Some light reading for you folks - Ferrari 2015 Financial Results


I've decided to post this 2015 Ferrari Financial Results for you folks. It looks like very good reading especially when you need something to read just before going to bed. This is the nitty gritty details of a car company. Underneath all that glamour and red paint, there are numbers. Lots of numbers. So many numbers. Hello, wake up!


This is why Mathematics is very important as is mastering English. Note that this financial report is written in English for everyone to see and understand. The company's disclosure to the world is in English and not in Italian.  If you want to go global, you share in English. Like if you want to go global you have to at least understand English and not only Bahasa. 

Anyway, Ferrari made money last year. They sold 7,664 units of which their cheapest car costs over 100,000Euros without including local taxes. One of the world's most famous luxury car maker made a net profit of Euro 290 million, up 9% from 2014. The company has predicted moving about 7,900 cars in 2016. Imagine that.

PRESS RELEASE 

Best ever results: FY 2015

  • Total shipments reached 7,664 units, up 6%
  • Net revenues grew 3% (-3% at constant currencies) to Euro 2,854 million
  • Adjusted EBIT[1] of Euro 473 million, 200bps margin increase
  • Net profit amounted to Euro 290 million, +9%
  • Net Debt of Euro 1,938 million as of December 31, 2015
  • Distribution of Euro 0.46 per common share[2]
For the three months ended December 31,
(In Euro million unless otherwise stated)
For the twelve months ended December 31,
2015
2014
Change
2015
2014
Change

2,021
1,975
46
Shipments (in units)
7,664
7,255
409

744
751
(7)
Net revenues
2,854
2,762
92

85
115
(30)
EBIT
444
389
55

109
115
(6)
Adjusted EBIT1
473
404
69

157
193
(36)
EBITDA1
719
678
41

181
193
(12)
Adjusted EBITDA1
748
693
55

55
79
(24)
Net profit
290
265
25

0.28
0.41
(0.13)
Earnings per share (in Euro )
1.52
1.38
0.14


(Euro million)
Dec. 31,
2015
Dec. 31, 2014

Change
Net Cash/(Net Debt)1
(1,938)
566
n.m.

Maranello (Italy), February 2, 2016 - Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated net revenues and preliminary results[3] for the fourth quarter and twelve months ended December 31, 2015. 

Shipments totaled 7,664 units in 2015, up 6% from the previous year. This performance was driven by a 17% increase in sales of our 8 cylinder models (V8), led by California T, 458 Speciale A and the newly launched 488 GTB. Shipments of the 12 cylinder models (V12) were down 24% as the F12berlinetta and the FF are respectively in their 4th and 5th year of commercialization, and the F12tdf shipments started in December 2015.
EMEA4, Americas4 and Rest of APAC[4] experienced sound year-on-year growth of 2%, 7% and 26% respectively. Greater China4 contracted by 10% year-on-year, but showed a +7% upturn for the three months ended December 31, 2015, thanks to the introduction of the 488 GTB.

Net revenues for FY 2015 were Euro 2,854 million, an increase of Euro 92 million or 3% (-3% at constant currencies) from FY 2014. Higher net revenues in Cars and spare parts[5] (Euro 136 million, +7%) were partially offset by a decrease in Engines[6] (Euro 92 million, -30%).

Adjusted EBIT1 was Euro 473 million, up Euro 69 million (+17%) from FY 2014. This was the effect of higher volumes for the California T, 458 Speciale A, the newly launched 488 GTB and a positive margin contribution from our personalization programs. The increase was also supported by a positive foreign exchange contribution of Euro 41 million, mainly due to U.S. dollar and Great Britain pound appreciation and partially offset by Japanese yen. The mix effect had a slightly negative contribution of Euro 6 million due to the higher proportion of V8 versus V12 in FY 2015 compared to FY 2014. Selling, general and administrative costs[7] grew by Euro 15 million due to our continued focus on directly operated retail stores, corporate costs and F1 racing activities. Research and development costs and industrial costs increased by Euro 3 million attributable to the 2016 development of the power unit for F1 racing activity partially offset by a lower R&D on road cars (primarily R&D and product D&A of 458 family) and efficiencies on production costs.

As a result of the items described above, net profit for FY 2015 was Euro 290 million, up Euro 25 million (+9%).  

Free Cash Flow1 for the twelve months ended December 31, 2015 was Euro 390 million, primarily driven by a strong increase in cash from operating activities. Free Cash Flow1 included the following one-time cash inflows: the sale of investment properties; the reimbursement of the financing of inventory related to the establishment of the Maserati standalone business in China; and the sale of the financial assets portfolios of certain Financial Services Companies (FFS S.p.A. and FFS KK) in connection with the additional steps taken to maximize the effects of our cooperation agreements in Europe and in Japan; partially offset by the one-time extra bonus payment in December to all Ferrari employees.

Net Debt1 at December 31, 2015 was Euro 1,938 million, compared to a Net Cash1 position of Euro 566 million at December 31, 2014. This was a result of the capital reorganization in connection with our IPO and the spin-off from Fiat Chrysler Automobiles N.V. (FCA), partially offset by the strong Free Cash Flow1generation.

2016 Outlook
The Group indicates the following guidance for 2016, assuming FX consistent with current market conditions:
·         Shipments: ˜7,900 including supercars              
·         Net revenues: >Euro 2.9 billion
·         Adjusted EBITDA: >Euro 770 million
·         Net Debt: 2

Distribution proposal
Subject to the approval of the 2015 annual accounts and review of other relevant financial statements by the Board of Directors of the Company, the Board of Directors of the Company intends to resolve to make a distribution to the holders of common shares of Euro 0.46 per common share, corresponding to a total distribution to shareholders of approximately Euro 87 million.

Subsequent Events
On January 3rd, 2016 the Company completed the announced separation of the Ferrari business from FCA which was previously its largest shareholder.Following Ferrari’s debut on the New York Stock Exchange (NYSE) on October 21st, 2015, on January 4th, 2016 the Company also completed the listing of its common shares on the Milan Stock Exchange (MTA) under the ticker symbol RACE.
On January 19th, 2016 Ferrari Financial Services Inc. completed its first securitization program of retail financial receivables in the U.S. with total proceeds of approximately US$246 million.

Shipments
For the three months ended December 31,
Shipments4 (units)
For the twelve months ended December 31,

2015
2014
Change
2015
2014
Change
938
780
158
EMEA
3,351
3,274
77
671
740
(69)
Americas
2,640
2,462
178
192
179
13
Greater China
610
675
(65)
220
276
(56)
Rest of APAC
1,063
844
219
2,021
1,975
46
Total shipments
7,664
7,255
409

Total net revenues
For the three months ended December 31,
(Euro million)
For the twelve months ended December 31,

2015
2014
Change
2015
2014
Change
535
532
3
Cars and spare parts5
2,080
1,944
136
47
83
(36)
Engines6
219
311
(92)
119
108
11
Sponsorship, commercial and brand[8]
441
417
24
43
28
15
Other[9]
114
90
24
744
751
(7)
Total net revenues
2,854
2,762
92



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