Good day, and thank you for standing by. Welcome to the February 2024 Full Year Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Thank you, Sandra, and welcome to everyone who is joining us. Today, we plan to cover the group's full year 2024 operating results and 2025 guidance, 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.

Thank you, Nicoletta, and good morning and afternoon, everyone. 2024 has been another remarkable year for Ferrari, full of milestones, unforgettable memories, and the continued growth of our brand across each of its three pillars: racing, sports cars, and lifestyle. Over the last years, we successfully continued to execute our business plan. We made significant progress in both the development of our infrastructure and our product offering. On the infrastructure, the E-building inaugurated last June is up and running, and we also accelerated the construction of the new paint shop for additional personalization. On the product offering, we are fully in line with our business plan. We launched three models in 2024: our supercar F80 and the two 12Cylinder Coupe and Spider. Our new supercar perfectly embodies our relentless will to progress, showcasing the significant technology transfer from our racing experience to our sports cars. Indeed, the F80 is equipped with our most powerful engine, a V6 hybrid powertrain directly derived from the 499P that won in Le Mans for two consecutive years. The F80 will be produced in a limited series of 799 examples, already fully allocated to our collectors. It represents the eighth model launched out of the 15 we promised to all of you at the 2022 Capital Market Day. The F80 is not only the pinnacle of our innovation; it represents a major advancement in our electrification journey. Now we can claim that our battery modules, electric axles, inverters, and electric engine are developed and handcrafted in Maranello, as we told you a couple of years ago. The internalization of this know-how represents a big step forward. All of this is accomplished in our new E-building, a state-of-the-art infrastructure that grants us further production flexibility. Flexibility is more crucial than ever in today's current context and is made even more achievable, thanks to the strong relations we have with our suppliers. 2024 has seen excellent financial results with record full-year figures across all metrics. Revenues at approximately €6.7 billion showed double-digit growth versus the previous year. Double-digit growth also in profitability, supported by an extraordinary demand for personalization and a favorable product mix with a net profit reaching €1.5 billion. Our industrial free cash flow generation surpassed the €1 billion threshold for the first time. Everything I've mentioned so far, including the record financial results, has been made possible, thanks to the passion and dedication of all my colleagues, the loyalty of our clients, and the steadfast support from our partners. Congratulations to all. The strength of our business is also confirmed by the order book on current models, which is evolving as expected, covering the entire 2026 with the 12Cylinder Coupe and Spider guiding the order intake. Residual values remain sound with different dynamics throughout the region and models. Clearly, we are closely monitoring their trends. We continue with a wise allocation strategy and are devising even more exclusive Ferrari experiences to further engage our clients. These experiences span from racing days to test drives, from regional premieres to exclusive driving events. This year, we brought together our three pillars: racing, sports cars, and lifestyle in a series of unforgettable events in Miami during the Grand Prix. Why is all of this important? Because owning a Ferrari is much more than just owning a car; it's about being part of an exclusive community united by shared passion. The loyalty of our clients is testified by the data: in 2024, we sold approximately 81% of our new cars to existing Ferrari clients, and 48% to clients who own more than one Ferrari. The passion is also shared by our wider community, as demonstrated by our museums, which saw a new record of over 850,000 visitors in Maranello and Modena in 2024. Looking ahead to 2025, in racing, we compete at the top in both Formula 1 and Endurance Championship with a reinforced team and a clear goal - winning. In sports cars, we will further enrich our product offering with six new model launches. Don't ask me about the electric Ferrari model; we will announce it in a unique innovative way in Q4. Throughout the year, we will continue to enhance our client experiences and accelerate the development of our paint shop. In lifestyle, 2025 will be a year of progress, with activities designed to build scale and expand our visibility. This is an investment aimed at nurturing and elevating our brand. Among our priorities, we will continue to focus on our carbon neutrality goal by 2030. Further progress was made in 2024 with the shutdown of our highly efficient trigeneration plant several months ahead of our initial projection from the last Capital Market Day. Since September 2024, we are no longer buying methane gas for electricity production and are increasingly relying on renewable sources. Thus, in 2025, we expect to reduce our Scope 1 and Scope 2 emissions by approximately a factor of three compared to the 2021 base year. This was made possible thanks to the commitment and dedication of all our colleagues at Ferrari. To reward their achievements in line with the company's strong performance indicators, I'm pleased to announce the yearly competitive award of up to approximately €14,400 for our employees, as well as the confirmation of the global equal salary certification and the newly acquired Italian certification on gender equality. We remain constantly looking forward and beyond. Before I leave the stage to Antonio, I would like to underline three things about this year. First, 2025 will be another step forward in executing our business plan, allowing us to look to the future with greater confidence since we are better positioned compared to our initial trajectory. Second, we look ahead with a united, focused, and grounded team ready to embrace the exciting challenges that lie ahead of us. Finally, 2025 will also be a great occasion to come together here in Maranello on October 9 for the launch of the Ferrari full electric and to share with you our vision for the future. Now I leave it to Antonio with positive results and guidance for this year. Thank you.

Thank you, Benedetto, and good morning or afternoon to everyone joining us today. I start on Page 8 with a quick overview of the highlights of the full year. 2024 has been a very strong year with all metrics exceeding our expectations and achieving remarkable results. I stand with Benedetto in congratulating the team on their outstanding performance. Revenues and profitability grew double digits, with shipments slightly higher than last year. The product mix and personalization continued to strengthen. This was combined with a favorable country mix and resulted in an EBITDA margin of 38.3%, despite continued inflationary pressures, higher rising expenses, and brand investments. Further leverage on the D&A, in line with the phase-out of several models, enabled us to expand the EBIT margin to 28.3%. The net profit reached €1.5 billion, corresponding to diluted EPS of €8.46, up 22.6% versus the prior year. Such an improvement included nil financial charges and a tax rate of 19.2%, supported by the temporary coexistence of two Patent Box regimes. The industrial free cash flow generation was strong and above €1 billion for the first time, even more remarkable considering that in 2024, our capital expenditure peaked at around €990 million. On Page 9, we analyze our shipments for 2024, which increased by 89 units. We had significant changes in our portfolio throughout the year. The shipments of the Purosangue, Roma Spider, and 296 GTS grew compared to the prior year, alongside those of the Daytona SP3. We commenced deliveries of the SF90 XX family and the 12Cylinder in line with our plans. On the other side, five models phased out: Portofino M, SF90 Stradale, 812 GTS, 812 Competizione, and Roma. The hybrid share reached 51%, in line with product plans, primarily driven by the 296 GTS. The geographic breakdown reflects different product cycles, as well as the company allocation strategy adopted to preserve brand exclusivity. As a result, EMEA and Americas were up versus the prior year, representing close to 75% of our total shipments. The rest of APAC was almost flat at 17%, and Mainland China, Hong Kong, and Taiwan reduced their share to 9%, in line with our long-term ambitions for this region. On Page 10, you can see the net revenues bridge, showing a 13.4% growth versus the prior year at constant currency. The increase in cars and spare parts was driven by a richer product and country mix, as well as higher personalizations, which exceeded expectations, reaching approximately 20% of total revenues from cars and spare parts, primarily supported by the Purosangue and Daytona SP3. Sponsorship, commercial, and brand revenue increased, thanks to new sponsorships for our racing activities, including HP as the new title sponsor of Scuderia Ferrari, as well as higher contributions from lifestyle activities. Currencies, net of hedges in place, had a negative impact this year. Moving to Page 11, the change in adjusted EBIT is explained by positive contributions from mix and price, driven by the enriched product mix and deliveries of the Daytona and the increased contribution from personalizations. Higher industrial and R&D expenses were largely due to racing and innovation activities, while SG&A increased as a result of continuous initiatives in software and digital infrastructure, organizational development, and brand investments. Other was strongly positive, due to new sponsorships and lifestyle activities, partially offset by higher costs due to the improved 2024 Formula 1 season ranking. Lastly, we experienced a negative net impact from currency. The EBITDA margin was 38.3%, while the EBIT margin reached 28.3% and benefited from flat G&A. Turning to Page 12, our industrial free cash flow generation for the year was €1.027 billion. The tailwind from the strong increase in profitability was partially offset by a negative contribution from net working capital provisions, primarily driven by an increase in inventory value and higher trade receivables. Higher tax payments and capital expenditures of €989 million, a peak within the current business plan, aligned with advancements in product development and the accelerated spending on the new paint shop. I would like to highlight that an amount exceeding €1 billion, very close to the industrial free cash flow generation, was also returned to our shareholders through a combination of dividends and share repurchases throughout the year. Finally, net industrial debt was €180 million at the end of December 2024. Let’s move to Page 13, where we present our targets and the drivers for 2025. Please note that these targets set the floor we aim to achieve. On sports cars, product and country mix will continue to improve from the 2024 baseline. Although the contribution from the Daytona is expected to gradually decrease over the year, the mix will be supported by special series and range models, along with a few initial deliveries of the F80 towards year-end. Personalizations are expected to grow in absolute terms, although remaining stable around 20% of car and spare parts revenues. Racing revenues from sponsors and commercial rights holders are expected to grow, aided by the new sponsorships, including HP, and the better ranking achieved in Formula 1 in 2024 compared to 2023. Lifestyle activities will continue to enhance their contributions to the top line, accelerating their growth rate while investing a larger share of resources to speed up development and expand the retained network. Continuous brand investment, higher racing and digital transformation expenses, and ongoing supply chain challenges will lead to a gradual progression of our percentage margins. Given this, the first half of 2025 is expected to be stronger than the second half, in line with the development of the product mix. Regarding the bottom line, we estimate the effective tax rate to be higher at around 22.5% as we keep benefiting from the new Patent Box regime, while the previous one has ended. Industrial free cash flow generation will be sustained by our profitability but partially offset by a still negative change in working capital and tax payments proportional to income development, with CapEx around €900 million, which is substantially lower than last year. The underlying assumption about the U.S. dollar exchange rate is that it will fluctuate around 105, which would be neutral compared to 2024, including hedges. Please note that all of this relies on the assumption that applicable customs duties stay unchanged. To sum up, today's strong set of results marks another significant step in our growth trajectory, which we aim to continue into 2025. Despite the ongoing uncertainties in the global scenario, our unique business model gives us strong visibility, flexibility, and confidence in our future. We look forward to sharing our long-term vision and strategy at our Capital Markets Day on October 9. I thank you for your attention and now turn the call over to Nicoletta.

Thank you, Antonio. Sandra, we are now ready to open the Q&A session.

Thank you. We will now take the first question from the line of Susy Tibaldi from UBS. Please go ahead.

Hi. Good afternoon. Thanks for taking my questions. I have two. The first one regarding your model rollout, six new models in 2025. I was wondering - are you anticipating your guidance by one year? Is that purely on the financial side, or is it also operationally? Because if you add six models, you get to 14, and you were going to launch 15 by 2026. So could you clarify that? Linked to that, do you have any concerns that you might be launching too many models in one year, as it could potentially confuse customers with regards to positioning? Is your focus in 2026 on reaching new customers again, or still to focus on existing customers? So that would be the first question. Then my second question is, can you explain how exactly your mix flows through to your P&L? The reason I'm asking is that in 2023, we saw a significant jump in your EBITDA margin helped by a very strong mix, but in 2024, despite a similarly strong mix, the profitability improvement was significantly smaller. So can you provide clarity on what are the key drivers of your margin expansion that we should focus on going forward? Thanks.

Okay. Susie, thank you. I'll take the first one, and then Antonio will go through the mix. Regarding the first question, we are always pushing for new clients, whether for thermal cars, ICE, or hybrid cars. In 2024, we had 51% of our cars being hybrid. We care for both our collectors and repeat clients as well as new clients. About your concern of too many models and confusion—well, we are talking about different kinds of cars. There are special limited versions and models positioned for different types of clients. Starting from the beginning, we intended to execute a strategic and horizontal strategy in terms of model offerings, as we don't want to do a few models with high volumes, which could degrade desirability and does not align with our objective of becoming a more luxurious brand. So we said 15, and through our calculations, it will reach 14. There will be further updates on our plans for the end of this decade in October. Now, for the mix, I will hand over to Antonio.

Hi, Susy. When we speak about the mix, we refer to the product mix, including special series and limited cars in volume, the ICONA for now, and the F80 supercar, then the country mix, and the contribution of personalization and pricing overall. Over the last few years, we have seen an increasing contribution from all these categories. As for the product mix, we reached a new baseline this year with full deployment of Daytona deliveries throughout the entire year. In 2025, the Daytona will not be as strong as in 2024 because it will conclude by the end of the third quarter. The country mix has also been important; we've flagged many times that all countries contribute equally in terms of contribution margin. In this context, shifting the majority of deliveries to North America and Europe has been beneficial compared to the past when China was more relevant. Lastly, our pricing strategy has been evident in 2023 and to a lesser extent in 2024, as this has been offset by increases in costs. In 2025, we expect limited pricing changes, mostly pertaining to specific models in certain countries. Personalization, however, has been a significant contributor, growing from 18% before 2022 to 20% currently, which has positively surprised us.

Yes, it does. I guess a lot of these factors you mentioned on the positive side of tailwinds—were present in 2024 as well, right? The magnitude of the profitability improvement in 2023 versus 2024 was quite different. But I guess that you addressed this by mentioning the cost inflation, which was not offset by pricing to the same extent in 2024.

Correct.

Thank you. We will now take the next question from the line of Stephen Reitman from Bernstein. Please go ahead.

Yes. Good afternoon. Thank you. I have a question on pricing first. I noted your comments that pricing would not have a significant impact in 2025. However, I want to focus on specific models. I understand that there's actually significant price increases for the Purosangue starting from the beginning of 2025. Could you confirm that? Additionally, could you discuss the customer profile for the 12Cilindri? Is it attracting new customers, or is it mostly going to your existing collectors who own more than one Ferrari? Thank you very much.

Thank you, Stephen, for your question. Regarding pricing, you are correct; starting January 1 of this year, there was a planned price increase on the Purosangue that was communicated to you. So when we mentioned no new price increases, we were referring to new models. As for the 12Cilindri, we are seeing good traction with both the Coupe and Spider. Currently, the order intake is approximately 50-50 for the two models, and there is a notable trend towards new client prospects. I would estimate that about 40-45% of the new clients are around 40 to 45 years old, and the percentage of new clients is approximately 20%, which is interesting. Also, the clientele is quite diverse in terms of age, showing interest in the 12Cilindri.

Thank you. Could you provide an update on the warranty program you mentioned last year for the battery? Is there any improvement in guaranteeing the longevity or usability of the battery in the plug-in hybrid? And will you do something similar for your BEV?

That's a great question, Stephen. We launched the warranty in September, and in the last four months, we saw around 350 people buying our additional insurance for peace of mind. Keep in mind that this warranty only covers hybrid cars due to the high-voltage battery. So, around 350 contracts were signed in roughly four months. This is providing our clients with reassurance regarding the battery's longevity, and we will continue to monitor its traction.

Thank you. We will now take the next question from the line of Michael Binetti from Evercore ISI. Please go ahead.

Hey guys, congrats on a great end to the year. Just a quick one. Would you mind telling us how many Daytonas shipped in the fourth quarter? Many thanks again.

The number of Daytona shipped was 46, which means we're delivering one every two days.

How this is working?

Yeah, I didn't get mine yet. At 46, if we exclude the Daytonas, the ASP or the car revenues per unit were probably up low double digits, maybe 10%. Is that correct? I was interested in your comment that the first half will be stronger than the second half. That seems a bit counterintuitive given how we were thinking about it. It seems the ASPs on the rest of the fleet aside from Daytonas were doing well. Should we expect that to continue in the first half, driving your comment regarding the first half being stronger? Also, can you contextualize how many F80s you anticipate shipping in the fourth quarter here? I realize it's the first quarter, but it seems like there will be very few F80s in the fourth quarter. Is that the right way to think about it?

I would model it this way: you should assume that Daytona shipments will slightly decrease from Q1 to Q3 and will nearly finish by Q4. The transition between the XX, the SF90 XX Coupe and Spider, with the 812 Competizione, will grow in the second half of the year but will not completely offset the loss from Daytona deliveries. The F80 will start ramping up in the last quarter, but we expect only a few units at that point. Therefore, the first half is expected to be stronger than the second half, reflecting these factors.

Okay. If I could just follow up on Benedetto. Given the concerns about residual values of hybrids reportedly dropping as you're on the verge of launching your first EV, does that change your view of what the Ferrari full electric customer will value the most as you see shifts in consumer opinion about these vehicles?

Thank you for the question, Mike. I’d like to say there are electric cars and electric cars. Since the beginning, when we announced our strategy in June 2022, we aimed to make a unique offering with new technology. We are considering all relevant dimensions, including style, performance, and driving experience. I can’t comment on why other electric cars may or may not be accepted. However, our electric car will be unique in those aspects. For more details, you will have to come in October, and I look forward to it.

Thank you. We will now take the next question from the line of Monica Bosio from Intesa SanPaolo. Please go ahead.

Hey. Good afternoon, everyone. I have three questions. First, for Benedetto. It's on the order book in China. Last quarter, you mentioned that the order book in China was at around five quarters. I'm just wondering how that situation is now. Are you willing to change your strategy at all in light of the tariff environment? With that context, can we expect some acceleration in deliveries towards the Americas in the early part of the year? The second question is on residual values relating to the seven-year warranty on batteries. Can you update us on the current trend in residual values for hybrid models? Finally, my third question is regarding R&D for the current year. Could you share some guidance on what we should expect? Thank you very much.

Thank you, Monica. Regarding China's order backlog, we maintain the assessment of five quarters, and we don’t intend to accelerate sales to the U.S. or elsewhere due to duties. We are following our plans without any acceleration. For residual values, the trend varies considerably across regions and models, and we are monitoring it closely. In countries like the U.K., for instance, we are limiting car shipments and observing how the warranties affect the market. For R&D, I’ll pass it over to Antonio.

For R&D, we expect it to be around 8% of revenues, keeping in line with 2024. No significant changes anticipated.

Okay, thank you very much. I have a housekeeping question. The first half will be stronger than the second half. Will there be a different trend in volumes between these halves, or should it be similar to the previous year? Thank you.

Thank you, Monica. We expect the volume distribution to be almost equal, with the first half being stronger primarily due to the mentioned factors.

Thank you. We will now take the next question from the line of Anthony Dick from ODDO BHF. Please go ahead.

Yes. Good afternoon. Thanks for taking the question. A couple from my side. First, on D&A. Your guidance suggests that D&A will be lower in 2025 versus 2024. Could you confirm this and provide an explanation? I believe you mentioned model phase-outs impacting D&A, so will that be the case this year? My second question is regarding the F80. You noted it’s been fully allocated, but I've seen reports of cancellations. Could you address the question and confirm whether there have been cancellations? Have you replaced them? Where does the order book stand for the F80? Thank you very much.

Thank you, Anthony. I'll address your second question, while Antonio covers the D&A. It's true there have been speculations online, but we rely on client contracts that have been signed. I can confirm that there are actually more people than the 799 cars we are offering. Regarding what you've read on the Internet, after the misinformation spread, I was on a call to clarify the situation. It's important to disclose that order intake for the Supercar has been faster than past ICONA launches. I would not consider this news as substantial.

Regarding D&A, I mentioned that in 2024, the overall level was relatively flat, moving a few million. In 2025, our guidance reflects model phase-ins and phase-outs. As new models begin production, changes in D&A will follow suit. Situations like the new E-building starting production will also impact those numbers.

Thank you. We will now take the next question from the line of Henning Cosman from Barclays. Please go ahead.

Hi, good afternoon, everyone. Thank you for taking my question. My first question is about pricing power. I’m interested in your anticipated ability to implement price increases compared to previous efforts. The previous approach was successful in terms of pricing and predicting demand. I would like some reassurance regarding your pricing strategy as we approach the six launches in 2025. My second question is about hybrids. You mentioned plans for hybrid models in the industrial plan; I’m curious if any changes are expected in the number of models you anticipate.

Thank you. Regarding hybrids, we affirm our plan from two years ago. We've consistently maintained that we were pursuing hybrids, thermal, and electric models. We are executing according to our product strategy. Concerning pricing power, we have numerous launches as we've planned. We're completing a strategic development for various client types, which allows multiple products to be viable. We will confirm our pricing strategy and marketing plans as per our original announcement.

We can expect the typical pattern of markups versus predecessors; should we be worried about deviations from recent price trends?

I’d rather not comment on the specifics of the new cars, including technical features or pricing. Let's wait for the rollout to see.

So if there were tariffs, would you be confident in passing them on to customers?

To confirm, we are not accelerating our plans. When tariffs are disclosed, we will see how to handle the situation. We prefer to keep our promises and work on facts. When the facts arise, we’ll manage it accordingly.

Thank you. We will now take the next question from the line of Thomas Besson from Kepler Cheuvreux. Please go ahead.

Thank you very much. I have three questions. Firstly, I’d like to revisit the improved average selling prices in Q4 versus Q3. Could you share details beyond increased personalization as a driver? Is it linked to a higher share of hybrids in Q4? Second, could you share your expectations for the hybrid share in your volumes in 2025? I realize you may not disclose much about the six new models, but do you expect an increase in the hybrid share? Lastly, could you share your post-F80 plans regarding average selling prices after the F80 departs?

I won't reveal what we will do post-F80 in detail. For better insights, join us in October, where we’ll present our plans. Regarding your other question about hybrid share, we expect it to be slightly lower compared to 2024, with the increase stemming from the 12Cylinder. Regarding Q4 pricing versus Q3, it’s mainly due to the growth of the SF90 XX and personalization, which drove up the costs significantly with an increase in carbon-finished parts and a positive country mix compared to Q3.

Benedetto, thank you very much.

Thank you. We will now take the next question from the line of George Galliers from Goldman Sachs. Please go ahead.

Good afternoon, and thanks for taking my questions. First, could you clarify the percentage of specials shipped in the fourth quarter? Based on prior numbers, it implies that specials represented 7-8% of deliveries in Q4. Second, regarding depreciation and amortization, is it logical to expect that D&A will eventually align more closely with our CapEx levels? Given where we stand now, will the D&A trend go up significantly? Lastly, on the order book, which is solidly sold out for the next two years, could you share insights into the average number of orders per customer?

The percentage of specials in Q4 was around 6%. Regarding orders per client, we don’t have that data point. The distribution of orders is quite random; we see various patterns among clients. Some only want one type of car, others have diverse preferences. It’s hard to quantify since that average would be misleading in context.

Regarding CapEx to D&A, we did mention this at the Capital Market Day in 2022. By the end of 2026, we expect it to be around 1.2. It won’t be a 1:1 correspondence. We’re experiencing robust investment, particularly in the infrastructure and our new models.

Thank you. We will now take the next question from the line of Adam Jonas from Morgan Stanley. Please go ahead.

Hi. Thanks, everybody. Looking forward to the tortellini. Benedetto, you mentioned that 81% of last year's sales were to existing customers, a good increase from 74% the prior year. What drove this change? Do you think there's potential for this to increase further, and projecting from what you see now, could you anticipate that it may remain around 81%? Or do you think we may see a shift?

Adam, great question. To clarify, we noted that 20% of new clients for the 12Cilindri are first-time buyers, and the average age of our new clients is around 45. This shows that our clientele remains diverse, including both new and repeat buyers. Regarding the 81%, we see a significant interest from current collectors, and I'd say the client loyalty we experience is noteworthy, meaning this could stabilize.

Thank you. Just a follow-up regarding personalization. You've acknowledged that some of the residual weakness is attributed to personalization. I’m curious whether you have made adjustments in offerings to control this in alignment with your clientele's preferences. Are you guiding clients towards certain styles, or allowing them to choose freely regardless of resale value considerations?

To give you a bit more context, the most common personalizations include carbon finishes and various accessories. Clients often arrive with ideas, and we may advise them based on our expertise. Some clients do seek personalization that may affect residuals, while others prefer to stick to a set menu. We want to maintain the identity and values of the brand while allowing for personal choice.

Thank you. We will now take the last question from the line of Tom Narayan from RBC. Please go ahead.

Hi. Thanks for taking the question. With regard to the residual value rumors, understanding how many owners perceive their Ferrari as an asset can be insightful. How are those owners viewing their investment in the context of potentially decreasing residual values? Second, you've mentioned supply chain challenges; can we expect any specific issues? Is there any need for concern? Lastly, E-building updates: what can we see in the E-building today compared to last year?

To address your last question, if you visit us, you will see that the E-building is now producing our Purosangue and hybrid cars. We’ve also ramped up capabilities for engines, batteries, inverters, and axles. Regarding supply chain challenges, we are dispatching our people to ensure that production remains uninterrupted, while also leveraging our second sourcing strategies. My assessment is that many suppliers are facing pressure due to lower demand from larger OEMs.

Regarding client sentiment towards resale, while we can’t specify how many owners view their Ferraris as investments, there's certainly an investor view among collectors. We've seen how new buyers are excited and make investments based on popular models. However, the varying attitudes across clients may affect how each individual interprets their purchase over time.

I want to express my gratitude to everyone for their questions and for taking the time to listen today. Your inquiries helped clarify insights we aimed to share. I also want to extend thanks to our stakeholders for their contributions that strengthened our remarkable results in 2024. Our brand's strong desirability fuels our confidence moving ahead. I look forward to seeing you all on October 9th, and I’ll ensure the weather is favorable for the event. Thank you once again.

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