Ferrari CEO Benedetto Vigna on Ambitious Financial Targets and the First Electric Ferrari

Ambitious Financial Targets and Market Reception

• 🎯 Ferrari's latest capital markets day presented ambitious financial targets for revenue growth and profit, aiming for approximately 5% annual growth through 2030.
• ⚠️ Despite the ambitious plan, the stock experienced its biggest intraday drop in 9 years, partly due to a more cautious-than-expected outlook on free cash flow and shareholder returns.
• 🚗 CEO Benedetto Vigna emphasized that Ferrari's business model prioritizes scarcity and client satisfaction, stating that if the client is happy, the investor will be happy.
• 📈 The company forecasts margins above 40% for EBT and above 30% for EBITDA, with a 6-year visibility, which Vigna highlighted as a significant commitment.

Strategy for Special and Electric Vehicles

• 💎 Special high-price tag vehicles like the Icona and F80 will remain limited, with the CFO indicating that Icona supercars will not exceed 5% of the mix to maintain exclusivity.
• ⚡ Ferrari's first all-electric vehicle, the Elettrica, is set to reach showrooms by the end of next year, with its technology overshadowed by financial targets during the announcement.
• 📉 The target for electric vehicles in the lineup was reduced to 20% by 2030 from a previous 40%, a decision Vigna explained as a response to market dynamics and an increase in overall models offered, including internal combustion engines.
• 🗣️ Vigna clarified that the sales split reflects the client's choice between internal combustion, hybrid, or electric powertrains, not a mandated company strategy.

Customer Focus and Future Offerings

• 🔘 Ferrari is reintroducing physical buttons on steering wheels across all models, including the Amalfi, to enhance the driving experience, balancing digital needs with physical controls.
• 🎧 The sound of the electric Ferrari is expected to be an amplified moment, with the body in white to be revealed within H1 next year and phase two of development in Q1/Q2.
• 🇨🇳 For the Chinese market, Ferrari plans to enrich its offer, potentially including electric vehicles which may benefit from fewer taxes compared to internal combustion engines, aiming to better fit the market's preferences.
• 🕹️ The significant premium for manual transmission cars in the used market suggests customer demand, though Vigna indicated that not all customer desires can be immediately met, leaving room for future considerations.