Good day and thank you for standing by. Welcome to the Ferrari 2026 second 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 1 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. Please go ahead.

Thank you, Nadia, and welcome to everyone who is joining us. Today we plan to cover the Group Q2 2026 operating results and the duration of this call is expected to be around 45 minutes. The 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 Corp 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, Nicoletta, and thank you to everyone joining us. We are pleased to share with you the result of another important quarter for our company. The key message is clear. Ferrari continues to execute its plan with focus, discipline and consistency, keeping the client at the center and blending heritage and innovation in a distinctive way. In this call, we will address three key achievements I would like to sincerely thank all the stakeholders for. One, we delivered another strong set of results. Two, the man remains solid with an order book that covers the entire 2027. And three, we continue to evolve our product offering through a consistent commitment to innovation, an innovation process that starts from human emotions, not from technology push. We are a strong believer of emotion-driven innovation. But let's go step by step. Let's start with our financial performance. In the quarter, we delivered revenues at 1.94 billion, EBITDA of 755 million, and industrial free cash flow generation of 275 million. This performance was supported by strong mix and personalizations, which once again performed very well and allowed us to raise our full year guidance and Antonio will provide you more detail shortly. Moving to the second point, the order book. We continue to experience a healthy demand across all geographies. We have an order book that covers the entire 27. This gives us strong visibility and confidence. Across the portfolio, Several models including the 296 Speciale and the 12 cilindri families are already sold out for their production run, underscoring the strength of demand. And now the third key achievement. Our product offering as anticipated at the beginning of the year and during the AGM a few months ago, 2026 is proving to be a key year for product innovation at Ferrari. With the presentation of Amalfi Spiders, Urosangue Handling Speciale, Ferrari Luce, and 12 Cilindri Manuale, today we have the most complete and diversified product offering ever. It includes combustion engine, cars, naturally aspirated and turbo, hybrid six and eight cylinder models, and Ferrari Luce. This makes our product offering unique. We are the only luxury company able to offer sports car able to deliver any kind of propulsion that the client is willing to experience. We can address different client desires from collectors, repeaters, new clients and future generation of Ferraristi and expand our offering in terms of product architecture, performance, design and driving experience. From now onward, Ferrari is able to offer all the three powertrain technologies fully in line with our technology neutrality and the horizontal product diversification strategy. We committed. We committed to this path and we have delivered consistently and allow me to be very proud of the team and all the partners in the world that helped us to make it possible. In Q2, we unveiled our first electric Ferrari, Ferrari Luce. It represents a milestone in the history of the Prancing Horse, a true sports car and an addition, I repeat, an addition to our product portfolio. It is a statement of innovation and design, a car conceived to be forward-looking in every respect. It is a masterpiece of engineering technology, with more than 60 new patents testifying to Ferrari's technical excellence across electric propulsion, vehicle dynamics, and system integration. They are all combined with a distinctive design language and a human-centric way to interact with the car, including the traditional pedal shift for torque shift engagement and the authentic sound of our four electric traction engines. Every choice we made served a single purpose, to deliver a true Ferrari driving experience. The Ferrari Luce is a sports car in every sense, with Ferrari performance, handling and emotion behind the wheel, while being the most versatile model in our range, extending Ferrari ownership into different moments with its five-seaters configuration. Two months after the world premiere in Rome. And we can say three clear points. One, we are very much satisfied with orders that are coming in, in line with our plans. Two, initial orders are currently coming from repeaters and new clients. Three, we are engaging those who are genuinely interested in Ferrari, Luce, according to our commercial and marketing plan. But Ferrari Luce is only one example of how our lineup continues to evolve. On July 3rd, at the culmination of our cavalcade event, we presented the Ferrari 12 cilindri manuale, a limited edition special series of the 12 cilindri produced in only 1,499 units each fully allocated to our clients. After the 599 GTB Fiorano 2006, we reintroduced the manual transmission, bringing back an even more direct interaction between the driver and the car. This was made possible thanks to the new manuale-by-wise system designed in-house Patented and inspired by the winch-by-wire system developed in our Hypersail racing project. Yes, it may seem strange, but open innovation goes hand-in-hand with lateral thinking and cross-pollination between worlds apparently completely disconnected. It combines the driving emotion of a manual gearbox and the precision of electronics. The Dodici Cisindri Manuale isn't about Recreating the Past for the Sake of Nostalgia. It's about recognizing that the greatest Ferraris have always been defined by the relationship between the driver and the car and finding a modern way of preserving that connection, that conversation. It is a celebration of engagement rather than a celebration of nostalgia. In a single quarter, Ferrari Luce and 12 Cilindri Manuale have provided two clear examples of how Ferrari combines traditional innovation in a distinctive way. They demonstrate the strength of our strategy and our commitment to technology neutrality, but most importantly, to our emotion-driven innovation, where emotion matters much more than numbers. But more is yet to come. Two more models are to be unveiled by the end of this year. And before that, let me also highlight the successful activation delivered by our lifestyle team during the quarter. Indeed, leveraging the emotional resonance of our racing heritage, we continue to nurture our clients through unique experience and events. Just think of the 24 Hours of Le Mans and the Goodwood Festival, as well as the capsule collection developed for Monaco and Silverstone Grand Prix. To conclude, the progress we are making in racing, thanks to both our drivers and the entire team, continue to remind us what makes Ferrari stronger. Focus, determination and team spirit. These values guide us every day, every day while keeping the four wheels on the ground. And on this note, I'd like now to hand over to Antonio to review the Q2 results.

Grazie Benedetto and good morning or afternoon to everyone. On page four, we show the highlights of the second quarter, another quarter with solid revenues and profitability growth, coupled with significant industrial free cash flow generation and remarkable shareholders remuneration. We continue to benefit from a strong sports car mix, Personalization exceeded our expectations and racing revenues increased their contribution. Let's look at the result in more detail. On page 5, we will present the Q2 Shipments breakdown and model changeover that we are continuing to execute as planned. In the quarter, the Amalfi, the 849 Testarossa and the 296 Speciale family increased their contribution, continuing the ramp-up. The deliveries of the 12-cylinder Coupen Spider and the Puro Sangue continued steadily. The F80 increased just very modestly as per our plans, while the 296 GTS and the Roma Spider decreased in line with their phase-out path. Lastly, the SF90XX family also decreased as we are approaching the conclusion of their limited series run. The overall model phasing I have just mentioned supported the richer product mix, which we will discuss in a moment. From a geographic mix perspective, EMEA experienced the strongest growth during the quarter. Consistent with our usual cadence, closer markets are served first, while deliveries of the new models to the other geographies will ramp up progressively in the coming months. On page 6, net revenues grew 11% at cost and currency, and 8% 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 personalization. Personalizations were higher than expected, about 20% of total revenues from cars and spare parts, and were particularly relevant for the 296 Speciale family. The adoption of carbon and paint continued to drive revenues growth. Sponsorship, commercial and brand also increased thanks to higher sponsorships, which were partially offset by lower commercial revenues linked to last year's Formula One ranking. Other revenues were also positive, mainly in relation to the rental of engines to other Formula One racing teams. It is worth noting that the recent strengthening of the US dollar mitigated the negative currency impact compared to our previous expectations. Moving to page 7, the increase in EBIT was driven by the very strong mixed price variance, which includes the positive product mix and the strong personalizations that we just commented. In detail, the product mix was sustained by the increased contribution of the F80 and the 12-cylinder family, and the lower deliveries of the 296 range family, partially offset by lower derivatives of the SF90XX and the ramp-up of the Amalfi. The mixed price variance was only marginally offset by volumes deliberately planned lower as required to effectively manage the model changeover, higher industrial costs and marketing expenses, and higher costs implied by the better Formula 1 in-season ranking assumptions compared to last year. The latter are including the other variants. In the quarter, DNA was temporarily lower, in line with the ongoing model changeover, since the decrease implied by the phasing out of certain models is only partially offset by the gradual additions from the models that are entering the start of production. In H2, we expect DNA to grow progressively. Percentage margins stood at remarkable levels, including the Edwin from FX. with EBIT margin at 31.2%, slightly up versus last year, and EBITDA margin at 39%, slightly down, mainly as a consequence of the better Formula 1 ranking assumptions. On page 8, our industrial free cash flow in the quarter was strong, driven by the increase in profitability, Partially upset by a negative change in working capital mainly linked to the inventory increase implied by the seasonal production planning. Cash taxes and capital expenditures, which were mostly focused on product and infrastructure development, mainly the new paint shop whose construction is proceeding apace. Net industrial debt at the end of June was 131 million euro, reflecting the dividend payment which occurred in May. and the share repurchase is executed in the quarter. Turning to page 9, we increase our guidance for the year thanks to the continuing strong trend of personalization and a more favorable effects environment. More specifically, our updated assumptions include personalizations accounting for more than 20% of cars and spare parts revenues and the US dollar euro to euro exchange rate of around 1.16 and the contribution of all additional edges now in place. Looking ahead, we remain focused on the execution of our plan. The confidence in the strength of our strategy and our ability to deliver long-term value remains the foundation of everything we do. Thanks 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. Thank you very much.

Thank you so much. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star 1 and 1 again. Please stand by. We'll compile the Q&A queue. This will take a few moments. And now we're going to take our first question. And it comes in the line of Helen Cosman from Barclays. Your line is open. Please ask your question.

Oh, hi. Good afternoon. Good morning, everybody. Thanks for taking the question. First question, perhaps slightly philosophical one. Would you share the observation that you enjoy more pricing power in the more traditional type of vehicle? So obviously the manuale by wire now really strong showing the special 50% price above the range. But just in general, do you feel there's more Enthusiasm and by extension pricing power on these types of models and would that affect your propensity as to which models you would launch going forward and if you could remind us what your flexibility there is for how far in the future is your product cycle plan set already or would you let yourself be influenced by customer desire and pricing power for these, if you want more traditional type of models. That's the first question. Second question on volume growth. I know you don't like to talk about volume, but if you could just conceptually discuss, if I'm not mistaken, we were expecting broadly stable volumes for this year. That now implies a bit of growth in the second half. perhaps you could confirm if you share that is that a function of just the product cycle you have the Amalfi now ramping up 296 special series so would you always allow yourself to have more volume growth based on the product cycle plan or do other things play into that as well like stabilization of residual values for example is it just phasing you always have periods of Expansion and Consolidation. Where do we stand there? If you could at all talk about volume just a little bit. And then finally, if I can squeeze one on the margin, right? Where we're getting now and your midterm margin ambition of a floor of 30%. There's obviously not much in between. Looks like there's going to be a lot of F80s next year. Testarossa, Manuala by Wire all looks like it's driving the mix up and probably the margin so we could see a margin exceeding 30% next year which technically would imply margin contraction for the rest of the plan if you could just remind us your thinking about the margin trajectory 27 to 30 sorry that was a lot but thank you very much

Thank you. The ink of the pen is almost finished, but it's okay. I'll take the first two questions and then Antonio will elaborate on your third question about the margin. So the first question, the philosophical one, I would like to say this, that our clients understand fully what does it mean, emotion-driven innovation. And I think that when in one quarter our company unveiled Two products, very innovative. One more in the future, one reading the past with the eyes of the future. I think it's a demonstration that one, we listen to them. Two, we are also able to delight and surprise them. I was with them at the cavalcade in Athens when we unveiled the 12 cilindri manuale as well as I was with them in Rome for the Luce premieres. and they were literally going to say happy, astonished about the ability of our company to put together traditional innovation but always putting them at the center but most importantly their emotion, driving an emotion at the center. So this is about the first philosophical question because the rest, the person in power, what you were referring to is a consequence of two things. Number one, our ability to innovate. Number two, our ability to delight and surprise them. The second question is about scarcity and exclusivity. 26 is a year where we have a significant changeover model. We have a lot of new models. We have the ramp up of a very innovative model for which we have a very high degree of personalization. But we always keep one thing in mind, Henning, is scarcity and exclusivity. For us, what is important is that we deliver unique, unique product to our clients. And our North Star is being always, is being, it is, it will always be scarcity and exclusivity. The third question about the margin, Antonio.

Yeah, and with respect to that question, I mean, the capital market targets are unchanged. As a way they were presented and based on the assumption We outline at that time. So on that we are proceeding at pace according to the smooth and linear development that we already outlined since that time.

Okay, thank you.

Thank you. Now we're going to take our next question. and the question comes from Edouard Aubin from Morgan Stanley. Your line is open. Please ask your question.

Yeah, good afternoon. Thank you for taking my question. So, first of all, in terms of the mix, so your share of special series was, I think, about 13% in the first half, which is obviously substantially higher than the recent history. What do you have in mind in terms of the second half, in terms of the contribution to the percentage of shipment from the special series? So that would be number one. Number two, in terms of the Americas and the U.S., shipments were down year over year quite a bit. And obviously, Antonio, you explained why in terms of the rollout of newness and all of that. But I think still that was down more than expected by the markets. Is there any issue with demand in the U.S. or is it really exclusively a supply issue in the U.S. and shipment should normalize pretty soon? So that would be question number two. And then, Antonio, question number three in terms of could you just help us model the impact of FX on EBIT for H2 and your first thoughts about what could be the impact on 2027. Thank you so much.

Thank you, Eduardo. I'll take the second one. So the reason you are referring to, we don't have, one, no issue of supply chain. Two, we have a significant model changeover, as we have been highlighting in the chart number four, I think. and the other point is that when you have cars with high degree of innovation and high personalization degree, then this is having clearly an impact on the number of cars that you deliver because there are some cars, as we have said at the beginning, the personalization content of our car keeps increasing and this has clearly some effect on what is the number of cars you deliver. So this is the question numbers 1 and 3. Antonio.

On the mix of special series, it is true that this year there is a bit more than we were used to. We follow the life cycles of the car, so I don't expect a significant change for the second half. But as I said, it's driven by the product life cycle. Impact of FX for H2 is based on the assumption I just outlined, and the fact that in addition to that we have Edging in place already for approximately 8% of the exposure. On 2027 is far less covered by hedging and will very much depend on where the spot exchange rate will stay.

Thank you, Eduard. Now we're going to take our next question. and the next question comes from Michael Benazzi from Evercore ISI. Your line is open. Please ask a question.

Hey guys, congrats on a great quarter. Really happy to see it and really exciting launches in the quarter. Really fun to watch. Just maybe a couple for the model. I think you said last call that ASP would be similar in second to first half Antonia, but it was up a lot in second quarter. Would you just help us understand What happened there, how to think about that in the second half. And then on the AFPs, it sounds like you only shift maybe 30, 40 F80s, at least not many more than what you shipped in first quarter. But the average price per car that we watch accelerated a lot, especially when we pick down to it and take out the currency.

It seems like the average selling price for the fleet, excluding the supercars,

improved quite a bit. That's with the SF90XX declining, as you told us. Could you talk a little bit more about what some of the biggest drivers were of the underlying acceleration in the fleet and maybe connect that to your comment last quarter that profitability would be the same in second half as first half?

Michael, this is a question for Antonio that will give you an answer. Yeah, Michael.

In terms of the ESP, it is still true that H2 is similar to H1, just maybe slightly better and better than we had previously anticipated, considering the penetration of personalization. That also explains why the ESP for the fleet, including the supercar, has improved. Actually, we see the trend of personalization increasing Improving across the board, better than improving, staying high across the board, even higher than we expected. As far as the number of the F80, we shifted in the quarter. As you know, we do not go into the details. I just said really modestly higher compared to Q1.

Is there something about the remaining fleet that's seeing better personalization Then prior generation, maybe just help us click into what's helping.

Yeah, that's probably a fair assessment.

Okay. And then I didn't hear, I thought the question came up earlier, but is it still fair to think about units flat for the year or is that assumption?

As Benedetto commented before, we don't want to go into that discussion on volumes. We are managing the manufacturing for the year, considering the complex changeover and increased level of personalization. and doesn't make a big difference, very honestly.

Okay, I appreciate it, guys. Thank you and congrats again.

Thank you, Max. We'll pass to the team.

Thank you. And now we're going to take our next question. And the question comes from Michael Tindall from HSBC. Your line is open. Please ask your question.

Yeah. Afternoon, gentlemen. Thanks for taking my question. I'm going to mess the name up here, but Mamwele, given the success of that model, Would it make sense to do similar across the rest of the range? Or is there a particular reason why it wouldn't make sense? And then the second question, and you're probably going to tell me nothing's changed, but with your upgraded guidance, you're now talking to an 8% growth in EPS. And if I go back to last year, the CAGR was 6% to 2030. So we are Moving above that line, I know Henning's asked this in a different way, but I mean, where are we on that roadmap to 2030? I wonder if you could talk about what's going as planned, what's going better, what's going worse, because it certainly feels as if personalization is going better.

Thanks. The question number one is simple. We don't disclose what we are going to do in the future. We do not even disclose what will happen in the remaining of the year when I say the two other models will be unveiled. The manuale, as you know, we have this limited edition. We'll discover all together at the due time what is the future of this important technology. For the second one, for the guidance, Antonio is here ready to go.

You touched the point. Actually, personalization is doing better than we had assumed for the rest of the plan. And the second element you should not disregard are the assumptions with respect to the currency. that that in terms of the nominal development of the EPS compared to the what the category implied in the in the guidance so just to be clear currency is better yeah yeah and the the last point I should mention is obviously the buyback program that is proceeding at pace and is reducing the number of shares over which you divide the the net profit yeah of course thank you

Welcome.

Thank you so much. And now we're going to take our next question. And the question comes from Jose Alcimendi from JP Morgan. Your line is open. Please ask a question.

Thank you very much and congrats from the strong quarter. Two questions. Benedetto, can you speak a bit about what is driving the personalization to be a little bit better than maybe initially expected? Some examples from your customers and products. And Antonio, can you give us also maybe some color with regards to the second half? How should we think about SG&A and industrial costs? Thank you.

Thank you, Jose. The personalization, let's say, there are, I would like to say that the value of the personalization, the average value of the personalization for the car that we have in the production increased and increased because the option that the client are selecting is tires. So they have been selecting more, let's say, they've been personalizing more the painting, the use of carbon, the use also of rim, the use of special leathers. So there is not a specific item that is driving the increase of personalization as well as there is not a specific pattern in terms of clients from different geographies. There is a general trend that we have seen of clients that want to personalize more and more the cash. And I think in this sense it's good. What we planned and what we shared with you at Capital Market Day a few months ago when we said we are opening a tailor-made in Tokyo, one in LA, and we are also expanding The ability for us to make atelier and tailor-made here in Maranello. So that's the personalization, the kind of personalization driving the increase. For H2, SG&A and R&D, industrial cost, Antonio has all the numbers.

Think of SG&A and R&D for the second quarter higher compared to H1. On a number of events we are working on in terms of SG&A, N.R.N.D. is simply in line with the pace of development of our innovation programs and Formula One for next year. The other element you need to take into account is DNA that is going to grow in H2 as it is implied in the guidance for more than 700 million euros of DNA per year.

Thank you.

Welcome.

Thank you. Now we'll proceed with the next question. And the question comes from Horst Schneider from Bank of America. Your line is open. Please ask your question.

Yes, hello. Thank you for taking my question. This is Horst from Bank of America. The first question that I have relates to the comments that you made on your order book. Because you say you have got now full visibility until the end of 2027, So I'm interested in any particular trend by model and if the statement does also refer to the lucha or if that is an average number that you point to and maybe you can say on which models we have got longer visibility than 2027 maybe. The second question relates a little bit again to the question about the EBIT margin outlook for H2 that is implied in your full year forecast. I realize you remain tight-lipped on that. You gave some items on R&D and DNA, that's helpful. But can you also maybe comment what's the price mix outlook then maybe for H2? It seems that this is getting weaker and maybe you can explain again why that is. I think it has got to do with the regional split and with the product mix development. Thank you.

Thank you, Horst. The order book, as I said, is covering the full year 27. Just consider one important thing, that here, in this order book, we don't have yet the numbers of the manuale, because manuale is something that belongs, let me say, in Q3, and we are working on it. So that's an important point. We are proceeding as planned, In all the models, let me say that we are producing or we will start to produce. I don't want to look like arrogant, but considering what our clients were asking us since a while on the manuale, we were expecting also for manuale to have something very robust like it has been the case. So we are very satisfied. because the things are going as we planned. For the margin EBIT, Antonio here has all the elements on the table. Just two elements.

In terms of the mixed price balance compared to last year, as I said already in May, this is expected to be not lower, I would say higher compared to the first half. And the language we use in the margins is not lower than.

Technically, if I calculate your guidance, it means you do 29.7% margin, but I think it's just rounding error, right?

No, I mean, it depends. I mean, if you take the lower end of the guidance, you're right. That is just the rounding. Okay. Thank you.

Thank you. Now we're going to take our next question. and the question comes from the line of Martino D'Ambroghi from Equita. Your line is open, please ask your question.

Good afternoon and thank you for taking my question. My focus is on the hybrid. The weight of hybrid in the last three quarters was in the region of 30%, much lower than in the last couple of years. So my question is, is it just a matter of changeover of model or it's your decision? And should we expect this portion to remain going ahead? and always on hybrid, is there a big difference between the coverage of the backlog between ICE and hybrid?

Thank you, Martino. You understood clearly. It's just a matter of changeover. Consider that there are two hybrid models that are out of production. It's the 296 GT, BNS and also the Cessna 90XX. These are two hybrids. We are ramping up the others. So, it's not related to any choice to slow down one model or another. It's just a matter of model changeovers and, let me say, personalization of the client that has to be followed. So, do not extract any model, any trend in your model.

Okay. In terms of backlog, it's fully for both?

See, the backlog is, let's say... Let's say, consider that the hybrid we have now, that is basically sold out as well, is the 296 Speciale. You will see how it will change in the future, but just think about this. We have three models, three technologies that we will keep offering our client, that is ICE, that is hybrid, and the and Luce, the electric traction. So that's what we did and that's what we said and what we are doing, Martino.

Okay, and on the Luce, I clearly understand you will never disclose the order intake, how it's going and so on, but could you provide us an idea, because you mentioned we have orders from both existing clients and new ones. What is the ratio between the two? And in the previous question, someone asked about the order book covering 27. So also Luce is fully covering what you were expecting.

Look, I would like to say this one. The Luce, we are very much satisfied, as I told also, because we are proceeding as planned. We are receiving orders from repeaters and new clients. and the very important point is that there is a genuine interest of the people to buy the cars. That is very, very important. This is very, very important because the customer understands that for us, Ferrari Luce is like any other Ferrari. We will take care of the car forever because we have all the capability in-house to take care of this car in-house and forever like it is for the other models. Yes, Martino, we do not disclose Thank you Benedetto. Ciao. Thank you.

Now we're going to go to the next question. And the next question comes from the line of Tom Narayan from RBC. Your line is open. Please ask your question.

Hi, thanks for taking the questions. Antonio, a question on the 26 guidance. I guess the revenue floor was raised by $100 million, but the EBIT floor was raised by $40 million. I guess I would have thought personalization would have a bigger drop through to EBIT I know FX has some hedging, so maybe that didn't drop down as much, but maybe some just commentary on the drop through of the revenue guide to EBIT. And then a follow up on the Americas volumes being down in Q2. And I know you commented on why that happened, but is any of it related to the Middle East situations that may have created some pull forward? from Q2 to Q1, and then lastly, Luce, a follow-up to the last question, you're satisfied, repeat clients' orders coming in, into an interest, but what about new customers to the Ferrari brand, maybe those that were specific to EV buyers? Thanks.

Thank you. I start from the last one, three and two, and the first one is Antonio. So Luce, you got it well. We have a client in this Luce, in the order book of Luce, that never bought a Ferrari in their life, and they are buying Luce because finally Ferrari is also able to provide a car that they like to drive. So we have repeaters and we have clients that... and that's also one of the things that we have been following when looking also for new clients, clients that like electric traction. So this is question number three. Number two, there has been not any, let's say, pull order between one quarter, between one region and others. The story of Middle East lasted, if you remember well, we told you a couple of weeks and then thanks to the dealer's support, and thanks also to our logistic partners, we've been able easily to avoid any problem, not easily, with a lot of effort, but we've been able to, let me say, in a short time, to find a way to have the car reaching the clients because, maybe you were not in the previous call, but we also said that it's incredibly high the number of test drives that our clients, existing and new, are doing in the region. So there is no, the two events are completely uncorrelated. Maybe there is only one thing I told you before is the degree of personalization and the mix of the products that the client wants because the personalization has clearly an impact on the manufacturing time and on the time to realize the cash. For the first one, the guidance 26 and the operating leverage.

First of all, in terms of margin from personalization, this is absolutely unchanged in line with the first half. So the entire difference is related to our forecast of cost increase in the second half across the three lines of the GNA and R&D and most of all DNA. and do not forget that we are maintaining the assumption of ranking first in the Formula One Championship. Okay, thank you.

Thank you.

Thank you, Tom.

And now we're going to take our next question. And it 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 have two. The first one is on the manuale. As it is a limited edition, what is the life cycle? So can we model the shipments in two, three years? If you can, any color could be helpful. And my Excel model will thank you. And another question is on the new customers. Can you share with us some indication on the new customers My question is in which country do you see the major growth in terms of new customers? And are these new customers somewhat different in terms of country for the Amalfi and for the Luce? And ultimately, let's assume that Luce could attract new customers more in China. Would you be willing to increase the weight of shipments in China, maybe above the usual levels? Thank you very much.

Thank you, Monica. So all the customers, new clients of Luce, have two eyes, two ears, two hands, no. Joke aside, there is not a clear pattern of age or geographic pattern. There is, let's say, the interest... Maybe for the new client, the common factor is that they like to drive electric cars. So to be very specific, when we have been talking and approaching the prospect, the new client, we've been looking at the people that are driving and are very acquainted with electric cars. But I can also tell you, really, that when you think about our client, think about unique people. We tried many times. also for other model, ICE, whatever. Really, the common factor is the passion they have for our brand, the willingness to have unique driving experience. Now, we said also that for this model, we will move ourselves in a FIFO mode where either new client or repeater will have the same priority. So this comes back to your question, will you increase penetration Depending on the region, we will follow the order intake because for us it's an opportunity to show once again that we respect on one side the people, the client, willingness to drive a new kind of car. On the other side is also the level of innovation that we brought in our cars. So that's important. Now, the story of the life cycle of the manuale, the first question, I understand that your Excel file would be much easier, but... Yeah, you know, you won't do it in the call.

Got it, okay, thank you.

Thank you, Monica.

Thank you very much.

Thank you. Dear participants, thank you very much for all your questions. And now at this moment I would like to hand over the conference to your speaker, Benedetto Vigna, for any closing remarks.

So thanks to all of you. Thanks for your time today. And I wish you a good morning, good afternoon, and also for the people that go on vacation, also have a good, relaxing vacation with your beloved ones. And thank you again for your attention and meet you soon in a couple of, in a few months. Ciao.

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