Good day, and thank you for standing by. Welcome to the Ferrari 2024 Q1 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. To ask a question during the session, you will need to press star one one on your telephone. You will then 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 Investor Relations. Please go ahead. Thank you, Sandra, and welcome to everyone who is joining us. Today, we plan to cover the group's Q1 2024 operating results, 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 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 2 of today's presentation, and the call will be governed by this language. With that said, I'd like, I'd like to turn the call over to Benedetto. [Foriegn language] Grazie, Nicoletta, and thank you everyone for joining us today. I just came back from Miami, where I spent one week together with our clients, the fans, the sponsors, including HP, our new title sponsor, and all brand enthusiasts. You should have been there with me and all Ferrari colleague. You would have been experiencing the brand power of the Prancing Horse. Indeed, for the first time in our history, the three soul of our company, racing, sport cars, and lifestyle, have been working in unison together to provide all the people in Miami a truly unique experience. But before sharing with you more detail about this fantastic event, I would like to thank our Ferrari colleagues for their outstanding work and dedication, our clients for their loyalty to our brand, and all our partners, suppliers, dealers, and sponsors. Without their tireless effort and dedication, the strong result we present today would not have been possible. So let's start with the financial result of the first quarter. We can say that it's a strong start to the years, with double-digit growth on key metrics, thanks to an even more robust product mix and a strong trend in personalization. Three are the key highlights. One, total revenues reached approximately EUR 1.6 billion with flat deliveries. This, once again, pays testament to our strategy of value over volume. Two, we enjoyed a strong profitability with EBITDA at EUR 605 million. And three, industrial free cash flow generation reached more than EUR 320 million in the quarter. The order books on our current models continues to be very strong, with a normalization in line with our expectation, with almost all models substantially sold out. In the last week, we opened the order book for the 12Cilindri Coupé and Spiders. For the first time, for our range models, we unveiled the coupé and the Spider together because we want to leave the freedom of selection to our clients. The first feedback from our two new models has been extremely positive. Several clients have said, "It's not a matter of either or. We love both." I talked with a client from all over the world, from China, from Korea, from U.S., from Europe. They were all astonished by both models. Our new 12Cilindri are amazingly beautiful and high performance. They are the perfect blend of tradition and innovation, elegance and sportiness. Our clients' opinions are obviously paramount, but I am also proud to say that the Roma Spider has been recognized with a Red Dot Award, Best of the Best in the product design category. And the Ferrari SF90 XX Stradale and one-off KC23 have also been awarded Red Dot Awards. All these are truly innovative vehicles enabled by our R&D innovation. And in fact, in 2023, just in Italy, we submitted 181 patent applications, one every two days. And always on the subject of innovation, last month, we inaugurated the E-Cells Lab in collaboration with University of Bologna and NXP Semiconductors. This laboratory will make a significant contribution to research in electrochemistry, and the project reflects the importance of collaboration between the academic and the business worlds. But there is much more in it. This lab will foster innovation in our local area and help us to build the skill, the skills of the future. Talking of technology collaboration, we have renewed our partnership with SK On, a leader in the field of high-performance cell manufacturing, with whom we have collaborated for many years, and we will continue to innovate further. As you can see, we are fighting on all cylinders in the execution of our business plan and product development. But perhaps I should instead say we are charging ahead, because in 2024, we will set another significant milestone in our electrification journey. In fact, on the 21st of June, exactly two years since our last Capital Market Day, and as we promised you during all our previous calls and meetings, we will inaugurate our new e-building. This state-of-the-art and highly flexible plan will assure us of the flexibility and technical capacity in excess of our needs for years to come. Here, we will handcraft the dedicated electric axles and the batteries that will power future Ferraris, exactly like we promised you two years ago. A special thanks goes to all the colleagues that have been able to maintain the building schedule, despite all the difficulties we experienced in these turbulent times. It has not been easy, believe me, but they made it happen. [Foriegn language] Grazie. Moving to the next page, the picture show clearly the essence of one Ferrari ethos, and believe me, there is no better way to simplify it than our recent activities in United States. As I told you at the beginning, last week, Ferrari hosted an unforgettable series of brand experiences in Miami, which immersed international clients, sponsors, Tifosi, dealers, and the brand enthusiasts into the Ferrari universe. It began with Cavalcade International, one of our most prestigious driving events, which attracted about 70 Ferraris and their owners from all over the world, as they drove together through the scenic landscape of Nashville, in Tennessee first, and later in Florida. The journey culminated in Miami with the world premieres of the Ferrari 12Cilindri and the Ferrari 12Cilindri Spider. Our new two-seater berlinettas, powered by front, front- mid, naturally aspirated V12. These models are the perfect embodiment of the Prancing Horse DNA, offering incomparable performance and handling with sophisticated design. You should have seen the emotion of all our clients. My words would never be capable to transmit to you those emotions. These events were accompanied by a privileged view of the latest fashion capsule collection, inspired by the history of racing on American tracks and the vibrant energy of Miami. The capsule collection had a warm reception. It was nice to see most of our clients wearing many pieces of our lifestyle collections during the long weekend. And last but not least, a fortunate few clients had the opportunity to live the Miami Grand Prix to its fullest, with exclusive and elegant hospitality of Casa Ferrari, right at the heart of the race. I am also proud to say that the Miami Grand Prix was the start of a new partnership. HP has become our title sponsor with a multi-year collaboration that encompasses a shared commitment to innovation, trust, and excellence, as well as commitment to sustainable futures, from carbon neutrality to the education of the next generation. In HP, we have found the same values which make it an ideal partner. I know them since more than 20 years, and for both our companies, people are at the center of whatever we do, because it is only people, it is only people who are able to blend together the tradition and innovation. Not all of our clients, Tifosi, and brand enthusiasts, were able to attend the event in person, thus we reached them through social media channels to nurture their sense of belonging. Lastly, before moving on, I would like to thank you, our shareholders, for your continuing trust, and among you, I'm delighted to welcome around 4,700 new shareholders among our dear colleagues. Indeed, around 98% of our employees have taken advantage of the broad-based share ownership plan launched by Ferrari that I described to you a few calls ago. This initiative demonstrates our desire to foster the sense of belonging that makes us unique, and underlines once more, how we continuously strive for excellence. On this note, I hand over to Antonio to review the Q1 2024 financial results. Please, Antonio. Thank you, Benedetto, and good morning or afternoon to everyone joining us today. Starting on page five, we present the highlights of the first quarter results of this year. As you can see from this page, the first quarter saw shipments to last the prior year, while revenues and profitability grew double digits. As Benedetto mentioned earlier, the robust mix was the main driver. Let me briefly go through the main highlights. Revenues of EUR 1,585 million, up 11%. Adjusted EBIT of EUR 442 million, up 15%, with a 27.9% margin, 100 basis points higher than last year. Net profit of EUR 352 million, leading to an adjusted diluted earnings per share of EUR 1.95, up 20%. Adjusted EBITDA of EUR 605 million, up roughly 13% with a solid margin at 38.2%. And finally, strong industrial free cash flow generation of EUR 321 million. Moving to page six, we can now add more color to the shipment number of the first quarter. As usual, the geographic breakdown reflected our choices of both volume and product allocations in the different markets. As a result, deliveries increased in EMEA by 39 units, in Americas by 35 units. Rest of APAC was almost flat, and allocations to Mainland China, Hong Kong, and Taiwan decreased by 79 units. Moving to the product portfolio overview, during the first quarter, the Roma Spider continued its ramp-up phase, while the Purosangue reached global distribution. Deliveries of the 296 family continued, sustaining the 46% hybrid share. The allocations of the Daytona SP3 increased in the quarter, in line with our plans, and above the average for the rest of the year. Lastly, some models were approaching the end of their life cycles, namely the SF90 Stradale and the 812 GTS. The SF90 XX Stradale, the SF90 XX Spider, and obviously, the newly launched 12Cilindri Coupe, will start contributing at their respective pace this year, while the 12Cilindri Spider from 2025. On page seven, you can see the net revenues bridge, which shows a 13% growth versus prior year at constant currency. The increase in cars and spare parts was the most relevant contributor, driven by the richer product mix and country mix, as well as higher personalizations. In the first quarter, personalizations came in strong and in line with our expectations of approximately 19% in proportion to the revenue from cars and spare parts. The main contributors were the Purosangue and the total carbon finish for the Daytona SP3. Sponsorship, commercial, and brand increased, thanks to the higher sponsorships for our racing activities, partially offset by the lower Formula 1 ranking achieved in 2023 compared to 2022. With regard to sponsorship, the additional contribution is provided both from new sponsors and different phasing of sponsors signed last year. Other revenues were flat, with improved contribution of financial services, offset by the decrease of the sales of engines to Maserati, whose supply contract expired at the end of 2023. As previously flagged, within the other revenues, we have now reclassified any residual sales of engines to third parties, whether for sport cars or racing. Currency had a negative net impact of approximately EUR 25 million, mainly due to the adverse dynamics of the Chinese yuan, Japanese yen, and US dollar versus the euro. Moving to page eight, the change in adjusted EBIT is explained by the following variances: Volume, slightly negative, mainly reflecting lower range models deliveries. Mix and price, positive for EUR 123 million, thanks to the robust product mix sustained by the Daytona SP3. As a reminder, we show in this bar the whole contribution from the Daytona pillar, including the volume variance. The increased contribution from personalization and a positive country mix, mainly driven by Americas. Industrial and R&D expenses grew EUR 29 million, led by innovation expenses, mainly for our sports car development, as well as higher depreciation and amortization. SG&A increased EUR 12 million and mainly reflected the ongoing development of our digital infrastructure and organization. Other positively contributed for EUR 6 million. The increased contribution from sponsorship and the release of prior year car environmental provisions in the USA, the latter worth approximately $10 million, were partially offset by the lower Formula One ranking achieved in 2023 compared to 2022. Lastly, the total net impact of currency was negative for EUR 23 million. Turning to page 9, in the first quarter, our Industrial Free Cash Flow generation was strong and reached EUR 321 million. It reflected the increase in profitability, partially offset by CapEx for EUR 195 million, EUR 45 million higher than last year, and in line with the pace of development of our products and infrastructure. Capital expenditure during 2024 will develop more linearly compared to our usual cadence, particularly as we start spending for the new paint shop. Second, a moderate increase in net working capital, mainly led by trade receivables. At the end of March, the company was in a net industrial cash position of EUR 38 million, notwithstanding EUR 136 million of share purchases occurred in the quarter, and residual impacts from currency and IFRS 16. Following the annual general meeting approval in April, the dividend distribution of approximately EUR 440 million was paid on the third of May, thus impacting the balance sheet of the second quarter. Finally, let's move to page 10, which confirms the guidance for 2024. We are really pleased by the solid Q1 performance, the continued strength of the order book, and the positive business trends.... also emphasized by the enthusiastic reception of the 12Cilindri and the great partnership started with HP. On this basis, we do look with great confidence at the next steps in the execution of our plan for the current year and beyond. I thank you for your attention, and I now turn the call over to Nicoletta. Thank you, Antonio. We are now ready to open the Q&A session. Please, Sandra, go ahead. Thank you. As a reminder, to ask a question, please press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take the first question. Coming from the line of George Galliers from Goldman Sachs, please go ahead. Good afternoon, and thank you for taking my questions. The first question I wanted to ask was just to help provide some clarification about the order book. You talked about some normalization, but you also, in the opening remarks, referenced the order book being very strong. Could you just help us understand what normalization means? Is this just the fact you have more slots available now going into 2026 and with the 12 Cilindri, or is there another element to it? And could you just confirm you haven't seen any pickup or abnormal behavior with respect to cancellations? The second question I had was around innovation, and Benedetto, obviously, you referenced the large number of patents that you continue to file. Just with respect to the patents and the innovation, is there any one area where you are particularly active today, such as aero or chassis dynamics, software or electric powertrain, or is the innovation really across the board and all of the different technologies, obviously, in play at Ferrari? Thank you. Thank you, George. Thank you for your question. I would start with the first one. Stability as a normalization, what does it mean? And so let me say in this way, it's a simple it's a simple math, okay? Because we are in a situation where a lot of our model are sold out, and we have the two new model that were announced at the last week, and thanks for the effort to pronounce well in Italian. Thank you. The 12Cilindri, well, this the order of these two car are not yet in our portfolio. So normalization for us meant that as we said, also, at the beginning of the year, in February, we were expecting the product portfolio to go a little bit down because there was not too much for the client to order. This question, I would like to take this opportunity to clarify something important. The order book that we have goes well into 2026. This is very important. I want to clarify this because we have models that are, let me say, for which we have a long waiting list. The second point, no abnormality of cancellation. We saw less order coming from China. That's true, but we don't see an abnormality of cancellation. We don't see any pattern, either in terms of country or in terms of models. We see some clients that want to have some more model, they have to wait longer because there is a long wait time, like, for example, the Purosangue. The other point was about the IP. The IP is the innovation, let me say, that we are running, and we are patenting goes across the board. There are some areas that are, let me say, more, a little bit more present, what is related to the driving thrills. So if you come, let me say, in our patent portfolio, we'll not find many patents about things that are not strategic for us, like autonomous driving. But when it comes to anything related to the driving thrills or clients and this interacting with the car, well, over there, it's, that one is an area of attention and focus for our patenting activity. Great. Thank you very much. Thank you. We will now take the next question from the line of John Murphy from Bank of America. Please go ahead. Hello, everybody. I just had two questions. You know, the quarter was a very Ferrari-like quarter, you know, with volumes flat, very significant revenue growth from price and mix and personalization. So it was really, it improved out the model. But I think if we look at the two walks, I was just wondering if you could give us some information on, or color on the EBIT change versus the revenue change, 'cause it was, you know, a very clean quarter with volumes almost flat year-over-year, but EBIT up EUR 123 million versus revenue up EUR 166 million, which would give you a 74% contribution margin, which I think is not being appreciated necessarily in the stock, you know, at the moment. So I don't know if you can talk about that on a relative basis, but if you could give us sort of color on how we should think about contribution margin times volume, 'cause it was very strong in the quarter, about 74%, as far as I can tell. It's a nice question. I would like Antonio to- Yeah. There are three main elements that contribute to the increase in contribution margin. The first one is the product mix, whereby it's important to flag the role of the Icona. Actually, I think I said in my comment on the bridge that the Daytona contributed higher than they would do over the course of the rest of the year in the first quarter. Secondly, personalization. Personalization is very strong. So it's above the 19% that we had for the rest of the year. It's slightly above. The third is country mix. Obviously, with China down, that helps in terms of even of the marginality. I don't know whether it is a sufficient color. There are a couple of other elements that also contributed to 499P, also add a couple of models sold in the quarter, but that's what explains the strength of this contribution of mix and price. Okay, maybe just one, one follow-up to that. I mean, basically, what you're saying is this 74% contribution margin x volume is the kind of number we should think about in the future. And then just one follow-up on Purosangue. There is one element to take into consideration. The Daytona is higher this quarter than the rest of the year. Okay. Then just on the Purosangue success, I mean, that form factor obviously is somewhat unique. But Benedetto, you're having incredible success there. Could we see a successor to that in the next couple of years? And what would that mean for the business? Look, that's another interesting question. I can tell you that, yes, Purosangue is having a lot of traction and that, the order book is very strong. It goes well ahead, but I don't want to comment. I cannot. I would like, but I cannot, because secrecy is a way to feed the desirability of what we do. Clearly, clearly, there is, we are learning a lot from, this model, and usually, let's put it this way, we like to use what we learn, but I don't want to say if there will be a success or whatever. That's very helpful. Thank you very much, guys. Sorry, sorry about this, John. No, I understand, but thank you very much. That's good color. Thank you. Thank you. We will now take the next question from the line of Tom Narayan from RBC Capital Markets. Please go ahead. Oh, yeah, thanks for taking the question. The first one I have is on China. You mentioned it was, you know, down a little. Just curious, maybe if there's something driving that. I know that there are some just inherent reasons to not be as aggressive there with CO2 restrictions there and tariffs and such. Just would love to hear maybe a little more on what's happening in China, if there's anything, any commentary there first. Thanks. Thank you, Tom. I would like to share with you some color about the China. That is pretty interesting. So, we did some analysis. It's funny to see that, if you go in China, and if you compare, what was happening one year ago and this year, basically, there are two numbers that are swapped in terms of, a car that we ship to mainland China. Okay? We're talking about mainland China. Clearly, if I see, versus one year ago, there is a stronger traction of hybrid model. One year ago, we were shipping more ICE than hybrid. This year, we are shipping more hybrid than, than ICE. And this brings also, since, since the hybrid model are basically sold out, because some... A little bit is left to be sold. This is an impact, and it is also, let me say, gives you more color about the meaning of normalization in that kind, in that country. So I wanted to share a little bit more color, because this China has a different meaning for us versus the other brand, luxury brands acting in that region. It's a different meaning because for us, since the beginning, since the Capital Market Day, as Antonio said, clearly, we want to keep Greater China, so Mainland China, Taiwan, and Hong Kong, below 10%, because we want this market to get more acquainted with our brand. To be in the family of Ferrari, you need some time, and you need to give time to the client in a country to understand what does it mean to be our client. So having said that, it's clear that, let me say, in China, we had this kind of normalization. That was also our, if you want, deliberate choice, because the number of model we can sell there are not so many. And, we wanted to keep always below 10%. Thank you for that. A quick follow-up on personalization, the guidance is to stay at that 19%, that was the same amount in 2023, so effectively flat. Purosangue is coming in, I think you also said Daytona above that level. So I guess the question would be: Is there upside potential to that 19% to your guidance in 2024? Or maybe it's because, you know, the initial folks who are getting the Purosangue are more likely to personalize because they are maybe more VIP, et cetera. So just love to hear more on your thoughts on- No, I think, let's say the trend of personalization is not specific of a model. What I can tell you, let me say, another lesson learned, we like to register, to report at least to us, what are the lesson learned and to share with you, is that, you know, this year, we increased the price of personalization. You may remember last call, we said that we increased the price of the new model and we increased the price of personalization. Well, what we saw that, yes, there was an increase on the price, of the price of personalization, but there has not been any impact on the ratio of personalization. So this is a lesson learned. We increased the price on the personalization, but if the client want to personalize, they keep personalizing. This is also the reason why when the previous colleague asked the contribution year-over-year to the EBIT, Antonio was telling contribution from personalization, product mix and country mix. Also, if I may add, the higher the average price of car, the lower the percentage. It's just mathematical formula. So the more we sell Daytona, yeah. Yeah. Understood. Thank you very much. Welcome. Thank you. We will now take the next question from the line of Monica Bosio from Intesa Sanpaolo. Please go ahead. Hello, everyone. I hope you can hear me, and thanks for taking my questions. The first one is on the 12Cilindri. I was wondering if the 12Cilindri might carry a higher ratio of personalization, or if there is any particular features that might carry a higher personalization content, not only on the price side? Any colors is appreciated on this side. My second question is on the country mix, which was favorable in the first quarter. Should we expect a similar impact also in the coming quarters? Thank you very much. Thank you, Monica. I think the first one, the second, I leave it to Antonio. Let's say two things for the 12Cilindri, okay? Coupe and Spiders. Actually, three things. One, as I said, that the client like -- love, sorry, love both of them. Two, I've been talking, maybe around, 60, 70 clients, spending time with them in the two evening we had in Miami. I saw a strong interest of the client for new colors, so Arctic White as well as Verde Toscana. So there was a strong, a lot, many clients telling, "I will take... I will order these colors. Mm-hmm. Some clients asking for two different color on two different cars, the Coupe and Spiders. What I can tell you that the last important point is that we agreed, I mean, we increased the price. As you have seen, the price is 395,000 EUR for the Coupe and 435,000 EUR for the Spiders. The number of the personalization, let me say, what will be the trend, we'll discover together, but I think there are enough personalization option for the client. And, as I said, there is a lot of interest for the new colors that, let's say, that let them get in love even more. There are- Very active. There are many dimensions we can explore over there, Monica, but we wanted to start from a price that is higher than the predecessor of this cars. The second one, I would like to, Antonio, if you can elaborate. Sure. Thank you, Benedetto. As far as the... Ciao, Monica. I think as far as the country mix is concerned over the course of the year, I would expect a modest positive impact. Mm-hmm. So it's not a major- Monica, can you repeat, Antonio? Sorry, the line is not clear. A modest positive impact. Okay. Okay. Can you hear me okay? Thank you very much. Yes. Welcome. Got it. Thank you. Thank you, Antonio. Thank you. We will now take the next question from the line of Adam Jonas from Morgan Stanley. Please go ahead. Ciao, everybody. A couple questions. First, can you remind us of your sales today by unit volume, what percentage of your volume are delivered to clients that already own a Ferrari, and how has that changed in recent quarters? Now the follow-up. We were waiting for, only this question? I have a follow-up. Jonas, sure. I can ask it now or wait. No, no, we were taking note on a piece of paper, so maybe you can go. So one is the percentage of repeaters. The second? Yeah. So again, the first question, to be clear, is what percentage of your volume are delivered to clients that already own a Ferrari or were existing owners replacing a Ferrari, if that makes sense? Sure, very clear. The second question, Benedetto, is you have been making efforts downstream with your dealers and franchise dealers on trying to capture more of the recurring revenue and establish a more intimate relationship, if I can say so, with your clients, including things like increasing your hit rate on repurchasing a secondhand vehicle. I know there's other efforts that you're doing, but if you could give us an update on how that's going since you kind of re-emphasized the efforts there, that would be appreciated. Thank you. [Foriengn language]Grazie. The first answer is very simple, Adam. Let's say, the repeaters, what we call the repeater, no? The people that are already client, it depends a little bit on the model. So you have models where, the repeater, is, in the range of 10, let's say 30, sorry, 30, 35%, to a situation where the repeater are going to around 80%, 85%. So it is, in average, in average, in the year in 2023, 74%, 74% of our new cars were sold to existing clients. Okay? Thank you. So this is the answer. The second, the dealers. What we are doing together with the dealers is to push more on to make the relation more intimate, as you said. We are working on two dimensions. Number one is the personalization. The personalization so that we can enrich the... We can personalize more the cars. And the second is the Ferrari Approved. In these days, I mean, last week, actually, we launched in USA the Ferrari Approved program. That is something that allows—we want to link more and more the... We want to nurture more and more the pre-owned market. To this, we launched the Ferrari Approved initiative that is intended to link, to bring more in the family, the client, to avoid them going, let me say, to use gray work body shop or gray dealers. For this, we agreed with our dealers some activities so that there is an incentive for our client to go back and to stay in the family. These are the two things we are doing, Adam. [Foriegn language] Grazie. [Foriegn language] Prego. Thank you. We will now take the next question from the line of Michael Binetti from Evercore ISI. Please go ahead. Hey, thanks, guys. And Benedetto, first, I want to say congrats on the 98% of the employees participating in the stock program. I know that's something that's been important to you since very early on in your time here. Thank you. Just, I guess a question on the margin cadence through the year as we think about the puts and takes, particularly in second quarter. I think, you know, I think you said there'll be less Daytona after the first quarter, but I think here, here we are in May. I think the SF90 XX models start to ship in the second quarter with the coupe and then the spider later in the fourth quarter. I know those are high price point cars, and it sounds like they're very heavily personalized. Is there, you know, the... As we look at that mix bridge, does that slow because there's less Daytonas through the rest of the year, and does the margin lift from Daytona slow through the year? Or does the XX pick it up and that can be more linear through the year? And then I guess secondly, maybe just on some of the new items, how does the HP sponsorship flow into the P&L, which lines and what is the timing around when you start to record that, if that's a new addition to 2024 guidance? And then I guess my last one is, Benedetto, on the E-building, I know that that's an important input to the EV that you've announced for next year. Will we see that the output from that building start to show up in your commercial activities before the EV, and maybe what would that look like? So I think, thank you, Mike. I take the third one, and Antonio will elaborate on the first two. So the E-building, as I said, is, will be, let's say, the electric cars will be done in the E-building, but in this building, because we always give a priority to flexibility, we will also have other car assembled over there, the hybrid. So yes, we will have some hybrid cars that will get out, will be manufactured, assembled, let me say, in this E-building. But the electric cars, the plan for electric cars stays as we committed two years ago, and the E-building will be inaugurated 21st of June, as I said before. So don't expect, let me see, any electric cars to get delivered before what we told you. I mean, we stick to our plan. Yeah. It's we are in line with that. For the other two, the HP sponsorship, flowing in the P&L and the margin cadence. Yeah, I go- Antonio. Hi, Mike. The first one, in terms of the cadence, the margin cadence is partly dictated by that of the deliveries of Daytona, which we expect to be higher in the first half compared to the second, even if in the second half, at some point, we'll get also the SF90 XX Stradale for delivery. But we expect anyway, the overall mix and price impact to remain above 10% compared to last year in terms of growth. And as far as the HP sponsorship, flowing into the P&L, it will start from the second quarter. Do not disregard the fact that this is just a portion of the year, so it's not a full year sponsorship, this one. And as these things do not happen overnight, as you may imagine, we encompass that already, largely in our guidance for the year, the beginning. Okay. Thank you very much. Welcome. Thank you... We will now take the next question from the line of Stephen Reitman from Bernstein SG. Please go ahead. Thank you very much. I have some questions about the Purosangue and about the 12Cilindri. First of all, on the Purosangue, you say it has reached global distribution, so does that mean that it's also reached the production cadence that's equivalent to the 20% target you would normally have for the vehicle over the lifetime of the product? Secondly, on the 12Cilindri, could you comment first of all on your thought process and how you came about the pricing on this vehicle, obviously, which is a 30% uplift on the 812 Superfast, and I believe a 27% uplift on the 812 GTS. Obviously, big increases. And secondly, also on the eight... On the 12 cylinder, the fact that you're launching the two vehicles together, although as you mentioned, there is a delay before the Spider comes out, or released to customers. Does that indicate a high degree of flexibility you now have within your production system, that you can actually develop these vehicles in tandem and have them out in a very short space of time compared to in the past, when there was a quite long gap between these kind of vehicles? Thank you. Thank you, Stephen, for your question. So coming to the first one, the Purosangue, well, we can say that in the Q1, the deliveries of Purosangue were below 16% of the volume we shipped. So we are not yet at the 20%. You can assume for the year that we'll be around 18% overall. Coming back to the 12 cylinders or Dodici Cilindri, like we like, well, the Dodici Cilindri, the price, let's say we agreed to have a higher price, a substantially higher price than the previous version, because we believe there is a lot of innovation, a lot of activities have been done by the company, by all the team, to put together traditional innovation and also, let me say, the... When you try it, because we tried it several times with Antonio and all other colleague on the track and on the road. There is the right mix between driving thrills, elegance, and sportiness. So let me say, I think this price is what the cars deserve to have, also for the, let's say, all the work that's been done. I have to say that also during the two nights, let's say, the world premieres, we have been talking about the future of the car, okay? About some client were telling, "I, I do not believe you have been able to reach such high performances in a car that was already high performance." Now, we're thinking about four-wheel steering, that is really unique, and brake-by-wire. A lot of innovation have been done on this car. Many, many. On the aerodynamic, on the power control, on the power, on the power unit, so also on the interior side, the display, the central display. Yes, one thing that the client appreciated a lot is that we listen. We heard their comment. We have a central display that is very high-end and very easy to be used. You said, well, I mean, the reason why we launched the two models together, the Coupe and Spiders, is the first time that we launched this for our range cars, is because we want to give more freedom to client. It means that we are, we have flexibility in-house. So we prepared ourselves to have this higher flexibility in-house because it's something that is also. I mean, we met several times. We have to, to learn to know more our client, and this is a way also to learn from our clients, how they react when they see the two model together. We are ready because we have a flexible manufacturing line. Thank you. If I go back again about the pricing on the 12Cilindri, apologize, Italian. If the price increase, like, does that give us any idea of the future direction of when you launch also replacements for the next series of vehicles? Would we be expecting this kind of degree of price uplift on these vehicles? Obviously, with the 296 GTB, it was about a 14% increase, and I think on the Roma Spider versus the Portofino M, it was about 16%. This is the other interesting question. I think that, it's clear that, there are two things that we have to to balance. One is the all the innovation that we are offering to our client, and number two, the willingness they have to pay an higher price. What I can tell is that, yes, there is a, as we said, also in several meetings, there is an upward lift upward of our prices, as you have noticed it well for the 296, for the Roma Spiders, and for the 12Cilindri. I think this is important... I mean, we always said, you know, we want to grow, we want to give priority to value over over volume. If you see also the deliveries of this quarter, basically, they've been flat versus one year ago. Very well, clear. Thank you very much. Thank you, Stephen. Thank you. We will now take the next question from the line of Anthony Dick from Oddo BHF. Please go ahead. Yes, thank you. Just a follow-up question on the HP title sponsorship. So quite a significant partnership you've signed there. And so I was just wondering how that affects the profitability profile of the F1 business. Is this something that could actually improve the profitability of the business? Or is it just made largely to cover any cost increases that you might expect in the coming years, maybe especially in 2025, with likely some higher wage expenses? And then a second question on the paint shop. Just wondering if you could update us on the development of the paint shop, and what kind of investment and ramp up could we expect so that new building? Thank you. Okay. The first question, yes, it improves. Very simple answer. The second, the paint shop, yes, we laid down the foundation in the last quarter, in Q1, and, let's say the total investment is a part of the investment plan we declared to you, two years ago. You remember we said EUR 4.4 billion, the total- In between 2022-2026. Yes, over five years, out of which, let me say EUR 1.1 billion was for infrastructures, and the paint shop as the building are part of this EUR 1.1 billion over the five-year cycle. So nothing, nothing new, Anthony. It's... We are moving according to the, the plan, the plan. The building will be announced, next month as per plan, and the paint shop started in Q1 as per plan, and all is part of this, basket of, EUR 1.1 billion. Thank you. Thank you. We will now take the next question from the line of Martino De Ambroggi from Equita. Please go ahead. Thank you. Good afternoon, everybody. Sorry to bother you on the profitability in Q1 and customizations, but you mentioned that customization was higher in Q1 than the 19% projected for the full year. Am I right in assuming 21%, first? And second, you also mentioned the higher is the price, the lower is the customization. Martino, can I just stop you on this one, just to avoid- Yeah ... any misunderstanding? We guided the market to 19% for the full year, and I just said in Q1 we're slightly above 19%. So that's it, but it's not significantly different. Okay? Okay. Okay. And, the second part, always on this question is, you mentioned that the higher is the price, the lower is the customization as a percentage of sales. But you also mentioned that the- It's a simple math fact. Yeah, yeah. Yeah, yeah, but you also mentioned that, the Purosangue is ramping up, and the Daytona had a higher contribution in Q1 than the rest of the year. I remember you mentioned in the previous call, Daytona was expected to deliver 60 units in this quarter, so maybe was higher. So, and the two things together show that probably it is not in this quarter that the relationship, the higher is the price is the customization for the overall picture. So I don't know if... That maybe I answer. Yeah, yeah, thank you. Okay. This question. You're right in the sense that the first quarter we had higher deliveries of the Daytona, and the Purosangue is ramping up in our global distribution, but it's not yet at 20%. The, when we said at the beginning, we are guiding to 19% average, obviously take into account that we do not have full visibility of personalization over the, the rest of the year. Because the personalization decision on personalization is taken by the clients toward the end of this waiting time, a few months before delivery. So it's actually an assumption, the one. We are not in a position to, to project on a, precise math for, for the following quarter, particularly as we go towards the end of the year. I think 19% on average is a fair assumption. Okay, thank you. And the second question is on costs, probably referring to the previous question on HP sponsorship. Am I right in assuming it is offsetting the Hamilton contract? And just to have an idea of the Formula 1 contribution going ahead, regardless of the ranking you will have this year, which is probably higher than last year. We said before, Martino, it improves. Okay. This was the same question that we got, no? So. No, but the Hamilton contract, in the middle, I know you do not disclose the precise figures and so on, but, I suppose this, it helps to cover the Hamilton contract that will come next year. No, no, but your answer, your question is very clear, and our answer, yes, it improves. Okay. We don't disclose the detail A or B, the plus and the minus or the equal, but it improves. Okay. Thank you. Thank you, Martino. Thank you. We will now take the next question from the line of Gianluca Bertuzzo from Intermonte SIM. Please go ahead. Hi, everybody, and thank you for taking my question. I'm sorry to bother you on the partnership with HP. Are we talking about triple digit sponsorship here, such as the previous long-standing title sponsor? And second and third question are about volumes. Can we expect an acceleration of volumes deliveries throughout the year? Or can we assume a stable evolution?... And on cost inflation, what are, did you change expectation or, the development is in line with what, with your thinking, at the beginning of the year? Thank you. I think the first two, and the cost, is Antonio will help us to go through. So, HP, we never disclose the numbers, also because in the contract, if you see the contract we sign with all our sponsors, we cannot; this information confidential, so we cannot disclose the way the number, if it is one, two, three, four, five digits, whatever. Whatever measurement unit you are thinking to. The second is the volume. We said since ever that we value the, we give a priority to value - Over volume. Volume. So, let me say, you know how many car we did the last years. We also said that the growing volume will be very limited. You see that Q1, basically, we did, to be precise, seven units less than last year. So let's say, we do not expect at all any acceleration of volume. This is not, I mean, what a brand like us should do, and that's also the reason why, if you remember the previous question of Stephen, no? Stephen was saying, why you have been, what is the rationale behind this strong price increase? Because we want to give always priority to value over volume. For the cost inflation, Antonio can answer. Well, yes, it's very simple. We haven't changed our assumptions for the rest of the year, actually. Okay, thank you very much. You're welcome. [Foriegn language] Grazie. 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'd like to come back to the seasonality of earnings and talk a little about the seasonality of CapEx and free cash flow, just to make sure I understood correctly. What I understood is that earnings would likely follow the shape of your deliveries for the Icona. So you likely have a better first half than the second half. I just want to confirm that. And I think you said as well that CapEx would be more linear this year than in previous years, where it would have been more back-ended. Is that correct? Maybe just clarify on the first one. I commented the development of the gross margin, the contribution margin, if you wish- Okay Which is dictated by the cadence of the Daytona. When you look at the entire P&L, obviously there are other seasonalities that cross over the top part of the profit and loss. Overall, I would not expect significant differences over time, but for probably Q3, that could be, but as it always normally happens, a bit lower. With respect to CapEx, you're right. I said usually we experience an exponential growth of capital expenditure over the course of the year. In 2024, we expect the growth to be more linear, because several projects are already well advanced. We are basically finishing up on the development of the e-building, and we have the ramp-up of the expenditure on the new paint shop. Very clear. Thank you. You're welcome. My, my second question, I know you want to keep some, some surprise. I look forward to visiting it. This e-building, when we come there, are you already making something in it? Are we gonna see something, or is it just gonna be for us to present us your projects in more details when it comes to both the one to every component you're gonna make there in cars, or are you already manufacturing something in the building? No, no, but we told you, maybe we were not clear in the past. In September, we start to get the first equipment. In December, we started already to assemble some components for our car. So, now we'll see how to manage it the best of the visit, but it's not an empty shell. We don't do this inauguration with empty shell, Thomas. We, I mean, there are people working over there. There are components made already over there. I would have been prepared to come for a religious visit as well, Benedetto. Last question, on Forex, please. The headwind was a bit larger than I thought in Q1. Can you give us an indication of what we should expect for the full year? Well, we have said we expect the dollar to stay in the area of $1.10, mm-hmm. Then, let's see what happens. It's rather unpredictable. For example, the impact of Chinese yuan and the Japanese yen, both last year and the current year, is negative and larger than we would have bet on. As you know, we hedge our currency exposure on a 12-month rolling basis, so this smoothen a bit the impact, but overall, I would expect this to be negative for the rest of the year. Okay. Thank you very much. Welcome. Thank you, Thomas. Thank you. We will now take the next question from the line of Gabriele Gambarova from Banca Akros. Please go ahead. Yes, thanks for taking my questions. Just a couple left for me. Is it possible to know the precise number of Daytona SP3 delivered in Q1? Please. Yeah. Approximately 80. ... 80. Well. Yeah. Another question, again, on price and mix, very strong in Q1. The balance between this 80 and the 123, am I right assuming that is made of, let's say, bigger deliveries of Purosangue? I don't get it. Can you please repeat the question? Yes. I assume- Was wondering if the Purosangue had, let's say, an important role in the improvement of price and mix in Q1, putting- Okay, sorry. SP3. Okay. We do not give the details of the overall product mix impact. I told you that overall the product mix impact is positive, and this is because of the Daytona. The other significant contributor remains personalization, and the third one is country mix. Okay. Okay. Okay, thank you very much. And very last question, just to check, Antonio, you, if I understood well- Just for the sake of clarity, Purosangue, in terms of contribution, is average compared to the rest of the range, percentage wise. Mm-hmm. Very, very last question. I understood right, you said, you expect price and mix to give a higher than 10% contribution across the rest of the year? I said that the increase of price and mix, as you can measure it, as the ratio of the average selling price compared to last year, is expected to be above 10% on the full year basis. Okay, perfect. Thank you very much. Welcome. Thank you. We will now take the next question from the line of Henning Cosman from Barclays. Please go ahead. Yeah, thank you so much for squeezing me in. I have also one more clarification, I'm afraid. But, I'm still trying to reconcile your comments with respect to high number of Daytonas. I think very strong personalization mix on the first Purosangue is to be delivered, perhaps only a modest geographical mix effect in the course of the year, perhaps a little bit less in Q1. So I would have thought these comments all sort of add to thinking that the Q1 margin is more towards the top end of the range, that we can perhaps expect across the quarters for 2024. But then again, you know, similar to the previous point that the colleague made, if the revenue per unit stays at above 10% or price mix stays above 10%, I'm struggling to reconcile that, how that would be consistent with a full year margin of below 28%. I mean, perhaps you can help us one more time to reconcile that. And then on another topic that hasn't come up, second question is residual values. If I'm not mistaken, you had made comments around the degree of residual value normalization in the context of better availability of new cars. I don't know if you wanted to share anything there, just wanted to give you an opportunity if you wanted to share something on residual values. Thank you very much. Well, I think the first one, maybe Antonio can add some more color, and I will comment about the second. So I start from the second also for business of discussion. The residual value. There are, let me say, yeah, the residual value keep pretty well. There is, there has been one country that has been suffering a little bit for specific—for one specific model, but the situation is, is, is coming basically to... Is recovering, so we don't see any strange pattern over there. Coming to the first question. Yeah ... Antonio will elaborate more, but what I would like to underline is that we are not changing the guidance. Absolutely. So- Absolutely. I mean, we are asked about color for the development of product, of price and mix over the rest of the year. I try and simplify what I said before. I mean, price and mix has been particularly strong in Q1. These have been supported by the number of deliveries of the Daytona, which is higher compared to the average for the rest of the year. The other element that contributed positively was personalizations. And obviously, as I said, the other information that I put is that we expect on average, price and mix to be growing 10% or above that in the course of 2024 compared to last year. This means that over the course of the quarter, in terms of contribution margin, depending on the cadence, the actual cadence of the Daytona, will probably be slightly lower compared to the first part of the first quarter of the year. This is it. Does it help? I might follow up with the team afterwards, but thank you. Okay. Okay. Thank you. Thank you. I would now like to turn the conference back to Benedetto Vigna for closing remarks. Thank you. Thanks for your time, and thanks also for all your questions. The strong Q1 result, and also the strong brand desirability, are fueling our confidence for the development of the year and also forward. This is the key message that we wanted to pass to you. And I wish you a good afternoon, and thank you again for your attention. [Foriegn language] Grazie. This concludes today's conference call. Thank you for participating. You may now disconnect.