Good day, and thank you for standing by. Welcome to the Ferrari Q3 Results 2024 Conference Call and Webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you need to press star one and 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 note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Nicoletta Russo, Head of Investor Relations. Please go ahead. Thank you, Razia, and welcome to everyone who is joining us. Today, we plan to cover the group's operating results of the Q3 of 2024, 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 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, and thank you, everyone, for joining us today. Before we begin, I would like to extend my gratitude to the incredible team at Ferrari for their hard work and dedication, to all our client collectors for their ongoing trust in our brand, and to all our partners, suppliers, and dealers for the strong collaborations we have continued to build together. The stability of the Ferrari ecosystem resides in their spirit of cooperation, shared passion, and sense of belonging. Grazie a tutti. Thanks to all. We are continuing to execute our business plan in line with our trajectory, and Q3 was, once again, a quarter rich in achievements and strong financial results. Let's begin with a brief summary of these financial results, and then Antonio will provide all other details. Revenues: EUR 1.6 billion, up 7% versus the previous year. A double-digit growth in profitability. We’ve EBITDA at approximately EUR 470 million and an EBIT margin of 28.4%, sustained by the strength of the product mix and the continuing solid trend of personalization. A remarkable net profit of EUR 375 million and industrial free cash flow generation of more than EUR 360 million. Such figures continue to demonstrate strong execution and sustained growth. These results were accompanied by a continuous brand momentum. The order book, our order book, has evolved as expected, with the new 12Cilindri Coupe and Spider guiding the order intake, providing us with a remarkable rolling visibility well into 2026. The same positive sentiment has been confirmed by many of our dealers who attended the dealer annual meeting a couple of weeks ago here in Maranello in our new e-building. All our 170-plus dealers from all over the world came to this important event, and immediately after it, during the dinners, they reported very favorable feedback across the board, from recent product unveiling to customer engagement, from a clear and consistent product and industrial strategy to increased openness and transparency, and, of course, unique brand experiences. In this same location, in the e-building, during those days, we arranged the bespoke previews of the new supercar, the F80, for our collectors before displaying it to our broader racing community at Finali Mondiali. This model opens a new chapter in the history of our legendary supercars. The F80 will be produced in a limited run of just 799 examples, which have already been fully allocated to our collectors. It joins the iconic 288 GTO, launched 40 years ago in 1984, F40, F50, Enzo, and LaFerrari, showcasing the very pinnacle of technology and performance. The F80 is the most powerful road car ever to come out of the factory's gate, with a combined maximum power of 1,200 horsepower. It has become the new benchmark for innovation and engineering excellence from the latest generation V6 hybrid powertrain, with the introduction of e-turbo to the four-wheel driving capability enabled by the electric front axle, from the ultralight carbon fiber chassis to the extreme aerodynamic solutions. And here, I would like to praise the entire team here in Ferrari for this incredible masterpiece, marking the eighth model unveiled out of the 15 we promised at the 2022 Capital Market Day. So, what is most striking about the F80? Firstly, it symbolizes our technological evolution, the significant transfer of technology from our racing world to the road. Today, both our Formula One and our 499P hypercars have turbo V6 ICE engines with a hybrid system. So, it was a choice for us to transfer this powerful and advanced architecture into our newly born F80. Secondly, we are making a clear technology statement. More specifically, I refer to the following three key components of our F80, all developed and manufactured in our newly inaugurated e-building. One, the electric motors, the first to be developed, tested, and manufactured entirely by us. Two, the high-voltage battery module, conceived for very high power density and adopting a patented carbon fiber housing system to save weight. And three, the front axle, designed for high efficiency and incorporating two electric motors, an inverter using silicon carbide transistors, and an integrated advanced cooling system. What I just mentioned above underlines the progress that we are making in our electrification journey and our willingness to internalize core components. After the first hybrid F1 car of 2009, LaFerrari of 2013, and our six hybrid motors, F80 represents a key milestone in our electrification journey. And now, after our amazingly beautiful and high-performance Ferrari, let's switch gears to client activities. Q3 has been also a quarter rich in many unique experiences, such as our presence in Pebble Beach, where the Concours hosted many classic and new Ferraris, the Cavalcade Classic, which attracted over 60 historic Ferraris and their owners to Italy, Friuli-Venezia Giulia region, and Slovenia, and the Legacy Tour dedicated to owners of the iconic 288 GTO and our first supercar. The Finali Mondiali, which saw the participation of more than 35,000 motorsport enthusiasts, clients, Tifosi, sponsors, suppliers, and employees with their friends and families. Each event has been a resounding success, bringing together our community to celebrate the Ferrari legacy and extraordinary experiences that define our brand. These opportunities for our international community together offer a unique platform for enthusiasts to immerse themselves in the Ferrari experience. They foster connection and create unforgettable memories that resonate with the true essence of the P rancing Horse, a shared passion, and a strong sense of belonging. Finali Mondiali is a good launchpad to our racing and lifestyle world. Let's start with the racing world. September 1st is a date that we will always remember because, for the first time in Ferrari's history, we secured two victories in the two championships, WEC and F1, in a single day, as our victory in Austin came just a few hours after our win at the Grand Prix with the Scuderia Ferrari HP. I was in Monza, and I can tell you that you cannot describe those emotions. You can only live them, and you will never forget. In Formula One, the recent victories and improvements in Austin and Mexico City have provided us with the boost we need to continue to fight in the last few races of the championship, always with the four wheels on the ground. The road till the end of Abu Dhabi is we will make all we can to fight till the very last lap. The recent racing and sports car events have also been occasions to showcase our renewed lifestyle dimension. Among the many activities, let me highlight our last collection shown during the Milan Fashion Week, and that has been very, very well received. The strength of our brand is further demonstrated by the record attendance at our museums. Two months in Q3, both saw well above 100,000 visitors, and year to date, we already passed the record of attendees of last year. And lastly, I want to mention another very important achievement of this quarter. Actually, it's a quantum leap toward our carbon neutrality target for 2030. We have switched off our third-generation plant here in Maranello, and we managed to do this three months earlier than we had previously planned. This means we no longer use gas to produce electricity in Maranello, replacing a significant proportion of our methane gas consumption with renewable energy sources. This will ensure us a 60% annual reduction in Scope 1 and Scope 2 CO2 emission compared to the 2021 base year. To conclude, we are conscious of the microenvironment around us, and we continue to monitor it very carefully. We are all fully committed to execute our strategy with a focus and determination, confident in our clients, our direction, and the opportunities that lie ahead of us, and always keeping in mind the importance to be well grounded. And on this note, I hand over to Antonio to review the Q3 2024 financial result. Antonio. Grazie, Benedetto, and good morning or afternoon to everyone joining us today. I start on page six with a quick glance at the highlights of the Q3. The quarter posted strong financial results aligned with our targets, once again affirming this year's main drivers: product mix and personalizations. As previously communicated, volumes and mix also reflected our decisions to facilitate the company's transition to a new ERP. In this respect, I want to take this opportunity to extend my thanks to all the colleagues who supported the company with this transition. In summary, shipments were a few units less than prior year, while revenues were up 7%, adjusted EBIT up 10% with a 28.4% margin, adjusted EBITDA increased 7% with a 38.8% margin, and such economic results led to a strong industrial free cash flow generation of more than EUR 360 million. Moving to page seven, we review our shipments for the Q3. The Purosangue, the Roma Spider, and the 296 GTS drove the deliveries in the quarter. We also commenced the first deliveries of the SF90 XX Spider and increased deliveries of the SF90 XX Stradale. Allocations of the Daytona SP3 grew in the quarter compared to prior year, in line with our plans, and slightly sequentially lower than in the Q2. Shipments of the 812 Competizione A decreased and were approaching the end of its life cycle, while the 812 Competizione and the Roma phased out. As a result, the hybrid share reached 55%, in line with product cadence and mainly driven by the 296 GTS. As usual, our product allocations across the different regions were consistent with the product cycle and the developments observed in each respective market. On page eight, you can see the net revenues bridge, which shows a 7% growth versus prior year at constant currency. The increase in cars and spare parts was driven by the richer product and country mix, as well as higher personalizations. In the quarter, personalizations were approximately 20% of total revenues from cars and spare parts, significantly supported by the Purosangue and the Daytona SP3. Sponsorship, commercial, and brand increased mainly thanks to new sponsorships related to our racing activities and largely driven by the new title sponsorship with HP. Currency net of hedges in place had a negative net impact, mainly due to the adverse dynamics of the U.S. dollar and Japanese yen versus the euro. Moving to page nine, the change in adjusted EBIT is explained by the following variances. First, volume, slightly negative, reflecting the lower deliveries. Second, mix and price, strongly positive thanks to the enriched product mix sustained by the Daytona SP3 and the sales of two 499P Modificata. The increased contribution for personalizations and a positive country mix, mainly supported by Americas. Third, industrial and R&D expenses positively contributed to lower D&A, in line with certain models phased out. As D&A increased and reflected the continuous initiatives in software and digital infrastructure, organizational development, as well as brand investments. Other had a positive impact of EUR 14 million, thanks to the combined effect of new sponsorships and lower costs due to revised Formula One in-season ranking assumptions, in line with current constructor standings. Lastly, the total net impact of currency was negative for EUR 8 million. The EBITDA margin was 38.8%, while the EBIT margin reached 28.4% and benefited from flattish D&A. Turning to page 10, in the Q3, our industrial free cash flow generation reached EUR 364 million, reflecting the increase in profitability, a positive contribution from working capital, provisions, and other, primarily driven by the inventory reduction at quarter end, partially offset by increased capital expenditures, in line with the pace of development of our product and the new infrastructure in Maranello, and largely driven by the new paint shop, higher taxes due to a different cadence of balance payment. At the end of September, the net industrial debt position was EUR 246 million after share repurchase of EUR 147 million. Moving to page 11, thanks to increased visibility, we look at 2024 guidance with increased confidence on all metrics. To conclude this quarter's strong financial results, the exceptional reception of the new supercar F80, the high client attendance at our events, and our fast order intake on the 12Cilindri family, along with the strong order book, all reinforce our confidence in executing our future plans with success. These achievements underscore the momentum we are building and our continued commitment to delivering value to our clients and stakeholders. I thank you for your attention, and I now turn the call over to Nicoletta. Thank you, Antonio. Razia, we are now ready to open the Q&A session. Thank you. Thank you. As a reminder to ask a question, please press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. Once again, please press star one and one on your telephone and wait for your name to be announced. Thank you. We are now going to proceed with our first question, and the questions come from the line of Thomas Besson from Kepler Cheuvreux. Please ask your question. Hello, Thomas, your line is open. You may ask your question. Sorry for that. It's Thomas. Thanks for taking my question. I'll have two, please. I'd like to start with the F80. Can you give us an idea about the timeline for the first deliveries of this product and over which time period or how many quarters you intend to deliver it, given its substantial price point and likely contribution? That's my first question. And the second question, I'd like to come back on the mix gains in Q3. Could you discuss why it declined sequentially that much? Is it mainly due to sequentially low Daytona s hipments, or is there something else that explains the relatively low mix gains? Thank you. Thomas, take the first one. The second, Antonio will be more specific. So F80, we start deliveries Q4 2025, and we will go ahead for two to three years. So that's about F80, and the number of cars we will ship is 799. The second one, about the mix, Antonio will comment. The sequential decline is due to the fact that the comparison with last year was based on the fact that both for Daytona SP3 and mix impact and personalization last year was already high in Q3. Okay. Thank you very much. We are now going to proceed with our next question. The questions come from the line of John Murphy from Bank of America. Please ask your question. Good afternoon, everybody. Benedetto, just a question as you look at sort of the upcoming product launches. I mean, you got the F80, which is very impressive, the 12Cilindri, I would imagine a successor to the Icona, the Daytona, the Purosangue, a successor that will come in the next couple of years, and the EV hypercar. There's a lot at the high end here. It seems like it's very strong and will be well received. I mean, how do you think about positioning all this with your customers, and particularly the F80, as we kind of look at it sort of somewhere between the Iconas and the EV hypercar that's coming? John, I think the question. Look, the supercar, as we said, is coming as the pinnacle of technology and performance. As I said also a few minutes ago, this is representing an important step in our electrification journey because it shows how this company, Ferrari, can manage some key components for the electric vehicle. So I think that in F80, there are a couple of important messages. One, Ferrari is able to do in the hybrid world, as well in the ICE world, is continuous to be able to make unique cars with very high-level performances. Two, the roadmap, our product roadmap, is such that there is a continuum between what we were doing in the past and what we are planning in the future. And I would say that this is a unique strength for our company, putting together the tradition and innovation. So F80, we are learning something in manufacturing that will be very beneficial also, not only for electric cars of the future, but also for all other cars. So that is the importance of F80 in our roadmap. Benedetto, maybe just a thought. If you think about the EV hypercar or supercar, however you want to use the terminology, will it be positioned above the F80 or adjacent to it or below it as far as price standards? I am very curious. I would be in your shoes. I would be equally curious. But we are a luxury company, and we want to keep the secrets and desirability a little bit for the future. Let's say Q3, we already did the F80. So let's wait a little bit, John. I understand you, but let's wait a little bit. Okay. We love product. Just one follow-up. Is there the potential? There's a hyperfocus right now in this quarter about volume declining, a lot of concerns in the luxury market. Looking at all this great product coming, Benedetto, is it possible that you run this company with little to no volume growth and drive mix and scarcity to be even more Ferrari-like that would drive profits and margins higher in the future as opposed to needing volume growth? I mean, I think there's this real concern in the short run here around the volume decline. This is a good question. I will take both points. Number one, I would like to remember to you and everyone that this is a company that is putting together two important dimensions. One is luxury, and one is technology. And the second important point is that we always said we give priority to the quality of revenues, not to the quantity. And this is also the way you have to read the evolution of our business plan. We don't want to push too much on the top line, but we want, and we always, as we always did and we plan to do, we want to give priority to the quality of the P&L. Perfect. Thank you very much. Thank you, John. We are now going to proceed with our next question. And the questions come from the line of George Galliers from Goldman Sachs. Please ask your question. Yeah. Good afternoon, and thank you for taking my questions. The first question I wanted to ask was just with respect to the guidance. Obviously, you stated that you're increasingly confident in it. But at the low end, and I'm sure you'll do better than the low end, the implied EBIT for Q4 would be about EUR 400 million, so lower sequentially than Q3. Could you just walk us through a few of the puts and takes as we think about the evolution of Q4 relative to Q3? The second question I had was with respect to some of the residual value developments we're seeing in certain used markets. I think it's quite notable that low-mileage, relatively young 296s are actually trading at lower values than older F8 Tributos with higher mileage. Why do you think that is, and is that leading you to reconsider at all your pricing strategy or power train strategy as we go forward? Thank you. So I think the second one on residual value is in the first one. Antonio will elaborate. I would like to clarify a few things here about residual value. Okay? First of all, the dynamics are not the same in all the countries. You are right. There is one country, U.K., that is a little bit softer, but this is not true for other countries. What I can tell you is that we keep monitoring what is happening on the residual value, and we notice that, let me say, when there is a degree of personalization that is a little bit too high, well, clearly the following buyer is, in some cases, not willing to buy for personalization that pleased a lot of the first buyers. So that's, I think, the two things you have to keep in mind. Number one, the pattern is not the same all over the world. And two, it depends a little bit on the degree of personalization that the first buyers put on the Ferrari. And thus, the second one is not willing to pay for something they do not choose. So this is about residual value. Yeah. The second one is. Hi, George, on the guidance, please do not disregard the fact that the guidance uses the greater-than language that is open upward. Okay? Then in Q4, we are anyway planning higher deliveries of the Daytona SP3 compared to prior year, but sequentially lower than the previous quarters, while in Q4, we have incremental OpEx, particularly related to racing activities and lifestyle, and we are encompassing the expectation of persisting inflation and incremental D&A related to digital initiatives and lifestyle. So these are the main drivers for Q4, even if you look at that at the floor of the guidance end. But please do not disregard the language that we use on purpose. Understood. Thank you. We are now going to proceed with our next question. The questions come from the line of Adam Jonas from Morgan Stanley. Please ask your question. Hi. Good afternoon, everybody. I want to follow up on the implied 4Q guide, but for industrial free cash flow, where your language says up to EUR 950 million, which would imply, if I use 950, a Q4 year-on-year decline of industrial free cash flow of about 36%. So in addition to the factors you already mentioned driving EBIT for the Q4, Antonio, could you comment on maybe your outlook for change of working capital or CapEx that might be driving that type of year-on-year decline in free cash flow? And I have a follow-up. Thank you, Adam, for this question. I think it's important to comment. I think I flagged already in the past few quarters this year will be particularly strong in terms of capital expenditure. And I also said that the spending is more linear compared to what we were previously used to. And this is essentially because our expenditure for infrastructural development, including the e-building in the first part of the year and then the new paint shop from the Q2 on, is going to have an impact. So this is biting into the cash flow for the full year. The second element is obviously that in these conditions, I do not expect working capital to help generating significantly while we obviously have higher taxes in consideration of the higher results that we expect to achieve. Hope this helps. It does, Antonio. Thank you. And just as a follow-up on SG&A increased two times faster than revenue this quarter. Again, you highlighted some of the reasons, including the digital journey, ERP integration, etc. Any outlook on forward SG&A of how much farther this temporary bulge in SG&A, which kind of reversed a multi-year decline of SG&A's percentage of sales, how much longer that might continue? If you want to describe that in either dollar terms or percentage terms. Thanks. Sure. Now, there is an element which is structural. The fact that with the current accounting principle, expenditure for digital infrastructure, particularly for software when we use cloud, is going to be expensed to the P&L directly. So this is a change that occurred a couple of years ago already, and as we grow in this respect, with updating our digital infrastructure, it is going to be an addition to the SG&A spending that we are used to. Does it make sense? Thanks, Antonio. Grazie. Prego. We are now going to proceed with our next question. And the questions come from the line of Monica Bosio from Intesa Sanpaolo. Please ask your question. Yes. Good afternoon, and thanks for taking my questions. The first one is on the F80. Are you going to collect advances on the supercar? And if yes, when do you expect to account them? My second question is on the personalization rate, which was 20% in the Q3. I'm just curious, what is the average price increase embedded in your personalization compared to the previous years? And the third question is on the shipments. Obviously, you can allocate the shipments as you wish. It's a deliberate strategy. In China, shipments decreased a lot. I know that you keep it below the 10%, but I'm just wondering if you can give us a bit of flavor on the consumer spending or on the willingness to buy in China as of now. If you can give us any color, it could be very helpful. Thank you. Okay, so I will take the third one also because I was in China till a few hours ago. And Antonio will navigate you through to other questions. First of all, I appreciate when you underline the deliberate adjective that we are using in our presentation. That's very important. Then coming specifically more to China, I think we have two different. I met all the five owners of the dealership that we have in China. And I can tell you that, let's say, in China, they agree that the growth in China of Ferrari must be done in the right way with the right pace, in the sense that the strategy we highlighted of staying below 10% is the right one because they need to get acquainted with our brand. They do not see any particular negative signal because the order book is still around Q5. We have some areas that are a little bit stronger than others. I can tell you that in that region that is reported as Greater China, we have some different dynamics. One is going a little bit down, that is China. The other one is going up, that is Taiwan. So if you see, we have two different patterns over there. But clearly, I mean, we see attraction of some model in China, and we have to make sure that we provide to the Chinese market also the cars that are more fitting with their, let's say, the tax structure over there because the 12-cylinder is not so. Well, it's a little bit not so cheap in China. It can cost up to three times what the client will pay in Europe. Yes. So this is about China. The first two, Antonio F80. Now, Monica. Yeah. So on the F80, yes, we'll collect advances on the F80, and this will start in 2025. On personalization, 20% in Q3. The average price increase of personalizations that we applied for this year was in line with the inflation that we expected. Okay. Thank you very much. Thank you, Benedetto, and thank you, Antonio. You're welcome. Ciao, Monica. Monica. We are now going to proceed with our next question, and the questions come from the line of Michael Binetti from Evercore ISI. Please ask a question. Hey, guys. Good morning. Thanks for taking our question. I guess with the Daytona moving into a later part of its life cycle over the next few quarters, if I make some assumptions around how many units left to sell and generally spread those out, now that the units are starting to decelerate on a quarter-over-quarter basis, as we look out past the end of this year into the first half of next year, you'll have Daytona as a lower impact to the all-important average selling price per car before you start to shift the F80 in the Q4. I'm wondering how you would tell us to think that you guys will strategically approach fighting that revenues per car compression in the first half of next year with those dynamics. Then, Benedetto, as you move more into electrification and the eventual full electric vehicle next year, how do you see the margins on an expanding portfolio of electrified cars influencing some of the historical targets you've given us, like the 40% EBITDA margin you laid out at the 2026 Capital Markets Day? Thank you, Michael. I take the second, the first one, Antonio. So look, we have been doing what we said since the beginning. We intend, and our plan, call it electrification, hybridization, combustion engine, is in line with our plan. So you can use different adjectives, but what we are doing is in line with our plan. On the first one, you're right. The Daytona is going to decelerate till, say, the Q3 of next year, more or less at what we could expect as of now. In terms of development of the mix, though, it also depends on the range cars and the specials that we have. In Q3, you've seen a few initial units of the SF90XX starting. This will grow, and the 12-cylinders will be added to the panel. So overall, the mix will be less dependent on the Daytona and a bit more diversified in terms of the product offering. Okay. Thanks a lot. Welcome. Thank you. We are now going to proceed with our next question, and the question comes from the line of Tom Narayan from RBC. Please ask your question. All right. Thanks for taking the question. The first one is just a housekeeping one. The ERP volume impacts, just confirming that was pretty much done in Q3 and won't happen in Q4. And then did you guys disclose how many Daytonas were delivered in Q3? And then my second question is a follow-up to George's question on residual values. The one that comes up a lot is Purosangue. Obviously, it's probably too early to tell, but the fear here, obviously, is that it's a very different type of vehicle, maybe used for different purposes, more kind of utility as opposed to what other Ferraris are used for. So that potentially could impact the residual value. I'm sure it's something you'd consider. Just love to hear any thoughts you have on how you plan to maintain the residual value of Purosangue. Thank you. Thank you. I take one and three, and Antonio will take the second. So ERP transition has been concluded, so there is no impact in Q4. And by the way, you may remember that in the previous call, Antonio said that we anticipated some shipment just to make sure that the transition would have been a little, I mean, smoother. This was done always within the three months of Q3. When it comes to the residual value, if I take the Purosangue, your observation is right that what we see is that some clients are using the Purosangue more than other cars. And I think that this is fitting also with, if you want, the original position of the car, to allow the people to enjoy more the car together with more friends, with the family. So we do not have yet a lot of data coming from the client, but we expect to see a little bit more increased mileage of the Purosangue. On the other side, we see that the demand on the Purosangue is very, very strong, keeps very strong. And I can tell you that we receive more or less daily requests of people from all over the world that want to have fun with our Purosangue. The second is, Antonio. Yeah. I think the only one remaining is the Daytona SP3 in Q3. Few units less in the previous quarter, so around 70. But it's not really the specific number that matters, as I said. It all depends also on the mix. And Q3 was particularly heavy in terms of the entry levels of our range cars. Got it. Thank you. You're welcome. We are now going to proceed with our next question and it comes from the line of Henning Cosman from Barclays. Please ask your question. Good afternoon. Thank you very much. Perhaps the first one for Antonio. I'm still trying to reconcile, Antonio, this deliberately softer language with respect to the Q3. I think by most, it's been a pretty strong quarter in terms of margin, in terms of mix. So I suppose I'm trying to get to what that implies for Q4. I mean, some of my colleagues have asked this already, but any more color you can give us on did it actually do better than you expected, or does this still determine a soft quarter, in your opinion? I'm still a little bit confused. It ended up as weak as you thought it would be, or if it actually turned out to be better. If I can just on this one, then I don't know if you have other, but maybe you try and clean the table of the question. I started explaining already in Q2 that in terms of unit, Q3 would have been softer, and this is because with ERP, you basically remain with your production and delivery stopped for some weeks. So in order to ease the transition, we decided to sell some units more in the previous quarter and some less in Q3. Does it matter overall? Honestly, no. Obviously, we arranged also the mix in order to have the quarter sufficiently strong overall from a revenue and margin perspective. It was just flagged because if you look at the units, you see that those are lower than last year, but the units are in no way related to demand or whatever that is read as comments in few reports. Okay? So deliberate decision. Okay. Thank you. And maybe one for Benedetto or perhaps both of you, but just because Benedetto said it in his opening remarks that you are executing in line with the trajectory. Now, I think it's the first time we have the opportunity to speak to you again after the F80 release, and at least compared to my expectations, the economics seem to be even stronger, and obviously, 2026 is going to be a year where you already take a lot of advantage of that vehicle. So in the context of the targets and 2024 already being in the bottom end of the 2026 range, can you sort of put a bit more color around that again to what extent that is now, in fact, well ahead of the planned trajectory, or in what way you would say this is still in line with trajectory, or at what point you may be considering to update us around these things? Thank you. Thank you, Henning. It's a good question. Yes, for sure. Let me say when we did the Capital Markets Day in June 2022, we were not expecting such a level of personalization, especially on something the carbon finish that is highly appreciated by the client on one side, and also, let me say, a good personalization option for us to sell. So in that sense, if you want, the bigger difference between what we planned and what we have seen is this one. Now, for us to give a longer-term view of where the company is heading in the next years, well, H2 next year, we will have the Capital Markets Day, and we will update all of you. But clearly, you hear me always thanking the team as well as the client because all this has been possible thanks to the personalization that the client has been willing to take from us. Thank you both. Thank you, Henning. We are now going to proceed with our next question. The questions come from the line of Stephen Reitman from Bernstein. Please ask your question. Yes. Good afternoon. Thank you very much. I have a question about the F80 and sort of special cars that you can do. We heard that on the 17th of October, we heard that demand for the F80 had been about three times the level that you're actually going to be delivering. So very strong demand from your best customers, and you can only satisfy a certain number of them. We also know that with the e-building, the idea is not to increase the absolute level of production capacity, but to give you more flexibility. And it strikes me that the timescale that you're producing the F80 is going to be quite small in two and a bit years, maybe, to deliver 799 cars. Does the e-building give you? Is it because the e-building gives you more flexibility to do these kind of complex cars? What does that say about your ability to make other kinds of vehicles like this in the future? My second question is about the battery warranty that you're introducing on the hybrids, plug-in hybrids, and obviously for the BEV as well. Can you update us on what the takeoff has been on this so far? Has it already been rolled out? Thank you very much. Thank you, Stephen. Benedetto, I will take the two points, so the F80, as I said, is an important milestone for our electrification journey because for the first time in our history, we are going to do internally some component for all our electrification journey. As of today, if you look at our hybrid cars, well, we are buying from outside some components, while for F80, the key component, the axle, the motors, as well as the battery, will be done in our e-building, and the e-building, you said it well, is not meant to increase the capacity, but it is meant to increase the technology flexibility because we want to leave the ultimate choice of the motorization or the propulsion to the client, so I think this is very, very important. This goes hand in hand with our strategy to push to keep alive the three platforms, the ICE, the hybrid, and to add the electric because, you know, Stephen, for us, it's not electric transition. For us, it's electric addition. We want to add also the electric platform, and the e-building is the tool that will allow us to master, to give this flexibility, and to leave the ultimate choice to our client. So this is about, let's say, the F80 and about our electrification journey. The second question was about the battery warranty. Well, we can tell you in this way that the people are always worried about something they don't know, and the battery is something that usually people don't know yet with the same level of depth like any other component of the car. We wanted, and with this warranty that we started in July, we want to give the peace of mind to the client. It's still a little bit too early to see how many people are activating it, but I can tell you that the people that are taking it, and that was with people in China as well as people in the U.S., in Pebble Beach or during last week's trip, they all appreciated the fact that we give them the peace of mind and we take care of the battery. That's a key point because the battery starts to become something that more and more clients start to know, and I think this was a good they appreciate because we listen to them, so this is good, but we can provide you more data in the next quarters. Thank you. Thank you, Stephen. We are now going to proceed with our next question. The questions come from the line of Anthony Dick from ODDO BHF. Please ask your question. Yes. Hi. Thanks for taking the questions. So just some follow-ups on the shipments and the mix. I know shipments is not the main criterion, but still, with all the impacts in Q3, the ERP, the factory shutdowns in the summer, is it fair to assume that shipments should go up in Q4, or is Q3 the kind of new normal here? And then on the mix, you mentioned a lower mix on the series cars in Q3 with more entry models. How do you think about this for Q4? And also, how do you think about Daytona SP3 deliveries in Q4? Should we still remain above the 60-unit run rate, or is that normalizing from next quarter? And then maybe just the last one on China. So obviously, the market is a bit different here. I was just wondering if the current level of volumes for you is acceptable in China. Do you think supply and demand are well adjusted for you, or could you see further downside in the quarters to come? Thank you. I think the third one, Anthony. I leave the first and the second to Antonio. I believe that the level of volumes, it is acceptable. Okay? And let's say this is something that we've been discussing in detail with the dealers. So we don't see any strange pattern over there for the future. On Q1, we expect Q4 units delivered to be higher than last year and most likely lower than the previous quarter of this year, and on Q4, Daytona deliveries, those will be lower in line with what we commented about in a previous answer given to one of your colleagues. Thank you. Will be anyway higher than last year with Daytona? Yep. We are now going to proceed with our next question, and the questions come from the line of Michael Tyndall from HSBC. Please ask your question. Yeah. Hi, there. Thanks for taking my question. Just two if I may. The first one just related to the F1 provision release. I just wonder if you can give us some context around the scale of that, just trying to understand what it means for the underlying business. And then the second one is a little bit more longer term. I'm guessing when you did the new ERP system, there was a cost-benefit analysis. Can you talk a bit about the benefits? I mean, I'm wondering perhaps what it means for working capital and what's the positive side of this ERP story? Thanks. I think the second one and the first for F1, Antonio will give an answer. Well, I think, Michael, we added two ERP systems in the company. And when you had to pass the data from production, sorry, from sales to production, there was a little bit too much handy workload. So we will find, for sure, some efficiencies in SG&A because, believe me, there were two systems not talking the same language. So we expect some efficiencies. And one of the reasons why it took several weeks to fix it is because, really, we were talking about two different generations of ERP with two different languages. And the second question, sorry, the first question is. Formula 1 provision is around EUR 10 million, the impact, so it's not huge. Okay. Brilliant. Thank you very much. Welcome. Thank you. We are now going to proceed with our last question. And the questions come from the line of Daniel Schwarz from Stifel. Please ask your question. Yes. Thank you very much for taking my question. One is on potential tariffs. If the U.S. would impose a 20% import tariff and the client already ordered the car, I assume the 20% would need to be fully paid by the customers. I guess that's difficult to say, but do you expect any impact on the order book? Maybe you're prepared to reallocate some products to other regions. And the second question is on R&D accounting. So in Q3, amortization declined and capitalization increased with a positive impact on earnings. Based on your launch schedule, you expect this to reverse or to continue in coming quarters? Maybe it's a bit of both. Yeah. I think the first one is still difficult to say. It depends on the dimension of the tariff increase, whether there is an impact on the order book or no, and how this can be shared among the various parties in the game. On the capitalization rate increase, I think we commented already several times. This very much depends on the fact that expenses for innovation and Formula 1 are rather flattish during the year with some seasonality in specific quarters. And while most of the expenditure now is on development of new products, so it's quite normal that we have a capitalization rate that is going to grow. Does it help? Yep. Yep. Thank you. Thank you. Thank you. We will now end the question-and-answer session here. I will now hand back to Benedetto Vigna for closing remarks. Thank you for your time today and also for all your questions. These strong Q3 results and the continuous progress in our journey provide us with further confidence for the development of the years and the futures. If you were here, I would invite you to take the cake for Antonio's birthday. On the cake, it's written a greater than. And then I wish you a good afternoon, a good morning, and thanks again for your attention. Thank you. This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.