Thank you, Sandra, and welcome to everyone who is joining us. Today, we plan to cover the group's Q1 2024 operating results and the duration of the call is expected to be around 60 minutes. Today's call will be hosted by the group CEO, Mr. Benedetto Vigna, and Group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the Investors section of the Ferrari corporate website. And at the end of the presentation, we will be available to answer your questions. Before we begin, let me remind you that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the safe harbor statement included on Page 2 of today's presentation, and the call will be governed by this language. With that said, I'd like to turn the call over to Benedetto.

Grazie, Nicoletta, and thank you, everyone, for joining us today. I just came back from Miami, where I spent 1 week together with our clients, the fans, the sponsors, including HP, our new title sponsor and all brand enthusiasts. You should have been there with me and all Ferrari colleagues. You would have been experiencing the brand power of the Prancing Horse. Indeed, for the first time in our history, the three souls of our company: racing, sports cars and lifestyles have been working in unison together to provide all the people in Miami a truly unique experience. But before sharing with you more details about this fantastic event, I would like to thank our Ferrari colleagues for their outstanding work and dedication; our clients for their loyalty to our brand; and all our partners, suppliers, dealers and sponsors. Without their tireless effort and dedication, the strong result we present today would not have been possible. So let's start with the financial results of the first quarter. We can say that it is a strong start to the year with double-digit growth on key metrics, thanks to an even more robust product mix and a strong trend in personalization. Three are the key highlights. One, total revenues reached approximately EUR 1.6 billion, with flat deliveries. This once again pays testament to our strategy of value over volume. Two, we enjoyed a strong profitability with EBITDA at EUR 605 million. And three, industrial free cash flow generation reached more than EUR 320 million in the quarter. The order book on our current models continues to be very strong with a normalization in line with our expectation, with almost all models substantially sold out. And in the last week, we opened the order book for the 12Cilindri, Coupe and Spider. For the first time, for our range models, we unveiled the Coupe and the Spider together because we want to leave the freedom of selection to our clients. The first feedback from our two new models has been extremely positive. Several clients have said, 'It's not a matter of either or, we love both.' I talk to clients from all over the world, from China, from Korea, from the U.S., from Europe; they were all astonished by both models. Our new 12Cilindri are amazingly beautiful and high performance. They are the perfect blend of tradition and innovation, elegance and sportiness. Our clients' opinions are obviously paramount, but I am also proud to say that the Roma Spider has been recognized with the Red Dot Awards, Best of the Best in the Product Design Category. All these are truly innovative vehicles enabled by our R&D innovation. And in fact, in 2023, just in Italy, we submitted 181 patent applications, one every 2 days. And always on the subject of innovation, last month, we inaugurated the E-Cells Lab in collaboration with the University of Bologna and NXP Semiconductor. This laboratory will make a significant contribution to research in electrochemistry and the project reflects the importance of collaboration between the academic and the business worlds. But there is much more in it; this lab will foster innovation in our local area and help us to build the skills of the future. Talking of technology collaboration, we have renewed our partnership with SK On, a leader in the field of high-performance cell manufacturing with whom we have collaborated for many years, and we will continue to innovate further. As you can see, we are firing on all cylinders in the execution of our business plan and product development. But perhaps I should instead say, we are charging ahead, because in 2024 we will set another significant milestone in our electrification journey. In fact, on the 21st of June, exactly 2 years since our last Capital Market Day and as we promised during all our previous calls and meetings, we will inaugurate our new e-building. This state-of-the-art and highly flexible plant will assure us of the flexibility and technical capacity in excess of our needs for years to come. Here, we will craft the dedicated electric axles and batteries that will power future Ferraris. Exactly like we promised you 2 years ago. A special thank goes to all the colleagues that have been able to maintain the e-building schedule despite all the difficulties we experienced in these turbulent times. It has not been easy, believe me, but they made it happen, grazie. Moving to the next page. The picture shows clearly the essence of One Ferrari ethos. And believe me, there is no better way to simplify it than our recent activities in the United States. As I told you at the beginning, last week, Ferrari hosted an unforgettable series of brand experiences in Miami, which immersed international clients, sponsors, tifosi, dealers and brand enthusiasts into the Ferrari universe. It began with Cavalcade International, one of our most prestigious driving events, which attracted about 70 Ferraris and their owners from all over the world as they drove together through the scenic landscape of Nashville in Tennessee first, and later in Florida. The journey culminated in Miami with the World Premiere of the Ferrari 12Cilindri and the Ferrari 12Cilindri Spider, our new 2-seater Berlinetta powered by front-mid, naturally-aspirated V12. These models are the perfect embodiment of the Prancing Horse DNA, offering incomparable performance and handling with sophisticated design. You should have seen the motion of all our clients. My words would never be capable of transmitting to you those emotions. These events were accompanied by a privileged view of the latest fashion Capsule collection inspired by the history of racing on American tracks and the vibrant energy of Miami. The Capsule collection had a warm reception; it was nice to see most of our clients wearing many pieces of our lifestyle collections during the long weekend. And last but not least, a fortunate few clients had the opportunity to experience the Miami Grand Prix to its fullest with exclusive and elegant hospitality of Casa Ferrari, right at the heart of the race. I'm also proud to say that the Miami Grand Prix was the start of a new partnership. HP has become our titled sponsor with a multiyear collaboration that encompasses a shared commitment to innovation, trust and excellence as well as commitment to a sustainable future from carbon neutrality to the education of the next generation. In HP we have found the same values, which make it an ideal partner. I have known them for more than 20 years. And for both our companies, people are at the center of whatever we do, because it is only people who are able to blend together the traditions and innovation. Not all of our clients, tifosi and brand enthusiasts were able to attend the event in person. Thus, we reached them through social media channels to nurture their sense of belonging. Lastly, before moving on, I would like to thank you, our shareholders, for your continuing trust and among you, I'm delighted to welcome around 4,700 new shareholders among our dear colleagues. Indeed, around 98% of our employees have taken advantage of the broad-based share ownership plan launched by Ferrari that I described to you a few calls ago. This initiative demonstrates our desire to foster the sense of belonging that makes us unique and underlines once more how we continuously strive for excellence. And on this note, I hand over to Antonio to review the Q1 2024 financial results.

Thank you, Benedetto, and good morning or afternoon to everyone joining us today. Starting on Page 5, we present the highlights of the first quarter results of this year. As you can see from this page, the first quarter saw shipments flat versus the prior year, while revenues and profitability grew double digits. As Benedetto mentioned earlier, the robust mix was the main driver. Let me briefly go through the main highlights. Revenues of EUR 1.585 billion, up 11%; adjusted EBIT of EUR 442 million, up 15% with a 27.9% margin, 100-basis-point higher than last year. Net profit of EUR 352 million, leading to an adjusted diluted earnings per share of EUR 1.95, up 20%. Adjusted EBITDA of EUR 605 million, up roughly 13% with a solid margin at 38.2%. And finally, strong industrial free cash flow generation of EUR 321 million. Moving to Page 6, we can now add more color to the shipment number of the first quarter. As usual, the geographic breakdown reflected our choices of both volume and product allocations in the different markets. As a result, deliveries increased in the EMEA by 39 units, in Americas by 35 units, the rest of APAC was almost flat and allocations to Mainland China, Hong Kong and Taiwan decreased by 79 units. Moving to the product portfolio overview. During the first quarter, the Roma Spider continued its ramp-up phase, while the Purosangue reached global distribution. Deliveries of the 296 family continued sustaining the 46% hybrid share. The allocations of the Daytona SP3 increased in the quarter, in line with our plans, and above the average for the rest of the year. Lastly, some models were approaching the end of their life cycles, namely the SF90 Stradale and the 812 GTS. The SF90 XX Stradale, the SF90 XX Spider and obviously, the newly launched 12Cilindri Coupe will start contributing at their respective pace this year, while the 12Cilindri Spider from 2025. On Page 7, you can see the net revenue bridge, which shows a 13% growth versus prior year at constant currency. The increase in cars and spare parts was the most relevant contributor driven by the richer product mix and country mix as well as higher personalizations. In the first quarter, personalizations came in strong and in line with our expectations of approximately 19% in proportion to revenues from cars and spare parts. The main contributors were the Purosangue and the total carbon-finish for the Daytona SP3. Sponsorship, commercial and brand increased, thanks to the higher sponsorships for racing activities, partially offset by the lower Formula 1 ranking achieved in 2023 compared to 2022. With regard to sponsorship, the additional contribution is provided both from new sponsors and different phase-in of sponsors signed last year. Other revenues were flat with improved contribution from financial services, offset by the decrease of the sales of engines to Maserati, whose supply contract expires at the end of 2023. As previously flagged, within the other revenue, we have now reclassified any residual sales of engines to third parties, whether for sports cars or racing. Currency had a negative net impact of approximately EUR 25 million, mainly due to the adverse dynamics of the Chinese yuan, Japanese yen and U.S. dollar versus the euro. Moving to Page 8. The change in adjusted EBIT is explained by the following variances: Volume, slightly negative, mainly reflecting lower range model deliveries. Mix and price positive for EUR 123 million, thanks to the robust product mix sustained by Daytona SP3. As a reminder, we show in this bar the whole contribution from the Icona pillar, including the volume variance. The increased contribution from personalization and a positive country mix, mainly driven by Americas. Industrial and R&D expenses grew EUR 29 million, led by innovation expenses, mainly for our sports car development as well as higher depreciation and amortization. SG&A increased EUR 12 million and mainly reflected the ongoing development of our digital infrastructure and organization. Other positively contributed for EUR 6 million. The increased contribution from sponsorship and the release of prior year car environmental provisions in the U.S.A., the latter was approximately USD 10 million were partially offset by the lower Formula 1 ranking achieved in 2023 compared to 2022. Lastly, the total net impact of currency was negative for EUR 23 million. Turning to Page 9. In the first quarter, our industrial free cash flow generation was strong and reached EUR 321 million. It reflected the increase in profitability, partially offset by CapEx for EUR 195 million, EUR 45 million higher than last year and in line with the pace of development of our products and infrastructure. Capital expenditure during 2024 will develop more linearly compared to our usual cadence, particularly as we start spending for the new paint shop. And second, a moderate increase in net working capital, mainly led by trade receivables. At the end of March, the company was in a net industrial cash position for EUR 38 million, notwithstanding EUR 136 million of share repurchases occurred in the quarter and residual impacts from currency and IFRS 16. Following the Annual General Meeting approval in April, the dividend distribution of approximately EUR 440 million was paid on the 3rd of May, thus impacting the balance sheet of the second quarter. Finally, let's move to Page 10, which confirms the guidance for 2024. We are really pleased with the solid Q1 performance, the continued strength of the order book and the positive business trends also emphasized by the enthusiastic reception of the 12Cilindri and the great partnership started with HP. On this basis, we do look with great confidence at the next steps in the execution of our plan for the current year and beyond. I thank you for your attention, and I'll now turn the call over to Nicoletta.

Thank you, Antonio. We are now ready to open the Q&A session. Please, Sandra, go ahead.

The first question I wanted to ask was just to help provide some clarification about the order book. You talked about some normalization, but you also in the opening remarks referenced the order book being very strong. Could you just help us understand what normalization means? Is this just the fact that you have more slots available now going into 2026 and with the 12Cilindri, or is there another element to it? And could you just confirm you haven't seen any pickup or abnormal behavior with respect to cancellations? The second question I had was around innovation. And Benedetto, obviously, you referenced the large number of patents that you continue to file. Just with respect to the patents and the innovation, is there any one area where you are particularly active today, such as aero or chassis dynamics, software or electric powertrain? Or is the innovation really across the board and all of the different technologies obviously in play at Ferrari.

Thank you for your question, George. I'll begin with normalization: what does it mean? It's straightforward math. We're currently in a situation where many of our models are sold out, and we recently announced two new models. The 12Cilindri and the orders for these two cars are not yet included in our portfolio. Normalization for us means that, as we mentioned earlier this year, we anticipated a slight decrease in our product portfolio since there were limited options for clients to order. I want to emphasize something important: our order book extends well into 2026, which is crucial because we have models with long waiting lists. Regarding the cancellation trend, we have seen fewer orders from China, but we do not observe any unusual spikes in cancellations, nor do we see a specific pattern based on country or model. Some clients wish to access more models but face longer wait times, such as with the Purosangue. Moving to the topic of innovation, we are actively partnering and advancing across various domains. Some areas, particularly related to driving excitement, are receiving more focus. Our patent portfolio does not emphasize areas that are not strategic for us, like autonomous driving. Instead, we concentrate on innovations that enhance the driving experience and other relevant aspects, which are where we focus our patenting efforts.

I just had two questions. The quarter was a very Ferrari-like quarter with volumes flat, very significant revenue growth from price and mix and personalization. So it really proved out the model. But I think if we look at the two walks, I was just wondering if you could give us some information or color on the EBIT change versus the revenue change because it was a very clean quarter with volumes almost flat year-over-year, but EBIT up EUR 123 million versus revenue up EUR 166 million, which would give you a 74% contribution margin, which I think is not being appreciated necessarily in the stock at the moment. So I don't know if you can talk about that on a relative basis. But if you could give us sort of color of how we should think about contribution margin ex volume because it was very strong in the quarter, about 74% as far as I can tell.

For this next question, I would like Antonio to...

Yes, there are three main elements that contribute to the increase in contribution margin. First is the product mix, particularly the role of the Daytona, which performed better than expected in the first quarter compared to what we anticipate for the rest of the year. Second is personalization, which is strong and slightly above the 19% we experienced for the remainder of the year. The third factor is the country mix; a decline in China positively impacts our margins.

Okay. Maybe just one follow-up to that. I mean, basically, what you're saying is the 74% contribution margin ex volume is the kind of number we should think about in the future? And then just one follow-up on Purosangue.

There is one element you should take into consideration: the Daytona is higher this quarter than the rest of the year.

Okay. And then just on the Purosangue success. I mean that form factor is somewhat unique. But Benedetto, you're having incredible success there. Could we see a successor to that in the next couple of years? And what would that mean for the business?

Purosangue is experiencing significant traction and the order book is very robust. It's performing well. However, I cannot comment on whether there will be a successor or anything related to that. We are gaining valuable insights from this model, and we typically like to apply what we’ve learned moving forward.

The first question I have is about China. You mentioned there was a slight decline there. I'm curious if there's something specific driving that, considering there are inherent reasons for being less aggressive with CO2 restrictions and tariffs. I'd like to hear more about what's occurring in China and any commentary you might have.

I would like to share some insights about China that I find quite interesting. We conducted an analysis and noticed a notable shift in the cars we are shipping to Mainland China compared to last year. Specifically, there has been an increase in the traction of hybrid models. A year ago, we were shipping more internal combustion engine vehicles than hybrids, but this year, the reverse is true. This transition also reflects the fact that our hybrid models are largely sold out, and there are only a few left for sale. This situation illustrates the normalization process in the country. It’s important to highlight that our approach in China differs from that of other luxury brands. From the start, as Antonio mentioned, we aim to keep our presence in Greater China, which includes Mainland China, Taiwan, and Hong Kong, below 10%. Our goal is to foster a deeper understanding of our brand among clients in this market—essentially, making them part of the Ferrari family takes time. To this end, we’ve deliberately chosen to maintain a limited number of models available there, ensuring we always stay below that 10% threshold.

And a quick follow-up on personalization. The guidance is to maintain that 19%. This was the same amount in 2023, so it's effectively flat. The Purosangue is coming in, and I believe you mentioned the Daytona is above that level. So I wonder if there is potential for that 19% to increase in your guidance for 2024, or perhaps it's because the initial customers receiving the Purosangue are more likely to personalize since they might be more VIP. I would love to hear your thoughts on this.

No, I think the trend of personalization is not specifically model-driven. Another lesson learned that we would like to share is that this year, we increased the price of personalization. You may remember that in the last call we mentioned raising the price of the new model and also the price of personalization. What we observed was that, while there was an increase in the price of personalization, it did not affect the ratio of personalization. This is the lesson learned. We raised the price of personalization, but if the client wants to personalize, they continue to do so. This is also why, when the previous colleague asked about the year-over-year contribution to EBIT, Antonio was discussing the contribution from personalization, product mix, and country mix.

Also, if I may add, the higher the average price of the car, the lower the percentage; it's just a mathematical formula. So the more we sell Daytona...

The first one is on the 12Cilindri. I was wondering if the 12Cilindri might carry a higher ratio of personalization or if there is any particular feature that might carry a higher personalization context, not only on the price side. Any color is appreciated on this side? And my second question is on the country mix, which was favorable in the first quarter; should we expect a similar impact also in the coming quarters?

I will address the first question, and I'll let Antonio handle the second. Regarding the 12Cilindri, there are a couple of key points to note about the Coupe and Spider. Firstly, clients are very enthusiastic about both models. Secondly, I have spoken with about 60 to 70 clients during our two evenings in Miami, and there is significant interest in new colors, like arctic white and verde toscana. Many clients expressed their intention to order these colors, and some are interested in having different colors for each of their Coupe and Spider. Lastly, we have agreed to increase the prices; the Coupe is now EUR 395,000 and the Spider EUR 435,000. There are ample personalization options available for clients, and the enthusiasm for the new colors will likely enhance their appeal. We aimed to start with a higher price point than the previous model, and now I would like Antonio to provide further details.

Sure. So Monica, I think as far as the country mix is concerned, over the course of the year, I would expect a modest positive impact.

A couple of questions. First, can you remind us of your sales today by unit volume, what percentage of your volume are delivered to clients that already own a Ferrari and how that changed in recent quarters? And I have a follow-up.

We were waiting for just this question?

I have a follow-up, if I can ask it now or wait.

No, we were taking a note on a piece of paper. So maybe you can go. So one is the percentage of repeaters. The second?

Yes. So again, the first question to be clear is what percentage of your volume are delivered to clients that already own a Ferrari or were existing owners replacing a Ferrari, if that makes sense. And the second question, Benedetto, is you have been making efforts downstream with your dealers and franchise dealers on trying to capture more of the recurring revenue and establish a more intimate relationship, if I can say so, with your clients, including things like increasing your hit rate on repurchasing a secondhand vehicle. I know there are other efforts that you're doing, but if you could give us an update on how that's going since you kind of reemphasize the efforts there, that would be appreciated.

The first answer is straightforward, Adam. Regarding repeat customers, we define repeaters as those who are already clients, and their proportion can vary depending on the model. In some cases, repeat customer rates are around 10%, while in others, they can be as high as 80% or 85%. On average, in 2023, 74% of our new cars were sold to existing clients. As for our dealers, we are working closely with them to strengthen relationships. We are focusing on two key areas: first, enhancing personalization to make our cars more tailored to client needs; second, we recently launched the Ferrari Approved program in the USA, which aims to develop the pre-owned market. This initiative encourages clients to remain within our family, as it helps prevent them from seeking services from unauthorized body shops or dealers. We have collaborated with our dealers on activities that provide incentives for clients to return, which are the two main efforts we are currently pursuing, Adam.

Benedetto, I want to congratulate you on the 98% participation of employees in the stock program. This has been important to you since the beginning of your time here. I have a question regarding the margin trends throughout the year, especially in the second quarter. You mentioned there would be less Daytona after the first quarter, but now that we are in May, the SF90 XX models will start shipping in the second quarter, with the Coupe and Spider expected later in the fourth quarter. These high-end cars seem to be significantly customized. As we analyze that mix, will the reduction in Daytona affect the slowdown for the rest of the year? Will the margin increase from Daytona also taper off throughout the year, or can the XX models maintain a more consistent performance?

Mike, the first one, in terms of the cadence, the current margin cadence is partly dictated by the date of the deliveries of Daytona, which we expect to be higher in the first half compared to the second; even if in the second half at some point, will get also the SF90 XX Stradale for delivery. But we expect anyway, the overall mix and price impact to remain above 10% compared to last year in terms of growth.

So I think I'll address the third question, and Antonio will provide more details on the first two. The e-building will be dedicated to electric cars, but we will also prioritize flexibility by assembling hybrid cars there. Therefore, some hybrid cars will indeed be manufactured in this e-building. However, our commitment to electric car production remains unchanged, and the e-building is set to open on June 21st, as previously mentioned. So please do not expect any electric car deliveries before what we have stated; we are adhering to our plan.

And as far as the HP sponsorship flowing into the P&L. I will start from the second quarter. I do not disregard the fact that it is just a portion of the year. So it's not a full year sponsorship this one. And as these things do not happen overnight, as you may imagine, we encompass that already largely in our guidance for the year, at the beginning.

I have some questions about the Purosangue and about the 12 Cylinder. First of all, on the Purosangue, you say it has reached global distribution, so that means there it's also reached the production cadence that's equivalent to the 20% target you would normally have for the vehicle over the lifetime of the product? Secondly, on the 12 Cylinder, could you comment, first of all, on your thought process and how you came about the pricing on this vehicle, obviously, which is a 30% uplift on the 812 Superfast and I believe a 27% uplift on the 812 GTS, obviously, big increases.

Thank you for your question. Regarding the Purosangue, in Q1, its deliveries were under 16% of our total volume shipped, so we have not yet reached the 20% target. We expect to finish the year around 18%. As for the 12 Cylinder, we have opted for a significantly higher price compared to the previous version due to the extensive innovation and efforts made by our team. Our testing has confirmed that it strikes a perfect balance between driving thrills, elegance, and sportiness, which justifies the price given the work involved. During the world premieres, we discussed the car’s features, and some clients expressed disbelief at the high performance achieved in an already high-performing vehicle. We have introduced unique features, such as four-wheel steering and brake-by-wire, along with significant improvements in dynamics, power control, and the interior display. We deliberately launched both the Coupe and the Spider models together to provide more options for clients, reflecting our flexibility and our commitment to understanding customer preferences. Our manufacturing line is equipped to handle this increased flexibility.

If I go back again about the pricing on the 12Cilindri. If the price increase, does that give us any idea of the future direction of when you launch also replacements for the next series of vehicles? Could we expect this kind of degree of price uplift on these vehicles? Obviously, with the 296 GTB, it was about a 14% increase, and I think on the Roma Spider versus the Portofino M, it was about 16%.

These are notable questions. It's evident that we must balance two factors. One is the innovation we provide to our clients, and the other is their willingness to accept higher prices. I can confirm that, as we've mentioned in various meetings, there is an increase in our prices, particularly for the 296, the Roma Spider, and the 12Cilindri. This is significant. We have always stated our desire to grow and prioritize value over volume. If you look at the deliveries this quarter, they have remained flat compared to a year ago.

Just a follow-up question on the HP title sponsorship. So quite a significant partnership you've signed there. And so I was just wondering how that affects the profitability profile of the F1 business. Is this something that could actually improve the profitability of the business? Or is it just made largely to cover any cost increases that you might expect in the coming years, maybe especially in 2025, with likely some higher wage expenses? And then a second question on the paint shop. Just wondering if you could update us on the development of the paint shop and what kind of investments and ramp-up could we expect for that new building.

Yes, it improves; that's a straightforward answer. Regarding the paint shop, we established the foundation in the last quarter. The total investment is part of the investment plan we announced two years ago, where we indicated EUR 4.4 billion.

The plan is over 2022 to 2026.

Yes, over 5 years, out of which, let me say, EUR 1.1 billion was for infrastructure, and the paint shop as the e-building are part of this EUR 1.1 billion over the 5-year cycle. So nothing new, Anthony. We are moving according to the plan. The e-building will be announced next month as per plan, and the paint shop started in Q1 as per plan, and all is part of this basket of EUR 1.1 billion.

Sorry to bother you on the profitability in Q1 in customizations. But you mentioned that customization was higher in Q1 than the 19% projected for the full year. Am I right in assuming 21%, first? And second, you also mentioned the higher the price, the lower the customization. But you also mentioned that the...

Martino, can I just stop you on this one, just to avoid any misunderstanding. We guided the market to 19% for the full year. And I just said in Q1, we are slightly above 19%, so that's it, but it's not significantly different, okay?

Okay. Regarding the second part of your question, you mentioned that as prices increase, customization as a percentage of sales decreases. However, you also pointed out that the Purosangue is increasing in production and that the Daytona contributed more in Q1 than expected for the rest of the year. If I recall correctly, the previous call indicated that 60 units of the Daytona were anticipated for this quarter, so it may have exceeded that number. The combination of these factors suggests that the expected relationship between higher prices and customization may not apply this quarter. I'm not sure if...

You're right in the sense that the first quarter, we had higher deliveries of the Daytona and the Purosangue is ramping up now in our global distribution, but it's not yet at 20%. When we said at the beginning, we are guiding to 19% average. Obviously, take into account that we do not have full visibility of personalization over the rest of the year because the decision on personalization is taken by the clients towards the end of this waiting time, a few months before delivery. So it's actually an assumption. The one we are not in a position to project on precise math for the following quarter; particularly as we go towards the end of the year. I think 19% on average is a fair assumption.

Okay. And the second question is on cost. Probably referring to the previous question on HP sponsorship. Am I right in assuming it is offsetting the Hamilton contract? And just to have an idea of the Formula 1 contribution going ahead regardless of the ranking you will have this year, which is probably higher than last year.

We said before, Martino, it improves. This was the same question that we got. So...

No, your question is very clear. Our answer is yes, it improves. We don't discuss the specifics, but it improves.

I'm sorry to bother you on the partnership with HP. Are we talking about triple-digit sponsorship here, such as the previous long-standing title sponsor? And second and third question are about volumes. Can we expect an acceleration of volume deliveries throughout the year, or can we assume a stable evolution? And on cost inflation, did you change your expectation or the development in line with your thinking at the beginning of the year?

I think Antonio will go through the first two points regarding cost. We haven't disclosed our numbers with HP due to the stipulations in our contract with all sponsors, which prevent us from revealing specific figures. The second point is about volume. We've consistently prioritized value over volume. To give you some context, last year we reported on our car production, but we expect the growth in volume to be very limited. In fact, in Q1, we produced seven units less than the previous year, and we do not expect any acceleration in volume. This approach aligns with what a brand like ours should practice. This also relates to Stephen's earlier question about the rationale behind our significant price increase, as we aim to prioritize value over volume. Antonio, could you address the cost inflation?

Yes, it's very simple. We haven't changed our assumptions for the rest of the year actually.

I'd like to revisit the seasonality of earnings and discuss the seasonality of CapEx and free cash flow to ensure my understanding is correct. I believe that earnings will likely align with the delivery pattern for the Icona, suggesting a stronger first half compared to the second half. Can you confirm this? Additionally, I recall you mentioning that CapEx would be more linear this year compared to previous years when it was more back-end loaded. Is that accurate?

To clarify the first point, I mentioned the development of the gross margin and contribution margin, which is influenced by the Daytona guidance. When considering the entire profit and loss statement, there are other seasonal factors that affect the upper portion of the profit and loss. Overall, I wouldn’t anticipate significant changes over time, but for Q3, it typically tends to be a bit lower. Regarding CapEx, you are correct. I indicated that we usually see exponential growth in capital expenditures throughout the year. However, in 2024, we expect the growth to be more linear because several projects are already well along. We are essentially wrapping up the development of the e-building and increasing expenditures for the new paint shop.

My second question is about the e-building. I look forward to visiting it. Are you currently producing anything there? Will we see something, or will you present your projects in more detail when it comes to the components you'll be making for the cars? Are you already manufacturing something in the building?

No, we may not have been clear in the past. In September, we received our first equipment. By December, we began assembling some components for our cars. Now we'll see how to manage it best, but it's not an empty shell. We're not inaugurating it without substance; there are people working there and components already produced.

I would have been prepared to come for a religious visit as well as the last question on ForEx, please. The headwind was a bit larger than I thought in Q1. Can you give us an indication of what we should expect for the full year?

Well, we have said we expect the dollar to stay in the area of $1.10. Then let's see what happens. It's rather unpredictable. For example, the impact of Chinese yuan and the Japanese yen both last year and the current year is negative and larger than we would have back on. As you know, we hedge our currency exposure on a 12-month rolling basis. So this moving a bit the impact. But overall, I would expect this to be negative for the rest of the year.

Yes. Just a couple left for me. Is it possible to know the precise number of SP3 Daytona delivered in Q1, please?

Yes, approximately 80.

80. Well.

Yes.

And another question again on price and mix, very strong in Q1. The balance between this 80 and EUR 123 million, am I right assuming that it's made of, let's say, bigger deliveries of Purosangue?

Okay. We do not give the details of the overall product mix impact. I told you that overall, product mix impact is positive, and this is because of the Daytona. The other significant contributor remains to personalization. And the third is country mix.

Okay. Okay. Okay. And very last question. Just to check, Antonio, if I understood well...

Just for the sake of clarity, Purosangue in terms of contribution is average compared to the rest of the range percentage-wise.

Very last question. I understood right. You said you expect price and mix to give higher than 10% contribution across the rest of the year?

I said that the increase of price and mix, as you can measure it as the ratio of the average selling price compared to last year is expected to be above 10% on a full year basis.

I have also one more clarification, I'm afraid. But I'm still trying to reconcile your comments with respect to high number of Daytonas, I think, very strong personalization mix on the first Purosangue's to be delivered perhaps on modest geographical mix effect in the course of the year, perhaps a little bit less in Q1. So I would have thought these comments all sort of add to thinking that the Q1 margin is more towards the top end of the range that we can perhaps expect across the quarters for 2024. But then again, similar to the previous point that the colleague made, if the revenue per unit stays at about 10% or price/mix stays above 10%, I'm struggling to reconcile that how that would be consistent with the full year margin of below 28%. I mean perhaps you can help us one more time to reconcile that.

I think Antonio can provide more details on the first point, and I'll address the second. Regarding the residual value, it's holding up quite well. There has been one country experiencing some challenges with a specific model, but that situation is improving. Overall, we aren't observing any unusual trends. As for the first question, Antonio will provide further insights. However, I want to emphasize that we are maintaining our guidance.

Absolutely. Absolutely. I mean we are asked about color for the development of product as of the price and mix over the rest of the year. And I trying to simplify what I said before, meaning price and mix has been particularly strong in Q1. This has been supported by the number of deliveries of the Daytona, which is higher compared to the average for the rest of the year. And the other element that contributed positively was personalization. And obviously, as I said, the other information that I put is that we expect on average price and mix to be growing by 10% or above that in the course of 2024 compared to last year. This means that over the course of the quarter in terms of contribution margin, depending on the cadence, the actual cadence of the Daytona will probably be slightly lower compared to the first quarter of the year. This is it. Does it help?

I might follow-up with the team afterwards. But thank you.

Okay. Okay. Thank you.

Thank you. Thanks for your time. Thanks also for all your questions. The strong Q1 results and also the strong brand desirability are fueling our confidence for the development of the year and also forward. This is the key message that we wanted to pass to you. And I wish you a good afternoon, and thank you again for your attention. Grazie.

This concludes today's conference call. Thank you for participating. You may now disconnect.