Benedetto Vigna: Personalization, Daytona for Antonio. I take the ASP. So as I told you, the answer to the first question, yes, it’s confirm. We increase the price of the personalization exactly like you understood. When it comes to the price of the cars, don’t forget that last year through all the year, we’ve been increasing the price. And it’s also important that we consider that on the other side there is a client that has been, let me say, looking at Ferrari and we have to behave properly when it comes to the pricing increase. You already executed and we have to be respectful of our clients. While for personalization, in Daytona, Antonio, you can…
Antonio Picca Piccon: On personalization, you got me right. Meaning, in 2023, we are almost at 19% and 2024 is based on an assumption that we’d maintain more rest of that rate, visibility as of now is in that direction. And the last question on Daytona, yes, you are right, we expect to grow there to move from 30, 40 to approximately 60 third quarter and next year.
Operator: The question’s come from the line of Monica Bosio from Intesa Sanpaolo.
Monica Bosio: The first one is on the EBITDA margin that you guided flat this year for 2024. I understood that this is due to a cost base related to the production of more complex product. I can imagine that there is also a weight of the cost of labor. So I’m just wondering if you can give us some indication, what is the weight of the cost of labor on this flattish guidance, any — it could be useful for us? The second question is on the lifestyle. In the preliminary remarks, Benedetto anticipated that you’re expecting an increase in the lifestyle revenues. Can you please help us to figure out growth rate for 2024? And third question is on your advances from SF90 XX and the Spider. I remember that in the last call, you said that you are going to collect advances on the car. I’m wondering if you can give us any indication on the amount and on the time frame across the year.
Benedetto Vigna: Antonio will take one and three, and then I will reply to your number two.
Antonio Picca Piccon: It’s not due to just higher cost base at all or related to — it’s not related to the additional complexity of the production. I mentioned basically three elements. One, cost inflation. Cost inflation is still there. It includes cost of labor. We have an agreement in place with the trade unions for an increase year-over-year of 4%, which is embedded in these last function. But even component, and generally speaking, the change that is still embedded in current pricing, the impact of the inflation that has been going through the economy in the last 12 months. So that is an element, it’s not a complexity. The second one are expenses for brand development, including lifestyle, of course, we are investing to grow the businesses [Technical Difficulty].
And also our digital infrastructure, we are growing and we need to grow even in that respect, including a significant rejuvenation of what we currently use. And the last element, which is [binding] both cost of goods sold and R&D expense in the P&L, are the expenses for the Formula 1 since the budget cap, which was originally meant to decrease over time, is actually growing since it has been agreed around the various teams to index spending to inflation. So year-over-year, it’s gone negatively. And in terms of your last question on the advantage on the SF90, yes, we are collectively — we’ll not disclosed yet which are the target. I just said year-over-year take into consideration that the difference will be negative. So 2024 smaller than 2023.
Benedetto Vigna: So Monica, for the lifestyle, let’s say, 2023, three important things. Number one, we improved the retail performances, because there is more traction towards our collection. Two, we saw there is, I mean, a strong — a successful activation when you have event in conjunction with our racing and brand event. And three, we had record museum visitors, around 750,000, which is a lot. In 2024, if I were to define it, I define it as a year of progress because we have a list of activities that are aiming to build the scale and also to expand the network and let me say, our network, while, if you want, we elevate the visibility of our brand. So it’s an year where we are aiming to grow as well. And also in this respect, we are in line with what we declared in June 2022 with our target to double this activity — the revenues of this activity by 2026.
Monica Bosio: If I can add just a follow-up on the country mix. You said that the country mix will keep positive in 2024. I’m just wondering if it will be similar to the one seen in full year 2023?
Antonio Picca Piccon: I’d say, as of now, I wouldn’t consider country mix being an additional positive in [2024], more or less flattish.
Operator: And the question’s come from the line of George Galliers from Goldman Sachs.
George Galliers: Obviously, one of the standouts of 2023 was the very strong price/mix. And we look at your five year plan, you were targeting around EUR700 million improvement in EBIT from price/mix by 2026. We’re only two years into the plan and you’ve delivered close to 65% of that target. Obviously, on this call, you’ve been mentioning new initiatives around personalization and pricing, and there are clearly still several important new launches to come. So is it fair to say there is a decent amount of upside to that original EUR700 million that you flagged back at the CMD? Second question was also relating to something you talked about at the CMD, which was how you were going to leverage partnerships to co-develop best-in-class solutions with respect to electrification.
I was wondering if you could give us some insights into how those partnerships have evolved. Have there been any unanticipated challenges? And conversely, have there been any areas where your partners have really surprised you positively? And if yes, would you be able to give us any small examples or snippets?
Benedetto Vigna: I take the second one and the first one, I will ask Antonio to refine. So you remember very well during Capital Markets Day, we clearly said we leveraged the partnership for electrification but also for other technologies, because don’t forget that we are making luxury cars and there is much more than a simple characterization. So we are doing lot of innovation also on hybrid cars, on thermal cars. So having said that, we are having a positive surprise on the willingness of the partners to work with us. We have partners in different places going from new generation materials to new generation, let me say, advanced electronics to advanced display. And we are having — as I said, we are very positively surprised by all our partners, and we are working with partners in Asia, in USA and also in Europe.
I can mention the one that we publicly released, [indiscernible] was with Samsung for the next generation cars. But there is another one I cannot mention. I can tell you that we are working also on the way material [Technical Difficulty] of the cars are realized, because as we said multiple times, carbon, the sustainability for us is important. We want to be carbon-neutral by end of this decade. And we realized that to achieve our goal, to go, to proceed along our way we need to work with partners that are also involved in the material preparation. So very positive surprise across the globe, very happy both because I have regular meeting with them. We are at on our side, they are also happy on their side. So Antonio, you further…
Antonio Picca Piccon: On strong price/mix, I mean, if we compare with our assumption in the Capital Markets Day, you are right, we have been doing better. And I think we’ve flagged a number of times this year that personalization particularly surprised us in terms of their strength. However, it’s fair to say that even the cost base has been much higher than we would have expected. The positive, of course, is the fact that the improvement from personalization and pricing has been such that allowed us to more than offset the impact of inflation. Now if we look forward, is there an opportunity for an upside on personalization? If the trend continued the way we have seen, potentially, yes, in terms of revenues. Whether this will flow through the P&L? It will very much depend on what happens to the cost base, exactly parallel with what happened in 2023.
Operator: Thank you. Due to time constraint and to keep the conference within the hour, we now end the question-and-answer session. I will now hand back to Mr. Benedetto Vigna, CEO, for closing remarks. Thank you.
