity because one of the reason also why the price of Purosangue was what it is, is also because we've been able to manage properly the scarcity. And I think this is important, Monica, to consider all this scarcity, you know us since a while. For the Chinese, I can start, maybe you can add something. But on the Chinese, I think that there are 2 things. One, okay, the demand dropped for luxury, but for us, it was not too much debt. I think that for us was the fact that our portfolio, our offer for China was not well fit because the 8 cylinders was the Roma Spider, but we have a soft cap. And the soft cap is not so well appreciated in China. Maybe you can...

You said the most important thing. I would just add that every different motor powertrain has different taxation. So the current product mix we are selling in the country is subjected to high taxation in order to [indiscernible] and 12 cylinder. So the mix will help. I would also add that the current situation that everyone is experiencing in China, which is a slowdown of the market will not last in the future. The point is just to know when it will revamp. But that country will remain an important target for any manufacturer, including Ferrari.

Thank you very much. We can go on this left side.

Yes. [indiscernible]

Sorry, just 1 second, please.

He said already, but the target we have for China, Greater China is less than 10%. Okay. What you said, just...

Okay. I can go ahead. It's Horst Schneider from Bank of America. It's the first time I'm attending a Ferrari CMD. I've taken over coverage just this summer. So I enjoyed every moment since then. And I was thinking when I was looking at the consensus, and I think we see that also today, stock is down a lot, market expected more. I've got to say, I'm glad that you don't align your targets according to the consensus expectation, but more of that what you think can be achieved. But that's more mission statement. When I -- my question is when you look at the targets now or I look at the targets, and I see you target 10% special share, I think at the moment, the special sales is kind of 5%. So I assume on the back of that, that number of specials or the volumes of the special should increase. When I look in that context to your EV targets and your volume targets, is that telling me that you basically try to approach the EVs more from the perspective that you launch EV specials. I have not yet fully understood if the Elettrica is now -- it seems to me like a small range model. How should we think about the volume evolution of the EVs? And in that context, maybe also you can shed some philosophy on the specials on the EVs, for example.

Thank you very much for the question. I can try and be more specific. What I show here is the average percentage of each single group of models, Icona supercar, special versions and Range models. Then this does not mean that this is the level point in time 2030, okay? So if you take the average of what we've been doing in the last few years, you would not find significantly different percentages. I remember in 2022, numbers were very similar to these ones. So we are not thinking of adding too much volumes on the special series. We are very much in line with what we used to until now because special series are either strictly limited in volume or strictly limited in time, but anyway goes to our collectors. So no intention to inflate that, to be clear.

There is also another consideration. I think we can add that 5% a few years ago was lower than 5% in the year to come. So there is also an expansion of that without exaggerating because if you were to see the previous Capital Market Day, the 3 number, [ 85, 5 and 10 ] were the same. We are starting from a higher level, and we want to always to preserve exclusivity because we need -- it's absolutely important. When you talk about special series, then you have to consider even more scarcity. Otherwise, they're not special.

Thank you. We can now move to Sam over there, and then we'll go to Mike in back central.

Sam from Exane BNP. First question on the dividend and buyback. I think you're moving to 85% of free cash flow distributed to shareholders, but you still said you expect to move to net cash relatively soon. So what prevented you from having that distribution higher? And then on the sponsorship, commercial and brand business, you talked about moving up the price and luxury spectrum. How do we think about margin progression within that business?

Thank you. In terms of -- I mean, the 85% distribution is an assumption, which takes into account the fact that we have a balance sheet with a certain level of investments. And once we reach a net cash position, obviously, we will be in better positioned to take a view on a different stance in terms of either the speed of share buyback or any additional remuneration to shareholders. So let me say it could be considered as a prudent assumption considering our business. And the second one, I think Carla has been clear in terms of where we want to be consistently for the future, meaning a business that with all of these areas of activity within is basically aligned with the rest of the group.

Thank you. We can now move to Mike Tyndall over there and then go back to central.

Mike Tyndall from HSBC. A couple of questions, if I can. Sorry, Antonio, the first one is to you, but I'm trying to work my head around the fact that margin looks to be largely flat. So revenue progression, 5% CAGR up, volume very small in that. So predominantly price and mix, which I assume is good for margin. We've heard a lot about digitalization over the last few years, changing the ERP system. So presumably the business is getting more efficient. So I'm trying to understand why margin is essentially flat against that backdrop. And then the second question is just around pricing and the headroom on pricing. It's interesting that you raised prices in the U.S. and seen no change in customer behavior. It's interesting that the number of customers is growing faster than the number of vehicles you're producing. So how much headroom is there on pricing? And how much of that is baked into your assumptions for 2030?

I think the second one, and then Antonio manage the second -- the first one. I think that what we have been doing pricing-wise, I mean we have been, for sure, having some model that increased a lot, if you take the digital versus the premium one. I think if you have to model in the future, you can model this way, not as a drift overall, but as a band or prices that are associated to car with different driving emotions. I think that I want to say that we need to give the opportunity to the new client to get in our family or through the preowned like it is today or to the new model. Today, the people are entering in our family, if I go to see the numbers through models that are around 300, 350 like Roma, if you consider everything. And 1 or the 2 clients is getting -- is becoming a ferrarista, because of the preowned. So if you want to model in the future, think about something that is, let's say, changing but we have a different model that are changing in perspective with a different percentage. That's the way we have to think also because the pricing of what we sell depends on the driving emotion that we are able to deliver to our clients. And then the first one.

On margins, Mike, I would not agree to the fact that the margins remain flat. We are not at 40% right now. We had an ambition to be between 38% and 40% by 2026. And actually, the guidance for this year is to be above 38.3%. So there is a way to go. And we said our target is to be above 40% if I look at the EBITDA margin. . And similarly, on EBIT, we said greater or equal than 30%. So there is improvement in that respect. And as I try and explain, this improvement is coming based on the present assumption from the -- in terms of gross margin, while this develops because of product mix and the enrichment of the product that we envisage of now, but then we need to take into account also what's below the line of gross margin, meaning there are other costs in this company. And there are also costs not necessarily associated with sports car. So obviously, we have an anticipation, I try and explain, for example, in terms of has been Formula 1, there is a Formula 1 financial regulation that we need to cope with. And obviously, we are taking assumptions in this respect. So what we are delivering to you today is a target which is larger -- sorry, larger or equal to, a certain threshold, 40% or 30% that takes into account all of these ambitions. Obviously, our day-by-day action is to try and reduce cost as much as possible, considering, however, what we want to achieve in terms of product and the target in terms of effectiveness of each single activity that we run here.

Thank you. We are now moving to Nicolai over there. Susan will follow and then Andrea.

It's Nicolai from Deutsche Bank. Two questions all from my side. The first one would be, again, on the Chinese market, and you've mentioned that it's challenging for luxury automakers, but overall for the luxury sector. Do you think this -- that the Elettrica can change this? Or what do you think is the dedicated model for the Chinese customer? My second one would be on a lifestyle. And we had a full presentation, lots of opportunities. But I'm not sure if we've seen that in the financial presentation and that the earnings growth is also reflected there from the Lifestyle.

So Elettrica, let me give you -- yes, China can be a good -- could be a good opportunity for us. We needed to test. For sure, the Elettrica offer client in China to pay less money because today, the digital [indiscernible] because of pollution tax is very expensive. And as I told you, we were able to offer Roma Spider that is 8 cylinder with soft hat that is not so much welcome for the Chinese. So I think that in China, there are 2 new cars on top of 2 recently new cars or close to be announced. One is the Amalfi, that is new apart from [indiscernible] And then there is Elettrica. What we are doing internally, we are speeding up the homologation processes, the time lag on homologation wise between Western World and China because maybe you noticed that the challenge homologation wise to get in China are increasing a little bit. And so we want to shorten by making all the processes, all the paper work that is needed. But I think this is important because, yes, China can be good opportunity for Elettrica because the clients are already used to Elettrica and because there is an appetite for our Ferrari. For the lifestyle, you commented already before.

Yes. Actually, the impact is visible in our number, if not because of the foreign exchange rate assumptions as I said. And even if you look back to our financial results over the last few years, the brand-related revenues and margins have been improving recently. And this is because also of the contribution of Lifestyle, not to mention that of raising revenues that have been growing significantly. Even there, and once you start from a high level, then you are adding to that high level. The speed of growth is not necessarily -- I mean, the ones of a start-up. And in addition to that, Carla, if you want to complement, there is a strategy that has been built on purpose in terms of speed.

Yes. Obviously, as I said at the very beginning, our long-term strategy is to grow at the right pace -- and to achieve an operating margin in line with the rest of the company. But at this stage, obviously, the whole thing is not material. So clearly, you won't see it reflected in [indiscernible] numbers.

Thank you. We can now move to Susan. Thank you. Andrea, you're next. .

Susan Bush from UBS. Just 2 questions. Maybe the first one, a follow-up on OpEx. Can you tell us is there may be a bit more opportunity? Is there a chance to bring down OpEx as a percentage of sales? And what would be the cost you could potentially optimize? And then secondly, on the client telling activities. I mean, can you tell us a bit more about those centers you'll be opening in LA and some other locations? What are you trying to achieve with that? And what are the key opportunities you see there?

On OpEx opportunity to reduce them. In our OpEx, basically, in terms of R&D expense to the P&L, we have innovation that is at the core of the company, and we have what we spent for raising, which once again, it's at the core of the company. So -- and on that, we very much follow the regulations because as of now, Formula 1, what we spent is dictated by the financial regulation. So the assumption here is to basically fulfill our -- the -- is allowed to spend. And we also have an assumption that this cap will evolve over time with inflation. Anything in that respect may change the -- I mean, the reality going forward, but as a starting point is where we are from. In terms of spending for innovation, we are actually predicting something that's very much in line with the past. So it's a kind of a fixed budget for the best innovation we are envisaging in the company. And I think it would be -- it would not be the right thing to do to cap that because that's really our future. In terms of selling and general expenses, we constantly review that. And the growth of the company in terms of its structure that have been going through in the last few years will not be repeated in the next 5 years. I think in terms of structure, we are very much where we thought. However, the digitalization of the company is something that is relevant for us to maintain the level of efficiency in a much more complex word compared to where we were 10 years ago.

Before to pass to Enrico replying your second question. I think it's important to underline also a couple of things that is difficult for us to factor in, but are important. We are strong believers that -- and there are some cases already verified some other will be -- can happen in the next 5 years, but we have to follow, we have to verify first. We have what we call technology epiphany. Technology epiphany is something where with a small delta OpEx you can have a small -- a bigger increase because it's not -- it's like you see everywhere. It's not only a matter a lot of money in the OpEx for a lot of money in revenues. I think this is something we have something in the pipe, but we have to follow the right approach because we have to verify how this can deliver the expected result because it is like a personalization. Personalization is difficult to foresee how the clients are going to react to the personalization. If you were asking us in '22, what is the personalization take rate, and then you see now a posterior, well, there is a gap. And the is one of the reasons why we have been able to deliver 1 year ahead of time. What we have in the pocket talking also about your question, we may have some technology epiphany that can make a change, but we need to make sure that we -- I mean, we cannot foresee too much things that are a disruption. This could be some innovative features that we call technology epiphany. And then...

See very simply, I think the key point is that our clients love to come to Maranello. And I guess, in this today, I hope you get the reason of this -- but not all of them are so close. If we talk about Asia, if you talk about United States and especially cost of United States, for them, it's not so convenient. So the idea that we took since a while is to bring Maranello closer to our clients. So we did some activities, you may remember the Universo Ferrari, where basically we brought all the experience of Ferrari abroad in some locations where clients that cannot fly to Italy can experience exactly what is a 360-degree experience with Ferrari. And we are now also opening 2 other Tailor-made after New York and Shanghai, which is, again, are designed to be closer to our clients. So 1 is going to be in Los Angeles and 1 is going to be in Tokyo, exactly for this reason. Last but not least, which is another step of the journey, is we want to have a coordinated brand perception and experience. That's why we work a lot with our partner to make sure that every single showroom is representing the Ferrari brand in a proper way and given the experience that is coordinating all over the world. I hope I answered to the question.

Thank you. We are now taking Andrea's question, which will be the last for today's presentation.

Andrea Balloni, Mediobanca. I'm comparing your new business plan evolution with one of 2022. And basically, we see that the EBIT path is around half compared to the 1 presented 4 years ago. While basically, your value over volume strategy is unchanged, ASP evolution should offer a great visibility, thanks to F80. And also thanks to all the new model you have just launched, you have e-building that is something that should help you facing the complexity of a business and a larger segmentation. And about content enrichment that is a negative, I guess, that was a negative in 2022 as well. So my point is on top of the lower weight of personalization that is probably the real difference you have mentioned compared to the past, what am I missing that is justifying this different trends in terms of growth for both sales and EBIT basically?

I think that we have to -- you are comparing with '22 when we closed at EUR 5 billion. At that time, the mix was very much unbalanced on mix -- on range cars. And I think that, yes, it was EUR 5 billion and now it's EUR 7 billion like you see. And this is going to evolve more or less at the same time, EUR 7 billion to EUR 9 billion. The time is different, but also the starting point is different. I think that we have to factor in properly, all what we see, what we have, let's say, and the need to have something that give us the freedom and the possibility to modify easily if something has happened. What I mean is that today, we are giving a longer-term visibility. We are -- we have a stronger confidence coming from the order book, definitely like it was in '22. But I think there is a little bit some uncertainty okay, for the future. And we have to be also prudent, allow me to say it this way, in order that 2030 is not in 2 years, and we have to make sure that we deliver on what we commit. This is important. We have the key message, the key overall message of this presentation is that, one, we want to be -- to continue to be unique. Two, we want to embed in our plan the agility that is needed from a manufacturing point of view, from a technology point of view. So we want to make sure that if there is a swing in personalization, if there is an electric on what we do, then we have to be ready to accommodate always preserving the scarcity. We will never -- we say today, like we said 3 years ago, will not become a company making 1 model a lot of volumes on 1 model. You remember when we was the case of Purosangue, we said don't expect us to become a Purosangue company. Okay, we have clearly understood the plug in our strategy, the fact that we need more model to preserve this scarcity and exclusivity. This is the message and this is what we are aiming to. The reason why we put greater than, as you said, on EBITDA and EBIT because there are some opportunities where we are working with. One is the digitalization [indiscernible] perfectly. Another point is also the opportunities you may have on other activities that we are thinking, and we are going to deploy and verify, consider also that with the time to action, the time to reality, allow me to say that this company is able to do and the novelty we are able to bring, we need to see some results before we can plug everything in. So we want to give you a number that you can rely on and that test the prudence and allow us to deliver on what we say.

Maybe the only further element that I may add is that our ambition is to be here for the longer term. So whatever we do has to be in line with the business model of Ferrari. There could be a simple way to grow revenues and margins. For example, expanding the numbers of Icona and Special Series would be something that would help immediately. But then our business model would not be -- I mean, would be destroyed very soon, very rapidly. So considering where we are starting from. So the baseline, which is much higher considering where the product mix is, we train and put in the numbers the assumption that the scarcity model is applied consistently for the longer terms of Ferrari, that means 2030 and beyond 2030. And then reserve some opportunities that try and explain, which I don't think any way would be safe to put as given in the plan. And the agility they have been trying and passes a message should allow us to take this opportunity in case we are able -- and in the market allow us to do so and to react even in case anything goes different in terms of -- I mean overall, market scenario.

You all can be reassured that as we have been clear and transparent so far, we will continue to be clear and transparent. We'll continue to work to reach our goal. Maybe this is the last question you said? No.

Correct.

So I would like to conclude with 1 thing that is the same word that our John said before, is the FestinaLente. We want to make sure that we continue to grow steadily. We are setting an ambitious plan, the same ambitious, but we want also to continue to make sure that we keep and we stay unique in everything we do, and we give the uniqueness to our client, always.

I'm now happy to thank all the thousands of people connected online. So I'm closing the webcast presentation. Thank you all.