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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Ferrari unveiling a sleeve of news strategies and financial targets

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Speaker 2: in its capital markets day last week. Now the more

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Speaker 2: cautious than expected outlook it sparked the stock's biggest inter

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Speaker 2: day drop in ninety years, which overshadowed the launch of

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Speaker 2: the luxury automaker's first ever electric vehicle. Pleased to say

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Speaker 2: that we're joined live in studio now by Ferrari CEO

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Speaker 2: Benedetto Vinya. Great to see you in person.

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Speaker 3: Like Wise, good afternoon, So let's.

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Speaker 2: Talk a little bit more about what exactly you said

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Speaker 2: last week. It was the guidance for revenue growth and

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Speaker 2: profit if you map it out to twenty thirty. I

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Speaker 2: believe that that only targets about five percent annual growth.

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Speaker 2: So is that Ferrari being cautious prudently here or do

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Speaker 2: you actually see something troubling ahead when it comes to

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Speaker 2: the luxury market.

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Speaker 4: I think that the plan we shared last week is

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Speaker 4: equen Mbishu says the last one. I think that the

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Speaker 4: three years ago committed to delivers and we delivered it.

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Speaker 4: On our promises, we are committing and we will deliver

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Speaker 4: on our promises.

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Speaker 3: So the confidence over there.

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Speaker 4: We want to address this market, this strategic view with

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Speaker 4: the same greeted determination as we as we did before.

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Speaker 2: So now setting the barlow to then stretch.

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Speaker 3: I don't think.

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Speaker 4: I don't think, I mean one gentleman in the capital market.

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Speaker 4: They asked me if the plan was equally ambitious or not,

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Speaker 4: and I believe this plan is ambitious.

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Speaker 3: Equally ambitious.

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Speaker 5: Michael Dean from Bloomberg Intelligence was there. He said he

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Speaker 5: had a fantastic time, so well done, thank you, But

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Speaker 5: he did say he expected more in terms of free

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Speaker 5: cash flow. You have eight billion euros penciled in over

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Speaker 5: five years. He's looking for nine sharehold returns. You have

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Speaker 5: roughly seven billion euros between split between dividends and buybacks.

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Speaker 5: He said he was disappointed by that as well. Why

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Speaker 5: do you think investors or analysts the street is expecting

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Speaker 5: more from you?

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Speaker 4: Maybe they are expecting they believe that we don't care

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Speaker 4: too much about cashaday. I think for us, as Catcity

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Speaker 4: is important, it is embedded in our business model. We

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Speaker 4: want to make sure that this cashaday is always kept

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Speaker 4: over there. I like to say that this is not

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Speaker 4: one hundred meter sprint this is a marathon, and we

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Speaker 4: have to make sure that we do not alienate our client,

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Speaker 4: because if the client is appy, the investor is app

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Speaker 4: that other way around may not work.

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Speaker 5: I think he's expecting more in terms of margins. He

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Speaker 5: I talk to him all the time, and he says,

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Speaker 5: like the margins on something like the Icona or the

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Speaker 5: F eighty are just jaw dropping. He's looking for more

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Speaker 5: like forty three, forty four, forty five percent. And you

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Speaker 5: did forecast more than forty percent.

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Speaker 4: We said two figs more than forty yea and more

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Speaker 4: than thirty idiot, right, yeah, and I think we did.

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Speaker 4: We did those visibility for six years. I don't know

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Speaker 4: many companies are giving visibility for so long nowadays.

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Speaker 1: Are you going to be selling more of these iconas?

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Speaker 5: These are the special incredibly high ice tag vehicles. I heard,

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Speaker 5: for example, that you can order one with a gated shifter,

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Speaker 5: which got me very excited. Next time I came up

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Speaker 5: at four million dollars, I'll put it in my order.

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Speaker 5: But are you going to sell more of those in

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Speaker 5: the mix along with the F eighty.

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Speaker 4: I think that we have all is to make sure

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Speaker 4: that the Icona, it is super care Limited. There was

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Speaker 4: a clear message, from a clear chart from our CFO

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Speaker 4: that was telling that a number of Iicona supercars will

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Speaker 4: not go more than five percent, and we want to

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Speaker 4: stick to it. I think that to have our client happy,

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Speaker 4: he has to feel that you own something that not

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Speaker 4: only not too many people can have it. And I

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Speaker 4: think this is the business model Ferrari. Scarcity must have

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Speaker 4: been managed well and we ought to take care of

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Speaker 4: the client.

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Speaker 3: This is important.

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Speaker 2: I do want to go back a little bit too

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Speaker 2: last week and the Capital Markets Day, because it was

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Speaker 2: a two parter, right, you unveiled your financial targets, but

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Speaker 2: you also were showcasing the Electrica your first, of course

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Speaker 2: EV and it's the opinion of Bloomberg Intelligence that really

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Speaker 2: was the EV technology that was overshadowed by the financial targets,

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Speaker 2: that those ultimately ended up being the focus. And in hindsight,

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Speaker 2: would you maybe have separated those two announcements.

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Speaker 4: I know this is a feeling of Bloomberg, but I

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Speaker 4: have to say that I had a lot of other

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Speaker 4: comments positive in this direction. They said, it's good that

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Speaker 4: you show to the community that what you said the

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Speaker 4: three years before it was happening, because three years before,

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Speaker 4: we said we want to show you that we are

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Speaker 4: on target. We're going to unveil the Electrica ferrar Electrica, and.

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Speaker 3: We did so.

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Speaker 4: I think that I fully respect this point of view

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Speaker 4: and this consideration, but I think it was important for

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Speaker 4: to reason number one, to show that we were on

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Speaker 4: track and we deliver on our promises. Number two, that

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Speaker 4: we had to show to all the people over there

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Speaker 4: for the Capita maca day, to show the beauty of

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Speaker 4: our new.

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Speaker 2: And to be fair to the Bloomberg newsroom. I mean,

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Speaker 2: the shares did drop by the most since twenty sixteen,

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Speaker 2: so I don't know. Maybe some of the Wall Street

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Speaker 2: analysts shared that view as well. But I do want

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Speaker 2: to talk a little bit more directly about Electric Ferraris

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Speaker 2: because you lowered your targets to twenty percent of the

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Speaker 2: lineup by twenty thirty. Previously it had been forty percent.

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Speaker 2: We'd love to hear a little bit more about that

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Speaker 2: decision to lower the target.

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Speaker 5: I figure that would drive the shares higher. You know,

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Speaker 5: you're making more combustion engines than we expected. That's what

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Speaker 5: we want from a Ferrari.

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Speaker 4: H Matt, But look, I think it's important last time

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Speaker 4: is this time we said something important. This is not

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Speaker 4: a split of ourselves. This is split of our offer

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Speaker 4: because at the end of the story, it's the client.

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Speaker 4: This is going to select if you want to drive Ice,

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Speaker 4: Iybrid or Electrica. So it's up to him or to

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Speaker 4: hers to select the reason why we drop or we reduce,

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Speaker 4: we trim it down. The split of the twenty percent

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Speaker 4: of the offer is because we have seen what is

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Speaker 4: happening around us, so we pushed. The number of model

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Speaker 4: overall has been increased overall and number two in this

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Speaker 4: mix we increased the.

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Speaker 3: Terminal.

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Speaker 5: I see, when are we going to see the body

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Speaker 5: and why? And when are we going to hear it?

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Speaker 5: Because apparently it's going to be amplified in.

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Speaker 4: VI in H one next year we do we keep

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Speaker 4: delivering on our promises phase one, then phase two is

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Speaker 4: going to be let's say, in Q one phase two

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Speaker 4: in Q two we in Q two.

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Speaker 5: Can I talk about something that you probably are sick

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Speaker 5: of hearing it from me?

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Speaker 1: But analog versus digital?

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Speaker 5: Right, you're putting buttons back on the steering wheel in

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Speaker 5: the Amalfi, which I'm very not so that's fantastic. I

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Speaker 5: imagine customers asked for that right, You've still got you know, uh,

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Speaker 5: fields of screens in there. And I've driven a number

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Speaker 5: of very expensive cars where they have screens replacing these

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Speaker 5: elegant and beautiful analog gauges. You know, why don't we

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Speaker 5: go back to clocks that are.

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Speaker 1: An animal with with you know, needles.

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Speaker 5: Wouldn't that be more exciting for a Ferrari buyer.

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Speaker 4: Look, we said clearly that we are a big fun

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Speaker 4: of digital. It means that you use digital way it's needed,

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Speaker 4: in physical where it's needed. I can't tell you that

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Speaker 4: all the time. This year we presented the five cars,

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Speaker 4: the two speech Ale six cylinder, the two Test Rossa

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Speaker 4: Spider and Coop, and the Federal MLFI. When we told

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Speaker 4: our client in the entire world that we are going

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Speaker 4: back to the button where you fill it okay, without touching,

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Speaker 4: without looking, because when you drive you need to look

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Speaker 4: at the road, Well, that was a big, big approase

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Speaker 4: we had. So we will use digital where it's needed,

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Speaker 4: in physical where it's needed.

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Speaker 5: Can I just ask about the shifters? Because I spend

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Speaker 5: so much time on bring a trailer. I'm looking at

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Speaker 5: three sixties, I'm looking at four thirties, you know, sometimes

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Speaker 5: five seventy fives and six twelves. And I noticed that

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Speaker 5: the premium for a manual is massive, fifty sixty seventy percent,

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Speaker 5: sometimes even double for the manual.

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Speaker 1: Car versus the autobox.

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Speaker 5: So doesn't that mean customers want to buy that new two?

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Speaker 4: Look, you have to listen to client for something for

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Speaker 4: something else, don't you cannot listen for something else?

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Speaker 3: Maybe some good in for the future.

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Speaker 2: So maybe in the future you can just make a

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Speaker 2: suggestion box and Mac can put his comments directly on

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Speaker 2: their book.

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Speaker 3: Used to come to see us? There you go before

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Speaker 3: really ago, I do.

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Speaker 2: Want to talk a little bit about China because you

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Speaker 2: take a look at some of your peers in Porsche, BMW,

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Speaker 2: Mercedes on a slightly different price point there, but they're

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Speaker 2: rapidly losing market share when it comes to China, and

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Speaker 2: I wonder you know, when you look at that, are

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Speaker 2: you confident that you're going to be able to buck

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Speaker 2: the trend there?

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Speaker 4: Since the beginning, since I joined the company, we said

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Speaker 4: that for us, China is I mean Maline China, Taiwani

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Speaker 4: onng Kong will be bebow ten percent.

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Speaker 3: That's what we said.

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Speaker 4: Recently, I think that last year Ferrari did not have

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Speaker 4: an offer that was fitting well the Chinese market because

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Speaker 4: we were having Aditor cylinders and we had a Roba

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Speaker 4: Spider with softat is not so welcome.

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Speaker 3: And now we are going to change. We are rich.

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Speaker 4: Let me see, the offer for the for China Electrica

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Speaker 4: could be also a good interesting car for them, because

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Speaker 4: you will not have all the taxes that you have

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Speaker 4: on IC Well.

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Speaker 5: It could be a product that they embrace, maybe more

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Speaker 5: than other parts.

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Speaker 1: It's great having you here. Thank you so much for

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Speaker 1: joining us.

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Speaker 3: Thank you.

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Speaker 1: Benedetto Vinya, the CEO of Ferrari