RACE

Good day, and thank you for standing by. Welcome to the Ferrari twenty twenty-six first quarter conference call and webcast. At this time, all participants are in listen only mode. After the speakers presentation, there will be the question-and-answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Nicoletta Russo, Head of Investor Relations.

Thank you, Nadia. Welcome to everyone who is joining us. Today, we plan to cover the group's Q1 2026 operating results, and the duration of the call is expected to be around 45 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. Having said that, I'd like to turn the call over to Benedetto.

Thank you, Nicoletta, and good morning, afternoon to everyone listening to us today. 3 are the key messages I would like to highlight in the current uncertain environment. 1, we delivered strong and growing Q1 earnings supported by mix. 2, our order book further extended. 3, we confirm our guidance for the years. How do we navigate the uncertainty of our present times? Well, we rely on 3 fundamental pillars of our behavioral model. A clear focus and strong discipline. Second, a nimble and flexible approach. Third one, a united and cohesive team with 4 wheels on the ground. In volatile times, priorities can shift quickly with the risk of losing focus of what truly matters in the long term. At Ferrari, we continue to execute according to our plans.

Whether we are launching a new model, opening a new store, or competing on track, we keep 4 wheels on the ground and focus on what makes our brand stronger over the long term. Dealing with the current context requires a nimble and flexible approach. This has been particularly true in managing the Middle East situation. Since the beginning of tensions, our utmost priority has been the safety of our clients, dealers, partners, and employees. In the region, we have an office with 11 Ferrari colleagues, and we serve 7 markets through 7 dealers, which employ more than 200 people. We provided full support and maintained a strong relationship with our community. We kept the showrooms and workshops open, and we continue to organize test drivers for all our eager clients. In the last 2 months, we did more than 500 test drives.

Indeed, in the region, our deliveries have been flat year-over-year despite the conflict. In light of temporary logistic challenges, thanks to the precious support of our dealers and logistic partners, we have identified alternative solution to continue serving clients in the region while promptly delivering to other markets. This was possible thanks to the visibility and flexibility granted by our business model, as well as our global presence and careful allocation strategy. A special [Foreign language] grazie to all the people in the Ferrari ecosystem, not only Ferrari colleague, who are supporting us daily. Our clients from all over the world have continued to attend our events and to show interest in our brand. This translates into a continued order intake that puts us in a very solid position with an order book that further extends towards the end of 2027.

We posted strong financial results in this quarter with revenues and profitability both up year-over-year and in line with the trajectory of the 2026 guidance. Antonio will give you the full details in a moment. Let me highlight 3 key numbers. The revenues were close to EUR 1.85 billion. EBITDA surpassed EUR 75 million. Industrial free cash flow was more than EUR 650 million. None of this would have been possible without a united and cohesive team. This is the spirit with which we are approaching the final step of the reveal of the Ferrari Luce. On May 25, a selected group of Ferraristi and prospect will have the opportunity to experience the world premiere in Rome.

It was exactly in Rome on May 25th, 1947, when our first car, the 125 S, won the first race with Franco Cortese, who said, "These cars rev such much quicker than the 4 and 6 cylinders. It looks like it has an electric motor." Ferrari Luce is far more than a new model, and it's far more than electric. It's the perfect materialization of the purpose that motivates us at Ferrari every day to audaciously redefine the limit of possible. Blending together tradition and innovation in a unique way. It is the convergence of so many incredible technologies and the passion of so many people. For the Ferrari Luce, we registered over 60 patents in many different areas from electric engines to inverters, vehicle dynamics, and battery integration into the chassis. From steering wheel to all displays and simpler user interface, from car glass windows to wipers.

There is not a single dimension of the car that has not been rethought by the team in innovative way. Still a few weeks of patience, and then it will be visible to the entire world. Even the most innovative technology is meaningless without purpose. Ours is to create emotions. This is where we started when we first imagined the Ferrari Luce, and we believed we succeeded, as we are fully aware that the clients will be the ultimate judges. There is much anticipation and curiosity from clients, both longstanding and prospect, and we are very eager to begin this new chapter at the end of this month. This launch follows the unveil of the Maxi Spider in March, which was the first of four launches we have committed to do for this year, in line with our strategic plan.

The Maxi Spider exemplifies the Ferrari sporting lifestyle in a open-top configuration. It's a seamless blend of performance, elegance, driving pleasure, ease of use, and versatility. Another model with a lot of innovation because for us, innovation is key in everything we do. Innovation means also listening to our clients' preferences. A perfect example is the reintroduction of the physical button on the steering wheel, a feature we are making available for all models. Talking about unique features, a few days ago, we presented the Handling Speciale package for the Purosangue. This exclusive personalization package will contain several vehicle dynamic enhancement and design elements for the Ferraristi who decides to further enhance its sporty nature.

Before turning to racing, I would also like to confirm that since last March, we are testing all our production cars on our recently built e-Vortex with clear advantages for our clients in terms of quality, for our test drivers and local community in terms of safety, and for the environment in terms of sustainability. Just remember that 1 year ago, the e-Vortex was only a beautiful project on a piece of paper. I mention it as a further demonstration of our agility and nimbleness stemming from our relatively small dimension and geographically co-location in 1 place. Now, turning to racing, we have kicked off the 2026 seasons with podium finishes, both in Formula One, where we see the initial encouraging signs of our progress under the new regulations, and in the World Endurance Championship, which began in Imola, our home race.

In talking about new beginnings, we recently unveiled delivery of Hypersail, a project in which innovation, performance, and design research come together to define a new frontier in ocean sailing. In lifestyle, we are continuing to execute our strategy with consistency and sophistication. The opening of the new flagship store in London's Old Bond Street is a testament to this. When you enter the store in London, you enter the Ferrari world. We continue to look ahead with the focus, discipline, and energy that are required in the current context, and confidence in the long-term opportunities ahead of us, while always keeping the four wheels on the ground. Now, I hand over to Antonio to review the Q1 results before our session of Q&A. Thank you.

Grazie, Benedetto, and good morning or afternoon to everyone. On page 4, we show the highlights of the 1st quarter, which represent another strong start to the year. All our business dimensions contributed positively with a sports car mix, particularly robust and a visible contribution from both racing and lifestyle activities. We achieved these results in the current geopolitical and macroeconomic environment, also leveraging the flexibility and visibility of our business model, as Benedetto mentioned. Let's look at the results in more detail. Page 5 presents the Q1 shipment breakdown and model changeover that we are executing as planned and in line with what we commented at the beginning of the year. The cadence of our deliveries throughout the year has been deliberately designed to ease the model changeover. This has resulted in Q1 deliveries being slightly lower than last year when, in contrast, they were pretty high.

In any case, total Q1 deliveries were not impacted by the outbreak of the geopolitical crisis in Middle East as we leverage our allocation flexibility. We tackled the logistics challenges in the region, acting on two different fronts. During the first weeks, we brought forward certain shipments to other regions. Second, we identified alternative logistics solutions, including the re-routing of sea freight and the use of air freight to keep on serving the region as we are currently doing. Thanks to such actions, our shipments for the quarter were in line with our plans. In the quarter, deliveries of the 12Cilindri family, the Purosangue and the SF90 XX family increased. The 296 family and the Roma Spider decrease in accordance with their life cycles, and the F80 was in ramp-up phase as per our programs.

Finally, we commenced the first shipment of the 296 Speciale family, the Amalfi, and the 849 Testarossa. On page 6, the net revenues bridge shows a 6% growth versus the prior year constant currency and a 3% growth, including the headwind from currency, mainly related to the US dollar and the Japanese yen. The increase in cars and spare parts was driven by the richer sports cars mix, including the personalizations with a robust country mix supported by America. Personalizations accounted for approximately 20% of total revenues from cars and spare parts at constant currency, and were particularly relevant for the SF90 XX family and the Purosangue, driven by the adoption of carbon and special paints. Sponsorship, commercial, and brand also increased, thanks to higher sponsorships and lifestyle activities, mainly driven by licenses and a positive one-time effect on commercial revenues.

Other revenues were also positive and were driven by the rental of engines to other Formula One racing teams, according to the renewed agreement with Haas and the new one with Cadillac. Moving to page 7, the increase in EBIT was mostly driven by the very strong mix price variance, which included the already discussed personalizations and country mix, as well as a positive product mix, net of the higher U.S. import tariffs introduced in Q2 2025. In detail, the product mix was sustained by the ramp-up of the F80 and higher deliveries of the SF90 XX and 12Cilindri families, and lower deliveries of entry-level models, namely the 296 family. Partially offset by the phase out of the Daytona SP3 and the SF90 Spider, as well as lower units of the 499P Modificata. Other was positive, mainly thanks to racing.

Both were partly compensated by the planned lower volumes, higher D&A in line with the start of production of new models, and higher SG&A to reflect marketing activities organized in the quarter, including, among others, the second step of the Ferrari Luce reveal, the launch of Amalfi Spider, and the opening of the London flagship store for our lifestyle activities. Percentage margins stood at remarkable levels, including the headwind from FX, with EBITDA margin at 39.1% and EBIT margin at 29.7%, and they were even stronger at constant currency. As per page 8, our industrial free cash flow in the quarter was very strong and supported by the increase in profitability and a positive change in working capital, including a still positive net effect from advances. This was partially offset by capital expenditures, which are mainly focused on product and infrastructure development.

In this respect, let me note that the construction of the new paint shop is progressing as planned. We have completed the external walls, and we have started to install the equipment. At the end of March, the company was in a net industrial cash position for approximately EUR 390 million, also including the share repurchases occurred in the quarter. As a reminder, the net financial position at the end of Q2 will also reflect the dividend distribution of approximately EUR 640 million, following the approval by the AGM and the ongoing new tranche of the share buyback. Turning to page 9, we confirm our guidance for the year, also reflecting the current visibility related to the Middle East situation.

Being flexible is a key distinctive asset of our business. It is exactly in this situation that we can leverage it. As such, compared to our initial estimates, we have adapted our planning for the year, resulting in a more evenly spread profitability between H1 and H2, following the stronger country mix determined in Q1. Today's strong results testify once again the uniqueness of our business model. Despite the ongoing challenges posed by the global scenario, we continue to look ahead with full confidence. Thanks for your attention. I turn the call over to Nicoletta.

Thank you, Antonio. Nadia, we're now ready to start the Q&A session. Over to you.

Thank you so much. Dear participants, if you wish to ask a question please press star one one Now we're going to take our first question, and it comes line of Ed Ubine from Morgan Stanley. Your line is open. Please ask your question.

Yeah, good afternoon, guys. just 1 question for me. I think if I understood correctly, Benedetto, I think you said that the deliveries in the Middle East were flat year-over-year, which is quite an achievement. When I look at deliveries in total in EMEA, I think they were down by 243 units. I guess my question is, could you please provide a bit more color on the European markets in Q1 in terms of units? Then in Q2, what do you expect for Europe and I guess the Middle East? Middle East might be a bit difficult to predict, but just your sense. Thank you.

Thank you, Edward. The first one, yes, we have been able to keep the delivery flat year-over-year on Middle East, and this is one that you can see easily outside. There are also other important points that I would like to highlight. Number one, the numbers of test drives that the people were eager to do in the 7 countries of the Middle East, as I said, more than 500 test drives have been done, and this testifies once again the strong attachment to our brand. The other point is that if you are going to see the order book, it's having a good pace over there and there is nothing strange, nothing abnormal on the cancellation.

The situation over there is pretty much under control, and I have to say that this is also because of the thanks to the support of our logistic partners that have been able to keep, you know, to deliver the cars to the client. This is for EMEA, for the Middle East. For EMEA, well, I think that, you may remember in the last call, Antonio said that we have different model in ramp-up phase. There are different dynamics, a different kind of demand from different client in different parts of the world. There is nothing, let me say, that was not planned, if not the fact that we are ramping up a lot of new models, the one that we launched in the last years.

Everything is proceeding as planned, and again, thanks to a lot of partners around us. This is, for me, important to underline because we are keeping alive all the logistic over there. This morning I got a WhatsApp from a client that was extremely happy to have received the car for his birthday. This make us very proud, and also they understand that we put the client at the center of what we do.

Okay. Thank you.

Thank you, Ed.

Thank you. Now we're going to take our next question. The question comes line of Michael Binetti from Evercore ISI. Your line is open. Please ask your question.

Hi. Thanks, guys, for taking all our questions here. Antonio, could you speak a little bit more about your last comment there that, you know, relative to where we were 90 days ago, the spread in profitability has moved more even for one H versus two H. Maybe what's moved a little bit there. Our understanding coming off the pre-close call is that we didn't, the adjustments you guys made to pull some of the units into the U.S. to help in the quarter didn't come out of the second quarter or hopefully out of two H. Maybe just some understanding there of what the moving parts were. If you could confirm, is the second half still a higher price mix than the first half for the year?

I guess backing up, Benedetto, on electrification, there's a new push in Formula One and with the FIA to go back to V8 engines with a very small electric and hybrid component by 2030. It's a bit of a 180 from the current engines that are, you know, 50/50. Some of the other manufacturers are on board at this point. I'm curious to get your view on how that influences your hybridization and electrification thoughts for the road cars at Ferrari longer term.

Michael, let's wait for Antonio. I come back to you.

Michael, I just said that we expect now profitability to be a bit more evenly spread between H1 and H2. We're talking about absolute value of EBIT or EBITDA, better. With respect to the reasons why, it's just that in order to adjust for the initial difficulties in delivering to the Middle East, we have been bringing forward to other regions some cars. There's been an impact in terms of product mix and overall and country mix. That obviously has an implication. We still see H2. H2 is slightly better in terms of mix compared to last year. We'll see as we go. That's the bit more bit better the first half compared to what we said at the beginning.

Obviously on that, it's not just the redirection to other countries, but even the fact that where these models were more personalized compared to others. It's a mix of country and personalization that matters.

Just to follow that before we go to the other question, Antonio. Is Q1 still the low point on units for the year on the year-over-year decline?

No, I will not go into that detail, Michael.

Okay. Benedetto on the electrification.

Look, I think that we believe in the three propulsion going ahead. We already knew about this discussion with FIA. I mean, this is not something maybe you read now, but this is a discussion that is ongoing since a while. In October, we don't change our view of the last October, okay? I think that there is a need for sure to review a little bit every five years like they do the regulation over there in FIA, but there is no implication. There is no implication for the road car and not at all for our strategy.

Okay. Thank you very much.

Thank you, Michael.

Thank you. Now we're going to take our next question. The question comes line of Monica Bosio from Intesa SanPaolo. Your line is open. Please ask your question.

Yes, good afternoon. Thanks for taking my question. I will ask one at a time. The first one, Is on the supply chain. I was wondering whether the company has seen some supply chain shortages. On the back of this, there is a mounting inflation. I was wondering how if the company can give me an update on the industrial cost and also on the forex impact that was expected to be EUR 200 million this year. This is the first question. Sorry.

Well, the effects Antonio will say.

Yeah, we still see that level of headwind because of the effects, Monica.

Monica, we don't have problems for the supply chain. We don't see this inflationary force moving up. That's where we are. I would like to say also that this is important because we always take care, I would say, of the suppliers. That is also one of the reason why they are supporting us when the things require a strong cooperation in unity among all of us. I think that this is important. When we say we believe in sustainability, we mean it. We don't just say to do brand activism or whatever. We believe in it. We act coherently with what we say.

Perfect. Thank you very much. On industrial side, on the order book evolution, I was wondering if there's model which is mainly driving the order book increase. About the model changeover, the first quarter was impacted by a relatively low weight of entry models. I was wondering if there is a quarter that could be more impacted by the entry models, maybe the second quarter? Just some flavor. Thank you.

Antonio, you will.

Well, maybe I comment on the fact that there are some models phasing out and others phasing in. In terms of the lowest number of deliveries of new models, I would say that Q1 is certainly the one where we have the lowest impact, and then they are gonna grow over the rest of the year. I'm not sure about your first question. Were you asking about the Luce or?

No, about the order book evolution.

Yeah

There is a model which is mainly driving the order intake.

you get additional clients, if I may add.

Yeah. All Actually, all models are growing the order book as of now. There are some that are already sold out and others that are growing as we go, in terms of introduction of the model.

Maybe what we can add, Monica, is colors about the. We have a lot of new clients that are coming on on the Ferrari Monza. Let me say, out of this, there are some client coming from some specific brands. That's nothing more than this. No other pattern, if not what Antonio Picca Piccon was telling, that we see a strong, a very good reaction from all the models we unveiled last year.

Excellent. Thank you very much. Thank you.

That's it.

Thank you. We're going to take our next question. The question comes line of Stephen Reitman from Bernstein. Your line is open. Please ask your question.

Yes. Good afternoon. Thank you very much, Benedetto Vigna and Antonio Picca Piccon. I have two questions. First of all, just some clarification again on the comments about the H1, H2. Obviously, I know that, you think very much more in long term and for the year as a whole, but obviously, the comment that was made that, the year is gonna be more balanced between H1 and H2 has caused quite a reaction on the share price.

Just to get some clarification on this, are we suggesting that the Q1 was certainly better than it had originally been anticipated, and we'll see what happens with Q2, but you're not necessarily suggesting that we were taking away growth from H2 and putting it into H1, considering that the cadence of the increase in ramp-up of F80, the launch of 849 and obviously these vehicles hitting the U.S. market? Some clarification on that would be very helpful. My second question is about Luce. We're very much looking forward to seeing this vehicle. Can you talk about the people you've invited among your collectors to this event?

Have any people actually refused to come along to this, are not interested in electric cars, You're seeing interest right across the board, among the collectors and other people you've invited to this event? Thank you very much.

I think the second one, Stephen. The Ferrari Luce, actually, we are overbooked. We have clients, new clients, and we have also some client of Ferrari. We invited the new clients and existing clients. I'm telling you that it is overbooked because just this morning, we found that, I mean, we had a request for additional 100 people, I mean, we are literally overbooked. I think that what the team did in explaining the cars through different episodes, the 3 episodes that you may see on internet, has been very teasing and explaining in detail on what this car is doing. In Rome, we'll have a lot of people that are eager, looking forward. You cannot imagine how many messages we are getting if they can get something ahead of time.

We still need to wait 2, 3 weeks, 20 days, and then the entire world will see what this car look like.

With respect to your first question, Stephen, still within the guidance that we have given for the year, we just adapted our planning in terms of product mix and country mix allocations. It's a matter of I think I'd say slightly in more balance between H one and H two. If not, this is the meaning anyway. That is simply the result of having favored Q one in terms of country mix, because of the adaptation that we had to take in respect of the initial weeks of the conflict in the Middle East. Hope that helps.

Yeah, the in general principle, of that, you know, just the cadence of launches of these vehicles, like for example, the 849 Testarossa, obviously has more of an impact in the second half of the year simply because of the normal delay it takes to get to the U.S. market.

Mm-hmm. Yeah.

Thank you very much.

Thank you.

Thank you. Now we're going to take our next question. The question comes line of Henning Cosman from Barclays. Your line is open. Please ask your question.

Hi, good afternoon, team. Thanks for taking the question. Congratulations on what I think is a very strong result. First question perhaps on the underlying assumptions. You've already confirmed FX. Can I ask perhaps about order book? You said it's further extended. You still talk about end 2027. I believe you also said end 2027 at the full year results staged 3 months ago. Perhaps you can just comment about, you know, is the further extension in line with your expectations, and can you perhaps talk a bit about the Amalfi Spider and Testarossa specifically? Also on personalization, it's again, holding in very strong 20%. We had expected for it to perhaps come down a little bit, but it isn't. Perhaps you can comment a bit on the visibility.

I think you have around three months. Is it still holding in nicely in the order book, as far as you can see? That's the first question. Secondly, perhaps you could, Antonio, just comment on that one-timer that you mentioned in the revenue bridge. If you could please quantify that and say what it was, and if there was an impact in the EBIT bridge as well, and how much, or how large that might have been. Thank you very much and looking forward to seeing you in Rome.

Thank you, Henning. I think the first one, the order book is holding very nicely. It further extended toward the end of 2027, which has been extending. If I compare where we were and where we are, there is an additional extension. It's drifting ahead. That's good. Coming back to your observation and question about Testarossa and Amalfi Spiders and personalization. Testarossa and Amalfi Spider are proceeding as planned. The one that is a little bit more difficult to plan, but we see that many clients like to personalize more and more the cars.

This is a little bit more difficult to plan because usually the clients decide in the last quarters before, let me say, they are called to finalize everything when the car is entering really the production cycle. Everything is planned, but the personalization that per se are not plannable because we want to leave obviously the freedom to the client to the, to personalize. You may remember that what we do on the supply side is to make sure that we are able to accommodate some swing on the personalization of the client so that they can, they have more freedom. The customer, the client is the center for all what we do. The second is Antonio.

Yeah. The size is less than EUR 10 million.

Okay, great. Thank you. Ma'am, would you allow me to squeeze one on U.S. tariffs? I think last time you were very quick to obviously update your commercial policy. We haven't talked about it today. There's that threat of an additional 10% to 25%. I don't know if it's too sensitive a subject or if you could comment at all at what you would be waiting for to do something there, or you don't expect it to materialize. Just maybe some color if you could.

Henning, three words. We are ready. As soon as the things are defined, as soon as the timing is defined, we are ready. We were ready, let me say, one year ago, where we did not have the experience we have now. Since we usually will learn from the past, we are ready. We are waiting for the final decision, and then we will proceed accordingly. Keeping always the client at the center of what we do. That's fundamental.

Thank you both.

We did in the past, we do today, and we'll do in the future.

Thank you.

Thank you, Henning.

Thank you. Now we're going to take our next question. The next question comes line of Thomas Besson from Cheuvreux. Your line is open. Please ask your question.

Thank you very much. good afternoon. could you share with us if you already take orders for the Luce or you're waiting for the public unveiling in 20 days?

We wait for the 25th, Thomas. The 25th of May.

Okay. It hasn't been shown yet to some of your traditional top collectors to give you the ability to say that it's already very well received at this time?

We are preparing well. The people that need to know we are prepared. The car will be officially launched at the 25th of May. We will have 2 days, 25th to 26th, because otherwise we are not able to accommodate all the people. We are on for 2 days, during which we will show the detail of the car, and then we will start to take orders. In the next call Let's say, I make a promise. This is the last call where we will not reply in detail the question about Luce. I'm sorry. Just 21 days more of patience, Thomas. Bear with us, and we'll be very clear next time.

Understood. Thank you very much.

In the meantime, re-look at episode. I think there is a lot of things you can get from there. The three episode.

Yeah, yeah. I've seen that. Thank you very much.

Grazie.

Thank you. Now we're going to take our next question. The next question comes the line of Horst Schneider from Bank of America. Your line is open. Please ask your question.

Yes, thank you. Good afternoon. Thanks for taking my questions. I have got 2 left. One relates a little bit to top line. When we think of the current strong increase of oil price, and I'm aware that the Ferrari driver maybe does not care about oil price that much because he can just afford it. Nevertheless, has it changed in any sense maybe the mindset of your customer? When you, for example, look at residual value trends, if you look at orders, if you look at initial reactions to the Luce, is there increased awareness now for this product or luxury customers? That would be number 1. Number 2, I want to get back to this seasonality question. You have been clear on the EBIT split.

I'm still wondering what that implies for the top line, because my understanding is still that product mix is up because you face F80 and you face also the specials with the 296. That means ASP should go up in H2 versus H1. Does that imply then that the unit sales are lower in H2 than H1? Thank you.

I think the first one, Horst. I have been in the last quarter, let me say, or March and April, let's say, I've been talking with clients from different regions, different parts of the world. We have talked a lot about the model, about the eagerness to get the model as soon as possible, about Luce, obviously, because there is a lot of interest. We never ever talked about the Ferrari oil price. I think that the miles they use the car is very marginal.

Okay

it never come out during any discussion.

Okay. Mm-hmm.

Let's say we are talking about different kind of crowd, product, different kind of cars, and that's it. If you ask me about what they think about the new model and then I can tell. About the oil price, no, no chance.

Okay. No, that's clear. Thank you.

[Foreign language]. [Foreign language], Horst.

With respect to the ASP, there is slight difference with H2 very much in line with H1 on average.

You say deliveries?

You asked about ASP, right?

Yeah. ASP, yes. Okay. ASP unchanged, H2 versus H1. Okay.

Let me see here.

All right. That implies that the F80 is not increasing a lot anymore from here, or do we have now a kind of run rate already or?

It all depends on the overall mix of the cars that we deliver.

Okay. Okay. All right. Thank you.

Thank you.

Thank you.

Thank you. Now we're going to take our next question. It comes to line of José Asumendi from J.P. Morgan. Your line is open. Please ask your question.

Thank you very much. José Asumendi from J.P. Morgan. Benedetto Vigna, Antonio Picca Piccon, looking forward to the Luce. A couple of questions, please. The first one, just on a full year basis, when you look at the headwinds from industrial costs, R&D, SG&A, and FX, are you on track to offset those headwinds with mix and price? It definitely does look like in Q1 you've managed to achieve that. I'm just thinking on a full year basis, perspective, how do you think about this trend? Can you provide a maybe a bit of a split on the impact of mix and pricing, if possible?

Second, just to come back to this, to the phase-in of 296 and F80, is the impact on delivery likely going to be stronger in the second half versus the first half? Thank you.

The impact on delivery is about what? The delivery on the Middle East, what is? No.

The deliveries on 296 and F80, in terms of the phase-in, that's likely to be stronger, the impact, in the second half versus the first half.

The 296 Speciale is going to grow over the course of the year. The F80 should grow as it is becoming, going to global distribution. For the other question instead, José, for the other question is that as I said before in the previous question, we don't see any specific pressures, and on the supply side.

Got it. The question was more that you do plan to offset the fixed costs with mix and pricing on a full year basis in 2026. That's.

That's already baked in our guidance.

Sorry, that was That is in embedded in the guidance. Is that the message?

Correct.

Yes. Got it. Thank you so much. Thank you.

Thank you.

You're welcome.

Thank you. Now we're going to take our next question. It comes line of Anthony Dick from Oddo BHF. Your line is open. Please ask your question.

Yes, good afternoon. Thanks for taking the questions. Just a couple remaining. First, just to come back on the Middle East a little bit. Thanks for the comments provided on the order book, the activity and the logistics. I'm just wondering, and could you comment also on the showroom traffic that you've seen in Q1 and the order intake development and basically where that brings you in terms of order book length in the Middle East? I had a second question on the Handling Speciale version of the Purosangue that you've just unveiled. If you could just provide a bit of context into this sort of upgrade or package that you're providing.

The Purosangue is already about 3 years in its delivery cycle, if I'm not mistaken. Should we assume that this is also a kind of, a bit of a, an upgrade to make it a bit more fresh and to extend maybe the life cycle versus the usual 4 years that you have for your cars? Thank you.

Okay. The first one, the first one, Anthony. Order book, I have to say that the Middle East, let's say the order book is very strong and we keep collecting additional orders from clients. That's a fact. I told you also that we have a lot of people that want to try our car, and we had more than 500 test drives in the last 50 days. Another point is that why, I mean, the Purosangue Speciale, I think that, It is important for our company, it will be always important that we listen to our client, and there was a request from our client to have some kind of more sporty personalization.

Engineering Speciale is a sportive personalization that we thought it would make sense for us to offer to our client. That's it. It's a way to show the client, like we did also in the past for other things, to show the clients that we are listening to them and we put them at the center of what we do.

Thank you very much.

Thank you.

Thank you, Anthony. Yeah, analysts, thank you very much for all your questions today. I would now like to hand the conference over to speaker, Benedetto Vigna for any closing remarks.

Thank you, Nadia. Thank you for your time today and for all your questions. Looking forward to the reveal of the Ferrari Luce on May 25, so that the next time we'll take all the questions. I wish you a good morning, afternoon, and thank you again for your attention. Grazie. [Foreign language]

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.