Antonio Picca Piccon: Thank you, Giulio and I’ll try and connect the dots if possible on the first question. First there is not just the sports car pillar. So, when looking at the — our — let me call intra-quarter seasonality, you also need to take into account the unfolding of the expenses of the other businesses, which is basically the — what we have R&D OpEx, that’s an element obviously in driving the profitability in each single quarter. And then there are other elements. When you look at the development of the EBIT margin, you need to take into account also the development of depreciation and amortization, which is not linear over the course of the year, but start and unfold as we present — as we start producing the model that we then deliver.
So, that explains this very strong Q1 EBIT margin compared to the guidance for the full year. And I think the comment I made before may help explain why Q2 is so strong. We see it strong — relatively stronger in relative terms. The second question with respect to cash and the fact that it might end up being a net debt positive I would say at the Capital Market Day, we clearly communicated as well a program — a buyback program of €2 billion that is will have been executed in line with the generation of cash. We have an initial tranche that we are going to complete soon. And then obviously, as the time unfold, we’ll define what to do next. Hope this helps.
Giulio Pescatore: Yes, it does. Thank you. So, can I just follow up on the initial question on waiting list and orders? If I remember correctly, at the time of the CMD, one of the assumptions you made in the target for 2026 was that demand was going to normalize. Based on what we’re seeing today, is that still a fair assumption?
Benedetto Vigna: Yes. I think, we see it as — we don’t see any big variation, either in terms of execution and in terms of assumptions we had with — we made for the Capital Market Day.
Giulio Pescatore: Okay. Thank you.
Operator: Thank you. We will now take the next question. It comes from the line of Stephen Reitman from Societe Generale. Please go ahead. Your line is open.
Stephen Reitman: Yes, good afternoon. Thank you for taking my question. Again on the first quarter obviously, the very strong print you made on the EBIT margin. Obviously, we were kind of like guided towards this would be a weak quarter from a sort of mix perspective. But obviously, you started now selling the 296 GTS, so — which has got a substantial price increase over the F8 Spider which it replaces. So, are we being to see now an impact of your moves on increasing prices on your serial cars? And I think this sort of 296 GTB. And obviously the Roma Spider significantly more expensive than the Portofino M that you’ve replaced as well. And secondly just a question also about the mix, because I thought that looking at your geographic mix, it wasn’t particularly helpful having China I think such a big growth part of that because obviously we know that it’s high revenue, but when we take into account the taxes, I understand that the contribution it makes to the overall group margin is negative or is a headwind.
So if you can comment on that please?
Benedetto Vigna: Antonio will take it.
Antonio Picca Piccon: Sure, Stephen. As I think, I already commented in the past, we don’t look at it at the margin on a single model, but rather these models are priced in their position. And obviously, we try and adjust prices on models that are introduced or any way — well in advance to the time of delivery to our client. So it is a gradual move this one. And then, we should not disregard that even the cost base is changing from time to time. Inflation has not come to an end anyway. We see it visible and the of our margins, that’s an element of attention also for the rest of the year. So the guidance is also predicated upon this assumption. The other question was I think in respect of — sorry. Mix. Yes. I’m sorry. The strong mix adding on EBIT margin in China not visible.
The fact that the positive element that I mentioned in my comment before is that actually personalization came in much better than we would have expected. And this almost entirely offset the negative impact of China of our — on our percentage margin. So, while — when you look at the absolute margins, China is positively contributing, as I mentioned a number of times, this is not the case when we come — look at the percentage margin, but the negative impact in the quarter has been offset by the level of personalization and the margins we have on that.
Benedetto Vigna: This has been a simply important, Stephen. This is a part of the personalization. It’s been really very, very important. We see this trend that helped us a lot.
Stephen Reitman: Thank you. And you can expect a big pickup as well when you have your new paint shop, when you have your new paint line as well?
Benedetto Vigna: Yes, that’s true. That’s also what we said when we met. When we talk about personalization, we’re talking about painting. That is something that you do in the last step of the manufacturing. You’re talking about rims. You’re talking about the trims in the car. So this is very, very important. And we care a lot about personalization, because it’s a way to make the Ferrari more and more personal. And in our luxury industry, this is key. It’s key for the experience we deliver to the client. It is also key to make this car more and more unique and let’s say to deliver the unique experience that the client are looking for.
Stephen Reitman: Thank you, very much.
Operator: Thank you. We will now take the next question. It comes from the line of Martino De Ambroggi from Equita. Please go ahead. Your line is open.
Martino De Ambroggi: Thank you. Good afternoon, everybody. One more question on the Purosangue. You reopened the orders for the strong demand. Does it mean you could revise the volume guidance of up to 20% of total volumes maybe not in the short-term but in the long-term? And on the first quarter, could you tell us the number of Daytonas you delivered? And what should we expect for the ramp-up of the Purosangue in the next few quarters? And if I may very last on the mix effect. Because it’s mix of region, products, personalization, prices, could you roughly split the price/mix contribution very, very roughly?
Benedetto Vigna: Okay, Martino, Benedetto. So thanks for this question. Let’s start from the Purosangue. So we are starting let me say to deliver in next quarter. Clearly there is a ramp-up phase. We will keep growing quarter-over-quarter, more or less at ratio to quarter-over-quarter. This is the volumes that we will keep delivering in terms of increase. We do not plan to extend the life of the cars versus what was originally planned. This reopening of the order was done because they said, we were caught by a positive surprise for this strong interest. So we wanted to make sure that everything – we want to put a little bit of the situation if you want under more control from an industrial point of view. So there is no extension, not at all.
This is the first question. The second was about Daytona. Well, we delivered the third Daytona. The third one that you are asking the split between the geography product, I understand your curiosity. I would do the same question. But I would also understand if you would not reply to me with the exact split. What I can tell you is what I said to Stephen and also Antonio said, the – we see a positive trend in the personalization increase. I think this is in line with the trend also we see in other luxury industries that our client want to have more and more personal-rich car. I mean already our Ferrari were pretty much if you want – each Ferrari is different from others. Now they are becoming even more different if you want. And this is something that we experienced positively in the second – in the last two months of the quarter.
Antonio Picca Piccon: And if I may do not disregard the fact that keeping OpEx meaning selling and general expenses and R&D expenses at a growth level, which is lower than revenues obviously, add to the quality of the margins finally. So we’re very careful on these aspects.
Martino De Ambroggi: Okay. Customization was 18% last year. So in Q1 was how much?
Antonio Picca Piccon: Pardon me? So personalization flat was 17% right? Yes 17%. 18% this year.
Martino De Ambroggi: Okay. Thank you.
Operator: Thank you. We will now take the next question. It comes from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead. Your line is open.
Monica Bosio: Thank you and good afternoon, everyone. Once again on the personalization just a curiosity on which models did you see the higher requests in personalization? And should we assume that the personalization rate trend of the first quarter will keep growing over the next quarter? I’m asking this along with another question. It’s on the different evolution in the deliveries to China. Do you expect a different evolution across the year or the deliveries will be equally distributed across the different quarters in China? And another question is on the cost. I read on the press release that the company is running the renegotiation on the labor cost. I was wondering if you just can quantify if we have some increases over this year and the next one.
And last question is more general on the batteries. In 2025 the company will launch the electrified Ferrari. Can you share with us your view on the different materials of the batteries, if you are evaluating any solutions that look more suitable for Ferrari than others? Any insight would be useful. Thank you very much.
Benedetto Vigna: Thank you, Monica for your question. There are four questions. I will take the first and the last. I will leave the — Antonio to elaborate a little bit more…
Antonio Picca Piccon: If I may love it.
Benedetto Vigna: Okay. So let’s start from the last one so that it’s special. The story of the battery. The battery — the chemical element if you want that we are using, more or less are the same is the chemistry that is a little bit more specific to our needs. And what I can tell you that there are two mentioned that we are following to optimize our batteries. One is the energy density. Another one is the power density. So we don’t have a single chemistry. We have different kind of chemistry a little bit more tailored for our needs considering the two vectors of energy and power. And as I said at the beginning we are on track with our plan that we shared with you the 16th June last year. The first question, which is the trend you see, we don’t see any specific trend by models.
We don’t have also any specific trend by countries. It’s — let’s say, really it’s very much personal. Like I was telling you the our client are making more and more personal the Ferrari, the one they want to drive and the one they want to live. So this is the question — the answer to the question. For the China split and the labor cost, Antonio can be a little bit more specific on this.
Antonio Picca Piccon: Yes. Hi, Monica. On China, our deliveries to China Hong Kong and Shanghai, our deliveries in the course of the year are more or less — a bit less than 10% of total deliveries. And in terms of distribution by quarter, the first and the third quarter are the ones that currently are a bit more loaded than the other two. Don’t take it for granted because we may have slight changes in the allocation but it’s more or less directionally how this should develop over the course of the year. And the last one is labor cost. We are not engaged actually completed the negotiation. So it’s an 11% increase on a cumulative basis over 2023 and 2024, which is impacting this year in the region of 6%. And this obviously is in the numbers.
Operator: Thank you. We will now take the next question. It comes from the line of Thomas Besson from Kepler Cheuvreux. Please go ahead. Your line is open.
Thomas Besson: Thank you very much. It’s Thomas from Kepler Cheuvreux. I have a few questions as well. Is it possible for you to confirm over how many quarters you plan to deliver the update on your lucky customers? That will be the first question or broadly say differently how many units we should expect third quarter in 2023 2024? Second question there was a bigger tailwind from ForEx that I was expecting in the first quarter. Is it still the main scenario to have something broadly neutral for you or do you think we should now see a positive ForEx goods in 2025? And lastly, you mentioned if you have positive element for you over the mid-term as it gives us the opportunity to offer various kinds of portrait solutions to your customers in the mid-term? Could you share with us what is the initial thinking about the long-term proportion of vehicles that could stay with that kind of portrait mode in 15, 20 years’ time, or is it still way too early to discuss that?
Benedetto Vigna: Okay. Okay, Thomas. So the first one, the number of Daytona per quarter will be more or less between 30 and 40. The second — I think the third one — the tax Antonio will elaborate. The third one is about the fuel. Well, last year before our Capital Market Day we thought extensively on this point, because we believed already at the time that ICE can — there is — can deliver still a lot of things. I mean there is a lot of way to go. So that’s the reason why we said, if you remember, that in 2026 and 2030 we were always having in mind and we shared our plan what is our offering in terms of ICE. The decision — the recent decision of European Union of — about e-fuel is very much welcomed by us. If you want, it’s a confirmation of the goodness of the strategy that we shared with you last year.
So we have no change. We have no changed. We have — the reason why last year we presented the debt split between the different propulsion was because, based on our experience, let’s say, the transition — the technology transition, especially when they touch the energy side, are not digital. It’s not something that can come from one day to another. It takes time. So we are really — we welcomed a lot, the decision of e-fuel, because this can — is a further substantiation of our strategy. Antonio, about the —
Antonio Picca Piccon: Yes. On the FX, Thomas, I think, we take it with the benefit of all of us living in a world of significant financial volatility. If the spot rate of US dollar to euro remains more or less where we are today, we expect this to remain — to have more or less inflationary impact year-over-year. Obviously, it depends, if it goes — if the euro strength becomes much stronger, this could be an assumption to be reviewed.
