1
SAFE HARBOUR STATEMENT This document, and in particular the section entitled 2019 Guidance contains forward-looking statements. These statements may include terms such as may, will, expect, could, should, intend, estimate, anticipate, believe, remain, continue, on track, successful, grow, design, target, objective, goal, forecast, projection, outlook, prospects, plan, guidance or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group s ability to preserve and enhance the value of the Ferrari brand; the success of Ferrari s Formula 1 racing team and the expenses the Group incurs for Formula 1 activities; the Group s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; the challenges and costs of integrating hybrid technology more broadly into Group s car portfolio over time; the Group s ability to preserve its relationship with the automobile collector and enthusiast community; the Group s low volume strategy; the ability of Maserati, the Group s engine customer, to sell its planned volume of cars; changes in client preferences and automotive trends; changes in the general economic environment, including changes in some of the markets in which we operate, and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to its products; the Group s ability to successfully carry out its growth strategy and, particularly, the Group s ability to grow its presence in emerging market countries; the Group s ability to achieve its key financial targets and financial policy; the Group s ability to service and refinance its debt; competition in the luxury performance automobile industry; reliance upon a number of key members of executive management, employees and the ability of its current management team to operate and manage effectively; the performance of the Group s dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components and raw materials; disruptions at the Group s manufacturing facilities in Maranello and Modena; the Group s ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; the performance of the Group s licensees for Ferrari-branded products; the Group s ability to protect its intellectual property rights and to avoid infringing on the intellectual property rights of others; product recalls, liability claims and product warranties; continued compliance with customs regulations of various jurisdictions; labor relations and collective bargaining agreements; exchange rate fluctuations, interest rate changes, credit risk and other market risks; changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which the Group operates, including possible future bans of combustion engine cars in cities and the potential advent of self-driving technology; ability to ensure that its employees, agents and representatives comply with applicable law and regulations; the adequacy of its insurance coverage to protect the Group against potential losses; potential conflicts of interest due to director and officer overlaps with the Group s largest shareholders; ability to maintain the functional and efficient operation of its information technology systems, including our ability to defend from the risk of cyberattacks on our in-vehicle technology, and other factors discussed elsewhere in this document. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company s financial results, is included in the Company s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB. 2
ANOTHER YEAR OF SUSTAINED GROWTH, ALL 2018 TARGETS MET OR EXCEEDED Record adj. diluted EPS (1)(2) of 3.40 (+21%) and strong industrial free cash flow generation (1) of 405 million (+23%) Rewarding shareholders: announced a dividend payout ratio increase to 30% and Euro 1.5 billion share repurchases over the 2019-2022 period in relation to the growth of our industrial free cash flow (1) Successful launches of 488 Pista and 488 Pista Spider as well as the unveiling of the new Icona pillar with the Ferrari Monza SP1 and SP2 Awarded as Best of the Best engine over the past 20 years and Red Dot: Best of the Best design for the fourth year running BUILDING OUR FUTURE PRODUCT RANGE Note:(1) Reconciliations to non-gaap financial measures are provided in the Appendix FY 2018 Results (2) Adj. diluted EPS excludes the Patent Box benefit for the three-year period 2015-2017 and the release of charges related to Takata airbag inflator recalls January 31 st, 2019 3
PRODUCT LAUNCHES AND PRESENTATIONS WHAT WE DID IN 2018 TO BE PRESENTED IN 2019 5 NEW MODELS 4
FY 2018 HIGHLIGHTS SHIPMENTS NET REVENUES (UNITS) ( M) FY '18 9,251 FY '18 3,420 +10.2% +0.1% FY '17 8,398 FY '17 3,417 ADJUSTED EBITDA (1) DILUTED EARNINGS PER SHARE (1) ( M and margin %) ( ) FY '18 1,114 32.6% FY '18 3.40 0.75 4.14 +7.5% +46.8% FY '17 1,036 30.3% FY '17 2.82 Adjusted diluted EPS (1)(2) Adjustments INDUSTRIAL FREE CASH FLOW (1) NET INDUSTRIAL DEBT (1) ( M) ( M) FY '18 405 FY '17 328 +23.5% Dec. 31, 2018 (340) (100) (240) Dec. 31, 2017 (473) Net Industrial Debt (1) excluding share repurchases Share repurchases Note: (1) Reconciliations to non-gaap financial measures are provided in the Appendix (2) Adj. diluted EPS excludes the Patent Box benefit for the three-year period 2015-2017 and the release of charges related to Takata airbag inflator recalls Certain totals in the tables included in this document may not add due to rounding -28.0% 5
FY 2018 SHIPMENTS SHIPMENTS BY REGION (3) SHIPMENTS BY PILLAR AMERICAS +6.7% (32% vs. 33% PY) EMEA +13.1% (46% vs. 45% PY) Total shipments increased by 853 units (+10.2% vs. PY) supported by a 19.6% increase in V12 models and a 7.3% increase in V8 models: Strong deliveries for the 812 Superfast Ferrari Portofino reached global distribution 0% ICONA 64% SPORT 4% SPECIAL SERIES (4) First deliveries of the 488 Pista, 488 Pista Spider yet to arrive on the market 32% GT CHINA, HONG KONG AND TAIWAN +12.6% (8% vs. 7% PY) REST OF APAC +7.8% (14% vs. 15% PY) LaFerrari Aperta finished its limited series run PILLAR BREAKDOWN ALL REGIONS POSITIVELY CONTRIBUTING Note: (3) Refer to notes to the presentation in the Appendix FY 2018 Results (4) Special Series figure includes also LaFerrari Aperta hypercar January 31 st, 2019 6
NET REVENUES BRIDGE FY 2017-2018 ( M) +0.1%, + 3 million at current currency +3.2%, + 108 million at constant currency (9) 168 26 3 94 94 97 95 494 (27) (89) 490 516 (78) 506 373 373 284 284 2,456 2,433 2,601 2,535 FY 2017 FX hedges FY 2017 FY 2017 w/o FX hedges +6.9% -23.8% +5.3% +3.2% 3,417 3,498 3,390 3,420 Cars and spare parts (5) Engines (6) Sponsorship, commercial (7) and brand Other FY 2018 at constant currency 2017 Change in FX 2017 vs. 2018 & FX hedges FY 2018 Cars and spare parts Engines Sponsorship, commercial and brand Other (8) (9) FY 2018 at current currency Cars and spare parts: higher volumes led by the 812 Superfast as well as the ramp up of the Ferrari Portofino and the 488 Pista. Pricing and personalization programs positively contributed along with deliveries of the Ferrari J50 and first deliveries of the FXX K EVO. Partially offset by lower sales of LaFerrari Aperta. Engines: the erosion reflected lower shipments to Maserati Sponsorship, commercial and brand: stronger revenues from sponsorship as well as higher 2017 championship ranking compared to 2016, partially offset by other brand related activities Currency (9), including translation and transaction impacts as well as foreign currency hedges, had a negative impact (mainly USD, GBP and JPY) Note: (5) (6) (7) (8) Refer to notes to the presentation in the Appendix FY 2018 Results (9) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges January 31 st, 2019 7
ADJ. EBIT BRIDGE FY 2017 2018 (1) ( M) 775 (27) 748 118 8 36 890 (17) (3) (65) 825 Margin 22.7% Margin 22.1% Margin 25.4% Margin 24.1% Adj. EBIT FY 2017 FX hedges FY 2017 Adj. EBIT FY 2017 w/o FX hedges Vol. Mix / Price Ind. Costs / R&D SG&A Other Adj. EBIT FY 2018 at constant currency 2017 (9) Change in FX 2017 vs. 2018 & FX hedges FY 2018 Adj. EBIT FY 2018 at current currency Adj. EBITDA Adj. EBITDA at Adj. EBITDA at Adj. EBITDA w/o FX hedges constant curr. 2017 (9) current curr. 1,036 1,009 1,179 1,114 30.3% 29.8% 33.7% 32.6% Volume increase thanks to the 812 Superfast, the ramp up of the Ferrari Portofino as well as the 488 Pista along with positive contribution from personalization programs Mix / price negative due to the combined impact of lower sales of LaFerrari Aperta and the strong increase of the Ferrari Portofino. This was partially offset by the solid performance of the 812 Superfast as well as pricing and deliveries of Ferrari J50 and FXX K EVO. Industrial costs / R&D slightly decreased mainly due to lower spending in F1 activities SG&A mostly in line with prior year Other increased thanks to stronger revenues from sponsorship, higher 2017 championship ranking compared to 2016 as well as a final favorable ruling on a prior year s legal dispute as announced in Q1 2018. This was partially offset by a lower contribution from other brand related activities and engines supplied to Maserati. Note: (1) Reconciliations to non-gaap financial measures are provided in the Appendix. (9) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges 8
INDUSTRIAL FCF (1) AND NET INDUSTRIAL DEBT BRIDGES (1) DEC 31, 2017 DEC 31, 2018 ( M) Industrial Free Cash Flow ( M) Change in Net Industrial Debt 1,114 16 (88) (473) 405 (637) (36) 405 (136) (240) (100) (340) Adj. EBITDA FY 2018 Net working capital and Other Tax paid Capex Industrial FCF FY 2018 December 31, 2017 Net Industrial Debt excl. Buyback Industrial FCF Dividends paid Currency and other December 31, 2018 Net Industrial Debt excl. buyback Shares repurchases December 31, 2018 Net Industrial Debt Note: (1) Reconciliations to non-gaap financial measures are provided in the Appendix 9
2019 GUIDANCE ( B, unless otherwise stated) 2018A 2019E % NET REVENUES 3.4 >3.5 >+3% ADJ. EBITDA (margin %) ADJ. EBIT (margin %) 1.1 1.2-1.25 ~+10% 32.6% ~34% 0.825 0.85-0.9 ~+6% 24.1% ~24.5% ADJ. DILUTED EPS (10) ( ) 3.40 3.50-3.70 ~+6% IND. FCF 0.4 ~0.45 >+10% DELIVERING SOLID GROWTH Note: (10) Calculated using the weighted average diluted number of shares for 2018 10
APPENDIX
NOTES TO THE PRESENTATION 1. Reconciliations to non-gaap financial measures are provided in the Appendix 2. Adj. diluted EPS excludes the Patent Box benefit for the three-year period 2015-2017 and the release of charges related to Takata airbag inflator recalls 3. Shipments geographical breakdown EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separately identified); Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand and Malaysia 7. Includes the net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues and net revenues generated through the Ferrari brand, including merchandising, licensing and royalty income 8. Primarily includes interest income generated by our financial services activities and net revenues from the management of the Mugello racetrack 9. The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges 10. Calculated using the weighted average diluted number of shares for 2018 4. Special Series figure includes also LaFerrari Aperta hypercar 5. Includes the net revenues generated from shipments of our cars, including any personalization revenue generated on these cars and sales of spare parts 6. Includes the net revenues generated from the sale of engines to Maserati and the revenues generated from the rental of engines to other Formula 1 racing teams 12
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models introduced or announced Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SPORT RANGE F430 F430 Spider 599 GTB Fiorano 458 Italia 458 Spider F12berlinetta 488 GTB 488 Spider 812 Superfast GRAN TURISMO RANGE 612 Scaglietti California FF California 30 California T GTC4Lusso GTC4Lusso T Portofino 13
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models introduced or announced Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SPECIAL SERIES Superamerica F430 Scuderia Scuderia Spider 16M 599 GTO SA APERTA 458 Speciale 458 Speciale A F12tdf 488 Pista 488 Pista Spider ICONA Ferrari Monza SP1 Ferrari Monza SP2 Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 HYPERCAR LaFerrari LaFerrari Aperta TRACK CARS FXX K (11) FXX K EVO (11) FUORISERIE F60 America (11) J50 (11) Note: (11) Models not included in the total shipments figure provided 14
GROUP SHIPMENTS (3) +10.2% 8,398 9,251 1,329 +18.9% 1,233 617 695 2,017 321 164 733 2,398 368 173 811 2,811 3,737 3,000 4,227 799 1,046 Q4 2017 Q4 2018 FY 2017 FY 2018 EMEA Americas China, Hong Kong and Taiwan Rest of APAC Note: (3) Refer to notes to the presentation in the Appendix Graphs not to scale. Shipments including hypercars LaFerrari and LaFerrari Aperta 15
KEY PERFORMANCE METRICS Q4 '18 Q4 '17 M, unless otherwise stated FY '18 FY '17 2,398 2,017 Worldwide shipments (units) 9,251 8,398 845 840 Net revenues 3,420 3,417 274 258 EBITDA (1) 1,115 1,036 - - Adjustments (1) - 274 258 Adjusted EBITDA (1) 1,114 1,036 79 64 Amortization and depreciation 289 261 195 194 EBIT 826 775 195 194 Adjusted EBIT (1) 825 775 8 4 Net financial expenses 23 29 187 190 Profit before taxes 803 746 (4) 54 Income tax expense / (benefit) 16 209 n.m. 27.9% Effective tax rate 2.0% 28.0% 191 136 Net profit 787 537 191 136 Adjusted net profit (1) 645 537 1.01 0.72 Basic EPS ( ) 4.16 2.83 1.00 0.71 Diluted EPS (1) ( ) 4.14 2.82 1.01 0.72 Adjusted Basic EPS (1) ( ) 3.41 2.83 1.00 0.71 Adjusted Diluted EPS (1) ( ) 3.40 2.82 Certain totals in the tables included in this document may not add due to rounding. Note: (1) Reconciliations to non-gaap financial measures are provided in the Appendix. 16
DEBT AND LIQUIDITY POSITION 344 45 299 Gross Debt Maturity Profile ( M) 843 158 2 156 143 700 73 73 511 11 500 2019 2020 2021 2022 2023 Bond US Securitizations Other Financial Liabilities Cash and Marketable Securities ( M) Adj. ( M) FY 2018 FY 2017 FY 2016 FY 2015 (12) FY 2015 Euro 616 435 318 137 22 Chinese Yuan 73 62 58 106 106 US Dollar 50 88 16 21 1 Japanese Yen 24 26 37 41 41 Other Currencies 31 37 29 17 13 Total ( equivalent) 794 648 458 322 183 Net Industrial Debt ( M) Net Industrial Debt ( M) At Dec. 31 ( M) 2018 2017 2016 2015 Total Debt (1,927) (1,806) (1,848) (2,260) (340) Cash & Cash Equivalents (A) 794 648 458 183 Deposits in FCA Cash Management Pools (B) - - - 139 (Net Debt)/Net Cash (1,133) (1,158) (1,390) (1,938) Funded Self-Liquidating Financial 793 685 737 1,141 (1,133) 793 o/w 86% securitized (13) Receivables Portfolio (Net Industrial Debt)/Net Industrial Cash (340) (473) (653) (797) Undrawn Committed Credit Lines (C) 500 500 500 500 Total Available Liquidity (A+B+C) 1,294 1,148 958 822 December 31, 2018 Net Debt Funded Self-liquidating Financial Receivables Portfolio December 31, 2018 Net Industrial Debt Note: (12) After settlement of deposits on FCA Group cash management pools and financial liabilities with FCA (13) Portion of the Self-liquidating Financial Receivables Portfolio funded through securitizations Certain totals in the tables included in this document may not add due to rounding 17
non-gaap FINANCIAL MEASURES non-gaap financial measures Operations are monitored through the use of various non-gaap financial measures that may not be comparable to other similarly titled measures of other companies Accordingly, investors and analysts should exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial measures reported by other companies We believe that these supplemental financial measures provide comparable measures of our financial performance which then facilitate management s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions Reconciliations are only provided to the most directly comparable IFRS financial statement line item for Adjusted EBITDA, Adjusted EBIT and Adjusted EPS diluted for historical periods, as the income or expense excluded from these non-gaap financial measures in accordance with our policy are, by definition, not predictable and uncertain Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges. EBITDA is defined as net profit before income tax expense, net financial expenses and depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for income and costs, which are significant in nature, but expected to occur infrequently. Adjusted Earnings Before Interest and Taxes ( Adjusted EBIT ) represents EBIT as adjusted for income and costs, which are significant in nature, but expected to occur infrequently Adjusted net profit represents net profit as adjusted for income and costs net of tax, which are significant in nature, but expected to occur infrequently Adjusted earnings per share diluted represents earnings per share as adjusted for income and costs net of tax, which are significant in nature, but expected to occur infrequently Net Industrial Debt defined as Net Debt excluding the funded portion of the selfliquidating financial receivables portfolio, is the primary measure to analyze our financial leverage and capital structure, and is one of the key indicators used to measure our financial position Free Cash Flow and Free Cash Flow from Industrial Activities are two of management s primary key performance indicators to measure the Group s performance. Free Cash flow is defined as net cash generated from operations less cash flows used in investing activities. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted for the change in the self-liquidating financial receivables portfolio. 18
RECONCILIATIONS OF non-gaap MEASURES: TOTAL NET REVENUES AT CONSTANT AND CURRENT CURRENCY (9) Q4 '18 at current currency Q4 '18 at constant currency M FY '18 at current currency FY '18 at constant currency 637 633 Cars and spare parts 2,535 2,601 57 57 Engines 284 284 126 125 Sponsorship, commercial and brand 506 516 25 24 Other 95 97 845 839 Total Net Revenues 3,420 3,498 Certain totals in the tables included in this document may not add due to rounding Note: (9) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges 19
RECONCILIATIONS OF non-gaap MEASURES: EBIT AND ADJ. EBIT AT CONSTANT AND CURRENT CURRENCY (9) Q4 '18 M FY '18 195 EBIT 826 195 Adjusted EBIT 825 (10) Currency (incl. hedges) 65 185 EBIT at constant currency 891 185 Adjusted EBIT at constant currency 890 Certain totals in the tables included in this document may not add due to rounding Note: (9) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges 20
RECONCILIATIONS OF non-gaap MEASURES: EBITDA AND ADJ. EBITDA AT CONSTANT AND CURRENT CURRENCY (9) Q4 '18 M FY '18 274 EBITDA 1,115 274 Adjusted EBITDA 1,114 (10) Currency (incl. hedges) 65 264 EBITDA at constant currency 1,180 264 Adjusted EBITDA at constant currency 1,179 Certain totals in the tables included in this document may not add due to rounding Note: (9) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges 21
RECONCILIATIONS OF non-gaap MEASURES: ADJUSTED EBIT Q4 '18 Q4 '17 M FY '18 FY '17 195 194 EBIT 826 775 - - Release of charges related to Takata airbag inflator recalls (1) - 195 194 Adjusted EBIT 825 775 Certain totals in the tables included in this document may not add due to rounding 22
RECONCILIATIONS OF non-gaap MEASURES: EBITDA Q4 '18 Q4 '17 M FY '18 FY '17 191 136 Net profit 787 537 (4) 54 Income tax expense / (benefit) 16 209 8 4 Net financial expenses 23 29 79 64 Amortization and depreciation 289 261 274 258 EBITDA 1,115 1,036 Certain totals in the tables included in this document may not add due to rounding 23
RECONCILIATIONS OF non-gaap MEASURES: ADJUSTED EBITDA Q4 '18 Q4 '17 M FY '18 FY '17 274 258 EBITDA 1,115 1,036 - - Release of charges related to Takata airbag inflator recalls (1) - 274 258 Adjusted EBITDA 1,114 1,036 Certain totals in the tables included in this document may not add due to rounding 24
RECONCILIATIONS OF non-gaap MEASURES: ADJUSTED NET PROFIT Q4 '18 Q4 '17 M FY '18 FY '17 191 136 Net profit 787 537 - - Release of charges related to Takata airbag inflator recalls (net of tax effect) (1) - - - Patent Box benefit for the period 2015-2017 (141) - 191 136 Adjusted net profit 645 537 Certain totals in the tables included in this document may not add due to rounding 25
BASIC AND DILUTED EPS Q4 '18 Q4 '17 M (unless otherwise stated) FY '18 FY '17 190 135 188,294 188,954 Net profit attributable to owners of the Company Weighted average number of common shares (thousand) 785 535 188,606 188,951 1.01 0.72 Basic EPS ( ) 4.16 2.83 189,081 189,759 Weighted average number of common shares for diluted earnings per common share (thousand) 189,394 189,759 1.00 0.71 Diluted EPS ( ) 4.14 2.82 Certain totals in the tables included in this document may not add due to rounding 26
RECONCILIATIONS OF non-gaap MEASURES: ADJUSTED EPS Q4 '18 Q4 '17 per common share FY '18 FY '17 1.01 0.72 Basic EPS 4.16 2.83 - - - - Release of charges related to Takata airbag inflator recalls (net of tax effect) Patent Box benefit for the period 2015-2017 (0.01) - (0.74) - 1.01 0.72 Adjusted EPS 3.41 2.83 1.00 0.71 Diluted EPS 4.14 2.82 - - - - Release of charges related to Takata airbag inflator recalls (net of tax effect) Patent Box benefit for the period 2015-2017 (0.01) - (0.74) - 1.00 0.71 Adjusted diluted EPS 3.40 2.82 Certain totals in the tables included in this document may not add due to rounding 27
RECONCILIATIONS OF non-gaap MEASURES: FREE CASH FLOW AND FREE CASH FLOW FROM INDUSTRIAL ACTIVITIES Q4 '18 Q4 '17 M FY '18 FY '17 315 156 Cash flow from operating activities 935 671 (234) (140) Cash flows used in investing activities (14) (637) (387) 81 16 Free Cash Flow 298 284 36 (3) Change in the self-liquidating financial receivables portfolio 107 44 117 13 Free Cash Flow from Industrial Activities (15) 405 328 Certain totals in the tables included in this document may not add due to rounding Note: (14) Cash flow used in investing activities for the twelve months ended December 31, 2017 excludes proceeds from exercising the Delta Topco option of Euro 8 million (15) Free cash flow from industrial activities for the three and twelve months ended December 31, 2018 includes Euro 1 million of quick refund to shareholders due to eligibility for withholding exemption. 28
RECONCILIATIONS OF non-gaap MEASURES: NET INDUSTRIAL DEBT M December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Net Industrial Debt (340) (372) (472) (413) (473) Funded portion of the self-liquidating financial receivables portfolio 793 762 731 666 685 Net Debt (1,133) (1,134) (1,203) (1,079) (1,158) Cash and cash equivalents 794 753 650 743 648 Total Debt (1,927) (1,887) (1,853) (1,822) (1,806) Certain totals in the tables included in this document may not add due to rounding 29