2020 results exceeded Full Year guidance on all metrics driven by record fourth quarter results. 2021 guidance targeting a strong rebound

• Total shipments of 9,119 units, down 10.0% versus prior year, in line with H2 production planning after the seven-week production suspension due to the Covid-19 pandemic
• Net revenues of Euro 3,460 million, decreased by 8.1%
• EBITDA⁽¹⁾ of Euro 1,143 million, down 10.0% versus prior year, with an EBITDA margin of 33.0%
• EBIT of Euro 716 million, down 21.9% versus prior year, with an EBIT margin of 20.7%
• Adjusted net profit⁽¹⁾⁽²⁾ of Euro 534 million and Adjusted diluted EPS⁽¹⁾⁽²⁾ at Euro 88
• Positive Industrial free cash flow⁽¹⁾ generation of Euro 172 million

2021 Guidance subject to trading conditions unaffected by further Covid-19 pandemic restrictions:

Maranello (Italy), February 2, 2021 – Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) today announces its consolidated preliminary results⁽⁴⁾ for the fourth quarter and twelve months ended December 31, 2020.

Shipments⁽⁵⁾⁽⁶⁾

Shipments totaled 9,119 units in 2020, down 1,012 units or 10.0% versus prior year, following the seven-week production suspension in H1 2020 and dealers’ temporary closure due to the Covid-19 pandemic, partially offset by a gradual production recovery in H2 2020.

Sales of both 8 cylinder models (V8) and 12 cylinder models (V12) were down 10.3% and 9.0%, respectively. The Ferrari Monza SP1 and SP2 were delivered as originally scheduled. The F8 family ramp up offset the 488 Pista family, which was approaching the end of its lifecycle. The 812 GTS was in the ramp up phase and reached global distribution, while the Ferrari Portofino phased out ahead of the introduction of the Ferrari Portofino M in 2021. The deliveries of the SF90 Stradale started in Q4 2020 following the industrialization delays experienced and then solved. In the same quarter also the Ferrari Roma commenced deliveries.

Yearly shipments were affected by the deliberate geographic allocation, driven by the phase-in pace of individual models. As a result, EMEA⁽⁶⁾ and Rest of APAC⁽⁶⁾ were almost in line with prior year, while Americas⁽⁶⁾ was down 19.8%. Mainland China, Hong Kong and Taiwan posted a decrease of 45.5%, mostly as a consequence of the advance deliveries in 2019.

In 2020, for the first time ever in Ferrari’s history, three new cars were unveiled with dedicated digital events: the Ferrari Portofino M, the SF90 Spider and the 488 GT Modificata, whose shipments will commence in 2021.

Total net revenues

Net revenues for 2020 were Euro 3,460 million, down 8.9% at constant currency⁽¹⁾.

The decrease of revenues from Cars and spare parts⁽⁷⁾ to Euro 2,835 million (down 3.1% or 4.1% at constant currency⁽¹⁾) reflected lower deliveries as well as their personalizations. This was partially offset by the positive mix thanks to the Ferrari Monza SP1 and SP2.

The decrease in Engines⁽⁸⁾ revenues (Euro 151 million, down 24.0%, also at constant currency⁽¹⁾) reflected lower shipments to Maserati and revenues from the rental of engines to other Formula 1 racing teams.

Sponsorship, commercial and brand⁽⁹⁾ revenues (Euro 390 million, down 27.5% or 27.8% at constant currency⁽¹⁾) were significantly impacted by the Covid-19 pandemic, resulting in a decreased number of Formula 1 races as well as lower in-store traffic and museum visitors.

Other⁽¹⁰⁾ revenues (Euro 84 million, down 19.5% or 18.3% at constant currency⁽¹⁾) were mainly impacted by reduced sports-related activities and the cancellation of the Moto GP at the Mugello racetrack, only partially offset by the first ever Formula 1 Grand Prix held at the Mugello racetrack.

Currency – including translation and transaction impacts as well as foreign currency hedges – had a positive impact of Euro 32 million (mainly USD).

EBITDA⁽¹⁾ and EBIT

2020 EBITDA⁽¹⁾ decreased by 10.0% or 12.7% at constant currency⁽¹⁾ versus prior year and stood at Euro 1,143 million with an EBITDA margin⁽¹⁾ of 33.0%.

2020 EBIT was Euro 716 million, down 21.9% or 25.3% at constant currency⁽¹⁾ versus prior year.

Volume had a negative impact (Euro 126 million) reflecting the decrease in shipments.

The Mix / price variance performance was positive (Euro 130 million) thanks to the increase of the Ferrari Monza SP1 and SP2 and a richer product mix despite fewer FXX-K EVO, slightly affected by a lower contribution from personalization programs, in line with the decrease of shipments and the gradual phase-out of the 488 Pista family.

Industrial costs / research and development expenses increased (Euro 38 million) mainly due to higher depreciation and amortization of fixed assets, net of the benefit of technology-related incentives recognized in the year. This also included the full costs of employees’ paid days of absence during the Covid-19 production suspension.

SG&A diminished (Euro 6 million) reflecting significant cost containment actions, partly offset by Formula 1 racing activities.

Other decreased (Euro 211 million) due to the Covid-19 impact on the Formula 1 racing calendar, lower traffic for brand-related activities as well as engine sales to Maserati.

Financial charges in the year stood at Euro 49 million versus Euro 42 million for the prior year, reflecting both a decrease in the fair value of investments held by the Group and an increase in foreign exchange losses and hedging costs.

The tax rate in the year was 8.7%, attributable to the Patent Box, deductions for eligible research and development costs, hyper and super-depreciation of machinery and equipment, in addition to a tax benefit, with no cash impact on 2020, from the one-off partial step-up of the trademark’s book value in accordance with the Italian tax regulations. Such net benefit, of Euro 75 million, has been treated as an adjusting item.

As a result, the Net Profit for the period was Euro 609 million, reflecting a 12.9% decrease versus prior year, and the Diluted earnings per share for the year reached Euro 3.28, compared to Euro 3.71 in 2019. Adjusted Net Profit⁽¹⁾⁽²⁾, net of the positive non-cash one-off impact described above, was Euro 534 million and corresponding to an Adjusted Diluted EPS⁽¹⁾⁽²⁾ of Euro 2.88.

Industrial free cash flow⁽¹⁾ for 2020 was Euro 172 million, driven by EBITDA⁽¹⁾, partially offset by capital expenditures⁽¹¹⁾ of Euro 709 million – including over Euro 60 million in connection with the purchase of tracts of land contiguous to our facilities in Maranello – and an adverse working capital impact due primarily to the reversal of the Ferrari Monza SP1 and SP2 advances received in 2019 and higher product and raw material inventories to protect the supply chain.

Net Industrial Debt⁽¹⁾ as of December 31, 2020, was Euro 543 million, compared to Euro 337 million as of December 31, 2019. During 2020, a total worth of Euro 130 million of shares were repurchased and Euro 212 million⁽¹²⁾ were distributed in dividends. Lease liabilities per IFRS 16 as of December 31, 2020, were Euro 62 million.

As of December 31, 2020, total available liquidity was Euro 2,062 million (Euro 1,879 million as of September 30, 2020), including undrawn committed credit lines of Euro 700 million.

2021 Guidance, subject to trading conditions unaffected by further Covid-19 pandemic restrictions and assuming:

• Core business sustained by volume and mix
• Revenues from Formula 1 racing activities assuming announced calendar and reflecting lower 2020 ranking
• Brand-related activities dealing with Covid-19 challenges
• Operational and marketing costs gradually resuming

Capex and R&D

Non-GAAP financial measures

Operations are monitored through the use of various non-GAAP financial measures that may not be comparable to other similarly titled measures of other companies.

Accordingly, investors and analysts should exercise appropriate caution in comparing these supplemental financial measures to similarly titled financial measures reported by other companies.

We believe that these supplemental financial measures provide comparable measures of financial performance which then facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions.

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

Total net revenues, EBITDA, Adj. EBITDA, EBIT and Adj. EBIT at constant currency eliminate the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges.

EBITDA is defined as net profit before income tax expense, net financial expenses and depreciation and amortization.

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.

Adjusted Earnings Before Interest and Taxes (“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.

Adjusted net profit represents net profit as adjusted for certain income and costs (net of tax effect) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Adjusted EPS represents EPS as adjusted for certain income and costs (net of tax effect) which are significant in nature, expected to occur infrequently, and that management considers not reflective of ongoing operational activities.

Basic and diluted EPS⁽¹⁴⁾

Net Industrial Debt, 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).

Free Cash Flow and Free Cash Flow from Industrial Activities are two of management’s primary key performance indicators to measure the Group’s performance. 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) and intangible assets. 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). Prior to the first quarter of 2020, we defined Free Cash Flow and Free Cash Flow from Industrial Activities without excluding from investments in property, plant and equipment the right-of-use assets recognized during the period in accordance with IFRS 16 - Leases. Applying the current definition of Free Cash Flow and Free Cash Flow from Industrial Activities to the three and twelve months ended December 31, 2019 would result in an immaterial difference compared to the figures presented below. The following table sets forth our Free Cash Flow and Free Cash Flow from Industrial Activities for the three and twelve months ended December 31, 2020 and 2019.

On February 2, 2021, at 3.00 p.m. CET, management will hold a conference call to present the FY 2020 results to financial analysts and institutional investors. Please note that registering in advance is required to access the conference call details. The call can be followed live and a recording will subsequently be available on the Group’s website http://corporate.ferrari.com/en/investors. The supporting document will be made available on the website prior to the call.

¹ Refer to specific note on non-GAAP financial measures
² Net of a tax benefit, with no cash impact on 2020, from the one-off partial step-up of the trademark’s book value in accordance with the Italian tax regulations
³ Calculated using the weighted average diluted number of common shares as of December 31, 2020 (185,379 thousand)
⁴ These results have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and IFRS as endorsed by the European Union
⁵ Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre-owned cars
⁶ EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East (includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon, Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the other European markets not separately identified); Americas includes: United States of America, Canada, Mexico, the Caribbean and Central and South America; Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia, South Korea, Thailand and Malaysia
⁷ Includes net revenues generated from shipments of our cars, any personalization net revenues generated on cars, as well as sales of spare parts
⁸ Includes net revenues generated from the sale of engines to Maserati for use in their cars, and the revenues generated from the rental of engines to other Formula 1 racing teams
⁹ Includes net revenues earned by our Formula 1 racing team through sponsorship agreements and our share of the Formula 1 World Championship commercial revenues, as well as revenues generated through the Ferrari brand, including merchandising, licensing and royalty income
¹⁰ Primarily relates to financial services activities, management of the Mugello racetrack and other sports-related activities
¹¹ Capital expenditures excluding right-of-use assets recognized during the period in accordance with IFRS 16 - Leases
¹² Including approx. Euro 1 million related to withholding taxes, which are expected to be paid
¹³ Capitalized as intangible assets
¹⁴ For the three and twelve months ended December 31, 2020 and 2019 the weighted average number of common shares for diluted earnings per share was increased to take into consideration the theoretical effect of the potential common shares that would be issued under the equity incentive plans
¹⁵ Free Cash Flow from Industrial Activities for the three and twelve months ended December 31, 2020 includes approx. Euro 1 million related to withholding taxes, which are expected to be paid