Exhibit 99.1

Ferrari N.V.

At and for the three and six months ended June 30, 2023

____________________________________________________________________________________________________

DELOITTE & TOUCHE S.p.A.

•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, 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;

•the impact of increasingly stringent fuel economy, emissions and safety standards, including the cost of compliance, and any required changes to our products, as well as possible future bans of combustion engine cars in cities and the potential advent of self-driving technology;

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

•global economic conditions, macro events and pandemics, including the ongoing conflict between Russia and Ukraine;

•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, demand for which is highly volatile;

•our ability to successfully carry out our low volume/controlled growth strategy in the markets we are present;

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

•competition in the luxury performance automobile industry;

•changes in client preferences and automotive trends;

•disruptions at our manufacturing facilities in Maranello and Modena;

•climate change and other environmental impacts, as well as an increased focus of regulators and stakeholders on environmental matters;

•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;

•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;

•the performance of our lifestyle activities;

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

•product warranties, product recalls and liability claims;

•our continued compliance with customs regulations of various jurisdictions;

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

•labor relations and collective bargaining agreements;

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

•our ability to service and refinance our debt;

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

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

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

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

•other factors discussed elsewhere in this document.

    

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(1)See Note 13 “Earnings per Share” to the Semi-Annual Condensed Consolidated Financial Statements for the calculation of basic and diluted earnings per common share for the three and six months ended June 30, 2023 and 2022.

(2)Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 14, 2023, a dividend distribution of €1.810 per outstanding common share was approved, corresponding to a total distribution of approximately €329 million. This distribution was made from the retained earnings reserve. In May 2023 the Company paid €307 million of the distribution to owners of the parent and the remaining balance, which relates to withholding taxes, is expected to be paid in the third quarter of 2023.

(3)Following approval of the annual accounts by the shareholders at the Annual General Meeting of the Shareholders on April 13, 2022, a dividend distribution of €1.362 per outstanding common share was approved, corresponding to a total distribution of €250 million. This distribution was made from the retained earnings reserve. In May 2022 the Company paid €231 million of the distribution to owners of the parent and the remaining balance, which relates to withholding taxes, was paid in the third quarter of 2022.

(4)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.

Shipments (1)

(Number of cars and % of total cars)			For the three months ended June 30,																								For the six months ended June 30,
			2023						%						2022						%						2023						%						2022						%
EMEA
Germany			419						12.4		%				326						9.4		%				780						11.2		%				764						11.4		%
UK			297						8.8		%				254						7.4		%				502						7.2		%				478						7.1		%
Italy			176						5.2		%				184						5.3		%				405						5.8		%				388						5.8		%
Switzerland			119						3.5		%				118						3.4		%				260						3.7		%				280						4.2		%
France			122						3.6		%				95						2.7		%				251						3.6		%				245						3.7		%
Middle East (2)			123						3.6		%				77						2.2		%				224						3.2		%				200						3.0		%
Other EMEA (3)			382						11.2		%				343						10.0		%				750						10.9		%				785						11.6		%
Total EMEA			1,638						48.3		%				1,397						40.4		%				3,172						45.6		%				3,140						46.8		%
Americas (4)			869						25.6		%				1,053						30.5		%				1,831						26.3		%				1,711						25.5		%
Mainland China, Hong Kong and Taiwan			339						10.0		%				358						10.4		%				735						10.6		%				643						9.6		%
Rest of APAC (5)			546						16.1		%				647						18.7		%				1,221						17.5		%				1,212						18.1		%
Total			3,392						100.0		%				3,455						100.0		%				6,959						100.0		%				6,706						100.0		%

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Highlights during the three months ended June 30, 2023 included the following:

•The Ferrari Purosangue triumphed in the Product Design category and the Ferrari Vision Gran Turismo triumphed Best of the Best in the Innovative Products category at the prestigious Red Dot Awards. The Ferrari Purosangue also won the Production Car category of the prestigious Car Design Award.

•Following the approval of a dividend of €1.810 per common share by the Company’s shareholders in April 2023, corresponding to a total distribution amount of approximately €329 million, on May 5, 2023 the Company paid €307 million of the dividend and the remaining balance, which relates to withholding taxes, is expected to be paid in the third quarter of 2023.

•A donation of €1 million to the Emilia-Romagna Region’s Agency for Territorial Safety and Civil Protection, joining the regional fundraising campaign for the flood event that occurred in May 2023.

•Ferrari won the Centenary edition of the 24 Hours of Le Mans with the 499P covering 342 laps of the French track. The Maranello manufacturer claimed an historic result on its return to the top class after half a century, with the Ferrari – AF Corse team triumphing in the world’s most famous endurance race. This was the Prancing Horse’s tenth overall victory at the 24 Hours of Le Mans, to go with those collected in 1949, 1954, 1958, and 1960-1965. Ferrari’s history at Le Mans now comprises 39 victories, including 29 class wins.

•Ferrari S.p.A. was admitted to the Cooperative Compliance Regime in Italy by the Italian Revenue Agency, which provides for constant and preventive discussions between the taxpayer and the Italian tax authorities on the most significant transactions. This admission is effective as of 2022 (the year in which the application was filed), and was preceded by the adoption and validation by Italian tax authorities of an internal tax risk control system, referred to as the Tax Control Framework (TCF).

•The second tranche of the multi-year share repurchase program was completed with share repurchases for total consideration of €82.8 million in the quarter. Ferrari announced its intention to continue with a third tranche of up to €200 million to start on July 3, 2023 and to end no later than October 20, 2023.

•Based on the SF90 Stradale, the new special limited series SF90 XX Stradale was unveiled alongside its SF90 XX Spider counterpart. To be built in just 799 and 599 examples respectively, these new V8-powered Plug-in Hybrid Electric Vehicles (PHEVs) represent the latest and most extreme example of a concept of special versions, which pushes the performance of Ferrari’s road-going models to new levels.

    The following is a discussion of the results of operations for the three months ended June 30, 2023 compared to the three months ended June 30, 2022. The presentation includes line items as a percentage of net revenues for the respective periods presented to facilitate period-to-period comparisons.

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

(2)Includes net revenues earned by our racing teams (mainly in the Formula 1 World Championship and the World Endurance Championship) through sponsorship agreements, our share of the Formula 1 World Championship commercial revenues, and net revenues generated through the Ferrari brand, including fashion collection, merchandising, licensing and royalty income.

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

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

    Net revenues for the three months ended June 30, 2023 were €1,474 million, an increase of €183 million or 14.1 percent (an increase of 12.8 percent on a constant currency basis), compared to €1,291 million for the three months ended June 30, 2022.

    The change in net revenues was attributable to the combination of (i) a €164 million increase in cars and spare parts, (ii) a €25 million increase in sponsorship, commercial and brand and (iii) a €8 million increase in other net revenues, partially offset by (iv) a €14 million decrease in engines.

    Net revenues generated from cars and spare parts were €1,259 million for the three months ended June 30, 2023, an increase of €164 million or 14.9 percent, compared to €1,095 million for the three months ended June 30, 2022.

The increase in net revenues from cars and spare parts was primarily attributable to a richer product mix, personalizations and pricing. Foreign currency exchange impact, including hedging transactions, was positive, mainly driven by the U.S. Dollar.

Total shipments decreased by 63 cars, from 3,455 cars in the second quarter of 2022 to 3,392 cars in the second quarter of 2023, reflecting volume, geographic and mix allocation plans by quarter. The product portfolio in the quarter included 9 internal combustion engine (ICE) models and 4 hybrid engine models, which represented 57.0 percent and 43.0 percent of total shipments, respectively. Shipments during the quarter were driven by the 296 GTB, the Ferrari Roma and the Portofino M, as well as the 296 GTS and the 812 Competizione A, which are in their ramp up phase. Shipments of the Daytona SP3 were in line with plans and we made our first deliveries of the Ferrari Purosangue.

The €164 million increase in net revenues from cars and spare parts was composed of: (i) a €168 million increase in EMEA, (ii) a €9 million increase in Americas, (iii) a €2 million decrease in APAC and (iv) a €11 million decrease in Mainland China, Hong Kong and Taiwan. The mix of net revenues by geography reflects the geographic allocations of shipments by quarter and the pace of introduction of new models.

    Net revenues generated from sponsorship, commercial agreements and brand management activities were €147 million for the three months ended June 30, 2023, an increase of €25 million or 20.3 percent, compared to €122 million for the three months ended June 30, 2022, mainly attributable to the better prior year Formula 1 ranking, new sponsorships and lifestyle-related activities.

    Net revenues generated from engines were €27 million for the three months ended June 30, 2023, a decrease of €14 million or 32.8 percent, compared to €41 million for the three months ended June 30, 2022, driven by a decrease in engines sold to Maserati, for which the contract will expire at the end of 2023.

    Cost of sales for the three months ended June 30, 2023 was €726 million, an increase of €47 million or 7.0 percent, compared to €679 million for the three months ended June 30, 2022. As a percentage of net revenues, cost of sales was 49.2 percent for the three months ended June 30, 2023 compared to 52.6 percent for the three months ended June 30, 2022.

The increase in cost of sales was primarily attributable to the change in product mix and higher industrial costs, reflecting raw materials cost inflation and depreciation.

    Selling, general and administrative costs for the three months ended June 30, 2023 were €113 million, an increase of €10 million or 9.6 percent, compared to €103 million for the three months ended June 30, 2022. As a percentage of net revenues, selling, general and administrative costs were 7.7 percent for the three months ended June 30, 2023 compared to 8.0 percent for the three months ended June 30, 2022.

The increase of €10 million was mainly attributable to digital infrastructure and organizational development, as well as marketing activities.

    Research and development costs for the three months ended June 30, 2023 were €194 million, an increase of €11 million or 5.6 percent, compared to €183 million for the three months ended June 30, 2022. As a percentage of net revenues, research and development costs were 13.2 percent for the three months ended June 30, 2023 compared to 14.2 percent for the three months ended June 30, 2022.

The increase of €11 million was primarily driven by an increase in amortization of capitalized development costs of €20 million driven by a general increase in capitalized development costs in recent years in line with our strategy to innovate and broaden our product range, partially offset by a decrease in research and development costs expensed of €9 million due to quarterly specific lower Formula 1 expenses. The increase in the proportion of development costs capitalized (compared to costs expensed) reflects both the advancement through the stages of development for many of the technologies we are creating, as well as the cap on certain costs we may incur for the chassis of our Formula 1 racing cars, as well as the development of the power unit to be introduced in 2026, in accordance with applicable FIA financial regulations. Research and development costs for the three months ended June 30, 2023 and 2022 are recognized net of technology-related government incentives.

    EBIT for the three months ended June 30, 2023 was €437 million, an increase of €114 million or 35.4 percent, compared to €323 million for the three months ended June 30, 2022. EBIT margin for the three months ended June 30, 2023 was 29.7 percent compared to 25.0 percent for the three months ended June 30, 2022.

The increase in EBIT was primarily attributable to the combined effects of (i) negative volume impact of €3 million, (ii) positive product mix impact of €94 million, sustained by the Daytona SP3, the 812 Competizione and the SF90 families, the increased contribution by personalizations and pricing, (iii) negative contribution of €11 million from research and development costs, (iv) negative contribution of €10 million from selling, general and administrative costs, (v) positive contribution of €24 million from the combined effects of higher commercial revenues from a better prior year Formula 1 ranking, lower costs due to revised Formula 1 in season ranking assumptions, new racing sponsorships and a higher contribution from lifestyle activities, as well as a partial release of environmental provisions as a result of more favorable market conditions for car emissions credits, partially offset by higher industrial costs, reflecting the effects of inflation and higher depreciation and (vi) positive foreign currency exchange impact of €20 million (including foreign currency hedging instruments).

    Net financial expenses for the three months ended June 30, 2023 of €9 million were substantially in line with €10 million for the three months ended June 30, 2022, driven by higher interest income on cash and cash equivalents, partially offset by net foreign exchange impact (mainly USD).

Income tax expense for the three months ended June 30, 2023 was €94 million, an increase of €32 million, or 50.6 percent, compared to €62 million for the three months ended June 30, 2022.

The increase in income tax expense was primarily attributable to an increase in profit before taxes. Income taxes for the three months ended June 30, 2023 and June 30, 2022 benefited from the application of the Patent Box tax regime.

The effective tax rate was 22.0 percent for the three months ended June 30, 2023 and 20.0 percent for the three months ended June 30, 2022. The effective tax rate was mainly impacted by the applicable regulatory changes to the aforementioned Patent Box tax regime.

    The following is a discussion of the results of operations for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. The presentation includes line items as a percentage of net revenues for the respective periods presented to facilitate period-to-period comparisons.

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

(2)Includes net revenues earned by our racing teams (mainly in the Formula 1 World Championship and the World Endurance Championship) through sponsorship agreements, our share of the Formula 1 World Championship commercial revenues, and net revenues generated through the Ferrari brand, including fashion collection, merchandising, licensing and royalty income.

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

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

    Net revenues for the six months ended June 30, 2023 were €2,903 million, an increase of €426 million or 17.2 percent (an increase of 15.2 percent on a constant currency basis), compared to €2,477 million for the six months ended June 30, 2022.

    The change in net revenues was attributable to the combination of (i) a €397 million increase in cars and spare parts, (ii) a €42 million increase in sponsorship, commercial and brand and (iii) a €5 million increase in other net revenues, partially offset by (iv) an €18 million decrease in engines.

    Net revenues generated from cars and spare parts were €2,500 million for the six months ended June 30, 2023, an increase of €397 million or 18.8 percent, compared to €2,103 million for the six months ended June 30, 2022.

    The increase in net revenues from cars and spare parts was primarily attributable to higher car volumes and to a richer product and country mix, as well as the contribution from personalizations and pricing. Foreign currency exchange impact, including hedging transactions, was positive, mainly driven by the U.S. Dollar.

Total shipments increased by 253 cars, or 3.8 percent, from 6,706 cars in the first half of 2022 to 6,959 cars in the first half of 2023. The product portfolio in the first half of 2023 included 10 internal combustion engine (ICE) models and 4 hybrid engine models, which represented 61.3 percent and 38.7 percent of shipments, respectively. The increase in shipments during the first six months of 2023 was mainly driven by the 296 and 812 Competizione families and the Portofino M, partially offset by the phase out of the F8 Tributo. Shipments of the Daytona SP3 were in line with plans and in ramp up phase during the first six months of 2023, and the first deliveries of the Ferrari Purosangue commenced in the second quarter of the year.

    

The €397 million increase in net revenues from cars and spare parts was composed of: (i) a €179 million increase in EMEA, (ii) a €151 million increase in Americas, (iii) a €38 million increase in APAC and (iv) a €29 million increase in Mainland China, Hong Kong and Taiwan. The mix of net revenues by geography reflects the geographic allocations in line with the pace of introduction of new models.

    Net revenues generated from sponsorship, commercial agreements and brand management activities were €277 million for the six months ended June 30, 2023, an increase of €42 million or 17.9, compared to €235 million for the six months ended June 30, 2022, mainly attributable to a better prior year Formula 1 ranking, new sponsorships and lifestyle-related activities.

    Net revenues generated from engines were €60 million for the six months ended June 30, 2023, a decrease of €18 million or 22.7 percent, compared to €78 million for the six months ended June 30, 2022. The €18 million decrease was mainly attributable to a decrease in engines sold to Maserati, which is approaching contract expiration in 2023.

    Cost of sales for the six months ended June 30, 2023 was €1,437 million, an increase of €170 million or 13.4 percent, compared to €1,267 million for the six months ended June 30, 2022. As a percentage of net revenues, cost of sales was 49.5 percent for the six months ended June 30, 2023 compared to 51.1 percent for the six months ended June 30, 2022.

The increase in cost of sales was primarily attributable to the change in product mix, including personalizations, higher car volumes and higher industrial costs, reflecting raw materials cost inflation and depreciation.

    Selling, general and administrative costs for the six months ended June 30, 2023 were €227 million, an increase of €34 million or 17.6 percent, compared to €193 million for the six months ended June 30, 2022. As a percentage of net revenues, selling, general and administrative costs were 7.8 percent for the six months ended June 30, 2023 and 2022.

The increase of €34 million was mainly attributable to marketing and lifestyle activities, as well as digital infrastructure and organizational development.

    Research and development costs for the six months ended June 30, 2023 were €408 million, an increase of €27 million or 7.0 percent, compared to €381 million for the six months ended June 30, 2022. As a percentage of net revenues, research and development costs were 14.1 percent for the six months ended June 30, 2023 compared to 15.4 percent for the six months ended June 30, 2022.

The increase of €27 million was primarily driven by an increase in amortization of capitalized development costs of €45 million driven by a general increase in capitalized development costs in recent years in line with our strategy to innovate and broaden our product range, partially offset by a decrease in research and development costs expensed of €18 million. The increase in the proportion of development costs capitalized (compared to costs expensed) reflects both the advancement through the stages of development for many of the technologies we are creating, as well as the cap on certain costs we may incur for the chassis of our Formula 1 racing cars, as well as the development of the power unit to be introduced in 2026, in accordance with applicable FIA financial regulations. Research and development costs for the six months ended June 30, 2023 and 2022 are recognized net of technology-related government incentives.

    EBIT for the six months ended June 30, 2023 was €822 million, an increase of €192 million or 30.5 percent, compared to €630 million for the six months ended June 30, 2022. EBIT margin for the six months ended June 30, 2023 was 28.3 percent compared to 25.4 percent for the six months ended June 30, 2022.

The increase in EBIT was primarily attributable to the combined effects of (i) positive volume impact of €25 million, (ii) positive product and country mix impact of €179 million, mainly sustained by the Daytona SP3 and the 812 Competizione and SF90 families, as well as personalizations and pricing, (iii) negative contribution of €27 million from research and development costs, (iv) negative contribution of €34 million from selling, general and administrative costs, (v) positive contribution of €1 million from the combined effects of higher commercial revenues from a better prior year Formula 1 ranking, lower costs due to revised Formula 1 in season ranking assumptions, new racing sponsorships and a higher contribution from lifestyle activities, as well as a partial release of environmental provisions as a result of more favorable market conditions for car emissions credits, substantially offset by higher industrial costs, reflecting the effects of inflation and higher depreciation, and (vi) positive foreign currency exchange impact of €48 million (including foreign currency hedging instruments).

    Net financial expenses for the six months ended June 30, 2023 were €13 million, a decrease of €5 million, or (28.0%) compared to €18 million for the six months ended June 30, 2022, driven by higher interest income on cash and cash equivalents, partially offset by net foreign exchange impact (mainly USD).

    Income tax expense for the six months ended June 30, 2023 was €178 million, an increase of €56 million, or 45.4 percent, compared to €122 million for the six months ended June 30, 2022.

The increase in income tax expense was primarily attributable to an increase in profit before taxes. Income taxes for the six months ended June 30, 2023 and June 30, 2022 benefited from the application of the Patent Box tax regime.

The effective tax rate was 22.0 percent and 20.0 percent for the six months ended June 30, 2023 and for the six months ended June 30, 2022, respectively. The effective tax rate was mainly impacted by the applicable regulatory changes to the aforementioned Patent Box tax regime.

We require liquidity in order to fund our operations, meet our obligations, make capital investments and reward our shareholders. Short-term liquidity is required, among others, to purchase raw materials, parts, components and utilities for car production, as well as to for personnel and other operating costs. In addition to our general working capital and operational needs, we require cash for capital investments to support continuous product portfolio renewal and expansion, as well as for research and development activities aimed at continually innovating and improving our cars, including the transition of our product portfolio to hybrid and electric technology. We also make investments to enhance manufacturing efficiency, improve capacity, implement sustainability initiatives, ensure environmental and regulatory compliance and carry out maintenance activities, among others. We fund our capital expenditure primarily with cash generated from our operating activities. We also use liquidity to reward our shareholders through dividends and share repurchases. At our Capital Markets Day held on June 16, 2022, we announced a new multi-year share repurchase program of approximately €2 billion that is expected to be executed by 2026, as well as an increase in our expected dividend payout ratio from 30 percent to 35 percent of Adjusted Net Profit starting in 2022.

    We centrally manage our operating cash management, liquidity and cash flow requirements with the objective of ensuring efficient and effective management of our funds. We believe that our cash generation together with our available liquidity, including committed credit lines granted from primary financial institutions, will be sufficient to meet our liquidity requirements. See also the “Net Debt and Net Industrial Debt” section below for additional details relating to our liquidity.

Our working capital is subject to month to month fluctuations due to, among other things, production and sales volumes, our financial services activities, the timing of capital expenditures and, to a lesser extent, tax payments. In particular, our inventory levels generally increase in the periods leading up to the launch of new models, and particularly at the end of the second quarter of the year when our inventory levels are generally higher to support the summer plant shutdown and as we deem necessary for agile supply chain management requirements.

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

Our investments for capital expenditure and research and development are, among other factors, influenced by the timing and number of new models launches. Our development costs, as well as our other investments in capital expenditure, generally peak in periods when we develop a significant number of new models to renew or expand our product portfolio. Our investments in research and development are also influenced by the timing of research costs for our Formula 1 activities, for which expenditure in a normal season is generally higher in the first and last quarters of the year, and also depends on the evolution of the applicable Formula 1 technical regulations, as well as the number and cadence of races during the course of the racing season. We are currently undergoing a period of structurally higher capital spending as we broaden our car architectures, prioritize innovation and advanced technologies, and transition our product portfolio to hybrid and electric powertrains. We also continue to make significant capital investments in operating assets and infrastructure projects that are important for our continued growth and development, including for the ongoing construction of our new e-building, which will be used mainly for the production of BEVs and related batteries.

The payment of income taxes also affects our cash flows. We typically pay the first tax advance payment in the second quarter of the year, together with the remaining tax balance due for the previous year, and the remaining part of the advance payment in the third and/or fourth quarters. In addition to our income tax expense, our tax payments for the six months ended June 30, 2023 and 2022 also benefited from applying the aforementioned Patent Box tax regime in Italy.

    The following table summarizes the cash flows from/(used in) operating, investing and financing activities for the six months ended June 30, 2023 and 2022. For additional details of our cash flows, see our Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this Semi-Annual Report.

For the six months ended June 30, 2023 cash and cash equivalents held by the Group decreased by €279 million compared to a decrease of €138 million for the six months ended June 30, 2022, primarily attributable to the combined effects of:

(i)an increase in cash flows used in financing activities of €197 million, driven by net repayments of debt of €121 million in the first half of 2023 compared to net proceeds from debt of €34 million in the first half of 2022 and to an increase in dividends paid of €79 million (€312 million in the first half 2023 compared to €233 million in the first half of 2022), partially offset by a decrease in share repurchases of €36 million (€180 million in the first half 2023 compared to €216 million in the first half of 2022);

(ii)an increase in cash flows used in investing activities of €49 million, driven by higher investments in intangible assets and property, plant and equipment reflecting our initiatives for product and infrastructure development; and

(iii)an increase in cash flows from operating activities of €120 million, driven by an increase in net profit before income tax expense, net financial expenses and amortization and depreciation of €257 million, partially offset by higher absorption of cash from working capital, mainly due to an increase in inventories driven by yearly production planning and an enriched product mix, as well as by lower collection of advances for cars in the first half of 2023 compared to the first half of 2022 which benefited from the start of collection of advances for the Daytona SP3.

    Our cash flows from operating activities for the six months ended June 30, 2023 were €688 million, primarily the result of:

(i)profit before taxes of €809 million adjusted for €304 million for depreciation and amortization expense, €13 million of net finance costs and net other non-cash expenses of €69 million (including provisions accrued and result from investments); and

(ii)€20 million of cash generated from the change in other operating assets and liabilities.

(iii)€287 million of cash absorbed from the net change in inventories, higher trade receivables and higher trade payables, primarily attributable to inventories for €251 million driven by yearly production planning and an enriched product mix, trade receivables for €85 million driven by higher car volumes and sponsorship agreements, partially offset by higher trade payables for €49 million;

(iv)€57 million related to cash absorbed by receivables from financing activities;

(v)€39 million of net finance costs paid; and

(vi)€144 million of income taxes paid.

Our cash flows from operating activities for the six months ended June 30, 2022 were €568 million, primarily the result of:

(i)profit before taxes of €612 million adjusted for €239 million for depreciation and amortization expense, €17 million of net finance costs and net other non-cash expenses of €60 million (including provisions accrued and result from investments); and

(ii)€140 million of cash generated from the change in other operating assets and liabilities primarily driven by advances received for the Ferrari Daytona SP3 and the 812 Competizione A.

(iii)€215 million of cash absorbed from the net change in inventories, higher trade receivables and lower trade payables, primarily attributable to inventories for €102 million driven by projected volume growth for the year, trade receivables for €96 million driven by higher volumes and sponsorship agreements, and trade payables for €17 million;

(iv)€100 million related to cash absorbed by receivables from financing activities;

(v)€19 million of net finance costs paid; and

(vi)€166 million of income taxes paid.

Investing Activities - Six Months Ended June 30, 2023

    For the six months ended June 30, 2023 our net cash used in investing activities was €347 million, primarily the result of capital expenditures of €233 million for intangible assets, mainly related to externally acquired and internally generated development costs and €116 million for property, plant and equipment. For a detailed analysis of additions to intangible assets and property, plant and equipment, see “Capital Expenditures”.

For the six months ended June 30, 2022 our net cash used in investing activities was €298 million, primarily the result of capital expenditures of €92 million of additions to property, plant and equipment, €205 million for additions to intangible assets, mainly related to externally acquired and internally generated development costs, and €1 million for investments in joint ventures. For a detailed analysis of additions to property, plant and equipment and intangible assets see “Capital Expenditures”.

For the six months ended June 30, 2023, net cash used in financing activities was €613 million, primarily the result of:

(i)€385 million for the full repayment of a bond previously issued in 2016;

(ii)€312 million of dividends paid (of which €5 million was to non-controlling interests);

(iii)€180 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans); and

(iv)€26 million for repayments of lease liabilities and other debt.

(v)€229 million in net proceeds from borrowings from banks and other financial institutions; and

(vi)€61 million of proceeds net of repayments related to our revolving securitization programs in the United States.

For the six months ended June 30, 2022 net cash used in financing activities was €416 million, primarily the result of:

(i)€233 million of dividends paid, of which €2 million was to non-controlling interests;

(ii)€216 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans);

(iii) €34 million of net change in borrowings from banks and other financial institutions; and

(iv)€8 million in repayments of lease liabilities.

(v)€63 million of proceeds net of repayments related to our revolving securitization programs in the United States; and

(vi)€12 million related to the net change in other debt.

Capital expenditures are defined as additions to property, plant and equipment (including right-of-use assets recognized in accordance with IFRS 16 — Leases) and intangible assets. Capital expenditures for the six months ended June 30, 2023 were €369 million and €308 million for the six months ended June 30, 2022.

    The following table sets forth a breakdown of capital expenditures by category for each of the six months ended June 30, 2023 and 2022:

Our total capital expenditures in intangible assets were €233 million for the six months ended June 30, 2023 (€205 million for the six months ended June 30, 2022.

The most significant investments in intangible assets relate to externally acquired and internally generated development costs. In particular, we make such investments to support the development of our current and future product offering. The capitalized development costs primarily include materials and personnel costs relating to the engineering, design and development activities focused on content enhancement of existing cars and new models, including to broaden and innovate our product portfolio and our ongoing investments in advanced technologies (including hybrid and electric), as well as the development of key components used in our cars, which are necessary to provide continuing performance upgrades to our customers and which we expect to continue to develop primarily in-house.

For the six months ended June 30, 2023 we invested €220 million in externally acquired and internally generated development costs, of which €158 million related to the development of models to be launched in future years and €62 million primarily related to the development of our current product portfolio and components.

For the six months ended June 30, 2022 we invested €194 million in externally acquired and internally generated development costs, of which €134 million related to the development of models to be launched in future years and €60 million primarily related to the development of our current product portfolio and components.

Our total capital expenditures in property, plant and equipment for the six months ended June 30, 2023 and 2022, were €136 million and €103 million, respectively.

For the six months ended June 30, 2023 and 2022, we made significant investments in infrastructure in line with our growth plans and our focus on the renewal and broadening of our product portfolio and supporting future model launches. In particular, we made investments:

•for the ongoing construction of our e-building, which will be used for the production of battery electric vehicles (BEVs) and related batteries and expected to be opened in mid 2024;

•for tracts of land adjacent to our facilities in Maranello as part of our expansion plans (with cumulative investments of €127 million since the start of 2019 to June 30, 2023); and

•for industrial tools needed for the production of cars and investments in car production lines (including those for models to be launched in future years), as well as investments related to our personalization programs and engine assembly lines.

At June 30, 2023, the Group had contractual commitments for the purchase of property, plant and equipment amounting to €221 million (€201 million at December 31, 2022).

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

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

    The following table sets forth the calculation of EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2023 and 2022, and provides a reconciliation of these non-GAAP measures to net profit. There were no adjustments impacting EBITDA, therefore Adjusted EBITDA was equal to EBITDA for the periods presented.

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

    The following table presents EBIT and Adjusted EBIT for the three and six months ended June 30, 2023 and 2022. There were no adjustments impacting EBIT, therefore Adjusted EBIT was equal to EBIT for the periods presented.

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

    The following table presents net profit and Adjusted Net Profit for the three and six months ended June 30, 2023 and 2022. There were no adjustments impacting net profit, therefore Adjusted Net Profit was equal to net profit for the periods presented.

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

    The following table presents Adjusted Basic Earnings per Common Share and Adjusted Diluted Earnings per Common Share for the three and six months ended June 30, 2023 and 2022. There were no adjustments impacting Basic Earnings per Common Share and Diluted Earnings per Common Share, therefore Adjusted Basic Earnings per Common Share and Adjusted Diluted Earnings per Common Share were equal to basic earnings per common share and diluted earnings per common share for the periods presented.

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

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

The following table sets forth a reconciliation of Net Debt and Net Industrial Debt at June 30, 2023 and December 31, 2022.

The Net Debt of Financial Services Activities, as defined above, mainly relates to our asset-backed financing (securitizations) of the receivables generated by our financial services activities in the United States, and amounted to €1,240 million at June 30, 2023 (€1,216 million at December 31, 2022), net of cash and cash equivalents available to our Financial Services Activities.

The following table presents our receivables from financing activities and our Net Debt of Financial Services Activities at June 30, 2023 and December 31, 2022:

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

    Cash and cash equivalents amounted to €1,110 million at June 30, 2023 compared to €1,389 million at December 31, 2022.

Approximately 81 percent of our cash and cash equivalents were denominated in Euro at June 30, 2023 (approximately 85 percent at December 31, 2022). Our cash and cash equivalents denominated in currencies other than the Euro are available mostly to Ferrari S.p.A. and certain subsidiaries which operate in areas other than Europe. Cash held in such countries may be subject to transfer restrictions depending on the jurisdictions in which these subsidiaries operate. In particular, cash held in China (including cash held in foreign currencies), which amounted to €69 million at June 30, 2023 (€97 million at December 31, 2022), is subject to certain repatriation restrictions and may only be repatriated as a repayment of payables or debt, or as dividends or capital distributions. We do not currently believe that such transfer restrictions have an adverse impact on our ability to meet our liquidity requirements.

    

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

    Cash collected from the settlement of receivables under securitization programs is subject to certain restrictions regarding its use and is primarily applied to repay principal and interest of the related funding. Such cash amounted to €52 million at June 30, 2023 (€44 million at December 31, 2022).

    

    Total available liquidity (defined as cash and cash equivalents plus undrawn committed credit lines) at June 30, 2023 was €1,710 million (€2,058 million at December 31, 2022).

    The following table summarizes our total available liquidity:

The undrawn committed credit lines at June 30, 2023 and December 31, 2022 relate to revolving credit facilities.

For further details relating to our debt, see Note 23 “Debt” in the Semi-Annual Condensed Consolidated Financial Statements included elsewhere in this document.

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

    

    The following table sets forth our Free Cash Flow and Free Cash Flow from Industrial Activities for the six months ended June 30, 2023 and 2022.

    Free Cash Flow for the six months ended June 30, 2023 was €340 million, an increase of €70 million compared to €270 million for the six months ended June 30, 2022. For an explanation of the drivers in Free Cash Flow see “Cash Flows” above.

    Free Cash Flow from Industrial Activities for the six months ended June 30, 2023 was €386 million compared to €359 million for the six months ended June 30, 2022. The increase in Free Cash Flow from Industrial Activities of €27 million was primarily attributable to increase of €257 million increase in net profit before income tax expense, net financial expenses and amortization and depreciation, partially offset by higher working capital, mainly due to an increase in inventories driven by yearly production planning and an enriched product mix, lower collection of advances for cars in the first half of 2023 compared to the first half of 2022 (which benefited from the start of collection of advances for the Daytona SP3) and higher investments in intangible assets and property, plant and equipment reflecting our initiatives for product and infrastructure development. For an explanation of the drivers in Free Cash Flow see “Cash Flows” above.

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

We face a variety of risks and uncertainties in our business. For a description of these risks and uncertainties please see “Risk Factors” in the Group’s Annual Report and Form 20-F for the year ended December 31, 2022 filed with the AFM and the SEC on February 24, 2023. All such risks factors should be read in conjunction with this Semi-Annual Report. Additional risks and uncertainties that we are unaware of, or that we currently believe to be immaterial, may also become important factors that affect us.

2023 guidance upgraded, based on the following assumptions:

•Strong product mix and personalizations higher than initially expected

•Better revenues from racing activities

•Continuing cost inflation

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

•Industrial free cash flow generation sustained by strong profitability, partially offset by disciplined capital expenditures and negative change in working capital

_____________________________

(1)Calculating using the weighted average diluted number of common shares for the year ended December 31, 2022 (183,072 thousand).

			Share capital												Retained earnings and other reserves						Cash flow hedge reserve						Currency translation differences						Remeasurement of defined benefit plans						Equity attributable to owners of the parent						Non-controlling interests									Total
			(€ thousand)
At December 31, 2022			2,573												2,499,771						46,233						52,618						(8,338)						2,592,857						9,630									2,602,487
Net profit			—												628,721						—						—						—						628,721						2,587									631,308
Other comprehensive income			—												—						3,505						(3,384)						—						121						(443)									(322)
Dividends to owners of the parent			—												(328,297)						—						—						—						(328,297)						—									(328,297)
Dividends to non-controlling interests			—												—						—						—						—						—						(4,890)									(4,890)
Share-based compensation			—												11,483						—						—						—						11,483						—									11,483
Share repurchases			—												(179,590)						—						—						—						(179,590)						—									(179,590)
At June 30, 2023			2,573												2,632,088						49,738						49,234						(8,338)						2,725,295						6,884									2,732,179

.

    

    Ferrari is among the world’s leading luxury brands. The activities of Ferrari N.V. (herein referred to as “Ferrari” or the “Company” and together with its subsidiaries the “Group”) and its subsidiaries are focused on the design, engineering, production and sale of luxury performance sports cars. The cars are designed, engineered and produced in Maranello and Modena, Italy and sold in more than 60 markets worldwide through a network of 180 authorized dealers operating 197 points of sale. The Ferrari brand is licensed to a selected number of producers and retailers of luxury and lifestyle goods, with Ferrari branded merchandise also sold through a network of 14 Ferrari-owned directly operated stores and 2 franchised stores, as well as on Ferrari’s website. To facilitate the sale of new and pre-owned cars, the Group provides various forms of financing to clients and dealers, including directly or through cooperation or other agreements with financial institutions. Ferrari also participates in the Formula 1 World Championship through its team Scuderia Ferrari and the World Endurance Championship through its Ferrari Endurance Teams. Ferrari’s racing activities are a core element of Ferrari marketing and promotional activities, as well as an important source of innovation to support the technological advancement of Ferrari’s product portfolio.

    

    These Semi-Annual Condensed Consolidated Financial Statements of Ferrari N.V. were authorized for issuance on August 2, 2023, and have been prepared in compliance with IAS 34 — Interim Financial Reporting. The Semi-Annual Condensed Consolidated Financial Statements should be read in conjunction with the Group’s consolidated financial statements at and for the year ended December 31, 2022 (the “Consolidated Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and IFRS as endorsed by the European Union. There are no material effects on these Semi-Annual Condensed Consolidated Financial Statements resulting from differences between IFRS as issued by the IASB and IFRS as endorsed by the European Union. The designation IFRS also includes International Accounting Standards (“IAS”) as well as the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The accounting policies adopted are consistent with those used at December 31, 2022, except as described in the section “New standards and amendments effective from January 1, 2023”.

    

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

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

The following new standards and amendments effective from January 1, 2023 were adopted by the Group.

In May 2017 the IASB issued IFRS 17 — Insurance Contracts, which establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued as well as guidance relating to reinsurance contracts held and investment contracts with discretionary participation features issued. In June 2020 the IASB issued amendments to IFRS 17 aimed at helping companies implement IFRS 17 and make it easier for companies to explain their financial performance. The new standard and amendments are effective on or after January 1, 2023. There was no effect from the adoption of these amendments.

In February 2021 the IASB issued amendments to IAS 1 — Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies which require companies to disclose their material accounting policy information rather than their significant accounting policies and provide guidance on how to apply the concept of materiality to accounting policy disclosures. These amendments are effective on or after January 1, 2023. There was no effect from the adoption of these amendments.

In February 2021 the IASB issued amendments to IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates which clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. These amendments are effective on or after January 1, 2023. There was no effect from the adoption of these amendments.

In May 2021 the IASB issued amendments to IAS 12 — Income Taxes: Deferred Tax related to Assets and Liabilities Arising From a Single Transaction that clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. These amendments are effective on or after January 1, 2023. There was no effect from the adoption of these amendments.

In December 2021 the IASB issued an amendments to IFRS 17 — Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 - Comparative Information, which provides a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The amendment is effective on or after January 1, 2023. There was no effect from the adoption of these amendments.

In June 2020 the IASB issued amendments to IFRS 4 — Insurance Contracts which defer the expiry date of the temporary exemption from applying IFRS 9 to annual periods beginning on or after January 1, 2023. There was no effect from the adoption of these amendments.

In May 2023, the IASB issued amendments to IAS 12 — Income taxes: International Tax Reform – Pillar Two Model Rules, to clarify the application of IAS 12 — Income taxes to income taxes arising from tax law enacted or substantively enacted to implement the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) Pillar Two model rules (Pillar Two income taxes). The amendments introduce: (i) a mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules, which was effective immediately upon issuance of the amendment, and (ii) disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before the effective date of the Pillar Two model rules, which apply for annual reporting periods beginning on or after January 1, 2023, but not for any interim periods ending on or before December 31, 2023. The Group is currently evaluating the impact of the disclosure requirements for the year end consolidated financial statements.

The standards, amendments and interpretations issued by the International Accounting Standards Board that will have mandatory application in 2024 or subsequent years are listed below:

In January 2020 the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current to clarify how to classify debt and other liabilities as current or non-current, and in particular how to classify liabilities with an uncertain settlement date and liabilities that may be settled by converting to equity. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments.

In September 2022 the IASB issued amendments to IFRS 16 — Leases: Liability in a Sale and Leaseback to improve the requirements for sale and leaseback transactions, which specify the measurement of the liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments.

In October 2022 the IASB issued amendments to IAS 1 — Presentation of Financial Statements: Non-current Liabilities with Covenants, that clarify how conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. These amendments are effective on or after January 1, 2024. The Group does not expect any material impact from the adoption of these amendments.

In May 2023, the IASB issued amendments to IAS 7 — Statement of Cash Flows and IFRS 7 — Financial Instruments: Disclosures: Supplier Finance Arrangements, that introduce new disclosure requirements to enhance the transparency and usefulness of the information provided by entities about supplier finance arrangements and are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk. The amendments are effective on or after January 1, 2024. The Group is evaluating the potential impact from the adoption of these amendments.

There were no changes in the scope of consolidation for the periods presented in these Semi-Annual Condensed Consolidated Financial Statements.

    

The Group is exposed to various operational financial risks, including financial market risk (relating mainly to foreign currency exchange rates and, to a lesser extent, interest rates and commodity prices), credit risk and liquidity risk. The Semi-Annual Condensed Consolidated Financial Statements do not include all of the information and disclosures on financial risk management required in the annual consolidated financial statements. For a detailed description of the financial risk factors and financial risk management of the Group, reference should be made to Note 30 “Qualitative and Quantitative Information on Financial Risks” of the Consolidated Financial Statements at and for the year ended December 31, 2022.

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

    Net revenues are as follows:

			For the three months ended June 30,												For the six months ended June 30,
			2023						2022						2023						2022
			(€ thousand)
Revenues from:
Cars and spare parts			1,257,977						1,095,284						2,499,458						2,103,383
Sponsorship, commercial and brand			147,476						122,557						277,226						235,199
Engines			27,614						41,074						60,327						78,045
Other			40,641						32,576						65,703						60,846
Total net revenues			1,473,708						1,291,491						2,902,714						2,477,473

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

Interest and other financial income from financial services activities included within net revenues for the three months ended June 30, 2023 and 2022 amounted to €24,605 thousand and €15,964 thousand, respectively, and for the six months ended June 30, 2023 and 2022 amounted to €46,242 thousand and €30,180 thousand, respectively.

    Cost of sales for the three months ended June 30, 2023 and 2022 amounted to €726,312 thousand and €678,894 thousand, respectively, and for the six months ended June 30, 2023 and 2022 amounted to €1,437,348 thousand and €1,267,096 thousand, respectively, consisting mainly of the cost of materials, components and labor related to the manufacturing and distribution of cars and spare parts. Cost of sales also include depreciation, insurance and transportation costs, warranty and product-related costs, as well as production costs for engines sold to Maserati and engines rented to other Formula 1 racing teams.

Interest and other financial expenses from financial services activities included within cost of sales for the three months ended June 30, 2023 and 2022 amounted to €14,752 thousand and €5,643 thousand, respectively, and for the six months ended June 30, 2023 and 2022 amounted to €27,611 thousand and €8,755 thousand, respectively.

Selling, general and administrative costs are as follows:

			For the three months ended June 30,												For the six months ended June 30,
			2023						2022						2023						2022
			(€ thousand)
Selling costs			59,474						58,464						119,965						106,337
General and administrative costs			53,895						45,019						107,471						87,110
Total selling, general and administrative costs			113,369						103,483						227,436						193,447

    

Selling costs consist mainly of costs for sales personnel, marketing and events, and retail stores. Costs for marketing

and events primarily relate to corporate events, trade shows and media and client events for the launch of new models, lifestyle events, including the use of digital solutions, as well as sponsorship and indirect marketing costs incurred mainly through the Formula 1 racing team, Scuderia Ferrari.

General and administrative costs consist mainly of administration and other general expenses, including for personnel, that are not directly attributable to manufacturing, sales or research and development activities.

    Research and development costs are as follows:

			For the three months ended June 30,												For the six months ended June 30,
			2023						2022						2023						2022
			(€ thousand)
Research and development costs expensed during the period			116,184						125,690						252,108						269,850
Amortization of capitalized development costs			77,690						57,985						155,858						111,290
Total research and development costs			193,874						183,675						407,966						381,140

    Research and development costs expensed during the period primarily relate to research and development activities for Formula 1 racing as well as development activities to support the innovation of our product portfolio and components, in particular, in relation to electric and other new technologies. Amortization of capitalized development costs have increased in recent years as a result of our strategy to update and broaden our product range and significantly increase our efforts relating to innovation and advanced technologies, including hybrid and electric.

Research and development costs for the three and six months ended June 30, 2023 and 2022 are recognized net of technology-related government incentives.

    Other expenses/(income), net are as follows: