🧾 What This Document Is

This is a share buyback update from Ferrari. It's a regulatory filing (a 6-K with Exhibit 99.1) announcing that they've completed the first phase of their plan to buy back their own stock and are immediately starting the second phase. Think of it as a progress report and a "next steps" announcement for their big shareholder return program.

🏢 What The Company Does

👉 In simple terms, Ferrari isn't just a car company—it's a luxury brand powerhouse. They make ultra-exclusive sports cars, compete in Formula 1 (the most successful team ever), and sell high-end lifestyle goods. Their brand is all about heritage, performance, and exclusivity, which allows them to command premium prices.

💰 The Buyback in Numbers

This program is massive and multi-year. Here are the key figures:

• The Mega-Plan: The total program is for approximately €3.5 billion, expected to run until 2030.
• First Tranche Complete: They just finished the first part, spending €250 million. From January 5 to April 9, 2026, they bought back 850,054 shares for a total of €249,999,221.05.
• What They Just Bought (Last Two Days): In the specific transactions listed, they bought 61,261 shares for about €17.9 million on April 7th and 8th across the Italian (EXM) and U.S. (NYSE) stock exchanges.
• Treasury Stock: After these buys, Ferrari holds 17,494,660 of its own shares in treasury. That's 9.02% of all common shares outstanding—a significant chunk.

👉 Why it matters: Buying back nearly 10% of its own stock is a huge vote of confidence. It reduces the number of shares on the market, which can increase the value of the remaining shares for other investors.

🚀 Key Moves: The Second Tranche

With the first €250 million spent, Ferrari is immediately rolling into the Second Tranche.

• Amount & Timing: Another €250 million, set to start April 13, 2026 and end no later than August 28, 2026.
• How It Works: This tranche has two parts:
  1. €200 million via an automated, "non-discretionary" agreement on the Italian exchange. This runs automatically, independent of Ferrari's daily input.
  2. €50 million on the New York Stock Exchange, where Ferrari will give instructions based on market conditions.
• The Rulebook: This is all authorized by a shareholder vote from April 2025, which approved buying back up to 10% of shares over 18 months (expires October 15, 2026).

💸 Cash Flow Story

👉 Where's the money coming from? Ferrari is funding this with available cash. This is important—it means they believe their operations generate enough cash to both run the business and return this massive amount to shareholders without taking on debt. It's a sign of strong, mature cash generation.

⚖️ Big Picture

👍 Strengths:

• Shareholder-Friendly: A clear, large, and committed capital return program rewards investors directly.
• Financial Confidence: Using cash for buybacks signals management believes the company is financially strong and its stock is a good investment.
• Brand Power: The ability to fund this while maintaining exclusivity and F1 investment speaks to incredible brand strength and pricing power.

⚠️ Risks:

• Execution Risk: Buying stock in the open market means the price paid matters. They could be buying at high points.
• Capital Allocation: Every euro spent on buybacks is a euro not spent on new models, technology, or expanding production. It's a balancing act.
• Market Dependency: The program's timeline and volume (especially on the NYSE) depend on market conditions.

🔮 What's Next

The immediate next step is the launch of the Second Tranche on April 13, 2026. The broader plan is to continue executing this €3.5 billion program through 2030, in line with their long-term strategy revealed at their 2025 Capital Markets Day. Investors will be watching the pace and volume of these repurchases.

🧠 The Analogy

Think of Ferrari like a renowned, family-owned winery that is so profitable it decides to gradually buy back shares of its own business from the family shareholders. It doesn't want to just hold the cash; it wants to consolidate ownership, showing its belief that a share in the "winery" is one of the best assets you can own. This filing is the announcement that the first case of vintage wine has been bought back, and they're heading to the cellar to start buying the second case.

🧩 Final Takeaway

Ferrari is executing its massive, long-term shareholder reward plan right on schedule. Completing the first €250 million buyback and immediately launching the next demonstrates strong financial discipline and confidence in their own future value. This is a clear signal that the company sees itself as an attractive investment.