Ferrari NV Aktie

Good day, and thank you for standing by. Welcome to the Ferrari 2026 First Quarter Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Nicoletta Russo, Head of Investor Relations.

Thank you, Nadia, and welcome to everyone who is joining us. Today, we plan to cover the group's Q1 2026 operating results, and the duration of the call is expected to be around 45 minutes. Today's call will be hosted by the group CEO, Mr. Benedetto Vigna; and Group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website, and at the end of the presentation, we will be available to answer your questions.

Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation, and the call will be governed by this language.

Having said that, I'd like to turn the call over to Benedetto.

Thank you, Nicoletta, and good morning, afternoon to everyone listening to us today. Three are the key messages I would like to highlight in the current uncertain environment. One, we delivered strong and growing Q1 earnings supported by mix; two, our order book further extended; and three, we confirm our guidance for the year.

How do we navigate the uncertainty of our present times? Well, we rely on three fundamental pillars of our behavioral model, a clear focus and strong discipline; second, a nimble and flexible approach; and third one, a united and cohesive team with four wheels on the ground. In volatile times, priorities can shift quickly, with the risk of losing focus of what truly matters in the long term. At Ferrari, we continue to execute according to our plans. Whether we are launching a new model, opening a new store or competing on track, we keep four wheels on the ground and focus on what makes our brand stronger over the long term.

Dealing with the current context requires a nimble and flexible approach. This has been particularly true in managing the Middle East situation. Since the beginning of tensions, our utmost priority has been the safety of our clients, dealers, partners and employees. In the region, we have an office with 11 Ferrari colleagues, and we serve 7 markets through 7 dealers, which employ more than 200 people. We provided the full support and maintained a strong relationship with our community. We kept the showrooms and workshops open, and we continue to organize test drives for all our eager clients. In the last 2 months, we did more than 500 test drives.

Indeed, in the region, our deliveries have been flat year-over-year despite the conflict. In light of temporary logistic challenges, thanks to the precious support of our dealers and logistics partners, we have identified alternative solution to continue serving clients in the region, while promptly delivering to other markets. This was possible, thanks to the visibility and flexibility granted by our business model as well as our global presence and careful allocation strategy. A special [Foreign Language] to all the people in the Ferrari ecosystem, not only Ferrari colleague who are supporting us daily.

Our clients from all over the world have continued to attend our events and to show interest in our brand. This translates into continued order intake that puts us in a very solid position with an order book that further extends towards the end of 2027. We posted strong financial results in this quarter with revenues and profitability both up year-over-year and in line with the trajectory of the 2026 guidance.

Antonio will give you the full details in a moment, but let me highlight three key numbers. The revenues were close to EUR 1.85 billion. EBITDA surpassed EUR 75 million (sic) [ EUR 720 million ] and industrial free cash flow was more than EUR 650 million. None of this would have been possible without a united and cohesive team. And this is the spirit with which we are approaching the final step of the reveal of the Ferrari Luce.

On May 25, a selected group of Ferraristi and prospects will have the opportunity to experience the world premiere in Rome. It was exactly in Rome on May 25, 1947, when our first car, the 125 S, won the first race with Franco Cortese, who said this car revs much quicker than the 4 and 6 cylinders. It looks like it has an electric motor. Ferrari Luce is far more than a new model, and it's far more than electric. It's the perfect materialization of the purpose that motivates us at Ferrari every day to [ continuously ] redefine the limit of possible, blending together tradition and innovation in a unique way. It is the convergence of so many incredible technologies and the passion of so many people.

For the Ferrari Luce, we registered over 60 patents in many different areas from electric engines to inverters, vehicle dynamics and battery integration into the chassis, from steering wheel to OLED displays and simpler user interface, from car glass windows to wipers. There is not a single dimension of the car that has not been re-thought by the team in an innovative way. Still a few weeks of patience, and then it will be visible to the entire world.

But even the most innovative technology is meaningless without purpose. Ours is to create emotions. This is where we started when we first imagined the Ferrari Luce, and we believe that we succeeded as we are fully aware that the clients will be the ultimate judges. There is much anticipation and curiosity from clients, both long-standing and prospect, and we are very eager to begin this new chapter at the end of this month.

This launch follows the unveil of the Amalfi Spider in March, which was the first of four launches we have committed to do for this year, in line with our strategic plan. The Amalfi Spider exemplifies the Ferrari sporting lifestyle in an open-top configuration. It's a seamless blend of performance, elegance, driving pleasure, ease of use and versatility, another model with a lot of innovation because for us, innovation is key in everything we do. Innovation means also listening to our clients' preferences. A perfect example is the reintroduction of the physical button on the steering wheel, a feature we are making available for all models.

And talking about unique features, a few days ago, we presented the Handling Speciale Package for the Purosangue. This exclusive personalization package will contain several vehicle dynamic enhancements and design elements for the Ferraristi who decides to further enhance its sporty nature.

But before turning to racing, I would also like to confirm that since last March, we are testing all our production cars on our recently built e-Vortex with clear advantages for our clients in terms of quality, for our test drivers and local community in terms of safety and for the environment in terms of sustainability. And just remember that 1 year ago, the e-Vortex was only a beautiful project on a piece of paper. I mention this as a further demonstration of our agility and nimbleness stemming from our relatively small dimension and geographically co-location in one place.

And now turning to racing, we have kicked off the 2026 seasons with podium finishes both in Formula 1, where we see the initial encouraging signs of our progress under the new regulations and in the World Endurance Championship, which began in Imola, our home race. And talking about the new beginnings, we recently unveiled delivery of Hypersail, a project in which innovation, performance and design research come together to define a new frontier in ocean sailing. In lifestyle, we are continuing to execute our strategy with consistency and sophistication. The opening of the new flagship store in London's Old Bond Street is a testament to this. When you enter the store in London, you enter the Ferrari world.

We continue to look ahead with the focus, discipline and energy that are required in the current context and confidence in the long-term opportunities ahead of us while always keeping the four wheels on the ground. And now I hand over to Antonio to review the Q1 results before our session of Q&A. Thank you.

[Foreign Language] Benedetto, and good morning or afternoon to everyone. On Page 4, we show the highlights of the first quarter, which represents another strong start to the year. All our business dimensions contributed positively with the sport car mix particularly robust and a visible contribution from both racing and lifestyle activities. We achieved these results in the current geopolitical and macroeconomic environment, also leveraging the flexibility and visibility of our business model, as Benedetto mentioned.

Let's look at the results in more detail. Page 5 presents the Q1 shipments breakdown and model changeover that we are executing as planned and in line with what we commented at the beginning of the year. The cadence of our deliveries throughout the year has been deliberately designed to ease the model changeover. This has resulted in Q1 deliveries being slightly lower than last year when in contrast, they were [indiscernible] high. In any case, total Q1 deliveries were not impacted by the outbreak of the geopolitical crisis in Middle East as we leveraged our allocation flexibility. Indeed, we tackled the logistics challenges in the region, acting on two different fronts.

First, during the first weeks, we brought forward certain shipments to other regions. And second, we identified alternative logistics solutions, including the rerouting of sea freight and the use of air freight to keep on serving the region as we are currently doing. Thanks to such actions, our shipments for the quarter were in line with our plans.

In the quarter, deliveries of the Dodici Cilindri family, the Purosangue and the SF90 XX family increased. The 296 family and the Roma Spider decreased in accordance with their life cycles and the F80 was in ramp-up phase as per our programs. Finally, we commenced the first shipments of the 296 Speciale family, the Amalfi and the 849 Testarossa.

On Page 6, the net revenues bridge shows a 6% growth versus the prior year at constant currency and a 3% growth, including the headwind from currency, mainly related to the U.S. dollar and the Japanese yen. The increase in cars and spare parts was driven by the richer sports car mix, including personalization with a robust country mix supported by Americas. Personalizations accounted for approximately 20% of total revenues from cars and spare parts at constant currency and were particularly relevant for the SF90 XX family and the Purosangue, driven by the adoption of carbon and special paints.

Sponsorship, commercial and brand also increased, thanks to higher sponsorships and lifestyle activities, mainly driven by licenses and a positive one-time effect on commercial revenues. Other revenues were also positive and were driven by the rental of engines to other Formula 1 racing teams according to the renewed agreement with Haas and the new one with Cadillac.

Moving to Page 7. The increase in EBIT was mostly driven by the very strong mix/price variance, which included the already discussed personalizations and country mix as well as a positive product mix net of the higher U.S. import tariffs introduced in Q2 '25. In detail, the product mix was sustained by the ramp-up of the F80 and higher deliveries of the SF90 XX and Dodici Cilindri families and lower deliveries of entry-level models, namely the 296 family, partially offset by the phaseout of the Daytona SP3 and the SF90 Spider as well as lower units of the F499P Modificata. Other was positive mainly thanks to racing.

Both were partly compensated by the planned lower volumes, higher D&A in line with the start of production of new models and higher SG&A to reflect marketing activities organized in the quarter, including, among others, the second step of the Ferrari Luce reveal, the launch of Amalfi Spider and the opening of the London flagship store for our lifestyle activities. Percentage margin stood at remarkable levels, including the headwind from FX with EBITDA margin at 39.1% and EBIT margin at 29.7%, and they were even stronger at constant currency.

As per Page 8, our industrial free cash flow in the quarter was very strong and supported by the increase in profitability and a positive change in working capital, including a still positive net effect from advances. This was partially offset by capital expenditures, which are mainly focused on product and infrastructure development. In this respect, let me note that the construction of the new paint shop is progressing as planned. We have completed the external walls, and we have started to install the equipment.

At the end of March, the company was in a net industrial cash position for approximately EUR 390 million, also including the share repurchases occurred in the quarter. As a reminder, the net financial position at the end of Q2 will also reflect the dividend distribution of approximately EUR 640 million following the approval by the AGM and the ongoing new tranche of the share buyback.

Turning to Page 9. We confirm our guidance for the year, also reflecting the current visibility related to the Middle East situation. Being flexible is a key distinctive asset of our business, and it is exactly in this situation that we can leverage it. As such, compared to our initial estimate, we have adapted our planning for the year, resulting in a more evenly spread profitability between H1 and H2 following the stronger country mix determined in Q1. Today's strong results testify once again, the uniqueness of our business model. Despite the ongoing challenges posed by the global scenario, we continue to look ahead with full confidence.

Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Nadia, we are now ready to start the Q&A session. Over to you.

[Operator Instructions] And now we're going to take our first question, and it comes from the line of Ed Aubin from Morgan Stanley.

Just one question for me. If I understood correctly, Benedetto, I think you said that the deliveries in the Middle East were flat year-over-year, which is quite an achievement. But when I look at deliveries in total in EMEA, I think they were down by 243 units. So I guess my question is, could you please provide a bit more color on the European markets in Q1 in terms of units? And then in Q2, what do you expect for Europe and I guess, the Middle East? Middle East might be a bit difficult to predict, but just your sense.

Thank you, Edouard. So the first one, yes, we have been able to keep the delivery flat year-over-year on Middle East, and this is one that you can see [ easily upside. ] But there are also other important points that I would like to highlight. Number one, the number of test drives that the people were eager to do in the 7 countries of the Middle East. As I said, more than 500 test drives has been done. And this testifies once again the strong attachment to our brand.

The other point is that if you are going to see the order book, it's having a good pace over there. And there is nothing strange, nothing abnormal on the cancellation. So the situation over there is pretty much under control. And I have to say that this is also because of the -- thanks to the support of our logistics partners that have been able to keep to deliver the cars to the client. So this is for EMEA, -- for the Middle East.

For EMEA, well, I think that you may remember in the last call, Antonio said that we have different model in ramp-up phase. So there are different dynamics and different kind of demand from different clients in different parts of the world. So there is nothing, let me say, that was not planned. If not, the fact that we are ramping up a lot of new models, the one that we launched last year. So everything is proceeding as planned. And again, thanks to a lot of partners around us.

So this is for me important to underline because we are keeping alive all the logistics over there. And this morning, I got a WhatsApp from a client that was extremely happy to have received the car for his birthday. So this makes us very proud. And also, they understand that we put the client at the center of what we do.

Now we're going to take our next question. And the question comes from the line of Michael Binetti from Evercore ISI.

Antonio, could you speak a little bit more about your last comment there that relative to where we were 90 days ago, the spread and profitability has moved more even for 1H versus 2H. Maybe what's moved a little bit there? Our understanding coming off the pre-close call is that we didn't -- the adjustments you guys made to pull some of the units into the U.S. to help in the quarter didn't come out of the second quarter, hopefully out of 2H. Maybe just some understanding there of what the moving parts were. And then if you could confirm, is the second half still a higher price/mix than the first half for the year?

And then I guess backing up, Benedetto, on electrification, there's a new push in Formula 1 and with the FIA to go back to V8 engines with a very small electric and hybrid component by 2030. A bit of a 180 from the current engines that are 50-50, some of the other manufacturers are on board at this point. I'm curious to get your view on how that influences your hybridization and electrification thoughts for the road cars at Ferrari longer term?

Mike, let's wait for Antonio and then I come back...

Michael, I just said that we expect now profitability to be a bit more evenly spread between H1 and H2. So we're talking about absolute value of EBIT or EBITDA better.

And with respect to the reasons why, it's just that in order to adjust for the initial difficulties in delivering to the Middle East. We have been bringing forward to other regions some cars. So there has been an impact in terms of product mix and overall -- and country mix. And that obviously has an implication. We still see H2 slightly better in terms of mix compared to last year, but we'll see as we go. That's the -- a bit more -- a bit better in the first half compared to what we said at the beginning. And obviously, on that, it's not just the redirection to other countries, but even the fact that these models were more personalized compared to others. So it's a mix of country and personalization that matters.

Just to follow that before we go to the other question, Antonio, is 1Q still the low point on units for the year on the year-over-year decline...

No, I will not go into that detail, Michael.

And Benedetto, on the electrification?

Look, I think that we believe in the three propulsion going ahead. We already knew about this discussion with FIA. I mean this is not something that we view right now, but this is a discussion that is going since a while. So in October, we don't change our view of the last October, okay? I think that there is a need, for sure, to review a little bit every 5 years like they do, the regulation over there in FIA, but there is no implication for the road car and not at all for our strategy.

Now we're going to take our next question. And the question comes from the line of Monica Bosio from Intesa Sanpaolo.

I will ask one at a time. The first one is on the supply chain. I was wondering whether the company has seen some supply chain shortages? And on the back of this, there is a mounting inflation. I was wondering how -- if the company can give me an update on the industrial cost and also on the ForEx impact that was expected to be EUR 200 million this year. And this is the first question.

The FX, Antonio will...

We still see that level of headwind because of the FX, Monica.

For the other thing, Monica, we don't see -- we don't have problems for the supply chain, and we don't see this inflationary force moving up. So that's where we are.

I would like to say also that this is important because we always take care, I would say, of the suppliers. And this is also one of the reasons why they are supporting us when the things require a strong cooperation in unity among all of us. I think that this is important. When we say we believe in [indiscernible], we mean it. We don't just say to do brand activism or whatever. We believe in it, and we act coherently with what we say.

Perfect. And on the industrial side, on the order book evolution, I was wondering if there's a model which is mainly driving the order book increase. And about the model changeover, the first quarter was impacted by a relatively low weight of entry models. I was wondering if there is a quarter that could be more impacted by the entry models, maybe the second quarter? Just some flavor.

Antonio...

Well, maybe I comment on the fact that there has been some -- there are some model phasing out and others phasing in. So in terms of the lowest number of deliveries of new models, I would say that Q1 is certainly the one where we have the lowest impact. And then they are going to grow over the rest of the year. I'm not sure about your first question. Were you asking about the Luce or...

No, about the order book evolution. If there is a model which is mainly driving the order intake and if you get additional clients, if I may ask?

Yes. Well, actually, all models are growing the order book as of now. There are some that are already sold out and others that are growing as we go in terms of introduction of the model.

Maybe what we can add, Monica, as a color about the -- we have a lot of new clients that are coming on the Ferrari Amalfi. And let me say, out of this, there are some clients coming from some specific brands, but that's nothing more than this. No other pattern, if not what Antonio was telling that we see a strong -- a very good reaction from all the model we unveiled last year.

Now we're going to take our next question. And the question comes from the line of Stephen Reitman from Bernstein.

I have two questions. First of all, just some clarification again on the comments about the H1, H2. Now obviously, I know that you think very much more in long term and for the year as a whole. But obviously, the comment that was made that the year is going to be more balanced between H1 and H2 has caused quite a reaction on the share price.

So just to get some clarification on this. Are we suggesting that Q1 was certainly better than had originally been anticipated? And we'll see what happens with Q2, but you're not necessarily suggesting that we were taking away growth from H2 and putting into H1, considering that the cadence of the increase in ramp-up of F80, the launch of 849 and obviously, these vehicles hitting the U.S. market. So some clarification on that would be very helpful.

My second question is about Luce. We're always -- we're very much looking forward to seeing this vehicle. Can you talk about the people you've invited among your collectors to this event? Have any people actually refused to come along to this or are not interested in electric cars? Or is that you're seeing interest right across the board among the collectors and other people you've invited to this event?

I take the second one, Stephen. And so the Ferrari Luce actually, where we are overbooked. We have clients, new clients and we have also some clients of Ferrari. We invited the new clients and existing clients. I'm telling you this is overbooked because just this morning, we found -- I mean, we had a request for additional 100 people, but I mean, we are literally overbooked. I think that what the team did in explaining the car through different episodes, the three episodes that you may see on Internet, has been very pleasing and explaining in detail of what this car is doing.

So in Rome, we'll have a lot of people that are eager, looking forward. You cannot imagine how many messages we are getting if they can get something ahead of time. So -- but we still need to wait 2, 3 weeks, 20 days. And then the entire world will see what this car looks like.

With respect to your first question, Stephen, still within the guidance that we have given for the year, we just adapted our planning in terms of product mix and country mix allocations. So it's a matter of -- I think I said slightly more balance between H1 and H2. If not, this is the meaning anyway. So let's see simply the result of having favored Q1 in terms of country mix, because of the adaptation that we had to take in respect of the initial weeks of the conflict in the Middle East. I hope that helps.

So yes, so the -- in general principle that just the cadence of launches of these vehicles, like, for example, the 849 Testarossa obviously has more of an impact in the second half of the year simply because of the normal delay it takes to get to the U.S. market?

Yes.

Now we're going to take our next question. And the question comes from the line of Henning Cosman from Barclays.

Congratulations on what I think is a very strong result. First question, perhaps on the underlying assumptions. You've already confirmed FX. Can I ask perhaps about order book? You said it's further extended. You still talk about end 2027. I believe you also said end 2027 at the full year results stage 3 months ago. So perhaps you can just comment about -- is that -- is the further extension in line with your expectations? And can you perhaps talk a bit about the Amalfi Spider and Testarossa specifically?

And also on personalization, it's again holding in very strong, 20%. We had expected for it to perhaps come down a little bit, but it isn't. Perhaps you can comment a bit on the visibility. I think you have around 3 months. Is it still holding in nicely in the order book as far as you can see? That's the first question.

And then secondly, perhaps you could, Antonio, just comment on that one-timer that you mentioned in the revenue bridge. If you could please quantify that and say what it was and if there was an impact in the EBIT bridge as well and how much or how large that might have been? And looking forward to seeing you in Rome.

Thank you, Henning. So I'll take the first one. The order book is holding very nicely. It further extended towards the end of '27, which has been extending -- if I compare where we are -- where we were, where we are, there is an additional extension. So it's drifting ahead. So that's good.

Coming back to your observation and question about Testarossa and Amalfi Spider, the personalization. Testarossa and Amalfi Spider are proceeding as planned. The one that is a little bit more difficult to plan, but we see that many clients like to personalize more and more the cars. And this is a little bit more difficult to plan because usually, the clients decide in the last quarters before, let me say, they are called to finalize everything when the car is entering the production cycle.

So everything is planned, but the personalization per se are not plannable because we want to leave obviously, the freedom to the client to personalize. You may remember that what we do on the supply side is to make sure that we are able to accommodate some swing on the personalization of the client so that they can -- they have more freedom. So the customers, the client at the center for all what we do. The second is -- Antonio.

Yes. And the size is less than EUR 10 million.

Okay. Great. Would you allow me to squeeze one on U.S. tariffs. I think last time you were very quick to obviously update your commercial policy. We haven't talked about it today. There's that threat of an additional 10% to 25%. I don't know if it's too sensitive a subject or if you could comment at all that what you would be waiting for to do something there or you don't expect it to materialize? Just maybe some color if you could.

Henning, three words, we are ready. As soon as the things are final, as soon as the timing is final, we are ready. We were ready, let me say, 1 year ago where we did not have the experience we have now. So since we -- usually we learn from the past, we are ready. So we are waiting for the final decision, and then we will proceed accordingly, keeping always the client at the center of what we do. That's fundamental. [indiscernible] We do today and we'll do in the future.

And the next question comes from the line of Thomas Besson from Kepler Cheuvreux.

Could you share with us if you already take orders for the Luce or you're waiting for the public unveiling in 20 days?

We wait for the 25th, Thomas. The 25th of May.

Okay. So it hasn't been shown yet to some of your traditional top collectors for -- to give you the ability to say that it is already very well received this time?

We are preparing well the people that need to know, well prepared. But the car will be officially launched on the 25th of May, we will have 2 days, 25th, 26th because otherwise, we are not able to accommodate all the people. So we are on for 2 days where -- during which we will show the detail of the car and then we will start to take orders.

So in the next call -- let's say, I make a promise. This is the last call where we will not reply in detail the question about Luce. I'm sorry, just 21 days more of patience, Thomas, bear with us, and we'll be very clear next time. In the meantime, look at episode. I think there is a lot of things you can get from there, the three episodes.

And the next question comes from the line of Horst Schneider from Bank of America.

I have got two left. One relates a little bit to top line. When we think of the current strong increase of oil price, and I'm aware that the Ferrari driver maybe does not care about oil price that much because he can afford it. But nevertheless, has it changed in any sense maybe the mindset of your customers? So when you, for example, look at residual value trends, if you look at orders, if you look at initial reactions to the Luce, is there increased awareness now for this product for luxury customers? That would be number one.

And number two, I want to get back to this seasonality question. You have been clear on the EBIT split, I'm still wondering what that implies for the top line because my understanding is still that product mix is up because you face the F80 and you face also the specials with the 296. So that means ASP should go up in H2 versus H1. Does that imply then that the unit sales are lower in H2 than H1?

I think the first one, Horst. So I have been in the last quarter, let me say -- or March and April, let's say, I've been talking with the clients from different regions in different parts of the world. We talked a lot about the model, about the eagerness to get the model as soon as possible, about Luce, obviously, because there is a lot, a lot of interest, but we never ever talked about the -- sorry, oil price. I think that the miles they use the car is very marginal and never come out during any discussion. So let's say, we are talking about different kind of products, different kind of cars. And that's it. If you ask me about what they think about the new model and then I can tell. But about the oil price, no. The second one...

And with respect to the ASP, there is a slight difference. H2 very much in line with H1.

You say deliveries?

And you asked about the ASP, right? About deliveries...

ASP, yes. Okay. ASP unchanged H2 versus H1. All right. That implies then that the F80 is not increasing a lot anymore from here? Or do we have now kind of run rate already or...

It all depends on the overall mix of the cars that we deliver.

Now we're going to take our next question. And it comes from the line of Jose Asumendi from JPMorgan.

Jose from JPMorgan. Looking forward to the Luce, and a couple of questions, please. The first one, just on a full year basis, when you look at the headwinds from industrial costs, R&D, SG&A and FX, are you on track to offset those headwinds with mix and price? It definitely does look like in Q1, you managed to achieve that. But I'm just thinking on a full year basis perspective, how do you think about this trend? And can you provide maybe a bit of a split on the impact of mix and pricing, if possible?

And then second, just to come back to this -- to the phasing of 296 and F80, is the impact on deliveries likely going to be stronger in the second half versus the first half?

And the impact on deliveries about what? The delivery in the Middle East? What is...

The deliveries on 296 and F80 in terms of the phasing, that's likely to be stronger, the impact in the second half versus the first half?

The 296 Speciale is going to grow over the course of the year. And the F80 should grow as it is becoming -- going to global distribution.

For the other question is that -- Jose, for the other question we don't -- as I said before in the previous question, we don't see any specific pressures on the supply side.

Got it. But the question was more that you do plan to offset the fixed costs with mix and pricing on a full year basis in 2026. That's...

That's already baked in our guidance.

Sorry, that is embedded in the guidance. Is that what the -- is that the message?

Correct. Yes.

And now we're going to take our next question. And it comes from the line of Anthony Dick from ODDO BHF.

Just a couple remaining. First, just to come back on the Middle East a little bit. So thanks for the comments provided on the order book, the activity and the logistics. I'm just wondering, could you comment also on the showroom traffic that you've seen in Q1 and the order intake development and basically where that brings you in terms of order book length in the Middle East?

And then I had a second question on the Handling Special version of the Purosangue that you've just unveiled. If you could just provide a bit of context into this sort of upgrade or package that you're providing. The Purosangue is already about 3 years in its delivery cycle, if I'm not mistaken. Should we assume that this is also kind of a bit of an upgrade to make it a bit more fresh and to extend maybe the life cycle versus the usual 4 years that you have for your cars?

Okay. The first one, Anthony, the order book, I have to say that in Middle East, let's say, order book is very strong, and we keep collecting additional orders from clients. It's a fact. And I told you also that we have a lot of people that want to try our car, and we had more than 500 test drives in the last 50 days.

The other point is that why -- I mean, Purosangue Handling Speciale, I think that it's important. It is important for our company. It will be always important that we listen to our clients, and there was a request from our client to have some kind of more sporty personalization. So Handling Speciale is a sporty personalization that we thought it would make sense for us to offer to our clients. That's it. It's very -- it's a way to show the client like we did also in the past for other things, to show the clients that we are listening to them and we put them at the center of what we do.

Analysts, thank you very much for all your questions today. I would now like to hand the conference over to your speaker, Benedetto Vigna, for any closing remarks.

Thank you, Nadia. Thank you for your time today and for all your questions. Looking forward to the reveal of the Ferrari Luce on May 25, so that the next time we'll take all the questions. I wish you a good morning, afternoon, and thank you again for your attention. [Foreign Language]

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Good day, and thank you for standing by. Welcome to the Ferrari 2025 Full Year Results Conference Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Thank you, Nadia, and welcome to everyone who is joining us. Today, we plan to cover the group's full year 2025 operating results, and the duration of the call is expected to be around 60 minutes. Today's call will be hosted by the Group CEO, Mr. Benedetto Vigna; and Group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions.

Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation, and the call will be governed by this language.

With that said, I'd like to turn the call over to Benedetto.

Thank you, Nicoletta, and good morning and afternoon to all of you. We just came back from San Francisco. Why is this opening chart showing the Transamerica building of San Francisco with the red tip and the bright light on the dome? Well, it was exactly this building where we have been showing the journalists from all over the world, the interiors of the Ferrari Luce. This is the name of our visionary new full electric sports cars. It testifies to Ferrari's determination to go beyond expectations, imagine the future in two days, because leading means illuminating the path ahead, and Luce embodies that mindset.

We picked this place for three reasons. The first one is because of the tight link between San Francisco and Italy. It was that building -- this building. It was the headquarter of Transamerica company founded by Italian Amadeo Peter Giannini. It was also founder of Bank of America. And this building is located in Little Italy in San Francisco.

Second, because of the closeness to our partner LoveFrom whose headquarters is just a few steps away from the Transamerica building. And the last one, the connection with the name of our Ferrari Luce. Indeed, the crown jewel that you see at the top of the building is a strong 6,000 watt light that turns on only on special occasion, and this was definitely a special occasion. Everyone, everyone over there appreciated a lot of the specific focus on the second step of the Ferrari Luce revealed, so that all the innovation could be properly valued and understood.

2025 has been a remarkable year for our company. It has been a year of consistent execution and a year of new beginnings, a year of new commitments and a year of strong innovation, during which we launched 6 new sports cars, a clear testament to our horizontal product diversification and technology neutrality strategy. This included the long-awaited Ferrari Luce, which marks a new chapter in our history and allows us to look confidently towards the future.

So let's go in orders. 2025 marks the conclusion of our previous business plan, with all financial target, including share buyback plan achieved one year ahead of schedule. And it maps also the outline of our new strategic plan. On October 9, at our Capital Market Day here in Maranello, we shared with you our plans for the future, underlining once more the uniqueness of our brand. And we presented all the initiatives designed to drive our brand's success until the end of this decade and beyond.

In sports cars, in 2025. On top of the Ferrari Luce, we have further enriched our product lineup with 5 new models encompassing internal combustion engine and hybrid powertrain. Just think about the 8 cylinders Ferrari Amalfi, a blend of elegance and power. The hybrid high performing 849 Testarossa Coupe and Spider and the hybrid 296 Speciale and Speciale Aperta, a new benchmark for driving trails.

Clients are at the center of what we do, and they represent the most important asset of our business model. Indeed, client centricity starts with the craftmanship and quality of our products, continues through the high level of tailoring we are able to offer. It comes to life in the unique experience we design and deliver for our clients all over the world. Our client centricity approach also resulted in the reintroduction of a more physical interface, a steering wheel with mechanical buttons, which leads to an enhanced driver experience. Indeed, we believe that humanism of technology is key for all our sports cars to deliver an enhanced experience for our clients, and this is also evidenced by the interiors of our Ferrari Luce.

In racing, in racing the 499P hypercar secured us the 2025 FIA World Endurance Championship. Ferrari won both the World Manufacturer's and Driver's titles 53 years after our last World title and after only 3 years since our return to the top class of endurance racing. I was in Bahrain with the team, and I will always remember the emotion of winning such championship. This is a demonstration that when we in Ferrari work united and cohesive, we can achieve extraordinary results.

In lifestyle, 2025 has been a year of solid progress and commitment to provide our clients with an exceptionally luxury experience. Client activations continue to be successful and a critical driver for engagement and acquisition. And also, the growing desire for experiences is confirmed by new attendance records at our museum. In 2025, the museum that we have in Maranello and Modena welcomed almost 900,000 visitors.

What we achieved together with all our stakeholders is also translated into our strong financial results reaching new records across all metrics. One, revenues over EUR 7.1 billion; two, double-digit growth in EBIT, which reached over EUR 2.1 billion; and three, an industrial cash flow generation surpassing EUR 1.5 billion. Everything I've mentioned so far has been made possible thanks to the passion and dedication of all the colleagues in Maranello, in Modena and all over the world. And to reward their achievements and is a direct reflection of the company's performance, a strong alignment with its people, I'm pleased to announce the yearly competitive award of up to EUR 14,900 for our employees in Italy.

The solidity of our business is underpinned by demand dynamics and the visibility we have. The momentum for our brand remains strong with a solid order book, which extends towards the end of 2027 and the net order intake supporting further visibility, notwithstanding the persistent uncertainty in the global environment. In addition, residual values are stable and solid, as evidenced by the recent auctions which achieved strong valuations. They keep on being for us a structural foundation for value and brand discipline.

And now, now let's look ahead to 2026. And let me outline our priorities for this year. In sports cars, a key focus will be the complete introduction of the Ferrari Luce in our product range. In San Francisco, we made further progress with the reveal of the interior concepts that offer a tangible insight into the design philosophy behind the model, where innovation meets craftmanship and cutting-edge design.

You can read many positive comments of journalists from all over the world who are with us. But there is one in particular I will always remember. He said you have blown all of us away, and you couldn't have selected a better name for this car and a better place for it. In May, their journey will culminate with the third step, the world premiere of Ferrari Luce. We selected Rome, May 25, as the day for the final reveal of Ferrari Luce, as on the same day in 1947, the Ferrari 125 S, the first Ferrari of our founder, secured its first victory with driver Franco Cortese, who by the way, said if you were used to 4 and 6 cylinders, these 12 cylinders, feels like an electric motors. It revs very easily.

And beyond the completion of unveil of Ferrari Luce, in 2026, we will continue to enrich our product offering with 4 exciting model launches. On the industrial side, the construction of new paint shop will continue as planned, and all our sports cars will be tested on e-Vortex. In racing, here, we confirm our commitment and effort in the World Endurance Championship with our 499P hypercars. In Formula One, building on the lessons learned from a tough past season, we face the challenge posed by the new regulation with unity and confidence in the team. We step into this new phase with a very clear mindset to be realistic, to be disciplined and to improve continuously.

In 2026, we will also continue to progress in our sailing adventures With Hypersail, we are preparing a revolutionary boat for an unprecedented new sporting arena. Our boat will touch water before year-end. In lifestyle, in 2026, we will continue to execute our strategy with consistency and sophistication. Here, the team will be focused on the opening of two new flagship stores in iconic locations: In London in the first part of the year; in New York in the second part of the year, conceived as immersive backdrops for client activation and designed to further enrich the Ferrari offering of products and experiences.

On the financial side, Antonio will be very clear about our target for 2026. Let me emphasize that 2026 represent a further milestone in our journey towards 2030, another year of growth which will mark continued progress in line with the ambition presented at our Capital Market Day. We look ahead with discipline that is required in the current context and with confidence in the long-term opportunities that lie ahead of us.

And now I hand over to Antonio to review the fiscal year 2025 year result. Thank you.

[Foreign Language] Benedetto. And good morning or afternoon to everyone joining us today. In 2025, we posted solid growth, expanded our margins and kept on investing in our future while navigating the complexities of today's work. All our business, they mentioned positively contributed to growth. Within sports car, the overall mix continued to improve compared to the prior year despite the gradual phaseout of the Daytona SP3 and allow us to manage the U.S. tariff evolution, limiting its dilutive impact. We grew our revenues from racing, thanks to new partnership and leveraging the extensive work on both the composition and contribution of our sponsors.

For lifestyle, the growth pace was the right one as we continue to invest on its development. In Q4, a cost base lower than anticipated and a better product mix drove us to exceed our 2025 guidance. The cost base were further improved by an R&D government grant received before year-end and the reduced racing expenses related to the fourth position in the Formula 1, 2025 championship ranking.

Finally, it's worth reiterating that we reached the 2026 financial targets outlined at the Capital Markets Day of 2022, 1 year in advance, along with the conclusion of the EUR 2 billion share buyback program. Further, we give an overview of our shipments in 2025, which were deliberately kept flat year-over-year and our product portfolio evolution as we enter 2026. To be noted that in the year just ended, the Dodici Cilindri family ramped up and reached global distribution. The SF90 XX family reached its peak and Daytona SP3 concluded its limited series run in Q3, while the first few units of the F80 were delivered in Q4.

We anticipated in the last earnings call that in the second half of 2025, we started a significant changeover of models, which will be evident over the next quarter. Indeed, this year, we have 7 new models, a record number, which entered the production and distribution phases and will shape the pace of our deliveries and their geographic allocation throughout 2026. Namely, the families of the 296 Speciale and the 849 Testarossa will take the place of the 296 and the SF90 families, while the Amalfi will succeed the Roma. In addition to that, the F80 has started its ramp-up phase, and the Ferrari Luce will begin its deliveries in Q4.

On Page 8, the net revenue bridge shows an 8% growth versus the prior year at constant currency. This translates into a 7% growth, including the headwind from currency, mainly related to the U.S. dollar and the Japanese yen. The increase in cars and spare parts was driven by the retail product and country mix as well as higher personalizations, partially offset by lower deliveries of the Daytona SP3. Personalizations accounted for approximately 20% of total revenues from cars and spare parts and were particularly relevant for the SF90 XX family and the Purosangue, driven by the adoption of carbon and special paint. Sponsorship, commercial and brand also had a relevant increase, thanks to higher sponsorship and the improved performance of the lifestyle activities as well as higher commercial revenues linked to the better prior year Formula 1 ranking.

Other revenues were positive and driven by sports-related activities and financial services.

Moving to Page 9. The change in EBIT is explained by the following variances. Volume contribution was substantially flat with a slightly positive change being due to spare parts. Mix and price was visibly positive, thanks to product and country mix, supported by Americas, increased personalization and higher sales of the 499P Modificata. In detail, regardless of the tough comparison base and the phaseout of the Daytona SP3, the product mix was strong and sustained by the higher end of our product offering, with the SF90 XX and the Dodici Cilindri family.

Industrial costs and D&A were both lower, partially offset by higher racing and sports car innovation expenses. SG&A increased as a result of higher rating expenses and brand investment as well as of our organizational and digital infrastructure development. Other was also positive, mainly thanks to racing and lifestyle activities. Percentage margins strengthened in the year despite the dilutive impact of the increased U.S. import duties and the headwind from the U.S. dollar and the Japanese yen devaluation with EBITDA margin of 38.8% and EBIT margin at 29.5%.

Turning to Page 10. Our industrial free cash flow for the year surpassed EUR 1.5 billion, an increase of roughly 50% versus last year. This was supported by the increasing profitability and a positive change in working capital, thanks to the collection of F80 advances. A partial offset came from capital expenditure focused on product and infrastructural development, with the latter being mainly represented by the ongoing construction of the new paint shop and the completion of the new Evo test track and net cash interest and tax payments reflecting the evolution of the Patent Box regimes. The remarkable industrial free cash flow generation for the year allowed us to increase the shareholder remuneration by roughly 30% to over EUR 1.3 billion between dividends and share repurchases.

Moving to Page 11. We outline our 2026 targets. We expect 2026 to be another year of consistent growth based on the following assumptions. On sports car, we will execute our planned model changeover through the year, which will lead to a further positive product mix supported by the F80 and new models ramp-up regardless of the lower deliveries of the SF90 XX family and the 499P Modificata. On a comparison basis with 2025, we anticipate a stronger product mix variance in the second half of the year. Personalizations are currently expected to stay around 20% of cars and spare parts revenues. The evolution of sponsorships and lifestyle activities will further support the top line growth. The increased investments in developing the brand and the lifestyle retail network as well as raising and digital transformation expenses will drive higher SG&A. And finally, depreciation and amortization will also be higher, in line with the start of production of new models.

As to the bottom line, we expect the effective tax rate to be around 23% as we keep on benefiting from the current Patent Box regime only. The underlying assumption for the U.S. dollar exchange rate is of about 120 against the euro, resulting in a headwind compared to 2025, including hedges. The industrial free cash flow generation will be sustained by our profitability, partially offset by CapEx slightly higher than in 2025. Today's strong results testify the uniqueness of our business model and the flexibility inherent in it, which continue to provide us with strong visibility and confidence in our future despite the ongoing challenges posed by the global scenario.

Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Nadia, we are now ready to take all the questions. Thank you very much.

[Operator Instructions]

And now we're going to take up the first question, and it comes from the line of Ed Aubin from Morgan Stanley.

I have two questions. The first one, please, on the margin bit in Q4. Antonio, you talked about the guidance of '26, which you expect your operating margin to be flat to up. And you gave some brief indication on the phase-in. So should we understand that your operating margin should be flat to down year-over-year in H1 and then up in the second half? And related to that, if you can come back on the growth and net impacts on the FX?

And then my second question would be on the ramp-up of the F80. Are we right in understanding that it could kind of follow a similar pattern than the Daytona? And if that's the case, I think on my calculation, I think you implied about 200 units, year 1 360 and then 240 in year 3. If you could comment on that, that would be really helpful.

Thank you, Edouard. So Antonio?

Yes. As to the margins, I think what we can tell you is that the -- but first of all, margin bit in Q4, I think I have explained lower cost base, and I mentioned what is driving that. And then the positive impact of the product mix that has been slightly better, driven by the number of the Dodici Cilindri and [ family ] as such, that have been delivered in the last quarter.

What we can tell you about 2026 is that we expect the mix to be compared to 2024 to be stronger as a variance in the second half of the year. And the cycle also is clearly next year and not yet at full global distribution, but we expect to have a steady improvement over the course of the quarters

Now we're going to take our next question. And the question comes from line of Jose Asumendi from JPMorgan.

Two questions, please. Can you comment on '26 on the guidance? Are you expecting mix on pricing to offset higher SG&A and high industrial costs and R&D as a bucket basically make some pricing to offset the other deal headwinds, which include SG&A industrial cost and R&D? And then the second question, can you comment please on CapEx and R&D expenditure in '26?

Yes. We do expect mix and price to more than offset cost. With respect to CapEx, I think we expect it to be slightly higher compared to 2025, as I just mentioned before. And with respect to R&D, we expect R&D expense to the P&L. Once again, we expect them to be pretty stable with maybe an element of volatility that might be related to the expenditure in the -- in Formula 1. So this innovation expenses due to the new technical regulations and the allowance, and there are granted to the teams with respect to the financial regulations for 2026.

And now we're going to take our next question. And the question comes from the line of Monica Bosio from Intesa Sanpaolo.

The first one is if you can share with us which are the models that are grow -- that are driving your order book the most, if you can share with us? And if you have already seen an impact in terms of new clients from the Amalfi?

Thank you, Monica. So the model that are driving the order book are the model that we announced, that we unveiled the last year. So this is true for the '26 Speciale, for the Testarossa and the Amalfi. Number two, yes, we see that for the Amalfi, we see a new client new to the brand, approaching us. So we have done a deep analysis and we see that several clients are coming from some specific brands that like the performance and the elegance of our cash.

Perfect. Is there any differences in terms of geographical distribution as for these new clients?

There is a difference. There's a good point. There is a difference because we are showing the Amalfi with some time delay in the different countries. So where the country has been already the car. So has been already shown. Clearly, the people could see in reality of the car, when you see in reality to the car, and this is true for all the car we make is much different than when you see on the display. So it's a matter of, I would say, as the time goes and we show the car, we see more and more interest from the people.

And now we're going to take our next question. And it comes from the line of Stephen Reitman from Bernstein.

Two questions, please. Could you give a bit more detail on the level of F80 shipments in the final quarter of last year? And secondly, on residual value trends and also the used market and just dealer attitudes, could you comment on what's been going on? I understand that there's been quite a noticeable pickup in used vehicle sales in the U.K. after you throttled back shipments by about 30% of the U.K. market of new cars in 2025. And also, what is the state of -- are you -- or cost obviously monitoring your dealers, what is their level of confidence in the brand?

Okay. I'll start from the last one. The level of confidence of the brand is very strong. We see the strength of this confidence, I mean is strong as it was. So actually, I have to say that in the second part of the year, there has been even a strengthening of it because there's a lot of innovation coming with different products.

It comes -- when it comes to residual value, Well, I would like to say to remember, Stephen, two things, is stable and solid, okay? The residual value is stable and solid. We said that already that the U.K., the residual value is stabilizing. Also because we have been -- if you remember well, we reduced the shipment.

When it comes to the detail of F80, I would like to underline one point, one, we started the production as planned. Two, we shipped a few units in Q4, and this unit ended in the hand of customers all over the world. But we don't want to be specific to tell how many units have been shipped to home. What I can tell you that in Asia, in U.S., in U.K. and in Middle East, there are people that are enjoying our F80. We know because there are actually, some people even enjoying and doesn't know.

If we look at -- you just gave some guidance, you said that supercars and Icona were about 1% of your overall shipments. So if we simply do the maths and even take into account routing errors or something like that, this still takes us maybe potentially to probably at most, 200 units, including, obviously, about 177 of the Daytona SP3. Would that be a correct way of thinking about things?

Look, I don't want to comment about specific numbers. I think that the percentage are a good representation of the reality. But I think you know what is the pattern of our supercar and Icona, you can make some assumptions, but I don't want to be specific on the number of cars we shipped and where we are going to ship F80-wise exactly.

Now we are going to take our next question. And it comes from the line of Horst Schneider from Bank of America.

First one is on foreign exchange rates. So maybe you can provide some indication what's going to be the impact on the bottom line this year? And my question would be also if you consider maybe pricing FX to customers, I know you don't do that so far. But maybe you consider doing that? And the second question would be about the CO2 targets. We had this proposal from the EU Commission in December, and they maybe relax the targets. There's no ICE been anymore, maybe in Europe. Does it change any of your plannings maybe on projects that you say maybe in 2, 3 years, you can have again less BEVs? And instead, you have more PHEV or more ICE vehicle even. I mean, the fact or just in Europe, there is emission regulation left in the U.S. if we don't have any CO2 regulation anymore. So I think it comes back to the ratio also you guided for the CMD.

Thank you, Horst. Let me a little bit straight. We had an introduction in this speech talking about Bank of America. You are from Bank of America. Anyway. We'll give you the answer, okay? I think Antonio will manage the first one, or jokes aside apart.

I think that when we have all these meetings on EU Commission or whatever, there is a person in this company called [ Elisa ], that with me, Antonio and all the people talk to, because she can tell us exactly what is the story behind. Because if we read the newspaper or whatever, we do not understand it perfectly. As of now, now there is no change for us -- or there is no change in terms of regulation for us, factor number one. Factor number two, we did not change anything on our plans. So we stick to the plan that we have been showing with you. For the FX, Antonio will...

Based on the assumptions I outlined before, meaning with the U.S. dollar at 120 against the euro and with the current spot rate for the Japanese yen, we are assuming, as of now, considering the hedges that we have in place that we have built over the last 12 months on a rolling basis to have a headwind of about EUR 200 million that are already in the numbers we have been giving to you.

And do you consider pricing that, or -- because you don't do that in general?

Is the flexibility that we have contractually, we haven't assumed to use it in the numbers we gave you.

And now we are going to take our next question. The question comes from the line of Thomas Besson from Kepler Cheuvreux.

I have two questions, please. The first one, coming back to your Q4 average selling prices that were high. I understand you don't want to give the exact number of F80. Can you help us maybe with the share of XX products or the D2C [indiscernible] that were there explaining the strengths of the [ ASP ], given that I also know that your hybrid share was, I think, the lowest in 2 or 3 years in Q4. And typically, they tend to have higher prices than the average car. That's the first question. And the second, could you please talk about the F1 related headwinds for 2026, because of both the new regulation and last year's ranking?

Antonio, I think you can manage both.

Absolutely. Q4 ASP, in terms of the impact of the XX and Dodici Cilindri, I just mentioned that these were higher compared to our expectation. And this has been managed in relation to the changeover. Honestly, I don't want to give you -- I don't want to go into the details of the percentage of the units that we sold. Not extraordinary though, just higher compared to what we had previously expected.

F1 headwind, we have put in the numbers the -- sorry, in the number, yes, the assumption that we know as of now based on current budget caps, both chassis and power units. We usually expect to have a seasonality that is stronger in Q1 and Q4, but being the year completely new in terms of technical regulation, we retain a bit of flexibility in this respect. And this is the volatility I mentioned before with respect to the application of the financial regulations in 2026.

And we are going to take our next question. And the question comes from line of Andrea Balloni from Mediobanca.

Yes. A couple. The first one is about geographies. Even it's correct, deliveries to the U.S. declined a little bit more materially in Q4. That was a measure put in place in order to address any potential decline in residual value, but now you've mentioned to be pretty solid. Or exactly as about this market? And my second question is about sponsorship, which were quite supportive last year. What should we expect in 2026?

I think these are 2 questions that Antonio can manage.

Geographic mix, the Americas going down, has nothing to do with the strength of the demand. It's just modern changeover, and you will see it further in 2026. The second one, also sitting in 2026, we expect, as I mentioned before, to have a further support to revenues and EBIT growth.

Now we'll proceed with our next question. And it comes from the line of Martino De Ambroggi from Equita.

One question on the free cash flow. So clearly, I understand the CapEx slightly higher, I suppose, below EUR 1 billion. But net working capital is expected to have a positive contribution for down payments also in '26 or not? Just to understand the strength of the free cash flow.

And the second is on the EBIT bridge because in '25, the block referring to other items was up 110. If you could elaborate on what is your expectation for '26 on this block, although it is probably more difficult and a mix of different drivers?

Yes, on free cash flow. CapEx higher, you're right. Net working capital, we expect it to be more neutral compared to 2025, because this year, we had the very important impact of the advances collected on the F80. On the EBIT bridge for 2025, I would expect this to be positive once again due to the support that I mentioned before from both the -- but mostly, I would say, from sponsorship and rising revenues generally speaking.

Okay. So net working capital, in any case, not negative. There is not a reversal of the trend?

There is a reversal, but we would expect other components to come to compensate.

Okay. And very last Q1 and Q2, should we expect a flattish year-on-year performance? Or in any case...

The level of detail as of now. We'll see as we go.

We were one to give a yearly update.

Now we're going to take our next question. And it comes the line of Tom Narayan from RBC.

Tom Narayan, RBC. I wanted to drill down on the FX, if I could, the guidance for 2026 EBIT. I think you said EUR 200 million impact. The Q4 bridge had a negative EUR 25 million impact. I think the dollar saw its biggest depreciation in Q4 '25. If I annualize that, I get EUR 100 million. Yes, I know the yen is another factor, as is the reversal of those hedges. But it just seems like EUR 200 million is really high, considering those. Maybe we could just drill down that a little bit to better understanding that?

And then I realize it's a floor, but how should we think about the long-term guidance you guys provided at the October Capital Markets Day. Is it -- I mean now more likely you feel you'll exceed that floor? You're calling for 7% EBIT growth for '26. Even with those FX headwinds, the Capital Markets Day called flow 4 of EBIT growth of 6%.

Tom, I'll take the second one, and then for the FX, Antonio will be very precise. When we gave the visibility for 2030, we gave visibility after 60 months. If I go from October 9 until February 10, it's only 4 months. So if we change visibility because 4 months are gone after 6, in your shoes, I would be worried. So we stick to what we gave you on October 9, and we feel comfortable about the number that we shared with you at that time. For FX, Antonio can comment about the EUR 200 million impact.

Tom, when we speak about the foreign exchange impact on the EBIT, we always take into account the element of hedging that obviously, you can see, but that we built in terms of position over time, so on a monthly basis and having in mind an horizon of 12 months. So when you look at the Q4 2025, we have the positive impact coming from the hedges put in place basically between the end of 2024 and the beginning of 2025. When we look at 2026, we do not have the benefit of hedges put in place at that rate at the time it was 105 or in that region. Now in Asia during the course of this year, we've been starting building position from 115 on in terms of -- so the impact is clearly much more negative. Hope this helps.

Okay. So just to confirm, so that means -- does that mean that the hedging piece is a greater negative impact than just the FX rates?

Compared to 2025, yes, it does not offset the negative coming from the spot rate.

Now we're going to take our next question. And it comes from the line of Michael Tyndall from HSBC.

Mike Tyndall from HSBC. Two questions, if I may. I guess the first, sort of touching on what Tom was talking about in terms of 2030. Antonio, when you think about from here to 2030, is 2026 the toughest year in the plan? You don't have the full allocation of F80, you've got lots of model changeovers. You've got F1 cost inflation, you've got FX. Does this -- in your mind, is this the toughest year? Or are we looking at something -- are you seeing something later on that we're not seeing?

And then the second question, I'm going to ask, but I suspect I'll get told I have to wait. Benedetto, have the repeat is already seen the Luce in its full glory? And if so, any indications on what their thoughts are, their indications? Because I'm guessing the way you operate, you've done it in fairly close communication with them. So fascinated to know what the die-hards are thinking about that product.

Thank you. I'd like to comment that the client did not yet see the Ferrari Luce in full glory. They see only the internal glory, let's say, the interiors. To see the full glory, I think we have to wait 25th of May, as I said before. So the unveil process will be complete end of May.

What I can tell you is that the indications are very positive. The people who were, as I said, some of them said we are -- some people attending over there said, we are extremely happy because you -- because we are the only one to have all the modernization. And what I like is we. They were talking about them being part of the community. They were not saying you. For the price, clearly, we have a price in mind, but this will be shared after the complete unveil the process like we are doing for all the model since ever. The other question to complete what I told Tom before. You said in the first part of your sentence, you gave for granted that 2026 is the toughest year in the plan, and then you may ask a question. I think that what we have been always saying, and Antonio was very clear also in his part in the presentation of Capital Market Day that the business plan is stable and linear. So Mike, don't take this hypothesis that 2026 is the toughest year in the plan.

Got it.

2026 is a year of growth. Remember this.

And now we're going to take our next question. And it comes from the line of Anthony Dick from ODDO BHF.

Yes. The first one is a quick technical one on the Q4. You mentioned two tailwinds on the R&D side, the government grants and the lower F1 ranking. Could you please give us the magnitude of those two impacts? And do you still expect to receive a government grants in 2026 also?

My second question is on something else you mentioned that I hadn't heard before with the spare parts business. Could you just remind me actually what that represents for you and what is driving the increase on the spare parts and how relevant it is for your business? And the last one I would have is on the cost side. You also mentioned lower costs here. So just trying to kind of understand what are the drivers. And maybe actually, just a quick last one on ASP. So I know you won't provide the F80 deliveries. But I was wondering if there was anything also else that drove the ASP increase in Q4 other than the SF90 XX and the 12Cilindri maybe tariffs impact? Or also, if the F80 contribution offset or was larger than the Daytona SP3 contribution last year?

Thank you, Anthony. I'll take the second one for the spare part. And the answer when you say what drives the increase of this part is because the people -- we have more and more people that are enjoying the car. That are -- when you use more of the car, clearly, you need more spare part. So this is the reason why we have an increase in spare part.

There was also a price increase last year. But there was also a clear trend of our clients to use more of the cars. For the other 3 questions, Antonio will be very specific.

Yes. With respect to Q4, the R&D tailwind that you mentioned. This is a grant that is related to the development contract that we announced back in 2022, I guess. So yes, there will be other grants expected in future years. R&D and ranking all together account for a bit more than half of the positive change compared to our initial guidance -- the latest guidance.

Lower cost in 2025, I mentioned compared to our expectations, okay? So it all ended up being better in terms of industrial costs and even slightly in terms of SG&A. You -- as far as Q4, once again, with respect to Q4, yes, tariffs obviously compared to Q3 were slightly more benign because most of them were based on the 15% rate that was applicable after August 1. I think we have flagged all with this question.

Maybe just on the spare parts one. Could you give us a sense of what it represents as a part of the car and spare parts business, revenues?

It's a good try, Anthony, but we don't share this detail. What I can tell you is that really, the people are enjoying more and more, the Ferrari. The product portfolio is going in that direction to let them enjoy more and more. And thus, they are -- they have to buy more spare parts. I would stick to this, really.

And now we're going to take our next question. And it comes from the line of Christian Frenes from Goldman Sachs.

Most of my questions have been asked, but two more from my side. Your R&D capitalization ratio was a bit lower than I anticipated. Can you comment a little bit about what we should anticipate going forward for R&D capitalization? Is this a new run rate? Or should we think about longer-term mean reversion there? And my second question, just going back to residual values. Can you just comment outside of the U.K.? Just -- if I understood you correctly, you have not taken any additional actions, right, in terms of addressing softening of residual values. Is that the correct understanding?

The second one, what we said and what -- also in the past, what I said a few minutes ago is that in U.K., the residual value is stabilizing also because we reduced the number of cars we gave in that part of the world. And this is the action basically that was put in place. It's nothing new on this front. For the capitalization ratio, Antonio?

Yes, it actually depends on...

Sorry, the question was for outside of the U.K., not for the U.K.

No, no. There is -- the action was specific to U.K. There is nothing ongoing from the rest of the world, sorry.

With respect to the capitalization ratio, this very much depends on the overall capital expenditure by here. And the development of the expenses for innovation that, as you know, are mostly related to significantly related to our rating activity. So it very much depends on that moving part. That in turn depends on the financial regulation from the FIA. I would bet on stabilization of the ratio going forward.

And now we're going to take our next question. Just give us a moment. And the question comes from line of Henning Cosman from Barclays.

I was hoping to come back to the shape of the plan through to 2030 again. I'm just conscious that you're guiding about 29.5 now, the guide for 2030 is above 30. I'm just wondering what you're seeing in the back half of the plan because of the top line growth keeps on coming through, I suppose, already through the operating leverage, we would expect to be above. So I think you're now seeing 20% personalization in '26. I think you might have expected that to decline a little bit sooner? Is it most debt and the high sensitivity to personalization because you still think that's going to go down closer to 19 or something like that later on in the plan? Or anything at all, because I think most of us are sort of wondering are you now on a steeper trajectory and will you perhaps decline in the latter half of the plan? Is that at all conceivable. If we could just discuss that in as much color as you can.

Thank you, Henning. Also, thanks for making the compliment to the team for what has been achieved, really appreciated. When it comes to the shape of the plan, I think I understand what you are saying and also other colleague of yours has been asking us before. But I believe it's important that a company is consistent and it's -- it delivers a result with focus and discipline.

As I said before to the colleague, if after 4 months, we changed the target that we set for 60 months -- and I agree with you, we gave a threshold -- well, I think that we wouldn't be consistent. I think that what we have shared with you is what we believe is a threshold that we can deliver to you with confidence. We have been assuming -- we're making some assumption. And I don't think it's time now after only 4 months to change something that will happen in 50, 60 months. It would not be -- sorry, I think that starting from myself, Antonio and all the company, we wouldn't be credible after a spike in a quarter, and then you change the view.

So we thank for the complement, we thank for the -- if you want, the way I see increased the confidence in us. But let us work, we focus on discipline. And then if -- when we have to change, for sure, it is not after a few quarters, okay? But let us work on this direction, ending and we stick to the plan we shared with you.

And can I ask one more on the Luce?

Yes.

I think I read an interview with your Director of Marketing. And I believe the wording was something like you'll be quite selective and you only give it to people who appreciate it. And I believe what I read into that is that you're going to be quite sort of restrictive with the number of unit sales. I think we also remember that you deliberately said it's not going to be a special, but I was wondering if we could perhaps talk a bit about again, if it could be a range model that with quite low unit sales, considering what your colleague said in the sense of view?

I think that, okay, Ferrari Luce is the car that we unveiled the second step last week. What I can tell you, I can guarantee you is that we will not sell this car to people that do not want the car. I mean, if the people, the client, existing and new, mostly existing, have to buy this car because they love the car, because they decide the car. Because this is a car, Ferrari Luce, that is also electric. It's not an electric car. You know what I mean?

So if the people, if the client like, love the cars, they want to buy it, they buy. We will never force our client that to have, let's say, 849 Testarossa or whatever is going to be called the next car, they have to buy an electric car. This is being said loudly clear already to many clients. It has been shared also with the Board of the company, this approach. And it is said also, I said personally, like also the Chief of Marketing to several dealers in these days, the colleague are having different meetings in Japan, in U.S., in China. And the message -- one of the key message is this. You do not have to force clients to buy something that they don't like. Some -- this would be a biggest mistake, and I think we have to learn from what we do wrong and what the market is doing wrong, okay? So that's what I can say, Henning.

Yes. And sorry, just maybe a very short follow-up. So if you were to discover in the course of the plan that people want combustion engine vehicles a lot more than hybrids or electric vehicles, would you rather sell fewer, but stick to the 40-40-20? Or I suppose Horst has asked in a way, but I'm trying again. Would you be able to change the 40-40-20? Or would you still go through with that just sell fewer of them only to the ones who really wanted?

Thank you for this question. Maybe what I said at the Capital Market Day, there was a question also about this, and maybe I was not clear. What I said is that today, the visibility we have is 20-40-40. This is the split in terms of product offering. If something will happen, I think we are a company that is the big benefit to have a small, agile and nimble, call as you want. And then we may review in '28, maybe we see.

I think that one important point, and I appreciate you underlining it that our offering split will be 20-40-40. So I think that when the situation is changing, when the things are uncertain, I think the company has been always showing in the past that we are nimble, and we are adapting to what is coming. At the end of the story, at the center of what we do, there is only one thing, the client. That's it.

Now we're going to take our next question. And the question comes from line of Nicolai Kempf from Deutsche Bank.

It's Nicolai from Deutsche Bank. And also from my side, well done for a strong finish. First question would be also on revenues in Q4. And do you kind of share how many 499 Modificata you've been sold in the last quarter? Because I think there's also quite an impact on the ASP. And then the second one, a bit more long term. We've seen a strong rise in revenues per unit. Also, you have stated that the residual values are under control and stable. So does it make sense to go long term a bit more for higher volumes, given that volumes have been down last year and probably flat this year?

No, I thought you -- no, no, sorry, I was laughing with Antonio because I was saying it's -- we take it as a positive appreciation as appreciation and more confidence in us, and we want to thank you. I think that we need to make sure that with respect to the client, as I told before, the client is the most important asset. And I think we need to make sure that the people, when they own a Ferrari, they feel exclusive and they own something that not so many other people can have it.

So we don't disclose the number of the volume, neither at the Capital Market Day, not today. Let's -- I mean, we are a company that is looking at the business with the goal of having a marathon, not a sprint race. And number two, we want to look at the quality of the revenues, not at the volume. So Ferrari is not a volume business. We are a luxury company. We want to make sure that when the client owns something, a Ferrari, they are sure that not so many other people can have it. And the first one on revenues in Q4 and for...

Yes, the 499P Modificata, a few units in Q4, very much in line with the average of the previous quarter. Just have in mind for next year that will lower the number of 499P Modificata, in 2026, and this is in our numbers compared to 2025.

And now we take our next question. Just give us a moment. And the question comes from the line of Michael Binetti from Evercore ISI.

Congrats on nice fourth quarter for me. Personalization in Formula One, I think those are the 2 lines that you put in the description of the revenue drivers for 2026 that look a little different from how you were talking about 2026 over the past few months in the pre-close call, I think you were assuming that personalization would start to move towards that 19% long-term number. And then F1, I think, is now seem to be higher. Can you maybe just a quick thought on what's changed in the last few months around your assumptions for those 2?

And then on -- on the order book, Benedetto, I might be reading it wrong, but maybe the description of the length of the order book seems a little bit shorter. And I don't know if that's right, but regardless of whether it is, I'm curious how you're operating it and if there's any changes because you're operating more efficiently or changes in customer preference or experience or just better, faster at personalization. I guess the bigger picture question is I'm thinking about how much capacity in your words, flexibility you added with the e-building. One message that we've heard from some of the dealers and clients is that some have been on the wait list for a long time for some of the models like Purosangue. I wonder if perhaps there's some operational improvements that have helped speed some of those things up to look ahead to?

Thank you, Mike. I think that, as I said, the order book is strong and then it extends towards the end of 2027. That's what I said today. In the past, we also said that -- and you remember well, the e-building guarantees us some flexibility that allows us the possibility to offer more personalization. And you also remember or what I told that -- we don't want to be caught anymore by surprise as it was the case of the Purosangue the beginning. You remember a couple of years ago, there was a strong demand of some personalization we were not ready for. So what we agreed is that to put this capacity in place so to accommodate swing in the personalization of demand that clearly, it's difficult to plan and to foresee.

So the -- for sure, the e-building as our increased capacity at our some of our supplier for some personalization that we believe can be more appealing. This is helping a lot, okay?

So, Michael. And with respect to your first question in respect of the revenues from personalization and from racing, I think you are pointing to 2 areas where our visibility is shorter compared to what we have for cars and parts. Personalization, as we repeatedly mentioned, is usually finalized 4 to 5 months before delivery of the car. So it's quite normal that we adjust as we see it. That's why if you compare, for example, the 20% we are giving you as a guidance, now we would be 19% we may have mentioned previously, maybe see a difference.

The second -- similarly, even from -- for the revenues from rating sponsorship, it obviously depends also on the development of the contract with our partners.

And Antonio, just to follow that, given that you don't have a lot of visibility out very far in personalization, but you do assume that it will come down over the course of the plan to 19%. If your answer is just like have some conservatism in the guidance because it's [indiscernible].

Not just that, the ratio depends also on the denominator. So take that into account as well.

Is there something in the baseline that just can't move higher, we have peak carbon fiber? Or is there any -- is there something that can't move higher that makes us think that [indiscernible]?

Nothing on the top line, meaning in terms of what we are actually working on personalization to reach it and to be able to serve our clients better and with diversified products. However, even the cars base is different and the level of personalization may depend on the mix of cars and on the side of the revenues from car.

I think it is also important to add one point. Also, some personalization. Clearly, we put some capacity in place. But for some personalized items, we don't want to go beyond a limit also because we have always in mind that this story of exclusivity, okay? There are some specific personalization items that is through increasing capacity, but there are some models that we don't want to personalize all with this. Otherwise, we'll be not any more personalized or special. Let's put it this way. Okay? So it's a choice. It's a deliberate choice.

Now we'll go and take our next question. And the question comes from line of Michael Filatov from Berenberg.

I just wanted to double down on one of the questions asked earlier around some of the assumptions baked into the 2026 guidance around the Luce. Maybe you could speak more broadly about where you expect this to sit with relation to the range models in terms of volumes? And then a follow-up to that is, where do you see white space in terms of your geographic mix? Are there certain regions you feel like you have more room for growth, for example, as you reduce volumes to the U.K., where do you see room to shift that volume as we go forward?

I think that I don't want to specify which model is it. I think that it's clear that will be a sports car. We said we have 4 doors. In terms of geographic mix, we don't have any -- we see interest from people of different regions. So we don't have a specific mix. Clearly, there will be some dealers where we will put more attention also because we have 200 dealers, and we don't want to push all these 200 dealers altogether. So we will go also there with focus, but there are -- there is interest from people, from clients of different geographies. And the car is done to address different geographies.

Understood. And just in terms of where you think volumes could be for the Luce, where it sits in terms of the volume allocation within the range lineup? I know you haven't disclosed what the exact segments will be, but anything in...

You can make up your own model. You know what? I think there was a similar question in Capital Market Day. And don't -- if you want to be a true high-performance sports car with a lot of high performance over a long time, we said in the Capital Market Day, the battery performance, whatever is the technology in this world at this time is not such to maintain those performances for a long time. So when we decided which car model we did we want to do, we considered the limit of the current electric cell battery, and we stick to that. I think this is one bit of information you can use also and we deliver we shared with you at the Capital Market Day.

Now we're going to take our next question. The question comes from line of Sam Perry from BNP Paribas.

So you've given some guidance on mix of specials over 10% cumulative to 2030. Can you give any indication of where that could get to in 2026? And then a clarification question on Slide 7, you show the models being phased out. Is that end of production or last sales? I guess I'm specifically talking about the 296, which is coming from quite high volumes at the moment. Could you expect shipments to continue into maybe the start of '27? Or is that meaning last sales in '26?

Phaseout means phase out, meaning the stop of deliveries. And with respect to guidance on mix, there is no specific difference compared to the average guidance for the plan by quarter for quarter.

Now we're going to take our next question for today. And it comes the line of Gianluca Bertuzzo from Intermonte.

I think I made the same question to you about the Purosangue, and you've been very kind for the answer. But when you think about the Ferrari Luce and exclusivity, where do you see it playing less than the Purosangue with 20%? Any thoughts are helpful. And second one on geographical perspective. Should we expect some positive impact from India lowering the tariffs? Do you see this as an opportunity to improve there?

Two -- The India is an opportunity. We want to focus more and more over there. Clearly, it will take some time. Clearly, the lower -- I mean, the new economic deal between Europe and India is facilitating. But to develop a market. It is not something that you go from one day to another.

In terms of Luce, I would like to tell -- I mean, I remember that you asked the same question for Purosangue. But at that time also, I told you that it will be something that we will chase a due time in the right way. One of the things when you do luxury products -- and I think here, we are doing -- we are a luxury company. We have to manage properly information in a way that they are delivered at the right time. We just think about also Luce, the 3-phase unveil process. I think this is important Gianluca, I'm sure you know, and I'm sure also that you tried your best to model, but I'm sure also you were expecting this kind of answers.

There are no further questions for today, and I would like now to hand the conference over to Mr. Vigna for any closing remarks.

So I would like really to appreciate all of you also for the time we spend, we spend more time. We want to spend more time together to take all your questions and also to thank dearly for your -- to follow us. I think that what I would like you to remember is that the year '25 is a remarkable year.

This is the objective that I would like to remember about this year. And this represent and underscore once again the strength of our business model. And with this, we continue to execute our business plan with discipline and confidence -- with discipline and confidence remaining true to our identity forward-looking, and defined by our will to progress. And with this, I would like to wish all of you, good morning, good afternoon, and thanks again for your time, for your questions and for all your support [Foreign Language].

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Good day, and thank you for standing by. Welcome to the Ferrari Q3 2025 Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Thank you, Rezia, and welcome to everyone who's joining us. Today, we plan to cover the group third quarter 2025 operating results, and the duration of the call is expected to be around 45 minutes. Today's call will be hosted by the Group CEO, Mr. Benedetto Vigna; and Group CFO, Mr. Antonio Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation, and the call will be covered by this language. With that said, I'd like to turn the call over to Benedetto.

Gracias Nicoletta. Thank you, everyone, for joining us today. The past few months have been reach of important milestones for our company, among which the launch of the Ferrari Amalfi, the 849 Testarossa family, the first step of the reveal of the Ferrari Elettrica and the Capital Markets Day. Let's start from the Capital Market Day. On October 9, in Maranello, we gathered together and we shared our ambitions and plans for the future with investors, journalists and the entire world.

In this current uncertain world, we shared an ambitious financial floor for the end of this decade, EUR 9 billion of revenues, 40% EBITDA margin and 30% EBIT margin. What did we say? What did we say at Capital Market Day exactly? Two things. We highlighted that Ferrari is a unique company, which combines 3 dimensions: heritage, technology and racing. It has a dual identity, both inclusive and exclusive capable to engage with tifosi, royalty and brand values across generations and geographies. We have set ambitions for each soul with unwavering goal to keep our brands strong for the longer term, well beyond 2030. In racing, we aim to win, we want to continue to be successful in Endurance and come back to victory Formula 1. We owe this to our P4 to fuel the passion and inclusive side of our brand.

In sports cars, we continue to focus on managing and crafting the exclusivity of our product through an horizontal product diversification strategy, which ensures custody for each single model. We confirm our innovation pace. We will continue to offer our clients an average of 4 new models per year between '26 and 2030 across the 3 different powertrains: ICE, hybrid and electric to address different clients and different clients' needs.

In 2022, we told you that the 2030 breakdown of powertrain offering would have been 20% ICE, 40% hybrid and 40% electric. Our plans were based on the environment in 2022 and our expectation about its evolution. Today, in 2025, we have deliberately recalibrated our powertrain offer to be 40% ICE, 40% hybrid and 20% electric. Why did we decide this? Two are the main reasons. One, market dynamics. We have always believed in electrification as an addition, not as a transition. Overall market adoption of electric technology has been more gradual than anticipated in 2022. At the same time, demand for thermal and hybrid models has been more sustained.

Two, client centricity. We put our clients always at the center of what we do. We are very flexible and agile to adapt our product plans to the evolving environment, developing and offering models that best address our client needs and meet their preferences. Regardless of the powertrain, we will keep on harnessing each technology in a unique and distinctive way, enhancing the driving emotions and staying true to our belief that we have to be innovative, adapting to the changing times. That is what our founder did since 1947, when he dared to develop our first, first cylinder engine, although nobody believed in it. It's our responsibility. It's our responsibility to keep alive this will to progress.

This technology neutrality approach is something we have chosen. We have planned for and invested in also from an infrastructure point of view. The e-building, our new facility in Maranello capable to manufacture the 3 powertrains is the perfect examples of this flexible approach. Our research and development efforts will not only focus on powertrain performance, but also on vehicle dynamics, experience on board and the new materials, all of which make our product unique.

Moving to clients. We will continue to grow our Ferrari families, which today counts 90,000 active clients and to foster their sense of belonging in community through an ecosystem of unique experiences from track to road to brand. Lastly, lifestyle. This is the soul that is instrumental to enrich the client experience and to widen our audience beyond our tifosi and Ferrari. I personally believe the team did a great job in bringing brand consistency.

We then cultivated everything I just said with the help of Antonio, and let me underline and -- let me highlight a couple of elements. One, we continue to grow our business to new heights in an organic and consistent way. We look at the 2030 target as a floor of our ambitions, always acting in the long-term interest of our brand, safeguarding exclusivity above all.

The macroeconomic environment remains uncertain and extremely volatile. However, the visibility and solidity of our business model allowed us to commit to an ambitious plan of 6 years of growth, which we will execute with focus and discipline as we did for the previous one. We will continue to deliver on our promises. And then we concluded the Capital Market Day with our renewed decarbonization commitment. We have already achieved approximately 30% reduction in our Scope 1 and Scope 2 emissions and approximately 10% reduction per car in Scope 3 emission in 2024 versus 2021.

We will capitalize on this achievement with a clear target to reduce our Scope 1 and Scope 2 emission by 10x in 2030 versus '21 and to decrease by 25% the absolute Scope 3 emission in 2030 versus the past year 2024. Moreover, the day before the Capital Markets Day, we unveiled the technology of our Ferrari Elettrica. This represents the first step of the wheel, which will be followed by the look and feel of the interior design concept in Q1 '26 and the complete car in Q2 2026.

As a leaders, Ferrari as a leader takes its innovation responsibility very seriously. The Ferrari Elettrica is a new opportunity to reaffirm our will to progress as it has happened many times in the past with the introduction of innovative concepts such as with turbo engines, hybrid powertrain and most recently with the Purosangue, there is great anticipation to experience the driving emotion of the Elettrica.

After the Capital Market Day, I met several clients in U.S.A., in Korea, in China and in Italy. And all of them appreciated the way we present the model. This is what they told me. The electric cars are generally heavy as elephants and not fun to drive. You did well to invest in active electronic system to transform the elephant in a horse and to engage the drivers with pedro shift like in all Ferrari. We are looking forward to driving it. We can continue to be innovative if we keep the pace of change and having the 3 powertrains in our portfolio is a clear advantage, especially in front of younger generations.

With the first step of the reveal of the Ferrari Elettrica and unveiling in September of the 849 Testarossa, coupe inspired, we have concluded the 6 launches we had announced 1 year ago for the entire '25. I met many clients in Europe, in the U.S.A. and in China, who are in love with Testarossa. Last week in China, I met a young female client, younger than 40 years old, and she told me, Testarossa is the perfect harmonious blend of design and engineering, elegant and craftsmanship. I'm eager to own one and drive it.

In the past few months, almost all range model in production were substantially sold out. The launches of the Testarossa family and Amalfi and the great traction in clients are initially contributing to the order intake. Indeed, the order book extends well into 2027. Over the next few quarters, we will have a significant change over of models. Indeed, in January '25, only 15% of our lineup was in ramp-up phase of production, while we will close the year with 35% of the lineup in ramp-up phase, and this is the result of all the activities of development that we did in the past years.

Moving to the quarters, Q3 '25 saw continued growth. Just a few key numbers to highlight. One, total revenues reached approximately EUR 1.8 billion, a 7.4% growth year-over-year with flat deliveries. Two, strong profitability with EBIT of over EUR 500 million. And last but not least, industrial free cash flow at EUR 365 million. These are solid business performance. This solid business performance allowed us to revise upward the '25 guidance during the Capital Market Day in October. Our revised guidance exceeds the profitability target we had originally set for '26 in the previous business plan 1 year in advance. Moreover, the decision to complete the current share repurchase program within this year, once again 1 year earlier than planned, also reflects such progress and strong confidence that we have in the future. And now I will leave the stage to Antonio to explain the quarter in more depth.

Gracias Benedetto, and good morning or afternoon to everyone joining us today. Starting on Page 4, we provide the highlights of the third quarter, which once again delivered consistent growth and demonstrates solid progress. Product mix and personalization, along with rising revenues were the main drivers of revenue and profitability growth with shipments in line with the previous year. This resulted in a strong industrial free cash flow generation in the period. Let me underline that such results were accomplished notwithstanding the impact of the incremental U.S. import tariffs, which became visible in Q3, a greater foreign exchange rate headwinds and lower deliveries of the Daytona SP3, which was phased out in the quarter.

On Page 5, we deep dive into our shipments. They were driven by the 296 GTS, the Purosangue, the 12Cilindri family, which continued its ramp-up phase and Roma Spider. The SF90 XX family increased its contribution. The 296 GTB decreased approaching the end of its lifecycle and the SF90 Spider phase out. Deliveries of the Daytona SP3 were lower than the prior year and concluded their limited series run.

As anticipated by Benedetto, in the quarter, we started a significant changeover of models, which will be also visible in the next quarter. The SF90 family and the Roma were already phased out and the 296 family is approaching the end of its lifecycle. Indeed, those models will be progressively replaced starting from next year by the 849 Testarossa family, the Amalfi and the 296 special series, respectively, a record number of new models introduced at the same time.

On Page 6, the net revenue bridge shows a 9.3% growth versus the prior year at constant currency. This translates into a 7.4% growth, including the headwind from currency, mainly related to the U.S. dollar dynamics. The increase in cars and spare parts was driven by the richer product mix as well as higher personalizations despite the lower delivery to Daytona SP3, which followed our plan. Personalizations accounted for approximately 20% of total revenues from cars and spare parts and were particularly relevant for the SF90 XX family and the Purosangue, also supported by the adoption of carbon and special paint. Sponsorship, commercial and brand also increased, thanks to higher sponsorships and the improved performance of the lifestyle activities as well as higher commercial revenues linked to the better prior year Formula 1 ranking.

Moving to Page 7. The change in EBIT is explained by the following variances: Mix and price was positive, thanks to the enriched product mix. Indeed, despite the phaseout of the Daytona SP3, the product mix was sustained by the higher end of our product offering, namely the SF90 XX and the 12Cilindri families. The mix was also supported by the increased contribution from personalization. Please note that the impact from incremental U.S. import tariffs as well as from the update of our commercial policy in response are included in the mix and price variance. This resulted in a margin dilution at constant currency, particularly visible in the third quarter since the majority of our shipments in the United States was represented by model good price were protected under the updated policy.

Industrial costs and R&D were lower year-over-year, in line with model life cycles, partially offset by higher development costs for racing. SG&A were also higher, reflecting racing expenses and brand investments. Other was positive, mainly thanks to racing and lifestyle activities. Percentage margins continued to be strong in the quarter despite the dilution from increased import duties with EBITDA margin at 37.9% and EBIT margin at 28.4%.

Turning to Page 8. Our industrial free cash flow generation for the quarter was strong at EUR 365 million and reflected the increase in profitability, partially offset by capital expenditures, which were mainly focused on product development and the progress in the new paint of construction and the negative change in working capital provisions and others, mainly due to the reversal of the advances collected in previous quarters. Net industrial debt was EUR 116 million at the end of September, also reflecting the share repurchase program executed in the quarter, which is approaching its completion by year-end, as reminded by Benedetto, 1 year in advance compared to our plan as announced in June 2022.

Moving to Page 9. We confirm our 2025 guidance, which was revised upwards during the Capital Markets Day on October 9 on the back of the solid business performance and reflecting improved sports car revenues, including personalization, a lighter-than-expected cost base despite a greater headwind from foreign exchange rate and increased U.S. tariffs. And with this in mind, for Q4, we project lower deliveries year-over-year, as we already told you in the second quarter call, and this is in connection with the changeover of models, as I mentioned earlier on, a positive product mix, although sequentially tighter, in line with the phaseout of Daytona and the first unit of F80, higher SG&A and a seasonal step-up in racing R&D expenses as well as higher SG&A dictated by the start of production of new models.

Looking at 2026 and beyond, let me remind you that the introduction of the F80 will be gradual. As usual, it will take a couple of quarters to ramp up the production and the life cycle is expected to be around 3 years. The guidance of the F80 and the model changeover will imply a more back-end loaded 2026 and will shape the product and country mix throughout the year. Such developments are consistent with our plans to deliver in the year to come as smooth and as linear as possible expansion of our profitability in absolute terms. Be assured that we continue to execute on this plan with discipline and focus and today's strong results provide once again the evidence of our continued commitment. Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Rezia, we are now ready to take the questions. Please go ahead.

[Operator Instructions] We are now going to proceed with our first question. And the questions come from the line of Michael Binetti from Evercore ISI.

Just a couple for me. Antonio, I think you're saying that the mix impact in the second half will be a little bit better than what you anticipated. I saw that mix added about EUR 25 million in the quarter. I think last call, you said mix would be neutral for the second half. So can you just help us think what's driving a little bit of that upside? And maybe how much we can think about in fourth quarter from mix relative to the third quarter? And then I guess just as we think about the personalization comments you made about 20% now. You guided to personalization being closer to 19% longer term. It's like it's a little counterintuitive to us with the new tailor-made studios and the paint shop coming online next year. Maybe just walk us through what drives the moderation there?

Yes, Antonio. Thank you, Michael. On the first question, yes, the mix in the...

Can you hear well, Michael?

I'm sorry, what was that...

I was saying, can you hear well?

Not very well, no.

That's why I asked you because we understood that someone was not able to listen that we hear well. I don't know if this is...

Okay. I'll try and answer. I hope you can hear me. Yes, the mix impact in the second half of the year has been slightly better than anticipated. So I remember I answered you in the second quarter call that we would have expected the mix more neutral in the second half. Now this is a slightly improved at least based on the third quarter results. And this is mainly due to personalization that remains very, very strong. With respect to your second quarter -- second question, we said we have prepared the plan on the basis of a 19% longer-term penetration of personalization. In this respect, the contribution of tailor-made and in particularly the tailor-made center, bear in mind that have been taken into consideration mostly to come closer to our clients. So the overall consideration on the penetration of personalization takes that into account with a view to be close to our clients also in countries where such tailor-made personalization are particularly relevant, such as Japan and the Western Coast of U.S.A.

Okay. And can I just ask you one clarifying comment. You said the F80 will roll out over 3 years. Is that -- am I wrong or is that a little longer than the normal cadence for one of the strictly limited or supercar models like this? Is that -- and is there a strategy behind stretching that out a little longer? I would think normally would -- you'd see the bulk of those shipments in maybe 8 or 10 quarters?

[indiscernible] line with what we've been doing on the ICONA as recently, considering the overall number of cars involved and the start-up phase that is entailed by in order to get to run rate of production.

We are now going to proceed with our next question. And the next questions come from the line of Stephen Reitman from Bernstein. It looks like the person just disconnected. We are now going to proceed with our next question. And the next questions come from the line of Flavio Cereda from GAM.

So my question is, I'm taking you back to the Capital Markets Day and your projections of top line growth to 2030. So a very simple question, volume price mix, volume, you got control it, mix to a point. And I was just wondering on price, your pricing power, given all that's been done and the great results that we've seen in recent years, Benedetto, where do you think you stand on this? Do you think you're coming to an end here? Or do you think there's more to come?

Thank you, Flavio, for the question. It's not at all an end. Actually, we feel confident that with all the innovation that we have to delight our clients, we do not see any weakening in our pricing power. We will continue to offer Flavio, car with a different positioning. All of them will benefit of the pricing power because this pricing power, just to be clear, is not coming because we will just increase the price for the same, let me say, product as it is. No, we will make richer and richer innovative, more and more innovative with the product so that by delighting the client, we are confident that we will keep our pricing power. And this is what we are working on. And this is the goal of all the money that we invest in R&D, in innovation with all the team here.

So aligned to more models, fewer volumes?

Yes.

And the questions come from the line of Thomas Besson from Kepler Cheuvreux.

I have 2 questions, please. First, on hybrids, I think the share was lowest in a couple of years. Is it linked with the changeover of product? Or is it driven by willingness to reduce overall hybrid share to eventually address excess deliveries in certain markets and residual values? That's for the first question. And the second, could you give us the delivery figures, please, for the Q3 data on us and what -- how many F80 you're already going to launch in Q4, please?

Okay. So the first one, Thomas, is just depends on the offer that we have on the lineup we are offering to our clients. The number of hybrid cars that we are offering is reducing because there is a change in the model. So there is no if you want, there is no surprise over there. It's a consequence of the way we launched the car. No, that's it. There is -- don't extrapolate any trend over there, okay? And it's not related to the propulsion. The second is how many F80 -- we are planning to launch to sell?

Just the initial few units, Thomas, not its number. And I [indiscernible] 40 in the third quarter.

We are now going to proceed with our next question. And the next questions come from the line of Stephen Reitman from Bernstein.

Apologies I had a problem with connection. And I apologize also if this question has been asked before because I was cut off, so I had to redial in again. So thank you for your comments about the contribution of 849 extending the coverage of your order book into 2027. I'd like to know if demand is similar for both the Coupe and for the Spider. And I know you don't comment on the order intake on a model-by-model basis. But could you talk about the level of interest you're seeing in the Amalfi? Is demand strong for the entry products as it is for your higher-end products? And my second question is regarding also on the hybrids. You've given us some detail in the past about the penetration rates you're seeing for your extended warranty program for the battery program and the like. And I think the last figure we had was running at about 15% to 20%. Obviously, that's a very good way of improving the residual values of these vehicles and making these Ferrari last being cars lost forever as your intention. So could you update us on where you are with that program? How well is it's understood?

Thank you, Stephen, and I understand that electronics is not always working well before. That is why we manage carefully electronics in our cars. Having said that, how it's going Amalfi? I think Amalfi is proceeding better than the previous model. So this is very encouraging. The second point I can tell you is that I saw -- I was in China the 21st of October, and I saw the first 2 Amalfi sold over there to new client younger than 40 years old. I can also share with you that in order book, more than 50% of the new clients -- of the -- sorry, 40% of the people that want to buy the Amalfi are coming new to the brand. And this is, let's say, we are pleased because one of the objectives of this car was to bring on board, new to the brand. So that's the comment on Amalfi.

The story of hybrid, that hybrid warranty, I think that -- I mean, it's picking up, continues to pick up. It's more than 20%. But we see one simple things. we have dealers that are able to explain it well, while we still see some dealers that have not yet explained properly. So we are in the process to retrain some of our dealers because some of them are not able to explain properly the advantage of this warranty scheme. So we see improvement, but I think there is more if all the dealers are able to explain properly. So that's on the hybrid -- side. Thank you Stephen.

And the questions come from the line of Thomas Besson from Kepler Cheuvreux.

I think I've already asked my question. So I think you can pass on to the next speaker.

In fact, I was surprised.

Yes, me too with.

And the next questions come from the line of Robert Krankowski from UBS.

Just 2 questions from me, please. And just maybe starting with the Q3. Like I think we are expecting that it's going to be the weakest quarter in the year. So obviously, something went better and maybe we heard that it was personalization. But maybe if you could talk specifically about the U.S. Back in Q2, you mentioned that there is some change in consumer behavior because of the tariffs. Have you seen it normalizing right now after we have more clarity on tariffs? And maybe the second one also related to the U.S. Obviously, there is a lot of conversation about residuals and there is some kind of concern about potential increasing order cancellations. Have you seen any unusual or any pickup in orders cancellation in the U.S. as consumers are a bit worried about potential change in residual values in the market?

I'll take this question, Robert. So one, in U.S., the business proceeds as usual, number one. Number two, the only difference we see in U.S. that if you compare today versus the previous call, at that time, the tariff were still at 25%. Now they are at 15%. Now it's carved out in the stone, it's 15%. So that's the only difference we see. And we have been -- you remember last time, we told you when it will become, how can I say, blessed by papers, then we will update the commercial policy, and that's what we did. That's what we did before we said the price increase up to 10% when the tariffs were 25%. And now we say price increase up to 5%. That's the only difference in U.S. Then the business proceeds as usual.

And with respect to Q3 being originally thought as the weakest quarter in the year, I think the reason is simple. We were -- the level of personalization was higher than we were expecting. So that has on the top line. And in terms of the cost basis, a point that I highlighted when we revised the guidance upward, the cost base actually ended up being lower compared to our initial expectations.

And the questions come from the line of Tom Narayan from RBC.

My first one, Antonio, I think I didn't hear it, and you said it, but could you please review the bridge again from Q3 to Q4? I know the Daytona's are zeroed out, but then maybe review the -- maybe the R&D and SG&A. And then I have a follow-up.

Yes. With respect to Q4, Tom, I said that there will be lower deliveries year-over-year. That's a point that we already in the Q2 call. This is to be read in connection with the changeover models that we discussed. Then I said there will be a positive product mix, although we expect it sequentially lighter in line with the phaseout of the Daytona and the first unit of the F80. And the last point is that we expect higher SG&A and a seasonal step-up in racing expenses for development of the applications for the car as well as higher SG&A that are dictated by the start of production of the new models.

Got it. Okay. That's very helpful. And then I have a kind of high-level question. I think in the past, you said that when there's a new kind of form factor, like Purosangue was a very different vehicle than you had ever made in the past that initially, obviously, there is a -- I don't know, like a margin headwind relative to -- if it was a standard product that you've done before at the same price point. How do we think about the Elettrica from this standpoint, given that it's a completely different form factor, is it safe to say that there's a similar kind of margin headwind relative to models that you make at a much larger volume requiring less incremental new spend? Is that a safe assumption to make?

I think, Tom, you have a good memory. That's what we said about Purosangue, but we said it when everything was announced and everything was clarified. So I don't want to look like unpolite but if you are patient a little bit, then we will be more precise on that. But before I said, like you remember, we told you everything when the shape was visible and not only the shape...

We are now going to proceed with our next question. And the questions come from the line of James Grzinic from Jefferies International.

I guess I have really a philosophical question for Benedetto just to follow up on Flavio's. I think Benedetto, you've made it very clear that you expect a higher rate of innovation to continue to really support your pricing power for the brand -- when I consider your 2030 plan, you seem to assume that, that lever, that price/mix lever is going to be much less important than in the past. Is that -- should we be thinking that the rate of innovation in the next 5 years reduces to go hand-in-hand with that price/mix lever being less important than in the past 4 years?

No, I think that innovation rate does not slow down, honestly. I think we have several innovation in the pocket that we plan to apply to the different cars, each one for its own positioning. And I mean if we would sit on the innovation, I don't think we would be call it Ferrari. So the reason why I was very clear with the question -- the answer to the question of Flavio Cereda is because we have several levers of innovation that go beyond the traction. There is the vehicle dynamics, there is user interface, there is architecture that is the driving trails that we feel confident that once we apply this to the different model, we will be able to delight the client and thus to use properly the pricing power because we are not -- I would like to maybe underline one point.

We are not a company that is increasing the price of the same object just because time goes on. No. We increased the price of what we do because we put something more innovative in it and because this innovation is going to delight our clients. I think this is important. If you see also the way we increased the price in the past years, well, Ferrari has been unique in the sense that we have not increased the price of the same object, but we have put the innovation in the product and that because of a high degree of innovation, high degree of delightment of the client, we exerted properly the pricing power. That has been and that's going to be in this way, James.

And the questions come from the line of José Asumendi from JPMorgan.

Just one question, please. I guess frequently asked the question after the Capital Markets Day with regards to, I think, very exciting future, I think right products that you're launching into the market, but they also require some investments such as the launch of Elettrica. I think some lesser investments like the paint shop and I think all the credit facilities we saw during the Capital Markets Day. The question is to create a stability of margins in the business model, how can we think about the offsetting elements, the positive contributions you're going to have in the medium term to create that margin stability? And there might be some doubts in the market about the margin stability of the business model. How can we think about that balance between investments and then the opportunities you have to maintain and create that margin stability that you've shown, I think, in the past years?

Let me see because there was some noise just to make sure that I understood properly, José. I think that if you want this question for me, the answer is very close to the previous one. The only way -- first of all, we are living in uncertain time. Yes. There is no difference also if you want to many other cases in the history. Now the only things we can do is to make sure that we keep innovating so to offer something that is unique to our clients, unique in the performance in engineering, unique in the design, unique in the way we do it because why are we doing the paint shop? Why are we doing -- why did we do the e-building? Because we want to be unique in the way we manufacture our cars, whatever they are ICE, hybrid and green electric. Why we are showing in a multistep way the innovation of Elettrica because we want to make sure that all the work done by the engineers -- well, it's not going to be lost because there are so many new things in this car as well as in other cars that we will make sure that innovation is properly, is properly, let's say, explained to our clients.

We noticed it -- let's put it this way, we noticed that for some cars in the past, there was a lot of innovation content or there were several innovation content that were not properly explained. And this is an area of improvement we have. When we do something new, even on technology, on design, on engineering, we have the responsibility to explain well to the world because behind that -- beyond that, there is the work of many people, blue collar and white collar. So this is the philosophical question or the goal of this question of this company is to make sure that on the innovation side, whatever we do is unique. And this is, if you want, the best guarantee of the long-term sustainability of what we do. That's it. I only if you are unique, we can do something that guarantees the long-term sustainability. That's the reason why we gave you a floor for the end of this decade, and we feel confident about that because of the uniqueness of what we do.

And the questions come from the line of Michael Tyndall from HSBC.

Two questions, if I can. One for Antonio. Can we talk about the F1 budget for next year? So headline number, if I'm not wrong, is USD 215 million from current USD 135 million. From where you're sitting, is that just an incremental $80 million of cost or does the scope change mean that actually the impact on your P&L is considerably lower than that headline number? And then the second one is just around can you talk a bit about FX on the order backlog? What scope do you have? And how much do you really want to push in terms of trying to offset what's going on with currencies on a backlog that now runs into 2027?

Thanks, Michael. The first one really the fuel cost increase. That's an element we need to take into account. So if the F1 budget grows, this flows into our cost, and this is to be taken as a cost increase. On FX on the order backlog, based on the agreement that we have with dealers is in principle, we could change pricing with a 90 days anticipation, I guess. So that's something that in principle is possible. We decided on a country-by-country basis and depending also on the move in terms of the exchange rate on the size of the move.

Thank you. Given the time constraint, this concludes the question-and-answer session. I will now hand back to Benedetto Vigna, CEO, for closing remarks.

Thanks for your time today and also for all your interesting questions. Thanks a lot. We remain focused on executing our plans throughout the rest of this year. And also with confidence, we'll begin to build the next phase of our new business plan. It's a business plan that is ambitious, and we are highly confident that this is going to happen. We'll deliver on our promises as we already did so far. And this -- after this, I wish you a good morning or afternoon. And I thank you again for your attention and your questions. Gracias.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you, and have a good rest of your day.

Ladies and gentlemen, please welcome on stage Ferrari Executive Chairman, John Elkann.

[Foreign Language] good morning. Welcome once again to Maranello, our home and the heart of Ferrari. Every time we have gathered here for our Capital Markets Day, it is an occasion both to reflect and to commit. In 2018, when I stood here with you, I spoke about the spirit of Ferrari, a spirit born from Enzo Ferrari and kept alive by all of us in the company. In 2022, as we marked Ferrari's 75th anniversary, I underlined how we would face the transformations of the decade with ambition and humility. Today, I stand before you to say that what we declared then remains true.

When Ferrari went public on October 21, 2015, the world took a closer look at us. Many wondered whether a company built on passion, innovation and craftsmanship could also thrive under the discipline of the capital markets. Ten years later, the answer is clear. Ferrari is a stronger company. Since the IPO, we have invested EUR 6.5 billion in capital expenditures, building the foundations for our growth and our future. The e-building is a proof of it. We have launched 41 new sports cars in this decade, each one of them being a unique expression of Ferrari's DNA. We have doubled our workforce from just under 3,000 people in 2015 to around 6,000 people today.

And we have innovated. We have accelerated at a breathtaking pace, 883 patents filed since the IPO and already 144 this year. These achievements are not just numbers. They are proof of commitment. They are the result of the passion and dedication of the people of Ferrari. Metrics tell part of the story, but they do not define Ferrari. Ferrari is unique. It is unique because of 3 dimensions: Heritage, technology and racing. It is exactly the perfect blend of these 3 dimensions that define the 3 souls of Ferrari. Racing, a story started on the track almost 100 years ago, which defines who we are; sports cars, which embody performance, design and emotions; lifestyle, where Ferrari transcends the car, inspiring a community and a culture that reaches across the world.

And I would encourage all of you to go visit our museums this afternoon and shop. And I was very pleased last night at my table that I had a very nice surprise of seeing one of our investors who had a nice burgundy bag, and I want to thank her for her for that. These 3 souls are the essence of Ferrari. To remain unique, Ferrari must keep nurturing and growing its people. As Enzo Ferrari once said, every factory should have a training center to prepare its technicians for their future work. This is what he did by starting the Squalo Perfezionamento Professionale Alfredo Ferrari in 1945, which then became the Istituto Tecnico Alfredo Ferrari in 1963. Today, we are proud to announce the creation of a pioneering educational hub here in Maranello, which will provide technical knowledge for a new era, training and inspiring generations of engineers, technicians and innovators.

The M-TECH Alfredo Ferrari. M for Maranello, TECH for Technology and Alfredo Ferrari, the names of the father, the brother and the eldest son of our founder, Enzo Ferrari, will come alive in 2029 when we celebrate the 100th anniversary of the foundation of Scuderia Ferrari. The M-TECH Alfredo Ferrari will pave the way for future innovation in the interest of the entire Moto Valley. It will welcome people from all corners of the world here in Maranello.

This is very much at the core of what we believe in. Our founder entrusted us to keep alive the will to progress that inspires the M-TECH Alfredo Ferrari and finds its boldest expression in the Ferrari Elettrica. With the new Ferrari Elettrica, we once again affirm our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing. As you were able to see yesterday, its architecture is revolutionary, 4 independent electric engines delivering full active corners and agility that are consistent with Ferrari's DNA, a unique experience behind the wheel, born of our unmatched vehicle integration know-how, will create new driving thrills.

The technology and innovation workshop of yesterday gave you a glimpse of what is inside, and you will be surprised as the unveil continues. In 2018, I told you that what was behind Ferrari was fundamental that our founder story was the decisive factor in everything we do. That is still true today. In 2022, I told you that passion is the thread that connects us with the world, uniting colleagues and tifosi as one family. That is still true today. And today, I tell you this, commitment is the force that carries Ferrari forward. Commitment to our people, commitment to Italy and commitment to being unique.

And I want to be clear, this is personal. I am committed as Chairman, as the largest shareholder and above all, as someone who has lived Ferrari as a passion my entire life. I am committed to ensuring that every decision we take strengthens Ferrari's uniqueness. I am committed to our people whose talent and dedication are the greatest guarantee of our future. I am committed to our beloved ferraristi, who entrust us with their dreams. And I am committed to our loyal tifosi who are eager to see us winning in Formula 1 as we are winning in Endurance. And it's with pride that we brought the trophy after 3 consecutive wins in Le Mans this year. And I hope you had time to see the trophies before coming in. And if you haven't, please do so walking out.

And I am committed to you, our partners and our Ferrari community, who share with us the belief that Ferrari is not just a company, but a living, irrepressible force. Ferrari has never chosen the easy path. We chose the meaningful path. We will keep investing, innovating and building. We will keep attracting and training extraordinary people, and we will keep proving year after year that Ferrari is unique. We carry this forward together, all of us working for Ferrari. It is a responsibility we embrace with pride. And with that pride, we continue writing our uniquely Ferrari story. Reminded by the Medici family motto Festina lente, which means make haste slowly. We know that everything that grows must do so steadily to last.

I now invite Benedetto to begin the presentation and want to take the opportunity to thank him and all our Ferrari colleagues on behalf of our Vice Chairman, Piero Ferrari, who is here with us and all our Board members who are here for what they have done and what they will continue to do. [Foreign Language]. Thank you.

Good morning, everyone. [Foreign Language] to people that were not with us yesterday and to all the people that have had the opportunity to enjoy a nice dinner in a place that was not displaced by a storm like it happened a few years ago. So the main reason why we did this e-building was to make sure that when you were coming here, you could have a safe place. Having said that, it's really a pleasure to have all of you here because if there is a way to define this place, I would say this is a place where great determination, curiosity, passion with an Italian sense of elegance and craft of manufacturing help us to make something unique. It is helping us to follow the purpose of our company, audaciously redefine the limits of possible.

I would like to start from 2 sentences that I shared with you. You may not remember, but I remember well because what we say and we commit to you for us, it's something that we keep repeating every day. The last Capital Market Day at the end of the meeting, I said the plan is ambitious, it's challenging, but we commit to do that. And we did it. We did it. Yesterday, when I concluded the introduction of the presentation of Ferrari Elettrica, I told you this is a place where we do what we say, either infrastructure, e-building, or on product, and I add today on financial, but this is Antonio that will show you what we did. So these are 2 sentences that if you want, is a kind of summary of what we did in these years. And we do this keeping in mind 3 important things: Consistency, agility and respect.

Consistency is important. It's important extremely in a world where things keep changing, where uncertainty level keeps very, let's say, changing day by day. But the consistency with the values, the DNA of our company is key, together with what, the agility. Because one thing is clear, 3 years ago, when we met, we had nobody -- I'm sure nobody else was envisioning what is the reality today. And I think the company has been able to manage, thanks to agility. Always keeping clear the value of respect and attention for all the people around us because Ferrari is not only the people coming in this place, another Ferrari site, Ferrari is all the community around us. It's 4 years I'm in this company. Time goes too fast. And I think with the team and 6,000 people that every day cross the threshold of the main gate, we have been working to reach, to make possible what we are going to show you today. And I have to say that without the tireless effort of all the colleagues, without their straight feedback, without open dialogue, what we did wouldn't have been possible. And this is something that is very important for this foundation.

Cultural foundation is very important for our company because it helps us do things: One, focus; two, to keep the wheel on the ground. So let's start to see what is this company, how this company is -- what is the essence of this company, the source of this company. John has said clearly that we have 3 souls. We have the racing, we have the sports car and we have the lifestyle. It's the interplay, the coexistence, the overlapping of these 3 souls that define uniquely our essence. And our essence is unique because we have a dual nature. We are inclusive and exclusive.

We are inclusive because we talk to many people. We nurture the dream of a lot of people. The tifosi, the brand lovers, but we are also exclusive because we fulfill the dream of a few. And I think that being inclusive and exclusive, especially in the world of today, makes us more and more unique. But uniqueness does not only means to be inclusive and exclusive. It means also that we, as a company, we have 3 dimensions that make us unique. We have the racing, the heritage. We have the technology and we have the racing. When we talk about heritage, imagine 1947, the second world war was just ended. The asphalt was still missing. A person said, "I want to do a 12-cylinder engine." And he did it. Many people were telling you will not make it. He was a visionary. He believed with grit, determination, passion, optimism. He made something that today is still on the road, the 12 cylinder.

It's this sense of -- this will to progress, this grit, this determination that is with us. That is what we call today heritage in the past was innovation. And the heritage and innovation go hand in hand. And this brings to the technology dimension because technology is fundamental in our company to continue to do innovation because in our company, we don't like technology push. We don't like market pull. We anticipate the market, the client needs, the ferraristi needs. We want to delight them. We like to say that time to market is important. In our company, we follow emotion-driven innovation. You will see this later in the presentation of Ernesto.

And then there is also another important point. I have been spending more than 25 years in technology space, in high tech. And I can assure you that the level of innovation, the way -- the deep passion, the way the people read the technology here is really unique. And then there is a third dimension. Well, this company started with racing. Racing, what does it mean? To compete every day to show that you can improve every day. You can learn every day. You can try, learn and adapt quickly. It was in this way Scuderia was born in 1929. It is the first car that left the main gate, the 125S that was a sport car. These are the 3 dimensions that make our company unique.

Today, I will share the presentation. We'll show you where we are heading to. We show you also what we did. And I will share the presentation with other colleague. So I will have the pleasure to have Enrico and Ernesto that will explain more in detail the sport car world. In this sports car world, what we are unique, unique proposition for unique clients. Ernesto will drive you to the innovation that we are doing that go beyond the surface that you can see on public news or on the web. There is much more this. So wait for his presentation. And then is Carla. Carla will show you what we are doing in the lifestyle world, very important for us with remarkable progresses and Carla will show you. And then there is Antonio who will convert, will translate everything in numbers. And I will close with the decarbonization.

So I'm sorry if someone of you will be upset because I was outside and some people were telling me, I hope you don't spend time to talk about ESG. I think this is not a matter of spending time. We are a company. We are a leader. We don't have to do only great product. We don't have to deliver only unique experience. We have also to take care of all the ecosystem around us. And you will see that what we are doing there is also on track.

So let's start. One chart, what we did. One, I would say 1 year in advance. We've been able, thanks to client, thanks to what we did in the company, thanks to also what all the people around us, the supplier, the dealer, the sponsor; we have been able to achieve our goal 1 year in advance. You will see the detail in the presentation of Antonio.

Two, 14. What is 14? It's the number of car model we've been unveiling in these 3 years. John told you that the number of models we announced that we unveiled in the last 10 years was 41, 14 has been done in the last 3 years, in line with our commitment of 15. E-building, this place is a demonstration that this company does what it commits to do. Three years ago, this was not existing. The team led by David and other colleagues did it in 2 years, 6 months ahead of time because we believe that agility today is very important, and this building gives us the agility that we need on the manufacturing side to follow our product strategy.

And then last but not least, we committed last time to win in racing. We did it with the 499P in Endurance, and to win Formula 1, we have to improve. Also there, we have to win because we owe it to our loyal tifosi all over the world. So we have 3 souls, which are the ambition for each one of this. In the field of racing, we want to win. It's important this dimension because being unique, as I told you, we have to be inclusive and exclusive, the racing world helps to nurture, to feed the inclusiveness dimension. Then we have the second part that is sports car and lifestyle, where in sports car and in lifestyle, we want to continue to grow. We want to continue to grow, having in mind that we need to be unique. And to be unique, we have to master scarcity in everything we do because it's only the blend of scarcity, the proper management of scarcity and of all this dimension that makes us more and more unique.

In the sports car, in particular, we want to continue to be exclusive. Our business, you will see later, is not a story of volume, also because we want to fulfill the dream of you. And also there, you will see in the presentation of Enrico, you will see all what we are doing to nurture the community. What we are doing for our ferraristi, the people that own our beautiful cars. In the field of lifestyle, the ambition is very simple. We want to enrich the client experience and to enlarge the audience. We want to entice more men, more women to be part of our family. These are the ambition, and I would like to drive you through each one of this ambition.

So in the racing, we want to continue to redefine the limit of possible. That's where we are born. Racing for us means we have to do constantly daily review what we think and challenge ourselves because that's the only way you can really do something unique. We did it in '29. Enzo Ferrari did it in 1929, nobody of us was there. And he started with Endurance with Formula 1, 1949, 1950. I think this is important because what we develop over there is migrating, is going to the sports car. You will see later that our electrification journey is not something that pop up from nothing. It's something that started in 2009.

When I got here, I was surprised at how much the company was advanced in electrification journey. And since we don't want to stop to what our founder started means racing, competing on the road and on the track. It was 2 years ago, '22, end of '22, when we decided to also compete on a new field on the ocean. So we started this Hypersail project. Some of you have been attending yesterday the presentation of Matteo and Marco. Basically, we show you what we want to do over there. And we want to do this because we believe in the value performance, innovation, sustainability, and we want to compete enough shore races, enough in oceanic regattas.

You will hear something interesting from Ernesto because when you look at the reality with different eyes, when you have the cross-pollination of different world, well, innovation can really pop up. And this is something that we have already a practical demonstration in that respect. Open innovation can come only when you see the reality with different eyes. In the sports car, we have been a strong believer since the last time we met of the importance of technology neutrality. We told you clearly that our product strategy was different Ferrari for different clients, different Ferrari for different moments. We are working. We are selling our car in more than 60 countries.

On one side, we have to comply with all the regulatory, okay, in all the countries. On the other side, we want to make sure that we harness any available technology that is now present to make sure that we deliver unique emotion to our client. So basically, we wanted to make sure that either on the culture of the company or in the infrastructure, we have the agility that is needed to have that fast response, okay, to what the clients are asking for. So at that time, the e-building was not existing. I'm sure you noticed yesterday evening, during dinner, that the cars around us were ICE or hybrid. You could not see Elettrica because it's very secret in some place, but you see different kind of car, and there were not 2 equal cars one after another.

Because I think agility is important. And this e-building gives us the opportunity to have a lot of new technology to become more agile, to become more compliant with the environment and to master well our technology neutrality road map. In '22, we told you, by 2030, we expect 20% of our offer to be ICE, 40% hybrid, 40% electric. Well, it's today, October '25, where we say that the 3 numbers changed. The 20% ICE became 40%. That's what we see for 2030. And the 40% of electric becomes 20%. On one side, we realized, thanks to the strong need of personalization of the car, that for us, for our company, for our client, it's important to pursue a horizontal diversification, product diversification strategy. It's better to have more model with limited volume than a few model with higher volume. That's our strategy.

So it means that in this period, we understood that it's important to increase more the number of ICE and to limit a little bit the number of electric. This is '25. We are an agile company. We'll see in a few years how the world is changing. It's important for us, the client at the center of what we do, and we have to follow what on one side, we believe, on the other side, what the client are thinking. I can tell you that during these years, we talked with several clients, and it's clear there are some of our clients that will not take Elettrica, other clients that will take the Elettrica and there are clients that are telling us, I will become a ferrarista if and only if you have an Elettrica.

This is a chart talking about the evolution of the powertrain, but it's not only about this. It's also about other dimension that people today tend to disregard because everyone is just talking about electrification and software. Where in the car, there are many other things. There are the materials. There is aerodynamic that are giving emotion. So you will see in the presentation also more information, presentation of Ernesto -- more information about what we are doing on the traditional innovation direction of car. So one side, the product; the other side, infrastructure.

I told you last time that we were doing 2 big investments, one is the building completed. The second one was the paint shop. This is a picture we took recently. You see something over there that we announced, the paint shop is the one that you see on top of this chart. The paint shop is something -- is a bigger building than this. Maybe the next Capital Market Day will be over there, we'll see. But in that paint shop, we will have the opportunity to do in-house a lot of personalization on the painting. Because among the personalization, the painting is one of the most important. And it's easy to understand because one of the way you interact with the car is through the eyes.

Then there is something else. That is if you want the demonstration of the agility of the company, there is something on the left part of this chart. What is it? It's another track. We call it E-Vortex. We announced it this Monday, October 6. The decision was taken in April with Antonio and all the community. And what is that track? It's a 2-kilometer long track that will allow us to enhance, to test all the production cars in a controlled environment, so we can enhance more and more quality because when you talk about a unique car, quality is mandatory. So this is a demonstration, if you want a formal demonstration, what does it mean for us to be unique, 4 [indiscernible].

I got a phone call yesterday from the CEO and donor of a company, close to the track, he said, "I cannot believe you are even planting the trees already." I said that's Ferrari. We are agile.

And then we are -- the last chart about the lifestyle. The lifestyle, we told you why we do lifestyle? Well, we want to enrich the client experience. We want to widen the audience, also because not all the people that love our brand are in a race track or in a sports car. You can also -- you want to be close to Ferrari also when you are not there. We want to entice more men, more women, the new generation. We want to continue to be relevant. And we want to do it in 3 specific fields, personal luxury good, collectible and experience. We did what we said. We did a lot of progresses. And today, we decided to give more space to this activity, and Carla will guide us through this.

And before to leave the stage to Enrico for unique proposition, product and experience, well, there is one point. The audience is the most important part because this company is made by people. A lot of companies may claim that the people is the most important thing. But I can tell you that this company is really made by people, the people that are coming in this place in Maranello or in other facilities of Ferrari, but also all the people around us. I'm talking about the client, 180,000, 0.2% of the ultra high net worth individuals in the world. I'm talking about the tifosi, 400 million. I'm talking about all the people that shares this sense of attachment, belonging, love for our brand. And this is also a way to say without them, what we did would not have been possible. Without them, what we did would not have been possible.

And this is why I'd like to say thanks to all the colleagues that are with us now and that were with us before because this company now is the result of what has been done so far. Thanks to our clients, thanks to the trust of our clients. Thanks to the supplier, the dealer, the sponsor, thanks to you for your trust in us in what we do and also thanks to the local community, to Maranello community that -- to whom we owe a lot.

And on this note, I would like to leave the stage to Enrico that will guide us through the unique proposition of what we do for our unique client with unique product, unique experience. [Foreign Language] Enrico?

[Foreign Language] and welcome also from my side. Benedetto in his speech has been using the word consistency. And I'm happy to underline in my presentation how consistency has been driving our commercial activities, confirming and developing many of the commitment that we took during our last Capital Market Day back in 2022. My objective is to take you through the main projects and opportunities from the commercial side. And the best way is to start from this sentence, which will represent the core of the commercial activities. Our community is united by a shared passion, the Prancing Horse, an unforgettable experience.

Now you will hear me repeat several times the word unique. And uniqueness is one of the main elements that connects the dots of all the commercial activities. In fact, we always like to underline the fact that we have a unique proposition, well represented by the concept of Ferrari Forever. I will come back on this subject, which is very important. We have unique clients and a unique way to manage our clients through unforgettable experiences. Now let's start from the first uniqueness, which is well represented by the concept of Ferrari Forever. You will hear me repeating this concept, Ferrari Forever.

We'll deep dive on 4 main areas: Our product range, our design approach, our engineering and manufacturing approach and last but not least, our people. This slide is probably showing one of the most important elements of uniqueness of the Ferrari business model because we are probably one of the few companies in the world that is still having in the market most of its production. Since the start of our activities back in 1947, we have been introducing 330,000 cars in the market. And we know that much more than 90% are still alive in the market and require our constant attention.

Another element of uniqueness is connected to our design approach. Every single new model is a piece of art and remains very unique and contemporary, never getting old from a design standpoint. This is a choice the company made since the very beginning to make sure that every single model, every single car that is introduced in the market has a specific soul and remain modern always, today and tomorrow. Images that you see on the screen represent some of the most iconic models that clearly show how much we were able to blend tradition and innovation to keep every single model alive until today. The same approach has been applied on the technology and manufacturing side. Since ever and even now and in the future, we have been very careful to identify what are the core components of the car that we need to develop and produce internally.

This is extremely important because it gives us the possibility to develop a competitive advantage, but at the same time, to be able to grant the availability of the main components in the future. This is becoming extremely important, even more than in the past because we are entering a new era of technology. And as already mentioned in the previous Capital Market Day, we work to identify the new components that we consider relevant for our future. Electric engine, e-axle and high-voltage batteries are some of the key components we decided to develop and manufacture internally in order to make sure to create a strategic advantage for our product, but most of all, to ensure our clients that every single component will be available in the future. Every single component will be available in the future. This is extremely important to reassure our clients.

Despite the introduction of a new technology, we'll be able to grant them the pleasure to drive their Ferrari also in the years to come without any concern, knowing that every single component inside their car will be replaced by a new one manufactured by us. To underline this commitment, in addition to the normal warranty, we have developed a strong set of additional warranty programs, the extended hybrid warranty, the power warranty that basically are ensuring the availability of every single component in the future, giving our clients the possibility to achieve what we call peace of mind when you purchase, own and drive a Ferrari.

Last but not least, it is important to talk about people and how we make sure this uniqueness is well managed and maintained in the future. To nurture our Ferrari culture and people quality, we put in place a strict process of assessment in the recruitment. We are probably one of the few players that make sure that every single person working with us directly or through our network are directly assessed in terms of competence and capabilities to ensure the right messages and service for our clients. Then a strong training commitment is requested. We have been mentioning that since the very beginning, our founder was considering training a key factor. Our Chairman mentioned it.

Now we made sure that this is going to be deployed also to our employees. And we created a long list of courses in aftersales, sales, marketing, communication that are developed and delivered through an internal academy that continuously developed tailored courses for our people. About 50 tailored courses are offered on different topics, which translate in an average of 9,000 people trained in classroom and 40,000 online courses delivered, quite impressive for a small company like Ferrari. Finally, we make sure that we have strict rules to assess the performance of our team through activities that allow us to measure how much we are achieving our overall objective to be unique. Yes, training, but checking point.

Now let's move to the second chapter, and let's talk about our clients. You know how important our clients. And again, here, we have some specificity. The uniqueness is the keyword as every single person when buying a Ferrari, we believe it becomes member of the Ferrari family, which trigger the need of a personalized and tailored offer. Client segmentation and specificity, product strategy, product offer, emotion delivered and personalization offer are all key components of this strategy.

In the last year, we have been able to further expand the family of ferraristi. You always ask us what happened in terms of recruiting new Ferrari clients. Today, we have around 90,000 active clients, which means clients that bought a car in the last 5 years, meaning plus 20% versus 2022, which is a relevant number. And new-to-the-brand clients acquired since 2022 were over 32,000. But we are not just expanding the family, which is very important. We are also expanding the garage of our collectors. The number of cars in the garage in only a few years increased by more or less 20%. And out of our top collectors, 45% are new, which means that we have been able to rejuvenate and bring on board new people that like to collect our car.

All these new clients allowed us to enlarge the Ferrari family, but also gave us the possibility to maintain the average age of our clients stable. The uniqueness of the Ferrari business model is even more evident when we look at the age distribution of our clients. This is what this chart is showing, which is extremely important in our commercial strategy. Why? Because we are not targeting only a specific client target in terms of age. Each client is unique, and we like to talk to clients across all generations. On one extreme, the ferraristi of the future, the future Ferrari collectors. And on the other extreme, people with time and resources to enjoy the pleasure to drive a Ferrari and join the Ferrari family.

All this has been achieved, thanks to the success of our product strategy. Here again, I'd like to mention the word consistency and also Benedetto mentioned this before. Our product strategy hasn't changed in the last years. You may remember, we used a similar chart back in 2022, which represents our aim to create different Ferrari for different ferraristi and different Ferrari for different moment. What does it mean? It's simple. It means that on one side, we develop products that are targeting new-to-Ferrari potential clients. Different Ferrari for different ferraristi. On the other hand, once they get on board and once they own and drive a Ferrari, there is no reason why they shouldn't own more than one in order to have the possibility to use the car that is perfectly fitting with the specific need of the specific moment, have become collectors. This approach is creating a product range, allowing us to attract a different client profile. That's very important if we want to be successful. And the chart is clearly presenting this concept. On the left side, there is what we call the sports car driver. Every single Ferrari is a true sports car, but the offer on the left is targeting clients looking for performance, Ferrari, but also comfort on board, Amalfi.

On the extreme right, we have the so-called pilot models, which means that our aimed for clients that are not compromising on performance and that are looking for the most extreme technology. Well, we just launched the Testarossa. Now we are happy to say that very soon, we will also have a new model enriching our product offering, the new Ferrari Elettrica. We believe that an electric vehicle will be the ideal addition for the specification we have in mind in terms of driving sales, experience on board and usability. And it will allow us to attract and satisfy a different client profile. Benedetto was clear in saying that. We have people willing to enter the Ferrari family, thanks to the electrification journey.

But you will know more in the future. And after the presentation of yesterday, also Ernesto will deep dive in this incredible technology we developed for the new Elettrica Ferrari. The end result of this incredible journey is that our team has created probably the most incredible and complete product lineup ever of the company. Look at this. All these models and the constant add-on to our portfolio are allowing us to attract and satisfy new and different client segments while maintaining the exclusivity per model. All these new products are designed with a clear objective in mind, which is to create unique emotion for our clients. This chart is very important because it shows you how we develop a new model.

Because when we start developing a new model, we always start looking at the 5 technology foundation. Powertrain, aerodynamic, vehicle dynamics, architecture and human interface. Later on, you will hear more about that. All these elements allow us to define the main characteristics of the car that are then design, performance and driving thrills, which represent the 3 pillars of our competitive advantage. But our job when developing a new car is not finished yet as we need to find the perfect combination, delivering what we call the Ferrari emotion. You keep talking about Ferrari emotion.

Now the Ferrari emotions are something that our engineers are able to measure with clear KPIs. When we sit and we discuss, they come with clear demonstration of the level of driving thrills delivered by a car. But I prefer to say that the Ferrari emotions are something that we can simply measure looking at the smile of our clients when they sit and drive one of our models. It's very simple. You see the pleasure in their face. The uniqueness comes also through the opportunities we offer our clients to personalize their car. It's a very important piece of our commercial strategy. We like to say that there is no one single client car equal to another in the market, 100% are different. Every single model delivered goes through a structured and complete program of personalization that goes up to the tailor-made or even to the one-off in order to make sure that every single car entering the market is designed by the client who creates a unique piece of collectible for its garage.

Now let's come to the third chapter, which are the experiences. And this, again, is a very important piece of our commercial strategy. Because when you own a Ferrari, it's very important to make sure you have the opportunity to enjoy it and enjoy the fact that you are part of a community, the community of ferraristi, which means to be part of a passionate group of people and even more important, to have the possibility to enjoy your car with people with your passion. That's why when we talk about experiences, we have been very focused in creating a long list of opportunities that goes from activities on track to satisfy clients that want to have the thrill of driving and reaching the peak of performance in a safe environment like the track. Brand activities, which are opportunities for our clients to stay together to share the passion, either through a lifestyle presentation or through a race or through a presentation of a new product. And then, of course, all the activities in order to give them the possibility to drive their car on road and to share the passion with other ferraristi. Now it's difficult to explain all this. Maybe the best way is to show together a short video.

[Presentation]

Well, I have to say we are privileged to have the possibility to work on this incredible event and most of all, to have the possibility to share this incredible moment with our client. Now making another step in the experience side. Any family requires a home. And that's why we have been very careful in working together with our partners on our network coverage. And here, we took a few but very important actions. Number one, we don't want to be everywhere. We want to make sure that if you decide to enter the Ferrari family, you can have the best possible experience. And that's why we have been very selective in identifying where to open a sales showroom. Indeed, in the past 4 years, we opened only 13 showrooms despite our growth.

On the other side, when you own a Ferrari, you want to have the best possible service. You don't want to drive 3 hours to get to the closest service. So we have been working with our partner to increase the service coverage and proximity. Every single activity which is happening in our network is highly personalized And, coming back to the point of Benedetto, something we have been putting a lot of attention to also following the desire of our clients that are still asking for, is to work on the decarbonization of our network. It's still true. We established a green dealer award that is awarding the dealer that has been achieving the best results in terms of decarbonization journey, which is still something we are working a lot.

A critical point then is to offer an outstanding welcome when you enter a Ferrari facility. We don't want our clients to enter a normal sales showroom. So here, we have been working extensively on a new corporate identity, whose first execution was already presented in [indiscernible]. As you can see from the picture, the main objective was to put the client at the center, which means that our showroom is not only a place where you go and purchase a car, of course, it's also a place for that. But it's mainly a place where you can feel at home, sharing the passion together with other ferraristi, getting the possibility to reach exclusive destination and where the digital experience enriches the physical one, doesn't substitute. The physical touch and the physical presence remain extremely important for us. To tell you more about, again, let's see another video.

[Presentation]

A new home for uniqueness, needless to say that the first reaction from our clients has been extremely positive. We already talked about personalization, but we also plan to leverage on the constantly growing request of our clients so that our focus will go also in creating places directly managed by Ferrari that allow our clients to live the experience of designing the car of their desire. That's why together with Maranello, New York and Shanghai, which will be completely renovated, we are already working to expand our tailor-made centers to get closer to our clients, working on the opening of Tokyo and Los Angeles in order to better serve the clients living far away from the already existing one.

So far, I tried to summarize some of the key activities of focus for us. But what's next in terms of product launches? Well, as you see from the chart, in the next business plan, we will have the confirmation of the speed of innovation that we've been following so far with around 4 launches per year to capture the opportunity to target new segments and/or new clients' need. We believe, as Benedetto said, in a horizontal product diversification strategy, and this is going to be also in the future, our direction. As you heard already us repeating several times, among our future lineup, a special place is taken by our new Ferrari Elettrica, which is going to be the main add-on to our product range, allowing us again, I repeat it, to reach and target new clients particularly interested in this technology.

Yesterday, we presented the main technical elements of this new model. Here, you can read the product manifesto. I would just highlight a few words, which are underlining the core elements of the new Ferrari. Reframe, reimagine, reinvent. The Ferrari Elettrica is a completely new breed.

Thank you very much for your attention. And now I leave the floor to Ernesto.

Thank you, Enrico, and good morning to everyone. Let me start with a sentence that I believe perfectly capture our approach in Ferrari. As part of the research and development team, it is our duty to dream about the future, to envision new technologies that could enhance performance and drive increase of our car. At the same time, we must remember to keep all 4 wheels on the ground, ensuring that what we see and imagine for the future become our present through a continuous and scientific learning process.

As Enrico already said, we start from our diversified client base and their needs. All our models are designed, engineered to satisfy different client needs in a unique way. For this reason, we believe that agility and technology neutrality are 2 fundamental factors. We offer and we will continue to offer our client car with different powertrain and unique positioning with the addition of the Ferrari Elettrica. Here in this slide, you can see where we are positioning the Ferrari Elettrica, which is the result of a deep research about a new sports car concept. The Ferrari Elettrica enlarged our range model in terms of driving thrills, experience on board and usability to create a unique driving experience.

Then 3 different powertrains; ICE, hybrid and eletric, each one able to provide unique emotion to our clients. And how do we achieve this? As you can see on this slide, focusing on 3 different pillars. The agility and the technology neutrality give us the opportunity to mix different feature as we like and in such a different way to deliver specific inventories and unique cars. 3 of the most crucial features are powertrain, body style and body frame. Regarding the powertrain, clients will find thermal, hybrid and electric in our offering. On the thermal side, we continue to develop our V6, V8 and V12 engines with the goal to continuously improve their performance and efficiency and at the same time, being compliant with the new worldwide regulations.

On the electric side, we have a clear electrification road map for the engine, for the inverter and the battery. And from the merge of the best thermal and electric technologies, we have our future generation of hybrids. The key components of thermal, electric and hybrid powertrain are handcrafted in-house.

Moving now to the second feature, the body style. We started from the Coupe and the Spider and we expanded our offering. We introduced Purosangue to provide our client more room and some comfort on board, and we plan to keep these 3 body styles in our product portfolio also in our future. Last but not least, the body frame, where research of new materials such as aluminum and carbon fiber is instrumental to increase the performance and reduce the weight.

Okay. After our unique product development strategy, I will address the 2 most important pillars. As a first step, I will show you why the racing activity are so important to us as what kind of technologies we can derive from them. I will then move to how we innovate. And in conclusion, I will tell you what we plan for the future. So let's start from the technology transfer from the racing activities.

Racing is part of our DNA. As you can see, for racing means Formula 1, World Endurance Championship and Hypersail, our new sailing adventure. Formula 1 and WEC are our advanced laboratories, from which we can derive new technical solution and innovative material. And we go a step further because we transfer this technology on sports car, maintaining the extreme racing performance.

From Formula 1, we derive solution to develop the best thermal engine as V6, the electric engine and the high-voltage battery used in the F80 and the main components of the power electronics. From Endurance, we derive technology such as the aerodynamics of the F80, the braking system and the carbon fiber chassis, which is the lightest in the world. To these 2 worlds, we have recently added the Hypersail, our new adventure in racing over the seas. Here, the know-how goes both ways as it is not restricted by racing regulation. This gives us the opportunity to read the technical solution in a different way, leveraging on the creativity of our engineers. And soon -- very, very soon, you will see in our sport car innovation coming from Hypersail.

The internal combustion engine has always been part of our DNA. We will continue to offer thermal engines in our product portfolio and bring innovation on V6, V8, V12 engines by keeping on increasing the specific power. And as I said, racing plays a crucial role in our innovation activities. We will also invest to make our thermal engines compliant with future regulation. In addition to that, we will make sure our engine perform with alternative fuel such as e-fuel, being ready if or when this technology should spread on global scale.

Let's move to electrification and tell you in detail the progress made so far and the key feature of our technology. Our electrification path started in 2009 in Formula 1, while our first hybrid sports car was LaFerrari launched in 2013. At the beginning, we codesigned with our industrial partner, the electric engine, the electric components and the battery with the goal to study the technology and to acquire know-how as much as possible. The F80 represents an important milestone, a key milestone for us. The electric engine, the power electronic and high voltage battery are designed, engineered and crafted for the first time internally in Ferrari here in the building where we are today.

As we do for the ICE, also for the electric technology, we remain consistent with the strategy of designing, developing and crafting our core and strategic components internally. Cell are the only component not crafted internally. However, even if we purchase them externally, we have developed a deep expertise to select the best technology available. For this reason, in April 2024, we created a research center in collaboration with the Bologna University and NXP with the aim of gaining more expertise on the cell technology. But let me be clear on this point, very, very clear. We do not plan to start manufacturing cells ourselves. However, we believe it is important to get enough know-how to talk the same language as our industrial partner to develop together the best technology possible.

Let me now better explain our distinctive technology of the Ferrari Elettrica. I will focus on 5 elements: The chassis, the e-axle, the inverter, the high voltage battery and the active suspension. First, the chassis. The battery system is fully integrated into the chassis. Two, reduce the weight and moment of inertia, keep the battery as low as possible while adding structural rigidity. Second, the electric axle, which are composed of the electric engine plus the mechanical transmission. Those are designed to maximize power density and efficiency. The design of the electric engine was inspired by MotoSport to maximize torque and reduce weight. We then industrialize it without compromising on performance.

Third, the inverter are designed in-house and integrated into the e-axle with the goal to be compact and light. We use the most advanced semiconductor technology existing today on the market, such as the silicon carbide for better performance. Fourth, the high-voltage battery pack that was designed to have the best energy density and the minimum weight. The integrated cooling system keeps the cell temperature uniform and ensure consistent performance. It is also designed with clients in mind, so it can be updated and replaced to ensure, as Enrico already said, that Ferrari will be forever. And lastly, the third generation of active suspension, which controls the vertical force on each wheel in a real time, improving ride, comfort, stability and cornering performance.

The next chapter is about innovation. Innovation is key to redefine the limit of possible, always keeping in mind our client needs. Today, to conceive and to develop a sports car, a multidisciplinary know-how is needed. For this reason, innovation is focusing not only on mechanical, but also on software, electronics, chemistry and much, much more. Due to that, over the past few years, we have reinforced our open innovation approach, both through internal activities and external cooperation. As a result of this, internally, we have filed 5 more patents. While externally, we have doubled the number of active projects with university and expanded the collaboration with suppliers, start-ups and research centers working more and more on global scale.

Let's dive into how we created added value for our clients with controlled investments in 2 words, in 2 simple words, technology epiphany. We don't always have to start from scratch to develop new technologies. We could use available technology, also not related to car in a different way, looking for further application beyond the first natural use. In fact, it is possible to bring technology born from not automatic application into a car, as I explained before, with Hypersail. Another possible way is to work on the software to make the hardware operate differently compared to the reason why it was initially designed.

An example, let's have a look at the Ferrari active suspension we discussed back in 2022. We used the active suspension technology on the Purosangue with the aim to make the vehicle agile in every conditioning, lowering the center of gravity and improving the driving thrills. Later, the same technology was used in our supercar, the F80, and by modifying the software, we made the second generation of active suspension part of the aerodynamic. Instead of lowering the center of gravity, the suspension system moderated distance from the ground and improves the downforce when needed.

And what about the next application? Well, as I said before, we have already created the third generation of active suspension technology used in the Ferrari Elettrica. In the car, there are 4 types of software, but for us, not all of them are equally strategic. The 3 software at the bottom of the slide are not a focus for us. We could either decide not to develop the future as in the case of autonomous driving or we could codevelop them with our industrial partner as in the case of infotainment software. This approach will allow us to focus our investment. For the vehicle dynamic software, which plays a crucial role in the driving thrills. We will continue to develop it internally as it brings added value to clients. We leverage here over 75 years of expertise, and it is really a unique asset of Ferrari.

We combine the deep technical know-how of our engineers with the experience of our test driver. But what are the innovation in vehicle dynamics we are bringing with the Ferrari Elettrica? First of all, we have developed a new electronic vehicle dynamics control called the Full Active Corner where every wheel is independent, is driven, steers and has an active suspension. With all these systems integrated and connected in real-time, the result is a unique car, agile on turn, stable exiting on the corner and giving an unbelievable sensation of guidance and precision. We are introducing 2 Manettinos on the steering wheel to create a [indiscernible] driving experience for our clients. An e-Manettino offers 3 electric driving modes; range, tour and performance, which sets the maximum power available. Another Manettino controls the vehicle dynamics. The result is you can choose from driving silent and comfortable Ferrari or an extreme one.

The sound of Ferrari Elettrica is real, it's very, very real. It is pick up from the mechanical and eletromechanical components of the powertrain by a precision sensor. This authentic signal is transmitted for 2 different reasons. When it is functional to provide feedback to the driver or to increase the sense of dynamic performance. The Ferrari Elettrica, we have also pedals that will not change gears, but will control the level of torque and power, which gives a thrilling sensation of progressive acceleration and the familiar feeling of engine braking with the down sheet function. I tried it several times and trust me, is real, real unbelievable.

We are also working on the next generation of human interface, as Enrico said before, together with our industrial partners. And when it comes to innovation, the goal is to provide our clients the best experience on board. For this reason, we are adopting a digital approach for the user interface. This blend of digital and physical will combine functionality and beauty. In the past, we have introduced touch sensor on our steering wheel. However, based on the feedback of our clients, we understood that this technology did not provide them a real added value, and then we decided to come back to physical one.

All our new cars in production have a physical button steering wheel, an option we also make available to clients of past models. We have already said that we do not plan to develop the human interface software in-house. So this will mainly be provided externally, but we are defining feature and architecture internally. A simple, modern and intuitive human interface requires a powerful hardware, and we make sure to source the latest and most performing technology available in the market.

Before I tell you what we plan for our future, I want to talk about decarbonization project we have been working on. Reducing CO2 emission is a priority for Ferrari. And when it comes to scope 3, one of our most relevant project is to use recycled aluminum for certain parts of the engine and chassis. The first Ferrari sports car with chassis fully in aluminum was in 1999, the 360 Modena. Since then, we upgraded to alloy, and today, we are making another step forward by using it more and more recycled. This will allow us to reduce the CO2 emission of at least 75% compared by using virgin aluminum, and it will contribute to reduce by around 6% the overall scope 3 emission in 2030 compared to 2024.

So what about the future? When it comes to the future, we are working on the next generation of sports car on 5 fronts. On thermal propulsion, with F80, we reached a new peak of specific power, but this is not the end. We want to improve more and more using recent technology, new material and innovative engine architecture. On electrification, our ambition is to constantly improve all performance related to electric powertrain, leveraging on Formula 1, exploring new architecture, looking for new technology. On vehicle dynamics, the introduction of [indiscernible] technology in combination with digital twin will allow us to conceive innovative function. On the experience on board, our focus is on digital approach and the beauty of the interior to make the human interface even more intuitive for our clients.

Lastly on materials, which are important for 3 different reasons: Sustainability, weight and performance. For example, cooling that will benefit a lot from metamaterials. Looking beyond the plan of the next decade, there are some disruptive and very exciting project. I give you just a couple of examples. The use of superconductors such as in the electric engine. And on the aerodynamic side, we anticipate an evolution from 3D to 4D with [indiscernible] that can transform themselves in real-time to optimize the aerodynamic performance under different conditions. It is an innovation stream starting in 1961 when Ferrari was the first to use a tail spoiler in a racing car. All this function will be developed and used to maximize the Ferrari emotion.

Thank you very much for the attention. I will now leave the stage to Carla, who will show you how we have innovated the Ferrari product under a different light.

Good morning, everyone. It's a real pleasure to meet you all. So we are now going to talk about lifestyle. And specifically, we're going to see what are the choices we've made, what is the ambition for the future and most importantly, the journey, the evolution of the journey. The choice of the lifestyle is not casual. As you can see on the back of my screen, this is actually encapsulated what the brand is all about. And in fact, this is what the Ferrari universe, it's all about. From the very beginning, in fact, it was absolutely necessary to start from the brand, powerful, unique with its unique duality.

On one side, as Benedetto was saying, inspiring the dream of many with its racing DNA, that is fulfilling the passion of many tifosi. And on the other side, fueling the dream of very few with its sports car business. Sports car at the end of the day give us unmatched driving thrill combined with a unique design, and these make our sports car an undisputable object of desire, a desire that provoke emotion, evoke emotion, the emotion that Enrico was talking before, an emotion that are intrinsically linked to the values of the brand.

And in fact, at Ferrari, we sell so much more than cars. We sell a way of life. Arguably, no other brands have built such a strong legacy and the personality or icons, the few one we pick, you see on my back, are genuine ambassador of the brand, making -- they made and they continue to make Ferrari a brand that is about culture. This has always translated into a widespread desire of ferrariness, which we only marginally fuel over the years, offering something which was more suited for our tifosi. And this is where lifestyle role comes into play.

So let's start. We honed over the past few years into our lifestyle mission, and we've actually been very deliberate in what we wanted to accomplish. Three choice. Number one, brand enrichment. We exist to fuel the [indiscernible] power of the brand, enhancing its cultural relevance and its creative excellence. Number two, it's about experience enrichment. We obviously aim to leave memories to our clients, reinforcing that sense of belonging to the Ferrari community, sense of belonging, which is so important for any brand these days. And last, we are about growing our community, acquiring new customers while pampering existing one by simply giving access to different facets of the brand.

With this in mind, lifestyle strategy can be summarized as follows. The why is actually quite straightforward. Linked to the mission, we have untapped opportunity to expand the brand while preserving our DNA. And more importantly, we can leverage our unique assets, our community and the multiple touch points where we meet them. Think about Grand Prix, think about Cavalcade. These are unique occasions for us to actually fulfill the desire of ferrariness I was mentioning before and reinforce sense of belonging. The what is simply a differentiated expression of our brand. I'll get into this more detail in a second. The who is an incredibly captive audience. These are real Ferrari lovers. These are our ferraristi and our tifosi. And last but not least, the how. The how we are into deliberate journey to brand, product and experience elevation and uniqueness. No matter what is the price point and no matter what is the category we are talking about, this is a mindset.

So all of this, it is not an opportunistic exercise. This is rather a long-term choice that the company has taken. So let's go a bit more into detail on the what. We have 3 pillars: Personal luxury goods, which encompasses our own collection, apparel and accessory and also some strategic partnership with selected licensor, watches, glasses, game. We also have the collectible pillar, bringing to life our racing legacy and our sports car craftsmanship, where iconic engine, one-off artifact or component gets a meaning, become exclusive object to collect. And last, we have our experience. Our museum in Maranello and in Modena as well as our theme park in Abu Dhabi and Barcelona are attracting millions of visitors over the years. 2024 was a record year. In 2025, we are on track to beat it. We are competing with Uffizi and Colossal, being one of the top 10 most visited museums in the world. This is what the power of brand is about and its duality.

Let's go now into the who and the how. And this is actually probably important -- one message important to get. We have a customized approach for our audience, customized approach for our audience unified by one creative curation. The who, as I was mentioning before, is actually made of real brand lovers. This is clearly a big competitive advantage we have, and we go from 180,000 ferraristi to over 400 million tifosi. Both segments are important and both segments are unified by one thing, the incredible passion and affinity they have for the brand.

Naturally, ferraristi will gravitate towards exclusiveness, while tifosi obviously are more inclusive. With such a broad and diverse audience, it was critically important to understand what we were going to offer them, how our architecture would be structured. So we put quite some time to get clear on that. And the approach is actually what we call a tiered approach. What we are doing, we are designing -- consciously designing against their needs to nourish brand elevation on one side and uniqueness on the other, moving from an exclusive world of high quality and manufacturer excellence that Ferrari has always represented with our tailor-made atelier to a more inclusive approach with our fan offer.

Obviously, this is not a static picture. In fact, our customer will move up and down, exclusive or inclusive depending on what is the need, what is the occasion and ultimately, what is their purchasing power, obviously. So if we go a bit more into the detail on what tailor-made is, this is the pinnacle of our offer. This is for our most discerning Ferrari customer. This is where you find one of a kind, made-to-order, limited edition. This is where our craftsmanship is glorified. In here, you have our Maranello clutch, our Nello The Toolbox, our handmade patterns, all requiring superior quality and special care.

Then we'll go into style collection. Style collection is where Ferrari aesthetics and codes merge with artisan values. This is where you find the sensual shape of our car. This is where you find sculptural volume. This is where you find a choice of strong chromatic colors and incredible material development. This is where you find our iconic leather bomber, our reinvented jumper, our bags, small and large leather goods, all for a lifestyle emotion. And here, there is a data point, which actually I want to share with you. In 2023, when I arrived, the #1 category we would sell was caps. The #2 category was T-shirt. The #3 category was jumper. Here today, our #1 category is bag. Our #2 and #3 category are outerwear and jumper. And I say this with no arrogance whatsoever because I know exactly that it will take time and effort. It just means that we are on the right track to progress towards that brand elevation I was mentioning before.

But brand elevation, as I said before, is not just about price point. So we also look with very important care, our creative director looked at it very, very carefully. We look at our fan offer. Our fan offer is obviously for our racing community. This is the most accessible assortment. Still, there is some insight that I want to share with you. Number one, every single fan wants to go back at home with memories. So the more distinctive we are, the more unique we are in our offer for that specific occasion, the happier we will be. So we started creating some limited edition. And whether this is a different colors, different graphic or simply different fit. These are incredibly sought after items. This is an environment very interesting for us because today, there is an incredible contamination between fashion and sport, and this is definitely something we're going to develop further in the future as we move forward.

If we look at the tier approach, the tier approach is also relevant for all categories we talked about. Here, you can see our collectible. From the last, we have the most iconic piece, the engine to the most accessible reproduction and scale of our cars. Same approach. This is just to give us some coherency and some consistency versus what we are trying to do. So after having gone through, let's say, key strategic choices on the who, what and how, we wanted to share with you the journey. How did we get here? What choices did we make?

The first one is about focus. We drastically reduced our licensing agreement, terminating approximately half of them versus 2019 when the product offer distribution were not in line with the position of the brand. Similar exercise was done with our network, closing all concepts and locations that were not appropriate. The second choice was about driving made in Ferrari culture. This is actually pretty important where you don't produce yourself. Driving a Made in Ferrari culture where Made in Ferrari means excellence was absolutely critical. And of course, we did it, first and foremost, by creating an in-house team, very lean, very talented, an in-house team that made this all possible and by giving ourselves some criteria, push creativity, ensure coherence and most importantly, governance. Governance from A to Z from the time there is a drawing to the time these things arrive on shelf. That was critically important for us. And obviously, without the right people, all I'm saying will just remain words on paper.

The last piece was brand elevation, brand elevation at all costs. No compromise, no matter what we're talking about, product offer, channel. So with all of this, I'm now going to share with you a very simplistic -- in a very simplistic way, forgive me because we have the time -- we have a few pictures to show where we were and where we are.

If we look at the product offer, we look at material, we look at design, we look at look and feel, we look at distribution, we look at everything, and we move from here to here. And I'm sure there is much more we can do. Same was done with our stores where, obviously, it was important to gather the right client in the right environment, sending the right message. And our collectible, we gave them back some dignity. These are piece of history. These are piece of legacy, and they need to be glorified. And last but not least, our most ambitious endeavors from our first store in Maranello only 4 years ago in June 2021 to the latest one. And here, I have to say, and again, with humility, the recognition that we are getting from external, it's quite positive. It means that we are making progress, collection after collection, year after year.

With all of this, I just want to say that I hope you see a relentless effort towards 3 things across all access, effort towards elevation, effort towards coherence and obviously, uniquely Ferrari. We also made some effort -- put some effort to drive quality and innovation, drive quality and innovation in our material. Here, you have just a few examples. Our Q-cycle certified fabric. This is directly tied to the automotive world. This revolutionary recycling technology basically transforms end-of-life tires into fiber, applicable to different category of textile.

Leather, our leather, our material. We are experimenting in [indiscernible] with patent leather body work, rubberized assets, et cetera, et cetera, et cetera. And last, our iconic Maranello clutch, probably the most representative example in how we can drive Made in Ferrari synergy, inspired by the red Daytona SP3, each single piece is entirely made in Maranello. I'm going to show you a video that explains this so much better.

[Presentation]

We're almost at the end of it, I promise. Before concluding, I wanted to give you a sense of why we are encouraged by the results and the consistency of the progress we observed. Our offer actually resonates quite well with our ferraristi. Over 50% of our sales are made by our ferraristi. We are attracting new to the Ferrari world. Over 80% of our clients are new, implying that there is some interested to see and buy some different facets of the brand. Last, which is the most interesting piece as well is over 35% of our clients are women aged 30, 40, and they tend to buy more than one piece, women, the whole look.

Lastly, I think it's important to recognize that we are getting clearer and clearer on how to segment our tifosi because when we talk about 400 million people, as you can imagine, there is a universe. And what is evident that there is tifosi, which are incredibly interested to what the piloti wear. Great. We are going to do what we are going to do, and we'll get it better and more unique and better quality. There is also another part of our tifosi, which are more interested into most refined item with racing DNA. We launched Charles Leclerc capsule in May 2025 in Monte Carlo, and it was a proof that actually both for men and women, there is interest in that market, in that refinement for very sporty items, just a little bit less literal. We are going to obviously look into this and next time, we'll give you an update.

So before I conclude, I'm going to summarize what's next. What are we going to do next? Our #1 priority is to continue to nourish our customers, which means focus first on our ferraristi through top-of-the-line pyramid offer and immersive experience, memory experience, leaving the memory, reinforcing that sense of belonging that Enrico was talking before. Our #2 priority is to fuel the passion of our tifosi. Obviously, here are 2 words, uniqueness and coolness. Our #3 priority is build scale at the right pace. And this is actually quite an important point because we are going to have -- in the next few years, we are going to have a right mix between temporary activation [indiscernible] and so on and permanent expansion. 2026 is going to be an important year for us because we're going to open 2 beautiful stores, one in London, Bond Street and another one in New York.

But this is not a number game. We are going to expand only when it's ripe for Ferrari, both from an image point of view as well as from a financial point of view. The third thing is we're going to manage our portfolio. Our portfolio is actually one of the key differentiating factor. We're going to manage it strategically by nourishing and strengthening strategic partnership where we don't have capability or better say to complement our capability. I'm talking watches, I'm talking glasses, I'm talking games. Well, lastly, we're going to nourish brand narrative with immersive and memorable experience in any interaction really, whether it's a fashion show or a tour in our museum.

In conclusion, I hope you got a sense of the uniqueness of our journey towards brand elevation and customization and also the consistency of the progress we made with the customer at the center of everything we do. This is a long-term journey, obviously. We have the ambition to grow at the right pace and to deliver operating margin in line with the rest of the company. [Foreign Language] Thank you very much. And I'll now leave the floor to Antonio.

[Foreign Language] My role is to translate into numbers the ambitions outlined so far by my colleagues. Let me start with this sentence. No matter how many finish lines we cross, Ferrari is never finished. We have found it appropriate because for us, the finish lines are not just the chequered flags on a race track, but also the track record of our financial results that we have the ambition to keep on improving year after year. Because at Ferrari, each achievement is not an endpoint, but a new starting line in everything we do. So before looking at our future, let's take a step back and review our achievement of the past 10 years, 10 years since our IPO of 2015.

Here, you see a few key numbers that well illustrate the uniqueness of our business model also from a financial standpoint. Strict control of production and deliveries to our clients, revenues growing faster than deliveries and profitability growing faster than revenues with a solid cash conversion continuously improving our free cash flow. Such performance allowed us to reinvest in our future with appropriate capital expenditure, as recalled by John, and concurrently to increase overtime, shareholders' reward up to a total of EUR 4.7 billion, almost equally split between dividends and share repurchases. The strength of this track record and the solidity of our current demand with an order book which enters 2027, represent very strong foundations for our future and a much higher starting point for this new business plan compared to the past.

Let me start from the near term with this chart. We revised upward the 2025 guidance on the back of the solid business performance and reflecting the improved contribution of sports car revenues, including personalizations and a lighter-than-expected cost base despite a greater headwind from foreign exchange rates and increased U.S. tariffs. In this respect, the official confirmation that U.S. import duties on European cars and parts are set at 15% from the 1st of August removes an important element of uncertainty. Our new 2025 guidance actually surpasses 1 year in advance the profitability targets we had originally set for 2026 in the previous business plan and speaks well for the speed of achievement of the industrial free cash flow objective too. The decision to complete the current share repurchase program within the end of this year, once again 1 year earlier, also reflects such progress.

As already introduced by Benedetto, from 2026 onwards, our business plan has been deliberately designed consistent with our scarcity model by encompassing exclusivity in both deliveries and client experiences, protecting and possibly expanding our gross margin through a wise management of both product mix and pricing as a function of the emotional and technological content of our products, focusing investments on product development and manufacturing agility to adapt to the evolving macro context. Clearly, we also continue to carefully look at experiential and geographical opportunities whose benefits will be more visible beyond this plan period.

So let's go. As described by Enrico, we have an exciting product pipeline ahead of us. This allows us to cover different client needs and profile while also nurturing our existing collectors. To preserve exclusivity per model through our 4 product pillars, volume growth has been designed to remain very limited throughout the plan period. On a cumulative basis, we expect to maintain Icona and Supercar well below 5%, special series at around 10% and range models above 85%. Being range models that we have learned from Enrico and Ernesto, deliveries of the Ferrari Elettrica in the next 5 years will represent a limited portion of this 85% that we have deliberately planned in line with its positioning.

In addition, we target a well-balanced development of our offering over time. This means that every year, we aim to offer our clients the widest choice with the most suitable powertrain for the different model mission and positioning. As usual, the real challenge is to design a product portfolio evolution for a smooth and linear development of our profitability despite the natural cadence of model launches and phaseout. Across the business plan, we also assume substantially unchanged allocations by geography with EMEA and Americas over 70%, rest of APAC close to 20% and the overall weight of Mainland China, Hong Kong and Taiwan below 10%. As already anticipated, we also continue to work on emerging opportunities for the longer term in geographies where today, we are less present.

Moving to our net revenue bridge. You see that once again, the bulk of our growth in the next 5 years is driven by sports car revenues, also sustained by the visibility granted by our order book. More precisely, we target sports car, including cars, spare parts and car-related activities to generate approximately EUR 2 billion revenues over the plan period, driven by the enrichment of the product mix, along with the contribution of personalizations. In this business plan, revenues from personalizations are expected to grow in absolute terms and are projected to represent approximately 19% of total revenues from cars and spare parts. This percentage also reflects the richer product mix, which increases total revenues and therefore, dilutes the personalization share in percentage term compared to the current 20%.

Racing and lifestyle revenues are also projected to positively contribute to our group's performance. In Racing, the assumption is always to win, which supports both commercial and sponsorship revenues. In Lifestyle, we expect to elevate the offering while continuing to expand it, as explained by Carla. All in all, we target to achieve total group net revenues of approximately EUR 9 billion in 2030 with a compounded annual growth rate in the region of 5%. Such objective is based on the current regulatory framework, including import duties and the assumption of an exchange rate of the U.S. dollar floating around the current levels against the euro, which implies an increasing headwind over time as the hedges currently in place will gradually fade away.

Based on this, we aim to reach an EBIT of at least EUR 2.75 billion in 2030 with the key drivers being the strong product mix, including limited edition models, the enrichment of product range as well as personalizations. Such increase in profitability is related to the positioning of our products regardless of their powertrain. Volume, as mentioned before, is intentionally designed to have a very limited contribution. Industrial costs and R&D will grow mainly reflecting the increase in D&A linked to product and infrastructure developed, racing activities and other industrial costs. In this number, we have factored in the expected increase in Formula 1 racing expenses dictated by the F1 financial regulations.

As a result, we project expense R&D to trend downward to 7% of revenues over the plan period. SG&A will also grow, reflecting our communication and marketing plans for sports car, lifestyle and racing, including model launches and a wide range of client and partner engagement initiatives as well as the overall organizational development of our company. SG&A will, therefore, remain in the region of 9% of our yearly revenues. The contribution from other, mainly Racing and Lifestyle, is expected to be positive throughout the plan. However, this benefit is assumed to be largely offset by our foreign exchange rate assumptions. As a result of the above, we aim to strengthen our profitability metrics over the plan with EBIT and EBITDA in 2030 growing approximately 1.5x compared to our baseline of 2024, and we target to consolidate our percentage margins in 2030 of at least 30% for the EBIT margin and 40% for the EBITDA margin.

Innovation is and will always be our priority. Cumulated capital expenditures over the plan period will amount to a total of EUR 4.7 billion, covering everything that makes us unique. Approximately 80% of our investments will be focused on broadening and innovating the product range and the remaining 20% will be devoted to the infrastructural development of Ferrari in its wider meaning with the main projects being the completion of the new paint shop as well as the renovation and upgrade of key strategic facilities. Let me remind you once again that in Ferrari, capital expenditures are not aimed at pursuing economies of scale nor standardized solution. We invest in product differentiation through advanced technology and design in very limited volume to continuously enhance the distinctive Ferrari emotions.

Our product CapEx will be allocated to the continuous development of ICE, hybrid and electric models in alignment with our technology neutrality strategy. But we are not investing only in the product pipeline that we will see the light during the current business plan. As always, more is yet to come. And as you can see, about 40% of the product CapEx that we are deploying today is devoted to the next generation of sports car and will generate revenues after 2030. During the current plan, we project the incidence of total capital expenditure over revenues to decrease and stay below 12% on a yearly basis, hence, lowering the capital intensity of our business. The ratio of CapEx to D&A is set to stabilize slightly above 1:1 on average through the business plan.

We target cumulated industrial free cash flow of approximately EUR 8 billion over the plan period. That is what we have generated in 10 years since our IPO. Also, the cumulated cash conversion ratio from EBITDA is set to improve by 10 percentage points to more than 50%. The industrial free cash flow generation will be mostly sustained by the growing profitability, net of capital expenditure. Working capital, including advances on selected model is rather neutral over the plan period, while taxes are a net drag since our tax rate is assumed to increase from 22% to 24% as a consequence of the expected lower benefit from the current patent box regime. Such level of industrial free cash flow generation allow us not only to reinvest in our future, but also to increase shareholders' remuneration, and I'll come back to this in a minute.

Our unique business model and the visibility it grants allow us to present today a consistent growth over the longer term that starts from a stronger and higher baseline, along with the commitment to execution that has always characterized us. In summary, moving to our 2030 guidance, we target net revenues of approximately EUR 9 billion, adjusted EBITDA of at least EUR 3.6 billion with an EBITDA margin of 40% plus, adjusted EBIT of at least EUR 2.75 billion with an EBIT margin of 30% plus, adjusted EPS diluted of at least EUR 11.5 and lastly, industrial free cash flow reaching a cumulated amount of approximately EUR 8 billion. As mentioned before, we aim at a consistent increase in profitability throughout the plan, sustained by the balanced timing of model introduction and phaseouts.

With all of this in mind, we target to return to our shareholders approximately 85% of the industrial cash flow generated throughout the plan. We will, therefore, propose an increase of our dividend payout to a steady 40% of adjusted net profit, starting from the 2025 annual results. This increase implies accumulated dividend distribution of approximately EUR 3.5 billion from 2027 to 2031. The dividend distribution will be accompanied by a EUR 3.5 billion share repurchase program to be executed from 2026 till the end of the plan, in line with the progress of our free cash flow generation. Under these assumptions and with the cash generation that we aim at, we expect to achieve a net cash position well before the end of the plan, and this clearly represents an opportunity for further shareholders reward.

To conclude, let me recap the main takeaways of our business plan. It rests on solid foundation and unique visibility underpinned by the consistency and the agility ensured by our business model. It includes a significant degree of product innovation and appropriate investments to fuel our growth trajectory even beyond this plan. It targets another phase of consistent growth to new highs over the longer term with strong profitability and increasing free cash flow generation. And lastly, it enhances shareholders' return.

With that said, we thank you all for your continued trust and support in our long-term exciting journey. So I now hand over to Benedetto for our decarbonization targets and closing remarks. Thank you.

I'll be quick because I'm sure you have a lot of questions. So let's go with the decarbonization because we believe that a company is a leader, not because it does only great products. But because it shows respect and respect and attention for all the people around us. When we met last time, we told you we take seriously decarbonization because I think we, as a leader, we have to show that working together with the people around us, with the supplier, we can achieve things that people believe are not feasible. So today, how much is the carbon footprint of this company, 1,000 kilotons. How much of this is coming from the wall of Maranello, 6%. How much is coming from outside? We have almost 60%, 57% upstream and 37% downstream.

You see there is a cross on a small tower over there. This is the cross coming from what Enrico said that most of the 90% -- more than 90% of our car is still alive because Ferrari is forever. What we did so far, we cut '24 over '21, we cut -- we reduced the Scope 1 and Scope 2, the emission in our factory by 30%. Consider that in Q4 last year, we have been shutting down the 3 generator. So if I see the target for end of this decade, we are going to be -- we are going to shrink the carbon footprint of our operation by 10x. So it means that we will go to less than kiloton. And I think this is a remarkable progress that has been done.

One, installing solar panel. If you see we have drone, now the drones are pretty much common to be used. But if you see we have drone, you see a lot of things here. Number two, we bought green electricity. And number three, we've been working a lot on the process efficiency. You have seen before by Ernesto, 75% of aluminum is going to be recycled. This means that we will reduce a lot this impact. On Scope 3, we need 2 important things. Scope 3 is something that requires people that understand how to develop a product how to reduce it. I still remember 2 years ago, yes, I asked a colleague that has been doing product development for many years.

And I asked them, we need you to drive this decarbonization. I remember that at the beginning, the reaction was, okay, you are giving me this job because you believe I'm not good in developing the product. No, I'm making this job because you are good in developing the product. And I want you to help this company, everyone to understand not only the time, not only the quality, not only the cost, but also the carbon footprint. If you go around in the company here and you ask engineers, when we have innovation meeting, there is a carbon footprint of everything we develop. And I think this is a big achievement.

So today, where are we? Today, we did some progress because if you see in this chart, we have been able to offset the carbon footprint increase because of the volume. But we wanted to give a more challenging target. The last time we told you we are going to reduce the carbon footprint per car. That was the parameter. Today, based on what we see with the effort we do in our company and the collaboration, precious collaboration of all our partners and suppliers, we commit to reduce absolute carbon footprint of Ferrari by 25%. So if you -- when you leave this company, this room, there are 2 numbers I would like you to remember.

On Scope 1 and Scope 2, we will reduce by 10x the carbon footprint that is emitted by the Maranello facility. The absolute value of carbon footprint emitted by all our partners for everything we do outside is going to have a cut of 25% on what we do. These are the 2 numbers. We raised our own bar because we saw in these years that we can do better than what we thought and because we see a strong collaboration from all our suppliers.

And before to leave the session to the Q&A, I would like to share one important consideration for you. What is key in this company is written here, is the relentless drive for new things. Innovation is in our DNA. You have seen in different ways in all the presentation, there is a key word that is innovation, internal innovation, open innovation, external innovation, you heard many times. I think that the world as it is today, nobody 3 years ago, even 1 year ago, maybe would have been able to master it. I told you clearly that there is one important asset in this company that is agility.

I made you also the examples of e-Vortex. We started the e-Vortex in April, in May, actually. We finished it in September. We gave a challenging target to show you completed the e-Vortex before this event. So this is an agile company. We have our target. We have our own white line to follow on the highway. We can reassure you we are committed. As John said, this is a time of commitment that, one, we will continue to be consistent with our DNA. Two, we will continue to be agile because nevertheless today, the nimbleness is key. Three, we will continue to be innovative. Four, we will continue to be well grounded. You said -- you heard 4 wheels on the ground.

It's important we understand that the past success does not imply the future one. And we need to make -- we have always to have that kind of level of will to progress that is in the DNA of this company. And last but not least, we are committed to have always respect and attention for all our stakeholders because all in this way, we can continue to be the unique company we are. We can only -- in the future, we need to continue to be unique. And I'm also glad because I got some messages while I was sitting there from some of you that the message of uniqueness get out pretty well because this is the key message we want to pass in this Capital Market Day. Thank you. And now the session is for Q&A.

[Presentation]

We are ready for the Q&A session. So I can lean back on the stage, Carla, Ernesto, Enrico, Antonio, Benedetto. As customary, I would like for you to state your name and your firm name before we begin. We can now start and we can take the first question on this side, please? Stephen, you are the first.

Stephen Reitman from Bernstein in London. Regarding the targets and particularly the landing date of 2030, you made it very clear that the growth is being driven primarily by price and by mix with volume having a very little part of that. When we look at the products that we know about that are coming out in 2026, '27, and we can speculate about beyond that, we know it is quite heavily influenced by the new F80, which has obviously set new record levels in terms of pricing for the supercars. Could you comment a bit more again about how why -- what are the factors really that are still keeping the margin at over 30% EBIT compared to maybe because pretty similar to where the landing point was put for the current plan?

This one -- thank you, Stephen, for the question. I think it's all about the evolution of the product mix and therefore, its product positioning. I try and explain in my speech that when we think about the new product and we think about their positioning and the price it commands and every single product is basically approved as an investment case, whenever it commands a level of margin that is satisfactory to us in terms of the comparison with the previous model. So the difficulty is really to look at what happens in 5-year time and now the product lineup would evolve considering all the constraints that we have in terms of time to develop new cars.

The other constraint is to be able to offer our clients in a single moment in time the widest possible choice and basically build the economics on top of that. So when we look at a level of margins that are growing from now to then from 2024 to 2030, it clearly assumes that we have a complete lineup with a similar level of strictly limited cars available in 2030. With a product -- with a price that reflects the improvement that we are committed to bring to the market. And ultimately, of course, there is an idea about the cost of reducing these cars. It's all depending on this product evolution.

And in addition to that, there is also an element of assumption in respect of the level of product enrichment. I explicitly mentioned personalization because this has been one of the core elements that drove the development of our margins in the last few years even more and faster than we had expected. We've been very clear and public on that. And on that, we have taken an assumption that you could consider prudent, if you wish, not to maintain the same level of penetration of personalization, but to bring it back to a slightly lower element, which takes into account the fact that the product mix will be reached in 2030. And therefore, it inevitably dilutes the overall penetration of the revenues from personalization.

We can now move to the next question. I can see Michael. Thank you very much.

Michael Binetti with Evercore. I guess I'll ask a similar question, Antonio. So the revenue CAGR at 5% is -- obviously, you're a much bigger company today than last time we got a long-term plan, but it's a little lower than the 9% in 2022. The investors in this room have become accustomed to quickly starting to think about upside scenarios as we see your plans after you've beaten every single one since the IPO. So as we think about this, you have the F-80 next year, very expensive price point. You targeted electric.

You said additional as a new segment, new clients several times last night and today. You've targeted personalization lower at 19% than we've seen it in a few quarters. It's been around 20%. We've got the paint shop coming online, a couple of new tailor-made shops in Los Angeles and Tokyo. Can you help us understand some of the important takes or headwinds that this group should understand or think about a little bit more and perhaps where you think there's opportunity to outperform the plan that you gave us today like you have the other 3 plants since the IPO?

If you had asked me the same question in 2022, I would have told you, look, the objectives are the one that are on the table and then reality surprised us for the positive. So in terms of the opportunity that might be not be considered here, and I think it's prudent not to do that, is that in terms of demand, we see more. I mean, we are actually planning on the basis of our experience in terms of our models. I already commented in terms of personalization. And pricing also reflect our view of today. In 2022, we did not expect what actually happened, meaning the impact of inflation. And therefore, even our pricing reflected what happened in between. So this is a plan.

This is something that takes in consideration duly the responsibility that we have towards this company in terms of its ability to develop and be able to offer clients every time distinctive emotions. So there is a lot in terms of technology behind these products. And there is a lot of thought in terms of client experience that we want to satisfy. Then you could argue for the positive and the opportunity or you could even argue for the negative. I think this is the balanced approach that we have tried to put in these numbers.

I think, Mike and all, I think 2 things. Number one, balanced approach. Number two is the agility that is important to have because last time we gave you visibility up to 3 years, basically 3, 4 years. Now we are giving you a long-term visibility, and we want to make sure that we keep delivering on our promises. If you notice over there, you see 2 numbers with at least -- there are 2 numbers in the guidance of Antonio shared with you that he was saying at least 30% and 40%. I think we need to be always transparent, clear with all our community. And we need also to factor in and that the agility is key in the navigation of the next years. I think there are opportunities on different fronts, but we need to make sure that we deliver on our promises always.

Thank you. We can go on the next question to Henning over there, please, and then we'll go back to central stage to Martino.

Henning from Barclays. Perhaps I can ask about the sequence of the growth as you envisage it over the period because another element that we've become accustomed to is like a smooth upward trajectory, margin expansion, mix accretion, a little bit of volume growth, perhaps less so. But I would have also believed that we're looking at a year of quite strong mix accretion from the F80 next year. And I would just like to understand how you think about potentially getting to a relatively high level as the F80 ramps up. and then perhaps not so much left for the years beyond the large step-up after '26 itself, right? And how that fits with what we've become accustomed to in terms of the smooth upward trajectory?

Thanks. I think it's important because once again, when we look at these numbers compared to where we start from, it is clearly evident that we are moving from a very high mix standpoint in terms of product. And this is different compared to what we had back in 2022, where we were moving from 2021 that was made mostly of range models and therefore, I said, I remember in the same occasion, 16th of June 2022, that the plan was more front-loaded because there was a lot to go. Now we move high. And what you mentioned in terms of target, it is also our challenge on a daily basis is to be able to provide a smooth development of our growth.

And that is really something that I try and explain when saying we are targeting consistent growth year after year. Then we are not geometric in terms of what we are able to do. But clearly, that's one of the element. Providing consistent growth is clearly something which is at the core of our plan from a financial standpoint.

Thank you, Henning. We can go back to central stage to Martino, and then we go to Thomas.

Martino De Ambroggi, Equita. On the Elettrica, always referring to the long-term guidance, should we assume -- we don't know -- we still don't know the price. It's not official, but should we assume is it detrimental or accretive on margin? And particularly because you are in-sourcing components, but you are also reducing the expected volumes. So this is a mix of 2 things that are probably one against the other. And just to summarize, Benedetto, you remember that you considered ambitious the previous plan. How do you define compared to '22 today's plan? Because I consider there are conservative assumptions that you already explicit talk about it.

I'll take it. So I'll start from the second one. How do I consider it, equally ambitious. How we are approaching it with the same will to progress and a strong effort to make it happen. The first one, Elettrica. First of all, I want to clarify one thing. The price is not yet fixed. The price will be discussed with Antonio, with Enrico before the final third phase. And also, we said something important last time as this time. We never share the split of sales by motorization, by traction. We can only control what is the offer, our offer. So no, we are not saying we are going to sell 20% or 40% of electric car. We're telling we are offering this kind of model, the number of model percentage-wise.

I think that if you were asking us when we discuss, we went to review the hypothesis on '25 when we did it in '22. Well, we were not thinking that the differentiation strategy would have been needed. What I mean is that we can -- we have 2 options in general or we do more volumes, more models, lower volume or alternatively, you can do lower volumes, lower models, higher volume. We are a believer of higher number of models with a lower volume because this is what we understood in this year with the takeoff of personalization.

So the plan is ambitious like it was last time. As Mike said before, the starting point is different because the starting point at the time was EUR 5 billion. Now the starting point is EUR 7 billion. So this is the -- if you want the difference. And for the Elettrica, you have to wait still a few months when we disclose the full picture of where this car is aiming to.

Thank you. We can move to the question of Thomas.

Two questions, please, for me. Thomas Besson, Kepler Cheuvreux. The first one, the number of potential customers for Ferrari is growing a lot faster than the volumes you're offering them. Could you talk about potential for midterm volumes eventually being higher? Or do you stick with that view effectively of having a larger number of horizontal products only sold at small numbers? I think there's some frustration among some people who would like to become customers and who have to wait a very long period of time to be able to do so. And the second, I'm going to try again on questions that have been asked before. Could you be a bit more explicit on the number of quarters that you're going to use to deliver the F80 and the plan to effectively after that bump, address the consequence of the end of that product?

So the first one, I'll take the second one, the number of quarters you manage, Antonio. I think that the -- it's key for our business model, the scarcity. I mean there are clients, there are Ferraristi in this room, okay? So I think that it's important that we manage properly the scarcity of what we do. This is not -- there was 1 chart of Antonio. It's very nice. I mean, story of mix. We need to make sure that there are not too many cars of the same type on the road.

This is what we said 3 years ago. This is what we are saying today. We want to be unique. If we do too many cars, we will not be unique. And to be unique, you have to be agile. And that's the reason why we are in this building because this is the building that will give us the manufacturing agility to accommodate the different client preferences. For the first one?

Yes. We are not that specific -- we cannot be that specific to in terms of numbers of quarters. I mean we just said publicly, we'll start selling the F80 delivering the F80 to our clients in the last quarter of this year in a few units. And then you have the benchmark of what we've been doing in the past with strictly limited products. So that could be a reference, if you wish. But don't be so much, I mean, strict to the flexibility that Benedetto is mentioning, but even the complexity of the car is actually commending the times of introduction and the speed of deliveries of the car.

We can now move to Anthony over there and then go back to Tom.

Anthony Dick from ODDO BHF. I had a first question around flexibility. So it's nice to see that you lowered your BEV penetration target in light of developments in the environment. And Benedetto, you also said that you would serve or sell the cars that the client asked for. But when I look at your residuals, it seems that what the client is asking for is more V8 ICE cars.

So I was just wondering if you have the flexibility, both from an emissions regulation standpoint or an industrial standpoint to maybe consider bringing back that form of powertrain. And the second question I had is on residuals. There's been quite a bit of debate recently around the residual values across your hybrid range, notably. So on our end, we obviously have limited data, public data. You obviously have much more data. So I was wondering if you would consider sharing the depreciation rates that you're seeing on your hybrid range in key markets like the U.S., for example.

I will reply. Number one, flexibility. And I think that the manufacturing infrastructure we have in place is highly flexible. The chart at Ernesto was showing the different motorization, the different body type. I mean, it's not a chart to please you, it's the reality. If you go downstairs, you have people that are able to accommodate the swing of the demand that people may have, though, as he said, we have the big advantage to have long-term visibility well in '27. So I think this is very important, but we can accommodate.

Now I think we have to pay attention to extrapolate a general pattern from a few cases. The message of Enrico when he showed a chart unique client, that's one important thing. If you want to apply typical demographic segmentation to our client to the ferraristi, it does not work well because we are working and we are analyzing all the data of the residual values, for example. And we see some pattern, but they are very specific on, let me say, on -- they are not so specific on a model, but depends on the kind of personalization or the kind of features the car has. There are functional, for example, functional personalization, like titanium screw fastener that have -- that are appreciated in some part of the world, while in other parts are not appreciated.

As well as the residual for some model, the residual value, get confounded also with the -- and the real understanding of that technology by the people. Sometimes we associate this with the hybrid. Maybe the hybrid has been associated also with some other things like touch, the use of the touch. And this is why as Ernesto was saying, on the tax side, we are modifying it. So there is not a general pattern.

What I can tell you is that, yes, there was one county that was a little bit under pressure. That was the case of U.K. also because a lot of people are going outside U.K. for the reason you know better than me. And we have been able to stabilize the situation because we reduce the number of cars we are getting over there. It's always coming to the management of scarcity that is key for us. The management of scarcity is key for us.

What is important is to be agile in manufacturing, in listening our client and anticipating because I can tell you that -- I think we were here for -- when we added the dealer meeting and we had also some client with F80, and when we said we were switching to mechanical button, there was a big, big applause because finally, we got rid of some features that in the past were nicer and the people understand and we understood that it's better to be phygital than full digital. So this is the place where we are and we keep working. But we don't see any specific concern over there. We don't have any specific concern over there.

We can now move to the next question to Tom and after to Monica. Thank you. On the central stage.

Tom Narayan, RBC. These have kind of already been asked, but maybe I can get more color. On the volume point, the bridge from 2024 to 2030, you have this e-building, which can produce probably a lot of volume. I totally appreciate what you're saying about scarcity, more models rather than more volume, but you also have to manage the wait list. Just curious as to how fixed you are. Should this -- the wait list get much longer, would you decide to change that strategy? How flexible are you?

And then on residual values on the Elettrica, we've seen questions about the Purosangue residual values and how you can control it perhaps with volume. As it relates to Elettrica, we don't know what -- we know it's a range model, but we don't know what it is exactly. To what extent can you control the residual value with volumes?

So when it comes to the right length of waiting list from all our analysis believe -- we believe that the right length for waiting list must be between 20 and 23, 24 months. Because if it is too long, especially new clients can get a little bit annoyed. But 20, 24 months is the right time length. This building here can accommodate, let me say, what we see the clients are wanting.

I mean, you may remember when we launched the Purosangue, there was -- or also the case of personalization. The case of the personalization was such that we were not expecting a strong demand of carbon look, let's say, personal items. We have been able to ramp up. I think that the way this building is structured, maybe you also entered other similar factories, but I don't think you have seen such kind of flexibility and agility, allows us that if something happens on electric cars more than maybe we will foresee, we will love the agility. But we have always to keep in mind scarcity.

I think scarcity is important. This is -- I mean, I was discussing before, we've done when there was the number of 330,000 cars produced since the beginning of the history. I mean, there are some guys that are making those cars in 1 year or we're making those number of cars in 1 year. So I think scarcity is important.

The second -- so one was the flexibility, one that -- right wait time, I think I replied is between 20 and 24 months.

We can now move to Monica, central stage, please, and then we're going to be on the right stage and left side after.

Yes. I have 2, let's say, 1 is on the shorter term. I remind that during the last call, Benedetto, you said that some U.S. clients, but overall, there was a wait-and-see moved approach. Is it something changed there since our last call on this wait-and-see mode approach?

And the second question is more on the strategic side. Across the plan and within this strategy of, let's say, higher number of models and lower volumes, are you seeing some white spaces across the plan that Ferrari can occupy as Ferrari did with Purosangue. So if we can expect something in the middle of the plan that can change a bit the family.

And last, I know that the geographical allocation will not change, you said, Antonio. But within the model launches and there will be a lot, is -- can we see something that can change the perception of the Chinese customers towards Ferrari?

So I take the one in U.S., we don't see any difference. The only thing that changed is that finally, we understand what is the tariff level, that's it. Because last time we had a conference call, I remember, you were pushing us for this famous 15% and Antonio rightly said, we don't see yet. We saw it, well, 2 weeks ago, when it was officialization. So this is the story of U.S.

We don't see -- I mean, actually, there are some people in this room that yesterday were rightly pushing me to get the car. They're waiting for since -- in U.S. since several years. So I think there is a strong -- the demand is there. We don't see any particular weakening signal over there.

The second one is the strategy. I think, yes, last time we added the Purosangue. This time, allow me to say that we are talking about Elettrica. We said -- you said, well, we may have a client that are not yet in the family. They can be part of our family because of electric. I think we have also to be -- how can I say, to manage the entry of a new model with scarcity because one of the reason also why the price of Purosangue was what it is, is also because we've been able to manage properly the scarcity. And I think this is important, Monica, to consider all this scarcity, you know us since a while.

For the Chinese, I can start, maybe you can add something. But on the Chinese, I think that there are 2 things. One, okay, the demand dropped for luxury, but for us, it was not too much debt. I think that for us was the fact that our portfolio, our offer for China was not well fit because the 8 cylinders was the Roma Spider, but we have a soft cap. And the soft cap is not so well appreciated in China. Maybe you can...

You said the most important thing. I would just add that every different motor powertrain has different taxation. So the current product mix we are selling in the country is subjected to high taxation in order to [indiscernible] and 12 cylinder. So the mix will help. I would also add that the current situation that everyone is experiencing in China, which is a slowdown of the market will not last in the future. The point is just to know when it will revamp. But that country will remain an important target for any manufacturer, including Ferrari.

Thank you very much. We can go on this left side.

Yes. [indiscernible]

Sorry, just 1 second, please.

He said already, but the target we have for China, Greater China is less than 10%. Okay. What you said, just...

Okay. I can go ahead. It's Horst Schneider from Bank of America. It's the first time I'm attending a Ferrari CMD. I've taken over coverage just this summer. So I enjoyed every moment since then. And I was thinking when I was looking at the consensus, and I think we see that also today, stock is down a lot, market expected more. I've got to say, I'm glad that you don't align your targets according to the consensus expectation, but more of that what you think can be achieved. But that's more mission statement.

When I -- my question is when you look at the targets now or I look at the targets, and I see you target 10% special share, I think at the moment, the special sales is kind of 5%. So I assume on the back of that, that number of specials or the volumes of the special should increase. When I look in that context to your EV targets and your volume targets, is that telling me that you basically try to approach the EVs more from the perspective that you launch EV specials. I have not yet fully understood if the Elettrica is now -- it seems to me like a small range model. How should we think about the volume evolution of the EVs? And in that context, maybe also you can shed some philosophy on the specials on the EVs, for example.

Thank you very much for the question. I can try and be more specific. What I show here is the average percentage of each single group of models, Icona supercar, special versions and Range models. Then this does not mean that this is the level point in time 2030, okay? So if you take the average of what we've been doing in the last few years, you would not find significantly different percentages. I remember in 2022, numbers were very similar to these ones. So we are not thinking of adding too much volumes on the special series. We are very much in line with what we used to until now because special series are either strictly limited in volume or strictly limited in time, but anyway goes to our collectors. So no intention to inflate that, to be clear.

There is also another consideration. I think we can add that 5% a few years ago was lower than 5% in the year to come. So there is also an expansion of that without exaggerating because if you were to see the previous Capital Market Day, the 3 number, [ 85, 5 and 10 ] were the same. We are starting from a higher level, and we want to always to preserve exclusivity because we need -- it's absolutely important. When you talk about special series, then you have to consider even more scarcity. Otherwise, they're not special.

Thank you. We can now move to Sam over there, and then we'll go to Mike in back central.

Sam from Exane BNP. First question on the dividend and buyback. I think you're moving to 85% of free cash flow distributed to shareholders, but you still said you expect to move to net cash relatively soon. So what prevented you from having that distribution higher? And then on the sponsorship, commercial and brand business, you talked about moving up the price and luxury spectrum. How do we think about margin progression within that business?

Thank you. In terms of -- I mean, the 85% distribution is an assumption, which takes into account the fact that we have a balance sheet with a certain level of investments. And once we reach a net cash position, obviously, we will be in better positioned to take a view on a different stance in terms of either the speed of share buyback or any additional remuneration to shareholders. So let me say it could be considered as a prudent assumption considering our business.

And the second one, I think Carla has been clear in terms of where we want to be consistently for the future, meaning a business that with all of these areas of activity within is basically aligned with the rest of the group.

Thank you. We can now move to Mike Tyndall over there and then go back to central.

Mike Tyndall from HSBC. A couple of questions, if I can. Sorry, Antonio, the first one is to you, but I'm trying to work my head around the fact that margin looks to be largely flat. So revenue progression, 5% CAGR up, volume very small in that. So predominantly price and mix, which I assume is good for margin. We've heard a lot about digitalization over the last few years, changing the ERP system. So presumably the business is getting more efficient. So I'm trying to understand why margin is essentially flat against that backdrop.

And then the second question is just around pricing and the headroom on pricing. It's interesting that you raised prices in the U.S. and seen no change in customer behavior. It's interesting that the number of customers is growing faster than the number of vehicles you're producing. So how much headroom is there on pricing? And how much of that is baked into your assumptions for 2030?

I think the second one, and then Antonio manage the second -- the first one. I think that what we have been doing pricing-wise, I mean we have been, for sure, having some model that increased a lot, if you take the digital versus the premium one. I think if you have to model in the future, you can model this way, not as a drift overall, but as a band or prices that are associated to car with different driving emotions.

I think that I want to say that we need to give the opportunity to the new client to get in our family or through the preowned like it is today or to the new model. Today, the people are entering in our family, if I go to see the numbers through models that are around 300, 350 like Roma, if you consider everything. And 1 or the 2 clients is getting -- is becoming a ferrarista, because of the preowned.

So if you want to model in the future, think about something that is, let's say, changing but we have a different model that are changing in perspective with a different percentage. That's the way we have to think also because the pricing of what we sell depends on the driving emotion that we are able to deliver to our clients.

And then the first one.

On margins, Mike, I would not agree to the fact that the margins remain flat. We are not at 40% right now. We had an ambition to be between 38% and 40% by 2026. And actually, the guidance for this year is to be above 38.3%. So there is a way to go. And we said our target is to be above 40% if I look at the EBITDA margin. .

And similarly, on EBIT, we said greater or equal than 30%. So there is improvement in that respect. And as I try and explain, this improvement is coming based on the present assumption from the -- in terms of gross margin, while this develops because of product mix and the enrichment of the product that we envisage of now, but then we need to take into account also what's below the line of gross margin, meaning there are other costs in this company.

And there are also costs not necessarily associated with sports car. So obviously, we have an anticipation, I try and explain, for example, in terms of has been Formula 1, there is a Formula 1 financial regulation that we need to cope with. And obviously, we are taking assumptions in this respect. So what we are delivering to you today is a target which is larger -- sorry, larger or equal to, a certain threshold, 40% or 30% that takes into account all of these ambitions. Obviously, our day-by-day action is to try and reduce cost as much as possible, considering, however, what we want to achieve in terms of product and the target in terms of effectiveness of each single activity that we run here.

Thank you. We are now moving to Nicolai over there. Susan will follow and then Andrea.

It's Nicolai from Deutsche Bank. Two questions all from my side. The first one would be, again, on the Chinese market, and you've mentioned that it's challenging for luxury automakers, but overall for the luxury sector. Do you think this -- that the Elettrica can change this? Or what do you think is the dedicated model for the Chinese customer?

My second one would be on a lifestyle. And we had a full presentation, lots of opportunities. But I'm not sure if we've seen that in the financial presentation and that the earnings growth is also reflected there from the Lifestyle.

So Elettrica, let me give you -- yes, China can be a good -- could be a good opportunity for us. We needed to test. For sure, the Elettrica offer client in China to pay less money because today, the digital [indiscernible] because of pollution tax is very expensive. And as I told you, we were able to offer Roma Spider that is 8 cylinder with soft hat that is not so much welcome for the Chinese. So I think that in China, there are 2 new cars on top of 2 recently new cars or close to be announced. One is the Amalfi, that is new apart from [indiscernible] And then there is Elettrica.

What we are doing internally, we are speeding up the homologation processes, the time lag on homologation wise between Western World and China because maybe you noticed that the challenge homologation wise to get in China are increasing a little bit. And so we want to shorten by making all the processes, all the paper work that is needed. But I think this is important because, yes, China can be good opportunity for Elettrica because the clients are already used to Elettrica and because there is an appetite for our Ferrari.

For the lifestyle, you commented already before.

Yes. Actually, the impact is visible in our number, if not because of the foreign exchange rate assumptions as I said. And even if you look back to our financial results over the last few years, the brand-related revenues and margins have been improving recently. And this is because also of the contribution of Lifestyle, not to mention that of raising revenues that have been growing significantly. Even there, and once you start from a high level, then you are adding to that high level. The speed of growth is not necessarily -- I mean, the ones of a start-up.

And in addition to that, Carla, if you want to complement, there is a strategy that has been built on purpose in terms of speed.

Yes. Obviously, as I said at the very beginning, our long-term strategy is to grow at the right pace -- and to achieve an operating margin in line with the rest of the company. But at this stage, obviously, the whole thing is not material. So clearly, you won't see it reflected in [indiscernible] numbers.

Thank you. We can now move to Susan. Thank you. Andrea, you're next. .

Susan Bush from UBS. Just 2 questions. Maybe the first one, a follow-up on OpEx. Can you tell us is there may be a bit more opportunity? Is there a chance to bring down OpEx as a percentage of sales? And what would be the cost you could potentially optimize?

And then secondly, on the client telling activities. I mean, can you tell us a bit more about those centers you'll be opening in LA and some other locations? What are you trying to achieve with that? And what are the key opportunities you see there?

On OpEx opportunity to reduce them. In our OpEx, basically, in terms of R&D expense to the P&L, we have innovation that is at the core of the company, and we have what we spent for raising, which once again, it's at the core of the company. So -- and on that, we very much follow the regulations because as of now, Formula 1, what we spent is dictated by the financial regulation. So the assumption here is to basically fulfill our -- the -- is allowed to spend.

And we also have an assumption that this cap will evolve over time with inflation. Anything in that respect may change the -- I mean, the reality going forward, but as a starting point is where we are from. In terms of spending for innovation, we are actually predicting something that's very much in line with the past. So it's a kind of a fixed budget for the best innovation we are envisaging in the company. And I think it would be -- it would not be the right thing to do to cap that because that's really our future.

In terms of selling and general expenses, we constantly review that. And the growth of the company in terms of its structure that have been going through in the last few years will not be repeated in the next 5 years. I think in terms of structure, we are very much where we thought. However, the digitalization of the company is something that is relevant for us to maintain the level of efficiency in a much more complex word compared to where we were 10 years ago.

Before to pass to Enrico replying your second question. I think it's important to underline also a couple of things that is difficult for us to factor in, but are important. We are strong believers that -- and there are some cases already verified some other will be -- can happen in the next 5 years, but we have to follow, we have to verify first. We have what we call technology epiphany. Technology epiphany is something where with a small delta OpEx you can have a small -- a bigger increase because it's not -- it's like you see everywhere. It's not only a matter a lot of money in the OpEx for a lot of money in revenues. I think this is something we have something in the pipe, but we have to follow the right approach because we have to verify how this can deliver the expected result because it is like a personalization. Personalization is difficult to foresee how the clients are going to react to the personalization. If you were asking us in '22, what is the personalization take rate, and then you see now a posterior, well, there is a gap. And the is one of the reasons why we have been able to deliver 1 year ahead of time.

What we have in the pocket talking also about your question, we may have some technology epiphany that can make a change, but we need to make sure that we -- I mean, we cannot foresee too much things that are a disruption. This could be some innovative features that we call technology epiphany. And then...

See very simply, I think the key point is that our clients love to come to Maranello. And I guess, in this today, I hope you get the reason of this -- but not all of them are so close. If we talk about Asia, if you talk about United States and especially cost of United States, for them, it's not so convenient. So the idea that we took since a while is to bring Maranello closer to our clients. So we did some activities, you may remember the Universo Ferrari, where basically we brought all the experience of Ferrari abroad in some locations where clients that cannot fly to Italy can experience exactly what is a 360-degree experience with Ferrari. And we are now also opening 2 other Tailor-made after New York and Shanghai, which is, again, are designed to be closer to our clients. So 1 is going to be in Los Angeles and 1 is going to be in Tokyo, exactly for this reason.

Last but not least, which is another step of the journey, is we want to have a coordinated brand perception and experience. That's why we work a lot with our partner to make sure that every single showroom is representing the Ferrari brand in a proper way and given the experience that is coordinating all over the world. I hope I answered to the question.

Thank you. We are now taking Andrea's question, which will be the last for today's presentation.

Andrea Balloni, Mediobanca. I'm comparing your new business plan evolution with one of 2022. And basically, we see that the EBIT path is around half compared to the 1 presented 4 years ago. While basically, your value over volume strategy is unchanged, ASP evolution should offer a great visibility, thanks to F80. And also thanks to all the new model you have just launched, you have e-building that is something that should help you facing the complexity of a business and a larger segmentation. And about content enrichment that is a negative, I guess, that was a negative in 2022 as well.

So my point is on top of the lower weight of personalization that is probably the real difference you have mentioned compared to the past, what am I missing that is justifying this different trends in terms of growth for both sales and EBIT basically?

I think that we have to -- you are comparing with '22 when we closed at EUR 5 billion. At that time, the mix was very much unbalanced on mix -- on range cars. And I think that, yes, it was EUR 5 billion and now it's EUR 7 billion like you see. And this is going to evolve more or less at the same time, EUR 7 billion to EUR 9 billion. The time is different, but also the starting point is different. I think that we have to factor in properly, all what we see, what we have, let's say, and the need to have something that give us the freedom and the possibility to modify easily if something has happened.

What I mean is that today, we are giving a longer-term visibility. We are -- we have a stronger confidence coming from the order book, definitely like it was in '22. But I think there is a little bit some uncertainty okay, for the future. And we have to be also prudent, allow me to say it this way, in order that 2030 is not in 2 years, and we have to make sure that we deliver on what we commit. This is important.

We have the key message, the key overall message of this presentation is that, one, we want to be -- to continue to be unique. Two, we want to embed in our plan the agility that is needed from a manufacturing point of view, from a technology point of view. So we want to make sure that if there is a swing in personalization, if there is an electric on what we do, then we have to be ready to accommodate always preserving the scarcity. We will never -- we say today, like we said 3 years ago, will not become a company making 1 model a lot of volumes on 1 model.

You remember when we was the case of Purosangue, we said don't expect us to become a Purosangue company. Okay, we have clearly understood the plug in our strategy, the fact that we need more model to preserve this scarcity and exclusivity. This is the message and this is what we are aiming to. The reason why we put greater than, as you said, on EBITDA and EBIT because there are some opportunities where we are working with.

One is the digitalization [indiscernible] perfectly. Another point is also the opportunities you may have on other activities that we are thinking, and we are going to deploy and verify, consider also that with the time to action, the time to reality, allow me to say that this company is able to do and the novelty we are able to bring, we need to see some results before we can plug everything in. So we want to give you a number that you can rely on and that test the prudence and allow us to deliver on what we say.

Maybe the only further element that I may add is that our ambition is to be here for the longer term. So whatever we do has to be in line with the business model of Ferrari. There could be a simple way to grow revenues and margins. For example, expanding the numbers of Icona and Special Series would be something that would help immediately. But then our business model would not be -- I mean, would be destroyed very soon, very rapidly.

So considering where we are starting from. So the baseline, which is much higher considering where the product mix is, we train and put in the numbers the assumption that the scarcity model is applied consistently for the longer terms of Ferrari, that means 2030 and beyond 2030. And then reserve some opportunities that try and explain, which I don't think any way would be safe to put as given in the plan. And the agility they have been trying and passes a message should allow us to take this opportunity in case we are able -- and in the market allow us to do so and to react even in case anything goes different in terms of -- I mean overall, market scenario.

You all can be reassured that as we have been clear and transparent so far, we will continue to be clear and transparent. We'll continue to work to reach our goal. Maybe this is the last question you said? No.

Correct.

So I would like to conclude with 1 thing that is the same word that our John said before, is the FestinaLente. We want to make sure that we continue to grow steadily. We are setting an ambitious plan, the same ambitious, but we want also to continue to make sure that we keep and we stay unique in everything we do, and we give the uniqueness to our client, always.

I'm now happy to thank all the thousands of people connected online. So I'm closing the webcast presentation. Thank you all.

Good day, and thank you for standing by. Welcome to Ferrari 2025 Q2 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Thank you, Maggie, and welcome to everyone who's joining us. Today, we plan to cover the group's second quarter 2025 operating results, and the duration of the call is expected to be around 60 minutes. Today's call will be hosted by the group CEO, Mr. Benedetto Vigna; and the group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions.

Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation and the call will be governed by this language.

With that said, I'd like to turn the call over to Benedetto.

Thank you, Nicoletta, and thank you, everyone, for joining us today. Despite an uncertain macroeconomic environment, ongoing geopolitical tensions and market volatility at Ferrari, we continue to execute our business plan with a focus, discipline and confidence. We base this confidence on the solidity and uniqueness of our business model, the remarkable level of visibility that we enjoy and the continued loyalty of our community.

We remain confident and well prepared to navigate potential macro threats, including trade tensions, currency fluctuation and financial market volatility, which require an increased level of cautiousness. And while we can't say that we are completely immune to global events we might encounter, our ability to adapt has been remarkable. Among all factors that underscore our solidity and continuous progress, there are five I would like to underline with all of you.

One, we are on track with our product development, in particular with the Ferrari Elettrica, which I had the pleasure to drive a couple of weeks ago on the race track. And I can [indiscernible] you how excited we are for the upcoming launch. Two, we continue to evolve our stunning offering. In July, we introduced the Ferrari Amalfi, 11th model of the 15 model road map that we announced in 2022 during our last Capital Markets Day, and our third launch of this year after the two special series, the 296 Speciale and Speciale Aperta. Such a number of new model launches and technology advancements require an incredible team effort and effective management of complexity and utmost agility, something we should all be proud of, especially in the current context.

Three, we continue to hold a strong order book entering 2027 without considering the new launched cars, and with all the range models currently in production substantially sold out. Indeed, the newly launched Ferrari Amalfi is at the initial stage of the order collection, and the demand for the 296 Speciale family is significantly high, nearly reaching full coverage of the life cycle.

Fourth, we continue to invest in what makes us Ferrari: client centricity, product excellence, technology advancement. And it is especially thanks to the ideas of our people that we can continue to evolve and innovate. Proof of this are the 341 colleagues who were internally awarded for developing patent ideas in 2024. And last but not least, in line with our plans, the production ramp-up of our e-building is proceeding at pace, as is the construction of the new paint shop, where we have just finished the walls, and we are about to install the equipment. In addition, during the quarter, we began the construction of a new track near our facilities dedicated to sports car testing. This will enhance the accuracy and repeatability of road car testing, a further effort to ensure product excellence.

Equally important is that we continue to deliver strong financial results. Indeed, Q2 '25 saw continued growth on all key metrics. A few key numbers to share with you and to highlight. One, total revenues reached approximately EUR 1.8 billion, a 4.4% growth year-over-year with flat deliveries. Two, strong profitability with EBITDA in excess of EUR 700 million. And three, the industrial cash flow at EUR 230 million.

At the beginning of July, we hosted over 1,500 guests from all over the world on Amalfi Coast for the spectacular premieres of the new Ferrari Amalfi, our latest V8 range models. The Ferrari Amalfi redefines the concept of contemporary sportiness, combining high performance, versatility and refined aesthetics. The name of the new model is a tribute to Southern Italy and one of the most fascinating coast lines in the world.

Amalfi was chosen to once again associate Ferrari with Italian beauty and a place that symbolizes our country. I was there for the first of three incredible evenings of the World Premiere, where we achieved unprecedented client engagement and brand visibility. Indeed, this new model was also displayed in the town's main square for all residents of the Amalfi Coast, the tourist and the enthusiast to enjoy. This model will allow us to nurture existing clients and attract new ones, enlarging the Ferrari community, and the initial feedback has been extremely encouraging.

Moments like this always remind us of the importance of human relations. Such moments strengthen the sense of community and unite people with the company and with our Ferrariste. From our Ferrari Cavalcades to our Racing Days and Racing Challenges to our World Premiere, each of these exceptional events is designed to create unique memories and experiences, which are essential to nurture our community's passion and elevate our brand follow. Within client events, also racing activities play a key role. At the circuit of Spa-Francorchamps last June, we presented the new 296 GT3 Evo, a race car that will make its debut in 2026 season. The 296 GT3 Evo perfectly fits within the array of our activities and is instrumental to enrich the experience on track of our racing clients.

And on the subject of racing, I will once again express my personal congratulations to the Ferrari team who secured the third consecutive win at the 24 Hours of Le Mans. This is an incredible achievement and an encouraging reminder of our ambitions. Thanks to this extraordinary result, Ferrari will now keep the winners trophy forever, a right granted to those who secure victory in three consecutive editions. And in the same spirit, we are making good progress in Formula 1. We know that the season started below expectation, but in recent races, the team is constantly fighting for podiums and wins.

Lastly, in line with our racing heritage and spirit of innovation, we have presented the Ferrari Hypersail project. This revolutionary boat is currently under construction in Italy, and it will see us take on an unprecedented new sporting challenge in the world of sailing, allowing us to keep on pushing the limits of possible in a new arena. Moreover, open innovation and two-way technological transfer between the sports car and nautical sector are key in this project. Aerodynamics, energy efficiency, power management and flight control system are just a few examples in this respect. All these challenges remind us that we have to continue to improve in everything we do with focus, determination and four wheels on the ground.

And now, I would like to hand over to Antonio to review in detail the Q2 2025 results.

Good afternoon, Benedetto, and good morning or afternoon to everyone joining us today. Starting on Page 5, we provide the highlights of the second quarter, which represents a solid continuation of the year. First of all, the second quarter was basically not impacted by the incremental tariff in the U.S. as we leverage the inventory already present in the country. Compared to the same quarter of last year, revenues and profitability grew single digits with flat deliveries. Mix and personalization were the main drivers of growth, along with rising revenues, which led to particularly strong percentage margins and a solid industrial free cash flow generation.

On Page 6, we deep dive into our Q2 2025 deliveries. Shipments in the quarter were driven by the 296 GTS, the Purosangue and the Roma Spider. The SF90 XX family increased its contribution. The 12Cilindri family continued its ramp-up phase, while the 296 GTB decreased and the SF90 Spider approached the end of its life cycle. Shipments of the Daytona SP3 were lower than the prior year and sequentially decreasing in line with our plans to conclude deliveries in the third quarter of 2025.

In the quarter, we had a significant changeover of models. And despite the gradual phaseout of the Daytona SP3, the product mix was sustained by the higher end of our product offering, namely the SF90 XX family and the 12Cilindri family. As customary, the geographic breakdown reflects the different product cycle as well as the company deliberate allocation strategy.

On Page 7, the net revenues bridge shows a 5.1% growth versus the prior year at constant currency. [indiscernible] cars and spare parts was driven by the richer product and country mix as well as higher personalizations. Personalizations keep on being very strong, accounting for approximately 20% of total revenues from cars and spare parts, supported by the Daytona SP3 and the SF90 XX family in terms of model and mainly by the adoption of carbon and paintings in terms of offering.

Sponsorship, commercial and brand increased, thanks to the additional sponsorship we have this year and improved performance of the lifestyle activities, as well as higher commercial revenues linked to the better prior year Formula 1 ranking. Currency, net of hedges in place, had a slightly negative impact in the quarter, mainly related to the U.S. dollar dynamic.

Moving to Page 8. The change in EBIT is explained by the following variances. First, mix and price, positive; thanks to the enriched product mix sustained by the SF90 XX and the 12Cilindri families, increased contribution from personalization and a positive country mix, supported by the Americas. These were only partially offset by lower deliveries of the Daytona SP3. Second, industrial costs and R&D, mainly due to racing and sports cars R&D costs expensed with flat D&A. Third, higher SG&A, reflecting racing expenses and brand investments. And fourth, other, was positive; mainly thanks to racing and lifestyle activities, lower cost due to the Formula 1 in-season ranking assumptions that we revised downward, partially offset by the comparison with last year's release of car environmental provisions. Percentage margins were very strong in the quarter with the EBITDA margin at 39.7% and EBIT margin close to 31%, also benefiting from flat D&A determined by the model changeover.

Turning to Page 9. Our industrial free cash flow generation for the quarter was strong at EUR 232 million, and reflected the increase in profitability, partially offset by the negative change in working capital provisions and others, mainly linked to higher inventory in line with our production plan. This quarter, the net impact of advances was positive, but far less significant than in Q1. Capital expenditures were mainly focused on product development and the progress in the new paint shop construction, and finally, the seasonal payment of taxes. Net industrial debt was EUR 338 million at the end of June 2025, also reflecting the dividend payment occurred at the beginning of May. Lastly, in relation to our multiyear share repurchase program of EUR 2 billion, we intend to resume the repurchases, aiming to complete the program by year-end.

Moving to Page 10. We confirm the 2025 guidance with stronger confidence on all metrics and removed the 50 basis point risk on percentage margins following the recent agreement on U.S. tariffs as well as lower industrial costs in H2 compared to our initial expectations. All this based on current information despite the remaining uncertainty with respect to the time line of application of the lower U.S. duties on cars and other products manufactured in the European Union, which should impact the second part of the year.

Bearing in mind that for the rest of 2025, we anticipate deliveries deliberately reduce compared to 2024 to prioritize quality of revenues over volume, softer product mix versus the first half of the year, mainly linked to the Daytona SP3 phaseout in Q3 and the first units of the F80 shipped in Q4, higher SG&A linked to corporate and commercial activities planned for the remaining part of the year, higher D&A in line with the development of our portfolio and considering the start of production of new models. And finally, greater headwind from FX, assuming that the current weakness of the U.S. dollar against the euro persists for the remainder of the year.

The first half of 2025 reminded us of the world's unpredictability and importance of agility and flexibility. In this context, we continue to execute our strategy with discipline and focus. And today's strong results mark continued progress on our growth path, backed by our unique business model and the remarkable visibility that we enjoy.

Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Maggie, we are now ready to open the Q&A session. Over to you.

[Operator Instructions] Our first question comes from the line of Stephen Reitman from Bernstein.

I have a few questions, please. First of all, could you comment on residual value developments in key markets? Secondly, could you give us a bit more detail about why these industrial costs in the second half are expected to be lower than originally expected? And third, could you talk about why there has been -- why we're seeing now the change in the R&D capitalization versus amortization, so the lower benefit from this in what we saw in the second quarter?

Thank you, Stephen. So the residual value in key market, we told you last time that there were -- there was U.K., that was a market a little bit under pressure. And we put in place some actions that are showing good trends. We are working also on some models in U.S., but nothing strange, I would like -- I would say. The second one was about the industrial costs, why it's lower. And here, Antonio can comment about that.

Stephen, as far as the actual is concerned, this is mainly due to an easy comp versus last year. Since last year, we had -- I wouldn't call them seasonal, but we had significantly higher costs for racing in the second quarter. And this year, these costs are not there. And on top of this, we have a better reduced quality cost compared to what we had last year.

If we look forward to the second half of the year, the better expectations are now related to the fact that in terms of supply chain costs, what we have experienced in the first half of this year is better than we had originally anticipated. So call it, lower inflation.

Third, R&D capitalization in the quarter and why? This is simply due to the overlap of our project. You know that we capitalize the spending for models -- for the development of models that have been internally approved. So it very much depends on that. And obviously, the portion -- the remaining portion that is expensed to the P&L is otherwise related to racing. So it very much depends on the pace of development of our car, both in Formula 1 and World Endurance Championship.

So to be clear, the reduction in industrial cost doesn't reflect maybe postponements or delays to any programs?

No, absolutely no.

Next, we have Susy Tibaldi from UBS.

So first one, regarding your cars and spare parts growth at 3%. This is lower growth than we have seen in quite some time. So it seems that the ASP was weaker than maybe some people in the market expected. And was that something to do also with personalization? Or how do you expect this ASP to then evolve for the rest of the year? Because my impression was that Q3 was meant to be, let's say, the weakest part of the year, whereas Q2 also ended up being quite weak. So it would be helpful to get bit more clarity there.

And secondly, regarding your COGS. The gross margin was extremely strong, stronger than we have seen in a very long time. And it was somewhat surprising given that your ASP ended up being a bit weaker than expected. So what were the moving parts in the COGS that really led to this sort of strength on gross margin? And how should we think about it going forward?

And lastly, regarding the U.S. So now the tariffs have been lowered. I suppose that you will choose to not -- no longer increase prices to the same extent. But is there going to be maybe in Q3, some sort of friction because some cars were shipped that were affected by these higher tariffs. So how does it work, right? Some clients will get a different price compared to other clients. Can you just elaborate on that?

Okay. Susy, I'll take the third one. And then the first two, Antonio will comment. As you remember, we were very timely in announcing the commercial policy, 27th March when the tariffs were in place -- when the tariff get in place at 27.5%. So we will not change the commercial policy till this new 15% tariff will really become -- will be implemented. Because as of now, it is not yet implemented, it will take some time.

But you may remember also that when last time we talked here in this event, we said that the invoice of the -- when the client will receive an invoice, you will have separated the tariff in a specific box. Because it's something that we want to make it clear to the client that one part is the price of what we do, another part is instead the tariff that depends on the country where, let's say, the car gets sold. So when the 15% will become really effective and implemented, then we will adapt our commercial policy. Item 1 and 2, Antonio please.

Thanks, Susy. For the first one, it is very much overlap to the question Stephen asked me before, meaning it has to do with the cost of goods. So first of all, cars and part growth 3%. Why? It only depends on the development of the product mix based on our plans. I don't know how an analyst are making their forecast. But basically, this is [indiscernible] in line with our plan of deliveries in terms of model. And as far as personalization is concerned, as I said before, penetration is at 20%, and we actually see a continuing very strong trend. So that encourages us significantly.

With respect to cost of goods sold, very strong in Q2. I think I already answered, I replied to Stephen before. It's not just for the sports car business, we have also racing, and that depends on how costs for racing, not just in Formula 1, but even World Endurance Championship evolve over the course of the year. For the rest is better efficiency, if you want to like that or lower inflation, including for quality. So I mean, that's the main drivers. Does it answer?

Yes. But when we then think about the rest of the year because especially in terms of mix and so on,, the expectation was that Q3 was going to be the bottom for this year. So that's still the case. So Q3 could still be weaker than...

If I look at the sports car business, I mean, it goes without saying that Daytona will be lower because it will be the last quarter we sell it. We don't have the F80 yet. And we just have a few units of the F80 in the last quarter. Then the overall development of our margins depends also on the racing activity and the development in the racing activity as far as cost of goods sold is concerned.

Next, we have Adam Jonas from Morgan Stanley.

My first question is on the Elettrica. And I'm not trying to get you to share any real significant details ahead of things. But remind us, is this product positioned for -- given it's your first electric vehicle, all-electric vehicle, is it positioned as more of a halo type of vehicle that would be offered to existing Ferrariste as like a very desired kind of -- obviously, it will be desired, but more for the existing family, the club, the members of the club, existing members of the club, who you can kind of trust, who will appreciate the engineering and the effort you put into it and also be a good source of feedback when you -- given it's such a big leap.

Or is it kind of designed to kind of expand and bring in new Ferrariste right away, right off the bat? How do you -- and I realize it can be both of those things, but I just wanted to ask that question to see where you took it in terms of kind of more controlled environment, trusted family members, a member of the House of Maranello? Or is it kind of a little more ambitious than that before you then launch into the future generations of electric cars? And then I have a follow-up.

Thank you, Adam, for the question. I can tell you that we are -- about Elettrica definitely is a good try for you to understand how the car is positioned, but you still have to bear with us a few more weeks, and then October will be more clear. Sorry about that. I know you are curious, I would be curious already in your shoes. But it's a good try. You did well. I can tell you that this car is meant for the people that want it. As I said, we don't want to push the car, we want the people to have -- to be in love with the car. And it's for, let's say, people that are already in the community as well as for people that will join the community because of this addition, not transition, addition to our offering.

So it's a PV, you cannot try it. Me and Antonio keep trying sometimes with the test drivers on the track on different places where nobody can see during the night. So bear with us a few more weeks, 8th of October is close.

Okay. Well, I thought it was a very good try if I say so myself, but you did better. You got me. Okay. My second question would be, are there enough changes? There have been some significant changes from key governments, especially in the United States, but also possibly in Europe on kind of the timing and some of the rules around CO2 emissions. And I understand Ferrari, you don't design products for CO2 rules. You design compelling beautiful products that people want, but can't get.

But I'm just wondering if there's any impact from -- I mean, it seems like we don't have an EPA anymore in the United States. Some of those factors, do they at least affect some of the timing or medium or longer-term product rollouts in any way of your more electric products? Or is your answer, I think, predictably going to be, Adam, we do our own thing. We can't control the rules and it has nothing to do with us?

Adam, I think that for sure, I don't think there is any company in the world that can control how the things are moving outside their wall. So we control what we do. We proceed, as Antonio said, and I said as well, focus, determination, discipline and with agility. I think that in time of this, in these days, when things can change for whatever reason, the advantage to have a company such as Ferrari that is not big, that is more or less in the same place, it helps because we can take decision pretty fast. I think you know that I think we are being the only one that ahead of the 2nd of April, we updated our commercial policy because I think we know what we want to do and how we -- the best way to proceed. I think the time is of the essence.

When it comes to regulation, the regulation are important also for us, are important for us, and this is why we are working on the sustainability. So just to make you an example, I can remember what I said a couple of conference calls ago when I said that the 12Cilindri is a car that is compliant with the current regulation, but we did already some innovation that can help us to make this car also compliant with -- this kind of car can make us compliant with the future regulations.

So allow me to say in this way. When the boundary conditions change, it's a good push for us. It's an opportunity for us to keep challenging us, to keep learning and to keep redefining the limit. So I think this is -- I mean, we keep in consideration, and we know what is in our hand, we can control and what is instead what must be managed. And the external condition, we are managing them. And I think that we are managing pretty well with agility. And we have to be always, like I say, with the four wheels on the ground. We'll take when they come, we'll manage.

Next question comes from Monica Bosio from Intesa Sanpaolo.

I hope you can hear me. My first question is on the Amalfi. So I'm just curious what the company aims to achieve with Amalfi. So do you expect to attract new customers at [indiscernible] Roma? My second question is on the 296 Speciale. Benedetto, you already said that there is an overwhelming demand, and basically the order are approaching the completion of the life cycle. But any color in terms of regions or customers could be very useful. And my last question is on the Dodici Cilindri. I remember that in the last call, you said that Dodici Cilindri gets less traction in China because of the tax. So I'm just wondering what models do you see gaining more traction in China?

Okay. Thank you, Monica. I'll start from the last one. Last year -- last call, I was also generic telling Dodici Cilindri not only as a car, but as a motorization because usually, the tax on the Dodici Cilindri is higher in China. So the number of people that are willing to pay more or less 2.7x the price you pay in Italy is lower. So that's the reason why I said we will have a new car, and Amalfi is one of this, that will make -- that is more suitable for the Chinese market.

So the Amalfi, and I go back to the first of your questions, if you want two key messages. One, it offer us the possibility to improve the offering in countries such as China because over there, the offering was a little bit limited with the model we had before. And two, is a car that is meant that by putting together the sportiness and the comfort and elegance and the price that is meant also to bring in our world, in our community, clients from other brands. So this is -- I can tell you that -- I mean, we are starting to take orders. Delivery will start in first semester next year. And I can tell you that we have a decent amount of clients that are joining our community from other brands.

And the other question you had, the number two was about the 296 Speciale. The demand is very strong. We do not have any color or any, I would say, pattern -- geographical pattern. We have people from Middle East as well from Japan or U.S. or Europe that are extremely happy and anxious, let's say, to get a car like this. The commentary about the design that is completely new. It's about also the color offering. There are some color like the green Nürburgring, for example, that are making and attracting attention across the globe.

So, so far, I would say that the model we selected are in line with our expectation in terms of appreciation and also in terms of, let's say, how the order book is moving.

Very clear. If I may, a follow-up housekeeping. Susy asked about the third quarter. The last quarter, I'm referring to the last quarter, Daytona will no longer be there, but we will have the few deliveries of the F80 and a much more visible impact from SF90 XX and Dodici Cilindri. Can we say that this could compensate -- could offset the lack of the Daytona, Antonio?

Okay. In terms of mix, we expect the second half to be pretty neutral compared to last year, as a result of the changeover of lower Daytona disappearing in Q4 and the initial sales of the F80, and the ramp-up of the XX and Dodici Cilindri.

Next, we have Thomas Besson from Kepler Cheuvreux.

I have a few questions as well, please. I'd like to start with the share of hybrids in the quarter was the lowest in a couple of years. Could you give us some indications of what we should expect for the next 6, 12 months on that front? I guess it's linked with the lower volumes of the Speciale versus the regular versions, but I just wanted to hear your thoughts on that.

Second question, you said you're more confident on the guidance and you removed the 50 bps cautious element of it. But at the same time, you say you're going to align the pricing to the evolution of tariffs. So could you explain why you don't keep this 50 bps element of caution?

And lastly, on the bridge, the other line was higher than usual for the second quarter in a row. You explained why. Can you tell us whether we should expect that other line to stay at a relatively high level and partly offset the lower mix in the second half of the year?

Thank you, Thomas. I'll take the first one. The share of hybrid, you should not take, let's say, punctual quarter-by-quarter. What I can tell you is that it depends a lot what is offered. Today, if you see what we have in our offering, we have some, let's say, higher volume cars that are reducing. And we have -- I mean, so far, we announced in this year, three models, two hybrid, six-cylinder hybrid, 296 and one eight cylinder [ turbo ].

So we are -- I would say that this demand, the ratio depends also on the volume of this car we want to produce. Clearly, 296 Speciale has a lower volume than 296. So we may have a slight decrease of the percentage of the hybrid cars because we have more IC to sell. The confidence and the EBIT, I think Antonio can comment in detail.

Sure. Thomas, on this confidence on the guidance and removal of the 50 basis points, the main reason is that we added in my explanation, meaning we expect now industrial costs for the second half of the year lower than we had originally anticipated. That helps us to compensate together obviously with the fact that the assumptions on the ranking in Formula 1 is now different compared to the beginning of the year. Those are the main -- then within industrial cost, we see there are a number of items going up and down, but the main trend is downward compared to expectations.

Other in the EBIT line in the second half, I haven't done the math, honestly. I would expect the growth in terms of contribution of new sponsors to be lower compared to what we have seen in the first half because last year, we had already a number of sponsor or new sponsors in, still positive, but I would expect it to a lower extent. Better contribution from the Formula 1 commercial right holder should stay there. So I would expect positive, but not necessarily to the same extent as it was in the first half.

Next, we have Flavio Cereda from GAM.

A question for Benedetto. A very quick question. Can you -- as you're aware, the story is about you guys delaying the launch of the second electric vehicle due to perceived lack or lower levels of demand. I find that quite incomprehensible. So given that you're on the line, can you clarify exactly what the position is, please?

Thank you, Flavio. That's a good question. I think that we said in 2022 that in Q4 '25, we were going to unveil our electric car, and that's what we will do. We are keeping, delivering on promise. So we are perfectly in line with what we said. We are trying the car. The car is proceeding as planned. There is not an hour of delay, single hours of delay on this project. It's very important.

So it's -- we never talked about the second car or the third electric cars. So we are very confident, okay? And 8th October, when there will be the unveil of this car, of the engineering of this car, you will see what's behind the article and our words, let's put it this way. You will see it. So you have to be a little bit more weeks of patience and then we will see. We are having a nice evening with Antonio and other colleague in a place with a lot of mosquitoes because we have to try the car during night, otherwise people see it, can take pictures. Unfortunately, there are a lot of mosquitoes, so it's not easy. But it's on track.

Next, we have Anthony Dick from ODDO BHF.

A couple of ones on tariffs. Firstly, I'm just wondering if you saw in the past couple of months, any signs of client cancellations or postponing orders and if this has changed at all since we've had more clarity on the tariff environment. And then secondly, more on the kind of modeling and cost side, but could you maybe help clarify how you expect tariff costs to evolve over Q3 and Q4? I know sometimes you batch your orders for the different regions. So I'm just wondering if we should expect a large share of volumes at the 27.5% rate in Q3? Or if there's kind of a way to work around that? And maybe just a final one is on the Daytona SP3. I'm just wondering if you could share the shipments that you had in Q3 -- in Q2, sorry.

Antonio can manage all these questions with all the detail.

Sure. Starting from the last one, shipment for Q3, we do not provide -- sorry, Q3 shipment for the Daytona. Q3 shipments overall, we do not provide in advance, as you may imagine. As far as Daytona is concerned, it will be around 40% tariffs expected in Q3 and Q4. Well, it all depends. The political agreement -- if you meant U.S. tariff, the political agreement has been reached. The question that I mentioned is it's still uncertain from when it will actually apply, meaning when there would be an executive order to make tariffs lower compared to today. As of now, we have a certain amount -- certain number of cars that have been imported at 27.5%. From then on, we'll keep on -- we will start importing at 15%.

Third -- your first question, cancellations, postponement for the tariff environment. We do not have the sense that tariffs have an implication in terms of customers' behavior, at least not a clarity in this respect. It's more -- perhaps if I had to mention, I did it to Benedetto, if you tell -- it's different, it's more somewhere the uncertainty that may have created a sort of wait and see in some areas of this world related to the uncertainty. But it's very difficult to judge because it's also -- the order intake very much depends on the cars that we have available for order. And since we are close to the end of life cycles of several of our models and the others are sold out, we can't really measure what's the overall sentiment in respect of introduction of a new car, at least for now.

I think it's a good point. I think that on one side, we have, let's say, a model, let's say, portfolio with more or less all the models sold out and the new model joining our offering now. On the other side, we have -- we reached -- if you look at our order book that is -- it's entering into 2027, well, and it's not even considering all the order of the car we launched recently. We have, for example, a record backlog in Asia, if you consider all Asia with the exclusion of Mainland China because we account it under different region, where we have this really record backlog for this region.

So it's what Antonio said. We may have some wait and see that is confounded also with the fact that there are not enough model we can sell. So the client -- the offering is not as rich as it is becoming now with the announcement of the three models we did and also with the announcement of the other model that we will do in the second half of this year. Remember that this year, we unveiled six -- we announced six models, three have been done, three others will be done from now until end of this year.

Next, we have Henning Cosman from Barclays.

If I could ask a similar related question to Flavio's earlier, but I'll try a different way. You also have this 40% electrification ratio for -- in your 2030 targets from the last CMD. And I'm just wondering, I appreciate you've never talked about an actual second electric vehicle. But just if there's any chance, maybe premature to ask this now, but is there any chance to revisit that in the upcoming CMD? That's the first question.

And Benedetto, just because you mentioned now the remaining launches of the year, we're quite pleased to see the confidence and the resilience and the pricing of the launches so far. For example, Amalfi 10% above outgoing Roma, 20% above the original Roma price. Is there any reason to suspect that the upcoming launches may not follow that confident and constructive pricing strategy?

And if I can squeeze a final one just to clarify. I think, Antonio, you said there's 40 Daytonas left or so for Q3, which I suppose means you had delivered about 60 or so in Q2. But if you could just give us the exact number as customary, that would be great.

Thank you, Henning. You remember well, 40% of our offering in 2030, that's what we said it was going to be electric. And it's a good try, but we will show you in a few weeks at Capital Markets Day what we are aiming to for the future. We will show with you and all other colleagues in the call as well as others all the detail of what this company intends to do for the next 5 years. Fact number one.

Fact number two. Usually, I mean, as we do not talk about the specificity of the model because it's important to keep them secret. Also the price is another important factor that we will disclose when it's time. We will have -- from now until end of the year, we will have this car launched and then we'll disclose what is the price also. Because imagine that you have to disclose first the price to our dealers, and then we can disclose it publicly. Otherwise, would not be fair with some people that are playing an important role in our community.

For the Daytona, I think...

On the first one, I can answer. You did the math right. So we were approximately 60 in the second quarter.

Next we have Nicolai Kempf from Deutsche Bank.

Not many left, but coming back to CMD, and I don't want to steal your thunder, but we are all very excited. Can you just give us some ideas what we should look for in terms of the announcement?

What does it mean announcement or what, of the car? No.

On everything, on what should be focused on at the event.

Look, I can tell you that at the Capital Markets Day, we'll disclose you in detail what this company intends to do in terms of marketing strategy, product strategy, financial strategy, the business plan. I mean, expect from us to get the same kind of transparency and clarity that we got -- we did and we shared with all the world 3 years ago. I think for us, transparency clarity is key also because it's key for you, it's key also internally because we will use this material also to do the deployment of our strategy for all the people in the company.

So if I understand well, Nicolai, this is the answer to your question. So if you can -- I don't know what is your plan. You will see the same detail. You will see what we commit to do till end of this decade.

Next comes from José Asumendi from José Asumendi.

José Asumendi from JPMorgan. Antonio, can you please comment on the second half? When you look at the balance between mix price and then industrial cost, R&D and SG&A, do you think there's a chance that the balance of both categories are going to be a bit more in the positive territory or more neutral? I know you commented on each of the different buckets for Q3, Q4. But just wondering for the second half, how should we think about that?

And then second, Benedetto, probably also a question for the Capital Markets Day. But can you comment on CapEx a little bit where we stand on the cycle and medium term, how do we think about CapEx, especially in the light of all the special projects you have, right? You have a lot of I think super interesting projects like Elettrica, et cetera. When do we start on CapEx? How do we see this 2 years out?

So I take the second one and Antonio. So you may remember that many times I said that one important things for a company to be innovative and sustainable is to define clearly the boundary within which innovation must happen. Two, to keep on delivering what the company is committing to do in front of everyone. So what I can tell you that what we told you 3 years ago and the entire world, well, we are fully on track with that. I mean we -- I believe that the best source of innovation in the company is to define the boundary condition and then the people will find a solution.

So if you want, yes, we are in line what we said we were going to do with the CapEx. So there is no deviation. You will see more detail during the Capital Markets Day and how we intend to proceed for the future. But as of now, I can tell you that we are on track with everything we committed to all the shareholder community on all the fronts, CapEx included.

Yes. And as far as your first question, I answer on a yearly basis. We expect mix and price to contribute positively to the development of the earnings for the year. Industrial costs and R&D are generally a negative. But as I said before, because of a lighter second half of the year, I expect it to be lower negative than we originally anticipated but for the impact of tariffs, of course.

SG&A, I expect it to be a negative, and this is for a number of reasons, including the fact that this year is full of events, of launches of cars. And we keep on working on the infrastructure of the company. And I think I mentioned it all.

Our last question comes from Tom Narayan from RBC.

Tom Narayan, RBC. I wanted just to clarify, I think you said this, sorry, I missed it. Daytona's -- sorry, did you say it was 40 in Q2 or 60? Then next question was -- it's really a response to Stephen's question. I wonder if this is impacting the stock price right now because I'm getting questions on it. Did you mention something about residual values being contemplated in the U.S.? Maybe you could just put that to bed. It sounds like that's not what you're seeing.

And then third, on the guidance, Antonio. I know you said to expect mix in H2 '25 to be similar to H2 '24. I know this is just a mix comment. If I just use H2 '24 numbers, it feels like it implies '25 numbers close to the guidance floor. Just curious how you think of the order of magnitude of what greater than means.

Antonio can go through this question.

Yes. So first, maybe just to take out the point from the table. On the stock price, we haven't discussed anything in respect to residual value in the U.S. I don't know what you were referring to, at least not in the call. Okay. If there is any doubt in this respect, please ask. I'd go through the other two questions.

On Daytona, sorry if I spread it wrongly. But basically, in Q2, there were 60, 6-0. And in Q3, there will be approximately 40, 4-0. Mix in H2 '25 versus H2 '24, I said they rather neutral. Honestly, I don't want to go into the details of how much greater than compared to. Okay? Let's see the signs of the...

I think for the first question -- on the second -- the third, what was it? Residual value? For the second one, correct me, Tom, to my comment when I said that U.K. and U.S. There is U.K. yes. U.K. that was we said already was a little bit under pressure, and we took some commercial action like to reduce the number of cars we are putting over there. And then I said that in U.S., we have some models that are a little bit under pressure for which we took some commercial actions that are showing some results. So this is what I was saying, Tom. It was not said in my speech, but it was said in the first question to Stephen.

Okay. So there's nothing to be concerned about for the U.S. residual?

We do not have any specific concern about this. What I can tell you is that we -- for example, we said in a couple -- in a few conference calls ago that for some model, the hybrid, let's say, the aging of the battery was seen as a kind of concern. And that's reason why we put in place a kind of warranty scheme in terms of the battery that is having an adoption depending on the state from 20% -- from 15% to 20%. So basically, this was a concern that over the time, the battery can get -- can expire. And then we put in place since September last year, that is having a kind of warranty, that is having a good traction. Just today, we are around 15%, 20%, depending on the state. While for other usual guarantee, we are below 10%.

Thank you for all the questions. This concludes the Q&A session. And I will now turn the conference back to Benedetto Vigna, CEO of Ferrari for closing remarks.

So thank you for your time today and also for all your questions and for trials to get more information, but you have to bear a little bit more till the Capital Markets Day. We are really looking forward to see you here, back here in Maranello for the Capital Markets Day. It will be October 9, so a few weeks more. So the next appointment will be that one. And then I wish you a good morning, good afternoon, wherever you are on this globe. And thanks again for your questions, for your attention. Thanks from all the people here in Maranello. And if you have a rest, have a good rest in August. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.