Exhibit 99.1
Ferrari N.V.

Interim Report

At and for the three months ended March 31,2022

____________________________________________________________________________________________________

CONTENTS

	Page
BOARD OF DIRECTORS	1
INDEPENDENT AUDITORS	1
CERTAIN DEFINED TERMS	1
INTRODUCTION	2
FORWARD-LOOKING STATEMENTS	3
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Highlights	5
Results of Operations	8
Liquidity and Capital Resources	12
Non-GAAP Financial Measures	18
Risk Factors	23
Outlook	24
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT AND FOR THE THREE MONTHS ENDED MARCH 31, 2022
Interim Consolidated Income Statement	F-1
Interim Consolidated Statement of Comprehensive Income	F-2
Interim Consolidated Statement of Financial Position	F-3
Interim Consolidated Statement of Cash Flows	F-4
Interim Consolidated Statement of Changes in Equity	F-5
Notes to the Interim Condensed Consolidated Financial Statements	F-6

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BOARD OF DIRECTORS

Executive Chairman

John Elkann

Vice Chairman

Piero Ferrari

Chief Executive Officer

Benedetto Vigna

Directors

Delphine Arnault

Francesca Bellettini

Eddy Cue

Sergio Duca

John Galantic

Maria Patrizia Grieco

Adam Keswick

INDEPENDENT AUDITORS

EY S.p.A.

CERTAIN DEFINED TERMS

    In this report (the “Interim Report”), unless otherwise specified, the terms “we”, “our”, “us”, the “Group”, the “Company” and “Ferrari” refer to Ferrari N.V., individually or together with its subsidiaries, as the context may require.

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INTRODUCTION

    The Interim Condensed Consolidated Financial Statements at and for the three months ended March 31, 2022 (the “Interim Condensed Consolidated Financial Statements”) included in this Interim Report have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and in accordance with IFRS as endorsed by the European Union, and in particular, in compliance with IAS 34 — Interim Financial Reporting. There are no material effects on the Interim Condensed Consolidated Financial Statements resulting from differences between IFRS as issued by the IASB and IFRS as endorsed by the European Union. The accounting principles applied are consistent with those used for the preparation of the annual consolidated financial statements at and for the year ended December 31, 2021 (the “Annual Consolidated Financial Statements”), except as otherwise stated in “New standards and amendments effective from January 1, 2022” in the notes to the Interim Condensed Consolidated Financial Statements.

    The Group’s financial information in this Interim Report is presented in Euro except that, in some instances, information is presented in U.S. Dollars. All references in this report to “Euro” and “€” refer to the currency introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union, as amended, and all references to “U.S. Dollars” and “$” refer to the currency of the United States of America (the “United States”).

    Certain totals in the tables included in this Interim Report may not add due to rounding.

    The financial data in “Results of Operations” is presented in millions of Euro, while the percentages presented are calculated using the underlying figures in thousands of Euro.

    This Interim Report is unaudited.

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FORWARD-LOOKING STATEMENTS

    Statements contained in this report, particularly those regarding our possible or assumed future performance, are “forward-looking statements” that contain risks and uncertainties. In some cases, words 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” and similar expressions are used to identify forward-looking statements. These forward-looking statements reflect the respective current views of Ferrari with respect to future events and involve significant risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, without limitation:

•our ability to preserve and enhance the value of the Ferrari brand;

•the success of our Formula 1 racing team and the expenses we incur for our Formula 1 activities, the uncertainty of the sponsorship and commercial revenues we generate from our participation in the Formula 1 World Championship, including as a result of the impact of the COVID-19 pandemic, as well as the popularity of Formula 1 more broadly;

•our ability to keep up with advances in high performance car technology, to meet the challenges and costs of integrating advanced technologies, including hybrid and electric, more broadly into our car portfolio over time and to make appealing designs for our new models;

•our ability to preserve our relationship with the automobile collector and enthusiast community;

•changes in client preferences and automotive trends;

•changes in global economic conditions or in the economic conditions of the markets in which we operate, including changes in demand for luxury goods or high performance luxury cars, which is highly volatile;

•competition in the luxury performance automobile industry;

•our ability to successfully carry out our controlled growth strategy and, particularly, our ability to increase our presence in growth market countries;

•our low volume strategy;

•macro events, geopolitical crises and pandemics, including the effects of the evolution of and response to the COVID-19 pandemic;

•the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to our products;

•reliance upon a number of key members of executive management and employees, and the ability of our current management team to operate and manage effectively;

•the performance of our dealer network on which we depend for sales and services;

•increases in costs, disruptions of supply or shortages of components and raw materials;

•disruptions at our manufacturing facilities in Maranello and Modena;

•the performance of our licensees for Ferrari-branded products;

•our ability to protect our intellectual property rights and to avoid infringing on the intellectual property rights of others;

•the ability of Maserati, our engine customer, to sell its planned volume of cars;

•our continued compliance with customs regulations of various jurisdictions;

•product recalls, liability claims and product warranties;

•the adequacy of our insurance coverage to protect us against potential losses;

•our ability to ensure that our employees, agents and representatives comply with applicable law and regulations;

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•our ability to maintain the functional and efficient operation of our information technology systems and to defend from the risk of cyberattacks, including on our in-vehicle technology;

•our ability to service and refinance our debt;

•our ability to provide or arrange for adequate access to financing for our dealers and clients, and associated risks;

•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 we operate, including the effects of Brexit on the UK market or possible future bans of combustion engine cars in cities;

•labor relations and collective bargaining agreements;

•the potential advent of self-driving technology;

•potential conflicts of interest due to director and officer overlaps with our largest shareholders;

•other factors discussed elsewhere in this document.

We expressly disclaim and do 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. Actual results could differ materially from those anticipated in such forward-looking statements. We do not undertake an obligation to update or revise publicly any forward-looking statements.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Highlights

Consolidated Income Statement Data

	For the three months ended March 31,
	2022	2021
	(€ million, except per share data)
Net revenues	1,186	1,011
EBIT	307	266
Profit before taxes	299	257
Net profit	239	206
Net profit attributable to:
Owners of the parent	238	205
Non-controlling interests	1	1
Basic earnings per common share (in Euro) (1)	1.30	1.11
Diluted earnings per common share (in Euro) (1)	1.29	1.11

____________________________

(1)    See Note 13 “Earnings per Share” to the Interim Condensed Consolidated Financial Statements for the calculation of basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021.

Consolidated Statement of Financial Position Data

	At March 31, 2022	At December 31, 2021
	(€ million)
Cash and cash equivalents	1,494	1,344
Receivables from financing activities	1,191	1,144
Total assets	7,296	6,864
Debt	2,655	2,630
Total equity	2,337	2,211
Equity attributable to owners of the parent	2,332	2,206
Non-controlling interests	5	5
Share capital	3	3
Common shares issued and outstanding (in thousands of shares)	183,276	183,843

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Other Statistical Information

Shipments (1)

(Number of cars and % of total cars)	For the three months ended March 31,
	2022	%		2021	%
EMEA
Germany	438	13.5	%	369	13.3	%
UK	224	6.9	%	205	7.4	%
Italy	204	6.3	%	169	6.1	%
Switzerland	162	5.0	%	157	5.7	%
France	150	4.6	%	156	5.6	%
Middle East (2)	123	3.8	%	91	3.3	%
Other EMEA (3)	442	13.5	%	312	11.3	%
Total EMEA	1,743	53.6	%	1,459	52.7	%
Americas (4)	658	20.2	%	755	27.2	%
Mainland China, Hong Kong and Taiwan	285	8.8	%	194	7.0	%
Rest of APAC (5)	565	17.4	%	363	13.1	%
Total	3,251	100.0	%	2,771	100.0	%

_____________________________

(1)    Excluding the XX Programme, racing cars, one-off and pre-owned cars.

(2)     Middle East mainly includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait.

(3)     Other EMEA includes Africa and the other European markets not separately identified.

(4)    Americas includes the United States of America, Canada, Mexico, the Caribbean and Central and South America.

(5)    Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia.

Average number of employees for the period

	For the three months ended March 31,
	2022	2021
Average number of employees for the period	4,632	4,558

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Overview of the three months ended March 31, 2022

On January 10, 2022, Ferrari presented a new organizational structure, consistent with its strategic objectives to nurture the exclusivity of the Ferrari Brand, enrich product excellence, stay true to its racing DNA and focus on the achievement of carbon neutrality by 2030. The new organizational structure will further foster innovation, optimize processes and increase collaboration both internally and with partners, broadening the leadership team through both the promotion of internal talent and a number of key strategic external hires.

On January 26, 2022, Ferrari announced that CEVA Logistics will be a new Scuderia Ferrari team partner starting from the 2022 Formula 1 season. The multi-year agreement will also see CEVA involved in Ferrari’s other racing activities in GT racing and the Ferrari Challenge, with the Marseille-based company taking on the role of Official Logistics Partner for those racing series.

On February 8, 2022, Ferrari announced a new partnership with Qualcomm Technologies, Inc. The San Diego, California-based company will be a Scuderia Ferrari Premium Partner through Snapdragon, Qualcomm’s premium product and experience brand leveraged across multiple platforms and categories, including automotive. The agreement with Qualcomm Technologies will have a strong technological impact aimed at accelerating the digital transformation process for Ferrari and its road cars. Starting from the first common projects already identified, such as the digital cockpit, the two companies will bring together ideas and expertise to explore new opportunities and a range of technological solutions.

On February 25, 2022, the Board of Directors of Ferrari N.V. recommended to the Company’s shareholders that the Company declare a dividend of €1.362 per common share, totaling approximately €250 million. The proposal was subsequently approved by the Company’s shareholders at the Annual General Meeting held on April 13, 2022.

On March 3, 2022, Ferrari N.V. informed that it had completed on March 2, 2022 the Fifth Tranche of the multi-year share repurchase program. On the same date, the Company announced the continuation of its already disclosed multi-year share repurchase program with a Sixth Tranche of up to €120 million from March 4, 2022 to no later than June 14, 2022.

On March 8, 2022, Ferrari donated €1 million to support Ukrainians in need. The funds will be channeled through the Emilia-Romagna Region that, in collaboration with the Red Cross and UNHCR, will fund international humanitarian projects supporting Ukraine as well as local initiatives focusing on the reception of refugees in the Italian region. Additionally, aid will go to the Association Chernobyl of Maranello, Fiorano, Formigine – ONLUS to provide for the needs of the Ukrainians who will be hosted in the area near the Company. Furthermore, given the ongoing situation Ferrari decided to suspend the shipment of vehicles to the Russian market until further notice.

On March 22, 2022, Ferrari signed a Memorandum of Understanding (Protocollo di Intesa) with the Italian Ministry of Economic Development (MISE), Invitalia (the National Agency for Inward Investment and Economic Development S.p.A.) and the Emilia-Romagna Region, under which the institutions involved will support Ferrari’s plan, which involves investments in technology and production, with a strong focus on innovation as well as a social and environmental commitment. The plan will significantly benefit the territory of Maranello and Modena, and is expected to lead to the employment of 250 new hires. MISE’s contribution, under the Development Contract (Contratto di Sviluppo), could reach up to about €106 million, which will be directed towards industrial projects and research and development activities for new technologies aimed at reducing environmental impact and increasing digitalization. The Emilia-Romagna Region will also provide complementary funding for investments in research and development, education and environmental protection, as well as support for possible logistical and IT network infrastructure, in collaboration with other local bodies involved.

Despite new waves of COVID-19 in certain parts of the world, including Mainland China which has recently reimposed various restrictions in certain regions, there were no significant effects on our supply chain or shipments during the first quarter of 2022 and overall impacts were limited. Ferrari’s leadership is continuously monitoring the evolution of COVID-19 as new information becomes available, as well as the related effects on the results of operations and financial position of the Group.

As a result of the ongoing conflict in Ukraine that started in February 2022, many governments and supranational organizations around the world have announced the imposition of various sanctions on certain industries, individuals and entities in Russia, Belarus and the Ukrainian regions of Donetsk and Luhansk, as well as export controls on certain industries and products, including on luxury goods, and the exclusion of certain Russian financial institutions from the SWIFT

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messaging system. In early March 2022 the Group suspended any shipment or delivery of vehicles to the Russian market until further notice. The effects of these sanctions and other measures on Ferrari’s business, including its supply chain, have been limited in the first quarter of 2022, despite the continued rise in energy and commodity prices, which has been exacerbated by the conflict. Management is carefully monitoring the geopolitical environment and its potential implications on our business globally to appropriately address the impacts on our new order intake, operating costs and financial expenses.

Results of Operations

Three months ended March 31, 2022 compared to three months ended March 31, 2021

    The following is a discussion of the results of operations for the three months ended March 31, 2022 compared to the three months ended March 31, 2021. The presentation includes line items as a percentage of net revenues for the respective periods presented to facilitate period-to-period comparisons.

	For the three months ended March 31,
	2022	Percentage of net revenues		2021	Percentage of net revenues
	(€ million, except percentages)
Net revenues	1,186	100.0	%	1,011	100.0	%
Cost of sales	588	49.6	%	483	47.8	%
Selling, general and administrative costs	90	7.6	%	72	7.1	%
Research and development costs	198	16.6	%	189	18.7	%
Other expenses/(income), net	5	0.4	%	2	0.2	%
Result from investments	2	0.1	%	1	0.1	%
EBIT	307	25.9	%	266	26.3	%
Net financial expenses	8	0.7	%	9	0.9	%
Profit before taxes	299	25.2	%	257	25.4	%
Income tax expense	60	5.0	%	51	5.1	%
Net profit	239	20.2	%	206	20.3	%

Net revenues

	For the three months ended March 31,						Increase/(Decrease)
	2022	Percentage of net revenues		2021	Percentage of net revenues		2022 vs. 2021
	(€ million, except percentages)
Cars and spare parts (1)	1,012	85.3	%	855	84.6	%	157	18.3	%
Engines (2)	37	3.1	%	45	4.5	%	(8)	(17.8	%)
Sponsorship, commercial and brand (3)	109	9.2	%	91	8.9	%	18	19.6	%
Other (4)	28	2.4	%	20	2.0	%	8	42.0	%
Total net revenues	1,186	100.0	%	1,011	100.0	%	175	17.3	%

_____________________________

(1)Includes net revenues generated from shipments of our cars, any personalization generated on these cars, as well as sales of spare parts.

(2)Includes net revenues generated from the sale of engines to Maserati for use in their cars and from the rental of engines to other Formula 1 racing teams.

(3)Includes net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as net revenues generated through the Ferrari brand, including merchandising, licensing and royalty income.

(4)Primarily relates to financial services activities and management of the Mugello racetrack and other sports-related activities.

    Net revenues for the three months ended March 31, 2022 were €1,186 million, an increase of €175 million, or 17.3 percent (an increase of 16.6 percent on a constant currency basis), from €1,011 million for the three months ended March 31, 2021.

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The change in net revenues was attributable to the combination of (i) a €157 million increase in cars and spare parts, (ii) an €18 million increase in sponsorship, commercial and brand, and (iii) an €8 million increase in other net revenues, partially offset by (iv) an €8 million decrease in engines.

Cars and spare parts

    Net revenues generated from cars and spare parts were €1,012 million for the three months ended March 31, 2022, an increase of €157 million, or 18.3 percent, from €855 million for the three months ended March 31, 2021.

    The increase in net revenues from cars and spare parts was primarily attributable to higher car volumes, positive mix and pricing, as well as personalizations. The increase was also supported by the positive contribution from the appreciation of certain foreign currencies compared to the Euro, mainly the U.S. Dollar and the Chinese Yuan, partially offset by the impact of hedging transactions.

Total shipments increased by 480 cars, or 17.3 percent, from 2,771 cars in the first quarter of 2021 to 3,251 cars in the first quarter of 2022. The product portfolio in the quarter included eight internal combustion engine (ICE) models and two hybrid engine models, which represented 83 percent and 17 percent of total shipments, respectively. The increase in shipments was driven by the Ferrari Roma and the SF90 family, together with the Ferrari Portofino M, as well as our first deliveries of the 812 Competizione, partially offset by the F8 Tributo and the 812 family, as well as the phase-out of the 488 Pista family. Shipments of the Ferrari Monza SP1 and SP2 were lower compared to the prior year and reached the end of their limited-series run.

The €157 million increase in net revenues was composed of: (i) a €95 million increase in EMEA, (ii) a €29 million decrease in Americas (iii) a €41 million increase in Mainland China, Hong Kong and Taiwan, and (iv) a €50 million increase in Rest of APAC. The mix of net revenues by geography was impacted by deliberate geographic allocations of shipments, in response to port congestion experienced in the first months of the year.

Engines

    Net revenues generated from engines were €37 million for the three months ended March 31, 2022, a decrease of €8 million, or 17.8 percent, from €45 million for the three months ended March 31, 2021. The €8 million decrease was mainly attributable to a decrease in engines sold to Maserati, which is approaching the 2023 contract expiration.

Sponsorship, commercial and brand

    Net revenues generated from sponsorship, commercial agreements and brand management activities were €109 million for the three months ended March 31, 2022, an increase of €18 million, or 19.6 percent, from €91 million for the three months ended March 31, 2021, mainly attributable to the better prior year Formula 1 ranking and brand-related activities, partially offset by lower sponsorships.

Cost of sales

	For the three months ended March 31,						Increase/(Decrease)
	2022	Percentage of net revenues		2021	Percentage of net revenues		2022 vs. 2021
	(€ million, except percentages)
Cost of sales	588	49.6	%	483	47.8	%	105	21.7	%

    Cost of sales for the three months ended March 31, 2022 was €588 million, an increase of €105 million, or 21.7 percent, from €483 million for the three months ended March 31, 2021. As a percentage of net revenues, cost of sales was 49.6 percent for the three months ended March 31, 2022 compared to 47.8 percent for the three months ended March 31, 2021.

    The increase in cost of sales was primarily attributable to higher car volumes, as well as higher industrial costs, including the effects of rising raw materials and energy prices, partially offset by lower engines produced for Maserati.

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Selling, general and administrative costs

	For the three months ended March 31,						Increase/(Decrease)
	2022	Percentage of net revenues		2021	Percentage of net revenues		2022 vs. 2021
	(€ million, except percentages)
Selling, general and administrative costs	90	7.6	%	72	7.1	%	18	25.6	%

    Selling, general and administrative costs for the three months ended March 31, 2022 were €90 million, an increase of €18 million, or 25.6 percent, from €72 million for the three months ended March 31, 2021. As a percentage of net revenues, selling, general and administrative costs were 7.6 percent for the three months ended March 31, 2022 compared to 7.1 percent for the three months ended March 31, 2021.

    The increase was mainly attributable to communication and marketing activities and the lifestyle events during the quarter, as well as costs to support the Group’s organizational development.

Research and development costs

	For the three months ended March 31,						Increase/(Decrease)
	2022	Percentage of net revenues		2021	Percentage of net revenues		2022 vs. 2021
	(€ million, except percentages)
Research and development costs expensed during the period	145	12.1	%	141	13.9	%	4	2.3	%
Amortization of capitalized development costs	53	4.5	%	48	4.8	%	5	11.2	%
Research and development costs	198	16.6	%	189	18.7	%	9	4.6	%

    Research and development costs for the three months ended March 31, 2022 were €198 million, an increase of €9 million, or 4.6 percent, from €189 million for the three months ended March 31, 2021. As a percentage of net revenues, research and development costs were 16.6 percent for the three months ended March 31, 2022 compared to 18.7 percent for the three months ended March 31, 2021.

The increase of €9 million was primarily attributable to an increase in research and development costs expensed of €4 million driven by product innovation and Formula 1 activities, as well as an increase in amortization of capitalized development costs of €5 million driven by a general increase in capitalized development costs in recent years in line with our strategy to innovate and broaden our product range.

EBIT

	For the three months ended March 31,						Increase/(Decrease)
	2022	Percentage of net revenues		2021	Percentage of net revenues		2022 vs. 2021
	(€ million, except percentages)
EBIT	307	25.9	%	266	26.3	%	41	15.4	%

    EBIT for the three months ended March 31, 2022 was €307 million, an increase of €41 million, or 15.4 percent, from €266 million for the three months ended March 31, 2021.

The increase in EBIT was primarily attributable to the combined effects of (i) positive volume impact of €59 million, (ii) positive product mix impact of €13 million, (iii) an increase in research and development costs of €9 million, (iv)

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an increase in selling, general and administrative costs of €18 million, (v) negative contribution of €6 million from higher industrial costs (including the effects of rising raw materials and energy prices), lower sponsorships, reduced engine shipments to Maserati (in line with plans) and other miscellaneous expenses, partially offset by the better prior year Formula 1 ranking and higher contribution from brand-related and other supporting activities, and (vi) positive foreign currency exchange impact of €2 million (including foreign currency hedging instruments).

Net financial expenses

	For the three months ended March 31,		Increase/(Decrease)
	2022	2021	2022 vs. 2021
	(€ million, except percentages)
Net financial expenses	8	9	(1)	(13.2)	%

    Net financial expenses for the three months ended March 31, 2022 of €8 million were substantially in line with net financial expenses for the three months ended March 31, 2021 of €9 million.

Income tax expense

	For the three months ended March 31,		Increase/(Decrease)
	2022	2021	2022 vs. 2021
	(€ million, except percentages)
Income tax expense	60	51	9	16.4	%

Income tax expense for the three months ended March 31, 2022 was €60 million, an increase of €9 million, or 16.4 percent, compared to €51 million for the three months ended March 31, 2021.

The increase in income tax expense was primarily attributable to an increase in profit before taxes. Income taxes for the three months ended March 31, 2022 and 2021 benefited from the application of the Patent Box tax regime.

    The effective tax rate was 20.0 percent for the three months ended March 31, 2022 and 2021.

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Liquidity and Capital Resources

Liquidity Overview

    We require liquidity in order to fund our operations and meet our obligations. Short-term liquidity is required, among others, to purchase raw materials, parts, components and utilities for car production, as well as to fund personnel expenses and other operating costs. In addition to our general working capital and operational needs, we require cash for capital investments to support continuous product range renewal and expansion and for research and development activities to expand our product portfolio through hybrid and electric technology. We also make investments to, among others, enhance manufacturing efficiency, improve capacity, implement sustainability initiatives, ensure environmental compliance and carry out maintenance activities. We fund our capital expenditure primarily with cash generated from our operating activities.

    We centrally manage our operating cash management, liquidity and cash flow requirements with the objective of ensuring efficient and effective management of our funds. We believe that our cash generation together with our available liquidity, including committed credit lines granted from primary financial institutions, will be sufficient to meet our obligations and fund our business and capital expenditures.

    See the “Net Debt and Net Industrial Debt” section below for additional details relating to our liquidity.

Cyclical Nature of Our Cash Flows

    Our working capital is subject to month to month fluctuations due to, among other things, production and sales volumes, our financial services activities, the timing of capital expenditures and, to a lesser extent, tax payments. In particular, our inventory levels generally increase with our growth in deliveries, in the periods leading up to the launch of new models, during the phase out of existing models when we build up spare parts, and at the end of the second quarter when our inventory levels are generally higher to support the summer plant shutdown.

    We generally receive payment for cars between 30 and 40 days after the car is shipped (or earlier when sales financing schemes are utilized by us or by our dealers) while we generally pay most suppliers between 60and 90days after we receive the raw materials, components or other goods and services. Additionally, we also receive advance payments from our customers, mainly for our Icona and limited edition models. We maintain sufficient inventory of raw materials and components to ensure continuity of our production lines, however delivery of most raw materials and components takes place monthly or more frequently in order to minimize inventories. The manufacture of one of our cars typically takes between 30 and 45 days, depending on the level of automation of the relevant production line, and the car is generally shipped to our dealers three to six days following the completion of production, although we may warehouse cars in local markets for longer periods of time to ensure prompt deliveries in certain regions. As a result of the above, including the advances received from customers for certain car models, we tend to receive payment for cars shipped before or around the time we are required to make payments for the raw materials, components or other materials used in manufacturing the cars.

    Our investments for capital expenditure and research and development are, among other factors, influenced by the timing and number of new models launches. Our development costs, as well as our other investments in capital expenditure, generally peak in periods when we develop a significant number of new models to renew or expand our product range. Our investments in research and development are also influenced by the timing of research costs for our Formula 1 activities, for which expenditure in a normal season is generally higher in the first and last quarters of the year, and otherwise depends on the evolution of the applicable Formula 1 technical regulations, as well as the number and cadence of races during the course of the racing season. We are currently undergoing a period of structurally higher capital spending as we broaden our car architectures and work on the transition to hybrid and electric technologies. We also continue to make significant capital investments by prioritizing the purchase of operating assets and the realization of infrastructural projects that are considered important for the continuing success of Ferrari and its future development, including recent acquisitions of tracts of land adjacent to our facilities in Maranello as part of our expansion plans.

    The payment of income taxes also affects our cash flows. We typically pay the first tax advance payment in the second quarter of the year and the remaining portion in the third and/or fourth quarters. Our tax expense and tax payments for the three months ended March 31, 2022 and 2021 benefited from applying the Patent Box tax regime. See Note 12 “Income Tax Expense” to the Interim Condensed Consolidated Financial Statements included elsewhere in this document for additional information related to the Patent Box tax regime in Italy.

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Cash Flows

    The following table summarizes the cash flows from/(used in) operating, investing and financing activities for the three months ended March 31, 2022 and 2021. For additional details of our cash flows, see our Interim Condensed Consolidated Financial Statements included elsewhere in this Interim Report.

	For the three months ended March 31,
	2022	2021
	(€ million)
Cash and cash equivalents at beginning of the period	1,344	1,362
Cash flows from operating activities	413	274
Cash flows used in investing activities	(131)	(150)
Cash flows used in financing activities	(135)	(511)
Translation exchange differences	3	5
Total change in cash and cash equivalents	150	(382)
Cash and cash equivalents at end of the period	1,494	980

For the three months ended March 31, 2022 cash and cash equivalents held by the Group increased by €150 million compared to a decrease of €382 million for the three months ended March 31, 2021. The difference in the net change in cash and cash equivalents of positive €532 million was primarily attributable to the combined effects of:

(i)the full repayment of a bond for €501 million in January 2021 (including a principal amount of €500 million and interest of €1 million);

(ii)higher change in other operating assets and liabilities for €94 million driven by the collection of advances from the Daytona SP3 and the 812 Competizione A, as well as by Formula 1 activities;

(iii)an increase in EBITDA of €47 million; and

(iv)lower investments in property, plant and equipment €24 million;

partially offset by:

(v)higher share repurchases of €107 million (€135 million in the first quarter of 2022 compared to €28 million in the first quarter of 2021) as the share repurchase program was resumed on March 11, 2021 following the decision to temporarily suspend the program on March 30, 2020 as a result of the COVID-19 pandemic; and

(vi)net repayments of borrowings from bank and other financial institutions for €21 million.

    Operating Activities - Three Months Ended March 31, 2022

    Our cash flows from operating activities for the three months ended March 31, 2022 were €413 million, primarily the result of:

(i)profit before taxes of €299 million adjusted for €116 million for depreciation and amortization expense, €8 million of net finance costs and net other non-cash expenses of €21 million (including provisions accrued and result from investments); and

(ii)€142 million of cash generated from the change in other operating assets and liabilities primarily driven by advances received for the Ferrari Daytona SP3 and the 812 Competizione A, as well as by Formula 1 activities.

These cash inflows were partially offset by:

(i)€130 million of cash absorbed from the net change in inventories, higher trade receivables and lower trade payables, primarily attributable to trade receivables for €89 million driven by higher volumes and sponsorship agreements, inventories for €37 million and trade payables for €4 million;

13

(ii)€23 million related to cash absorbed by receivables from financing activities;

(iii)€11 million of net finance costs paid; and

(iv)€9 million of income taxes paid.

    Operating Activities - Three Months Ended March 31, 2021

    Our cash flows from operating activities for the three months ended March 31, 2021 were €274 million, primarily the result of:

(i)profit before taxes of €257 million adjusted for €110 million for depreciation and amortization expense, €9 million of net finance costs and net other non-cash expenses of €15 million (including provisions accrued and result from investments); and

(ii)€49 million of cash generated from the change in other operating assets and liabilities primarily driven by advances received for Formula 1 sponsorship agreements.

These cash inflows were partially offset by:

(i)€120 million related to cash absorbed from the net change in inventories, trade receivables and trade payables, primarily attributable to trade receivables for €64 million in relation to sponsorship agreements and trade payables for €30 million mainly driven by lower capital expenditures;

(ii)€31 million related to cash absorbed by receivables from financing activities;

(iii)€13 million of net finance costs paid; and

(iv)€2 million of income taxes paid.

Investing Activities - Three Months Ended March 31, 2022

    For the three months ended March 31, 2022 our net cash used in investing activities was €131 million, primarily the result of:

(i)capital expenditures of €39 million for additions to property, plant and equipment, €91 million for additions to intangible assets, mainly related to externally acquired and internally generated development costs, and €1 million for investments in joint ventures. For a detailed analysis of additions to property, plant and equipment and intangible assets see “Capital Expenditures.”

    Investing Activities - Three Months Ended March 31, 2021

For the three months ended March 31, 2021 our net cash used in investing activities was €150 million, primarily the result of:

(i)capital expenditures of €64 million for additions to property, plant and equipment and €87 million for additions to intangible assets, mainly related to externally acquired and internally generated development costs. These cash flows were partially offset by proceeds of €1 million from the disposal of property, plant and equipment. For a detailed analysis of additions to property, plant and equipment and intangible assets see “Capital Expenditures.”

    Financing Activities - Three Months Ended March 31, 2022

For the three months ended March 31, 2022, net cash used in financing activities was €135 million, primarily the result of:

(i)€135 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans);

14

(ii)€21 million in net changes of borrowings from banks and other financial institutions; and

(iii)€3 million in repayments of lease liabilities.

These cash outflows were partially offset by:

(i)€20 million of proceeds net of repayments related to our revolving securitization programs in the United States; and

(ii)€4 million related to the net change in other debt.

Financing Activities - Three Months Ended March 31, 2021

For the three months ended March 31, 2021 net cash used in financing activities was €511 million, primarily the result of:

(i)€500 million for the full repayment of a bond upon maturity in January 2021;

(ii)€28 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans);

(iii)€11 million related to the net change in other debt; and

(iv)€6 million in repayments of lease liabilities.

These cash outflows were partially offset by:

(i)€34 million of proceeds net of repayments related to our revolving securitization programs in the United States.

15

Capital Expenditures

    Capital expenditures are defined as additions to property, plant and equipment (including right-of-use assets recognized in accordance with IFRS 16 — Leases) and intangible assets. Capital expenditures for the three months ended March 31, 2022 and 2021 were €137 million and €155 million, respectively.

    The following table sets forth a breakdown of capital expenditures by category for each of the three months ended March 31, 2022 and 2021:

	For the three months ended March 31,
	2022	2021
	(€ million)
Intangible assets
Externally acquired and internally generated development costs	89	85
Patents, concessions and licenses	1	1
Other intangible assets	1	1
Total intangible assets	91	87
Property, plant and equipment
Industrial buildings	2	8
Plant, machinery and equipment	9	11
Other assets	8	1
Advances and assets under construction	27	48
Total property, plant and equipment	46	68
Total capital expenditures	137	155

Intangible assets

    Our total capital expenditures in intangible assets were €91 million for the three months ended March 31, 2022 (€87 million for the three months ended March 31, 2021).

The most significant investments relate to externally acquired and internally generated development costs. In particular, we make such investments to support the development of our current and future product offering. The capitalized development costs primarily include materials and personnel costs relating to engineering, design and development activities focused on content enhancement of existing cars and new models, including to broaden our product range and our ongoing investments in hybrid and electric technology and the development of components, which are necessary to provide continuing performance upgrades to our customers.

    For the three months ended March 31, 2022 we invested €89 million in externally acquired and internally generated development costs, of which €66million related to the development of models to be launched in future years and €23 million primarily related to the development of our current product portfolio and components.

    For the three months ended March 31, 2021 we invested €85 million in externally acquired and internally generated development costs, of which €66million related to the development of models to be launched in future years and €19 million primarily related to the development of our current product portfolio and components.

16

Property, plant and equipment

    Our total capital expenditures in property, plant and equipment for the three months ended March 31, 2022 and 2021 were €46 million and €68 million, respectively.

    Our most significant investments generally relate to plant, machinery and equipment, which amounted to €9 million and €11 million for the three months ended March 31, 2022 and 2021, respectively, as well as advances and assets under construction, which amounted to €27 million and €48 million for the three months ended March 31, 2022 and 2021, respectively. Our main investments primarily related to industrial tools needed for the production of cars and investments in car production lines (including those for models to be launched in future years), as well as investments related to our personalization programs and engine assembly lines. Investments in advances and assets under construction and industrial buildings for the periods presented reflect our focus on the hybridization and broadening of our product range and supporting future model launches, including our acquisition of tracts of land adjacent to our facilities in Maranello as part of our expansion plans, which amounted to €1 million for the three months ended March 31, 2022 and €7 million for the three months ended March 31, 2021 (cumulative acquisitions of land since the start of 2019 to March 31, 2022 amounted to €118 million).

    At March 31, 2022, the Group had contractual commitments for the purchase of property, plant and equipment amounting to €81 million (€74 million at December 31, 2021).

17

Non-GAAP Financial Measures

    We monitor and evaluate our operating and financial performance using several non-GAAP financial measures including: Net Debt, Net Industrial Debt, Free Cash Flow and Free Cash Flow from Industrial Activities, EBITDA, Adjusted EBITDA, Adjusted EBIT, Adjusted Net Profit, Adjusted Basic and Diluted Earnings per Common Share, as well as a number of financial metrics measured on a constant currency basis. We believe that these non-GAAP financial measures provide useful and relevant information to management and investors regarding our performance and improve our ability to assess our financial performance and financial position. They also provide us with comparable measures that facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions. While similar measures are widely used in the industry in which we operate, the financial measures we use may not be comparable to other similarly titled measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.

Net Debt and Net Industrial Debt

Due to different sources of cash flows used for the repayment of debt between industrial activities and financial services activities, and the different business structure and leverage implications, Net Industrial Debt, together with Net Debt, are the primary measures used by us to analyze our capital structure and financial leverage. We believe the presentation of Net Industrial Debt aids management and investors in their analysis of the Group’s financial position and financial performance and to compare the Group’s financial position and financial performance with that of other companies. Net Industrial Debt is defined as total debt less cash and cash equivalents (Net Debt), further adjusted to exclude the debt and cash and cash equivalents related to our financial services activities (Net Debt of Financial Services Activities).

The following table sets forth a reconciliation of Net Debt and Net Industrial Debt at March 31, 2022 and December 31, 2021.

	At March 31, 2022	At December 31, 2021
	(€ million)
Cash and cash equivalents	1,494	1,344
Total liquidity	1,494	1,344
Bonds and notes	(1,485)	(1,487)
Asset-backed financing (Securitizations)	(939)	(900)
Lease liabilities	(59)	(56)
Borrowings from banks and other financial institutions	(135)	(154)
Other debt	(37)	(33)
Total debt	(2,655)	(2,630)
Net Debt (A)	(1,161)	(1,286)
Net Debt of Financial Services Activities (B)	(1,025)	(989)
Net Industrial Debt (A) - (B)	(136)	(297)

    The increase in the Net Debt of Financial Services Activities (as defined above) of €36 million, from €989 million at December 31, 2021 to €1,025 million at March 31, 2022, relates primarily to the increase in asset-backed financing (securitizations) of the receivables generated by our financial services activities in the United States. Such receivables grew by €47 million, from €1,144 million at December 31, 2021 to €1,191 million at March 31, 2022.

18

The following table presents our receivables from financing activities and our Net Debt of Financial Services Activities at March 31, 2022 and December 31, 2021:

	At March 31, 2022	At December 31, 2021
	(€ million)
Receivables from financing activities	1,191	1,144
Net Debt of Financial Services Activities	(1,025)	(989)

For further details of our receivables from financing activities and our asset-backed financing (securitizations), see Note 18 “Current Receivables and Other Current Assets” and Note 23 “Debt” to the Interim Condensed Consolidated Financial Statements included elsewhere in this document.

Cash and cash equivalents

    Cash and cash equivalents amounted to €1,494 million at March 31, 2022 compared to €1,344 million at December 31, 2021.

    Approximately 84 percent of our cash and cash equivalents were denominated in Euro at March 31, 2022 (approximately 85 percent at December 31, 2021). Our cash and cash equivalents denominated in currencies other than the Euro are available mostly to Ferrari S.p.A. and certain subsidiaries which operate in areas other than Europe. Cash held in such countries may be subject to transfer restrictions depending on the jurisdictions in which these subsidiaries operate. In particular, cash held in China (including in foreign currencies), which amounted to €82 million at March 31, 2022 (€90 million at December 31, 2021), is subject to certain repatriation restrictions and may only be repatriated as a repayment of payables or debt, or as dividends or capital distributions. We do not currently believe that such transfer restrictions have an adverse impact on our ability to meet our liquidity requirements.

    The following table sets forth an analysis of the currencies in which our cash and cash equivalents were denominated at the dates presented.

	At March 31, 2022	At December 31, 2021
	(€ million)
Euro	1,258	1,144
U.S. Dollar	96	68
Chinese Yuan	80	88
Japanese Yen	15	20
Other currencies	45	24
Total	1,494	1,344

    Cash collected from the settlement of receivables under securitization programs is subject to certain restrictions regarding its use and is primarily applied to repay principal and interest of the related funding. Such cash amounted to €51 million at March 31, 2022 (€48 million at December 31, 2021).

Total available liquidity

    Total available liquidity (defined as cash and cash equivalents plus undrawn committed credit lines) at March 31, 2022 was €2,162 million (€2,020 million at December 31, 2021).

    The following table summarizes our total available liquidity:

	At March 31, 2022	At December 31, 2021
	(€ million)
Cash and cash equivalents	1,494	1,344
Undrawn committed credit lines	668	676
Total available liquidity	2,162	2,020

19

    The undrawn committed credit lines at March 31, 2022 and December 31, 2021 relate to revolving credit facilities. For further details, see Note 23 “Debt” in the Interim Condensed Consolidated Financial Statements included elsewhere in this document.

Free Cash Flow and Free Cash Flow from Industrial Activities

Free Cash Flow and Free Cash Flow from Industrial Activities are two of our primary key performance indicators to measure the Group’s performance. These measures are presented by management to aid investors in their analysis of the Group’s financial performance and to compare the Group’s financial performance with that of other companies. Free Cash Flow is defined as cash flows from operating activities less investments in property, plant and equipment (excluding right-of-use assets recognized during the period in accordance with IFRS 16 — Leases), intangible assets and joint ventures. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted to exclude the operating cash flow from our financial services activities (Free Cash Flow from Financial Services Activities).     

The following table sets forth our Free Cash Flow and Free Cash Flow from Industrial Activities for the three months ended March 31, 2022 and 2021.

	For the three months ended March 31,
	2022	2021
	(€ million)
Cash flows from operating activities	413	274
Investments in property, plant and equipment, intangible assets and joint ventures	(132)	(151)
Free Cash Flow	281	123
Free Cash Flow from Financial Services Activities	(16)	(24)
Free Cash Flow from Industrial Activities	297	147

    Free Cash Flow for the three months ended March 31, 2022 was €281 million, an increase of €158 million compared to €123 million for the three months ended March 31, 2021. For an explanation of the drivers in Free Cash Flow see “Cash Flows” above.

    Free Cash Flow from Industrial Activities for the three months ended March 31, 2022 was €297 million, an increase of €150 million compared to €147 million for the three months ended March 31, 2021. The increase in Free Cash Flow from Industrial Activities was primarily attributable to (i) an increase in EBITDA, (ii) a positive change in cash flows from other operating assets and liabilities driven by the collection of advances from the Daytona SP3 and the 812 Competizione A, as well as by Formula 1 activities and (iii) lower capital expenditures.

EBITDA and Adjusted EBITDA

    EBITDA is defined as net profit before income tax expense, net financial expenses and amortization and depreciation. Adjusted EBITDA is defined as EBITDA as adjusted for certain income and costs, which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities. EBITDA is presented by management to aid investors in their analysis of the performance of the Group and to assist investors in the comparison of the Group’s performance with that of other companies. Adjusted EBITDA is provided in order to present how the underlying business has performed prior to the impact of the adjusting items, which may obscure the underlying performance and impair comparability of results between periods.

    The following table sets forth the calculation of EBITDA and Adjusted EBITDA for the three months ended March 31, 2022 and 2021, and provides a reconciliation of these non-GAAP measures to net profit. There were no adjustments impacting Adjusted EBITDA for the periods presented.

20

	For the three months ended March 31,
	2022	2021
	(€ million)
Net profit	239	206
Income tax expense	60	51
Net financial expenses	8	9
EBIT	307	266
Amortization and depreciation	116	110
EBITDA and Adjusted EBITDA	423	376

Adjusted EBIT

    Adjusted EBIT represents EBIT as adjusted for certain income and costs which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities. We provide Adjusted EBIT in order to present how the underlying business has performed prior to the impact of any adjusting items, which may obscure the underlying performance and impair comparability of results between the periods.

    The following table sets forth the calculation of Adjusted EBIT for the three months ended March 31, 2022 and 2021. There were no adjustments impacting Adjusted EBIT for the periods presented.

	For the three months ended March 31,
	2022	2021
	(€ million)
EBIT and Adjusted EBIT	307	266

Adjusted Net Profit

    Adjusted Net Profit represents net profit as adjusted for certain income and costs (net of tax effects) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities. We provide Adjusted Net Profit in order to present how the underlying business has performed prior to the impact of any adjusting items, which may obscure the underlying performance and impair comparability of results between the periods.

    The following table sets forth the calculation of Adjusted Net Profit for the three months ended March 31, 2022 and 2021. There were no adjustments impacting Adjusted Net Profit for the periods presented.

	For the three months ended March 31,
	2022	2021
	(€ million)
Net profit and Adjusted Net Profit	239	206

Adjusted Basic and Diluted Earnings per Common Share

Adjusted Basic and Diluted Earnings per Common Share represents earnings per share, as adjusted for certain income and costs (net of tax effects) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities. We provide Adjusted Basic and Diluted Earnings per Common Share in order to present how the underlying business has performed prior to the impact of any adjusting items, which may obscure the underlying performance and impair comparability of results between the periods.

    The following table sets forth the calculation of Adjusted Basic and Diluted Earnings per Common Share for the three months ended March 31, 2022 and 2021. There were no adjustments impacting Adjusted Basic and Diluted Earnings per Common Share for the periods presented.

21

		For the three months ended March 31,
		2022	2021
Net profit attributable to owners of the Company	€ million	238	205
Adjusted net profit attributable to owners of the Company	€ million	238	205
Weighted average number of common shares for basic earnings per common share	thousand	183,531	184,787
Adjusted basic earnings per common share	€	1.30	1.11
Weighted average number of common shares(1) for diluted earnings per common share	thousand	183,780	185,087
Adjusted diluted earnings per common share	€	1.29	1.11

(1)    For the three months ended March 31, 2022 and 2021 the weighted average number of common shares for diluted earnings per common share was increased to take into consideration the theoretical effect of the potential common shares that would be issued under the Group’s equity incentive plans (assuming 100 percent of the target awards vested).

See Note 13 “Earnings per Share” to the Interim Condensed Consolidated Financial Statements, included elsewhere in this document, for the calculation of the basic and diluted earnings per common share.

Constant Currency Information

The “Results of Operations” discussion below includes information about our net revenues on a constant currency basis, which excludes the effects of foreign currency translation from our subsidiaries with functional currencies other than Euro, as well as the effects of foreign currency transaction impact and foreign currency hedging. We use this information to assess how the underlying revenues changed independent of fluctuations in foreign currency exchange rates and hedging. We calculate constant currency by (i) applying the prior-period average foreign currency exchange rates to translate current period revenues of foreign subsidiaries expressed in local functional currency other than Euro, (ii) applying the prior-period average foreign currency exchange rates to current period revenues originated in a currency other than the functional currency of the applicable entity, and (iii) eliminating the variances of any foreign currency hedging (see Note 5 “Other Information” to the Interim Condensed Consolidated Financial Statements, included in this Interim Report, for information on the foreign currency exchange rates applied). Although we do not believe that these measures are a substitute for GAAP measures, we do believe that revenues excluding the impact of currency fluctuations and the impacts of hedging provide additional useful information to investors regarding the operating performance on a local currency basis.

22

Risk Factors

We face a variety of risks and uncertainties in our business. For a description of these risks and uncertainties please see “Risk Factors” in the Group’s Annual Report and Form 20-F for the year ended December 31, 2021 filed with the AFM and the SEC on February 25, 2022. All such risks factors should be read in conjunction with this Interim Report. Additional risks and uncertainties that we are unaware of, or that we currently believe to be immaterial, may also become important factors that affect us.

The escalating geopolitical tensions from the ongoing conflict in Ukraine and the resulting sanctions, restrictions, prohibitions and export controls imposed on Russia, Belarus and the Ukrainian regions of Donetsk and Luhansk by various governments and supranational organizations around the world have impacted global supply chains and created inflationary pressures on the price of raw materials, energy and commodities. If the situation continues or escalates and new measures or countermeasures are implemented, these adverse impacts could become more prevalent and negatively impact our supply chain and the availability and price of raw materials, energy and commodities. For further information relating to these risks see also “We depend on our suppliers, many of which are single source suppliers; and if these suppliers fail to deliver necessary raw materials, systems, components and parts of appropriate quality in a timely manner, our operations may be disrupted.” and “Global economic conditions, pandemics and macro events may adversely affect us.” within the section “Risk Factors” in the Group’s Annual Report and Form 20-F for the year ended December 31, 2021 filed with the AFM and the SEC on February 25, 2022

23

Outlook

2022 guidance, subject to trading conditions unaffected by Covid-19 pandemic restrictions and based on the following assumptions:

•Carefully leveraging strong demand

•Richer model mix being more than offset by the negative impact from the Ferrari Monza SP1 and SP2 phase out

•Ferrari Daytona SP3 and Ferrari Purosangue will commence production in 2022 with deliveries starting in 2023

•Formula 1 revenues reflecting more diversified but lower sponsorship, partially offset by better prior year ranking

•Increasing depreciation and amortization in line with the start of production of new models

•Industrial free cash flow generation sustained by Daytona SP3 advances collection

•Disciplined capital expenditures to fuel long term development

(€B, unless otherwise stated)	2020A	2021A	2022 GUIDANCE
NET REVENUES	3.5	4.3	∼4.8
ADJ. EBITDA (margin %)	1.14 33.0%	1.53 35.9%	1.65-1.70 34.5%-35.5%
ADJ. EBIT (margin %)	0.72 20.7%	1.08 25.2%	1.10-1.15 23%-24%
ADJ. DILUTED EPS (€)	2.88(1)	4.50	4.55-4.75(2)
INDUSTRIAL FCF	0.17	0.64	≥0.60

(1)    Net of a tax benefit, with no cash impact on 2020, from the one-off partial step-up of the trademark’s book value in accordance with the Italian tax regulations.

(2)    Calculating using the weighted average diluted number of common shares for the year ended December 31, 2021 (184,772 thousand).

24

FERRARI N.V.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AT AND FOR THE THREE MONTHS ENDED MARCH 31, 2022

CONTENTS

	Page
Interim Consolidated Income Statement	F-1
Interim Consolidated Statement of Comprehensive Income	F-2
Interim Consolidated Statement of Financial Position	F-3
Interim Consolidated Statement of Cash Flows	F-4
Interim Consolidated Statement of Changes in Equity	F-5
Notes to the Interim Condensed Consolidated Financial Statements	F-6

FERRARI N.V.

INTERIM CONSOLIDATED INCOME STATEMENT

for the three months ended March 31,2022 and 2021

(Unaudited)

		For the three months ended March 31,
	Note	2022	2021
		(€ thousand)
Net revenues	6	1,185,982	1,011,280
Cost of sales	7	588,202	483,464
Selling, general and administrative costs	8	89,964	71,610
Research and development costs	9	197,465	188,870
Other expenses/(income), net	10	4,984	2,462
Result from investments		1,880	1,436
EBIT		307,247	266,310
Net financial expenses	11	8,005	9,227
Profit before taxes		299,242	257,083
Income tax expense	12	59,849	51,416
Net profit		239,393	205,667
Net profit attributable to:
Owners of the parent		237,970	204,923
Non-controlling interests		1,423	744
Basic earnings per common share (in €)	13	1.30	1.11
Diluted earnings per common share (in €)	13	1.29	1.11

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements.

F-1

FERRARI N.V.

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three months ended March 31,2022 and 2021

(Unaudited)

		For the three months ended March 31,
	Note	2022	2021
		(€ thousand)
Net profit		239,393	205,667
Gains/(Losses) on cash flow hedging instruments	20	20,610	(40,172)
Exchange differences on translating foreign operations	20	3,789	7,357
Related tax impact	20	(5,296)	11,224
Total other comprehensive income/(loss), net of tax (all of which may be reclassified to the consolidated income statement in subsequent periods)	20	19,103	(21,591)
Total comprehensive income		258,496	184,076
Total comprehensive income attributable to:
Owners of the parent		256,963	183,144
Non-controlling interests		1,533	932

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements.

F-2

FERRARI N.V.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at March 31, 2022 and at December 31, 2021

(Unaudited)

	Note	At March 31, 2022	At December 31, 2021
		(€ thousand)
Assets
Goodwill		785,182	785,182
Intangible assets	14	1,171,217	1,138,173
Property, plant and equipment	15	1,340,431	1,353,165
Investments and other financial assets	16	57,513	54,509
Deferred tax assets		193,397	168,757
Total non-current assets		3,547,740	3,499,786
Inventories	17	574,438	540,575
Trade receivables	18	289,079	185,000
Receivables from financing activities	18	1,190,615	1,143,968
Current tax receivables	18	13,240	14,306
Other current assets	18	145,636	122,224
Current financial assets	19	42,036	13,500
Cash and cash equivalents		1,493,636	1,344,146
Total current assets		3,748,680	3,363,719
Total assets		7,296,420	6,863,505
Equity and liabilities
Equity attributable to owners of the parent		2,332,059	2,205,898
Non-controlling interests		4,785	5,518
Total equity	20	2,336,844	2,211,416
Employee benefits		91,530	101,200
Provisions	22	155,748	150,868
Deferred tax liabilities		103,597	95,973
Debt	23	2,654,855	2,630,011
Other liabilities	24	936,430	726,775
Other financial liabilities	19	37,340	36,520
Trade payables	25	797,358	797,832
Current tax payables		182,718	112,910
Total equity and liabilities		7,296,420	6,863,505

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements.

F-3

FERRARI N.V.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

for the three months ended March 31, 2022 and 2021

(Unaudited)

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Cash and cash equivalents at beginning of the period	1,344,146	1,362,406
Cash flows from operating activities:
Profit before taxes	299,242	257,083
Amortization and depreciation	115,502	109,600
Provision accruals	14,368	5,690
Result from investments	(1,880)	(1,436)
Net finance costs	8,005	9,227
Other non-cash expenses, net	8,506	11,622
Change in inventories	(37,233)	(25,948)
Change in trade receivables	(89,291)	(63,805)
Change in trade payables	(3,889)	(30,466)
Change in receivables from financing activities	(22,648)	(31,415)
Change in other operating assets and liabilities	142,343	48,583
Finance income received	591	298
Finance costs paid	(11,629)	(13,101)
Income tax paid	(9,462)	(1,919)
Total cash flows from operating activities	412,525	274,013
Cash flows used in investing activities:
Investments in property, plant and equipment	(39,464)	(63,654)
Investments in intangible assets	(90,947)	(86,813)
Investments in joint ventures	(1,367)	—
Proceeds from the sale of property, plant and equipment and intangible assets	801	775
Total cash flows used in investing activities	(130,977)	(149,692)
Cash flows used in financing activities:
Net change in borrowings from banks and other financial institutions	(21,091)	—
Net changes of lease liabilities	(3,430)	(5,689)
Proceeds from securitizations, net of repayments	20,224	34,114
Net change in other debt	4,613	(11,365)
Repayment of bonds and notes	—	(500,000)
Share repurchases	(135,078)	(28,116)
Total cash flows used in financing activities	(134,762)	(511,056)
Translation exchange differences	2,704	4,638
Total change in cash and cash equivalents	149,490	(382,097)
Cash and cash equivalents at end of the period	1,493,636	980,309

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements.

F-4

FERRARI N.V.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the three months ended March 31, 2022 and 2021

(Unaudited)

	Share capital	Retained earnings and other reserves	Cash flow hedge reserve	Currency translation differences	Remeasurement of defined benefit plans	Equity attributable to owners of the parent	Non-controlling interests	Total
	(€ thousand)
At December 31, 2020	2,573	1,739,380	24,164	28,774	(9,705)	1,785,186	4,018	1,789,204
Net profit	—	204,923	—	—	—	204,923	744	205,667
Other comprehensive (loss)/income	—	—	(28,948)	7,169	—	(21,779)	188	(21,591)
Share-based compensation	—	3,259	—	—	—	3,259	—	3,259
Share repurchases	—	(28,116)	—	—	—	(28,116)	—	(28,116)
At March 31, 2021	2,573	1,919,446	(4,784)	35,943	(9,705)	1,943,473	4,950	1,948,423
	Share capital	Retained earnings and other reserves	Cash flow hedge reserve	Currency translation differences	Remeasurement of defined benefit plans	Equity attributable to owners of the parent	Non-controlling interests	Total
	(€ thousand)
At December 31, 2021	2,573	2,192,453	(22,006)	42,518	(9,640)	2,205,898	5,518	2,211,416
Net profit	—	237,970	—	—	—	237,970	1,423	239,393
Other comprehensive income	—	—	15,314	3,679	—	18,993	110	19,103
Dividends	—	—	—	—	—	—	(2,266)	(2,266)
Share-based compensation	—	4,276	—	—	—	4,276	—	4,276
Share repurchases	—	(135,078)	—	—	—	(135,078)	—	(135,078)
At March 31, 2022	2,573	2,299,621	(6,692)	46,197	(9,640)	2,332,059	4,785	2,336,844

The accompanying notes are an integral part of the Interim Condensed Consolidated Financial Statements.

F-5

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BACKGROUND AND BASIS OF PRESENTATION

Background

    Ferrari is among the world’s leading luxury brands. The activities of Ferrari N.V. (herein referred to as “Ferrari” or the “Company” and together with its subsidiaries the “Group”) and its subsidiaries are focused on the design, engineering, production and sale of luxury performance sports cars. The cars are designed, engineered and produced in Maranello and Modena, Italy and sold in more than 60 markets worldwide through a network of 172 authorized dealers operating 191 points of sale. The Ferrari brand is licensed to a selected number of producers and retailers of luxury and lifestyle goods, with Ferrari branded merchandise also sold through a network of 16 Ferrari-owned stores and 14 franchised stores (including 12 Ferrari Store Junior), as well as on Ferrari’s website. To facilitate the sale of new and pre-owned cars, the Group provides various forms of financing to clients and dealers, including through cooperation and other agreements with certain financial institutions. Ferrari also participates in the Formula 1 World Championship through Scuderia Ferrari. The activities of Scuderia Ferrari are a core element of Ferrari marketing and promotional activities and an important source of innovation to support the technological advancement of Ferrari range models.

2. AUTHORIZATION OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

    These Interim Condensed Consolidated Financial Statements of Ferrari N.V. were authorized for issuance on May 4, 2022, and have been prepared in accordance with IAS 34 — Interim Financial Reporting. The Interim Condensed Consolidated Financial Statements should be read in conjunction with the Group’s consolidated financial statements at and for the year ended December 31, 2021 (the “Consolidated Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and IFRS as endorsed by the European Union. There are no material effects on these Interim Condensed Consolidated Financial Statements resulting from differences between IFRS as issued by the IASB and IFRS as endorsed by the European Union. The designation IFRS also includes International Accounting Standards (“IAS”) as well as the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The accounting policies adopted are consistent with those used at December 31, 2021, except as described in the section “New standards and amendments effective from January 1, 2022”.

3. BASIS OF PREPARATION FOR INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    The preparation of the Interim Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as well as disclosures of contingent liabilities. If in the future such estimates and assumptions, which are based on management’s best judgment at the date of these Interim Condensed Consolidated Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. Reference should be made to the section “Use of estimates” in the Consolidated Financial Statements for a detailed description of the more significant valuation procedures used by the Group.

    Moreover, in accordance with IAS 34, certain valuation procedures, in particular those of a more complex nature regarding matters such as any impairment of non-current assets, are only carried out in full during the preparation of the annual consolidated financial statements, when all the related information necessary is available, other than in the event that there are indications of impairment, in which case an immediate assessment is required. Similarly, the actuarial valuations that are required for the determination of employee benefit provisions are also usually carried out during the preparation of the annual consolidated financial statements, except in the event of significant market fluctuations or significant plan amendments, curtailments or settlements.

F-6

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

New standards and amendments effective from January 1, 2022

The following new standards and amendments effective from January 1, 2022 were adopted by the Group.

In May 2020 the IASB issued amendments to IFRS 3 — Business combinations to update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. There was no effect from the adoption of these amendments.

In May 2020 the IASB issued amendments toIAS 16 — Property, Plant and Equipment. The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company should recognize such sales proceeds and the related cost in the income statement. There was no effect from the adoption of these amendments.

In May 2020 the IASB issued amendments to IAS 37 — Provisions, Contingent Liabilities and Contingent Assets, which specify which costs a company includes when assessing whether a contract will be loss-making. There was no effect from the adoption of these amendments.

In May 2020 the IASB issued Annual Improvements to IFRSs 2018 - 2020 Cycle. The improvements have amended four standards: i) IFRS 1 — First-time Adoption of International Financial Reporting Standards in relation to allowing a subsidiary to measure cumulative translation differences using amounts reported by its parent, ii) IFRS 9 — Financial Instruments in relation to which fees an entity includes when applying the ‘10 percent’ test for derecognition of financial liabilities, iii) IAS 41 — Agriculture in relation to the exclusion of taxation cash flows when measuring the fair value of a biological asset, and iv) IFRS 16 — Leases in relation to an illustrative example of reimbursement for leasehold improvements. There was no effect from the adoption of these amendments.

New standards, amendments and interpretations not yet effective

    The standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) that will have mandatory application in 2023 or subsequent years are listed below:

In May 2017 the IASB issued IFRS 17 — Insurance Contracts, which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amendments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their financial performance. The new standard and amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments.

In January 2020 the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments.

In February 2021 the IASB issued amendments to IAS 1 — Presentation of Financial Statementsand IFRS Practice Statement 2: Disclosure of Accounting policies which require companies to disclose their material accounting policy information rather than their significant accounting policies and provide guidance on how to apply the concept of materiality to accounting policy disclosures. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments.

In February 2021 the IASB issued amendments to IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates which clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments.

In May 2021 the IASB issued amendments to IAS 12 — Income Taxes: Deferred Tax related to Assets and Liabilities Arising From a Single Transaction that clarify how companies account for deferred tax on transactions such as

F-7

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

leases and decommissioning obligations. These amendments are effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of these amendments.

In December 2021 the IASB issued an amendments to IFRS 17 — Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information, which provides a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The amendment is effective on or after January 1, 2023. The Group does not expect any material impact from the adoption of this amendment

Scope of consolidation

    There were no changes in the scope of consolidation for the periods presented in this Interim Report.

4. FINANCIAL RISK FACTORS

The Group is exposed to various operational financial risks, including financial market risk (relating mainly to foreign currency exchange rates and, to a lesser extent, interest rates and commodity prices), credit risk and liquidity risk. The Interim Condensed Consolidated Financial Statements do not include all of the information and disclosures on financial risk management required in the annual consolidated financial statements. For a detailed description of the financial risk factors and financial risk management of the Group, reference should be made to Note 30 “Qualitative and Quantitative Information on Financial Risks” of the Consolidated Financial Statements at and for the year ended December 31, 2021.

5. OTHER INFORMATION

    The principal foreign currency exchange rates used to translate other currencies into Euro were as follows:

	2022		2021
	Average for the three months ended March 31,	At March 31,	Average for the three months ended March 31,	At March 31,	At December 31,
U.S. Dollar	1.1217	1.1101	1.2048	1.1725	1.1326
Pound Sterling	0.8364	0.8460	0.8739	0.8521	0.8403
Swiss Franc	1.0364	1.0267	1.0913	1.1070	1.0331
Japanese Yen	130.4636	135.1700	127.8057	129.9100	130.3800
Chinese Yuan	7.1212	7.0403	7.8080	7.6812	7.1947
Australian Dollar	1.5491	1.4829	1.5597	1.5412	1.5615
Canadian Dollar	1.4206	1.3896	1.5258	1.4782	1.4393
Singapore Dollar	1.5169	1.5028	1.6054	1.5768	1.5279
Hong Kong Dollar	8.7551	8.6918	9.3465	9.1153	8.8333

F-8

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6. NET REVENUES

    Net revenues are as follows:

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Revenues from:
Cars and spare parts	1,012,177	855,565
Engines	36,971	45,004
Sponsorship, commercial and brand	108,564	90,806
Other	28,270	19,905
Total net revenues	1,185,982	1,011,280

    Other net revenues primarily relate to financial services activities, management of the Mugello racetrack and other sports-related activities.

Interest and other financial income from financial services activities included within net revenues for the three months ended March 31, 2022 and 2021 amounted to €14,216 thousand and €13,872 thousand, respectively.

7. COST OF SALES

    Cost of sales for the three months ended March 31, 2022 and 2021 amounted to €588,202 thousand and €483,464 thousand, respectively, consisting mainly of the cost of materials, components and labor related to the manufacturing and distribution of cars and spare parts and, to a lesser extent, engines sold to Maserati and engines rented to other Formula 1 racing teams. The remaining costs mainly include depreciation, insurance and transportation costs, as well as warranty and product-related costs, which are estimated and recorded at the time of shipment.

Interest and other financial expenses from financial services activities included within cost of sales for the three months ended March 31, 2022 and 2021 amounted to €3,112 thousand and €5,890 thousand, respectively.

8. SELLING, GENERAL AND ADMINISTRATIVE COSTS

    Selling costs for the three months ended March 31, 2022 and 2021 amounted to €47,873 thousand and €35,705 thousand, respectively, consisting mainly of costs for sales personnel, marketing and events, and retail stores. Costs for marketing and events primarily relate to trade shows and media and client events for the launch of new models, including the use of digital solutions, as well as sponsorship and indirect marketing costs incurred through the Formula 1 racing team, Scuderia Ferrari.

    General and administrative costs for the three months ended March 31, 2022 and 2021 amounted to €42,091 thousand and €35,905 thousand, respectively, consisting mainly of administration and other general expenses, including for personnel, that are not directly attributable to manufacturing, sales or research and development activities.

F-9

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

9. RESEARCH AND DEVELOPMENT COSTS

    Research and development costs are as follows:

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Research and development costs expensed during the period	144,160	140,913
Amortization of capitalized development costs	53,305	47,957
Total research and development costs	197,465	188,870

    Research and development costs expensed during the period primarily relate to Formula 1 activities, as well as research and development activities to support the innovation of our product range and components and, in particular, in relation to hybrid and electric technology.

Research and development costs for the three months ended March 31, 2022 and 2021 are recognized net of technology-related government incentives.

10. OTHER EXPENSES/(INCOME), NET

    Other expenses, net for the three months ended March 31, 2022 included other expenses of €6,823 thousand (€3,130thousand for the three months ended March 31, 2021), mainly related to indirect taxes, provisions, and other miscellaneous expenses, partially offset by other income of €1,839 thousand (€668thousand for the three months ended March 31, 2021), mainly related to rental income, gains on the disposal of property, plant and equipment and other miscellaneous income.

11. NET FINANCIAL EXPENSES

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Financial income
Related to:
Industrial activities (A)	17,823	9,302
Financial services activities (reported within net revenues)	14,216	13,872
Financial expenses and expenses from derivative financial instruments and foreign currency exchange rate differences
Related to:
Industrial activities (B)	(25,828)	(18,529)
Financial services activities (reported within cost of sales)	(3,112)	(5,890)
Net financial expenses relating to industrial activities (A - B)	(8,005)	(9,227)

    Net financial expenses primarily relate to interest expenses on debt and net foreign exchange impact, including the net costs of hedging.

F- 10

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

12. INCOME TAX EXPENSE

    Income tax expense is as follows:

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Current tax expense	81,569	50,185
Deferred tax (benefit)/expense	(21,720)	1,231
Total income tax expense	59,849	51,416

    Income tax expense amounted to €59,849 thousand for the three months ended March 31, 2022 compared to €51,416 thousand for the three months ended March 31, 2021. The change in deferred tax (benefit)/expense was primarily attributable to timing differences related to intercompany profit on inventory.

Income taxes for the three months ended March 31, 2022 and 2021 benefited from the application of the Patent Box tax regime.

The effective tax rate was 20.0 percent for the three months ended March 31, 2022 and 2021.

IRAP (current and deferred) for the three months ended March 31, 2022 and 2021 amounted to €11,599 thousand and €8,107 thousand, respectively. IRAP is only applicable to Italian entities and is calculated on a measure of income defined by the Italian Civil Code as the difference between operating revenues and costs, before financial income and expense, and in particular before the cost of fixed-term employees, credit losses and any interest included in lease payments. IRAP is calculated using financial information prepared under Italian accounting standards. IRAP is applied on the tax base at 3.9 percent for each of the three months ended March 31, 2022 and 2021, respectively.

    Deferred tax assets and liabilities of the individual consolidated companies are offset within the interim consolidated statement of financial position when a legally enforceable right to offset exists.

The Group’s Italian entities participate in a group Italian tax consolidation under Ferrari N.V.

F- 11

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

13. EARNINGS PER SHARE

Basic earnings per share

    Basic earnings per share is calculated by dividing the profit attributable to equity holders of Ferrari by the weighted average number of common shares issued and outstanding during the period. The following table provides the amounts used in the calculation of basic earnings per share for the periods presented:

		For the three months ended March 31,
		2022	2021
Profit attributable to owners of the parent	€ thousand	237,970	204,923
Weighted average number of common shares	thousand	183,531	184,787
Basic earnings per share	€	1.30	1.11

    Diluted earnings per share

    For the three months ended March 31, 2022 and 2021, the weighted average number of shares for diluted earnings per share was increased to take into consideration the dilutive effects of the potential common shares relating to the Group’s equity incentive plans (assuming 100 percent of the target awards vested). See Note 21 for additional details on the equity incentive plans.

    The following table provides the amounts used in the calculation of diluted earnings per share for the three months ended March 31, 2022 and 2021:

		For the three months ended March 31,
		2022	2021
Profit attributable to owners of the parent	€ thousand	237,970	204,923
Weighted average number of common shares for diluted earnings per share	thousand	183,780	185,087
Diluted earnings per share	€	1.29	1.11

14. INTANGIBLE ASSETS

	Balance at December 31, 2021	Additions	Disposals	Amortization	Translation differences and other	Balance at March 31, 2022
	(€ thousand)
Intangible assets	1,138,173	90,947	(28)	(57,888)	13	1,171,217

Additions primarily related to externally acquired and internally generated development costs for new and existing models.

F- 12

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

15. PROPERTY, PLANT AND EQUIPMENT

	Balance at December 31, 2021	Additions	Disposals	Depreciation	Translation differences and other	Balance at March 31, 2022
	(€ thousand)
Property, plant and equipment	1,353,165	45,937	(1,650)	(57,614)	593	1,340,431

    Additions mainly related to advances and assets under construction, including tracts of land adjacent to our facilities in Maranello as part of our expansion plans, as well as plant, machinery and equipment, primarily related to car production and engine assembly lines (including those for models to be launched in future years), industrial tools used for the production of cars and personalization programs.

At March 31, 2022 property plant and equipment included €55,911 thousand of right-of-use assets (€53,758 thousand at December 31, 2021). The following table summarizes the changes in the carrying amount of right-of-use assets for the three months ended March 31, 2022:

	Balance at December 31, 2021	Additions	Disposals	Depreciation	Translation differences and other	Balance at March 31, 2022
	(€ thousand)
Right-of-use assets	53,758	6,473	(622)	(3,767)	69	55,911

For the three months ended March 31, 2022 depreciation of right-of use assets amounted to €3,767 thousand and interest expense on lease liabilities amounted to €222 thousand (€3,887 thousand and €212 thousand respectively for the three months ended March 31, 2021).

At March 31, 2022 the Group had contractual commitments for the purchase of property, plant and equipment amounting to €81,220 thousand (73,681 thousand at December 31, 2021).

16. INVESTMENTS AND OTHER FINANCIAL ASSETS

The composition of investments and other financial assets is as follows:

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Investments accounted for using the equity method	44,837	42,927
Other securities and financial assets	12,676	11,582
Total investments and other financial assets	57,513	54,509

Investments accounted for using the equity method

    Investments accounted for using the equity method relate to the Group’s investment in Ferrari Financial Services GmbH, a German entity that offers retail client financing in certain markets in EMEA (primarily the UK, Germany and Switzerland), and, to a lesser extent, to FS China Limited, a new joint venture formed in China in 2021 to manage certain brand activities in the local market.

F- 13

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Changes in the carrying amount of the investment during the period were as follows:

	(€ thousand)
Balance at January 1, 2022	42,927
Proportionate share of net profit for the period from January 1, 2022 to March 31, 2022	1,880
Other changes	30
Balance at March 31, 2022	44,837

Other securities and financial assets

    Other securities and financial assets primarily include Series C Liberty Formula One shares (the “Liberty Media Shares”) of Liberty Media Corporation (the group responsible for the promotion of the Formula 1 World Championship), which are measured at fair value and amounted to €11,667 thousand at March 31, 2022 (€10,559 thousand at December 31, 2021).

17. INVENTORIES

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Raw materials	105,399	99,382
Semi-finished goods	108,810	121,201
Finished goods	360,229	319,992
Total inventories	574,438	540,575

The amount of inventory write-downs recognized as an expense within cost of sales was €4,316 thousand and €4,302 thousand for the three months ended March 31, 2022 and 2021, respectively.

18. CURRENT RECEIVABLES AND OTHER CURRENT ASSETS

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Receivables from financing activities	1,190,615	1,143,968
Trade receivables	289,079	185,000
Current tax receivables	13,240	14,306
Other current assets	145,636	122,224
Total	1,638,570	1,465,498

    Receivables from financing activities

    Receivables from financing activities are as follows:

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Client financing	1,180,569	1,132,979
Dealer financing	10,046	10,989
Total	1,190,615	1,143,968

    Receivables from financing activities relate to the financial services portfolio in the United States and are generally secured on the title of cars or other guarantees.

F- 14

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

19. CURRENT FINANCIAL ASSETS AND OTHER FINANCIAL LIABILITIES

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Financial derivatives	34,787	11,565
Other financial assets	7,249	1,935
Current financial assets	42,036	13,500

    The following table provides the analysis of derivative assets and liabilities at March 31, 2022 and December 31, 2021.

	At March 31, 2022		At December 31, 2021
	Positive fair value	Negative fair value	Positive fair value	Negative fair value
	(€ thousand)
Cash flow hedge:
Foreign currency derivatives	10,941	(36,247)	4,437	(34,973)
Commodities	592	(364)	182	(1,162)
Interest rate caps	20,839	—	6,053	—
Total cash flow hedges	32,372	(36,611)	10,672	(36,135)
Other foreign currency derivatives	2,415	(729)	893	(385)
Derivatives assets/(liabilities)	34,787	(37,340)	11,565	(36,520)

At March 31, 2022 and December 31, 2021, substantially all foreign currency derivatives had a maturity of twelve months or less.

    Foreign currency derivatives that do not meet the requirements to be recognized as cash flow hedges are presented as other foreign currency derivatives. Interest rate caps relate to derivative instruments required as part of certain securitization agreements.

20. EQUITY

Share capital

    At March 31, 2022 and December 31, 2021 the fully paid up share capital of the Company was €2,573 thousand, consisting of 193,923,499 common shares and 63,349,112 special voting shares, all with a nominal value of €0.01. At March 31, 2022, the Company held in treasury 10,647,705common shares and 5,190 special voting shares, while at December 31, 2021 the Company held in treasury 10,080,103 common shares and 4,190 special voting shares. Shares in treasury include shares repurchased under the Group’s share repurchase program, which are recorded based on the transaction trade date. The increase in common shares held in treasury primarily reflects the repurchase of shares by the Company through its share repurchase program, partially offset by shares assigned under the Group’s equity incentive plans. On March 2, 2022, the Company completed the Fifth Tranche of the multi-year share repurchase program. On March 3, 2022, the Company announced the continuation of its already disclosed multi-year share repurchase program with a Sixth Tranche of up to €120 million from March 4, 2022 to no later than June 14, 2022. At March 31, 2022 and December 31, 2021 the Company held in treasury 4.14 percent and 3.92 percent of the total issued share capital of the Company, respectively(1).

_______________________________________

(1)The percentage of shares held in treasury compared to total issued share capital remains substantially the same if calculated considering only common shares held in treasury or if calculated considering common shares and special voting shares held in treasury.

F- 15

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

    The following table summarizes the changes in the number of outstanding common shares and outstanding special voting shares of the Company for the three months ended March 31, 2022:

	Common Shares	Special Voting Shares	Total
Balance at December 31, 2021	183,843,396	63,344,922	247,188,318
Shares repurchased under share repurchase program(1)	(633,210)	—	(633,210)
Shares assigned under equity incentive plans(2)	65,608	—	65,608
Other changes(3)	—	(1,000)	(1,000)
Balance at March 31, 2022	183,275,794	63,343,922	246,619,716

_______________________________________

(1)Includes shares repurchased under the share repurchase program between January 1, 2022 and March 31, 2022 based on the transaction trade date, for a total consideration of €124,239 thousand, including transaction costs.

(2)On March 16, 2022, 122,125 common shares, which were previously held in treasury, were assigned to participants of the equity incentive plans as a result of the vesting of certain performance share unit and retention restricted share unit awards. On March 16, 2022, the Company purchased 56,517 common shares, for a total consideration of €10,365 thousand, from a group of those employees who were assigned shares in order to cover the individual’s taxable income as is standard practice (Sell to Cover) in an over-the-counter transaction. See Note 21 “Share-Based Compensation” for additional details relating to the Group’s equity incentive plans.

(3)Relates to the deregistration of certain special voting shares under the Company’s special voting shares term and conditions.

Other comprehensive income/(loss)

    The following table presents other comprehensive income/(loss):

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Gains/(Losses) on cash flow hedging instruments arising during the period	6,160	(24,310)
Reclassification of cash flow hedge reserves to the consolidated income statement	14,450	(15,862)
Gains/(Losses) on cash flow hedging instruments	20,610	(40,172)
Exchange differences on translating foreign operations arising during the period	3,789	7,357
Total other comprehensive income/(loss) (all of which may be reclassified to the consolidated income statement in subsequent periods)	24,399	(32,815)
Related tax impact	(5,296)	11,224
Total other comprehensive income/(loss), net of tax	19,103	(21,591)

Gains and losses on cash flow hedging instruments relate to changes in the fair value of derivative financial instruments used for cash flow hedging purposes.

The tax effects relating to other comprehensive income/(loss) are as follows:

	For the three months ended March 31,
	2022			2021
	Pre-tax balance	Tax impact	Net balance	Pre-tax balance	Tax impact	Net balance
	(€ thousand)
Gains/(Losses) on cash flow hedging instruments	20,610	(5,296)	15,314	(40,172)	11,224	(28,948)
Exchange gains on translating foreign operations	3,789	—	3,789	7,357	—	7,357
Total other comprehensive income/(loss)	24,399	(5,296)	19,103	(32,815)	11,224	(21,591)

F- 16

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

21. SHARE-BASED COMPENSATION

The Group has several equity incentive plans under which a combination of performance share units (“PSUs”) and retention restricted share units (“RSUs”), which each represent the right to receive one Ferrari common share, have been awarded to the Executive Chairman, the Chief Executive Officer (“CEO”), other members of the Ferrari Leadership Team (“FLT”) and other employees of the Group. See Note 21 “Share-Based Compensation” to the Consolidated Financial Statements for further details relating to the Group’s equity incentive plans.

Equity Incentive Plan 2019-2021

In the first quarter of 2022, 68,013 PSU awards vested (representing 100 percent of the target PSU awards) as a result of the achievement of the related performance conditions and 54,112 RSU awards vested upon achievement of the related service conditions. As a result, 122,125 common shares, which were previously held in treasury, were assigned to participants of the plan in the first quarter of 2022.

Equity Incentive Plan 2020-2022

    The PSU awards and RSU awards under the Equity Incentive Plan 2020-2022 vest in 2023 based on the level of achievement of the related performance targets or service conditions.

Equity Incentive Plan 2021-2023

The PSU awards and RSU awards under the Equity Incentive Plan 2021-2023 vest in 2024 based on the level of achievement of the related performance targets or service conditions.

Equity Incentive Plan 2022-2024

Under a new Equity Incentive Plan 2022-2024 approved in 2022, the Company awarded approximately 72 thousand 2022-2024 PSUs to the Executive Chairman, CEO, members of the FLT and other employees of the Group, and approximately 26 thousand 2022-2024 RSUs to members of the FLT and other employees of the Group. The PSUs and RSUs cover the three-year performance and service periods from 2022 to 2024.

2022-2024 PSU awards

The vesting of the awards is based on the achievement of defined key performance indicators as follows:

(i)TSR Target - 40 percent vest based on the achievement of the TSR ranking of Ferrari compared to an industry specific peer group of eleven;

(ii)EBITDA Target - 40 percent vest based on the achievement of an EBITDA target determined by comparing EBITDA to the EBITDA targets derived from the Group’s business plan;

(iii)ESG Target - 20 percent vest based on the achievement of defined objectives on an environment and social factor. In particular, of the ESG Target, 50 percent is based on the reduction of CO2 carbon emission and 50 percent is based on the maintenance of the equity salary certification.

Each target is settled independently of the other targets. The awards vest in 2025 and the total number of shares assigned upon vesting depends on the level of achievement of the targets.

2022-2024 RSU awards

The awards vest in 2025, subject to the recipient’s continued employment with the Company at the time of vesting.

Supplemental information relating to the Equity Incentive Plan 2022-2024 is summarized below.

F- 17

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

TSR Target

The number of PSUs with a TSR Target that vest under the Equity Incentive Plan 2022-2024 is based on the Company’s TSR performance over the relevant performance period compared to an industry-specific peer group as summarized below.

Ferrari TSR Ranking	% of Target Awards that Vest
1	175%
2	150%
3	125%
4	100%
5	75%
6	50%
>6	0%

The defined peer groups (including the Company) for the TSR Target is presented below.

Ferrari	Aston Martin	Burberry	Estee Lauder
Hermes	Kering	LVMH	Mercedes Benz Group AG
Moncler	Prada	Richemont

EBITDA Target

The number of PSUs with an EBITDA Target that vest under the Equity Incentive Plan 2022-2024 is determined by comparing EBITDA to the EBITDA targets derived from the Group’s business plan, as summarized below.

Actual Adjusted EBITDA Compared to Business Plan	% of Awards that Vest
+15%	175%
+10%	150%
+5%	125%
Business Plan Target	100%
-5%	75%
<-5%	0%

Fair value and key assumptions

The fair value of the PSU awards used for accounting purposes was measured at the grant date using a Monte Carlo Simulation model. The fair value of the RSU awards was measured using the share price at the grant date adjusted for the present value of future distributions which employees will not receive during the vesting period.

The fair value of the PSUs and RSUs that were awarded under the Equity Incentive Plan 2022-2024, which is determined based on actuarial calculations that apply certain assumptions and take into consideration the specific characteristics of the awards granted, is summarized in the following table.

Equity Incentive Plan 2022-2024
PSUs	€200.13
RSUs	€201.20

The key assumptions utilized to calculate the grant-date fair values of the PSUs that were awarded under the Equity Incentive Plan 2022-2024 are summarized below:

F- 18

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Equity Incentive Plan 2022-2024
Grant date share price	€205.20
Expected volatility	27.75%
Dividend yield	0.75%
Risk-free rate	0%

The expected volatility was based on the observed volatility of the defined peer group. The risk-free rate was based on the iBoxx sovereign Eurozone yield.

Outstanding share awards

Changes to the outstanding number of PSU and RSU awards under all equity incentive plans of the Group are as follows:

	Outstanding PSU Awards	Outstanding RSU Awards	Total Outstanding Awards
Balance at December 31, 2021	152,172	123,661	275,833
Granted(1)	71,900	26,258	98,158
Vested(2)	(68,013)	(54,112)	(122,125)
Forfeited	(3,046)	(348)	(3,394)
Balance at March 31, 2022	153,013	95,459	248,472

____________________________________

(1)     Granted under the Equity Incentive Plan 2022-2024

(2)    Vested under the Equity Incentive Plan 2019-2021

Share-based compensation expense

For the three months ended March 31, 2022 and 2021, the Company recognized €3,152 thousand and €3,259 thousand, respectively, as share-based compensation expense and an increase to other reserves within equity in relation to the PSUs and RSUs awarded under the Group’s equity incentive plans. At March 31, 2022, unrecognized compensation expense amounted to €24,147 thousand and is expected to be recognized over the remaining vesting periods through 2024.

For the three months ended March 31, 2022 the Group also recognized share-based compensation expense of €1,124 thousand as part of commercial agreements with certain suppliers.

22. PROVISIONS

    Provisions are as follows:

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Warranty and recall campaigns provision	111,444	108,767
Legal proceedings and disputes	13,366	13,701
Other risks	30,938	28,400
Total provisions	155,748	150,868

    The provision for other risks primarily relates to disputes and matters which are not subject to legal proceedings, including contract-related disputes with suppliers, employees and other parties, as well as environmental risks.

F- 19

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

    Movements in provisions are as follows:

	Balance at December 31, 2021	Additional provisions	Utilization	Releases	Translation differences and other movements	Balance at March 31, 2022
	(€ thousand)
Warranty and recall campaigns provision	108,767	12,505	(8,778)	(1,092)	42	111,444
Legal proceedings and disputes	13,701	231	(620)	(35)	89	13,366
Other risks	28,400	3,414	(382)	(655)	161	30,938
Total provisions	150,868	16,150	(9,780)	(1,782)	292	155,748

23. DEBT

	Balance at December 31, 2021	Proceeds from borrowings	Repayments of borrowings	Interest accrued/(paid) and other (*)	Translation differences	Balance at March 31, 2022
	(€ thousand)
Bonds and notes	1,487,110	—	—	(2,365)	—	1,484,745
Asset-backed financing (Securitizations)	900,213	76,904	(56,680)	78	18,457	938,972
Lease liabilities	56,210	—	(3,430)	6,050	266	59,096
Borrowings from banks and other financial institutions	154,419	8,909	(30,000)	33	1,348	134,709
Other debt	32,059	4,690	(77)	—	661	37,333
Total debt	2,630,011	90,503	(90,187)	3,796	20,732	2,654,855

(*) Other changes in lease liabilities primarily relate to non-cash movements for the recognition of additional lease liabilities in accordance with IFRS 16.

Bonds

2023 Bond

On March 16, 2016, the Company issued 1.5 percent coupon notes due March 2023, having a principal of €500 million. The bond was issued at a discount for an issue price of 98.977 percent, resulting in net proceeds of €490,729 thousand, after the debt discount and issuance costs, and a yield to maturity of 1.656 percent. The net proceeds were used, together with additional cash held by the Company, to fully repay a €500 million bank loan. The bond is unrated and was admitted to trading on the regulated market of the Euronext Dublin (formerly the Irish Stock Exchange). Following a cash tender offer, on July 16, 2019 the Company executed the repurchase of these notes for an aggregate nominal amount of €115,395 thousand. The amount outstanding at March 31, 2022 was €383,811 thousand and includes accrued interest of €240 thousand (€387,872 thousand including accrued interest of €4,567 thousand at December 31, 2021).

2025 Bond

On May 27, 2020 the Company issued 1.5 percent coupon notes due May 2025 (“2025 Bond”), having a principal of €650 million. The notes were issued at a discount for an issue price of 98.898 percent, resulting in net proceeds of €640,073 thousand, after related expenses, and a yield to maturity of 1.732 percent. The bond was admitted to trading on the regulated market of Euronext Dublin. The amount outstanding of the 2025 Bond at March 31, 2022 was €651,870 thousand, including accrued interest of €8,254 thousand (€648,984 thousand, including accrued interest of €5,850 thousand at December 31, 2021).

F- 20

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2029 and 2031 Notes

On July 31, 2019, the Company issued 1.12 percent senior notes due August 2029 (“2029 Notes”) and 1.27 percent senior notes due August 2031 (“2031 Notes”) through a private placement to certain US institutional investors, each having a principal of €150 million. The net proceeds from the issuances amounted to €298,316 thousand, and the yields to maturity, on an annual basis, equal the nominal coupon rates of the Notes. The Notes are primarily used for general corporate purposes, including the funding of capital expenditures.

The amounts outstanding of the 2029 Notes at March 31, 2022 was €149,653 thousand, including accrued interest of €280 thousand (€150,052 thousand, including accrued interest of €700 thousand at December 31, 2021). The amount outstanding of the 2031 Notes at March 31, 2022 was €149,651 thousand, including accrued interest of €318 thousand (€150,111 thousand including accrued interest of €794 thousand at December 31, 2021).

2032 Notes

On July 29, 2021, the Company issued 0.91 percent senior notes due January 2032 (“2032 Notes”) through a private placement to certain US institutional investors having a principal of €150 million. The net proceeds from the issuance amounted to €149,495 thousand and the yield to maturity on an annual basis equals the nominal coupon rates of the Notes. The Notes are used for general corporate purposes. The amount outstanding of the 2032 Notes at March 31, 2022 was €149,760 thousand, including accrued interest of €235 thousand (€150,091 thousand, including accrued interest of €576 thousand at December 31, 2021).

The abovementioned notes impose covenants on Ferrari including: (i) negative pledge clauses which require that, in case any security interest upon assets of Ferrari is granted in connection with other notes or debt securities with the consent of Ferrari are, or are intended to be, listed, such security should be equally and ratably extended to the outstanding notes, subject to certain permitted exceptions; (ii) pari passu clauses, under which the notes rank and will rank pari passu with all other present and future unsubordinated and unsecured obligations of Ferrari; (iii) events of default for failure to pay principal or interest or comply with other obligations under the notes with specified cure periods or in the event of a payment default or acceleration of indebtedness or in the case of certain bankruptcy events; and (iv) other clauses that are customarily applicable to debt securities of issuers with a similar credit standing. A breach of these covenants may require the early repayment of the notes. At March 31, 2022 and December 31, 2021, Ferrari was in compliance with the covenants of the notes.

Asset-backed financing (Securitizations)

As a means of diversifying its sources of funds, the Group sells certain of its receivables originated by its financial services activities in the United States through asset-backed financing or securitization programs (the terms asset-backed financing and securitization programs are used synonymously throughout this document), without transferring the risks typically associated with the related receivables. As a result, the receivables sold through securitization programs are still consolidated until collection from the customer. During 2022, the following revolving securitization programs were in place:

•revolving securitization program for funding of up to $750 million, which was renewed in December 2020 for a tenor of 24 months and increased up to $800 million in December 2021, by pledging retail financial receivables in the United States as collateral. The notes bear interest at a rate per annum equal to the aggregate of a synthetic base rate substantially replicating the LIBOR plus a margin of 75 basis points. At March 31, 2022 total proceeds net of repayments from the sales of financial receivables under the program amounted to $786 million ($775 million at December 31, 2021). The securitization agreement requires the maintenance of an interest rate cap.

•revolving securitization program for funding of up to $285 million, which was renewed in November 2021 for a tenor of 24 months, by pledging leasing financial receivables in the United States as collateral. The notes bear interest at a rate per annum equal to the aggregate of LIBOR plus a margin of 65 basis points. At March 31, 2022 total proceeds net of repayments from the sales of financial receivables under the program amounted to $257 million ($245 million at December 31, 2021). The securitization agreement requires the maintenance of an interest rate cap.

The consolidated total amount of the revolving securitization programs has been progressively increased since inception as the underlying receivables portfolios have increased. Cash collected from the settlement of receivables under securitization programs is subject to certain restrictions regarding its use and is primarily applied to repay principal and

F- 21

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

interest of the related funding. Such cash amounted to €51,365 thousand at March 31, 2022 (€47,742 thousand at December 31, 2021).

Lease liabilities

The Group recognizes lease liabilities in relation to right-of-use assets in accordance with IFRS 16 — Leases. At March 31, 2022 lease liabilities amounted to €59,096 thousand (€56,210 thousand at December 31, 2021).

Borrowings from banks

Borrowings from banks at March 31, 2022 include (i) an amortized term loan of €63 million borrowed in June 2021 by Ferrari S.p.A. for a tenor of 36 months and bearing fixed interest at 0.118 percent and (ii) financial liabilities of FFS Inc to support financial services activities, and in particular €72,209 thousand (€61,919 thousand at December 31, 2021) relating to a U.S. Dollar committed credit facility for up to $100 million, (drawn down for $80 million at March 31, 2022) for a tenor of 24 months and bearing interest at LIBOR plus 75 basis points.

Other debt

Other debt mainly relates to other funding for operating and financing activities of the Group.

24. OTHER LIABILITIES

    An analysis of other liabilities is as follows:

	At March 31, 2022	At December 31, 2021
	(€ thousand)
Deferred income	367,153	256,206
Advances and security deposits	325,632	240,696
Accrued expenses	83,361	80,787
Payables to personnel	59,789	53,712
Social security payables	30,819	24,660
Other	69,676	70,714
Total other liabilities	936,430	726,775

    Deferred income primarily includes amounts received under maintenance and power warranty programs of €228,915 thousand at March 31, 2022 and €218,982 thousand at December 31, 2021, which are deferred and recognized as revenues over the length of the maintenance program. Deferred income also includes amounts collected under various other agreements, which are dependent upon the future performance of a service or other act of the Group. The increase in deferred revenue primarily relates to advances received for Formula 1 sponsorship agreements.

Advances and security deposits primarily include advances received for the purchase of Icona and limited edition models. Upon shipment of the cars, the advances are recognized as revenue. The increase primarily relates to advances received during the period for the Ferrari Daytona SP3 and the 812 Competizione A.

25. TRADE PAYABLES

    Trade payables of €797,358 thousand at March 31, 2022 (€797,832 thousand at December 31, 2021) are entirely due within one year. The carrying amount of trade payables is considered to be equivalent to their fair value.

F- 22

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

26. FAIR VALUE MEASUREMENT

IFRS 13 - Fair Value Measurement establishes a three level hierarchy for the inputs to the valuation techniques used to measure fair value by giving the highest priority to quoted prices (unadjusted) in active markets for identical assets and liabilities (level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs). In some cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy at the lowest level input that is significant to the entire measurement.

    Levels used in the hierarchy are as follows:

    Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can access at the measurement date.

    Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly.

    Level 3 inputs are unobservable inputs for the assets and liabilities.

Assets and liabilities that are measured at fair value on a recurring basis

    The following table shows the fair value hierarchy for financial assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022 and at December 31, 2021:

		At March 31, 2022
	Note	Level 1	Level 2	Level 3	Total
		(€ thousand)
Investments and other financial assets - Liberty Media Shares	16	11,667	—	—	11,667
Current financial assets	19	—	34,787	—	34,787
Total assets		11,667	34,787	—	46,454
Other financial liabilities	19	—	37,340		37,340
Total liabilities		—	37,340	—	37,340

		At December 31, 2021
	Note	Level 1	Level 2	Level 3	Total
		(€ thousand)
Investments and other financial assets - Liberty Media Shares	16	10,559	—	—	10,559
Current financial assets	19	—	11,565		11,565
Total assets		10,559	11,565	—	22,124
Other financial liabilities	19	—	36,520	—	36,520
Total liabilities		—	36,520	—	36,520

    There were no transfers between fair value hierarchy levels for the periods presented.

    The fair value of current financial assets and other financial liabilities relates to derivative financial instruments and is measured by taking into consideration market parameters at the balance sheet date, using widely accepted valuation techniques. In particular, the fair value of foreign currency derivatives (forward contracts, currency swaps and options) and interest rate caps is determined by taking the prevailing foreign currency exchange rate and interest rates, as applicable, at the balance sheet date.

    The par value of cash and cash equivalents usually approximates fair value due to the short maturity of these instruments, which consist primarily of current bank accounts.

F-23

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Assets and liabilities not measured at fair value on a recurring basis

    For financial instruments represented by short-term receivables and payables, for which the present value of future cash flows does not differ significantly from carrying value, the Group assumes that carrying value is a reasonable approximation of the fair value. In particular, the carrying amount of current receivables and other current assets and of trade payables and other liabilities approximates their fair value.

    The following table presents the carrying amount and the fair value for the most relevant categories of financial assets and financial liabilities not measured at fair value on a recurring basis:

		At March 31, 2022		At December 31, 2021
	Note	Carrying amount	Fair Value	Carrying amount	Fair Value
		(€ thousand)
Receivables from financing activities	18	1,190,615	1,190,615	1,143,968	1,143,968
Total assets		1,190,615	1,190,615	1,143,968	1,143,968
Debt	23	2,654,855	2,656,655	2,630,011	2,656,159
Total liabilities		2,654,855	2,656,655	2,630,011	2,656,159

27. RELATED PARTY TRANSACTIONS

Pursuant to IAS 24, the related parties of Ferrari include Exor N.V., and together with its subsidiaries the Exor Group, as well as all entities and individuals capable of exercising control, joint control or significant influence over the Group and its subsidiaries. Related parties also include companies over which the Exor Group is capable of exercising control, joint control or significant influence, including Stellantis N.V., and together with its subsidiaries the Stellantis Group, (previously referred to as Fiat Chrysler Automobiles N.V., FCA or FCA Group, which changed its name to Stellantis as a result of the merger with Peugeot S.A. in January 2021) and CNH Industrial N.V. and its subsidiaries, as well as joint ventures and associates of Ferrari. In addition, members of the Ferrari Board of Directors and executives with strategic responsibilities and their families are also considered related parties.

The Group carries out transactions with related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. Transactions carried out by the Group with these related parties are primarily of a commercial nature and, in particular, these transactions relate to:

Transactions with Stellantis Group companies

•the sale of engines to Maserati S.p.A. (“Maserati”);

•the purchase of engine components for the use in the production of Maserati engines from FCA US LLC;

•a technical cooperation between the Group and Stellantis Group with the aim to enhance the quality and competitiveness of their respective products, while reducing costs and investment;

•transactions with Stellantis Group companies, mainly relating to the services provided by Stellantis Group companies, including certain services relating to human resources, payroll, tax and the procurement of insurance coverage.

    Transactions with Exor Group companies (excluding Stellantis Group companies)

•the Group incurs rental costs from Iveco S.p.A., a company belonging to Iveco Group, related to the rental of trucks used by the Formula 1 racing team;

•the Group earns sponsorship revenue from Iveco S.p.A.

    Transactions with other related parties

•the purchase of components for Formula 1 racing cars from COXA S.p.A.;

•consultancy services provided by HPE S.r.l.;

F-24

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

•sponsorship agreement relating to Formula 1 activities with Ferretti S.p.A.;

•sale of cars to certain members of the Board of Directors of Ferrari N.V. and Exor.

    In accordance with IAS 24, transactions with related parties also include compensation to Directors and managers with strategic responsibilities.

The amounts of transactions with related parties recognized in the consolidated income statement are as follows:

	For the three months ended March 31,
	2022			2021
	Net revenues	Costs (1)	Net financial expenses	Net revenues	Costs (1)	Net financial expenses
	(€ thousand)
Stellantis Group companies
Maserati	17,953	349	—	27,602	502	—
FCA US LLC	—	2,351	—	—	5,668	—
Other Stellantis Group companies	3,009	817	571	1,489	1,424	580
Total Stellantis Group companies	20,962	3,517	571	29,091	7,594	580
Exor Group companies (excluding the Stellantis Group)	—	305	—	—	327	—
Other related parties	141	2,637	—	415	3,652	1
Total transactions with related parties	21,103	6,459	571	29,506	11,573	581
Total for the Group	1,185,982	683,150	8,005	1,011,280	557,536	9,227

______________________________

(1)    Costs include cost of sales, selling, general and administrative costs and other expenses, net.

Non-financial assets and liabilities originating from related party transactions are as follows:

	At March 31, 2022				At December 31, 2021
	Trade receivables	Trade payables	Other current assets	Other liabilities	Trade receivables	Trade payables	Other current assets	Other liabilities
	(€ thousand)
Stellantis Group companies
Maserati	18,961	3,990	—	5,402	23,267	3,994	—	6,454
FCA US LLC	—	3,002	—	—	—	3,275	—	—
Other Stellantis Group companies	296	2,202	421	852	470	3,075	121	1,074
Total Stellantis Group companies	19,257	9,194	421	6,254	23,737	10,344	121	7,528
Exor Group companies (excluding the Stellantis Group)	60	296	—	1	382	1	8	5
Other related parties	142	2,197	884	969	144	3,276	998	1,065
Total transactions with related parties	19,459	11,687	1,305	7,224	24,263	13,621	1,127	8,598
Total for the Group	289,079	797,358	145,636	936,430	185,000	797,832	122,224	726,775

At March 31, 2022, current financial assets with related party were €5,174 thousand (nil at December 31, 2021). There were no other financial assets or liabilities originating from related party transactions at March 31, 2022 or December 31, 2021.

F-25

FERRARI N.V.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

28. ENTITY-WIDE DISCLOSURES

    The following table presents an analysis of net revenues by geographic location of the Group’s customers for the three months ended March 31, 2022 and 2021, including the effects of foreign currency hedge transactions. Revenues by geography presented for material individual countries are not necessarily correlated to shipments of cars as certain countries include revenues from sponsorship and commercial activities relating to Ferrari's participation in the Formula 1 World Championship.

	For the three months ended March 31,
	2022	2021
	(€ thousand)
Italy	91,081	90,324
Rest of EMEA	568,005	463,272
of which Germany	129,938	101,839
of which UK	124,075	96,158
Americas (1)	257,761	279,326
of which United States of America	215,697	236,527
Mainland China, Hong Kong and Taiwan	108,430	67,709
Rest of APAC (2)	160,705	110,649
Total net revenues	1,185,982	1,011,280

______________________________

(1)    Americas includes the United States of America, Canada, Mexico, the Caribbean and Central and South America.

(2)    Rest of APAC mainly includes Japan, Australia, Singapore, Indonesia, South Korea, Thailand, India and Malaysia.

The Group had an average number of employees of 4,632 and 4,558 for the three months ended March 31, 2022 and 2021, respectively.

Depreciation amounted to €57,614 thousand and €56,110 thousand for the three months ended March 31, 2022 and 2021, respectively.

Amortization amounted to €57,888 thousand and €53,490 thousand for the three months ended March 31, 2022 and 2021, respectively.

29. SUBSEQUENT EVENTS

    The Group has evaluated subsequent events through May 4, 2022, which is the date the Interim Condensed Consolidated Financial Statements were authorized for issuance, and identified the following matters:

On April 13, 2022, at the Annual General Meeting, the Shareholders of the Company approved, among others, a dividend in cash €1.362 per outstanding common share, corresponding to a total dividend amount of €250 million. The dividend is to be paid on May 6, 2022.

Under the common share repurchase program, from April 1, 2022 to April 29, 2022 the Company purchased an additional 156,389 common shares for total consideration of €31.3 million. At April 29, 2022 the Company held in treasury an aggregate of 10,804,094 common shares.

F-26