Ferrari N : Q2 2020 Results Presentation

Q2 2020 Results August 3, 2020

SAFE HARBOUR STATEMENT

This document, and in particular the section entitled "Narrowed 2020 Guidance" contain forward-looking statements. These statements may include terms such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "continue", "remain", "on track", "successful", "grow", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", "guidance" or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are

based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.

Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group's ability to preserve and enhance the value of the Ferrari brand; the success of the Group's Formula 1 racing team and the expenses the Group incurs for its Formula 1 activities, the impact of the application of the new Formula 1 regulations (both financial and technical) progressively coming into effect from 2021 and 2022, the uncertainty of the sponsorship and commercial revenues the Group generates from its participation in the Formula 1 World Championship, including as a result of the impact of the COVID-19 pandemic, as well as the popularity of Formula 1 more broadly; the Group's ability to keep up with advances in high performance car technology and to make appealing designs for its new models; Group's ability to preserve its relationship with the automobile collector and enthusiast community; changes in client preferences and automotive trends; changes in the general economic environment, including changes in some of the markets in which the Group operates, and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; competition in the luxury performance automobile industry; the Group's ability to successfully carry out its growth strategy and, particularly, the Group's ability to grow its presence in growth and emerging market countries; the Group's low volume strategy; reliance upon a number of key members of executive management, employees, and the ability of its current management team to operate and manage effectively; the performance of the Group's dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components and raw materials; disruptions at the Group's manufacturing facilities in Maranello and Modena; the effects of the evolution of and response to the Covid-19 pandemic; the effects of Brexit; the performance of the Group's licensees for Ferrari-branded products; the Group's ability to protect its intellectual property rights and to avoid infringing on the intellectual property rights of others; the ability of Maserati, the Group's engine customer, to sell its planned volume of cars; the Group's continued compliance with customs regulations of various jurisdictions; the impact of increasingly stringent fuel economy, emissions and safety standards, including the cost of compliance, and any required changes to its products; the challenges and costs of integrating hybrid and electric technology more broadly into Group's car portfolio over time; product recalls, liability claims and product warranties; the adequacy of its insurance coverage to protect the Group against potential losses; the Group's ability to ensure that its employees, agents and representatives comply with applicable law and regulations; the Group's ability to maintain the functional and efficient operation of its information technology systems, including the Group's ability to defend from the risk of cyberattacks, including on its in-vehicle technology; the Group's ability to service and refinance its debt; the Group's ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; labor relations and collective bargaining agreements; exchange rate fluctuations, interest rate changes, credit risk and other market risks; changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which the Group operates, including possible future bans of combustion engine cars in cities and the potential advent of self-driving technology; potential conflicts of interest due to director and officer overlaps with the Group's largest shareholders and other factors discussed elsewhere in this document.

The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.

Q2 2020 Results

August 3, 2020

2

Q2 2020 AFFECTED BY COVID-19,

BUT IN LINE WITH EXPECTATIONS

Earnings weak across all metrics but in line with expectations. Sound core business confirming solid profit resilience.

Covid-19 pandemic disruption delayed the industrialization phase of the SF90 Stradale. Deliveries to commence in Q4 2020.

Vibrant demand strengthening the order book

Restart of pre-owned market sustains residual values

Obtained the equal salary certification on July 2 underlying the Company's attention to merit

FULL YEAR GUIDANCE NARROWED WITHIN THE PREVIOUS RANGE

Q2 2020 Results

August 3, 2020

3

Q2 2020 HIGHLIGHTS

SHIPMENTS(1)											NET REVENUES
(UNITS)											(€M)
Q2 '20
													Q2 '20
				1,389										571
									-48.0%								-42.0%
Q2 '19												Q2 '19
				2,671										984
ADJUSTED EBITDA(2)											ADJUSTED EBIT(2)
(€M and margin %)											(€M and margin %)
Q2 '20
				21.9%							Q2 '20
		124										23 4.0%
							-60.3%								-90.3%
Q2 '19													Q2 '19
			314		32.0%						239	24.3%

ADJUSTED DILUTED EARNINGS PER SHARE(2)

INDUSTRIAL FREE CASH FLOW(2)

(€)

(€M)

Q2 '20

0.04

Q2 '20

(158)

-95.8%

n.m.

Q2 '19

Q2 '19

0.96

139

Note: (1) Refer to notes to the presentation in the Appendix

(2) Reconciliations to non-GAAP financial measures are provided in the Appendix

Q2 2020 Results

Certain totals in the tables included in this document may not add due to rounding.

August 3, 2020

4

Q2 2020 - SHIPMENTS(1)

SHIPMENTSBYREGION(3)

(Q22020vs.Q22019)

AMERICAS-52.6%	EMEA-40.9%
(27% vs.30% PY)	(51% vs.45% PY)

RESTOFAPAC-27.9%	MAINLANDCHINA,
HONGKONGAND
(20% vs.14% PY)
TAIWAN-91.3%
	(2% vs.11% PY)

Total shipments decreased by 1,282 units (-48.0% vs. PY) impacted by the Covid-19 pandemic:

• First few deliveries of the F8 Spider and the 812
  GTS
• The 488 Pista family approaches the end of its lifecycle
• Mainland China, Hong Kong and Taiwan continued to post much lower shipments mostly as a consequence of the deliberate anticipation of deliveries in 2019, in addition to the effects of the Covid-19
• Gradual shipments recovery in conjunction with dealer network reopening according to local health protocols and governmental guidelines

SHIPMENTSBREAKDOWN

(Q22020)

V12

24%

V8

76%

	ICONA
	2%
SPORT&	GT
SPECIAL	26%
SERIES
72%

2 PRODUCTS UNVEILING IN H2 2020

Q2 2020 Results

Note: (1) (3) Refer to notes to the presentation in the Appendix

August 3, 2020

5

NET REVENUES BRIDGE Q2 2019 - 2020

(€M)

-42.0%

-60.6%

984	5	989
34		34
131		131
53		53
		(324)	(33)
766		771

-42.0%,-€413 million

-42.6%,-€421 million at constant currency(8)

-37.3%-48.7%

		568		571
		18	3	18
(48)	(16)	83		83
		20		20
		447		450

 Cars and spare parts: lower deliveries as
well as decreased contribution from
personalizations due to the Covid-19
production suspension. Partially offset by
deliveries of the Ferrari Monza SP1 and
SP2.
 Engines: reflecting lower	shipments to
Maserati
 Sponsorship, commercial	and brand:
significantly impacted by the Covid-19,
including the temporary suspension of the
Formula 1 season resulting in a reduced
number of Formula 1 races and
corresponding lower revenue accrual in
the second quarter as well as reduced in-
store traffic and museum visitors

Q2 2019 FX hedges Q2

Q2 2019 w/o Cars and spare Engines(5) Sponsorship,

Other (7)

Q2 2020 at

Change in FX Q2 2020

2019

FX hedges

parts (4)

commercial

constant

2019 vs. 2020

and brand (6)

currency 2019(8) & FX hedges

Q2 2020

Cars and spare parts

Engines

Sponsorship, commercial and brand

Other

Note: (4) (5) (6) (7) (8) Refer to notes to the presentation in the Appendix

Q2 2020 Results

 Other:	mostly	impacted	by	the
cancellation of the Moto GP at the
Mugello racetrack and reduced other
sports-related activities
 Currency:		net	positive	impact	from
translation,	transaction	and	hedges,
mainly USD

August 3, 2020

6

ADJ. EBIT BRIDGE Q2 2019 - 2020(2)

(€M)

239 5 244

	Margin			Margin											23
24.3%			24.7%					9		21
				(152)
						(7)	(15)		(58)		Margin	2	Margin
									3.7%		4.0%
	Adj. EBIT Q2	FX hedges	Adj. EBIT Q2	Vol.	Mix / Price	Ind. Costs /	SG&A	Other	Adj. EBIT Q2	Change in FX	Adj. EBIT Q2
2019	Q2 2019	2019 w/o FX			R&D				2020 at	2019 vs. 2020	2020
				hedges							constant	& FX hedges
											currency 2019(8)	Q2 2020
			Adj. EBITDA						Adj. EBITDA at
	Adj. EBITDA		w/o FX hedges						constant curr. 2019(8)	Adj. EBITDA
314		319							122			124
32.0%		32.4%							21.6%			21.9%

• Volume reflecting shipments decrease
• Mix / price performance due primarily to the lower contribution from personalization programs in line with the decrease of shipments, partially offset by the Ferrari Monza SP1 and SP2
• Industrial costs / R&D grew mainly due to higher depreciation and amortization of fixed assets. This also included the full cost of employees' paid days of absence during the Covid-19 production suspension and the ongoing commitment in Formula 1 racing activities, partially offset by the effects of technology incentives recognized in the quarter.
• SG&A decrease mainly driven by fewer marketing initiatives
• Other decreased due to the Covid-19 impact on the Formula 1 racing calendar, lower traffic for brand-related activities, cancellation of the Moto GP at the Mugello racetrack as

well as lower engine sales to Maserati	Note: (2) Reconciliations to non-GAAP financial measures are provided in the Appendix
Q2 2020 Results	August 3, 2020		7
(8) Refer to notes to the presentation in the Appendix

INDUSTRIAL FCF(2) AND NET INDUSTRIAL DEBT(2) BRIDGES

MAR 31, 2020 - JUN 30, 2020

Industrial Free Cash Flow

(€M)

117

1. (7)

				(158)
			(133)
Adj. EBITDA	∆ in working	Cash interest &	Capex(9)	Industrial FCF
(Industrial	capital,	Taxes		Q2 2020
Activities, only)	provisions &
Q2 2020	other

Change in Net Industrial Debt

(€M)

-

(8)

(776)

(209)

(401) (158)

March 31, 2020 Industrial FCF	Dividends(10)	Q2 2020 Share	Currency, other	June 30, 2020
Net Industrial		repurchases	and IFRS 16	Net Industrial
Debt				Debt

∆ vs. Q2 '19

(193)

(145)

+1

+40

(297)

(297)

(14)

+99

(2)

• Negative industrial free cash flow(2), mostly due to higher inventories and management actions to grant certain temporary, short-term payment extensions and early payments for commercial incentives to the dealer network
• The prior year was boosted by the collection of the Ferrari Monza SP1 and SP2 advances
• Continuous investments in the long-term product development
• Multi-yearshare repurchase program temporarily suspended

	Note: (2) Reconciliations to non-GAAP financial measures are provided in the Appendix
	(9) Excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases	(10) In May 2020 the Company paid €195 million out of the total
Q2 2020 Results	dividend distribution to owners of the parent and the remaining balance, which relates to withholding taxes, is expected to be paid in the third quarter of 2020	August 3, 2020	8

NARROWED 2020 GUIDANCE - ASSUMPTIONS

• Refinement of production schedule resulting in a recovery of some 500 cars partially offsetting the loss of approximately 2,000 units incurred during the plant shutdown
• Delays in the full production ramp up of the SF90 Stradale, implying a softer mix
• Delivery of engines to Maserati reflecting their current annual targets
• Unchanged assumptions:
• • Formula 1 revenues continue to reflect the uncertainties regarding the remaining part of the 2020 calendar: so far 13 races confirmed, with most races expected to be held without the presence of fans
  • Substantial reduction in Brand activities turnover reflecting a slow recovery
  • SG&A and R&D spending reflects cost containment initiatives taken and prioritization based on medium term impact analysis
• Capital expenditures for 2020 confirmed at approximately €750 million
• No further disruption from current pandemic has been considered

CURRENT ORDER BOOK AS STRONG AS EVER

Q2 2020 Results

August 3, 2020

9

NARROWED 2020 GUIDANCE

		MAY	NARROWED
		2020	2020
(€B, unless otherwise stated)	2019A	GUIDANCE	GUIDANCE
NET REVENUES	3.8	3.4-3.6	> 3.4
	1.27	1.05-1.20	1.075-1.125
ADJ. EBITDA (margin %)
33.7%	31%-33%	31%-32.5%
	0.92	0.6-0.8	0.65-0.70
ADJ. EBIT (margin %)
24.4%	18%-22%	18.5%-20%
	3.71	2.4-3.1(11)	2.6-2.8(12)
ADJ. DILUTED EPS (€)
	0.7	0.1-0.2	0.10-0.15
IND. FCF

Note: (11) Calculated using the weighted average diluted number of common shares as of March 31, 2020 (185,574 thousand)

(12) Calculated using the weighted average diluted number of common shares as of June 30, 2020 (185,460 thousand)

Q2 2020 Results

August 3, 2020

10

NARROWED 2020 GUIDANCE

ADJ. EBITDA H2 CONTRIBUTION

(€M)

1,269 1,075-1,125

644

311

317

314

124

Q1

Q2

H2

FY

Actual 2020

Actual 2019

Narrowed 2020 Guidance

H2 2020 IN LINE WITH H2 2019 DESPITE THE UNCERTAIN ENVIRONMENT

Q2 2020 Results

Graphs not to scale

August 3, 2020

11

APPENDIX

Q2 2020 Results

August 3, 2020

12

NOTES TO THE PRESENTATION

1. Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre- owned cars
2. Reconciliations to non-GAAP financial measures are provided in the Appendix
3. Shipments geographical breakdown
   EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separately identified);
   Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America;
   Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand and Malaysia
4. Includes net revenues generated from shipments of our cars, including any personalization net revenues generated on cars, as well as sales of spare parts
5. Includes net revenues generated from the sale of engines to Maserati for use in their cars, and the revenues generated from the rental of engines to other Formula 1 racing teams

1. Includes net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as revenues generated through the Ferrari brand, including merchandising, licensing and royalty income
2. Primarily relates to financial services activities, management of the Mugello racetrack and other sports-related activities
3. The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges
4. Excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases
5. In May 2020 the Company paid €195 million out of the total dividend distribution to owners of the parent and the remaining balance, which relates to withholding taxes, is expected to be paid in the third quarter of 2020
6. Calculated using the weighted average diluted number of common shares as of March 31, 2020 (185,574 thousand)
7. Calculated using the weighted average diluted number of common shares as of June 30, 2020 (185,460 thousand)

Q2 2020 Results

August 3, 2020

13

STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION

Range models introduced

Model / Year of delivery	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
SPORT RANGE

F430

F430 Spider

599 GTB Fiorano

458 Italia

458 Spider

F12berlinetta

488 GTB

488 Spider

812 Superfast

F8 Tributo

SF90 Stradale

812 GTS

F8 Spider

GRAN TURISMO RANGE

612 Scaglietti

California

FF

California 30

California T

GTC4Lusso

GTC4Lusso T

Portofino

Roma

Q2 2020 Results

August 3, 2020

14

STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION

Special and Limited edition models introduced

	Model / Year of delivery	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019		2020
	SPECIAL SERIES
	Superamerica
	F430 Scuderia
	Scuderia Spider 16M
	599 GTO
	SA APERTA
	458 Speciale
	458 Speciale A
	F12tdf
	488 Pista
	488 Pista Spider
	ICONA
	Ferrari Monza SP1
	Ferrari Monza SP2
	Model / Year of delivery	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019		2020
	HYPERCAR
	LaFerrari
	LaFerrari Aperta
	TRACK CARS
	FXX K( 13)
	FXX K EVO( 13)
	FUORISERIE
	F60 America( 13)
	J50( 13)
Q2 2020 Results				Note: (13) Models not included in the total shipments' figure provided				August 3, 2020		15

GROUP SHIPMENTS BY REGION(1)(3)

-48.0%

2,671

384

289

-107

-27.9%

803 -264 -91.3%

-422

-52.6%

5,281

737

617

1,389	1,523

277

25

381

-21.9%

-25

-3.4%

-555

-90.0%

-392

-25.7%

4,127

712

62

1,131

1,195	-489	2,404	-182	2,222
-7.6%
	-40.9%	706

Q2 2019		Q2 2020		H1 2019		H1 2020
		EMEA		Americas		Mainland China, Hong Kong and Taiwan		Rest of APAC
				Note: (1) (3) Refer to notes to the presentation in the Appendix
Q2 2020 Results				Graphs not to scale.		August 3, 2020	16

DEBT AND LIQUIDITY POSITION

									NetIndustrialDebt(€M)												NetIndustrialDebt(€M)
													At Jun. 30	At Mar. 31	At Dec. 31
			(€M)					2020		2020	2019	2018	2017																	(776)
			Debt					(2,757)		(2,141)	(2,090)	(1,927)	(1,806)							(1,645)
			Cash & Cash Equivalents (A)				1,112		880	898	794	648
																(869)
			Net Debt					(1,645)		(1,261)	(1,192)	(1,133)	(1,158)
			Net Debt of Financial Services Activities	(869)		(860)	(855)	(763)	(650)
			Net Industrial Debt				(776)		(401)	(337)	(370)	(508)
			Undrawn Committed Credit Lines (B)	700		350	350	500	500								June 30, 2020		Net Debt of Financial				June 30, 2020
																												Net Debt		Services Activities				Net Industrial Debt
			Total Available Liquidity (A+B)	1,812		1,230	1,248	1,294	1,148
									GrossDebtMaturityProfile(*) (€M)										CashandMarketableSecurities(€M)
Cash Maturities	850																				At Jun. 30	At Mar. 31
																											(€M)	2020		2020		FY 2019 FY 2018 FY 2017
															650
									350				440												Euro	912		662		690		616	435
																											Chinese Yuan	96		108		110		73	62
210			217	55
	500		650	150	150								US Dollar	78		86		63		50	88
					31					385
						217									Japanese Yen	9		9		12		24	26
	179								150	150
											Other Currencies	17		15		23		31	37
2020		2021	2022	2023		2025	2029	2031
						Total (€ equivalent)	1,112		880		898		794	648
							Bond / Notes (USPP)			US Securitizations			Other Financial Liabilities
																			(*) Not including lease liabilities and other debt
Q2 2020 Results									Certain totals in the tables included in this document may not add due to rounding						August 3, 2020	17

HISTORICAL TREND

NetDebt/Adj.LTMEBITDA

1.6x			1.5x
	1.1x	1.0x
		0.9x

FY 2016

FY 2017

FY 2018

FY 2019

LTM June 2020

NetIndustrialDebt/Adj.LTMEBITDA

0.8x

0.7x

0.5x

0.3x0.3x

FY 2016

FY 2017

FY 2018

FY 2019

LTM June 2020

As of June 30, 2020, total available liquidity was €1,812 million (€1,230 million as of March 31, 2020), including undrawn committed credit lines of €700 million as well as the proceeds from the issuance of €650 million 1.50% notes on May 27, 2020, due in May 2025

Q2 2020 Results

August 3, 2020

18

Q2 '20	Q2 '19

134173

7786

122140

199226

4430

166170

CAPEX AND R&D

€M

Capital expenditures

of which capitalized development costs(14) (A)

Research and development

costs expensed (B)

Total research and development (A+B)

Amortization of capitalized

development costs (C)

Research and development costs as recognized in the consolidated income statement (B+C)

Certain totals in the tables included in this document may not add due to rounding

H1 '20	H1 '19

323308

143151

262294

405445

8561

347355

Q2 2020 Results	Note: (14) Capitalized as intangible assets	August 3, 2020		19

non-GAAP FINANCIAL MEASURES

non-GAAPfinancialmeasures

Operations are monitored through the use of various non-GAAP financial measures that may not be comparable to other similarly titled measures of other companies.

Accordingly, investors and analysts should exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial measures reported by other companies.

We believe that these supplemental financial measures provide comparable measures of our financial performance which then facilitate management's ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions.

Reconciliations are only provided to the most directly comparable IFRS financial statement line item for Adjusted EBITDA, Adjusted EBIT and Adjusted EPS diluted for historical periods, as the income or expense excluded from these non-GAAP financial measures in accordance with our policy are, by definition, not predictable and uncertain.

Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges.

EBITDA is defined as net profit before income tax expense, net financial expenses and depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for certain income and costs which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Adjusted Earnings Before Interest and Taxes ("Adjusted EBIT") represents EBIT as adjusted for certain income and costs which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Adjusted net profit represents net profit as adjusted for certain income and costs (net of tax effect) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Adjusted earnings per share diluted represents earnings per share as adjusted for certain income and costs (net of tax effect) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Net Industrial Debt is defined as total Debt less Cash and cash equivalents (Net Debt), further adjusted to exclude the debt and cash and cash equivalents related to our financial services activities (Net Debt of Financial Services Activities).

Free Cash Flow is defined as cash flows from operating activities less investments in property, plant and equipment (excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases) and intangible assets. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted to exclude the operating cash flow from our financial services activities (Free Cash Flow from Financial Services Activities).

Q2 2020 Results

August 3, 2020

20

KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES

Q2 '20		Q2 '19		€M, unless otherwise stated	H1 '20		H1 '19
571		984		Net revenues		1,503		1,924
124		314		EBITDA		441		625
-		-		Adjustments		-		-
124		314		Adjusted EBITDA		441		625
117		310		of which Adj. EBITDA (Industrial Activities, only)		430		618
101		75		Amortization and depreciation		198		154
23		239		EBIT		243		471
23		239		Adjusted EBIT		243		471
11		9		Net financial expenses		24		16
12		230		Profit before taxes		219		455
3		46		Income tax expense		44		91
20%		20%		Effective tax rate		20%		20%
9		184		Net profit		175		364
-		-		Adjustments		-		-
9		184		Adjusted net profit		175		364
0.05		0.97		Basic EPS (€)		0.95		1.92
0.04		0.96		Diluted EPS (€)		0.94		1.91
0.05		0.97		Adjusted Basic EPS (€)		0.95		1.92
0.04		0.96		Adjusted Diluted EPS (€)		0.94		1.91

Q2 2020 Results

Certain totals in the tables included in this document may not add due to rounding

August 3, 2020

21

RECONCILIATIONS OF non-GAAP MEASURES:

TOTAL NET REVENUES AT CONSTANT CURRENCY(8)

Q2 '20

450

20

83

18

571

Q2 '20			€M		H1 '20
at constant currency
447			Cars and spare parts			1,238
20			Engines			53
83			Sponsorship, commercial and brand			172
18			Other			40
568			Total Net Revenues			1,503
	Certain totals in the tables included in this document may not add due to rounding

H1 '20

at constant currency

1,226

53

172

39

1,490

Note: (8) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges

Q2 2020 Results

August 3, 2020

22

BASIC AND DILUTED EPS

Q2 '20		Q2 '19		€M, unless otherwise stated	H1 '20		H1 '19
9		183		Net profit attributable to owners		175		361
		of the Company
184,748		187,409		Weighted average number of common		184,864		187,544
		shares (thousand)
0.05		0.97		Basic EPS (€)		0.95		1.92
				Weighted average number of common
185,344		188,207		shares for diluted earnings per common		185,460		188,342
				share (thousand)
0.04		0.96		Diluted EPS (€)		0.94		1.91

Certain totals in the tables included in this document may not add due to rounding

Note: For the three and six months ended June 30, 2020 and 2019 the weighted average number of common shares for diluted earnings per common share was increased to take into consideration the theoretical effect of the potential common shares that would be issued under the equity incentive plans

Q2 2020 Results

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RECONCILIATIONS OF non-GAAP MEASURES:

ADJUSTED EPS

Q2 '20		Q2 '19			€ per common share		H1 '20		H1 '19
0.05		0.97			Basic EPS			0.95		1.92
-		-			Adjustments			-		-
0.05		0.97			Adjusted EPS			0.95		1.92
0.04		0.96			Diluted EPS			0.94		1.91
-		-			Adjustments			-		-
0.04		0.96			Adjusted diluted EPS			0.94		1.91
			Certain totals in the tables included in this document may not add due to rounding

Q2 2020 Results

August 3, 2020

24

( 15)

RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES

Q2 '20		Q2 '19
(53)		299
(133)		(173)
(186)		126
(28)		(13)
(158)		139

€M

Cash flow from operating activities

Investments in property, plant and equipment and intangible assets

Free Cash Flow

Free Cash Flow from Financial Services

Activities

Free Cash Flow from Industrial Activities( 16)

H1 '20		H1 '19
210		683
(307)		(308)
(97)		375
(12)		(46)
(85)		421

Certain totals in the tables included in this document may not add due to rounding

Note: (15) Prior to the first quarter of 2020, we defined Free Cash Flow and Free Cash Flow from Industrial Activities without excluding from investments in property, plant and equipment the right- of-use assets recognized during the period in accordance with IFRS 16 - Leases. Applying the current definition of Free Cash Flow and Free Cash Flow from Industrial Activities to the three and six months ended June 30, 2019 would result in an immaterial difference compared to the figures presented above.

1. Free cash flow from industrial activities for the three and six months ended June 30, 2020 includes Euro 14 million related to withholding taxes, which are expected to be paid in Q3 2020. Free cash flow from industrial activities for the three and six months ended June 30, 2019 includes Euro 12 million related to withholding taxes, which were paid in Q3 2019.

Q2 2020 Results

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RECONCILIATIONS OF non-GAAP MEASURES:

NET INDUSTRIAL DEBT

€M

Debt

of which: Lease liabilities as per IFRS 16

(simplified approach)

Cash and cash equivalents

Net Debt (A)

Net Debt of Financial Services Activities

Net Industrial Debt (B)

LTM Adj. EBITDA (C)

Financial Leverage on Net Industrial Debt

(B/C)

Financial Leverage on Net Debt (A/C)

June 30, 2020		March 31, 2020		December 31, 2019		December 31, 2018		December 31, 2017		December 31, 2016
(2,757)		(2,141)		(2,090)		(1,927)		(1,806)		(1,848)
68		72		60		-		-		-
1,112		880		898		794		648		458
(1,645)		(1,261)		(1,192)		(1,133)		(1,158)		(1,390)
(869)		(860)		(855)		(763)		(650)		(700)
(776)		(401)		(337)		(370)		(508)		(690)
1,085		1,275		1,269		1,114		1,036		880
0.7x		0.3x		0.3x		0.3x		0.5x		0.8x
1.5x		1.0x		0.9x		1.0x		1.1x		1.6x

Certain totals in the tables included in this document may not add due to rounding

Q2 2020 Results

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