Ferrari N.V. (NYSE:RACE) Q3 2023 Earnings Call Transcript

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And what we are doing with the team here on the commercial side is exactly meant to reach this goal. I also have to say, and I wanted to share with you, that when I visited some dealerships in the last quarters, it’s becoming more and more frequent that the dealers are having people whose [MBO], whose yearly KPI are based on the number on the pre-owned car that they keep purchasing. So I think there is even more and more attention also from our dealers and clearly also from us because we will keep always the number of car limited. So, as I said, the new car we make as well as the one that our colleague before us, they have the same dignity and they must be cared in the same way like being all children of the same family.

Operator: The last question for today comes from the line of John Murphy from Bank of America.

John Murphy: Benedetto, just kind of follow-up to that in sort of the follow-up to your backlog being so strong, you think about price and mix, I mean, there is opportunity to manage that sort of on an interim basis. But over time, do you think you need sort of like the “entry level product” like a Roma? I mean, it’s a beautiful vehicle, but I mean would that be the kind of product that might not make it into the product portfolio in the next 3 to 5 years? And then the second question is, as you see the strength in the used market, is there a possibility to start doing personalization in the used market, maybe around wheels and interiors? Obviously, you can’t do paint there or maybe you could, that could actually augment revenue and support residuals further in the secondary market.

Benedetto Vigna: Thank you, John, for the question. Yes. I’ll start from the second one, use the market. We see this trend also to do personalization in the pre-owned. They may change the rim. They may change something in interiors, but also some client they want to add, for example, some protective layers on the paint. Last week, I was visiting the location where we apply this protecting layer. And one of this car was exactly a pre-owned cash that was where we were applying a protective layer. The second, I believe that the Roma is a good entry model. I think that we don’t need to go lower. I think that the strategy for a company like us that is playing, I would say, in the ultra-luxury space is such that we needed to make our car always more and more emotional, always more and more unique in terms of performance, in terms of, let me say, astonishing the signs and always set in mind the sustainability.

I think these are — there are 3 wheels that must work in the same way at the same speed. The driving emotion, driving trails, the performance driven by engineering and the beauty of the car driven by design. These are the 3 wheels that we’ll keep considering. And I think we already have an entry level with this Roma.

Operator: Thank you. Dear speakers, there are no further questions for today. I would now like to hand the conference over to Benedetto Vigna for any closing remarks.

Benedetto Vigna: So thank you all for your time today, and also for your very insightful question. Thanks a lot. The strong Q3 result and also the desirability of the brand that we’ve been debating during this one hour are basically fueling our confidence for the development of the year and also looking-forward. So thanks a lot again and I wish you a good afternoon or morning. Thank you so much.

Operator: That does conclude our conference for today. Thank you for participating. You may now all disconnect. Have a nice day.

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