Michael Binetti: I guess, first off, Antonio, could you give a little context around the guidance for free cash flow lower this year? Is there — I’m wondering if there’s an acceleration in some of the development spend and maybe any delta in the deposits for supercars included in the free cash flow outlook or excluded? And then on personalization, maybe just a little bit on the strategy there going forward after a really good year on personalization last year. Is there an opportunity to take some pricing to help offset some of the cost increases that you’re seeing across the business there?
Benedetto Vigna: I will take the second one, the accelerated question, Antonio will elaborate. So yes, the personalization — I mean, we are a luxury company, of course we have to invest, personalization is an important vector of growth for us. And it offers also an opportunity for pricing out. And we started this year to review the price up in the mid digit area. So percentage is important, yes. Two, we are going to catch the price for this important dimension. The free cash flow, Tony?
Antonio Picca Piccon: I’ll try and explain the three reasons. The first is clerical, we are just paying more taxes. The second one is we are spending more on CapEx and 150 is what we have in mind for the year. And this is just because we have products that are now very close to the launch and number of products. And the third is the revenue cycle, this is just timing basically. There are, I mean, we collected our — quite a bit in 2022 and 2023. We have kind of net reversal and in addition some new advances collecting in 2024. But the negative — the impact overall is negative, modestly negative.
Michael Binetti: And I guess, if I could squeeze one more in here, I guess, with the e-building still on track for midyear. But can you tell us what we’ll see early on as far as — as you guys start to commercialize that? And what are some of the first things we’ll see from outside of the company as you guys start to look to commercialize that?
Benedetto Vigna: This morning, me and Antonio were in the building. So we are on track. It’ll be up and running starting this June. And this will be a place where we will assemble not only electric car. Electric car, as you know, will be ready if we are on track for Q4 2025. So also on the electrification journey, we are fully on track with our plan.
Operator: And the question’s come from the line of Susy Tibaldi from UBS.
Susy Tibaldi: I have three, I’ll ask one at a time. So first one on the demand, within the luxury sector we are seeing some softening of demand, but it appears that the higher end exposed to the wealthier cohort is still doing extremely well. And it seems also from your opening remarks that based on residual values, some feedback from dealers, you’re not really seeing anything. But just to double check, is the economic picture at the moment having any impact at all on the Ferrari customer, is there any comment, any additional color you can provide?
Benedetto Vigna: Look, as we said in the call myself and also Antonio. The demand, overall, the book is pretty strong, it goes well into 2025 [Technical Difficulty] at the end of 2025, in some cases even more. We do not see any negative signal on this topic. We keep, let’s say, doing as a planned. Clearly, there is not — in our client base, there is not an impact in any kind of — in any respect. And this is if you want more [Multiple Speakers] we have been — we had the dealer annual meeting end of November, we had also the — we have been visiting several dealership in USA, in Asia and different countries in Europe and there is really a strong traction toward our brand.
Susy Tibaldi: On the margin guidance for 2024, which basically implies flattish margin. I wanted to understand if your core spare parts business is also seeing flattish margins, or perhaps that core business is seeing some underlying improvement, but then is offset by the dilution of some of the other segments where you are choosing to invest a little bit more. So it’ll be quite interesting to understand the dynamics in your various segments.
Antonio Picca Piccon: [Multiple Speakers] the explanation, Susy, I try and explain it. So product mix and personalization are [Technical Difficulty] but we expect the cost base below that to impact us and to flatten the margin. If we wish within the cost of goods sold is just the budget cap on — which is growing on the F1 racing activities that is growing year-after-year and in the upper side of this year.
Susy Tibaldi: And the last question. For 2024, when we think about the phasing, is it fair to assume that the year is going to be a little bit more front end loaded, given the mix evolution or is it going to be quite similar quarter-on-quarter?
Benedetto Vigna: I don’t see a significant difference yet and there might be nuances, but no significant changes. Usually, Q4 remains slightly softer, particularly in terms of volume allocations. But as of now, nothing to flag.
Operator: And the question’s come from the line of Stephen Reitman from Societe Generale.
Stephen Reitman: Again congratulations for the very strong result, also congratulate you also the quality of the result. And we certainly noticed the positive impact from R&D capitalization was considerably lower in 2023 than in 2022 or ‘21. So points to a higher quality there as well, I think. A question, you mentioned about the Purosangue has now gotten to a cruising speed in terms of production. Does that suggest that we are on track to see that reach the 20% of the sort of annual sales? Because it looks like in 2023 it was only 100, so that’d sort of ramp up. And if you’d comment on what the personalization levels looking like. I imagine that people are paying a lot of money in terms of personalizations in order to secure bill slots as well for these in terms of to make their orders attractive.
And secondly, if you could comment on China. You did mention that you are strategically looking at that market in terms of also — managing in terms of the margin implication on sales in China. But I think there was an expectation that sales were going to maybe increase a little bit in the fourth quarter, because they’d be deferred it from the third quarter in 2023, but we actually saw quite a big drop in 2020 in the fourth quarter. So I’m just wondering if you could say, are there any issues about sort of like the demand in that market as well?
