Good day, thank you for standing by. Welcome to the Ferrari 2022 Full Year Results Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there'll be a question -and- answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. 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 IR. Please go ahead. Thank you, Sharon, and welcome to everyone who is joining us. Today we plan to cover the group's full year 2022 operating results and 2023 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 the group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the investor 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 two 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. Thank you everyone for joining us today. In this call, we will discuss in detail two things, the result of the full year 2022 and priorities and guidance of year 2023. It has been a year of celebration, progress and innovation for Ferrari, and for this, I would like to thank all the women and men of Ferrari for their outstanding work. All our partners who have helped us considerably during the past challenging years, during which we had the opportunity to strengthen our relation with many of our suppliers. Last but not least, all our clients for their continuous trust in our brand. During our 75th anniversary years, among the many different moments, a milestone that signaled our company's evolution, I would like to highlight the following three. Firstly, we unveiled the two exciting models, the 296 GTS in April and the Ferrari Purosangue in September. These models strengthen an already astonishing product range that both meets and exceeds our customer demand for design, performance and driving thrills. Secondly, we presented our strategic plan. It was June, for 2022-2026, setting transparent, concrete and measurable goal. Thirdly, we outlined our journey toward the carbon neutrality within 2030 through a scientific and holistic approach. We are clear on our overall carbon footprint, and we have a defined roadmap moving forward. From a financial perspective, we ended the 2022 with a remarkable set of results, setting a new record across all metrics with EUR 5.1 billion revenues, strong net profit at EUR 939 million, and more than EUR 750 million of industrial free cash flow generation. I will address first Racing, where our origins lie, then Sports Cars, where we have evolved, and at the end, Lifestyle, our new venture to continue to elevate our brand. Let's start with the Racing world. 2022 was an important year for Ferrari in the Racing activities. We celebrated memorable victories in the Endurance Championship, and we unveiled two new Racing cars. The 296 GT3, the successor of the most winning Ferrari in history, the 488 GT3, and the 499P, our new Le Mans Hypercar, signaling our return to the top tier of the FIA WC in 2023 after 50 years. In Formula One, we proved that our competitive edge improved during the last season, and it was encouraging for us and the million of fans to see our drivers taking more places on the podium. Our goal is to achieve the ultimate prize and the entire team, together with Fred, who recently joined us, are working relentlessly in that direction. In esport, we are engaging in three championships, F1, Endurance and SRO. We continue to lead the way in terms of bridging the real world with the virtual world. How we do it? Well, by having our own esport headquarters in Maranello, where our esport drivers share programs and activities with our Scuderia Ferrari Driver Academy. This is one important way to engage the younger generations. After all the racing activities, let's talk about our beautiful, high performance and unique sports cars. Let's focus on our future, our order book. We continue to enjoy strong demand across all regions, with an overall order portfolio continuing to be at an all-time high and covering well into 2024. Our sports cars product portfolio continues to have strong traction on all fronts, with the 296 family and Purosangue driving the net order intake. The Purosangue order intake has been extraordinarily high, well beyond our expectation. The enthusiasm of our clients is expressed also by their attendance level at all our events. In fact, in 2022, we had an unprecedented number of arrival client engagement experiences. On the brand events side, we extended our Casa Ferrari hospitality in several global venues. In Australia, we had for the first time our Universo Ferrari concept. On the dynamic events, we ranged from our Cavalcades to our engaging track activities. One for all, the Finali Mondiali we had in Imola in the last quarter, which was definitely a great success and brought more than 40,000 fans all together. All of these client experiences are designed to continue to fuel the passion and sense of belonging within the Ferrari family. Among the innovation of 2022, it's worth mentioning too, the first edition of the Cavalcade Icona with the participation of 80 Ferrari Monza, both SP1 and SP2, coming from more than 20 nations. The first Ferrari GT Tour Women's Edition with 26 Ferrarista coming together to take part in an exclusive road trip in Ibiza. Now, after the sports cars, let's talk about the lifestyle activities. Here, we are determined to keep on working to extend our heritage and values in the wider luxury industry. Four highlights worth mentioning for 2022. 1, we continued our journey in brand elevation through two fashion shows with strong and positive reviews from press and clients. Two, we grew our assortment on high image items such as the jumpsuit and high traffic builders, such as Giallo Modena collection, launched at Monza Grand Prix to celebrate the 75th anniversary. Three, we further consolidated our licensing agreements in line with our luxury positioning. Last but not least, we reached the record level of visitors at our museum, welcoming more than 600,000 guests in 2022. As you can see, last year, we made many steps forward in racing, sports cars, and lifestyle. In 2022, we also detailed our commitment to reaching carbon neutrality by end of this decade. We are also proud to have committed to set science-based targets. The focus is not only on the impact of driving our sports cars, but also on our entire supply chain and production facilities. Here, we are working very closely with all our suppliers. In 2022, we also completed several projects in terms of carbon neutrality, from the new fuel cell plant and photovoltaic system at Maranello to the main innovation identified by our colleague, such as the adoption of new filters in our foundry, saving more than 250 tons of aluminum per year, and the heat dispersion recovery in our engine testing process. All these initiatives implemented in 2022 led to a reduction of approximately 5% of energy consumption per car. This is a remarkable result, I'm really proud to underline that no CapEx was required, only brain powers of all the colleague. All of these developments, as well as the record result of the years, have been possible thanks to the passion, to the dedication of all the Ferrari people. To reward their achievement, in line with the company's strong performance indicators, I'm pleased to announce the yearly competitive award of up to nearly EUR 13,500 for our employees. I'm also proud to share that for the fourth year in a row, Ferrari confirmed itself as one of the best place to work, thanks to career opportunities and welfare services we offer to our employees. We leave behind a year characterized by global tensions, geopolitical conflict, supply chain issues, and cost inflation. With our people, clients, and partners, we've been able to weather through these times, thanks to the collaboration, will to progress, continuous learning, focus, and confidence that sets us apart. Now we are ready for 2023. It will represent another significant step of our journey, during which we will continue to execute our strategy with the highest determination. Four are the priorities for 2023. We will compete at the top in the different racing championship. We will continue to enhance our client experiences, both on track and on road, and reaching them with four new model launches. We will broaden the lifestyle client base with a coherent and integrated offering of personal goods and unique experiences. We will further accelerate the innovation pace, with a strong focus on electrification and HMI, as proved by the four times higher number of patents that we filed in 2022 compared to 2021. We look ahead at 2023 with enthusiasm, energy, agility, and confident humility required in these challenging times. Now, I hand over to Antonio to review the 2022 results and 2023 guidance. Thank you, Benedetto. Good morning or afternoon to everyone joining us today. Let's start on page five with the full year 2022 highlights, showing a very strong year, with double-digit growth compared to 2021 and representing a solid foundation of the new business plan. These record earnings exceeded our latest guidance, thanks to a better business performance, personalizations, and a tailwind from foreign exchange rates, also in the last part of the year. Having said that, I would like to highlight our most remarkable achievements. EBITDA of EUR 1,773 million, and EBIT of EUR 1,227 million, with margins aligned to guidance, reflecting product mix and the evolution of our DNA. Net profit of EUR 939 million, resulting in a diluted EPS of EUR 5.09, and an industrial free cash flow generation of EUR 758 million. Turning to page six, you can see the details of the 2022 shipments. The product portfolio over the year included nine internal combustion engine models and three hybrid models, representing 78% and 22% of shipments respectively. The deliveries increase was mainly driven by the Ferrari Portofino M and the SF90 family, as well as the 296 GTB and 812 Competizione, which were in the ramp-up phase. The deliveries of the Icona pillar were lower compared to the prior year as the Ferrari Monza phase out in Q1 and first few units of the Daytona SP3 commenced in Q4. All geographic regions grew compared to 2021 as we continued to serve an impressive order book across all models. As customary for Ferrari, the geographical allocation was deliberate and followed the pace of introduction of new models. Particularly, Mainland China, Hong Kong, and Taiwan continued to post high double-digit growth versus the prior year. I just remind you that the greater weight of the region is supportive in absolute value, while dilutive in terms of percentage margins. This is more visible in the gross profit of Q4, when Mainland China, Hong Kong, and Taiwan reached 14% of total shipments. On page seven, you can see the walk of our group net revenues, growing 16% at constant currency. As explained throughout the year, changing cars and spare parts was driven by higher volumes and personalizations. Personalizations were at around 18% in proportion to revenues from cars and spare parts. Engines was negative, in line with the reduction of supplies to Maserati, which will stop in 2023. Sponsorship, commercial, and brand reflected the better prior year Formula One ranking and the contribution from lifestyle activities led by retail sales and museums visitors, despite lower sponsorship. Currency had a positive impact, mostly related to the U.S. dollar and the Chinese yuan. Let's move on to page eight and review the change in our EBIT year-over-year, explained by the following variances. Volume positive for EUR 261 million, reflecting the shipments increase of approximately 2,000 units versus the prior year. Mix and price variance, negative for EUR 16 million, mainly impacted by lower deliveries of the Ferrari Monza SP1 and SP2, partially offset by the increased contribution from personalizations, country, and range model mix. Industrial and R&D expenses grew EUR 116 million during the year due to higher depreciation and amortization, as well as direct and indirect cost inflation, mainly from energy and aluminum. The latter became particularly visible in Q4 as we supported our supply chain. SG&A were negative by EUR 47 million, reflecting communication and marketing activities, lifestyle and corporate events, as well as our organizational development. Finally, other was negative EUR 49 million, mainly explained by the variance in contribution from racing activities and non-recurring items, as well as the reduced engine shipments to Maserati. This was partially offset by a better contribution from lifestyle activities. The total net impact of currency was positive for EUR 119 million. Turning to page nine, apologies. Our industrial free cash flow generation for the year reflects the strong profitability and a positive contribution from working capital and other, mainly related to the collection of the Daytona SP3 and 812 Competizione advances. This was partially offset by EUR 806 million of CapEx in line with guidance. In the year, the capitalization ratio of our development expenses was 45% increase versus the prior year as we entered the development phase on a number of future models and per effect of the budget cap in Formula One. Net industrial debt as of the end of December 2022 was EUR 207 million, decreased by EUR 90 million compared to December 2021, reflecting the solid industrial free cash flow generation, net of the share purchase program and dividends payment. To conclude, on page 10, we outlined the guidance for 2023, which targets solid growth and consistent progress in profitability. The main drivers are as following: Mix will be extremely strong, thanks to a very rich product portfolio, full year contribution of Ferrari Daytona SP3, and continuous positive effect from personalizations. Price will positively contribute throughout the year in line with the mid-single digit price increase communicated in Q3 to counterbalance the impact of the current cost inflation. DNA will increase in line with the start of production of new models. Revenues from racing and lifestyle activities will show a limited improvement, and industrial free cash flow generation will be sustained by our profitability, partially offset by capital expenditures slightly higher than EUR 800 million and negative working capital in its broader meaning, mainly due to lower deposits on limited series models, along with the reversal of those already collected in the previous 18 months. The tax rate for the year is expected to be around 22%. That is higher than in 2022, mainly because of the introduction of new rules on the patent box regime. The underlying assumption on the exchange rate of the U.S. dollar to the euro is that it will fluctuate around 1.10, implying an overall neutral foreign exchange effect compared to 2022. This foreign exch-assumption, together with the net impact of price actions taken to offset energy and raw material cost increases, explains most of the improvement in absolute terms between the 2023 guidance versus the previous EBITDA target of EUR 1.8 billion-EUR 2 billion. Percentage profitability will be growing over the course of the year, with Q1 currently expected to be the softest quarter, driven by the planned development of our product and country mix. This is also linked to the allocation of deliveries to mainland China, Hong Kong, and Taiwan, designed to be front-loaded. Lastly, cost inflation remains largely a known unknown. In this context, we are relentlessly executing the strategy we outlined at the Capital Markets Day, as committed and focused as ever. The 2023 guidance represents another solid step on the trajectory to 2026. With that said, I turn the call over to Nicoletta. Thank you, Antonio. Sharon, we are now ready to take questions. Thank you. To ask a question, you will need to press star one one on your telephone and wait for your name to be announced. We will now take the first question. One moment, please. Your first question comes from the line of Stephen Reitman from Société Générale. Please go ahead. Your line is open. Yes, thank you. Good afternoon. Apologize for the background noise. 2 questions, please. You commented that the order intake had been much higher than you'd anticipated on the Purosangue. Could you comment on if there are any regional differences and particularly interested in the reaction in China to that product. Secondly, also on China itself, we saw that China took up a larger share of total sales, quite a strong pre acceleration there. According to the numbers I'm looking at, it seems that the growth was driven particularly by the V8, by the F8 Tributo and I guess 296 GTB. Do you think this already indicates an increasing desire of Chinese customers also to accept the sort of two-seater sports car concepts as well, which has obviously been maybe an issue in the past? Thank you. Hi, Stephen. Apologies, we had some problem with the audio. Can you kindly repeat your second question? We got the one on Purosangue. Thank you. Yes. After the Purosangue. Yes. On China, again, looking at the growth of your sales in China in 2022, according to the data I'm seeing, it looks like it was driven primarily by the F8 and 296 GTB rather than the Roma. I was just wondering, do you think this indicates a growing acceptance of Chinese customers for the two-door, two-seater sports car concept, which has obviously been something that has held Ferrari back in the past, maybe in China? Thank you. The first one was the acceptance of the traction of Purosangue all over the region. I have to say two things. It has been the acceptance, it has been higher than what we were thinking, this is true across all the region. Okay. This is one important message. The second one, coming to the China, let's say, the preference of Chinese clients toward our cars, sport cars. I have to say that we don't see a special pattern because we see clients interested in our ICE as well as in our hybrid. Consider also that we manage deliberately the delivery of the cars for that region. We don't see a clear pattern of selection of cars. Thank you. Thank you, Stephen. Thank you. We will now go to our next question. One moment please. Your next question comes from the line of Susy Tibaldi from UBS. Please go ahead, your line is open. Hi, good afternoon, and thank you for taking my question. I have three, please. On 2023, on the guidance, I was wondering, should we see it as sort of a one-off super strong year, a bit like 2022 was a weaker transition year? Basically, because when I look at the 2026 guidance, and I'm trying to understand if we should expect the growth forward, going forward to be somewhat linear, or we could find ourselves in a scenario where, again, maybe we could have another transition year, where we could see some pressure on the margin. Are you gonna be able to comp this year's super strong price mix? I personally would say yes, but I will be keen to hear your view. Secondly, on pricing, can you talk us through the philosophy on how you decide to price new models? I'm asking because in the past I remember there was this rule of thumb that each car was a bit more expensive than the predecessor and with a higher margin contribution, and these increases were usually around mid-single digit. When we look at, you know, if we think about the laws of supply and demand, given this extremely strong demand that you're seeing, it feels that maybe a new approach is needed. I was interested to hear how you think about setting prices for a new product. Lastly, a shorter one, on the Daytona, sort of, phasing that we should expect over the next few years. Is it going to be quite evenly distributed over its life cycle, or is it 2023 going to be like a heavier year for Daytona? Thank you. Thank you, Susy. I take the third one, and then the first and the second one will be with Antonio. The third one, the Daytona, we are starting as planned, and you can assume that is more or less evenly distributed. The first and the second, Antonio will comment more. Yeah. Hi, Susy. 2023 guidance compared to 2026. I think there are two elements that should be taken into consideration. The first one is that we already mentioned at the Capital Markets Day that the plan is front-loaded, which means basically you cannot assume a linear development, but it's rather a jump at the beginning and then a smoother growth. Secondly, some of the assumptions that were outlined at the Capital Markets Day obviously need to be updated once we get closer and closer. One of the first is obviously the impact of pricing. Compared to where we were at the Capital Markets Day, we had an adjustment in Q3 that we, I think, were public about. Another one is the impact of foreign exchange rates. I think we said at the Capital Markets Day, we had assumed 1.15 as the average U.S. dollar to euro exchange rate, and this one is based on 1.10. These set of assumption, of course, will be revised from time to time, depending on how and where we go. The second question is on pricing strategy. I think on this we have been quite careful in defining it depending on the model and its distribution over time. Obviously we take care about the demand and the order book that we have for the various models. The price increases have been applied in Q3, have been applied differently to selected markets and models. If I may, to the next questions, I kindly ask to state clearly your question since we are having some audio problems. Thank you very much. Thank you. I will go to the next question. One moment, please. Your next question comes from the line of Giulio Pescatore from BNP Paribas Exane. Please go ahead, your line is open. Hi, thank you. Hi, thanks for taking my question. The first one is a bit broad and general. I mean, with Ferrari, we don't often think about the macro issues because you create your own demand in a way. If you think about the creation of and concentration of wealth in the last years, that clearly has been a driver of demand for you. I think you're uniquely placed to have a view on this topic, so I was wondering if you could share your thoughts on what we should expect in terms of wealth concentration as well and demand for the next years, and what are you assuming in your targets? The second one, I would like to go back on pricing. You mentioned that, you know, the 2026 targets have some assumption on pricing, and you have taken pricing to offset costs. Am I right in assuming that even if costs were to go down, I mean, you're not gonna be lowering your prices, right? You know, pricing should be sticky for you. Just a comment on that, please. Last one for Antonio, please. On the R&D expenses, what happened in Q4? Because the number was very, very low. How should we think about this cost for 2023, please? I hope I was clear. Thank you. Maybe Giulio, I'll start with the second and the third one. Maybe from the last one, R&D expenses. You're right. There are two reasons. One is that as we go more and more into the development phase of new models, we switch from pure innovation expenses to development expenses. Obviously, a different accounting treatment. This may explain changes in the allocation of the hours and time by our engineers. And obviously, the fact that we are capped in terms of development costs on the chassis in 2022 has also an impact because it obviously, you spend more at the very beginning of the year and rather less at the end. The second before last, I think, was on pricing. You are perfectly right, and thanks for adding to my answer before, because I spoke about pricing without obviously mentioning that pricing also has to take into account where costs are going. I simply said inflation is a known unknown, meaning obviously we make assumptions in that respect. On that basis, whether you're right or wrong, obviously we try and be careful, but we cannot predict where it will go. This is another element to be taken into account, and that's why we do not add anything more in respect of 2026. Coming to the first question, Giulio, as you said, our view on the concentration of wealth in the world, well, this is a trend that everyone can read on any newspapers. What I can tell you is that for us, what is important is that we keep always unique and we keep always the exclusivity for our cars. I think that what our founder said, we want to sell always one car less than the market demand was true, is true, and will be true. Concentration is happening. Yes, it's up to us what we are doing to manage properly the demand to keep it always exclusive. Thank you. Thank you. We will now go to the next question. Your next question comes from the line of Michael Binetti from Credit Suisse. Please go ahead, your line is open. Hey, guys. Thanks for taking our question. Wonderful end of the year. Love the guidance for 2023, obviously. Just a couple quick ones on the model. How should we think about personalization versus 18% in 2022 as we look out this year, and you think about the mix of cars? I'm wondering, does this guidance include getting the Keystone sponsor back in Formula 1 that exited last year? I guess a bigger picture question as we think through the numbers, so the guidance is for EBITDA margins around 38% this year. I think the long-term plan was 38%-40%. Obviously, this is the kind of year that has many, many tailwinds for profitability. Most importantly, the supercar mix is always helpful. Can you speak to what would be the upside case that would take margins from the level you just guided us to this year at 38% to the high end of that range at 40%? What are some of the things that are incremental to the P&L this year that would support that higher margin range from here? Michael, Antonio will take this question. Yeah. On personalization, the way we model it is basically we assume to have it as a rather constant proportion to revenues. You have seen over the last few years, we have been floating between 17% and 19%, depending on the models. The assumption we are making, and I think I mentioned the same at the Capital Markets Day. This is obviously mostly to relate to the development of the mix. The higher the price point, the lower the proportion of personalization to the overall revenues. It depends on the mix, basically, but that is the assumption. With respect to the development of margins, the big jump was already there in the original guidance. Development over time, once again, absent any consideration, any further consideration on additional price changes and cost changes, is that this will drive our trajectory to what we mentioned and gave as a guidance to 2026. The mix is really the driver there. No surprises. Okay. About the marketing sponsor for Formula 1? The market- Is there getting the Keystone sponsor back in Formula 1 that was missing last year, is that included in this guidance at this time? Sponsorship. We included, Michael, sorry, because we had some troubles to hear, actually. Yeah. The electronic is always a problem. Sorry. Gotta fix that. You gotta fix that by 2025. I know, I know. Unfortunately, sometimes the electronics, you cannot rely on it. No. Oh, no. Yes. The sponsorship, we keep enlarging our sponsor base. We keep diversifying our sponsor base. You have seen that in the last weeks, we announced that new sponsors and all the plan and the guidance that Antonio showed you is all coherent with also what we see on the evolution of sponsorship. The picture is considering all the elements, including the sponsorship evolution. Thank you very much, guys. Thank you, Michael. Thank you. We will now go to the next question. Your next question comes from the line of Thomas Besson from Kepler. Please go ahead. Your line is open. Thank you very much. It's Thomas Besson, Kepler. I have two simple questions, please. Could you help us understand the pace of ramp up for SP3 and Purosangue? You highlighted that mix would be, I thought, the biggest driver for 2023, it's totally clear. I mean, can you give us some direction on the number of units planned per quarter? Is your indication that Q1 is a softer quarter largely linked with the fact that you'll have a lower share of SP3 and Purosangue, for instance? The second question. You've mentioned ForEx as neutral in 2023 versus a fairly decent boost in 2022. Is it too early already to make an assumptions for 2024 Forex impact, or can we already assume that it should be a small negative? Thank you very much. That's it for me. I take the first one. The Purosangue, this is the year we are ramping up the production. We had an important milestone end of last year that we met successfully. We are ramping up. Clearly this is the ramp up year, we will be lower than 20% of the total volume production. We will. We will ramp up along the four quarters, that to reach the right production volume by end of this year. Everything is on track, and we are moving according to the plan. Antonio takes the second. Yeah. On your second question, Thomas, I think it's too early to say, honestly. Visibility is already a complex element when looking at one year for the foreign exchange rate. Obviously, if you compare to the average assumption that we made on the plan to 2026, in principle, mathematically, yes, but reality will be a different thing, and it's too early to say now. Okay. Thank you very much, both of you. Thank you. Thank you. Thank you. We will now go to the next question. Your next question comes from the line of George Galliers from Goldman Sachs. Please go ahead. Your line is open. Thank you for taking my questions. The first two questions, I just wanted to clarify a couple of points from earlier on the call. Earlier you did mention that the Daytona would be relatively evenly distributed. Can you just confirm, is that over 2023 and 2024, or does that also include 2025? The second question was just on the specials. At 3% of 2022 volumes, that equates to around 400 units. Is that the right kind of level to think about for this year as well? Or as you ramp the Competizione Aperta, should we expect that number to be higher? The last question I had was just with respect to the other line in 2022. Obviously, it was a negative, and you did mention some non-recurring items. Could you perhaps just quantify how large the non-recurring items were there? Any detail on what they relate to would be much appreciated. Thank you. George, I will leave the last one, the non-recurring items to Antonio. I will manage the other two related to the product. Just is important clarification. We are talking about any new model going in production, clearly there is a ramp-up phase, and then there is a stabilization. This is true for all the products we do. In these years, we will ramp up these new cars, and we will have an increase and then a stabilization over the course of years. I talk about evenly distribution, I talk about evenly distribution in the in quarters when the production is stabilized. This is the year where we ran the Daytona, and also the same supplies to Purosangue, as your colleague asked before. For the non-recurring items, Antonio, you can take it. Yeah. Hi, George. the nature of that... First, do not forget this is a variance, so it means the difference between the non-recurring of this year and the non-recurring of the previous one. Last year we had some positive non-recurring, mainly related, if I remember all of them correctly, to the release of some provisions in respect of previous recall campaigns, so excess provisions on that. Release of provisions in respect of bad debts that were previously accrued. This year, particularly in the last quarter, has been are non-recurring costs in respect of the organization of the company. That is it. All in all, throughout the year, I think it amounts to, in terms of the difference, and is a negative of EUR 30 million year-over-year. Understood. Thank you very much. Thank you. We will now go to the next question. Your next question comes from the line of Adam Jonas from Morgan Stanley. Please go ahead. Your line is open. Hi, guys. This is Matthias on for Adam. Within your industrial free cash flow outlook, you highlighted some negative working capital and rising CapEx impact. Can you dimension out each of these for us, so, in terms of, like, how much CapEx, and what's the order of magnitude on the working capital outflow? Yeah, sure. I mentioned earlier on that CapEx for 2023 is targeted to be above EUR 800 million, slightly above that number. Slightly higher compared to 2022. Working capital in its broader meaning, that is including I mean, the lower cash in coming from the fact that we had collected deposit in advance in 2022, is in the region of EUR 100 million or so. Great. Thank you for that. As a follow-up, for the Purosangue, you logged some costs, and efficiencies in the prior year, but there will also be some ramp re-related costs this year, I presume. It's not really clear whether the year-over-year impact on adjusted operating margins is gonna be positive, negative or neutral. How should we think about the Purosangue impact on margins, for this year? Thanks. I take this question about the Purosangue. What I would like to underline is that here in Ferrari, the product development process is very robust. Thanks to our the way we qualify, we validate the cars, any new car we have, I mean, when we go in production, the product is very well tested and is mature, so we do not expect any surprise in this direction. I think this is one of the key asset of our company, is the maturity and the stability of the product development process. Great. Thank you so much. Thank you. We will now go to our next question. Your next question comes from the line of Martino De Ambroggi from Equita. Please go ahead. Your line is open. Thank you, and good morning. Good afternoon, everybody. On the guidance, I know very well you do not provide any volume guidance, but am I right in assuming volumes ex Purosangue roughly similar to last year in 2023 or slightly up, plus the Purosangue, considering Daytona will offset Monza? On the free cash flow, you already answered, Antonio, on the net working capital. Could you split the input of down payments that you have underlined in your guidance? If these kind of down payments will become mainly recurring going forward, or should we see decline at certain point? If I may, very last, on the single-digit price increase, offsetting inflation, so roughly EUR 200 million inflation, but you also mentioned during the call that the cost inflation is unknown. I was wondering if you were referring to next year's or also the current year? Specifically, I ask you if you have any comment on the cost of labor, because we know the negotiation is ongoing in Italy, so it takes probably time and you cannot talk about, but just to understand what you can comment about it. Thank you. Martino, I think the second one is the most difficult one to Antonio. The first one, I understand your curiosity to understand what we will do exactly, and I would do the same thing in your shoes. You know, you cannot, we cannot disclose exactly what we want to do by each specific model, so we have to wait still 12 months to see what we will do in 2023 in this direction. The free cash flow and the other question I will leave to Antonio. I'll be disappointing, Martino, for a number of reasons. First, in terms of your question on working capital, I can't give you the exact size of the negative outlook on the deposits. Going forward, our assumption obviously depends on the mix that we are assuming year after year, because as you know, we collect deposits on strictly limited series. So it very much depends on how many we will have for sale in each single year, and we'll start collecting in advance. I said at the Capital Markets Day that I remember very clearly that I mentioned the fact that over the planned period, this is gonna be a wash. There are years when we collect more and others where we have relative outflows, meaning less collections than it could have been otherwise. The second question, I think, was in respect of inflation. I said it's a known unknown. Obviously, when we make price adjustment, we try and look at the future and make our best guess, based on the data points that we obviously have. I mean, we have assumptions, then reality will be different by definition. In respect of labor cost, obviously, even there, you make an assumption, but the negotiation around the new labor agreement is still ongoing, so we'll see what the final outcome is. We made assumptions around the number, which is what we currently think is more probable, but I cannot be more specific on this. Okay. I can imagine. Thank you. Thank you. We will now go to the next question. One moment, please. Your next question comes from the line of Tom Narayan from RBC. Please go ahead. Your line is open. Hi. Yes, Tom Narayan, RBC. Thanks for taking the questions. My first one has to do with electrification. I was curious if there was any updates post the June Capital Markets Day, especially related to the new E-Building development. With electrification, we get this question a lot, but just wondering how you would respond to, you know, what is Ferrari's kind of method of distinguishing itself with electrification? Obviously enhance the product. We'd just love some color on that. You know, we've heard that it's ultimately has to do with exclusivity too, as a luxury retailer. If Hermès was forced to not sell leather bags in another substrate, people would still buy the Hermès bags regardless. You know, just love to hear more on how Ferrari can use electrification to enhance its product offering. The second question is just a quick one. Capital return. How do you think about capital return specifically as it relates to share buybacks? Thanks. Okay. Thank you, Tom. I'll take the first two and the last one, Antonio will comment. The electrification. You may remember that in June last year, we said that we will unveil our electric Ferrari electric cars in 2025. What I can tell you that we are fully on track with our with the project. The team did a lot of progress in the second half of the years, and we work a lot here on many dimensions when it comes to efficiency and the sportiveness of the car that are gonna use this, let's say, engine and axle. We also said that we will do internally, manufacture internally strategic component. What does it mean? We will do internally now our e-building. By the way, if you come here, you will see it growing pretty fast. I was there this morning with the responsible of the infrastructures, it's growing like a mushroom. This you can see in this building, we will do the axle, we'll do the inverters, and we will also assembly the cell to make our own battery. The building, as the product, is proceeding as planned. I have to say that this is let's say the result, as I said, also in my part of all the work, of all the team that is fully dedicated to this important project. Now, when you talk about any technology, what is important is not the technology, but the way you use the technology. Here in Ferrari, when we develop the cars, we always make them unique and distinctive looking at three dimension: the design, the performance, and the driving thrills. What we are doing constantly when we develop these electric cars, we keep in mind that we have to start from the client. The client is the center, and we have to start from the driving thrills. When it comes to acceleration, braking, gearbox, sound, all these are dimension that we are developing and keep in mind for electric cars. The product strategy, as well as the use of technology, as well as all the infrastructure that we need to produce, well, this is according to the plan, and there is no surprise. We are able to say satisfied where we are, and we keep pushing. Antonio. With respect to the strategy and capital return, for that, we should get back to what I explained at the Capital Markets Day, meaning over the planned period, we thought all our cash generation has been largely deployed to return to shareholders 50% in the form of larger dividends and 50%, approximately in terms of share buyback. We also mentioned that depending on the evolution of the plan, we could have adjusted or confirmed the plan, but this is what we outlined in terms of targets for the next four years. Okay. Thank you. Thank you. We will now go to our next question. Your next question comes from the line of Anthony Dick from ODDO BHF. Please go ahead. Your line is open. Hi. Thanks for taking my question. Apologies, Anthony. Your line is very quiet. Can you please speak up? Yes. Can you hear me? Your line is still very quiet. Is it better now? Perfect. Thank you. Okay. Sorry about that. Yeah, my first question was a clarification on the Daytona SP3. At the time of the release, your commercial team was quoted in the press saying that, Apology, Anthony. Apologies to stop you. We really have some problem. Can you talk a bit slower and make sure that you split all the words? Thank you. Yes. Just a second. Yes, on the Daytona SP3, at the time of the release, your commercial team was quoted in the press saying that you targeted end of 2024 for the deliveries of the Daytona SP3. I was just wondering if that was the timeline that you still had in mind. The second question was on the Formula One business. I was just wondering if you could provide more color on the outlook, both on the top line and the bottom line for that business, because, well, the sponsorship revenue is obviously a bit hard to predict, but I don't know if you're expecting to sign more sponsorships in 2023. With the increased revenues coming from the commercial rights owner and also reduced costs from the engine freeze, I'm just wondering what kind of incremental EBIT contribution we can expect over the coming years from that line of business. Thank you. Antonio, we'll start from the second. Maybe I start from the second, if I get all your question right. With respect to the evolution of the revenues, we said we expect 2023 to be very much in line with 2022. No major changes there. With respect to the development of the cost base, on the chassis, the budget cap on the chassis, there have been some adjustment for the inflation. You may expect that this is gonna lead to higher expenses there. While what is frozen in terms of development of the power unit is just the development costs, not the running costs. Okay? I wouldn't mention more than that, but I think I gave you some data points. The question, if I understand well, Anthony, was about the life cycle of Daytona. We do not discuss this kind of detail, but, I mean, you can try to make a model based on the previous Icona, but, as you can understand, these are very important information that we like to keep here a little bit protected. Thank you very much. Thank you. We will now go to our last question. Your last question comes from the line of Daniel Roeska from Bernstein. Please go ahead. Your line is open. Thanks for squeezing in my question at the end. I've got a strategic one, more on the brand extension. Could you comment on how you think that the target groups for the luxury sports cars on one end, and then for the extension of luxury lifestyle products and events on the other hand, how do they kind of overlap, or how do they not overlap and kind of enhance each other? Thanks. Thank you for this question, Daniel. I mean, during the Capital Markets Day, we said that we are operating with our luxury car, we are operating in a small, in a small pot. There is much bigger pot in the luxury space that it's untapped by us. We are talking about a pot that is remarkable. The estimation we exchanged with you at the time was around $300 billion, and we see also, according to the latest result, that is growing. It's important for us that, since we believe a Ferrari is a way of living that goes beyond the sports cars, well, we believe that for our, for the elevation of our brand to also enlarge the client that we are addressing, this is very, very important. That's the reason why, let's say we are very determined and committed for these years to enlarge the customer base and also to enhance and to offer new experience and also new product. This is very, very important, and this is one of important priority of 2023. In that context, maybe, what are you expecting from your dealers? Do you envision kind of format changes? Do they need to move more to city centers? Kind of what's the relationship of that lifestyle extension and kind of your traditional retail outlet? How do you bring that together? I think, look, the dealer, and, Let's say we put together the sports car and the lifestyle when it makes sense to put them together in event and experience that are going across all the brand. This does not imply that we have always to put together the two dimension in every space where we operate, okay. Clearly we aim to make the experience of our client in our dealership more and more luxury. This is one fact. This does not mean that we will sell hats in the dealership. Okay. Brilliant. Thanks very much. Thank you. Thank you. I will now hand back the conference to Benedetto Vigna for final remarks. Thank you. Thanks to all of you for your time today and for your questions. 2022 has been a year rich of events and achievement and sets a robust foundation for this year, for 2023, and we look at it with even greater enthusiasm, energy, and confident humility. I wish you all a good afternoon, and thanks a lot for your attention. Thank you so much. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.