Good day and thank you for standing by. Welcome to the Ferrari 2026 third quarter conference call and webcast. At this time all participants are in listen only mode. After the speaker's presentation there will be the question and answer session. To ask a question during the session you need to press star 1 1 on your telephone keypad. You will then hear an automatic message advising your hand is raised. To withdraw a question please press star 1 and 1 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to our first speaker today, Nicoletta Russo, Head of Investor Relations. Please go ahead.

Thank you, Nadia, and welcome to everyone who is joining us. Today we plan to cover the Group Q3 2036 operating results and the duration of the call is expected to be around 45 minutes. The call will be offered 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 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 Benedetto.

Thank you Nadia, thank you Nicoletta and good morning or good afternoon to everyone joining us today. Today here we are pleased to share with you three important updates. One, the financial results of the third quarter. Two, the progress in the three sources of our brand. And last but not least, an update on the full year guidance. But before that, first on the brand side, Ferrari climbed the three places in Interbrand's Best Global Brands 26, confirming itself as the world's most valuable Italian brand. Second, my sincere thanks go to the teams, to our existing and new clients for their loyalty and trust, and to all our business partners who work alongside us every day. As underlined in previous calls, we remain fully focused on innovation, both in terms of products and experiences we offer, and execution, consistently moving along the trajectory set out at our Capital Market Day. This continues to be our North Star, because we believe that only in this way we can continue to be unique in the ultra-luxury space we operate. Our Q3 business performance was characterized by strong product mix and a solid trend in personalizations, which is led to revenues at 1.9 billion euro, EBIT above 560 million euro, growing double-digit, and industrial free cash flow generation of more than 565 million euro. We believe that only through emotion-driven innovation Consistent execution and focused discipline we can make remarkable progress. So now let me share with you our progress over the past quarter across each of our three shows. Let's start with sport cars. Q3 has been an intense and engaging quarter. It started with the launch of the 12 cilindri manuale and it closed with the digital debut of the track model GT3 Modificata. It has also been constellated by numerous dynamic marketing activities which allowed us to engage both repeaters and new clients further supporting the continued momentum of our brand. There is nothing more experiential than a car and all Ferrari experiences are a fundamental part of leaving our brand with all our senses. The experiences on road and on tracks we offer our Ferraristi all over the continent represent the truly differentiating factors, sustaining our uniqueness. They create memorable moments for our clients to engage with Ferrari beyond our cars. They enlarge the Ferrari community, create new bonds, and further strengthen the sense of belonging to the Prancing Horse. I personally attended the Cavalcates in Europe in July and recently the Tributo to the University of Ferrari in India where I also had the pleasure to drive from Jaipur to Agra. And I can guarantee you that driving all together amazing cars in beautiful and stunning landscapes is truly unique and most importantly establishes special and unforgettable connection among all the participants. And during one of these moments The first ever Ferrari Luce has been auctioned for the record amount of $40 million in Pebble Beach, where proceeds will be devolved to an educational project in USA and in Maranello. A few facts about Luce. 1. First few deliveries in Q4. 2. 2027 deliveries are fully allocated. 3. More than 50 local premieres and private views across USA, Europe, Middle East and Asia-Pac and five public events, including the temporary exhibition at our museum, they are all done. Each created valuable opportunities to bring the car closer to our audiences in person, expressing its uniqueness better than any digital experience could. International Media Test Drive are planned for Q127 and right after Test Drive for our clients. In the meantime, the global rollout of our new corporate identity is progressing across our dealership network, reflecting our dealers' continued commitment and investment in the brand and far more elevating the way Ferrari is represented across markets. Some of the recent openings include those in Zug, in Switzerland, Pasadena, in U.S., and Riyadh, in Saudi Arabia, that you can see in the chart. Inside the new dealership, at the center of this dealership, we have a piazza hosting clients. To underline, even further, that we always put clients at the center of what we conceive and what we do. And now let's talk about order books. We continue to experience a healthy demand across all geographies with an order book that enters 28. And more is yet to come. We will launch in the physical world two new models before the end of the year, and we look forward to sharing them with you. Just wait a few more weeks and you will have a better understanding of what we are planning to do. Moving on to racing. Last Sunday, In Mexico, marked historic moment for Formula 1 and Italian motorsport. And here I would like to congratulate Kimi Antonelli on becoming world champion. Competition is what drives us. It raises the bar, fuels our determination, and reminds us every day why Ferrari races. To win. We remain fully focused on Formula 1 and World Endurance Championships. pushing to the very end of the season while already working relentlessly towards next year. Beyond the track, our sailing adventure is progressing further with the announcement of a few weeks ago of the crew and the new operational hub in Livorno that will last diaper sail by the end of this year. Innovative 100 feet flying monohull designed to challenge the oceans entered the final construction phase. a truly technological masterpiece with more than 20 patents registered and last but not least lifestyle the quarter was equally rich in activity from the capsule collection for the monte grand prix to the increasingly tailored experiences offered through casa ferrari at pebble beach in our fun zones and the launch of the sketch body this project brings together art Innovation and Tradition, and it enriches our collectible offer, meeting strong interest from our clients and already sold out for the next year. If you haven't seen it yet, I really invite you to take a look. Across all these initiatives, we have continued to express our brand with the same consistency and sophistication, preserving our identity and DNA. And it is with this same approach that we are now preparing after the London opening in Q1 26 for our next flagship store opening in New York, where we will unveil our new lifestyle collection. To conclude, we continue to execute our plans with innovation, focus and determination, making steady progress on the path outlined in our business plan. Today, we are raising our guidance for the year and Antonio will provide you with more details and colors about it. And on this note, I hand over to Antonio. Thank you.

Grazie Benedetto and good morning or afternoon to everyone. On page five, we present the highlights of the third quarter. It was a strong one with remarkable profitability growth and supported by the business trends we have seen throughout the year. A strong sports car mix and Personalizations, which continued to exceed our expectations. Industrial pre-cash flow generation was also strong, almost achieving our full year guidance in the first nine months. Let's review the results in more detail. Turning to page six, you can see the breakdown of our Q3 shipment and the ongoing model changeover, which continues to progress in line with our plans. During the quarter, the 849 Testarossa and the 296 Speciale Aperta continued to ramp up together with the first deliveries of the 849 Testarossa Spider. The Amalfi and the 296 Speciale Coupe increased their contribution and entered the global distribution phase, joining the dodici cilindri family and the Purosangue. Deliveries of the F80 progressed in line with our plans, while the 296 GTS, the Roma Spider and the SF90 XX family reached the end of their respective life cycles. The geographic mix of our deliveries reflects the usual rationale. When a new model is launched, we serve closer market stores, followed by a progressive rollout across other geographies. On page 7, net revenues increased by almost 10% at cost and currency and 7% including the headwind from currency, mainly related to the US dollar and Japanese yen. The increase in cars and spare parts was driven by the richer product mix and higher personalizations. Personalization surpassed 21% of total revenues from cars and spare parts and was particularly relevant for the 296 Speciale family. The adoption of carbon and paints continued to drive revenue growth. Sponsorship, commercial, and brand increased thanks to higher sponsorships and lifestyle activities, which were partially offset by lower commercial revenues linked to last year's Formula One ranking. Other revenues also positively contributed, mainly in relation to the rental of engines to other Formula One racing teams. It is worth noting that while the comparison against the U.S. dollar spot rate is becoming more favorable, we continue to record the negative variance from prior year edges. Moving to page eight. The remarkable increase in EBIT was driven by the very strong mixed price variance, reflecting the positive product mix and the strong personalizations previously highlighted. In detail, the product mix is the result of the positive contribution of the F80, the 849 Testarossa and the 12-cylinder families, as well as lower deliveries of the 296 range family. partially offset by lower deliveries of the SF90XX family and the ramp-up of the Amalfi. The positive volume variance is due to spare parts while shipments were deliberately planned slightly lower to allow for the smooth completion of the model changeover. These positive variances were only marginally offset by higher depreciation and amortization in line with the start of production of new models and higher marketing expenses. The higher costs implied by the better Formula 1 in-season ranking assumptions compared to last year, included in the other variants, were substantially offset by the positive contribution from racing and lifestyle activities. Percentage margins remained at very strong levels despite the foreign exchange headwind, with both the EBIT margin and EBITDA margin increasing compared with last year. On page 9, our industrial free cash flow was strong in the quarter, driven by the increase in profitability and supported by a positive change in working capital, mainly deflecting the advances collection. This was partially offset by capital expenditures, primarily focused on product and infrastructure development, with a new paint shop approaching its completion. At the end of the quarter, we were in a net cash position of 219 million euro, even after the share repurchase is executed during the period. Turning to page 10, we upgrade our guidance for the year. Our updated assumptions for Q4 include a stronger contribution from personalizations in line with the Q3 trend, which is supported by the higher concentration of special versions planned in the fourth quarter. A further improved US dollar to euro exchange rate compared to Q3, including edges. and lower Formula One costs, reflecting the current second position in the championship ranking, while we assume that all four remaining races will be confirmed. Looking ahead, we remain firmly focused on executing our plans along the guidelines outlined at our last Capital Market Day. Our confidence in the strength of our strategy and in our ability to preserve and nurture our brand over the long term continues to guide us every day. Thank you for your attention and I turn the call over to Nicoletta.

Thank you, Antonio. Nadia, we are now ready to open the Q&A session.

Yes, of course. Dear participants, as a reminder, if you wish to ask a question, please press star 1-1 on your telephone and wait for a name to be announced. To withdraw a question, please press star 1-1 again. Please stand by, we'll compile the Q&A roster. This will take a few moments. And now we're going to take our first question. and it comes the line of Eduard Aubin from Morgan Stanley. Your line is open. Please ask a question.

Yeah, good afternoon. Thank you for taking my question. So, three quick ones for me. The first one is the FAT. I think, you know, doing the math, you're anywhere between 17 and 50 units shipped in the third quarter. So, I think for the first half, people had assumed around 40 units per quarter, you know, in Q1, Q2. Are you more or less in that kind of range or is there any significant or material acceleration or increase sequentially between H1 and Q3? So that would be question number one. Question number two is, as you just mentioned, Antonio, you now assume second place in Formula One Championship. Can you, regarding the release of provisions for Formula One Championship, will you take this release in Q4? and can you just give us an idea of what roughly is the amount you expect to release in Q4 if that's the case? And then lastly, Antonio, in the impact on the hedging on kind of top line and profit, what do you have in mind for kind of Q4 in 2027? Thank you so much.

Edward, these are all questions for Antonio. He will manage the first one.

The first one on F80, we have been growing just slightly quarter over quarter. and therefore we were still within the region of 50 units. With respect to the second quarter, which was on Formula One Championship Bonn release, we already adjusted some of our assumptions in Q3 and that the one in relation to the Contractual Championship, as we said, is encompassing the full year guidance and we don't go into the details of the size, but it's not very material, some few millions. Edging, what are you expecting for? I think I commented some while ago as to the fact that we were expecting a negative foreign exchange rate impact of around 200 million, considering where the spot rate is there would be lower than that, but still this is the reference, so between 150 and 200 million. overall four-year basis.

Okay, thank you.

Welcome.

Thank you. Now we're going to take our next question. And the question comes from Monica Bossio from Intesa San Paolo. Your line is open. Please ask your question.

Yes, good afternoon and thanks for taking my questions. I would have three. The first one is on the shipments. They are reflecting the models changeover. but I was wondering if you can give us any feeling, any course on the fourth quarter because the last year the fourth quarter was very negative and so I would expect a positive trend this year on the back of the completion of the model's changeover but also on the back of the Comparison base. So any colors could be useful. I know that you do not comment on volumes, but it could be useful this time. And my second question is on the country mix. As many models are approaching the global distribution, should we expect a better country mix in the fourth quarter? And above all, what do you see in terms of country mix for 2027? and that's, I would say, if I can squeeze another one, is on the shipments in mainland China, Hong Kong and Taiwan. They were down. Is this due to the model changeover or are there any other particular reasons? Thank you very much.

Thank you, Monica. I think you did... Two deductions that you did are very right. Number one is what you said. It's because of the model changeover in China that we have this swing in mainland China. And the second, let's say your reduction is also correct, Q4, year over year will increase. So congratulations for your right to deductions. Country mix wise, you also read it well. We are, yes, all the models are approaching the global distribution. and this is embedded in what is the updated guidance that we are providing you also because the personalization that we have over there are basically start to be fully defined for the year end. Thank you.

Thank you very much.

Grazie Monica.

Thank you. Now we're going to take our next question. and the question comes to the line of Helen Cosman from Barclays. Your line is open. Please ask a question.

Yeah, hi. Good afternoon, everybody. I've been at our time. First question is on the revenue growth acceleration implied by the flow of the guidance. I think it sort of implied to accelerate at least 9% from about 6% so far year-to-date. So I'm just wondering what that might imply in terms of volume and in terms of ASP. I think we had already set ASPs broadly stable H1, H2. Now we've upgraded the guide. So just to clarify that we're looking at broadly stable volume in Q4, but probably quite a bit higher ASP over here in Q4. If you could just confirm if that's broadly the right thinking to support that revenue growth acceleration. The second question is if I could please ask about the very high share of specials in the third quarter, 22%. I thought after the about 13% in the first half, we were sort of saying we expect broadly stable half over half and now it's much higher again. Could you just say if you think this will drop very materially in Q4 or is it going to stay elevated and what might be behind that? And just finally, again, on the FX, Antonio, if you could just say what your euro-dollar assumption is now for the full year and what it is for 2027, please. Thank you so much.

So ending, I think, the first one. Yeah, I take that.

In terms of volume and ASP for adjusting the guidance, I think we have been clear we have not been adjusting volumes. Volumes benefit from N.V. Comp with last year, as Benedetto commented before. and we expect to have ASP slightly higher in line with the indication I gave some quarters ago about the fact that the second DAF would have been slightly better compared to the first one. I share a special theory, even this one I think we have already commented in the past. This year is very special. There is a concentration of special series. We expect this to normalize going forward. And assumption personalization for the year. We started the year with guiding for approximately 20% personalization rate. We are currently above that level, and we assume that the last quarter will not make an extension, so we'll be in continuation.

Sorry, Antonio, the question was on FX, the euro-dollar exchange rate, not the... Oh, I'm sorry, I'm sorry.

The current spot rate, but for us what really matters is not just that, but even the edges in place. Yeah.

And you're willing to share the Eurodollar number that you're assuming for this year now?

Approximately more than 115, blended between thought and edges. Both this year and next year, yeah? No, no, we're talking about four quarters. We're not talking about 2027. 2027 you have to wait, Henning. Okay, all right.

Thank you.

Thank you. Now we're going to take our next question. And the question comes from Martino D'Ambrogi from Aquita. Your line is open. Please ask your question.

Thank you very much. Good afternoon, everybody. The first question is on the AESP again, because plus nine in the first nine months, year on year. So should we expect at least a mid-single digit growth also next year, just for AESP? and the second is on the Luce that you already fulfilled the orders for 27. Could you elaborate on where they come from in terms of region, kind of customers, and what are the areas you have not tested yet which could be an upside going ahead? Thank you.

Thank you, Martino. For the first question, I mean, the SP trend the next year, I have to repeat myself or Antonio what he told the two endings. So let's wait for February when we meet next time. For the Luce, I think that there are four important things that I would like to underline. The number one is that the Luce is in production as planned. The second is that by the end of this year, we will have a few units on the road. The third is that In Q1, we will have international media test drive first and then test drive for the client. And then all the luce that we plan to sell next year basically are all allocated. So if someone comes, he has to wait one year to get the cars. So where do we see the potential? Today, I think there are some areas where the dealers are doing a fantastic job. There are some areas where the dealers... Can have some more opportunities than others. For sure, what we have seen is that there are two things that help the people to understand better the car. Number one, when they see in 3D, physically. And number two, also, we see when and how the perception changes when the people drive the car. So, yes, we see opportunities in some places, but also... Thanks to the experience and the interaction the people will have with the car. Thank you, Benedetto. Thank you, Martino.

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

Hey, Benedetto, Antonio. Great quarter. Thanks for taking our questions here. Antonio, you know, just a quick clarification on the ASP. I think it was up 8% in the quarter. You said you reminded us that ASP would be a little higher in second half than in first half. And that's in terms of euros, the level. I think to be flat, just to orient ourselves to be flat in the second half versus last year, fourth quarter would need to be down about 1%. That seems unlikely. Would you mind just helping us think about what you assume for 4Q? Sure. and maybe some of the moving puts and takes around that. And then on the EBIT bridge for fourth quarter, the mix was 119 million euros positive in third quarter. Maybe you could help us think about the tailwinds and headwinds for fourth quarter relative to that number because I think you previously told us the second half mix would be above first half. So if we can orient our models around That may be 85 million or more coming from Mix in the fourth quarter. Maybe you could just help us think about the other items in the EBIT bridge that change in fourth quarter.

Sure. The answer to both your question, Michael, is that it's still the same I gave you the previous question. Call of last end of July, meaning in terms of ASP, we still expect to target to have H2 slightly better compared to H1. So you can do the math and it's slightly better. And in terms of the mixed price variance, even there we said we expect it to be slightly better in H2 compared to H1. So no change in this respect. Where we do expect to have in the last quarter different is that in terms of cost, we have an incidence of expenses for marketing and events higher compared to Q3, and we still expect to have DNA farther growing compared to the previous part of the year. There is an acceleration which is consistent with introduction of new models.

Okay. If I could sneak one in, Benedetto, you guys have called out Mike, we thank you.

for the congratulation you gave us and all the team. We don't like so much because you believe that we are not keeping the pace to open the paint shop. I mean, yes, we will open the paint shop. Sorry. If you come here, you'll see a nice paint shop. No, I think that that's very important for the personalization. It shows that we believe in the personalization also because we put at the center our clients. I can tell you that we had a deep analysis with Antonio and the team. I would like to share with you some things. Number one, when you talk about the personalization, one-third is coming from the material clients are selecting, one-third in value, one-third is coming from the exterior, including the painting, the color, and one-third is coming from what the clients select in the cabin.

So it's equally spread.

It's interesting outcome that I would say we are very proud of because all the personalization that we are developing are finding the right, let's say, they are pleased by our clients.

Thank you very much, guys.

Thank you, Mike.

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

Good afternoon. Thank you for taking some of my questions. I try again the first one on 2027, even though you said you don't answer many questions about 2027, but I looked up the Q3 26 call transcript and when we asked you there about the next year, basically you said You want to have a smooth and S-line as possible expansion of probability in absolute terms. So it seems from today's perspective, when I count the various levers, we have got the Dodici Cilindro Manuale, a higher 296 Speciale share, F80 should sell higher. It seems to be a pretty strong year. It seems to be anything but smooth and linear. So therefore, maybe you can share thoughts why it should be just smooth and linear next year. The second question is maybe a standard question about residual value trends. If you can share any update. I've seen that maybe the digital industry is weakening a bit. Maybe you have got a comment on that. And the third question is more towards the split between ASP growth and volume growth going forward. At the moment, we see ASP growing a lot, lot. Going forward, you want to normalize that again and how you aim to achieve that. Thank you.

Thank you, Horst. I will take a couple of questions and then Antonio will elaborate on the mathematical linearity. So the residual value, we see that they are very sound across different models and across different countries. And we are very pleased because we see that the value, the residual value is very good. That's important. and this is through also let's say different models either the recent one or the less recent one. When it comes to the question how much should you expect in mixing volume if the question is about 27 you have to bear with us like we said also to your colleague in February we will tell you 27 and then we will tell you all the driver that we see for the growth and on this I would like to give the word to Antonio for the Mathematica Linearity. Thank you, Benedetto.

Maybe I start from the first one. I just want to make a comment. Last year we said that we would have expected a development smooth and linear. That is what we said at the Capital Market Day. What went differently, if I look at 2026, compared to our initial expectations, is basically two elements. The first one is the level of personalization. We guided for 20%. We are above that level. Obviously, and on that, I repeat myself, we have a shorter visibility compared to the order book because we allow our clients to define the level of their personalization until three to four months before delivery. So it's something, it's kind of discovery. And this has been supported by the concentration of special series this year. The second element which makes a difference is the foreign exchange rate. The capital market day we said we would have expected 120. We are lower than that. We are benefiting from this. And obviously the hedges that we adjust from time to time may have a carry forward effect depending on where the spot rate will go. So that is what I can tell you. But the capital market day assumptions remain intact.

and so far we think about the development or introduction of new models, no change about that.

Mix and volume only with respect to Q4. We expect to have still a relevant mix. I said in my commentaries to the guidance that we expect personalization rate to be in line with the recent months and this is the same also in terms of product mix. So, my expectation is still the main component in guiding the results for the rest of this year.

Thank you. My question was more relating to volume mix in general, not 27, also beyond 27. So, for example, you could stretch FAT deliveries, right? I'm not sure if you can comment or want to comment on that, but I could just give it a try.

I can take only to the fourth quarter of this year.

Okay, that's great. Thank you.

Thank you.

Thank you. Now we're going to take our next question. And the question comes from Tom Narayan from RBC. Your line is open. Please ask your question.

Yes, thanks for taking the questions. I also have three. So the first one, personalization, you know, did exceed your initial expectations at 21%. I remember at the Capital Markets Day last year, I think we were shown a personalization at work. And we were told that the carbon fiber supply was a kind of a resistance factor and it limited, I think, how much you could do. Is this now less of a headwind? And then the second question, you know, we are hearing about some affordability risk creep in. I know in the auto industry now, I know Ferrari is not an auto company. It's a luxury company. but just curious if you're seeing any demand impacts on maybe more lower-priced offerings like Amalfi. And then lastly, residual values, plug-in hybrids are now a much bigger portion of deliveries than they were a couple of years back. Are the issues that you saw a couple of years ago on plug-in hybrids now in the rear view mirror? Was it just a function of getting the dealers to educate consumers on these products?

Thank you, Tom. I think that we are not a luxury company. We are a unique company that is luxury and technology. So I think it's important because we care about this uniqueness that was also underlined in different messages through the Capital Market Day. I go through the question you gave us. The first one, I think you said it well, you understood well, the story of residual values on hybrids. is changing because of two reasons. Number one, the dealers are getting more used also to explain how to use the hybrid. And two, the people are getting more and more in love with the hybrid technology because of the advantage that the combination of electric engine and thermal engine are giving. So you saw it and I have to say that We have been visiting several dealers that they've been developing very simple and clear educational material to explain to people how to use it. The story of the personalization, you remember well, there was in the past a shortage on the carbon. We have been able to nail down some good, let me say, contract on the supply side. So that is not a limited factor. So we don't see it as a headwind. We are obviously, since this does not depend on us, we are always looking what is happening. That's clear. The story of the second question, we see healthy demand across all the models and across all the geographies. There are some areas where, for example, the hybrid is preferred to ICE and vice versa, or the six-cylinder to eight-cylinder. But we see an healthy demand across all the models. And I would say we are very pleased about the offer. Let's say the product we are able to offer, we can offer our clients. This does not mean that it is complete, because you will see other things getting out pretty soon. We have always to keep delighting our clients. Thank you. Thank you.

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

Thank you very much. Good afternoon. Congratulations on the quarter. Three questions, please. First, have you been able to hedge in decent proportions for 27-28, taking advantage of the exchange rates below 1.15 or not yet? Second question, on the Luce, could you Give us a profile of who bought it so far. Is it 50-50, existing customers, new customers, as you saw it, or different? And give us some idea of the geographies and maybe how many units, broadly speaking, you plan to ship in 27. And last question, small things in terms of financial impact, but I noticed the spare parts contributed to volumes. Is there any acceleration in this? or is that just an accident that we see in the bridge this time around? Thank you.

Okay, I think, so, Luce, we cannot, we don't want, we know, but we cannot provide you the split between the repeaters and the new client. What I can tell you that we have a good mix, is a good mix in terms of client, is a good mix also in terms of geography, and let me say, There is not a specific pattern. We see the interest coming from people of different age and different countries. The other part is about the spare part. Clearly, there is a growing Q3, also because you said it well. There is an increased use of the cash. So when you use more cash, there is a probability that you need a little bit more spare part. That's the only reason. It's nothing strange. For the edging,

Thank you Benedetto. Yes, we already covered, we use a 12-month rolling foreign exchange rate policy and therefore every month we hedge for the next 12 months with a view to be approximately 70% hedged. So clearly, the more you go ahead to 2027, the more you benefit from the reduction of the spot rate that we have been that we've been enjoying the last few months and there is a portion of that in every single quarter, future quarter.

Thank you very much.

Thank you.

Thank you. Now we're going to take our next question. And the question comes from Anthony Dick from OdoBHF. Your line is open, please ask your question.

Yes, hi, thank you for taking the questions. I had also three. The first one is on the follow-up on the special series. I know this year is a special year with the 296 Speciale, but still in terms of the pace of the release of the new special series, we had the 12-cylindry manual this year and maybe one coming in the next couple of weeks. It also seems there's more special series being released more frequently. So I was just wondering if that's purely a function of the life cycle and the model planning, or if it's also a sort of conscious decision by yourself that these are the segments where you see the most demand and you can expand the most. The second question is on the FAT. So you mentioned around 50 units delivered, which is also still quite a bit below what we saw on the data on SB3. I think it was up 70, 80 units per quarter. Do you also intend to reach that level at some point, or do you see a more smoother delivery cycle? Do you feel you've already reached the current run rate, basically? And the last question I had is on DNA, which increased quite substantially in Q3, and I think you also increased the four-year guidance a little bit. Just wondering if that was purely linked to the new models, or if there's also some fixed assets in there, maybe some accelerated depreciation on some, or if it's just really also the model planning and model lifecycle that we see there. Thank you.

Thank you, Anton. I take the three of them. Special series, the concentration is just a result of the model phasing. It's there by design. Do you expect to reach Daytona level at some point? We do not disclose. We said, however, that we want to grow smoothly the delivery pace of the F80. With respect to DNA, I think it's there the assumption since the beginning of the year that we commented a number of times. and this is entirely due to the new model introduction. As soon as we start production of a new model, then we start having DNA accruing to the DNA.

Thank you very much. You're welcome.

Thank you. Now we're going to take our final question for today. And it comes from Jose Assomendi from JP Morgan. Your line is open. Please ask your question.

Thank you very much, very kind. And congrats on the strong quarter, I think in the light of the mobile changeovers and the higher costs. And the topic of higher industrial costs and R&D, not for 2064, 2027, just end of the decade, capital market state targets. How do you see this trend, this industrial cost basically becoming more of a neutral impact, which obviously would enhance margins um for the business and then second a bit more shorter term please how do you think about geographical mix uh into into the end of the year thank you so for the you want to go for the first one um first one i think is i take it more as a question on development of r d i just remind you that there we see the r d expense to the pnl and in the in the virus we have dna that is dictated by the modern life cycle We have R&D expenses for innovation for the sports car business and the other piece is the development of expenses from Formula One. The area that obviously we have less control on is development for Formula One because that is dictated by the budget cap evolution that has been growing the level of expenses in the last few years. As far as what we are concerned in terms of sports cars, so the portion that is related to innovation We think of that as a rather smoothly growing line of expenses, but very smoothly and lightly.

The second one I'll say, the geomix is moving aligned with the change, the model change, and so everything is moving, I would say, according to the plan. You know, this was the last question. I would like to say a couple of things. One, I would like to thank you for the congratulations that you did to the team. There is a lot of work behind that. Thanks for appreciating that. And I would like also to congratulate for you because I have to say that all the questions that you did are clearly showing that you have been listening and studying the material. We like it because There is someone reading what we do. Thank you. And also thanks for the time and for all your questions. They are very useful for us and to do a better job, to continue to do a better job for you, for all the shareholders. And I wish you a good morning, good afternoon, and thanks again for your attention. Thanks to Nadia, thanks to all the team. Grazie and good evening.

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