Exhibit 99.1

Ferrari N.V.

At and for the three and nine months ended September 30, 2023

____________________________________________________________________________________________________

John Elkann

Piero Ferrari

Benedetto Vigna

Delphine Arnault

Francesca Bellettini

Eddy Cue

Sergio Duca

John Galantic

Maria Patrizia Grieco

Adam Keswick

Mike Volpi

DELOITTE & TOUCHE S.p.A.

    The Interim Condensed Consolidated Financial Statements at and for the three and nine months ended September 30, 2023 (the “Interim Condensed Consolidated Financial Statements”) included in this Interim Report have been prepared in compliance with IAS 34 — Interim Financial Reporting (IAS 34). The accounting principles applied are consistent with those used for the preparation of the annual consolidated financial statements at and for the year ended December 31, 2022 (the “Annual Consolidated Financial Statements”), except as otherwise stated in “New standards and amendments effective from January 1, 2023” in the notes to the Interim Condensed Consolidated Financial Statements.

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

•the performance of our racing teams, the expenses we incur for and the sponsorship and commercial revenues we generate from racing, as well as the popularity of motor sports 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, pandemics, and conflicts, including the ongoing conflict between Russia and Ukraine and the more recent hostilities between Israel and Hamas;

•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;

•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;

•the performance of our lifestyle activities;

•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.

    

			For the three months ended September 30,												For the nine months ended September 30,
			2023						2022						2023						2022
			(€ million, except per share data)
Net revenues			1,544						1,250						4,447						3,727
Operating profit (EBIT)			423						299						1,245						929
Profit before taxes			426						285						1,235						897
Net profit			332						228						963						718
Net profit attributable to:
Owners of the parent			330						226						959						713
Non-controlling interests			2						2						4						5
Basic earnings per common share (in Euro) (1)			1.82						1.24						5.28						3.90
Diluted earnings per common share (in Euro) (1)			1.82						1.23						5.28						3.88
Dividend approved per common share (in Euro) (2) (3)			1.810						1.362						1.810						1.362
Dividend approved per common share (in USD) (2) (3) (4)			1.98756						1.48158						1.98756						1.48158

_____________________________

(1)See Note 13 “Earnings per Share” to the Interim Condensed Consolidated Financial Statements for the calculation of basic and diluted earnings per common share for the three and nine months ended September 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, was 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 September 30,																								For the nine months ended September 30,
			2023						%						2022						%						2023						%						2022						%
EMEA
Germany			312						9.0		%				304						9.5		%				1,092						10.5		%				1,068						10.8		%
UK			229						6.6		%				247						7.7		%				731						7.0		%				725						7.3		%
Italy			170						4.9		%				152						4.8		%				575						5.5		%				540						5.5		%
France			140						4.1		%				121						3.8		%				391						3.8		%				366						3.7		%
Switzerland			105						3.0		%				119						3.7		%				365						3.5		%				399						4.0		%
Middle East (2)			87						2.5		%				91						2.9		%				311						3.0		%				291						2.9		%
Other EMEA (3)			355						10.3		%				257						8.1		%				1,105						10.6		%				1,042						10.6		%
Total EMEA			1,398						40.4		%				1,291						40.5		%				4,570						43.9		%				4,431						44.8		%
Americas (4)			1,096						31.7		%				905						28.4		%				2,927						28.1		%				2,616						26.4		%
of which United States of America			935						27.0		%				744						23.3		%				2,497						24.0		%				2,234						27.8		%
Mainland China, Hong Kong and Taiwan			395						11.4		%				431						13.5		%				1,130						10.8		%				1,074						10.9		%
of which Mainland China			342						9.9		%				386						12.1		%				929						8.9		%				891						9.0		%
Rest of APAC (5)			570						16.5		%				561						17.6		%				1,791						17.2		%				1,773						17.9		%
Total			3,459						100.0		%				3,188						100.0		%				10,418						100.0		%				9,894						100.0		%

_____________________________

Highlights for the three months ended September 30, 2023 included the following:

•Following a cash tender offer on the Group’s €650 million principal 1.500 percent notes due May 27, 2025 (2025 Bond), on July 14, 2023, the Group accepted for purchase valid tenders of the 2025 Bond for an aggregate nominal amount of €199 million at a purchase price of €191 million, and recognized gains of €8 million. The repurchases were settled on July 18, 2023.

•Scuderia Ferrari renewed its multi-year partnership with sports company PUMA, which will become its Premium Partner starting from next year. In the next years PUMA will also continue to be the licensing partner for Ferrari-branded products and the supplier of the Formula 1 team and race wear for Ferrari.

•The increasing hostilities between Israel and Hamas have driven management to carefully monitor the geopolitical environment and its potential implications on our business globally. Currently, there are no impacts on Ferrari's business.

    The following is a discussion of the results of operations for the three months ended September 30, 2023 compared to the three months ended September 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 September 30, 2023 were €1,544 million, an increase of €294 million or 23.5 percent (an increase of 25.8 percent on a constant currency basis), compared to €1,250 million for the three months ended September 30, 2022.

    The change in net revenues was attributable to the combination of (i) a €277 million increase in cars and spare parts, (ii) a €18 million increase in sponsorship, commercial and brand and (iii) a €12 million increase in other net revenues, partially offset by (iv) a €13 million decrease in engines.

    Net revenues generated from cars and spare parts were €1,330 million for the three months ended September 30, 2023, an increase of €277 million or 26.5 percent, compared to €1,053 million for the three months ended September 30, 2022.

The increase in net revenues from cars and spare parts was primarily attributable to higher car volumes, richer product and country mix, personalizations and pricing. Foreign currency exchange impact, including hedging transactions, was negative, mainly driven by the Chinese Yuan, Japanese Yen and U.S. Dollar.

Total shipments increased by 271 cars, from 3,188 cars in the third quarter of 2022 to 3,459 cars in the third quarter of 2023, reflecting volume, geographic and product allocation plans by quarter. The product portfolio in the third quarter included 9 internal combustion engine (ICE) models and 4 hybrid engine models, which represented 48.7 percent and 51.3 percent of total shipments, respectively. Shipments during the quarter were driven by the 296 and SF90 families, as well as the 812 Competizione A and the Purosangue, which were in the ramp up phase, partially offset by lower shipments of the F8 Tributo, which phased out in the first quarter of the year, and the F8 Spider, which is approaching the end of its lifecycle. Shipments of the Daytona SP3 were in line with plans.

The €277 million increase in net revenues from cars and spare parts was composed of: (i) a €161 million increase in EMEA, (ii) a €111 million increase in Americas, (iii) a €27 million increase in APAC and (iv) a €22 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 €145 million for the three months ended September 30, 2023, an increase of €18 million or 13.8 percent, compared to €127 million for the three months ended September 30, 2022, mainly attributable to new racing sponsorships and a better prior year Formula 1 ranking.

    Net revenues generated from engines were €28 million for the three months ended September 30, 2023, a decrease of €13 million or 33.0 percent, compared to €41 million for the three months ended September 30, 2022, driven by a decrease in engines sold to Maserati, for which the contract will expire at the end of 2023.

Other revenues were €41 million for the three months ended September 30, 2023, an increase of €12 million or 40.1 percent, compared to €29 million for the three months ended September 30, 2022, mainly driven by an increase of financial services activities.

    Cost of sales for the three months ended September 30, 2023 was €779 million, an increase of €124 million or 18.9 percent, compared to €655 million for the three months ended September 30, 2022. As a percentage of net revenues, cost of sales was 50.4 percent for the three months ended September 30, 2023 compared to 52.4 percent for the three months ended September 30, 2022.

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

    Selling, general and administrative costs for the three months ended September 30, 2023 were €119 million, an increase of €12 million or 11.6 percent, compared to €107 million for the three months ended September 30, 2022. As a percentage of net revenues, selling, general and administrative costs were 7.7 percent for the three months ended September 30, 2023 compared to 8.5 percent for the three months ended September 30, 2022.

The increase of €12 million was mainly attributable to organizational development and digital infrastructure.

    Research and development costs for the three months ended September 30, 2023 were €221 million, an increase of €39 million or 21.2 percent, compared to €182 million for the three months ended September 30, 2022. As a percentage of net revenues, research and development costs were 14.3 percent for the three months ended September 30, 2023 compared to 14.6 percent for the three months ended September 30, 2022.

The increase of €39 million was attributable to (i) higher amortization of capitalized development costs of €27 million driven by a general increase in capitalized development costs in recent years (from €320 million in 2020 to €363 million in 2021 and €416 million in 2022) in line with our strategy to innovate and broaden our product portfolio, and (ii) higher research and development costs expensed of €12 million.

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

    EBIT for the three months ended September 30, 2023 was €423 million, an increase of €124 million or 41.6 percent, compared to €299 million for the three months ended September 30, 2022. EBIT margin for the three months ended September 30, 2023 was 27.4 percent compared to 23.9 percent for the three months ended September 30, 2022.

The increase in EBIT was primarily attributable to the combined effects of (i) positive volume impact of €33 million, (ii) positive product and country mix impact of €170 million, sustained by the Daytona SP3, the 812 Competizione and the SF90 families, as well as the growth in the Americas and higher contribution from personalizations and pricing, (iii) negative contribution of €39 million from research and development costs, (iv) negative contribution of €12 million from selling, general and administrative costs, (v) negative contribution of €5 million from the combined effects of higher industrial costs, reflecting the effects of inflation and higher depreciation, partially offset by a better prior year Formula 1 ranking and new racing sponsorships, and (vi) negative foreign currency exchange impact of €23 million (including foreign currency hedging instruments).

    Financial income, net for the three months ended September 30, 2023 was €3 million compared to financial expenses, net of €14 million for the three months ended September 30, 2022, mainly driven by higher interest income on cash and cash equivalents, gains of €8 million realized on the partial cash tender executed during the third quarter of 2023 on a bond due in 2025 and foreign currency exchange impact (including the net costs of hedging).

Income tax expense for the three months ended September 30, 2023 was €94 million, an increase of €37 million, or 64.4 percent, compared to €57 million for the three months ended September 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 September 30, 2023 and 2022 benefited from the application of the Patent Box tax regime.

The effective tax rate was 22.0 percent for the three months ended September 30, 2023 and 20.0 percent for the three months ended September 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 nine months ended September 30, 2023 compared to the nine months ended September 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 nine months ended September 30, 2023 were €4,447 million, an increase of €720 million or 19.3 percent (an increase of 18.8 percent on a constant currency basis), compared to €3,727 million for the nine months ended September 30, 2022.

    The change in net revenues was attributable to the combination of (i) a €674 million increase in cars and spare parts, (ii) a €60 million increase in sponsorship, commercial and brand and (iii) a €17 million increase in other net revenues, partially offset by (iv) a €31 million decrease in engines.

    Net revenues generated from cars and spare parts were €3,830 million for the nine months ended September 30, 2023, an increase of €674 million or 21.4 percent, compared to €3,156 million for the nine months ended September 30, 2022.

    The increase in net revenues from cars and spare parts was primarily attributable to 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 and partially offset by the Japanese Yen and Chinese Yuan.

Total shipments increased by 524 cars, or 5.3 percent, from 9,894 cars for the nine months ended September 30, 2022 to 10,418 cars for the nine months ended September 30, 2023. The product portfolio for the nine months ended September 30, 2023 included 10 internal combustion engine (ICE) models and 4 hybrid engine models, which represented 57.1 percent and 42.9 percent of shipments, respectively. The increase in shipments was mainly driven by the 296, SF90 and 812 Competizione families, as well as the Purosangue, which was in ramp up phase following the first deliveries in the second quarter of the year, partially offset by lower shipments of the F8 Tributo, which phased out in the first quarter of the year, and the F8 Spider, which is approaching the end of its lifecycle. Shipments of the Daytona SP3 were in line with plans.

    

The €674 million increase in net revenues from cars and spare parts was composed of: (i) a €340 million increase in EMEA, (ii) a €262 million increase in Americas, (iii) a €65 million increase in APAC and (iv) a 7 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 €422 million for the nine months ended September 30, 2023, an increase of €60 million or 16.5, compared to €362 million for the nine months ended September 30, 2022, mainly attributable to new racing sponsorships, a better prior year Formula 1 ranking and lifestyle-related activities.

    Net revenues generated from engines were €88 million for the nine months ended September 30, 2023, a decrease of €31 million or 26.3 percent, compared to €119 million for the nine months ended September 30, 2022. The €31 million decrease was mainly attributable to a decrease in engines sold to Maserati, which is approaching contract expiration at the end of 2023.

Other revenues were €107 million for the nine months ended September 30, 2023, an increase of €17 million or 18.4 percent, compared to €90 million for the nine months ended September 30, 2022, mainly driven by an increase of financial services activities.

    Cost of sales for the nine months ended September 30, 2023 was €2,216 million, an increase of €294 million or 15.3 percent, compared to €1,922 million for the nine months ended September 30, 2022. As a percentage of net revenues, cost of sales was 49.8 percent for the nine months ended September 30, 2023 compared to 51.6 percent for the nine months ended September 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 nine months ended September 30, 2023 were €346 million, an increase of €46 million or 15.5 percent, compared to €300 million for the nine months ended September 30, 2022. As a percentage of net revenues, selling, general and administrative costs were 7.8 percent for the nine months ended September 30, 2023 compared to 8.0 percent for the nine months ended September 30, 2022.

The increase of €46 million was mainly attributable to organizational development and digital infrastructure, as well as marketing and lifestyle activities.

    Research and development costs for the nine months ended September 30, 2023 were €629 million, an increase of €66 million or 11.6 percent, compared to €563 million for the nine months ended September 30, 2022. As a percentage of net revenues, research and development costs were 14.1 percent for the nine months ended September 30, 2023 compared to 15.1 percent for the nine months ended September 30, 2022.

The increase of €66 million was attributable to higher amortization of capitalized development costs of €72 million driven by a general increase in capitalized development costs in recent years (from €320 million in 2020 to €363 million in 2021 and €416 million in 2022) in line with our strategy to innovate and broaden our product portfolio, partially offset by lower research and development costs expensed of €6 million.

    EBIT for the nine months ended September 30, 2023 was €1,245 million, an increase of €316 million or 34.1 percent, compared to €929 million for the nine months ended September 30, 2022. EBIT margin for the nine months ended September 30, 2023 was 28.0 percent compared to 24.9 percent for the nine months ended September 30, 2022.

    The increase in EBIT was primarily attributable to the combined effects of (i) positive volume impact of €58 million, (ii) positive product and country mix impact of €349 million, sustained by the Daytona SP3, the 812 Competizione and the SF90 families, as well as the growth in the Americas and Mainland China, Hong Kong and Taiwan, and higher contribution from personalizations and pricing, (iii) negative contribution of €66 million from research and development costs, (iv) negative contribution of €46 million from selling, general and administrative costs, (v) negative contribution of €4 million from the combined effects of higher industrial costs, reflecting the effects of inflation and higher depreciation, substantially offset by higher commercial revenues from a better prior year Formula 1 ranking, 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, and (vi) positive foreign currency exchange impact of €25 million (including foreign currency hedging instruments).

    Financial expenses, net for the nine months ended September 30, 2023 were €10 million, a decrease of €22 million, or 67.0 percent compared to €32 million for the nine months ended September 30, 2022, driven by higher interest income on cash and cash equivalents and gains of €8 million realized on the partial cash tender executed during the third quarter of 2023 on a bond due in 2025, partially offset by foreign currency exchange impact (including the net costs of hedging).

    Income tax expense for the nine months ended September 30, 2023 was €272 million, an increase of €93 million, or 51.4 percent, compared to €179 million for the nine months ended September 30, 2022.

The increase in income tax expense was primarily attributable to an increase in profit before taxes. Income taxes for the nine months ended September 30, 2023 and 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 nine months ended September 30, 2023 and for the nine months ended September 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 components.

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 nine months ended September 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 nine months ended September 30, 2023 and 2022. For additional details of our cash flows, see our Interim Condensed Consolidated Financial Statements included elsewhere in this Interim Report.

For the nine months ended September 30, 2023 cash and cash equivalents held by the Group decreased by €377 million compared to an increase of €19 million for nine months ended September 30, 2022, primarily attributable to the combined effects of:

(i)an increase in cash flows from operating activities of €217 million, driven by an increase in net profit excluding non-cash items, partially offset by higher absorption of cash for 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 for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, which mainly benefited from the collection of advances for the Daytona SP3;

(ii)an increase in cash flows used in investing activities of €55 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 used in financing activities of €542 million, driven by an increase in (i) repayments of debt of €591 million (€645 million for the nine months ended September 30, 2023 compared to €54 million for the nine months ended September 30, 2022), (ii) dividends paid of €81 million (€332 million for the nine months ended September 30, 2023 compared to €251 million for the nine months ended September 30, 2022) and (iii) share repurchases of €73 million (€374 million for the nine months ended September 30, 2023 compared to €301 million for the nine months ended September 30, 2022), partially offset by an increase in (iv) proceeds from debt of €203 million (€341 million for the nine months ended September 30, 2023 compared to €138 million for the nine months ended September 30, 2022).

    Our cash flows from operating activities for the nine months ended September 30, 2023 were €1,189 million, primarily the result of:

(i)profit before taxes of €1,235 million adjusted for €476 million for depreciation and amortization expense, €10 million of net finance costs and net other non-cash expenses of €100 million (primarily including provisions accrued for €46 million and €17 million of share-based compensation expense); and

(ii)€53 million of cash generated from the change in other operating assets and liabilities, primarily driven by advances received for our cars.

(iii)€402 million of cash absorbed from the net change in inventories, trade receivables and trade payables, primarily attributable to inventories for €250 million driven by yearly production planning and an enriched product mix, trade receivables for €71 million driven by higher car volumes and racing sponsorship agreements, and a decrease in trade payables for €81 million;

(iv)€89 million related to cash absorbed by receivables from financing activities;

(v)€43 million of net finance costs paid; and

(vi)€151 million of income taxes paid.

Operating Activities - Nine Months Ended September 30, 2022

Our cash flows from operating activities for the nine months ended September 30, 2022 were €972 million, primarily the result of:

(i)profit before taxes of €897 million adjusted for €375 million for depreciation and amortization expense, €32 million of net finance costs and net other non-cash expenses of €77 million (including provisions accrued and result from investments); and

(ii)€154 million of cash generated from the change in other operating assets and liabilities which mainly benefited from the collection of advances for the Daytona SP3 and the 812 Competizione A.

(iii)€214 million of cash absorbed from the net change in inventories, higher trade receivables and lower trade payables, primarily attributable to inventories for €106 million driven by projected volume growth for the year, trade receivables for €54 million driven by higher volumes and sponsorship agreements, and trade payables for €54 million;

(iv)€141 million related to cash absorbed by receivables from financing activities driven by an increase in the portfolio;

(v)€14 million of net finance costs paid; and

(vi)€194 million of income taxes paid.

Investing Activities - Nine Months Ended September 30, 2023

    For the nine months ended September 30, 2023 our net cash used in investing activities was €551 million, primarily the result of capital expenditures of €342 million for intangible assets, mainly related to externally acquired and internally generated development costs and €212 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 nine months ended September 30, 2022 our net cash used in investing activities was €496 million, primarily the result of capital expenditures of €308 million for additions to intangible assets, mainly related to externally acquired and internally generated development costs, €187 million of additions to property, plant and equipment, 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 nine months ended September 30, 2023, net cash used in financing activities was €1,010 million, primarily the result of:

(i)€385 million for the full repayment upon maturity of a bond previously issued in 2016 and €191 million for the partial repayment of a bond due in 2025 following a tender offer by the Group;

(ii)€374 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans);

(iii)€332 million of dividends paid (of which €5 million was to non-controlling interests); and

(iv)€18 million for repayments of lease liabilities and other debt.

(v)€198 million in net proceeds from borrowings from banks and other financial institutions; and

(vi)€92 million of proceeds net of repayments related to our revolving securitization programs in the United States.

For the nine months ended September 30, 2022 net cash used in financing activities was €468 million, primarily the result of:

(i)€301 million to repurchase common shares under the Company’s share repurchase program (including the Sell to Cover practice under the equity incentive plans);

(ii)€251 million of dividends paid, of which €2 million was to non-controlling interests;

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

(iv)€12 million in repayments of lease liabilities.

(v)€125 million of proceeds net of repayments related to our revolving securitization programs in the United States; and

(vi)€5 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 nine months ended September 30, 2023 were €592 million and €510 million for the nine months ended September 30, 2022.

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

Our total capital expenditures in intangible assets were €342 million for the nine months ended September 30, 2023 (€308 million for the nine months ended September 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.

In recent periods, our capitalized developments costs have significantly increased for the aforementioned initiatives, from €288 million for nine months ended September 30, 2022 to €323 million nine months ended September 30, 2023, and, on an annual basis, from €320 million in 2020 to €363 million in 2021 and €416 million in 2022. This has contributed to an increase in the proportion of capitalized development costs compared to total research and development costs, including the effects of 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 and the development of the power unit to be introduced in 2026 (in accordance with applicable FIA financial regulations). In particular, capitalized development costs as a proportion of total research and development costs increased to 39.5 percent for the nine months ended September 30, 2023 compared to 31.4 percent for the nine months ended September 30, 2022.

For the nine months ended September 30, 2023 we invested €323 million in externally acquired and internally generated development costs, of which €234 million related to the development of models to be launched in future years and €89 million primarily related to the development of our current product portfolio and components.

For the nine months ended September 30, 2022 we invested €288 million in externally acquired and internally generated development costs, of which €205 million related to the development of models to be launched in future years and €83 million primarily related to the development of our current product portfolio and components.

Our total capital expenditures in property, plant and equipment for the nine months ended September 30, 2023 and 2022, were €250 million and €202 million, respectively.

For the nine months ended September 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 components 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 September 30, 2023);

•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 September 30, 2023 the Group had contractual commitments for the purchase of property, plant and equipment amounting to €176 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, financial expenses/(income), net 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 nine months ended September 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 nine months ended September 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 nine months ended September 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 nine months ended September 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 Interim 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 September 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 €1,297 million at September 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 September 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 Interim Consolidated Financial Statements included elsewhere in this document.

    Cash and cash equivalents amounted to €1,012 million at September 30, 2023 compared to €1,389 million at December 31, 2022.

The Euro represented 80 percent of our cash and cash equivalents at September 30, 2023 (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 September 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 September 30, 2023 (€44 million at December 31, 2022).

    

    Total available liquidity (defined as cash and cash equivalents plus undrawn committed credit lines) at September 30, 2023 was €1,612 million (€2,058 million at December 31, 2022).

    The following table summarizes our total available liquidity:

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

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

Free Cash Flow and Free Cash Flow from Industrial Activities 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 nine months ended September 30, 2023 and 2022.

    Free Cash Flow for the nine months ended September 30, 2023 was €636 million, an increase of €160 million compared to €476 million for the nine months ended September 30, 2022. For an explanation of the drivers in Free Cash Flow see “Cash Flows” above.

    Free Cash Flow from Industrial Activities for the nine months ended September 30, 2023 was €707 million compared to €596 million for the nine months ended September 30, 2022. The increase in Free Cash Flow from Industrial Activities of €111 million was primarily attributable to an increase of €417 million in net profit before income tax expense, financial expenses/(income), net 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 for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 (which mainly 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.

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

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 Interim Report. Additional risks and uncertainties that we are unaware of, or that we currently believe to be immaterial, may also become important factors that affect us.

Upward revised 2023 guidance, based on the following assumptions for the year:

•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			—												958,542						—						—						—						958,542						4,422									962,964
Other comprehensive (loss)/income			—												—						(31,798)						1,154						—						(30,644)						(282)									(30,926)
Dividends to owners of the parent			—												(328,631)						—						—						—						(328,631)						—									(328,631)
Dividends to non-controlling interests			—												—						—						—						—						—						(4,890)									(4,890)
Share-based compensation			—												16,791						—						—						—						16,791						—									16,791
Share repurchases			—												(374,399)						—						—						—						(374,399)						—									(374,399)
At September 30, 2023			2,573												2,772,074						14,435						53,772						(8,338)						2,834,516						8,880									2,843,396

.

    

    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 178 authorized dealers operating 196 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 Interim Condensed Consolidated Financial Statements of Ferrari N.V. were authorized for issuance on November 2, 2023, and have been prepared in compliance with IAS 34 — Interim Financial Reporting. The Interim Condensed Consolidated Financial Statements should be read in conjunction with the Group’s consolidated financial statements at and for the year ended December 31, 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 Interim Condensed Consolidated Financial Statements resulting from differences between IFRS as issued by the IASB and IFRS as endorsed by the European Union. The designation IFRS also includes International Accounting Standards (“IAS”) as well as the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC” and “SIC”). The accounting policies adopted are consistent with those used at December 31, 2022 except as described in the section “New standards and amendments effective from January 1, 2023”.

    

    The preparation of the Interim Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities as well as 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 Interim Condensed Consolidated Financial Statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the period in which the circumstances change. Reference should be made to the section “Use of estimates” in the Consolidated Financial Statements for a detailed description of the more significant valuation procedures used by the Group.

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

In the interim consolidated income statement, the Group presents a subtotal for its operating profit before interest and taxes which is named Operating profit Earnings Before Interest and Taxes (EBIT). The terms Operating profit and EBIT are used synonymously throughout these Interim Condensed Consolidated Financial Statements. Operating profit (EBIT) distinguishes between the profit before taxes arising from operating items and those arising from financing activities. Operating profit (EBIT) is one of the primary measures used by the Board of Directors (the Group’s “Chief Operating Decision Maker” as defined in IFRS 8 — Operating Segments) to assess performance and allocate resources.

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 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.

In August 2023, the IASB issued amendments to IAS 21 — The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, to clarify how an entity has to apply a consistent approach to assessing whether a currency is exchangeable into another currency and, when it is not, to determine the exchange rate to use and the disclosures to provide. These amendments are effective on or after January 1, 2025. The Group does not expect any material impact from the adoption of these amendments.

There were no changes in the scope of consolidation for the periods presented in these Interim 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 Interim Condensed Consolidated Financial Statements do not include all of the information and disclosures on financial risk management required in the annual consolidated financial statements. For a detailed description of the financial risk factors and financial risk management of the Group, reference should be made to Note 30 “Qualitative and Quantitative Information on Financial Risks” of the Consolidated Financial Statements at and for the year ended December 31, 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 September 30,												For the nine months ended September 30,
			2023						2022						2023						2022
			(€ thousand)
Revenues from:
Cars and spare parts			1,330,652						1,052,212						3,830,110						3,155,595
Sponsorship, commercial and brand			144,776						127,174						422,002						362,373
Engines			27,583						41,157						87,910						119,202
Other			41,021						29,271						106,724						90,117
Total net revenues			1,544,032						1,249,814						4,446,746						3,727,287

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 September 30, 2023 and 2022 amounted to €25,796 thousand and €18,438 thousand, respectively, and for the nine months ended September 30, 2023 and 2022 amounted to €72,038 thousand and €48,618 thousand, respectively.

    Cost of sales for the three months ended September 30, 2023 and 2022 amounted to €778,749 thousand and €655,264 thousand, respectively, and for the nine months ended September 30, 2023 and 2022 amounted to €2,216,097 thousand and €1,922,360 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 September 30, 2023 and 2022 amounted to €15,929 thousand and €7,299 thousand, respectively, and for the nine months ended September 30, 2023 and 2022 amounted to €43,540 thousand and €16,054 thousand, respectively.

Selling, general and administrative costs are as follows:

			For the three months ended September 30,												For the nine months ended September 30,
			2023						2022						2023						2022
			(€ thousand)
Selling costs			62,641						63,058						182,606						169,395
General and administrative costs			55,991						43,234						163,462						130,344
Total selling, general and administrative costs			118,632						106,292						346,068						299,739

    

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 and digital infrastructure, 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 September 30,												For the nine months ended September 30,
			2023						2022						2023						2022
			(€ thousand)
Research and development costs expensed during the period			128,593						116,907						380,701						386,757
Amortization of capitalized development costs			92,316						65,387						248,174						176,677
Total research and development costs			220,909						182,294						628,875						563,434

    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 nine months ended September 30, 2023 and 2022 are recognized net of technology-related government incentives.

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