race-2021-12-31-en

Letter from the Chairman and the Chief Executive Officer

Dear Stakeholders,

2021 was a pivotal year for Ferrari. It was a year of continuity and renewal, with innovation and growth as its

themes, in line with our strategic objectives of brand exclusivity, product excellence, staying true to our racing DNA and

achieving carbon neutrality by 2030.

Our annual financial results, with a double-digit growth across all main financial indicators and exceeding our

guidance, proved once again the soundness of our business model. Last year the Group delivered 11,115 cars, recorded net

revenues of Euro 4,271 million and an exceptional EBITDA margin at a record level of 35.9%. Beyond these figures there

was an outstanding order intake, which we managed in line with our strategy to pursue a controlled growth and to preserve

brand exclusivity.

Everything we revealed to the world in 2021 demonstrates our leadership in technology, design and driving

experience. We have the broadest, most innovative, and most beautiful range of cars ever offered our customers, from the

revolutionary aerodynamics of the 812 Competizione, the exhilarating 296 GTB featuring our latest hybrid powertrain

combining a V6 turbo and electric motor, and the evocative Ferrari Daytona SP3, our latest limited edition Icona.

When you buy a Ferrari you also join a vibrant, passionate community, and we focused on creating memorable,

unique and authentic experiences for our clients on road, on track and in person. We marked Cavalcade’s 10th anniversary

with a very special event in Sicily for Classiche and Moderne drivers, and we restarted our Tributi and Corse Clienti

activities, culminating in the Finali Mondiali at Mugello – all in full compliance with COVID-19 regulations.

We also brought our brand into exciting new territories: we launched our first fashion collection – a range that truly

reflects our excellence in quality and design – and we have begun to give our stores a fresh new look to complement our

merchandise. We reopened and revitalised our Cavallino restaurant while retaining its heritage.

On the track, this was our best ever season in GT racing, with Ferrari winning the Drivers’ and Manufacturers’

World titles in the FIA World Endurance Championship and victory at 24 Hours of Le Mans. We also announced our

eagerly-awaited return to the top class of such Championship in 2023 with our Le Mans Hypercar (LMH) programme. We

have attracted a passionate new audience with the Ferrari Esports Series, gaining 35,000 participants across Europe. With five

podium places and a third in the constructor standings, the Formula One season produced some encouraging signs – we’re

focusing our energy on the 2022 challenge, confident that the Scuderia has the best pair of drivers on the grid in Charles

Leclerc and Carlos Sainz.

Amidst our achievements, we continue in our unwavering pursuit of reaching carbon neutrality by 2030, addressing

– in addition to our electrification journey – both direct and indirect emissions with a focus on energy and materials. As a

further step forward in this process, in 2021 we calculated our carbon footprint considering the emissions related to all the

Group activities over our entire value chain. Our calculation, based on GHG protocol methodology, has been certified

according ISO 14064 requirements by a third-party player and allowed us to determine priority areas for action.

Our founder said, “Ferrari is made above all by people.” Last year, as ever, it was essential that we continued to

invest in training for our workers, care for their wellbeing and value the wonderful diversity of talent in our company. Our

efforts were rewarded in 2021 by Equal Salary certification for the second consecutive year in Italy, and the first time in the

United States.

We have also refined our company’s organisational structure to foster innovation, optimise processes and increase

collaboration, both internally and with our partners. By promoting internal talent and through the appointment of some key

strategic external hires, we have enhanced our agility and are ready to seize the opportunities ahead.

The process of growing and learning together has always underpinned our success. In 2022 we celebrate our 75th

Anniversary since the opening of the Maranello factory as a single, formidable team, ready to embrace all the exciting

challenges and rewards that the future will hold.

February 25, 2022

John Elkann Benedetto Vigna

Chairman CEO

Certain Defined Terms and Note on Presentation

Certain Defined Terms

In this 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. References to “Ferrari N.V.”

refer to the registrant.

Note on Presentation

This Annual Report includes the consolidated financial statements of Ferrari N.V. as of December 31, 2021 and

2020, and for the years ended December 31, 2021, 2020 and 2019 prepared in accordance with International Financial

Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, as well as IFRS as adopted by the

European Union. There is no effect on these consolidated financial statements resulting from differences between IFRS as

issued by the IASB and IFRS as adopted by the European Union. The designation IFRS also includes International

Accounting Standards (“IAS”) as well as all the interpretations of the International Financial Reporting Interpretations

Committee (“IFRIC” and “SIC”). The consolidated financial statements and the notes to the consolidated financial statements

are referred to collectively as the “Consolidated Financial Statements”.

Basis of Preparation of the Consolidated Financial Statements

The Group’s financial information is presented in Euro. In some instances, information is presented in U.S. Dollars.

All references in this document 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”).

The language of this Annual Report is English. Certain legislative references and technical terms have been cited in

their original language in order that the correct technical meaning may be ascribed to them under applicable law.

The financial data in the section “Results of Operations” is presented in millions of Euro, while the percentages

presented are calculated using the underlying figures in thousands of Euro.

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

Forward-Looking Statements

Statements contained in this Annual Report, particularly those regarding our possible or assumed future

performance, competitive strengths, costs, dividends, reserves and growth as well as industry growth and other trends and

projections, 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 the general economic environment, including changes in some of the markets in which we operate,

and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile;

•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;

•global economic conditions, macro events 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 effects of Brexit on the UK market;

•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;

•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;

•labor relations and collective bargaining agreements;

•exchange rate fluctuations, interest rate changes, credit risk and other market risks;

•changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in

which we operate, including possible future bans of combustion engine cars in cities and the potential advent

of self-driving technology;

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

•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.

Additional factors which could cause actual results and developments to differ from those expressed or implied by

the forward-looking statements are included in the section “Risk Factors” of this Annual Report. These factors may not be

exhaustive and should be read in conjunction with the other cautionary statements included in this Annual Report. You

should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

Selected Financial and Other Data

The following tables set forth selected historical consolidated financial and other data of Ferrari and have been

derived from:

(i)the audited Consolidated Financial Statements, included elsewhere in this Annual Report;

(ii)the audited consolidated income statement of the Company for the years ended December 31, 2018 and 2017 and the

audited consolidated statement of financial position at December 31, 2019, 2018 and 2017.

This financial information has been prepared in accordance with IFRS.

The following information should be read in conjunction with “Certain Defined Terms and Note on Presentation—

Note on Presentation”, “Risk Factors”, “Financial Overview” and the Consolidated Financial Statements included elsewhere

in this Annual Report. Historical results for any period are not necessarily indicative of results for any future period.

Consolidated Income Statement Data

For the years ended December 31,

2021

2020

2019

2018

2017

(€ million, except per share data )

Net revenues

4,271

3,460

3,766

3,420

3,417

EBIT

1,075

716

917

826

775

Profit before taxes

1,042

667

875

803

746

Net profit

833

609

699

787

537

Net profit attributable to:

Owners of the parent

831

608

696

785

535

Non-controlling interests

Basic earnings per common share (€) (1)

4.50

3.29

3.73

4.16

2.83

Diluted earnings per common share (€) (1) (2)

4.50

3.28

3.71

4.14

2.82

Dividend declared per common share (€) (3)

0.867

1.13

1.03

0.71

—

Dividend declared per common share ($) (3) (5)

1.0378

1.23

1.16

0.88

—

Distribution declared per common share (€) (4)

—

0.635

Distribution declared per common share ($) (4) (5)

—

0.682

_____________________________

(1)Basic and diluted earnings per common share in 2020 benefited from the one-off partial step-up of certain trademarks for tax purposes, which resulted

in a net tax benefit of €75 million. The increase in the basic and diluted earnings per common share in 2018 compared to 2017 includes the effects of

applying the Patent Box tax regime starting in the third quarter of 2018. See Adjusted Basic and Diluted Earnings per Common Share in the section

“Non-GAAP Financial Measures” as well as Note 10 to the Consolidated Financial Statements, both included elsewhere in this document, for

additional information.

(2)In order to calculate the diluted earnings per common share the weighted average number of shares outstanding has been increased to take into

consideration the theoretical effect of (i) the potential common shares that would have been issued under the equity incentive plan for the years ended

December 31, 2021, 2020, 2019, 2018 and 2017 (assuming 100 percent of the related awards vested), and (ii) the potential common shares that would

have been issued for the Non-Executive Directors’ compensation agreement for the year ended December 31, 2017. See Note 12 to the Consolidated

Financial Statements for additional information.

(3)Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 15, 2021, a dividend

distribution of €0.867 per outstanding common share was approved, corresponding to a total distribution of €160 million. Following approval of the

annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 16, 2020, a dividend distribution of €1.13 per

outstanding common share was approved, corresponding to a total distribution of €209 million. Following approval of the annual accounts by the

shareholders at the Annual General Meeting of the Shareholders on April 12, 2019, a dividend distribution of €1.03 per outstanding common share

was approved, corresponding to a total distribution of €193 million. Following approval of the annual accounts by the shareholders at the Annual

General Meeting of the Shareholders on April 13, 2018, a dividend distribution of €0.71 per outstanding common share was approved, corresponding

to a total distribution of €134 million. Such dividend distributions were made from the retained earnings reserve.

(4)Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 14, 2017, a cash

distribution of €0.635 per outstanding common share was approved, corresponding to a total distribution of €120 million. Such distribution was made

from the share premium reserve which is a distributable reserve under Dutch law.

(5)Translated into U.S. Dollars at the exchange rates in effect on the dates on which the distribution was declared in U.S. Dollars for common shares that

are traded on the New York Stock Exchange. These translations are examples only, and should not be construed as a representation that the Euro

amount represents, or has been or could be converted into, U.S. Dollars at that or any other rate.

Consolidated Statement of Financial Position

At December 31,

2021

2020

2019

2018

2017

(€ million, except per share data )

Cash and cash equivalents

1,344

1,362

898

794

648

Receivables from financing activities

1,144

940

966

878

733

Total assets

6,864

6,262

5,446

4,852

4,141

Debt

2,630

2,725

2,090

1,927

1,806

Total equity

2,211

1,789

1,487

1,354

784

Equity attributable to owners of the parent

2,206

1,785

1,481

1,349

779

Non-controlling interests

Share capital

Common shares issued and outstanding

(in thousands of shares)

183,843

184,748

185,283

187,921

188,954

Other Statistical Information

For the years ended December 31,

2021

2020

2019

2018

2017

Shipments (number of cars)

11,155

9,119

10,131

9,251

8,398

Average number of employees for the period

4,571

4,428

4,164

3,651

3,336

Creating Value for Our Shareholders

Ferrari is among the world’s leading luxury brands with unique, world-class capabilities, and a vision built on our

historic foundations and strengths.

We are fiercely protective of our brand, which is among the most iconic and recognizable in the world and critical to

our value proposition to all of our stakeholders. We strive to maintain and enhance the power of our brand and the passion we

inspire in clients and the broader community of automotive enthusiasts by continuing our rigorous production and distribution

model, which promotes excellence in innovation, design and exclusivity.

We also support our brand value by promoting a strong connection to our company and our brand among the

community of Ferrari enthusiasts. We focus relentlessly on strengthening this connection by rewarding our most loyal clients

through a range of initiatives, such as driving events and client activities in Maranello and, most importantly, by providing

our most loyal and active clients with preferential access to our newest, most exclusive and highest value cars. As a result, in

2021 we sold approximately 59% of our new cars to already Ferrari customers and 32% to customers being current owners of

more than one Ferrari, which reinforces the demand for our cars and the image of luxury and exclusivity inherent in our

brand.

Our commitment to excellence and our pursuit of innovation, state-of-the-art performance and distinction in design

and engineering in our luxury cars is inseparable from our commitment to integrity, transparency and responsibility in the

conduct of our business. By fully integrating environmental and social considerations with economic objectives we are able

to identify potential risks and capitalize on additional opportunities, resulting in a process of continuous improvement.

Sustainability is a core element of our governance model and executive management plays a direct and active role in

developing and achieving our sustainability objectives under the oversight of our Board of Directors.

The foundation of a responsible company rests on being fully attentive to the nature and extent of this

interconnection and our understanding of both the potential effects of our activities and how those effects can be mitigated

through responsible management.

To provide for tangible long-term value creation, we place particular emphasis on:

•a governance model based on transparency and integrity;

•a safe and eco-friendly working environment including excellent working conditions and respect for human rights;

•professional development of our employees;

•mutually beneficial relationships with business partners and the communities in which we operate;

•mitigation of environmental impacts from our production processes and the luxury cars we produce, addressing

direct and indirect GHG emissions, focusing on energy and materials, in addition to our electrification journey.

The Non Financial Statement section of our 2021 Annual Report addresses those aspects of our sustainability efforts

that we have identified as being of greatest importance to our internal and external stakeholders.

Risk Factors

We face a variety of risks and uncertainties in our business. Those described below are not the only risks and

uncertainties that we face. 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.

Risks Related to Our Business, Strategy and Operations

We may not succeed in preserving and enhancing the value of the Ferrari brand, which we depend upon to drive demand

and revenues.

Our financial performance is influenced by the perception and recognition of the Ferrari brand, which, in turn,

depends on many factors such as the design, performance, quality and image of our cars, the appeal of our dealerships and

stores, the success of our promotional activities including public relations and marketing, as well as our general profile,

including our brand’s image of exclusivity. The value of our brand and our ability to achieve premium pricing for Ferrari-

branded products may decline if we are unable to maintain the value and image of the Ferrari brand, including, in particular,

its aura of exclusivity. Maintaining the value of our brand will depend significantly on our ability to continue to produce

luxury performance cars of the highest quality. The market for luxury goods generally and for luxury automobiles in

particular is intensely competitive, and we may not be successful in maintaining and strengthening the appeal of our brand.

Client preferences, particularly among luxury goods, can vary over time, sometimes rapidly. We are therefore exposed to

changing perceptions of our brand image, particularly as we seek to attract new generations of clients and, to that end, we

continuously renovate and expand the range of our models. For example, the gradual expansion of hybrid engine technology

(already integrated in past models such as the LaFerrari and the LaFerrari Aperta, as well as in the more recent 296 GTB,

SF90 Stradale and SF90 Spider) and electric engine technology will introduce a notable change in the overall driver

experience compared to the combustion engine cars of our historical models. Any failure to preserve and enhance the value of

our brand may materially and adversely affect our ability to sell our cars, to maintain premium pricing, and to extend the

value of our brand into other activities profitably or at all.

We selectively license the Ferrari brand to third parties that produce and sell Ferrari-branded luxury goods and

therefore we rely on our licensing partners to preserve and enhance the value of our brand. If our licensees or the

manufacturers of these products do not maintain the standards of quality and exclusivity that we believe are consistent with

the Ferrari brand, or if such licensees or manufacturers otherwise misuse the Ferrari brand, our reputation and the integrity

and value of our brand may be damaged and our business, operating results and financial condition may be materially and

adversely affected. In addition, in 2019 we announced a brand diversification strategy that will significantly increase the

deployment of our brand in non-car products and experiences. If this strategy is not successful, our brand image may be

diluted or tainted.

Our brand image depends in part on the success of our Formula 1 racing team.

The prestige, identity, and appeal of the Ferrari brand depend in part on the continued success of the Scuderia Ferrari

racing team in the Formula 1 World Championship. The racing team is a key component of our marketing strategy and may

be perceived by our clients as a demonstration of the technological capabilities of our sports, GT, special series and Icona

cars, which also supports the appeal of other Ferrari-branded luxury goods. We are focused on improving our racing results

and restoring our historical position as the premier racing team particularly in Formula 1 as our most recent Drivers’

Championship and Constructors’ Championship were in 2007 and 2008, respectively. If we are unable to attract and retain

the necessary talent to succeed in international competitions or devote the capital necessary to fund successful racing

activities, the value of the Ferrari brand and the appeal of our cars and other luxury goods may suffer. Even if we are able to

attract such talent and adequately fund our racing activities, there is no assurance that this will lead to competitive success for

our racing team.

The success of our racing team depends in particular on our ability to attract and retain top drivers, racing team

management and engineering talent. Our primary Formula 1 drivers, team managers and other key employees of Scuderia

Ferrari are critical to the success of our racing team and if we were to lose their services, this could have a material adverse

effect on the success of our racing team and correspondingly the Ferrari brand. If we are unable to find adequate

replacements or to attract, retain and incentivize drivers and team managers, other key employees or new qualified personnel,

the success of our racing team may suffer. As the success of our racing team forms a large part of our brand identity, a

sustained period without racing success could detract from the Ferrari brand and, as a result, from potential clients’

enthusiasm for the Ferrari brand and their perception of our cars, which could have an adverse effect on our business, results

of operations and financial condition.

We are subject to risks related to the COVID-19 pandemic or similar public health crises that may materially and

adversely affect our business

Public health crises such as pandemics or similar outbreaks could adversely impact our business. Starting in early

2020 the global spread of COVID-19 led to governments around the world mandating increasingly restrictive measures to

contain the pandemic, including social distancing, quarantine, “shelter in place” or similar orders, travel restrictions and

suspension of non-essential business activities. The COVID-19 pandemic has caused significant disruption to the global

economy, including changes in consumer spending and behavior, disruption to supply chains and financial markets, as well as

restrictions on business and individual activities. In 2020, the pandemic led to a global economic slowdown and a severe

recession in several of the markets in which we operate and while economies recovered partially in 2021, the pandemic

continues to be unpredictable and additional containment measures may lead to further economic downturns.

From mid-March to early May 2020, we temporarily suspended production at our plants in Maranello and Modena,

while implementing remote working arrangements for all non-manufacturing related activities. We were able to return to full

production in May 2020. We generally realize minimal revenue while our facilities are shut down, but we continue to incur

expenses. Moreover, the negative cash impact is exacerbated by the fact that, despite not selling cars, we have to continue to

pay suppliers for components previously ordered. We continue to take measures to combat the spread of COVID-19 at our

facilities, while continuing to guarantee the possibility of remote work for those employees whose job activity is compatible

with such work arrangements.

In connection with the COVID-19 pandemic and related government measures, we experienced delays in shipments

of cars from March 2020 to May 2020 due to restrictions on dealers’ activities or the inability of customers to take deliveries

of cars. Although certain restrictions have remained in place or been reimplemented in some of the countries where Ferrari

operates, since May 2020 substantially all Ferrari dealerships remained operational and order collections continued. For

further information on the impact of the COVID-19 pandemic on our results of operations and liquidity, see “COVID-19

Pandemic Update” and “Financial Overview”. While the overall COVID-19 situation improved in 2021 in countries that

have rolled out vaccination campaigns, our business and operating results may be negatively impacted if the virus worsens or

mutates, if vaccination efforts are unsuccessful or if regions or countries implement further restrictions to contain the virus.

The resurgence of the pandemic in several European countries and elsewhere in the last months of 2021, including due to the

highly transmissible Delta and Omicron variants, have led governments to reintroduce containment measures and

increasingly stringent restrictions may be imposed in the coming periods. We may yet experience a new shutdown or

slowdown of all or part of our manufacturing facilities, including in the event that our employees are diagnosed with

COVID-19 or our supply chains are disrupted, or if additional “waves” of the pandemic lead to further government actions.

Management time and resources may need to be spent on COVID-19 related matters, distracting them from the

implementation of our strategy. In addition, the prophylactic measures we have adopted or that we will be required to adopt at

our facilities may be costly and may affect production levels. Our suppliers, customers, dealers, franchisees and other

contractual counterparties may be restricted or prevented from conducting business activities for indefinite or intermittent

periods of time, including as a result of safety concerns, shutdowns, slowdowns, illness of such parties’ workforce and other

actions and restrictions requested or mandated by governmental authorities. Furthermore, the COVID-19 pandemic may lead

to financial distress for our suppliers or dealers, as a result of which they may have to permanently discontinue or

substantially reduce their operations. In addition, the COVID-19 pandemic may lead to higher working capital needs, reduced

liquidity and certain limitations in the supply of credit, which may ultimately lead to higher costs of capital for Ferrari. Any

of the foregoing could limit customer demand or our capacity to meet customer demand and have a material adverse effect on

our business, results of operations and financial condition.

Our brand activities across different jurisdictions have also been, and may continue to be, adversely impacted, due to

the temporary closure of the Ferrari stores, museums and theme parks in the first quarter of 2020 to comply with government

orders, with an adverse impact on our revenues originating from such activities. Although Ferrari stores gradually reopened

starting in May 2020, to date in-store traffic has not yet recovered to pre-pandemic levels and Ferrari stores, museums and

theme parks may continue to be subject to certain restrictions as a result of local regulations, although overall brand activities

have increased in 2021 compared to 2020.

The Formula 1 2021 World Championship was also disrupted due to the COVID-19 pandemic, albeit to a lesser

extent than the prior’s year edition. Government measures or decisions of Formula 1 may disrupt the Formula 1 2022 World

Championship, with potential material adverse effects on our revenues and profits.

The impact of the COVID-19 pandemic on Ferrari’s results of operations and financial condition will depend largely

on future events outside of our control, including ongoing developments in the pandemic, the success of containment

measures, vaccination campaigns and other actions taken by governments around the world, as well as the overall condition

and outlook of the global economy. While we are continuing to monitor and assess the evolution of the pandemic and its

effects on both the macroeconomic scenario and our financial position and results of operations, significant uncertainty

remains around the length and extent of the restrictions in the markets in which we operate. However, the effects on our

business, results of operations, financial performance and cash flows may be material and adverse.

The COVID-19 pandemic may also exacerbate other risks disclosed in this section, including, but not limited to, our

competitiveness, demand for our products, shifting consumer preferences, exchange rate fluctuations, customers’ and dealers’

access to affordable financing, and credit market conditions affecting the availability of capital and financial resources.

Please refer to “COVID-19 Pandemic Update” and “Financial Overview” for additional information relating to how

the COVID-19 pandemic impacted our results of operations and financial condition.

If we are unable to keep up with advances in high performance car technology, our brand and competitive position may

suffer.

Performance cars are characterized by leading-edge technology that is constantly evolving. In particular, advances in

racing technology often lead to improved technology in road cars. Although we invest heavily in research and development,

we may be unable to maintain our leading position in high performance car technology and, as a result, our competitive

position may suffer. As technologies change, we plan to upgrade or adapt our cars and introduce new models in order to

continue to provide cars with the latest technology. However, our cars may not compete effectively with our competitors’

cars if we are not able to develop, source and integrate the latest technology into our cars. For example, in the next few years

luxury performance cars will increasingly transition to hybrid and electric technology, albeit at a slower pace compared to

mass market vehicles. See “The introduction of hybrid and electric technology in our cars is costly and its long-term success

is uncertain”. We are also increasingly investing in connectivity, which requires significant investments in research and

development; we expect that the future generation of cars will feature a high degree of connectivity for purposes of

infotainment, safety and regulatory compliance.

Developing and applying new automotive technologies is costly, and may become even more costly in the future as

available technology advances and competition in the industry increases. If our research and development efforts do not lead

to improvements in car performance relative to the competition, or if we are required to spend more to achieve comparable

results, the sales of our cars or our profitability may suffer.

If our car designs do not appeal to clients, our brand and competitive position may suffer.

Design and styling are an integral component of our models and our brand. Our cars have historically been

characterized by distinctive designs combining the aerodynamics of a sports car with powerful, elegant lines. We believe our

clients purchase our cars for their appearance as well as their performance. However, we will need to renew over time the

style of our cars to differentiate the new models we produce from older models, and to reflect the broader evolution of

aesthetics in our markets. We devote great efforts to the design of our cars and most of our current models are designed by

the Ferrari Design Centre, our in-house design team. The design of our electric cars and, more generally, of our future models

with increased connectivity features will depart from past designs in appearance and functionality, thereby requiring new

skills and presenting new challenges. If the design of our future models fails to meet the evolving tastes and preferences of

our clients and prospective clients, or the appreciation of the wider public, our brand may suffer and our sales may be

adversely affected.

The value of our brand depends in part on the automobile collector and enthusiast community.

An important factor in the connection of clients to the Ferrari brand is our strong relationship with the global

community of automotive collectors and enthusiasts, particularly collectors and enthusiasts of Ferrari automobiles. This is

influenced by our close ties to the automotive collectors’ community and our support of related events (such as car shows and

driving events) at our headquarters in Maranello and through our dealers, the Ferrari museums and affiliations with regional

Ferrari clubs. The support of this community also depends upon the perception of our cars as collectibles, which we also

support through our Ferrari Classiche services, and the active resale market for our automobiles which encourages interest

over the long-term. The increase in the number of cars we produce relative to the number of automotive collectors and

purchasers in the secondary market may adversely affect our cars’ value as collectible items and in the secondary market

more broadly.

If there is a change in collector appetite or damage to the Ferrari brand, our ties to, and the support we receive from,

this community may be diminished. Such a loss of enthusiasm for our cars from the automotive collectors’ community could

harm the perception of the Ferrari brand and adversely impact our sales and profitability.

Our business is subject to changes in client preferences and trends in the automotive and luxury industries.

Our continued success depends in part on our ability to originate and define products and trends in the automotive

and luxury industries, as well as to anticipate and respond promptly to changing consumer demands and automotive trends in

the design, styling, technology, production, merchandising and pricing of our products. Our products must appeal to a client

base whose preferences cannot be predicted with certainty and are subject to rapid change. Evaluating and responding to

client preferences has become even more complex in recent years, due to our expansion in new geographical markets. The

introduction of hybrid and electric technology and the associated changes in customer preferences that may follow are also a

challenge we will face in future periods. See also “If we are unable to keep up with advances in high performance car

technology, our brand and competitive position may suffer” and “The introduction of hybrid and electric technology in our

cars is costly and its long-term success is uncertain”. In addition, there can be no assurance that we will be able to produce,

distribute and market new products efficiently or that any product category that we may expand or introduce will achieve

sales levels sufficient to generate profits. We will encounter this risk, for example, as we introduce the Purosangue, a luxury

high performance vehicle within the GT range that we are developing and is expected to commence production in 2022 with

deliveries starting in 2023. Furthermore this risk is particularly pronounced as we expand in accordance with our strategy into

adjacent segments of the luxury industry, where we do not have a level of experience and market presence comparable to the

one we have in the automotive industry. Any of these risks could have a material adverse effect on our business, results of

operations and financial condition.

Demand for luxury goods, including luxury performance cars, is volatile, which may adversely affect our operating

results.

Volatility of demand for luxury goods, in particular luxury performance cars, may adversely affect our business,

operating results and financial condition. The market in which we sell our cars is subject to volatility in demand. Demand for

luxury automobiles depends to a large extent on general, economic, political and social conditions in a given market as well

as the introduction of new vehicles and technologies. As a luxury performance car manufacturer and low volume producer,

we compete with larger automobile manufacturers many of which have greater financial resources in order to withstand

changes in the market and disruptions in demand. Demand for our cars may also be affected by factors directly impacting the

cost of purchasing and operating automobiles, such as the availability and cost of financing, prices of raw materials and parts

and components, fuel costs and governmental regulations, including tariffs, import regulation and other taxes, including taxes

on luxury goods, resulting in limitations to the use of high performance sports cars or luxury goods more generally. Volatility

in demand may lead to lower car unit sales, which may result in downward price pressure and adversely affect our business,

operating results and financial condition. The impact of a luxury market downturn may be particularly pronounced for the

most expensive among our car models, which generate a more than proportionate amount of our profits, therefore

exacerbating the impact on our results. In addition, these effects may have a more pronounced impact on us given our low

volume strategy and relatively smaller scale as compared to large global mass-market automobile manufacturers.

We face competition in the luxury performance car industry.

We face competition in all product categories and markets in which we operate. We compete with other international

luxury performance car manufacturers which own and operate well-known brands of high-quality cars, some of which form

part of larger automotive groups and may have greater financial resources and bargaining power with suppliers than we do,

particularly in light of our policy to maintain low volumes in order to preserve and enhance the exclusivity of our cars. In

addition, several other manufacturers have recently entered or are attempting to enter the upper end of the luxury

performance car market, including with advanced electric technology, thereby increasing competition. We believe that we

compete primarily on the basis of our brand image, the performance and design of our cars, our reputation for quality and the

driving experience for our customers. If we are unable to compete successfully, our business, results of operations and

financial condition could be adversely affected.

Our controlled growth strategy exposes us to risks.

Our growth strategy includes a controlled expansion of our sales and operations, including the launching of new car

models and expanding sales, as well as dealer operations and workshops, in targeted growth regions internationally. In

particular, our growth strategy requires us to expand operations in regions that we have identified as having relatively high

growth potential. We may encounter difficulties in entering and establishing ourselves in these markets, including in

establishing new successful dealership networks and facing more significant competition from competitors that are already

present in those regions.

Our growth depends on the continued success of our existing cars, as well as the successful introduction of new cars.

Our ability to create new cars and to sustain existing car models is affected by whether we can successfully anticipate and

respond to consumer preferences and car trends. The failure to develop successful new cars or delays in their launch that

could result in others bringing new products and leading-edge technologies to the market first, could compromise our

competitive position and hinder the growth of our business. As part of our growth strategy, we plan to broaden the range of

our models to capture additional customer demand for different types of vehicles and modes of utilization. At our Capital

Markets Day in September 2018, we announced our plan to introduce 15 new models in the 2019-2022 period (which is

unprecedented for Ferrari over a similar time period), including the Icona limited editions, a concept that takes inspiration

from our iconic cars of the past and interprets them in a modern way with innovative technology and materials. In the GT

range, we are developing a luxury high performance vehicle, the Purosangue, and we are developing a new line of cars

rapidly expand the use of hybrid and electric technology in our road cars, consistent with customer preferences and broader

industry trends. While we will seek to ensure that these changes remain fully consistent with the Ferrari car identity, we

cannot be certain that they will prove profitable and commercially successful.

Our growth strategy may expose us to new business risks that we may not have the expertise, capability or the

systems to manage. This strategy will also place significant demands on us by requiring us to continuously evolve and

improve our operational, financial and internal controls. Continued expansion also increases the challenges involved in

maintaining high levels of quality, management and client satisfaction, recruiting, training and retaining sufficiently skilled

management, technical and marketing personnel. If we are unable to manage these risks or meet these demands, our growth

prospects and our business, results of operations and financial condition could be adversely affected.

We continuously improve our international network footprint and skill set. We also plan to open additional retail

stores in international markets. We do not yet have significant experience directly operating in many of these markets, and in

many of them we face established competitors. Many of these countries have different operational characteristics, including

but not limited to employment and labor, transportation, logistics, real estate, environmental regulations and local reporting or

legal requirements.

Consumer demand and behavior, as well as tastes and purchasing trends may differ in these markets, and as a result,

sales of our products may not be successful, or the margins on those sales may not be in line with those we currently

anticipate. Furthermore, such markets will have upfront short-term investment costs that may not be accompanied by

sufficient revenues to achieve typical or expected operational and financial performance and therefore may be dilutive to us

in the short-term. In many of these countries, there is significant competition to attract and retain experienced and talented

employees.

Consequently, if our international expansion plans are unsuccessful, our business, results of operations and financial

condition could be materially adversely affected.

Our low volume strategy may limit potential profits, and if volumes increase our brand exclusivity may be eroded.

A key to the appeal of the Ferrari brand and our marketing strategy is the aura of exclusivity and the sense of luxury

which our brand conveys. A central facet to this exclusivity is the limited number of models and cars we produce and our

strategy of maintaining our car waiting lists to reach the optimal combination of exclusivity and client service. Our low

volume strategy is also an important factor in the prices that our clients are willing to pay for our cars. This focus on

maintaining exclusivity limits our potential sales growth and profits compared to manufacturers less reliant on the exclusivity

of their products.

On the other hand, our current growth strategy contemplates a measured but significant increase in car sales above

current levels as we target a larger customer base and modes of use, we increase our focus on GT cars, and our product

portfolio evolves with a broader product range. We sold 11,155 cars in 2021 compared to 7,255 cars in 2014, and sales are

expected to continue to increase gradually.

In pursuit of our strategy, we may be unable to maintain the exclusivity of the Ferrari brand. If we are unable to

balance brand exclusivity with increased production, we may erode the desirability and ultimately the consumer demand or

relative pricing for our cars. As a result, if we are unable to increase car production meaningfully or introduce new car

models without eroding the image of exclusivity in our brand we may be unable to significantly increase our revenues.

The small number of car models we produce and sell may result in greater volatility in our financial results.

We depend on the sales of a small number of car models to generate our revenues. Our current product range

consists of eight range models (six sports cars and two GT cars), two special series models and three strictly limited edition

Icona models. While we anticipate expanding our car offerings as part of our growth strategy, through our previously

announced plan to introduce 15 new products in the 2019-2022 period, a limited number of models will continue to account

for a large portion of our revenues at any given time in the foreseeable future, compared to other automakers. Therefore, a

single unsuccessful new model would harm us more than it would other automakers. There can be no assurance that our cars

will continue to be successful in the market, or that we will be able to launch new models on a timely basis compared to our

competitors. It generally takes several years from the beginning of the development phase to the start of production for a new

model and the car development process is capital intensive. As a result, we would likely be unable to replace quickly the

revenue lost from one of our main car models if it does not achieve market acceptance. Furthermore, our revenues and profits

may also be affected by our special series and limited edition models (including the Icona limited editions) that we launch

from time to time and which are typically priced higher than our range models. There can be no assurance that we will be

successful in developing, producing and marketing additional new cars (including our special series and limited edition

models) to sustain sales growth in the future.

Global economic conditions, pandemics and macro events may adversely affect us.

Our sales volumes and revenues may be affected by overall general economic conditions within the various

countries in which we operate. Deteriorating general economic conditions may affect disposable incomes and reduce

consumer wealth impacting client demand, particularly for luxury goods, which may negatively impact our profitability and

put downward pressure on our prices and volumes. Furthermore, during recessionary periods, social acceptability of luxury

purchases may decrease and higher taxes may be more likely to be imposed on certain luxury goods including our cars, which

may affect our sales. Adverse economic conditions may also affect the financial health and performance of our dealers in a

manner that will affect sales of our cars or their ability to meet their commitments to us.

The luxury performance car market is generally affected by global macroeconomic conditions and many factors

affect the level of consumer spending in the luxury performance car industry, including the state of the economy as a whole,

stock market performance, interest and exchange rates, inflation, political uncertainty, the availability of consumer credit, tax

rates, unemployment levels and other matters that influence consumer confidence. In general, although our sales have

historically been comparatively resilient in periods of economic turmoil, sales of luxury goods tend to decline during

recessionary periods when the level of disposable income tends to be lower or when consumer confidence is low. Significant

inflationary pressures appeared in 2021 in many of the markets in which we operate and this trend has continued in early

2022. If this trend continues going forward, we could experience an increase in the costs we incur for raw materials, utilities

or services, which could adversely affect our business and results of operations if we are not able to pass on the increased

costs to our customers or successfully implement other mitigating actions. Furthermore, following the recent rise in inflation,

many central banks are signaling that interest rate increases may be expected in the coming months, which is in turn expected

to increase our cost of borrowing and the market rates for new car financing as well. Such increases could impact our ability

to obtain affordable financing or could make our cars less affordable to clients, which could cause consumers to delay the

purchase of our cars or to purchase less expensive cars.

We are also susceptible to risks relating to epidemics and pandemics of diseases. See “We are subject to risks

related to the COVID-19 pandemic that may materially and adversely affect our business”.

We distribute our products internationally and we may be affected by downturns in general economic conditions or

uncertainties regarding future economic prospects that may impact the countries in which we sell a significant portion of our

products. In particular, the majority of our current sales are in the EU and in the United States; if we are unable to expand in

other growth markets, a downturn in mature economies such as the EU and the United States may negatively affect our

financial performance. In addition, uncertainties regarding future trade arrangements and industrial policies in various

countries or regions, such as in the United Kingdom following the exit from the European Union (see further “We may be

adversely affected by the UK’s exit from the European Union (Brexit)”) create additional macroeconomic risk. In the United

States, any policy to discourage import into the United States of vehicles produced elsewhere could adversely affect our

operations. Any new policies may have an adverse effect on our business, financial condition and results of operations.

Although Mainland China, Hong Kong and Taiwan only represented approximately 8 percent of our net revenues in 2021 and

is expected to represent a limited proportion of our growth in the short term, slowing economic conditions in Mainland

China, Hong Kong and Taiwan may adversely affect our revenues in that region. A significant decline in the EU, the global

economy or in the specific economies of our markets, or in consumers’ confidence, could have a material adverse effect on

our business. See also “Developments in China and other growth markets may adversely affect our business”.

Additionally, sanctions and export controls which could be introduced as a result of geopolitical tensions and

conflicts could adversely affect, directly or indirectly, our supply chain and customers, as well as the global financial markets

and financial services industry. 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”.

Developments in China and other growth markets may adversely affect our business.

We operate in a number of growth markets, both directly and through our dealers. We believe we have potential for

further success in new geographies, in particular in China, but also more generally in Asia, recognizing the increasing

personal wealth in these markets. While demand in these markets has increased in recent years due to sustained economic

growth and growth in personal income and wealth, we are unable to foresee the extent to which economic growth will be

sustained. For example, rising geopolitical tensions and potential slowdowns in the rate of growth there and in other emerging

markets could limit the opportunity for us to increase unit sales and revenues in those regions in the near term.

Our exposure to growth countries is likely to increase, as we pursue expanded sales in such countries. Economic and

political developments in growth markets, including economic crises or political instability, have had and could have in the

future material adverse effects on our results of operations and financial condition. Further, in certain markets in which we or

our dealers operate, required government approvals may limit our ability to act quickly in making decisions on our operations

in those markets. Other government actions may also impact the market for luxury goods in these markets, such as tax

changes or the active discouragement of luxury purchases. Consumer spending habits in these markets may also change due

to other factors that are outside of our control. For instance, since August 2021 the President of the People’s Republic of

China has repeatedly signaled the government’s intention to regulate the spending patterns of individuals and families with

ultra-high incomes and encourage high-income groups and enterprises to return more to society. While no regulatory action

has been taken to date, similar statements by governmental authorities may affect the social acceptability of spending on

luxury goods.

Maintaining and strengthening our position in these growth markets is a relevant component of our global growth

strategy. However, initiatives from several global luxury automotive manufacturers have increased competitive pressures for

luxury cars in several growth markets. As these markets continue to grow, we anticipate that additional competitors, both

international and domestic, will seek to enter these markets and that existing market participants will try to aggressively

protect or increase their market share. Increased competition may result in pricing pressures, reduced margins and our

inability to gain or hold market share, which could have a material adverse effect on our results of operations and financial

condition. See also “Global economic conditions, pandemics and macro events may adversely affect us”.

We may be adversely affected by the UK’s exit from the European Union (Brexit).

In a June 23, 2016 referendum, the United Kingdom voted to terminate the UK’s membership in the European

Union (“Brexit”). The UK ceased to be a member of the European Union on January 31, 2020. On December 24, 2020, the

European Union and the UK announced that they had reached a new bilateral trade and cooperation agreement governing

their future relationship (the “EU-UK Trade and Cooperation Agreement”) which was formally approved by the European

Council on December 29, 2020 and by the UK parliament on December 30, 2020. The EU-UK Trade and Cooperation

Agreement was subsequently ratified by the European Parliament and entered into force on May 1, 2021.

Under the terms of the EU-UK Trade and Cooperation Agreement, exports of cars between the European Union and

the United Kingdom are exempt from tariffs, to the extent the goods contain a certain quantity of EU or UK inputs, as

applicable. The application of such rules may result in increased costs for us or for our suppliers (which, in turn, they could

seek to transfer to us), and difficulties in the procurement of parts. In addition, the new customs procedures set forth in the

EU-UK Trade and Cooperation Agreement may result in increased operational complexity, with full import controls for

goods being imported from the European Union to the United Kingdom expected to be gradually introduced by the United

Kingdom throughout 2022. While the EU-UK Trade and Cooperation Agreement provides clarity with respect to the intended

relationship between the European Union and the United Kingdom going forward, uncertainty remains around the details of

such relationship, which remain in progress and could evolve over time, and the full extent of the consequences of Brexit.

Brexit could also negatively impact economic conditions in Europe more generally, which in turn could adversely impact

global economic conditions. In addition, Brexit may contribute to significant volatility in exchange rates. In 2021,

approximately 11 percent of our net revenues were generated in the UK; therefore, any material adverse effect of Brexit on

global or regional economic or market conditions could adversely affect our business, results of operations and financial

condition as customers may reduce or delay spending decisions on our products.

Our success depends largely on the ability of our current management team to operate and manage effectively.

Our success depends on the ability of our senior executives and other members of management to effectively

manage our business as a whole and individual areas of the business. Most of our senior executives and employees, including

many highly skilled engineers, technicians and artisans, are required to work from our offices and production facilities in and

around Maranello, Italy. If we were to lose the services of any of these senior executives or key employees, this could have a

material adverse effect on our business, operating results and financial condition. We have developed incentive plans aimed

at retaining and incentivizing our senior executives and employees, as well as management succession plans that we believe

are appropriate in the circumstances, although it is difficult to predict with any certainty that we will replace these individuals

with persons of equivalent experience and capabilities. If we are unable to find adequate replacements or to attract, retain and

incentivize senior executives, other key employees or new qualified personnel, our business, results of operations and

financial condition may suffer.

We rely on our dealer network to provide sales and services.

We do not own our Ferrari dealers and virtually all of our sales are made through our network of dealerships located

throughout the world. If our dealers are unable to provide sales or service quality that our clients expect or do not otherwise

adequately project the Ferrari image and its aura of luxury and exclusivity, the Ferrari brand may be negatively affected. We

depend on the quality of our dealership network and our business, operating results and financial condition could be

adversely affected if our dealers suffer financial difficulties or otherwise are unable to perform to our expectations.

Furthermore, we may experience disagreements or disputes in the course of our relationship with our dealers or upon

termination which may lead to financial costs, disruptions and reputational harm.

Our growth strategy also depends on our ability to attract a sufficient number of quality new dealers to sell our

products in new areas. We may face competition from other luxury performance car manufacturers in attracting quality new

dealers, based on, among other things, dealer margin, incentives and the performance of other dealers in the region. If we are

unable to attract a sufficient number of new Ferrari dealers in targeted growth areas, our prospects could be materially

adversely affected.

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.

Our business depends on a significant number of suppliers, which provide the raw materials, components, parts and

systems we require to manufacture cars and parts and to operate our business. We use a variety of raw materials in our

business, including aluminum, and precious metals such as palladium and rhodium. We source materials from a limited

number of suppliers. We cannot guarantee that we will be able to maintain access to these raw materials, and in some cases

this access may be affected by factors outside of our control and the control of our suppliers. In addition, prices for these raw

materials fluctuate and while we seek to manage this exposure, we may not be successful in mitigating these risks.

As with raw materials, we are also at risk of supply disruption and shortages in parts and components we purchase

for use in our cars. We source a variety of key components from third parties, including transmissions, brakes, driving-safety

systems, navigation systems, mechanical, electrical and electronic parts, plastic components as well as castings and tires,

which makes us dependent upon the suppliers of such components. In coming years, we will also require a greater number of

components for hybrid and electric engines as we introduce hybrid and electric technology in our cars, and we expect

producers of these components will be called upon to increase the levels of supply as the shift to hybrid or electric technology

gathers pace in the industry. While we obtain components from multiple sources whenever possible, similar to other small

volume car manufacturers, most of the key components we use in our cars are purchased by us from single source suppliers.

We generally do not qualify alternative sources for most of the single-sourced components we use in our cars and we do not

maintain long-term agreements with a number of our suppliers. Furthermore, we have limited ability to monitor the financial

stability of our suppliers.

While we believe that we may be able to establish alternate supply relationships and can obtain or engineer

replacement components for our single-sourced components, we may be unable to do so in the short term, or at all, at prices

or costs that we believe are reasonable. Qualifying alternate suppliers or developing our own replacements for certain highly

customized components of our cars may be time consuming, costly and may force us to make costly modifications to the

designs of our cars. For example, defective airbags manufactured by Takata Corporation (“Takata”), our former principal

supplier of airbags, have led to widespread recalls by several automotive manufacturers starting in 2015, including us (see

further “Car recalls may be costly and may harm our reputation”; see also “Overview of Our Business—Regulatory Matters

—Vehicle safety”). Following the acquisition of Takata by Key Safety Systems (“KSS”) in April 2018, Joyson Safety

Systems, which is the combined company of Takata and KSS following the acquisition, is our principal supplier of the

airbags installed in our cars. Failure by Joyson Safety Systems to continue the supply of airbags may cause significant

disruption to our operations.

In the past, we have replaced certain suppliers because they failed to provide components that met our quality

control standards. The loss of any single or limited source supplier or the disruption in the supply of components from these

suppliers could lead to delays in car deliveries to our clients, which could adversely affect our relationships with our clients

and also materially and adversely affect our operating results and financial condition. The supply of raw materials, parts and

components may also be disrupted or interrupted by natural disasters, or by unexpected fluctuations in market demand and

supply, such as the ongoing global shortage of semiconductors that started in 2021, which is impacting the automotive

industry in particular. If any major disasters occur, such as earthquakes, fires, floods, hurricanes, wars, terrorist attacks,

pandemics or other events, our supply chain may be disrupted, which may stop or delay production and shipment of our cars.

As a result of the current geopolitical tensions and conflict between Russia and Ukraine, and the recent recognition by Russia

of the independence of the self-proclaimed republics of Donetsk and Luhansk, in the Donbas region of Ukraine, the

governments of the United States, the European Union, Japan and other jurisdictions have recently announced the imposition

of sanctions on certain industry sectors and parties in Russia and the regions of Donetsk and Luhansk, as well as enhanced

export controls on certain products and industries. These and any additional sanctions and export controls, as well as any

counterresponses by the governments of Russia or other jurisdictions, could adversely affect, directly or indirectly, our supply

chain, with negative implications on the availability and prices of raw materials, and our customers, as well as the global

financial markets and financial services industry. See also “We are subject to risks related to the COVID-19 pandemic that

may materially and adversely affect our business” for a discussion of the COVID-19 pandemic, which may affect our supply

chain directly or indirectly.

Changes in our supply chain have in the past resulted and may in the future result in increased costs and delays in

car production. We have also experienced cost increases from certain suppliers in order to meet our quality targets and

development timelines and because of design changes that we have made, and we may experience similar cost increases in

the future. We are negotiating with existing suppliers for cost reductions, seeking new and less expensive suppliers for certain

parts, and attempting to redesign certain parts to make them less expensive to produce. If we are unsuccessful in our efforts to

control and reduce supplier costs while maintaining a stable source of high quality supplies, our operating results will suffer.

Additionally, cost reduction efforts may disrupt our normal production processes, thereby harming the quality or volume of

our production.

Furthermore, if our suppliers fail to provide components in a timely manner or at the level of quality necessary to

manufacture our cars, our clients may face longer waiting periods which could result in negative publicity, harm our

reputation and relationship with clients and have a material adverse effect on our business, operating results and financial

condition.

We depend on our manufacturing facilities in Maranello and Modena.

We assemble all of the cars that we sell and manufacture, and all of the engines we use in our cars and sell to

Maserati, at our production facility in Maranello, Italy, where we also have our corporate headquarters. We manufacture all

of our car chassis in a nearby facility in Modena, Italy. Our Maranello or Modena plants could become unavailable either

permanently or temporarily for a number of reasons, including contamination, power shortage or labor unrest. Alternatively,

changes in law and regulation, including export, tax and employment laws and regulations, or economic conditions, including

wage inflation, could make it uneconomic for us to continue manufacturing our cars in Italy. In the event that we were unable

to continue production at either of these facilities or it became uneconomic for us to continue to do so, we would need to seek

alternative manufacturing arrangements which would take time and reduce our ability to produce sufficient cars to meet

demand. Moving manufacturing to other locations may also affect the perception of our brand and car quality among our

clients. Such a transfer would materially reduce our revenues and could require significant investment, which as a result

could have a material adverse effect on our business, results of operations and financial condition.

Maranello and Modena are located in the Emilia-Romagna region of Italy which has the potential for seismic

activity. For instance, in 2012 a major earthquake struck the region, causing production at our facilities to be temporarily

suspended for one day. If major disasters such as earthquakes, fires, floods, hurricanes, wars, terrorist attacks, pandemics or

other events occur, our headquarters and production facilities may be seriously damaged, or we may stop or delay production

and shipment of our cars. See also “We are subject to risks related to the COVID-19 pandemic that may materially and

adversely affect our business” for a discussion of the COVID-19 pandemic. Such damage from disasters or unpredictable

events could have a material adverse impact on our business, results from operations and financial condition.

We rely on our licensing and franchising partners to preserve the value of our licenses and the failure to maintain such

partners could harm our business.

We currently have multi-year agreements with licensing partners for various Ferrari-branded products in the sports,

lifestyle and luxury retail segments. We also have multi-year agreements with franchising partners for our Ferrari stores and

theme park. In the future, we may enter into additional licensing or franchising arrangements. Many of the risks associated

with our own products, including risks relating to the image of the Ferrari brand and its aura of exclusivity, as well as to the

demand for luxury goods, also apply to our licensed products and franchised stores. In addition, there are problems that our

licensing or franchising partners may experience, including risks associated with each licensing partner’s ability to obtain

capital, manage its labor relations, maintain relationships with its suppliers, manage its credit and bankruptcy risks, and

maintain client relationships. While we maintain significant control over the products produced for us by our licensing

partners and the franchisees running our Ferrari stores and theme parks, any of the foregoing risks, or the inability of any of

our licensing or franchising partners to execute on the expected design and quality of the licensed products, Ferrari stores and

theme park, or otherwise exercise operational and financial control over its business, may result in loss of revenue and

competitive harm to our operations in the product categories where we have entered into such licensing or franchising

arrangements. While we select our licensing and franchising partners with care, any negative publicity surrounding such

partners could have a negative effect on licensed products, the Ferrari stores and theme parks or the Ferrari brand. Further,

while we believe that we could replace our existing licensing or franchising partners if required, our inability to do so for any

period of time could materially adversely affect our revenues and harm our business.

In connection with our new brand diversification strategy announced in November 2019, we continue to streamline

our existing arrangements with licensing partners and decrease the volume of our licensing business. This may adversely

affect our results from brand activities, particularly in the short to medium term while our broader brand diversification

strategy is carried out.

We depend on the strength of our trademarks and other intellectual property rights.

Given the importance of our brand’s recognition on our financial performance and strategy, we believe that our

trademarks and other intellectual property rights are fundamental to our success and market position. Therefore, our business

depends on our ability to protect and promote our trademarks and other intellectual property rights. Accordingly, we devote

substantial efforts to the establishment and protection of our trademarks and other intellectual property rights such as

registered designs and patents on a worldwide basis. We believe that our trademarks and other intellectual property rights are

adequately supported by applications for registrations, existing registrations and other legal protections in our principal

markets. However, we cannot exclude the possibility that our intellectual property rights may be challenged by others, or that

we may be unable to register our trademarks or otherwise adequately protect them in some jurisdictions, especially in those

foreign countries that do not respect and protect intellectual property rights to the same extent as do the United States, Japan

and European countries. If a third party were to register our trademarks, or similar trademarks, in a country where we have

not successfully registered such trademarks, it could create a barrier to our commencing trade under those marks in that

country.

We may fail to adequately protect our intellectual and industrial property rights against infringement or misappropriation

by third parties.

Our success and competitive positioning depend on, among other factors, our registered intellectual property rights,

as well as other industrial or intellectual property rights, including confidential know-how, trade secrets, database rights and

copyrights. To protect our intellectual property, we rely on intellectual property laws, agreements for the protection of trade

secrets, confidentiality and non-disclosure agreements, and other contractual means. Such measures, however, may be

inadequate and our intellectual property rights may be infringed or challenged by third parties, and our confidential know-

how or trade secrets could be misappropriated or disclosed to the public without our consent. Consultants, vendors and

current and former employees, for example, could violate their confidentiality obligations and restrictions on the use of

Ferrari’s intellectual property. Ferrari may not be able to prevent such infringements, misappropriations or disclosures, with

potential adverse effects on our brand, reputation and business. In particular, our components may be subject to product

piracy, where our components are counterfeited, which may result in reputational risk for Ferrari. The risks described above

arise particularly in our Brand activities (see “Overview of Our Business—Brand Diversification Strategy”).

If we fail to adequately protect our intellectual property rights, this may adversely affect our results of operations

and financial condition, as other manufacturers may be able to manufacture similar products at lower cost, with adverse

effects on our competitive position. In addition, counterfeited products, or products illegally branded as “Ferrari”, may

damage our brand. In addition, we may incur high costs in reacting to infringements or misappropriations of our intellectual

property rights.

Third parties may claim that we infringe their intellectual property rights.

We believe that we hold all the rights required for our business operations (including intellectual property rights and

third-party licenses). However, we are exposed to potential claims from third parties alleging that we infringe their

intellectual property rights, since many competitors and suppliers also submit patent applications for their inventions and

secure patent protection or other intellectual property rights. If we are unsuccessful in defending against any such claim, we

may be required to pay damages or comply with injunctions which may disrupt our operations. We may also as a result be

forced to enter into royalty or licensing agreements on unfavorable terms or to redesign products to comply with third parties’

intellectual property rights.

Our revenues from Formula 1 activities may decline and our related expenses may grow.

Revenues from our Formula 1 activities depend principally on the income from our sponsorship agreements and on

our share of Formula 1 revenues from broadcasting and other sources. See “Overview of Our Business—Formula 1

Activities.” If we are unable to renew our existing sponsorship agreements or if we enter into new or renewed sponsorship

agreements with less favorable terms, our revenues would decline. In addition, our share of profits related to Formula 1

activities may decline if either our team’s performance worsens compared to other competing teams, or if the overall Formula

1 business suffers, including potentially as a result of increasing popularity of the FIA Formula E championship or other

racing events. Furthermore, in order to compete effectively on track we have been investing significant resources in research

and development and to competitively compensate the best available drivers and other racing team members. These expenses

also vary based on changes in Formula 1 regulations that require modification to our racing engines and cars. These expenses

are expected to continue, and may grow further, including as a result of any changes in Formula 1 regulations, which would

negatively affect our results of operations.

On October 31, 2019, the World Council (Formula 1’s legislative body) approved new technical, sporting and

financial rules, following the extensive talks held in the past two years among the owners of the Formula 1 business and all

teams with regards to the arrangements relating to the participation of Ferrari and the other teams competing in the

championship in the period following the 2020 expiration of the previous arrangements between racing teams and the

operator of Formula 1. The new rules provide for, among other things, a new car design, a cap of $142 million in 2022 and

$137 million in 2023 (assuming 23 grand prix races in both years), to be further reduced in subsequent years, for all costs and

expenses covering on-track performance (excluding, among others, the activities to enable the supply of power units,

marketing costs, drivers’ salaries and the top three personnel at each team), limits on car upgrades over race weekends,

restrictions on the number of times that certain components can be replaced during a race and the standardization of certain

parts. While it was originally planned that the new sporting and technical regulations would come into effect in 2021, in

March 2020, Formula 1, FIA and the racing teams agreed to postpone effectiveness of such regulations to 2022 due to the

disruption to the 2020 Formula 1 season caused by COVID-19. The financial regulations (including the budget cap) came

into force on January 1, 2021. Compliance with the final set of rules approved by the World Council requires significant

changes to our racing cars, processes and operations, and the rules may be subject to further changes in the future. If we are

unable to effectively adapt our cars to comply with changes in Formula 1 regulations, our performance at the races may

suffer. These changes may result in adverse effects on our revenues and results of operations. In particular, the new cap on

expenses affects the amount of resources that we are allowed to allocate to Formula 1 activities, with potential adverse effects

on our team’s performance if we are not able to optimize such resources.

Engine production revenues are dependent on Maserati’s ability to sell its cars.

We produce V8 and V6 engines for Maserati. We have a multi-year arrangement with Maserati to provide V6

engines through 2023. While Maserati is required to compensate us for certain production costs, in the event that the sales of

Maserati cars decline compared to the contractual requirements of our engine production agreements with Maserati, our

revenues from the sale of engines may be adversely affected.

We face risks associated with our international operations, including unfavorable regulatory, political, tax and labor

conditions and establishing ourselves in new markets, all of which could harm our business.

We currently have international operations and subsidiaries in various countries and jurisdictions in Europe, North

America and Asia that are subject to the legal, political, regulatory, tax and social requirements and economic conditions in

these jurisdictions. Additionally, as part of our growth strategy, we will continue to expand our sales, maintenance, and repair

services internationally. However, such expansion requires us to make significant expenditures, including the establishment

of local operating entities, hiring of local employees and establishing facilities in advance of generating any revenue. We are

subject to a number of risks associated with international business activities that may increase our costs, impact our ability to

sell our cars and require significant management attention. These risks include:

•conforming our cars to various international regulatory and safety requirements where our cars are sold, or

homologated;

•difficulty in establishing, staffing and managing foreign operations;

•difficulties attracting clients in new jurisdictions;

•foreign government taxes, regulations and permit requirements, including foreign taxes that we may not be

able to offset against taxes imposed upon us in Italy;

•fluctuations in foreign currency exchange rates and interest rates, including risks related to any interest rate

swap or other hedging activities we undertake;

•our ability to enforce our contractual and intellectual property rights, especially in those foreign countries that

do not respect and protect intellectual property rights to the same extent as do the United States, Japan and

European countries, which increases the risk of unauthorized, and uncompensated, use of our technology;

•European Union and foreign government trade restrictions, customs regulations, tariffs and price or exchange

controls;

•foreign labor laws, regulations and restrictions;

•preferences of foreign nations for domestically produced cars;

•changes in diplomatic and trade relationships;

•political instability, natural disasters, war or events of terrorism; and

•the strength of international economies.

If we fail to successfully address these risks, many of which we cannot control, our business, operating results and

financial condition could be materially harmed.

New laws, regulations, or policies of governmental organizations regarding increased fuel economy requirements,

reduced greenhouse gas or pollutant emissions, or vehicle safety, or changes in existing laws, may have a significant

effect on our costs of operation and/or how we do business.

We are subject throughout the world to comprehensive and constantly evolving laws, regulations and policies. We

expect the extent of the legal and regulatory requirements affecting our business and our costs of compliance to continue to

increase significantly in the future. In Europe and the United States, for example, significant governmental regulation is

driven by environmental, fuel economy, vehicle safety and noise emission concerns. Evolving regulatory requirements could

significantly affect our product development plans and may limit the number and types of cars we sell and where we sell

them, which may affect our revenue. Governmental regulations may increase the costs we incur to design, develop and

produce our cars and may affect our product portfolio. Regulation may also result in a change in the character or performance

characteristics of our cars which may render them less appealing to our clients. We anticipate that the number and extent of

these regulations, and their effect on our cost structure and product line-up, will increase significantly in the future.

Current European legislation limits fleet average greenhouse gas emissions for new passenger cars. Due to our small

volume manufacturer (“SVM”) status we benefit from a derogation from the existing emissions requirement and we are

instead required to meet, by 2021, alternative targets for our fleet of EU-registered vehicles. Despite global shipments

exceeding 10,000 vehicles in 2019, Ferrari still qualifies as an SVM under EU regulations, since its total number of registered

vehicles in the EU per year is less than 10,000 vehicles. On July, 14, 2021, the European Commission published a proposal to

amend the EU 2019/631, which, among other things, would repeal from 2030 the derogation granted to SMVs. If the

proposed amendment is confirmed in the final rule, this may have a significant effect on our costs.

Switzerland has historically adopted the targets approved by the European Commission. On November 24, 2021, the

Swiss Federal Council amended the CO2 emission regulations for cars and vans and starting from January 1, 2022 the

vehicles of niche and small volume manufacturers will have to meet the same CO2 emission targets as those of large volume

manufacturers. This change in legislation is expected to result in additional costs for Ferrari, either through penalties or the

purchase of emissions credits from other manufacturers.

In the United States, the U.S. Environmental Protection Agency (“EPA”) and the National Highway Traffic Safety

Administration (“NHTSA”) have set the federal standards for passenger cars and light trucks to meet certain combined

average greenhouse gas (“GHG”) and fuel economy (“CAFE”) levels and more stringent standards have been prescribed for

model years 2017 through 2025. Since Ferrari is considered to be an SVM under EPA GHG regulations (as it produces less

than 5,000 vehicles per model year for the US market), we expect to benefit from a derogation from currently applicable

standards. We also petitioned the EPA for alternative standards for the model years 2017-2021 and 2022-2025, which are

aligned to our technical and economic capabilities. On June 25, 2020, the EPA Administrator signed the final determination

for alternative GHG standards for SVMs for model years 2017 through 2021 and issued final alternative GHG standards for

us and other SVMs. In September 2016 we petitioned the NHTSA for recognition as an independent manufacturer of less

than 10,000 vehicles produced globally and we proposed alternative CAFE standards for model years 2017, 2018 and 2019.

Then, in December, 2017, we amended the petition by proposing alternative CAFE standards for model years 2016, 2017 and

2018 instead, covering also the 2016 model year. In 2019, our global production exceeded 10,000 vehicles, and therefore we

are no longer considered an SVM by the NHTSA for the model year 2019. We previously purchased the CAFE credits

needed to fulfill this deficit. On July 15, 2020, we submitted to the NHTSA a petition for an exemption from the CAFE

standards for the model year 2020. We proceeded with this submission because, although Ferrari originally intended to

produce more than 10,000 vehicles in 2020, actual production was lower than 10,000 vehicles as a result of the COVID-19

pandemic and the related shutdown of our production facilities. Therefore, since we met the NHTSA definition of SVM, we

have requested an alternative fleet average GHG standard for model year 2020. The NHTSA has confirmed that it will not

send a shortfall letter to Ferrari requiring payment of CAFE civil penalties or the application of CAFE credits with regard to

model year 2020 until the NHTSA has ruled on Ferrari’s petitions for an alternative standard. If our petitions are rejected, we

will not be able to benefit from the more favorable CAFE standard levels which we have petitioned for and this may require

us to purchase additional CAFE credits in order to comply with applicable CAFE standards. In 2021, our global production

exceeded 10,000 vehicles again, and therefore we are no longer considered SVM by the NHTSA for the model year 2021.

We already purchased the CAFE credits needed to fulfill our 2021 deficit. We expect to adopt the same approach in the

coming years.

In the United States, considerable uncertainty is associated with emissions regulations in light of changing policies

under the past and newly appointed administration. New regulations are in the process of being developed, and many existing

and potential regulatory initiatives are subject to review by federal or state agencies or the courts. On March, 31, 2020, the

NHTSA and the EPA issued the final Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule (the “SAFE Vehicles Rule”)

setting CAFE and carbon dioxide emissions standards for model years 2021-2026 passenger cars and light trucks. Under the

SAFE Vehicles Rule, the overall stringency of the federal standards is significantly reduced from the levels previously set:

the final rule will increase stringency of CAFE and CO2 emissions standards by 1.5 percent each year through model year

2026, as compared with the previous standards issued in 2012, which would have required annual increases of approximately

5 percent. In May 2021, the NHTSA issued a notice of proposed rulemaking proposing to fully repeal the regulatory text and

appendices promulgated in the SAFE Vehicles Rule. In August 2021, the EPA published a notice of proposed rulemaking

proposing to strengthen federal GHG emissions standards for passenger cars and light trucks by setting stringent requirements

for reductions from model years 2023-2026. Consistent with the EPA approach, in September 2021, NHTSA published a

notice of proposed rulemaking proposing revised fuel economy standards for passenger cars and light trucks for model years

2024-2026. The EPA and the NHTSA did not propose any changes to the regulations regarding SVM status or alternative

standards.

In the state of California (which has been granted special authority under the Clean Air Act to set its own vehicle

emission standards), the California Air Resources Board (“CARB”) has enacted regulations under which manufacturers of

vehicles for model years 2012-2025 which are in compliance with the EPA greenhouse gas emissions regulations are also

deemed to be in compliance with California’s greenhouse gas emission regulations (the so-called “deemed to comply”

option). On December 12, 2018 the CARB amended its existing regulations to clarify that the “deemed-to-comply” provision

would not be available for model years 2021-2025 if the EPA standards for those years were altered via an amendment of

federal regulations. On September 19, 2019, the NHTSA and the EPA established the “One National Program” for fuel

economy regulation, announcing the EPA’s decision to withdraw California’s waiver of preemption under the Clean Air Act,

and by affirming the NHTSA’s authority to set nationally applicable regulatory standards under the preemption provisions of

the Energy Policy and Conservation Act (EPCA). California and other states, along with the cities of Los Angeles and New

York, initiated litigation to challenge this final rule. Several environmental groups have also challenged such final rule.

Ferrari currently avails itself of the “deemed-to-comply” provision to comply with CARB greenhouse gas emissions

regulations. Therefore, depending on future developments, it may be necessary to also petition the CARB for SVM

alternative standards and to increase the number of tests to be performed in order to follow the CARB specific procedures.

In addition, we are subject to legislation relating to the emission of other air pollutants such as, among others, the

EU “Euro 6” standards and Real Driving Emissions (RDE) standards, the “Tier 3” Motor Vehicle Emission and Fuel

Standards issued by the EPA, and the Zero Emission Vehicle regulation in California, which are subject to similar

derogations for SVMs. In March 2020, the European Commission launched a public consultation on its roadmap outlining the

policy options that it could pursue in revising the emission standards for light and heavy duty vehicles (Euro 7). This

initiative is part of the European Green Deal, advocating the European automotive industry’s role as a leader in the global

transition to zero-emission vehicles. More stringent air pollutant emissions standards for combustion engine vehicles are

expected to be set by early 2022.

Depending on the future regulatory developments, the technological solutions required to ensure Euro 7 compliance

may affect customers’ expectations on performance, sound and driving experience. The European Commission is also

expected to assess and evaluate the current noise emissions limits, with the risk of more stringent thresholds.

In relation to the safety legislation framework, in 2016, the NHTSA published guidelines for driver distraction, for

which rulemaking activities have not progressed since early 2017. The costs of compliance associated with these and similar

rulemaking may be substantial.

Other governments around the world, such as those in Canada, South Korea, China and certain Middle Eastern

countries are also creating new policies to address these issues which could be even more stringent than the U.S. or European

requirements. As in the United States and Europe, these government policies if applied to us could significantly affect our

product development plans. In China, for example, Stage IV fuel consumption regulation targeted a national average fuel

consumption of 5.0L/100km by 2020, and the Stage V regulation, issued on December 31, 2019, targets a national average

fuel consumption of 4.0 l/100km by 2025. In addition to the fuel consumption target on the entire fleet, the Chinese

regulation GB 19578-2021 sets specific fuel consumption limits on model types. Currently, this standard is only applicable to

domestic cars, as it is not adopted by the China Certification and Accreditation Administration (CNCA). If this regulation

were also applied to importers, considering the current Ferrari portfolio, only the plug-in hybrid models would be compliant.

In response to severe air quality issues in Beijing and other major Chinese cities, in 2016 the Chinese government

published a more stringent emissions program (National 6), providing two different levels of stringency effective starting

from 2020. Moreover, several autonomous Chinese regions and municipalities have implemented the requirements of the

National 6 program even ahead of the mandated deadlines. During 2020, the Chinese Vehicle Emission Control Center

(VECC) launched the “Pre-study on Next Stage Emission Standards for Light Duty Vehicles”, an ongoing research project

expected to be finalized in a more stringent emission program in the coming years. Depending on the future regulatory

developments, the technological solutions required to ensure the compliance may affect customers’ expectations on

performance, sound and driving experience.

We have lost our status as an SVM for NHSTA in 2019, because our global production exceeded 10,000 vehicles,

but we have not lost our SVM status for EU CO2 regulations or for EPA GHG regulations in the United States. We could

lose our status as an SVM in the EU, the United States and other countries if we do not continue to meet all of the necessary

eligibility criteria under applicable regulations as they evolve, not only in relation to volumes but also in relation to the

conditions of operational independence. In order to meet these criteria we may need to modify our growth plans or other

operations. Furthermore, even if we continue to benefit from derogations as an SVM, we will be subject to alternative

standards that the regulators deem appropriate for our technical and economic capabilities and such alternative standards may

be significantly more stringent than those currently applicable to us.

Under these existing regulations, as well as new or stricter rules or policies, we could be subject to sizable civil

penalties or have to restrict or modify product offerings drastically to remain in compliance. We may have to incur substantial

capital expenditures and research and development expenditures to upgrade products and manufacturing facilities, which

would have an impact on our cost of production and results of operation. For a description of the regulation referred to in the

paragraphs above please see “Overview of Our Business—Regulatory Matters”.

In the future, the advent of self-driving technology may result in regulatory changes that we cannot predict but may

include limitations or bans on human driving in specific areas. In 2020 the European Commission issued its new digital

strategy policies, which represent a priority in the European Commission’s regulatory agenda. Although no regulations have

been issued in this regard, the European Commission has showed a determination to strengthen Europe’s digital sovereignty

and role as a standard setter, with a clear focus on data, technology, and infrastructure.

Similarly, driving bans on combustion engine vehicles could be imposed, particularly in metropolitan areas, as a

result of progress in electric and hybrid technology. On September 23, 2020, the Governor of California issued an executive

order requiring that all in-state sales of new passenger vehicles be zero-emission by 2035. The CARB is developing

regulations to implement such executive order. During 2021, the state of Washington also moved ahead with legislation that

could phase out sales of non-zero-emission vehicles by 2030. In November 2020, the UK Prime Minister, the Transport

Secretary and the Business Secretary announced, in the context of the 10-Point Plan for a Green Industrial Revolution, the

end of the sale of new petrol and diesel cars in the United Kingdom by 2030. This will put the United Kingdom on course to

be the first G7 country to decarbonize cars and vans. Any further similar developments in the future may adversely affect the

demand for our cars and our business.

In September 2017, the Chinese government issued the Administrative Measures on CAFC (Corporate Average Fuel

Consumption) and NEV (New Energy Vehicle) Credits. This regulation establishes mandatory CAFC requirements, while

providing additional flexibilities for SVMs (defined as manufacturers with less than 2,000 units imported in China per year)

that achieve a certain minimum CAFC yearly improvement rate. Following the adoption of the Stage V fuel consumption

regulation, an update to the Administrative Measures on CAFC and NEV credits was published in June 2020. The

Administrative Measures have been extended to 2023. Because our CAFC is expected to exceed the regulatory ceiling, we

will be required to purchase NEV credits. There is no assurance that an adequate market for NEV credits will develop in

China and if we are not able to secure sufficient NEV credits this may adversely affect our business in China.

Several others regulations are also emerging to take into account the non-exhaust emissions such as brake particulate

emissions and the environmental impact of the electric and hybrid vehicles components, with a particular focus on batteries

and waste batteries.

To comply with current and future environmental rules in all markets in which we sell our cars, we may have to

incur substantial capital expenditure and research and development expenditure to upgrade products and manufacturing

facilities, which would have an impact on our cost of production and results of operations.

The introduction of hybrid and electric technology in our cars is costly and its long-term success is uncertain.

We are gradually but rapidly introducing hybrid and electric technology in our cars. In accordance with our strategy,

we believe hybrid and electric technology will be key to providing continuing performance upgrades to our sports car

customers, and will also help us capture the preferences of the urban, affluent GT cars purchasers whom we are increasingly

targeting, while helping us meet increasingly stricter emissions requirements.

In 2021 we launched the 296 GTB, our third production model with Plug-in Hybrid Electric Vehicle (PHEV)

technology, while in 2020 we made the first shipments of the SF90 Stradale, the first series production Ferrari to feature

PHEV architecture, which integrates the internal combustion engine with three electric motors, and the launch of the SF90

Spider, the spider version of the SF90 Stradale and Ferrari’s first plug-in hybrid spider. Additionally, some of our past

models, such as LaFerrari and LaFerrari Aperta, also included hybrid technology. The integration of hybrid and electric

technology more broadly into our car portfolio over time may present challenges and costs. We expect to increase R&D

spending in the medium term particularly on hybrid and electric technology-related projects. Although we expect to price our

hybrid and electric cars appropriately to recoup the investments and expenditures we are making, we cannot be certain that

these expenditures will be fully recovered. In addition, this transformation of our car technology creates risks and

uncertainties such as the impact on driver experience, and the impact on the cars’ residual value over time, both of which may

be met with an unfavorable market reaction. Other manufacturers of luxury sports cars may be more successful in

implementing hybrid and electric technology. In the long-term, although we believe that combustion engines will continue to

be fundamental to the Ferrari driver experience, hybrid and pure electric cars may become the prevalent technology for

performance sports cars thereby displacing combustion engine models. See also “If we are unable to keep up with advances

in high performance car technology, our brand and competitive position may suffer.”

Because hybrid and electric technology is a core component of our strategy, and we expect that a significant portion

of our shipments in the medium term will consist of vehicles that feature hybrid and electric technology, if the introduction of

hybrid and electric cars proves too costly or is unsuccessful in the market, our business and results of operations could be

materially adversely affected.

If our cars do not perform as expected our ability to develop, market and sell our cars could be harmed.

Our cars may contain defects in design and manufacture that may cause them not to perform as expected or that may

require repair. There can be no assurance that we will be able to detect and fix any defects in the cars prior to their sale to

consumers. Our cars may not perform in line with our clients’ evolving expectations or in a manner that equals or exceeds the

performance characteristics of other cars currently available. For example, our newer cars may not have the durability or

longevity of current cars, and may not be as easy to repair as other cars currently on the market. Any product defects or any

other failure of our performance cars to perform as expected could harm our reputation and result in adverse publicity, lost

revenue, delivery delays, product recalls, product liability claims, harm to our brand and reputation, and significant warranty

and other expenses, and could have a material adverse impact on our business, operating results and financial condition.

Car recalls may be costly and may harm our reputation.

We have in the past and we may from time to time in the future be required to recall our products to address

performance, compliance or safety-related issues. We may incur costs for these recalls, including replacement parts and labor

to remove and replace the defective parts. For example, in the course of 2015 and 2016, we issued a series of recalls relating

to defective air bags manufactured by Takata and installed on certain of our models. Also in light of uncertainties in our

ability to recover the recall costs from Takata (which filed for bankruptcy in June 2017 and was later acquired by Key Safety

Systems in April 2018), we recorded a provision regarding this matter in the second quarter of 2016 for an amount of €37

million. This provision has been used over time and amounted to approximately €3 million as of December 31, 2021. For

additional information related to the Takata airbag inflator recalls see “Overview of Our Business—Regulatory Matters—

Vehicle safety”. In addition, regulatory oversight of recalls, particularly in the vehicle safety, has increased recently. Any

product recalls can harm our reputation with clients, particularly if consumers call into question the safety, reliability or

performance of our cars. Any such recalls could harm our reputation and result in adverse publicity, lost revenue, delivery

delays, product liability claims and other expenses, and could have a material adverse impact on our business, operating

results and financial condition.

We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not

able to successfully defend or insure against such claims.

We may become subject to product liability claims, which could harm our business, operating results and financial

condition. The automobile industry experiences significant product liability claims and we have inherent risk of exposure to

claims in the event our cars do not perform as expected or malfunction resulting in personal injury or death. A successful

product liability claim against us could require us to pay a substantial monetary award. Moreover, a product liability claim

could generate substantial negative publicity about our cars and business, adversely affecting our reputation and inhibiting or

preventing commercialization of future cars, which could have a material adverse effect on our brand, business, operating

results and financial condition. While we seek to insure against product liability risks, insurance may be insufficient to protect

against any monetary claims we may face and will not mitigate any reputational harm. Any lawsuit seeking significant

monetary damages may have a material adverse effect on our reputation, business and financial condition. We may not be

able to secure additional product liability insurance coverage on commercially acceptable terms or at reasonable costs when

needed, particularly if we face liability for our products and are forced to make a claim under such a policy.

We are exposed to risks in connection with product warranties as well as the provision of services.

A number of our contractual and legal requirements oblige us to provide extensive warranties to our clients, dealers

and national distributors. There is a risk that, relative to the guarantees and warranties granted, the calculated product prices

and the provisions for our guarantee and warranty risks have been set or will in the future be set too low. There is also a risk

that we will be required to extend the guarantee or warranty originally granted in certain markets for legal reasons, or provide

services as a courtesy or for reasons of reputation where we are not legally obliged to do so, and for which we will generally

not be able to recover from suppliers or insurers.

Our insurance coverage may not be adequate to protect us against all potential losses to which we may be subject, which

could have a material adverse effect on our business.

We maintain insurance coverage that we believe is adequate to cover normal risks associated with the operation of

our business. However, there can be no assurance that any claim under our insurance policies will be honored fully or timely,

our insurance coverage will be sufficient in any respect or our insurance premiums will not increase substantially.

Accordingly, to the extent that we suffer loss or damage that is not covered by insurance or which exceeds our insurance

coverage, or have to pay higher insurance premiums, our financial condition may be affected.

Improper conduct of employees, agents, or other representatives could adversely affect our reputation and our business,

operating results, and financial condition.

Our compliance controls, policies, and procedures may not in every instance protect us from acts committed by our

employees, agents, contractors, or collaborators that would violate the laws or regulations of the jurisdictions in which we

operate, including employment, foreign corrupt practices, environmental, competition, and other laws and regulations. Such

improper actions could subject us to civil or criminal investigations, and monetary and injunctive penalties. In particular, our

business activities may be subject to anticorruption laws, regulations or rules of other countries in which we operate. If we

fail to comply with any of these regulations, it could adversely impact our operating results and our financial condition. In

addition, actual or alleged violations could damage our reputation and our ability to conduct business. Furthermore, detecting,

investigating, and resolving any actual or alleged violation is expensive and can consume significant time and attention of our

executive management.

A disruption in our information technology, including as a result of cybercrimes, could compromise confidential and

sensitive information.

We depend on our information technology and data processing systems to operate our business, and a significant

malfunction or disruption in the operation of our systems, human error, interruption to power supply, or a security breach that

compromises the confidential and sensitive information stored in those systems, could disrupt our business and adversely

impact our ability to compete. Our ability to keep our business operating effectively depends on the functional and efficient

operation by us and our third party service providers of our information, data processing and telecommunications systems,

including our car design, manufacturing, inventory tracking and billing and payment systems. We rely on these systems to

enable a number of business processes and help us make a variety of day-to-day business decisions as well as to track

transactions, billings, payments and inventory. Such systems are susceptible to malfunctions and interruptions due to

equipment damage, power outages, and a range of other hardware, software and network problems. Those systems are also

susceptible to cybercrime, or threats of intentional disruption, which are increasing in terms of sophistication and frequency,

with the consequence that such cyber incidents may remain undetected for long periods of time. For any of these reasons, we

may experience system malfunctions or interruptions. Although our systems are diversified, including multiple server

locations and a range of software applications for different regions and functions, and we periodically assess and implement

actions to ameliorate risks to our systems, a significant or large scale malfunction or interruption of our systems could

adversely affect our ability to manage and keep our operations running efficiently, and damage our reputation if we are

unable to track transactions and deliver products to our dealers and clients. A malfunction that results in a wider or sustained

disruption to our business could have a material adverse effect on our business, results of operations and financial condition.

In addition to supporting our operations, we use our systems to collect and store confidential and sensitive data, including

information about our business, our clients and our employees.

As our technology continues to evolve, we anticipate that we will collect and store even more data in the future, and

that our systems will increasingly use remote communication features that are sensitive to both willful and unintentional

security breaches. Much of our value is derived from our confidential business information, including car design, proprietary

technology and trade secrets, and to the extent the confidentiality of such information is compromised, we may lose our

competitive advantage and our car sales may suffer. We also collect, retain and use certain personal information, including

data we gather from clients for product development and marketing purposes, and data we obtain from employees. Therefore

we are subject to a variety of ever-changing data protection and privacy laws on a global basis, including the EU General

Data Protection Regulation, which came into force on May 25, 2018. To an increasing extent, the functionality and controls

of our cars depend on in-vehicle information technology. The increased demand for a “connected car” has led to increased

digitization of car systems, the wide application of software, and the creation of new, fully digital mobility services. Such

technology is capable of transmitting and storing an increasing amount of personal information belonging to our customers.

Any unauthorized access to in-vehicle IT systems may compromise the car security or the privacy of our customers’

information and expose us to claims as well as reputational damage. Ultimately, any significant compromise in the integrity

of our data security could have a material adverse effect on our business.

Our indebtedness could adversely affect our operations and we may face difficulties in servicing or refinancing our debt.

As of December 31, 2021, our gross consolidated debt was approximately €2,630 million (which includes our

financial services). See “Financial Overview—Liquidity and Capital Resources—Non-GAAP Financial Measures—Net Debt

and Net Industrial Debt” for additional information. Our current and long-term debt requires us to dedicate a portion of our

cash flow to service interest and principal payments and, if interest rates rise, this amount may increase. In addition, our

existing debt may limit our ability to raise further capital or incur additional indebtedness to execute our growth strategy or

otherwise may place us at a competitive disadvantage relative to competitors that have less debt. To the extent we become

more leveraged, the risks described above would increase. We may also have difficulty refinancing our existing debt or

incurring new debt on terms that we would consider to be commercially reasonable, if at all.

Car sales depend in part on the availability of affordable financing.

In certain regions, financing for new car sales has been available at relatively low interest rates for several years due

to, among other things, expansive government monetary policies. To the extent that interest rates may rise generally based on

governmental monetary policies or actions of central banks, market rates for new car financing are expected to rise as well,

which may make our cars less affordable to clients or cause consumers to purchase less expensive cars, adversely affecting

our results of operations and financial condition. Following widespread indications of returning inflation in several major

economies, central banks are signaling that interest rate increases may be expected in coming periods. Additionally, if

consumer interest rates increase substantially or if financial service providers tighten lending standards or restrict their

lending to certain classes of credit, our clients may choose not to, or may not be able to, obtain financing to purchase our cars.

We may not be able to provide adequate access to financing for our dealers and clients, and our financial services

operations may be disrupted.

Our dealers enter into wholesale financing arrangements to purchase cars from us to hold in inventory or to use in

showrooms and facilitate retail sales, and retail clients use a variety of finance and lease programs to acquire cars.

In most markets, we rely either on controlled or associated finance companies or on commercial relationships with

third parties, including third party financial institutions, to provide financing to our dealers and retail clients. Finance

companies are subject to various risks that could negatively affect their ability to provide financing services at competitive

rates, including:

•the performance of loans and leases in their portfolio, which could be materially affected by delinquencies or

defaults;

•higher than expected car return rates and the residual value performance of cars they lease; and

•fluctuations in interest rates and currency exchange rates.

Furthermore, to help fund our retail and wholesale financing business, our financial services companies in the

United States also access forms of funding available from the banking system in each market, including sales or securitization

of receivables either in negotiated sales or through asset-backed financing programs. At December 31, 2021, an amount of

$1,020 million was outstanding under revolving securitizations carried out by Ferrari Financial Services Inc. See “Financial

Overview—Liquidity and Capital Resources—Non-GAAP Financial Measures—Net Debt and Net Industrial Debt” for

additional information. Should we lose the ability to access the securitization market at advantageous terms or at all, the

funding of our controlled or associated finance companies would become more difficult and expensive and our financial

condition may therefore be adversely affected.

Any financial services provider, including our controlled finance companies, will face other demands on its capital,

as well as liquidity issues relating to other investments or to developments in the credit markets. Furthermore, they may be

subject to regulatory changes that may increase their costs, which may impair their ability to provide competitive financing

products to our dealers and retail clients. To the extent that a financial services provider is unable or unwilling to provide

sufficient financing at competitive rates to our dealers and retail clients, such dealers and retail clients may not have sufficient

access to financing to purchase or lease our cars. As a result, our car sales and market share may suffer, which would

adversely affect our results of operations and financial condition.

Our dealer and retail customer financing in Europe are mainly provided through our partnership with FCA Bank

S.p.A. (“FCA Bank”), a joint venture between FCA Italy S.p.A. and Crédit Agricole Consumer Finance S.A. (“CACF”). If

we fail to maintain our partnership with FCA Bank or in the event of a termination of the joint venture or change of control of

one of our joint venture partners, we may not be able to find a suitable alternative partner with similar resources and

experience and continue to offer financing services to support the sales of Ferrari cars in key European markets, which could

adversely affect our results of operations and financial condition. In December 2021, Stellantis N.V. (hereinafter also

“Stellantis” and together with its subsidiaries, the “Stellantis Group”) communicated its intention to create a leading

operational leasing group and enhanced captive finance arm. As part of the proposed transaction, CACF is expected to

acquire the 50 percent stake in FCA Bank currently owned by Stellantis. We will continue to monitor future developments in

this area and evaluate any potential impacts on our partnership with FCA Bank.

Labor laws and collective bargaining agreements with our labor unions could impact our ability to operate efficiently.

All of our production employees are represented by trade unions, are covered by collective bargaining agreements

and/or are protected by applicable labor relations regulations that may restrict our ability to modify operations and reduce

costs quickly in response to changes in market conditions. These regulations and the provisions in our collective bargaining

agreements may impede our ability to restructure our business successfully to compete more efficiently and effectively,

especially with those automakers whose employees are not represented by trade unions or are subject to less stringent

regulations, which could have a material adverse effect on our results of operations and financial condition.

We are subject to risks associated with exchange rate fluctuations, interest rate changes, credit risk and other market

risks.

We operate in numerous markets worldwide and are exposed to market risks stemming from fluctuations in currency

and interest rates. In particular, changes in exchange rates between the Euro and the main foreign currencies in which we

operate affect our revenues and results of operations. For other risks related to a rise in interest rates, see also “Our

indebtedness could adversely affect our operations and we may face difficulties in servicing or refinancing our debt” and

“Car sales depend in part on the availability of affordable financing”. The exposure to currency risk is mainly linked to the

differences in geographic distribution of our sourcing and manufacturing activities from those in our commercial activities, as

a result of which our cash flows from sales are denominated in currencies different from those connected to purchases or

production activities. For example, we incur a large portion of our capital and operating expenses in Euro while we receive

the majority of our revenues in currencies other than Euro. In addition, foreign exchange movements might also negatively

affect the relative purchasing power of our clients which could also have an adverse effect on our results of operations. For

example, the U.S. Dollar remained relatively stable during the first half of 2021 and appreciated against the Euro during the

second half of 2021, while the pound sterling appreciated against the Euro throughout the year 2021. No significant adverse

movements in foreign exchange rates have occurred in early 2022. If the U.S. Dollar or some other currencies were to

depreciate against the Euro, we expect that it would adversely impact our revenues and results of operations. The extent of

adverse impacts from exchange rate fluctuations could increase if the portion of our business in countries outside of Eurozone

increases. See “Financial Overview—Trends, Uncertainties and Opportunities”.

We seek to manage risks associated with fluctuations in currency through financial hedging instruments. Although

we seek to manage our foreign currency risk in order to minimize any negative effects caused by rate fluctuations, including

through hedging activities, there can be no assurance that we will be able to do so successfully, and our business, results of

operations and financial condition could nevertheless be adversely affected by fluctuations in market rates, particularly if

these conditions persist.

Our financial services activities are also subject to the risk of insolvency of dealers and retail clients, as well as

unfavorable economic conditions in markets where these activities are carried out. Despite our efforts to mitigate such risks

through the credit approval policies applied to dealers and retail clients, there can be no assurances that we will be able to

successfully mitigate such risks, particularly with respect to a general change in economic conditions.

Changes in tax, tariff or fiscal policies could adversely affect demand for our products.

Imposition of any additional taxes and levies designed to limit the use of automobiles could adversely affect the

demand for our vehicles and our results of operations. Changes in corporate and other taxation policies as well as changes in

export and other incentives given by various governments, or import or tariff policies, could also adversely affect our results

of operations. The impact of any such tariffs on our operations and results is uncertain and could be significant, and we can

provide no assurance that any strategies we implement to mitigate the impact of such tariffs or other trade actions will be

successful. While we are managing our product development and production operations on a global basis to reduce costs and

lead times, unique national or regional standards can result in additional costs for product development, testing and

manufacturing. Governments often require the implementation of new requirements during the middle of a product cycle,

which can be substantially more expensive than accommodating these requirements during the design phase of a new

product. The imposition of any additional taxes and levies or change in government policy designed to limit the use of high

performance sports cars or automobiles more generally, or any decisions by policymakers to implement taxes on luxury

automobiles, could also adversely affect the demand for our cars. The occurrence of the above may have a material adverse

effect on our business, results of operations and financial condition.

If we were to lose our Authorized Economic Operator certificate, we may be required to modify our current business

practices and to incur increased costs, as well as experience shipment delays.

Because we ship and sell our cars in numerous countries, the customs regulations of various jurisdictions are

important to our business and operations. To expedite customs procedure, we obtained the European Union’s Authorized

Economic Operator (AEO) certificate. The AEO certificate is granted to operators that meet certain requirements regarding

supply chain security and the safety and compliance with law of the operator’s customs controls and procedures. Operators

are audited periodically for continued compliance with the requirements. The AEO certificate allows us to benefit from

special expedited customs treatment, which significantly facilitates the shipment of our cars in the various markets where we

operate. If we were to lose the AEO status, including for failure to meet one of the certification’s requirements, we would be

required to change our business practices and to adopt standard customs procedures for the shipment of our cars. This could

result in increased costs and shipment delays, which, in turn, could negatively affect our results of operations.

Risks Related to our Common Shares

The market price and trading volume of our common shares may be volatile, which could result in rapid and substantial

losses for our shareholders.

The market price of our common shares may be highly volatile and could be subject to wide fluctuations. In

addition, the trading volume of our common shares may fluctuate and cause significant price variations to occur. If the

market price of our common shares declines significantly, a shareholder may be unable to sell their common shares at or

above their purchase price, if at all. The market price of our common shares may fluctuate or decline significantly in the

future. Some of the factors that could negatively affect the price of our common shares, or result in fluctuations in the price or

trading volume of our common shares, include:

•variations in our operating results, or failure to meet the market’s earnings expectations;

•publication of research reports about us, the automotive industry or the luxury industry, or the failure of

securities analysts to cover our common shares;

•departures of any members of our management team or additions or departures of other key personnel;

•adverse market reaction to any indebtedness we may incur or securities we may issue in the future;

•actions by shareholders;

•changes in market valuations of similar companies;

•changes or proposed changes in laws or regulations, or differing interpretations thereof, affecting our

business, or enforcement of these laws and regulations, or announcements relating to these matters;

•adverse publicity about the automotive industry or the luxury industry generally, or particularly scandals

relating to those industries, specifically;

•litigation and governmental investigations; and

•general market and economic conditions.

The loyalty voting program may affect the liquidity of our common shares and reduce our common share price.

The implementation of our loyalty voting program could reduce the trading liquidity and adversely affect the trading

prices of our common shares. The loyalty voting program is intended to reward our shareholders for maintaining long-term

share ownership by granting initial shareholders and persons holding our common shares continuously for at least three years

the option to elect to receive special voting shares. Special voting shares cannot be traded and, if common shares participating

in the loyalty voting program are sold they must be deregistered from the loyalty register and any corresponding special

voting shares transferred to us for no consideration (om niet). This loyalty voting program is designed to encourage a stable

shareholder base and, conversely, it may deter trading by shareholders that may be interested in participating in our loyalty

voting program. Therefore, the loyalty voting program may reduce liquidity in our common shares and adversely affect their

trading price.

The interests of our largest shareholders may differ from the interests of other shareholders.

Exor N.V. (“Exor”) is our largest shareholder, holding approximately 24.21 percent of our outstanding common

shares and approximately 36.00 percent of our voting power (as of February 14, 2022). Therefore, Exor has a significant

influence over these matters submitted to a vote of our shareholders, including matters such as adoption of the annual

financial statements, declarations of annual dividends, the election and removal of the members of our board of directors (the

“Board of Directors”), capital increases and amendments to our articles of association. In addition, as of February 14, 2022,

Piero Ferrari, the Vice Chairman of Ferrari, holds approximately 10.30 percent of our outstanding common shares and

approximately 15.31 percent of voting interest in us (as of February 14, 2022). The percentages of ownership and voting

power above are calculated based on the number of outstanding shares net of treasury shares. As a result, Piero Ferrari also

has influence in matters submitted to a vote of our shareholders. Exor and Piero Ferrari informed us that they have entered

into a shareholder agreement pursuant to which they have undertaken to consult for the purpose of forming, where possible, a

common view on the items on the agenda of shareholders meetings. See “Major Shareholders—Shareholders’ Agreement”.

The interests of Exor and Piero Ferrari may in certain cases differ from those of other shareholders. In addition, the sale of

substantial amounts of our common shares in the public market by Piero Ferrari or the perception that such a sale could occur

could adversely affect the prevailing market price of the common shares.

We may have potential conflicts of interest with Stellantis and Exor and its related companies.

Questions relating to conflicts of interest may arise between us and Fiat Chrysler Automobiles N.V., our former

largest shareholder, renamed Stellantis N.V., in a number of areas relating to common shareholdings and management, as

well as our past and ongoing relationships. There are certain overlaps among the directors and officers of us and Stellantis.

For example, Mr. John Elkann, our Executive Chairman, is the Chairman and an executive director of Stellantis and

Chairman and Chief Executive Officer of Exor. Certain of our other directors and officers may also be directors or officers of

Stellantis or Exor, our and Stellantis’s largest shareholder. These individuals owe duties both to us and to the other companies

that they serve as officers and/or directors, which may create conflicts as, for example, these individuals review opportunities

that may be appropriate or suitable for both us and such other companies, or we pursue business transactions in which both

we and such other companies have an interest, such as our arrangement to supply engines for Maserati cars. Exor holds

approximately 24.21 percent of our outstanding common shares and approximately 36.00 percent of the voting power in us

(as of February 14, 2022), while it holds approximately 14.4 percent of the outstanding common shares in Stellantis (based on

SEC filings). The percentages of ownership and voting power above are calculated based on the number of outstanding

shares net of treasury shares. Exor also owns a controlling interest in CNH Industrial N.V., which was part of the former Fiat

Group before its spin-off several years ago. These ownership interests could create actual, perceived or potential conflicts of

interest when these parties or our common directors and officers are faced with decisions that could have different

implications for us and Stellantis or Exor, as applicable.

Our loyalty voting program may make it more difficult for shareholders to acquire a controlling interest in Ferrari,

change our management or strategy or otherwise exercise influence over us, which may affect the market price of our

common shares.

The provisions of our articles of association which establish the loyalty voting program may make it more difficult

for a third party to acquire, or attempt to acquire, control of our company, even if a change of control were considered

favorably by shareholders holding a majority of our common shares. As a result of the loyalty voting program, a relatively

large proportion of the voting power of Ferrari could be concentrated in a relatively small number of shareholders who would

have significant influence over us. As of February 14, 2022, Exor had approximately 24.21 percent of our outstanding

common shares and a voting interest in Ferrari of approximately 36.00 percent. As of February 14, 2022, Piero Ferrari held

approximately 10.30 percent of our outstanding common shares and, as a result of the loyalty voting mechanism, had

approximately 15.31 percent of the voting power in our shares. The percentages of ownership and voting power above are

calculated based on the number of outstanding shares net of treasury shares. In addition, Exor and Piero Ferrari informed us

that they have entered into a shareholder agreement, summarized under “Major Shareholders—Shareholders’ Agreement”.

As a result, Exor and Piero Ferrari may exercise significant influence on matters involving our shareholders. Exor and Piero

Ferrari and other shareholders participating in the loyalty voting program may have the power effectively to prevent or delay

change of control or other transactions that may otherwise benefit our shareholders. The loyalty voting program may also

prevent or discourage shareholder initiatives aimed at changing Ferrari’s management or strategy or otherwise exerting

influence over Ferrari. See “Corporate Governance—Loyalty Voting Structure”.

We are a Dutch public company with limited liability, and our shareholders may have rights different to those of

shareholders of companies organized in the United States.

The rights of our shareholders may be different from the rights of shareholders governed by the laws of U.S.

jurisdictions. We are a Dutch public company with limited liability (naamloze vennootschap). Our corporate affairs are

governed by our articles of association and by the laws governing companies incorporated in the Netherlands. The rights of

our shareholders and the responsibilities of members of our Board of Directors may be different from the rights of

shareholders and the responsibilities of members of board of directors in companies governed by the laws of other

jurisdictions including the United States. In the performance of its duties, our Board of Directors is required by Dutch law to

consider our interests and the interests of our shareholders, our employees and other stakeholders, in all cases with due

observation of the principles of reasonableness and fairness. It is possible that some of these parties will have interests that

are different from, or in addition to, your interests as a shareholder.

We expect to maintain our status as a “foreign private issuer” under the rules and regulations of the SEC and, thus, are

exempt from a number of rules under the Exchange Act of 1934 and are permitted to file less information with the SEC

than a company incorporated in the United States.

As a “foreign private issuer,” we are exempt from rules under the Securities Exchange Act of 1934, as amended (the

“Exchange Act”) that impose certain disclosure and procedural requirements for proxy solicitations under Section 14 of the

Exchange Act. In addition, our officers, directors and principal shareholders are exempt from the reporting and “short-swing”

profit recovery provisions of Section 16 of the Exchange Act and the rules under the Exchange Act with respect to their

purchases and sales of our common shares. Moreover, we are not required to file periodic reports and financial statements

with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act, nor are

we required to comply with Regulation FD, which restricts the selective disclosure of material information. Accordingly,

there may be less publicly available information concerning us than there is for U.S. public companies.

Our ability to pay dividends on our common shares may be limited and the level of future dividends is subject to change.

Our payment of dividends on our common shares in the future will be subject to business conditions, financial

conditions, earnings, cash balances, commitments, strategic plans and other factors that our Board of Directors may deem

relevant at the time it recommends approval of the dividend. Our dividend policy is subject to change in the future based on

changes in statutory requirements, market trends, strategic developments, capital requirements and a number of other factors.

In addition, under our articles of association and Dutch law, dividends may be declared on our common shares only if the

amount of equity exceeds the paid up and called up capital plus the reserves that have to be maintained pursuant to Dutch law

or the articles of association. Further, even if we are permitted under our articles of association and Dutch law to pay cash

dividends on our common shares, we may not have sufficient cash to pay dividends in cash on our common shares. We are a

holding company and our operations are conducted through our subsidiaries. As a result, our ability to pay dividends

primarily depends on the ability of our subsidiaries, particularly Ferrari S.p.A., to generate earnings and to provide us with

the necessary financial resources.

Our maintenance of two exchange listings may adversely affect liquidity in the market for our common shares and could

result in pricing differentials of our common shares between the two exchanges.

Our shares are listed on both the New York Stock Exchange (“NYSE”) and the Euronext Milan. The dual listing of

our common shares may split trading between the NYSE and the Euronext Milan, adversely affect the liquidity of the shares

and the development of an active trading market for our common shares in one or both markets and may result in price

differentials between the exchanges. Differences in the trading schedules, as well as volatility in the exchange rate of the two

trading currencies, among other factors, may result in different trading prices for our common shares on the two exchanges.

It may be difficult to enforce U.S. judgments against us.

We are organized under the laws of the Netherlands, and a substantial portion of our assets are outside of the United

States. Most of our directors and senior management and our independent auditors are resident outside the United States, and

all or a substantial portion of their respective assets may be located outside the United States. As a result, it may be difficult

for U.S. investors to effect service of process within the United States upon these persons. It may also be difficult for U.S.

investors to enforce within the United States judgments against us predicated upon the civil liability provisions of the

securities laws of the United States or any state thereof. In addition, there is uncertainty as to whether the courts outside the

United States would recognize or enforce judgments of U.S. courts obtained against us or our directors and officers

predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. Therefore, it may

be difficult to enforce U.S. judgments against us, our directors and officers and our independent auditors.

Stellantis creditors may seek to hold us liable for certain Stellantis obligations.

One step of our Separation (see “Overview—History of the Company”) from FCA (references to “FCA” or “FCA

Group” refer to Fiat Chrysler Automobiles N.V., together with its subsidiaries, prior to the merger between FCA and Peugeot

S.A. completed on January 16, 2021, which resulted in the creation of Stellantis N.V.) included a demerger from FCA of our

common shares previously held by it. In connection with a demerger under Dutch law, the demerged company may continue

to be liable for certain obligations of the demerging company that exist at the time of the demerger, but only to the extent that

the demerging company fails to satisfy such liabilities. Based on other actions taken as part of the Separation, we do not

believe we retain any liability for obligations of FCA, now Stellantis, existing at the time of the Separation. Nevertheless, in

the event that Stellantis fails to satisfy obligations to its creditors existing at the time of the demerger, it is possible that those

creditors may seek to recover from us, claiming that we remain liable to satisfy such obligations. While we believe we would

prevail against any such claim, litigation is inherently costly and uncertain and could have an adverse effect. See “Overview—

History of the Company”.

Risks Related to Taxation

Changes to taxation or the interpretation or application of tax laws could have an adverse impact on our results of

operations and financial condition.

Our business is subject to various taxes in different jurisdictions (mainly Italy), which include, among others, the

Italian corporate income tax (“IRES”), regional trade tax (“IRAP”), value added tax (“VAT”), excise duty, registration tax

and other indirect taxes. We are exposed to the risk that our overall tax burden may increase in the future.

Changes in tax laws or regulations or in the position of the relevant Italian and non-Italian authorities regarding the

application, administration or interpretation of these laws or regulations, particularly if applied retrospectively, could have

negative effects on our current business model and have a material adverse effect on our business, operating results and

financial condition.

In order to reduce future potential disputes with tax authorities, we seek advance agreements with tax authorities on

significant matters. In particular we filed a ruling application for advance pricing agreement (APA) on transfer pricing.

In addition, tax laws are complex and subject to subjective valuations and interpretive decisions, and we will

periodically be subject to tax audits aimed at assessing our compliance with direct and indirect taxes. The tax authorities may

not agree with our interpretations of, or the positions we have taken or intend to take on, tax laws applicable to our ordinary

activities and extraordinary transactions. In case of challenges by the tax authorities to our interpretations, we could face long

tax proceedings that could result in the payment of penalties and have a material adverse effect on our operating results,

business and financial condition.

On October 8, 2021, an agreement was reached between 136 countries for a two-pillar approach to international tax

reform (the “OECD Agreement”). Amongst other things, Pillar One proposes a reallocation of a proportion of tax to market

jurisdictions, while Pillar Two seeks to apply a global minimum effective tax rate of 15 percent starting from 2023. The

OECD Agreement is likely to determine changes in corporate tax rates in a number of countries in the coming years. The

impact of changes in corporate tax rates on the measurement of tax assets and liabilities depends on the nature and timing of

the legislative changes in each country, which are subject to uncertainty. Additionally, there are expected changes on the

horizon with respect to US tax reforms. At this time, it is expected that these changes will be substantively enacted in 2022.

There was no impact on current or deferred taxes in 2021 in relation to these potential tax changes and management will

continue to monitor developments in the related tax legislation going forward.

As a result of the demergers and the merger in connection with the Separation, we might be jointly and severally liable

with FCA for certain tax liabilities arisen in the hands of FCA.

Although the Italian tax authorities confirmed in a positive advance tax ruling issued on October 9, 2015 that the

demergers and the Merger that was carried out in connection with the Separation would be respected as tax-free, neutral

transactions from an Italian income tax perspective, under Italian tax law we may still be held jointly and severally liable, as a

result of the combined application of the rules governing the allocation of tax liabilities in case of demergers and mergers,

with FCA for taxes, penalties, interest and any other tax liability arising in the actions of FCA because of violations of its tax

obligations related to tax years prior to the two Demergers described in the section “Overview—History of the Company”.

There may be potential “Passive Foreign Investment Company” tax considerations for U.S. holders.

Shares of our stock would be stock of a “passive foreign investment company,” or a PFIC, for U.S. federal income

tax purposes with respect to a U.S. holder if for any taxable year in which such U.S. holder held shares of our stock, after the

application of applicable “look-through rules” (i) 75 percent or more of our gross income for the taxable year consists of

“passive income” (including dividends, interest, gains from the sale or exchange of investment property and rents and

royalties other than rents and royalties which are received from unrelated parties in connection with the active conduct of a

trade or business, as defined in applicable Treasury Regulations), or (ii) at least 50 percent of our assets for the taxable year

(averaged over the year and determined based upon value) produce or are held for the production of “passive income”. U.S.

persons who own shares of a PFIC are subject to a disadvantageous U.S. federal income tax regime with respect to the

income derived by the PFIC, the dividends they receive from the PFIC, and the gain, if any, they derive from the sale or other

disposition of their shares in the PFIC.

While we believe that shares of our stock are not stock of a PFIC for U.S. federal income tax purposes, this

conclusion is based on a factual determination made annually and thus is subject to change. Moreover, our common shares

may become stock of a PFIC in future taxable years if there were to be changes in our assets, income or operations.

The consequences of the loyalty voting program are uncertain.

No statutory, judicial or administrative authority directly discusses how the receipt, ownership, or disposition of

special voting shares should be treated for Italian or U.S. tax purposes and as a result, the tax consequences in those

jurisdictions are uncertain.

The fair market value of the special voting shares, which may be relevant to the tax consequences, is a factual

determination and is not governed by any guidance that directly addresses such a situation. Because, among other things, our

special voting shares are not transferable (other than, in very limited circumstances, together with the associated common

shares) and a shareholder will receive amounts in respect of the special voting shares only if we are liquidated, we believe

and intend to take the position that the fair market value of each special voting share is minimal. However, the relevant tax

authorities could assert that the value of the special voting shares as determined by us is incorrect.

The tax treatment of the loyalty voting program is unclear and shareholders are urged to consult their tax advisors in

respect of the consequences of acquiring, owning and disposing of special voting shares.

We currently benefit or seek to benefit from certain special tax regimes, which may not be available in the future.

Italian Law no. 190/2014, as subsequently amended and supplemented, introduced an optional Patent Box regime in

the Italian tax system. The Patent Box regime is a tax exemption related to, inter alia, the use of intellectual property assets.

Business income derived from the use of each qualified intangible asset is partially exempted from taxation for both IRES

and IRAP purposes. We are currently applying the Patent Box tax regime for the period from 2020 to 2024, in line with

applicable tax regulations in Italy. Law Decree No. 146 as amended by the 2022 Italian budget law, replaced the former

Patent Box regime (which allowed taxpayers to exempt from corporate income tax (IRES) and regional income tax (IRAP)

up to 50% of their income derived from the direct or indirect exploitation of intangibles) with a 110% “super tax deduction”

for R&D expenses related to eligible intangible assets. The decree provides for a specific transitional procedure between the

two regimes. The amount of the related tax benefits (if any) that the Group may receive from the Patent Box or other tax

regimes remains subject to uncertainty.

Furthermore, we currently calculate taxes due in Italy based, among other things, on certain tax breaks recognized

by Italian tax regulations for R&D expenses and for the investments on manufacturing equipment, which result in a tax

saving.

In addition, we benefit from the measures introduced in Italy by art. 110 of Law Decree no. 104/2020, converted

into Law no.126/2020, which re-opened the voluntary step up of tangible and intangible assets, with the application of a

three-percent substitutive tax rate. The 2022 budget law introduced some retroactive changes to the step-up regime. In

particular, the 2022 budget law provides for an extension from 18 years to 50 years of the amortization period for tax

purposes for any trademarks and goodwill that benefited from the step-up regime. The modification even if reduces our

annual financial benefit does not affect the overall positive impact of the incentive.

These measures continue to mitigate the tax burden in Italy. Significant changes in regulations or interpretation

might adversely affect the availability of such exemptions and result in higher tax charges. See also “Changes to taxation or

the interpretation or application of tax laws could have an adverse impact on our results of operations and financial

condition.”

Overview

Ferrari is among the world’s leading luxury brands, focused on the design, engineering, production and sale of the

world’s most recognizable luxury performance sports cars. Our brand symbolizes exclusivity, innovation, state-of-the-art

sporting performance and Italian design and engineering heritage. Our name and history and the image enjoyed by our cars

are closely associated with our Formula 1 racing team, Scuderia Ferrari, the most successful racing team in the history of

Formula 1. From the inaugural year of Formula 1 in 1950 through the present, Scuderia Ferrari has won 238 Grand Prix

races, 16 Constructors’ World titles and 15 Drivers’ World titles. We are the only team which has taken part in all the

editions of the Championship, racing in more than 1,000 Formula 1 Grand Prix races. We believe our history of excellence,

technological innovation and defining style transcends the automotive industry, and is the foundation of the Ferrari brand and

image. We design, engineer and produce our cars in Maranello, Italy, and sell them in over 60 markets worldwide through a

network of 172 authorized dealers operating 191 points of sale as of the end of 2021.

We believe our cars are the epitome of performance, luxury and styling. Our product offering comprises four main

pillars: the sports range, the GT range, special series and Icona, a line of modern cars inspired by our iconic cars of the past.

Our current product range (including cars presented in 2021, for which shipments will commence in future years) is

comprised of six sports cars (the 812 GTS, the Ferrari F8 Tributo, the Ferrari F8 Spider, the 296 GTB, the SF90 Stradale and

the SF90 Spider), two GT cars (the Ferrari Roma and the Ferrari Portofino M), two special series cars (the 812 Competizione

and the 812 Competizione A), two versions of our first Icona model, the Ferrari Monza SP1 and the Ferrari Monza SP2, as

well as the recently presented new model in the Icona range, the Ferrari Daytona SP3.

In 2021 we completed the shipments of the 812 Superfast, while the shipments of the Ferrari Monza SP1 and SP2

will be completed in the first quarter of 2022. We also produce limited edition hypercars and one-off cars. Our most recent

hypercar, the LaFerrari Aperta, was launched in 2016 to celebrate our 70th Anniversary and finished its limited series run in

2018. In 2021, we launched 4 new models, including the 296 GTB, a new PHEV featuring a new V6 engine, the limited

series V12 812 Competizione and 812 Competizione A, and the new Icona series model, the Ferrari Daytona SP3, and we

have launched 13 models in accordance with our plan to launch 15 new models by 2022 as announced at our 2018 Capital

Markets Day.

In 2021, we shipped 11,155 cars and recorded net revenues of €4,271 million, EBIT of €1,075 million, net profit of

€833 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of €1,531 million. For additional

information regarding EBITDA, including a reconciliation of EBITDA to net profit, as well as other non-GAAP financial

measures we present, see “Financial Overview—Liquidity and Capital Resources—Non-GAAP Financial Measures”.

Whilst broadening our product portfolio to target a larger customer base, we continue to pursue a low volume

production strategy in order to maintain a reputation for exclusivity and scarcity among purchasers of our cars and we

carefully manage our production volumes and delivery waiting lists to promote this reputation. We divide our regional

markets into (i) EMEA, (ii) Americas, (iii) Mainland China, Hong Kong and Taiwan, and (iv) Rest of APAC, which

represented respectively 49.2 percent, 25.4 percent, 8.1 percent and 17.3 percent of units shipped in 2021. The geographical

distribution of shipments reflects deliberate allocations driven by the phase-in pace of individual models.

History of the Company

Ferrari was incorporated as a public limited liability company (naamloze vennootschap) under the laws of the

Netherlands on September 4, 2015 with an indefinite duration. Our official seat (statutaire zetel) is in Amsterdam, the

Netherlands, and our corporate address and principal place of business are located at Via Abetone Inferiore n. 4, I-41053

Maranello (MO), Italy. Ferrari is registered with the Dutch Trade Register of the Chamber of Commerce under number

64060977. Its telephone number is +39-0536-949111. The name and address of the Company’s agent in the United States is:

Ferrari North America, Inc., 250 Sylvan Avenue, Englewood Cliffs, NJ 07632. Its telephone number is +1 (201) 816 2600.

Our company is named after our founder Enzo Ferrari. An Alfa Romeo driver since 1924, Enzo Ferrari founded his

own racing team, Scuderia Ferrari, in Modena in 1929 initially to race Alfa Romeo cars. In 1939 he set up his own company,

initially called Auto Avio Costruzioni. In late 1943, Enzo Ferrari moved his headquarters from Modena to Maranello, which

remains our headquarters to this day.

In 1947, we produced our first racing car, the 125 S. The 125 S’s powerful 12 cylinder engine would go on to

become synonymous with the Ferrari brand. In 1948, the first road car, the Ferrari 166 Inter, was produced. Styling quickly

became an integral part of the Ferrari brand.

In 1950, we began our participation in the Formula 1 World Championship, racing in the world’s second Grand Prix

in Monaco, which makes Scuderia Ferrari the longest running Formula 1 team. We won our first Constructor World Title in

1952. Our success on the world’s tracks and roads extends beyond Formula 1, including victories in some of the most

important car races such as the 24 Hours of Le Mans, the world’s oldest endurance automobile race, and the 24 Hours of

Daytona.

The Fiat group acquired a 50 percent stake in Ferrari S.p.A. in 1969 and increased its stake to 90 percent in 1988

following the death of Enzo Ferrari, with the remaining 10 percent held by Enzo Ferrari’s son, Piero Ferrari.

Ferrari became an independent, publicly traded company following its separation from FCA (renamed Stellantis in

January 2021, following the merger of Peugeot S.A. with and into FCA), which was completed on January 3, 2016 (the

“Separation”) and occurred through a series of transactions including (i) an intragroup restructuring which resulted in the

Company’s acquisition of the assets and business of Ferrari North Europe Limited and the transfer by FCA of its 90 percent

shareholding in Ferrari S.p.A. to the Company, (ii) the transfer of Piero Ferrari’s 10 percent shareholding in Ferrari S.p.A. to

the Company, (iii) the initial public offering of common shares of the Company on the New York Stock Exchange in October

2015 under the ticker symbol RACE, and (iv) the distribution, following the initial public offering, of FCA’s remaining

interest in the Company to FCA’s shareholders. On January 4, 2016 the Company also completed the listing of its common

shares on the Mercato Telematico Azionario (“MTA”, subsequently renamed Euronext Milan), under the ticker symbol

RACE.

Industry Overview

Within the luxury goods market, we define our target market for luxury performance cars as two-door cars powered

by engines producing more than 500 hp and selling at a retail price in excess of Euro 150,000 (including VAT). The luxury

performance car market historically has followed relatively closely growth patterns in the broader luxury market. The luxury

performance car market is generally affected by global macroeconomic conditions and, although we and certain other

manufacturers have proven relatively resilient, general downturns can have a disproportionate impact on sales of luxury

goods in light of the discretionary nature of consumer spending in this market. Furthermore, because of the emotional nature

of the purchasing decision, economic confidence and factors such as expectations regarding future income streams as well as

the social acceptability of luxury goods may impact sales.

Following the sharp recession of 2008-2009, the luxury performance car market has been resilient to further

economic downturns and stagnation in the broader economy, also a result of the increase of new product launches. A

sustained period of wealth creation in several Asian countries and, to a lesser extent, in the Americas, has led to an expanding

population of potential consumers of luxury goods. Developing consumer preferences in the Asian markets, where the newly

affluent are increasingly embracing western brands of luxury products, have also led to higher demand for cars in our

segment, which are all produced by established European manufacturers. In turn, the changing demographic of customers and

potential customers is driving an evolution towards luxury performance cars more suited to an urban, daily use.

Additionally, the growing appetite of younger affluent purchasers for luxury performance cars has led to new

entrants, which in turn has resulted in higher sales overall in the market.

In 2021, the luxury performance car market experienced a V-shaped recovery, with Ferrari shipments returning to

and surpassing the 2019 pre-pandemic levels while shipments of the overall luxury performance car market partially

recovered but remained below the 2019 pre-pandemic levels, after the economic shock experienced in 2020 as a result of the

COVID-19 pandemic. The actions taken worldwide for the containment of the pandemic, including widespread vaccination

campaigns, enabled Ferrari and some of its main competitors to fully recover and maintain their production capacity.

Furthermore, the renewed product offering by several competitors was another key element driving the positive performance

of the market.

Unlike in other segments of the broader luxury market, in the luxury performance car market, a significant portion of

demand is driven by new product launches. The market share of individual producers fluctuates over time reflecting the

timing of product launches. New launches tend to drive sales volumes even in difficult market environments because the

novelty, exclusivity and excitement of a new product is capable of creating and capturing its own demand from clients.

Growing environmental concerns are leading to the implementation of increasingly stringent emissions regulations

and an increase in demand for both hybrid and electric vehicles. Cost and limited charging infrastructure are currently

limiting factors in the demand for electric vehicles, but advancements in battery technology in coming years are expected to

boost sales of hybrid and electric high performance luxury vehicles, although at a slower pace compared to mass market

vehicles. The ability to combine driving experience with hybrid and electric technology will be key for the commercial

success of high performance luxury vehicles.

As shown in the chart below, our volumes in recent years have proven less volatile than our competitors’. We

believe this is due to our strategy of maintaining low volumes compared to demand, as well as to the higher number of

models in our range and our more frequent product launches compared to our competitors.

•Ferrari and Luxury Performance Car Industry data are updated to December 31, 2021.

•The commercial criteria we used for evaluation of the Luxury Performance Car Industry include all two door GT and sports cars with power

above 500 hp, and retail price above Euro 150,000 (including VAT) sold by Aston Martin, Audi, Bentley, BMW, Ferrari, Ford, Honda/Acura,

Lamborghini, Maserati, McLaren, Mercedes Benz, Polestar, Porsche and Rolls-Royce.

•Ferrari data based on internal information for the 22 top countries (excluding Middle East countries) for Ferrari annual registrations and sales

(which accounted for approximately 86% of the total Ferrari shipments in 2021).

•Data for the Luxury Performance Car Industry based on units registered (in Brazil, Japan, Taiwan, United Kingdom, Germany, France,

Switzerland, Italy, Poland, Spain, Sweden, Netherlands, Belgium and Austria) or sold (in USA, South Korea, Mainland China, Russia, Australia,

New Zealand, Singapore and Indonesia). Source: USA: US Maker Data Club, Brazil-JATO; Austria-OSZ; Belgium-FEBIAC; France-SIV;

Germany-KBA; UK-SMMT; Italy-UNRAE; Netherlands-VWE; Poland-CEPiK; Spain-TRAFICO; Sweden-BranschData; Switzerland-ASTRA;

Mainland China-China Automobile Industry Association-DataClub; Russia-AEBRUS; Taiwan-Ministry of Transportation and Communications;

Australia-VFACTS-S; Japan-JAIA; Indonesia-GAIKINDO; New Zealand-VFACTS; Singapore-LTA, MTA (Land Transport Authority, Motor

Trader Associations); South Korea-KAIDA.

In 2021, Ferrari volumes in the largest 22 markets increased compared to 2020, primarily driven by contribution

from our renewed and enlarged product range. In 2021, we had a market share of 26% in the luxury performance car market;

with 30% of market share in the sports car segment and 20% of market share in the GT segment.

The chart below sets forth our market shares in 2021 based on volumes in our largest 22 markets by geographical

area.

•Ferrari and Luxury Performance Car Industry data updated to December 31, 2021.

•The commercial criteria we used for evaluation of the Luxury Performance Car Industry include all two door GT and sports cars with power

above 500 hp, and retail price above Euro 150,000 (including VAT) sold by Aston Martin, Audi, Bentley, BMW, Ferrari, Ford, Honda/Acura,

Lamborghini, Maserati, McLaren, Mercedes Benz, Polestar, Porsche, and Rolls-Royce.

•Ferrari data based on internal information for the 22 top countries (excluding Middle East countries) for Ferrari annual registrations and sales

(which accounted for approximately 86% of the total Ferrari shipments in 2021).

•Data for the Luxury Performance Car Industry based on units registered (Brazil, Japan, Taiwan, United Kingdom, Germany, France, Switzerland,

Italy, Poland, Spain, Sweden, Netherlands, Belgium and Austria) or sold (in USA, South Korea, Mainland China, Russia, Australia, New

Zealand, Singapore and Indonesia). Source: USA: US Maker Data Club, Brazil-JATO; Austria-OSZ; Belgium-FEBIAC; France-SIV; Germany-

KBA; UK-SMMT; Italy-UNRAE; Netherlands-VWE; Poland-CEPiK; Spain-TRAFICO; Sweden-BranschData; Switzerland-ASTRA; Mainland

China-China Automobile Industry Association-DataClub; Russia-AEBRUS; Taiwan-Ministry of Transportation and Communications; Australia-

VFACTS-S; Japan-JAIA; Indonesia-GAIKINDO; New Zealand-VFACTS; Singapore-LTA, MTA (Land Transport Authority, Motor Trader

Associations); South Korea-KAIDA.

•Ferrari is market leader in several countries, including France, Italy, Switzerland, UK, USA, Australia, Japan and South Korea, among others.

While we monitor our market share as an indicator of our brand appeal, we do not regard market share in the luxury

performance market as particularly relevant as compared to other segments of the automotive industry. We are not focused on

market share as a performance metric. Instead, we deliberately manage our supply relative to demand, to defend and promote

our brand exclusivity and premium pricing.

Competition

Competition in the luxury performance car market is concentrated in a fairly small number of producers, including

both large automotive companies that own luxury brands as well as small producers exclusively focused on luxury cars, like

us. The luxury performance car market includes sports cars and GT cars.

Our current sports car models are the 812 GTS, the Ferrari F8 Tributo, the Ferrari F8 Spider, the 296 GTB and the

SF90 Stradale and the SF90 Spider, our first series production Plug-in Hybrid Electric Vehicle (PHEV) models. Our principal

competitors are Lamborghini, McLaren, Porsche, Mercedes, Aston Martin and Audi. Our current GT range models include

the Ferrari Roma and the Ferrari Portofino M, while our main competitors are Rolls-Royce, Bentley, Aston Martin and

Mercedes.

Competition in the luxury performance car market is driven by the strength of the brand and the appeal of the

products in terms of performance, styling, novelty and innovation as well as on the manufacturers’ ability to renew its

product offerings regularly in order to continue to stimulate customer demand.

Competition among similarly positioned luxury performance cars is also driven by price and total cost of ownership.

Resilience of the car value after a period of ownership is an important competitive dimension among similarly positioned

luxury cars, as a higher resilience decreases the total cost of ownership and promotes repeat purchases: we believe this is a

strong competitive advantage of Ferrari cars.

Overview of Our Business