Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Ferrari unveiling a sleeve of news strategies and financial targets
Speaker 2: in its capital markets day last week. Now the more
Speaker 2: cautious than expected outlook it sparked the stock's biggest inter
Speaker 2: day drop in ninety years, which overshadowed the launch of
Speaker 2: the luxury automaker's first ever electric vehicle. Pleased to say
Speaker 2: that we're joined live in studio now by Ferrari CEO
Speaker 2: Benedetto Vinya. Great to see you in person.
Speaker 3: Like Wise, good afternoon, So let's.
Speaker 2: Talk a little bit more about what exactly you said
Speaker 2: last week. It was the guidance for revenue growth and
Speaker 2: profit if you map it out to twenty thirty. I
Speaker 2: believe that that only targets about five percent annual growth.
Speaker 2: So is that Ferrari being cautious prudently here or do
Speaker 2: you actually see something troubling ahead when it comes to
Speaker 2: the luxury market.
Speaker 4: I think that the plan we shared last week is
Speaker 4: equen Mbishu says the last one. I think that the
Speaker 4: three years ago committed to delivers and we delivered it.
Speaker 4: On our promises, we are committing and we will deliver
Speaker 4: on our promises.
Speaker 3: So the confidence over there.
Speaker 4: We want to address this market, this strategic view with
Speaker 4: the same greeted determination as we as we did before.
Speaker 2: So now setting the barlow to then stretch.
Speaker 3: I don't think.
Speaker 4: I don't think, I mean one gentleman in the capital market.
Speaker 4: They asked me if the plan was equally ambitious or not,
Speaker 4: and I believe this plan is ambitious.
Speaker 3: Equally ambitious.
Speaker 5: Michael Dean from Bloomberg Intelligence was there. He said he
Speaker 5: had a fantastic time, so well done, thank you, But
Speaker 5: he did say he expected more in terms of free
Speaker 5: cash flow. You have eight billion euros penciled in over
Speaker 5: five years. He's looking for nine sharehold returns. You have
Speaker 5: roughly seven billion euros between split between dividends and buybacks.
Speaker 5: He said he was disappointed by that as well. Why
Speaker 5: do you think investors or analysts the street is expecting
Speaker 5: more from you?
Speaker 4: Maybe they are expecting they believe that we don't care
Speaker 4: too much about cashaday. I think for us, as Catcity
Speaker 4: is important, it is embedded in our business model. We
Speaker 4: want to make sure that this cashaday is always kept
Speaker 4: over there. I like to say that this is not
Speaker 4: one hundred meter sprint this is a marathon, and we
Speaker 4: have to make sure that we do not alienate our client,
Speaker 4: because if the client is appy, the investor is app
Speaker 4: that other way around may not work.
Speaker 5: I think he's expecting more in terms of margins. He
Speaker 5: I talk to him all the time, and he says,
Speaker 5: like the margins on something like the Icona or the
Speaker 5: F eighty are just jaw dropping. He's looking for more
Speaker 5: like forty three, forty four, forty five percent. And you
Speaker 5: did forecast more than forty percent.
Speaker 4: We said two figs more than forty yea and more
Speaker 4: than thirty idiot, right, yeah, and I think we did.
Speaker 4: We did those visibility for six years. I don't know
Speaker 4: many companies are giving visibility for so long nowadays.
Speaker 1: Are you going to be selling more of these iconas?
Speaker 5: These are the special incredibly high ice tag vehicles. I heard,
Speaker 5: for example, that you can order one with a gated shifter,
Speaker 5: which got me very excited. Next time I came up
Speaker 5: at four million dollars, I'll put it in my order.
Speaker 5: But are you going to sell more of those in
Speaker 5: the mix along with the F eighty.
Speaker 4: I think that we have all is to make sure
Speaker 4: that the Icona, it is super care Limited. There was
Speaker 4: a clear message, from a clear chart from our CFO
Speaker 4: that was telling that a number of Iicona supercars will
Speaker 4: not go more than five percent, and we want to
Speaker 4: stick to it. I think that to have our client happy,
Speaker 4: he has to feel that you own something that not
Speaker 4: only not too many people can have it. And I
Speaker 4: think this is the business model Ferrari. Scarcity must have
Speaker 4: been managed well and we ought to take care of
Speaker 4: the client.
Speaker 3: This is important.
Speaker 2: I do want to go back a little bit too
Speaker 2: last week and the Capital Markets Day, because it was
Speaker 2: a two parter, right, you unveiled your financial targets, but
Speaker 2: you also were showcasing the Electrica your first, of course
Speaker 2: EV and it's the opinion of Bloomberg Intelligence that really
Speaker 2: was the EV technology that was overshadowed by the financial targets,
Speaker 2: that those ultimately ended up being the focus. And in hindsight,
Speaker 2: would you maybe have separated those two announcements.
Speaker 4: I know this is a feeling of Bloomberg, but I
Speaker 4: have to say that I had a lot of other
Speaker 4: comments positive in this direction. They said, it's good that
Speaker 4: you show to the community that what you said the
Speaker 4: three years before it was happening, because three years before,
Speaker 4: we said we want to show you that we are
Speaker 4: on target. We're going to unveil the Electrica ferrar Electrica, and.
Speaker 3: We did so.
Speaker 4: I think that I fully respect this point of view
Speaker 4: and this consideration, but I think it was important for
Speaker 4: to reason number one, to show that we were on
Speaker 4: track and we deliver on our promises. Number two, that
Speaker 4: we had to show to all the people over there
Speaker 4: for the Capita maca day, to show the beauty of
Speaker 4: our new.
Speaker 2: And to be fair to the Bloomberg newsroom. I mean,
Speaker 2: the shares did drop by the most since twenty sixteen,
Speaker 2: so I don't know. Maybe some of the Wall Street
Speaker 2: analysts shared that view as well. But I do want
Speaker 2: to talk a little bit more directly about Electric Ferraris
Speaker 2: because you lowered your targets to twenty percent of the
Speaker 2: lineup by twenty thirty. Previously it had been forty percent.
Speaker 2: We'd love to hear a little bit more about that
Speaker 2: decision to lower the target.
Speaker 5: I figure that would drive the shares higher. You know,
Speaker 5: you're making more combustion engines than we expected. That's what
Speaker 5: we want from a Ferrari.
Speaker 4: H Matt, But look, I think it's important last time
Speaker 4: is this time we said something important. This is not
Speaker 4: a split of ourselves. This is split of our offer
Speaker 4: because at the end of the story, it's the client.
Speaker 4: This is going to select if you want to drive Ice,
Speaker 4: Iybrid or Electrica. So it's up to him or to
Speaker 4: hers to select the reason why we drop or we reduce,
Speaker 4: we trim it down. The split of the twenty percent
Speaker 4: of the offer is because we have seen what is
Speaker 4: happening around us, so we pushed. The number of model
Speaker 4: overall has been increased overall and number two in this
Speaker 4: mix we increased the.
Speaker 3: Terminal.
Speaker 5: I see, when are we going to see the body
Speaker 5: and why? And when are we going to hear it?
Speaker 5: Because apparently it's going to be amplified in.
Speaker 4: VI in H one next year we do we keep
Speaker 4: delivering on our promises phase one, then phase two is
Speaker 4: going to be let's say, in Q one phase two
Speaker 4: in Q two we in Q two.
Speaker 5: Can I talk about something that you probably are sick
Speaker 5: of hearing it from me?
Speaker 1: But analog versus digital?
Speaker 5: Right, you're putting buttons back on the steering wheel in
Speaker 5: the Amalfi, which I'm very not so that's fantastic. I
Speaker 5: imagine customers asked for that right, You've still got you know, uh,
Speaker 5: fields of screens in there. And I've driven a number
Speaker 5: of very expensive cars where they have screens replacing these
Speaker 5: elegant and beautiful analog gauges. You know, why don't we
Speaker 5: go back to clocks that are.
Speaker 1: An animal with with you know, needles.
Speaker 5: Wouldn't that be more exciting for a Ferrari buyer.
Speaker 4: Look, we said clearly that we are a big fun
Speaker 4: of digital. It means that you use digital way it's needed,
Speaker 4: in physical where it's needed. I can't tell you that
Speaker 4: all the time. This year we presented the five cars,
Speaker 4: the two speech Ale six cylinder, the two Test Rossa
Speaker 4: Spider and Coop, and the Federal MLFI. When we told
Speaker 4: our client in the entire world that we are going
Speaker 4: back to the button where you fill it okay, without touching,
Speaker 4: without looking, because when you drive you need to look
Speaker 4: at the road, Well, that was a big, big approase
Speaker 4: we had. So we will use digital where it's needed,
Speaker 4: in physical where it's needed.
Speaker 5: Can I just ask about the shifters? Because I spend
Speaker 5: so much time on bring a trailer. I'm looking at
Speaker 5: three sixties, I'm looking at four thirties, you know, sometimes
Speaker 5: five seventy fives and six twelves. And I noticed that
Speaker 5: the premium for a manual is massive, fifty sixty seventy percent,
Speaker 5: sometimes even double for the manual.
Speaker 1: Car versus the autobox.
Speaker 5: So doesn't that mean customers want to buy that new two?
Speaker 4: Look, you have to listen to client for something for
Speaker 4: something else, don't you cannot listen for something else?
Speaker 3: Maybe some good in for the future.
Speaker 2: So maybe in the future you can just make a
Speaker 2: suggestion box and Mac can put his comments directly on
Speaker 2: their book.
Speaker 3: Used to come to see us? There you go before
Speaker 3: really ago, I do.
Speaker 2: Want to talk a little bit about China because you
Speaker 2: take a look at some of your peers in Porsche, BMW,
Speaker 2: Mercedes on a slightly different price point there, but they're
Speaker 2: rapidly losing market share when it comes to China, and
Speaker 2: I wonder you know, when you look at that, are
Speaker 2: you confident that you're going to be able to buck
Speaker 2: the trend there?
Speaker 4: Since the beginning, since I joined the company, we said
Speaker 4: that for us, China is I mean Maline China, Taiwani
Speaker 4: onng Kong will be bebow ten percent.
Speaker 3: That's what we said.
Speaker 4: Recently, I think that last year Ferrari did not have
Speaker 4: an offer that was fitting well the Chinese market because
Speaker 4: we were having Aditor cylinders and we had a Roba
Speaker 4: Spider with softat is not so welcome.
Speaker 3: And now we are going to change. We are rich.
Speaker 4: Let me see, the offer for the for China Electrica
Speaker 4: could be also a good interesting car for them, because
Speaker 4: you will not have all the taxes that you have
Speaker 4: on IC Well.
Speaker 5: It could be a product that they embrace, maybe more
Speaker 5: than other parts.
Speaker 1: It's great having you here. Thank you so much for
Speaker 1: joining us.
Speaker 3: Thank you.
Speaker 1: Benedetto Vinya, the CEO of Ferrari