Ferrari NV Stock

Good day, and thank you for standing by. Welcome to the Ferrari 2026 Third 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. Please go ahead.

Thank you, Nadia, and welcome to everyone who is joining us. Today, we plan to cover the group's Q3 2026 operating results, and the duration of the call is expected to be around 45 minutes. The call will be offered by the group CEO, Mr. Benedetto Vigna and Group CFO, Mr. Antonio Piccon of 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 of today's presentation, and the call will be governed by this land. With that said, I'd like to turn the call over to Benedetto.

Thank you, Nadia. Thank you, Nicoletta, and good morning or good afternoon to everyone joining us today. Today years, we are pleased to share with you 3 important updates: one, the financial results of the third quarter; two, the progress in the 3 sources of our brand and last but not least, an update on the full year guidance. But before that, first, on the brand side, Ferrari climbed by 3 places in Interbrand's best global brands '26 confirming itself as the world's most valuable Italian brand.

Second, my sincere thanks go to the teams, to our existing and new clients for their loyalty and trust and to all our business partners who work alongside us every day. As underlined in the previous calls, we remain fully focused on innovation, both in terms of product and experiences we offer and execution consistently moving along the trajectory set out at our Capital Market Day. This continues to be our north star because we believe that only in this way, we can continue to be unique in the ultra-luxury space we operate.

Our Q3 business performance was characterized by strong product mix and a solid trend in personalization, which has led to revenues at EUR 1.9 billion, EBIT above EUR 560 million, growing double digits and industrial free cash flow generation of more than EUR 565 million. We believe that only through emotion-driven innovation, consistent execution and focused discipline, we can make remarkable progress. So now let me say with you our progress over the past quarter across each of our 3 stores.

Let's start with sports cars. Q3 has been an intense and engaging quarter. It started with the launch of the [ Doclin ] Manual and it closed with the digital debut of the truck model, GT3 Modificata, -- it has also been constellate by numerous dynamic marketing activities, which allowed us to engage both repeaters and new clients, further supporting the continued momentum of our brands. There is nothing more experiential in cash. And all fear experiences are a fundamental part of leading our brand with all our sensors. The experience is on road. And on trucks, we offer our friction over the continents represent a truly differentiating factor, sustaining our uniqueness.

They create a memorable moments for our clients to engage with Ferrari beyond our cash they enlarge the Ferrari community creates new bonds and further strengthen the sense of belonging to the pricing ours. I personally attended the [ catal caps ] in Europe in July and recently retribute University [ Herrin ] India, where I also had the pleasure to drive from Jaipur to Agra. And I can guarantee you that driving altogether and easing cars in beautiful outstanding landscape is try unique and most importantly, establishes special and forgettable connection among all the participants.

And during 1 of these moments, the first ever Ferrari Luce has been auctioned with for the record amount of $40 million in Pebble Beach, where proceeds will be developed to educational project in U.S.A. and I Maranello. A few facts about Roche. One, first few deliveries. Two, 2027 deliveries are fully allocated. Three, more than 50 local premier in private views across U.S.A., Europe, Middle East and AsiaPac and 5 public events, including the temporary exhibition at our Museum, they're all done. Each created valuable opportunities to bring the car closer to our audiences in person. Expressing its uniqueness better than any digital experience could.

Fourth, international media test drives are planned for Q1 '27 and right after test drive for our clients. In the meantime, the global rollout of our new corporate identity is progressing across our dealership network. Reflecting our dealers continued commitment and investment in the brand and further elevating the way Ferrari is represented across markets. Some of the recent openings include those in Zug, in Switzerland, Pasadena in U.S. and Riyadh in Saudi Arabia that you can see in the chart.

Inside the new dealership at the centers -- at the center of this dealership, we have Piasta Hosting clients to underline even further that we always put clients at the center of what we conceive and what we do. And now let's talk about order book. We continue to experience a healthy demand across all geographies with an order book that enters '28. And more is yet to come. We will launch in the physical world to new models before the end of the year, and we look forward to sharing them with you, just to wait a few more weeks and you will have a better understanding of what we are planning to do.

Moving on to racing. Last Sunday in Mexico, market historic moment for Formula 1 and Italian motor sports. And here, I would like to congratulate Kiantone on becoming world champion. Competition is what drives us. It raises the bar, force our determination and remains us every day why Ferrari races to win. We remain fully focused on Formula 1 and the World Endurance Championship, pushing to the very end of the season while already working rentlessly towards next year.

Beyond the track, our selling adventure is progressing further with the announcement of a few weeks ago of the crew and the new operational hub in Livorno that we lost diaper sales by the end of this year. Innovative 100 feet flying monohull decided to challenge the oceans, entered the final construction phase, a truly technological masterpiece with more than 20 patents registered. And last but not least, lifestyle. The quarter was equally reached in activity from the capsule collection for the Monte Grand Prix to the increasingly tailored experiences offered through Casa Ferrari at Pebble Beach in our fund zones and the launch of the sketch body.

This project brings together our innovation and tradition, and it enriches our collectible offer, meeting strong interest from our clients and already sold out for the next year. If you haven't seen it yet, I really invite you to take a look. Across all these initiatives, we have continued to express our brand with the same consistency and sophistication preserving our identity MD&A. MDPs with the same approach that we are now preparing after the London opening in Q1, '26 for our next flagship store opening in New York where we will unveil our new lifestyle collection.

To conclude, we continue to execute our plans with innovation, focusing the termination making steady progress on the path outlined in our business plan. Today, we are raising our guidance for the year, and then Tony will provide you with more details and colors about it. And on this note, I hand over to Antonio. Thank you.

Benedetto, and good morning or afternoon to everyone. On Page 5, we will present the highlights of the third quarter -- it was a strong 1 with remarkable profitability growth and supported by the business trends we have seen throughout the year, a strong sports car mix and personalization we continue to exceed our expectations. Industrial free cash flow generation was also strong, almost achieving our full year guidance in the first 9 months.

Let's review the results in more detail. Turning to Page 6. You can see the breakdown of our Q3 shipments and the ongoing model changeover which continues to progress in line with our plans. During the quarter, the 849 Testarossa and the 296 Petalaperta continued to ramp up together with the further deliveries of the 849 Testarossa Spyder. The Amalfi and the 296 special Coupe increase their contribution and enter the global distribution phase joining the Doctrine family and the Purosangue.

Deliveries of the FAP progressed in line with our plans, while the 296 GTS, the Roma Spider and the SP90SS Stradale family reached the end of their respective life cycles. The geographic mix of our deliveries reflects the usual rationale -- when a new model is launched, we serve closer market first, followed by a progressive rollout across other geographies.

On Page 7, Net revenues increased by almost 10% at constant currency and 7% including the headwind from currency, mainly related to the U.S. dollar and Japanese yen. The increase in cars and spare parts was driven by the richer product mix and higher personalization. Personalization surpassed 21% of total revenues from cars and spare parts and was particularly relevant for the 296 Speciale family. The adoption of carbon and pain continue to drive revenue growth. Sponsorship, commercial and brand increased thanks to higher sponsorships and lifestyle activities, which were partially offset by lower commercial revenues linked to last year's Formula 1 ranking.

Other revenues also positively contributed mainly in relation to the rental of engines to other Formula 1 racing teams. It is worth noting that while the comparison against the U.S. dollar spot rate is becoming more favorable, we continue to record a negative variance from prior year hedges. Moving to Page 8. The remarkable increase in EBIT was driven by the very strong mix price variance, reflecting the positive product mix and the strong personalization previously highlighted.

In detail, the product mix is the result of the positive contribution of the FAP, the 849 Testarossa and the Todisilindrefamilies as well as lower deliveries of 96 range family. Partially offset by lower deliveries of DSS 90 excess family and the ramp-up of the MLC. The positive volume variance is due to spare parts, while shipments were deliberate planned slightly lower to allow for the smooth completion of the model changeover. These positive variances were only marginally offset by higher depreciation and amortization, in line with the start of production of new models and higher marketing expenses.

The higher costs implied by the better Formula 1 in-season ranking assumptions compared to last year included in the other variance were substantially offset by the positive contribution from racing and lifestyle activities. Percentage margins remained at very strong levels despite the foreign exchange headwind with mostly -- with both the EBIT margin and the EBITDA margin increasing compared with last year.

On Page 9, our industrial free cash flow was strong in the quarter, driven by the increase in profitability and supported by a positive change in working capital, mainly the fracking the advances collection. This was partially offset by capital expenditures, primarily focused on product and infrastructure development with the new paint shop approaching its completion. At the end of the quarter, we were in a net cash position of EUR 219 million even after the share repurchases executed during the period.

Turning to Page 10. We upgraded our guidance for the year. Our updated assumptions for Q4 include a stronger contribution from personalizations in line with the Q3 trend which is supported by the higher concentration of special versions planned in the fourth quarter. A further improved U.S. dollar to euro exchange rate compared to Q3, including hedges, and lower Formula One costs, reflecting the current second position in the champions ranking, while we assume that all 4 remaining rates will be confirmed.

Looking ahead, we remain firmly focused on executing our plans along the guidelines outlined at our last Capital Markets Day. Our confidence in the strength of our strategy and in our ability to preserve and nurture our brand over the long term continues to guide us every day. Thank you for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Now we are ready to open the Q&A session.

[Operator Instructions] First question, it comes from the line of Edouard Aubin from Morgan Stanley.

So 3 quick ones for me. The first 1 is the SAG. I think doing the math, you're anywhere between and 50 units shipped in the third quarter. So I think for the first half, people had assumed around 40 units per quarter in Q1, Q2. Are you more or less in that kind of range? Or is there any significant or material acceleration or increase sequentially between H1 and Q3. So that would be question #1.

Question #2 is, as you just mentioned, Antonio, you now assume second place in Formula One camp -- can you -- regarding the release of provision for Formula 1 relationship, are you -- will you take this release in Q4? And can you just give us an idea of what roughly the amount you expect to release in Q4, if that's the case?

And then lastly, Antonio, and the impact on the hedging on kind of top line and profit, what do you have in mind for kind of Q4 in 2027.

Edouard, this is a question for Antonio. You will Manos the first one.

Yes.

The first 1 on SAP. We have been growing just slightly quarter-over-quarter. And therefore, we were still within the -- in the region of 50 units. With respect to the second quarter, which was on changing ship formula one changes in bond release, we already adjusted some of our assumptions and then the 1 in relation to the contractual championship, as we said, is encompassing the full year guidance. And we don't go into the details of the size, but it's not very material -- a few millions.

Hedging, what you're expecting in Q4. I think I commented some while ago as to the fact that we were expecting a negative foreign exchange rate impact of around EUR 200 million. Considering where the spot rate is there will be lower than that, but still there is the reference. So between EUR 150 million and EUR 200 million. Overall full year basis.

Thank you. Now we'll take our next question. And the question comes line of Monica Bosio from Intesa Sanpaolo.

Yes. I would have 3. The first 1 is on the shipments. They are reflecting the modest changeover. But I was wondering if you can give us any feeling any colors on the fourth quarter, because the last year, the fourth quarter was -- was very negative. And so I would expect a positive trend this year on the back of the completion of the model changeover, but also on the back of the comparison base. So any color could be useful. I know that you do not comment on volumes, but it would be useful this time.

And my second question is on the country mix. As many others are approaching the global distribution, should we expect a better country mix in the fourth quarter and above all, what do you see in terms of country mix for 2027. And that's -- I would say if you can squeeze another one is on the shipments in Mainland, China, Hong Kong and Taiwan, they were down. I -- is this due to the model changeover -- or are there any other particular reasons?

Thank you, Monica. I think you did to deductions that you did are very right. #1 is what you said, it's because of the model changeover in China that we have business swing in Mainland China. And the second let's say, your deduction is also correct. Q4 year-over-year will increase. So congratulations for your right reduction. Country mix wise, you also read -- we are -- yes, all the models are approaching the global distribution. And this is embedded in what is the updated guidance that we are providing here also because the personalization that we have over there are basically start to be fully defined for the year-end. Thank you.

And the question comes from the line of Henning Cosman from Barclays.

First question is on the revenue growth acceleration implied by the floor of the guidance, I think it sort of implied to accelerate at least 9% from about 6% so far year-to-date. So I'm just wondering what that might imply in terms of volume and in terms of I think we had already said ASP is broadly stable, H1, H2. Now you've upgraded the guide -- so just to clarify that we're looking at broadly stable volume in Q4, but probably quite a bit higher ASP year-over-year in Q4. If you could just confirm if that's broadly the right thinking to support that revenue growth acceleration.

The second question is, if I could please ask about the very high share of specials in the third quarter, 22%. I thought after the above 13% in the first half, we were sort of saying we expect broadly stable half-over-half and now it's much higher again. Could you just say if you think this will drop very materially in Q4? Or -- is it going to stay elevated? And what might be behind that? And just finally, again, on the FX, Antonio, if you could just say what your dollar assumption is now for the full year and what it is for 2027, please?

Antonio, I take the first 1 .

And then I take that. In terms of volume and ASP for adjusting the guidance I think we have been clear. We have not been adjusting volumes. Volumes benefit from any to concrete last year, as Benedetto commented before. and we expect to have ASPs slightly higher, in line with the indication I gave some quarters ago about the fact that the second half would have been slightly better compared to the first one.

I share a special here even this one, I think we have already commented in the past. This year is very special. There is a concentration of special series. We expect this to normalize going forward and assumption personalization for the year. We started the year with guiding for approximately 20% personalization rate we are currently above that level. And we assume that the last quarter will not make any tension. So it will be continued.

Sorry, Antonio, your question was on FX. The euro dollar exchange rate, not -- sorry...

The current spot rate. But for us, what really matters is not just there, but even the edge is in place.

And are you willing to share the euro dollar number that you're assuming for the P&L -- and .

Approximately more than 115 blended between satang. .

Both this year and next year yes?

No, no, -- we're talking about fourth quarter . We're not talking about 2027. .

'27 you have to wait. .

And the question comes from line of Martino De Ambroggi from Equita.

The first question is on the ASP gain because plus 9% in the first 9 months. year-on-year. So should we expect at least mid-single-digit growth also next year just for -- and the second is on the Luc that you already fulfill the orders for '27 -- could you elaborate on where they come from in terms of region kind of customers? And what are the areas you are not tested yet, which could be an upside going ahead?

Thank you, Martino. For the first question, I mean, the SP trend next year, you have to repeat myself or Antonio, what you told the ending. So let's wait for February when we meet the next time. For the Luce, I think that there are 4 important things that I would like to underline. The #1 is that the Luce is in production as planned. The second is that by end of this year, we will have a few units on the road. The third is that in Q1, we will have international media test to drive first and then test drive for the client. And then all the Luce that we plan to sell next year basically are all allocated.

So if someone comes, he has to wait 1 year to get the cars. So where do we see the potential today, I think there are some areas where the dealers are doing a fantastic job. There are some areas where the dealers can have some more opportunities than others. For sure, what we have seen is that there are 2 things that help the people to understand the better the car. #1, when they see in 3D physically. And #2, also, we see when and how the perception change when the people change -- drive the car. So yes, we see opportunities in some places, but also thanks to the experience and the interaction the people will have with the car.

And the next question comes from line of Michael Binetti from Evercore ISI.

Benedetto, Antonio. Great quarter. Antonio, you -- just a quick clarification on the ASP. I think it was up in the quarter. You said -- you reminded us that ASP would be a little higher in the second half than in first half. And that's in terms of euros, the level I think, to be flat just to orient ourselves to be flat in the second half versus last year. Fourth quarter would need to be down about 1%. That seems unlikely. Would you mind just helping us think about what you assume for 4Q maybe some of the moving puts and takes around that.

And then on the EBIT bridge for fourth quarter, the mix was EUR 119 million positive in third quarter. I'm trying to -- maybe you could help us think about the tailwinds and headwinds for fourth quarter relative to that number? Because I think you previously told us the second half mix would be above first half. So if we can orient our models around that maybe $85 million or more coming from mix in the fourth quarter. Maybe you could just help us think about the other items in the EBIT bridge that changed in fourth quarter?

Sure. The answer to both your question, Michael, is that it's still the same I gave you at the previous call of last end of July, meaning in terms of ASP, we still expect to target to have H2 slightly better compared to H1. So you can do the math and they said it's slightly better. And in terms of the mix price variance, even there, we said we expect it to be slightly better in H2 compared to H1.

So no change in this respect. Where we do expect to have in the last quarter different is that in terms of cost, we have an incidence of expenses for marketing and events higher compared to Q3 and we still expect to have D&A further growing compared to the previous part of the year. There is an acceleration, which is consistent with the introduction of new models.

Okay. If I could sneak 1 in Benedetto, you called -- you guys have called out paint and carbon as drivers for the really nice personalization we've seen for a while. How do we think about what the paint shop, I think, is still planned to open in 2027, what that means for the business as you guys take in-house more capability to drive what's been one of your best inputs to the personalization lines?

So Mike, we thank you for the congratulations you give us and all the team. We don't make so much because you put -- you believe that we are not keeping the pace to open the paint shop. I mean Yes, we will open the fish. Sorry you come here, you see a nice paint shop. No, I think that that's very important for the personalization. It shows that we believe in the personalization also because we put at the center our clients. I can tell you that we had a deep analysis with Antonio and the team. I would like to share with you some thing.

#1, when you talk about the personalization, 1/3 is coming from the material client are selecting on third in value, 1/3 is coming from the exterior including the painting, the color and 1/3 is coming from what the clients select in the cabin. So it's equally spread. We have an interesting outcome that I would say we are very proud of because all the personalization that we are developing are finding the right, let's say, they are pleased by our clients.

Now we're going to take our next question, and the question comes from line of Horst Schneider from Bank of America.

I try again the first 1 on 2027, even though you said you don't ask many questions about 2027. But I looked at the Q3 '26 call transcript and when we ask you there about the next year, basically, you said you want to have a smooth and as line as possible expansion of probability in absolute terms. So it seems from today's perspective, and I counter various levers. So we have got the Dutch Cilindro Mangala, a higher PLN26 a share if should sell higher, it seems to be a pretty strong year. It seems to be anything, but smooth and linear. So therefore, maybe you can share thoughts why it should be just smooth and similar linear next year?

The second question is maybe a standard question about residual value trends -- if you can share any update, you've seen that maybe the digital cylinder is weakening a bit. Maybe you have got a comment on that. And the third question is more towards the split between ASP growth and volume growth going forward. At the moment, we see ASP growing a lot a lot. Going forward, you want to normalize that again and how you aim to achieve that?

As I will take a couple of questions and then Anthonio will elaborate on the mathematical linearity. So the residual value, we see that they're very sound across different model and across different countries. And we are very -- we are very pleased because we see that the value, the sale value is very good, okay? That's important.

And this is true also, let's say, different models, either the recent 1 or the last recent one. When it comes to the question, how much should you expect a mix and volume? If the question is about '27, you have to bear with us, like we said also to your colleague in February, we will tell you '27 and then we will tell you all the drivers that we see for the growth. And on this, I would like to give the word to Antonio for the mathematical linearity.

Thank you. Thank you, Benedetto. But maybe I'll start from the first 1 where I just want to make a comment. Last year, we said that we would have expected development smooth and linear. It is what we said at the Capital Markets Day. What went differently if I look at 2026 compared to our initial expectations, is basically 2 elements. The first 1 is the level of personalization we guided for 20%. We are above that level.

Obviously, on that, I repeat myself, we have a shorter visibility compared to the order book because we allow our clients to find the level of their personalization until 3, 4 months than before delivery. So it's something -- it's kind of discovered -- and this has been supported by the concentration of specialty year. The second element, which makes a difference is the foreign exchange rate. At the Capital Market Day, we said we would expect 120 we are lower than that, we are benefiting from this.

And obviously, the hedges that we adjust from time to time may have a carryforward effect and depending on where the spot rate will go. So that is what I can tell you. But the Capital Market Day assumptions remain intact in terms of how we think about the development or introduction of new models, no change about that. Mix and volume only with respect to Q4, we expect to have still a relevant mix I said in my commentary to the guidance that we expect personalization rate to be in line with the recent months, and this is due -- and this is the same also in terms of product mix.

So my expectation is this is still the main component in guiding the results for the rest of this year.

My question was more relating to volume mix in general, not also beyond '27. So for example, you can stretch F 80 deliveries, right? I'm not sure if you can comment or want to comment on that, but I could just give it a try.

I can stick only to the fourth quarter of this year.

And the question comes from line of Gautam Narayan from RBC.

I also have 3. So the first one, personalization did exceed your initial expectations at 21%. I remember at the Capital Markets Day last year, I think we were shown a personalization at that work. And we were told that the carbon fiber supply was kind of a resistance factor. And unlimited, I think how much you could do? Is this now less of a headwind?

And then the second question -- we are hearing about some affordability risk creep in. I know in the auto industry, now I know Ferrari is not an auto company, it's a luxury company. But just curious if you're seeing any demand impacts on maybe more lower-priced offerings like Amalfi. And then lastly, residual values, plug-in hybrids are now a much bigger portion of deliveries than they were a couple of years back. The issues that you saw a couple of years ago on plug-in hybrids now in the rearview mirror? Was it just a function of getting the dealers to educate consumers on these products?

Thank you, Tam. I think that we are not a luxury company. We are a unique company that is luxury and in the technology. So I think it's important is because we care about this uniqueness that was also underlined in different messages through the Capital Market Day. Coming to the -- I got this through the question you gave us. The first one, I think you said it well, you understood well.

The story of residual values on hybrid is changing because of 2 reasons. #1, the dealers are getting more used also to explain how to use the deal, the hybrid. And 2, the people are getting more and more in love with the hybrid technology because of the advantage that the combination of electric engine and thermal engine are giving. So you saw it. And I have to say that we have been visiting several dealers that have been developing very simple and clear educational material to explain to people how to use it.

The story of the personalization, you remember well, there was in the past a shortage on the carbon, we have been able to nil down some good, let me say, contract on the supply side. So that is not the limited factors. So we don't see it as a headwind. We are, obviously, since this does not depend on us, we are always looking what is happening. That's clear. The story of the second question, we see healthy demand across all the models and across all geographies.

There are some areas where, for example, the hybrid is preferred to ICE and vice versa or the 6 cylinder to 8 cylinder, but we see an healthy demand across all the models. And I would say we are very pleased about the offer, let's say, the product we are able to offer, we can offer our clients. This does not mean -- this does not mean that it's complete because you will see other things getting out pretty soon. We are also to keep delighting our clients.

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

Congratulations on the quarter. 3 questions, please. First, -- have you been able to hedge in decent proportions for '27, '28, taking advantage of the exchange rates below 115 or not yet? Second question on the Gucci. Could you give us a profile of who bought it so far? Is it 50-50 existing customers, new customers as you thought or different? Give us some idea of the geographies?

And maybe how many units broadly speaking, you plan to ship in '27 and last question, small things in terms of financial impact, but I noticed the spare parts contributed to volumes. Is there any acceleration in this? Or is that just an accident that we see in the bridge this time around?

Okay. I think -- so Luce, we cannot -- we don't want. We know, but we cannot provide you the split between the repeaters and the new client. What I can tell you that we have a good mix. It's a good mix in terms of client. It's a good mix also in terms of geography. And let me say there is not a specific pattern. We see the interest coming from people of different ages and different countries. The other part is about the spare part.

Clearly, there is a growth in Q3 also because you said it well. there is an increased use of the cash. So when you use more cash, there is a probability to -- that you need a little bit more spare part. That's the only reason is nothing strange. For the hedging, Antonio.

Yes. Thank you, Benedetto. Yes, we already covered -- we use a 12-month rolling foreign exchange rate policy. And therefore, every month, we hedge for the next 12 months with a view to be approximately 70% hedged. So clearly, the more you go head the more you benefit from the reduction of the spot rate that we have been enjoying in the last few months, and there is a portion of that in every single quarter, future quarter.

And the question comes the line of Anthony Dick from ODDO BHF.

I had also 3. The first 1 is on the follow-up on the special series. I know this year is a special year with the [ 29% ] early, but still in terms of the pace of the release of the new special series, we had the 12 cylinder manual this year and maybe 1 coming in the next couple of weeks. It also seems there's more special series being released more frequently. So I was just wondering, if that's purely a function of the life cycle and the model planning or if it's also a sort of conscious decision by yourself that these are the segments where you see the most demand and you can expand the most.

The second question is on the F80. So you mentioned around 50 units delivered, which is also still quite a bit below what we saw on the data in S3. I think it was up 70, 80 units per quarter. Do you also intend to reach that level at some point? Or do you see a more smoother delivery cycle? Do you feel you've already reached the current run rate basically.

And the last question I had is on D&A, which increased quite substantially in Q3, and I think you also increased the full year guidance a little bit. Just wondering is that was purely linked to the new models or there's also some fixed assets in there, maybe some accelerated depreciation on some which it's just really also the model planning and other life cycle that we see there. Thank you.

I take the 3 of them. Special series the concentration is just a result of the model phasing is there by design? Do you expect to restate on a level at some point. We do not disclose, we said, however, that we want to grow smoothly the delivery pace of -- with respect to D&A, I think it's there, the assumption since the beginning of the year that we commented a number of times, and this is entirely due to the new model introductions.

As soon as we start production of a new model, then we start having D&A accruing to the P&L.

Thank you. Now we're going to take our final question for today. And it comes the line of Jose Asumendi from JPMorgan.

And congrats on the strong quarter, I think, in the light of the mall changeovers and the higher costs. And the topic of higher industrial costs and R&D not for '24, '27, just end of the decade, Capital Markets Day targets. How do you see this trend, this industrial cost basically becoming more of a neutral impact, which obviously would enhance margins for the business? And then second, a bit more shorter term, please. How do you think about geographical mix into the end of the year?

So what the -- you want to go for the for the first one.

First one I think, I take it more as a question on development of R&D. I just remind you that there, we see the R&D expense to the P&L and in the variance. We have D&A that is dictated by the modern life cycles. We have R&D expenses for innovation, for the sports cash business. And the other piece is the development of expenses from Formula One. The area that obviously we have less control on is development for Formula One because that is dictated by the budget capital evolution that has been growing the level of expenses in the last few years, okay?

As far as what we are concerned in terms of sports cars, so the portion is related to innovation, we think of that as a rather smoothly growing line of expenses, okay? But very smoothly unlikely.

The second one, you say the geo mix is moving line with the change -- the model change. And so everything is moving, I would say, according to the plan. And we are -- this was the last question. I would like to say a couple of things. One, I would like to thank you for the congratulations that you needed to the team. There is a lot of works behind that. Thanks for appreciating that.

And I would like also to congratulate for you because I have to say that all the questions that you did are clearly showing that you have been listening and starting the material. We are very -- we like it because there is someone reading what we do -- thank you. And also thanks for the time and for all your questions. They are very useful for us and to do a better job to continue to do a better job for you for all the shareholders. And I wish you good morning, good afternoon, and thanks again for your attention. Thanks to Nadia. Thanks to all the team. Good evening.

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 2026 Second 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 our 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 Q2 2026 operating results, and the duration of this call is expected to be around 45 minutes. The 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 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. Thank you, Nicoletta, and thank you to everyone joining us. We are pleased to share with you the results of another important quarter for our company. The key message is clear. Ferrari continues to execute its plan with focus, discipline and consistency, keeping the client at the center and blending heritage and innovation in a distinctive way.

In this call, we will address 3 key achievements I would like to sincerely thank all the stakeholders for. One, we delivered another strong set of results. Two, demand remains solid with an order book that covers the entire 2027; and three, we continue to evolve our product offering through a consistent commitment to innovation, an innovation process that starts from human emotions, not from technology push.

We are a strong believer of emotion-driven innovation. But let's go step by step. Let's start with our financial performance. In the quarter, we delivered revenues at EUR 1.94 billion, EBITDA of EUR 755 million and industrial free cash flow generation of EUR 275 million. This performance was supported by strong mix and personalizations, which once again performed very well and allowed us to raise our full year guidance, and Antonio will provide you more detail shortly.

Moving to the second point, the order book. We continue to experience a healthy demand across all geographies with an order book that covers the entire '27. This gives us strong visibility and confidence. Across the portfolio, several models, including the 296 Speciale and the 12Cilindri families are already sold out for their production run, underscoring the strength of demand.

And now the third key achievement, our product offering. As anticipated at the beginning of the year and during the AGM a few months ago, 2026 is proving to be a key year for product innovation at Ferrari. With the presentation of Amalfi Spider, Purosangue Handling Speciale, Ferrari Luce and 12Cilindri Manuale, today, we have the most complete and diversified product offering ever. It includes combustion engine cars, natural aspirated and turbo, hybrid 6- and 8-cylinder models and Ferrari Luce.

This makes our product offering unique. We are the only luxury company able to offer sports car able to deliver any kind of propulsion that the client is willing to experience. We can address different client desires from collectors, repeaters, new clients and future generation of Ferraris and expand our offering in terms of product architecture, performance, design and driving experience. From now onward, Ferrari is able to offer all the 3 powertrain technologies fully in line with our technology neutrality and horizontal product diversification strategy.

We committed. We committed to this path, and we have delivered consistently and allow me to be very proud of the team and all the partners in the world that help us to make it possible. In Q2, we unveiled our first electric Ferrari, Ferrari Luce. It represents a milestone in the history of the Prancing Horse, a true sports car and an addition, I repeat, an addition to our product portfolio. It is a statement of innovation and design, a car conceived to be forward-looking in every respect.

It is a masterpiece of engineering and technology with more than 60 new patents, testifying to Ferrari's technical excellence across electric propulsion, vehicle dynamics and system integration. They are all combined with a distinctive design language and a human-centric way to interact with the car, including the traditional paddle-shift for torque-shift engagement and authentic sound of our 4 electric traction engines. Every choice we made served a single purpose to deliver a true Ferrari driving experience.

The Ferrari Luce is a sports car in every sense with Ferrari performance, handling and emotion behind the wheel while being the most versatile model in our range, extending Ferrari ownership into different moments with its 5-seaters configuration. 2 months after the world premiere in Rome, and we can share 3 clear points: one, we are very much satisfied with orders that are coming in, in line with our plans. Two, initial orders are currently coming from repeaters and new clients. Three, we are engaging those who are genuinely interested in Ferrari Luce according to our commercial and marketing plan.

But Ferrari Luce is only one example of how our lineup continues to evolve. On July 3, at the culmination of our Cavalcade event, we presented the Ferrari 12Cilindri Manuale, a limited edition special series of the 12Cilindri producing only 1,499 units, each fully allocated to our clients. After the 599 GTB Fiorano 2006, we reintroduced the manual transmission, bringing back an even more direct interaction between the driver and the car. This was made possible, thanks to the new Manuale by-wire system designed in-house, patented and inspired by the Winch-by-Wire system developed in our Hypersail racing project.

Yes, it may seem strange, but open innovation goes hand-in-hand with lateral thinking and cross-pollination between worlds apparently completely disconnected. It combines the driving emotion of a manual gearbox and the precision of electronics. The 12Cilindri Manuale isn't about recreating the past for the sake of nostalgia. It's about recognizing that the greatest Ferraris have always been defined by the relationship between the driver and the car and finding a modern way of preserving that connection, that conversation.

It is a celebration of engagement rather than a celebration of nostalgia. In a single quarter, Ferrari Luce and 12Cilindri Manuale have provided 2 clear examples of how Ferrari combines tradition and innovation in a distinctive way. They demonstrate the strength of our strategy and our commitment to technology neutrality, but most importantly, to our emotion-driven innovation where emotion matters much more than numbers but more is yet to come. Two more models are to be unveiled by the end of this year.

And before that, let me also highlight the successful activation delivered by our lifestyle team during the quarter. Indeed, leveraging the emotional resonance of our racing heritage, we continue to nurture our clients through unique experience and events, just seeing the 24 hours of Le Mans and the Goodwood Festival as well as the capsule collection developed for Monaco and Silverstone Grand Prix. To conclude, the progress we are making in racing, thanks to both our drivers and the entire team, continue to remind us what makes Ferrari stronger, focus, determination and team spirit. These values guide us every day, every day while keeping the 4 wheels on the ground. And on this note, I'd like now to hand over to Antonio to review the Q2 results.

Grazie, Benedetto, and good morning or afternoon to everyone. On Page 4, we show the highlights of the second quarter, another quarter with solid revenues and profitability growth, coupled with significant industrial free cash flow generation and remarkable shareholders' remuneration. We continue to benefit from a strong sports car mix. Personalization exceeded our expectations and racing revenues increased their contribution.

Let's look at the results in more detail. On Page 5, we present the Q2 shipment breakdown and model changeover that we are continuing to execute as planned. In the quarter, the Amalfi, the 849 Testarossa and the 296 Speciale family increased their contribution, continuing the ramp-up. The deliveries of the 12Cilindri Spider and the Purosangue continued steadily. The F80 increased just very modestly as per our plans, while the 296 GTS and the Roma Spider decreased in line with their phase-out path. Lastly, the SF90 XX family also decreased as we are approaching the conclusion of their limited series run.

The overall model phasing I have just mentioned supported a richer product mix, which we will discuss in a moment. From a geographic mix perspective, EMEA experienced the strongest growth during the quarter. Consistent with our usual cadence, closer markets are served first, while deliveries of the new models to the other geographies will ramp up progressively in the coming months. On Page 6, net revenues grew 11% at constant currency and 8%, including the headwind from currency, mainly related to the U.S. dollar and Japanese yen.

The increase in cars and spare parts was driven by the richer product mix and higher personalization. Personalizations were higher than expected, about 20% of total revenues from cars and spare parts and were particularly relevant for the 296 Speciale family. The adoption of carbon and paints continue to drive revenues growth. Sponsorship, commercial and brand also increased, thanks to higher sponsorships, which were partially offset by lower commercial revenues linked to last year Formula 1 ranking.

Other revenues were also positive, mainly in relation to the rental of engines to other Formula 1 racing teams. It is worth noting that the recent strengthening of the U.S. dollar mitigated the negative currency impact compared to our previous expectations. Moving to Page 7. The increase in EBIT was driven by the very strong mix price variance, which includes the positive product mix and the strong personalizations that we just commented.

In detail, the product mix was sustained by the increased contribution of the F80 and the 12Cilindri family and the lower deliveries of the 296 range family, partially offset by lower deliveries of the SF90 XX and the ramp-up of the Amalfi. The mix price variance was only marginally offset by volumes deliberately planned lower as required to effectively manage the model changeover, higher industrial costs and marketing expenses and higher costs implied by the better Formula 1 in-season ranking assumptions compared to last year.

The latter are included in the other variance. In the quarter, D&A was temporarily lower in line with the ongoing model changeover since the decrease implied by the phasing out of certain models is only partially offset by the gradual additions from the models that are entering the start of production. In H2, we expect D&A to grow progressively. Percentage margin stood at remarkable levels, including the headwind from FX, with EBIT margin at 31.2%, slightly up versus last year and EBITDA margin at 39%, slightly down mainly as a consequence of the better Formula 1 ranking assumptions.

On Page 8, our industrial free cash flow in the quarter was strong, driven by the increase in profitability, partially offset by a negative change in working capital, mainly linked to the inventory increase implied by the seasonal production planning. Cash taxes and capital expenditures, which were mostly focused on product and infrastructure development, mainly the new paint shop whose construction is proceeding at pace. Net industrial debt at the end of June was EUR 131 million, reflecting the dividend payment, which occurred in May and the share repurchases executed in the quarter.

Turning to Page 9. We increased our guidance for the year, thanks to the continued strong trend of personalization and a more favorable FX environment. More specifically, our updated assumptions include personalizations accounting for more than 20% of cars and spare parts revenues and the U.S. dollar to euro exchange rate of around 1.16 and the contribution of all additional hedges now in place. Looking ahead, we remain focused on the execution of our plan. The confidence in the strength of our strategy and our ability to deliver long-term value remains the foundation of everything we do. Thanks for your attention, and I turn the call over to Nicoletta.

Thank you, Antonio. Nadia, we are now ready to open the Q&A session. Thank you very much.

[Operator Instructions] And now we're going to take our first question, and it comes from the line of Henning Cosman from Barclays.

First question, perhaps slightly philosophical one. Would you share the observation that you enjoy more pricing power in the more traditional type of vehicles? So obviously, the Manuale by-wire are now really strong showing the special 50% priced above the range. But just in general, do you feel there's more enthusiasm and by extension, pricing power on these types of models? And do you -- would that affect your propensity as to which models you would launch going forward? And if you could remind us what your flexibility there is for how far in the future is your product cycle plan set already? Or would you let yourself be influenced by customer desire and pricing power for these, if you want more traditional type of models? That's the first question.

Second question on volume growth. If you could just -- I know you don't like to talk about volume, but if you could just conceptually discuss if I'm not mistaken, we were expecting broadly stable volumes for this year. That now implies a bit of growth in the second half. Perhaps you could confirm if you share that. Is that a function of just the product cycle? You have the Amalfi now ramping up 296 Speciale series. So would you always allow yourself to have more volume growth based on the product cycle plan? Or do other things play into that as well, like stabilization of residual values, for example?

Is it just a phasing you always have periods of expansion and consolidation, where do we stand there? If you could at all talk about volume just a little bit. And then finally, if I can squeeze one on the margin, right, where we're getting now and your midterm margin ambition of a floor of 30%. There's obviously not much in between. It looks like there's going to be a lot of F80s next year. Testaross, Manuale by-wire all looks like it's driving the mix up and probably the margin. So we could see a margin exceeding 30% next year, which technically would imply margin contraction for the rest of the plan. If you could just remind us your thinking about the margin trajectory '27% to '30. Sorry, that was a lot.

Thank you. The ink of the pen, I almost finished, nut that's. I'll take the first 2 questions, and then Antonio will elaborate on your third question about the margin. So the first question, the philosophical one, I would like to say this that our clients understand fully what does it mea,n, emotion-driven innovation. And I think that when in 1 quarter, our company unveiled 2 products very innovative, one more in the future, one reading the past with the eyes of the future. I think it's a demonstration that, one, we listen to them. Two, we are also able to delight and surprise them.

I was with them at the Cavalcade in Athens when we unveiled the 12Cilindri Manuale as well as I was with them in Rome for the Luce Premiere, and they were literally, can I say, happy, astonished about the ability of our company to put together traditional innovation, but always putting them at the center, but most importantly, their emotion, driving their emotion at the center. So this is about the first philosophical question because the rest, the purchasing power, what you were referring to is a consequence of 2 things: number one, our ability to innovate. Number two, our ability to delight and surprise them.

The second question is about scarcity and exclusivity. '26 is a year where we have a significant changeover model. We have a lot of new models. We have the ramp-up of a very innovative model for which we have a very high degree of personalization. But we always keep one thing in mind, Henning, is scarcity and exclusivity. For us, what is important is that we deliver unique product to our clients. And our North Star is been -- always has been -- it is and will always be scarcity and exclusivity. The third question about the margin, Antonio.

Yes. With respect to that question, I mean, the capital market targets are unchanged as a way they were presented and based on the assumption we outlined at that time. So on that, we are proceeding at pace according to the smooth and linear development that we already outlined since that time.

Now we're going to take our next question. And the question comes from the line of Edouard Aubin from Morgan Stanley.

So first of all, in terms of the mix, so your share of special series was, I think, about 13% in the first half, which is obviously substantially higher than the recent history. What do you have in mind in terms of the second half in terms of the contribution to the percentage of shipment from the special series? So that would be number one. Number two, in terms of the Americas and the U.S., so shipments were down year-over-year quite a bit. And obviously, Antonio, you explained why in terms of the rollout of newness and all of that.

But I think still that was down more than expected by the market. Is there any issue with demand in the U.S.? Or is it really exclusively a supply issue in the U.S. and shipment should normalize pretty soon? So that would be question number two. And then Antonio, question number three, in terms of could you just help us kind of model the impact of FX on EBIT for H2 and your first thoughts about what could be the impact on 2027?

Thank you, Edouard. I'll take the second one. So the reason you are referring to, we don't have, one, no issue of supply chain. Two, we have a significant model changeover as we have been highlighting in the Chart #4, I think. And the other point is that when you have cars with high degree of innovation and high personalization degree, okay, then this is having clearly an impact on the number of cars that you deliver because there are some cars as we have said at the beginning, the personalization content of our car keeps increasing, and this has clearly some effect on what is the number of cars you deliver. So this is the question number 1 and 3, Antonio.

On the mix of special series, it is true that this year, there is a bit more than we were used to. We follow the life cycles of the car. So I don't expect a significant change for the second half. But as I said, it's driven by the product life cycle. Impact of FX for H2 is based on the assumption I just outlined and the fact that in addition to that, we have hedging in place already for approximately 80% of the exposure. On 2027, it is far less covered by hedging and will very much depend on where the spot exchange rate will stay.

And the next question comes from the line of Michael Binetti from Evercore ISI.

Congrats on a great quarter. Really happy to see it and really exciting launches in the quarter, really fun to watch. Just maybe a couple for the model. I think you said last call that ASP would be similar in second to first half, Antonio, but it was up a lot in the second quarter. Would you just help us understand what happened there, how to think about that in the second half? And then on the ASPs, it sounds like you only shipped maybe 30, 40 F80s, at least not many more than what you shipped in the first quarter, but the average price per car that we watch accelerated a lot.

It seems -- especially when we pick down to it and take out the currency, it seems like the average selling price for the fleet, excluding the Supercar, improved quite a bit. That's with the SF90 XX declining as you told us. Could you talk a little bit more about what some of the biggest drivers were of the underlying acceleration in the fleet and maybe connect that to your comment last quarter that profitability would be the same in second half as first half?

Michael, this is a question for Antonio that he is -- he will give you an answer.

Yes, Michael. In terms of the ASP, it is still true that H2 is similar to H1, just maybe slightly better and better than we had previously anticipated, considering the penetration of personalization. That also explains why the ASP for the fleet, excluding the supercar has improved. Actually, we see the trend of personalization improving across the board, better than improving, staying high across the board, even higher than we had expected. As far as the number of the F80 we shipped in the quarter, as you know, we do not go into the details. I just said, really modestly higher compared to Q1.

Is there something about the remaining fleet that's seeing better personalization than prior generation? Maybe just help us click into what's helping...

Yes.

With the personalization.

That's probably a fair assessment.

Okay. And then I didn't hear -- I thought the question came up earlier, but is it still fair to think about units flat for the year? Or is that assumption...

As Benedetto commented before, we don't want to go into that discussion on volumes. We are managing the manufacturing for the year, considering the complex changeover and increased level of personalization and doesn't make a big difference, very honestly.

And the question comes from the line of Michael Tyndall from HSBC.

I'm going to mess the name up here but, Manuale, given the success of that model would it make sense to do similar across the rest of the range or is there a particular reason why it would make sense? And then the second question, and you're probably going to tell me nothing's changed but with your upgraded guidance, you're now talking to us at an 8% growth in EPS. And if I go back to last year, the CAGR was 6% to 2030.

So we are moving above that line. I know Henning has asked this in a different way, but where are we on that roadmap to 2030? I wonder if you could talk about what's going as planned, what's going better, what's going worse, because it certainly feels as if personalization is going better.

The question number one is simple. We don't disclose what we are going to do in the future. We do not even disclose what will happen in the remaining of the year when I said the 2 other model will be embedded. So the Manuale, as you know, we have this limited edition, the 12Cilindri Manuale. We'll discover altogether at a due time what is the future of this important technology. For the second one, for the guidance, Antonio is here ready to go.

Yes. You touched the point. Actually, personalization is doing better than we had assumed for the rest of the plan. And the second element, you should not disregard the assumption with respect to the currency. That helps in terms of the nominal development of the EPS compared to the -- what the CAGR implied in the guidance.

Sorry, just to be clear, currency is better, yes?

Yes. And the last point I should mention is obviously the buyback program that is proceeding at pace and is reducing the number of shares over which you divide the net profit.

And now we are going to take our next question. And the question comes from the line of Jose Asumendi from JPMorgan.

Congrats on the strong quarter. Two questions, Benedetto, can you speak a bit about what is driving the personalization to be a little bit better than maybe initially expected? Some examples from your customers and products. And Antonio, can you give us also maybe some color with regards to second half? How should we think about SG&A and industrial costs?

Thank you, Jose. The personalization, let's say, there are -- I would like to say that the value of the personalization -- the average value of the personalization for the car that we have in the production increased and increased because the option that the client are selecting is higher. So they have been selecting more, let's say, they have been personalizing more the painting, the use of carbon, the use also of rim, the use of special leather. So there are -- there is not a specific item that is driving the increase of personalization content as well as there is not a specific pattern in terms of clients from different geography.

There is a general trend that we have seen of clients that want to personalize more and more of the car. And I think in this sense, it has been -- it's good. What we planned and what we shared with you at Capital Market Day a few months ago when we said we are opening a tailor-made in Tokyo, one in L.A., and we are also expanding the ability for us to make tailor-made in Italy and tailor-made here in Maranello. So that's the personalization, the kind of personalization driving the increase. For H2, SG&A and R&D industrial cost, Antonio has all the numbers.

Yes. Think of SG&A and R&D for the second quarter higher compared to H1. On a number of events we are working on in terms of SG&A and R&D is simply in line with the pace of development of our innovation programs and Formula 1 for next year. The other element you need to take into account is D&A that is going to grow in H2 as it is implied in the guidance for more than EUR 700 million of D&A full year.

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

This is Horst from Bank of America. The first question that I have relates to your -- the comments that you made on your order book because you say you have got now full visibility until end 2027. So I'm interested in any particular trend by model? And if the statement does also refer to the Luce or if that is an average number that you point to? And maybe you can say on which models we have got longer visibility than 2027 maybe.

The second question relates a little bit again to the question about the EBIT margin outlook for H2 that is implied in your full year forecast. I realize you remain tight-lipped on that. You gave some items on R&D and D&A, that's helpful. But can you also maybe comment what the price/mix outlook is and maybe for H2? It seems that this is getting weaker. And maybe you can explain again why that is. I think it has got to do with the regional split and with the product mix development.

Thank you, Horst. The order book, as I said, is covering the full year '27. Just consider one important thing that here in this order book, we don't have yet the numbers of the Manuale because Manuale is something that is -- belongs, let me say, in Q3, and we are working on it. So that's an important point. We are proceeding as planned in all the models, let me say, that we are producing or we will start to produce. I don't want to look like arrogant, but considering what our clients were asking us since a while on the Manuale, we were expecting also for Manuale to have something very robust like it has been the case. So we have -- we are very satisfied because we have -- the things are going as we planned. For the margin EBIT, Antonio here has all the elements on the table.

Just 2 elements. In terms of the mix price variance compared to last year, as I said already in May, this is expected to be not lower, I would say, higher compared to the first half. And the language we used on the margin is not lower than.

Technically, if I calculate your guidance, it means you do 29.7% margin. But I think it's just rounding error, right?

No. I mean it depends. I mean if you take the lower end of the guidance, you're right, but it's just the rounding.

And the question comes from the line of Martino De Ambroggi from Equita.

My focus is on hybrid. The weight of hybrid in the last 3 quarters was in the region of 30%, much lower than in the last couple of years. So my question is, is it just a matter of changeover of model or it's your decision? And should we expect this portion to remain going ahead? And always on hybrid, is there a big difference between the coverage of the backlog between ICE and hybrid?

Thank you, Martino. You understood clearly. It's just a matter of changeover. Consider that there are 2 hybrid models that are out of production, the 296 GT, B and S, and also the SF90 XX. These are 2 hybrids. We are ramping up the others. So it's not related to any choice to slow down one model or another. It's just a matter of model changeover and let me say, personalization decline the client has asked for. So it's -- do not extract any model, any trend in your model.

Okay. And in terms of backlog, it's fully for both...

The backlog is, let's say, it's, let's say, consider that the hybrid we have now that is basically sold out as well is the 296 Speciale. So it's -- you will see how it will change in the future. But just think about this. We have 3 model, sorry, 3 technologies that we will keep offering our clients that is ICE, that is hybrid, and is Luce, the electric traction. So that's what we did, and that's what we said and what we are doing, Martino.

Okay. And on the Luce, I clearly understand you will never disclose the order intake, how it's going and so on. But could you provide us an idea because you mentioned we have orders from both existing clients and new ones. What is the ratio between the 2? And in the previous question, someone asked about the order book covering '27. So also Luce is fully covering what you were expecting?

Look, I would like to say this one. The Luce, we are very much satisfied, as I told also, because we are proceeding as planned. We are receiving order from both from repeaters and new clients. And the very important point is that there is a genuine interest of the people to buy the car. That is very, very important. This is very, very important because the customer understand that for us, Ferrari Luce is like any other Ferrari.

We will take care of the car forever because we have all the capability in-house to take care of this car in-house and forever like it is for the other models. Yes, Martino, we do not disclose the number of any specific model because otherwise, we have to start to disclose the number of any model and the model Excel that you are building, it would be very easy. So we want to leave some blur so you can guess, you can make some questions. Otherwise, we will not get any more question, Martino. So bear with us.

There are always questions.

That's good.

And the next question comes from the line of Tom Narayan from RBC.

Antonio, a question on the '26 guidance. I guess the revenue floor was raised by EUR 100 million, but the EBIT floor was raised by EUR 40 million. I guess I would have thought personalization would have a bigger drop-through to EBIT. I know FX has some hedging, so maybe that didn't drop down as much, but maybe some just commentary on the drop-through of the revenue guide to EBIT.

And then a follow-up on the Americas volumes being down in Q2. And I know you commented on why that happened. But is any of it related to the Middle East situation that may have created some pull-forward from Q2 to Q1? And then lastly, on Luce, a follow-up to the last question. You're satisfied, repeat clients orders coming in, genuine interest. But what about new customers to the Ferrari brand, maybe those that were specific to EV buyers?

I start from the last one, 3 and 2 and the first one is Antonio. So Luce, you got it well. We have a client in this Luce in the order book of Luce that never bought a Ferrari in their life, and they are buying Luce because finally, Ferrari is also able to provide a car that they like to drive. So we have repeaters, and we have clients that -- that's also one of the things that we have been following when looking also for new clients, clients that like electric traction. So this is question number three.

Number two, there has been not any, let's say, pull order between one quarter, between one region and others. The story of Middle East lasted, if you remember well, we told you a couple of weeks. And then thanks to the dealer support and thanks also to our logistic partners, we've been able easily to avoid any problem in, not easily, with a lot of effort, but we have been able to, let me say, in a short time, to find a way to have the car reaching the clients. Because maybe you were not in the previous call, but we also said that it is incredibly high, the number of test drive that our clients, existing and new are doing in the region.

So there is no -- the 2 events are completely uncorrelated. Maybe there is only one thing I told you before is the degree of personalization and the mix of the product that the clients want because the personalization has clearly an impact on the manufacturing time and on the time to realize the cash. For the first one, the guidance '26 and the leverage.

First of all, in terms of margin from personalization, this is absolutely unchanged and in line with the first half. So the entire difference is related to our forecast of cost increase in the second half across the 3 lines of SG&A, R&D and most of all, D&A. And do not forget that we are maintaining the assumption of ranking first in the Formula 1 Championship.

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

I have 2. The first one is on the Manuale. As it is a limited edition, can -- what is the life cycle? So can we model the shipments in 2, 3 years? If you can -- any color could be helpful. And my Excel model will thank you. And another question is on the new customers. Can you share with us some indication on the new customers? My question is, in which country do you see the major growth in terms of new customers?

And are these new customers somewhat different in terms of country for the Amalfi and for the Luce? And ultimately, let's assume that Luce could attract new customers more in China. Would you be willing to increase the weight of shipments in China maybe above the usual levels?

Thank you, Monica. So all the customer -- new client of Luce have 2 eyes, 2 years, 2 hands. Joke aside, there is not a clear pattern of age or geographic pattern. There is, let's say, the interest maybe for the new client, the common factor is that they like to drive electric cars, okay? So to be very specific, when we have been talking and approaching the prospect, a new client, we have been looking at the people that are driving and are very acquainted with electric cars.

But I can also tell you really that when you think about our clients, think about unique people. There is not -- we tried many times also for other model, ICE, whatever. Really, the common factor is the passion they have for our brand, the willingness to have unique driving experience. Now we said also that for this model, we will move ourselves in a FIFO mode where either new client or repeater will have the same priority.

So this comes back to your question, would you increase the penetration depending on the region or we will follow the order intake because for us, it's an opportunity to show once again that we respect. On one side, the people, the client willingness to drive a new kind of car. On the other side is also the level of innovation that we brought in our car. So that's important. Now the story of the life cycle of the Manuale, the first question, I understand that your Excel file would be much easier, but yes, you won't do the call.

Dear participants, thank you very much for all your questions. And now at this moment, I would like to hand over the conference to your speaker, Benedetto Vigna, for any closing remarks.

So thanks to all of you. Thanks for your time today. And I wish you a good morning, good afternoon and also for the people that go on vacation, also have a good relaxing vacation with your beloved ones. And thank you again for your attention and meet you soon in a couple of -- in a few months. Ciao.

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 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.