31 Jan 2019 - 11:00Corporate and Financial

Another year of sustained growth

All 2018 targets met or exceeded. Building our future product range

  • Total shipments of 9,251 units, up +10.2%
  • Net revenues of Euro 3,420 million, up +0.1% or +3.2% at constant currency(1)
  • Adj. EBITDA(2) of Euro 1,114 million, up 7.5% or +16.8% at constant currency(1)
  • Adj. diluted EPS(2) of Euro 3.40 (+20.6%)
  • Industrial free cash flow(2) generation of Euro 405 million, including the positive cash impact from the Patent Box benefit for 2015-2017
  • Net industrial debt(2) at Euro 340 million (Euro 240 million excluding share repurchases)
2019 Guidance

The Group targets the following performance in 2019:

  • Net revenues: > Euro 3.5 billion, over 3% growth versus 2018
  • Adj. EBITDA: Euro 1.2-1.25 billion, approx. 10% growth versus 2018
  • Adj. EBIT: Euro 0.85-0.9 billion, approx. 6% growth versus 2018
  • Adj. diluted EPS(3): Euro 3.50-3.70 per share, approx. 6% growth versus 2018
  • Industrial free cash flow: ~ Euro 0.45 billion, over 10% growth versus 2018

Maranello (Italy), January 31, 2019 – Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results(4) for the fourth quarter and twelve months ended December 31, 2018.



Shipments totaled 9,251 units in 2018, up 853 units or +10.2% vs. prior year. This achievement was driven by a 19.6% increase in sales of our 12 cylinder models (V12), while the 8 cylinder models (V8) grew by 7.3%. The V12 performance was mainly led by the 812 Superfast, partially offset by lower sales of LaFerrari Aperta that finished its limited series run. V8 performance was led by the ramp up of the Ferrari Portofino as well as the newly launched special series 488 Pista.

Growth in shipments occurred across all regions: EMEA(5) grew 13.1%, Americas(5) increased by 6.7%, China, Hong Kong and Taiwan(5), were up 12.6% and Rest of APAC(5) was up 7.8%.

Total net revenues


Net revenues for 2018 increased by a few million to Euro 3,420 million, up 0.1% at current currency and up 3.2% at constant currency(1). Revenues in Cars and spare parts(6) (Euro 2,535 million, +3.2% at current currency or +6.9% at constant currency(1)) were supported by higher volumes led by the 812 Superfast, as well as the ramp up of the Ferrari Portofino and the 488 Pista. Additionally, pricing and personalization programs positively contributed along with deliveries of the Ferrari J50 and first deliveries of the FXX K EVO, which was partially offset by lower sales of LaFerrari Aperta. The erosion in Engines(7) revenues (Euro 284 million, -23.8% at current and constant currency(1)) reflected lower shipments to Maserati. Sponsorship, commercial and brand(8) revenues (Euro 506 million, +2.4% at current currency or +5.3% at constant currency(1)) were up thanks to stronger revenues from sponsorship as well as a higher 2017 championship ranking compared to 2016, partially offset by lower sales generated by other brand related activities. Currency, including translation and transaction impacts as well as foreign currency hedges, had a negative impact of Euro 105 million (mainly USD, GBP and JPY).

Adjusted EBITDA(2) and Adjusted EBIT(2)


2018 Adjusted EBIT(2) was Euro 825 million, +6.4% at current currency or +19.0% at constant currency(1). This was a result of higher volumes (Euro 118 million) along with positive contribution from personalization programs. Mix / price was negative (Euro 17 million) due to the combined impact of lower sales of LaFerrari Aperta and the strong increase of the Ferrari Portofino. This was partially offset by the solid performance of the 812 Superfast as well as pricing and deliveries of Ferrari J50 and FXX K EVO. Industrial costs / research and development costs slightly decreased (Euro 8 million), mainly due to lower spending in F1 activities. SG&A was mostly in line with prior year. Other increased (Euro 36 million) thanks to stronger revenues from sponsorship, higher 2017 championship ranking compared to 2016, as well as a final favorable ruling on a prior year’s legal dispute as announced in Q1 2018. This was partially offset by a lower contribution from other brand related activities and engines supplied to Maserati.

The tax rate was significantly reduced as a result of the advance agreement on Patent Box signed on September 11, 2018 with the Italian Revenue Agency, including a Euro 141 million benefit for the three-year period 2015-2017 recognized in the third quarter, as well as that for 2018.

As a result of the items described above, diluted earnings per share reached Euro 4.14, up 46.8% vs. prior year. Adjusted diluted earnings per share(2), excluding mainly the abovementioned 2015-2017 Patent Box benefit, was Euro 3.40, up 20.6% vs. prior year.

Industrial free cash flow(2) for the twelve months ended December 31, 2018 was Euro 405 million, driven by strong adjusted EBITDA(2), partially offset by capex spending of Euro 637 million to support the evolution and hybridization of our product range. Industrial free cash flow(2) includes the positive cash impact from the Patent Box benefit for 2015-2017.

Net industrial debt(2) at December 31, 2018 – after Euro 100 million of share repurchases – was Euro 340 million, (-28.0%) versus a level of Euro 473 million at December 31, 2017.

2019 Guidance

The Group targets the following performance in 2019:


2018 highlights

488 Pista: on February 21, 2018, the Group announced that it had selected the 88th edition of the Geneva International Motor Show for the world premiere of the 488 Pista, the Group’s successor to Ferrari’s V8-engined special series. The 488 Pista marks a significant step forward from the previous special series in terms of both performance dynamics and for the level of technological carryover from racing.

The 3.9-litre V8 takes the “International Engine of the Year Award”: on June 5, 2018, the latest iteration of Ferrari’s turbo-charged V8 that equips, in various forms, all Ferrari’s V8-engined cars, received the award for the best engine in the world for the third year running in the 2018 International Engine of the Year Awards. Additionally Ferrari’s turbo-charged V8 was voted the best engine of the last 20 years.

Ferrari takes the “Red Dot: Best of the Best” design award: On July 10, 2018, for the fourth year running, Ferrari received the “Red Dot: Best of the Best” award for the ground-breaking design of the newly launched Ferrari Portofino. The jury of international designers also assigned two Red Dot awards to Ferrari for outstanding design quality to Ferrari on the 812 Superfast and the FXX K EVO.

488 Pista Spider: on August 25, 2018, the Ferrari 488 Pista Spider was unveiled during the Concours d’Elegance at Pebble Beach. The 50th open-top model produced by the Prancing Horse is the company's highest ever performing Ferrari spider, with a record power-to-weight ratio of 1.92 kg/hp.

It combines the finest race-developed technological solutions with the joy of en plein air driving to deliver an exhilarating experience behind the wheel.

The model’s engine, dynamics and aerodynamics are derived from two track cars: the 488 Challenge and the 488 GTE. The latter won the GT class of the FIA World Endurance Championship in 2017, thus giving Ferrari a total of five GT Manufacturers’ titles since the championship’s inception in 2012. Furthermore, this model has very clearly benefited from the extensive development work done to produce the coupé version, the 488 Pista.

Ferrari Monza SP1 and SP2: on September 17, 2018 the Ferrari Monza SP1, together with the Monza SP2 were unveiled on the eve of the Capital Markets Day. They are the first in a new concept, known as ‘Icona’ (Icon), that taps into a leitmotif of the most evocative cars in the company’s illustrious and unique history to create a new segment of special limited series cars for clients and collectors. The intention is to use a contemporary aesthetic to reinterpret a timeless style, with technologically advanced components and the highest performance possible through continuous innovation.

Capital Markets Day: on September 18, 2018, Management outlined the plans and initiatives to achieve its key financial targets and its financial policy to 2022, including a dividend payout ratio increase to 30%, along with a share repurchase program of Euro 1.5 billion to be executed over the 2019-2022 period in relation to the growth of our industrial free cash flow.

First tranche of the multi-year (2019-2022) share repurchase program of Euro 1.5 billion: after completing a Euro 100 million repurchase program in 2018, on December 28, 2018 Ferrari announced its intention to commence a Euro 150 million share repurchase program to be completed by June 27, 2019, as the first tranche of a multi-year Euro 1.5 billion total share repurchase program expected to be executed by 2022 in line with the disclosure made during the 2018 Capital Markets Day.

On January 28, 2019, the Company announced to have repurchased 218,198 common shares for a total invested consideration of approx. Euro 21 million.

Non-GAAP financial measures

Operations are monitored through the use of various non-GAAP financial measures that may not be comparable to other similarly titled measures of other companies.

Accordingly, investors and analysts should exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial measures reported by other companies.

We believe that these supplemental financial measures provide comparable measures of financial performance which then facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions.

Certain totals in the tables included in this document may not add due to rounding.

Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges.


EBITDA is defined as net profit before income tax expense, net financial expenses and depreciation and amortization.

Adjusted EBITDA is defined as EBITDA as adjusted for income and costs, which are significant in nature, but expected to occur infrequently.


Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as adjusted for income and costs, which are significant in nature, but expected to occur infrequently.


Adjusted net profit represents net profit as adjusted for income and costs, which are significant in nature, but expected to occur infrequently.


Basic and diluted EPS


Net Industrial Debt, defined as total Net Debt excluding the funded portion of the self-liquidating financial receivables portfolio, is the primary measure to analyze our financial leverage and capital structure, and is one of the key indicators used to measure our financial position.


Free Cash Flow and Free Cash Flow from Industrial Activities are two of management’s primary key performance indicators to measure the Group’s performance. Free Cash Flow is defined as net cash generated from operations less cash flows used in investing activities. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted for the change in the self-liquidating financial receivables portfolio.


On January 31, 2019, at 3.30 p.m. CET, management will hold a conference call to present the FY 2018 to financial analysts and institutional investors. The call can be followed live and a recording will subsequently be available on the Group website http://corporate.ferrari.com/en/investors. The supporting document will be made available on the website prior the call.

(1)The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges
(2)Refer to specific note on non-GAAP financial measures
(3)Calculated using the weighted average diluted number of shares for 2018
(4)These results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and IFRS as endorsed by the European Union
(5)EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separately identified); Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand and Malaysia
(6)Includes the net revenues generated from shipments of our cars, including any personalization revenue generated on these cars and sales of spare parts
(7)Includes the net revenues generated from the sale of engines to Maserati and the revenues generated from the rental of engines to other Formula 1 racing teams
(8)Includes the net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated through the Ferrari brand, including merchandising, licensing and royalty income
(9)Primarily includes interest income generated by our financial services activities and net revenues from the management of the Mugello racetrack
(10)Cash flow used in investing activities for the twelve months ended December 31, 2017 excludes proceeds from exercising the Delta Topco option of Euro 8 million.
(11)Free cash flow from industrial activities for the three and twelve months ended December 31, 2018 includes Euro 1 million of quick refund to shareholders due to eligibility for withholding exemption.