Ladies and gentlemen, thank you for standing by, and welcome to the Ferrari 2020 Full Year Results Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer This conference is being recorded. Now I would like to hand the conference over to your speaker today, Nicoletta Russo. Please go ahead.
Thank you, Andrea, and welcome to everyone who is joining us. There are 2 topics that we plan to cover today. First, the group's full year 2020 operating results and then our full year 2021 guidance. In light of this, the duration of The call is expected to be around 60 minutes. Today's call will be hosted by the Group Chairman and Acting CEO, Mr.
John Elkan And our group CFO, Mr. Antonio Picca Piccon. All relevant materials are available in the Investors section of the Ferrari corporate Web 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 to turn the call over to Mr.
John Elkan.
Good morning and afternoon to all. I would like to start thanking all of my colleagues in Ferrari for the remarkable results in 2020, a testament to the strength of our business model and resilience of our core business. In fact, We exceeded full year guidance on all metrics in 2020. These results has been achieved factoring the impacts of COVID-nineteen on all of our activities. This environment gave us the opportunity to learn more about our strengths and weaknesses, which allowed us to further fortify our company for the future.
2020 has also been characterized by the successful digital unveiling of the Ferrari Portofino N, SF90 Spider and 488 GT Modificata. Today, we have the most beautiful, I would like to highlight some of our achievements that we are particularly proud of. Back on track, which is Ferrari's program to safeguard the health of our employees in a COVID-nineteen Secured environment, which has become a reference in Italy and around the world. Equal salary certificate. In July, we were the 1st Italian company awarded in recognition of the Same compensation amongst women and men for equivalent roles and jobs, testifying our commitment to create an inclusive and diverse working environment and social responsibility in helping with different activities during this pandemic crisis.
I'll just mention a few, which we are We launched with our clients a fundraising, matching all of their donations to support The medical staff and the health system of our community in Maranello and surroundings. We joined forces with the Italian Institute of Technology to present the open source project FI5, A revolutionary low cost and lightweight pulmonary ventilator. And lastly, during the 7 weeks closure of the factory, We did not use any state aid program and continue to pay full salaries of all of our employees. 2020 was also a year of celebration. Our 1,000 Grand Prix, the highest number in Formula 1 ever reached, our victories in the GT racing season.
And we reached over 2,500,000 visitors in our Esports series. But our 2020 Formula 1 results reminded us That a great past doesn't equate to a great present or future. This painful reality, both for ourselves and our fans, is that from which we must restart with humility, focusing on what will make us competitive and ultimately lead to winning. As we enter into 2021, which Antonio will give you more details about. We continue to work on our product plan For this exciting decade ahead, adapting it to a fast evolving environment.
Our journey to carbon neutrality will provide a wider framework We are working on a clear plan, including Formula 1, to become Carbon neutral through actions taken directly and indirectly within this decade. We are optimistic about the opportunities ahead of us and look forward sharing And discussing the future of Ferrari for this decade at our Capital Markets Day in the first half of twenty twenty two. Now let me address The CEO succession. We have established as a Board a search committee, which is responsible for a process to identify the right successor to Luis Camilleri. And we want to take the necessary time to find the best possible CO for our company.
On this note, I would like To express my most sincere thank you to Louis, who is listening on our call today. For his personal commitment as our CEO since 2018 and as a member of our Board Since 2015, his passion for Ferrari is and has been limitless. Under his leadership, the company has further affirmed its position as one of the world's Greatest companies. Louis built a leadership team that is continuing to propel our company forward As our results demonstrate and for which I am personally grateful to him And to all of my colleagues at Ferrari. I now hand over The call to Antonio, who will review our full year 2020 results and 2021 guidance.
Since our strategy remains unchanged and our execution of it is on track, He will also directly manage the Q and A session. I would like to thank you all And pass it over to Antonio.
Thank you, Mr. Chairman, And good morning or afternoon to everyone who is joining us today. I start on Page 6, Where you can see the highlights of 2020 results, which exceeded our latest guidance in these difficult times, driven by very strong 4th quarter results. This was achieved on the back of the strength of our core business, Improved Formula 1 revenues, the cost containment actions deployed during the year And a tailwind from foreign exchange compared to our projections. Our shipments in 2020 We're 9,119 units, approximately 10% less than prior year, in line with our production planning.
Group net revenues were €3,460,000,000 down 8.1% compared to prior year, driven by lower deliveries as well as lower Formula 1 and brand revenues. EBITDA came in at €1,143,000,000 down 10% With a margin of 33%, it is worth noting that the EBITDA margin in our core business was better in 2019. EBIT was €760,000,000 down 21.9 percent, embedding higher G and A. Adjusted net profit was €534,000,000 down 23.5% versus 2019 and resulting in an adjusted diluted EPS of €2.88 versus €3.71 of prior year. The adjusted figures reflected a tax benefit with no cash impact on 2020 as a result of the one off Industrial free cash flow for the year was €172,000,000 What you can't see in this chart are the fundamental dynamics underlying our business.
We have recorded strong order intake since summer 2020, fueled by the resumed commercial activities and the new product unveiling. As a result, on a yearly basis, we ended up with a net order intake very much in line with 2019 Despite a very different environment and the trend continued in January. The order book is at record level, Up 22% versus last year and covering the entire 2021 and beyond. Should we discount the effect of the production loss due to COVID-nineteen, we would be up nearly 10%. Cancellations remained well within our average experience and were actually lower than in 2019.
Receivables are holding up well on the back of the growth of pre owned transaction volume. This happened notwithstanding the challenges and thanks to the effectiveness in reshaping the way we engage with customers Through a mix of in person and digital events, digital reveals and more exclusive gathering and test drives. We obviously owe a great lot to our dealers for this, who have been standing by us unabated even during the most difficult to outbursts of the pandemic in their respective countries. Page 7 So the impact of the COVID-nineteen pandemic that mostly hit the Q2 of 2020 due to the 7 week Production suspension and the temporary dealers closure. The flexibility and adaptability that is inherent to our organization And the resilience of the order book underpinned a V shaped recovery.
Indeed, our Q4 was a record quarter in terms of volumes, Net revenues and EBITDA growing double digit versus an already robust Q4 2019. Turning to Page 8. You can see the details of the full year 2020 shipments, down 10 12 units. Following the 7 week production suspension in the first half of twenty twenty and dealers' temporary closure due to COVID-nineteen pandemic, partially offset by a gradual production recovery of roughly 500 units in the second half of the year. Sales of both V-eight cylinder and V-twelve were down 10.3% 9%, respectively.
During the year, despite the COVID-nineteen disruptions, we managed to deliver the Ferrari Monza SP1 and SP2 as originally scheduled. The Vey family continued the ramp up phase, offsetting the special series of the 488 Vista family, which was approaching the end of its life cycle. The 812 GTS, whose deliveries commenced in the 2nd quarter and reached global distribution, While the Ferrari Portofino phase out of the introduction of the Ferrari Portofino M in 2021. The deliveries of the SF90 Stradale started in Q4 following the industrialization delays experienced and then sold. In the same quarter, also the Ferrari Roma commenced deliveries.
Yearly shipments were affected by our delivery geographical location based on the different stages of the life cycles of our model by region. As a result, EMEA and rest of APAC We're almost in line with prior year. Americas was down 19.8%, but showed a 14% upturn in Q4, Thanks to the ramp up of the 2019 models. Mainland China, Hong Kong and Taiwan, posted a decrease of 45.5% in the year, WILD grew triple digit in Q4, thanks to the ramp up of 2019 models and easy comparison versus prior year. As a reminder, we have privileged deliveries in this region in the 1st 9 months of 2019.
Notwithstanding the challenges of the COVID-nineteen pandemic, we unveiled 3 new models in 2020, the Ferrari Portofino M, Yes, of 'nineteen Spider and the limited edition truck car 488 GT Modificata, which will lead the market in 2021. And I'm happy to announce that our portfolio will be further enriched by 3 new models unveiling this year. Turning to Page 9. You can see here displayed the walk of our group net revenues for the full year that was down 8.9% at Revenue from cars and spare parts were down 4.1% at constant currency. Such performance reflects the volume decline and their personalization, partially offset by the positive mix price, Mainly thanks to the Ferrari Monza ST1 and ST2.
Personalization rate on cars and spare parts Revenues was around 18%, while down in absolute terms given the volume contraction. Engines revenues were down 24%, mainly reflecting lower shipments to Maserati and revenues from the rental of engines to other Revenues from sponsorship, commercial and brand were down €150,000,000 Significantly impacted by the COVID-nineteen pandemic, resulting in a shorter number of Formula 1 races as well as lower in store traffic Other revenues, down 18.3% at constant currency, were mainly impacted by reduced Sports related activities and the cancellation of the MotoGP at the Musello race track, only partially offset by the first ever Currency, including translation and transaction impact As well as foreign currency hedges, which played a significant role, had a positive contribution of €32,000,000 mainly the U. S. Dollar. Moving to Page 10.
Let me review the change in our EBIT, which was €760,000,000 down 21.9 percent or 25.3% at constant currency with EBIT margin at 20.7%. The negative variance at constant currency remains mostly the COVID-nineteen impact on More precisely, volume drove a negative variance of €126,000,000 due to previously mentioned reduced deliveries. Mix price variance was positive for EUR 130,000,000 thanks to the Ferrari Monza SP1 and SP2 And the richer product mix and country mix in Q4 despite fewer FXXK ever. This was partially offset by the lower contribution from personalization programs due to the decrease of shipments and the gradual phase out of the 488 Vista family. Industrial costs, research and development costs increased €38,000,000 mainly due to higher D and A, net of the benefit of technology related incentives recognized in the year.
This also included the full cost of employees' paid days of absence during the COVID-nineteen production suspension. SG and A decreased €6,000,000 reflecting significant cost containment actions, partly offset by Formula 1 racing activities. Other decreased EUR 211,000,000 due to the pandemic impact on the Formula 1 racing calendar, Lower traffic from branded activities as well as engine sales to Maserati. The total net positive impact Currency was €38,000,000 year on year. Turning to Page 11.
Industrial free cash flow generation for the year was €172,000,000 The positive generation was driven by EBITDA, Partially offset by investment of EUR 709,000,000 to fuel our long term product development, including over €60,000,000 from the purchase of trucks of land contiguous to our facilities in Maranello. Net of the impacts of IFRS 16, our capital expenditure for 2020 was slightly lower than our guidance due to a slower spending cadence in the quarter that we will make up in 2021. The capitalization ratio was approximately 38% for the year, basically in line with 2019. The adverse working capital impact due primarily The reversal of the Ferrari Monster ST1 and ST2 advances received in 2019 and higher product and raw material inventories to protect the supply chain in these complex months. Tax payment, higher than last year, mainly as a result of the Patent Box mechanics.
Net interest rate debt as of the end of the year was €543,000,000 compared to €337,000,000 last year. During the year, a total worth of €130,000,000 of share were repurchased before the decision to temporarily suspend the program and €212,000,000 were distributed in dividend. With respect to the share repurchase program, It's important for you to know that we remain focused on rewarding our shareholders, and the Board of Directors will decide the best course of action as the year unfolds. At the end of 2020, total available liquidity, including undrawn credit lines For EUR 700,000,000 committed was EUR 2,000,000,000, which compares with Approximately €1,880,000,000 as of September 30. As a reminder, An amount of €500,000,000 was just used to reimburse the bond maturing in January.
Moving to Page 12. You can see the 2021 guidance, which targets a strong rebound versus 2020. With net revenues around €4,300,000,000 and such target is predicated on having trading conditions and affected by further restrictions or impact from the pandemic on our core business. Revenues from Formula 1 still discounting the known uncertainties on the calendar and reflecting a lower 2020 ranking. And brand activities still dealing with the COVID-nineteen challenges throughout 2021.
Adjusted EBITDA between €1,450,000,000 €1,500,000,000 With approximate percentage margins between 33.7% 34.9 Adjusted EBIT between €970,000,000 €1,020,000,000 targeting an EBIT margin between 22.6% 23.7%. This reflects the higher G and A Following the CapEx increase of most recent year, besides the mentioned challenges due to COVID-nineteen. In addition, we expect operational and marketing expenses to gradually resume. Adjusted diluted EPS between €4,000,000 €4.20 per share, assuming approximately 20% tax rate Industrial free cash flow in the region of €350,000,000 Our free cash flow reflects higher CapEx, which we expect to amount to around €800,000,000 with a slight catch up compared to 2020, as already commented. Finally, it is worth noting that the guidance for 2021 rests on the assumption that the exchange rate will remain in line with the last part of 2020 For our most relevant currencies, the extraordinary conditions of 2020 affected all of us in many ways.
What has not changed is the commitment and passion that we live and breathe every day in Ferrari. 2021 guidance growth We clearly know that there is a lot of focus on 2022. On the one hand, the pandemic has clearly affected our plans. As disclosed, we have postponed some initiatives. In addition, the pace of introduction of new emissions regulations all over the world has been accelerating.
To have better clarity on our future, we also need to handle the uncertainties caused by COVID-nineteen impacting the development of our core business, Our Formula 1 rating and brand related activities possibly lasting longer than originally expected. On the other hand, the inherent strength of our business model and resilience of our core business have proved their worth in this recent period, which gives us confidence in our ability to tackle challenges and possibly transform them into opportunities. As our Chairman just said, we have an exciting decade ahead, which we look forward to sharing and discussing when we meet for our Capital Market Day in 2022. With that said, I turn the call over to Nicoletta.
Thank you, Antonio. We are now ready to start
Our first question comes from the line of Michael Binetti from Credit Suisse. Please go ahead.
Hey, good morning guys. Thanks for all the detail. I want to ask about the guidance first, I suppose. If we look at the 2022 EBITDA that we talked about at the Capital Markets Day. It had implied incremental margins of well over 50% relative to The 2019 numbers and then your 2021 guidance implies less than 40% incremental margins 2019, I'm wondering what do you consider are the components that will leave incremental margins in 21 below the trajectory that we knew about.
Thank you, Michael. This will not look that much at 2021 for the trajectory to 2022. This pretty much depends on the mix. We assume that the capital product mix, we assume that the Capital Market Day, As I said, we'll review. There was an expected, a significant growth between the 2 years.
2021, as of now, is back on the trajectory we had at the time we prepared the plan of September 'eighteen.
Let me ask you about that, I guess. If I just look at the bridges you just gave us, if I just Back out the business losses that you showed us hard numbers for in 2020, 126 $1,000,000 from volume and $211,000,000 of lost revenues from Formula One calendar activities and brand activity. That would have put you at $1,480,000,000 of EBITDA in 2020, which is the midpoint for that you guided us to for 2021, obviously, you'll get some car business back. And I know that the general theme of the Capital Markets A long term plan was to keep growing the business and evolving the profitability. So I'm just I'm wondering how much I guess the nexus of the question is how much conservatism you feel like You need to bake into the 2021 margin guidance today.
I think there is some because 2021 is still affected by significant uncertainty. I mentioned some elements in the slides that you see. Cannot be more specific in terms of amounts, but clearly, All of our business, including F1, have, to some extent, to deal with the Uncertainty related to the development of the pandemic.
And then I know John just one last one. I know John mentioned regarding a path to carbon neutrality and developing a wide framework. I thought that was a very interesting comment. Would you mind elaborating because it's a subject of much discussion among shareholders. Could you elaborate on what you think are the key high level underpinnings to get there that we should think about as far as how Ferrari thinks about it?
Yes. I think I can speak on a qualitative basis. Despite the fact that we are focused on The core business, we also have other activities in. Our cost business is basically made of the carbon footprint of our products. F1 is very specific per se.
And brand related EBIT is also have their own feature. So first of all, we need to put all of that together and be able to compute the carbon footprint for the company company wide, basically. And then given the size of this footprint, We can put together a mix initially at least of actions to tackle the issue both with direct actions and with compensation. As I said, the plan is first to achieve carbon neutrality sorry, carbon footprint certification. And then at that point, we'll be probably ready to be more specific as to the actions that we put in place to achieve what our Chairman just mentioned It's the goal to become carbon neutral within the decade.
Okay. Thank you very much, guys.
Our next question comes from the line of John Murphy from Bank of America. Please go ahead.
Good afternoon. And because you mentioned Louie was listening, Louie, we hope you're doing well and miss you on many levels. Just a first question and I think Michael's question on 2021 guidance, I think it's very important Antonio because I think we're all trying to figure out what the basis is to work off for our 2022 And beyond numbers, because it still seems like there's some noise and pressure on 2021. Is that kind of a fair statement to say, hey, 2021 is still a year that's got COVID noise, some incremental costs and some other things that might not be the best way to think about building off of as a basis year for the trajectory in 2022 and beyond. Is that a fair statement?
I'm not sure I got all the details of your question because the line is not very good. I understand you're asking about Our 2021 may be informative as to the development of the results for 2022. Only partly, I would 2020 1 is mostly execution, assuming that COVID-nineteen allowed us to do so, to execute well in alignment with our plans. 2022 already encompasses the expectation of the introduction to the new model, and there is where we need to be more specific later on.
Okay. And then just a second question. You mentioned Personalization was lower in 2020. I'm just curious, as you think about 2021 and a recovery And then beyond, do you think that personalization will be significantly additive to results going forward and was a little bit depressed In 2020 because of COVID?
Okay. Thank you for this question, John. I think we discussed a number of times in previous calls, too. It's difficult to project personalizations because usually, while the average does not move much throughout time, It is actually depending on the mix of our products. We mentioned, I think, already in a couple of calls the fact that personalization rate has been influenced by special Clearly, the price of the car is important because it affects the denominator, meaning the total revenues.
So I will not be particularly mindful about the fluctuation of this personalization rate. What actually matters in absolute terms are the margins that are attached to that. So you may imagine that the personalization rate for Ramonza In terms of the share of revenues, it's lower compared to that of Portofino or Medio of Atista. It depends. It's a balance of that, The contribution may be very different.
Okay. And just lastly, On the Concorde agreement, I'm just wondering if you could give us any basics on the positive or negative side For economics going forward and just how we should think about that in a very basic way on the positive and negative swing factors?
Yes. I'd prefer to comment saying that the net impact of the introduction of the new Concorde agreement and the budget cap It's kind of neutral for us. That is the expectation the way we monitor it throughout time.
Okay, great. Thank you very much.
Thank you, John.
Our next question comes from the line of Giulio Pescatore from Exane. Please go ahead.
Hi, everyone. First of all, I also wanted to take this opportunity to wish Louis all the best. And then now coming to the questions, I want to come back To the 2021 guidance and in particular to the free cash flow one, I really struggle to understand how to reconcile this €350,000,000 guidance also Because you've given us €800,000,000 CapEx number. So what are the other assumptions behind And this number in terms of working capital. And then how do we think about bridging this result with the 2022 target given that It would imply a growth of 3x in cash flow generation.
Thank you, Giulio. As you know, our free cash flow is basically the result of How much we take out from the EBITDA due to capital expenditures. Working capital in a wider We take into account also the impact of the advances that we receive on the Monza. And we have a drag significant drag on it still in 2021. Basically, we catch some But significant part of the price of the Monza is already in 2019, and we won't have them in 2021.
And beside the usual dynamics of the rest of working capital, that does not count much usually, we have the tax and financial charges payment. As far as tax is concerned, you should take into account the fact that new patent block schemes Basically, provides for the cash benefit to the split in 3 years. So there will be a slight reduction in 2021 That's what we witnessed in 2019 2020.
Okay. And yes, yes, a lot. Thank you very much. And If we look at the 2022 number again, does it include any impact from new deposits For a potential new limited edition car or is a or should we say it's a clean number?
Yes. Yes, that's a fair assumption.
Okay, okay. Thank you very much. Then I also wanted to come back on the decision to postpone the CMD. Is that only driven by the fact that there isn't a permanent CEO at the moment? Or is there anything else behind the decision?
I don't think we ever communicated a date for the DMD, Giulio. Sorry, we will speak about that.
Okay. Okay. No problem then. And then also looking at your shipments for Q4, I mean, you were indicating shipments down around 9% for the full year in 2020, you closed the year down 10%. Is there any maybe conservativeness in deliveries in the last few So the year, have you taken maybe have you held the levers to kind of protect?
No, it's just rounding, Giulio, just rounding.
Okay. Okay. Thank you very much.
Our next question comes from the line of Susie Tibaldi from UBS. Please go ahead.
Hi, thanks for taking my question. First of all, I would like to talk a little bit about the mix evolution to expect in 2021. Clearly, your mix is becoming stronger and stronger. At the same time, we do have the annualization on the Monza and also the PISTAS So net net, what should we expect in terms of contribution from the mix in 2021?
We expect mix to be positive, and this is due to the fact that we'll keep on delivering the Monza As per our plan, and we should have significant growth in terms of the deliveries of the SM-nineteen. So that's the main driver of what we expect.
Okay. And when it comes to the percentage of volumes that you expect to be hybrids, Because you had a target at the CMD to have 60% by next year, which I mean, at the moment, you have 2 models. So how should we think about the step up? And do you have can you give us an indication of what percentage of 2021 volumes could be hybrid?
No. As you know, we prefer not to go into that. We prefer to look just at revenues. Those are much more relevant than volumes per se.
Okay. And on the CEO search, I mean, I can imagine that you cannot give details in terms of Things that you might be considering. But can you perhaps discuss a little bit what are the key criteria and qualities that you are looking for in the next year?
I'm sorry, the question is about what? I didn't catch you.
Yes, the search for the new CEO, if you can Describe the key criteria and the characteristics that you're looking at.
Yes. I'm sure the Board is considering All of the criteria that are necessary to run a company like ours, you're right. Yes.
Okay. And maybe just one last one as a clarification. Can you just remind us what plans Have been affected and what initiatives have been postponed as a result of COVID?
No, Once again, I think we mentioned a couple of times this year, the basics and the main Drivers of our growth plan remains unchanged. It's just a question of timing for most of that. But as we are not specific in advance to the models we launch, we cannot be on even more, I would say, On the initiatives that will come in a couple of years or longer.
Okay. Thank you.
Thanks.
Our next question comes from the line of Monica Bossio from Intesa Sanpaolo. Please go ahead.
Good afternoon, everyone, and thanks for taking my questions. The first one is on China. Can you give us a flavor on what are we going to expect in terms of shipments from Mainland China, Hong Kong and Taiwan in 2021, and we should see some major flow of Shipments in the coming year from these regions. And the second is on the timing For the new models, can you give us a rough timing for the announcement of the 3 new models in 2021? And the very last is on the quarterly trend.
I know it's difficult, but the outlook is still uncertain. So do you see some differences a bit quarter by quarter? If you can just give us a flavor about the first quarter and going forward. Thank you very much.
Thank you, Monica. I'll start from the launches. That's a nice try. But As you know, we do not go into that sort of details. With respect to the quarterly development of the year, we have Some seasonality, something has changed in 2020 due to the impact of the pandemic.
So the comparison will not be an easy one. It's not just the development of volumes, but it's The mix that changes and also in terms of revenue recognition for the F1 activity. So it's a bit difficult without entering into the detail of modeling, Fair enough to do. The last one is on China. What we currently witness is a nice comeback of orders from there.
You should not ever look at our deliveries in 2019 2020 because these were affected by our decision to anticipate introduction of a new emission regulation that was unexpected in 2019. As a result, 2020 So firstly in the comparison, 2021, what we currently see is a significant growth of orders, particularly and nightly, That's maybe an interesting one on the Monza sorry, on the Roma and with a significant share of orders from women there. So that means something in terms of the success a car may have even if with a turnip engine.
Okay. Thank you very much, Antonio. Thank you.
Thank you, Monica.
Thank you. Our Our next question comes from the line of George Galvez from Goldman Sachs. Please go ahead.
Good afternoon and The first question I had, and apologies if you did allude to this in the comments, but just for this year, What are your assumptions around raw materials and FX? And have you already taken actions To price through the appreciation in the euro against the U. S. Dollar, which we saw last year.
Thank you, George. In terms of our policy on FX, as you know, We have a policy that provides for an hedging on a rolling basis with some Target percentages. So a significant chunk of 2021 is already been hedged throughout 2020. Still, we do not go 100%. There is a room for Changes in impact from changes in FX on our results, which is minimized, but may go one side or another.
As far as raw material, for those who really matter, we have a similar policy.
Understood. Thank you. And then the second question I had was just with respect to the order book. You're obviously extremely clear that the order book It's very strong and extends well into next year. Can I just ask you, is there much variation by model line Or more importantly, by market in terms of what you see with respect to the order book?
Or is it pretty robust across the board at this point in time?
I would describe it as pretty robust across the board across geographies, across the board meaning across products and geography, nicely enough.
Great. And then the final question, just to clarify, and I think both Michael and John have already Touched on this, but I just wanted to clarify, at this point in time, you still are aiming to deliver the 2022 targets That were presented. Is that a fair statement?
I think that will come with That will come with the Capital Market Day. At that point, we may describe the strategy we are pursuing And if and by how much any results expected for any target expected for 2020 is to be changed?
Thank you.
Sorry, 2022.
Thank you.
Thank you, George.
Thank you. Our next question comes from the line of Thomas Besson from Kepler Cheuvreux. Please go ahead.
Thank you very much. I'll have a couple of questions left, please. Firstly, you had Because of
Sorry, Soma, can you maybe speak a bit louder and closer to the microphone? We have problems hearing you. Thank you.
Sure. Sorry for that, Nikita. Is that better now?
Way better. Thank you very much.
Okay, great. Sorry for that. So A couple of questions left, please. First, on the EBIT bridge in 2020 because of COVID, you had And on those other line that was very negative, should we expect part of that to Reversed positively in 2021? Or is it just something that's gone?
Not sure I got which is the part of the other bridge that you were talking about?
The one called OZUR.
Sorry. Well, you know that the other includes the impact of F1, Which in principle may come back to the extent the calendar the F1 calendar It's not affected the same way it was in 2020. That obviously include the revenues from the commercial right And the revenues from the sponsorship. But also include the impact on EBIT From the delays on our delays and closure of our brand related activities, once again, there, We are very much dependent on the evolution of the pandemic. And finally, we are also partly dependent on Maserati, I mean, in terms of volumes and margin attached to that.
Okay. Thank you. Actually, give me a Connection to the next question, can you just clarify the potential financial consequences of stopping the delivery of Maserati engines? We are not fully aware, obviously, of the contract you had with them. Is there a need to write off any asset or?
The agreement with Maserati is expected to end in 2023. That business is dilutive for us in terms Margin and furthermore, I think we outlined since the time of the Capital Market Day that we expect to have some capacity to be freed up From the start of their activities that may be used for the development of Our models and of our powertrain going forward.
Okay. Thank you. I have a last question that may be Beyond the scope, but I tried. Could you give us any hint about the 2022 CapEx Plan and the time line for the Purosangue launch, whether it's still within the frame of the initial plan or whether it's now pushed
No, I would prefer not to go into that. Once again, we said there are some developments ongoing. It's better to talk
Thank you. Our next question comes from the line of Massimo Vecchio from UBanca.
Yes. Good afternoon to everybody. I have a follow-up question on the CapEx indication. €800,000,000 is really a big number. It's probably the highest in the history.
I was wondering if you can give us some details on what are the number one of 2 projects that you are investing in Investing in or at least by categories, if it's R and D for new propulsions or it's any color would be helpful.
Sure, Massimo. By the way, this was the same target we gave us better An expectation that we gave beginning of last year when we started 2020 and before being informed about the impact of COVID. And there is some catch up in that number from the slower pace of our investments in the last part of 2020. Mostly this is mostly product, so product development, which all what is attached to that. In terms of the consideration that we are not anymore only on term engines, we also have, As you well know, hybrid and we are working on other.
Infrastructure is a small part But we cannot disregard the development in our factory here as we did, by the way, buying, purchasing contracts Contributes to the to our headquarter here. So as I said, this is mostly product. And this is, by the way, fully in line with what we said at the Capital Market Day back in 2018. So we're just in an execution mode there.
Okay, okay. Thank you very much.
Our next question comes from the line of Adam Jonas from Morgan Stanley. Please go ahead.
Thanks everybody. And I have a question for John Elkann, but I just wanted to say at the outset that, I mean, all the talk around 2022 guidance, I totally understand it. But Just think about how much the world has changed in terms of CO2 and climate change and EV economics since the 2018 CMD. It almost renders the 2022 guide irrelevant in my opinion, but just my opinion. But John, Question for you.
Ferrari vehicles, I know management in the past on tailpipe emissions I have the comment that because Ferrari vehicles are such a minuscule part of the park that it's really tiny And that you could kind of talk to regulators and somehow convince them we're not a big deal and you could kind of purchase credits and Very easily at current carbon prices, or even more than that, kind of make it neutralize it. But what's happening, of course, as you know, John and the team, now cities are getting involved, London, Los Angeles, Hong Kong, big Ferrari cities are kind of saying, no, we're not going to allow the operation of ICE vehicles in the coming years. And so it just means you run the risk of having the regulatory environment move outside of your control. So with that in mind, I'd love to hear maybe a direct question. John, can you see a day within the next decade Where the majority of Ferrari's products are 100 percent electric, not just hybrid, because that's still considered tailpipe Climate changing cars in the eyes of these mayors and cities that we're talking to and you're talking to, can could you see and I'm not asking you to say it's But is that too radical for Ferrari while protecting the sanctity of the brand?
Thanks, John.
Hi, Adam. Good to hear your voice. I think that The best way to answer is really an open invitation for next year in Maranello to talk to you and All your colleagues who are going to join us on the exciting journey that we have over this decade And 2,030 will still be a year where we will have hybrid cars. So within this decade, we won't be seeing a Ferrari fully electric. What we will see within this decade It's an electric Ferrari and I hope you will buy 1, Adam.
I love you, John. Let's talk about it.
Thank you. Our next question comes from the line of Steven Reitman from Societe Generale. Please go ahead.
Yes, good afternoon. Thank you. Question on you mentioned very impressively that your cancellation level In 2020, it was lower than in 2019. Could you comment a little bit about where were the cancellations, either by geography and by Product ready to get an idea about that. And secondly, you alluded on the new customers that you had very strong interest from women in China for the Roma.
You talk more generally about the level of interest globally further on the Roma and also the level of interest for the SF90 Stradale at the other extreme And particularly the amount of the proportion of people who are specifying the Sertafirano additional uptake? Thank you.
Yes. Thank you, Stephen. In terms of the cancellations, we were public in the second quarter. That's the fact that we had some cancellations in North America and in Australia. They were pretty much concentrated there.
From then on, We haven't seen anything specific. So the ones that we had were usually evenly distributed throughout the various geographies, nothing Special to report. With respect to color on the order intake from for the various models, I think it is confirmed that the Roma attracts more than any other Ferrari before new to Ferrari's customers, which is interesting and nice. It happens also that BSF90 attracts younger customers, more probably than we would have expected. And the order book for that guy is very, very long.
I mean, I Significant preorders have been put already some months ago. And that are probably the 2 most interesting element you should take into account.
And on the and in terms of sort of the model cancellations, were they concentrated at the lower end Or the higher end of the model lineup?
I don't think there is any specific concentration
Thank you.
Thank you. There are no further questions on the line. Please go ahead.
Thank you all. Bye bye.