Ferrari N.V. (NYSE:RACE) Q2 2023 Earnings Call Transcript

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Benedetto Vigna: Good question. Thank you, Tom. So I start from the first one, the story of e-building and I understand that you want some clarification. So, let’s remember June 2022, we said we are going to be ready for the building in June 2024 and that too will happen. In June 2024, we’ll start to produce something in this line that is different from electric cars. Then end of 2025 we will have in the e-building, we will announce electric cars and clearly the day after — the year after we will have the electric car getting out of that buildings. So this is the schedule and that’s reason why I insisted a lot on an e-building that is on one side flexible because it allows to build different kind of cars, on the other side by using renewable energy, fully renewable energy, it allows us to develop strategic component for our electric cars.

The second about the Purosangue demographics, well the demographics of the Purosangue is not so much different from the overall demographics. What I can tell you is that very often we will see behind the name of the Ferrarista, we will have a name of a Ferrarista and then but most of the time the user will be the partners, the women, because I told those in the previous call when we attended the event of launch of Purosangue in September, very often the people were asking if they could get two because for sure one and only one would have been used by the partners. The third one is about SF90XX. Well, when you talk about electric cars for sure there are three important blocks, one is the battery, one is the engine and then there is another block which is very important is the power electronics in the middle.

It’s not one alone that is making the difference. It’s the interplay of these three elements the way they work together that are — that work to make a difference. In the future as we said in Capital Markets Day, we will have also our own electric engine, F1 derived that will be used together with our new kind of electronics.

Tom Narayan: Okay, got it. Thanks.

Benedetto Vigna: Thank you.

Operator: Thank you for your question. We are now taking the next question. And the next question from George Galliers from GS. Please go ahead. Your line is open.

George Galliers: Great. Thank you and thank you for taking my questions. I had two questions really. The first one was just on special series, given the very strong demand you always see for special series, would you consider having more than one special series in production at the same time, at the moment it feels like you’ve introduced them sequentially, but presumably they would be equally special if you had a special series variant of the SF90 and the 296 in production at the same time, given they are two different models? So that was the first question. The second one was whether you could just clarify where you are in terms of Daytona shipments, out of the total units that you plan to deliver are you roughly 30% through, 50% through or any color there would be much appreciated? Thank you.

Benedetto Vigna: Okay, so, for the special serious we do not — we limit all of the superposition between special series. There is some special series superposition sometimes between the tail of production of the previous one and the ramp up of the following one, seen about the 812 Competizione and the SF90 XX Stradale, but the superposition is very minimal. Okay? They are pretty much let’s say evenly distributed. And then there is the other question, was on the Daytona and the number of units for the quarter compared to the year, I think we can assume they were evenly distributed throughout the quarters.

Operator: Thank you for your question.

George Galliers: Thank you.

Benedetto Vigna: Thank you, George.

Operator: We are now taking the next question. And the next question is from Martino De Ambroggi from Equita. Please go ahead. Your line is open.

Martino De Ambroggi: Thank you. Yes. Thank you. Good afternoon, good morning, everybody. The first question is a general question on the hybrid because you are now in the region of 40% of volumes in hybrid. So, I know a lot depends on the mix of specific models and so on, but is there any big difference between ICE and hybrid profitability, trying to explain a trend today and maybe also going forward? And the second question is on the price mix this year for sure very strong. What’s the speed that you see and we should imagine for next year?

Benedetto Vigna: Okay, I take it Martino. I think it’s important that we explain that you should not consider different margin for different power units. The way we look at the, at our product range and its profitability is very much based on the positioning of each single car irrespective of the power unit that it carries. And with respect to the development of the mix, I think we said at the Capital Markets Day, we are aiming at having a very balanced product mix over the next four years. But this is always our goal for a number of reasons. First, because it allows us to serve our clients the best possible way, secondly, because it allows us to manage the product development and manufacturing activities in a balanced way and ultimately because also the [ph] profitability would move gradually up along with the development of the product range of [indiscernible]

Martino De Ambroggi: Okay, thank you.

Operator: Thank you for your questions. We are now running out of time, so we won’t take any further questions and I would like to hand the conference to Benedetto for closing remarks. Please go ahead.

Benedetto Vigna: Thank you all. Thank you for your time and also for your questions. The second quarter of 23 really represents another important milestone for our company we went to podium at Le Mans, the enthusiastic reception of both for the SF90XX Stradale Spider and the incredible level of attendance to our client events. And this is also fueling our confidence for the development of this years. And now I would like to wish you a good afternoon, good morning and thank you also for your attention. Thank you.

Operator: This concludes the conference for today. Thank you for participating. You may all disconnect.

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