2022-2026 Strategic Plan
Ferrari N.V. (NYSE/EXM: RACE) (“Ferrari” or the “Company”) today presents its Capital Markets Day on the 2022-2026 strategic plan and the actions it is taking to embrace the opportunities ahead. Employees’ empowerment, experience, emotions, electrification, engine, environment, and earnings: the Company is entering a new and exciting chapter of its journey, ready to push the boundaries further than ever in its own distinctive way.
John Elkann, Ferrari Chairman: “Our brand fuels the dreams of millions. It has been built up over 75 years of thrilling, memorable experiences, through success on the track and sheer driving pleasure on the road. It has created an inclusive, close-knit community that encompasses diverse people, countries and even industries. As long as we preserve its heritage and values, it will lay a solid foundation for our future strategic plans”. Benedetto Vigna, Ferrari CEO: “With their unwavering commitment and passion, the women and men of Ferrari are determined to flawlessly execute this strategic plan and to build on all the opportunities that lie ahead, embracing our founder’s will: to keep alive the will to progress pursued in the past. We will continue to draw on our competitive advantages: uniqueness and technological leadership, whilst taking actions to reach carbon neutrality by 2030”. The 2018-2022 business plan demonstrated Ferrari’s ability to deliver on its promises and execute its strategy despite the Covid-19 pandemic. Among the main achievements over the previous plan there are the launch of 15 cars, a +25% increase in the client base(3) and a cumulated industrial free cash flow(4) of more than Euro 2.46 billion, including the significant industrial free cash flow expected in 2022.
THE COMMITMENT TO UNIQUENESS, FURTHER ENRICHING THE PORTFOLIO
The Company today has the widest and most beautiful product portfolio in its history and all time high order book, which allow for the preparation and management of the future growth path in line with its commitment to uniqueness, true to the founder’s philosophy ‘’to sell one car less than the market demand’’. In order to keep the product range at the highest level, while always preserving uniqueness, the plan announced today aims to unveil 15 cars between 2023 and 2026. Every single product will be designed to create a unique positioning and to target a specific client base, according to the principle “different Ferrari for different Ferraristi and different Ferrari for different moments”.
In order to maintain uniqueness, the product offer in 2022-2026 will include, on average, besides range models. Icona and Supercar, which will be limited to far less than 5% of total volumes. Special series representing around 10% of total volumes
Ferrari will be disciplined in applying such exclusivity also to the Purosangue, the pure V12 model that will be unveiled in September 2022. The yearly average contribution to the shipments is currently planned to remain below 20% over its lifecycle. The highly awaited new Supercar will be launched within the plan period. Since 2018, a carefully designed enlargement and rejuvenation of loyal Ferrari clients was achieved, always respecting the principle of scarcity reflected in its current penetration rate of ~0.3% among ~26 million HNWIs worldwide(5). The client base was increased by 25%, with new clients who are 8 years younger on average than the previous ones. During the plan, Ferrari has also been able to develop its top collectors, 60% of whom are new clients and have expanded the number of cars in their garage by an average of 25%.
THREE POWERTRAINS WITH DISTINCTIVE DRIVING EMOTIONS
True to its founder’s belief that “the engine is the soul of the car”, Ferrari will continue to design, develop and handcraft its powertrains in Maranello, together with other core components that are critical in differentiating the technology and performance of its cars. By 2026 Ferrari targets a well-diversified product portfolio, composed of 60% hybrid and full electric and 40% ICE in terms of number of models, each one delivering distinctive driving emotions, yet always unmistakably a Ferrari. By 2030, it is targeting an offering composed of 20% ICE, 40% hybrid and 40% full electric. ICE – Ferrari will continue to push the internal combustion engine evolution and, with the support of partners, will develop solutions in energy efficiency and alternative fuels to build on an essential part of the Company’s heritage. Hybrid – Since 2009, Ferrari has demonstrated that hybrid is the right technology for increasing pure performance, and has taken advantage of the technology transfer from the racing world. Today, with four hybrid cars in its portfolio, the Company still firmly believes that the hybrid engine can further increase performance. Electric – Leveraging strong commonalities with the internal combustion engine – including technology transfer from the racing world, precision mechanics, fluid-dynamics and performance software – electric technology will also provide unique elements, driving emotions and the thrills of a true Ferrari.
THE ELECTRIFICATION JOURNEY, GROUNDED IN RACING HERITAGE
This first full electric Ferrari will be unveiled in 2025 and will be rooted in the Prancing Horse’s heritage, drawing from a broader technical expertise to further enhance driving thrills. Its unique features, leveraging the racing know-how, will make it a true Ferrari, ensuring it stands out across all dimensions: engine power density, weight, sound and driving emotions. Another key differentiating element for Ferrari electric cars will be the way the battery cells – which will be purchased to ensure the highest quality and latest technology – will be assembled in Maranello. The handcrafted battery modules will be integrated into the chassis of cars in a process focused on reducing the weight of the vehicle, increasing the performance and creating the unique driving experience, as only a Ferrari can deliver. Once again, existing technologies will be leveraged with the goal to continue to exceed clients’ expectations, staying true to the founder’s belief that “the best Ferrari ever is the one that has yet to be built”.
INCREASED IN-HOUSE MANUFACTURING AND OPEN INNOVATION
Ferrari will continue to develop and make in-house its core components, while co-developing and tailoring best-in-class existing solutions with selected partners, as it has always done since its establishment. Strategic partnerships in non-core hardware and software areas will provide access to state-of-the-art technologies, helping to maintain a disciplined approach towards investment whilst enhancing design, performance and driving thrills. An additional development of the plant in Maranello will assure the technical capacity and capability in excess of the needs for the years to come. In particular, it will be enriched by a new e-building where electric engines, inverters, and batteries will be designed, handcrafted and assembled and a new Paint Shop will provide an even higher degree of personalization - an important trend in the luxury space.
ELEVATED DRIVING EMOTIONS AND CLIENTS EXPERIENCES
Ferrari will continue to provide clients with the uniqueness they deserve, by expanding the unique value proposition while preserving the brand DNA.
In an automotive world that will be more Shared, Autonomous, Connected and Electric, the Company will pursue its own distinctive way to keep design, performance and driving thrills always at the center of the experience behind the wheel. This will be achieved by developing distinctive components and tailoring technological solutions to Ferrari needs. Ferrari will limit the autonomy of its cars to L2/L2+, in order to preserve all the extraordinary emotions reserved for the driver, whilst connectivity is first and foremost provided to enhance the ownership experience and the relationship with the client.To continue to nurture its community, Ferrari will also build on its omni-touchpoint strategy and continue to engage with clients through exclusive and bespoke experiences, including events such as the Cavalcade and Finali Mondiali.
Other luxury and lifestyle activities
The Group’s presence in the wider luxury landscape is a unique opportunity to ensure brand relevance across future generations. Since the last Capital Markets Day in 2018, Ferrari reduced the number of licenses to strengthen brand desirability and high quality revenues, renovated its distribution network, attracted top talent from the luxury world and launched two Fashion Collections.
Ferrari targets to achieve net revenues up to Euro 6.7 billion in 2026, with a compounded annual growth rate of 9%, mainly driven by car-related activities supported by the rich product portfolio, along with personalizations. Other revenue streams are projected to positively contribute to the Company’s performance, both from racing and lifestyle activities, which include the ambition to double lifestyle sales by 2026 versus pre-pandemic levels.
TAKING DELIBERATE ACTIONS TO REACH CARBON NEUTRALITY BY 2030
Ferrari is committed to reaching full carbon neutrality by 2030, making its contribution to achieving the targets set in 2015 in the Paris Agreement through a holistic and scientific approach. In fact, Ferrari is proud to announce it has committed to set Science Based Targets acting on: Carbon neutrality in its operations already starting from 2021 emissions. The reduction of at least 40% of the Scope 3(7) emissions per car by 2030, focusing mainly on materials and vehicle use phase. The engagement of high quality projects with global climate and social contributions.