Deep Dive - Ferrari

Maranello’s prancing horse - a safe haven during these uncertain times?

Executive Summary

Ferrari is more than just an iconic automaker - it is a financial powerhouse that has mastered the art of exclusivity and profitability. Since its (US) IPO in 2015, the company has consistently outperformed expectations, leveraging a low-volume, high-margin business model that prioritizes brand prestige and customer demand over mass production. With industry-leading EBITDA margins, a robust order backlog, and an expanding portfolio of ultra-luxury vehicles, Ferrari continues to deliver exceptional financial results while maintaining its elite status.

Exhibit I - Ferrari’s Factory in Maranello

In this in-depth report, we analyze Ferrari’s financial performance, revenue streams, and strategic positioning in the luxury automotive market. We examine its pricing power, limited production strategy, and the impact of its transition towards electrification. One of the key findings is that returns on total CAPEX (R&D and tangible CAPEX) have strengthened meaningfully over the years.

The deep dive will cover:

• Part I - Where it All Started for Ferrari

• Part II - Business Segments

• Part III - Staying Ahead of the Competition

• Part IV - Product Portfolio

• Part V - Financials

• Part VI - Reinvestment Pace

• Part VII - Meeting the 2022 Capital Markets Day Targets

• Part VIII - Base Case Valuation

• Part IX - Risks & Uncertainties

• Part X - Conclusions

Our next deep dive will cover Diploma Plc.